File - South Central Assembly

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File - South Central Assembly
2016 Affordable Housing Program
Webinar Agenda
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AHP overview
AHP step-by-step
AHP online registration/access
Scoring review
Feasibility review
Post AHP award
Questions
Helping Your Community Grow:
Real Life Story
Pittston, PA:
People’s Security Bank and
Trust Company
“The AHP funding through
Peoples Security Bank and
Trust was a key component in
allowing us to complete this
project that offers intensive
supportive services for
residents.”
– Michael Hanley,
Chief Executive Officer
United Neighborhood Community Development Corporation
AHP Overview
AHP is a subsidy program that supports the
development of affordable housing
• Targets households at or below 80 percent of area
median income (AMI)
• Direct subsidy (grants) or subsidized advance up to
$650,000
• AHP funds are applied for by a participating FHLBank
member on behalf of a project sponsor
– Applicant = FHLBank member
– Sponsor = Nonprofit, for-profit, public entity
AHP Overview
Project-Specific Thresholds:
Rental Projects:
Owner-Occupied Projects:
At least 20 percent of units
targeted for households at or
below 50 percent AMI
At least one unit targeted for
households at or below 80
percent AMI
15-year retention period with
acceptable retention agreement
5-year retention period with
acceptable retention agreement
Project meets Fair Housing requirements
AHP subsidy requested must be less than or equal to the
$650,000 maximum
AHP funds must be used for an eligible purpose
AHP Overview
Eligible Uses of AHP Funds:
• Homeownership or rental
• For-sale ownership or owner-occupied rehab
• Multifamily or single-family
• Acquisition, new construction, rehabilitation
• Scattered site or single site
• Down payment and/or closing costs
AHP Overview
• Scoring
– 100 point scoring against the Bank’s established
priorities
• Feasibility
– Application is underwritten against the Bank’s
feasibility guidelines
• Disbursement
– Awarded projects request disbursements of AHP
funds once costs have been incurred
• Compliance and Monitoring
– Completed projects subject to long-term monitoring
and compliance requirements
Adaptive Reuse: From Blight to Bright
Eisenhower Dept. Store: Monesson, PA
Standard Bank
Units: 13
AHP Grant: $500,000
Total Development Cost: $1.3 million
Sponsor: Mon Valley Initiative
AHP Step-by-Step
• Review AHP Implementation Plan
Review • Access online resources
• Establish partnership with FHLBank
member
Partner • Communicate roles/milestones
• Prepare AHP application
Prepare • Submit application to FHLBank member
AHP Step-by-Step: Meet and Plan
Meet/Plan
Input
Submit
Score
Feasibility
Award
Post
Award
Complete Due Diligence
• Review AHP Implementation Plan for scoring and
feasibility criteria as they relate to your project
• Access online forms, guides and technical assistance
• Identify a member partner or take advantage of the
member/sponsor match service provided by FHLBank
Pittsburgh
• Complete online registration for the funding round
AHP Online Registration/Access
Meet/Plan
Input
Submit
Score
Feasibility
Award
Registering for the Funding Round
• AHP Online application
• Register for the funding round: www.fhlb-pgh.com
Post
Award
Submit AHP Application
Meet/Plan
Input
Submit
Score
Feasibility
Award
Round Opens June 6
Applications must be:
Sponsor approved
and
Member approved
by
Thursday, August 11, at 5:00 p.m. EST
Post
Award
AHP Process: 2015 Funding Round Results
11 scoring categories: 100-point scoring system
See AHP Implementation Plan, Attachment C
Points Awarded on
Scored Applications:
76.5
163 submitted
60: Last approved score
65
approved
$24.6 million committed;
approximately $388,000 average AHP
subsidy per project
Unapproved
2016 Scoring Categories
Meet/Plan
Input
Submit
Score
Feasibility
Award
Scoring Categories
Point Allocation
Use of Donated Properties
5 (fixed)
Sponsorship by Nonprofit or
Government Entity
5 (fixed)
Targeting
0-22 (variable)
Housing for the Homeless
6 (variable)
Promotion of Empowerment
0-10 (variable)
Post
Award
2016 Scoring Categories
Meet/Plan
Input
Submit
Score
Feasibility
Award
Scoring Categories
Point Allocation
Special Needs
8 (variable)
Rural
5 (fixed)
Member Financial Participation
3 (fixed)
Readiness to Proceed
8 (fixed)
Subsidy per Unit
0-8 (variable)
Community Stability
0-20 (variable)
Post
Award
Scoring: Community Stability
Meet/Plan
Input
Submit
Project Impact – up to 17 points
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Community designation
Distressed communities
Homeownership rate
Owner-occupied rehab
Blighted property
Brownfield sites
Adaptive reuse
Historic preservation
Preservation of subsidized housing
Mixed-income housing
Land bank/reuse agency properties
Architectural compatibility
Creation of community assets
Creation of visitable units
Score
Feasibility
Award
Post
Award
Local Planning – up to 3 points
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Project consistency with the plan
Project meets targeted priorities
identified in the plan
Project Impact Score +
Local Planning Score =
MAXIMUM SCORE 20 POINTS
Owner-Occupied Rehab Projects
Meet/Plan
Input
Submit
10 points
75% of properties in the project
must be:
• Fully/comprehensively inspected
by qualified individual
• Certified that all hazardous or
uninhabitable conditions are
corrected at project completion
• Certified that all major systems
have reasonable (5 years)
remaining useful life at project
completion
• Qualified individual certification
must include:
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Detailed inspection process
Qualifications of individual
Score
Feasibility
Award
Post
Award
5 points
• Property receives needed
rehabilitation and/or accessibility
improvements on specific
components
• Project does not meet the criteria
outlined under 10 points
Feasibility Review Factors
Meet/Plan
Input
Submit
Score
Feasibility
Award
Post
Award
• Projects may score well but must also pass the
feasibility review to be awarded an AHP commitment
• Review project feasibility guidelines in Attachment B of
the AHP Implementation Plan
• Feasibility factors:
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Need for subsidy and viability
Cost reasonableness
Readiness to proceed
Development team capacity
Market demand
Feasibility Review: Subsidy Need and Viability
Meet/Plan
Input
Submit
Score
Feasibility
Award
Post
Award
• Owner-occupied and rental projects must demonstrate
that a funding gap exists that cannot be filled by
conventional debt
• Rental projects must demonstrate viability throughout the
15-year compliance period
Feasibility Review: Cost Reasonableness
Meet/Plan
Input
Submit
Score
Feasibility
Award
Post
Award
Cost reasonableness determinations vary based on project
type:
• Marshall and Swift analysis
– Possible 10 percent cost exception with valid third-party justification for excess
cost
• “Local usual and customary costs” (owner-occupied projects)
• Costs validated by third party and/or commit to bidding process
• Approval of rental projects will be conditioned on submission of
Third-Party Plan and Cost Review Form prior to, or with, the request
for disbursement of funds
Feasibility Review: Readiness To Proceed
Meet/Plan
Input
Submit
Development Capacity:
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Score
• Market study requirements
- 12+ units (owneroccupied)
- 20+ units (rental)
- Less than 12/20 units and
other exceptions
Award
Project Site:
• Control
• Zoning
• Environmental
Scale and complexity of the
proposed project
eeS
Role of each team member
Relative experience of team
members
Market and Demand:
Feasibility
Project Financing:
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Sources identified
Commitments
Post
Award
AHP Awards
Meet/Plan
Input
Submit
Score
Feasibility
Award
Project awards announced December 15, 2016
Post
Award
Gap Financing
Uptown Lofts: Pittsburgh
Northwest Savings
Units: 47
AHP Grant: $250,000
Total Development Cost: $13.3 million
Sponsor: ACTION-Housing, Inc.
Post-Award Responsibilities
Meet/Plan
Input
Submit
Score
Feasibility
Activity
Activity
Execute
Sign AHP
AHPTri-Party
Tri-PartyAgreement
Agreement
Start
and
complete
in documents
timely manner and
Draft
and
submit
AHP project
retention
in accordance with approved AHP application
Review and sign the monitoring acceptance letter
Semi-annual progress reporting
Start and complete project in timely manner and
AHP subsidy
in Request/Approve
accordance with approved
AHPdisbursements
application,
including any conditions of grant award
Draft and submit AHP retention documents
Semi-annual progress reporting
Award
Post
Award
Member
Member
Sponsor
Sponsor
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Post-Award Responsibilities
Meet/Plan
Input
Submit
Score
Feasibility
Activity
Request/Approve AHP subsidy disbursements
Complete AHP Household Income Calculation Form
and income documentation
Comply with all commitments and representations
made in conjunction with application scoring or
feasibility criteria
Long-term monitoring of rental projects
Award
Post
Award
Member
Sponsor
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Next Steps
Visit the AHP webpage: www.fhlb-pgh.com
Identify a partner
- Member/sponsor match service
Check registration status
Online technical assistance resources
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Downloadable mini-webinar for Community Stability
Guide to Complete AHP Online Application
Sponsor and Member System Guide
Request project-specific technical assistance
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Go to AHP website, click on technical assistance link and
complete TA request form
Submit completed form via email
Community Investment staff will initiate contact upon receipt
of forms
Key Dates
Start Early!
June 6 – Online application opens
July 29 – Technical assistance ends
August 11 – Applications due (must be in
“member approved” status by 5 p.m. Eastern
time)
December 15 – Grant awards announced
Maximize FHLBank Resources: CLP
If your project needs construction financing and/or can support debt
service and needs permanent financing, consider the Community
Lending Program (CLP):
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CLP offers a flexible source of funding to FHLBank member institutions for
qualified projects
Affordable housing projects that meet AHP targeting will qualify for CLP
CLP benefits:
– Readily available, simple, noncompetitive application process
– Provides for fixed-rate financing up to 30 years
– Quick approval process and no monitoring required
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How to apply:
– All CLP projects must meet member lending standards; member submits CLP
application on behalf of the project
– If you have questions, contact Kate Swanson at [email protected]
Community Investment Contacts
Megan Krider (AHP Program Manager)
Email: [email protected]
Ann Killian
Email: [email protected]
Laura Rye (Western Pennsylvania and West Virginia)
Email: [email protected]
David Buches (Eastern Pennsylvania and Delaware)
Email: [email protected]

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