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HomeMy WebLinkAbout10-11-12 draft, Requests for City of Bozeman SupportRequests for City of Bozeman Support Low Income Housing Tax Credit Applications Background: The Low Income Housing Tax Credit (LIHTC) program has been identified by the City as a key tool for encouraging the development of rental housing affordable to lower-income households. The City’s Affordable Housing plan has the stated goal to, over a five year period, create 200 multifamily units for households earning between 30 and 60% of the area median income using LIHTC and other subsidies. In order to access this funding from the Montana Board of Housing, developers are required to submit a letter of support from their local jurisdiction. In support of the City of Bozeman’s Affordable Housing Plan, the City has outlined the process below to assist developers seeking City support for Low Income Housing Tax Credit (LIHTC) Applications. City support can be in the form of a letter of support, or, for qualified projects, financial assistance in addition to a support letter. Deadline for requests: Developers of LIHTC properties must submit their request for support from the City along with the required information 45 days before applications are due to the Montana Board of Housing (applications are typically due to MBOH by the third Friday of January, as outlined in the Qualified Allocation Plan). Criteria for Support: Full criteria for City support of Affordable Housing Activities can be found in Appendix B of the City of Bozeman Affordable Housing Action Plan for 2012-2016: http://www.bozeman.net/Smarty/files/51/513668ad-f9e9-4ff7-a5ab-21953d79856f.pdf Appendix B outlines maximum affordable rents, threshold requirements for support, and evaluation criteria that will be reviewed in determining the City’s support. Financial Support: As outlined in Appendix B, LIHTC projects serving extremely low-income renters and special needs clients may request financial support. Financial support is based upon funding availability and meeting eligibility criteria in Appendix B. Projects anticipating a need for financial support should contact the City as early as possible to ascertain the availability of funding. Ranking Process: Requests will be evaluated to determine if they meet the threshold requirements outlined in Appendix B; those meeting threshold requirements will be scored by city staff according to the following criteria: Review of market study – 20 points To what extent do the market study and other available data demonstrate a need for the proposed project? Review of financial data – 20 points Sources, uses and budget forecasts will be evaluated for reasonableness and long-term project sustainability. Capacity of development team – 20 points Do the team and key staff have experience with this type of project? How has the applicant performed in the past? Has the developer made previous requests to the City or State Department of Commerce to restructure commitments made on similar projects? Affordability of rents – 20 points Rent schedules will be evaluated for the populations to be served and the rents proposed to be charged by rent level. Inclusion of units for households earning less than 30% AMI – up to 20 points The City has an interest in promoting the development of units for households earning less than 30% of the area median income. At the same, a balanced approach dictates that developments be comprised of a mix of income levels and that very low income renters are not overly concentrated in one development. The City will reward 5 points per unit (for up to 4 units) directed to households earning less than 30% AMI. Applications and the staff report will be forwarded to the Community Affordable Housing Advisory Board (CAHAB). The CAHAB will forward the staff report and a CAHAB recommendation to the City Commission, which shall have the final authority to determine which project(s) will receive letters of support. The City Commission may elect to support more than one proposed project, and/or rank the projects they are supporting. City of Bozeman Low Income Housing Tax Credit Request for Support Project Name: Developer(s): Non-profit partner (if applicable): Project Address: Number of Buildings: Number of Units: Amount of Credits being requested: Affordability Period: Proposed Unit Mix: # baths # at 30% AMI or less # at 40% AMI or less # at 50% AMI or less # at 60% AMI or less  Studio       1BR       2BR       3BR       TOTAL at rent level 0 0 0 0         TOTAL # of Units 0      Proposed Rents: 30% AMI or less 40% AMI or less 50% AMI or less 60% AMI or less  Studio      1BR      2BR      3BR       Please provide responses to the following questions as an attachment to this form. Provide a brief description of the proposed project. Include information regarding project location, number of units, type of units, development/unit amenities and any other information you would like the city to consider. Describe how the proposed project meets or exceeds the Green Building standards outlined in Appendix C of the City of Bozeman Affordable Housing Action Plan. Explain how the proposed project is in support of the City of Bozeman’s Affordable Housing plan and serves a target income group identified by the plan. How will your firm ensure that the long-term management of the project will 1) provide adequate funding for project sustainability, and 2) be responsive to the needs of low-income residents? Attachments (for all support requests): Narrative responses Site plan For each unit type: proposed rent, # of bedrooms, # of bathrooms, rent level (AMI targets) Market Study Project financial data – sources and uses; 10 year operating budget; if supportive services are identified as crucial to the project, the operating budget must include forecasted revenue and expenditures for these services List of development team, including relevant experience in developing/owning similar projects. Please attach resumes for key staff and firm principals. If the project is requesting financial assistance, please answer the following: Amount of financial assistance requested: Number of units for which assistance is requested: Please list the other subsidies the project has applied for, the amount requested from those sources, if the funds have been awarded, or the anticipated award date.