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HomeMy WebLinkAbout08988SUBSTITUTED COPY 4/24/00 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. K 1} A A h K w L quL S Y g a $ 5 N RR O Y Y o rn 61 L o m � _ o LC 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: