FY18 Funding HOUSING DEVELOPMENT FUND (HDF) 2017 Annual HDF Funding Round Guidelines for Energy and Accessibility Grants PROGRAM PURPOSE The purpose of the Housing Development Fund (HDF) Energy and Accessibility Grant is to provide eligible applicants the opportunity to fund energy efficiency or accessibility projects when it is proven that only a grant will enable the project to work successfully. Projects considered for grants must be targeted toward low-income households. Shelters with a 501(c)(3) nonprofit status ELIGIBLE APPLICANTS Low-Income Affordable Rental Housing with a 501(c)(3) nonprofit status APPLICATION SUBMISSION DEADLINES Timeline and deadlines for the Annual HDF Funding Cycle are as follows: Mid-June 2017 HDF funding round opens June/July DSHA staff is available for Technical Assistance meetings* August 30 Applications due to DSHA by 4:00 p.m. * All applicants are invited to meet with DSHA staff to discuss their project. Applicants with no previous DSHA grant experience are required to schedule a meeting. All others are strongly encouraged to schedule a meeting. DSHA will only review and consider applications received by the application close date and time deadline. ELIGIBLE APPLICANTS 501(c)(3) nonprofit organizations with missions related to affordable housing AVAILABLE FUNDING AND ELIGIBLE ACTIVITIES DSHA has set-aside $250,000 in funding for the following eligible activities: Energy: Energy efficiency modifications to nonprofit-owned affordable rental housing or homeless or transitional shelters. Modification may include HVAC, hot water heaters, insulation, windows, doors, light fixtures, appliances, etc. Rental housing must be at least 20 years old and have not undergone any substantial rehabilitation/improvements within the last 15 years. Homeless or transitional shelters have no age restrictions. Accessibility: Accessibility modifications to nonprofit-owned affordable rental housing or homeless or transitional shelters. Modifications that make the facility visitable: accessible routes, entries, common areas, parking areas, etc. In addition, accessibility modifications to individual units will be eligible as long as the facility is considered visitable. All modifications and improvements must meet state and federal requirements.
FUNDING RESTRICTIONS AND CONDITIONS Funding restrictions and conditions other than those listed below may apply if and when funding is awarded and will be outlined in the Grant Agreement. GENERAL No more than two applications may be submitted by any one applicant per cycle per set-aside. The maximum Grant term available is 24 months or 2 years. Each application submitted must represent a separate and distinct program/project. Nonprofit status must be 100% 501(c)(3). LP, LLC, nonprofit General Partners of LIHTC sites or government entity affiliations are not eligible. Projects that have had substantial rehabilitation/improvements within the last 15 years through other programs (LIHTC, Section 8, HDF, etc.) are not eligible. Acquisition, refinance or restructure requests are not eligible. Property to be improved upon must be located in the State of Delaware. Project must be financially feasible. All HDF recipients must adhere to DSHA s financial reporting requirements. All HDF grant applications must target at least 75% of units/clients towards 80% County Area Median Income (AMI) or below with a maximum of 115% of County AMI. Only units/clients within a project/program serving 80% AMI or below are eligible to receive HDF funding. Prior to requesting funds for solar energy, all other energy standards and code requirements should be current. Fund requests that exceed $10,000 will require bid proposals unless otherwise approved by DSHA. Draws will be for reimbursement of paid eligible expenses and will require copies of paid invoices, cancelled checks, and copies of bid proposals if applicable, unless otherwise approved by DSHA. No developer fee or administration fee is permitted. All projects/developments must be located in Level 1, Level 2, or Level 3 Investment Areas as defined by State Strategies for Policies and Spending to be eligible to apply for funding. For-profit general contractors who have an identity of interest with a nonprofit applicant must be preapproved by DSHA, listed on DSHA s approved contractors list and must show evidence of bonding. (Procedures and the approved list of contractors are available at this link: http://destatehousing.com/developers/dv_hdf.php) The application must be complete and include all required and applicable exhibits at time of submission. DSHA reserves the right to eliminate from consideration any application deemed incomplete at time of submission. Applications must include a completed self-score sheet demonstrating a score of 55 points or more. The final score will be determined during DSHA s application review process. If DSHA determines the score to be less than 55 points, the application will be considered ineligible for funding. Applicants must be in good standing with DSHA. Applicants are not eligible to apply for funding if the applicant has failed: To fulfill any obligations committed to in previous applications; and/or To correct, to DSHA s satisfaction, instances of noncompliance with any other HDF grant agreement. 2
All homeless or transitional shelters must agree to register with Housing Alliance of Delaware (H.A.D.) and provide data on clients served via the Community Management Information System (CMIS) as often as required by the CMIS program. Shelter applicants agree to participate in Delaware s Centralized Intake System. All affordable rental applicants must agree to participate and post available vacant units on Delaware s Housing search website located at www.dehousingsearch.org. Per the Delaware Council on Housing Resolution 398, adopted on December 9, 2009, all HDF recipients are encouraged to partner with minority-, veteran- and women-owned businesses by coordinating with the State of Delaware s Office of Supplier Diversity to maximize the number of minority-, veteran- and women-owned businesses participating in projects or programs funded by the HDF, when applicable. Applicants agree to affirmatively further fair housing and comply with the provisions of all applicable federal, state and local law prohibiting discrimination including, but not limited to, Title VI of the Civil Rights Act of 1964 as amended. ORGANIZATIONAL Applicants must demonstrate: Organizational and financial capacity to meet operating expenses and to provide financial assistance to the project for unforeseen occurrences. Expertise within the organization s staff to assist in the successful planning, marketing, and managing of the project. Previous experience in the successful development and administration of housing projects for families of low or very low-income or similar projects. Support (volunteers, funding, local government, etc.) of the organization for the development and administration of the project. Involvement in the community where the project is located. Partnerships and collaboration are encouraged. Clear relationship between project description and documented state and local housing needs. Clear project description, operational plans and timelines. Energy Efficiency Improvements ENERGY GRANTS An energy audit or similar analysis is required to demonstrate the current energy efficiencies of the facility along with proposed energy efficiency improvements. The energy audit may be a formal audit conducted by a qualified energy conservation firm or may be demonstrated by other methods, as otherwise approved by DSHA. Energize Delaware may be a good place to start. To access information, please click on https://www.energizedelaware.org/. Another tool you may find useful is DSHA s Checklist for Rehabilitation which includes the life expectancy of various products/items and materials. This may be accessed from DSHA s website at The scope of work for improvements should identify cost-effective energy efficiencies in the areas of heating, cooling, ventilation (windows), exterior or interior of the building (building envelope), insulation, water heating, lighting, appliances, and other equipment. 3
ACCESSIBILITY GRANTS Accessibility Improvements A scope of work that indicates the property s current condition and illustrates the details of the proposed accessibility or visitability improvements requested is required. Applicants must demonstrate that the project is 100% visitable if requesting grant funds for improvements to individual units. A tool you may find useful is DSHA s Checklist for Rehabilitation which includes the life expectancy of various products/items and materials. This may be accessed from DSHA s website at TECHNICAL ASSITANCE MEETINGS AVAILABE TO ALL APPLICANTS The purpose of conducting Technical Assistance (TA) meetings is to provide applicants with the opportunity to discuss their project in detail with DSHA and to answer applicant questions pertaining to the HDF program and the application process. Applicants that are new (not a current Grantee) to the HDF Grant program are required to schedule and attend a TA meeting in order to be eligible for funding consideration. Participation in the TA process is strongly encouraged but not required for current HDF grantees that are applying for the same funding purpose as their current grant. Applicants may attend an in-person TA Meeting or attend by teleconference APPLICATION PROCESS Applicants must complete and submit an application for funding consideration prior to the posted application deadline. The complete application package includes a fillable-pdf application that requires additional documented exhibits. Exhibit requirements may be found at the end of this document. Requirements are noted in each Exhibit description. The application, applicant self-score sheet and exhibit checklist may be accessed online at Applications must include a completed self-score sheet demonstrating a score of 55 points or more. The final score will be determined during DSHA s application review process. If the final score is less than 55 points, the application will be considered ineligible for funding. Please make sure all application materials are completed, clearly written, organized and relevant. Incomplete applications will be considered ineligible for funding. Both a paper copy and an electronic copy of the application and all applicable exhibits must be submitted to DSHA by 4:00 p.m. of the posted application close date. Instructions for Paper Copy Submission Paper submission must be bound in a three-ring binder that includes a table of contents, appropriately-labeled tabbed dividers and the following documentation: 1. A copy of the completed and signed application 2. A copy of each exhibit with a labeled cover sheet. Exhibits must be indexed (tabbed dividers) and in numerical order. If an exhibit is not applicable, please label the exhibit cover sheet not applicable. A fillable form for cover sheets may be found at 4
Instructions for Submission submission must be on a CD or USB flash drive and must accompany the paper copy submission. 1. A PDF copy of the completed and signed application labeled App-Project Name 2. Individual PDF copies of all required and applicable exhibits. Create a separate file for each exhibit and label it with the exhibit number and exhibit name. (i.e. Exhibit 3-Applicant Experience). Submission Locations Applications may be submitted in person to DSHA s Dover or Wilmington offices. Dover Location Wilmington Location 18 The Green Carvel State Office Bldg. Dover, DE 19901 820 N. French St., 10 th Floor Wilmington, DE 19801 DSHA will review and evaluate all completed applications for conformity to DSHA s guidelines and underwriting procedures. Applications that meet threshold will be scored and reviewed by DSHA s Ranking Committee. Additionally, applications that do not meet minimum threshold requirements will not be scored. All scored applications will be presented to the Council on Housing (COH) Loan Review Committee for recommendation of consideration. The COH Loan Review Committee will then present their recommendations to the full COH for recommendation to approve or disapprove grant request. Assuming complete applications are received; applications are expected to be presented to the COH within approximately 120 days from receipt of application. Applicants are encouraged to attend the COH meetings when their applications are brought before the Council. DSHA s Director will take the COH s recommendation under advisement and approve or disapprove the grant request, at which time a Grant Agreement will be executed. APPLICATION NOTIFICATIONS All applications will be subject to threshold requirements, scoring, and financial feasibility. Submission acceptance of the application by DSHA does not constitute approval for funding. All funding amounts and set-aside amounts are established at DSHA s sole discretion. DSHA reserves the right to increase or decrease set-aside amounts depending on the applications received in a given round. DSHA may reject any application should information become available that conflicts with information submitted with the application or if DSHA becomes aware of an organization s financial instability. Funding conditions will be established at DSHA s sole discretion. DSHA reserves the right to increase or decrease an applicant s funding request. DSHA may substitute Federal HOME funds for HDF funds at DSHA s discretion. Applicants with the highest scores will be awarded funding, subject to set-aside limits. In the event more than one application scores the same number of points, DSHA may reduce requested funding so that applicants with a tie score are assisted. If less than one-half of the lower ranked applicant s request is available in the set-aside, DSHA will determine, at its sole discretion, the most effective way to fund the lower ranked request. Applicants receiving DSHA funding will be subject to monitoring and/or site visits which will include an on-site audit at the end of the grant term to determine if HDF grant funds were used in accordance with the executed grant agreement. 5
CONTACT FOR PROGRAM QUESTIONS AND APPLICATION ASSISTANCE Penny Pierson, HDF Program Manager Delaware State Housing Authority 18 The Green Dover, DE 19901 Phone: (302) 739-0246 Email: Penny@destatehousing.com 6
HOUSING DEVELOPMENT FUND (HDF) 2017 Annual HDF Funding Cycle Final Application Exhibit Checklist-Energy/Accessibility Grants All required exhibits must be appropriately labeled and submitted with the application by the application close deadline. For your convenience cover sheets for the exhibits can be obtained from the DSHA website at Please submit a copy of the completed checklist with the application. EXHIBIT # EXHIBIT NAME AND REQUIREMENTS CHECK BOX 1 2 3 4 5 Non-Profit Status Documentation of Section 501(c)(3) status, which states exempt purposes including the fostering of low-income housing, charitable purpose. Please indicate if this document is included in the application or is being sent electronically. Organizational Status Provide copies of: Articles of Incorporation, By-laws, and Tax Status. Provide list of Board officers and attach Board s approval to apply for grant. Operational Experience Demonstrate how long the facility has been in operation. Please provide a narrative of the facility history. Demonstrate how long the applicant has operated the facility. Please provide a narrative describing the focus and activities of the operation. Describe applicant s involvement in the community where the project or program is located. Collaboration of Financial Resources Demonstrate any non-dsha funding that will be used to complete the project. Attach letters of funding commitments, letters of intent to fund, and/or letters demonstrating funding has been applied for and a decision is pending. If using cash, please provide evidence of cash availability. All documentation must be issued to the name of the applicant, be project specific and dated within the last 9 months. Project/Facility Description Examples of information to include in this exhibit, but not limited to, are: Project Type: Energy or Accessibility Targeted Facility: Affordable rental housing or homeless/transitional shelter Targeted Income: What is the Area Median Income of the clients served? Provide property ownership information. If leasing the property please provide a copy of the lease. What services are provided to clients? 1
EXHIBIT # EXHIBIT NAME AND REQUIREMENTS CHECK BOX Discussion of Need and Proposed Scoped of Work Energy Projects: Provide a list that details any improvements that have been made to the building in the last 15 years. Please include the date each of the improvements took place and the estimated expense incurred for each item. If no improvements have been made to the building in 15 years please include a statement to that effect. Provide an energy audit/assessment, similar analysis or other conclusive measure that demonstrates a need for energy modifications to improve overall energy efficiencies. A good place to start is at Energize Delaware. https://www.energizedelaware.org/ 6 7 Documentation must include the current condition and age of all equipment being replaced or modified and its current life expectancy. Demonstrate planned scope of work for cost-effective energy efficiencies in the areas of heating, cooling, ventilation (windows), exterior or interior of the building (building envelope), insulation, water heating, lighting, appliances, and other equipment. Please detailed description of the improvements to be made and a rendering (if possible). Estimated cost of improvements (i.e. bid, proposal) Provide a project timeline. What is the expected savings? Provide detailed documentation on how the proposed energy savings will benefit the project and/or the resident (i.e. energy analysis from utility providers). A detailed breakdown of cost savings calculations and methodology should be included. Accessibility Projects: Documentation should include a description and rendering (if possible) of the project s current accessibility/visitability features. Describe need for additional accessibility/visitability features. Demonstrate proposed scope of work. Documentation that demonstrates how the proposed modifications/improvements will provide better accessibility and/or visitability. Describe how the improvements will impact the residents. Provide a project timeline. Note: Facility must have full visitability before modifications/improvements to individual units may take place. Please contact DSHA if you need assistance with this Exhibit. Affordability Affordability: Demonstrate that property has a use restriction requirement for the purpose of continued affordability that will be in effect for at least 10 years from date of application. Must be supported with documentation such as HAP contract, Regulatory Agreement, etc. Expanded Affordability (for points): Demonstrate that property has a use restriction requirement for the purpose of continued affordability that will be in effect for more than 10 years from date of application. Must be supported with documentation such as HAP contract, Regulatory Agreement, etc. N/A N/A 2
EXHIBIT # EXHIBIT NAME AND REQUIREMENTS CHECK BOX 8 9 10 Organizational Plans Capital Improvements: Provide documentation of a capital needs assessment, capital improvement plan or asset management plan for the facility. The plan should include, but is not limited to, description of the organization long range capital goals, the basic building description of the facility (type of structure), structural conditions, basic building evaluation describing the interior and exterior make-up of the property, type of heating, cooling, all other mechanicals, elevators, windows, kitchen appliances, the estimated useful life of the major building components, architectural or engineering recommendations, costs of any replacement or rehabilitation, and potential funding sources. Strategic Plan: Documentation of a strategic plan which should include: mission statement, goals, objectives, and strategies for the non-profit entity for a minimum of 5 year period. If applicant does not have a capital improvement plan or a strategic plan in place, please contact DSHA for assistance. Audited Financial Statements (for the last 3 years) Please indicate if these documents are included in the application or are being sent electronically. If applicant does not have audited financial statements, please contact DSHA staff for assistance. Self-Score of Application Applicants must self-score their application using the HDF Score Sheet and a score a minimum of 55 points in order to meet threshold. ONLY 3