Categories: Funding, New York State
06.27.2016
Now been amended to include $150 million for 1200 units of supportive housing STATEWIDE.
NYS Homes & Community Renewal has released an amended Multifamily Open Window Request for Proposals. This RFP which was originally released in April for highly ready projects, has now been amended to include $150 million for 1200 units of supportive housing STATEWIDE. This capital funding is intended to complement the recently released Empire State Supportive Housing Initiative Request for Proposals for services and operating for the first 1,200 units of the state’s plan to create 20,000 units over the next 15 years. Applications will be accepted throughout the year with a final due date of March 1, 2017.
Several changes were made to this amended Multifamily Open Window RFP including:
- $150,000,000 is now available for the Supportive Housing Opportunity Program (SHOP) with at least 80% of SHOP funding reserved for developments that will be controlled by not-for-profit organizations;
- Funding for the non-supportive affordable housing units in integrated supportive housing projects are now eligible for funding under the SHOP program. The original version of the RFP had applicants applying for the affordable housing units in mixed-use supportive housing projects through the New Construction Capital Program (NCP); and
- $51.99 million is now available for revisions in the amount of available funding for the New Construction Capital Program, Public Housing Preservation Program and Multifamily Preservation Program. $15 million is now available for the Middle Income Housing Program.
Below are some highlights of the new revised Supportive Housing Opportunity Program (SHOP):
Overview:
This program will coordinate with other New York State agencies to combat homelessness by providing 6,000 new supportive housing units and services over the next five years. $150 million is being made available in the first year to create the first 1200 units of the 6,000 unit commitment.
Eligible Uses:
SHOP provides financing assistance for site acquisition, hard costs and related soft costs associated with the new construction of or the adaptive reuse of a non-residential property to affordable supportive housing with on-site social services. Financing is only available for site-specific multi-family rental housing that will have first mortgages financed by tax-exempt or taxable bonds issued by HFA or will receive an award of 9% LIHC. Please note that funds available in the Unified Funding Application for 9% LIHTC may be subject to different program requirements and terms than described below.
Funding Available:
$150 million in SFY 2016-17.
Per Unit Maximum Award:
- New York City: Up to $200,000 per supportive housing unit and up to $140,000 per affordable/community housing unit up to 60% AMI in integrated supportive housing projects.
- Westchester County & Long Island: Up to $200,000 per supportive housing unit and up to $100,000 per affordable/community housing unit up to 60% AMI in integrated supportive housing projects.
- Rest of State: Up to $150,000 per supportive housing unit and up to $75,000 per affordable/community housing unit up to 60% AMI in integrated supportive housing projects.
Projects securing resources from HHAP, HPD or other agencies for supportive housing units are not expected to request the maximum per supportive unit awards under this program. The maximum per supportive unit awards are expected for projects unable to secure leveraged resources and/or for projects where prevailing wages are required.
Eligible Applicants:
Not-for-profit corporations or charitable organizations, or a wholly owned subsidiary of such corporations or organizations, or private for-profit developers. At least 80% of SHOP funding will be reserved for developments that will be controlled by not-for-profit organizations. The following arrangements are acceptable demonstrations of not-for-profit control:
- 100% Not-for-profit Development: Projects where the sponsor(s)/developer(s) are not-for-profits. The project will be developed and owned by a not-for-profit or a partnership of not-for profits during construction and after conversion to permanent financing.
- Turn-key Development: Projects where a not-for-profit partners in a fee development structure with a for-profit partner where the ownership of the project is turned over to the not-for-profit provider after construction completion.
- Joint Ventures with Majority Not-for-profit Control: Partnerships between not-for-profit and for-profit entities where the majority ownership is by the not-for-profit (at least 51% ownership by the not for-profit of the controlling entity of the property owner). Such partnerships ensure that not-for-profit has day-to-day and long-term management control over the properties.
Additional Eligibility Requirements:
A services and operating award and/or services plan acceptable to HCR is required, and must be obtained in order to be eligible for this program. Total supportive housing units should not exceed sixty (60% ) percent of the total units in the project. Developments must provide an integrated housing environment for the proposed residents. Applicants are encouraged to maximize the number of supportive housing units in their developments taking the neighborhood context into consideration.
Target Populations:
The eligible target populations to be served under this program are families, individuals and/or young adults who are both homeless and who are identified as having an unmet housing need as determined by the CoC or local planning entity or through other supplemental local, state and federal data, and have one or more disabling conditions or other life challenges, including:
- Serious mental illness (SMI);
- Substance use disorder;
- Individuals diagnosed with HIV;
- Victims/Survivors of domestic violence;
- Military service with disabilities (including veterans with other than honorable discharge);
- Chronic homelessness (including families, and individuals experiencing street homelessness or long-term shelter stays);
- Youth / young adults who left foster care within the prior five years and who were in foster care at or over age 16;
- Homeless young adults between 18 and 25 years old;
- Adults, youth or young adults reentering the community from incarceration or juvenile justice placement, particularly those with disabling conditions;
- Frail or disabled seniors;
- Individuals who are MRT high cost Medicaid populations (MRT Eligible)
Definition of Homeless:
In order to be considered homeless for the purposes of this RFP, an individual must meet one of the following criteria:
(1) an un-domiciled person (whether alone or as a member of a family) who is unable to secure permanent and stable housing without special assistance. This includes those who are inappropriately housed in an institutional facility and can safely live in the community and those who are at risk of homelessness,
(2) a youth or young adult who left foster care within the prior five years and who was in foster care at or over age 16, and who is without permanent and stable housing,
(3) an adult or young adult reentering the community from incarceration or juvenile justice placement, who was released or discharged, and who is without permanent and stable housing, or
(4) a young adult between the ages of 18 and 25 years of age without a permanent residence.
Area Median Income Restrictions:
At least 50% of the units in the project must be affordable to households earning no more than 60% of AMI.
Supportive Services & Operating Funds:
A services and operating award or plan acceptable to HCR is required for projects seeking these funds, and must be obtained in order to be eligible for this program. HCR anticipates that the operating funding from the services and operating source will at least cover real estate maintenance and operating expenses for the supportive housing units. Applicants should underwrite rents for supportive housing units at an amount affordable to households earning 50% AMI. Please see the Empire State Supportive Housing Initiative Request for Proposals for services and operating funding opportunities.
Priorities:
Economic Development Projects, Integrated Supportive Housing Projects, Community Renewal and Revitalization Projects, Housing Opportunity Projects, Workforce Opportunity Projects and Disaster Relief Projects, and projects that contain more than 50% supportive housing units.
Scoring Criteria:
Developer Team Experience and Capability (15)
Readiness (20)
Financial Feasibility and Efficiency (15)
Leverage (15)
Regional Economic Development Council Plan (5)
Priority Outcomes (15)
Overall Outcomes (15)
Regulatory Agreement Requirements:
Minimum 40 year regulatory agreement. The regulatory agreement will require that the number of units designated as supportive housing will remain so for at least 40 years.
HCR SHOP Contact Information:
David Simmons (212) 872-0481
david.simmons@nyshcr.org
Please contact the Network’s Maclain Berhaupt if you have any questions.