NYS HOME Local Program
Small Rental Development Initiative (SRDI)
Application Technical Assistance Webinar
Questions and Answers
April 26, 2017
1. Question:
We understand that single family rentals are eligible. To compete however, we will need
two single family rentals – Correct?
Answer:
The minimum project size is 2 units, so yes, if the units are one unit per property as a
single family home, then you would need two separate single family homes for
submission.
2. Question:
If we are electing to be LEED certified what documentation should we provide in
Attachment 6? Is a signed proposal between the applicant and an energy consultant
stating that the project will seek LEED certification appropriate documentation?
Answer:
Yes, the proposal should also list the project site or sites, style of housing (multi-unit,
single family, low rise residential, etc.) & what rating level you will seek (Platinum,
Silver, Gold).
3. Question:
If an organization is awarded a grant less than total development cost, can the
organization use those funds as asset, to leverage funds for the remainder of the project
from a financial institution?
Answer:
All financing must be committed in order for the HTFC to commit HOME funds and the
project has to be viable for the affordability period. Therefore, every project must have
full commitment of all non-HOME funds – whether construction or permanent – needed
to implement the project, and any non-HOME loans must be able to be repaid – for
construction loans, there must be a permanent takeout loan commitment, and for any
permanent financing, the loan must be able to be amortized from positive project cash
flow.
4. Question:
Regarding common areas- I see that the amount we can fund through SRDI is
proportional to the square footage of the HOME assisted units versus the total
residential space. I just want to be sure that things like staircases, siding, roof, exterior
doors etc. are “common areas” that would be eligible for funding based on this
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proportion and that only spaces like community rooms, laundry rooms etc. are
considered non-residential areas that are not eligible for funding.
Answer:
Yes, building components outside of residential units such as staircases, siding, roof,
exterior doors etc. are “common costs” that are eligible for HOME funding, subject to
cost allocation.
Community rooms and laundry rooms may be eligible to be constructed or rehabilitated
with HOME funds, subject to cost allocation. See the HOME regulations at 24 CFR
92.206(a)(4): “For both new construction and rehabilitation of multifamily rental housing
projects, costs to construct or rehabilitate laundry and community facilities that are
located within the same building as the housing and which are for the use of the project
residents and their guests.”
5. Question:
Will you be creating an Environmental Compliance Handbook for SRDI?
Answer:
No. For SRDI, there is no environmental compliance handbook. The HCR
Environmental Analysis Unit (EAU) will work with HTFC contracted environmental
consultants to assist the awardee with the process of completing the environmental
review. Additional guidance will be given as a part of the contract execution process that
is specific to each particular project.
6. Question:
Do we need to show proof of SEQR, SHPO and NEPA?
Answer:
No, verification of SEQR, SHPO & NEPA is not required as a part of the application, but
will be required during the contract execution process, if awarded funds.
As we mentioned in the technical assistance webinar, contracts will be executed in late
summer, early fall of 2017, on a conditional basis, pending environmental approval.
The environmental approvals will take time, most contracts are expected to begin
construction in the early spring of 2018. An applicant for SRDI must do all possible up
front during the application process to determine the environmental status of properties
to be included in a SRDI project.
7. Question:
Should the NEPA guidelines for the “Access to HOME Program” be used for the NEPA
review portion of the application?
Answer:
No, these are not related to the NYS HOME Local Program SRDI project. For SRDI,
there is no environmental guidebook, as the HTFC will work with environmental
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consultants that will assist the SRDI awardee to complete the NEPA process. Guidance
will be given as a part of the contract execution process that is specific to each
particular project.
8. Question:
Is it okay for applicants to submit letters of support? If it is, should we submit them
along with the Management Plan?
Answer:
No, letters of support are not required in the application and should not be uploaded.
Also, please note that you should not upload the Project Management Plan, but only a
response to the “Project Management Plan Questions.”
9. Question:
The project management plan states that architectural plans and specifications must be
provided prior to the start of construction. We are proposing the rehabilitation of a two
unit, three bedroom townhouse. We do not currently have any plans for this project so
will we have to include architectural services in our budget to prepare plans and specs
for approval?
Answer:
The requirement for plans and specifications to be submitted is related to new
construction projects. Housing rehabilitation projects require the submission of a
detailed scope of work. In order to determine costs, you will need to develop a scope of
work during the application process so you can estimate the correct amount of funds
needed per unit. Architectural and/or engineering services required to develop the
scope of work are eligible costs.
10. Question:
Do I understand correctly that I should be applying for Grants.gov access for the nonprofit subsidiary owner of the project and for CHDO status for the non-profit?
Answer:
All applicants that apply for SRDI must be registered in Grants Gateway. See the
SRDI RFP for more details.
CHDOs are encouraged to certify the project as CHDO eligible, but it is not required. If
you do want to certify as a CHDO, contact Stephanie Galvin-Riley, Assistant Director
and she will assist you with the certification process.
For a CHDO application, the applicant must be the ownership entity, as the HOME
funds must be provided to the entity that owns the project. If a CHDO is “sponsoring”
the project that is or will be owned by it’s wholly owned subsidiary, the CHDO will be
part of the application only as the “sponsor”.
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Below is additional ownership information in the Q & A posted on our website, question
number 45:
Applicant/Ownership Requirements:
From the RFP, the following are eligible applicants: Non-profit Corporations
incorporated under State Non-profit Corporation Law, Community Housing
Development Organizations (CHDOs), Public Housing Authorities and Non-profit
subsidiaries, known as the “developer-owner” in SRDI documents.
The Developer-owner must be the sole and exclusive owner of the property during
development and the required POA, typically 15 to 20 years. The project cannot be
co-owned with another entity. All sites included in the SRDI project must be owned by
the non-profit applicant under common ownership, financing and management.
The Developer-owner must own or will own the project in fee simple absolute title or
have a long term ground lease that is at a minimum, equal to the term of the period of
affordability.
Non-profit Subsidiary Ownership Requirements:
Rental housing that is sponsored by the non-profit applicant that is owned by a
subsidiary of the non-profit such as a limited partnership of which the non-profit
applicant or its subsidiary is the sole general partner, or a limited liability company of
which the non-profit applicant or its subsidiary is the sole managing member must be a
single purpose, wholly owned entity of the non-profit applicant.
11. Question:
Our organization is looking to do a target area acquisition/rehabilitation project in a
predominantly rental neighborhood. A couple of the buildings should be demolished,
instead of rehabilitated and rented out. There will be no new construction on that part of
the project. Is the acquisition and demolition of these sites an eligible cost?
Answer:
Demolition is only eligible under HOME if new housing is constructed, so demolition
without replacement would not be eligible as a HOME cost.
12. Question:
Regarding energy audits: the non-profit will be submitting an application for multiple
sites which have been vacant for some time and will require significant rehabilitation.
Because the work scopes will include new roofs, windows, insulation, heating systems,
appliances etc., is still necessary to conduct an energy audit if all the typically findings
are already planned in the work scope to be submitted?
Answer:
The applicant must ensure the scope of work includes weatherization and energy
efficiency measures. If the sites allow for an appropriate energy audit to be performed,
one should be completed. If the sites have no working systems to be able to
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appropriately complete an energy audit, then one does not have to be completed. As
the scope of work must include weatherization and energy efficiency measures,
applicants are encouraged to partner with a weatherization provider to assist in
determining the scope of work.
13. Question:
Regarding the need for an energy audit for the application, my contacts at the company
that performs these requests said that you have to have current utility bills. The project
we are requesting funding for has been vacant for two years. Please advise on how to
proceed.
Answer:
The applicant must ensure the scope of work includes weatherization and energy
efficiency measures. If the sites allow for an appropriate energy audit to be performed,
one should be completed. If the sites have no working systems to be able to
appropriately complete an energy audit, then one does not have to be completed. As
the scope of work must include weatherization and energy efficiency measures,
applicants are encouraged to partner with a weatherization provider/energy consultant
to assist in determining the scope of work.
14. Question:
We have contacted a few Energy Audit agencies for proposals. How extensive of an
audit is required. Does it have to be HRES Index rated? One agency offered to do a
visual site assessment pro bono because we are a non-profit and another agency wants
$4500 because we have 3 sites.
Answer:
SRDI requires a standard energy audit, the same as would be typically prepared by a
state funded WAP, NYSERDA or other private energy company would be appropriate.
The audit is not required to be submitted as part of the application, although LPAs are
encouraged to get one done so they can more accurately estimate the costs of
incorporating the audit recommendations into the scope of work and budget.
15. Question:
The application says properties that have an existing HOME enforcement mortgage are
not eligible. One property recently received HOME funds from the County for a new
roof and boiler. The funding was from HUD under the County's HOME Investment
Partnership Program. The enforcement Declaration and Mortgage that we have is with
the County Community Development. So since our funding was through the County,
are we eligible for SRDI funds?
Answer:
No. A project that is currently under a HOME regulatory agreement from any HOME
Participating Jurisdiction is not eligible to apply.
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16. Question:
We have multiple sites, for a total of 16 units; however, no one site has more than 10
units does Davis–Bacon still apply?
Answer:
HOME regulations at 92.354(a) (1) applies Davis-Bacon to “Every contract for the
construction (rehabilitation or new construction) of housing that includes 12 or more
units assisted with HOME funds.” Applicants must not break up construction contracts
into less than 12 units to avoid Davis Bacon. Applicants will need to justify construction
contracts being broken up within the project (i.e.: different sites, non-similar needs,
different housing types, pricing).
17. Question:
Can you provide confirmation that design guidelines are not in effect for new
construction?
Answer:
HTFC Design Guidelines do not apply. HOME Property Standards for New
Construction as listed in the Project Management Plan do apply.
Please Note: if your project consists of 5 or more units of new construction or 15 or
more units of substantial rehabilitation, Section 504 requirements must be met,
including accessible units and units adaptable for persons with sensory impairments.
18. Question:
Do we need to do a formal market analysis and/or market study?
Answer:
No, applicants must respond to the following question regarding market demand:
“Using recent, relevant data from the area where the project is located: demonstrate the
need for affordable rental housing of the size and type you are proposing in the local
market area, including occupancy levels in comparable projects, waiting lists, and other
evidence of demand.”
19. Question:
Can I start my application in CDOL now, even though I do not have all of the details of
my application worked out yet?
Answer:
Yes, you can start the CDOL application at any time, save it, and go back to it as
needed. You may edit and save the various parts up until you have submitted and
certified it. Starting the application early is advantageous so that you are not crunched
for time as the application deadline nears and you can address any questions or
concerns early in the process. Be sure to save your work before exiting.
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20. Question:
Can SRDI be used for a mixed use development, such as a senior center downstairs
and tenants upstairs?
Answer:
Yes, however the residential housing in the project should be wholly improved and
HOME funds may not be spent on the Senior Center portion of the project.
21. Question:
The link provided for the Census Demographic Profiles on page 16 of the CDOL
instructions brings you to a page that states the data will no longer be available after
January 31, 2017. What should we do instead? Can we use county data instead?
Answer:
The link does bring you to a page which gives other options for obtaining the same
Census data. Be sure to also check Fact Finder, as that in most cases will provide the
necessary data to complete CDOL. This is also listed on page 16 of the CDOL
instructions. If needed, you may use “other” recent, relevant data and enter this under
“other”.
22. Question:
Can we co-apply for CIF funds to buy/demo the house for parking at the same time as
the SRDI application?
Answer:
Under HOME rules, all other sources must be committed before HOME funds can be
committed. CIF funds would need to be committed ASAP in order to work within SRDI
time frame for commitment. Please contact CIF to discuss timeline for possible
commitment.
23. Question:
I have applied for CIF funding and am considering applying for SRDI funding and have
wondered if there is any issue with applying for this funding when the CIF application is
still in process?
Answer:
If CIF will exclusively fund only non-residential space improvements, then it is
ok. HOME rules permit a commitment of HOME funds only if there is full funding for all
work necessary to meet HOME property standards for the residential spaces and
common spaces/components.
24. Question:
Can we match HOME to CIF? If not, I'd still do the 25% match from equity.
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Answer:
Yes, HOME (federal funds) can be a match to CIF (state funds). For HOME purposes,
as the State has already met its HOME match requirement for these funds, there is no
HOME match required from the applicant for SRDI projects.
25. Question:
Will a full cost certification be required at the end of the project?
Answer:
No, it is not required. However, HOME rules require source documentation supporting
the use of HOME funds be maintained and available for inspection for five years after
project completion.
26. Question:
If a Housing Authority is the developer owner, is it ok to rent the SRDI developed rental
units to tenants that will rent/pay with Section 8 Housing Choice Voucher rental
assistance or Shelter Plus Care rental assistance funds?
Answer:
Yes, tenants that have Section 8 or Shelter Plus funded rental assistance are eligible to
rent the units. However, recipients of tenant-based assistance must be free to rent units
wherever, so units cannot be financed or underwritten on the assumption that the
building will be filled with tenants holding tenant-based assistance. Project Based
Vouchers (PVBs) and other project based assistance that are committed to the project
can be considered in the underwriting.)
Also, for tenant-based assistance, total contract rent plus the utility allowance can’t
exceed the applicable HOME rent limit, even if the rental assistance program will pay
more.
27. Question:
Our non-profit wants to be certified as a CHDO for purposes of making an application
under the SRDI program, where should we get the necessary certification documents
and how should we upload documents related to CHDO certification?
Answer:
Contact Stephanie Galvin Riley, Assistant Director, she will send the required
documents to be filled out. These documents should be submitted as part of your SRDI
application.
CHDO Certification documents are uploaded as an attachment with your CDOL
application.
As there is not a specific attachment for these documents, include them with the Project
Management Plan question responses in Attachment 1.
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