Permanent Supportive Housing PSH 2021 Notice of Funding

Permanent Supportive Housing (PSH) 2021 Notice of Funding Available (NOFA) Training January 29, 2021

Agenda • Welcome • Multifamily Energy Program (MEP) Info/Update • Details and Dates • PSH Project Requirements Overview • Application Overview • Evaluation and Scoring • General Reminders • Questions

OREGON HOUSING & COMMUNITY SERVICES Multifamily Energy Program Overview Date: January 2021

PROGRAM OVERVIEW u TRC Companies administering on behalf of OHCS u Cash incentives for energy efficient upgrades u $200, 000 incentive maximum per project (projects above max. evaluated on a case-by-case basis) Program Funding Availability – as of January 2021 Fully enrolled - program waitlist* open *Encourage projects to secure a spot on program waitlist to receive notice in the event incentives become available.

ELIGIBILITY REQUIREMENTS u u u Multifamily: • Existing or New Construction (5+ units) • High-rise and low-rise Located in: • Pacific Power or Portland General Electric Tenants in at least 50% of units are at or below 80% AMI, 10 years affordability requirement Projects must be heated by a hard-wired electrical heating system to qualify for program funding Savings: • Electric saving measures • Minimum efficiency requirements according to pathway chosen NOFA and non-NOFA projects 5

PROGRAM PATHWAYS u u Existing multifamily and new multifamily both have three paths, suited for varying scopes of work Incentives escalate to reward more comprehensive design strategies PROGRAM PATHWAYS PATH 1: MENU PATH 2: BUNDLED PATH 3: WHOLE BUILDING Are you looking to improve a few elements of your property? Are you planning to go beyond basic improvements? Are you looking to boost your incentive and efficiency? Select two or more measures from a menu. Choose a bundle package for additional savings. Maximize savings through a whole building approach. 6

GETTING ON THE WAITLIST 1. Fill out an interest form at: Oregon. Multifamily. Energy. com 2. Program representative will schedule a prequalification call to determine project eligibility 3. If your project is eligible: • Submit an application • Upon application receipt, a waitlist confirmation email will be sent In the event OR-MEP funding becomes available, projects will be notified in the order that prequalification calls and applications are completed. 7

CONTACT INFORMATION Multifamily Energy Program u Phone: 503 -505 -6787 u Website: www. Oregon. Multifamily. Energy. com u Email: OHCSMultifamily. Energy@trccompanies. com 8

Permanent Supportive Housing NOFA 2021 • Participation in this NOFA is limited to the Projects of teams currently participating in the CSH Supportive Housing Institute and the Projects of those teams that participated in the 20192020 Supportive Housing Institute. • Teams that were funded in the 2020 PSH mini-NOFA and have not yet closed on financing are ineligible to apply for financing for a new Project through this NOFA. • Projects must serve qualified low-income households that are Chronically Homeless or otherwise locally defined and assessed by a community-wide homeless services system as the most vulnerable homeless persons.

NOFA Process-FAQs & Dates to Remember • Questions should be submitted to: HCS. PSH@oregon. gov Please include “PSH NOFA” in the subject line of emails • FAQs will be published at regular intervals • Questions accepted until: March 10, 2021 • Application due date: March 24, 2021 at 4: 00 PM PST

NOFA Funding • $15 million in Article XI-Q bond proceeds • Soft set-aside of 45% ($6. 75 million) for rural areas and 40% ($6 million) for urban areas, 15% for Tribal-led projects ($2. 25 million) • Other funds: • • OAHTC ($8 million) Multifamily Energy Program (MEP) 4% LIHTC Federal Housing Trust Fund (HTF) ($4 million)

Funding Limits There is no set subsidy cap. However, projects that request less than $250, 000/unit in PSH funds will receive preference.

Rural Definition a. Oregon communities with population of 15, 000 or less within counties that are considered Metropolitan Statistical Areas (MSA) and outside of the Portland Urban Growth Boundary (see section a. ). MSA Counties include Benton, Clackamas, Columbia, Deschutes, Jackson, Josephine, Linn, Marion, Multnomah, Polk, Washington, and Yamhill. b. Communities with populations of 40, 000 or less in the balance of state (not defined in parts a. or c. in this section). c. All Oregon communities within the Portland Urban Growth Boundary are considered urban and not considered rural regardless of size. Note: A community may be considered rural if it had been under the population threshold within the past 3 years of published data, and if their current population is within 5 percentage points of eligibility.

Urban Areas Definition All areas in Oregon that are not included in the “Rural Areas” definition.

Application Ranking Funds are reserved by OHCS on a competitive basis to Projects of qualifying Applicants that: 1. Pass the Preliminary Review; 2. Meet the Threshold Requirements; and 3. Have the highest-ranking score from the Scoring Committee in accordance with available funding, subject to prioritization of qualifying Projects

Project Requirements-Eligible Activity • New Construction • Rehabilitation • Acquisition/Rehabilitation • One phase of a multiphase project Please note: Developments that are under construction (including site work) at the time of application are not eligible for funding through this NOFA. Developments that begin construction after PSH Capital Fund Reservation and before PSH Capital loan closing may have their PSH Capital Fund Reservation revoked.

PSH Loan Terms • 0% interest, 30 year affordability period • Payments deferred for the loan term • 1 st lien position, can be shared • Construction and permanent financing

Project Requirements-Affordability • Affordability Period: • minimum of 30 years from the end of the year that the Project is placed in service or the length of the bonds outstanding, whichever is greater • Loans satisfied through repayment or extended affordability for another 30 year period

Project Requirements: Rents and Incomes • All units funded with PSH Capital funds must be affordable to Chronically Homeless households, earning Extremely Low Incomes (at or below 30% AMI) at the time of initial lease • Rents need to be structured so that tenants pay no more than 30% of their income toward rent • Rental Assistance funds can pay up to 60% AMI rent amounts

Project Requirements-Construction Standards • All Projects must meet local and state code requirements • "Baseline Design Requirements" of the OHCS Core. Development Manual (CDM) applies to PSH Projects https: //www. oregon. gov/ohcs/development/Pages/coredevelopment-manual. aspx

Project Requirements-Development Period • PSH Units should be ready for lease-up within 36 months of fund reservation • This NOFA anticipates funding reservations in June 2021; in which case units would be ready for initial lease-up by June 2023.

Project Requirements-Underwriting Guidelines • • Minimum debt service coverage ratio of 1. 20 on all "must-pay" debt 7% vacancy rate 2% escalation of rents and 3% escalation of expenses Capitalized operating reserve equal to six (6) months operating expenses and debt service Minimum annual replacement reserve deposit of $450 per unit Prior to closing, a Phase I environmental study is required for all PSH Projects Demonstration of meeting BOLI compliance, if applicable Other Requirements: If other public capital or operating subsidies are used in financing the Project, relevant requirements of those subsidy sources will also apply

Project Requirements: Tenancy Support Services • PSH Projects must provide comprehensive tenancy support services to tenants. • Services utilization must be voluntary for tenants. • These services are separate from behavioral and physical health services and are focused on housing access and retention. Examples include: o Tenant screening and assessment of housing preferences/barriers. o Developing an individualized housing support plan. o Assistance in requesting reasonable accommodations. o Early identification/intervention for behaviors that may jeopardize housing. o Education on the role, rights and responsibilities of the tenant and landlord.

Project Requirements-Compliance Monitoring • $25/PSH unit/year for Compliance Monitoring Fees • Monitoring elements: o Initial household income verification o Annual income verification, including through self-certification o Risk-based physical inspections every 1 -3 years based on Project condition o Other Requirements: If other public capital or operating subsidy from any source is used, the compliance requirements of those sources will be assumed to apply. For example, if 4% LIHTCs are used, all 4% LIHTC compliance requirements will apply.

Application: PSH NOFA Documents and Process 1. PSH NOFA 2. PSH Pre-application and Site Review Checklist 3. NOFA Application on Procorem o PSH Supplemental Documents on Procorem

Step 1. Download the PSH NOFA Where to get it: download from the OHCS website https: //www. oregon. gov/ohcs/development/Pages/nofa 21 permanent-supportive-housing. aspx What to do with it: Read it and refer to it as you’re working on your application

Step 2. Complete the PSH Pre-application and Site Review Checklist for Procorem/Application Access Where to get them: download from OHCS website https: //www. oregon. gov/ohcs/development/Pages/notice-of-funds -availability. aspx What to do with them: • Complete both documents (Pre-Application and Checklist) • Submit them together to HCS. PSH@oregon. gov by February 3, 2021. *Can submit prior! This action will alert OHCS staff to generate Procorem access credentials for your project. You will receive these via email.

Step 3. Complete PSH Application on Procorem Where to get it: download the full application from the Procorem work center with provided credentials sent to you via email from OHCS https: //app. procorem. com/login What to do with it: • Complete the application • Submit it and all required supplemental documentation/attachments to Procorem by 4: 00 PM PST on March 24, 2021 • Send a check along with the transmittal form for application charges to OHCS. Charges must be postmarked by March 24, 2021. Application charge payments cannot be made through Procorem.

Step 3. Complete PSH Application on Procorem Supplemental Documents must be included in the application submission in Procorem. • • • Organizational Documents Site Control Form and Evidence Zoning Form Federal Housing Trust Fund (HTF) Supplemental Form (required for all PSH applicants) PSH Development Team Capacity Supplemental Services Narrative and Preliminary Services Budget CDDs (Found in the Core-Development Manual, Part 3) OAHTC Program Supplemental Form (if claiming in Budget Sources) MEP Reservation Letter (if claiming in Budget Sources) Funding Commitment documentation

Evaluation Process • Preliminary Review • Threshold Requirements Review • Competitive Scoring

Preliminary Review Each Application will be reviewed for timeliness and completeness of the NOFA requirements. The following are Pass/Fail criteria: • Application and all required materials uploaded to Procorem by March 24, 2021 at 4: 00 PM PST. • Application Charge Transmittal Form (located in application) and Application charges postmarked by March 24, 2021.

Threshold Review • Applications move to this review after meeting the Preliminary Review requirements • Pass/Fail • • • Development Team Capacity Services Narrative and Preliminary Services Budget Development and Finance Plan Ownership Integrity Commitment to Diversity, Equity, and Inclusion (DEI)

Threshold Review-Development Team Capacity Reviewers use narratives and other information from the application • Construction experience • Does the Applicant have a successful history of leading construction development Projects of similar (or larger) size and scope? • If Applicant's history is limited, will the Applicant partner with an appropriate party to mitigate this limitation? • Development team experience • Has the Applicant managed similarly comprised development teams? • Does the development team explain their experience with Projects of this type, size, and scope? • If an Applicant has applied for multiple Project Reservations, does the development team have the capacity to administratively and financially support all Projects simultaneously?

Threshold Review-PSH Services This will be a pass/fail criteria, in a review for the reasonability of developing into a final services plan. • Services Narrative • The narrative must describe your project’s PSH Services and how they meet CSH’s Dimensions of Quality: o Tenant Centered o Accessible o Coordinated o Integrated o Sustainable • Services Budget • May submit in any format • The CSH Services Budget Tool provided in the Oregon Supportive Housing Institute can be used but is not required **This information will be given to OHA for discussions around services funding.

Threshold Review-Development and Finance Plan • Application contains: • completed pro forma • completed operating budget with balanced sources and uses

Threshold Review-Ownership Integrity • Single-Asset Ownership • Neither Applicant nor any member or principal within the Project ownership or management will have been convicted of fraud, misrepresentation, theft or other moral turpitude within the previous ten (10) years. • Neither Applicant nor any member or principal within the Project ownership or management will have been involved in a bankruptcy proceeding within the previous five (5) years. • Neither Applicant nor any member or principal within the Project ownership or management will have been debarred or otherwise sanctioned by OHCS.

Threshold Review-Commitment to Diversity, Equity, and Inclusion (DEI) • Each Applicant must submit a signed DEI form, which commits to making strides toward diversity, equity and inclusion within the Applicant’s organization as well as in the work it does.

Competitive Scoring • Applications that pass the Preliminary and Threshold Reviews will be scored competitively • Maximum of 100 points available

Competitive Scoring • Combined PSH and HTF Subsidy (20 points) • Based on project data submitted in the application and verified against project pro forma, etc. Request Points Up to $100, 000/unit 20 $100, 001/unit - $150, 000/unit 15 $150, 001/unit - $200, 000/unit 10 $200, 001/unit - $250, 000/unit 5 • Financial Viability (10 points) • Based on Financial Submissions • Scored internally by underwriting staff • Readiness to Proceed (20 points) • Based on information in the application (Zoning, Site Control, Development Schedule, Project Site Checklist)

Competitive Scoring • Inclusion of culturally responsive/equity measures (up to 15 points) • Based on narrative provided • MWESB (up to 10 points) • Based on narrative provided • Tenant Referral Process (up to 5 points) • Based on narrative provided • Need for Housing (up to 10 points) • Based on narrative provided • First Cohort Project Preference (10 points) • Projects from the 2019 -2020 Oregon Supportive Housing Institute that applied for funding through the 2020 PSH Mini-NOFA, but were not awarded funds

Competitive Scoring-Tips! Tips for Narrative Responses: • Do not assume that the reader is familiar with your organization • Some reviewers may not have access to your complete application, even if you feel like you’re repeating an answer, there’s a reason for it • Explain acronyms • Not all reviewers will be subject area experts in rental development, real estate development, or PSH; demonstrate expertise and provide high level overviews of concepts.

NOFA Process Reminders • Use the checklist in the application to make sure all required attachments/supplemental documents are uploaded to your Procorem work center by the application due date and time • Procorem training resources can be found here: https: //help. procorem. com/general_overview/meet-procorem/ • Questions should be submitted to HCS. PSH@oregon. gov • FAQs will be published at regular intervals

Questions?