Section 202/811 Capital Advance Programs

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Section 202/811Capital Advance Programs

• Basic Program Requirements

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Basic Program Requirements

• Purpose of Programs

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Basic Program Requirement

• To expand the supply of supportive housing for
  the elderly and for persons with disabilities.

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Basic Program Requirements

• What Funding Does HUD
• Provide?

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FY 2003 APPROPRIATIONS

• Section 202
• 783,286,000
• 683,036,000 for new units, amendments and PRAC
  renewals
• 50 million for service coordinator CHSP

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FY 2003 APPROPRIATIONS

• Section 202 (contd)
• 783,286,000
• 25 million for ALCP
• 250,000 transferred to Working Capital Fund
• 25 million for Section 202 Predevelopment Grant

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FY 2003 Appropriations

• Section 811
• 250,515,000
• 196,665,000 for new units, amendments, PRAC and
  tenant-based assistance renewals
• 53.6 million for tenant-based assistance
• 250,000 transferred to Working Capital Fund

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Section 202/811 Allocations

• 202
• 473.8 million/5,689 units
• 811
• 116.8 million/1,478 units

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HUD Funding

• Types of funds
• Capital Advance
• Project Rental Assistance

Funds reserved by formula
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Capital Advance Funds

• Covers the cost of developing the housing.
• Must be repaid if units are not made available to
  very low income elderly (202 projects) or very
  low income persons with disabilities (811
  projects) for 40 years.

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Capital Advance Fund Reservation Formula

• 202 projects and 811 projects (other than group
  homes)
• multiply approp develop cost limit (est based on
  unit size and elev or non-elev structure) by the
  no. of units of each size.

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Capital Advance Fund Reservation Formula

• 202 projects and 811 projects (other than group
  homes)
• Ex. 20 unit elev. proj. (5 0BRs and 15 1 BRs)
• 5 x 43,398 216,990
• 15 x 49,748 746,220
• 963,210

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Capital Advance Fund Reservation Formula

• 202 and 811 projects (other than group homes)
  (contd)
• Multiply result (963,210) by the high cost
  factor for the area in which project will be
  located.
• Ex. 963,210 x 156 (HCP) for Any City, USA
  1,502,600 fund reservation (rounded down to
  nearest 100)

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Capital Advance Fund Reservation Formula

• 811 group homes by no. of BRs and the development
  cost limit for the population of project
• (i.e., physically/developmentally disabled or
  chronically mentally ill).

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Project Rental Assistance

• The difference between approved operating
  expenses and tenant payments (30 of adjusted
  income)
• The initial term is 5 years.

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Project Rental Assistance

• Restricted up to first year of occupancy by
  formula
• - OCS x no. of revenue producing units or, if
  GH, of residents with disabilities

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Project Rental Assistance

• Operating expenses can include
• Service coordinator in 202 projects serving frail
  elderly
• Up to 15 per unit per month for services for
  frail elderly (202)

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Basic Program Requirements

• Sponsors Financial Requirements

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Sponsors Financial Requirements
Minimum capital investment 1/2 of 1 of the
Capital Advance up to maximum of 10,000(25,000
if 202 national sponsor)

• Other costs not covered by capital
• advance

Development costs exceeding original reservation
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Basic Program Requirements

• Who Can Apply?

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Sponsor (Applicant) Eligibility - Type of
Organization

• Section 202
• Private nonprofit
• Nonprofit Consumer Cooperative
• IRS tax exemption
• Public entity or instrumentality ineligible

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Sponsor (Applicant) Eligibility - Type of
Organization

• Section 811
• Nonprofit with IRS tax exemption under 501(c)(3)
• Public entity eligible if it has
• 501(c)(3)

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Sponsor Eligibility -Prohibited Relationships

• Individual Board members officers cannot
• Provide services to sponsor/owner for a fee
• Hire certain family members as development team
  members

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Sponsor Eligibility -Prohibited Relationships

• Individual Board members officers also cannot
• Have Identity or Conflict of Interest with other
  development team members, e. g.
• Gen. Contractor Attorney
• Consultant Land Seller
• Architect Management Agent

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Sponsor Eligibility-Prohibited Relationships

• Development team members
• Identities of Interest are prohibited between
  development team members
• e.g., Seller of Land cannot have Identity of
  Interest with the General Contractor

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Sponsor Eligibility-Permissible Relationship

• Sponsor or its Nonprofit Affiliate can be
• Management Agent
• Consultant or
• Service Provider
• Note No more than 2 paid officers/
  directors from the Sponsors/Affiliates Board
  can be on the Owners Board they must be
  non-voting

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Sponsor Eligibility-Religious Bodies

• Religious bodies are eligible
• Provided they submit required documentation
  including current IRS ruling

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Sponsor Eligibility-Religious Bodies

• If the project is selected
• Sponsor will form single asset Owner
• Owner cannot have any religious purposes

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Owner Eligibility -Type of OrganizationSection
202

• Single-purpose private nonprofit with IRS tax
  exemption under 501(c)(3) or 501(c)(4)
• Nonprofit Consumer Cooperative

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Owner Eligibility -Type of OrganizationSection
202(contd)

• For-profit limited partnership with a nonprofit
  as sole general partner
• - Only permitted to develop a
• mixed-finance project for
• additional units

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Owner Eligibility -Type of OrganizationSection
811

• Single-purpose nonprofit with 501(c)(3) tax
  exemption
• For-profit limited partnership with a nonprofit
  as sole general partner
• - Only permitted to develop a mixed-
• finance project for additional units

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Basic Program Requirements

• Who are Eligible
• Residents?

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Eligible Residents

• Section 202
• Very low income
• 50 of median income for applicable County
  household size
• One family member must be 62 or older

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Eligible Residents

• Section 811
• Very low income
• 50 median income for applicable County
  household size

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Eligible Residents

• Individual/family where one member is
  -18 years or older has one or more of the
  following disabilities Chronic Mental
  Illness Physical Disability Developmental
  Disability

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Requests for Restricted Occupancy (Section 811)

• Sponsors may request approval to restrict
  occupancy to
• a subcategory of the three main disability
  categories
• Submit detailed justification in Exhibit 5(b) of
  Application

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Basic Program Requirements

• What Methods of Development Are Eligible?

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Development Methods

• Sections 202 and 811
• New Construction
• Rehabilitation
• Acquisition with/without Rehabilitation

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Basic Program Requirements

• What types of Structures are Eligible?

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Eligible Structure Types

• Section 202
• Independent Apartment units

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Eligible Structure Types

• Section 811
• Independent Living Projects(ILPs) containing
  individual apartment units
• Condominium units
• Group Homes

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Eligible Structure Types- Apartment Units-Tenant
Unit Sizes

• Section 202
• Efficiencies 1 Bedroom only

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Eligible Structure Types- Apartment Units-Tenant
Unit Sizes

• Section 811
• Any size, however
• 3 Bedroom larger units must be occupied by
  families not unrelated individuals

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Eligible Structure Types- Apartment Units (Sec.
202 811)

• Maximum number of people per Section 811 ILP is
  14 persons with disabilities (an exception may be
  requested)
• One unit for resident manager
• Sec. 202-one or two bedroom unit
• Sec. 811-ILP one or two bedroom unit

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Eligible Structure Types- Condominium (Sec. 811
Only)

• Same as ILP units
• Cannot purchase separate unit for Resident Manager

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Eligible Structure Types-Group Home (Sec. 811
Only)

• Each Group Home
• Minimum of 2 maximum of 6 persons with
  disabilities
• Single or double occupancy
• Residents cannot be required to share a bedroom

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Eligible Structure Types- Group Home (Sec. 811
Only)

• One bedroom unit(apt.) for resident manager is
  permitted
• Two group homes cannot be located next to each
  other

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LAUREL GARDENS Colorado Springs

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Front Vestibule
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Proud Resident With Her Unit
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Basic Program Requirements

• Ineligible Facilities

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Ineligible Facilities

• Nursing homes medical facilities
• Sheltered workshops
• Intermediate Care Facilities
• Refinancing of Sponsor-owned facilities without
  rehabilitation

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Basic Program Requirements

• Ineligible Amenities

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Ineligible Amenities

• Jacuzzi, sauna, spa
• Swimming pool
• Bowling alley
• Balcony, deck, dishwasher, compactor, washer
  dryer in individual units
• Atrium

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Basic Program Requirements

• What Are the Design
• Standards?

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Design Standards

• HUD Minimum Property Standards
• Local Codes
• 202/811 Program Accessibility Requirements
  utilizing UFAS
• Section 504 of Rehabilitation Act of 1973 24
  CFR Part 8
• Fair Housing Act 24 CFR Part 100
• New construction only

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Basic Program Requirements

• Supportive Services

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Supportive Services

• Acceptance of Services cannot be a condition of
  occupancy.
• Funding
• 202 PRAC up to 15 per unit per month for svc
  coordinator in project serving primarily frail
  elderly.
• 811 from outside sources.

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Changes Applicable to both 202 and 811

• Applications should be mailed by the U.S. Postal
  Service, but not required
• Still no hand deliveries
• Minimum score raised from 70 to 75 points before
  bonus pts added

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Changes Applicable to both 202 and 811

• Entire application is Appendix A to the 811 NOFA
  and will also be available in a bound version.

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Changes Applicable to Both 202 and 811

• Form HUD-2530, Previous Participation
  Certification, must be included in application
• Sponsors must receive clearance to be selected.
• It is a curable deficiency.
• Sponsors may submit application proposing
  mixed-financing but not mixed-use.

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Changes Applicable to Both 202 and 811

• Organization of NOFA
• Info on of units/projects that can be applied
  for is included under Application Unit/Project
  Limits under Program Requirements instead of
  under Eligibility
• Information on Phase I and II is described in
  Sites under Program Requirements

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Changes Applicable to Both 202 and 811

• Organization of NOFA
• Program Requirements includes a paragraph
  indicating that a commercial facility for the
  benefit of the residents may be located in
  project but cannot be funded through cap advance
  or PRAC

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Changes Applicable to Both 202 and 811

• Application Requirements
• Supportive Services Plan is a separate Exhibit
  Exhibit 5
• Form HUD-424B is required which replaces
  Drug-Free Workplace (Form HUD-50070) and
  Certification Regarding Debarment and Suspension
  (Form HUD-2992)

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Changes Applicable to Both 202 and 811

• Application Requirements
• Form HUD-424 now includes information previously
  in Certification of Payments to Influence Federal
  Transactions (Form HUD-50071)

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Changes Applicable to Both 202 and 811

• Application Requirements
• If project will involve demolition and/or rehab,
  Phase I must include Asbestos Report identifying
  location and condition of asbestos and
  certification that it will be abated

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Changes Applicable to Both 202 and 811

• Application Requirements
• If project will not involve demolition and/or
  abatement, Phase I must include certification to
  same.

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Changes Applicable to Both 202 and 811

• Application Requirements
• A sample letter to be sent to the SHPO is
  provided as an Attachment 1 to application
  signed copy and SHPO response, if any, must be
  included in your application

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Changes Applicable to Both 202 and 811

• Application Requirements
• Supplemental Guidance to Choosing an
  Environmentally Safe Site relative to
  environmental issues such as endangered species
  is Attachment 3 to application

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Changes Applicable to Both 202 and 811

• Application Requirements
• Project Development Timeline listing major dev.
  stages/dates to get project to initial closing
  within 18 months, completion and final closing

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Changes Applicable to Both 202 and 811

• Application Requirements
• Project Development Timeline requirement responds
  to a change in Rating Factor 5 which is now
  Achieving Results and Program Evaluation in
  order to support Departments priorities for this
  FY.

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Changes Applicable to Both 202 and 811

• Scoring Changes
• Rating Factor 1
• Overall experience is raised to 15 pts.
• Experience in serving minorities and ties to the
  community, including the minority community, is
  divided into two criteria, worth 5 pts each.

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Changes Applicable to Both 202 and 811

• Scoring Changes
• Rating Factor 1
• Pts deducted for delay in reaching initial
  closing are increased to 4 with a gradation in
  pts based on length of delay.
• 1 pt no longer provided if you are a grassroots
  organization.

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Changes Applicable to Both 202 and 811

• In your description of how the project will
  promote energy efficiency, you should include any
  plans to use Energy Star labeled products and
  appliances.

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Changes Applicable to Both 202 and 811

• Other Scoring Changes
• Rating Factor 3
• Application will receive 1 point if you plan to
  incorporate visitability standards and universal
  design in development of project.
• Rating Factor 4 is reduced to 5 pts.

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Changes Applicable to Both 202 and 811

• Other Scoring Changes
• Rating Factor 5
• Renamed Achieving Results and Program
  Evaluation
• No longer rated on your involvement in the
  communitys planning process

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Changes to the Section 202 Program Only

• Allocation formula uses 2000 Census data and
  includes two data elements
• of elderly renter households of all sizes age
  65 and older paying more than 30 of incomes for
  gross rent
• of elderly households age 60 and older living
  alone with incomes below poverty level

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Changes to the Section 202 Program Only

• Scoring Changes
• Rating Factor 3 increased to 45 pts.
• Rating Factor 5
• Deleted criterion which provided 2 pts for your
  coordination efforts with other organizations.

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Changes to the Section 811 Program Only

• If you submit an application with site control
  for an independent living project you can, once
  again, request an exception to the 14 person
  project size limit.

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Changes to the Section 811 Program Only

• Added restriction under project size limits for
  an ILP
• if you are placing an ILP on the same or an
  adjacent site already containing housing for
  persons with disabilities, the total of persons
  served (in existing and proposed project
  combined) cannot exceed 14.

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Changes to the Section 811 Program Only

• In a group home, only a one-bedroom unit can be
  provided for a resident manager.
• The allocation formula consists of one data
  element from the 2000 Census the of
  non-institutionalized persons age 16 to 64 with a
  disability.

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Changes to the Section 811 Program Only

• Scoring Changes
• Rating Factor 1 is increased to 30 pts
• Due to the increase to 75 pts for selection
  eligibility, the two criteria relative to
  integrated housing have been combined into one
  and there will be a gradation of up to 5 pts
  based on whether the Sponsor has experience
  and/or the project qualifies as integrated
  housing.

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Changes to the Section 811 Program Only

• Scoring Changes
• Under Rating Factor 5 the two criteria with
  respect to the project implementing practical
  solutions and providing activities to improve
  computer access, literacy and employment
  opportunities have been combined and the new
  criterion is worth 2 points.

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Changes to the Section 811 Program Only

• Scoring Changes
• Rating Factor 3, Soundness of Approach, is
  increased to 40 pts.
• Site Approvability is increased to 10 pts.
• Site promoting greater choice for minorities is
  increased to 10 pts.

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Changes to the Section 811 Program Only

• Scoring Changes
• Involvement of persons with disabilities in
  development of application and coordination of
  application with other organizations have been
  shifted from Rating Factor 5 to Rating Factor 3.

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Changes to the Section 811 Program Only

• Scoring Changes
• Rating Factor 3
• The two criteria for project design have been
  combined for a total of 4 pts.
• Rating Factor 5
• The two rating criteria with respect to the
  project implementing practical solutions and
  providing activities to improve computer access,
  literacy, etc. have been combined for a total of
  2 pts.

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Section 202/811 Capital Advance Program

• NOFA Process

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Application

• Order from
• (800)HUD-8929
• OR
• (800)HUD-2209 TTY
• Download from WEB www.HUD.gov

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Section 202/811 Capital Advance Program

• FY 2003 NOFA

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Submission Deadline

• June 13, 2003
• Mail to applicable Multifamily Program Center
  (see listing in Appendix B to 811 NOFA)
• Projects in the areas of
• Wash., DC mail to HUD Baltimore Ofc
• Cincinnati, OH mail to HUD Columbus Ofc
• Sacramento, CA mail to HUD San Fran. Ofc
• Grand Rapids, MI mail to HUD Detroit Ofc

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Method of Submission

• Should mail applications by US Postal Service
• HUD CANNOT accept hand delivered applications

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Method of Submission (contd)

• US Postal Service Mail
• Postmarked on or before midnight of deadline
• Received in HUD office within 15 days of due date
• Proof of mailing by deadline required
• Must have a Certificate of Mailing (USPS Form
  3817) as proof of timely mailing

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NOFA

• Staff Roles

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Role of HUD Staff

• Between SuperNOFA publication deadline
• Will conduct workshops
• Will provide general program guidance
• Cannot assist in preparation of application

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Role of HUD Staff

• Between deadline release of selections
• Will request information
• to clarify
• to correct curable deficiency
• Will not request information to improve quality
  of Exhibits affecting rating

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Role of HUD Staff

• Will not consider unsolicited information
• Will not provide information on status of
  application
• Except those that have been rejected on a
  technical basis

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Role of Sponsor

• You should ensure representatives are available
  to respond to requests for information

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Review of Applications

• Schedule
• June 13, 2003 Application Deadline Date
• HUD Office will send you an Acknowledgment Letter
• HUD screens each application for completeness and
  issues Curable Deficiency Letters by June 23, 2003

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Review of Applications (contd)

• Curable Deficiency letter
• Missing or incomplete Exhibits that do not affect
  rating
• 14 calendar days to respond
• Will Fax if Fax number provided in Exhibit 1

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List of Curable Deficiencies(Exhibits identified
by an asterisk () must be dated on or before the
application deadline date.)

• Exhibits
• (1) Form 92015-CA or 92016- CA
• (Application form)
• (2)(a) Articles of Incorporation
• (2)(b) By-laws
• (2)(c) IRS tax exemption ruling

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Curable Deficiencies (contd)

• (4)(c)(ii) Energy efficiency
• (4)(d)(i) Evidence of site
• control (202 Only)
• (4)(d)(ii) Evidence site is free of
  limitations, restrictions,
  or reverters
• (202 Only)

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Curable Deficiencies (contd)

• (4)(d)(vi) Phase I Environmental Site
  Assessment (202 Only)
• (4)(d)(vii) SHPO Letter
• (4)(d)(viii) Seek Alternate Site (811 Only)

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Curable Deficiencies (contd)

• 8(d) Form HUD-2880, Appl/Recipient
• Disclosure/Update Report
• (e) Form HUD-2991, Cert. of
• Consistency with Consolidated Plan

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Curable Deficiencies (contd)

• 8 (f) Form HUD-92041, Conflict of
• Interest Resolution
• (g) Form HUD-92042, Resolution
• for Commitment to Project
• (i) Form HUD-2530, Previous
• Participation Certification

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Curable Deficiencies (contd)

• Section 811 Only
• 8 (j) Form HUD-92043,
• Supportive Services
• Certification

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