HomeMy WebLinkAboutF.2 Allocation Criteria & Application Draft - CunninghamCity of Bozeman
Workforce Housing Fund Allocation Process & Priorities
Affordable Housing Fund Philosophy: The intent City of Bozeman Affordable Housing Fund is to create
more housing units in Bozeman through investment that provides a demonstrably significant return on
the investment of the funds provided from the Affordable Housing Fund. In order to provide the
greatest impact possible, funds may be accumulated over several years. Funds may be used to support
projects large or small, as long as the impact of the project on Community Housing is significant and
provides a valuable return on investment for the Bozeman Community.
The following describes the allocation process and priorities for the City of Bozeman’s Workforce
Housing Fund.
Available Funding Determination:
Prior to each fiscal year, Community Development Department and CAHAB will review the following
information to determine available funding opportunities from the Workforce Housing Fund for the
coming fiscal year:
Available Funds & Projected Revenues:
1. Carry‐Over Fund Balance:
a. Remaining uncommitted funds from previous fiscal year.
2. Additional General Funds budgeted for Workforce Housing Fund For Coming Fiscal Year.
3. Additional Cash‐In‐Lieu Funds Expected For Coming Fiscal Year*.
*Community Development Department may elect to keep certain in‐lieu funds in reserve.
Projected Expenditures:
1. Projected Contracted Services:
a. HRDC contracted services.
b. Others?
2. Workforce Housing Fund Obligations & Projections:
a. Community Housing Manager salary & expenses.
b. Committed consulting services.
c. Anticipated consulting services not yet awarded.
d. Commission‐approved projects from prior year not yet expended.
e. Commission‐approved projects for next fiscal year.
f. CAHAB recommended projects for next fiscal year.
Available Funds:
1. Projected revenues minus projected expenses = available funds for the coming fiscal year.
Fund Allocation Priorities:
The City of Bozeman will use the following criteria to allocate available funds from the Workforce
Housing Fund, in declining order of priority.
1. Down‐Payment Assistance & Impact Fee Reimbursement Funds: Each fiscal year, based on
anticipated requirements for down payment assistance, impact fee reimbursement, and
Community Housing strategies for the coming fiscal year, an amount will be budgeted, if
available funds exist, from the Workforce Housing Fund to ensure there is adequate funding for
units developed under the city’s inclusionary zoning ordinance. At the discretion of the City
Commission this set aside may be changed at any time during the fiscal year when it is
determined that the need for down payment assistance or impact fee reimbursement will not
require these funds, the need for down payment assistance or impact fee reimbursement is
greater than anticipated, or the goal of increasing affordable housing would be better served by
using the funds in some other manner.
2. Low‐Interest Loans or No‐Interest Loans: Low or no interest loans will be offered, if funds exist,
to projects that provide or facilitate the provision of housing affordable to those making less
than 80% of the area median income. The city’s preference is to offer such loans in lieu of non‐
reimbursable project funding whenever possible in order to ensure the long‐term viability of the
fund. Those projects scoring highest in the Workforce Housing Fund scoring process will be
given priority. Loan stipulations would include the following:
a. Funding would require that the property be deed restricted for the term of the loan plus
five years.
b. Loans will be made available for not more that 50% of the total project cost.
c. Interest rates for general projects would be equal to the current interest rate available
to the City when financing capital projects.
d. Non‐profit and governmental agencies would not be expected to pay interest.
e. Example; the owner of a house could borrow funds for an ADU at a lower than market
rate and the program would get a deed restricted unit.
f. Example; HRDC could borrow money from the fund with no interest to purchase
property or for construction funding.
3. Low‐Income Tax Credit or Deed Restricted Grants: Grant funding may be made available, if
funds exist, for low income tax credit projects or other deed restricted housing projects serving
those making less than 70% of the area median income at a one to one match. Those projects
scoring highest in the Workforce Housing Fund scoring process will be given priority.
a. Additional funding may be made available through low‐interest loans as described
above.
4. Land Acquisition for Community Land Trust: Grant or loan funding will be made available, if
such funds exist, for the acquisition of land that has the necessary restrictions to ensure the
affordability of dwelling units in perpetuity. Those projects scoring highest in the Workforce
Housing Fund scoring process will be given priority.
5. Grants for Infrastructure: Grant or loan funding will be made available, if such funds exist, for
the design and / or construction of infrastructure that would provide a direct benefit to the
creation of affordable housing. Those projects scoring highest in the Workforce Housing Fund
scoring process will be given priority.
6. Housing Preservation: Grant or loan funding will be made available, if such funds exist, for such
other projects that demonstrate a significant positive impact on the creation or preservation of
affordable housing. Those projects scoring highest in the Workforce Housing Fund scoring
process will be given priority.
7. Innovative Projects or Ideas: Funding may be provided, if available, for projects, processes, or
procedures that demonstrate a significant return on investment that advances the creation of
Community Housing in Bozeman.
City of Bozeman
Workforce Housing Fund Funding Request Application
Organization Seeking Funding
Organization Name:______________________________________________________________
Address:_______________________________________________________________________
Contact Phone Number: _______________Contact Email Address:_________________________
Project Information:
Project Name:__________________________________________________________________
Location of Project:______________________________________________________________
Project Description*:_____________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
*Attach project documents if desired.
Project Timing: _________________________________________________________________
# Affordable Dwelling Units to be Generated / Renovated:_______________________________
Area Median Income % Targeted:___________________________________________________
Project Partners (if applicable):_____________________________________________________
Does This Project Include Deed Restrictions or Community Land Trust?_____________________
Project Funding (Please Attach Budget if Available):
Total Project Budget:
Primary Project Funding Sources (list sources and amounts):
1.___________________________________________$__________________
2.___________________________________________$__________________
3.__________________________________________ $___________________
Amount Requested From Workforce Housing Fund: $_______________________
Which Project Elements Will Funds Be Used For? (attach line item budget if needed):
1._____________________________________ $__________________
2._____________________________________ $__________________
3._____________________________________ $__________________
Type of Funding Requested (circle one): Grant / Loan
If you selected Grant, would you consider a Loan if Grant was not available? Yes / No
Would you accept 50% of your requested amount? Yes / No
Would you accept 25% of your requested amount? Yes / No
Could the Grant / Loan be split among multiple years? Yes / No
Have you received workforce housing fund assistance in the past 5 years? Yes / No
Additional Information:
What additional funding sources have you solicited for this project?
__________________________________________________________________________
__________________________________________________________________________
What is the level of urgency behind the funding request?
__________________________________________________________________________
__________________________________________________________________________
If Workforce Housing Funds are not allocated to this project, how does impact the project?
__________________________________________________________________________
__________________________________________________________________________
Workforce Housing Fund
Scoring Sheet
For Use By CAHAB / Community Development
Date:________________________________________________________________________________
Project Name:_________________________________________________________________________
$ Funding Requested:___________________________________________________________________
Which Community Housing Action Plan strategy / action item does this project address?:____________
____________________________________________________________________________________
Rank the project from 1‐10 based on the following criteria:
Criteria Score (1‐10)
Viability of the proposed project: _________
Ability of this project to address a community need: _________
Alignment with Community Housing Action Plan: _________
Level of partnership with other organizations: _________
Alternate funding sources have been secured / solicited: _________
Thoroughness of the application / budget: _________
Perceived need for Workforce Housing funds for project viability: _________
Willingness to be flexible in grant / loan request: _________
Scope of project in terms of # of affordable housing units built / preserved: _________
Project’s generation of long‐term or permanently affordable housing: _________
Total Score _________