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HOME RHD Application, Compliance and Monitoring
HOME RHD Applications
HOME RHD Funding
• Process• Amount• Timetable• Threshold
criteria• Scoring criteria• Getting started
HOME RHD Applications
HOME RHD has funding for low-income rental housing in Wisconsin!
Per project
HUD State of Wisconsin Developers/CHDOs
$ $ $
HOME RHD Applications
Funding amount depends on number of factors, such as:• Number of HOME units• Number bedrooms/unit• CMI setaside• CHDO/non-CHDO status of
applicant
HOME RHD Applications
• Racine• Dane County• Green Bay• Eau Claire • Rock County
Consortium• Kenosha• La Crosse• Madison• Milwaukee• Milwaukee County
Consortium• Home Consortium
(Waukesha, Washington, Jefferson, Ozaukee counties)
WI Division of Housing HOME RHD
funds all areas of
Wisconsin not covered
by PJs:
HOME RHD Applications
3 funding rounds: 2 competitive, 1 first-come, first-serve
• June round: Open to all for- and non-profit, CHDO and HA’s applicants
• October 15th round: For CHDO’s, non-profit developers and supportive housing projects
• Rolling round: For any small, rural project (< 20 units), or supportive housing project (of any size) Funding will be awarded as long as funds last to projects that meet threshold and score at least 30 points
HOME RHD Applications
Threshold items
• U.S. Congress and HUD enacted a series of measures* so that HOME funds only go into projects that have undergone underwriting and due diligence to assure financial sustainability over the long-term.
*2012 Appropriations bill and HOME Final Rule 7/2013
HOME RHD Applications
• Long term financial viability as demonstrated by s/u, 15 year proforma with minimum of 1.05 DCR, income/expense spreadsheet and development budget
• CHDOs must have valid CHDO certification
• No debarment of development team entities
• Demonstration of market demand (market study)
• Demonstration of housing need
• WI DFI “good standing”
• Readiness to proceed: zoning, site control, financing commitments/LOIs
• (1) 30% CMI HOME unit and 20% of HOME units at 50% CMI (balance at 60%)
Threshold items
HOME RHD Applications
Scoring items: 100 possible points
Energy efficiency and sustainable features: maximum 10 points
Preservation of any subsidized property, including at least
$20k/HOME unit of rehab: 20 points> 50% visitable HOME units:
10 points
Number of 30% HOME units OR Number of HOME
units for homeless populations with services OR Number of
HOME units for supportive housing/section 811 units (non-homeless):
maximum 40 points
Green building
standards
Energy star appliances
Resource conservation
HOME $/HOME unit: maximum 20 points
HOME RHD Applications
We can also provide access to our Applied Population Lab housing software: WHIM WHIM helps you assess the need for specific types of housing in particular areas of Wisconsin
We can help walk you through the application process: review your financial projections, make suggestions, etc.
Take a look at the HOME RHD Guide, browse through it, then call us. We enjoy talking about developing or acq/rehabbing rental housing – it’s our passion.
We want new developers to explore HOME funding!
HOME RHD Applications
UW-Madison Applied Population Labmapping and analysis toolWHIM
Contact Wisconsin DOH for software access
• Unemployment• Area housing age• Income• Poverty• Rental and owner-occupied housing costs
WHIM Mapping a variable: Counties
WHIM Mapping a variable: Census tracts
WHIM Mapping other variables
WHIM Mapping variables: Zooming in
WHIM Mapping variables: Zooming in
WHIM Mapping variables: Zooming in
WHIM Mapping variables: Targeted % of CMI
WHIM Mapping variables: Targeted % of CMI
WHIM Mapping variables: Shelters
WHIM Mapping variables: Query tool
WHIM Mapping variables: Query tool
WHIM Mapping variables: Query tool
WHIM Downloads
HOME RHD COMPLIANCE
HOME RHD COMPLIANCEProject Set-Up,
Payment Request, Completion
Reports: Used during the construction/rehab
phase
Inservice Report: due April 21st
each year
RHD Data Compliance
Report: due December 21st
each year
Regularly check the DOH website to ensure you are using the most current forms!
Where to find HOME forms: www.Housing.wi.gov
Project Set-Up
Payment Requests
Completion Reports
HOME RHD COMPLIANCE DURING CONSTRUCTION/REHAB
• Set-up is used to identify key aspects of the project such as total anticipated costs and sources of funds, this is completed prior to the first payment request.
• Payment requests must be accompanied by back-up documentation justifying the expenses. The number of payment requests will be identified in your contract.
• Completion report is done when the HOME units are fully leased and you may draw your remaining 5%. This reviews final sources of funds and provides us with tenant information.
HOME RHD COMPLIANCE
• Allows us to monitor the health of your project
• What is required:• An operating budget for the current year and
your projected budget for the upcoming year
• Your audited/reviewed financials for the project, or your entity if the project does not have independent financials
• Computation of the Debt Coverage Ratio (DCR)
• Certification that you carry insurance for the project that names DOH as the mortgagee, or an “additional interest” if the funds were provided as a grant or the mortgage has been satisfied
Inservice Report
Due April 21st
HOME RHD COMPLIANCE
•Ensures HOME units compliant with HUD rent and income limits•Covers period of October 1 – September 31•Lists all tenants who resided in HOME units in this time period.
•Information collected:•Designation of the HOME unit (30% CMI, 50% CMI, 60% CMI)•Date of move-in•Rent: current and move-in•Utility allowance if utilities paid by tenant: current and move-in•Rent subsidy amounts and sources (if applicable):• current and move-in•Tenant income: current and move-in•HOME unit rent, income limits: current and move-in
HOME RHD Data
Compliance Report
Due December 21st
We are here to trouble shoot and provide solutions
HOME RHD COMPLIANCE
Electronic form includes helpful notes and makes calculations easier
Compares tenant information with HUD limits
• Rent limits are based on the county, number of bedrooms and the initial designation of the HOME unit (30%, 50%, 60% or SRO)
• Income limits are based on the county, household size, and initial designation of the HOME unit (30%, 50% or 60%)
Call RHD staff if you are having trouble completing the form
Unit (Apt.) #
60%; 50%; 30%; SRO
No. of Bedrooms
Util-incl? Yes/ No
Tenant Last Name
Initial Lease Date
Tenant Income at Move-in
HUD Listed Income Limit
Actual % CMI
Tenant Rent at Move-in
Rent Subsidy? If Yes, Source
Amount of Other Rent Subsidy
Utility Allowance
No. in Household
HUD Listed Rent Limit ($)
HOME RHD COMPLIANCEActual % of CMI (The tricky one!)CMI = “County Median Income”
HUD prints income limits by state, county, and household size annually
• Take the HUD listed 50% income limit (listed as “very low income” limit) for your county and the appropriate household size
• Double that income limit and divide by the household’s income
Income
100% CMI= Household % CMI
HOME RHD COMPLIANCEActual % of CMI (The tricky one!)
Step 1: $23,450 * 2 = $46,900 (or 100 % CMI)
Step 2: $18,600 / $46,900 = 39.7 % CMI
e.g. 2 person household in Bayfield County earns $18,600 per year
OK for “Low unit” (<50% CMI)
OK for “High unit”(<60% CMI)
Too much for “Sub unit”(<30% CMI)
HOME RHD Monitoring
HOME RHD Monitoring
Projects with HOME RHD funding monitored by Division of Housing or WHEDA staff
• Requirement of funding • Projects monitored every three years• Physical building inspection• Administrative inspection
On-site Monitoring:
HOME RHD Monitoring
3 years3 years
Project completion
HOME RHD Monitoring
Paperwork requests from Division of Housing
• Leases (current) • Tenant income documentation (most recent recertification)• Income calculations for tenant qualification (original and most recent recertification)• Original application with signed release of information and original income verification
For requested HOME units:
HOME RHD Monitoring
Documentation Requested
• Certified rent roll with designated HOME units specified, CMI designation, actual percentage of CMI, and current rent.
• Subsidy type for units (LIHTC, Section 8, RD, etc.) with income/rent limit documentation for each - could be part of rent roll or separate.
• Project LURA with stated HOME units and income restrictions.
For the building:
HOME RHD Monitoring
Paperwork requests from Division of Housing
• Unit inspection records• Copy of Tenant selection process with approval/denial/appeal process described• Utility allowance calculations, if any, with source of the allowance• Marketing efforts including MBE/WBE, Section 3, Fair Housing labeling, etc.
For the building:
The most you can charge for rent for a
HOME unit. Includes the utility
allowance
HOME RHD Monitoring
Basic Rent Roll: Information that should be captured
Income for household
Section 8 voucher + utility allowance + rent paid by tenant
List put out by Housing Authority. Add numbers for all utilities the tenant pays
on their own.
Amount paid by cash/check
to landlord each month.
<-- Needs to be smaller than HOME rent limit
Name (Last First) UnitMove-in date
Number residents Bedrooms
Total income
HOME unit?
HOME rent limit
Total HOME monthly rent
Section 8 voucher
Utility allowance
Garage fee
Rent paid by tenants HOME unit% Actual CMI% Notes
Jones, John P. 103 5/1/2011 1 1 $15,525.00 x $546.00 $513.00 $125.00 $48.00 $30.00 $370.00 50% 34.05% Lease renewed 5/1/2013
Bonham, John 104 6/1/2012 2 2 $27,050.00 x $669.00 $619.00 $59.00 $560.00 60% 51.92% Police call 6/1/12 re noise complaint; Maintenance inspection 4/6/13
Dreja, Chris
Relf, Keith 105 8/15/2009 1 2 $29,050.00 $30.00 $780.00 Plans to move out 7/1/2014, ok'd 1 month sublet
HOME RHD Monitoring
% of CMI Calculation
Use Excel or other software to calculate % of CMI for all HOME unit households
NameHOME
unit
Tenant gross yearly income Includes wages, child support, social security, and earnings from bank accounts and investments.
CMI 50% income "Very Low Income" Based on family size. Found on HUD.gov by county or city area.
HOME unit CMI% restriction (%) Tenant CMI %
example Jane Smith 125 $15,350.00 $23,750.00 50 32.32%
On-site Monitoring:
• Building exterior• Interior HOME units• Common areas
Building inspection
HOME RHD Monitoring
Remember to give tenants notice of entry!
HOME is moving to UPCS inspection standards
Questions?
Kate BloodProgram Manager Joanna Balsamo-LilienKate.blood@wisconsin.gov joanna.balsamolilien@wi.gov608.264.7838 608.264.7839
HOME RHDDivision of HousingDepartment of AdministrationPO Box 7970101 E. Wilson Ave.Madison, WI 53707-7970
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