19D - RFP - AFFORDABLE RENTAL HOUSING

Home Browse Search

utility allowances be calculated for each project, and recommends using the model found at the following location: http://hudttser.org/portal/resources/utilmodel.html. D. LOAN TERMS City assistance will be offered in the form of a long term loan secured by a promissory note and a deed of trust recorded against the property. If necessary, this loan may be subordinated to loans from other lenders. The loan will carry a 3 percent interest rate payable through residual receipts over a period of thirty (30) years. At the close of each fiscal year and as part of a required annual audit, the developer will calculate the amount of residual receipts, and make an annual payment to the City in an amount equal to 50 percent of the residual receipts. E. DISCLOSURES • HUD has recently adopted significant changes to the rules governing the HOME Program. The full implications of these changes are not yet clear. The new rule can be accessed at: http://Portal.hud.gov/hudoortal/HUD?src=/program offices/comm plan ning/affordablehousi ng/programs/home/ • All documents submitted to the City in response to the requirements of this RFP are subject to public records requests. This includes Financial Statements, pro formas and other information submitted in response to the new HUD requirement that the City review and evaluate the reasonableness of the return on the developer's investment in the project. The City cannot guarantee that these records will be kept confidential. • The City will require developers to enforce the federal occupancy standard of two persons per bedroom plus one. • The City utilizes rent and income tables developed by HUD, and for 30 percent of median rents, tables developed by the California Tax Credit Allocation Committee. Allowable rents and incomes may remain unchanged or may go down from one year to the next. Attainable rents may be significantly less than allowable rents. The City anticipates that HUD may release new rent and income tables for the HOME Program at some time during the next several months. Both may be lower than the current tables. The City utilizes an Information Bulletin released annually by HUD to determine the maximum per unit HOME subsidy limits. The last such Bulletin was released May 31, 2012 with an effective date of January 1, 2012. When released, the new bulletin may increase or decrease the HOME subsidy limits applicable to this RFP. • Projects with more than 11 (11) HOME Assisted units are subject to Davis Bacon wage requirements. HUD regulations prohibit the use of federal funds to pay relocation costs for tenants without a legal right to reside in the United States. State law requires that they be paid for those costs. Consequently the City will require that they be paid out of a nonfederal funding source. City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development 0 1 ra