What s New? General Overview

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2 What s New? General Overview Program Funds Available Schedule Application Materials 2

3 UF Review Process Early Awards UF 2017 Funding Pilot/Initiatives Program Information New Subsidy Programs Existing Subsidy Programs Credit Programs 3

4 Underwriting Architecture & Engineering HCR Fair and Equitable Housing Office Affirmative Fair Housing Marketing Plan Section 3 VAWA HCR Office of Economic Opportunity and Partnership Development M/WBE SDVOB Technical Assistance Questions & Answers 4

5 New Funding Programs Homes for Working Families (HWF) Public Housing Preservation Program (PHP) Multifamily Preservation Program (MPP) New Early Award State Housing Goals Downtown Revitalization Initiative Projects Upstate Revitalization Initiative Projects NYS OMH Capital Projects DHCR/HTFC Portfolio Preservation Projects 5

6 New 9% LIHC Program Set-Aside for Housing Opportunity Projects (up to $5m) Increased 9% LIHC Set-Aside for ESSHI and Supportive Housing Projects (up to $5m) Higher Program Funding Limits for projects: Housing Trust Fund Program - $2.4m ($3.4m for HOP projects) NYS HOME Program - $2.4m ($3.4m for HOP projects) Supportive Housing Opportunities Program see RFP for per unit max award amounts and its geographic basis 6

7 New procedures for requesting and scheduling Technical Assistance New Underwriting Conventions Accessibility Affidavit Section 8 Project Based Voucher program modifications 7

8 An annual, regionally-based, competitive funding opportunity for affordable multifamily housing. A single, web-based application to access funding from multiple State and federal programs UF 2017 is offering 11 different funding sources to prospective applicants 8

9 The UF regional competition is based on New York State s 10 Economic Development Regions 9

10 HCR may review a Unified Fund application under any program for which the proposed project is eligible HCR may change or disallow aspects of an application as a condition of award May consider 9% applications under HFA open window 4% RFP Flexibility for developers to consider different options Provide for market and site-specific needs Encourage leveraging Advance housing goals Coordinated investment with jurisdiction and agencies Mixed income and mixed use development encouraged Integrated, supportive housing encouraged 10

11 HOME Low-Income Housing Credit (LIHC) NYS Low-Income Housing Tax Credit (SLIHC) Housing Trust Fund (HTF) Supportive Housing Opportunity Program (SHOP) Public Housing Preservation Program (PHP) Approximately $7,000,000 Approximately $28,000,000 Approximately $4,000,000 Approximately $65,200,000 Approximately $35,000,000 Approximately $10,000,

12 Multifamily Preservation Program (MPP) Middle Income Housing Program (MIHP) Rural and Urban Community Investment Fund (CIF) Homes for Working Families Program (HWF) Approximately $15,000,000 Approximately $16,000,000 Up to $44,900,000 Up to $4,000,000 Section 8 Project-Based Vouchers 100 *Subject to available appropriations/authorizations 12

13 July 17, 2017: Notices of Funding Availability and Notice of Credit Availability issued August 18, 2017: Request for Proposals issued September 2017: Application Workshops 9/7 - Rochester 9/8 - Albany 9/11- NYC October 5, 2017: Early Application Deadline November 7, 2017: Early ESSHI Application Deadline December 5, 2017: Standard Application Deadline December 2017: Early Awards Anticipated April 2018: Standard Awards Anticipated 13

14 UF 2017 Request for Proposals (RFP) UF 2017 Project Application CD Online (CDOL) Capital Project Application On-Line Instructions UF 2017 CD-Online Application Screen Shots HTFC Design Handbook Capital Programs Manual (CPM) 14

15 DHCR s Low-Income Housing Credit Qualified Allocation Plan (DHCR 9% LIHC QAP) NYS Low-Income Housing Tax Credit Article 2-A Public Housing Law (SLIHC Statute) NYS Low-Income Housing Tax Credit Program (SLIHC) Regulation 9 NYCRR Part 2040 Section UF 2017 Reference Materials UF 2017 Capital Application Presentation 15

16 SHPO Walk Through Guide and Contact List Unified Funding Q&A Pre-Qualified Market Analyst List Affirmative Fair Housing Marketing Plan Fillable Form Affirmative Fair Housing Marketing Plan Guide for Managing Agents, Owners and Developers 16

17 Pre-Application Technical Assistance Eligibility Rating Underwriting Design Selection Criteria Awards 17

18 Required Pre-Application Technical Assistance (see RFP for guidelines on Requesting TA) All Early Award Applications All applications proposing special needs/supportive housing preference for 60% or more of project units (TA recommended for other supportive housing projects) TA session with HCR and OPWDD for projects serving OPWDD client population All applications proposing the use of historic tax credits (Must have SHPO Participation. See SHPO contact list) 9% LIHC Mixed-Income Initiative Neighborhood Revitalization Cross-Subsidy Pilot All Community Investment Fund applications 18

19 Submit a complete application by 5 pm, October 5, 2017 (for ESSHI, by 5 pm, November 7, 2017) Mandatory Pre-Application Conference with HCR Development Director and project/technical staff. Must also submit preliminary application documents including: Attachment F9, Proposal Summary Exhibit 3, Development Budget (identify HCR funding sources) Exhibit 4, Rent Plan Exhibit 5, Operating Budget Attachment B3, Preliminary Plans Attachment B6 (LIHC) or B132 (HTFC) Physical Needs Assessment Form for rehab projects (see RFP guidance) Demonstrate readiness to proceed to construction within 120 days of award (180 days for NYC). Past performance is a critical consideration The application must clearly advance one of the following State housing goals identified in the RFP. 19

20 Additional required submissions to demonstrate readiness: Title report Submissions if available: Firm commitments or letters of interest with term sheets for all sources of financing Evidence that tax exemption or tax abatement has been approved OR certification of sponsor that the process for obtaining exemption/abatement has begun, and it will be available at the time of loan closing 20

21 Early Awards Revitalization & Economic Development Goals Priority Projects Identified in Regional Economic Development Plans - Project specifically endorsed in Regional Economic Development Council Strategic Plan and for which significant financial assistance has been made available as part of the plan. Downtown Revitalization Initiative Projects Project clearly advancing objectives of an approved DRI strategic investment plan. Priority for DRI projects for which significant financial assistance has been made available as part of the Plan. 21

22 Upstate Revitalization Initiative Projects Project specifically identified in an Upstate Revitalization Initiative Plan for which at least a portion of project units will be affordable to low and/or moderate income households and for which significant financial assistance has been made available pursuant to such a Plan. 22

23 Early Awards Revitalization & Economic Development Goals Mixed-Income/Mixed-Use Revitalization Projects Must serve a mixed use neighborhood and be a part of a neighborhood specific revitalization effort. Must target at least 15% households with incomes above 60% of Area Median Income and have clear local support and commitment of local resources. Must involve the reuse of existing buildings OR infill new construction OR demolition and replacement of buildings having a blighting impact on the community. RFP establishes preferences within this Early Award policy goals, including new Comprehensive Workforce Development Plan preference. 23

24 Early Awards Supportive Housing Goals Empire State Supportive Housing Projects Must have a Conditional Award Notification through the Empire State Supportive Housing Initiative, Inter-Agency Service and Operating Funding Opportunity RFP and for which at least 50% of the project s total units will serve an eligible target population. NY/NY III Projects Must have secured a commitment of NY/NY III or service and operating subsidy for at least 50% of the project s total units. NYS Office of Mental Health Capital Projects Must have a commitment from NYS OMH for capital and operating subsidy for at least 50% of the project s total units. 24

25 Early Awards Workforce Opportunity Goals Housing Opportunity Projects Family projects in areas with the following characteristics: Experiencing economic growth Stable or growing tax base Close proximity to public transportation (1/2 mile safe walking distance with regularly occurring transit), child care and employment opportunities Located in census tracts identified in UF 2017 Reference Materials Must provide average of 2 bedrooms LIHC basis boost may be requested 25

26 Rural Preservation Projects Must propose rehabilitation of project receiving RRAP funds that extends the life of the project by no less than 20 years and at least 90% of TDC directly related to hard costs Public Housing Redevelopment Must proposed the gut rehabilitation and/or demolition and replacement of substandard public housing outside the City of New York. 26

27 Early Awards Affordable Housing Preservation Goals DHCR/HTFC Portfolio Preservation Projects Must be currently regulated by NYS DHCR and/or NYS HTFC Must have significant unmet physical needs that cannot be addressed solely through the use of project reserves and mismanagement is not a significant contributing factor Scope of work must extend the useful life of the project no less than 20 years and satisfy heightened energy efficiency standards specified in the UF 2017 RFP 90% of TDC must be directly related to physical improvements (excluding roll over debt) Can only request MPP under this goal Limited to $2 million/$50,000 per unit 27

28 Homes for Working Families (HWF) New construction financed with NYC Housing Development Corporation tax-exempt bonds and 4% as-of-right LIHC issued by NYC Department of Housing Preservation & Development May not be combined with any other UF 2017 funding programs, including PBVs Must be able to close on construction financing by 6/30/

29 Public Housing Preservation Program (PHP) Rehab and/or demolition and replacement through new construction of site-specific multifamily rental housing owned by federal PHA s Per project limit $2.4m/$50,000 per unit limit with a household income up to 60% AMI Cannot be combined with HTF/HOME, SHOP or MIHP Can request PBVs if not in RAD1 program 29

30 Multifamily Preservation Program (MPP) Rehab of site-specific multifamily rental housing currently regulated by NYS DHCR and/or NYS HFTC Per project limit $2 m/$50,000 per unit limit with a household income up to 60% AMI Must be in service for at least 20 years with a preference for projects placed in service at least 25 years ago 90% of TDC must be directly related to physical improvements Must meet UF 2017 Energy Standards Streamlined application and competition limited to other MPP applications Cannot be combined with any other UF 2017 funding program, except PBVs 30

31 Approximately $65.2 million available $2.4 million per project limit; up to$3.4 m for projects meeting the 9% LIHC set-aside HOP requirements HTF per residential unit cap - $125,000 Permanent and/or construction financing available Must benefit households < 90% of AMI (in NYC < 80% of AMI) 31

32 Preference for projects with a substantial number of units < 50% AMI Up to 10% of HTF award amount may be used for a community service facility Developer Allowance up to 10% of TDC excluding acquisition and project contingency Up to 50% of HTF award may be used for acquisition For more info see UF 2017 RFP 32

33 All HOME units in UF capital projects must be targeted to households < 60% AMI $2.4m per project limit; up to $3.4m for projects meeting the 9% LIHC set-aside HOP requirements HOME projects funded with 9% LIHC will be required to use HOME as construction financing 33

34 Utility Allowances in HOME Projects 2013 HOME Final Rule (24 CFR Part 92) requires tenant utility allowances to be established using either the HUD Utility Schedule Model or a project-specific methodology HCR will require an Energy Consumption Model (ECM) compliant with IRS regulations (26 CFR (b)(4)(E)) to be used to establish project-specific utility allowances in funded HOME projects (See Section 5 of the CPM for more information) ECM is not required at application, but any HOMEfunded project will need to satisfy this requirement prior to construction start 34

35 Utility Allowances in HOME Projects HOME awardees must use the UA established by the ECM for all HOME funded units Public Housing Authority (PHA) Section 8 utility allowances may only be used for HOME funded units that have Project-Based Section 8 rental assistance 35

36 Projects must be completed in 4 years or HOME funds recaptured by HUD Federal NEPA environmental review timeframe must be considered in setting HOME project development timetable NEPA must be completed and approved by HCR prior to any choice-limiting activities (i.e., AHAP execution, site preparation or construction) or award will be terminated CHDO projects HOME funds must be expended within 5 years or recaptured Rental units must be occupied within 18 months of project completion or project will lose funds for those units 36

37 Per unit limits: NYC, Westchester, Long Island Up to $150,000 per supportive housing unit Up to $110,000 per other housing unit Rest of state Up to $85,000 per supportive housing unit Up to $60,000 per other housing unit Can be used with HTF provided HTF is used to subsidize units targeted to households above 60% AMI exclusively Cannot be combined with HOME PBVs may only be requested for non-supportive units in the project 37

38 Minimum of 30% of project units for supportive housing, no maximum percentage Projects serving ID/DD populations must include a letter of support from OPWDD for at least one-half of the TPC for those units Supportive unit rents must be underwritten to at least 50% AMI (may be higher based on operating needs of project) At least 50% of the units in the project must be affordable to households earning no more than 60% of AMI 38

39 The MIHP provides financing assistance for acquisition, capital costs and related soft costs associated with the new construction of, or the adaptive reuse of non-residential property to, affordable middle income housing units. Must include units targeted to households between 60% - 130% AMI Must be requested in combination with 9% LIHC MIHP requests subject to standard 9% LIHC gap analysis and cash flow limits 39

40 No per project limit/$200,000 per unit limit In areas with market conditions that can support conventional financing or when MIHP is combined with other available financing sources, lower per unit MIHP subsidies will be expected. Applications will be carefully reviewed to ensure that MIHP units are not over-subsidized. Minimum regulatory term increased to 50 years to match LIHC RA requirement MIHP may not be used in senior projects 40

41 HCR is seeking MIHP applications leveraging significant amounts of capital support from non- HCR sources and advancing one or more of the specific housing goals of the State and MIHP program. Additional funding priorities and preferences: Projects that advance State Housing Goals Projects with at least 25% of residential units targeted to households above 90% AMI up to 130% AMI in HUD designated QCTs or transitional neighborhoods Projects where at least 50% of the dwelling units contain two or more bedrooms NYS Brownfield Cleanup Program Projects 41

42 RENT ADVANTAGE LIMITS For MIHP projects located in a HUD designated Qualified Census Tract (QCT) or a transitional neighborhood, HCR will allow up to a 20% rent advantage for middle income tenants to encourage higher income hh to reside in these neighborhoods e.g. A MIHP unit with rent set at 94% AMI affordability may be rented to hh up to 114% AMI IT CANNOT BE TARGETED TO 120% or 130% AMI Unit will be regulated at a maximum of 114% AMI 42

43 RENT ADVANTAGE LIMITS For MIHP projects not located in a QCT or transitional neighborhood, MIHP units should be targeted to no more than the top of the income band at which the rent is affordable e.g. a MIHP unit with rent set at 75% AMI should be targeted at or below 80% AMI etc. 43

44 The FY budget included an allocation of $44,900,000 for the Rural and Urban Community Investment Fund (CIF). In previous funding rounds, CIF could be used to: support retail, commercial or community facility components of mixed-use affordable housing developments in urban and rural areas, or; to support the preservation and rehabilitation of existing affordable housing in rural areas. In this round CIF may also be used to: Assist regulated projects recommended by HCR Assist with the adaptive reuse or rehabilitation of mixed use buildings in rural village centers containing 8-20 residential units. Assist with the adaptive reuse or mixed use (new & rehab) construction statewide within a DRI. Funding priorities and underwriting considerations are established in the UF 2017 RFP

45 Per Project caps: Up to $2 million per project/$40,000 per unit for Early Award Rural Preservation Projects; The lesser of $2 million per project for retail, commercial or community facility space or the amount need to ensure that project income will be sufficient to support the cost of financing and operating the space of the non-residential portion of the project; Up to $2 million for preservation of HCR-regulated affordable housing and residential rural affordable housing preservation (may request CIF and Section 8 PBVs only); Up to $3 million for the adaptive reuse of non-residential structures and/or rehabilitation of currently unregulated housing part of 8 to 20 residential unit mixed-use project in rural village centers (may request CIF only) Up to $3 million for mixed-use projects that clearly advance a Downtown Revitalization Initiative approved strategic plan. Per Residential Unit caps: Up to $40,000 per housing unit with a household income limit of up to 60% AMI for affordable housing preservation. Up to $150,000 per affordable housing unit for the adaptive reuse of non-residential structures and/or rehabilitation of currently unregulated housing as part of 8 to 20 units mixed-use projects in rural village centers. Up to $150,000 per affordable housing unit for mixed-use projects that clearly advance a Downtown Revitalization Initiative approved strategic plan

46 Subject to appropriation, HDF Program loan funds may be requested as low-interest construction financing to eligible not-for-profit applicants proposing HOME/HTF, SHOP, CIF or MIHP as permanent financing. HDF can only be used on units subsidized by MIHP for units targeted at or below 90% of AMI outside of NYC and at or below 80% of AMI in NYC Applicants considering HDF to bridge an HTF/HOME permanent loan should discuss with Regional Office prior to application submission. HDF loans may involve additional processing time due to additional state agency approvals. 46

47 Up to 100 units of PBV assistance for projects financed through HTF, LIHC, SLIHC, HOME, MPP, PHP* and/or SHOP* Applicants should fully review program regulations (24 CFR 983) to ensure the project is consistent with HUD requirements. Applicants may only request PBVs for projects in local program areas serviced by HCR s Section 8 Voucher Program and its network of Local Administrators NEPA Review must be completed Subsidy layering review required - Developer and Builder Fees capped at HUD Safe Harbor Limits *PHP projects participating in RAD1 may not request PBVs; PBVs can only be requested for non-supportive units in SHOP Projects 47

48 May be used to assist senior, family or workforce housing All PBV units must targeted to households at or below 30% AMI May also be used for the preservation of projects currently regulated by HCR, if need is demonstrated; may assist existing tenants < 50% AMI but must be first prioritized for HH < 30% AMI; upon turnover all PBV subsidized units must be targeted to < 30% AMI Maximum PBV request is 25 units or 25% of a project's total units, whichever is greater see RFP for special population exceptions to the limit 48

49 SLIHC available: $4 million (Additional $4m available through current Open Window RFP issued by HCR/HFA) SLIHC max. per project: $500,000 or SLIHC max. per project: $750,000 (If 10% or more of project units are affordable and targeted to households with incomes above 60% of AMI) Program modeled after LIHC except units affordable to households < 90% AMI (40% 90% or less of AMI) 49

50 UF 2017 LIHC available: Approximately $28 million LIHC max per project Standard project: $1.43 million Project w/50% or more units for large families $1.65 million LIHC max. per unit: $22,000 Importance of leveraging non-hcr funds LIHC-assisted units must benefit households < 60% AMI For acquisition, rehabilitation and new construction of residential units 50

51 9% LIHC Set-Aside ($10 million) ESSHI and Supportive Housing Project Set-Aside ($5 million) Supportive Housing Projects Section (u) Meet QAP definition (QAP Section (u)) and RFP provisions 50% of project units must serve persons with special needs, including provision of supportive services Pre-application conference to review proposal and Olmstead consistency required Empire State Supportive Housing Projects (ESSHI) must have a Conditional Award Notification through the Empire State Supportive Housing Initiative, Inter-Agency Service and Operating Funding Opportunity RFP to fund appropriate services for targeted population; preference in tenant selection to persons with special needs for at least 50% of the project units; and Meet QAP Supportive Housing definition (capital financing requirement may be met by requesting SHOP funds under UF 2017 application process). 51

52 Housing Opportunity Project Set-Aside ($5 million) Must be located in eligible census tract (see UF 2017 Reference Materials) Must have average of 2 bedrooms per project HOP project may not be intended for and solely occupied by persons 62 years of age or older or intended and operated for occupancy by persons 55 years of age or older May be eligible for a 130% LIHC basis boost based on a DHCR designation 52

53 Significant QAP/RFP application review considerations: Project site suitability and project location considerations LIHC/SLIHC 50 year minimum regulatory term Enhanced credit/financial background reviews of applicant and/or development team principals via Lexis/Nexis (including collection of EIN s for all development team members in UF application) No contractors/sub-contractors on federal or state debarment lists Pre-selected General Contractors must complete Omnibus Certification 53

54 Significant QAP/RFP application review considerations (continued): Cost effectiveness (threshold and scoring standards) Notification requirements for non-compliance, identity of interest, pertinent litigation, changes in project scope, owner/development team and budget For funded projects, changes which impact competitive scoring may result in scoring reductions on future projects. Applications may be deemed ineligible for funding if developers, owners and/or managers with overdue HTFC debt service payments have not been satisfactorily resolved as determined by HCR Asset Management Unit and HTFC Finance Office. 54

55 Limited to new construction of family projects in NYC, Westchester, Nassau & Suffolk Counties Refer to RFP for 9% LIHC Mixed-Income Initiative Program requirements Read RFP rent burden requirements carefully to ensure rents on units over 60% AMI meet HCR requirements Applicants MUST schedule a TA session with HCR staff 55

56 Projects must either be in a QCT advancing the Mixed Income/Mixed Use Revitalization State Housing Goal AND/OR transitional neighborhoods between economically vibrant and economically challenged neighborhoods Credit equity generated by the LIHC/SLIHC units can be used to help cross-subsidize middle and moderate income units Refer to RFP pages for more specific guidance Applicants MUST schedule a TA session with HCR staff 56

57 Non-HCR financed space: submission requirements must submit in CDOL, development and operating budgets for the entire project, including portions not to be financed by HCR or to be owned by an entity other than the LP/LLC owner of the affordable residential project HCR must be able to see a viable plan of finance for the entire project 57

58 Limit on Maximum Developer Fee Payable During Construction 10% max projects w/for-profit developer 15% max projects w/not-for-profit developer The remaining developer fee must be deferred, and reflected in the development budget as a construction financing source. 58

59 Minimum Permanent LIHC/SLIHC Developer Fee Deferral Requirement All projects with cash flow over $35 pu/pm are now required to defer developer fee as a permanent financing source in an amount equal to the total cash flow over $35 pu/pm for the project s first 15 years of occupancy Example: 65 unit project $ 27,300 annual cash flow at $35 pu/pm $409, year cash flow at $35 pu/pm $875,000 total projected 15 yr cash flow $465,500 Amount over $35 pu/pm to be deferred 59

60 Maximum Permanent LIHC/SLIHC Developer Fee Deferral Allowed at time of Application Generally HCR will not allow more than 1/3 of the developer fee to be deferred as a financing source at the time of application Developer fee provides additional cushion against cost increases However, for NYC projects involving significant financing from a housing program of the City of New York, we will allow more than 1/3 of the developer fee to be deferred, if that is an underwriting requirement of the City program 60

61 For Attachment D2 Operating Budget Documentation and Attachment D3 Funding Commitments, please group the required documents into one PDF file for each Attachment. 61

62 Middle income units: must be HCR regulated to claim developer fee on these units developer fee on units over 60% AMI/90% AMI cannot be included in LIHC/SLIHC eligible basis Non residential space: no developer fee may be claimed on non-residential space with exception of 9% LIHC eligible Community Service Facilities 62

63 HCR Construction Financing available: 0% interest rate Legal fees $2,500/Construction monitoring $15,000 May not be requested for OPWDD financed projects HCR Permanent Financing 30 years - 1% interest only payable 1% must be budgeted above-the-line in the operating budget HCR underwrites the debt as payable ahead of all subordinate debt, including deferred developer fee loans. 63

64 For financings without LIHC or SLIHC Capped at 10% of TDC, excluding acquisition and project contingency Limit on Maximum Developer Allowance Payable During Construction 10% max projects w/for-profit developer 15% max projects w/not-for-profit developer The remaining developer allowance must be deferred, and reflected in the development budget as a construction financing source. 64

65 Projects with a conventional permanent bank loan: Initial cash flow at the greater of up to $35 p/u per month OR the amount necessary to meet the lender s/mortgage insurer s debt coverage requirements Projects with no permanent bank loan: Initial cash flow may exceed $35 pu/pm in order to maintain positive cash flow through 15 years LIHC/SLIHC projects: developer fee equal to the total amount cash flow over the $35 pu/pm limit for 15 years must be deferred as a permanent financing source 65

66 Sponsors of mixed-income projects under the 9% LIHC mixed-income initiative, MIHP, and/or Neighborhood Revitalization Cross Subsidy Pilot: carefully read the rent burden requirements detailed in the RFP Units > 60% AMI, no more than a 20% differential between the rent affordability level and the maximum HH incomes targeted by the project allowed & only for projects in QCTs or transitional neighborhoods 66

67 In mixed-use projects, Historic Tax Credit (HTC) equity must be allocated to the residential and commercial spaces according to the HTC basis contributed by the eligible cost of each space Applicants may not use HTC equity generated from residential cost basis as a financing source for the non-residential space 67

68 Refer to the UF RFP and Section 5 of the Capital Programs Manual for specific project underwriting criteria. CPM is being updated to reflect UW changes - check website for updated version by the end of next week Technical assistance prior to application submission strongly encouraged Follow the Technical Assistance procedures outlined in the RFP 68

69 Use Current Forms Download attachments from CDOL link. Follow instructions 69

70 Required For All Projects: 70

71 Required For All Projects at Application: 71

72 Required For All Projects at Application: 72

73 Attachment B3 (Preliminary Plans) 10 MB limit to file size Group multiple drawing sheets into single files Save files at a resolution that is readable on standard computer monitors 73

74 Attachment B3 (Preliminary Plans) Group multiple drawing sheets into single files This is what we see: Avoid this

75 Strategies primarily for new construction and substantial rehabilitation. NYSERDA LRNCP (low rise) NYSERDA MF NCP (mid to high rise) EPA ENERGY STAR Certified Homes EPA ENERGY STAR Multifamily High Rise Program Enterprise Green Communities 2015 (or newer) criteria 75

76 Strategies for historic and moderate rehabs. Historic rehab & adaptive re-use Fully implement one of first four standards, or NYSERDA Energy Smart (or equivalent) Consult with HCR & NYSERDA Moderate rehab: Option one: Meet current energy code for new buildings Option two: Reduce overall energy usage by 20% NYSERDA-MPP: (for existing buildings) Can be used to meet HCR 20% energy reduction * First NYSERDA-MPP Tier is 20-24% energy savings target 76

77 Mandatory requirements (as applicable) Lead-safe work practices (pre 1978) Test water systems in existing buildings Radon mitigation (EPA radon zones 1 & 2) ENERGY STAR appliances (all projects) ENERGY STAR equipment (all projects) ENERGY STAR/high efficiency lighting (all projects) Low VOC building products (all projects) Integrated pest management (all projects) 77

78 Optional program participation Enterprise Green Communities Criteria (3 pts.) 2015 (or newer) criteria NYC Enterprise Green Communities overlay LEED Silver Level (3 pts.) Version 4 BD+C Homes Version 4 BD+C Multifamily Midrise National Green Building Standard Silver Level (3 pts.) ICC/ASHRAE National Green Building Standard 78

79 Optional program participation Passive House (5 pts.) Passive House Institute US, or Passive House Institute NYSERDA Comprehensive Option for Multifamily Affordable Buildings A subset of NYSERDA-MPP (For existing buildings- moderate rehab) 30% Energy Reduction Target (3 pts.) 35% Energy Reduction Target (5 pts.) 79

80 Must request an AE site visit no later than 30 days prior to the application deadline Set up the site visit through the mailbox Provide a draft of the Physical Needs Assessment Form, or preliminary plans for substantial, gut-rehabilitation Use the correct application attachment (PNA Form) B6 for LIHC and/or SLIHC stand alone projects B13 for jointly funded HTFC & LIHC/SLIHC projects PNA not required for substantial, gut-rehabilitation HTFC Refer to the Design Handbook Appendix F-HTFC Preservation Standards when determining the Physical Needs Assessment scope of work 80

81 Federal, New York State, and local fair housing laws protect individuals from unlawful discrimination in housing. These laws aim to promote equal opportunity and prohibit discriminatory practices that unfairly limit the housing choices of protected groups or individuals. The role of HCR s Fair and Equitable Housing Office is to ensure that the agency and our awardees comply with the Fair Housing Act ( FHA ), the New York State Human Rights Law ( NYSHRL ), and any applicable local fair housing laws. 81

82 HCR requires that multifamily development carry out a marketing strategy to attract prospective renters, regardless of race, creed, color, national origin, sexual orientation, military status, sex, gender identity, age, disability, marital status, or familial status. Each development must create and execute an Affirmative Fair Housing Marketing Program ( AFHMP ), which provides the opportunity to conduct additional marketing to groups who may require targeted outreach in order to be made aware of and apply for housing. AFHMPs are reviewed by HCR s Fair & Equitable Housing Office ( FEHO ) to help ensure that HCR awardees comply with the FHA and NYSHRL and to help promote the adoption of fair housing best practices in housing funded by New York State. 82

83 To streamline and standardize the review process, HCR updated its AFHMP policy and launched a new online template for submitting marketing plans. The AFHMP Guide provides a detailed description of what is required for each section of your marketing plan: Areas of Significant Interest During FEHO s Review: Individual Assessment for Applicants with Criminal Convictions Federal Requirements Pursuant to the Violence Against Women Act ( VAWA ) Fair Housing Training Outreach Efforts to Least Likely to Apply Populations 83

84 VAWA 2013 provides additional housing protections for victims of violence, regardless of sexual orientation. VAWA 2013 also expands VAWA protections to additional housing programs, which now includes the Low Income Housing Tax Credit ( LIHC ) program. HCR requires all awardees to comply with the VAWA requirements as set forth in HUD s final rule. For additional information regarding complying with the VAWA requirements, please consult the AFHMP Guide and FEHO s website

85 In April 2016, HUD released guidance detailing that a policy of automatically rejecting applicants with criminal convictions could violate the Fair Housing Act. HCR issued its Re-Entry Guidelines to provide guidance for applying New York State s antidiscrimination policies when assessing applicants for state-funded housing who have criminal convictions. Tenant selection procedures may only consider convictions or pending arrests for offenses that involved physical danger or violence to persons or property or that adversely affected the health, safety and welfare of other people. HCR guidelines require housing providers to conduct an individualized assessment when determining an applicant s eligibility. The individualized assessment is not an appeal process. Instead, it must be conducted prior to an initial determination of an applicant s eligibility. The Re-Entry Guidelines and Individualized Assessment, as well as a webinar regarding this policy are all available on FEHO s webpage

86 Compliance with Section 3 of the federal Housing and Community Development Act of 1968 Section 3 is intended to ensure that when employment or contracting opportunities are generated because of HUD funds, preference must be given to low- and very low-income persons or business concerns residing in the community where the project is located. The requirements of Section 3 apply to recipients of HUD funds (including, but not limited to, CDBG, HOME, and Section 8 PBVs) who receive an award in excess of $200k. Section 3 also applies to contractors or subcontractors that receive a contract in excess of $100k for work on a Section 3 covered project. 86

87 What are Section 3 Minimum Goals? At least 30% of all NEW employees hired should be Section 3 residents; - AND - At least 10% of the total dollar amount of all Section 3 covered contracts for housing rehabilitation, construction, and other public construction should be granted to eligible Section 3 businesses ; - AND At least 3% of the total dollar amount of non-construction (e.g., professional services) contracts should be granted to eligible Section 3 businesses 87

88 To the Greatest Extent Feasible Document efforts to recruit, train, employ and extend contracting opportunities to Section 3 residents and businesses. Target low income persons in the project work area, including public housing residents and others who receive government assistance. Develop procedures to notify Section 3 Business Concerns about contracting opportunities. Establish relationships that will produce eligible business concerns, e.g. labor organizations/ unions, vocational/ trade schools, community colleges, etc. Check the HUD Business Registry for potential businesses. 88

89 HCR s Fair and Equitable Housing Office is here to help you meet your HUD Section 3 goals and objectives: Check the HCR FEHO Section 3 Webpage for Updates and Regional Training/TA Workshops and Match-Up Sessions at: Contact: FEHO Section 3 Staff by or phone for additional information Gwen Pope, HCR Section 3 Coordinator: gwen.pope@nyshcr.org Daniel Cracco, Fair Housing Specialist: daniel.cracco@nyshcr.org Phone:

90 Daniel Sternberg Senior Attorney Fair and Equitable Housing Office New York State Homes & Community Renewal 25 Beaver Street, New York, NY (212)

91 Article 15A of the Executive Law promotes economic opportunities and equality of employment for minority group members and women in State contracting activities. HCR fully supports these efforts and HCR s Fair Housing & Equal Opportunity/Affirmative Action Office which has as a mission to coordinate and monitor compliance with Article 15A. Preference in awards given to applications which include NYS-certified M/WBE as part of development team including LIHC scoring feature. All projects financed under the HTF, CIF, HOME, MIHP, SHOP, PHP, MPP, HWF and HDF must comply with HCR s M/WBE participation requirements. Award decisions include consideration of applicant s past and current performance, including M/WBE performance 91

92 The Service-Disabled Veteran Owned Business (SDVOB) program was signed into law by Governor Cuomo on May 12, OGS has established an office to administer the program. All state funded programs are subject to this law. Although the universe of certified SDVOB firms is very small, HCR s agency wide goal is 6% overall. We anticipate utilization within smaller projects. This new category has been added to the MWBE exhibits in the contract documents. Questions to feho@nyshcr.org 92

93 Requests for TA must come in centrally to Requests must include a complete TA package see page 81 of the RFP See special instructions for applicants proposing rehabilitation of occupied buildings 93

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