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The Fairfax County Board of Supervisors established the Affordable Housing Partnership Program in order to provide sources of financing for the development and preservation of affordable homeownership and rental housing units for nonprofits and other organizations who are actively engaged in housing development.
The AHPP is intended to facilitate partnerships in the preservation and development of affordable housing throughout Fairfax County by providing a comprehensive array of financing tools and technical assistance.
The AHPP is funded from a variety of sources including the Fairfax County Housing Trust Fund, the Housing Flexibility Fund (One Penny for Housing), Community Development Block Grants and Home Investment Partnership Program (HOME) fund. Each application is analyzed to determine the most appropriate source or combination of sources of funds for a particular project.
I. Before
Submitting an Application
II. Application Instructions
III. Eligible Applicants
IV. Funding Levels
A. Tier One Predevelopment
B. Tier Two Predevelopment
C. Tier Three Affordable
Housing Partnership Fund
V. Eligible Activities
A. Tier One Predevelopment
B. Tier Two Predevelopment
C. Tier Three Affordable
Housing Partnership Fund
VI. Ineligible Activities
VII. Occupancy Requirements
A. Rental Projects
B. For Sale Projects
VIII. Rent Requirements
IX. Minimum Requirements
A. Tier One Predevelopment
B. Tier Two Predevelopment
C. Tier Three Affordable
Housing Partnership Fund
X. Relationship to County Priorities
XI. Threshold Criteria for Tier Three Affordable
Housing Partnership Fund
XII. Award of Funds
XIII. Tenant Displacement
XIV. Monitoring and Review
I. Before Submitting
an Application
Before filling out an application, please read the following guidelines and call the Real Estate Finance Branch at 703-246-5170 or TTY 703-385-3578 or e-mail REFinance@fairfaxcounty.gov to schedule a pre-application meeting. At the meeting, be prepared to describe your proposed project. The AHPP requirements, process and forms will be explained as it relates to your project description and organization.
Fairfax County is committed
to nondiscrimination on the basis of disability in all County
programs, services and activities. Special accommodations will
be provided upon request. For information call 703.246.5101
or 703.385.3578 (TTY).
II. Application Instructions
Download the application from http://www.fairfaxcounty.gov/rha/ahpp.htm. The application is a PDF-fillable form that can be filled out and printed. If you have Adobe Acrobat Professional or Standard you will be able to fill out the application and save it on your computer, if you do not have this software, you will have to rely on printing. Once printed, mail two copies of the application along with the appropriate attachments.
PRINT AND MAIL TWO
COPIES OF THE APPLICATION TO:
Real Estate Finance Branch
Fairfax County Department of Housing and Community Development
3700 Pender Drive, Suite 300
Fairfax , Virginia 22030-6039
If you have questions, please contact the Real Estate Finance Branch at 703-246-5170 or TTY 703-385-3578.
III. Eligible Applicants
Nonprofits and other organizations actively involved in the development of affordable housing are eligible and are encouraged to apply.
IV. Funding Levels
There are three levels of funding in the AHPP.
A. Tier One Predevelopment
funding is limited to $1,000 per unit with a $50,000 maximum per project. These funds are available to determine project feasibility. Tier One funds are structured as interest-free loans to be repaid from permanent project financing. However, they may be forgiven if the project does not go forward.
B. Tier Two Predevelopment funding is limited to $1,000 per unit with a $50,000 maximum per project. Funding is available for projects where feasibility has been clearly established. This funding is considered an interest-free loan for which the applicant is at risk.
Applicants may apply for Tier One Predevelopment funding at the same time as Tier Two Predevelopment funds. Applicants may apply for Tier Two funds without applying for Tier One if appropriate.
C. Tier Three Affordable Housing
Partnership Fund. Loan amounts and loan terms will be determined on a case-by-case basis. Applicants are encouraged to request funding that does not exceed 33% of the total development cost of the proposed project. Higher limits will be considered under special circumstances such as serving a special-needs population or targeting individuals with income levels significantly lower than the minimum program income requirements.
V. Eligible Activities
A. Tier One Predevelopment. These funds may be used for predevelopment costs to include: architectural and engineering studies, attorney fees, appraisal, title reports, environmental studies, market studies, feasibility analyses, archeological studies and other predevelopment costs. Project-specific consulting fees and site control loans will be considered on a case-by-case basis. The loan is expected to be repaid from construction or permanent financing but will be forgiven if the project does not go forward. Projects must meet the minimum program requirements for Tier One Predevelopment.
B. Tier Two Predevelopment.
After feasibility has been established, these funds may be used for further architectural and engineering services related to site plan preparation, building plan preparation, surveys, utility easement plat preparation, review fees, detailed cost estimates and other services typically required. Tier Two funds are intended to enhance the applicant’s commitment to move the project forward. Therefore, the loan is structured with a repayment requirement . Projects must meet the minimum program requirements for Tier Two Predevelopment.
C. Tier Three Affordable Housing
Partnership Fund. Tier Three AHPF may be used for construction, bridge, gap or permanent financing, equity, or to purchase or provide credit enhancements. Interest rates, loan terms and minimum returns (if any) will be determined on a case-by-case basis. Projects must meet minimum requirements for Tier Three AHPF loans and meet the threshold score of at least 70 points.
VI. Ineligible Activities
• Tenant rental assistance is not an eligible cost under
the Affordable Housing Partnership Program
• Predevelopment funds may not be used for construction
costs
• Operating costs are not eligible
VII. Occupancy Requirements
Occupancy of units financed under any part of the Affordable Housing Partnership Program is restricted to qualified low-income individuals and families. Occupancy requirements remain in effect for a minimum of 15 years or the term of the loan, whichever is longer. Points A and B on the following page describe the requirements for rental and for sale projects.
A. Rental Projects
Applicants for Tier Three Affordable Housing Partnership Funds for rental projects must offer units to be occupied by households with total household income not exceeding 70% of the area median income adjusted for family size.
B. For Sale Projects
The property must be purchased by an eligible low-income homebuyer with total household income not exceeding 120% of the area median income, adjusted for family size. Units must be owner-occupied for the term of the loan. Depending on the funding source, the occupancy limits for both rental and for sale housing may be lower.
VIII. Rent Requirements
Rents will follow the same formula used in the Low Income Housing Tax Credit Program (Contact the Virginia Housing Development Authority for more information or go to its Web page: http://www.vhda.com/vhda_com/Template_a.asp?VHDA_COM_PAGE_NAME=TaxCreditInfo
)
IX. Minimum Requirements
These relate to attachments that are listed on page two of the
application.
A. Tier One Predevelopment
• Support of Area Supervisor
• Site Control
B. Tier Two Predevelopment
• Support of Area Supervisor
• Site Control
• Required Zoning
(When provided with application)
C. Tier Three Affordable Housing
Partnership Funds
• Support of Area Supervisor
• Site Control
• Required Zoning
• Architectural and Site Plans
• Engineering Reports and Evidence of Adequate Utilities
• Appraisal
• Environmental Study
• Market Feasibility Analysis
• Rent and Operating Cost Assumptions (For Rental Projects)
X. Relationship to County Priorities
Proposed projects must address needs identified in the County’s
Consolidated Plan. Refer to the FCRHA Web page for more information:
http://www.fairfaxcounty.gov/rha/consolidatedplanshomepage.htm
In the Project Purpose section of the application, Tier Two
and Tier Three AHPF applicants should address how the proposed
project addresses the following household categories.
A. High Priority
• Homeless persons, both families and individuals (with
or without special needs)
• Small (2 to 4 person) related renter households
• Large (5 or more person) related renter households
• Non-homeless persons with special needs
B. Middle Priority
• Elderly renter households (based on continuation of
existing programs)
• Existing homeowners (preservation of existing affordable
owner-occupied housing)
• Metropolitan Statistical Area low/moderate income first-time
homebuyers (with or without children)
C. Low Priority
• All other non-elderly renter households without special
needs (primarily singles)
• Very low income first-time homebuyers (due to excessive
cost burden or subsidy cost)
XI. Threshold Criteria for Tier Three
Affordable Housing Partnership Fund
See Threshold Analysis Sheet. A minimum of 70 points is required
to be considered for an award.
XII. Award of Funds
All applications will first be subject to preliminary screening by the Department of Housing and Community Development for completeness. Applications deemed complete will be reviewed and underwritten by HCD. Applications that meet the minimum requirements and the minimum threshold score (for Tier Three AHPF funds) and are deemed feasible based on HCD underwriting will be recommended to the Fairfax County Redevelopment and Housing Authority and the Board of Supervisors for consideration and approval. All applications are subject to availability of funds. In certain cases, applicants may be responsible for FCRHA legal and recording fees. Depending upon the availability of funds, HCD shall prepare a merit list and the funds shall be awarded in that order.
XIII. Tenant Displacement
Preference in scoring is awarded to projects that do not propose permanent displacement. However, projects which cause permanent tenant displacement may be considered under certain circumstances. A relocation plan and relocation budget must be submitted if permanent or temporary relocation will be necessary in order to carry out the project. Applicants who are awarded either Tier One or Tier Two Predevelopment funds or Tier Three Affordable Housing Partnership funds must agree to provide relocation assistance consistent with the Fairfax County Relocation Guidelines unless such projects are subject to the Uniform Relocation and Real Property Assistance Policies Act. Copies of the Fairfax County Guidelines and information on the Federal Uniform Relocation Act are available by calling 703-246-5086.
XIV. Monitoring and Review
Projects will be monitored to ensure that units are occupied by income eligible households. Occupancy requirements remain in effect for a minimum of 15 years or the term of the Tier Three AHPF loan, whichever is longer. For rental projects, in order to promote excellence of property management in developments funded under the program, a property management plan is one of the areas evaluated in the selection of projects.
In the event poor management results in a risk to the FCRHA investment or negatively impacts the development or neighborhood, the FCRHA may require a change in project management.
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