HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME)

APPLICATION INSTRUCTIONS

1. INTRODUCTION:

The City of Hartford is accepting proposals for financing acquisition and/or rehabilitation of residential properties for the purpose of creating housing units that will be affordable to low income persons/families.

Funds will be made available as loans to eligible property owners, profit and non-profit agencies and Community Housing Development Organizations (CHDOs) under the HOME Program.

The evaluation of proposals will be made by a review committee with recommendations transmitted to the Court of Common Council for its approval. Priority will be given to proposals that provide homeownership opportunities.

Preference will be given to those proposals that include a homeownership component, reduce existing density through demolition-reconfiguration etc., and provide adequate parking and open space.

Additional priority will be given to projects which support comprehensive and coordinated community development efforts.

Proposals must meet the criteria as set forth in the City’s Consolidated Plan of Development.

2. APPLICATION PROCEDURES:

Applicants are required to respond to all application requirements, and to fully complete all forms supplied.

Applicant must submit one (1) signed original and four (4) copies of the proposal.

Applications must include a letter of transmittal stating that applicant will, if approved for funding, fully comply with all HOME Program Requirements as established by HUD.

Applications are to be addressed to:

     Director , Department of Housing and Community Development
     City of Hartford
     250 Constitution Plaza
     Hartford CT 06103

Minority Business Enterprises (MBE's) and Women Business Enterprises (WBE's) are encouraged to participate in this process.

 ALL BORROWERS OF HOME PROGRAM FUNDS MUST COMPLY WITH THE MARCH 11, 1996 COURT OF COMMON COUNCIL RESOLUTION WHICH PROHIBITS THE CITY FROM CONDUCTING BUSINESS WITH AN ENTITY OWNING OR CONTROLLING PROPERTY WHICH IS DELINQUENT IN ITS TAXES, LOANS, FINES, FEES OR OTHER FUNDS OWED TO THE CITY, WHETHER SUCH OWNER IS DELINQUENT AS A CORPORATION OR CORPORATE STOCKHOLDER WITH ONE THIRD OR GREATER INTEREST IN THE CORPORATION, PART OR WHOLE OF A PARTNERSHIP OR AS AN INDIVIDUAL. A COPY OF THE 3-11-96 RESOLUTION IS INCLUDED AS PART OF THIS APPLICATION AS ATTACHMENT (A).

3. QUESTIONS:

Technical questions regarding the application should be directed to the Department of Housing and Community Development:  860 757-9005.

4. RESTRICTIONS GOVERNING THE USE OF FUNDS:

The following represents a synopsis of some of the more significant restrictions governing the use of City Housing funds, and should not be construed as a complete list of the program restrictions. A list of attachments and accompanying materials are available from the Department of Housing & Community Development upon request.

    A. Any rehabilitation undertaken utilizing City funds must meet, at a minimum, City of Hartford and State of Connecticut basic building codes, any existing rehabilitation standards, zoning ordinances, HUD Housing Quality Standards, and the Model Energy Code.

NOTE: Generally, the City of Hartford will not, finance 100% of a project's costs with HOME program funding. Applicants should demonstrate their ability to leverage other sources of financing. The present program leveraging ratio averages approximately $6.00 of private funding for every $1.00 of HOME Program funding.

    B. Home Program Income And Rent Restrictions:

The majority of funding available is under the HOME Program. Rents under this program are strictly controlled. The HOME Program requires that "100%" of the HOME funds be used to benefit low and very low income households.

There are two HOME rents established for projects:

High HOME Rents: 80% of HOME-assisted rental units must have rents that are the lesser of the Section 8 Fair Market Rents (FMRs) or area wide exception rents for existing housing minus tenant paid utilities, or rents that are 30% of adjusted income for households at 65% of median income minus tenant-paid utilities.

The maximum allowable HOME rents must be reduced if the tenant pays for utilities. 

The rent and income targeting requirements will be enforced by deed restrictions.

    C. Occupancy of HOME-Assisted Units:

At least 20% of the HOME-assisted rental units must be occupied by families who have annual incomes that are 50% or less of median income. These very low income tenants must occupy units with rents no greater than the Low HOME rents.

The balance of the units may be occupied by any family with annual incomes less than 80% of median. Such units must rent for no more than the High Home rents.

    D. Terms of Affordability:

The HOME Program requires that for assisted rental housing, 100% of the HOME-assisted units must remain affordable for a fixed period of five to twenty years, depending upon the type of project, and the average amount of HOME funds invested per unit.

The terms of affordability will be enforced by deed restrictions.

    E. Relocation:

If the property is currently occupied, the Borrower will be required to provide relocation assistance as provided under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 as amended. The Borrower may also be required to provide relocation assistance under Section 104(d).

A sample relocation plan and a booklet entitled "Relocation Assistance to Tenants Displaced From Their Homes" can be obtained from the Department of Human Services (860 543-8860) 

    F. Monitoring and Record Keeping Requirements: The owner/developer will be required to enter into a written loan agreement with the City of Hartford which will detail the monitoring and record keeping requirements of the HOME Program. A HUD Project Completion Report must be prepared by the Borrower and submitted to the City on an annual basis for term of the loan agreement.

In addition, City Relocation staff will monitor all relocation files as required.

    G. Closing Document Requirements:

Once the HOME Loan has been approved by the Court of Common Council, the Owner/Borrower will be required to provide the City of Hartford with those items described in the closing checklist which is included as part of this application as Attachment F.

5. APPLICATION PROCESS:

The selection of award recipients will be based on a two-step application process that focuses on key criteria that measure the need, merit, and soundness of each proposal.

The first step in the application process involves the preparation and submission of the Home Program Application. Applications will be accepted on an ongoing basis.

The second step involves providing more detailed information on the proposed project.

6. EVALUATION PROCESS/SELECTION FACTORS:

Each proposal will be carefully reviewed and evaluated by the staff of the Department of Housing and Community Development.

Staff will compare each proposal against the established minimum threshold criteria and general evaluation criteria described on pages 6 through 9 of these instructions. Once the proposal has been evaluated staff will discuss the merits of each proposal and will determine whether or not the proposal will be recommended for funding.

Should the decision be made to fund the proposal, staff will then make their funding recommendations to the Director of Housing and Community Development who will, in turn, provide the recommendations of the Department of Housing and Community Development to the City Manager for submission to the Court of Common Council. The City Council has the final decision-making authority for the allocation of HOME Program funds.

7. EVALUATION CRITERIA:

THE FOLLOWING ELEVEN (11) CRITERIA GENERALLY REPRESENT THE HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM MINIMUM THRESHOLD CRITERIA REQUIRED FOR APPLICATION PROCESSING

PROPOSALS THAT DO NOT MEET THESE CRITERIA GENERALLY WILL NOT BE CONSIDERED FOR FURTHER PROCESSING

1. Does the applicant presently have site control?

    Yes No

2. Is the property(ies) currently vacant?

    Yes No

If yes, is the property part of an overall plan of development.

    Yes No

3. Are the hard construction costs realistic?

    Yes No

Explain:

4. Are the soft costs realistic?

    Yes No

Explain:

5. Does the Proposal include realistic operating assumptions?

    Yes No

Explain:

6. Is there sufficient Operating Income to pay expenses including debt?

    Yes No

Explain:

7. Has the applicant previously demonstrated that they have successfully completed similar projects?

    Yes No

8. Is the proposed use of funds eligible under the Home Investment Partnerships Program Final Rule 24 CFR Part 92 dated September 16, 1996.

    Yes No

(If no, indicate the reason why?)

9. Has the applicant demonstrated successfully that they have made every effort to obtain funding from other non-Federal sources?

    Yes No

10. Is the applicant current on property taxes for property(ies) they presently own or in which they have any interest?

Yes No

If no, does the applicant have an approved payment plan with the City’s Tax Collector?

    Yes No

11. Is the applicant current on loan payments to the City?

    Yes No

IN ADDITION TO GENERALLY MEETING THE MINIMUM ELEVEN (11) THRESHOLD CRITERIA, EACH PROPOSAL FOR HOME FUNDING WILL BE EVALUATED BASED UPON THE FOLLOWING CRITERIA:

    1. Does the proposal provide Homeownership opportunities?

    Yes No

    2. Does the Proposal contain rental housing units?

    Yes No

    3. Has the applicant responded to all the Application requirements?

    Yes No

    4. Is the level of rehabilitation proposed of a substantial nature?

    Yes No

    5. Are the HOME Program funds being utilized for hard construction costs?

    Yes No

    6. Are the HOME Program funds being utilized for soft costs?

    Yes No

    7. Does the Proposal involve new construction?

    Yes No

    8. Is the community opposed to the project.

    Yes No

    9. Does the proposal provide for a reduction in the existing density?

    Yes No

    10. Does the proposal provide for reconfiguration that results in larger Housing units?

    Yes No

    11. Is the Application generally consistent with the City’s approved Housing Policy?

    Yes No

(If no, indicate the reason why.)

12. Does the proposal provide adequate open space and sufficient parking?

    Yes No

Explain:

(Example: Has 1.5 parking spaces per unit.)

    13. Are there any concerns regarding the applicant that might have a bearing on the successful completion of the project.

    Yes No

NOTE: The City of Hartford reserves the right to modify this application at any time at its discretion or in accordance with regulatory changes that occur in the HOME Investment Partnerships Program.

THE CITY OF HARTFORD RESERVES THE RIGHT TO REJECT ANY AND ALL PROPOSALS.

MR-96306

Attachment F

FM-95148 - 10/30/96

Attachment G 
DEFINITION OF ADAPTABLE AND ACCESSIBLE HOUSING

What is Accessible?

Housing designed and constructed as per State Basic Building Code Standards to provide physical accessibility to person(s) with mobility impairments and who use mobility aids such as wheelchairs, canes, walkers and/or crutches or braces. Included in this definition are also the provisions of the State of Connecticut Basic Building Code related to meeting the needs of persons who have visual and/or hearing impairments. The standards must be applied in concert with the building code when the construction or substantial rehabilitation include more than 24 units of housing.

    NOTE: If the rehabilitation or new construction is to be financed with State of Connecticut funds, the requirements for accessibility change to 10% of the project for rehabilitation or new construction in excess of 10 units.

What is Adaptability?

Adaptability means the capability by design of certain building spaces and elements, to be altered or added to so as to accommodate the needs of persons with and without disabilities, or to accommodate the needs of persons with different types of degrees of disability.

Minimum design criteria that should be in place for a building or structure to be considered adaptable?

1) entrance at grade or with ramp

2) wide doorways - 36" minimum clear

3) wide hallways - 48" minimum clear

4) 5' turning radius room in the kitchen

5) 5' turning radius room in the bathroom

6) extra blocking (studding) in bathroom walls for grab bars.

    1. Landlords can deduct up to $35,000 a year for renovations that provide physical accessibility as per IRS Code Section 190.

    2. Allows tenant who sustains a disability through disease or trauma and which disability affects a persons mobility to remain in his/her current unit. In most cases, renovation, when necessary, can be done at a comparatively small cost.

    3. Allows landlords to keep the same tenant without having to repaint, fix up and readvertise the unit.