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HomeMy WebLinkAbout11-17-21 CAHAB Agenda & Packet MaterialsA.Call meeting to order B.Disclosures C.Changes to the Agenda D.Approval of Minutes D.1 Approval of Minutes from October 13th, 2021 (Seeburg) E.Public Comment Please state your name and address in an audible tone of voice for the record. This is the time for individuals to comment on matters falling within the purview of the Committee. There will also be an opportunity in conjunction with each action item for comments pertaining to that item. Please limit your comments to three minutes. F.Action Items F.1 Request from Bozeman Co-Housing, LLC for investment of Community Housing Fund grant dollars to act as a perpetual subsidy of public funds for two homes priced between 80% and 90% of Area Median Income (AMI).(Fine) G.FYI/Discussion H.Adjournment THE COMMUNITY AFFORDABLE HOUSING ADVISORY BOARD OF BOZEMAN, MONTANA CAHAB AGENDA Wednesday, November 17, 2021 For more information please contact David Fine, dfine@bozeman.net This board generally meets the second Wednesday of the month from 08:00 am to 10:00 am. Committee meetings are open to all members of the public. If you have a disability and require assistance, please contact our ADA coordinator, Mike Gray at 582-3232 (TDD 582-2301). 1 Memorandum REPORT TO:Community Affordable Housing Advisory Board FROM:Taylor Chambers - Community Development Technician III SUBJECT:Approval of Minutes from October 13th, 2021 MEETING DATE:November 17, 2021 AGENDA ITEM TYPE:Minutes RECOMMENDATION:I move to approve the meeting minutes from October 13th 2021 STRATEGIC PLAN:1.2 Community Engagement: Broaden and deepen engagement of the community in city government, innovating methods for inviting input from the community and stakeholders. BACKGROUND:None UNRESOLVED ISSUES:None ALTERNATIVES:1. Approve minutes with corrections. 2. do not approve meeting minutes FISCAL EFFECTS:None Attachments: 10-13-21 CAHAB Minutes DRAFT.pdf Report compiled on: November 12, 2021 2 Bozeman City Commission Meeting Minutes, 10-13-21 Page 1 of 4 THE COMMUNITY AFFORDABLE HOUSING ADVISORY BOARD MEETING OF BOZEMAN, MONTANA MINUTES Wednesday, October 13th, 2021 WebEx Meeting Information A) 00:03:15 Call meeting to order B) 00:03:22 Disclosures C) 00:03:33 Changes to the Agenda D) 00:05:10 Approval of Minutes D.1 Approval of Minutes from 08-11-21 and 09-08-21 081121 CAHAB Minutes DRAFT.pdf 09-08-21 CAHAB Minutes DRAFT.pdf 00:05:43 Motion D) Approval of Minutes Kevin Thane: Motion David Magistrelli: 2nd 00:05:51 Vote on the Motion to approve D) Approval of Minutes. The Motion carried 7 - 0 Approve: David Magistrelli Noel Seeburg Hannah Van Wetter Kevin Thane Kyla Tengdin Greg Stratton Jacy Conradt Disapprove: 3 Bozeman City Commission Meeting Minutes, 10-13-21 Page 2 of 4 None 09-08-21 CAHAB Minutes DRAFT.pdf 00:06:50 Motion D) Approval of Minutes Kevin Thane: Motion David Magistrelli: 2nd 00:06:51 Vote on the Motion to approve D) Approval of Minutes. The Motion carried 7 - 0 Approve: David Magistrelli Noel Seeburg Hannah Van Wetter Kevin Thane Kyla Tengdin Greg Stratton Jacy Conradt Disapprove: None E) 00:07:07 Public Comment F) Action Items F.1 00:09:27 CAHAB Recommendation of Clarion Audit 00:09:34 Staff Presentation Staff liaison David Fine opened the discussion for the Board to comment and create recommendations for the Clarion code audit. 00:11:45 Board Discussion Board members discussed the Clarion audit and proposed recommendations to make to Clarion. 00:39:21 Motion The CAHAB endorse the recommendation provided by Clarion with the amendments R- 1 lot sizes with a net density of 7 units per acre. Kevin Thane: Motion David Magistrelli: 2nd Board member Stratton commented in support of the motion. Chairman Seeburg commented in favor of the motion. 4 Bozeman City Commission Meeting Minutes, 10-13-21 Page 3 of 4 00:41:13 Vote on the Motion to approve The CAHAB endorse the recommendation provided by Clarion with the amendments R-1 lot sizes with a net density of 7 units per acre.. The Motion carried 7 - 0 Approve: David Magistrelli Noel Seeburg Hannah Van Wetter Kevin Thane Kyla Tengdin Greg Stratton Jacy Conradt Disapprove: None 00:44:41 Public Comment Opportunity F.2 00:46:17 Applications from Community Housing Fund Application Portal 00:46:37 Staff Presentation Staff liaison Fine gave an update to the Board regarding applications for Community Fund Applications, including informing the Board that the deadline for applications had been extended to the end of October. 00:48:23 Board Discussion Board members discussed the opportunity to review applications at the proceeding meeting. G) 00:56:48 FYI/Discussion Board members gave updates on happenings in their fields. 01:13:50 Motion adjourn David Magistrelli: Motion Jacy Conradt: 2nd 01:13:51 Vote on the Motion to amend adjourn. The Motion carried 7 - 0 Approve: David Magistrelli Noel Seeburg Hannah Van Wetter Kevin Thane Kyla Tengdin Greg Stratton Jacy Conradt 5 Bozeman City Commission Meeting Minutes, 10-13-21 Page 4 of 4 Disapprove: None H) 01:13:53 Adjournment For more information please contact David Fine, dfine@bozeman.net. This board generally meets the second Wednesday of the month from 08:00 am to 10:00 am. 6 Memorandum REPORT TO:Community Affordable Housing Advisory Board FROM:David Fine, Economic Development Program Manager SUBJECT:Request from Bozeman Co-Housing, LLC for investment of Community Housing Fund grant dollars to act as a perpetual subsidy of public funds for two homes priced between 80% and 90% of Area Median Income (AMI). MEETING DATE:November 17, 2021 AGENDA ITEM TYPE:Citizen Advisory Board/Commission RECOMMENDATION:Having reviewed and discussed the funding request from Bozeman Co- Housing, LCC, I move to recommend City Commission approval of an amount not to exceed $38,020 of public investment to offset a portion of the original purchase price and be retained in the value of the 2 permanently affordable homes in the Bozeman Co-Housing project. STRATEGIC PLAN:4.5 Housing and Transportation Choices: Vigorously encourage, through a wide variety of actions, the development of sustainable and lasting housing options for underserved individuals and families and improve mobility options that accommodate all travel modes. BACKGROUND:This funding request aligns with the CAHAB approved Community Housing Fund Philosophy (see Community Housing Fund Allocation Process and Priorities) as it will use the funds to create two housing units in Bozeman for households earning between 80% and 100% of AMI and provides a valuable return on the investment of these funds as the homes are permanently deed restricted. The two homes designated for this purpose are two bedroom, one bathroom units, with a designated sales price of $253,534 each. This price reflects an $119,010 subsidy for each unit. The Applicant is requesting a $19,010 per unit subsidy from the City with the remainder of the required subsidy being contributed by Bozeman Co-Housing, LLC and the developer. Using the Community Housing Fund Proposal Scoring Methodology, Staff’s score for the project was 46 out of 70 possible points. The Applicant is providing significant private subsidy for the affordable units in addition to their request for public funds. Due to the significant private subsidy for each of these units, a relatively modest investment of public funds allows for permanent affordability and an initial sales price that is affordable at 80% AMI. There is a larger public policy question about whether the best use of scarce public resources is to target affordable home ownership or affordable rentals. This project reflects a strong project on the home ownership side of the spectrum. 7 UNRESOLVED ISSUES:None at this time. ALTERNATIVES:At the suggestion of the Board. FISCAL EFFECTS:The Fiscal Year 2022 budget included $200,000 that can be allocated to support projects. Of those funds, $75,000 previously committed to Haven have already been spent. Attachments: Bozeman CoHousing App.docx Bozeman Cohousing cover letter.pdf Bozeman Cohousing Slides small.pdf Bozeman Cohousing Budget.pdf Bozeman Cohouing Letter of Support-Cadius.pdf Community Housing Fund Application Score Tally Sheet.docx Community Housing Fund Scoring Sheet.docx Staff score Bozeman CoHousing.pdf Report compiled on: November 12, 2021 8 From:webadmin@bozeman.net <webadmin@bozeman.net> Sent:Friday, October 29, 2021 12:21 PM To:sriggs@bozeman.net; Lacie Kloosterhof <LKloosterhof@BOZEMAN.NET> Subject:Community Housing Fund Funding Request Application Submission Entry A new entry to a form/survey has been submitted. Form Name:Community Housing Fund: Funding Request Application Date & Time:10/29/2021 12:20 PM Response #:7 Submitter ID:45259 IP address:153.90.19.137 Time to complete:5 min. , 24 sec. Survey Details Page 1 Community Housing Fund Scoring Sheet Community Housing Allocation Process 1. Organization Seeking Funding Organization Name Bozeman Cohousing Address 318 S. 9th Ave., Bozeman, Montana 59715 Contact Name Susanne Cowan Contact Phone Number Not answered Contact Email Address susanne.e.cowan@gmail.com 2. Project Information Project Name Bozeman Cohousing Location of Project 3120 Wagon Wheel Drive Project Description Bozeman Cohousing is an intentional community of 43 households located at 3120 Wagon Wheel Drive. Bozeman Cohousing has consented to create 2 deed restricted permanently affordable homes within our community. These will most likely be upstairs two-bedroom condos. We will work with HRDC to qualify buyers with demonstrated need. We will target families with approximately 80% of the average area median income (AMI). Project Timing to be completed by Summer 2023 Which Community Housing Action Plan Strategy/Action Item Permenently Affordable Deed Resticted Housing 9 Does This Project Address? # of Affordable Dwelling Units to be Generated/Renovated 2 Area Median Income % Targeted 80% Project Partners (if applicable) Cadius Partners 3. Indicate how this project ensures permanent or long term affordability [×] Deed Restriction Please Explain Bozeman Cohousing will create deed restrictions to ensure these home remain permanently affordable. These restrictions will include previsions such as: requiring buyers to use the home as their primary residence, limiting appreciation to 3% a year, limiting the amount of capital improvements, requiring the home to be resold to a qualified buyer based on AMI, and giving Bozeman Cohousing the first right of refusal to buy the home if mortgage default is imminent. Page 2 4. Project Funding (Please attach budget at the end of the application) Total Project Budget $21,734,978 for entire community 5. Primary Project Funding Sources 1.Bozeman Cohousing, LLC members $ Amount $200,000 2. Co-developer Cadius Partners $ Amount $200,000 3. Not answered $ Amount Not answered Amount Requested From Community Housing Fund $38,020 6. Which Project Elements Will Funds Be Used For? (attach line item budget if needed) 1. Subsidies for 2 Homes $ Amount $238,020 2. Not answered $ Amount Not answered 3. Not answered $ Amount Not answered 7. Type of Funding Requested (○) Grant 8. If you selected Grant, would you consider a Loan if Grant was not available? 10 (○) No 9. Would you accept 50% of your requested amount? (○) Yes 10. Would you accept 25% of your requested amount? (○) No 11. Could the Grant / Loan be split among multiple years? (○) Yes 12. When would the funds requested need to be received in order to optimize the benefit of the funds requested for the project? December 2022 13. Have you received community housing funding assistance in the past 5 years? (○) No Page 3 14. Additional Information What is the level of urgency behind the funding request? The sooner we have determined our total subsidies budget, the more likely we are to retain and maximize our affordable housing units. If Community Housing Funds are not allocated to this project, how does impact the project? We would need to raise the prices to meet 90% AMI, choose to subsidize a smaller studio unit, and/or reduce down to one subsidized unit. 15. Additional Documentation (i.e. Cover letter, budget, project description, letters of support, etc...) Bozeman Cohousing cover letter.pdf Bozeman Cohouing Letter of Support-Cadius.pdf Bozeman Cohousing Budget.pdf Bozeman Cohousing Slides small.pdf Thank you, City Of Bozeman This is an automated message generated by Granicus. Please do not reply directly to this email. 11 Bozeman Cohousing, LLC October 25, 2021 Community Affordable Housing Board 121 Rouse Ave., Bozeman MT 59715 To the members of the Community Affordable Housing Board (CAHAB), I am writing today on behalf of Bozeman Cohousing, LLC to apply for a Community Housing Fund Grant for our new cohousing community. We are asking for $38,020 to help subsidize the cost of two permanently affordable deed restricted condominium homes for households with incomes of approximately 80% of the Area Median Income (AMI). Bozeman Cohousing LLC is run by 40 investor families and future homeowners, many already living and working in the Gallatin Valley. We formed an intentional community with the aim of building sustainable homes that are affordable to residents in Bozeman. We are currently in the City’s review process to approve our final site plan for a new development of 43 homes at 3120 Wagon Wheel Drive. Each family will have their own condominium with a private kitchen. The homes range in size from a 576 sq. ft. studio to a 1,458 sq. ft. three-bedroom townhouse. Community members will also have access to a communal kitchen, shared laundry, community garden plots, and other shared amenities. Since our site design workshop in February 2020, we have been committed to being an example to the wider community in creating affordable housing that can strengthen our community through diversity and inclusion. We have carefully crafted our design and budget to ensure that all our homes are as affordable as possible. Our community will add diversity to south Bozeman, where there are few low-cost homes available. According the 2019 American Community Survey, Bozeman Cohousing is located in the census block in the city with the second highest home values. We will provide more affordable choices in this area by adding 41 “missing middle” housing units, and 2 permanently deed restricted homes. In order to fund these two permanently affordable homes, we have consented to $200,000 in internal subsidies. Half of the money comes from the community members through an increase in home prices. The other half comes from a commitment from our co-developer, Cadius Partners located in Bozeman. Cadius has agreed to lower their percentage of profit to help us meet our affordability goals. We have reserved two upstairs flats with two-bedrooms and one bathroom for the deed- restricted homes. These condos are integrated into buildings with market rate homes, located adjacent to our common house at the heart of the community. We chose this location to ensure that families who buy these affordable homes feel included as part of community life and activities. Living in these homes in a cohousing community will have added benefits for 12 Bozeman Cohousing, LLC homeowners, providing a support system for parents, children, singles, or aging residents who might lack extended family in the region. Cohousing helps to prevent the epidemic of loneliness and isolation which negatively impacts the mental health and well-being of many Americans. Residents will also benefit from the high environmental and acoustic performance of the homes which reduce monthly energy costs and ensure privacy. Overall, this will be a very high-quality housing option for low-income residents. Bozeman Cohousing aims to make these homes as affordable as possible for low-income families with incomes around 80% of AMI. In order to do so we would need to lower the cost of these homes from their current market price of $372,544 to $253,534, the 2021 recommended price for a two-bedroom home. This would require a minimum subsidy of $119,010 each, totaling $238,020 for both homes. We are requesting a grant of $38,020 from the Community Housing Fund to make up the difference of the $200,000 of subsidies we have already allotted in our budget. In order to ensure that these homes remain permanently affordable, we will use deed restrictions to limit appreciation and ensure the homes remain in ownership of low-income buyers. In the deed restrictions, we plan to require that buyers use this home as their primary residence, that capital improvements are limited, that appreciation is limited to 3% a year, that homes be sold to a buyer qualified by AMI, and that Bozeman Cohousing has first right of refusal in the case of a mortgage default. We will work with the HRDC to qualify the original buyer and future home buyers to a set AMI. We will also use a membership process to ensure that all buyers, including low income buyers, understand the community’s responsibilities and commitments, and that Bozeman Cohousing will be a good fit for their lifestyle. This proposal is based on our current house price estimates. If house prices increase during construction, or if we do not receive the full Community Housing Fund Grant we may need to revise the details into a contingency plan. This may include: raising prices on the affordable units to target 90% AMI rather than 80% AMI buyers; subsidizing a studio instead of one of the two-bedroom homes; reducing the number of subsidized units; and/or raising additional external grant funding from foundations. We have begun to approach foundations already, but have yet to receive any grants for our project. We are about to receive final city approvals and break ground. We are also in the process of requesting sub-contractor bids on the project. We expect by the end of December to have a final budget, relatively final home prices, and to have started construction. The project will take about 18 months to build with the first homes available after about 12 months. We expect the project to be complete and fully occupied during the Summer of 2023. In the meantime, we will work with the HRDC to set up a process for recruiting and qualifying potential buyers for the deed restricted units. 13 Bozeman Cohousing, LLC We request that you approve our grant application for $38,020 in this funding cycle so that we can move forward with the security of knowing we have enough subsidies to target homebuyers at 80% of AMI. While a partial grant may be of some use in lowering the cost of homes, it would not be enough to implement this exact proposal. We would still build affordable units, but they might be smaller, fewer, or for a higher income group as specified in our contingency plan. While receiving the funding quickly would be useful for meeting the equity requirements for our loan, we could possibly wait until Fall 2022 to receive the funds. The funds would be needed before December 2022 at which time homebuyers would need to begin to qualify for mortgages and close on their homes. We hope some flexibility in the timing of receiving the funds will help you to be able to approve our grant request. Bozeman Cohousing is committed to creating affordability in our community and welcome your support in helping us achieve that goal. We ask that you approve our grant request and help us create two new permanently affordable homes in south Bozeman. Sincerely, Susanne Cowan Affordable Housing Committee Bozeman Cohousing, LLC 318 S. 9th Ave., Bozeman, Montana 59715 susanne.e.cowan@gmail.com 714-595-2933 (mobile) 14 City of Bozeman, Community Housing Fund Application Bozeman Cohousing, LLC 318 S. 9th Ave., Bozeman, Montana 59715 Contact: Susanne Cowan susanne.e.cowan@gmail.com 714-595-2933 October 25, 2021 15 Bozeman Cohousing Bozeman Cohousing is an intentional community of 43 households located at 3120 Wagon Wheel Drive. We have pre- sold 40 of these homes to families who are now equal members of the LLC. As investors and future home-owners, we have collaborated in the design, finance, and development of this project from the ground up using consensus-based workshops and meetings. 16 Bozeman Cohousing Each household will own their own condominium home with private living space, kitchen, and outdoor space. We will share a garden and a Common House with a kitchen dining area, and laundry facilities. We will cook and grow food together, and make decisions through equitable and shared governance. 17 Affordable Housing in South Bozeman Our community will add diversity to South Bozeman, where there are few low-cost homes available. According the 2019 American Community Survey, Bozeman Cohousing is located in the census block in the city with the second highest home values. We will provide more affordable choices in this area by adding 41 work force housing units, and 2 permanently deed restricted homes. Bozeman Cohousing 18 Affordable Housing Principles From our first Site Planning workshop in February 2020, Bozeman Cohousing members have aimed to be “an example to the wider community” on issues like affordability. Our affordable housing plan aims to: Demonstrate leadership and action in response to escalating home prices in Bozeman. Strengthen our community through inclusivity and economic diversity 19 Affordable Housing Plan Bozeman Cohousing agreed by consensus to create 2 deed restricted permanently affordable homes within our community. Currently we plan to subsidize 2 upstairs two-bedroom condos shown on this plan in yellow as units #37 and #38. 20 Affordable Homes The two subsidized homes will be integrated into the community and will appear like all the other homes. Shown in the center, they are the second-floor condos with upstairs deck for outdoors space.21 Benefits of Cohousing Bozeman Cohousing will offer a high-quality housing option with many added benefits for low-income residents. Helps to prevent the epidemic of loneliness which negatively impacts the mental health of many Americans. High environmental and acoustic performance reduces monthly energy costs and ensures privacy. Provides a support system for parents, children, singles, or aging residents. 22 Qualifying Buyers We will work with HRDC to qualify buyers with demonstrated need. We use a membership process to ensure that the the buyer understands the community and its commitments. We will target families with approximately 80% of the average area median income (AMI). 23 Affordable Housing Pricing The market price of the two-bedroom condos are currently approximately: $372,544 The 2021 recommended price for a two-bedroom home for families making 80% of AMI is: -$253,534 In order to reduce home prices to 80% of AMI, we will need to subsidize each home by about: $119,010 24 Affordable Housing Subsidies The total subsidies needed for both homes will be about $238,020 Currently we have designated internal subsidies from Bozeman Cohousing, LLC $100,000 and the co-developer Cadius Partners of Bozeman -$100,000 We are requesting additional funds from the city to cover the remainder of the necessary subsidies $ 38,020 25 Deed Restrictions Bozeman Cohousing will create deed restrictions to ensure these home remain permanently affordable in perpetuity. These restrictions: Limit appreciation to 3% a year Require buyers to use the home as their primary residence Limit amount of capital improvements Give Bozeman Cohousing first right of refusal to buy home if mortgage default is imminent Require home to be resold to a qualified buyer based on AMI 26 Contingency Plan If Bozeman Cohousing does not receive the Community Housing Fund Grant, if prices increase during construction, or there are other economic changes to the project, we will need to alter our affordable housing plan. We may do this by: Raising prices to target 90% AMI rather than 80% AMI buyers Subsidizing a studio instead of one of the two-bedroom homes Reducing the number of subsidized units Raising additional external funding for the subsidies from foundations 27 Projected Timeline Final Project Bids, Price Locks, and Ground Breaking First Homes available for Sale and Move In Recruitment and Qualification of Buyers for Deed Restricted Units Project Complete All homes available for Sale and Move In Dec 2021 Dec 2022/Jan 2023 Summer 20232022 28 Bozeman Coho Dev Budget for AH application.xlsx BOZEMAN COHOUSING 29-Sep-21 BOZEMAN, MT 1:18 PM P & L SUMMARY PRELIMINARY PROFORMA BUDGET This budget is preliminary and has been prepared for discussion purposes only. Costs are estimates and may not be accurate. This budget will be revised as the design is finalized and more accurate costs estimates are obtained. Prepared:KMc: K-O 1/6/20 Updated:KMc:9/22/91 ACTUAL ORIGINAL CURRENT %AS OF REVENUE:NOTES BUDGET REVISIONS BUDGET OF SALES 08/31/21 RESIDENTIAL SALES Total Units=43 18,000,000$ 2,812,680$ 20,812,680$ 95.8%- LOCATION PREMIUMS 9 50,000 80,000$ 130,000$ 0.6%- OPTIONS & UPGRADES 40%5 140,000 -$ 140,000$ 0.6%- GARAGES 20 30,000$ - 600,000 600,000$ 2.8%- ATT GARAGES 2 30,000$ 8 - 60,000 60,000$ 0.3%- CARPORTS 7 20,000$ 10 - 140,000 140,000$ 0.6%- 6 - - 0.0%- CREDIT FOR AFFORDABLE HOUSING 7 - (200,000) (200,000)$ -0.9%- RENTAL INCOME 3 - 42,098 42,098$ 0.2%42,098 MISC INCOME 4 - 10,200 10,200$ 0.0%10,200 TOTAL SALES REVENUE 18,190,000$ 3,544,978 21,734,978$ 100.0%52,298$ COSTS:Budgeted Expenses Amount 01 ADMIN., LEGAL, & MISC.124,000 8,195 132,195 0.6%40,917 ADMIN., LEGAL, & MISC.132,195$ 02 PERMITS & FEES 371,580 131,400 502,980 2.3%66,590 PERMITS & FEES 502,980$ 03 DESIGN & ENGINEERING 579,125 114,865 693,990 3.2%489,645 DESIGN & ENGINEERING 693,990$ 04 COMMON FURNISHINGS Group Allowance 20,000 0 20,000 0.1%- COMMON FURNISHINGS 20,000$ 05 LAND ACQUISITION 1,902,050 (14,389)1,887,661 8.7%1,887,661 LAND ACQUISITION 1,887,661$ 06 MARKETING Group Allowance 605,000 (193,306)411,694 1.9%24,660 MARKETING 411,694$ 07 PROJECT MANAGEMENT 385,000 (30,000)355,000 1.6%32,627 PROJECT MANAGEMENT 355,000$ 08 FINANCING 881,576 133,004 1,014,580 4.7%- FINANCING 1,014,580$ 09 COSTS INCURRED AT CLOSING 1 0 0 0 0.0%CONSTRUCTION 14,035,242$ 10 CONSTRUCTION 10,497,100 3,538,142 14,035,242 64.6%- CONTINGENCY 500,000$ 0 - 0.0% 12 CONTINGENCY 500,000 0 500,000 2.3% 0.0%- TOTAL DEVELOPMENT COSTS 15,865,431 3,687,910 19,553,341 90.0%2,542,100 PROJECTED DISTRIBUTABLE CASH 2 2,324,569$ (142,932)$ 2,181,637$ 10.0% 21,734,978$ DISTRIBUTABLE CASH TO BE ALLOCATED AS FOLLOWS: DEVELOPER FEE 50.0%1,090,819$ 50.0% COMMUNITY-TO THE HOA for additional capital improvements 25.0%85,409$ 3.9% Post-move-in solar elements 5 460,000$ 21.1% INVESTORS & PARTICIPATING NOTEHOLDERS 25.0%545,409$ 25.0% NOTES: 1 All closing costs at unit closings to be paid by Buyers 2 Distributable Cash may vary depending on requirements of the construction lender, amount of investment, and final actual costs. 3 Rental income, being a Revenue stream, was moved to this sheet on 10/12/2020. Expected income increased by $5K on 4/1/21. 4 Added 10/12/2020. Includes Explorer and Membership fees received, payments for Getting It Built workshop 5 Moved $460K of total solar budget to post-construction period, to be paid for with the Community's share of Distributable Cash Prepared by Kathryn McCamant, CoHousing Solutions, Inc © 2016 CoHousing Solutions, Inc. $132,195 $502,980 $693,990 $20,000 $1,887,661 $411,694 $355,000 $1,014,580 $14,035,242 $500,000 Budgeted Expenses ADMIN., LEGAL, & MISC. PERMITS & FEES DESIGN & ENGINEERING COMMON FURNISHINGS LAND ACQUISITION MARKETING PROJECT MANAGEMENT FINANCING CONSTRUCTION 29 23 Apex Drive, Bozeman, Montana 59718 27 October 2021 Community Affordable Housing Advisory Board of Bozeman, Montana ATTN: David Fine 121 N. Rouse Ave Bozeman, MT 59715 Dear CAHAB, Cadius Partners and CP Build are pleased to be partnering with Bozeman CoHo, LLC to create the Bozeman Cohousing Community which is bringing a new model of desperately needed middle-class housing for families that live and work in Gallatin Valley. I was particularly impressed when the community asked me to match them in donating $100,000 ($200,000 total) to subsidize two, deed-restricted homes, to assist in reaching a greater level of affordability for the buyers of those units. I have also been impressed that the community has stuck with this pledge despite the rising cost of construction and housing in general in the valley showing a true commitment to their neighbors in the challenging building climate. The Bozeman Cohousing community members are individually subsidizing on average $2,500 per household to make these homes more affordable. While it is not a lot of homes, it is rare to find market-rate homebuyers voluntarily contributing their own funds to help with affordability for others in their community, and I am proud to join them in this effort. Sincerely, Gregory Allen President 30 Minimum Score required for consideration Criteria to be Scored for all proposals Scale Points Awarded Alignment with Community Housing Action Plan:1-5 Ability of this project to address a community need:1-5 Target Income:1-5 Opportunity Cost:1-5 Level of partnership with other organizations:1-5 Alternate funding sources have been secured / solicited:1-5 Funds Availability:1-5 Willingness to be flexible in grant / loan request:1-5 Thoroughness of the application / budget:1-5 Viability of the proposed project:1-5 Total Proposal Base Points: ( 30 or more required for Proposal Consideration) Criteria to be scored for proposals resulting in dwelling units Scope of project in terms of # of affordable housing units built / preserved:1-5 Project’s generation of long-term or permanently affordable housing:1-5 Requested investment of Community Housing funds per unit:1-5 Ongoing project affordability:1-5 Total Dwelling Unit Points: Grand Total: (42 or more required for dwelling unit Proposal Consideration) CAHAB Project Proposal Score Sheet v3.xlsx page 1 of 131 Community Housing Fund Scoring Sheet Page 1 Community Housing Fund Scoring Sheet For Use By CAHAB / Community Development Date:________________________________________________________________________________ Project Name:_________________________________________________________________________ Amount of Funding Requested: _________________________________________________________ Rank the project based on the following criteria: Criteria Score Alignment with Community Housing Action Plan: (1 to 5)_________ (5=Well aligned, 3= Neutral, 1= Not Aligned) Ability of this project to address a community need: (1 to 5)_________ (5 = addresses a pressing community need, 4 = addresses a significant community need, 3 = addresses a current community need, 2 = addresses a low priority community need, 1 = Does not address a community need) Target Income of those benefiting from proposal: (1 to 5) _______ (Score on the basis that below 60% of AMI = 5 points and each 10% increase of AMI results in a 1 point decrease in the number of points allotted.) Opportunity Cost: (1 to 5)______ ( Consider urgency of need: 1)will this opportunity go away or be severely diminished if funding is not provided at this time; 2) Is the urgency of this request based on an opportunity that recently became available or is the urgency due to inefficient planning; 3) Why is this request being presented now – would it be better if executed at a different time) Level of partnership with other organizations: (1 to 5)_________ (5 = Partners Participating, 3 = Partners contacted but not Participating or Proposal doesn’t lend itself to including partners, 1 = Possible Partners not contacted) Alternate funding sources have been secured / solicited: (1 to 5)_________ (5 = Other Funders Participating, 3 = Other Funders contacted but not Participating or Proposal doesn’t lend itself to including other Funders, 1 = Other Possible Funders not contacted) Funds Availability: (1 to 5)_______ 32 Community Housing Fund Scoring Sheet Page 2 (Would providing funds for this project limit the ability to provide funding for future projects that may be a better investment of Community Housing Funds? 5 = No, 3 = to a moderate degree, 1 = Yes) Willingness to be flexible in grant / loan request: (1 to 5)_________ (5 = Very flexible, 3 = Neutral, 1 = Not flexible – based on answers to Type of Funding question) Thoroughness of the application / budget: (1 to 5)_________ (5= Detailed and understandable, 3 = Neutral, 1 = Lacking detail or hard to decipher) Viability of the proposed project: (1 to 5)_________ (Score based on the level of perceived risk – 5=No risk, 4= Low Risk, 3= Average Risk, 2 Medium Risk, 1 = High Risk) Scope of project in terms of # of community housing units built / preserved: (1 to 5)_________ (Score based on 5 units or fewer = 1 points. Each increment of 5 additional units generates 1 additional point up to the maximum of 5 points) Project’s generation of long-term or permanently affordable housing: (1 to 5)_________ (Score on a scale of 5 year affordability = 1 point, each additional 5 year increment of affordability generates another point. Permanent affordability = 5 points) Requested investment of Community Housing funds per unit: (1 to 5)_________ (Rate on a declining scale of $1,000 per unit. $1,000 per unit or less = 5 points, $2,000 per unit = 4 points, continuing to $6,000 or more = 0 points) Ongoing project affordability: (1 to 5)_________ (Provide points for Climate sensitive design, low maintenance, low or no HOA fees, low or no Land Trust fees, etc.) Total Points: _________ A minimum of 30 points is required for a proposal without dwelling units to be considered for funding. A total of 42 points is required for a proposal that includes dwelling units to be considered. 33 34 35