19D - RFP - AFFORDABLE RENTAL HOUSING

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For acquisition/rehabilitation projects the City will require that the developer hire a professional relocation firm to develop and implement a relocation plan. The selected firm must be acceptable to the City. • Unless it will be rent and income restricted, HOME funds cannot be used to pay for the development of a resident manager's unit. Under the newly revised HOME Program final rule, the City may not enter into a written agreement that commits HOME funds until all other required funding has been secured by means of a firm commitment, a budget and production schedule has been established, and underwriting completed. In order to facilitate this process, the City will require the selected developer to provide evidence of firm commitment for any additional funds required by the project within 30 days of their selection by staff. If the selected developer cannot provide the financing commitments, their proposal will be denied. The City must commit approximately half of its available HOME funds by July 30, 2014. As a consequence it is imperative that proposed projects be ready to move forward and additional required funding be readily available. Proposed development schedules must reflect this deadline. Under the newly revised HOME Program final rule, nonprofits wishing to be certified as CHDOs must have paid staff whose experience qualifies them to undertake CHDO activities. To act as a "developer," a CHDO must be in sole charge of all aspects of the development process, including design, financing and construction. CHDO rental projects "developed" by a CHDO must be owned by the CHDO. Two other CHDO roles and their requirements ("owner' and "sponsor") are described in Section 92.300 of the revised rule which is available on HUD's website. Nonprofits seeking HOME funding as CHDOs must identify which of these three roles they will play, and how they meet HUD's requirements. The newly revised HOME Program final rule includes several mandated progress-related deadlines that will be incorporated into the developer's loan agreement, and that must be incorporated into the project's proposed timeline: o Construction must be underway within a year of the commitment of HOME funds o HOME assisted rental units must be occupied by income-eligible tenants within 18 months of project completion. o HOME projects must be completed within four years of the commitment of HOME funds II. DEVELOPER REQUIREMENTS AND RESPONSIBILITIES City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development 10-147