LOUISIANA HOUSING CORPORATION Housing Production Department www lhc

LOUISIANA HOUSING CORPORATION Housing Production Department www. lhc. la. gov Louisiana. Housing. Corp @lahousingcorp Louisiana-housing-corporation

HOME Investment Partnership Program § Largest federal block grant to state and local governments designed exclusively to create affordable housing for lowincome households § 40% of HOME funds go to states and 60% to local participating jurisdictions (PJ) www. lhc. la. gov Louisiana. Housing. Corp @lahousingcorp Louisiana-housing-corporation

HOME Investment Partnership Program Entitlement Areas: § City of Baton Rouge and the unincorporated areas of EBR Parish, City of Lafayette and the unincorporated areas of Lafayette Parish, Houma-Terrebonne, Cities of Alexandria, Lake Charles, Monroe, New Orleans, Shreveport and the Jefferson Parish Consortia • HUD publishes annually the allocated amounts for each jurisdiction. Participating jurisdictions must have a current and approved consolidated plan describing how the HOME funds will be utilized. www. lhc. la. gov Louisiana. Housing. Corp @lahousingcorp Louisiana-housing-corporation

HOME Investment Partnership Program Community Housing Development Organizations (CHDO) ØAt least 15% of the HOME allocation must go to fund housing to be owned, developed or sponsored by experienced, community driven non-profit organizations designated as CHDOs ØLHC designates CHDOs and they must have the following: § Organization and Capacity • A CHDO must have organizational and staff capacity relative to the role of owning, developing or sponsoring a housing development www. lhc. la. gov Louisiana. Housing. Corp @lahousingcorp Louisiana-housing-corporation

RHODE ISLAND IDAHO NEBRASKA OKLAHOMA NEVADA WEST VIRGINIA DELAWARE INDIANA NEW HAMPSHIRE OREGON VERMONTANA MISSOURI WISCONSIN HAWAII Florida KANSAS MASSACHUSETTS ALASKA NORTH DAKOTA NEW YORK WASHINGTON KENTUCKY PENNSYLVANIA CONNECTICUT IOWA UTAH SOUTH CAROLINA VIRGINIA ALABAMA MARYLAND NEW MEXICO OHIO MICHIGAN SOUTH DAKOTA WYOMING CALIFORNIA NEW JERSEY MINNESOTA GEORGIA ILLINOIS MISSISSIPPI MAINE COLORADO LOUISIANA ARKANSAS TENNESSEE ARIZONA NORTH CAROLINA TEXAS Percent of Funds to CHDOs 45. 00% 40. 00% 35. 00% 30. 00% 25. 00% 20. 00% 15. 00% 10. 00% 5. 00% 0. 00% www. lhc. la. gov Louisiana. Housing. Corp @lahousingcorp Louisiana-housing-corporation

Eligible Activities ØAffordable Homeownership Activity § down payment assistance and closing costs assistance ØNew Construction rental and homebuyer ØAcquisition/Rehabilitation rental, homebuyer units and owner-occupied units ØTenant-based Rental Assistance www. lhc. la. gov Louisiana. Housing. Corp @lahousingcorp Louisiana-housing-corporation

Eligible Beneficiaries ØRental housing and rental assistance § at least 90% of households at or below 60% AMI Ø 5 or more assisted rental units § at least 20% of households at or below 50% AMI ØIncomes of households receiving assistance must not exceed 80% AMI www. lhc. la. gov Louisiana. Housing. Corp @lahousingcorp Louisiana-housing-corporation

Low Mod Population Distribution Low Mod Population 800, 295. 00; 42% 1, 087, 510. 00; 58% Entitlement Low Mod Population Nonentitlement Per Low Mod Population www. lhc. la. gov Louisiana. Housing. Corp @lahousingcorp Louisiana-housing-corporation

Funds Available for Low Mod Population Funding Per Low Mod Person $6. 34; 46% $7. 58; 54% Entitlement Funding Per Low Mod Nonentitlement Funding Per Low Mod www. lhc. la. gov Louisiana. Housing. Corp @lahousingcorp Louisiana-housing-corporation

Funds Available for Low Mod Population by PJ Dollars Per Low Mod Person Houma-Terrebonne, LA; $5. 24 New Orleans, LA; $11. 25 Lafayette, LA; $5. 94 Jefferson Parish, LA; $6. 12 Monroe, LA; $8. 64 Louisiana Non Entitlement Area; $6. 34 Alexandria, LA; $7. 84 Lake Charles, LA; $6. 46 Baton Rouge, LA; $6. 97 Shreveport, LA; $7. 12 www. lhc. la. gov Louisiana. Housing. Corp @lahousingcorp Louisiana-housing-corporation

Overall Production HOME ASSISTED UNITS ALL PROGRAMS 900 800 771 700 600 500 400 300 473 298 231 200 100 22 11 61 11 42 19 0 Rental Units Homeownership Development Units. Homebuyer Assistance (Number of Persons Assisted) Total State PJ Tenant Based Rental Assistance (Number of Person Assisted Non-PJ www. lhc. la. gov Louisiana. Housing. Corp @lahousingcorp Louisiana-housing-corporation

HOME Investment Partnership Program NOAH CHAAP Purpose Entry track for non-profits interested in starting work in affordable housing production. To provide ongoing source of funding for CHDO set-aside projects. Total Funding $6, 000. 00 $2, 000. 00 Per Project Funding $400, 000. 00 $600, 000. 00 Funds Remaining $2, 000, 000. 00 Minimum Number of Units No set limit but practically 2 Maximum Number of Units 4 (Total Units) None Eligible Applicant All 501 (c) (3) non-profit organizations with a housing mission Only State (LHC) Certified Community Housing Development Organizations Eligible Projects Homeownership; Rental New Construction or Rehab Louisiana. Housing. Corp @lahousingcorp No set limit but practically 2 Louisiana-housing-corporation www. lhc. la. gov

HOME Investment Partnership Program NOAH CHAAP Minimum Leverage 15% Qualifying Project? Yes Eligible Area Initial Implementation Year is for nonentitlement only. Schedule to allow for entitlement projects beginning in January 2019. Primarily Non-Entitlement Application Time Period None. Continuously open until funds are exhausted. Non-Entitlement only period is from June to December 31 each year. Open application period is from January 1 to May 31 each year. www. lhc. la. gov Louisiana. Housing. Corp @lahousingcorp Louisiana-housing-corporation

Rental Development Initial Considerations Market Primary Question is Does a Market Exist for your project? Market Study Pros : Timely, Profession, Reliable, Independent Cons : Costly Alternative Market Analysis Pros: Cheep, Sized for Your Project Cons: May take longer, Not as reliable, Information may be difficult to obtain www. lhc. la. gov Louisiana. Housing. Corp @lahousingcorp Louisiana-housing-corporation

Alternative Market Study Requirements • Number of prospective low income (80% of AMI and less) currental households in the Market Area; • Household size of eligible prospective renters; • Vacancy Rate of Comparable projects; • Rents of comparable projects; • Capture rate; • Number of rent burden households in the market area www. lhc. la. gov Louisiana. Housing. Corp @lahousingcorp Louisiana-housing-corporation

Affordability The 30% at 65% Rule HOME Rents High HOME – Acceptable for incomes above 50% AMI Low HOME – Must be used for units set-aside for 50% and less AMI households When are Low HOME rents required? The Project Rule HOME requires that when a project has more than 5 HOME assisted units that 20% must be at or below the Low HOME rents and the units must be occupied by households at that income level. www. lhc. la. gov Louisiana. Housing. Corp @lahousingcorp Louisiana-housing-corporation

Affordability Period of Affordability Long Term Affordability Required Rental Housing Activity Rehabilitation or acquisition of existing housing per unit amount of HOME funds: Under $15, 000 to $40, 000 Over $40, 000 or rehabilitation involving refinancing Minimum Period of Affordability in Years 5 10 15 New construction or acquisition of newly constructed housing 20 www. lhc. la. gov Louisiana. Housing. Corp @lahousingcorp Louisiana-housing-corporation