19F - RFQ COMMUNITY HOUSING - Laserfiche WebLink

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In order for HOME funds to be committed, all other financing must be place. HOME Program expenditures are limited to an amount equal to the maximum subsidy limit established by HUD for units based on bedroom size times the number of such units. The maximum subsidy limits are as follows: k of Bedrooms HOME Maximum Subsidy 0 $128,000 1 $148,000 2 $180,000 3 $235,000 4+ $255,000 Only HOME assisted units count toward the calculation of the HOME Program funds that may be invested in a project. HOME assisted units are deed restricted to rents and incomes eligible under the HOME Program. A. TERM OF AFFORDABILITY AND MAXIMUM ALLOWABLE RENTS The selected developer shall enter into a Loan Agreement with the City of Santa Ana. This Agreement and other attendant documents shall provide for repayment of the loan. They shall also impose affordability covenants of no less than fifteen (15) years for acquisition /rehabilitation projects for the HOME affordability period, no less than twenty (20 years) for new construction projects, or until the City loan is repaid whichever is longer. In addition, the City will also impose a general fifty -five (55) year affordability covenant on the project. HOME funded units must, at a minimum be affordable to very -low and low- income households. Allowable rents will be based on the HOME rents published by HUD. Allowable rents must be reduced by a utility allowance for tenant paid utilities. HUD now requires that utility allowances be calculated for each project, and recommends using the model found at the following location: http://huduser.orciloortailresourceslutilm.odel.html B. LOAN TERMS i. Rental Units 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 fifty -five (55) 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. C. DISCLOSURES • HUD has recently adopted significant changes to the rules governing the HOME Program. The new rule can be accessed at: https://www. info /programs /home /home - final -rule/ All documents submitted to the City in response to the requirements of this RFQ are subject to public records requests. This includes Financial Statements 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. City of Santa Ana Community Development Agency Request for Qualifications for Community Housing Development Organizations (CHDO) Page 11 19F -14