Memphis, TN 38103 170 North Main THE CITY OF MEMPHIS DIVISION OF HOUSING AND COMMUNITY AFFORDABLE HOMEBUILD PARTNERSHIP PROGRAM FY 2021 GUIDELINES FOR SUBMITTING PROPOSALS The Division of Housing and Community Development FY20 Affordable Single Family Housing Program 1
25
Embed
AFFORDABLE HOMEBUILD PARTNERSHIP PROGRAM · The HOME Investment Partnership Program (HOME) provides formula grants to states and localities that communities use - often in partnership
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Memphis, TN 38103
170 North Main
THE CITY OF MEMPHIS
DIVISION OF HOUSING AND COMMUNITY
AFFORDABLE HOMEBUILD PARTNERSHIP
PROGRAM
FY 2021
GUIDELINES FOR SUBMITTING PROPOSALS
The Division of Housing and Community Development
FY20 Affordable Single Family Housing Program 1
Part I: Introduction
The City of Memphis Division of Housing and Community Development (HCD)
Guidelines for Submitting Proposals For
Affordable Homebuild Partnership
The Division of Housing and Community Development, "HCD", is the City of Memphis'
community development organization. HCD administers several programs which have been
created through Federal, State and local governments which are aimed at achieving public goals
such as urban redevelopment, housing creation, historic preservation, slum and blight removal,
and job creation. Other programs are aimed at providing social services and facilities for the
homeless. Our measurement of success is measured by the expansion/increase in the availability
of affordable housing units produced within the City of Memphis.
Part II: Program Description
The Affordable Homeownership & Rental Development Office within HCD is the custodian of the
funds available for the development and/or re-development of housing. Our programs are
targeted to reimburse developers for cost associated with creating affordable housing, to assist
individuals and families whose incomes are determined to be at or below 80% of area median
income as set forth by The Office of Housing and Urban Development, HUD. Such income limits
are set annually and can be found on the web site for HUD, www.HUD.gov, and are listed on
Appendix A-Agency Profile Instruction Packet. Our funding sources are NOT intended to
provide the primary or principal source of financing for a development but are intended to
provide financial incentives sufficient to fill "gaps" which would otherwise exist in the
development of affordable houses for low to moderate income families.
Part III: Goals and Objectives
FY20 Affordable Single Family Housing Program 2
The goal of the Strategic Community Investment Fund (SCIF) process is to provide a unified and
competitive application process for developers of affordable housing. The quality of such housing
is essential to the City's dedication in providing safe, decent, and sanitary housing for our low-to-
moderate income residents. By creating affordable housing, we are supporting the City’s
commitment to the renewed development of targeted areas.
Specific objectives of the application process are to:
1. Encourage the construction and/or rehabilitation of affordable housing units within the
targeted neighborhoods of Memphis and those neighborhoods in the greatest need of affordable
housing as denoted by the SCIF General Application.
2. Encourage the development of appropriate housing units for persons with special needs,
including seniors and persons who are homeless and/or have disabilities.
3. Encourage and promote ENERGYSTAR, Energy Efficiency, and Green building practices in
Affordable Housing.
Part IV: Other Financial Resources to Explore:
There are financing enhancements that developers can utilize to ensure affordability of affordable
housing units. (see Attachment I)
Part V: Available Sources of Funding for FY2021
The Affordable Homeownership & Rental Development Office currently utilize funding from
HUD's HOME Investment Partnership Program (HOME) for eligible rental projects. This funding
source is outlined below and with various important attachments and exhibits. The Attachments
and Exhibits are documents which accompany these guidelines to provide applicable information
and formats in which documents should be presented. Please be sure and read the packet
thoroughly before completing the application to ensure that your project complies with the
funding source guidelines.
FY20 Affordable Single Family Housing Program 3
Eligible Applicants
The HOME Investment Partnership Program (HOME) provides formula grants to states and
localities that communities use - often in partnership with local non-profit groups to fund a wide
range of activities including building, buying, and/or rehabilitating affordable housing or
providing direct rental assistance to low-income people. HOME is the largest Federal block grant
to state and local governments designed exclusively to create affordable housing for low-income
households. (See Attachment II)
Federally Funded Projects:
Federal dollars can be used for rehabilitation, new construction and site acquisition, among other
expenses. These dollars will be administered through the Affordable Homebuild Partnership and
will be in the form of a low interest loan with payback requirements. All funding committed to
approved projects will reimburse Developers for eligible costs through approved draw requests.
Eligibility requirements for the federal funding sources can be found in Exhibit "II", attached.
The minimum loan terms will coincide with the HOME Affordable Program Guidelines. The
maximum loan amounts will coincide with the Federal Housing Administration (FHA) Single
Family Mortgage Program Data. Income limits will coincide with HUD requirements please see
Attachment IV.
All project(s) requesting federal funding will be subject to a maximum funding cap of $750,000.00.
The total loan/grant amount for federally funded projects will not exceed $750,000.00 per project.
There is a limited amount of HOME funding, therefore, leveraging of other funds, public and/or
private, will be critical to the success of a project.
Part VI: Guidelines
1. Each applicant(s) must complete and submit one Agency Profile and one Affordable
Homebuild Partnership Application in the electronic portal.
FY20 Affordable Single Family Housing Program 4
Eligible Projects
5. All applicants including developers and their principal partners and contractors must be
current in all financial obligations to the City of Memphis. The City of Memphis will not award
HOME funds to an individual, organization or agency that has failed to complete an HOME-
funded project or that has an outstanding monitoring finding, disallowed cost, defaulted loan,
debarment actions, or any other legal encumbrance.
6. Nonprofit developers must be established as a 501 ( c )(3) or (4) and be incorporated in the State
of Tennessee, and be in good standing, as evidenced by a tax exemption determination letter from
Internal Revenue Service (IRS) and a Certificate of Existence filed with the Tennessee Secretary of
State's Office that is active in all respects.
7. Applicants must disclose all identity of interest relationships/contracts and /or costs involved
in a transaction, including during the development period and following the completion of the
project. An "identity of interest is any relationship based on family ties or financial interests
between or among two or more entities involved in a project-related transaction which reasonably
could give rise to a presumption that the entities may not operate at arms-length. Therefore, if
there is any question about whether an identity of interest may exist, the relationship should be
disclosed and explained to the City.
3. All applicant(s) can be a current participant in one (1) existing project(s), within the
Developmental Department of HCD during each application cycle.. The existing project(s) must
be underway with at least 75% of contracted funds drawn at the time of the new application in
order to be considered.
1. Single Family projects must contain a minimum of five (5) units.
2. Each applicant(s) must have a minimum of two years of experience with the construction
and sale of single family housing. If said applicant(s) doesn’t have the minimum experience
requirements, that applicant(s) can partner with an individual(s) and/or agency(ies) with the
required experience as stated above. The partnering agency(ies) and/or individual(s) must
provide written proof of partnership agreement with all partners.
4. All applicant(s) must be current with city and county taxes as it relates to the subject
property.
FY20 Affordable Single Family Housing Program 5
11. Maximum amount of federal funding available per project is $750,000.00.
1. Targeted redevelopment areas have been implemented as a part of the SCIF process.
Priority will be given to applications for projects that are proposed within these targeted areas.
Please refer to the referenced targeted neighborhoods map included in the Agency Profile.
6. All units constructed should be sold to eligible low to moderate income buyers upon
completion of the project.
2. The units in the development can be contiguous or infill lots, but they must be located within
the same zip code of the initial project site.
3. All project(s) must serve a low to moderate income population as determined by HUD.
8. The housing sales price for all single family units in each project must not exceed $255,000,
95% of the area median purchase price as determined by the Housing Trust Fund 2019
Homeownership Value Limits Data and referenced in Attachment IV.
4. The subject lots must not have any delinquent City or County taxes, and no delinquent or
defaulted loans.
5. The funding awarded to project(s) under this program will be disbursed by reimbursement
only.
9. All projects designed to be Energy Efficient, meet ENERGY STAR guidelines, Eco build and
Green Practices will be given priority within the targeted areas.
Part VII: Disclaimers
7. The subject property(ies) must not have received HOME funding in the past 20 years.
10. Strategic Anchor Areas have been implemented by the Memphis 3.0 Plan and are identified
as a part of the SCIF process. Priority will be given to applications for projects that are proposed
within these Strategic Anchor Areas. Please refer to the referenced Anchor Area maps included in