Categories: Funding
08.21.2014
NYS Homes and Community Renewal (HCR) has released its annual Unified Funding Round Request for Proposals (RFP) for its Multifamily Capital and Credit Programs.
NYS Homes and Community Renewal (HCR) has released its annual Unified Funding Round Request for Proposals (RFP) for its Multifamily Capital and Credit Programs. Those seeking funding must submit early round applications by October 7th and regular round applications by December 4th.
Funds available this year include:
- $25 million in Low Income Housing Tax Credits (LIHTC);
- $4 million in NYS Low Income Housing Tax Credits (SLIHC);
- $40 million in Housing Trust Funds (HTF);
- $25 million in Medicaid Redesign Team Housing Capital funds (MRT);
- $7 million in NYS HOME funds;
- $6.7 million in Rural and Urban Community Investment Funds;
- $50 million in the New York Rising Rental Buildings Recovery Program Multi-family/Affordable Housing Funds(CDBG-DR/AHF);
- $32 million in Mitchell-Lama Program funds;
- $500,000 in Rural Area Revitalization Program funds; and
- $50,000 in Urban Initiatives Program funds
The Network commends the State for once again committing a minimum of $4 million in federal Low Income Housing Tax Credits (LIHTC) funding for supportive housing.
WHAT’S NEW THIS YEAR?
There are several important changes to the UFR RFP 2014. Below is a list of the most significant changes.
- New Funding Programs -Three new funding sources are available under this RFP. They include the Medicaid Redesign Team Housing Capital Program (MRT), the Mitchell-Lama Program, and the CDBG Disaster Recovery Multi-Family Affordable Housing Fund (CDBG-DR/AHF).
- Integrated Supportive Housing -Applicants considering projects that would give preference in tenant selection to persons with special needs for 50% or more of a projects units must schedule a pre-application conference with HCR, and the State, federal or local agency that is providing the funding for appropriate services. The purpose of this conference is to explore whether the contemplated project will provide an integrated housing environment consistent with the US Supreme Court’s Olmstead v. L.C. decision.
- New Early Award Housing Goals -There are two new Early Award State housing goals: Military Base Impact Projects and Medicaid Redesign New York/New York III Projects along with significant changes to several existing housing goals detailed below. In addition, New York City Early Award applications will now have 30 additional days to commence construction from the time of award.
- New York State Low-Income Housing Tax Credit Program (SLIHC) -HCR is modifying the maximum per-project SLIHC allocation which may be requested. Applications proposing projects where ten percent (10%) or more of the total project units will be SLIHC-assisted and affordable and targeted to households with incomes above 60% of Area Median Income (AMI) may request the maximum SLIHC allocation of $750,000. Applications for all other projects may request a maximum SLIHC allocation of $500,000.
- Low-Income Housing Credit Mixed-Income Pilot -HCR is seeking to encourage applications under this initiative by offering applicants greater flexibility in bedroom configurations and income targeting in NYC. This would allow for a mixing of family units up to 120% AMI with units at or below 30% AMI, as long as it averages 60% AMI.
EARLY ROUND PRIORITIES
Early round applications must meet one of several New York State housing goals. These include priority projects that meet the state’s revitalization and economic goals; workforce opportunity project goals; affordable housing preservation goals and supportive housing goals.
Supportive Housing goals include projects that serve Veterans with Special Needs and Medicaid Redesign/New York New York III Projects:
- Projects that Serve Veterans with Special Needs – The project must serve veterans with special needs and demonstrate a coordinated State investment in a project by clearly documenting firm commitments of service, operating, and development financing from State partners. Projects will be evaluated on the extent to which funding commitments contribute to meeting the financial needs of the proposed project.
- Medicaid Redesign /New York New York III Projects - Applicants must apply for and satisfy the requirements for Medicaid Redesign Team (MRT) funding and must demonstrate that they have a commitment for NY/NY III subsidy for at least 25% of the project’s total units.
SUPPORTIVE HOUSING SET-ASIDE
$4 million is available for the Supportive Housing Set-Aside projects that set-aside at least 25% of the units for tenants with Special Needs (this has changed from previous years when it was set at 30%). To be considered a supportive housing project under this set-aside, an application must:
- document the need for housing for the targeted population within the primary market area;
- provide a comprehensive service plan and an agreement in writing with an experienced service provider that ensures the delivery of appropriate services for which a documented need exists for the targeted population;
- propose a project site in close proximity to public transit service, or include a transportation plan as a component of the comprehensive service plan to ensure access to necessary services;
- demonstrate that funding for appropriate services is in place, or identify a viable plan for securing such funding;
- include a provision for an on going rental subsidy or other form of subsidy to ensure rents paid by the targeted population remain affordable;
- demonstrate a firm commitment for capital financing from a governmental agency serving the proposed target population;
- identify a public agency or experienced service provider with which a written agreement has been executed to refer eligible persons and families for the targeted units; and
- the project must provide an integrated setting that enables individuals with disabilities to live independently and without restrictive rules that limit their activities or impede their ability to interact with individuals without disabilities.
NOTE: Any applicant considering a project that would give preference in tenant selection to persons with special needs for 50% or more of a project’s bedrooms are required to schedule a pre-application conference with HCR, and the State, federal or local agency that is providing the funding for appropriate services. The purpose of this conference is to explore whether the contemplated project is consistent with the Olmstead decision.
MEDICAID REDESIGN TEAM (MRT) HOUSING CAPITAL PROGRAM
HCR, acting through the Housing Trust Fund Corporation, is making available up to an additional $25,000,000 of capital to expand supportive housing for high cost Medicaid populations emphasized by the MRT. For purposes of this RFP, supportive housing must meet the definition of “supportive housing” set forth in Section 2040.2(u) of the DHCR QAP for 9% Low-Income Housing Credits. Eligible applicants may apply for up to $125,000 in MRT funds per supportive unit serving an eligible population.
HCR is seeking proposals from development teams that include service providers who have service, operating, and capital awards funded through the MRT Supportive Housing Allocation Plan, the NY/NY III Agreement, or from other federal, state and municipal funding streams for high need and high cost Medicaid recipients, to develop multifamily supportive rental housing projects either through new construction, or the gut rehabilitation of vacant buildings.
This RFP seeks to increase the number of integrated supportive housing developments in which a portion of the units are occupied by tenants who are receiving services, and a portion of the units are available to tenants of affordable or market rate units who are not in need of services. Evidence of the service, operating, and capital funding is required as part of the application submission. Successful applicants and their service providers will be required to collect and submit relevant Medicaid patient data to the State Department of Health or another State agency to track Medicaid cost savings resulting from the investment of MRT funds. Applications requesting MRT funding need not demonstrate a capital funding commitment if the proposed project relies on a NY/NYIII services only commitment from a New York State agency participating agency under the NY/NYIII agreement. Applicants requesting MRT funds under this RFP may not also request Mitchell-Lama (ML) or CDBG-DR/AHF funds.
Populations that are eligible for funding under the MRT Capital program include:
a) Those populations that receive funding through the MRT Supportive Housing Allocation Plan,
b) Populations covered under NY/NY III, and
c) Populations covered by other federal, State and/or municipal funding streams which provide social service funding for high need and high cost Medicaid recipients.
To demonstrate compliance with this application requirement, MRT applicants must provide a letter from the city, State or federal agency that will be providing the service subsidy to the project substantiating that the targeted population has historically had high cost Medicaid usage.
Funding Priorities/Rating Criteria- Applications in which MRT funding provides the greatest financial benefit to a project out of all HCR-requested resources will be rated based on the following criteria:
- expands supportive housing for high-cost Medicaid populations as defined by the MRT (25 points);
- projects that leverage third-party resources, including the utilization of capital and rental subsidies from other State and municipal funding sources, with highest priority being given to projects that have capital and operating awards for other State agencies (25 points);
- projects located in areas underserved by supportive housing (15 points);
- readiness to proceed (15 points);
- organizational capacity and strength of the development team/past performance (5 points);
- service provider is part of the ownership structure (5 points);
- recipients awarded funding under the OMH NY/NY III Services-Only RFP (5 points); and,
- coordinated investment by State agencies, federal government and local partners, as well as the applicable Regional Economic Development Council strategic plan (5 points).
APPLICATION WORKSHOPS
There will be three application workshops held throughout the state. The workshops will include a presentation and discussion of project application requirements and the Unified Funding process. Workshops will be conducted at the following times and locations:
New York City
Friday, September 5th, 10:30am
25 Beaver Street, Room 510
Albany
Tuesday, September 9th, 10:00am
Hampton Plaza Ballroom, 30-40 State Street
Rochester
Wednesday, September 10th, 10:00am
Rochester City Council Chambers, City Hall, Room 302, 30 Church Street
Applications for capital project funding will be submitted using the Community Development Online Application System. Printable instructions and screen shots of the CDOL Exhibits for the 2014 UFR CDOL application will be available on the HCR website.