Affordable Housing Program

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2011 Affordable Housing Program
2
Workshop Agenda

• AHP overview
• Eligibility/threshold requirements
• Scoring review
• Feasibility review
• Online application
• AHP award obligations
• Technical assistance process
• Questions

3
Federal Home Loan Bank of Pittsburgh

• Who are we?
• One of 12 banks in the FHLB system
• Cooperatively owned
• Provide access to cheap capital
• Earnings set-aside for community investment

4
What is AHP?

• Supports the development of affordable housing
  for households at or below 80 of AMI (using
  HUDs guidelines)
• Direct subsidy (grants) or low-interest loan
  options
• Competitive application process

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Whats Happening in 2011?

• One funding round
• Funds for 2011 AHP approximately 3 million
• Maximum subsidy amount 250,000 per project
• Online application
• Informational webinars, workshops and technical
  assistance

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Important 2011 AHP Dates

• Now technical assistance requests accepted
• During the month of May webinars and workshops
  will be conducted (go to the FHLBank Pittsburgh
  website for registration information)
• June 1 access to online system available
• July 21 (5 p.m.) closing date for submission
  of applications applications MUST be in Member
  Approved status
• October 28 - AHP funding announcement

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AHP Eligibility Criteria

• General
• FHLBank members Applicant
• Nonprofit, for-profit, authorities,
  municipalities developing affordable housing
  Sponsor
• Project Specific Thresholds
• Rental projects at least 20 of units targeted
  for families at or below 50 AMI
• Homeownership projects at least one unit
  targeted for families at lt80 AMI
• Project meets Fair Housing requirements

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AHP Eligibility Criteria (cont.)

• Project must comply with required retention
  period 5 years for owner-occupied housing, 15
  years for rental, and use acceptable retention
  mechanism
• AHP subsidy requested must be less than or equal
  to the 250,000 maximum
• Creditworthiness of the member must be verified
  (by FHLBank Pittsburgh)
• AHP funds must be used for an eligible purpose

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Eligible AHP Uses

• Homeownership or rental
• Multi-family, single-family
• Acquisition, new construction, rehabilitation
• Scattered site, single site
• Downpayment/closing costs

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Quick Scoring Review

• The AHP uses a 100-point scoring system
• Scoring details provided in Attachment B of the
  AHP Implementation Plan
• A perfect score is not required!
• 2010 funding round results
• 76 applications submitted, 15 approved
• High score 82, score for last approved 68.75
• Score for last approved application in 2009
  funding round 65

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2011 Scoring Guidelines

• Scoring Categories Point Allocation
• Use of Donated Properties 5 (fixed)
• Sponsorship by Nonprofit or
• Government Entity 5 (fixed)
• Targeting 0-20 (var.)
• Housing for the Homeless 5 (fixed)
• Promotion of Empowerment 0-10 (var.)

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2011 Scoring Guidelines (cont.)

• Scoring Categories Point Allocation
• First District Priorities
• Special Needs 7 (fixed)
• Economic Diversity 5 (fixed)
• Rural 5 (fixed)
• Second District Priority
• Readiness to Proceed 8 (fixed)
• Subsidy per Unit 0-5 (var.)
• Community Stability 0-25 (var.)

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Use of Donated Properties(5 points fixed)

• Projects will receive 5 points if either
• 20 of land or units are received for a nominal
  price (typically 100 or less)
• OR
• At least 50 of the units or land are acquired at
  50 or less of the Fair Market Value
• OR
• At least 20 of the land or units are acquired
  from the federal government, federal agency or
  instrumentality thereof

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Sponsorship by Nonprofit or Government Entity(5
points fixed)

• Project must include sponsorship by one of the
  following groups
• Not-for-profit organization
• State or political subdivision of a state
• State housing agency
• Local housing authority
• Native American tribe

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Sponsorship by Nonprofit or Government Entity
(cont.)

• Rental projects must have an ownership interest
  and be integrally involved
• Homeownership projects must be integrally
  involved
• Integral involvement
• Exercising control over planning, development or
  management of the project

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Targeting(20 points variable)

• Rental projects
• Projects with 60 or more of units targeted to
  households at 50 or less of AMI will receive 20
  points
• Remaining projects will be scored using the
  following scale
• Percent of units at 50 or less multiplied by 20
• Percent of units at 51-60 multiplied by 14
• Percent of units at 61-80 multiplied by 8
• Total score is sum of 1, 2 and 3 above

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Targeting (cont.) (20 points variable)

• Homeowner projects
• Projects will be scored using the following
• scale
• Percent of units at 50 or less multiplied by 20
• Percent of units at 51-60 multiplied by 18
• Percent of units at 61-80 multiplied by 16
• Total score is sum of 1, 2 and 3 above
• NOTE The total number of units in the project
• will be used to determine the targeting scores
• for both rental and homeownership projects

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Housing for Homeless (5 points fixed)

• Points will be awarded for the creation of
• Transitional housing, excluding overnight
  shelters, for homeless households permitting a
  minimum of 6 months occupancy
• Rental housing reserving at least 20 of the
  units for homeless households

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Housing for Homeless (cont.)

• Homeless is defined as follows
• 1. Persons who are sleeping in places not meant
  for human habitation
• 2. Persons sleeping in emergency shelters
• 3. Persons graduating from a transitional housing
  program specifically for homeless persons
• 4. Persons being discharged from an institution
  or foster care with no permanent residence
  available
• 5. Persons who would be discharged from an
  institution if they had a permanent residence
  available

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Housing for Homeless (cont.)

• 6. Victims of domestic violence
• Persons who are doubled-up and are in a
  situation of overcrowding, defined as
• Unit Size Number of People
• Efficiency 2 or more
• 1 Bedroom 3 or more
• 2 Bedrooms 5 or more
• 3 Bedrooms 7 or more
• 4 Bedrooms 9 or more

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Empowerment

• Up to 10 points for services offered to the
  residents of the proposed project
• Approved list of empowerment techniques
• Techniques must be documented by Memorandum of
  Understanding

22
Empowerment

• Empowerment scoring approved techniques
• 4 points for the following techniques
• Pre-homeownership counseling complete at least
  4 hours of face-to-face homeownership counseling
• Post-homeownership counseling complete at least
  4 hours of post-purchase face-to-face homebuyer
  counseling
• 2 points for the following techniques
• Case management
• Counseling

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Empowerment

• 2 points for the following techniques
  (continued)
• On-site primary health care services
• Resident serving on sponsors board
• Sweat equity Activities required of the
  homebuyers or their families directly related to
  the construction/rehabilitation of the home.
• Tenant council
• Transportation Project-specific private
  transportation services provided by the project
  and tied to residents economic empowerment.
• Welfare-to-Work Initiatives.
• Youth or after-school programs

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Empowerment

• 2 points for the following techniques
  (continued)
• Financial literacy/credit counseling/budgeting
• Homeowners association
• Life skills classes that promote economic
  betterment or self-sufficiency.
• Daycare services (youth or adult)
• Education (related to economic empowerment, other
  than employment training)
• Employment training
• Financial programs or services that provide
  direct and quantifiable cash assistance to
  residents.

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Special Needs(7 points fixed)

• At least 20 percent of the units are reserved for
  special needs individuals
• Expanded definition of special needs
• Physically and/or mentally disabled
• Developmentally disabled
• Persons recovering from domestic abuse (physical
  abuse)
• Persons recovering from domestic abuse (emotional
  abuse)
• Persons recovering from chemical dependency
• Persons with HIV/AIDS
• Any member of a household with any one of the
  qualifying special needs conditions outlined
  above qualifies the household as a special needs
  household

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Economic Diversity(5 points fixed)

• Projects that incorporate mixed-income housing in
  the development scheme. Mixed income housing is
  defined as
• 20 or more units targeted to households gt60 of
  the AMI
• OR
• Project is located in a census tract with an
  average annual income that is at or greater than
  100 of the AMI

Note The total number of units in the project
will be used to score this factor.
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Rural(5 points fixed)

• Projects that are located in rural areas
• USDA guidelines for each state are used
• For more information go to the USDA website at
  www.usda.gov and select Single family or Multi
  family as appropriate for your project

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Readiness to Proceed

• Quick start on or before 4/28/12 (for
  owner-occupied rehab only finish on or before
  10/28/12)
• 100 site control at time of application (July
  2011) must be documented Exceptions NSP
  projects (site control by 4/28/12) and
  owner-occupied rehab projects (exempt from
  requirement)
• Zoning/environmental documented permissive
  zoning and environmental clearance at time of
  application
• Financing 60 of gap funding (including AHP
  request) secured at time of application

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Subsidy Per Unit(0-5 points variable)

• The extent to which a project uses the least
  amount of AHP subsidy per AHP-targeted unit
• Owner-occupied and rental projects scored
  separately on established point ranges
• Points will be awarded in .25 increments

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Community Stability

• Template review
• 25 point category broken into two focus areas for
  scoring purposes
• Planning 10 points
• Impact 15 points

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Community Stability Planning(up to 10 points)

• Planning
• 3 possible points for consistency with
  state/local/community plans
• Threshold consistency with local/state plan
• 1 point
• Consistency with specific community plan
• 1 point
• Consistency with special needs/homeless plan
• 1 point
• 7 possible points based on the quality of the
  state/local/community plan where the project is
  located

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Community Stability Impact (up to 15 points)

• Impact is measured using the following criteria
• Awarded designations up to 2 points
• Project must be located in community with
  designation
• Examples Main Street, Elm Street, Weed and Seed,
  Blueprint Community
• Related community activity/investment up to 2
  points
• Project is in community that has related
  community activities and investment
• Proof that community is moving forward with
  development or revitalization

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Community Stability Impact (cont.)

• Impact measures - 3 to 7 points
• Catalytic Project 7 points
• OR
• Neighborhood Stabilization Program
• 5 points lt 11 units
• 7 points 12 or more units
• OR
• Other impact elements
• 3 points lt 11 units
• 5 points 12 or more units

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Community Stability Impact (cont.)

• Other impact techniques 3 to 5 points,
  project
• must include one of the following activities
• Located in area of concentrated foreclosure under
  NSP
• Owner-occupied rehab with gt10,000 unit
• Creates homeownership in areas with homeownership
  rate less than 50
• Redevelops blighted property (if rehab, rehab
  costs gt25,000 per unit)
• Adaptively reuses a property i.e., warehouse
  into housing
• Rehabilitates a historic property (gt25,000 per
  unit costs)
• Preserves existing subsidized housing (rehab must
  be gt10,000 per unit)

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Community Stability Impact (cont.)

• Project Techniques up to 2 points, project must
  include 1 of 4 techniques
• creation of a community asset
• visitable units
• proximity to amenities
• security features
• Architectural compatibility 2 points
• Project is compatible with surrounding
  neighborhood

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Project Feasibility

• Projects may score well, but may not pass the
  feasibility review
• Review project feasibility guidelines in
  Attachment A of the AHP Implementation Plan

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Project Feasibility

• Feasibility factors
• Financial Structure
• Cost Reasonableness
• Need for Subsidy
• Market Demand
• Development Team Capacity
• Readiness to Proceed
• Discuss potential feasibility issues with CID
  staff early

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Things to Do Now

• Meet with your FHLBank member
• Complete individual/person registration if you
  are not previously registered
• Review online resources AHP Implementation Plan,
  AHP guide, subjective category guides, scoring
  templates, etc.
• Complete due diligence and start work on
  templates
• Request technical assistance

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Registering For The Funding Round

• Sponsors who previously registered during 2010
  AHP funding round
• New sponsor registration
• Member registration

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Previously Registered Sponsors

• If you know your user ID and password (PW), log
  onto Bank4banks and access the system as usual
• If you know your user ID, but forgot your PW, log
  onto Bank4banks and hit the reset link for
  Forgot your password?
• If you know your PW, but forgot your user ID,
  email CID
• Dorothy Pegdan at dpegdan_at_fhlb-pgh.com or
• Ann Killian at akillian_at_fhlb-pgh.com

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New Sponsor Registration

• New sponsors can register at any time by going to
  FHLBank Pittsburghs public website, clicking on
  the Bank4banks link in the lower left corner and
  then the community investment sponsor/consultant
  not registered yet link
• System will then prompt you to create user name/
  password, answer security questions and
  review/accept AHP Services Agreement
• Confirmation sent via email

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Member Registration

• Different than sponsor registration
• All member Bank4Banks access is done through the
  members Customer Security Administrator (CSA).
  To access the AHP system, individuals must be
  given AHP Role in Bank4Banks
• To find the CSA for your institution, you may
  contact Member Services at 1-800-288-3400, Option
  2, or Community Investment Department at
  1-800-288-3400, Option 3
• Most institutions have two CSAs. CSAs have the
  ability to authorize access to the AHP function
  of Bank4Banks. One CSA can create your account
  and the other will sign off as a second approver
• Once the CSA sets up your account, the system
  notifies Member Services and they send out a
  confirmation packet with your token and
  instructions for logging into the system
• NOTE members need to complete this registration
  only if they are not already an AHP user in
  Bank4Banks. If you previously submitted an AHP
  application in the 2010 funding round, you are
  already registered in Bank4Banks and do not need
  to complete the registration process again.

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Online Application

• Access to previous application information
• Financial forms attached to system easier to
  complete offline
• Navigation enhancements
• Messaging and alert features
• Summary screen to track progress

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If you initiated an application in the 2010A
funding round, this is what you will see
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Initiating an Application June 1
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If you are registering yourself in the AHP System
for the first time, you need to associate
yourself with an organization before continuing.
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On June 1, all potential applicants may begin
initiating an application.
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Accessing the Electronic Application
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Online Application Tips

• Register self and organization only ONCE call
  CID with Login ID Password questions
• 1-800-288-3400 option 3
• Save each page BEFORE moving on
• 15-minute inactivity period
• Click ? on each page for more info
• No smart quotes ( ) or ampersands () in the
  text boxes
• Read Financial Feasibility Spreadsheet
  instructions
• Contact CID if your project is out of district to
  ensure proper 221(d)(3) and 203(b) limits and zip
  code info

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Attaching Supporting Documents

• .zip, .xls,.doc or .pdf file
• Excel spreadsheets, maps, site control documents,
  zoning compliance, etc. if the file is zipped or
  in .pdf format
• Zip software http//www.winzip.com/ddchomea.html

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Member Role Post-Award

• Member/Sponsor/FHLBank execute AHP tri-party
  agreement when AHP funds are awarded
• AHP agreement establishes general roles and
  responsibilities
• Review Implementation Plan, Attachment C, for
  details on compliance/monitoring requirements
• Meet with member discuss details
• During construction
• After construction completion

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Member Role Post-Award

• Member and sponsor roles during
• construction
• Complete progress reports semi-annually until the
  project is complete
• Submit funding disbursement requests for subsidy
  draws (must submit first funding request draw
  within 12 months of application approval)
• Submit information for a compliance review at
  project completion

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Subsidy Disbursements

• Must have AHP system access to approve a funding
  request submission/approval process is all done
  on-line
• Tri-party agreement (direct subsidy agreement)
  must be executed, signed by member bank, project
  and FHLBank Pittsburgh
• Approved AHP retention documentation (i.e. AHP
  mortgage and note) for the amount of the AHP
  subsidy must be in place (be sure to have draft
  AHP retention documents approved by CID staff
  prior to executing and recording these documents)
• Sponsor prepares and submits the disbursement
  (funding) request, member will get an e-mail
  notification of the submission and are required
  to review the funding request
• If member feels that the sponsor did not
  adequately document the request something or need
  additional documentation, they can "reject" the
  funding request

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Project Completion Review Factors

• Scoring
• Income targeting
• Income verifications for 20 of households
• Executed and recorded AHP retention document
• Feasibility review
• Need for subsidy
• Subsidy delivery (Note)

• Subsidy use verification
• TDC verification
• Homeless verification
• Special needs verification
• Fair housing compliance
• Empowerment techniques verification
• Community stability verification

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Member Role Post-Award

• Member and sponsor roles after project
• completion
• Compliance reporting/monitoring during retention
  period
• Sponsors/members must provide requested
  documentation in a timely manner in order to
  complete required monitoring/compliance reviews

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Technical Assistance

• Technical assistance for FHLBank members and
  project
• sponsors is available
• Member assistance contact CID staff
• Sponsor assistance
• Go to AHP website and click on technical
  assistance link complete TA registration
  information and project consultation form
• Submit completed forms
• CID staff will initiate contact upon receipt of
  forms

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Community Investment ContactsAHP Technical
Assistance

• Eastern Pennsylvania and Delaware
• Dave Buches
• dbuches_at_fhlb-pgh.com
• 302-242-1257
• Central and Northeastern Pennsylvania
• Bill Joseph
• bjoseph_at_fhlb-pgh.com
• 570-823-0644

• Western Pennsylvania and West Virginia
• John Bendel
• jbendel_at_fhlb-pgh.com
• 412-288-2820
• Laura Rye
• laura.rye_at_fhlb-pgh.com
• 304-291-5485

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Community Investment Contacts Disbursement and
Monitoring

• Disbursements
• Linda Kruse
• linda.kruse_at_fhlb-pgh.com
• 412-288-3420
• Monitoring
• Terry Cronin
• terrence.cronin_at_fhlb-pgh.com
• 412-288-3438

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For more information on the 2011 AHP round, visit
the FHLBank Pittsburgh website www.fhlb-pgh.com
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• Questions?