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Home My WebLink About20021934.tiff RESOLUTION RE: APPROVE APPLICATION FOR LOAN/GRANT ASSISTANCE AND AUTHORIZE CHAIR TO SIGN WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, the Board has been presented with an Application for Loan/Grant Assistance from the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the Greeley/Weld County Housing Authority, to the Colorado Division of Housing, with further terms and conditions being as stated in said application, and WHEREAS, after review, the Board deems it advisable to approve said application, a copy of which is attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, ex-officio Housing Authority Board, that the Application for Loan/Grant Assistance from the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the Greeley/Weld County Housing Authority, to the Colorado Division of Housing be, and hereby is, approved. BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized to sign said application. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 22nd day of July, A.D., 2002. BOARD OF COUNTY COMMISSIONERS WELD COUN COLORADO ATTEST: �Kd '/ >%' �IL . . . " � Glenn Vaadt-GI rah Weld County Clerk to tr:a: 1 . I EXCUSE BY: &X(�� ',` NI David E. ong, Pro-Tem L' l Deputy Clerk to the Board ea/1 J. eile AROVJAST Vatm H. Jerke unty ttorne Robert D. Masden Date of signature: • (1C ' 7114 2002-1934 HA0022 Application for GRAY SHADED AREAS ARE FOR STAFF USE ONLY Colorado Division of Housing Date Received Loan/Grant Assistance Project# AMOUNT REQUESTED: $77,000 Loan _X Grant APPLICATION INFORMATION Applicant(Name and Address) Sub grantee(Name and Address) Weld County Housing Authority PO Box 130 Greeley,CO 80632-0130 Chief Elected Official,Executive Director,or Phone No: Federal Tax ID No: 84- 156446 President: 870-346-7660 Glenn Vaad Fax No: 870-348-7680 Email: tom@greeley-weidha.org Title: Address: PO Box 130 Chair Greeley,CO 80632-0130 Designated Contact Person for Application: Title: Phone No: Thomas Teixeira Executive Director 970-346-7660 Fax No: Address: Email: tonegreeley-weldha.org PO Box 130 Greeley,CO 80632-0130 TYPE OF ORGANIZATION TYPE OF PROJECT X Municipality/County/Consortia Rental Nonprofit (send copy of IRS determination of status) x Homeownership CHDO(Community Housing Development Organization) Rental Assistance Public Housing Authority Group Home or Shelter Private For-Profit Developer Other(Specify) TYPE OF PROJECT ACTIVITIES(Check an of the activities involved in your project) New Construction Rehabilitation Tenant-Based Rental Assistance Infrastructure Improvements Program Administration Acquisition X Home Buyer Program Other(Specify) 10 2002-1934 PROJECT PROFILE PROJECT LOCATION (We need a SPECIFIC location: Street Address: (If Available. If not, please list the location) Sites Acres: City_ County WELD Zip SITE CONTROL OWNED: OPTIONED: ' LEASED: STATUS (check one) EXPIRATION DATE: (Must send TERM: supporting documentation) UNDER CONTRACT: ZONING STATUS Site is presently zoned: Is the present zoning conforming or nonconforming? If nonconforming when will zoning change or PUD be granted COMMUNITY SUPPORT Describe efforts made to build community support for the project and the results of those efforts. See Attached Narrative LOWERING THE COST OF AFFORDABLE HOUSING In general, what steps have the local government building/planning agencies taken to lower the cost of affordable housing? 11 PROJECT DESCRIPTION NARRATIVE As a separate attachment, please provide detailed information on your proposed project. Sufficient information must be provided in order to have your proposal reviewed in a timely manner. Include the following: 1._ Milestones, Outcomes - Describe the long term outcomes, goals or objectives this project/program is designed to meet. 2._ Background of development team members. This includes the project manager, fiscal manager, engineering and architectural firm, marketing consultant, owner& developer, and property manager as appropriate. Include a description of team member's experience with professional subject matter and with administering federal grants. Include resumes if appropriate. 3._ Description of project. Give building types, number of units, number of bedrooms, and size. If appropriate, include a description of common spaces(i.e.community rooms,day care facilities). Also include the number of acres of land, project drawings (site plans, evacuations, floor plans). 4._ Project timeline, including targeted occupancy date. 5._ Target population with income levels, rent levels, or sales prices. 6._ Market analysis (show demand or need for project activity). This should be either a professional market study/survey or documented market data. Please attach one copy to your application package. 7._ Marketing plan. This includes plan for advertising and promotion of project, and plan to attract clients. 8._ Description of other financing commitments for the project and level of commitment. Please include letters of commitment for each. 9. If you plan to use these funds to make relocation payments in excess of the Uniform Relocation act requirements, please explain why. 10._ If you will be using these funds to pay for staff that will be writing grants to receive other federal funds, HUD requires that you disclose this and provide an explanation of what will be done. 11._ If you are developing or acquiring a rental project, please enclose one copy of the appraisal. 12. Is the project served by public transportation? If so, describe proximity to community amenities and services. 13._ Describe what infrastructure and utilities are available to the site. If there are offsite infrastructure costs associated with this project, explain you're rational for choosing this site, and your analysis of other potential building sites. Could you have saved on infrastructure costs by building on another site with less infrastructure needed or in a district with lower rates? 14. For down payment assistance programs, identify the number of loans you will make, average and maximum loan amounts, loan rates, and terms. 15._ If you are developing a new single-family subdivision,will the purchasers of the units be assessed any special district fees in the future to recapture land improvement costs? 12 PROJECT OPERATING BUDGET Form to be used only for new construction or redevelopment rental proposals(including assisted living) INCOME EXPENSES #of Units Sq. Ft. Monthly Rent Total Rent • Administrative Experraes 0 Bdrm Management Fee • Bdrm On-site Personnel Payroll Bdrm Health Ins. &Benefits 1 Bdrm Legal and Accounting Bdrm Advertising Bdrm Office Supplies • '. Telephone Bdrm Audit Bdrm Other Bdrm Total Administrative Expense 3 Bdrm Operating Expiation Bdrm Utilities(Owner paid) 4 Bdrm Trash Removal 4 Bdrm Fire& Liability Insurance Total Rent Income Other Parking Income TT Total Operating Expenses Laundry Income Maintenance Other Income: j Maintenance Other Income: Repairs Other Income: Grounds keeping(include snow removal) Total income j Other Vacancy Rate: % Less Vacancy ( ) Total Maintenance Annual Effective Chess income Real Estate Taxes ANNUAL DEBT SERVICE Operating Reserve 1st Mortgage Replacement Reserve 2nd Mortgage s TOTAL ANNUAL EXPENSES Other Debt Service(specify) fiEr OPERiTiAiti INCOME Total Annual Debt Service i P.U.P ses* - "P.0 P A = Per Unit Per Annum Expenses 13 SOURCES AND USES OF FUNDS Other Funding Project Activities Total Project Cost State Funds Request Amount Source A.Acquisition Costs 1. Land 2. Existing Structures 3. Appraisals 4. Soils Tests 5. Surveys 6. Other 7. Other B.Construction Costs • 1. Building Permit Fees 2. Tap Fees 2. Off-Site Infrastructure 3. On-Site Infrastructure 4. Construction 5. Landscaping 6. Contingency B. Other 9. Other C. Design Fees 1. Architect Fee 2. Engineering Fee 3. Other 4. Other D. Interim Costs 1. Construction insurance 2_ Const. Loan Origin. Fee 3. Construction interest 4. Consultants 5. Taxes during Construction 6. Other 7 Other 14 Other Funding Project Activities Total Project Cost State Funds Request Amount Source E. Perm. Financing Fees/Deposits 1. Loan Fees & Expenses 2. Attorney Fees 3. LIHTC Fees 4. Developers Fee 5. Operating Reserve 6. Other 7. Other F.Tenant Relocation 1. Temporary Relocation 2. Permanent Relocation G.Project Management i9 1. Marketing 2. Project Management 3. Consultants 4. Other 5. Other SUBTOTAL(A-G) H. Homebuyers Assistance 1. Down payment Assistance $70,000.00 $70,000.00 2. Closing Costs 3. Interest Rate Buy down 4. Case Management 5. Other 7,000.00 7,000.00 6. Other I.Tenant Based Rental Assistance 1. Rent Payments 2. Case Management _ 3 3. Other J.General Administration 1. Salaries/Benefits 7,000.(X) 7,000.00 2. Operating/Supplies 3. Travel 4. Audit SUB TOTAL(H-J) GRAND TOTAL(A-J) 15 U) in 3 3 1; R Cl) U) d ti to CD ce O e 2 z z U a U � c z 6. a) m O z c Z LI LL Z O z p w z w n a re I_ € w 2 a0 re 0 O ce 0 cn LL U w co X 5 w 3 OO W W cn tr O 4E C7 al u) ca O• O a LL 0 D laZ 0 J LL J O Li- >- O CC } ¢ CC 2 ¢ 2 g (/) u 2 0 oo u) o cn cn 48 t c c 3 3 o o E E ¢ ¢ 0 0 PROGRAM INCOME Program income is revenue generated from investment of HOME and CDBG funds. HUD requires that the applicant report quarterly on the amount& use of program income. Examples of program income include: revenue from the sale of property acquired with federal funds and repayment of federally financed loans made by the applicant. Will any program income be realized from the proposed investment of requested funds? YES NO If yes, will the applicant or another organization retain the program income? If not the applicant,who? If you plan to retain program income do you know how it will be used? ENVIRONMENTAL ISSUES-For general questions contact: Bill Verbeten(303)866-3573 When using federal funds environmental reviews are required. If we can mitigate any potential environmental YES NO issues at the application stage it can minimize added time and cost to the project. For housing rehabilitation requests: Has there been an evaluation of asbestos hazards? Has there been an evaluation of lead-based paint hazards? For questions contact: Rick Hanger, (719)544-2466 Will the project be undertaken in flood hazard areas?(Attach flood plain maps/studies reviewed in reaching this conclusion) For questions contact: Mark Matulik, Colorado Water Conservation Board, (303)866-3311 Will the project be near a geological hazard area, or affect historical, archeological or cultural resources? DOH Resource Contact: Pat Rodgers, Colorado Geological Survey, (303)866-2611 Kaaren Hardy-Hunt, State Historical Society, (303)866-3398. Will the project be located within 1,000 feet of a major highway, 3,000 feet of a railroad, 15 miles of a commercial airport or near military airfields or some other major noise source? For questions contact: Bill Verbeten(303)866-3573 Will the project be located within one-mile of aboveground storage tanks,transmission pipelines or loading facilities for explosive or fire-prone substances? For questions contact: Bill Verbeten(303)866-3573 If you answered yes to any of the above, what alternatives have been considered? How do you plan to mitigate the adverse effects? Attach a separate explanation describing your mitigation plans. If a Phase I Environmental Audit has been completed, please include copy. Will any units be handicap accessible? When using federal funds, section 504 requires that in projects of 5 or more new rental units, 5 percent of all units must be accessible to persons with disabilities according to the Uniform Federal Accessibility Standards and 2% must be sensory adaptable. There are similar requirements for projects that make substantial alterations. The remainder must meet the accessibility requirements of the Federal and State Fair Housing Act, which require that all units in elevator buildings and ground units in other buildings be accessible. Your local government may have additional requirements. Contact Teri Davis for more information at(3031866-4462. Are Davis Bacon Rates included in your construction cost estimates?YES NO See Attachment E, pg. 25 for more details. Contact Bill Verbeten at(303)866-3573 with questions or for local Davis Bacon wages rates 17 ACQUISITION,RELOCATION AND REPLACEMENT ISSUES-For questions contact Teri Davis(303)866-2771 Will the proposed project involve the acquisition of any land or buildings? YES NO Has the Fair Market Value of the property been established by an appraisal or market YES NO comparison with at least three other properties?(Please include appraisal or comparable) If not, how was"Fair Market Value"estimated? Has the seller/owner been notified of the Fair Market Value and signed the appropriate YES NO Voluntary Transaction forms(Sample forms see Attachment°F', page 25) Date of Notification: Will the proposed project activity directly result in permanent, temporary or economic YES NO displacement? If yes contact the Division of Housing staff, since there are mandated time frames and requirements, which must be met to minimize relocation cost. If yes, are the displacees considered low-income families or individuals? YES NO (include documentation of current resident incomes) If yes, what steps have been taken to minimize displacement? If yes, what assistance/benefits will be provided to displacees? Will the proposed project result in the demolition or change in the use of any existing low YES NO income housing units'? If yes, what plans have been developed to replace the units and ensure that they stay at or below"Fair Market Rent"for 10 years? 18 The Chief Elected Official of the governmental unit, officer of the private corporation, or appropriate signatory must sign below. Additional signatures are required only in the case of "multi jurisdictional" applicants. If,this is a multi jurisdictional application, the Chief Elected Official.'at each'municipality and county participating in.the application must sign. To lhe best of my knowledge and:belief, statements and:,data in.this application, including the required Statement of Assurances and Certification's (Attachment A), the attached:tables and other documentation, are true and correct. Siki Signature ski Signature ifet Signature .e 31 4 Glenn Vaad Name(Typed or Printed) ' °,, Name(Typed or Printed) 44 ` Name(Typed or Printed) ,F,' Chair, Board of ptg'` '4 £ '` * ' County Commissioners A, . lit }, ri414 Title Weld County, Colorado 3."1-z<14.?, Title ` Title 07/22/02 t4 Date Date { Date . „, a'A`x 3MT''c l ',, Ty 4, 4tr:i . 4"s " Signature 4t ! Signature '::4 Signature Rkklel, :4744,1, Name(Typed or Printed) Vim,: Name(Typed or Printed) 4` Name(Typed or Printed) Title z' ; Title ' Title ti , l4 q Date l Date ,_= Date 19 Colorado Division of Housing Loan/Grant Programs ATTACHMENT"A"APPLICANT STATEMENT OF ASSURANCES AND CERTIFICATIONS The application must adhere to the following assurances and certification,that it: 1) possesses legal authority to apply for the loan/grant and to execute the proposed project, and its governing body has duly adopted or passed as an official act a resolution, motion or similar action authorizing the filing of the application, including all understandings and assurances required, and directing and authorizing the applicant's chief executive officer and/or other designated official representatives to act in connection with the application and to provide such additional information as may be required;and 2) will give the State, the U.S. Department of HUD, and any state authorized representatives access to and the rights to examine all records,books,papers or documents related to the application and grant 3) adheres to the Title VI of the Civil Rights Act of 1964(P.L 88-352)and Title VII of the Civil Rights Act of 1968(P.L.90- 284),inorder to affirmatively further fair housing 4) it is following a detailed citizen participation plan which: provides for and encourages citizen participation that emphasis on participation by persons of low and moderate income who are residents of areas which Community Development Block Grant (CDBG), Home Investment Partnership (HOME), Housing Development Grant (HDG) and Revolving Loan Fund (RLF)funds are proposed to be used; fl. provides citizens with reasonable and timely access to local meetings, information, and records relating to its proposed and actual use of CDBG,HOME,HDG and RLF funds; Ill, provides for technical assistance to groups representative of persons of low and moderate income that request such assistance in developing proposals with the level and type of assistance to be determined by the applicant; IV. provides for public hearings to obtain citizen views and to respond to proposals and questions at all stages of the community development program, including at least assessing needs, review of proposed activities, and review of program performance, which hearings shall be held after adequate notice at times and locations convenient to potential or actual beneficiaries, and with accommodation for the handicapped; V. provides for timely answers to written complaints and grievances, within 15 working days where practicable;and VI. identifies how the needs of non-English speaking residents will be met in the case of hearings where a significant number of non-English speaking residents can be reasonably expected to participate. 5) has provided for and encouraged citizen participation, with emphasis on participation by persons of low and moderate income who are residents of areas in which CDBG,HOME,HDG and RLF funds are proposed to be used;by furnishing citizens information concerning the amount of funds available for proposed housing activities and the range of activities that may be undertaken, including the estimated amount proposed to be used for activities that will benefit persons of low and moderate income. Its plans for minimizing displacement of persons as a result of activities assisted with CDBG, HOME, HDG and RLF funds and its plan for assisting persons actually displaced as a result of such activities; II. publishing a proposed project plan/application in such a manner to afford citizens an opportunity to examine its content and to submit comments on the proposed project plan/application and on the community development performance of the jurisdiction(s); III. holding one or more public hearings, as indicated below, to obtain citizens view and responses to proposals and questions related to community development and housing needs, proposed activities and past CDBG, HOME, HDG, and RLF performances. All hearings were held no sooner than five days after notice, at times and locations convenient to potential or actual beneficiaries, and with accommodation for the handicapped and for the needs of non-English speaking residents where a significant number of such residents could have been reasonably expected to applicant(s); AoolicarA/Particioerd In the case of a "multi-jurisdictionar application, each participating municipality and county must told S least one public hearing. Public Hearings: Date Time Location 7/9//022 1:00 o.m. 315 N.11th Venue.Bide.B.Greeley ,bvete 7//7/0 Z, c Sig111fff88BtA1111lllfffeee Chief Elected ' Director/President Date 20 ATTACHMENT "B" DIVISION OF HOUSING DISCLOSURE REPORT 1. Are you requesting more than $200,000 from the Division of Housing? Yes No X 2. Have you received or applied for other HUD funding for this project that would make the total amount of HUD funds in the project more than $200,000? Yes No X If the answer to either 1 or 2 of this Part is"Yes", then you must complete the remainder of this report. If the answer to both 1 and 2 of this Part is "No", then you are only required to sign the following certification and need not complete the remainder of this report. I hereby certify that his information is true. dat44. 07/22/02 Chief Elected Offi ' ecutive Director/President Date 3. Financial Investors Alphabetical List of All with a Soc. Security Role in Project Financial Interest in Project($ & %) Financial Interest in the Project or Employer ID# of over$50,000 or 10% of Total Project Costs 4. 1 hereby certify that the information provided in this disclosure is true and correct and I am aware that any false information provided or lack of information knowingly made or omitted may subject me to civil or criminal penalties under Section 1001 of Title 18 of the United States Code. In addition, I am aware that if I knowingly and materially violate any required disclosure of information, including intentional nondisclosure, I am subject to a civil money penalty not to exceed $10,000 for each violation. Chief Elected Official/Executive Director/President Date • 21 ATTACHMENT "C"SUGGESTED FORMAT PUBLIC HEARING ANNOUNCEMENT This notice must be published as a legal notice in a newspaper of general circulation in the area for one day at least five days prior to the public hearing. The (Name of Applicant) will submit an application to the Colorado Division of Housing. Before an application is submitted to the Division of Housing we invite all interested persons to attend a public hearing on (Date, Time, Location). The purpose of this application is to request (Amount of DOH Funding Request) to develop (Number of Units) of rental or homes for purchase at (Street Address of Property). The proposed development will increase the availability of affordable housing in our community. The request of funding from the Division of Housing is to benefit persons with low and moderate incomes. It is not the intent to cause displacement from any existing housing; however, if persons are displaced from their existing residences reasonable housing alternatives will be offered. Written comments should be mailed to (Mailing Address of Applicant) and will be forwarded to the Division of Housing for consideration during the application process. If special accommodations are needed for persons attending the public hearing, please let us know in advance. INSTRUCTIONS FOR COMPLETING PUBLIC NOTICE State the specific purpose of the funding request, the amount requested, the address/location of the housing development or service area of the housing assistance. The name of the applicant and the anticipated application submission date. The time and place of the public hearing. The public hearing must be held in the community of the proposed project. For other housing assistance projects, such as down payment or housing rehabilitation assistance, it must be held at a central location. The public hearing must be held in a location that is handicapped accessible and convenient for all citizens especially those households directly benefiting from the requested assistance. The public hearing 'proof of publication" must be submitted to DOH with the application. This submission should include the written record of comments raised by persons in attendance at the public hearing and the applicant's response. Division of Housing staff will be in attendance at all public hearings proposing to (redevelop rental or'for sale" properties. Applicants for DOH funding are encouraged to involve residents and local governments in their development process and in the formulation of their management policies. The Division will provide each successful DOH applicant guidelines for adopting"Good Neighbor' practices. 22 ATTACHMENT"D" REQUIRED FOR ALL PROJECTS SUGGESTED FORMAT RESIDENTIAL ANTIDISPLACEMENT AND RELOCATION ASSISTANCE PLAN The(City, County, Agency or Company) will replace all occupied and vacant low/moderate income dwelling units demolished or converted to a use other than as low/moderate income housing as a direct result of activities assisted with HOME funds, as required by Section 105(b) of the Cranston-Gonzales National Affordable Housing Act (42.U.S.C. 12705(b)) and or with CDBG funds, as required by Section 104(d) of the Housing and Community Development Act of 1974, as amended(the Act). All replacement housing will be provided within three years of the commencement of the demolition or rehabilitation relating to conversion. Before obligating or expending funds that will directly result in such demolition or conversion, the(City, County, Agency or Company)will make public and submit to the State the following information in writing: 1. Description of the proposed assisted activity;the general location on a map and approximate number of dwelling units by size(number of bedrooms)that will be demolished or converted to a use other than as low/moderate dwelling units as a direct result of the assisted activity; and a time schedule for the commencement and completion of the demolition or conversion. 2. The general location on a map and approximate number of dwelling units by size(number of bedrooms) that will be provided as replacement dwelling units; the source of funding and a time schedule for the provision of replacement dwelling units; and, the basis for concluding that each replacement dwelling unit will remain in a low/moderate income dwelling unit for at least 10 years from the date of initial occupancy. 3. Information demonstrating that any proposed replacement of housing units with smaller dwelling units (e.g., a 2-bedroom unit with two 1-bedroom units), or any proposed replacement of efficiency or single- room occupancy(SRO)units with units of a different size, is appropriate and consistent with the housing needs and priorities identified in the approved Consolidated Plan. To the extent that the specific location of the replacement housing and other date in items 1 through 3 are not available at the time of the general submission, the (City, County. Agency or Company)will identify the general location of such housing on a map and complete the disclosure and submission requirements as soon as the specific data are available and will provide relocation assistance, as described in 570.496a(b)(2), to each low/moderate income household displaced by the demolition of housing or by the conversion of a low/moderate income dwelling to another use as a direct result of assisted activities. (name and phone number of the office)will be responsible for tracking the replacement of low/moderate income housing and ensuring that it is provided within the required period and will be responsible for providing relocation payment and other relocating assistance to any low/moderate income person displaced by the demolition of any housing or the conversion of low/moderate income housing to another use. Consistent with the goals and objectives of activities assisted under the Act,the (City, County.Agency or Company) will take the steps indicated below to minimize the displacement of persons from their homes: Provide substantial levels of relocation assistance, as required by 24 CFR 570.496a(b)(2). The substantial cost of providing such assistance serves as a strong deterrent to unnecessary displacement. (REQUIRED) Replace all occupied and vacant occupiable low/moderate income housing demolished or converted as a direct result of HOME-assisted project activities, and makes such replacement housing affordable for at least ten years. The substantial cost of providing such replacement housing serves as a strong deterrent to unnecessary displacement. (REQUIRED) Consider all practical alternatives to any proposed project,which may result in residential displacement. Alternatives to be considered include other sites for the proposed facilities/project. Also to be considered are the costs and benefits, both financial and non-financial, of each alternative. Signature of Chief Elected Official/Executive Director/President Date NOTE: EACH MUNICIPALITY AND COUNTY DIRECTLY PARTICIPATING IN A MULTI-JURISDICTIONAL APPLICATION IS REQUIRED TO HAVE A RESIDENTIAL ANTIDISPLACEMENT AND RELOCATION ASSISTANCE PLAN. 23 ATTACHMENT "E" DAVIS-BACON EXCEPTION CHECKLIST Project# The Applicant (Name) affirms that(part/all)of its HOME/CDBG project is accepted from Davis-Bacon Prevailing Wage Rate Provision because: /" (a) The HOME/CDBG funds are used for acquisition ONLY and there is no construction. (b) HOME/CDBG funds will be used for constructing or rehabilitating property that was designed for fewer than eight units (if CDBG funds are used) or twelve HOME designated units (if HOME funds are used). **(See Discussion Below) c) The prime construction contract funded in whole or in part with HOME/CDBG funds is less than $2,000. (d) Part/all of the project consists solely of delivery of goods or services. (No construction contract.) (e) Part/all of the project will be done through a force account. *** (For example, the grantee uses persons employed by the City to perform the work) (f) There are no federal monies in the construction contract. (g)All or a portion of the HOME/CDBG funds shall be used for the purchase of equipment: (Check one) 1)Installation of equipment is incidental (less than 13%)of the total cost(equipment PLUS installation - this requires a separate quote for equipment and the installation; _ 2)NO installation costs are included in the purchase of equipment. (h) Proceeds of the HOME/CDBG loan shall be used for working capital ONLY. ***Applicant should confirm with your development staff member regarding this option. Clarification is necessary because some housing type projects will qualify as public facilities and not as housing. ***A force account is when a City or County receives funds and completes the project using their own employees. All employees in this case would be on the local government payroll. 7//7/O Z Signature of ResponsibleAdministrator Date 24 ATTACHMENT "F" ACQUISITION OF LAND AND/OR BUILDINGS - Sample Letter to Owner Date: Owner Name: Owner Address: Property at: (list address here) Purchase Price: Buyer. (agency, developer, or community name) This is to inform you that (insert buyer's name) would like to purchase the property listed above. They have offered you the purchase price listed above for clear title to the property under the conditions described in the contract of sale. Because Federal funds may be used in the purchase, however, we are required to disclose to you the following information: 1. This sale is voluntary. If you do not wish to sell, (insert buyer's name)will not acquire your property. (Insert buyer's name) does not have the authority to acquire your property by force. 2. We estimate the fair market value of the property to be: (insert value). Since the purchase would be a voluntary, arm's length transaction, you would not be eligible for relocation payments or other relocation assistance under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), or any other law or regulation. If you have any questions about this matter, please contact (contact person) at(phone number). Sincerely, (Applicant signature) I have read the above and agree with the statements therein. Owner signature: 25 Substitute Form REQUEST FOR TAXPAYER IDENTIFICATION Colorado Department of W-9 NUMBER(TIN)VERIFICATION Administration Do NOT send to IRS PRINT OR TYPE RETURN TO ADDRESS BELOW Legal Name Weld County Housing Authority Trade Name Primary Address City.State.zip PO Box 130, Greeley, CO 80632 Remit Address-Optional City.State.Zip PO Box 130, Greeley, CO 80632 Order Address-Optional City.State.Zip Check legal entity type and enter 9 diok Taxpayer Identification Number(TINT below: (SSN=Social Security Number FEIN=Federal Identification Number I ❑Individual NOTE:If no name is circled on a Joint Account the number will be considered to be that of the first name listed. (Individual's SSN)_-- -- Sole Proprietorship(owner's SSN or Business FEIN) (SSN) 0 (FEIN) ❑Partnership ❑General 0 Limited (Partnership's FEIN) - ❑Estate/Trust NOTE:Do not furnish the identification number of the personal representative or trustee unless the legal entity is not designated in the listed account title. List and circle the name of the legal trust,estate,or pension trust. (Legal Entity's FEIN)___ ❑Other Groups of Individuals (Limited Liability Company,Joint Venture Association,Club) (Entity's FEIN) ❑Corporation Do you provide medical services? ❑Yes ❑No (Includes corporations providing medical billing services) (Corp.'s FEIN) - Government(or Gov Operated)Entity (Entity's FEIN)84- 156446 0 Organization Exempt from Tax under Section 501(a) Do you provide medical services? ❑Yes ❑No (Orgs EIN) -_ ❑Check Here if you do not have a SSN or FEIN,but have applied for one. See reverse for information on How to Obtain A TIM Licensed Real Estate Broken ❑Yes ❑No Under Penalties of perjury,I certify that: (1) The number listed on this form is my correct Taxpayer Identification Number(or I am waiting for a number to be issued to me)AND (2) I am not subject to backup withholding because:(a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends'or(c)the IRS has notified me that I am no longer subject to backup withholding (does not apply to real estate tramaa.tiuru, mortgage interest paid, the acquisition of abandonment of secured property,contribution to an individual retirement arrangement(IPA),and payments other than interest and dividends). CERTIFICATION INSTRUCTION -You must cross out item (2)above if you have been notified by the IRS that you are currently subject to backup withholding because or under reporting interest or dividends on your tax retum.(See Signing the Certification on the reverse of this form.) AGENCY USE ONLY Agency Approved By Date 1099 Y N Action Completed By Date _ Vend Addition Change 26 co Y V m m 0 co O) a co I cc co m f° Nu? CO m m m w m N m w m m N la) N O N m N m = m = m = 0 N m J 0 m N m O �_ O m o ao O co C) l7 co U M OU f7 OU p U t+) OU CI 7 O O O �N co N t0) O U M2 cf) « �- O U to ��.. N —� to � N O N N f7 d N YO Sin tin 03 N Z m Yin tin in Z V; Yin O CO a co W � W QpO u' Q WH Cd. 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'; 0 c ai r. w .a E 3 f° m ai c4 - °) Z a 0 c U 0 .y a a ca 'E 0 W = Q a) >,❑ Y >: U - m0 E y W d T E. c 3 o m = K ® LL c O m v 0 U a) 2 a o c c o W IZ c 4) m Q Ea a) U a_f eg)) o d 3 ill U 0 0 c t ai ' E f 0I- 2 d 0 0 ~ O ai c 0 a c m m 0 0 Q d t 0 d c c 0 c m c co d (9 'c W ') ai c0 cm E a E -0 m m Ae m % a 0 2 a m c c t t J co < V 0 0 CO W 0 CO 0 < < 0 0 ft. 0 0 = O ).- N N C) V' ..- N C) C) CO CO 'Tr Y U) CO N- CO 0) ZZZZZZZZZ 2 2 Z 2 2 2 2 2 ZZ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 W W W W W W W W W W W W W W W W W W W ATTACHMENT "I" Colorado State Housing Board Policy Statement Regarding Cost Effectiveness and Developer Fee Payments on Publicly Financed Affordable Housing Projects As the Board charged under State Statute to make recommendations on grant awards to private enterprise and all public and private agencies for the construction and acquisition of adequate affordable housing in Colorado, the State Housing Board finds that it is in the public interest to provide financial incentives to those projects which can demonstrate the most cost effective use of the financial assistance provided. The amount and the timing of payment of developer fees can significantly impact the financial feasibility of a project. Those contemplating the construction or rehabilitation of housing for low and moderate income households, financed in part with state grants or loans, should use these policy objectives in planning the financial package for housing development. GUIDELINES 1. Developer fees as a percent of total development costs should not exceed the following limits: Rehab <25 units 10% >25 units 5% New Construction <25 units 15% >25 units 10% 2.The bulk of non-profit developer fee payments should be made with project cash flow over time. Only reasonable and necessary expenses for overhead, staff and professional fees incurred during the predevelopment and construction phase should be reimbursed at the time of closing the permanent financing. 3.Timing and payment of for-profd developer fees will be determined based upon a cash on cash analysis of owner equity and necessary and reasonable expenses for overhead, staff, and professional fees incurred during the predevelopment and construction phase. Generally, 8% cash on cash return will be deemed reasonable for calculating a rate of return on owner equity during the development phase. Additionally, an internal rate of return analysis will be used in determining what percentage of developer fees should be paid upon closing of the permanent financing in comparison to payouts over time through excess cash flows. Generally project subsidies will be reduced to limit an intemal rate of retum to 15%or less. Guidance These guidelines are intended to ensure that with the limited amount of funds available for affordable housing projects, each dollar benefits the largest number of Colorado residents. Nonprofit organizations, which develop affordable housing, play an important role in supplying housing to those in greatest need. However, state and federal grants for housing development should not be viewed as government endowments for future organizational expenses. Non-profit organizations are granted certain benefits to further their charitable mission including access to foundation and govemmental assistance in the form of grants and certain tax exemptions. Like any business, which incurs expenses as a result of its operations, non-profit agencies need to be made whole for the costs incurred in bringing housing developments forward to the occupancy phase. 28 In order to satisfy the demand for housing units in a variety of price ranges, private, profit-motivated developers need to receive a reasonable return on their investments. Because of the need for public subsidies in affordable housing developments, for-profit developers should weigh the advantages of limited retums on projects,which receive substantial equity subsidies. By increasing equity and providing below market rate financing, a government agency can reduce the investment risk a developer faces in a given project. These guidelines provide definition to the response project planners may expect when the State Housing Board and Division of Housing staff review assistance requests. Housing developers are encouraged to consult with Division of Housing staff for further information on how these guidelines may impact the financial projections on a given project. Colorado housing markets are diverse and there may be instances when the above guidelines do not apply to a particular development plan. In such instances, the State Housing Board and DOH staff will work with project developers to arrive at financing plans which best meet the goal of providing cost effective affordable housing opportunities for Coloradoans. Balancing Construction/Maintenance and Operation Costs The type and quality of structure are meaningful to the cost of construction and to the cost of operation. A balance should be achieved between construction costs and maintenance or operation cost. For example, electric heating may be less expensive to install in a new apartment building but natural gas heat may be significantly less expensive to operate over the life of the project. Similarly, more durable structures may be less expensive to maintain but may be so much more expensive to build that there is no overall benefit. Additionally, construction quality or building type may be a factor in obtaining grants or charitable contributions to help fund the project. Public entities may be reluctant to contribute to projects, which appear luxurious, but also unwilling to fund projects, which will quickly become maintenance problems or immediately viewed by a community as blight. The nonprofit developer needs to understand the attributes of construction type, which represent the best likely balance between building and maintenance cost and are most likely to be accepted by public entities and contributors. Discussions with the architect and engineer at the early stages of development create opportunities for substantial cost savings in the future. Construction Type Construction type can be categorized according to recognized descriptions. Class A construction typically reflects steel and concrete structures of multiple stories with glass or panelized curtain walls. Class B construction typically represents multiple story concrete structures with glass, brick or panelized curtain walls. Class C construction reflects masonry (block or brick) structures, which may incorporate steel or concrete structural elements. Class D construction is basically wood frame construction, which may also incorporate steel or concrete structural elements. Steel buildings, often prefabricated with steel skin and roofing material, represent class S construction. These general classifications are classified by cost estimating services such as Marshall Swift and Means Construction Data. They apply to the basic structure and may be combined. For example, an apartment building may use block or masonry bearing walls(Class C) and wood interior framing and roof trusses(Class D). Class A and Class B are the more expensive classifications and are not likely to make sense except for mid-rise, high density projects or multiple use structures in which commercial uses bear the greater burden of amortizing the cost of the building. Classes C and D are most likely to produce a favorable balance between acceptable appearance, affordable building cost and efficient operational cost. These classes include modular and prefabricated components, which may further contribute by decreasing construction time. 29 Designs for affordable housing should concentrate on these construction types. Furthermore, using previously developed plans as a basis for new projects can control design costs. Numerous FHA and Rural Development (formerly FMHA)financed multi-family projects have been constructed throughout the state from designs, which can be adapted to a variety of site conditions. Contacts with developers of these projects or architects who have participated in those projects may result in some cost savings by building on or modifying previous designs. Some design elements are likely to produce unfavorable reactions from contributors, public entities and neighborhood opposition groups. Wherever possible, projects should take advantage of proximity to public recreational facilities rather than including recreational amenities. Similarly, common area amenity costs should be appropriate to the situation. For example, community rooms, clubhouses or kitchens should not duplicate nearby public facilities, which could be used by residents for the same purposes. Although amenities are necessary to attract tenants, careful consideration in the design phase can keep the cost of these features at an acceptable level. Outdoor courtyards and landscaped areas,for example, can be used to provide lower cost common elements, which make a project more desirable without the higher cost of incorporating these features within the structure. Other design elements such as vaulted ceilings; basements, balconies and extensive use of angles add cost and may be perceived as providing more than is needed for basic housing. Construction Quality Within the classification type, construction costs also vary with quality. Generally, lower quality meets minimum building code requirements with few embellishments. As quality increases, product features are increased within the classification and greater qualities of material and workmanship are involved. For example, a masonry structure at the lowest quality and cost level may use slump or split-faced concrete block exterior walls with no other adornment. At a higher quality level, a stucco or face brick covering may be applied to the basic block construction. The facing material contributes to both the appearance and longevity of the underlying block structure. Again, a balance should be achieved between construction cost, life expectancy and operating cost. Wood frame construction can be expected to last longer with less maintenance when brick or stucco facing is used. Certainly, maintenance costs will be lower than with composition or wood siding, but the initial cost of brick or stucco may eliminate the feasibility of the project. It should be noted that some construction components could be upgraded at a future date while others do not allow for improvement. Roof coverings, siding, interior finish and even windows and doors can be upgraded. Composition of sub-flooring, roof trusses, framing sound barriers and other structural components cannot be modified without a great deal of effort and expense. It may make sense, therefore, to utilize higher quality structural components and save cost on elements, which have shorter lives than the overall life expectancy of the building. Foundation walls can incorporate brick ledges, allowing a brick facing to be added to the building at a future date when lower cost siding needs replacement. Concrete or metal stairs and floor under-lay may prevent costly repairs late in the economic life of a multi-story building. When planning a project it will be helpful to discuss these elements with the architect so that the cost estimates can be developed with quality level options. These can form the basis for a cosflbenefit analysis. Ideally, this analysis should weigh initial construction costs against project objectives and requirements, and then progress to an evaluation of building costs versus operational costs. 30 COST CONTAINMENT GUIDANCE Cost Guidelines Guidelines for development cost must be general and cannot account for all of the individual variables, which might be encountered. They also often end up as self-fulfilling prophecies. When a guideline suggests that costs should total no more than $50 per square foot, that upper limit becomes an acceptable cost level and little scrutiny is given to estimates at that level, which could in fact be overstated. General parameters, however, can be useful tools in evaluating project design and estimates of cost. The U.S. Department of Housing and Urban Development publishes total development cost (TDC) limits on a regional basis with trending adjustments for the increase in cost components during the construction period. The TDC limits suggest the following unit sizes. These general standards represent current indicators of modest but decent housing, inclusive of public areas such as hallways, stairwells and common rooms. SUGGESTED Sae Walt Unit Type Unit Size Studio or Efficiency 500 SF One Bedroom 700 SF Two Bedroom 900 SF Three Bedroom 1,200 SF Four Bedroom 1,500 SF Five Bedroom 1,700 SF Six Bedroom 1,900 SF HUD calculates maximum TDC for a development by multiplying the number of units of each bedroom type by the applicable limit for that unit type and adjusting for cost trending and development difficulty. Cost trend factors are developed from cost reporting services and account for an average construction period of two years. The current factor increases cost at six percent per year. Additional modification can be made up to five percent if necessary to account for extraordinary site costs, high land costs in low poverty areas, unavoidable environmental expenses, or need for community space. HUD limits adjustments to no more than 10 percent of the initial TDC limits. These limits must be viewed as establishing general parameters. The following table indicates the range of TDC limits for various unit sizes and types. The lower end of the range represents costs from areas in Colorado where land and labor costs are lowest and the upper end represents areas where land values are higher, material costs reflect a higher transportation component, labor costs are higher and a variety of factors make development more difficult. 31 TOTAL DEVELOPMENT COST LIMITS Unit Type Studio One Two Bedroom Three Four Five Six Bedroom Bedroom Bedroom Bedroom Bedroom Single Family and Semi-Detached $83,193 $108,215 $137,781 $171,442 $202,515 $222,311 $240,568 $92,513 $120,281 $153,313 $190,548 $225,199 $247,356 $267,888 Row Dwelling orTownharee $70,052 $92,482 $120,221 $151,158 $178,124 $195,261 $211,366 $77,117 $101,926 $132,898 $167,017 $196,945 $215,994 $234,019 Walkup Apartment $53,653 $71,571 $90,148 $119,002 $147,259 $166,893 $186,528 $64,340 $84,919 $106,457 $140,202 $173,078 $196,156 $219,233 Elevator Apartment $54,595 $76,434 $98,272 $131,029 $163,786 $185,625 $207,463 $66,605 $93,246 $119,888 $159,851 $199,814 $226,455 $253,097 The following examples illustrate how the TDC limits would be calculated for a project in a low cost area as compared with the most expensive development situation. Low Cost Example 5 One Bedroom Units $71,571=$357,855 10 Two Bedroom Units (g) $90,148=$901,480 10 Three Bedroom Units CI $119,002=$119,020 SUBTOTAL $2,449,355 $2,449,355 x 0.06(6%Trend Factor)= $146,961 Total Development Cost Limit $2,596,316 High Cost Example 5 One Bedroom Units $76,434 =$382,170 10 Two Bedroom Units (1Q $98,272 =$982,720 10 Three Bedroom Units © $131,029$1,310,290 SUBTOTAL $2,675,180 $2,675,180 x 0.05 (High Cost Factor)= $133,759 SUBTOTAL $2,808,939 $2,808,939 x 0.06 (6%Trend Factory= $168,536 Total Development Cost Limit $2,977,475 32 NARRATIVE The Weld County Housing Authority and the Weld County Board of Commissioners continue to be concerned about the ability of families to become first time homebuyers based on the currently high market conditions. The price of homes in Weld County, like much of the front range, has skyrocketed. In 1990, the average price of a home in the Greeley/Evans area was $68,600. According to Sears Realtors Multi-List Service, the average home in Weld County as of June 2002 is $185,773, with a median price of $163,020. The median price of a home in Greeley/Evans is $149,008. During the week of June 10, 2002 there were 1,469 homes on the market in Weld County, 874 of those homes are located in Greeley/Evans. This has made it increasingly difficult for families to buy a home. The down payment assistance program will provide an opportunity for those who would otherwise qualify, with the exception of not having the required down payment, the means to become homeowners. The program is marketed to the public, lenders, and realtors. This program has been well received by the realtors and the mortgage/lending community. Those who will most benefit from the program will be households earning between 60 and 80 per cent of the median income. People in that income category may include, school teachers, mechanics, fire-fighters, police officers, and bank tellers. Unless the family has assistance from other family members, or has been fortunate enough to save for the full amount of the down payment, it makes it very difficult for households at less than 80 per cent of median income to become homeowners. Given the current real estate market, may families cannot afford the down payment. This program provides an additional option to individuals and families who have made the decision to become a homeowner The funds will be used to administer and provide assistance of$ 5000.00 to 14 families at a cost of$ 500.00 per family. The program will be marketed through the county news and radio media, as well as by the real estate community throughout the County. The program will be marketed with material written in English and Spanish, in order to reach the non-English speaking monolingual households. 33 Hello