HousingDevelopmentGapFinancing
HelpfulHintsfortheGapFinancingApplicationandFrequentlyAskedQuestions
GapFinancingApplication(GFAWorkbook)
Worksheet Name HDGF Instructions & Index Instructions 
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Must use Excel 2010 for Windows (or newer version) or there will be Errors Many cells in the GFA Workbook are locked and contain formulas. You can view the formulas in the formula bar when you click on a locked cell. You should complete the entire GFA Workbook or formulas that rely on the information in incomplete cells will not populate. Most Worksheets have space out to the right that has unlocked cells that you can use to make notes or calculations. Index 
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Experience and Capacity Project Information Submit all your documents as named and listed on the HDGF Instructions and Index Worksheet. Requirements for each document required on the index are listed in the 2016 Consolidated Program Guidelines. Fill one Experience and Capacity Worksheet out for each General Partner and Developer. 
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You can copy the Experience and Capacity Worksheet to insert duplicates as needed. Indicate for each project if you were the developer, owner or sponsor for each project listed. The Experience and Capacity Worksheet is not locked so you can add additional rows as needed. 
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Make sure you use the project name you intend to be on your developments sign. If you do not have a second owner, do not fill out that section If you are required to accept bids for your General Contractor, you can use “To be Bid” or some other explanation in the cell next to General Contractors name 1 June 2, 2016 Architect Certification Pre‐application: The applicant will need to fill this out; square footage may be estimated at pre‐application. There are pop up comments to assist you in categorizing different types of space. Information on the Architect Certification Worksheet is used to populate information on the Gap Financing Worksheet. Final: The architect will fill this out and submit a signed copy with the Architectural Drawings Budget Annual Gross Project Income Calculation 
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The maximum tenant rent + utilities column in the budget sheet pulls from the DATA TAB. Use vacancy rates as required in the Multifamily Underwriting Guidelines Project Income Information 
Make sure you explain any sources of income or subsidy that you have. You can exceed the cell sizes if necessary. Construction and Permanent Financing 
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Fill out each row completely or you will have errors on the Cash Flow Evaluation Worksheet If other funds you are receiving are federal, make sure you include the source of those funds under source name, For example: “Franklin County HOME funds” Itemization of Project Costs 
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Amounts typed in here autofill below in the Sources and Uses breakdown section Type over the description for any “other” costs and provide a description of the cost. Sources and Uses Breakdown 
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Gap Financing Source names will carry over from the Permanent Financing Section Make sure that the totals of each column are equal to the funding amount you specified in the Permanent Financing Section and that all the formulas in the “O” column are $0. Profile of Committed/Potential Federal Funding 
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List any federal funds that are in the project in addition to the HDGF that you have applied for. The HDGF funding will automatically populate based off the information you have already entered into the GFA Workbook. Relocation Plans and Forms are not due at pre‐application. 2 June 2, 2016 Construction Cost Detail The Construction Cost Detail Worksheet is not required at pre‐application, but will be required if you are invited to submit a final application. If you have the information, you may complete it. Proposal Summary The Proposal Summary Worksheet will be released to the public. We often get requests from state and local officials as well as members of your community. Please make sure you are giving them a good representation of your proposed development. Spellcheck your narrative and ensure that the narrative fits in the space provided before you print the Proposal Summary Worksheet to a PDF and submit it. Cash Flow Evaluation The only thing you need to complete on the Cash Flow Evaluation Worksheet is the date. Everything else is populated based on information you have entered in other sections of the GFA Workbook, primarily on the Budget Worksheet. You can see all the formulas in the formula bar so if you are getting a result you did not expect, please look at the data that formula is using. Program Certification We will need an original and pdf copy of the certification. DATA TAB The data tab is unlocked so you can see the maximum costs per unit and rents for each county. 3 June 2, 2016 2016HDGFFrequentlyAskedQuestions
05/23/16 Answer Question What should applicants provide at pre‐
application for OHFA to evaluate their development based on the items listed under Pre‐Application Criteria for Selection in the Consolidated Guidelines? The Design and Construction Features agreement and Community Outreach Plan are not due until final application. At pre‐application, provide a pdf document named Selection Criteria.pdf that includes all items mentioned under Pre‐Application Criteria for Selection. These items could include Final Application items that are submitted early or other documentation that OHFA can use to evaluate if the pre‐application meets that specific criterion. The guidelines state that to receive highest consideration a proposal (HDGF pre‐application) must have 10 percent of their total financing sources conditionally committed. What should be submitted at pre‐application to demonstrate the conditional commitment(s)? Projects wishing to receive this consideration should submit a signed conditional commitment from the funding source(s) that total at least 10 percent of the developments total financing sources. Include these commitments in the pdf document named Selection Criteria.pdf. A conditional commitment letter must indicate the following: During Competitive Review, OHFA will look at the Selection Criteria and evaluate the entire pre‐application, which includes experience and capacity, if the project meets threshold and underwriting requirements, and if the pre‐application is complete and orderly. Projects which are further along in the development process and can provide items like the Design and Construction Features Agreement may receive higher consideration 1.
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Loan or grant amount. Loan term and amortization. Interest rate. Fees associated with the loan or grant. Reserve requirements. Lien position of the loan. Acknowledgement by the lender or allocating entity that the project seeking financial support has received at least a preliminary review and meets the requirements of the lender or funders, conditional upon a final underwrite Does OHFA have minimum and/or maximum per unit Hard Construction Cost No, but OHFA will evaluate the scope of the work against the PCNA to ensure all issues are being addressed and the final project will meet RRS. All projects are subject to review for cost 4 June 2, 2016 limits on HDGF rehab projects? reasonableness. How is the maximum developer’s fee amount established for HDGF projects? Developer fees can be up to 15% of the Total Development Costs (excluding the developer fee). What requirements can be excepted/waived (specific or any)? Applicants may seek reasonable exceptions to just about anything because the HDGF round is structured to be more of an open process. However, any request must have a documented need and OHFA does have the discretion to approve or deny such requests. OHFA will release decisions on these when we make final determination each month. Are contractor surety (Performance & Payment bonds) required on HDGF projects? OHFA does not require this on HDGF projects. We will be requiring 3rd party inspections during construction. Are there fees for OHFA inspections during construction? OHFA does not assess a fee for the construction monitoring visits completed by OHFA staff. When does an applicant submit for Green Standards at the time of pre‐application? At pre‐application, the applicant only needs to indicate which certification and level they are seeking. What testing is required for environmental hazards on HDGF rehab projects (asbestos‐radon‐lead paint‐lead in water‐mold)? The cost of these tests will impact development budgets. All projects funded through OHTF must provide a Phase I Assessment. OHFA's ER consultants may identify additional testing that will be required. Applicants must know the current condition of the site/property and whether or not there is a potential for additional testing. Those costs can be reflected in the development budget. Will OHFA process pre‐applications as they are submitted during a sub‐round or as a total group after the sub‐round has closed? Is there an advantage to submitting early in a sub‐round (first‐
come/first‐serve) or are all pre‐
applications submitted during a given sub‐
round processed together? Applications will be accepted during the timeframes established. OHFA will determine which projects may submit a final application, and notifications will be sent as noted in the guidelines. 5 June 2, 2016 Added 05/26/2016 Question Answer Can the organization have received a previous HDAP award but not for the specific project? Yes Is OHFA hoping to fund eight projects total? OHFA wants to maximize the amount of funds leveraged with HDAP funding. OHFA’s goal is to fund at least six projects. Will OHFA provide feedback to applicants that were not selected to submit a final application? Yes, OHFA will provide a written response indicating reasons that the application was not selected. When will OHFA know the funding amount that is available? OHFA expects that the amount of funding available will be known in the fall of 2016. This is out of OHFA’s control and could be much later. Are funds reserved for Round II? It is OHFA’s goal to set aside $1,000,000 for Round II. Final amounts are dependent on the amount of funding available. Would a small rehab project that can be completed with only HDAP be competitive? OHFA will typically not fund more than 50% of the total project costs. Are DCFAs required in pre‐application? DCFA’s are not required at pre‐application. Does a management company that has experience working with OHFA need to submit the OHFA Management Company Capacity Review form? Any management entity not currently managing a property funded by OHFA must submit the Management Company Review. Are there common space requirements The maximum percentage of common space for new units is 20%. For rehabilitation, common 6 June 2, 2016 on rehab, or just new construction? space cannot be added if the percentage of common space will exceed 20%. For a definition of common space, please refer to page 34 in the guidelines. Does visitability exception have to be for the whole project, or for each specific aspect that does not meet the requirement? Use the Visitability Exception form to submit requests for any project that cannot meet one or more aspects of visitability. When does OHFA anticipate funding announcement so we can know when to trigger the 6‐month purchase requirement? OHFA will release funding decisions as noted in the guidelines. However, OHFA has no control over when the Master HDAP Agreement will be issued by the Development Services Agency. OHFA cannot issue a funding agreement until after the Master HDAP Agreement is issued. Applicants should plan accordingly. Do rehab projects have to meet green standards? OHFA expects each applicant to make every effort to meet green standards. A waiver request is required for any rehabilitation project that cannot meet one or more requirements of green standards. In the waiver request, applicants must detail which green criteria cannot be met. OHFA will not issue a blanket exception for green standards. Is there a limit on the number of applications one agency/entity can submit? No, but unless otherwise noted or approved by staff, developers and owners will be limited to one award. (HDGF: Funding Limits Section) What specific information is requested on the rent rolls? OHFA will accept existing forms currently provided by Management Entities. Does OHFA still accept the PHA utility allowance? Yes What is the difference between the audited financials required at pre‐app and that required at final app? The HDAP applicant must submit their audited financials at pre‐application. For rehabilitation, the financials submitted at final application should be for the specific project. If the project is newly acquired or new construction, project financials may not be available. Financials must be audited or compiled/reviewed by a Certified Public Accountant. Is there a difference between construction displacement (permanent) and the category of permanent No, relocation is temporary. Displacement involves residents no longer being eligible to live in the project once complete. 7 June 2, 2016 displacement? What if financials are pooled with other projects? The applicant must have an accountant pull out the individual project costs and certify that information. In the event the project receives an award of funds the project will be required to keep separate financials. If there is no local Accessibility Agency, who do you contact about to meet notification requirements? Applicants that do not have an accessibility agency in their county, should send their notification to the closest county contact(s) Does a new mortgage trigger the integration requirement (max of 10% disabled), even if the project is not new (e.g. originally built without an OMHAS mortgage but rehab will seek one) Integration is not an OHFA requirement. Do you have to complete construction cost detail at pre‐app? No, please refer to the GFA Helpful Hints Section. Can HDAP be used for relocation and is Uniform Relocation Act requirements triggered? Yes; however, the documentation required to reimburse projects for this is laborious for both the applicant and the agency, so it is discouraged. This may be approved on a case by case basis. 8 June 2, 2016