Consolidated Summer NOFA - PowerPoint Presentation

Consolidated Summer NOFA Large Scale New Development Small Scale Development Veterans Gap Set Aside 6/7/2019Housing Stability Council Presentation Consolidated 2019 Summer NOFA

Presentation Agenda High Level review of the NOFA framework in the Council materials packet (page 65) Review of policy questions posed to the council Next stepsConsolidated 2019 Summer NOFA

Consolidated 2019 Summer NOFA Overview: FundingResources: Large Scale New Development with 4% LIHTC Leverage$5 million Gap$10 million OAHTCsSmall Projects; $ 10 million $7 million Gap – Rural $3 million Gap – Urban $5 million OAHTCs Veterans Funds; $4 million Gap To be determined based on Housing Stability Council feedback

Council Question: Should we prioritize putting resources to develop units set-aside for Veterans into all projects, or should we restrict those resources to just the small project offering?Context: The large scale new development gap offering, which is intended to be paired with 4% LIHTC, emphasizes low subsidy and economies of scale in order deliver a large number of units to serve low income Oregonians. The Veterans Gap resources could be used to set-aside units within these larger projects to serve Veterans. However, given the production model, these projects are far less likely to have supportive resources for a more vulnerable portion of the Veteran population. On the other hand, the small project offering may be a mechanism for creating specifically dedicated Veteran housing with a sense of community. Consolidated 2019 Summer NOFA

Membership and Mission Membership and Mission At least 80 units in urban areas and at least 60 units in rural areas Must leverage 4% LIHTCNew Construction only Overview: Criteria 2019 Subsidy Caps / Unit Studio 1 Bedroom 2 Bedroom 3 Bedroom Large Scale Projects (Veterans subsidy boost) $25,000   (+$25,000) $35,000   (+$35,000) $40,000   (+$40,000) $50,000  (+$50,000)Small New Projects(Veterans subsidy boost)$125,000 (+$25,000)$175,000 (+$35,000)$225,000 (+$40,000)$275,000 (+$50,000) At least 5 and at most 35 unitsUnit Limits (below) are based historic total development costsNew Construction or Aq/Rehab (pending HSC feedback; lower caps for Acq/Rehab) Consolidated 2019 Summer NOFA Large Scale New Development Small Project Development Veterans subsidy boost incentivizes unit set-asides for Veterans populations; additionally, our point incentives for small projects prioritizing serving homeless veterans where there is reduced ability to take on debt.

Membership and Mission Membership and Mission Council Question: Should we allow preservation / rehabilitation projects to apply for the Small Project offering?Context: To-date our preservation / rehab offerings have not been designed to work well for smaller affordable housing projects in need of rehabilitation; allowing such projects to compete for resources in the small project offering would provide an opportunity to preserve these vulnerable housing resources. The downside to such an allowance would be that the resources would limit the number of new units produced. Historically, small project NOFAs have been used for preservation / construction defect repair; group homes, and new construction – not always during the same NOFA cycle. Consolidated 2019 Summer NOFA

Membership and Mission Overview: Scoring Highlights Consolidated 2019 Summer NOFA Large Scale: Points Rationale 1 Project Size: Points will be awarded to large-scale projects consisting of 80 units or greater in a single project or scattered site. 15pt - 151 or more units 10pt - 150 to 131 units 5pt - 130 to 100 units 0pt - 99 to 80 units Push for greater number of units placed in service 2*Subsidy Leveraging: preference projects that require lower subsidy per unit. Calculated by dividing the total grant amount requested by the total number of affordable units. 15pt - 50% below per unit subsidy caps10pt - 30% - 49% below 5pt - 10% - 29% below 0pt - 0% - 9% belowPreference projects that require less grant funds to proceed.5Large Family Units:Points will be awarded to projects with an average unit size that contains enough bedrooms to support larger families.  5pt Average bdrm size 2 or more3pt Average bdrm size more than 1.5 and less than 2.Encourage larger units that can support families with children.* Same Criteria on Small Projects

Membership and Mission Overview: Scoring Highlights Consolidated 2019 Summer NOFA Small Scale: Points Rationale 3 Priority Populations: For projects with at least five (5) units for homeless vet or agriculture workers. 8pt for 20% and more or at least 2 units 4pt for 10% and more or at least 1 unit housing populations prioritized by Statewide Housing Plan. 5 Tribal Sponsored Project: Points will be awarded to projects sponsored by one or more of Oregon’s sovereign Tribes. 2 Points high need and unique challenges for development of affordable housing 7 Ties to Existing Efforts: For ties to programs, and/or initiatives such as Veterans Capacity, Meyer Memorial Trust Capacity, rent burdened community assistance, or other demonstrable initiatives approved by OHCS.2 PointsOther programs, initiatives, and agencies are working towards similar goals to OHCS and joining efforts avoids redundancies and builds overall capacity.

Membership and Mission Council Question: Our current framework includes preference points for projects connected to several state agency capacity building efforts; do we want to expand this point incentive to projects participating in other, unrelated, capacity building efforts? Context : In order to build upon OHCS related investments in capacity building, we have proposed preference points for those projects that have ties to specific capacity efforts including: Veterans “ Operation Welcome Home ” initiative, Rural Peer Network, Rent Burdened Community technical assistance investments made through 2018 Legislative efforts ( HB 4006 ), and previous OHCS and Meyer Memorial Trust capacity building investments. The intention of the proposed preference points is to leverage these capacity investments that further Statewide Housing Plan goals. Should HSC agree this is an appropriate concept to preference in these offerings, we would also ask whether this preference should be expanded to include other capacity investments that we are not aware of and are not directly connected to these efforts? Consolidated 2019 Summer NOFA

Next Steps Return to July HSC with updates and a request to motion for NOFA framework approval. Application Timing:July/August 2019 – Streamline Application formal announcementOctober 2019 – Application Due December 2019 – Housing Stability Council Presentation Consolidated 2019 Summer NOFA

Thank You Consolidated 2019 Summer NOFA