19D - AFFORDABLE HOUSING RFP - Laserfiche WebLink

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Eligible Uses and Activities HOME funds may only be used to finance new construction or acquisition and/or rehabilitation of rental housing which is affordable to very low and low-income households as defined by 24 CFR 92.2. Fifteen percent (15%) of the annual HOME fund allocation shall be set aside for certified Community Housing Development Organizations (CHDO's). New construction costs eligible for HOME funding shall be as specified in 24 CFR Part 92, including: 1) site acquisition; 2) site preparation costs (grading, filling, etc.); 3) financing costs as described in 24 CFR 92.206; 4) architectural, engineering, and other related soft costs; 5) the cost of extending or upgrading utilities to the site to support the proposed project; 6) construction costs; 7) relocation costs; and, ` 8) affirmative marketing and audit costs related to HOME p?ogram requirements. Rehabilitation costs eligible for HOME funding include: 1) project acquisition with or without rehabilitation; 2) financing costs, as described in 24 CFR 92.206; 3) architectural, engineering, or other design costs;. �.• 4) utility upgrade or extension costs; ` 5) costs associated with demolition'(where necessary)'only if rehabilitation is commenced within 12 months of demolition; ` 6) construction costs; ` 7) project audit costs; and, 8) affirmative marketing costs. Ineligible Uses and Activities The following costs are not eligible for HOME funding:, 1) project reserve accounts for replacement or operating reserves, and operating subsidies; 2) payment.of-impact fees; 3) land banking;._ ' � II - 4) emergency repair or weatherization programs; 5) commercial properties; 6) temporary shelters; or 7) project -based rental assistance. Affordability Requirements HUD provides the followingmaxim um, HOME rent limits. The maximum HOME rents are the lesser of: 1) The fair market rent for existing housing for comparable units in the area as established by HUD; or 2) A rent that does not exceea-30 percent of the adjusted income of a family whose annual income equals 65 percent of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. The HOME rent limits provided by HUD will include average occupancy per unit and adjusted income assumptions. In rental projects with five or more HOME -assisted rental units, twenty (20) percent of the HOME -assisted units must be occupied by very low-income families and meet one of following rent requirements: 1) The rent does not exceed 30 percent of the annual income of a family whose income equals 50 percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families. HUD provides the HOME rent limits which include average occupancy per unit and adjusted City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 18 19D-22