CAPE COD COMMISSION
BARNSTABLE COUNTY

Barnstable County Rental Housing Program (RHP)

REQUEST FOR APPLICATIONS

Updated January 2003

 

I. Introduction

Barnstable County accepts applications from non-profit organizations, municipalities and private entities interested in receiving RHP funds to assist them in undertaking the development of affordable rental housing for low-income households.

RHP funds are intended to increase the availability of affordable rental housing through acquisition, rehabilitation and new construction. These funds shall be administered by the Barnstable County HOME Consortium through the office of the Cape Cod Commission. These funds are being made available to undertake the following activity:

RHP funds are being made available to cover a portion of the soft and hard costs associated with the creation of affordable rental housing through acquisition/rehab of existing units or new construction.

The Cape Cod Commission's affordable housing specialist in concert with the Consortium's HOME Advisory Council will review applications and recommend to the County the awarding of RHP funds.

II. Funding Levels

The following funding levels have been established for the RHP:

1. No single funding award will exceed $75,000.

2. Applicants should note that the minimum RHP expenditure is an average of $1,000 per RHP assisted unit and a maximum of $15,000 per RHP assisted unit.

Generally, awards will be provided in the form of a Forgivable Loan (FL). The FL will be secured through a Promissory Note and Mortgage to be executed between the County and the borrower. The term of the mortgage will range from 15 to 40 years (depending on award amount) with no interest and no monthly payments. All or a portion of the FL will be repaid if the property is sold, transferred or otherwise encumbered during the term of the mortgage or if the terms and conditions of the loan are violated. The RHP also requires execution of a Loan Agreement and Affordable Housing Restriction between the County and the Borrower. The Affordable Housing Restriction is recorded with the Mortgage and maintains the affordability of the RHP assisted units for the term of the Mortgage.

The obligation of the County to advance RHP funds is subject to the project's plan being approved by all federal, state, regional and local authorities having jurisdiction over the work and the issuance of building permits with respect to the project.

III. Eligible Property Types

RHP funds may be used for the following types of properties:

• multi-family
• 1-4 family residence
• condominium unit
• cooperative unit
• manufactured home and lot

Properties included in an application may be located on a single site or on scattered sites that are under common ownership and financing.

IV. Eligible Project Size

Priority for RHP funds will be given for projects containing a minimum of three units.

V. Eligible Project Costs

RHP funds may be used to pay the following eligible costs:

1. Development Hard Costs. These include acquisition of property, site improvements, construction, rehabilitation, conversion and demolition.

2. Development Soft Costs. These include, financing costs, such as building permits, legal and developer fees, property appraisals, credit and title costs, etc. Also included are engineering, architectural, or related professional services, relocation costs, affirmative marketing, and fair housing information.

VI. Property Standards

Housing that is constructed or rehabilitated with RHP funds must meet all applicable local codes, rehabilitation standards, ordinances, and zoning ordinances at the time of project completion.

VII. Income Targeting

1. 100% of RHP funds are invested with respect to dwelling units that are occupied by families whose annual incomes do not exceed 80% of the median family income, as determined by HUD, with adjustments for smaller and larger families at the time of occupancy or at the time funds are invested, whichever is later; or

2. The dwelling unit assisted with such funds are occupied by families having such incomes.

VIII. Rental Rates

The rents that may be charged on RHP assisted units are the 80% rents as established by the MHP Fund and MassHousing.

IX. Long-Term Affordability

All RHP-funded rental housing units must contain long-term affordability restrictions. The length of the restriction will depend on the project award as indicated below:

• 15 years for award below $15,000;
• 20 years for award between $15,000 to $29,999;
• 30 years for award between $30,000 to $49,999;
• 40 years for award of $50,000 or more.

After the first year and on an annual basis thereafter, applicants receiving RHP rental housing funds must recertify tenant income, rent, and utility allowances and present their findings to the Cape Cod Commission, or its designee. If, through the annual recertification process, it is determined that the rent and income targeting requirements have not been met, procedures will be implemented to recapture the full amount of the RHP subsidy.

X. RHP Funding Priorities

The following funding priorities have been established for applications seeking RHP development funds. These priorities have been established to support projects with the following special characteristics:

1. Target households whose income do not exceed 80% of median income;
2. Will reduce environmental impacts through use of innovative strategies and/or technologies;
3. Inclusion of Minority/Women's Business Enterprise members on the development team;
4. Low development costs;
5. Low soft costs and developer's fee;
6. Minimize the per-project amount of RHP funds in funded projects;
7. Revitalize stressed or failed properties;
8. Projects involving displacement will be considered less competitive.

In addition to the above, applicants for RHP funds should note the following preferences:

• Projects that are ready to proceed.
• Projects containing 15 or less units.
• Projects utilizing town/county donated land/buildings.
• Projects that target use of existing structures.
• Projects that target objectives contained in the Regional Policy Plan and/or a town's Local Comprehensive Plan or housing action plan.
• Projects that include the physically challenged, the developmentally disabled, persons with AIDS, and single heads of households.

XI. Other Requirements

What follows is a brief summary of other requirements that RHP funded projects must meet.

Uniform Relocation Act: RHP projects are subject to relocation requirements under the Uniform Relocation Act of 1970 and implementing regulations at 24 CFR 92.353. URA requirements are initiated whenever displacement occurs as a direct result of rehabilitation, demolition, or acquisition of a RHP-assisted project.

Affirmative Marketing: To be considered for RHP funding, all applicants are required to include policies and procedures for the affirmative marketing of housing opportunities for projects with three or more units.

XII. Evaluation Criteria

Applications for RHP funding will be evaluated on the following criteria:

1. Experience of the Project Organization and of Development Team Members.
2. Financial Strength - Adequacy to Carry Out Project - Project Feasibility.
3. Responsiveness of Proposal to Program Guidelines and Funding Application.

XIII. Submittal Requirements and Other Information

Applications (3 copies) are to be mailed or hand delivered to the Cape Cod Commission's office, located at 3225 Main Street, Barnstable, MA 02630.

The County will accept the state's One-Stop application as a substitute for the RHP application for those projects that will be seeking state funds.

The Commission reserves the right to seek additional information from any and all applicants, including an interview.

The Commission reserves the right to reject any and all applications; to waive any requirements of this application format, to waive any minor informalities in applications; to modify or amend, with the consent of the respective firm, any application, if otherwise permitted by law; and to effect any agreement deemed by the Commission to be in its best interest.

Technical questions about this application for RHP development funds should be directed to Paul Ruchinskas at the Commission: telephone (508) 362-3828; FAX (508) 362-3136); e-mail pruchinskas@capecodcommission.org.

* * We look forward to your application for RHP funds * *