Item 36 - Fiscal Year 21-22 Request for Proposals for Affordable Housing

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City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 26 VI. PROJECT-BASED VOUCHERS Source of Funds The project-based voucher (PBV) program allows Public Housing Authorities (PHAs) that already administer a tenant-based voucher program under an annual contributions contract (ACC) with HUD to take up to 20 percent of its voucher program budget authority and attach the funding to specific units rather than using it for tenant- based assistance [24 CFR 983.6]. Eligible Borrowers Eligible borrowers are nonprofit Housing Development Corporations (HDC’s) duly organized to promote and undertake community development activities on a not-for-profit basis, or for-profit housing developers or development corporations, with proven capacities to develop, own, and operate affordable housing. Limited partnerships whose general partners are otherwise eligible under the above are also eligible to borrow Program funds. Eligible Projects The City and Authority is soliciting proposals for permanent supportive housing from owners and/or affordable housing developers together with at least one service provider who are experienced, very knowledgeable of HUD programs and its requirements, and financially capable of managing and maintaining high-quality permanent supportive housing people experiencing homelessness. Proposals may also be for projects that do not include permanent supportive housing. The City will entertain proposals for New Construction of Multifamily Rental Units, Acquisition and Rehabilitation of Multifamily Rental Units, and Existing Multifamily Rental Units only. Permanent Supportive Housing is defined in this RFP as permanent housing with comprehensive, wrap-around supportive services for people who are experiencing homelessness. Eligible projects include acquisition, rehabilitation, or new construction of rental housing projects which: 1) The Public Housing Authority (PHA) may attach project-based voucher (PBV) assistance for units in existing housing or for newly constructed or rehabilitated housing developed under and in accordance with an Agreement. a. Existing housing—A housing unit is considered an existing unit for purposes of the PBV program, if at the time of notice of PHA selection the units substantially comply with HQS. i. Units for which rehabilitation or new construction began after owner's proposal submission but prior to execution of the Agreement to Enter into a Housing Assistance Payments Contract do not subsequently qualify as existing housing. ii. Units that were newly constructed or rehabilitated in violation of program requirements also do not qualify as existing housing. Applications for the project-based vouchers must: (1) be for units located in the City of Santa Ana; (2) request a minimum of eight (8) PBVs; and (3) propose to only serve households with individuals or families who are homeless as certified through referrals from the Orange County Continuum of Care Coordinated Entry System. Proposals may also be for projects that do not serve people experiencing homelessness. Proposers must be owners of existing multifamily rental units or developers of affordable housing who will enter into an agreement for supportive services with a qualified service provider (unless the service provider is also the owner). In addition, the proposed project must have an on-site property manager and provide case management/resident services on-site. SAHA will evaluate the quality and location of the prospective housing as well as the experience of the service provider and proposed services. Proposals from owners/developers who cannot demonstrate such an agreement for supportive services will not be reviewed. EXHIBIT 1