Notice of Credit and Funds Availability and Request for Proposals For Projects Financed by Tax-exempt Bonds. New York State Homes & Community Renewal

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1 ANDREW M. CUOMO Governor DARRYL C. TOWNS Commissioner/CEO Notice of Credit and Funds Availability and Request for Proposals For Projects Financed by Tax-exempt Bonds New York State Homes & Community Renewal Division of Finance and Development New York State Housing Finance Agency Mitchell-Lama Housing Program 4/7/2015 I. Introduction and General Information In June of 2013, New York State Homes & Community Renewal ( HCR ) acquired a 44-property portfolio of Mitchell-Lama project loans. The objective of the acquisition was to ensure preservation of affordable housing units through refinancing project loans, as well as generating funds for capital improvements and property upgrades. As part of the State s commitment to increase and preserve the number of affordable housing opportunities for its residents, HCR, acting through the Housing Finance Agency ( HFA ), is making available up to $42,000,000 of capital (the M-L Funds ) for the preservation and improvement of these Mitchell Lama properties. 641 Lexington Ave, New York, NY

2 HCR is seeking applications for the use of M-L Funds from development teams that have already submitted, or plan to submit, an application for bond financing directly to HCR. Or, teams that have previously applied for and received funding under the State s 2014 Unified Funding. Or, teams that plan to rehabilitate the project using State funding obtained through this RFP. This RFP also explains how HCR may offer a limited amount of Project Based Voucher (PBV) assistance, depending upon availability, for proposed projects seeking M-L Funds under this competitive Request for Proposals. Projects that plan to seek 9% credits through the State s 2015 Unified Funding application process should not apply for M-L Funds through this RFP. M-L Funds will also be made available through the 2015 Unified Funding application process. Section II of this RFP, M-L Funds Application Deadline and General Requirements, provides additional information on application submission methods. Section III, Offer of a limited amount of Project Based Voucher (PBV) assistance, depending upon availability, for proposed projects seeking M-L Funds under this competitive Request for Proposals Section IV, Evaluation and Selection Process, describes the general M-L Funds application review process and explains the evaluation and processing of applications. Section V, Contacts for Further Information, provides contact information for relevant HCR staff for applicants to access technical assistance in preparing applications. HCR reserves the right to award all, a portion of, or none of the M-L Funds, based upon funding availability, readiness, feasibility of the Projects, the Applicant s ability to meet HCR criteria for funding, and the Applicant s ability to advance the State s housing goals. Furthermore, HCR reserves the right to review applications requesting M-L Funds as an application for funding under other programs for which the Project may be eligible through HCR, and to change or disallow aspects of the applications received. HCR reserves the right to make any such changes as an express condition of its award commitment for the Project. II. M-L Funds Application Deadline and General Requirements A. M-L Funds Application Deadline Applications requesting M-L Funds may be submitted at any time between April 7, 2015 and December 1, 2015, or until all allocations of M-L Funds are committed. M-L Funds applications will be reviewed as received and funding determinations will be made throughout the year. Notwithstanding resource availability, applications must be received by HCR by 5:00 pm EST, on December 1, Applications seeking consideration for PBV assistance in combination with HWF, MIP and/or SLIHC must submit a complete application by no later than 5:00 PM, September 30, 2

3 2015. Complete applications seeking consideration for PBV assistance will be evaluated monthly beginning with complete applications received prior to May 1, 2015 that will be evaluated by June 1, The application deadlines are firm as to date and hour. Applications received after the specified dates and time swill be deemed ineligible and will not be considered for funding. Applicants are advised to make early submission of their applications to avoid risks of ineligibility resulting from unanticipated delays or other delivery-related problems. Prior to application submission, HCR personnel listed at the end of this RFP are available to answer questions from prospective Applicants. HCR retains the right to waive any requirement contained in this RFP, subject to the applicable statutes and program regulations. HCR also retains the right to revise this RFP from time to time, extend the submission due date, to not award all of its funds under this RFP, and to issue subsequent RFPs. All Proposals must comply with all federal, State and local laws. B. M-L Funds Application Submissions Projects applying for HFA bond financing must submit a short form Mitchell-Lama application to HFA to supplement materials provided in the HFA application as required to evaluate eligibility for M-L Funds. A request for funding through this RFP may also be submitted to supplement any application previously submitted for funding under the 2014 Unified Funding that meets the criteria of the M-L Funds. A request for funding through this RFP may also be submitted for projects that meet the criteria of the M-L Funds, seeking a standalone amount of Mitchell-Lama subsidy only. For these subsidy-only requests there is a Mitchell-Lama Subsidy Application, in lieu of the full bond application, that can be downloaded at C. M-L Funds Application Fees Applicants requesting a standalone amount of the M-L Funds must submit an application fee of $5,000 to HFA. Upon receipt of the Mitchell-Lama Subsidy Application for financing, HCR will invoice the Applicant for this fee. No action on the application will be taken until the fee is received. Applicants requesting HCR tax-exempt bond financing and other financing administered by HFA in conjunction with a request for M-L Funds are not required to pay the $5,000 application fee, but are subject to any HFA application fees set forth in the application instructions. D. M-L Funds Application Review For projects seeking tax-exempt bond financing, HFA, in its capacity as HCR s bond issuer and 4% low income housing tax credit allocating agency, will retain lead role in all facets of project 3

4 application review, design standards review, construction inspection and post completion compliance monitoring, unless otherwise specified. For projects previously seeking 9% low income housing tax credits which were awarded under the 2014 Unified Funding application process, DHCR, in its capacity as HCR s 9% low income housing tax credit allocating agency, will retain lead role in all facets of project application review, design standards review, construction inspection and post completion compliance monitoring, unless otherwise specified. For projects planning to rehabilitate the project using State funding obtained through this RFP and no other HCR resources, HFA, as lender, will retain lead role in all facets of project application review, design standards review, construction inspection and post completion compliance monitoring, unless otherwise specified. E. M-L Funds Eligibility Requirements Projects must meet two requirements to be eligible for funding under this RFP. 1. Development team must have already submitted/plan to submit an application for bond financing to HCR, OR have previously applied for and received funding under the State s 2014 Unified Funding, OR plan to rehabilitate the project using State funding obtained through this RFP. 2. Projects must be one of the following Mitchell Lama properties: Broadway East (Springbrook Village) 3 Garraghan Drive Kingston, NY Charlotte Lake River Houses 4575 Lake Avenue Rochester, NY Golden Park Apartments (Liberty Senior Citizens Houses) 56 Golden Park Lane Liberty, NY Madison Manor 60 Presidential Plaza Syracuse, NY Maple Court Homes 480 Maple City Drive Hornell, NY Cedars of Chili 1 Norfolk Drive Rochester, NY Coney Island Site 9 (Scheuer House) 3601 Surf Avenue Brooklyn, NY Los Flamboyanes 100 Borinquen Plaza Rochester, NY Main Street 5254 Main Street South Fallsburg, NY Melrose Site D-1 (Michaelangelo) 225 East 149th Street Bronx, NY

5 Midtown Manor 475 East Broad Street Rochester, NY Parkside Houses 925 Robin Road Amherst, NY Skyline Garden Apartments 123 Livingston Avenue Albany, NY Southeast Towers II 10 Manhattan Square Drive Rochester, NY Valley Vista 122 West Seneca Turnpike Syracuse, NY Parkedge Estates 544 Deborah Drive Utica, NY Rutland Road Houses, Inc. 60 East 93rd Street Brooklyn, NY Shoreline II (Waterfront) 200 Niagara Street Buffalo, NY Ulster Senior Citizens Houses (Seven Greens) 120 Lawrenceville Street Kingston, NY th Street (Lakeview Apartments) 4 East 107th Street New York, NY III. Offer of a limited amount of Project Based Voucher (PBV) assistance, depending upon availability, for proposed projects seeking M-L Funds under this competitive Request for Proposals As authorized by program regulations at 24 CFR 983, HCR may offer a limited amount of Project Based Voucher (PBV) assistance, depending upon availability, for proposed projects seeking M-L Funds under this competitive Request for Proposals. Applications seeking consideration for PBV assistance in combination with M-L Funds will be reviewed for eligibility, scored and underwritten at the end of each calendar month. All complete applications requesting PBVs received prior to May 1, 2015 will be competitively selected, based on the results of the review of M-L Funds projects, prior to June 1, This competitive review process will be repeated at the end of each calendar month until December A complete description of all applicable PBV program regulations can be found within the Electronic Code of Federal regulations at: (Title 24, Part 983). Applicants interested in being considered for PBV assistance should fully review program regulations prior to making application in order to ensure that their proposed project is consistent with all terms and provisions of those regulations. Applicants are advised to carefully examine the subsidy layering review guidelines relative to PBV assistance issued by HUD in its notice of July 9, These guidelines establish certain development and operations standards that must be adhered to by projects receiving PBVs, including limits on builder s fees, developer s fee, and project cash flow. The guidelines can be found at: 5

6 based-voucher. HCR will give priority to those projects requesting PBVs with a proposed developer fee at or below the HUD safe harbor standard of 12% of the total development cost. Applicants are invited to submit proposals for the use of PBVs in connection with the preservation of rental units in only those local program areas serviced by HCR s Section 8 Voucher Program and its network of Local Administrators. A complete listing of those local program areas can be found on the HCR website at: Applications requesting project based assistance only will not be accepted. Requests for PBV assistance must be accompanied by a request for assistance for M-L Funds. Only applications submitted in response to this RFP will be considered for this PBV assistance. HCR requires all applicants seeking PBVs to provide information on the degree to which PBVs enable a project to serve a lower income population than the project would otherwise be capable of serving absent the PBVs. A detailed description of the impact PBVs will have on the population served must be provided in an application seeking PBV assistance. The description must be provided in a Proposal Summary as part of the response to the question of what public purpose is served by the project and who the project beneficiaries will be. Regulations generally limit PBV assistance to no more than 25% of the units in a project. Projects serving persons who are elderly (62 years or older), persons with disabilities or families receiving supportive services generally equivalent to HUD Family Self-Sufficiency programming may be allowed to exceed the 25% per building cap. All applicants for PBVs must comply with the Federal National Environmental Protection Act (NEPA) as implemented through 24 CFR 58, and the New York State Environmental Quality Review Act (SEQRA). Davis-Bacon wage requirements are applicable to construction of all projects receiving nine or more PBVs. IV. Evaluation and Selection Process A. Application Receipt M-L Funds applications are assigned an identification number and undergo a series of reviews. B. Eligibility Review M-L Funds applications will be reviewed to determine if the Project is eligible under the eligibility requirements as listed above. C. Scoring 6

7 Developer Team Experience and Capability 15 points Applicant has the proven experience and team members to successfully complete the Project Readiness 15 points Whether all the necessary components for the financing and development of the project are identified and/or committed Financial Feasibility and Efficiency 15 points Extent that the Project is financially feasible and cost effective Leverage 10 points Significant outside resources such as third party funds, local funds, and /or local support have been dedicated to the Project Regional Economic Development Council Plan 5 Points Extent that the application meets priorities in the plan Priority Outcomes 20 points Extent the project advances the priorities outlined in the RFP Overall Outcomes 20 points Extent that the project advances the goal of creating or preserving quality housing that most efficiently provides the greatest number of affordable units for the longest time D. Board Approval All awards must be approved by the HFA Board. Awards of funds requested under the RFP will be awarded in the manner set forth therein. E. Award Letter HCR will issue Award Letters to notify the applicant that the project has been selected for funding, and sets forth the award amount(s) and closing deadline. V. Contacts for Further Information Any questions regarding this RFP or the application process under this Notice should be directed to: Roger Harry, Assistant Vice President, Multifamily Finance (212) , roger.harry@nyshcr.org Leonard Gruenfeld, Assistant Vice President, Multifamily Finance (212) , leonard.gruenfeld@nyshcr.org 7

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9 N E W Y O R K S T A T E H O U S I N G F I N A N C E A G E N C Y SHORT FORM APPLICATION REQUIREMENTS FOR MITCHELL-LAMA HOUSING CAPITAL PROGRAM A. PROJECT SUMMARY NAME: STREET: COUNTY: CITY: ZIP CODE: SHARS ID*: * SHARS ID will be provided upon certification and submission of exhibits through CDOL for early funding round. Amount of M-L Subsidy Requested: MORTGAGOR (name and structure): Will the existing owner be a member of the new ownership entity? Will the existing owner receive any proceeds from the transaction? If yes, what is the amount? Is there a RAP or Rent Supplement Contract in place? If yes, what is the maturity date? How many units are covered? STATE SENATE DISTRICT: STATE ASSEMBLY DISTRICT: NEW YORK CITY COUNCIL DISTRICT: COMMUNITY BOARD: CENSUS TRACT: DIFFICULT TO DEVELOP AREA: YES: NO: NAME/TITLE OF LOCAL OFFICIAL ADDRESS OF LOCAL OFFICIAL: HFA Form 7/2014

10 B. MORTGAGE INFORMATION Remaining first mortgage debt as of 6/30/2014 Mortgage Maturity Date C. DEVELOPMENT TEAM 1. Borrower: Contact Name: Telephone: ( ) Fax:( ) 2. Borrower s Attorney: Company: Contact Name: Telephone: ( ) Fax:( ) 3. Service Provider: Company: Contact Name: Telephone: ( ) Fax:( ) Is Service Provider an affiliate of Borrower/Developer/Sponsor: Yes: No: I hereby certify that the information and responses provided herein are true and correct to the best of my knowledge. I understand all application information and exhibits provided through CDOL will be considered in evaluating this application. Applicant Signature: Date: Print Name and Title: HFA Form 7/2014