DEPARTMENT:
Neighborhood and Housing Services Department
DEPARTMENT HEAD:
Verónica R. Soto, AICP, Neighborhood and Housing Services Department Director
COUNCIL DISTRICTS IMPACTED:
Citywide
SUMMARY:
Presentation of Evaluation Criteria for the Affordable Rental and Homeownership Housing Development applications for HOME Investment Partnership (HOME) and Community Development Block Grant (CDBG) funding as recommended by staff.
BACKGROUND INFORMATION:
The City is the recipient of funding for CDBG and HOME from the U.S. Department of Housing and Urban Development (HUD). The City undergoes an Annual Action Plan process to set aside funding for affordable housing and community development activities. The City has developed evaluation criteria that will be utilized as a decision making tool to assess and prioritize requests for federal funding set aside for the creation or preservation of affordable rental and homeownership housing. HOME funds can be used for acquisition, new construction or rehabilitation. CDBG funds can be used for acquisition, rehabilitation and/or reconstruction of affordable rental housing.
This evaluation criteria was compiled using HUD regulatory requirements, national best practices, The Mayor’s Housing Policy Taskforce Framework, and input from Community Housing Development Organizations (CHDO) and affordable housing developers.
The proposed evaluation criteria will allow for all applications for CDBG and HOME funding to be evaluated in three phases that include the following:
• Phase I: Threshold Requirements
• Phase II: Project Prioritization and Underwriting
• Phase III: Evaluation Panel Review
Phase I will include a review of the applications by City staff to confirm completeness and ensure threshold requirements are met. Eligible applications will then be assessed utilizing the Project Prioritization Evaluation Criteria outlined in Phase II. The categories are outlined below:
|
Evaluation Criteria |
Maximum Points |
|
Experience and Capacity |
15 |
|
Project Readiness |
20 |
|
Project Site Characteristics & Amenities |
25 |
|
HUD Regulatory Conditions |
5 |
|
Efficient Use of Funds |
5 |
|
Underwriting |
30 |
|
Total Points |
100 |
Concurrently, applications will undergo an underwriting review to determine financial viability, applicant’s capacity to complete the project, and ensure the HOME/CDBG gap financing is necessary. The third phase includes a review by an evaluation panel, consisting of leadership team members who will rank the application and make funding recommendations.
The timeline for the process is as follows:
Evaluation Criteria
• April 18, 2019: Stakeholder Presentation
• April 24, 2019: Housing Commission Presentation
• May 15, 2019: Comprehensive Plan Committee Consideration
• June 6, 2019: City Council Consideration
•
Funding Application
• June 10, 2019: Issuance to Rental and Homeownership Housing Developments
• June 17, 2019: Issuance to Community Housing Development Organizations
• June 18, 2019: Rental and Homeownership Housing Development Work Session
• June 25, 2019: CHDO Operating Work Session
• July 19, 2019: Homeownership and Rental Housing Development Due
• July 26, 2019: CHDO Operating Due
• August 20, 2019: Audit and Accountability Committee Consideration
• August 21, 2019: Comprehensive Plan Committee Consideration
• September 12, 2019: City Council Consideration of Funding Recommendations
The City seeks input from the Housing Commission to ensure consistency with the recommendations of the Mayor’s Housing Policy Taskforce Framework and local initiatives.
ALTERNATIVES:
This item is for briefing purposes only.
FISCAL IMPACT:
There is no fiscal impact at this time.
RECOMMENDATION:
This item is for briefing purposes only.