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CD Guidelines for the Affordable Housing Trust Fund____________________________________________________________________________________ FOR CITY CLERK ONLY Council Meeting: 01/21/2020 Disposition: Resolution 14760 Agenda Item No: 6.b Meeting Date: January 21, 2020 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Community Development Prepared by: Paul Jensen (AH, DO, EG, IK) Community Development Director City Manager Approval: ______________ TOPIC: GUIDELINES FOR THE AFFORDABLE HOUSING TRUST FUND SUBJECT: RESOLUTION ADOPTING “GUIDELINES FOR THE ADMINISTRATION OF THE AFFORDABLE HOUSING TRUST FUND” EXECUTIVE SUMMARY: Currently, the City does not have existing policies and procedures for awarding Housing Trust Fund monies across competing requests. As such, staff recommends that the City Council formalize a policy for the use of the Affordable Housing In-Lieu Fee Fund as San Rafael’s primary Housing Trust Fund. Staff has prepared a resolution for City Council consideration which establishes guidelines for the allocation of funding through the Affordable Housing Trust Fund. RECOMMENDATION: Adopt the resolution BACKGROUND: Housing trust funds are established sources of funding for the production or preservation of affordable housing. Housing trust funds began as a way of funding affordable housing in the late 1970s, and since then, elected government officials from all levels of government (national, state, county and local) in the United States have established housing trust funds to support the construction, acquisition, reconstruction, and/or rehabilitation of affordable housing and related services to meet the housing needs of low-income households. Ideally, housing trust funds are funded through dedicated revenues like real estate transfer taxes or document recording fees to ensure a steady stream of funding rather than being dependent on annual budget allocation processes. As of 2016, 400 state, local and county housing trust funds existed across the U.S. 1) Current State of City of San Rafael Affordable Housing Trust Funds SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 The City of San Rafael has two affordable housing trust funds. The first is Fund 495, the “Successor Agency Fund”, containing the funds of the City of San Rafael as Successor Agency to the former San Rafael Redevelopment Agency. At present, the Successor Agency Fund has a balance of approximately $600,000, with one ongoing source of revenue and one ongoing expense. The City receives approximately $50,800 annually in payments from a $750,000 loan provided by the former Redevelopment Agency to BRIDGE Housing for the acquisition, rehabilitation, and management of 26 affordable units at 162-172 Belvedere Street. The Successor Agency Fund is being used to pay the Marin Housing Authority to manage the City’s below-market-rate (BMR) “Home Ownership Program”, which currently costs approximately $90,000. This fund is projected to be depleted within 15 years. At this time, given the annual net losses to the Successor Agency Fund, staff does not recommend that the City use the Successor Agency Fund to fund any upcoming affordable housing projects. The City’s second source of affordable housing funding is Fund 243 – the “Affordable Housing In-Lieu Fee Fund”. Revenue for this fund comes from fees charged to new residential and commercial developments as stipulated in the City’s inclusionary housing policy. These fees are dedicated for the creation, rehabilitation and/or acquisition (development or purchase) of rental or ownership housing specifically for households that qualify as very low-, low-, and moderate-income. At present, revenue for the Affordable Housing In-Lieu Fee Fund is dependent on the pace of new development in San Rafael. Currently, this fund has a balance of approximately $1,300,000 with at least an additional $900,000 in fees projected over the next five years, not including a potential one-time payment of approximately $1.5 million anticipated from BioMarin. Over the last six months, staff has been approached with funding requests for a variety of projects ranging from new construction of permanent supportive housing units to the acquisition of an existing market rate property for affordability deed restrictions. Currently, the City does not have existing policies and procedures for awarding Housing Trust Fund monies across competing requests. As such, staff recommends that the City Council formalize a policy for the use of the Affordable Housing In-Lieu Fee Fund as San Rafael’s primary Affordable Housing Trust Fund (“Housing Trust Fund”). 2) Leveraging Other Funding Opportunities In addition to these inbound requests, new State funding opportunities have also added urgency to formalizing our Housing Trust Fund policy. Nearly $6 billion in state funding has been allocated specifically for housing development. Programs like the Local Housing Trust Fund Program (LHTF) have been designed specifically to match local housing trust funding to increase the feasibility of affordable housing projects. In Spring 2020, the LHTF is anticipated to award $56.7 million statewide in matching funds. Other state funding programs provide preference for eligible affordable housing projects that receive local funding. Furthermore, without matching local funding it is very difficult, if not impossible, for developers to leverage these additional financial sources. Traditional affordable housing financing mechanisms like Low Income Tax Credits (LIHTC) and the Affordable Housing and Sustainable Communities (AHSC) program require local funding in order to be eligible. In the next four years, California has allocated over $1.5 billion for LIHTC and AHSC funding. Due to this historic level of state and federal funding, it is paramount that any Housing Trust Fund policy provide flexibility to the City and the developer to best qualify for these outside financing sources. ANALYSIS: SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 Staff’s proposed Affordable Housing Trust Fund Administrative Guidelines Resolution (Attachment 1) is based on the County of Marin’s Housing Trust Fund Implementation Guidelines and Application Process. This resolution would establish the guidelines for staff review of Housing Trust Fund applications and recommendations for funding. All projects receiving a staff recommendation for funding would be required to come to City Council for final approval. i. Application Process Maintaining flexibility for both the City and developer is the key factor staff used to develop the proposed application process to award and disperse funding. The proposed policy includes two types of application processes for dispersing Housing Trust Fund monies: a Notice of Funding Availability (NOFA) process and a rolling application process. The proposed NOFA process provides a competitive application procedure for periods when requests for funding exceed the trust fund balance. The proposed policy allows the City to conduct a NOFA process at any time and would allow staff to determine the specific NOFA amount. If the NOFA amount is less than the fund balance, the remaining fund balance would remain in the trust fund for use in the rolling application process. The rolling application process is intended to provide City funding for eligible projects that need a funding decision quickly or before a NOFA process can be conducted. Applications submitted under this process would be reviewed by staff, then a funding recommendation scheduled for City Council consideration at a regularly-scheduled meeting. Often, projects requiring this expedited decision are acquisitions of market rate properties that require immediate action but can be deed restricted as affordable housing once acquired. Applicants in both processes are required to meet the same eligibility criteria and submit the same application (Attachment 3). Once an application is submitted staff will review the application and make recommendations to the City Council to approve or reject a funding request. Staff reserves the right to determine the reasonableness of all costs and fees associated with a project, including developer fees. Staff anticipates developing and issuing a NOFA upon adoption of the proposed resolution. Meanwhile, staff will move on developing recommendations on projects with merit. ii. Oversight As proposed, the Housing Trust Fund would be governed by the City Council. The City Council would provide oversight to the Housing Trust Fund and will review all loans/grants for approval or denial. This review process will take place through the regular agenda of the City Council. Minutes will be recorded at all meetings and maintained by City staff. The City’s Community Development Department will process all applications and make funding recommendations to the City Council. iii. Eligible Projects Like the County, staff recommends that the Housing Trust Fund be available for, but not limited to, the following type of projects: • Rental housing that meets the affordability requirements, including Permanent Supportive Housing • SRO (single-room occupancy) projects • Supportive and transitional housing SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4 • The residential portions of mixed-use and live/work projects that meet the affordability requirements of these guidelines • Conversion of market rate housing to affordable, or of non-residential buildings to affordable housing; • Single-family or multi-family homeownership projects that meet affordability guidelines • Any other project that meets the goals and priorities of the Guidelines. iv. Eligible Applicants The following organizations are eligible to apply for Housing Trust Fund monies: • Non-profit organizations, qualified as a 501(c)(3) of the Internal Revenue Code • Public agencies • For-profit developers working in partnership with a 501(c)(3) nonprofit organization will be eligible to apply • Any other application that helps to address program goals and priorities of increasing affordable housing as reflected by ordinances and resolutions established by the City Council. v. Activities Eligible for Funding Funding will be available for any cost associated with the new construction, acquisition or rehabilitation. The Trust Fund may provide funding for the following types of activities: • Seed/Catalyst funds for very early costs to initiate or expedite project development (such as feasibility analysis or community planning • Land or property acquisition for new development • Predevelopment (architecture, engineering/soils, environmental reports, financial consultants, etc.) • Construction (site preparation, construction, materials) • Rehabilitation activities to renovate existing rental units • Conversion of market rate housing, or non-residential buildings, to deed-restricted affordable housing • Any other activity that helps to address program goals and priorities of increasing affordable housing as reflected by ordinances and resolutions established by the City Council. vi. Funding Terms & Amounts Housing Trust Fund monies will generally be available in the form of a loan or a grant. Loan length and terms will vary by project to meet the needs of the project, availability of financing, financing method, development configuration and organizational capacity of the applicant, as determined by staff and the City Council. Loans can be due at maturity or paid in installments with payback ranging from as little as 3 months to 55 years. vii. Evaluation Criteria While these policies will provide a high-level framework for the City’s Housing Trust Fund, with so many inbound requests for funding, prioritization will be critical. Many jurisdictions provide a nominal amount of funding to every application they receive, but this approach often leaves projects with funding gaps. Housing Trust Fund monies are then unavailable as the project tries to fill the funding gap. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5 For the San Rafael Housing Trust Fund, staff recommends a bias towards filling a final funding gap to create a fully funding project. By fully funding projects the Housing Trust Fund will prioritize projects that include: • a tangible and cost-effective benefit to the community • an experienced and highly capable Development Team (i.e. Developer, Architect, Financing Partners, General Contractor, and Construction Management) • an experienced and highly capable Management Team (i.e. Property Owner, Property Management, Financial Partners, Service Providers) • documentation showing a readiness to proceed • financing and in-kind contributions to match city investment • reasonable per unit subsidy including evaluation of the target population, project type and cost effectiveness (cost per person, externalities, reserves, leveraging). viii. Reporting Requirements Applicants receiving Housing Trust Funds must notify Staff in writing of all major changes, financial or otherwise, relating to an application for financial assistance or an approved project. Depending on the size and type of loan or grant requested, the following may be required: a written breakdown of expenditures funded with Housing Trust proceeds; receipts, invoices and cancelled checks; annual reports certifying ongoing affordability; annual reports on project demographics and affirmative marketing plans; annual written reports describing any changes in the project development, operations, or management; and/or audited annual financial statements. COMMUNITY OUTREACH: Community outreach for this report was conducted in tandem with the outreach for the informational report on the challenges to approving and developing housing. As part of this outreach, Staff recently held two evening public workshops dedicated to the housing topics and policies outlined in that report: • Housing Workshop #1 was held on November 3, 2019. This workshop: a) provided my in-depth information on the current housing crisis; and b) focused on the recommended policy actions specific to the regulation/zoning and permit streamlining. • Housing Workshop #2 was held on November 14, 2019. This workshop: a) included a presentation on housing development financing and funding sources; and b) focused on the recommended policy actions specific to City’s inclusionary housing requirements and use of the City’s Housing Trust Fund. FISCAL IMPACT: There is no direct fiscal impact from adopting the proposed resolution. Any staff recommendations for Housing Trust funding are required to return to City Council for consideration. The fiscal impact for these staff recommendations will be assessed and determined as each is brought forward to the City Council for consideration and action. OPTIONS: The action before City Council relates to the consideration of the resolution establishing policies and procedures for awarding funding from the Affordable Housing Trust Fund. For this action, City Council has the following options to consider: 1. Adopt the resolution as presented; 2. Adopt the resolution with modifications; 3. Direct staff to return with more information; or SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 6 4. Take no action. RECOMMENDED ACTION: Adopt the resolution. ATTACHMENTS: 1. Policy Resolution 2. Affordable Housing Trust Fund Application 1 RESOLUTION NO. 14760 RESOLUTION OF THE SAN RAFAEL CITY COUNCIL ADOPTING “GUIDELINES FOR THE ADMINISTRATION OF THE AFFORDABLE HOUSING TRUST FUND” WHEREAS, Section 14.16.030.J of the San Rafael Municipal Code establishes the creation of a segregated housing in-lieu fee account to be funded by housing in-lieu fees to be used solely to increase and expand the supply of housing affordable to very low-, low- and moderate-income households; and WHEREAS, the City of San Rafael maintains Fund 243 - the Affordable Housing In-Lieu Fee Fund with on-going dedicated funding from housing in-lieu fees; and WHEREAS, this Affordable Housing In-Lieu Fee Fund is the City’s Housing Trust Fund, exclusively dedicated to the production and protection of affordable housing units in the City of San Rafael; and WHEREAS, the San Rafael City Council finds it necessary to establish guidelines which establish priorities, criteria, and administrative processes for distribution of Housing Trust Fund monies and project selection; NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of San Rafael hereby adopts the following “Guidelines for the Administration of the Affordable Housing Trust Fund”: SECTION 1 PURPOSE AND INTENT The City’s Affordable Housing Trust Fund, or Housing Trust Fund, was created to increase the stock of permanently affordable housing units in the City of San Rafael. The Housing Trust Fund provides a local funding source for financial and technical assistance to help affordable housing developers produce and preserve affordable housing. These guidelines are intended to provide direction as well as flexibility for staff in making recommendations for Program funding. SECTION 2 APPLICABILITY The provisions of this Program shall apply to all real property in the San Rafael city limits including a single-family dwelling or unit in a multifamily or multipurpose dwelling, a unit in a condominium or cooperative housing project, or a unit in a structure that is being used for residential uses whether or not the residential use is a conforming use permitted under the San Rafael Municipal Code, which is hired, rented, or leased to a household within the meaning of California Civil Code Section 1940. SECTION 2 DEFINITIONS A. “Affordable Rent” means a housing unit that satisfies at least one of the following criteria: 1) If the unit is being rented to Low-Income, Very Low-Income or Extremely Low-Income Households 2 2) If the unit is being sold, it is offered at an “affordable housing cost”, as defined in Health & Safety Code Section 50052.5 3) If the unit is being rented to Moderate-Income households, it is available at a gross rent, including a utility allowance, that does not exceed 30 percent of the applicable income eligibility level, and complies with the definition of Moderate-Income in these guidelines B. “Applicant” means one of the following: 1) Non-profit organizations, qualified under Section 501(c)(3) of Title 26 of the Internal Revenue Code (“501(c)(3) nonprofit organization”) 2) Public agencies 3) For-profit developers working in partnership with a 501(c)(3) nonprofit organization 4) Any other application that helps to address program goals and priorities of increasing affordable housing as reflected by ordinances and resolutions established by the City Council C. “Area Median Income” means the most recent applicable Marin County median family income published by the California Department of Housing and Community Development, available at the following link: http://www.hcd.ca.gov/grants- funding/income-limits/state-and-federal-incomelimits.shtml D. “Department” means the Community Development Department. E. “Development Team” means the Developer, Architect, Financing Partners, General Contractor, and Construction Management personnel associated with an eligible project. F. “Director” means the Community Development Department Director. G. “Eligible Activity” means any of the following: 1) Seed/Catalyst funds for very early costs to initiate or expedite eligible project development (such as feasibility analysis or community planning) 2) Land or property acquisition for new development 3) Predevelopment (architecture, engineering/soils, environmental reports, financial consultants, etc.) 4) Construction (site preparation, construction, materials) 5) Rehabilitation activities to renovate existing rental units 6) Conversion of market rate housing, or non-residential buildings, to deed restricted affordable housing 7) Any other activity that helps to address program goals and priorities of increasing affordable housing as reflected by ordinances and resolutions established by the City Council H. “Eligible Project” means a project which includes, but is not limited to: 1) Rental housing projects that meet the affordability requirements of these guidelines including Permanent Supportive Housing. The affordability of all 3 units assisted by Program Funds shall be income and rent restricted for not less than 55 years; 2) Single-room occupancy (“SRO”) projects; 3) Emergency Shelters; 4) Supportive and transitional housing; 5) The residential portions of mixed-use and live/work projects that meet the affordability requirements of these guidelines; 6) Conversion of market-rate housing to affordable, or of non-residential buildings to affordable housing; 7) Single-family or multi-family homeownership projects that meet affordability guidelines; and 8) Any other activity that helps to address Program goals and priorities of increasing affordable housing as reflected by ordinances and resolutions established by the City Council. I. “Emergency Shelter” means the same as in Code of Federal Regulations Title 24, Section 576.2, as amended from time to time. J. “Extremely Low-Income” has the meaning set forth in Health & Safety Code Section 50106. Grantees shall utilize income limits issued by the California Department of Housing and Community Development at the following link: http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal- incomelimits.shtml K. “Grantee” means an entity that has received an award of Program Funds. L. “Homeownership Project” or “Units Within a Homeownership Project” means an Eligible Project that uses Program Funds to assist in the acquisition, construction or rehabilitation of owner-occupied housing units in which the homeowner has an ownership interest sufficient to comply with Health & Safety Code Section 50843.5(d)(3), including the construction, repair, reconstruction or rehabilitation of Accessory Dwelling Units or Junior Accessory Dwelling Units. M. “Low-Income Households” has the meaning set forth in Health & Safety Code Section 50079.5 for “Lower income households”. Grantees shall utilize income limits issued by the California Department of Housing and Community Development at the following link: http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal- incomelimits.shtml N. “Management Team” means the Property Owner, Property Management, Financial Partners, and/or Service Providers associated with an eligible project. O. “Moderate-Income Persons and Families Households” has the meaning set forth in Health & Safety Code Section 50093. Grantees shall utilize income limits issued by the California Department of Housing and Community Development at the following link: http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal- incomelimits.shtml P. “NOFA” means a Notice of Funding Availability issued by the Department to announce the availability of Program Funds, the terms and conditions of awards, and requirements for the submittal of applications. 4 Q. “Permanent Supportive Housing” has the same meaning as “supportive housing” in Health & Safety Code Section 50675.14: housing, with no limit on the length of stay, that is occupied by the target population, and that is linked to onsite or offsite services that assist the supportive housing residents in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community. Permanent Supportive Housing may include associated facilities if used to provide services to housing residents. Permanent supportive housing does not include “health facility” as defined by Health & Safety Code Section 1250, or any “alcoholism or drug abuse recovery or treatment facility” as defined by Health & Safety Code Section 11834.02, or “community care facility” as defined in Health & Safety Code Section 1502, or “Mental health rehabilitation centers” as defined in Section 5675 of the Welfare and Institutions Code, or other residential treatment programs. R. “Program” means the administration of the Affordable Housing Trust Fund, as implemented in these Guidelines. S. “Program Application” means an application in a form prescribed by the Program. T. “Program Funds” means the funds provided by the Affordable Housing Trust Fund pursuant to these Guidelines U. “Public Agency” means V. “Single Room Occupancy or SRO project” means W. “Transitional Housing” means the same as in Code of Federal Regulations Title 24, Section 578.3. X. “Very Low-Income” has the meaning set forth in Health & Safety Code Section 50105. Grantees shall utilize income limits issued by the California Department of Housing and Community Development for Very Low-Income households for each county at the following link: http://www.hcd.ca.gov/grants-funding/income-limits/state- and-federal-incomelimits.shtml SECTION 3 ORGANIZATION & OVERSIGHT The Housing Trust Fund will be governed by the San Rafael City Council. The City Council will provide oversight to the Housing Trust Fund and will review all loans and grants for approval or denial. This review process will take place through the regular agenda of the City Council. Minutes will be recorded at all meetings and maintained by City staff. The Department will process all applications and make funding recommendations to the City Council. SECTION 4 APPLICATION PROCESS Applicants with eligible projects seeking Program funding for an eligible activity may apply via one of two application processes: A. NOFA Application Process. When necessary, the Program may issue a NOFA announcing availability of Program Funds, the terms and conditions of awards, and requirements for the submittal of applications. Program Funds made available through the NOFA may not be greater than the balance of the Affordable Housing Trust Fund. 5 Rolling Application Process. During periods without an issued NOFA by the Program, Applicants with eligible projects seeking Program funding for an eligible activity may submit a Program Application. Applicants must contact Program staff by phone or e- mail prior to Program Application submittal. Completed Program Applications must be submitted to the Director. Once a Program Application is received by the Director. Program staff will make a recommendation to the San Rafael City Council to approve or reject the funding request. Under both processes, Program staff reserve the right to determine the reasonableness of all costs and fees associated with a project, including developer fees. SECTION 5 EVALUATION CRITERIA All funding applications will be evaluated using the following criteria: A. Community Benefit. Eligible projects must provide a tangible and cost-effective benefit to the community as well as the intended beneficiaries. B. Development Team’s Capacity. Eligible projects must show Development Team experience and capacity (skills, experience, resources) to achieve the proposed activity. C. Management Team’s Capacity. Eligible projects must show organizational experience and capacity (skills, experience, resources) to achieve the proposed activity, including the organization’s financial health. The organization may not have any unresolved financial audit findings. Applications should include applicant monitoring and reporting record, previous project experience and property management experience. D. Readiness to Proceed. Where applicable, the City will prefer eligible projects which can show a combination of the following: i. site control; ii. third party capital needs assessment completed within past 12 months; iii. scope of work identifying critical repairs; iv. expected planning and zoning approval within 90 days of funding approval; v. construction/acquisition start (within 12 months of application); vi. construction cost estimate; vii. substantial amount of other financial resources committed; and viii. relocation and/or replacement housing plan and budget identified E. Leverage and Collaboration. The City encourages applicants to seek other financing and in-kind contributions to match City investment. Other things being equal, applications with greater matching sources will receive more favorable consideration. The City prefers not to be the sole source of funding for a project or program. F. Per Unit Subsidy (PUS). Recognizing the cost per residential unit will vary per project due to a variety of factors, there is no specific PUS. Reasonable PUS includes evaluation of the target population, project type and cost effectiveness (cost per person, externalities, reserves, leveraging). 6 SECTION 6 FUNDING TERMS Program Funds will generally be available in the form of a loan or a grant. Loan length and terms will vary by project to meet the needs of the project, availability of financing, financing method, development configuration and organizational capacity of the applicant, as determined by staff and the City Council. SECTION 7 REPORTING REQUIREMENTS Grantees must notify Program staff in writing of all major changes, financial or otherwise, relating to an application for financial assistance or an approved project. Depending on the size and type of loan or grant requested, the following may be required: a written breakdown of expenditures funded with Housing Trust Fund proceeds; receipts, invoices and cancelled checks; annual reports certifying ongoing affordability; annual reports on project demographics and affirmative marketing plans; annual written reports describing any changes in the project development, operations, or management; and/or audited annual financial statements. BE IT FURTHER RESOLVED that any and all amendments to the “Guidelines for the Administration of the Affordable Housing Trust Fund” herein, as deemed necessary from time-to-time, shall be adopted by resolution of the City Council. I, LINDSAY LARA, City Clerk if the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council held on the 21st day of January 2020 by the following vote to wit: AYES: Councilmembers: Bushey, Colin, Gamblin & Mayor Phillips NOES: Councilmembers: None ABSENT: Councilmembers: McCullough LINDSAY LARA, City Clerk • • • • •A written breakdown of expenditures funded with Housing Trust proceeds; •Receipts, invoices and cancelled checks; •Annual reports certifying ongoing affordability; •Annual reports on project demographics and affirmative marketing plans; • •Audited annual financial statements For more information, please contact: Paul Jensen Community Development Director (415) 485-5064 paul.jensen@cityofsanrafael.org Annual written reports describing any changes in the project development, operations, or management; and/or Depending on the size and type of the loan or grant requested, the following may be required: Affordable Housing Trust Fund Application The City of San Rafael Affordable Housing Trust Fund (“Trust Fund”) was created to increase the stock of permanently affordable homes in the City. The Trust Fund provides a local funding source for financial and technical assistance to help non-profit affordable housing developers and local public agencies produce and preserve affordable housing for low and very-low income households in the City of San Rafael. Application Process Unless during an active Notice of Funding Availability (NOFA) process, the Trust Fund application period is ongoing, and applicants may submit requests at any time.Applicants must contact staff by phone or e-mail prior to submitting an application. Staff will make a recommendation to the San Rafael City Council to approve or reject a funding request. Staff reserve the right to determine the reasonableness of all costs and fees associated with a project, including developer fees. Reporting Requirements Staff must be notified in writing of all major changes, financial or otherwise, relating to an application for financial assistance or an approved project. 1 of 7 SAN RAFAEL THE CITY WITH A MISS ION A. Application Forms 1. A Completed Application Checklist 2. Completed Application, signed by authorized personnel of the applicant 3. Completed Application Excel Spreadsheet including each of the following tabs: a. Rent Roll (if applicable) b. Performance Schedule c. Acquisition Sources and Uses d. Permanent Sources and Uses e. Completed 1-Year Operating Budget and 20-Year Cash Flow. B. Organizational Attachments (as applicable) Applicant Co-Applicant 1. Current year's operating budget 2. Financial statements for last three fiscal years (audited preferred) 3. Names and Addresses of Board of Directors 4. IRS Tax Exemption letter C. Required Attachments The following attachments must be submitted with your application. 3. Affirmative Marketing Plan (City template available) D. Supplemental Attachments (as applicable) 1. Appraisal (including Fair Market Value and Value with Regard to Restrictions) 2. Preliminary Title Report 3. Capital Needs Assessment 4. Architectural Drawings 5. Property Inspection Reports 6. Survey and Analysis of Building Systems 7. Phase I Environmental Site Assessment 8. Phase II Environmental Site Assessment 9. Copies of applications for other funding and commitment letters 10. Tenant Income Certification Forms for no less than 50% of the existing residents 11. Proposed Temporary Relocation Plan 1. Documentation of site control (e.g. Purchase Contract, Option to Purchase, Grant Deed) 2. Board Resolution that authorizes site acquisition and application for Local Housing Trust funds (if entity’s governing body is a board) 4. Memorandum of Understanding between co-applicants or borrower and development consultant (if applicable) The following additional attachments may be requested after the Application has been submitted. Affordable Housing Trust Fund Application Application Checklist 2 of 7 LJ LJ □ SAN RAFAEL THE CITY WITH A MISS ION □ I I n n n n □ n n n □ n □ □ □ □ □ □ □ □ □ □ □ □ □ □ □ □ Organization: Contact Name:Title: Address: City:State:Zip: Phone:Email: Organization: Contact Name:Title: Address: City:State:Zip: Phone:Email: Development Name: Development Address: City:State:Zip: APN (provide site name if applicable): Number of anticipated units by income level and bedroom count Very-Low Low Moderate Market Total 1. Summary 10. Tenant Income Certification Forms for no less than 50% of the existing residents Briefly summarize the request, including property description, proposed use of funds (and number of units involved). Please attach to this application the documentation addressing the following additional information: 1-Bedroom 2-Bedroom 3-Bedroom 4-Bedroom Total Additional Information: Studio Affordable Housing Trust Fund Application Application Information Co-Application Information Co-Application Information Property Unit Mix 3 of 7 SAN RAFAEL THE CITY WITH A MISS ION 2. Background/ Applicant History 2.1 2.2 2.3 2.4 3. Site 3.1 3.2 3.3 3.4 Adjacent Uses. Indicate land uses of other parcels within the immediate vicinity of the project. Project Manager. Describe staff assigned to the proposed property, their experience with acquiring/owning/rehabilitating similar sites, their current availability, and what percentage of time they expect to work on the subject project. Indicate similar projects each staff member has successfully completed. Property Manager. Please provide the name of the property management company that will be hired to manage the property (if applicable). Include the number of buildings and number of units the company currently manages that are affordable housing sites. Site Control. Please describe the type of site control that the applicant has for the proposed property and submit documentation in accordance with the Application Checklist. If this request includes funds for acquisition, summarize the acquisition terms, price, contingencies, conditions and deadlines. When available, please submit a copy of an appraisal of the property and of a Board Resolution that authorizes your organization to acquire the site. Unusual Characteristics. Please describe any unusual characteristics of the site (e.g. slope, rock formations, etc.) and any easements or encroachments granted to or caused by adjacent parcels and improvements. Existing developments. Building Inspection Report. Please describe any significant findings of building inspection reports and submit copies of any building inspection reports and surveys/analyses of any building systems, in accordance with the Application Checklist. Additional Information: (con't) Affordable Housing Trust Fund Application Property History. Please provide the property’s history leading up to this request. Include when the sponsor acquired/will acquire the property, any previous requests for County funding, attempts to secure other financing, etc. Applicant Profile. Please provide a profile of the applicant (and of the co-applicant, if applicable). Include a description of the organization, including its mission, how long it has been in existence, experience of staff, and characteristics of its Board of Directors. Describe any recent expansion or cutbacks in activities and/or budget, as well as the organization's standing with licensing or other "accreditation" authorities, if applicable 4 of 7 SAN RAFAEL THE CITY WITH A MISS ION 3. Site (con't) 3.5 3.6 Flood Zone Phase I/II Site Assessment Results Potential Hazards Environmentally sensitive area or species Cultural resources 3.7 4. Development/ Rehabilitation Plan 4.1 4.2 4.3 Additional Information: (con't) Proposed New Construction. Entitlements. For new construction, please describe in detail the permits that will be required, for example Design Review, Master Plan, Zone Change, General Plan Change, Coastal Permits, etc. Proposed New Construction- Local Planning contact. Please describe any contact with the local planning staff and any specific feedback provided. Proposed New Construction Population to be served. Describe the type of housing, family, senior, individuals with disabilities, etc. Affordable Housing Trust Fund Application Neighborhood Amenities. Describe any nearby amenities, such as parks, public transportation, grocery stores, health care facilities, schools, childcare, libraries, parks/open space, etc., that residents of the project are/would be able to use. Environmental Issues/Site Suitability. Please explain the relevant environmental issues of the proposed project. Include any of the following items that are known. If applicable and when available, submit a copy of the Phase I and Phase II Environmental Site Assessments. State/Federal Environmental. Please describe how you plan to comply with state and federal requirements for environmental reviews, if any, including Section 106 review for historic preservation. 5 of 7 SAN RAFAEL THE CITY WITH A MISS ION □ □ □ □ □ 4. Development/ Rehabilitation Plan (con't) 4.4 4.5 4.6 4.7 4.8 5. Financing Plan (Sources and Uses) 5.1 5.2 Proposed Financing. Sources & Uses Table. Please provide proposed sources and uses of funds for the project. Include both committed and anticipated sources. Provide a complete Sources and Uses Table for acquisition and for permanent sources. Provide an anticipated per unit subsidy. Affordable Housing Trust Fund Application Proposed Rehabilitation or Acquisition Scope. Describe the scope of the rehabilitation that is proposed for the property and how it will address specific conditions, i.e. replacement needs, deferred maintenance, existing building violations, required seismic upgrades, building or health codes problems. Please describe any other existing rehabilitation needs that are not included in the proposed scope of work and explain their exclusion. Additional Information: (con't) If applicable, submit a capital needs assessment and any corresponding architectural drawings, in accordance with the Application Checklist. Explain how the rehabilitation will be staged to minimize risk and inconvenience to the residents. If certain systems or parts of residents’ units will be temporarily inoperable or unusable (e.g. kitchen or bathroom) during construction, state the estimated duration of such interruptions and what mitigations will be provided. Proposed Rehabilitation or Acquisition Population to Be Served. Describe the demographics of the current tenants in the building. Relocation. If applicable, describe in detail any temporary relocation of existing tenants at the site that will be necessitated by the proposed rehab scope. Include an explanation of the need for relocation, estimated duration, number of tenants that will be impacted, and which laws (local, state, federal) must be followed in carrying out the relocation. Accessibility. Please identify all applicable laws and the specific accessibility requirements that must be met in the design of the proposed project. If existing, please describe the accessibility of the building and the extent to which that accessibility will be upgraded. Community Support. Describe community engagement activities that have taken place and future plans that will take place Existing Financing. In the chart below, list any financing (loans and grants) previously received from all public and private sources for this building. 6 of 7 SAN RAFAEL THE CITY WITH A MISS ION 5. Financing Plan (Sources and Uses) (con't) 5.3 • • • 5.4 6. Project Operations 6.1 6.2 6.4 Affordable Housing Trust Fund Application Additional Information: (con't) Proposed Sources Narrative. For the sources shown in item 5.2, Sources & Uses Table, please indicate the following: the timing and likelihood for obtaining commitments of anticipated funding sources Proposed Uses Narrative. For the uses shown in item 5.2, Sources & Uses Table, please explain how the budgeted amount was derived for each of the uses that are applicable to the proposed project. State whether costs are estimated or bid, and provide any other relevant information which justifies the budgeted expense, such as cost per square foot, percentage of other costs (e.g. contingency), estimated number of work hours. Annual Operating Budget. Using the Excel file provided, produce an operating budget. Include notes that explain how the budgeted costs were determined and other relevant information that justifies the budgeted expenses. 20-Year Cash Flow. Using the Excel file provided, produce a 20-year cash flow budget. In the space below, provide a narrative of any notable occurrences during the 20-year period. Section 8 Voucher Compliance. Please confirm that the property will be registered with the Marin Housing Authority as a site that will accept Section 8 vouchers. the status of all proposed funding sources as of the date of this application the alternatives that will be pursued in the event that any funding sources are not obtained or are committed at lower levels than requested 7 of 7 SAN RAFAEL THE CITY WITH A MISS ION