Version: 9/14/16 4:30pm Affordable Housing Program FHLBNY Training Webinar January 23, 2018 FEDERAL 2018 FEDERAL HOME LOAN HOME BANK LOAN OF BANK NEW OF YORK NEW YORK 101 PARK AVENUE NEW YORK, NY 10178 WWW.FHLBNY.COM
Agenda Upcoming Events 2017 Round Recap Application Process with a focus on the new and updated scoring categories Next steps Q & A 2
Upcoming Events 2018 AHP Implementation Plan available on the Bank s website Large Group Presentations Syracuse, NY on Tuesday, February 20 th Albany, NY on Monday, February 26 th Glens Falls, NY on Tuesday, February 27 th Rochester, NY on Wednesday, February 28 th New York City on Thursday, March 8 th San Juan, Puerto Rico & St. Thomas, USVI in March Trenton, NJ in March Technical Assistance Application Package available on the website by early April Round Deadline in mid-may 3
AHP Application Package AHP Application consists of the following: - Electronic Application Form - Rental Application Workbook (or) - Owner-Occupied Application Workbook - Project Construction Form - Scoring Tabs AHP Application must be submitted to the FHLBNY via the Bank s secure portal 4
2017 Round 136 applications submitted 42 primary approvals and 4 alternates Range of scores 80 60 points Seven (7) of the primary projects requested a subsidy per unit greater than $20,000, with three (3) of these requesting the $30,000 maximum. New Jersey received $16.9 million across 18 projects and New York received $13.2 million across 17 projects. Two of the alternates are also NY projects totaling $3.0 million. The average subsidy award per project increased 5% to $879K. Eliminated applications decreased to 4% (5 projects) for 2017 as compared to 10% (15 projects) in 2016 and 29% (26 projects) in 2015 as a result of an overall improvement in the quality of submissions. 5
Increasing competitiveness and geographic diversity AHP awards and applications 2012-2017 rounds 200 180 160 140 120 100 80 60 40 20 0 175 155 $35.5 $36.9 132 $32.6 136 115 $26.4 $27.1 138 $22.1 89 116 84 94 87 54 37 48 28 35 39 42 2012 2013 2014 2015 2016 2017 Projects approved Projects not approved Subsidy awarded ($m) (right axis) $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 Percent of funding awarded by region 2012-2017 rounds 50% 40% 30% 20% 10% 0% 2012 2013 2014 2015 2016 2017 Central NJ Western NY Southern NJ Out of district Northern NJ Metro-Area NY Puerto Rico Upstate NY US Virgin Islands North Country NY 6
2018 AHP Funds Available & Who can Access AHP Competitive AHP: Over $30 Million (Final $ amt. TBD) AHP funds may only be accessed through a participating member bank For list of HLB members see www.fhlbny.com and click on Members Project Sponsors may include: - Non-profit and for-profit affordable housing organizations - State or local government agencies - Developers 7
AHP Application Process Overview Applications must be submitted by a member bank via the FHLBNY s secure portal Project must meet minimum eligibility thresholds All applications are competitively scored and ranked based on the project s ability to satisfy nine scoring categories Highest ranking projects are subject to the financial review phase Highest scoring, financially feasible applications are awarded subsidy Four alternate submissions are selected 8
Project Eligibility Use of funds for acquisition, construction or rehabilitation Rental Housing Permanent rental units or transitional housing At least 20% of the units must earn 50% or less of the area median income Owner-Occupied Housing Single family, two-family, condos, co-ops All units for households earning 80% or less of the area median income Project must demonstrate site control Sponsor must be qualified Maximum subsidy limits No more than $40,000 per unit, and No more than 10% of the initial competitive AHP allocation 9
Project Scoring Project does not have to qualify for every category Nine scoring categories worth a total of 100 points 1. Donated Properties 5 pts 2. Sponsorship by Non-Profit or Government Entity 7 pts 3. Targeting 20 pts 4. Homeless Housing 5 pts 5. Empowerment 5 pts 6. First District Priority 15 pts In-District Projects Economic Diversity 7. Second District Priority 25 pts 8. Subsidy Per Unit 10 pts 9. Community Stability 8 pts Preserve existing housing units Create housing units in a Difficult to Develop Area (DDA) or a Qualified Census Tract (QCT) 10
Project Scoring 2018 Starting in the 2018 Round, several new and/or updated categories will be available: Donated Properties Economic Diversity Subsidy Per Unit Second District Priority Project Readiness 10pts Small Projects 5pts Owner-Occupied Projects 5pts Supportive Housing 5pts Desirable Sites 5pts 11
Donated Property Donated Property The creation of housing using at least 20% of units or land: conveyed at any price by the Federal government or any agency or instrumentality thereof within five (5) years of the application deadline; or donated for a nominal price ($1,000 or less) or conveyed at a price significantly below fair market value by any other party. For properties donated, or conveyed at a nominal price, or at a price significantly below market value within five (5) years of the application deadline, points awarded are based on the project meeting the applicable criteria. Points are awarded as follows: 5 points: Property is donated or conveyed for less than or equal to 10% of FMV, or for less than or equal to $1,000 3 points: Property is conveyed for greater than 10% and less than or equal to 30% of FMV 1 point: Property is donated or conveyed at any price by the federal government or an instrumentality of the federal government 12
First District Priority Economic Diversity Economic Diversity Projects that incorporate mixed-income housing in the development scheme can receive up to 10 points. A. Either a rental or owner project must have at least 20 percent or more units that are targeted to households with income greater than 60 percent of the AMI and must be located in a low or moderate income neighborhood; OR 20% to < 30% reserved for moderate or higher income Units: 5 points 30% reserved for moderate or higher income Units: 10 points B. Either a rental or owner-occupied project must have at least 75 percent of the very low income units in the project located in a census tract(s) with a median family income that is equal to or greater than 100 percent of the regional median family income; 75% to < 100% very low income units located in the qualifying tract: 5 points 100% very low income units located in the qualifying tract: 10 points 13
Second District Priority Project Readiness, Owner Occupied and Small Projects Project Readiness A project that demonstrates readiness in accordance with the following criteria will qualify for a maximum of ten (10) points: Approvals: If the sponsor/developer has obtained final site plan approval or evidences that the project may be developed as-of-right five (5) points will be awarded. Other Funding Commitment Procurements: five (5) points will be awarded to sponsors who have procured or closed on at least 75% of a project s proposed permanent funding sources. Owner-Occupied Projects Five (5) points for projects in which 100% of the primary units in the project are owner-occupied units. Small Projects Projects with 25 units or less are defined as small projects and will qualify for five (5) points. 14
Second District Priority - Supportive Housing Five (5) points will be awarded for the financing of housing in which at least 20 percent of the units are reserved for occupancy by households with special needs. A supportive housing project must have a social services plan that addresses the needs of the identified special needs population AND a fully executed agreement with a social service provider. Physically and/or mentally disabled Developmentally disabled Persons recovering from domestic abuse (physical or emotional abuse) Persons recovering from chemical dependency Ex-offender Persons with HIV/AIDS 15
Desirable Sites Desirable Sites Up to five (5) points are available for projects that can demonstrate proximity/access to public transportation and/or a food retailer. Applicants that can demonstrate proximity to a public transportation (i.e. bus stop, train station) can receive 2.5 points. Appropriate evidence must be furnished to verify that the project is located within 1/4 mile of a bus stop OR 1/2 mile from a train station. Applicants that can demonstrate proximity to a food retailer can receive 2.5 points. Appropriate evidence must be furnished to verify that the project is located within 1 mile from a food retailer. 16
Project Financial Review Each project must demonstrate a need for AHP subsidy and confirm that it will be operationally feasible Depending on the type of project, the application scoring tabs will specify the required documentation The FHLBNY will cross reference submitted information with data in the Rental or Owner Project Workbooks The FHLBNY may contact the Sponsor at this stage for additional information. The Sponsor is required to respond immediately. 17
Project Approval Announcement of 2018 approvals anticipated to be made in the Fall of 2018 An eligible draw down requisition can be submitted after a project has been approved and an executed AHP Direct Subsidy Agreement has been returned to the FHLBNY 18
Next Steps Thoroughly read the AHP Implementation Plan and pay close attention to the scoring criteria and all changes. Sponsors should begin selection process of a Member Bank and confirm that the bank is willing to submit the application on behalf of the Sponsor. Attend the nearest in-person presentation Carefully read through the application package then contact the AHP staff with any questions or request a conference call. Work with your technical team to ensure the application can be submitted through the FHLBNY s secure portal Watch the FHLBNY video tutorials regarding the application process and the workbooks. 19
Advancing Housing and Community Growth Questions or additional information: (212) 441-6850 ahp@fhlbny.com The information provided by the Federal Home Loan Bank of New York (HLB) in this communications is set forth for informational purposes only. The information should not be construed as an opinion, recommendation or solicitation regarding the use of any financial strategy and/or the purchase or sale of any financial instrument. All customers are advised to conduct their own independent due diligence before making any financial decisions. Please note that the past performance of any HLB service or product should not be viewed as a guarantee of future results. Also, the information presented here and/or the services or products provided by the HLB may change at any time without notice. FEDERAL HOME LOAN BANK 101 OF PARK NEW AVENUE YORK NEW YORK, NY 10178 WWW.FHLBNY.COM 20