Arlington view civic association - Arlingtonva
Affordable Housing Investment Fund (AHIF) Notice of Funding Availability (NOFA) for FY 2018 September 15, 2016
1
Background • AHIF is main program for affordable development. • AHIF created/preserved ~7,000 CAFS. • Applications received on a rolling basis.
2
NOFA Rationale • Concurrent review improves decision making • More competitive applications • Clarifies process and schedule for all developers • Consistency with Affordable Housing Master Plan •
Supply, Access, Sustainability
•
Desire for AHIF tools that address geographic distribution
3
Development of Staff Recommendations • Created Internal Staff Working Group (members of each team within Housing Division) • Formed NOFA Advisory Group (AG) •
9-members including developers, residents, advocates, Housing Commissioners and Fiscal Affairs Advisory Commissioner
•
Met six times over 7 month period
• Staff formed recommendations (with AG input) on following topics: •
Scoring guidance (criteria and max points)
•
Application schedule
•
Scoring process
4
Application Overview • To apply, applicant MUST met following criteria •
No less than a 30-year affordability commitment
•
AHIF loan funds used for units affordable up to 80% Area Median Income (AMI) •
•
If mixed-income, AHIF applies to affordable portion of development
Must have previous experience developing or owning housing or be partnering with a developer/owner who has previous experience
• Points awarded by how well applicant meets the criteria (shown on following slide) •
Applications will be compared against one another
•
Encourages applicants to submit the best applications they can
•
Created guidance document which details how applicants can receive highest points for each criteria 5
Draft Max Points Available Policy Goals - 40%
Max Points
Supply and Access
30
Sustainability
10
Risk and Opportunity (includes preservation of MARKS/CAFS)
30
• Policy = 40% of total score
Geographic Distribution
30
Policy Total
100 x .4 = 40%
• Budget = 40% of total score
Budget – 40% Capital Budget
50
Operating Budget
50
Budget Total
100 x .4 = 40%
• Experience and Readiness = 20% of total score
Project Experience and Readiness – 20% Team Experience
55
Readiness
45
Experience/Readiness Total
100 x .2 = 20% 6
Geographic Distribution • Tiered Point Structure • Points reflect location in a metro corridor or level of poverty •
Tier 1: Located in metro corridor or ¼ mile radius from Lee Hwy. (25 Points)
•
Tier 2: Located in a census tract below avg. poverty rate and not in metro corridor (20 points)
•
Tier 3: Located in a census tract with 1x -2x avg. poverty rate and not in metro corridor (15 points)
•
Tier 4: Located in a census tract with 2x-3x avg. poverty rate and not in metro corridor (10 points)
•
Tier 5: Located in a census tract that has 3x or greater avg. poverty rate at any point over the past 3 years (0 points) •
•
Mixed-income developments in Tiers 4 and 5 that contain at least 40% of units unrestricted will receive the next highest Tier points.
Exception: Applications preserving existing CAFS will receive full points 7
Geographic Distribution Map
8
Draft Scoring Process • Staff selections will form the FY18 Pipeline Recommendations •
Applicants continue four to eight month public process (SPRC or FBC AWG, PC, and HC/Bricks & Mortar meetings)
•
County Board Hearing at conclusion of public process
• Housing Commission updated in the form of an Information Item at April and May meetings • Selected applications will be reviewed by the Housing Commission at the appropriately scheduled time. •
Housing Commission will formulate recommendations to the Arlington County Board
•
Public process for NOFA selections is similar to current process
• Staff will release score upon request •
Staff will meet and debrief with applicants who are not selected 9
Schedule • Schedule was created to be consistent with VHDA tax credits and County planning processes • In-Cycle Applications due March 2017 (full schedule next slide) • Will consider out-of-cycle applications on case-by-case basis •
County historically receives about 1 acquisition application/year
•
Time-Sensitive 3rd Party Acquisitions may apply to be considered out-of-cycle •
Time-sensitive acquisition means on the open market or will be on the open market in the immediate future
•
If not on the open market, applicant will demonstrate there is owner-initiated intention to sell (letter from owner)
•
Applicant will submit letter to staff with documentation (listing or letter from owner) and details of the project (location, units, price) including why an in-cycle application would preclude ability to purchase 10
Draft Schedule for In-Cycle Applications 2017 March April
Jan.
Feb.
July
August
Sept.
Jan.
2018 Feb.
March
May
June
Nov.
Dec.
NO F A is is s ued with applic ation pac ket pos ted to webs ite (J an. 9, 2017) Applic ation P eriod (J an. 9 - Marc h 10, 2017) C onc eptual S ite P lan or F B C R eview [1] D eveloper F orum Q &A (J an. 17, 2017) S taff R eview (Marc h 13 - April 28, 2017) Hous ing C ommis s ion Update - Information Items (April and May meetings ) D eveloper Notific ation (May 1, 2017) D ebrief meeting with applic ants who did not get s elec ted 4.1 S ite P lan or F B C P reliminary F iling [2] P ublic P roc es s /S ite P lan/F B C R eview (J une - J anuary 2018) Year 2017 2017 Oct.
P ublic P roc es s /S ite P lan/F B C R eview (J une - J anuary 2018) 4.1 S ite P lan F inal F iling [2] F B C F inal S ubmis s ion [2] C ommis s ion Meetings (D ec ember - J anuary 2018) Year 2018
P ublic P roc es s /S ite P lan/F B C R eview (J une 2017 - J anuary 2018) C ommis s ion Meetings (D ec ember 2017 - J anuary 2018) C ounty B oard Meeting (J anuary 2018) 9% L ow Inc ome Hous ing T ax C redit D eadline (Marc h 2018) [1] Applic ant c an s ubmit a C onc eptual S ite P lan Applic ation or meet to dis c us s the F B C applic ation at anytime prior to AHIF applic ation s ubmittal. [2] T his is a s ugges ted filing date in order to be heard at a J anuary/F ebruary C ounty B oard meeting.
*Notes: 9%/hybrid LIHTC applications may need to be heard by County Board in Feb., depending on schedule/public process. Other applications may be heard earlier than January if schedule/public process allows.
11
Next Steps • Brief County Board • Application package posted to website (January 9, 2017) • Developer Forum Q&A (January 2017 )
12
Back-Up Slides
13
NOFA Available Funds • Anticipated funding available when projects are considered by the County Board in FY18 includes: •
Current Balance as of Dec. 2016
•
Anticipated Adjustments between Dec. 2016 and June 2017
•
Anticipated new FY18 Appropriation
14
1
Background • AHIF is main program for affordable development. • AHIF created/preserved ~7,000 CAFS. • Applications received on a rolling basis.
2
NOFA Rationale • Concurrent review improves decision making • More competitive applications • Clarifies process and schedule for all developers • Consistency with Affordable Housing Master Plan •
Supply, Access, Sustainability
•
Desire for AHIF tools that address geographic distribution
3
Development of Staff Recommendations • Created Internal Staff Working Group (members of each team within Housing Division) • Formed NOFA Advisory Group (AG) •
9-members including developers, residents, advocates, Housing Commissioners and Fiscal Affairs Advisory Commissioner
•
Met six times over 7 month period
• Staff formed recommendations (with AG input) on following topics: •
Scoring guidance (criteria and max points)
•
Application schedule
•
Scoring process
4
Application Overview • To apply, applicant MUST met following criteria •
No less than a 30-year affordability commitment
•
AHIF loan funds used for units affordable up to 80% Area Median Income (AMI) •
•
If mixed-income, AHIF applies to affordable portion of development
Must have previous experience developing or owning housing or be partnering with a developer/owner who has previous experience
• Points awarded by how well applicant meets the criteria (shown on following slide) •
Applications will be compared against one another
•
Encourages applicants to submit the best applications they can
•
Created guidance document which details how applicants can receive highest points for each criteria 5
Draft Max Points Available Policy Goals - 40%
Max Points
Supply and Access
30
Sustainability
10
Risk and Opportunity (includes preservation of MARKS/CAFS)
30
• Policy = 40% of total score
Geographic Distribution
30
Policy Total
100 x .4 = 40%
• Budget = 40% of total score
Budget – 40% Capital Budget
50
Operating Budget
50
Budget Total
100 x .4 = 40%
• Experience and Readiness = 20% of total score
Project Experience and Readiness – 20% Team Experience
55
Readiness
45
Experience/Readiness Total
100 x .2 = 20% 6
Geographic Distribution • Tiered Point Structure • Points reflect location in a metro corridor or level of poverty •
Tier 1: Located in metro corridor or ¼ mile radius from Lee Hwy. (25 Points)
•
Tier 2: Located in a census tract below avg. poverty rate and not in metro corridor (20 points)
•
Tier 3: Located in a census tract with 1x -2x avg. poverty rate and not in metro corridor (15 points)
•
Tier 4: Located in a census tract with 2x-3x avg. poverty rate and not in metro corridor (10 points)
•
Tier 5: Located in a census tract that has 3x or greater avg. poverty rate at any point over the past 3 years (0 points) •
•
Mixed-income developments in Tiers 4 and 5 that contain at least 40% of units unrestricted will receive the next highest Tier points.
Exception: Applications preserving existing CAFS will receive full points 7
Geographic Distribution Map
8
Draft Scoring Process • Staff selections will form the FY18 Pipeline Recommendations •
Applicants continue four to eight month public process (SPRC or FBC AWG, PC, and HC/Bricks & Mortar meetings)
•
County Board Hearing at conclusion of public process
• Housing Commission updated in the form of an Information Item at April and May meetings • Selected applications will be reviewed by the Housing Commission at the appropriately scheduled time. •
Housing Commission will formulate recommendations to the Arlington County Board
•
Public process for NOFA selections is similar to current process
• Staff will release score upon request •
Staff will meet and debrief with applicants who are not selected 9
Schedule • Schedule was created to be consistent with VHDA tax credits and County planning processes • In-Cycle Applications due March 2017 (full schedule next slide) • Will consider out-of-cycle applications on case-by-case basis •
County historically receives about 1 acquisition application/year
•
Time-Sensitive 3rd Party Acquisitions may apply to be considered out-of-cycle •
Time-sensitive acquisition means on the open market or will be on the open market in the immediate future
•
If not on the open market, applicant will demonstrate there is owner-initiated intention to sell (letter from owner)
•
Applicant will submit letter to staff with documentation (listing or letter from owner) and details of the project (location, units, price) including why an in-cycle application would preclude ability to purchase 10
Draft Schedule for In-Cycle Applications 2017 March April
Jan.
Feb.
July
August
Sept.
Jan.
2018 Feb.
March
May
June
Nov.
Dec.
NO F A is is s ued with applic ation pac ket pos ted to webs ite (J an. 9, 2017) Applic ation P eriod (J an. 9 - Marc h 10, 2017) C onc eptual S ite P lan or F B C R eview [1] D eveloper F orum Q &A (J an. 17, 2017) S taff R eview (Marc h 13 - April 28, 2017) Hous ing C ommis s ion Update - Information Items (April and May meetings ) D eveloper Notific ation (May 1, 2017) D ebrief meeting with applic ants who did not get s elec ted 4.1 S ite P lan or F B C P reliminary F iling [2] P ublic P roc es s /S ite P lan/F B C R eview (J une - J anuary 2018) Year 2017 2017 Oct.
P ublic P roc es s /S ite P lan/F B C R eview (J une - J anuary 2018) 4.1 S ite P lan F inal F iling [2] F B C F inal S ubmis s ion [2] C ommis s ion Meetings (D ec ember - J anuary 2018) Year 2018
P ublic P roc es s /S ite P lan/F B C R eview (J une 2017 - J anuary 2018) C ommis s ion Meetings (D ec ember 2017 - J anuary 2018) C ounty B oard Meeting (J anuary 2018) 9% L ow Inc ome Hous ing T ax C redit D eadline (Marc h 2018) [1] Applic ant c an s ubmit a C onc eptual S ite P lan Applic ation or meet to dis c us s the F B C applic ation at anytime prior to AHIF applic ation s ubmittal. [2] T his is a s ugges ted filing date in order to be heard at a J anuary/F ebruary C ounty B oard meeting.
*Notes: 9%/hybrid LIHTC applications may need to be heard by County Board in Feb., depending on schedule/public process. Other applications may be heard earlier than January if schedule/public process allows.
11
Next Steps • Brief County Board • Application package posted to website (January 9, 2017) • Developer Forum Q&A (January 2017 )
12
Back-Up Slides
13
NOFA Available Funds • Anticipated funding available when projects are considered by the County Board in FY18 includes: •
Current Balance as of Dec. 2016
•
Anticipated Adjustments between Dec. 2016 and June 2017
•
Anticipated new FY18 Appropriation
14
