The Housing Authority of the City of Pittsburgh

The Housing Authority of the City of Pittsburgh 200 Ross Street Pittsburgh, PA 15219 412 -456 -5000 www. hacp. org Project Based Voucher and Gap Financing Program

The Housing Authority of the City of Pittsburgh (HACP) HACP Snapshot: • • • MTW Agency since 2001 Serves approximately 20, 000 individuals or 7% of all City of Pittsburgh residents Owns and operates 2, 700 low-income public housing units Supports 700 public housing units in mixed -income sites Administers 6, 200 Housing Choice Vouchers

PBV and Gap Financing Program Goal: Invest in a city-wide neighborhood and community revitalization strategy effort in expanding affordable housing units (existing, rehabilitated and/or newly constructed housing units) of up to 200 units of in the City of Pittsburgh over the next three (3) years Benefits: üExpands housing choices for low and moderate income families in Pittsburgh through an open, fair and inclusive process üPart of a city-wide revitalization strategy; locations will be dispersed across multiple communities and neighborhoods üMultiple project awards depending on budget availability, not limited to one bidder üFosters collaboration with community development organizations and other entities

Program Design RFP Award Project Refinement Closing • HACP releases a Request for Proposal (RFP) for residential development projects planning affordable units. • Competitive proposals are awarded Project Based Vouchers for a certain number of units. • Competitive proposals may also be awarded Last Resort Gap Financing in the form of a loan. • HACP Development staff provides technical assistance to awardees to help navigate the HUD approval process. • Execution of loan agreement to repay gap financing, Housing Assistance Payment contract, and other financial closing documents are executed. • HACP will continue to monitor the project during construction and beyond to ensure compliance.

Program Requirements • Accessible to private, for-profit and/or nonprofit Owner/Developers • Meet PBV Site Selection Standards per 24 CFR Section 983. 57 • Compliance with Federal regulations – (UFAS, Davis Bacon Wages, WBE/MBE, Section 3, etc. ) • Owner/Developer to enter into Housing Assistance Payment Contract (HAP) prior to construction • PBV assisted units cannot exceed the greater of 25 units or 25% • Evidence of Site Control • Units must remain affordable for a minimum of 15 years from placed in service date Initial Gross rents not to exceed 110% (120% for UFAS units) • Compliance with Uniform Relocation Act if applicable Meet Housing Quality Standards (HQS) • Other requirements may apply • •

Program Exclusions • No Shared Housing • Units aligned with penal, reformatory, medical, mental or similar public/private institutions • Nursing homes or facilities providing psychiatric, medical, nursing, service, board and care, or intermediate care • HACP may allow assistance for a dwelling unit in an assisted living facility that provides home health care service such as nursing and therapy for residents of housing • Manufactured homes

Evaluation Criteria 1. Site Location/Community Amenities – 25 points 2. Owner/Developer Capacity – 30 points 3. Methodology – 15 points 4. Design/Unit Amenities and Public Purpose – 10 points 5. Project Feasibility/Readiness – 15 points 6. MBE/WBE Participation – 10 points 7. Section 3 Goals Note: Points may be deducted for failure to submit all required information

Projects Awarded in 2015 Project Name Gap Financing Amount Awarded PBV Units Total Units LIHTC Status Cliff Street Overlook $612, 500 7 28 4% Withdrawn Crawford Square $6, 000 60 347 4% Closing Soon Elmer Williams Square $829, 884 37 37 N/A Closing Soon Glen Hazel Senior Loft $1, 000 40 68 9% Withdrawn Kelly & Bennett Streets $1, 750, 000 20 40 4% Withdrawn Kelly Hamilton $1, 000 20 57 9% Withdrawn Lanark Street $1, 837, 500 21 21 4% Withdrawn Miller Street Residences $419, 000 9 36 9% Construction New Grenada Square $1, 050, 000 12 51 4% Withdrawn

Projects Awarded in 2017 Project Name Gap Financing Amount Awarded PBV Units Total Units LIHTC Status City’s Edge $3, 500, 000 74 106 4% Closing Soon Civic Arena Housing $1, 000 10 54 9% Withdrawn Heinz Residences $500, 000 10 40 9% Withdrawn Herron Avenue Homes $2, 100, 000 24 24 4% Withdrawn Hilltop Community Homes $1, 312, 500 15 15 N/A Predevelopment Lemington Senior Housing $1, 550, 000 54 54 4% Predevelopment North Negley Residences $750, 000 10 40 9% Withdrawn Western Restoration Apartments $1, 550, 000 15 15 4% Predevelopment

Miller Street Residences Project Summary • New construction apartment building consisting of 36 units, all affordable • Awarded: • 9 Project Based Vouchers • $419, 998 in Gap Financing • Developer: Bridging the Gap, LLC • Other Financing: • 9% LIHTC Equity • Project closing was held in December 2017 and is currently under construction

Project Summary City’s Edge • New construction of a mixed use building with 106 residential units. 74 units will be affordable. • Awarded: • 74 Project Based Vouchers • $3, 500, 000 in Gap Financing • Developer: Mid. Point Group of Companies, Inc. • Other Financing: • 4% LIHTC Equity • Other grants and loans • HACP staff is working toward a closing with Developer by the end of this year.

Lessons Learned • Plan and Understand Staff Time Commitment • Some less experienced developers and community groups required more technical assistance than originally anticipated. Future PBV/Gap projects will be planned keeping in mind HACP staff capacity. • Write RFP and Program Guidelines with Flexibility • As we all know, development is an fast-paced industry. Writing an RFP and Program Guidelines that provide enough flexibility for the inevitable project changes is critical. • Choose the Right Projects • Where possible, choose projects that are far enough along in the planning process that they could come to fruition without HACP’s assistance. • Proposals that have been submitted without the proper due diligence will likely fail.

Questions? 200 Ross Street Pittsburgh, PA 15219 412 -456 -5000 www. hacp. org