New York Main Street Program (NYMS) 2014 NYS Consolidated Funding Application. Housing Trust Fund Corporation Office of Community Renewal

Transcription

1 New York Main Street Program (NYMS) 2014 NYS Consolidated Funding Application Housing Trust Fund Corporation Office of Community Renewal

2 Program Overview Program Background Created by the Housing Trust Fund Corporation in 2004 to provide resources for the purpose of assisting New York s communities with Main Street and downtown revitalization efforts. Article 26 was added to NYS Private Housing Finance Law in 2009 to formally establish the New York Main Street Program in statute. Administered by the Office of Community Renewal under the direction of the Housing Trust Fund Corporation. Annual funding rounds since 2004.

3 Program Overview NYMS provides financial resources and technical assistance to communities to strengthen the economic vitality of the State's traditional Main Streets and neighborhoods. The program provides resources to stimulate reinvestment in properties located within mixeduse commercial districts and adjacent neighborhoods with the goal of establishing sustainable downtown and neighborhood revitalization. NYMS grants are available for targeted improvements such as: Facade renovations Interior commercial renovations Residential building renovations Streetscape enhancement projects.

4 Who can apply for NYMS? Eligible applicants for NYMS program activities are: Units of Local Government Organizations incorporated under NYS Not For Profit Corporation Law Eligible applicants may apply to undertake building renovation projects in an eligible target area

5 Is my downtown an eligible target area? Private Housing Finance Law, Article 26 explains that an eligible target area shall mean an area: (i) that has experienced sustained physical deterioration, decay, neglect, or disinvestment; (ii) has a number of substandard buildings or vacant residential or commercial units; AND (iii) in which more than fifty percent of the residents are persons whose incomes do not exceed ninety percent of the area median income for the county or metropolitan statistical area (MSA) in which the project is located, or which is designated by a state or federal agency to be eligible for a community or economic development program. *More detail available in NYMS Program Guide and CFA Resource Manual

6 How do I prepare to apply? Municipal Resolution Interested Bldg. Owners Marketing & Outreach Need for Revitalization NYMS APPLICATION Funding Commitments Eligible Target Area Administrative Capacity Planning Efforts

7 How do I prepare to apply? Municipal Resolution Contact your Municipal Board or Community Board to be added to the agenda NOW! Each municipality in which the proposed program or project will function must approve a formal resolution supporting an application for the proposed NYMS program or project. The resolution must be passed prior to the application deadline and attached in the Documents section of the application. This requirement applies to all NYMS application types and applications without a Municipal Resolution, as described above, will be deemed ineligible.

8 How does NYMS work? Municipality or Not-for-profit Organization as Local Program Administrator (LPA) NYMS operates as a reimbursement program, and renovations completed following award may receive a grant to reimburse for a portion of the renovation cost.

9 Eligible Renovation Activities Health and Safety Improvements: Fire alarms, sprinklers, fire escape repair Façade Restoration: Preservation projects, reopening storefronts, removing solid security gates, signs, awnings, re pointing brick,window repair Residential Improvements: Convert vacant upper stories into apartments, correct code violations, and update existing apartments Prepare Commercial and Civic Spaces for Tenants: Drywall, electrical, plumbing, HVAC Tip: Demonstrating an understanding of eligible activities and presenting ONLY eligible projects makes your application more competitive.

10 Ineligible Activities Activities not eligible for reimbursement include, but are not limited to: Costs incurred prior to award or environmental review; Acquisition; new construction; demolition; capitalizing a revolving loan fund; Improvements to churches, synagogues, and other religious structures, and improvements to municipally owned buildings used for municipal purposes; Non permanent fixtures, furnishings, appliances, electronics, and business equipment; Site work or ancillary activities on a property, including septic systems or laterals, grading, parking lots, sidewalks, landscaping, fences, free standing signs, or general maintenance; General operating expenses. Tip: When in doubt, contact us. We can discuss project eligibility at any time.

11 Streetscape Enhancements Streetscape Up to $15,000 in grant funds for streetscape enhancement activities, such as: planting trees, or installing street furniture. A streetscape enhancement grant will only be awarded as an activity ancillary to a building renovation project and cannot be applied for on its own. Not available with a Downtown Anchor Project. Subject to eligibility determination upon award.

12 Administration & Project Delivery Administration Up to 7.5% of a NYMS Target Area Building Renovation Award, or up to 5% of a Downtown Anchor Project award may be requested for administrative activities such as: staff salaries, consultant expenses, program related equipment and supplies, travel, program marketing. Project Delivery Professional service costs, or soft costs, that can be attributed directly to the delivery of project specific renovation activities may be eligible project delivery expenses. This may include environmental review expenses. Requires match, proof of payment, and verification of reasonableness of project cost. These are not required, but must be identified at the time of application if an applicant intends to use NYMS funds for these activities.

13 2014 NYMS Activity Funding Limits Target Area Building Renovation Program OR Downtown Anchor Project

14 2014 NYMS Activity Funding Limits Target Area Building Renovations Applicant may request up to $250,000 to provide matching grants to building owners for renovation of mixed use buildings in a concentrated target area. Up to $50,000 in grant funds per building, plus $10,000 per residential unit up to a per building maximum of $100,000. Streetscape Up to $15,000 for activities such as planting trees, installing street furniture and trash cans within target area. Administration Up to 7.5% of grant amount for salaries or other costs associated with administration of grant. OR Downtown Anchor Project Applicant may request up to $250,000 to assist in a standalone, single site, shovel ready renovation project that is key to local revitalization efforts. Application requires business plan and funding commitments Administration Up to 5% of grant amount for salaries or other costs associated with administration of grant.

15 2014 NYMS Activity Funding Limits Example: Target Area Building Renovations Program Request OR Example: Downtown Anchor Project Request Traditional NYMS Building Renovation Program Grant or a Downtown Anchor Project Grant NOT BOTH!

16 NEW! NYMS Technical Assistance Projects NYMS TA funds are intended to improve a community s readiness to administer a future NYMS building renovation program. Two essential elements in successful administration of a New York Main Street renovation program are: 1. A clear understanding of the needs of the project community. 2. Interested and ready property owners. Eligible applicants may request up to $20,000 to complete technical assistance projects that address local limitations. A minimum of 5% cash match is required.

17 NEW! NYMS Technical Assistance Projects Example 1: NYMS Technical Assistance Project Request $20, NYMS Technical Assistance Project Request Amount $10,000 Building Re-use studies for five key downtown buildings. $10,000 Architectural renderings for façade restorations of five downtown buildings. Example 2: NYMS Technical Assistance Project Request Notes: $15, NYMS Technical Assistance Project Request Amount $10,000 Design Guidelines for Downtown Commercial District $5,000 Illustrated manual for Property Owners and Business Owners NYMS TA proposals must be for future renovation projects. HTFC will not fund a proposal related to an open NYMS contract, or project proposed in the 2014 CFA. NYMS TA funds are not available for general administrative expenses.

18 Application Process Resources Content of NYMS Consolidated Funding Application (CFA) NYMS Scoring Criteria Overview

19 Resources New York Main Street Program Guide New York Main Street Administrative Plan Sample Regional Economic Development Councils Consolidated Funding Application

20 Consolidated Funding Application (CFA) Go to: Online application CFA Available Resource Manual

21 Consolidated Funding Application (CFA) Tip Applicants may download all application questions prior to starting an application.

22 Consolidated Funding Application (CFA) Sections Threshold Questions A series of Yes/No questions. Responses determine program eligibility. Applicant may not proceed to program specific questions if threshold criteria are not met. Documents / Attachments Documents that you must upload to submit a complete application. These support the responses you have given to questions in the application. Basic Questions Common to all applicants who are accessing the CFA. One set of Basic Questions per application. Standard Questions Specific to the funding program that you are applying for, i.e. New York Main Street. If you apply for multiple programs with a single application, Standard Questions for each program will appear. Budget Table(s)

23 Threshold Questions A series of Yes/No questions. Responses determine program eligibility. Applicant may not proceed to program specific questions if threshold criteria are not met. Applicant Eligibility Request Amount Target Area Eligibility Municipal Resolution Matching & Reimbursement Program Structure Eligible Activities Project Timeline Regulatory Term

24 Documents / Attachments The CFA will require a series of attachments, and allow for several optional attachments. Each attachment field will allow an applicant to upload a single PDF document Required Attachments Municipal Resolution Target Area Map Building Information List Building Photographs Sources & Uses of Funds Form Certificate of Incorporation & Filing Receipt - Required for Not-For-Profits Business Plan & Market Analysis - Required for Downtown Anchor Projects 2014 Optional Attachments Support Letters Financial Commitment Documentation

25 Program Budget Table Request between $50,000 and $250,000. Include a line for each NYMS activity/use for which funds are requested: Administration Project Delivery Construction/Renovation Streetscape (Not an eligible use for Downtown Anchor Projects) Additional lines should be included to document each source of required matching funds and additional leverage, by activity/use. Under Indicate Source/Comments, identify specific source of funds, and either "Committed" or "Pending Approval." Funding Commitment Documentation must be attached in the Documents section of the application. Uses other than Construction/Renovation, Streetscape, Project Delivery, and Administration are not eligible uses for NYMS and are not eligible as matching funds. Do not include these in your budget.

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27 Budget Application Budget Table must be supported by responses in Budget Narrative questions. For example: Q_3312 Explain the proposed New York Main Street (NYMS) program budget. Identify the estimated costs and planned sources of the funds for the proposed Building Renovations or Downtown Anchor project. Be specific, and list each source in a consistent format. This explanation of your program budget must be consistent with the program budget table at the end of this application. For each source identified, indicate whether the source is formally committed or pending approval. If a source is identified as committed, the applicable commitment letter must be attached where requested in the application. Tip: Review the Help Section for a budget narrative example.

28 Application Process NYMS Scoring Criteria Overview Building Renovation or Anchor 2014 Scoring Criteria Up to 100 Points A) Need 10 Points Residential Commercial B) Impact 25 Points Residential Commercial Local Initiative Design Business Strategy & District Promotion C) Leveraging 10 Points Public and Private Investment D) Capacity 35 Points Program Experience Implementation Capacity Readiness E) Total Vision and REDC Strategies 20 Points Alignment with Regional Council s Strategic Plan * Project Selection Criteria are detailed in the CFA Resource Manual/Available Resources Guide.

29 Application Process NYMS Scoring Criteria Overview Technical Assistance 2014 Scoring Criteria Up to 100 Points A) Need 5 Points Residential Commercial B) Impact 10 Points Residential Commercial C) Local Support 10 Points D) Leveraging 5 Points Public and Private Investment E) Work Plan 40 Points Procurement Budget Deliverables Implementation F) Capacity and Readiness 10 Points G) Total Vision and REDC Strategies 20 Points Alignment with Regional Council s Strategic Plan * Project Selection Criteria are detailed in the CFA Resource Manual/Available Resources Guide.

30 Application Process NYMS Scoring Criteria Overview Need and Impact Do not rely on data to speak for itself. Statistics should be presented with proper context to explain why NYMS funds are necessary. Tell us why your community needs Main Street funds. Be specific. Write about both Commercial and Residential needs. We need to hear the whole story. Explain why the specific activities were proposed. Explain how the proposed activities meet the needs identified. Explain how the proposed plan aligns with community goals and the Regional Economic Development Council Strategic Plan:

31 Leveraging Application Process NYMS Scoring Criteria Overview Provide a clear budget narrative. Identify other grant sources (related to the current project!). Identify whether the funds are committed or pending approval. Provide supporting documentation as an attachment. Identify source for administrative funding for staff time. Plan for matching funds and construction financing. If other grant sources are pending approval, explain what will happen with the project if the others applications are not funded.

32 Application Process NYMS Scoring Criteria Overview Capacity Show us how ready your community is to administer a NYMS grant: Demonstrate your understanding of program rules. Identify experienced staff who will be responsible for administration. Detail your administrative procedures. Be specific! Identify interested property owners and detail projects. Tell us about local coordination & partnerships.

33 Application Tips Common Deficiencies & Recommendations for Correction

34 Eligible Applicant Application Tips Threshold Questions Eligible units of local government include Counties, Cities, Towns, and Villages. Eligible not for profit applicants include community based organizations, local development corporations, and other similar entities that have been providing relevant service to the community for at least one year prior to application. Not for profit organizations must be prepared to provide the organization s certificate of incorporation and filing receipt from the Department of State. IRS documentation is not sufficient. Use the municipality name or the not for profit organization s formal name (as shown on the certificate of incorporation) in the CFA applicant fields. Do not use a department name or informal organization name.

35 Application Tips Threshold Questions Eligible Request Amount New York Main Street Building Renovation Projects Applicants may request between $50,000 and $250,000 for multi project NYMS program building renovation grants. NYMS funds may reimburse up to 75% of total project costs for general building renovations up to a maximum of $50,000 per building, or up to $100,000 for a building renovation project involving direct assistance to residential units. New York Main Street Downtown Anchor Projects Applicants may request between $100,000 and $250,000 for a NYMS Downtown Anchor Project. Funds are available to reimburse up to 75% of a total project cost not to exceed $250,000 in NYMS Downtown Anchor Project funds. New York Main Street Technical Assistance Projects Applicants may request up to $20,000 for NYMS TA program funds. NYMS TA funds may reimburse up to 95% of the project cost, not to exceed $20,000. The remaining 5% must be provided as a cash match.

36 Application Tips Threshold Questions Eligible Request Amount Only ONE activity may be requested: Building Renovation OR Downtown Anchor OR Technical Assistance Up to $15,000 is available for streetscape enhancements. A streetscape enhancement grant will only be awarded as an activity ancillary to a multi project Building Renovation program and cannot be applied for on its own or with a NYMS Downtown Anchor grant or NYMS Technical Assistance grant. Administrative and Project Delivery funds must be identified at the time of application. Administrative funds will only be awarded as an activity ancillary to a Building Renovation project and cannot be applied for alone.

37 Municipal Resolution Application Tips Threshold Questions Each municipality in which the proposed program will function must approve a formal resolution supporting an application for the proposed New York Main Street (NYMS) program. Applicants within New York City must obtain the resolution from the Community Board with jurisdiction over the project target area. Draft or proposed resolutions will not be accepted; the resolution must be passed prior to the application deadline. If the vote is not documented on the resolution, provide the meeting minutes that document the vote. The resolution must be attached to the application where requested. A support letter is not a municipal resolution.

38 Application Tips Threshold Questions Municipal Resolution The resolution must be on official stationery and should hold the official seal. The resolution must include the name of the program being applied for, New York Main Street, and should approve and endorse the 2014 application. The resolution must include the name of the applicant (municipality or not for profit). For not for profit applicants, the applicant's name must be stated as it is recorded in the incorporation documents. The resolution must include the name of the funding agency (New York State Homes and Community Renewal and/or the Housing Trust Fund Corporation). If you intend to apply request the resolution now!

39 Application Tips Threshold Questions Eligible Target Area OCR may accept designations such as CDBG eligible census tracts (51% or more LMI) or areas served by a Neighborhood Preservation Company (NPC) or Rural Preservation Company (RPC) in lieu of a determination based on the income of residents in the area. Eligibility must be presented using relevant, current, and verifiable data, including but not limited to, the most recent Census data pertaining to the target area, Common mistake insufficient documentation: The 2010 Village median household income of $37,000 is 68% of the County median of $54,000. This statement does not prove the eligibility criteria outlined in statute. HUD has a 7 step formula to calculate the total Moderate Income population. We can provide the formula on request.

40 Application Tips Threshold Questions Timeline Article 26 of NYS Private Housing Finance Law indicates that a NYMS program contract shall provide for completion of the program within a reasonable period, which shall not in any event exceed two years from its commencement. Sample Timeline for 2014 CFA Project: Fall/Winter 2014 Awards announced Contract execution Environmental Review Program development Spring 2015 Marketing and outreach Acceptance and review of local applications Project development Summer 2015 Summer 2016 Construction Reimbursement Fall 2016 Program completion, monitoring and closeout

41 Application Tips Threshold Questions Reimbursement The NYMS program operates fully as a reimbursement program. Projects that commence prior to award are not eligible for participation. Projects that cannot be completed within a 24 month contract term will not be reimbursed. A building renovation project must be completed and paid for prior to requesting reimbursement with NYMS funds. Projects including NYMS funds must produce a finished commercial or residential space, ready for occupancy. Soft costs will not be reimbursed for incomplete projects. Eligible expenses must be documented and provided to HCR prior to reimbursement.

42 Application Tips Threshold Questions Matching Funds Investments of NYMS funds in eligible building activities must be matched by other funds. Any funds provided to administer the program or to support program activities beyond the required match amount are considered leveraged funds. Match requirements must be realized on a building by building basis. Applicants must demonstrate that they will be able to secure sufficient resources to administer the proposed Main Street program. Calculate required matching funds from the total project cost, not the NYMS award amount.

43 Application Tips Threshold Questions Matching Funds Example $45,000 Maximum NYMS Award (75% of Total Project Cost) $15,000 Minimum Match Required (25% of Total Project Cost) $60,000 Renovation Total Project Cost

44 Application Tips Threshold Questions Regulatory Term / Maintenance Responsibilities The owner of a property improved with New York Main Street funds must agree for a minimum of five years to: maintain the assisted improvements in good condition; to make available and maintain the affordability of residential housing units to persons of low income. Any residential unit assisted with NYMS funds that is vacant at the time of the application or becomes vacant during the maintenance term must be marketed to, and affordable to, households with incomes at or below 90% of the median family income, as adjusted for family size. This requirement is met through a rent limit imposed on the assisted unit(s) during the regulatory term. OCR will provide annual rent limits for the applicable county upon request. Marketing efforts and documentation of annual rent charged must be documented in LPA program files. Property owners must sign a Property Maintenance Declaration, that is filed in the County Clerk s office. LPA responsible for monitoring properties for five year term.

45 Application Tips Common Deficiencies & Recommendations for Correction Tips for selecting a target area: Locate the need. Determine which area will have the most impact. Find the interested property owners. Consider other sources of investment. Make sure the description of the proposed NYMS target area is consistent with the map attachment, showing the boundaries of the proposed target area.

46 Application Tips Common Deficiencies & Recommendations for Correction Administrative capacity is unclear Identify staff assigned to work on the proposed program, their specific roles, and any relevant training or experience that they have. Provide details related to the use of budgeted NYMS administrative funds, including estimates related to staff time. Identify additional sources of administrative funding for the program. Include formal commitment documentation for Administrative Funds from board. Identify procedures in place to ensure timely implementation of the program. Explain procedures in place to ensure compliance with all NYMS program administrative requirements. For reference, a copy of the NYMS boilerplate Administrative Plan is available on the OCR website:

47 Application Tips Common Deficiencies & Recommendations for Correction Readiness is not evident Identify specific properties for participation with eligible work scopes and feasible timelines. Identify funding commitments to support required match and construction financing. Present a thorough understanding of NYMS program requirements. Avoid conflicts of interest. Elected officials are not eligible for assistance. Describe aplan for compliance with required five year maintenance term for assisted improvements. Identify the plan for use of Streetscape funds (if requested).

48 Application Tips Common Deficiencies & Recommendations for Correction Funding commitments provided are insufficient Provide commitment letters for all sources of matching or leveraged funds contributing to the project. Sources will not be considered committed without formal documentation. Formal documentation can include grant award letters from local or state agencies, property owner commitment letters with accompanying bank statements, board minutes approving administrative funding for the program. Pledge cards and bank statements are not sufficient without a formal expression of commitment for a specific activity or building project. A pledged donation outside of the contract term is not an acceptable source of match or leverage. All documented commitments should correspond with the budget narrative and budget table. Consolidate all financial commitment documentation into a single PDF and attach.

49 Application Tips Common Deficiencies & Recommendations for Correction Budget is unclear or not feasible Present a feasible, well planned budget. Make sure funding amounts proposed are within eligible limits. Budget narrative must match budget table. Substantiate the requested amount. Identify each of the estimated costs, including the source of the funds and proposed use: Building Renovation, Streetscape Enhancement, or Administration. For each source identified, indicate whether the source is formally committed or pending approval. If a source is identified as committed, the applicable commitment documentation must be attached where requested in the application.

50 What happens when we submit the application? CFA Submitted JUNE 16 DEADLINE State Agency Programmatic Threshold Review Ineligible Application Eligible Application 20% Regional Council Review and Score 80% State Agency Review and Score Awards Determined

51 New York Main Street Program QUESTIONS? Crystal Loffler, Program Director Erin Kinne, Community Developer Patricia O Reilly, Community Developer