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DELAWARE STATE HOUSING AUTHORITY

NEIGHBORHOOD STABILIZATION PROGRAM 3 (NSP 3)

PERMANENT RENTAL HOUSING FOR SPECIAL NEEDS POPULATIONS

PURPOSE

The Delaware State Housing Authority (DSHA) is soliciting proposals from nonprofit entities to generate permanent rental housing targeting special needs populations in Kent and Sussex Counties for the second allocation for Neighborhood Stabilization Program 3 (NSP 3).

BACKGROUND INFORMATION

The intent of the Neighborhood Stabilization Program (NSP) is to purchase and rehabilitate foreclosed and/or vacant properties, in neighborhoods that are hardest hit by the mortgage foreclosure crisis.

On March 14, 2011, the U.S. Department of Housing and Urban Development (HUD) awarded the State of Delaware $5 million in NSP 3 funds – to be administered by DSHA. This application is a continuation of the initial Request For Proposals (RFP), advertised in June 2011, which aimed to fulfill the NSP low-income targeting mandate. NSP requires that at least 25% of the funds awarded must be used to target households who earn less than 50% of Area Median Income (AMI).

For more information regarding NSP regulations, go to .

FUNDS AVAILABLE

Funds are for permanent rental housing only. Reimbursement of eligible expenses for acquisition and/or rehabilitation of one (1) home per recipient – not to exceed total development cost of $250,000.00 (including developer’s fee).

Developer fee must not exceed 8% of total development cost. See sample budget below:

Acquisition Costs 200,000.00

Rehabilitation Costs 30,000.00

Maximum developer fee allowed: 20,000.00

Maximum budget allowed: $ 250,000.00 (Total Development Cost)

DSHA may consider exceeding one (1) home maximum on a case-by-case basis. However, this option is at DSHA’s discretion.

ELIGIBLE PROPERTIES

Requirements for NSP compliant properties:

1. Purchase discount – Properties are required to be purchased at a minimum 1% discount based on appraisal completed within sixty (60) days of final offer.

2. Definitions – Properties must meet the HUD definition of foreclosed and/or vacant:

Foreclosed: A home or residential property has been foreclosed upon if any of the following conditions apply:

• The property's current delinquency status is at least 60 days delinquent under the Mortgage Bankers of America delinquency calculation and the owner has been notified; or

• The property owner is ninety (90) days or more delinquent on tax payments; or

• Foreclosure proceedings have been initiated or completed; or

• Foreclosure proceedings have been completed and title has been transferred to the Lender or Servicer or Developer.

Vacant: A residential property has been certified as uninhabited for at least ninety (90) days.

3. Target Areas– Suitable properties must be located in the following NSP 3 qualified Census tracts (based on 2000 Census data):

|Census Tract|Location |Geographical Reference |

|408.00 |Dover |East to West: From Governor’s Avenue to Saulsbury Road/McKee Road |

| | |North to South: From Route 8/Division Street to College Road |

| | |Subdivisions included: Fulton’s Addition, Fairview, Woodcrest, etc. |

|414.00 |Dover |East to West: From Governor’s Avenue to Route 15/Wyoming Mill Road |

| | |North to South: From Wyoming Avenue to Route 8/Division Street |

| | |Subdivisions included: Sherwood, Simon Circle, Eden Hill, etc. |

|430.00 |Harrington |East to West: From Route 14/Vernon Road to Hunting Quarter Road |

| | |North to South: From Hopkins Cemetery Road to Hammondtown Road/Flat Iron Road |

|502.00 |Ellendale |South of Lincoln – surrounding Milton-Ellendale Highway |

| | |East to West: From S. Union Church Road to Route 30 |

| | |North to South: From Jefferson Branch Road/Holly Tree Road to Redden Road |

| | |Subdivisions included: Jefferson Crossroads, Reynolds Mill, New Market, Walker Acres, King’s Crossroads, etc. |

|518.02 |Laurel |Partial town limits of Laurel |

| | |East to West: From Dickerson Road to Route 13 |

| | |North to South: From Georgetown Road to Salt Barn Road |

| | |Subdivisions included: Records Pond, Laurel Creek, Dogwood Acres, Hollywoods Park, Pusey Development, etc. |

NOTE: The “Geographical Reference” is target areas for identification purposes only. Census tracts will be verified using geocoding technology.

The following methods can be used to certify property is located within qualified Census tract:

1. Utilize interactive map on DSHA’s website

• Go to

• Click on ‘Homeownership’ tab, then Rebuilding Our Communities (ROC).

2. Federal Financial Institutions Examination Council (FFEIC)

• Go to .

• Select ‘2010’ in dropdown box, fill in address, then select ‘Search’.

3. Policy Map - Go to .

ELIGIBLE SPECIAL NEEDS POPULATIONS

Targeted Special Populations are defined as:

• Households earning less than 30% AMI

• Homeless persons

• Persons at risk of homelessness, including

o Youth aging out of foster care

o Individuals with mental health and substance abuse conditions

o Ex-Offenders re-entering the community

o Veterans

o Victims of domestic abuse

• Persons with disabilities, including:

o Physical disabilities

o Intellectual/developmental disabilities

o Mental health disabilities

o Persons with HIV/AIDS

KEY DATES

|November 15, 2012 |Developer Interest Meeting |Attendance is recommended via video conference. |

|November 16, 2012 |Application acceptance period. Must be submitted to|Electronic or hard copy acceptable. Electronic submissions |

|to |DSHA’s Dover location by 3:00 PM. |incompatible with Microsoft Office will not be accepted. |

|December 12, 2012 | | |

|Prior to January 18, 2013 |Funding awards to be announced. |Announcements may be made prior. |

|Prior to February 1, 2013 |Execute NSP 3 developer agreement. | |

|February 28, 2013 |Deadline for acquisition funds to be expended. | |

|March 14, 2013 |HUD mandated NSP 3 expenditure deadline. |This date is non-negotiable and processing time must be |

| | |allotted. |

For further information regarding submission of applications, contact:

Keanna Faison, Management Analyst

18 The Green, Dover, DE 19901

Phone: (302) 739-0260 E-mail: Keanna@

SECTION 1 – INFORMATION FOR APPLICANTS

ELIGIBLE APPLICANTS AND EVALUATION CRITERIA

Applications will be reviewed on a first-come, first-served basis. Completeness of application is required.

Successful applicants must fulfill the following minimum qualifications:

1. Timeline and Project readiness

a. Preference will be given to those who have identified foreclosed or vacant properties in qualified NSP 3 Census tracts in Kent and Sussex Counties.

b. NSP funds must be drawn on a reimbursement basis. Preference will be given to applicants with financial capacity to acquire the property directly.

c. Projects must be financially feasible with submission of estimated budgets.

d. Familiarity with NSP regulations. Minimum affordability period of 20 years. See “Long-term affordability” on page 7 for more details.

2. Demonstrated Capacity

a. Personnel to serve as point of contact to administer and enforce compliance with NSP regulations including, but not limited to: providing project status reporting, tracking draw expenditures versus internal expenses, etc.

b. Applicants must be in good standing with DSHA and will be considered ineligible to apply if they have failed to satisfactorily fulfill obligations as required under previously-funded DSHA projects.

3. Insurance Requirements

a. Liability insurance – minimum $1,000,000 per occurrence.

b. Must meet workers compensation requirements.

4. Tenant Selection and Property Management

a. Developers will be responsible for leasing, ongoing management of properties, and compliance with long-term affordability restrictions.

b. Ability to quickly occupy property with special needs households.

c. Must provide supportive services for residents.

5. Scope of Work

a. Certification of Section 3 economic opportunity.

b. Acquisition

i. Acquisition of residential property to be selected in collaboration with DSHA.

ii. Environmental Clearance must be completed and be approved by DSHA prior to settlement.

iii. Required (if applicable): Appraisals, inspections, lead-based paint assessment (required for homes built prior to 1978), termite inspection, etc.

c. Minimum Project Requirements

i. Rehabilitation scope of work will be the responsibility of the selected developer and approved by DSHA, in compliance with applicable local housing codes, standards, and energy efficiency improvements.

ii. Architectural drawings required. Associated costs are eligible for reimbursement.

iii. All rehabilitation will be required to be performed by licensed general contractors or specialty contractors.

iv. Property must be made fully accessible and have a sprinkler system installed.

v. Use of Energy Star Qualified products highly encouraged.

vi. All projects should adhere to DSHA’s Minimum Construction and Rehabilitation Standards, as applicable. The criteria is available on DSHA’s website at the following link:



INCOME ELIGIBILITY

Eligible tenants include special needs households earning less than 50% of AMI as published annually by HUD for each county:

2012 HUD Income Limits (as of December 1, 2011)

|Kent County, DE | |Sussex County, DE |

|Household Size | |Household Size |

|% AMI |1 person |2 person |3 person |4 person | |

|Sussex County |$ 439 |$ 470 |$ 564 |$ 651 |$ 727 |

LONG-TERM AFFORDABILITY

Minimum long-term affordability will follow HOME program standards at 24 CFR 92.252(e).

|Investment Per Housing Unit |Minimum Period of Affordability |

|Under $15,000 |5 years |

|$15,000 - $40,000 |10 years |

|Over $40,000 |15 years |

|New Construction OR Acquisition |20 years |

SECTION 2 - APPLICATION SUBMISSION CHECKLIST

Note: Documents may be submitted electronically via Keanna@. Applicant will receive confirmation upon receipt by DSHA.

The following documents must be submitted with application at time of submission unless otherwise specified:

← Application

← Certification of 501(c)(3) nonprofit status from the Internal Revenue Service.

← Entity organizational chart

← Organization policies regarding internal processes for acquiring properties and attaining bids

← Minimum of three (3) MLS listings for potential NSP eligible properties for purchase

← List of proposed partners utilized for acquisition and rehabilitation. For example: Realtors, appraisers, architects, inspectors, management companies, etc.

Please include the following information:

o Full name

o Company affiliation

o Capacity related to service provided

o Contact information including e-mail, phone, and office address

← Most recent audited financial statement

← Proposed budgets and timeline for:

o Acquisition and rehabilitation (include projected acquisition expenses, construction hard and soft costs, as well as sources for these funds)

o Annual operating budget for your proposed activity

← Copy of liability insurance, policy binders including limits, carrier and expiration date

All questions concerning this application process should be directed to:

Keanna Faison, Management Analyst

Delaware State Housing Authority

18 The Green, Dover, DE 19901

Phone: (302) 739-0260

E-mail: Keanna@

SECTION 3 - APPLICATION

PERMANENT RENTAL HOUSING FOR SPECIAL NEEDS PERSONS

Acquisition and Rehabilitation of Foreclosed or Vacant Residential Properties

|1. Entity Name | |

|2. Full Street Address | |

|3. Contact Person and Capacity | |

| Phone | |E-mail | |

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|Program Description. Use this space to provide a brief description of the proposed activity. |

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|What special needs population will be served? Will the housing serve individuals or families? |

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|Characterize the living-style arrangements. |

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|Describe supportive services to be provided or coordinated. Describe the role of partners, if any. Use additional pages if necessary, but |

|summarize your proposal in this space. |

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|EXPERIENCE AND CAPACITY |

|Use this section to discuss experience and capacity to develop and manage housing and supportive services for special needs populations. Use|

|additional pages if necessary, but provide a summary in this space. |

|Housing Development Capacity: |

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|Do you have any NSP-related experience? Please explain. |

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|Discuss your (or your partner’s) experience and organizational capacity in acquisition and rehabilitation of affordable rental housing, |

|including financing and rehabilitation (including environmental review). |

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|Describe staffing arrangements, if any. |

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|Describe the types and number of units of residential housing you have developed. |

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|Describe your approach to evaluating properties for rehabilitation and repairs. |

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|Housing Management Capacity: |

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|Discuss your (or your partner’s) experience and organizational capacity in marketing, leasing, and managing of affordable rental housing, |

|including the population to be served. |

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|Describe the current number of rental housing units under your management. |

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|Supportive Services Capacity: |

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|Discuss your (or your partner’s) experience and organizational capacity in supportive services for the population to be served. |

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|Proposed Timeline, Readiness to Perform: |

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|Enter a proposed timeline for acquisition, rehabilitation, and occupancy for this housing project. |

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|Are there readiness factors in place, such as site determination, pre-development work, etc.? |

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|Past Performance Issues: |

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|If applicable, discuss past performance issues for rental housing under your development or management. |

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|Non-Financial Resources: |

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|Discuss any non-financial additional resources you will bring. |

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|HOUSING NEED AND RESIDENT SELECTION |

|Discuss the housing need in Delaware for the special needs population proposed to be served, for the proposed location(s) of the activity. |

|Attach additional information if needed, but provide a summary of housing need here. |

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|Discuss your proposed process for securing initial tenants. Attach additional information if necessary, but summarize your resident |

|selection process here. |

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|Discuss your proposed process for filling vacancies. Attach additional information if necessary, but summarize your waiting list process |

|here. |

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|AFFORDABILITY |

|Describe the income levels for individuals or households you propose to serve. |

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|Describe proposed rents by bedroom size. |

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|Describe long-term affordability: How long will the units remain affordable to the income level of households served. |

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|LOCATION AND COMMUNITY AMENITIES |

|Describe the proposed location. Discuss the community amenities, and discuss the proposed location in terms of proximity to public |

|transportation, retail services, services for affordable health care, State service centers, libraries, parks, and so on. |

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|Discuss the proposed location in terms of diversity of income, race, and ethnicity. |

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|SUPPORTIVE SERVICES |

|Describe the breadth and depth of supportive services which will be provided. Who will provide them, where, and how often? |

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|Discuss the level of independence residents will enjoy. |

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|Describe any special design features for the population to be served. |

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|REHABILITATION ACTIVITY: SECTION 3 |

|Employment Opportunities for Low-Income Persons |

|Describe how, to the greatest extent feasible, rehabilitation activities will provide employment and training opportunities for low-income |

|persons and/or business concerns that provide such opportunities to low-income persons. For further information: |

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|REHABILITATION ACTIVITY: ENERGY EFFICIENCY |

|NSP 3 requires that rehabilitation be undertaken in compliance with applicable housing codes and standards. In addition, to the extent |

|applicable to the rehabilitation work undertaken, obsolete products and appliances should be replaced with Energy Star-labeled products; |

|water efficient products, such as those with the WaterSense label, should be installed. |

|Describe the scope of work needed for the rehabilitation. Please include any accessibility modifications and sprinkler systems that will be |

|utilized for this property. |

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|Describe the applicable local housing code for rehabilitation activities. |

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|Describe how you will incorporate energy efficiency improvements in rehabilitation activities. |

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