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RESOLUTION NO. 8988
A RESOLUTION APPROVING NEIGHBORHOOD HOUSING
SERVICES OF PUEBLO, INC. (NHS) AS A COMMUNITY
HOUSING DEVELOPMENT ORGANIZATION FOR THE
DEVELOPMENT OF 79 SINGLE FAMILY HOUSING UNITS TO
BE BUILT IN THE HYDE PARK NEIGHBORHOOD IN
FURTHERANCE OF THE CITY OF PUEBLO CONSOLIDATED
PLAN, AUTHORIZING EXPENDITURE OF HOME FUNDS FOR
SITE CONTROL INCLUDING ACQUISITION OF REAL
PROPERTY, AND RESERVING ADDITIONAL HOME FUNDS
SUBJECT TO CONDITIONS AND REQUIREMENTS
WHEREAS, the City of Pueblo, pursuant to the HOME Investment Partnerships Act (the
"Act ") the Cranston - Gonzales National Affordable Housing Act; 42 U.S.C. §12701 et seq.; and
implementing regulations under 24 CFR, Part 92, has been a recipient of HOME federal fiends under
the HOME program since 1992; and
WHEREAS, in accordance with the provisions of the Act and 24 CFR §92.205(a)(2),
92.206(c), 92.300, and 92.301, a portion of such financial assistance, subject to appropriation by the
City Council, may be made available to non -profit community housing development organizations for
the purpose of carrying out specific elements of the City of Pueblo's housing strategy, neighborhood
revitalization and the expansion of the availability of affordable housing for low and moderate income
Pueblo residents; and
WHEREAS, at the City Council work session held on April 3, 2000, Neighborhood Housing
Services of Pueblo, Inc., ( "NHS ") submitted a proposal to develop a housing project with federal
HOME assistance from the City of Pueblo, with such fields to be used for site control, including site
acquisition, and infrastructure development costs for a new single family housing subdivision of 79
affordable housing units in the Hyde Park Neighborhood as described further in the attached exhibits
(the "Project "); and
WHEREAS, NHS has represented to City that it is a duly qualified community housing
development organization which is eligible under the Act and implementing regulations to undertake
approved elements of the City's (and Consortiums's) consolidated housing plan; and
WHEREAS, an advance of HOME funds in the amount of $123,000 is both necessary and
required by NHS in order for it to acquire site control, including land acquisition, for the Project; and
WHEREAS, City's Director of Housing and Community Development has advised the
Council that the aforestated advance of HOME funds to NHS is an authorized and eligible
expenditure of HOME funds under applicable law and regulations; and
WHEREAS, subject to the future availability of HOME funds, and further subject to NHS
entering into a definitive Affordable Housing Development Agreement with the City upon terms and
conditions acceptable to the City Council, including provisions securing performance by NHS, an
additional investment of an amount not to exceed $600,000 of HOME funds from the HOME
Consortium which includes the City of Pueblo will be necessary to undertake and complete the
Project, and to thereby provide affording housing; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1
Based upon the representations made by NHS, the City Council of the City of Pueblo finds
that NHS is a qualified Community Housing Development Organization (CHDO), as defined under
the HOME federal regulations at 24 CFR §92.2, and conditionally approves its proposed Project for
HOME assistance, in accordance with this Resolution.
SECTION 2
The City Council hereby approves and authorizes the immediate expenditure of federal
HOME funds otherwise available to the City, in the amount of $123,000, and disbursement of same
to or for the use and benefit of NHS for the purpose of acquiring site control for the Project,
including land acquisition. The advance of such funds shall be conditioned upon NHS executing a
promissory note for the amount of the advance, which shall be made payable upon demand and
secured by a lien upon the land acquired for the Project. Upon and subject to the City and NHS
executing a definitive Affordable Housing Development Agreement as provided in Section 3 of this
Resolution, the advance may be refinanced in accordance with the terms provided in said Affordable
Housing Development Agreement.
SECTION 3
Subject to NHS and City entering into a definitive Affordable Housing Development
-2-
Agreement approved by the City Council setting forth the terms and conditions for investment of
additional HOME funds in the Project, including provisions designed to assure that the expenditure
of HOME funds complies with the Act and implementing federal regulations, and subject to future
availability of sufficient HOME funds in federal fiscal years 2000, 2001 and 2002, the City Council
hereby reserves an additional amount not to exceed $600,000 of such HOME funds as may become
available to the City and to the Consortium of which the City is a member, from and out of the
CHDO "set- aside" as provided by 24 CFR §300(a)(1), for eligible expenditures upon the Project
consisting of infrastructure development.
C
ATTEST:
City 04
INTRODUCED: April 24, 2000
Al Gurule
Councilperson
APP OVED:
� a
resident of the City Council
-3-
A Resolution Approving Neighborhood Housing
Services As A Community Housing Development
Organization For The Development of 79 Single
Family Housing Units To Be Built In The Hyde
Park Neighborhood In Furtherance of the City of
Pueblo Consolidated Plan And To Provide
Funding For the Acquisition of the Property and
Reservation of Funds Pending Agreement On An
Affordable Housing Development Agreement
Department: Housing & Community Development Date: April 18, 2000
COUNCIL BACKGROUND PAPER
SUBJECT: Recommendation to approve funding for the site acquisition of 18 acres of land and the
reservation of HOME federal funds toward the development of 79 units of affordable housing.
INTRODUCTION
This resolution presents recommendations regarding the selection of the NHS for the development
of 79 units of affordable housing at 18th and Lambert in the Hyde Park neighborhood. The
resolution recommends that the City Council:
l) Authorize staff to prepare an Affordable Housing Development Agreement with NHS to include
infrastructure improvements for the development and construction of 79 single- family housing
units;
2) Authorize the appropriation of funds for the Acquisition of the project site and reserve additional
funds toward the improvements of the infrastructure.
BACKGROUND
NHS currently is under contract to purchase title to 18 acres of vacant property located north of
18th street between Lambert and Hyde Park school in the Hyde Park neighborhood. The
development of 79 single- family housing units will take place on the 18 -acre area.
On April 3, 2000, at the City Council Work Session, the project was summarized and NHS stated
the need to acquire the project site. After acquisition, the city will enter an Affordable Housing
Development Agreement with the NHS. In addition, the City will need to reserve additional funds
to assist the project during the construction of the infrastructure and to develop the site with the
city's cost portion to be $200,000 per year for three years.
The acquisition of the site is now due because of the current contract with the landowner and the
need for the availability of site ownership. The acquisition portion must move ahead at a faster pace
than the proposed development cost.
The second phase is actual development of infrastructure and construction of housing units. The
staff is attaching HOME Affordable Housing application packet with information prepared for the
project by NHS.
DEVELOPER / OWNER / MANAGEMENT QUALIFICATIONS
The City stated criteria for selection of NHS included the following:
Demonstrated ability and experience of NHS to managing partnerships, as a non-
profit general partner.
2. Demonstrated ability and experience of the applicant in managing affordable
housing.
3. Demonstrated ability and experience of the applicant in securing affordable
housing financing.
4. Financial capacity of NHS as project owner including the past financial history
and current outlook.
5. Ability of the applicant to successfully manage the development and partnership
within the financial package outlined in an agreement.
6. Ability of the applicant to successfully complete the project in an acceptable time
frame outlined.
Neighborhood Housing Services of America
City Staff met with NHS to solicit them as a new development team to proceed with the project,
combine the necessary financing, and assume the ownership responsibilities upon completion.
After much consideration, the staff is recommending the development team of NHS. They provide
the combined expertise of an experienced development and construction background along with the
strength of a nationwide nonprofit developer and owner of affordable housing.
NHS has the financial capacity as determined from the attached financial statements and annual
report exhibiting prudent levels of reserves and sound fiscal management. In addition, they possess
a strong Board of Directors committed to neighborhood revitalization in the Pueblo community.
NHS has extensive single- family construction management experience. NHS specifically has more
than twenty years of project and property management experience in affordable housing, including
a computerized monthly financial reports generated from their local office for each of its properties
city wide. This local approach, combined with the ability to have on -site project oversight, ensures
a well maintained and efficiently project completion timeframe. NHS will determine the specific
allocation of property management responsibilities.
FINANCIALBUDGETARY IMPACT
Initially the city will provide $123,000 for site acquisition and reserved $200,000 in HOME funds
for 3 years to fully development the project. See attached financial reports, Development Cost, and
Sources of Funds. All funds will come form HOME federal housing dollars. CDBG funds will
also be used as submitted for the year 2000 projects list for 18` street infrastructure improvments
RECOMMENDATIONS
It is recommended that the City Council:
1. Designate NHS as the developer for 79 new units of affordable housing at 18th and Lambert and
authorize the completion of an Affordable Housing Development Agreement along the lines
outlined in this report, with NHS, to develop 79 units of affordable housing.
Attachments:
Exhibit 1 Feasibility Study (Northstar )
Exhibit 2 HOME Affordable Housing Program Application
Exhibit 3 Homeownership Projects Worksheet: (Includes Dev Cost & Sources)
EXHIBIT 2
HOME AFFORDABLE HOUSING PROGRAM
APPLICATION
2000
APPF.Tf AN'T fXVnlQNTATf0N
Applicant: App�icaoE
Ne k'hbo 1•lloot] 11otls 1 Ill '\ I ('C +� o
Mailing Address:
825 N. Greenwood Avenue, Pueblo, CO 81003
Project Address:
State:
Zip Code:
18th & Lambert - See Legal Description
CO
81003
Contact Person:
Title:
Lionel A. Trujillo
Executive Director
Telephone NurnNcr:
Fax:
(719) 544 -8078
(719) 544 -0271
i'O�.VNF.RICP>nAifi(1R i�F(IRItTATinR1I
Owner'Sponsor
Nei3Zhborhood Housin Services of Pueblo Inc.
Mailing Address:
825 N. Greenwood Avenue Pueblo CO 81003
Project Address:
State:
Zip Code:
18th 4 Lambert - See Legal Description
CO
81003
Contact Person:
Title:
Lionel A. Trujillo
Executive Director
Telephone Number:
Fax:
(719) 544 -8078
719 544 -0271
PROJ INFOR:so. -y m lrlc h :na u)!.t. ,;!J1 Hem 'I mAii'Ne",
Project Name:
To Be Determined - Hyde Park
Subdivision
Address:
18th & Lambert
MSA:
County:
Pueblo
Project Address
State:
Zip Coda:
18th & Lambert
CO
1
Project Characteristics (check all that apply)
ON4ner- occupied
kJ Single Family
Purchase
❑ Major rehabilitation
❑ Renter- occupied
❑ Multi- Family
Nc%� construction
D' Minor rehabilitation
Census Tract (s}'Block Numb ring Area (s):
Rehab:'New Construction
cost per unit:
29.01
S61,611.00
HUD y(adian Income for the Pueblo Counh or MSA:
Is Project in Pueblo NeicJttwrh,wd
Strat.gv Area (it applirahlc):
S37,500
Yes
1-1
:Application Pueblo 20001101IF
I. OWNER/SPONSOR INFORMATION - Exhibit L
Attach, as Exhibit I, a written description of the lead sponsor's record of performance, qualifications, and capacity
to carry- out its responsibilities for this development. List all other sponsor(s) and consultants.
Does the applicant have any past or present financial or ownership interest in the project including o«ncrship
interest in the property being utilized for the project?
K Yes ❑ No If yes, also describe in Exhibit I. See attached
II. PROJECT IiYFORMATTON - Exhibit II,
Please provide a narrative description of the project. Attach as Exhibit II.
1JL TYPE OF SUBSIDY REQUESTED - Exhibit III
Complete the information applicable to the type of HOME funding requested and attach as Exhibit III. This
Should be consistent with the terms and conditions reflected in the sources of funds provided in response to the
feasibility component of the application. Please note that the city of Pueblo can at its discretion propose the
provision of funding as some other funding mechanism than requested. Please be advised that funding is
dependent on the city of Pueblo receiving funding from the U.S. Department of Housing and Urban Development.
A.
k1 Grant
❑ Loan
❑ Deferred Loan: (Provide the details of the terms and conditions of the proposed deferred loan)
❑ Other : (Provide the details of the terms and conditions of the proposed use of HOME funds)
B. USE OF HOME FUNDS (Exhibit III -B)
Specify how the HOME- funds will be used and attach as Exhibit III -B.
❑ Gap financing
❑Construction financing
❑Rehabilitation financing
❑Do«n payment /Closing Cost Assistance
g7 Acquisition / Pre - Development
❑ Interest rate buydown
❑Principal reduction
El Direct subsidy" loan (Principal and Interest
must be repaid directlt to City ofPueblo)
I- Describe why HOME funds are needed for this project and when the HOME funds will be put into the project
(at acquisition, during constriction or rehabilitation, at permanent loan closing, etc.)
See attached
2 -Does the project include any commercial space in conjunction with the proposed housing? a Yes ❑ No
(If yes, provide a statement that HOME funds «ill not be used for any commercial portion of project including
oa -site day care facilities, congregate meal facilities, office space, etc.)
Statement regarding commercial space:
Neighborhood Housing Services of Pueblo, Inc. will not utilize HOME
funds for the commercial portion of this project.
1>
Application Pueblo 2000 1101f
C. ABILITY OF THE PROJECT TO BEGIN WITHIN TWELVE MONTHS (Exhibit III -C)
The HOME subsidy must be likely to be drawn down by the project or used by the project to procure other
financing commitments within 12 months of the date of application approval. Funds for approved projects are
subject to reallocation if not used within twelve months of application approval.
Does the sponsor /developer have site control? 1K Yes ❑ No
Is the project ready to begin construction or issue mortgages at this time? El Yes X No
Is allocation of LIHTC in hand (if applicable) N/A ❑ Yes ❑ No
Estimated project completion date: Phase 1 co mpleted 4/2S/2001
First estimated date when HOME funds will be drawn: 4/25/2000
Will the project be ready or able to begin construction or issue mortgages
two months after the application deadline? ❑ Yes 1X No
If otwhat e s tionarcommitments are needed and what is e ticn ted date f commitment? infrastructure.
Lots will be available for purchase within 12 months.
Project Benchmark Dates:
Start: 4/25/2000
Full Occupancy: April 2003
Constriction Completion:
Final AHP Draw: April 2003
4/25/2003
IY, FEASIBILITY AND ISEED FOR. SUBSIDY -- Exhibit IV
HOME regulations require that the city of Pueblo allocate to a project only the amount of HOME subsidy that
the city of Pueblo determines necessary for the financial feasibility of the project. This determination is made
solely at the city of Pueblo's discretion and is not representative of the actual feasibility of the project. Applications
must include the following information in the format supplied by the city of Pueblo (or a format approved by the
City) for the type of project requested. These items are not optional. Failure to complete this information in the
appropriate format will result in the application being eliminated from consideration in this round.
A. • Eligible Projects - Attach as Exhibit IV -A
HOME eligible projects must meet one of the two broad purposes of the program. Indicate which categon' applies
to this request.
Owner - occupied units, including condominiums and cooperative housing for households at or below 80%
of the area median income.
Ei Rental housing, including transitional housing for homeless households and mutual housing, where at
least 20% of the units are targeted to households at or below 50% of area median income.
16
Application Pueblo 2000IfOVE
Rental Projects — Not Applicable
Rental projects must submit the following; Rental Housing Worksheet, as Exhibit IV -A
1. Operating Pro Forma (pages 1 -5)
2. Development Costs
3. Permanent Financing Sources
4. Depreciation and Tax Credits (if applicable)
5. 10 Year Pro forma
All rental projects must complete and submit a pro forma and Rental Housing Worksheet in the correct format.
Provide the following information based upon the pro forma and sources and uses data Include this information as
part of Exhibit W -A
If project involves Low- Income Housing Tax Credits enclose one copy of the LIHTC application as
Exhibit XIV.
Homeownership Projects — See Attached
All homeownership projects must provide the following. Attach as Exhibit W -A
2. Development Costs with Sources and of Funds for Homeownership project Involving New Construction
or Acquisition and Rehabilitation.
17
Application Pueblo 2000 HWIE
2111 Projects -- A "eedsAssessment andMarliet Stuc1v
B. Needs Assessment
Describe the housing situation in the community including those factors that demonstrate a need for the type of
housing proposed for assistance in this application. Include references to any housing plans or studies that
document the housing needs of the community. Describe the project's relationship to the Consolidated Plan
adopted for the community in which the project is located. Attach as Exhibit IV -B
See Attached
C. Market Study
Describe the housing market in the community to document the demand (as opposed to need) for the affordable
housing project proposed in the application. Attach as Exhibit IV -C
See Attached
D. Refinancing
Will HOME subsidy be used to refinance all or part of an existing single- family or multi- family loan?
❑ Yes XJ No
(If yes, the applicant acknowledges that the proceeds of the refinancing niust he used only for the purchase,
construction, or rehabilitation of housing units meeting HO.bIE eligibility requirements. Identify in detail the use
offends resulting from the refinancing of the project.) Attach as Exhibit IV -D.
V, A'EI:IRI4t VE AND ]FAIR HOUSLNG NIARKETUNG - Exhibit V
Applicant acknowledges that it, the project sponsor, owner and developer are aware of their obligations to comply
with applicable fair housing and equal credit opportunity laws. State how the project affirmatively promotes fair
Dousing. Describe the efforts to be undertaken to advertise and market the HOME - assisted units to all segments of
the community, Please note that this response should describe affirmative actions to promote fair housing, not
simply compliance with the Fair Housing Act or pledges of non - discrimination. List specific news media, Housing
agencies, social service agencies, church groups, community organizations or other groups expected to assist in
affirmatively marketing the units. Attach as Exhibit V.
See Attached
VL, LONG -TERM RETENTION REQUIREMENTS - Exhibit V1
HOME regulations require projects to commit to specific long -term retention periods. Indicate which long -term
retention period applies to this project.
❑ Owner Projects -- 15 years
D Rental Projects -- 20 years
M Other:
Explain in detail how this long -term retention period will be accomplished consistent with HOME regulations.
Attach as Exhibit VI. (Lac!<ofresponse to these criteria brill result in no credit mrarded to the project under this
eligibilitvfactor.)
1S
Application Pueblo 2 000 KO:tf'
ELIGIBILITY REQUIREMENTS
Requests for HOME subsidy are limited per project. This limit applies to the same or equivalent projects
submitted by more than one member.
HOME subsidy financing is limited to housing within the City of Pueblo
All applicants should review the responses to the ten HOME eligibility requirements. These requirements must be
satisfied before any request can be evaluated further under the HOME scoring and ranking procedures. These
requirements apply to all projects without exception.
1. FEES
HOME funds may not be used to fund certain types of fees. Check the following items to confirm that the
applicant understands that HOME funds will not be used to pay the following fees.
� Prepayment fees for lender subsidized advances.
y ancellation fees imposed by lenders for private loans commitments not taken.
•Processing fees charged by lenders for providing direct subsidies. Note that this requirement does not
preclude a member from negotiating a fee for administering a direct subsidy but only prohibits the use of
HOME funds for paying for these fees.
2. COUNSELING COSTS
HOME funds may be used to pay for the cost of homeownership counseling only under certain circumstances.
Check the following items to confirm that the applicant understands that HOME funds may be used to pay for
counseling costs only when:
/The counseling costs incurred are associated with the buyer of an HOME assisted unit.
•The costs of the counseling have not been covered by another source including the member.
19
flpplication Pueblo 2000 H011E
SCORING CRITERIA
The responses to the scoring criteria are considered commitments and will be included in the terms of HOME
Agreements that will be required for all approved applications. HOME commitments are not subordinate to those
of an} other federal, state or local program.
4. TARGETCNG Exhibit Vii No.: apps � c',�b1e' - Home Ownership" Project
Indicate the number of units committed to each level of median income shown below. HOME regulations require
a minimum of 20% of the units in a HOME assisted rental project to be targeted to households at or below 50% of
median income. All owner- assisted units must be below 80% of area median. These allocations of units are
commitments not estimates and must be met upon completion of the project. Commitments not met result in
recapture of HOME funds provided to a project. These commitments should be consistent with targeting
commitments made for other programs such as the Low- Income Housing Tax Credit program (LIHTC), however,
the LIHTC or other program requirements do not take precedence over the HOME commitments made in this
section. The targeting commitments made in this section of the application must agree with those shown in the
Rental Housing Worksheet prepared for the Feasibility portion of the application.
Does this project include any other targeting commitments to other funders or investors? ❑ Yes ❑ No
if yes, Attach as F_xhibU 171, a description of how the targeting commitments made in this application compare to the targeting commitments
made in applications for other sources offunding for this project.
Total number of units:
Units above 80 % of AMI:
Units at or below 61 -80 % of AML
Units at or below 51 -60 % of AMI:
Units at or below 50 % of AMI:
Units at or below 30 % of AIMI:
Number of units for on -site manager /staff, not income restricted:
Indicate the number of units targeted to each of the categories sho�N n below.
Number of single -room occupancy units:
Number of units committed to households with special needs:
Number of elderly units:
Number of family units:
Percent: %
Percent: %
Percent: %
Percent: %
Percent: %
Indicate the number of units to be reserved for homeless households:
Applications will be credited for transitional housing, excluding overnight shelters. for homeless households permitting a minimum of six month
occupancy, or the creation of housing reserving at least 20 percent of the units for homeless households as deleted to ffO.t1E' re��tlatrons. This
res, is o comminnent to set -aside a specify numhar of units cvclusri elv for homeless households. Failure to set -aside these units in a
completed project still result in recapture offfO,t /E funds provided to a project.
20
Application Pueblo 2000110,1fB
2. SUBSIDY PER UNIT
Number of Units: 79 Total HOME Subsidy Requested: $ 7 23, 000
HOME Subsidy Per Unit: $ 9, 151.90
'3: DO NAT ED PROP ERTY - Exhibit VIII Not, app l i c ab l e
Describe the proportion of units or land to be donated to the project by public or private entities. In order to be
credited under this criterion property must be donated or transferred to the project for a nominal amount, i.e. $1,
reasonable expenses related to conveyance of the property may be paid.
❑ Land
Proportion of land to be donated: %
Current owner:
Purchase price:
Property Address or Legal Description:
❑ Units
Number of units to be donated:
Current owner:
Purchase price:
Address or Legal Description:
Attach as Exhibit VIII a description of the terms, conditions and circumstances associated with the donation of
land or units for the project.
4, NONPROFIT SPONSOR'- Exhibit M
Projects that finance the purchase, construction and/or rehabilitation of housing that are sponsored by any non-
profit organization, any state or political subdivision of any state, any local housing authority, state liousirrg finance
agency, or Community Housing Development Organization will be credited under this criterion. Indicate which
criteria for nonprofit sponsorship this project meets:
❑ No nonprofit sponsor.
❑ Rental project -- Sponsor must have an ownership interest, including any partnership interest,
Kl Owner project -- Sponsor must be integrally involved in the project, such as exercising control over the
planning, development, or management of the project, or by qualifying borrowers and providing or
arranging financing for the owners of HOME assisted units.
Further, to be credited under this factor sponsors must meet one of the following requirements. Indicate which
criteria this project sponsor qualifies for.
k Sponsor meets the follo�6ng standard. Is a tax - exempt organization having an express purpose of
fostering logy- income housing or is a public housing authority, is an owner of the project and Nyill remain
21
Ipphcation Pueblo 2000 HOM
as a general partner (either itself or through a related subsidiary) through the retention period. The
sponsor will from the time of application until the end of the retention period be involved in the
operations of the which is regular, continuous and substantial, or
❑ Sponsor is an approved Community Housing Development Organization (CHDO)
A. General Information
Respond to questions A -J and attach as Exhibit IX- A,B „.. J.
1. Name of ownership entity: Neighborhood Housing Services of Pueblo, In
2. Name of participating non - profit or Public Housing Authority: - same -
Legal status:
EX501(c)(3) ❑ Tax- exempt under 501 (a)
❑ 501(c)(4) ❑ Public Housing Authority
❑ Other (specify):
a. If non - profit or PHA will participate through a related subsidiary entity, provide name of such
entity:
Legal status:
❑k501(c)(3)
❑ 501(c)(4)
❑ Other (specify):
❑ Tax - exempt under 501 (a)
❑ Public Housing Authority
B. Is the non - profit or PHA assured of owning an interest in the project throughout the compliance period?
X1 Yes ❑ No
1. List all the general partners of the ownership entity and the percentagcs of their interest.
2. Describe in detail the non - profit or PHA ownership interest.
C. Describe the non - profit or PHA material participation in the development of the project. See attached.
D. Describe the non- profit or PHA material participation in the operation of the project throughout the retention
period. See attached.
E. Will the non - profit or PHA be contributing funds to the project? UYes El No (Ifyes, explain)
F. Will the non - profit or PHA receive an * v part of the development or management fees paid in connection yyith
the project`? KX Yes El No (If ves, how much? Explain.)
G. How many full -time staff members does the non- profit or PHA have? (Please specify)
Describe the type and extent of their activities.
See Attached
H. The non - profit may not be affiliated ysitli or controlled by any for - profit organization.
1. Has any for - profit entity (including the owner of the project or any entity directly or indirectly related to
such owner) appointed any directors to the governing board of the non - profit? ❑ Yes J No
(Ifves, explain)
22
Application Pueblo 2000I10.1fE
2. Does the non -profit have any financial arrangements with any individual(s) or for - profit entity, including
anyone or any entity related, directly or indirectly, to the owner of the project? ❑ Yes X No
3. Disclose any business or personal (including family) relationships that any of the staff members, directors
or other principals involved in the formation or operation of the non - profit have, either directly or indirectly,
with any persons or entities involved or to be involved in the project on a for - profit basis including, but not
limited to, the owner of the project, any of its for - profit general partners, employees, limited partners or any
other parties directly or indirectly related to such owner,
Not applicable.
I. The non -profit or PHA may not have been formed by any individual(s) or for - profit entity for the principal
purpose of being credited for the non - profit sponsor component or earning points under the HUME scoring
criteria.
1. Date of legal formation of non - profit or PHA. 8/12/1977
2. Purpose(s) of formation of non-profit. To promote affordable housing and
neighborhood revitalization.
J. Provide Sponsor Documentation, the following required materials for the non - profit or PHA (as applicable):
1. Articles of incorporation
2. By -laws
3. IRS determination letter, 501 (c) 3 or other tax exemption approval letter attached
4. Non -profit certificate of incorporation and certificate of good standing (state)
5. List of current Board of Directors or Commissioners (include dates of appointment and affiliation)
6. Most recent audited financials (include a list of major donors).
7. Provide or attach as separate exhibit any additional information whicli the City of Pueblo may find useful
for the purposes outlined at the beginning of this questionnaire (e.g. letter of intent, proposed documents,
etc.).
G EMPOWERMENT - Exhibit 1G
Applications will be scored according to the extent and degree to which housing is provided in combination with a
program offering: employment; education; training; homebuyer/liomeownership or tenant counseling; daycare
services; resident involvement in decision making affecting the creation or operation of the project; or other
services that assist residents to move toward better economic opportunities, such as Welfare -to -Work initiatives,
consistent with the local Consolidated Plan.
Please describe in detail which of the following empowering activities Nyill be accomplished and liow. Attach as
Exhibit X- A,B „.. J.
A. Resident Involvement
•Identify who will be responsible for its formation and the schedule for its formation.
•Explain how the association will be formed and organized.
*Describe the role and responsibilities of the tenants association or other resident involvement.
B. hfandatory Homebuycr Education
*Provide one copy of the homebuver curriculum.
*Explain how the training will be documented.
•Identify who will organize and provide the training and their qualifications.
•Give details on the number of sessions and total hours of homebuyer education provided.
23
flpplication Pueblo 2000 HOJIE
C. Sweat Equity
*Describe the type of sweat equity to be provided by the homebuyers.
•Indicate who will be responsible for oversight of the sweat equity «ork.
*Explain how the amount of sweat equity credited will be documented.
D. Job Training
E. Day Care
F. Youth Programs
G. Credit Counseling
H. Transportation Services
I. Welfare to Work Initiatives
J. Other
7. COMMUNITY STABILITY - 'Exhibit XI
Please describe the extent to which the project preserves the community stability by minimizing the displacement
of low- and moderate- income households and by maximizing community stability. If the project involves any
displacement, please provide a summary of the sponsor's plans, if any, to deal with the resettlement of displaced
households. Attach responses as Exhibit XI- A,B,C,D.
A. Will the project displace any existing residents? ❑ Yes a No
If the project involves any displacement, please attach a copy of the sponsor's plans, if any, to deal with relocation
of the displaced households. Not Applicable
B. Describe the extent to which the project will benefit existing low- and moderate- income residents of the
community.
See Attached
C. Describe how this project increases neighborhood/community stability.
See Attached
D. Describe how the project addresses rural housing needs especially those resulting from economic and
employment growth (if applicable).
Not Applicable
9. PRIORI'T'Y ## - Exhibit XH
Attach responses to questions marked A -C, as Exhibit XII -A, B, C.
A. Special Needs -- Applications will be credited according to the percentage of housing reserved for occupancy
by households with special needs, such as large families, farm workers, the elderly, mentally or physically disabled
persons, persons recovering from physical or substance abuse, or persons «0th HIV /AIDS. At least 20% of the
project's units must be reserved for persons with special needs to receive credit under this criterion.
Number of special needs units: A Percentage of total units: Q %
Describe the special needs population to be served by this project:
24
,'IppUcation Pueblo 2000 80.1E
B. Neighborhood Area
Describe the location of the project See attached
C. First -time Homebuvcr
Projects providing financing of housing for first -time homebuyers will be credited for this factor. Describe how the
project addresses this factor. See Attached
X. PRIORITY #2 - Exhibit X1111
Communitv Participation and SUDDOrt Services
Describe the extent to which the project involves non - profit and community organizations, other than the project
sponsor, and commitment of services specific to the project or program by agencies serving the community. List
any specific contributions these organizations are making to the project, such as the donation of land, cash grants,
tax abatement, fee waivers, volunteer labor, corporate contributions, or provision of facilities and services
including but not limited to: congregate meal sites, social services, health services, job training, child care, job
related transportation services or equivalent services to be made available for the project or program being funded
with HOME subsidy'. Credit will not be given for provision of services to project tenants or homeowners on the
same basis as available to the general public.
Describe the support services to be provided. Attach as Exhibit X111
(Points % %iII be awarded only for those groups referenced that are supported by a letter or other suitable written documentation including a contact
person, address and phone number)
See Attached
)L MONITORING- Exhibit XIV
Members and owners of approved HOME awards are obligated to comply Nvith the HOME monitoring and
reporting requirements of HOME regulations and the City of Pueblo's policies. The requirements of the HOME
are not subordinate to the requirements of any other federal, state, local or private source of funds. Applicants
must be prepared to comply with the overlapping requirements of the HOME and other funding sources. All
applications must include a response to this section that demonstrates that the applicants are aware of HOME
requirements. Attach responses as Exhibit XIV.
A- Describe the procedures that will be followed for initial and long -term monitoring of compliance with HOME
requirements.
See Attached
B. Please explain how the applicant intends to document the use of any HOME subsidy disbursed, specifically
address lio« the disbursement of funds will be made for HOME eligible purposes. Describe the disbursement
process and project cost accounting system to be used.
See Attached
25
Application Pueblo 2000 I10.11E
CERTIFICATIONS
The member, sponsor and owner each certifies that it has read and acknowledged the requirements described in the
Application Instructions and the HOME regulations 24 CFR Part 92 accompanying this application form. The
requirements and commitments related to the HOME are not subordinate to the requirements of any other
program or source of funds including but not limited to the lm«- income housing tax credit program, HUD
programs or any state or local regulation or program.
The member, sponsor and owner each certifies that the information in the application is correct and that the
subsidy received for this project will be utilized in compliance with 24 C.F.R 92 affordable housing regulations and
City of Pueblo HOL\,M policies. Applicant also agrees to submit reports and certifications as the City of Pueblo
may require. Applicant, sponsor and owner certify that the requested funds Nvill be used in accordance with the
following specific provisions of the HOME as well other requirements of the program.
Affordability: All rental units targeted to households at or below 80% of area median income as committed to in
the approved application and reflected in the Targeting commitments cited above must have rents that do not
exceed 30 percent of the income of a household of the maximum income and size expected to occupy the unit
(assuming occupancy of 1.5 persons per bedroom or 1.0 persons per unit without a separate bedroom).
To insure that the proposed level of HOME subsidy is still warranted at the actual funding date, particularly in the
case of approved rental projects, the City of Pueblo will reevaluate the HOME subsidy level using current pro
FORMAS and sources and uses of funds information at the time of disbursement and after project completion. The
City of Pueblo may modify the amount of subsidy to be provided based upon this review. This process may result
in the transfer of less HOME subsidy than the amount approved or the recapture of disbursed HOME subsidy.
HOME funds may not be used for administrative or operating expenses associated with the applicant, sponsor,
owner or the approved project/program.
Commitments described in the HOME application in excess of the HOME minimum requirement become the
standard for determining compliance under the program.
The subsidy must be drawn down by the project or used to procure other financing commitments within a
reasonable time from the date of approval of the Application. Therefore, all sources of funding must be committed
within such reasonable time of the Application's approval. If the subside approved is not drawn down and used
within the time specified by the City of Pueblo 's HOME Agreement, the City of Pueblo shall cancel its approval
of anti funded subsidv shall be returned to the City' of Pueblo and the City of Pueblo shall make such canceled
subsidy available for other eligible projects.
The member shall comply with the monitoring requirements of the applicable HOME regulations and the City of
Pueblo 's policies and procedures. Specifically, during the period of construction or rehabilitation, the member
must take the steps necessary to determine whether reasonable progress is being made to�mrds completion of the
project and must report to the City of Pueblo quarterly on the status of the project. Within the first year after
project completion, the member roust review the project documentation and certify to the City of Pueblo that the
project is habitable, the project meets its income targeting commitments and the rents charged for income targeted
units do not exceed the maximum levels committed to in the Application. In addition, except «here other
arrangements sanctioned under the HOME regulations are made, for projects receiving $500,000 or less in subsidy,
during the period from the second year after project completion to the end of the project's retention period, the
member must certify to the City of Pueblo at least once even three years, based upon an exterior visual
inspection, that the project appears suitable for occupancy. The project owner and the member agree to fully
cooperate Nyith the City of Pueblo in effectuating off -site and on -site reviews of the project and in providing to the
City of Pueblo any project documentation periodically required under the applicable HOME regulations.
The owner shall comply with the monitoring requirements of the applicable HOME regulations and the City of
Pueblo 's policies and procedures. During the period of construction or rehabilitation of tlue project, the project
26
:Ipplication Pueblo 2000 ffWfE
owners must report to the member quarterly on whether reasonable progress is being made towards completion of
the project.
Within the first year after project completion, the project owner must: (a) Certify to the member and the City of
Pueblo that the services and activities committed to in the Application have been provided in connection with the
project; (b) Provide a list of actual tenant rents and incomes to the member and the City of Pueblo and certify
that; (1) The tenant rents and incomes are accurate and in compliance with the rent and income targeting
commitments made in the Application; and (2) The project is habitable; and (c) Maintain documentation
regarding tenant rents and incomes and project habitability available for review by the member or the City of
Pueblo , to support such certifications; (d) Provide to the City of Pueblo a final accounting and documentation
of project costs and sources of funds.
In the second year after completion of a project and annually thereafter until the end of the project's retention
period, the project owner must: (a) Certify to the City of Pueblo that: (1) The tenant rents and incomes are in
compliance with the rent and income targeting commitments made in the Application; and (2) The project is
habitable; and (b) Maintain documentation regarding tenant rents and incomes and project habitability available
for review by the City of Pueblo, to support such certifications.
For purposes of determining compliance with the targeting requirements and HOME regulations, members and
owners must determine income limits adjusted for household size and such commitments must be adjusted
annually according to the current applicable median income data.
The member and project owner shall repay the subsidy to the City of Pueblo, including interest, as may be
determined at the City of Pueblo's discretion, if appropriate, in accordance with the requirements of the applicable
HOME regulations in any instance where, as a result of the member's or the project owner's actions or omissions,
the subsidy is not used in compliance with the terms of the Application and the HOME regulations, unless such
non - compliance is cured within a reasonable period of time or the circumstances of such non - compliance are
eliminated through a modification of the Application, pursuant to the applicable HOME regulations. The member
shall not be liable to the City of Pueblo for the return of amounts that cannot be recovered from the project owner
through reasonable collection efforts by the member.
Modifications from the terms of the approved application must be approved in writing by the member applicant
and the City of Pueblo.
27
Application PIICb10 2000 flOalf
Authorized representatives of the member, sponsor and owner must sign the application.
0
Typed N
Agreed to and Accepted
By:
Date:
Typed Name and Title: Lionel A. Trujillo, Exe cutive Director
For: NeijZhborhood Housing Services of Pueblo, Inc.
Project Sponsor
Agreed to and Accepted
B .�
Y:
Date:
Typed Name and Title: Lionel A. Trujillo, Ex ecutive Director
For Neighborhood Housing Services of Pueblo, Inc.
Project Owner
28
Application Pueblo 2000 [[WfE
Exhibit I
Ownership Interest
Proiect History
Neighborhood Housing Services of Pueblo, Inc. (NHS) proposes the development of 79 single -
family homes in the Hyde Park area. The location of the proposed development is at 18 and
Lambert Streets. This area is currently unplatted rangeland. The site is bounded by existing
residential developments Rosedell Subdivision and Hyde Park Subdivision to the East and to the
South respectively and bounded to the North and West by unplatted rangeland. NHS is currently
in the process of purchasing this property. As a part of the development of this property, NHS
will oversee construction of the development.
In March 1998, NHS began developing our Liberty Gardens subdivision, located at 29` Street
and Atlanta on Pueblo's Northside. To date, 16 of the subdivision's 32 home sites have been
completed. Our mission as it relates to building a new home for NHS clients is to provide
efficient and affordable housing with the highest level of quality possible. Liberty Gardens has
been designed as a mixed - income community with families in mind with low traffic flow, easy
access to schools, public transportation, churches, shopping centers, and medical facilities.
Due to the great need for affordable, single family homes in the Hyde Park area, NHS proposes
to develop the "Hyde Park Subdivision" in the same manner. The development will consist of a
mixed - income community with affordably priced single family homes and neighborhood
amenities.
Organization History
The history of NHS is an affirmation of the strength of a community -based partnership approach
to not only revitalizing neighborhoods, but also building communities. NHS's programs began
in the Minnequa Heights neighborhood of Pueblo, where our dedicated team of staff and
volunteers rehabilitated 91 buildings, inspected another 218 homes, and provided for the training
of more than 40 young people in housing rehabilitation.
In 1982, NHS expanded its operations to the Eastside neighborhood. There, NHS constructed a
playground at Parkview Elementary School, rehabilitated 138 buildings, revitalized 17 store
fronts, inspected 533 homes, and organized the Eastside Neighborhood Association, a collection
of concerned business owners and residents.
In 1987, NHS began its projects in the Northside /Downtown neighborhood. There, NHS
rehabilitated 583 buildings, inspected 255 homes, painted 150 homes in Operation Paintbrush,
and painted 14 murals over property littered with graffiti.
In 1997, NHS widened its scope of programs to include Hyde Park, one of Pueblo's poorest
neighborhoods. Based on identified neighborhood needs and resident desires, NHS has stirred
together a unique blend of services in this area. Thus far, NHS has constructed 14 homes in
Hyde Park with a valuation of over $1 million, conducted our annual Operation Clean -up and
Operation Paintbrush Campaigns, and has spearheaded the razing of two sub - standard properties
on 18 Street.
In 20 years, NHS has rehabilitated more than 800 homes and buildings. Through our
comprehensive home ownership campaign, NHS has counseled 818 families in affordable home
ownership and has helped 141 families in achieving the American Dream of home ownership
equaling first mortgages totaling $7.5 million. Just within the past three years, NHS has
constructed 40 new homes in Pueblo's older neighborhoods with a valuation of $2,200,000.
NHS has the skill, capacity, and proven track record to help families that traditionally fall
through the cracks. The working partnership of residents, lenders, and the City can help
stakeholders in our community realize the cherished dream of home ownership and
neighborhoods of choice.
Exhibit II
Narrative Description
Members of the Hyde Park community approached the City and NHS to discuss the feasibility of
developing a parcel of land that lies between 18th Street and Holy Rosary Church between
Lambert and Oak Street, approximately 19 '/� acres (Census Tract 2901). A major concern
voiced by residents was that a trailer park might be developed in their neighborhood, lowering
their property values and creating a sense of isolation.
NHS's proposed Subdivision would be developed as a partnership between:
• Hyde Park Residents
• Neighborhood Housing Services of Pueblo, Inc.
• Neighborhood Reinvestment & Neighborhood Housing Services of America
• Local Lenders
• The City of Pueblo
• Pueblo County
• Local Builders
The highly visible location of this parcel adjacent to Holy Rosary Church, Hyde Park School,
and the core neighborhood lends itself to act as a catalyst to revitalizing the Hyde Park
neighborhood and promoting affordable housing.
A strategic approach would be used to develop a mixed income neighborhood via the following
parameters:
• 51% of the homeowners must be 80% and below the HUD area median income.
• Homes would be priced between $75,000 and $115,000.
• Homes would be site built, 900sf to 1200sf
• Varying home design will allow for expansion & addition of garages to base
model
• Landscaping and fencing are provided
• Lot sizes would be 50',55',& 60'.
• Resident involvement in developing the project.
• The nei park/detention at 18"' Street & Lambert will be developed as a
neighborhood amenity.
• NHS can provide the following assistance
• Pre - purchase & Post purchase Home Buying Counseling
• Individual & group credit/budget counseling.
• Down P ayment & Closing Cost Assistance
• Sub prime mortgage loan products.
Several developers have tried unsuccessfully to develop this parcel of land. What makes this
project feasible is when 55,228,316 in private financing is leveraged with 5723,000in HOME
funds not only is the project feasible but the homes then become very affordable„ As property
owner, NHS will oversee the development from initial surveying to final construction.
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Exhibit IV -B
Needs Assessment
Number of Households - HUD Income Category.,
% of Median Income, Pueblo County, 2005
41%
®0 -30%
11 % ❑ 30 -50%
N50-80%
[180-95%
❑95 -115%
■Other
According to BBC Research & Consulting, by 2005, half of all area households in Pueblo
County will have below- median incomes in 2005. One in six households will live on an income
of only 30% of the median income, and 25% will live on half of the median or less.
NHS programs are targeted to assist Pueblo's families who fall at or below 80% of the median
income. By the year 2005, nearly 45% of all families in Pueblo will fall into this category. At
this income level, families are not able to afford new housing, and will be reliant on existing
structures. Many of these existing structures are older, and are often in need of repair. BBC
research indicates that "there is an adequate supply of existing housing, but that the poor
condition of many of these homes may render them unaffordable once necessary repairs are
made ".
According to the National Association of Home Builders, the median home price of Pueblo's
Metropolitan Statistical Area is $106,000. Clearly, there is a prevalent need for more affordable
housing.
9% 7%
Exhibit IV -C
Market Study
The steady decline in affordable housing has added to the financial pressures facing working
families. As a result of the shortage of affordable housing, many families are forced to spend far
too much of their incomes on rent.
In November of 1998, the City and the County of Pueblo commissioned a housing study and
market analysis which was conducted by BBC Research and Consulting. This study provided
demographic and economic overviews, an analysis of current and projected housing supply and
current and projected demand for housing.
In October of 1999, NHS contacted BBC Research and Consulting to request updated data
estimates of the unmet housing ownership demand among low - income households. According
to BBC data, each year 610 families below the 80% of median income range and 60 families in
the 80- 100% of median income range become "frustrated owners ".
"Frustrated owners" are those families who would like to purchase a home, but cannot do so.
Although the research did not indicate specific reasons for "frustrated owners ", the study went
on to presume that there were three major reasons:
1. Lack of affordable monthly mortgage payment
2. High down payment and closing costs
3. Poor credit records
According to Neighborhood Housing Services of Pueblo, Inc.'s 1999 Affordable Housing
Program Client intake forms, families serviced have experienced an average rent of $650 for a
three- bedroom home in Pueblo County. NHS's proposed development offers three- bedroom
homes starting at $75,650. Based on a Loan to Value (LTV) of 95% and assuming an interest
first mortgage loan at 8% (APR 8.3 %) fixed for 30 years, the borrower is expected to pay a PITI
payments of $629.34.
Through NHS's program, the borrower is required to put a 2% down payment based on the
purchase price (in this case, $1,513) and will require gap financing of approximately $6,210.
Gap financing is a repayable note to NHS at a 5% fixed rate loan amortized 180 months.
Payments would be $49.11. This information assumes the following:
• Family of four
• Area Median Income Level (80 %) - $33,850
• Outside debt $340
• Closing Costs for both loans $3,941
Exhibit V
Affirmative and Fair Housing Marketing
Neighborhood Housing Services of Pueblo, Inc. acknowledges its obligations to comply with
applicable fair housing and equal credit opportunity laws. NHS will market this project to all
racial, economic, ethnic, and other groups.
To effectively advertise this new development, NHS intends to implement the following fair
housing marketing strategy.
Signage at Proposed Development
NHS will place signage announcing this new development.
News Releases
News releases will be sent to Pueblo's local daily newspaper, The Chieftan and to the Thrifty
Nickel.
NHS also sends news releases to the following media outlets:
Television
KOAA -TV Channels 5 & 30
KKTV - Channel 11
KRDO Channel 13
Radio
KCCY FM & KDAZ FM Radio
KRMX AM Radio 690 (Spanish)
KNKN 107.1 FM Tejano
KCSJ Radio 59 News & Talk Show
Direct Mail
A direct mail piece will be sent to area renters making more than $23,000 per year advertising
this development.
Non -Profit Collaborations
NHS will market housing opportunities to staff and clients at Colorado Blue Sky, formerly the
Pueblo County Board for the Developmentally Disabled. NHS has formed an alliance with
Colorado Blue Sky in providing gap financing for their clients, and are currently developing a
housing fund to allow NHS to service disabled families.
Exhibit IX — B #1
General Partners
Neighborhood Housing Services of Pueblo, Inc. 100%
Exhibit IX — B #2
Ownership Interest
Neighborhood Housing Services of Pueblo, Inc. 100%
Exhibit IX — C
Material Participation in the Development of the Project
NHS will supply development financing toward the implementation of this project.
Exhibit IX — D
Material Participation in the Operation of the Project
Neighborhood Housing Services of Pueblo, Inc. will oversee the management of the project
including:
Engineering
Surveying
Construction Management
Exhibit IX — E
Contribution by Non - profit to Project
Neighborhood Housing Services of Pueblo, Inc. has arranged for pre - development financing and
feasibility studies.
Exhibit IX — F
Development & Management Fees
Neighborhood Housing Services of Pueblo, Inc. will charge 4% of the total development to cover
counseling costs for clients and overhead and administration associated with developing this
project.
Exhibit IX — G Staff Members
Neighborhood Housing Services of Pueblo, Inc. currently employs six full -time staff members.
Below are descriptions of responsibilities.
Executive Director: Lionel A. Trujillo
The Executive Director is responsible for the execution of the Neighborhood Housing Services
Program consistent with policies established by the Board of Directors and the Corporate
Charter.
The Executive Director is chief executive officer of the corporation, responsible for the
supervision, administration, and management of the NHS staff and overall programming. In
addition, the Executive Director is directly responsible to the NHS Board of Directors.
Program Coordinator /Community Organizer: Sandra Daff
The community Organizer includes but is not limited to the following: fund raising research and
grant writing; assist the Community Relations Committee with planning, organizing, and
executing all marketing activities consistent with program goals and objectives; to organize
block meetings; to coordinate and involve local media, such as television, radio, newspaper, and
city -wide public relations; and, to coordinate the development of printed material for purposes of
informing local residents.
Construction Specialist: Sheila Henderson
The Construction Specialist is responsible for the construction component of the program and
counsels neighborhood residents concerning rehabilitation needs and provides a wide range of
rehabilitation services to homeowners. Oversees contractors of new construction.
Affordable Housing Loan Specialist: Kelly Garcia
The Loan Specialist conducts one -on -one interviews with potential buyers, conducts analysis to
determine amount of mortgage client qualifies for, finds gap financing necessary to make
difficult loans happen.
Controller: Thorine Riggs
This position is directly responsible to the Executive Director. This position is also responsible
for typing, maintaining office files, accounts receivable, accounts payable, payroll, loan
servicing, and all accounting procedures designed to support affordable housing development
projects.
Office Manager /Loan Processor: Myra Consonero
The Office Manager /Loan Processor handles all clerical and reception support duties. This
position is also responsible for pre - packaging loans for clients to take to local lenders
Attachment X — A
Resident Involvement
In 1997, NHS began considering offering its programs to include Hyde Park, one of Pueblo's
poorest neighborhoods. The Hyde Park Community has a long history of family values and
cherished ideals. More than one -half of Hyde Park residents are Spanish- speaking individuals
originally from New Mexico. This is an older community that is now seeing a resurgence of
building. Many of the younger people who moved from the neighborhood many years ago, are
now returning to their roots.
In 1998, NHS conducted an Attitudnal Survey of the Hyde Park residents. The boundaries of the
survey were Graham on the east, Oak on the west, West 18`" on the North and West 11 `" on the
South. A sampling of the results include:
42% of the residents have lived in Hyde Park between 1 — 15 years
59% like the new homes NHS built on West 14` and Lambert
46% said housing improvements were needed
57% said they would like to see more affordable housing
59% have considered purchasing a new house in the next 3 — 5 years
NHS realized from the start that creating and preserving affordable housing is only one element
of building a healthy neighborhood. NHS has always emphasized the need to integrate
development of resident leadership and neighborhood improvement projects with affordable
housing efforts. The result is a neighborhood of pride that remains healthy even after the support
structure moves on to help others.
NHS has identified many potential key individuals to play pivotal roles in the development of a
local Community Relations Committee. At present, NHS is organizing a Town Meeting for the
Hyde Park community to further quantify the needs of the community and to identify the
appropriate individual to head up the implementation of specific projects.
In an effort to instill self - sufficiency among the subdivision's homeowners, NHS will establish a
neighborhood association upon completion of the development. It should be noted that a similar
neighborhood association has been implemented in our Liberty Gardens subdivision.
Attachment X — B
Home Buyer Education
In order to receive NHS gap financing, it is mandatory that all clients participate in NHS's Home
Buyer Education Program.
The components of the program are:
1. Loan Pre - Application
NHS's loan specialist meets with the client and informs them of the estimated mortgage
amount they are eligible to obtain based on current income and debt ratios.
2. Counseling
NHS works with the client on how to save money for a down payment, clean up any
credit blemishes, and prepares the client for the responsibilities of home ownership. The
Affordable Housing Loan Specialist is currently conducting four general orientation
sessions a month. Since 1996, more than 818 families have attended NHS's counseling
sessions.
3. Finding a Home
Once the client is pre- approved for a loan, they begin to look for a home that is within
their price range.
4. Referral to Lender
Clients are sent with a pre - application loan package to a participating lender. The lender
will then credit - qualify the client for first mortgage financing.
5. Inspection
After the client finds a home, the home is then inspected. This is done to determine the
health and safety and to ensure compliance with building codes. On a case -by -case basis,
NHS can offer rehabilitation loans based on qualifications, needs, and availability of
funds. NHS can also offer construction expertise to manage any rehabilitation necessary.
6. GAP Financing
NHS bridges the gap to help with down payment and closing cost assistance. The agency
can also assist with principal buy down or rehabilitation work done on a home.
7. Closing
Once a client is approved for financing, NHS's Loan Specialist is available to coordinate
efforts with the lender to ensure that the loan is properly closed.
8. Post - Purchase Counseling
On a quarterly basis, NHS conducts a Post - purchase Counseling class for new
homeowners, which helps the client with maintenance and repair of their property, the
importance of maintaining credit worthiness, and understanding predatory lenders. This
counseling provides early intervention for delinquency and foreclosure prevention.
Exhibit X1— B How will project benefit existing low and moderate -
income residents of the community?
Hyde Park is an older community that is now seeing a resurgence of building. Many of the
younger people who moved from the neighborhood many years ago, are now returning to their
roots. In 1997, NHS began its programs in Hyde Park, one of Pueblo's poorest neighborhoods.
Based on identified neighborhood needs and resident desires, NHS has stirred together a unique
blend of services in this area. Thus far, NHS has constructed 14 homes in Hyde Park with a
valuation of over $1 million, and has conducted our annual Operation Paintbrush and Clean -up
Campaigns.
NHS realized from the start that creating and preserving affordable housing is only one element
of building a healthy neighborhood. NHS has always emphasized the need to integrate
development of resident leadership and neighborhood improvement projects with affordable
housing efforts. The result is a neighborhood of pride that remains healthy even after the support
structure moves on to help others.
Residents of the Hyde Park neighborhood have met several times to discuss the needs of the
neighborhood. One of the primary concerns of the residents is quality, affordable homes, not
rental homes. Most recently, the community participated in a petition and letter - writing
campaign against the development of a pre- fabricated, modular, duplex rental property that had
been proposed for the area. A group of concerned Hyde Park residents representing a cross -
section of individuals from all ages and walks of life, to voice their opposition to this
development at the City of Pueblo's Planning and Zoning Commission. This development was
denied.
From this group of concerned citizens, NHS has identified many potential key individuals to play
pivotal roles in the development of a local Community Relations Committee. At present, NHS
staff is organizing a Town Meeting for the Hyde Park community to further quantify the needs of
the community and to identify the appropriate individual to head up the implementation of
specific projects.
Exhibit XI — C How will project increase neighborhood /community
stability?
This planned mixed - income community will not displace or relocate existing residents.
According to the US Bureau of the Census, dating back to 1970, the shift from owner occupied
to rental occupied homes in the Hyde Park area is alarming. In the 1970 Aggregate of Census
Tracts 2 and 29.01 for the Hyde Park area, a mere 26.7% of the homes in Hyde Park were renter
occupied. In 1980, that figure jumped to 36.7 %. In 1990, that number jumped again to 42.1%
renter occupied.
This new subdivision will help reverse that trend and establish opportunities for home ownership
through affordable housing that have not existed in the Hyde Park area in the past.
See census information attachment.
Exhibit XI - C (Attachment)
HYDE PARK AREA DEMOGRAPHICS
(Aggregate of Census Tracts 2 and 29.01)
POPULATION CHARACTERISTICS
1970
1980
1990
Total Population
3.548
3,775
3.362
AGE DISTRIBUTION (` %,)
10.7
10.8
8.3
♦ 0 -4 vrs.
36.7
26.8
25 2
5 -17
21.8
29.4
26.3
♦ 18 -34
24.8
25.9
29.7
♦ 35 -64
6.0
7.1
10.5
65+
19.1
24.4
29.1
♦ Median Age (yrs.)
RACIAL/ETHNIC DISTRIBUTION
Black
3.5
3.0
18
'%Hispanic
39.8
59.6
59.9
' %i,Wllite
36.7
37.4
37.3
FAMILY COMPOSITION
Married - Couple Families with own Children under IS
450
428
286
Single- parent Families with own Children under 18
85
175
195
Total Families with own Children under 18
535
603
481
Single- parent Families NNith own Children as of Total
15.9
29.0
40.5
EDUCATIONAL ATTAINMENT
' %,High School Graduates
32.7
47.9
55.6
ith 4 or more rs. College*
1.3
4.9
62
HOUSING CHARACTERISTICS
Total Housing Units
95.1
1,284
1.257
Total Occupied Units
899
1.177
1.144
Vacant Units
107
113
Overall Occupancy Rate ( "r..)
942
91.7
91.0
'%, Owner- Occupied
73.3
62.4
57.9
%Renter- Occupied
26.7
37.6'
42.1
' %,Units with More Than I Person per Room
27.8
9.9
8.5
Median Value
$7.724
$26.689
$33.733
Median Gross Rent
S83
$144
5238
ECONOMIC CHARACTERISTICS
Unemployment Rate (`%„)
8.3
12.2
15.0
Median Family Income
56.406
$11.919
$13.523
"i Households with Public Assistance
NA
22.7
23.9
i� of Persons mth Income Below Povem
24,9
24.9
39.7
* 1990 Census tabulates college education level by degree attained, rather than b% number of years completed as
�%as done with 1970 and 1980 Censuses.
SOURCE_ U _ Bureau of the Census. Census tracts. Pueblo. CO and Summate Tape File 3 -A
Exhibit XII — B
Location of project
The legal description of the proposed development is:
S '/2 of the NE 1 /4 of the NE 1 /4 of Section 27, Township 20 South, Range 65 West of the 6"'
Principal Meridian.
The project is located at the intersection of 18` and Lambert in the Hyde Park neighborhood.
The proposed development will extend to Oak (Westerly) and 20`" Street (Northerly)
Exhibit XII — C First -Time Homebuyer Information
Neighborhood Housing Services of Pueblo, Inc. offers closing cost, down payment assistance,
and gap financing to qualified buyers, including those families purchasing their first home. In
addition, first time homebuyers can qualify for CHAF financing.
Exhibit XIII Community Participation and Support
Services
The following are participants in this project:
NHS has met with Pueblo's Home Builders Association and has received their input on how they
can participate in this program.
In addition, NHS has met with the Holy Rosary Church's Council and has received their
approval for the implementation of this project. The Father of Holy Rosary, Mark Plewka has
received tentative approval for any easements that may be necessary.
NHS has received a letter of intent to provide financing from Neighborhood Housing Services of
America for the acquisition and development of this project. Additionally, NHSA has expressed
an interest in providing first mortgages to potential homeowners for this affordable housing
development project.
See attached correspondence from NHSA.
Exhibit XIV -A Monitoring
In terms of financial responsibility, Neighborhood Housing Services of Pueblo, Inc. adheres to
the Generally Accepted Accounting Principles standard. Financial information is made available
to both members of the general public and to donors and partners.
Exhibit XIV -B Documentation of Disbursements
Upon notification of approval of HOME funds for this project, Neighborhood Housing Services
of Pueblo, Inc. will create a separate bank account to which all HOME funds related to this
project will be deposited.
In order to disburse funds, contractors and vendors are required to provide written documentation
of the expense incurred and the specific property to which the expense should be applied. Each
invoice must be approved by both NHS's Executive Director and Construction Specialist. A cost
center will be established for each lot, allowing NHS to monitor all costs associated with this
project.
Neighbor W irks
January 18, 2000
Neighborhood Housing Services of Pueblo, Inc.
825 N. Greenwood
Pueblo, Colorado 81003
(719) 544 -8078
Fax: (719) 544.0271
Mr. Barry Black
NHSA Inc_
NWO Real Estate Financing Programs
25 Krueger Lane
Hamilton, NJ 08620
Attention: Mr. Barry Black
Dear Barry:
Subject: Proposed Hyde Park Subdivision
This letter is to express our thanks for the tremendous help that NHSA provided us during the construction of
our first subdivision "Liberty Gardens ". With your generous help, NHS of Pueblo was able to provide affordable
housing and counseling to 32 families. We have certainly fulfilled our mission, and the financing NHSA
provided laid the building blocks for every family in the Liberty Gardens Subdivision.
With Liberty Gardens Subdivision nearly completed, and with the help of NHSA, we are ready to try it again.
In the Hyde Park area of Pueblo, there is an 18 -acre parcel of land that we propose to develop. This site would
be ideal for the revitalization of this area. The 18 acres would possibly have 60 to 90 lots, designed around a
park area. The subdivision would attract the necessary partners to improve the baseball fields at the local
church, as well as, provide a second entrance to the church parking areas.
We are looking to NHSA to provide financing from $500,000.00 to $650,000.00 at 8.00% to 8.25% and be able
to provide it within 30 days. This money would provide for the infrastructure of this new endeavor. The city of
Pueblo will provide for the cost of the land, in tum we will reserve 51 % of the lots for families that are 80% and
below the median income.
It was a great pleasure working with NHSA on the Liberty Gardens and we took forward to working with you on
the next.
Should you have questions or concerns, please contact me.
Respectfully,
Lionel A. Trujillo
Executive Director
Neighborhood Housing Services of Pueblo, Inc. is a private non-profit organization.
HOUSINO
Our mission is to revitalize neighborhoods and promote affordable housing. OPPORTUNITY
Exhibit (attachment) =.
25 Krueger Lane Hamilton, NJ 08820
(609) 585 -1514 Fax (609) 585 -2206
NEIGHBORHOOD
HOUSING SiRV10ES Barry Cep Block
Or AMERICA Drrec;or, Housing Development Group
JARO OF TRUSTEES
ROGER JOSLI N. Chairman
Chel -men of the 90.rd
5uro Farm w,a 6 C. Company
C,ALEN R BARNES
R S Cb; f Op...dnq OMkn
N < Mutual lnaunna. Company January 21, 2000
RAVMOND W. GLLIOTT
Prealdenl. Retired
Feder Hem• Lean Ba�� of Ba.bn
GENERAL ROBERT T. HERRES
Thank you for your interest in Neighborhood Housing Services of America's
(USAF, -.find)
(NHSA) Housing Development Group's (HDG) Interim Development Loan
Ch al,men A Chl.f E-11- Orb.
Re: New Subdivision
USAA
EDwAROM LIDOY
Mr. Lionel Trujillo
cn a C1,41 Eoeuti.. ORioar
All<Hb inaNr — Cem Y
Executive Director
" FS T'014 MARTIN
"FST' U,. Beard
of
Neighborhood Housing Services of Pueblo
LELANOS PRDSS'A
8 N. Greenw Avenue
JAME8F MONTGOMERY
Barry Isee Black
.r. ° °ard
Fro n br an
t Et
Pueblo. CO 81003
TERRENCE MURRAY
Thank you for your interest in Neighborhood Housing Services of America's
C'.Irman A CNIO E.eauCve oreoe+
(NHSA) Housing Development Group's (HDG) Interim Development Loan
FI..t Fil. —. O —P
Re: New Subdivision
NON. ED LOPE2 PASTOR
in obtaining an interim development loan for their new 18 -acre subdivision
Ma mp., of COn9rc
th at will consist of approximately 60 to 80 single - family homes of new
B•°end Di.W.t, A,la°na
construction.
LELANOS PRDSS'A
Dear Mr. Truj
5inlay VI P
Barry Isee Black
Bar.r.marla. Corpor.0 On
HON JOSEPy P R'LEY. JR
Gary o
Thank you for your interest in Neighborhood Housing Services of America's
Gha•Lato n. 3
Aq'HURF RYAN
(NHSA) Housing Development Group's (HDG) Interim Development Loan
Chairman A ChIO E... vml- Onloer
T PNd. °!I•I'.a�'nK. Cemp.nY
Program. From our discussion, I understand the NHS of Pueblo is interested
0,
e! Am.rK a
R SYRON
in obtaining an interim development loan for their new 18 -acre subdivision
chairman i Chlef E... A- OHker
Amerloan Stool E.ana19.
th at will consist of approximately 60 to 80 single - family homes of new
OAQ0 OF DIRF.CrOgB
construction.
DAN R DARN. Char
5inlay VI P
Barry Isee Black
world S. +Inq. +1 Loan A •R°letion
WILLIAM D. PI,4CHATY,
Based on NHSA's previous positive experience of approximately S2.8 million
E..cutme Vlae President. Retired
e.nking. N ,
in financing to the NHS of Pueblo, we express preliminary interest in the
MYRGN J RESNICK. ri..•un•
3.n ° . °. Pnald.m A Ohlel
acquisition and development financing of your new development. This wil
InYwtmant CM-, R.L'rad
Company,
be based on underwriting and due diligence acceptable to NHSA and approval
CLARISB• WALKER. 8ae�.t.
Dre <te,pfs ° S-1—
by NHSA's HDG Loan Committee. Additionally, NHSA would be interested
S.oathanl Cemmun,tY Ca114r
MARY LEE WIDENER
in providing first mortgages to potential homeowners for this affordable
P•<sld.nt
N•VVhO°rhaad Haualnq 5ervte. of Am.na.
housing development.
CLAYTON J ADAMS
Nato nal Urpan LMaln Oft"
Swb PA— FIn A Cal L. ty Company
If you have any questions, please contact me at (609) 585 -1514, NHSA looks
OECRGEW. 6EHYMIR
'hV•' 3..<N!w. Otftcaa ReGnd
Cee...ay
forward the NHS of Pueblo with their financing needs.
Fade a -oan
to assisting
ROSE ESPINOZA
$« tery. Eseou!ros Camminaa
NHs at CnnQ• County
SORNIA JEF °ERY
Dlnotor a! 9eelai B•rv�eas
6• Gh41dh° t Cent.. of 5pringMe1d
PETER A LEFFERTS
Sincerely
80n�or Vlc. Prsaldent
Cponm st'.t.gy A 0 ..I'p ant
or
Am✓1<an Grpra.a FlnanF 41 Adelson
K M<CO RMICK
I
1 /'
V V
Vic• er e.;d.nl
Com a Communlly Invatmont
�{//1/}/
USAA F.dw, s.vinpa B.nll
FPEO P EBG
Barry Isee Black
. L .r
3•n�or P.re�.r
G� •.n. Own A Crut.n"
HUGH J. SHAW
3 1;1- Pr -Nall
BLB:
. m5ou B.
15.9.-
HDNDA�C?cARD
q� e R,.•m.n•. und.rwminQ
ta!a In•u,anea company
cc: Edward D. Rodriguez
ADVISOR
OEJFOE KNIOH'
E *ec u!Ne Olreoto,
wlgnlw,heea R•ImnUma nt Gortwntion
EXHIBIT 3
Project Name: Hyde Park Subdivision/
City of Pueblo HOME - Affordable Housing Program
1. Homeownership Projects Worksheet
Instructions for the homeownersh
on p. 23 of the Application Instruo
Total AHP Subsidy (Sum of Line 23) $113,378 Total Units 79
Column I
Column 2
1
Project Location (County or MSA
Pueblo, CO
2
Level of Median Income Targeted
80
3
Number of Units
79
4
Household Size
4
5
Annual Income at Targeted Limit
$25,824
6
Monthly Income at Targeted Limit
$2,152
$0
7
Purchase Price Per Unit
$75,650
8
Closing Costs Per Unit
$1,513
9
Total Cost Per Unit
$77,163
$0
10
Housing Expense to Income (Front Ratio )
31%
11
Mortgage Rate
8.00%
12
Mortgage Term (Months)
360
13
Monthly Income Available for Mortgage Payment (PITT )
$660.66
$0.00
Line 6 * Line 10
14
Less: Estimated Taxes (Monthly)
$50
15
Less: Estimated Insurance (Monthl
$30
16
Less: Other Monthly:
$25
17
Available for Principal and Interest (P & 1 )
$555.66
$0.00
18
Mortgage Loan Supported by Income Available
$75,728
$0
19
G -- Total Cost Per Unit Minus Mortgage Loan
$1,435
$0
Line 9 -Line 18)
20
Less: Downpa ment
21
Less: Other sources:
22
Remaining from AHP
$1,435
$0
To Be NHS Down Pmt Assistance
23
AHP Gap * Number of Units Line 3 * Line 22)
$113,378
$0
Total AHP Subsidy (Sum of Line 23) $113,378 Total Units 79
City of Pueblo HOME - Affordable Housing Program
2. Homeownership Projects Worksheet -- Sources and Uses of Funds
Sources of Funds Total
Project
Hyde Park Subdivision/
Column Column
18
Mortgage Loan Supported by Income Available
$5,982,499
$5,982,499
$0
20
Down a ent
$0
$0
$0
21
Other sources:
$0
$0
$0
22
Downpayment Assistance Needed
$1.13,378
$113,378
$0
Total Sources
$6,095,8771
$6,095,877
$0
Uses of Funds
7
Purchase Cost
$5,976,350
$5,976,350
$0
8
Closing Costs
$119,527
$119,527
$0
Other
Total Costs
$6,095,877 $6,095,877
$0
Note: Shaded areas indicate information calculated from another portion of the worksheet.
City of Pueblo HOME - Affordable Housing Program
Hyde Park Subdivision/
Homeownership Projects Worksheet
3. Sources and Uses of Funds for Homeownership Project Involving New Construction or Acquisition and Rehabilitation
Development Budget
Land and Buildings
Total
Per Unit
Land Acquisition
$ 115,000
Building Acquisition
Off -Site Improvements
Liens and Taxes
356,000
Holding Period Interest
Relocation Costs
Other
Other
3,500
Subtotal
$ 115,000
Site Work
Site Grading, Clearing, Demolition
$
1,160,000
Off -Site Improvements
$
356,000
Environmental
Other
$
3,500
Subtotal
$
1,519,500
Construction and Rehabilitation Costs
New Construction Costs
$ 4,867,269
Rehabilitation Costs
Accessory Structures
$1,456
$0
$0
$0
$0
$0
$1,456
$14,684
$4,506
$0
$44
$19,234
1
General Requirements
$
Contractor Overhead
Construction Bond Premium
Contractor Profit
Construction Contingen
$
Local Permit Fees
Credit Report
Tap Permit Fees
Other
$
Other
$ -
Subtotal
$ 4,867,269
Professional Fees
Architect Desi
$
Architect Supervision
Construction Bond Premium
Attome , Real Estate
Accountin
$
Engineer/Survey
Credit Report
Real Estate Agent
Title, Recording and Escrow Fees
$
Other: _Feasibility
$ -
Subtotal
$ -
Construction interim Costs
Hazard/Risk/Liability Insurance
$
50
Construction Bond Premium
Performance Bond
$
4,500
Credit Report
Construction Loan Interest
$
45,248
Construction Loan Fee
$
5,000
Discount Points
Credit Enhancement Fee
$
14,000
Inspection Fees
Title, Recording and Escrow Fees
$
350
Legal Fees
$
2,000
Construction Period Interest
Securi
Real Estate Taxes
Other
Subtotal
$
52,648
Soft Costs
Feasibility Study
$
8,000
Market Stud
Environmental Study
$
4,500
Compliance Fees
Contingency Soft Costs
Appraisal
$
1,500
Other
Subtotal
$
14,000
$0
$0
$0
$0
$0
$0
$0
$0
$61,611
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1
$0
$0
$0
$573
$63
$0
$0
$0
$4
$25
$0
$0
$0
$0
$666
$101
$0
$57
$0
$0
$19
$0
$177
Developer Fees
Develo er Overhead $ 240,000 $3,038
Developer Profit
Consultant Fee
Other
Subtotal $ 240,000
Total Development Costs
Development Sources
$ 6,808,417
$0
$0
$0
$3,038
$86,182
Construction/Interim
Financing
Type
(eg Loan
Grant or
Equity)
Amount
Rate
NHS Permanent Loan @ 8.5 % (Revolving LOC
Loan
$500,000
825
Revolving LOC with local lender: US Bank
Loan
$619,148
31%
City for Land Ac uisiton
HOME
$123,000
Mortgage Term
Lot Sales
360
$72,000
$0.00
Lot Sales
Taxes
$27,000
$50 Varies
City HOME 3 years
HOME
$500,000
Homeownership Feasibility Comments:
County
Grant or
$100,000
Construction Loan
$4,867,269
Total Sources
$6,808,417
Total development sources must equal total development uses and agree to the total sources and uses shown
for the permanent financing of the units on page 2.
$712,540
Note: Shaded areas indicate information to be entered by applicant.
City of Pueblo HOME - Affordable Housing Program Hyde Park Subdivision/
4. Homeownership Feasibility Review
Minimum
Maximum AHP
Guideline
Development Cost Per Unit
$0
$77,163
Front Ratio
31%
31%
Mortgage Rate
8.00%
8.00%
Mortgage Term
360
360
Owner Equity - Down Payment
$0.00
$0
Taxes
$50
$50 Varies
Insurance
$30
$30 $20 -$50
Homeownership Feasibility Comments: