MIAMI-DADE COUNTY
HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM
FY 2022 RFA ELIGIBLE HOUSING ACTIVITES:
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The Miami-Dade County Department of Public Housing and Community Development (PHCD) is soliciting applications under the FY 2022 Request for Applications (RFA) process to fund developments and activities under the HOME Programs. Applicants must apply to this RFA using the ZoomGrants link. ZoomGrants is an online application portal. No paper applications or application binders will be accepted.
The FY 2022 RFA is supported by the FY 2020-2024 Consolidated Plan approved by the Board of County Commissioners (BCC) on October 22, 2020. Affordable housing continues to be a priority need within Miami-Dade County, to respond to a housing affordability crisis. A map showing Eligible Block Groups ranked by vulnerability.
SUMMARY OF HOME PROGRAM REGULATIONS (24 CFR Part 92)
The HOME Program is designed to:
- Expand the supply of decent and affordable housing for low- and very-low income individuals.
- Strengthen the abilities of State and local governments to design and implement strategies for achieving adequate supplies of decent affordable housing.
- Provide both financial and technical assistance to participating jurisdictions (entitlement areas) including the development of model programs of affordable housing for very-low and low-income families.
- Expand and strengthen partnerships among all levels of government and the private sector, including for-profit and not-for-profit organizations, in the production and operation of affordable housing.
Project site(s) submitted for consideration must be owned or controlled by the Developer who can show site control at the time of submission to Miami-Dade County. Site(s) must be serviced or proposed to be serviced by all utilities including sanitary sewer, where available.
Minimum Threshold Requirements
Developments will be recommended for funding based on applications meeting all minimum threshold requirements listed below and will be ranked in order based on highest score. If a tie breaker is needed during scoring to determine project ranking, the first tiebreaker will be “Ability to Proceed. Those projects that score highest in Ability to Proceed, will be ranked higher. If a second tiebreaker is needed, those projects with higher points in leveraging, i.e., projects that require less total County funding per unit, will be ranked higher. If a third tiebreaker is needed, the application that proposes to construct the highest number of units will be ranked higher.
Please note points will only be awarded when supporting documentation outlined in the Application Checklist is both accurately labeled and attached to your electronic application. Points will not be awarded in cases where supporting documentation is inaccurately labeled or uploaded and/or attached to the wrong question.
- Leveraging – Applicants must provide supporting documentation showing a firm commitment of ALL sources of funding available for the proposed activity. This is a minimum threshold requirement.
- Organizational and Financial Capacity – Organizations must demonstrate that they are fiscally sound and have the skills and experience required to achieve the proposed activity. Applicant (Developer, Developer Principal, or Sponsor) must provide Audited Financial Statements or a Certified Financial Statement, certified by an independent 3rd party auditor, which cannot be performed by an affiliate or staff member. Financial statements can be provided in a separate envelope at time of application submission, however the time frame for which the information remains proprietary is limited per the language in F.S. 119.071(1)b(2). This is a minimum threshold requirement.
- Track Record – Previously funded applicants must be in good standing, with respect to audit findings and/or failure to complete projects, have a solid track record of submitting progress reports and monitoring findings and completed projects. This is a minimum threshold requirement.
- Site Control – Applications for housing activities must demonstrate site control. This is a minimum threshold requirement.
- Subsidy per Unit – For affordable housing projects, agencies/Applicants must show that the subsidy per unit does not exceed established standards outlined in Resolution No. R-343-15. This is a minimum threshold requirement.
- Sustainable Building (Green) Certification is a contractual requirement for receiving HOME, SURTAX and SHIP funding. Applicants must designate which certification will be obtained at the time of the application. This is a minimum threshold requirement. See MDC 9-71 through 9-75 and IO 8-8.
- Passing the Due Diligence investigation: Applicants must pass a Due Diligence investigation; see the Due Diligence Checklist for more information. Unless expressly authorized by the County Mayor or the County Mayor’s designee (in Resolution R-630-16, Section 3), any entity NOT clearing the Due Diligence Investigation will NOT be recommended to the Board for funding. This is a minimum threshold requirement. See Resolution No. R-630-13.
- Applicants must meet the Total Development Cost Limitations: Maximum Development Costs per unit to construct rehabilitate or acquire Affordable Housing with County funds must be met per Resolution No. R-346-15. This is a minimum threshold requirement. Note: The limitations set forth in Resolution No. R-346-15 or subsequent applicable resolution shall not apply to public housing projects owned or operated by Miami-Dade County.
- Meet the funding application cap per agency: See Resolution No. R-345-15 or subsequent applicable resolution. This is a minimum threshold requirement.
Eligible Applicants
Eligible applicants for HOME funds for affordable housing projects include:
- Community Housing Development Organizations (CHDOs). All CHDOs must be certified by PHCD before funds are awarded.
- Other Not-for-profit Organizations
- Private/For-Profit Organizations (including Partnerships and Sole Proprietorships)
- Community Land Trusts (CLT)
PROJECT RELATED COSTS
- Per Miami-Dade County regulations signs are required to be placed on all construction sites funded by PHCD. The applicant must include the cost of the signage as part of their development budget in an amount up to $1500.
- Pursuant to CFR Part 58, it is the responsibility of the Participating Jurisdiction to publicly notice certain construction projects in various local newspapers to inform the public of the impending activity. Other related costs may also be incurred based upon Part 58 mandates such as RER and DERM reviews.
- Pursuant to the 1931 Davis Bacon Act, contractors and sub-contractors performing on federally funded or assisted contracts, in access of 12 or more HOME assisted units, for the construction, alteration, or repair of public buildings or public works must have a Davis-Bacon wage determinations to certify that employees’ wages are consistent, at the very least, with local prevailing wages and fringe benefits for corresponding work on similar projects in the area. The applicant will be required to incur the cost associated with Davis Bacon compliance.
Map
Eligible Activities (24 CFR Part 92)
HOME funds may be used for the following:
- New Construction
- Rehabilitation of existing units
- Reconstruction
- Conversion of non-residential uses to residential uses
- Site improvements
- Acquisition of existing units and funds for rehabilitation
- Tenant-Based Rental Assistance (TBRA)
Ineligible Activities (24 CFR Part 92)
HOME funds may not be used for the following:
- Project reserve accounts
- Development, operations or modernization of public housing
- Project-based rental assistance
- Payment of delinquent taxes, fees or charges
For more information on eligible activities, refer to 24 CFR Part 92.
HOME Maximum Subsidy Per Unit
Applicant must not exceed HOME subsidy-per-unit maximums as to HOME funds:
Bedrooms | Home Maximum Per-Unit Subsidy* |
0 BR | $172,479 |
1 BR | $197,721 |
2 BR | $240,432 |
3 BR | $311,043 |
4+ BR | $341,426 |
*Note: The 2020 limits are provided above, and
the 2022 limits to be confirmed by the U.S. HUD
Miami Field Office, and may be subject to change.
Applicants must utilize the annually amended HOME subsidy-per-unit maximums provided by PHCD.
INSTRUCTIONS AND TECHNICAL ASSISTANCE WORKSHOPS
Instructions and application forms for the FY 2022 Housing RFA are included in this package. Copies are also available at the PHCD website: https://www.miamidade.gov/global/housing/requests.page. The application submission deadline is April …………., 2022.
PHCD will hold a Public Meeting for the 2020-2024 Consolidated Plan and 2022 Action Plan, to include an introduction to the new RFA booklets, and to solicit comments from the public. The application preparation and submittal requirements will be discussed at the meeting, which will be held at ……..a.m. until ……………..p.m. on April ……………, 2022, at ……………... Participants may also join via Zoom:
Join Zoom Meeting
Meeting ID: ………………………….
One tap mobile
…………………….
Dial …………………………………….
Comments and questions pertaining to this application must be submitted in writing to PHCD, no later than April …………, 2022 to the attention of:
Miami-Dade County Department of Public Housing and Community Development (PHCD)
Overtown Transit Village North
701 NW 1st Court, 16th Floor
Miami, FL 33136
communitydevelopmentservices@miamidade.gov
Applications for 2022 must be submitted in the ZoomGrants online application, ………………………………………………….
Applicants must create a profile in ZoomGrants in order to apply. No paper applications will be accepted.
ELIGIBLE APPLICANTS
Community-Based Organizations (CBOs), Community Development Corporations (CDCs), as well as for-profit and not for-profit developers are encouraged to respond to this FY 2022 RFA process by submitting applications for an eligible affordable housing development or project/activity. Entities may apply for funding for an activity from multiple funding sources by submitting individual applications for each funding source. Eligibility for use of funds available under this RFA vary from program to program. Applicants should refer to specific requirements and/or restrictions for each funding source as set forth in this application document.
ELIGIBILITY REQUIREMENTS AND EVALUATION CRITERIA FOR HOUSING APPLICATION PROJECTS
To be eligible for funding, all proposed rehabilitation activities must meet the requirements listed below. It is strongly recommended that applicants consider these requirements before preparing an application, as these are the same factors that will be used to rate and evaluate applications.
- Low-Moderate-Income Benefit – The proposed activity, if requesting HOME federal funding, must meet the Department of Housing and Urban Development (HUD) criteria of benefitting low- and moderate-income families. Every application that will benefit low- and moderate-income persons must provide evidence that the beneficiaries of the program will be low-to-moderate-income (LMI) persons. Applicants must provide the income eligibility requirements for the proposed activity or demonstrate that the activity is located in an Eligible Block Group (EBG). To identify eligible block groups go Miami-Dade County GISweb Community Services webpage at: https://gisweb.miamidade.gov/communityservices/ . Type in the activity address then open the “Demographics’ tab.
All HOME funds must be used to benefit low-income families whose incomes are at or below 80 percent of Area Median Income (AMI). For development projects with five (5) units or more, a minimum of 20% of the units must be rented to families with incomes that do not exceed 50% of AMI at the lower HOME rents listed in the chart below.
For 2021, Miami-Dade County’s median income is $61,000 with adjustments made for 80% AMI and 50% AMI, by family size, as follows:
80% AMI Family of 1 - $50,650 | 50% AMI Family of 1 - $31,650 |
80% AMI Family of 2 - $57,850 | 50% AMI Family of 2 - $36,200 |
80% AMI Family of 3 - $65,100 | 50% AMI Family of 3 - $40,700 |
80% AMI Family of 4 - $72,300 | 50% AMI Family of 4 - $45,200 |
AMIs are subject to change for 2022 and will be updated as applicable by the program. Applicant is responsible for utilizing the most recent income and rent limits available. Refer to Attachments.
- Rent Limits – The High HOME Rent Limit for an area is the lesser of the Section 8 Fair Market Rent (FMR) for the area or a rent equal to 30% of the annual income of a family whose income equals 65% of the AMI, as determined by HUD. The Low HOME Rent Limit for an area is 30% of the annual income of a family whose income equals 50% of the AMI, as determined by HUD, capped by the High HOME Rent Limit. HUD’s Office of Policy Development and Research Division calculates the HOME rents each year using the FMRs and the Section 8 Income Limits.
For 2021, the Miami-Dade HOME Rents Limits are as follows:
| 0 BDR | 1 BDR | 2 BDR | 3 BDR | 4 BDR | 5 BDR |
Low HOME Rent Limit | $800 | $857 | $1028 | $1188 | $1326 | $1463 |
HIGH HOME Rent Limit | $1020 | $1094 | $1316 | $1511 | $1666 | $1820 |
Rents are subject to change for 2022 and will be updated as applicable by program. Applicant is responsible for using the most recent rent limits available. Refer to Attachments.
- Market Analysis and Feasibility Analysis - A complete market study demonstrating the need for the housing is required. The market study for any housing activity should be included in the online application submission. The study must demonstrate a demand or need for the project. A credit underwriting analysis will be required for all projects to be considered for funding. Any applicant that fails to meet this threshold item will not be funded.
- Priority Needs – Activities must address a high priority need identified in the County’s FY 2020-2024 Consolidated Plan. Applications must describe how the priority need will be addressed and provide supporting data. Projects proposing to assist the homeless must address the Miami-Dade County Continuum of Care priorities.
- Organizational and Financial Capacity – Applicants must demonstrate that they are fiscally sound and have the skills, ability, and experience required to achieve HUD’s National Objective(s), and are able to meet other program requirements. Applicants will be evaluated on experience, organizational and administrative capacity, financial capacity, and management. This will include a review of resumes, financial statements, monitoring reports, audit findings, and complete inspections of new proposed activity locations.
- Leveraging – Applicants must show that they have other sources of funding available for the proposed activity. Since the County uses its federal and local funds to address funding gaps, other funding must exist to ensure timely project completion. Documentation must be provided with the application to verify the availability and commitments of leveraged resources. Applicants must have complete funding in place, except for the requested Gap Funding, and applicants must provide a sources and uses statement. Applicants must demonstrate maximum leveraging with non-County funds.
- Timely Completion - Applicants must demonstrate that they have a history of completing projects in a timely manner. Timely completion is defined as two (2) years for construction.
- Track Record – Previously funded Community Development Block Grant (CDBG), HOME, Neighborhood Stabilization Program (NSP), and Section 108 projects must be in good standing with respect to audit findings and have a favorable track record of completing projects on-time, submitting accurate and complete quarterly progress reports, and addressing all monitoring findings. Applicants with an existing PHCD contract that have any of the following contractual violations shall be ineligible, and will not be recommended for funding in this FY 2022 RFA: 1) failed to demonstrate achievement of the National Objective; 2) failed to meet appropriate performance and timeliness measures under their existing CDBG, HOME, NSP, SHIP, SURTAX, Section 108 loan agreements, and other Miami-Dade County contractual agreements; or 3) are currently in a delinquent payment status with their existing County contracts.
- Site Control – Applicants must demonstrate site control (i.e., title, lease agreement, firm purchase contract, Option to Purchase, Option to Lease Long-Term agreement, or Local Government Resolution) of the proposed site for which funding is being applied for.
- Maximum Subsidy Per Unit – For affordable housing projects, agencies must show that the subsidy per unit does not exceed established standards. For HOME-funded projects, HUD sets the maximum subsidy per unit annually.
- Payment and Performance Bond, applicable for contracts and subcontracts exceeding $150,000 – for projects that involve construction or rehabilitation work, the County requires the applicant provide the County with a Payment and Performance Bond in the full amount of the construction contract, naming the County as a dual obligee. For projects which involve construction or rehabilitation work on County-owned property, the County shall require, prior to the commencement of any work on the property, a payment and performance bond that meets the requirements set forth in Florida Statutes, Section 255.05, which bond shall be in the full amount of the construction contract covering all contractors, subcontractors, or materials providers downstream from the developer, including but not limited to the General Contractor, and naming the County as a dual obligee. In lieu of an applicant providing a Payment and Performance Bond, the County may, at its sole and absolute discretion, accept a Letter of Credit in an amount to be determined by the County. However, the County shall in no event be required to accept an alternative to the Payment and Performance Bond.
- Change of Scope of Work/Project – Material changes to the application after approval of the award of funds may result in the cancellation of award and recapture of awarded funds. Cancellation shall be at the sole discretion of PHCD if the appropriate requirement is not met, PHCD may determine that the application shall be considered non-responsive and shall be deemed ineligible. Review by the County Attorney’s Office (CAO) will be requested.
HOME TENANT-BASED RENTAL ASSISTANCE (HOME TBRA)
The purpose of the HOME TBRA is to provide individual households with rental assistance. The County has emphasized the needs of renters with special needs to assist them with housing costs. These special needs renters may be the chronic homeless, elderly, disabled residents, and/or children aging out of foster care in need of housing. In addition, tenant-based rental housing assistance may be provided to individuals and families who are homeless, at risk of becoming homeless, or threatened with economic displacement.
Eligible Participants
The participants for TBRA must be low-income. Therefore, their annual gross income cannot exceed 80 percent of the Area Median Income. At least 90 percent of the participants assisted must be at 60 percent of Area Median Income. Income must be verified annually. Preference will be given to participant(s) who are disabled, elderly and/or the chronic homeless as defined by HUD, and also includes children aging out of foster care.
The renter is issued approval to search for a unit. The amount and level of assistance shall be based on a sliding scale determined by household income. The renter is required to contribute 30 percent of their monthly-adjusted income towards the approved rent. PHCD has established a minimum household payment of $50 per month.
The rent subsidy provides assistance to individual households. The tenant is allowed to take the TBRA assistance to another residential site if they choose to move within the Miami-Dade County area.
Funding awarded for HOME TBRA services must be utilized by eligible program participants residing in Miami-Dade County.
Eligible Uses of Assistance
The HOME assistance in this RFA is for rental assistance, utility deposits, and security deposits. These are the only allowable expenses for the funds associated with this solicitation. Rents must be reasonable as set forth by HUD and should be documented as such. Utility deposits are limited to water, sewer, trash, electric and/or gas services. Utility deposits are for first time utility services and not for subsequent moves. The deposits should be reasonable and based on market practices. Security deposits may be the equivalent of no more than two months’ rent or less. Both utility and security deposits will only be paid once. Security deposits may be paid as a stand-alone; however, utility deposits must be paid in conjunction with the security deposits.
PHCD has adopted the Utility Company Estimate project-specific methodology, as per 26 CFR Part 1.42-10(b)(4)(B). PHCD will approve UAs based upon estimates obtained from a local utility company for each of the utilities used in the project. IRS regulations state that the estimate must obtained in writing and must be based on the estimated cost of that utility for a unit of similar size and construction for the geographic area in which the building containing the unit is located.
Eligible Units
Public or privately owned units can be used in the program. The units must meet Housing Quality Standards (HQS) prior to the commencement of any assistance. The participant must ensure that units are in compliance with lead-based paint regulations (24 CFR 35 Subpart M). The rents must be reasonable.
Ineligible Program Activities
HOME TBRA is not allowable for overnight or temporary shelters.
HOME TBRA cannot duplicate existing rental assistance programs that already reduce the tenant’s rent payment to 30 percent of their income, (i.e., Section 8, etc.).
HOME TBRA is not allowable for subsidizing particular rental projects.
Lease Requirements
The lease agreement between a tenant and an owner of rental housing assisted with HOME TBRA funds must be for not less than one (1) year, unless both the tenant and the owner agree otherwise. The lease must be free of prohibited provisions (24 CFR 92.253) and must incorporate the Violence Against Women (VAWA) lease addendum required under 24 CFR 92.359(e).
- VAWA: Applicant shall comply with the federal Violence Against Women Act, codified at 42 U.S.C. 13701-14040 (“VAWA”), which protects applicants, tenants, and program participants in federally funded programs from being evicted, denied housing assistance, or terminated from housing assistance based on acts of domestic violence, dating violence, sexual assault, or stalking against them, including the Final Rule adopted November 16, 2016, printed in Federal Register Vol. 81, No. 221, 80724-80824 (the “VAWA Final Rule”). VAWA protection is available to victims of domestic violence, dating violence, sexual assault, and stalking, regardless of sex, gender identity, or sexual orientation.
Tenant Selection
The selected applicant must have written Tenant Selection Policies and Procedures on how they select participants. These policies must be available for inspection by HUD, the County, or the public. The policies should describe the application process. It should spell out when applications are accepted and where they will be accepted. It should also speak to how the program will be marketed and the method of the application process (in person, by phone, or other). If the TBRA is to be used to assist homeless clients through a Rapid Re-Housing model then the selected applicants should describe how they will work with and link through the coordinated intake and assessment process, and referral mechanisms of the Continuum of Care.
Occupancy standards should be included in the policy along with a plan for landlord and participant outreach. The policy should speak to fair housing requirements as well as Americans with Disabilities Act and Section 504 compliance. The policy should also speak to participant compliance issues and the consequences of non-compliance, such as eviction or termination of assistance, along with any grievance requirements. The policy must also include a lease and rental subsidy portability statement.
Subsidy Limitations
The subsidy is limited to the difference between the payment standard that applies (in this case: 100 percent of the published Fair Market Rent (FMR)) and 30 percent of the participant’s monthly adjusted income. Tenant paid utilities must be subtracted from the gross rents provided to determine net rents, which are the maximum initial allowable rents.
HOME TBRA rental assistance with individual households may not exceed two (2) years. Contracts can be renewed, subject to availability of HOME funds.
Program Administration
The selected applicant is responsible for collecting, reviewing, and approving the dwelling lease assuring its compliance with state law and program regulations. An agreement must be executed with the owner agreeing to lease the property under HOME TBRA and abide by the program rules. The owner contract should run concurrent with the dwelling lease. Ongoing activities include lease renewals, review rent increases, recertify income, re-inspect the dwelling unit, and assure compliance with all program regulations. The selected applicant should also maintain a waiting list for program participants. This list should be available for inspection.
Program Design and Regulatory Citations
The HOME TBRA is designed to mimic the Section 8 Housing Choice Voucher Program (S8 HCV). General program information can be found in 24 CFR Part 5, (i.e., income and other eligibility issues). Program specific information can be found in 24 CFR Part 982 to include HQS and rent reasonableness. The HOME TBRA regulations can be found in 24 CFR Part 92. These regulations are intended to assist the applicant in providing a responsive application for consideration. The program can also be a stand-alone deposit assistance program that provides security and utility deposits to eligible families that are relocating.
Program Budget
The HOME TBRA budget should be based on actual costs within program guidelines. The housing costs are based on the payment standard using 100 percent of the current FMR. The applicant must allow for deposit expenses as well when preparing the budget. The family composition will determine the bedroom size and affect the budget. The deposits are offered as grants, but still must be accounted for when submitting a budget. Administrative expenses are not allowed, however, project delivery costs such as unit inspection cost and income eligibly determinations are allowed. Staff timecards or records are required for review for staff expenses and should be specific to HOME allowable expenses. Applicant is required to provide administrative support as an in-kind contribution.
HOME PROGRAM
COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (HOME CHDO)
- Introduction and BACKGROUND
The Community Housing Development Organization (CHDO) guidelines provide the policies and standards for the management and funding of CHDO operating funds by Miami-Dade Department of Public Housing and Community Development (PHCD). These policies and procedures are based on HOME Program regulations (24 CFR 92.208). It is the responsibility of the CHDO to understand and ensure compliance with these policies and procedures. It is the intent of these guidelines to create a consistent and equitable system by which CHDOs are identified and selected, and to build long-term relationships with the CHDOs.
The HOME Program is administered through the U. S. Department of Housing and Urban Development (HUD). Miami-Dade County, as a participating jurisdiction (PJ), receives funds under the HOME Program. HOME regulations require PJs to set-aside 15% of their HOME allocation for CHDOs, and awards up to 5% of the HOME Program allocation for CHDO Operating Support to build capacity that will result in additional affordable housing units. Each year, all organizations requesting CDBG or HOME funds from the County must submit an application which provides information concerning the organization, its corporate and financial structure, and a specific proposal for a program or project. Staff issues a Request for Applications (RFA) and accepts applications only once each calendar year. This is to allow staff sufficient time to review each proposal and make recommendations to the Board of County Commissioners, which allocates the available funds accordingly. CHDO applications are submitted each year with the applicant’s RFA even if the entity is already certified since re-certification is required on a yearly-basis.
- CHDO Definition, Certification, AND RE-CERTIFICATION
Definition:
CHDO is a private non-profit organization that has among its purposes the provision of decent housing that is affordable to low- and moderate-income persons as evidenced in its charter, articles of incorporation, resolutions, or by-laws. A CHDO may apply for funding in the capacity of a Developer, Owner, or Sponsor, but only CHDOs may apply for a HUD-mandated set-aside percentage of local HOME funds.
For further information, refer to 24 CFR Part 92.
Certification:
In order to receive CHDO funds from the County, a local housing organization must be formally certified by the PHCD at the time of application for operating funds and CHDO eligible housing projects. In order to be certified as a CHDO, a local housing organization must:
- Meet all of the CHDO certification requirements per 24 CFR Part 92.208;
- Enter into a Memorandum of Understanding (MOU) that states that the CHDO intends to use HOME CHDO set-aside funds to develop units of affordable housing within 24 months of the date of the agreement that specifies the expected uses for the funds; and
- PHCD will provide a certification/re-certification letter to each CHDO to confirm the organization’s CHDO status upon review and approval of the documents listed below.
If the organization is not recertified, it is not eligible to receive any funds and/or services reserved for CHDOs until the organization is able to prove that it still meets all of the criteria necessary to obtain CHDO certification.
III - Application Process And Funding Priorities:
- Application Process
PHCD will accept applications for CHDO Operating Support once a year with the Request For Application and will award CHDO Operating funds on an as-needed basis taking into consideration five (5) priorities:
- Representation in underserved areas;
- Response to community housing needs as identified by the Housing Needs Assessments in the FY 2020-2024 Consolidated Plan;
- Local Match provided;
- Established CHDOs that are continuing to add units to their portfolio; and
- Demonstrated capacity to complete the project(s).
Upon finalizing the RFA recommendations, the CHDO certification process is initiated for those agencies that are recommended for CHDO funding. Applicants are provided with a CHDO Qualifications checklist that outlines the CHDO criteria and references to the HUD regulations governing the process.
Staff reviews the documentation submitted to verify that all CHDO certification criteria are met then issues a favorable or not favorable recommendation to senior management.
Subsequently, staff recommendations are presented to senior management for review and signature of the certification/re-certification cover letter and certification/re-certification document.
Once signed, the certification/re-certification documents are mailed to the agencies and hard copies are kept in our central file with electronic copies saved on PHCD’s internal server.
Initiating the certification/re-certification process with the RFA ensures that re-certifications are completed every year and decreases the amount of paperwork submitted as some supportive documents such as the articles of incorporation and by-laws are required for compliance with the RFA guidelines. Prior to the release of HOME funds from the County, a written agreement must be executed with the applicant or CHDO. The agreement remains in effect during any period that the applicant or CHDO is operating a program or implementing a project in which HOME funds are being invested.
- Available Funding
- Up to 5 percent of the HOME Program allocation may be awarded for CHDO Operating Support to build capacity that will result in additional affordable housing units.
- HOME Program assistance for CHDO’s operating expenses in each fiscal year may not exceed $50,000 or 50 percent of the CHDO’s total annual operating expenses for that year, whichever is greater.
PHCD reserves the right to determine whether or not to fund HOME CHDO Operating support.
- Eligible uses of CHDO Operating Support Funds
Up to 5 percent of PHCD’s HOME allocation may be used to provide funds for CHDO operating assistance. To be eligible for CHDO operating assistance, the CHDO must submit a funding application for a CHDO-eligible project. The following uses of CHDO Operating Support funds are permitted (24 CFR Part 92.208):
- Salaries, wages, benefits, and other employee compensation;
- Training and travel, resulting in increased capacity;
- Administrative expenses;
- Operating expenses, including rent and utilities;
- Equipment, materials and supplies, including communication costs;
- Taxes and insurance; and
- Homebuyer education.
The purpose of CHDO operating assistance is to nurture successful CHDOs, PHCD will periodically evaluate the performance of any CHDO wishing to receive CHDO operating funds. No match is required for CHDO Operating funds. PHCD reserves the right to determine whether or not to fund HOME CHDO Operating support.
- Eligible and Ineligible Uses of CHDO Set-Aside Funds
The HOME requirements in 24 CFR Part 92.300 require PHCD to set aside at least 15 percent of its annual HOME allocation for projects owned, developed, or sponsored by CHDOs.
A certified CHDO must be an owner, developer, or sponsor of a HOME-eligible project to use CHDO set-aside funds. A CHDO may serve in one of these roles or in a combination of roles, such as being owner and developer.
- CHDO as Owner: As owner, the CHDO holds valid legal title or has a long-term leasehold investment to the property (99 year minimum). The CHDO may be an owner with one or more individuals, corporations, partnerships or other legal entities. However, the CHDO must be the managing general partner with effective control (decision-making authority) of the property.
Example: A CHDO may solely be the owner with another entity (for profit or not-for-profit) to act as a developer and construct new or rehabilitate existing building(s). After completion of the development, the CHDO will maintain ownership of the property.
- CHDO as Developer: A CHDO is a developer when the CHDO owns the property and develops the project or has contractual obligations to the property owner to develop the project. The CHDO may be both owner and developer of its own project.
- CHDO as Sponsor:
- Sponsoring Rental Housing
For HOME assisted rental housing, the CHDO may develop a project that it solely or partially owns and agrees to convey ownership to a second not-for-profit organization at a predetermined time prior to or during development or upon completion of the development of the project. The HOME funds are invested in the project owned by the CHDO.
The CHDO sponsor identifies the particular not-for-profit organization that will obtain ownership of the property prior to commitment of HOME funds.
The second not-for-profit will assume all HOME obligations (including repayment of loans and tenant and rent requirements) for the project from the CHDO at a specified time. If the property is not transferred to the not-for-profit organization, the CHDO sponsor will remain liable for the HOME obligations. The not-for-profit organization must be financially and legally separate from the CHDO sponsor. (The second not-for-profit may have been created by the CHDO, but nevertheless it is a separate entity from the CHDO.)
The CHDO must provide sufficient resources to the not-for-profit organization to ensure the development and long-term operation of project.
Example: A CHDO enters into a legally binding agreement with Eldercare, an existing not-for-profit organization experienced in providing enhanced housing services for the elderly. The CHDO agrees to purchase and rehabilitate a vacant 50-unit property and convey the property to Eldercare upon completion of the construction phase. Eldercare will assume responsibility for the long-term management of the project and for the fulfillment of all obligations and requirements associated with the use of HOME funds.
- Sponsoring Homebuyers:
For a HOME-assisted first-time homebuyers program, the CHDO owns and develops a property and transfers the title and the HOME loan obligations and resale requirements to a HOME-qualified first time homebuyer within a specified timeframe.
The HOME funds are invested in the property owned by the CHDO. The CHDO sponsor acquired and completes the rehabilitation or construction of the property. At completion of the rehabilitation or construction, the CHDO is required to sell (transfer) the property along with the HOME loan obligations to a first-time homebuyer. CHDO operating support will only be funded in connection with an application for a specific housing project.
- Eligible Activities: A CHDO acting as owner, sponsor or developer may use the CHDO set-aside for the following activities:
- Acquisition and/or rehabilitation of rental or homebuyer property;
- New construction of rental or homebuyer property; and
- Direct financial assistance to homebuyers of HOME-assisted property developed or sponsored by the CHDO.
CHDO set-aside HOME funds must be used during the construction or rehabilitation of the property.
- Ineligible CHDO Activities - Ineligible uses of the HOME CHDO set-aside are:
- Homeowner rehabilitation;
- Tenant-based rental assistance (TBRA); and
- Down payment and/or closing cost assistance to purchasers of housing not developed with HOME CHDO
5 - CHDO Proceeds
PHCD allows CHDOs to retain proceeds under a few conditions. To be eligible for CHDO proceeds retention, the CHDO must provide a written plan for the specific use of such funds with the initial CHDO application. PHCD will verify that such uses are strictly for HOME-eligible activities or other low- and moderate-income housing activities to include CHDO operations. PHCD will respond in writing to the written plan. Proceeds are funds resulting from:
- Permanent financing of a CHDO project used to pay off a CHDO financed construction loan;
- The sale of CHDO developed homeownership housing to a homeowner or a second non-profit; and
- Interest and principal payments from a loan to buyer of CHDO developed homeownership housing.
6 - CHDO Certification
Applicants are provided with the CHDO Qualifications Checklist that outlines the CHDO criteria utilized. Applicants must complete the CHDO application and submit requested documentation.
Certifications will only be evaluated during the FY 2022 RFA process.
APPLICANT INSTRUCTIONS
FOR THE ATTACHED APPLICATION, PHCD IS ONLY SOLICITING FY 2022 HOME APPLICATIONS FOR: HOME CHDO HOUSING SET-ASIDE, HOME CHDO OPERATING SUPPORT, HOMEOWNERSHIP REHABILITATION, AND HOME TENANT BASED RENTAL ASSISTANCE ACTIVITIES. PHCD IS NOT SOLICITING FY 2022 NON-CHDO HOME APPLICATIONS FOR: ACQUISITION, NEW CONSTRUCTION OR REHABILITATION OF AFFORDABLE RENTAL HOUSING, OR PRE-DEVELOPMENT. APPLICANTS INTERESTED IN APPLYING FOR THESE ACTIVITIES MAY SUBMIT APPLICATIONS IN THE FY 2022 SHIP/HOME/SURTAX MULTIFAMILY RFA. |
- Applicant must select only one (1) funding category.
- PHCD may determine that any deficient application is non-responsive. Review by the County Attorney’s Office (CAO) will be requested.
- All awards will be allocated the full amount of requested funding until available funds are exhausted.
- Applications must score a minimum of 70 points, inclusive of bonus points, to be recommended for funding.
- If a tiebreaker is needed during scoring to determine project ranking, the first tiebreaker will be “Ability to Proceed.” This section of the application will be ranked first. If an additional tiebreaker is needed, those projects with higher points in leveraging, i.e., projects that require less total County funding per unit, will be ranked higher.
- All applicants must be submitted in the legal name of the corporation or entity that is applying for funding. The applicant must be an active entity registered with the Florida Division of Corporations (http://www.sunbiz.org).
- All applicants must provide an Employer Identification Number (EIN/Federal Identification Number) and a Data Universal Numbering System or The D-U-N-S® Number. For more information about obtaining a DUNS Number, visit: http://fedgov.dnb.com/webform. The D-U-N-S® Number is a unique nine-digit identification number that remains with an organization even if the organization is no longer in operation. The D-U-N-S® Number was incorporated into the Federal Acquisition Regulation (FAR) in April 1998.
- Applicants are encouraged to coordinate and collaborate with other organizations in carrying out programs funded under this RFA. As part of the proposal, a written agreement specifying the role of each organization in the collaborative arrangement must be included and must be executed and signed by each partner organization.
- Miami-Dade County will not fund an entity or an affiliate with defaulted loans, debarment actions, or any other legal encumbrances regardless of the merits of the submitted application. Miami-Dade County will not fund entities listed in the Federal Excluded Parties List System, as those entities are prohibited from receiving federal contracts or federally-approved subcontracts, and from certain types of federal financial and non-financial assistance and benefits. Miami-Dade County will not fund entities on the County’s delinquent registry.
- Miami-Dade County reserves the right to require and participate in the creation of partnerships to ensure project viability and/or enhance the effectiveness of program delivery, should the County determine such action is in the best interest of the County and the community being served.
- All projects or activities awarded HOME funds that fail to complete the activity within four years shall be subject to the recapture of funds. Federal requirements per HOME are that activities must be completed within four years of award.
- Applicants applying for HOME, HOME CHDO Operating Support, or HOME CHDO Set-Aside funds must complete the Housing application forms designated in the Housing Submission Checklist.
- All awards will be evidenced by a Conditional Loan Commitment, Memorandum of Understanding (MOU), or interlocal/interdepartmental agreement, as well as appropriate security instruments and loan documents.
- All housing developments shall adhere to housing construction standards as outlined by HUD, Miami-Dade County, and local/municipal codes.
- Construction applications require intended use of property with supporting documentation to include, but not be limited to:
- Current color photos of the property including roof and interior;
- Completed 40-year certification (most recent signed and sealed);
- Completed architectural/engineering plans;
- Approved building and construction permit(s) from the respective municipality and/or county for the proposed project; and
- Property must be free of any Building Code violations (if existing violations exist, applicant must provide a copy of the violations from the municipality and plans must address the needed corrections).
- Grantee may use HOME funds to construct/rehabilitate housing under the latest provisions of the Uniform Relocation Act (24 CFR Part 42, Subpart I). This is housing that the grantee has determined must be constructed/rehabbed in order to provide suitable replacement housing for persons displaced by a contemplated HOME project, subject to the Uniform Relocation Act (URA), and where the project is prevented from proceeding because the required replacement housing is not available otherwise.
- If construction/rehabilitation involves occupied units, contact information must be included for occupied units (tenant’s name and phone number(s)). Requesting entity must provide a written correspondence to tenants explaining the potential scope of work to be performed within occupied units and provide a hard copy to PHCD pursuant to URA guidelines.
- Field visits will be conducted on behalf of PHCD to evaluate the viability and/or feasibility of the project site with the proposed scope of work and requested funds.
- PHCD Compliance Requirement: PHCD will adhere to compliance guidelines pursuant to Resolution No. R-630-13 approved by the Miami-Dade County Board of County Commissioners on July 16, 2013. Copies of the resolution, Due Diligence Checklist, and Affidavits are located at miamidade.gov/housing/. Agencies not clearing the Due Diligence Report review will not be recommended to the Board for funding. (Refer to Attachment).
- Accessibility, Universal Design and Visibility Features:
All units of the proposed Development must meet all federal requirements and state building code requirements, including the following:
- Florida Accessibility Code for Building Construction as adopted pursuant to Section 553.503, Florida Statutes;
- The Fair Housing Act as implemented by 24 CFR Part 100;
- Section 504 of the Rehabilitation Act of 1973; and
- Titles II and III of the Americans with Disabilities Act of 1990 as implemented by 28 CFR Part 35, incorporating the most recent amendments, regulations and rules.
- If during the application process or during the loan closing process, an entity associated with the project has been convicted of a criminal act (in connection with any County program), PHCD has the discretion to rule the project ineligible and any funds awarded and/or expended shall be recaptured.
- Developers are encouraged to include loan-closing costs in the requested award amount. It is anticipated that these costs will be absorbed into the project costs.
- Miami-Dade County Affordable Housing Set Aside Incentive for Disabled Households. Ordinance No. 14-56. Developers interested in building units that are more accessible may be awarded extra points on applications. In order to receive bonus points, the Ordinance requirement must be exceeded. The total funding awarded will not be affected.
- Miami-Dade County Notice of Availability of Affordable Rental and Homeownership Opportunities. Resolution No. R-34-15. Developers are required to provide written notice to Miami-Dade County of the availability of affordable rental or homeownership opportunities. Developers are required to advertise the availability of affordable rental or homeownership opportunities in general circulation newspapers.
- Conflict of Interest - The general rule is that no persons (defined as any person who is an employee, agent, consultant, officer, or elected official or appointed official of the recipient, or of any designated public agencies, or of sub-recipients that are receiving funds under this part) who exercise or have exercised any functions or responsibilities with respect to HOME activities assisted under this part, or who are in a position to participate in a decision making process or gain inside information with regard to such activities, may obtain a financial interest or benefit from a HOME-assisted activity, or have a financial interest in any contract, subcontract, or agreement with respect to a HOME-assisted activity, or with respect to the proceeds of the HOME-assisted activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for one year thereafter. The complete Code of Federal Regulations (CFR) can be viewed at http://www.ecfr.gov, 24.CFR.570.611.
- Environmental Review: Environmental review forms must be completed in their entirety and submitted with the FY 2022 RFA application(s). Applicant will be responsible for costs incurred in completing the environmental review process, i.e., public notices, Miami-Dade Department of Regulatory and Economic Resources environmental site assessment analyses, etc. All project related environmental expenses are eligible for financial reimbursement upon receipt of an award for HOME funding. The submission of Environmental Site Assessment reports (Phase I and/or II) are required. These reports must be submitted electronically in ZoomGrants. Refer to Attachment and submit the form.
- Applicants awarded federal funds are subject to provisions of the Davis-Bacon Act and HUD Section 3 requirements.
- The Davis-Bacon Act is triggered with the allocation of HOME funds for 12 or more HOME-assisted units. It requires that workers receive no less than the prevailing wages being paid for similar work in the same area. Davis-Bacon wage rates can fluctuate based on economic conditions, and the applicable rate may not be known until time of bidding. Proposers are encouraged to build in contingencies and general market conditions to their contracts to account for this possibility.
- The Developer shall ensure that its contractors and their subcontractors are classifying workers properly for Davis-Bacon and Internal Revenue Code purposes and that they maintain proper documentation to support worker classification. In reviewing certified payrolls, the County will be alert to anomalies and consult with federal agencies such as the Internal Revenue Service, Department of Labor, and Department of Housing and Urban Development.
- The Developer shall ensure compliance with Ordinance 14-26, the Ordinance amends the Residents First Training and Employment Program to require contractors on construction projects over $1 million to submit a Responsible Contractor Affidavit; to provide the OSHA 10 Hour Safety Program training to all persons employed by the contractor; and achieve an aspirational goal of 51 percent of the local workforce. Ordinance 14-26 provisions apply only to construction projects over $1 million for public buildings, public works, or projects on county owned lands.
- Pursuant to the terms of Section 17-02 of the Code of Miami-Dade County, any entity that has received loans for affordable housing and repays those loans in full before the maturity date, may upon the approval of the Board of County Commissioners, have those funds re-loaned to it for its other eligible affordable housing projects without the need to compete again for those funds.