Request for Proposal Application INSTRUCTIONS for funding under the
2015 City Parish Office of Community Development Consolidated Plan Programs:
Community Development Block Grant (CDBG), Emergency Solutions Grant (ESG),
and Home Investment Partnership (HOME)
APPLICATIONS ARE DUE NO LATER THAN 12:00 PM ON MONDAY, MAY 18, 2015.
All applications must be submitted to:
City Parish Office of Community Development
222 St. Louis Street, 7th Floor
Baton Rouge, LA 70802
225-389-3039
Jamie Mabile
Urban Development Director
The application form is online (both in MS Word and PDF) at the City Parish Office of Community
Development Web site. To access the Web site go to: http://brgov.com/dept/ocd/annoucements.htm
Applications can also be e-mailed upon request, contact Sara Sims at ssims@brgov.com
This package provides information about program requirements, policies, and the application process
for funds provided to the City Parish Office of Community Development under the U.S. Department
of Housing and Urban Development (HUD) Consolidated Plan programs.
Instruction Package Contents
Section
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
XI.
Heading
Mandatory Pre-Qualification Criteria for Applicants
Eligible Applicants Who May Apply
Anticipated Funding Available
Consolidated Plan Priorities
Action Plan and RFP Process
Application Submission Instructions
Other City Parish/Federal Requirements
Commonly Asked Questions
Community Development Block Grant (CDBG) Program
HOME Investment Partnership Program (HOME)
Emergency Solutions Grant (ESG) Program
Attachment A—Affordable Rental Housing Program Guidelines
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
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I. Mandatory Pre-Qualification Criteria for Applicants
Before completing the application form, please review the Pre-Qualification Criteria below. DO NOT
SUBMIT AN APPLICATION IF YOU CANNOT MEET ALL OF THE PRE-QUALIFICATIONS.
(Government agencies proposing to serve the City Parish residents are not required to meet these
criteria.)
1. Agency must have two audited financial statements for the most recent fiscal years which were
completed within past 36 months
2. Agency must have written financial and grants management policies and procedures
3. Agency must have at least 12 months of experience that is similar or related to the activities for
which funding is being requested from the City Parish
II. Eligible Applicants Who May Apply
The City Parish accepts proposals from any source, including agencies, governmental entities, civic
groups, and individual citizens; however, only certain types of applicants may be designated as grant
sub-recipients. Grant sub-recipients include governmental agencies within the City Parish and private
nonprofit organizations serving the City Parish geographic area.
CHDOs requesting operating grants – call the Office of Community Development at 225-389-3039.
III. Anticipated Funding Available
The City Parish Office of Community Development receives annual grants from HUD under its
Consolidated Plan grant programs for the three programs listed below. Applicants do not specify the
funding source for which they are applying through the City Parish application process. The City
Parish will determine which fund best fits the proposed project.
Community Development Block Grant (CDBG) – Provides housing, improved living conditions,
improved community facilities, and expanded economic opportunities principally for low and
moderate-income persons. The City Parish anticipates receiving approximately $2.9 M for CDBG
funding in 2015. The availability of CDBG funds is contingent upon final federal approval of the FY
2015 budget.
Home Investments Partnerships Program (HOME) – Expands the supply of decent, safe, sanitary
and affordable housing with priority to rental housing for low-income families, and to strengthen the
City Parish’s ability to assist the financing and development of low and very-low income housing.
Housing units must be constructed. The City Parish anticipates receiving approximately $1 million
for 2015.
Emergency Solutions Grant (ESG) – Supports the operations of emergency shelters, supports
essential services for those living in shelters, provides street outreach and services to unsheltered
persons, and assists in the provision of homeless prevention and rapid re-housing. The City Parish
anticipates $267,338 for 2015.
IV. Consolidated Plan Priorities
The major focus of the Consolidated Plan grant programs is affordable housing, homeless assistance,
and improving low-income and moderate-income areas. Funding priorities for the three grant
programs are included in the City Parish’s Consolidated Plan. The priorities adopted in the 2010-2014
Plan are listed below. **The Consolidated Plan 2015-2019 is being drafted this year.
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
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Affordable Housing
-Improve and preserve the existing housing stock
-Increase the stock of available housing
-Increase the ability of persons to afford standard housing
Homeless Services and Facilities
-Outreach to homeless persons (especially unsheltered persons) and assessing their individual need
-Addressing the emergency shelter and transitional housing needs of homeless persons
-Helping the homeless make the transition to permanent housing and independent living, including
facilitating access to affordable housing units and preventing individuals and families who were
recently homeless from becoming homeless again
-Helping low-income individuals and families avoid becoming homeless (especially extremely low
income individuals and families)
Economic Development
-The creation or retention of jobs
-Redevelopment of the inner and mid-city areas
Public Facility Needs
-Youth centers
-Head start centers
-Senior centers
-Neighborhood/community facilities
-Child care centers
-Parks/recreational facilities
Infrastructure Needs
-Storm water / flood water drainage
-Street reconstruction
-Sidewalk construction
-Demolition or removal of blighted structures
-Sewer / wastewater treatment
-Recycling and recycling programs
Public Services:
-Education services
-Domestic violence prevention
-Child abuse prevention
-Homeless prevention services
-Juvenile crime prevention
-Youth services
-Substance abuse services
-Senior services
-Transportation services
-Child care services
-Health services
-Crime prevention
-Employment training
-Crime awareness
-Ex-offender release programs
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
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-Handicap services
Note that CDBG has a federal cap on funding for “public services” which includes social services and
homeless services. Service support is always the most competitive area of CDBG funding.
V. Action Plan and RFP Process
May 4:
RFP packages are released.
May 13: RFP pre-submission workshop to review the application and process and to answer
questions. The workshop will be held on Wednesday, May 13 from 8:30-10:30 a.m. at the Main
Library, 7711 Goodwood Boulevard, Baton Rouge, La. 70806 in the large meeting room.
May 18: RFP submission deadline is Monday, May 18 at noon (12:00 p.m.). Responses are to be
hand-delivered to City Parish Office of Community Development, 222 St. Louis Street, 7th floor, Baton Rouge,
LA 70802. For more information, contact the City Parish Office of Community Development at 225-389-3039.
Applications are reviewed and evaluated. All applications are evaluated using factors including the
national objective, eligibility of activity, feasibility, zoning, impact to the community,
implementation timing and concerns, administrative and organizational capacity of the organization,
and Consolidated Plan priorities.
During the review period, applicants may be asked to provide additional information or clarification
on their proposals as needed. All organizations, whether or not they have previously received funding
under these programs, are subject to on-site reviews of agency records during the proposal process.
Funding for selected projects are included in the Action Plan 2015, which is made available for public
review no less than 30 days prior to final public hearing and Metro Council vote on July 22, 2015.
October 1: Program year 2015 officially begins, but typically the grant award from HUD will not be
available to the City Parish until November or December 2015. Funds are not available to subrecipients until after the City Parish receives the Notice of Grant Award from HUD, funds are
appropriated by City Parish Metro Council, proposed sub-recipient contracts are prepared for review
by the City Parish Contracts Review Committee and, upon approval, contracts are sent to subrecipients for an authorized signature, then returned to the Office of Community Development which
then routes the contracts through City Parish Purchasing Department, the City Parish Attorney’s
Office and finally to the Mayor for his/her signature. Once fully executed, an original signed contract
is sent to the sub-recipient for their records.
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
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VI. Application Submission Instructions
A. Application Availability
Applicants are highly encouraged to download electronic files from the web site at
http://brgov.com/dept/ocd/. If necessary, applicants may request that it be emailed: contact Sara
Sims at Ssims@brgov.com
B. Application Forms
The Project Application is to be used for all CDBG, ESG and HOME funding requests.
The Projects application has different narrative sections. All applicants should complete
Section I, Section II and Section III of the application form. Section IV has five different
versions, which vary depending upon the type of project being proposed. Be sure to complete
the correct version, and only the correct version of Section IV.
The Projects application also has three different versions of the Section V. Budget. Complete
the correct version or versions. If you are requesting both operational and capital funds,
complete both.
C. Submission Requirements
Separate Applications for Different Types of Projects: Requests for funding in more than one
major funding category (e.g. affordable housing, economic development) should be submitted
on separate application forms. It is important to separate match funding as well as budget and
programmatic aspects of proposals.
One Application for Capital and Operating Funds at a Single Site: If a project proposal is
requesting funding for property acquisition/development and also for the facility/program
operations of that same project site, these requests may be combined in one application. Both
components must be described clearly, and separate capital and operating budgets must be
provided. Documentation of separate match must be provided for each component.
If the sponsoring organization (i.e., grant sub-recipient) for the development component is
different from the sponsoring organization for the operations, then each sponsor organization
must complete a separate application. In this case, describe the relationship between the two
proposals in the application as well as the relationship of the sponsor organization to the
proposed project.
D. Project Outcomes
When applicable, for example for social service projects, the City Parish reviews project
performance in terms of the impact on clients/beneficiaries. The application forms contain a
section where anticipated project Outcomes must be defined. Describe the major Outcomes of
this project, what Tasks (agency activities) will be undertaken to realize the desired
Outcomes, and how those Outcomes will be measured.
E. Application Copies
A checklist is provided in Section II of the Project Application. One signed original, four
additional signed copies and an electronic format (CD) of the completed application must be
provided. Please do not bind your application or insert divider pages. HOME applications must
be accompanied by a nonrefundable application fee of $2,500. The fee should be paid with a
check, money order, or a cashier’s check made payable to the City of Baton Rouge-Parish of
East Baton Rouge/Office of Community Development.
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
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F. Audit/Financial Statements
The Applicant must provide two of its most recent agency audits reflecting two separate fiscal
years (not older than late 2013). The audits/financial statements may be bound.
G. Implementation Timetable for CDBG
The City Parish is required to expend CDBG dollars in a timely manner. Each year, HUD
evaluates the City Parish’s expenditures on August 1. If a jurisdiction has more than 1.5 times
its annual grant amount unspent by this date, the jurisdiction’s grant program risks having
sanctions imposed by HUD.
All applicants should apply for only those funds that can be fully expended within a 12-month
period from date of receipt, which may require phasing in some larger projects. The
application should document experience and capacity to implement the activities
expeditiously. The City Parish intends to fund projects that are ready for implementation and
can be fully expended in no more than 12 months from the time that HUD funds are received.
Projects that cannot expend City Parish funds within this timeframe should be phased or
should seek City Parish funding at a later time, when other components are completed.
H. Incomplete Applications
Incomplete applications will not be reviewed. Additionally, they will be denied if the five prequalification criteria are not met. The City Parish Office of Community Development is not
obligated to pursue missing information or to consider supplemental materials that are
provided after the application deadline. Applicants should ensure that their applications are on
time, complete, and ready for review and ranking at time of submittal.
VII. Other City Parish/Federal Requirements
When funding is awarded to an organization, the City Parish must enter into a written, contractual
agreement before receipt of funding and before activities can begin. The agreement spells out the
purpose, scope of work to be undertaken, budget, timetable, outcomes, and reporting requirements.
Other standard City Parish/state/federal requirements in the agreement include:
 Applicable rules, regulations, and laws to be followed
(For example, acquisition of property must follow rules of the Uniform Acquisition and
Relocation Act; housing rehabilitation must follow Fire Protection and Safety Standards;
construction over certain dollar levels (varies by grant) must follow Davis Bacon Act and pay
federal wage rates)
 Maintenance of records/audit requirements
 Procurement standards (competitive) for subcontracted work to third parties
 Property management and inventory controls
 Conflict of interest (prohibiting members, officers, employees from personal gains)
 Publicity requirements to credit the City Parish and HUD for funding
 Written procedure requirements for finances, personnel policies, service policies, etc.
 Offering employment opportunities to low income City Parish residents
 Equal employment opportunity policies
 Minority and female business enterprise participation goals for subcontracted work
 Nondiscrimination under Title VI of the Civil Rights Act of 1964
 Reversion of assets at contract end
Sub-recipients must abide by the City Parish policy to prohibit discrimination against any employee
or applicant for employment based on race, sex, religion, national origin, age, sexual orientation, or
handicap.
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
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All sub-recipients must have adequate insurance which includes:
A. Commercial General Liability on an occurrence basis as follows:
a. General Aggregate
$2,000,000.00
b. Products-Completed Operations Aggregate $1,000,000.00
c. Personal & Advertising Injury
$1,000,000.00
d. Each Occurrence
$1,000,000.00
e. Fire Damage (Any one fire)
$50,000.00
f. Medical Expenses
$5,000.00
B. Business Auto Policy
a. Any Auto, or Owned,
b. Non-Owned & Hired
Combined Single Limit
$300,000.00
C. Standard Workers Compensation-Full statutory liability for State of Louisiana with
Employer’s Liability Coverage
D. The City of Baton Rouge and Parish of Baton Rouge must be named as additional insured on
all general liability policies described above
E. Waiver of subrogation in favor of City of Baton Rouge and Parish of East Baton Rouge is
required from Workers Compensation Insurer.
F. Certificates must provide for thirty (30) days written notice to Certificate Holder prior to
cancellation or change.
G. The Certificate Holder should be shown as:
City of Baton Rouge and Parish of East Baton Rouge
Attn: Purchasing Division
Post Office Box 1471
Baton Rouge, Louisiana 70821
All policies must hold the City Parish harmless and have an endorsement specifically naming the City
Parish Office of Community Development as additional insured.
Applicants who cannot or will not meet the above requirements should not apply for funding. For
further information regarding requirements for contracting with the City Parish, please contact the
Office of Community Development at 225-389-3039.
VIII. Commonly Asked Questions
Q. What if I don’t meet all of the Pre-Qualification Criteria but hope to be able to meet them
before actual funding is provided?
A. Applications that do not meet all of the Pre-Qualification Criteria at the time of making application
for funds will not be reviewed for funding. Do not submit an application if you do not meet all of the
Pre-Qualification Criteria.
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
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Q. What if I don’t have all the information requested on the application?
A. Complete every question in some way. If the requested information is not available, state that it is
not available, when it will be available, and the problems which prevent the submission of the
requested information. Incomplete applications may not be reviewed or may be penalized. The City
Parish Office of Community Development is not obligated to pursue missing information or to
consider supplemental materials that are provided after the application deadline. Applicants should
ensure that their applications are on time, complete, and ready for review and ranking at time of
submittal.
Q. Who needs to submit an audit? Can a yearly financial statement be submitted instead?
A. Agencies that have an annual budget and expenses of less than $100,000 may submit the most
recent yearly financial statement prepared by a certified public accountant (no older than late -2012),
if an independent audit has not been done. For agencies with annual budgets and expenses exceeding
$100,000, a financial statement is not an acceptable submission substitute for an audit. Agencies that
have an annual budget that exceeds $100,000 must have an annual independent audit. Applicants that
receive more than $500,000 in federal or federally-derived funding submit an A-133 audit. The most
recent audit should be submitted (not older than 2012 audit), including any management letters.
Q. When can I submit an application? Do I have to wait for the May 18th deadline?
A. The City Parish Office of Community Development accepts applications at any time, but only
those applications submitted by the May 18th, 2015, 12:00 PM deadline will be considered in the
2015 annual funding competition. It helps the City Parish in processing the volume of applications
received if applications are submitted before May 18th, rather than on the last day.
Q. When will I hear that my application is approved?
A. The City Parish Office of Community Development will release Executive Branch funding
recommendations to the Metro Council for approval in July. Every applicant will receive written
notification for that meeting. Letters will also be sent to recommended applicants informing them of
Metro Council approval.
Q. How long will my proposal be considered—are all funding decisions made once in the summer?
A. Although all estimated 2015 funding will be recommended to Metro Council in the summer, the
City Parish may have program income or other reprogrammed funding available to award at any time
up to the next application cycle. Depending upon the nature and timing or the proposed project, a
proposal that is not recommended for funding in the summer might be held for possible consideration
if additional funding should become available at any time.
IX. Community Development Block Grant Program
A. What are the National Objectives of the CDBG Program?
CDBG funding is restricted to activities that meet one of three primary national objectives:
- To benefit low and moderate income persons: Projects under this objective must either directly or
primarily benefit low and moderate income City Parish residents (as defined by Section 8 Income
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
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Guidelines: See below for families with incomes below 80%, 50% and 30% of the metropolitan area
median income or serve low-and moderate-income areas of the City Parish.
- To eliminate slum and blight by directly addressing slum and blight in individual facilities.
2015 HUD Sec. 8 Annual Income By
Family Size for the Baton Rouge MSA*
Low: Up to 80% of Median
Very Low: Up to 50% of median
Extremely Low: To 30% of median
*As
1
Person
$36,700
$22,950
$13,800
2
Persons
3
Persons
4
Persons
5
Persons
$41,950 $47,200 $52,400 $56,600
$26,200 $29,500 $32,750 $35,400
$15,930 $20,090 $24,250 $28,410
6
Persons
7
Persons
$60,800 $65,000
$38,000 $40,650
$32,570 $36,730
8 or more
$69,200
$43,250
$40,890
published March 6, 2015. *Expires when superseded.
B. What Activities Are Eligible for CDBG Funding?
1. Acquisition, construction, or renovation of public or private facilities, e.g. neighborhood
centers, parks, sewers, and street improvements
2. Demolition and clearance
3. Social services and job training and placement activities (Federal regulations restrict funding
in this category to no more than 15% of the City Parish's entitlement plus program income
from the previous year)
4. Interim assistance (special clean-up, etc.) in emergency conditions
5. Completion of urban renewal activities
6. Relocation payments and assistance
7. Improvements needed to remove architectural barriers for persons with disabilities
8. Acquisition, construction, installation of utility lines and facilities
9. Rehabilitation of private or public residential units, including:
a.
acquisition for the purpose of rehabilitation
b.
funding labor and/or materials
c.
improving energy and water conservation
d.
connecting housing units to water or sewer lines
e.
providing support services such as counseling, work write-up, loan processing,
inspections
10. New construction of residential rental units for low-income households
11. Preservation or restoration of historic properties
12. Special Economic Development activities which provide: Commercial or industrial
improvements carried out by grantee or nonprofit sub-recipient including acquisition,
construction, reconstruction, or construction of commercial or industrial buildings, structures,
and other real property equipment and improvements; or assistance to private for-profit
entities for any activity determined to be "appropriate" to carry out an economic development
project that: 1) creates or retains jobs for low and moderate-income persons; 2) creates or
retains businesses owned by community residents; 3) assists businesses that provide goods or
services needed by and affordable to low and moderate income residents; and/or 4) provides
technical assistance to promote such activities.
13. Special activities by a Community Based Development Organization (CBDO) for the purpose
of providing neighborhood revitalization, community economic development, or energy
conservation.
C. Limitations on the Use of CDBG Funds:
1. At least 70% of the grant must be used for activities that primarily benefit low and moderateincome households.
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
9
2. No more than 15% of annual grant resources may be spent on "public services", which includes
social service, homeless service and job training programs.
D. Geographic Areas Are Covered by CDBG
For Low and Moderate Income Benefit: Activities such as job training or social services, which
provide services directly to a low or moderate-income persons or households, can occur anywhere in
the City Parish with the exclusion of the cities of Baker, Zachary and Central. Activities which
provide benefits to a neighborhood or other geographic area, rather than to individuals, must occur in
targeted areas (excluding Baker, Zachary and Central) in which at least 51% of the population has
incomes at or below 80% of the City Parish area median income.
For Slum and Blight Removal: A project can eliminate specific blighting conditions at a single
building or a specific site, excluding sites in Baker, Zachary and Central.
E. Protection of the Federal Interest in Capital Projects
When CDBG funding is used to acquire, improve or construct facilities, infrastructure, or housing, it
is necessary for the City Parish to record a lien in the amount of the funding against the assisted
property for a period of five years to guarantee eligible use of the property during that time. For
substantial CDBG funding, the City Parish may lengthen the time period beyond the federal five-year
period. If for any reason the property is sold during that period, the City Parish shall be reimbursed
the amount equal to the current market value of the property less the portion of value attributable to
non-CDBG funding.
X. Home Investment Partnerships (HOME) Program
A. Introduction:
The City of Baton Rouge-Parish of East Baton Rouge (City Parish) is a recipient of HOME funds from
the U.S. Department of Housing and Urban Development. This program is designed to meet housing
needs of lower income citizens. The City Parish requests applications from developers to construct
and manage affordable rental housing.
B. General Requirements:
Applicants should review and become familiar with the City Parish’s Affordable Rental Housing
Program Guidelines (Program Guidelines) included as Attachment A. Applications will be scored
based on compliance with the requirements set forth in the Program Guidelines.
C. Funding Focus:
Affordable Rental Housing: Housing may be acquired and/or rehabilitated or constructed. During each
annual funding cycle, the City Parish reserves the option to focus on developments with particular
characteristics based on identified community needs and market trends.
During this annual funding cycle, financing is available for the new construction of non-age restricted
(i.e. “family”) rental housing developments serving low income households. Proposals should include
at least 20% of their units that are 3 bedrooms or more, and at least 10% of the units in each
development should be affordable to households with incomes at or below 30% of the Area Median
Income. (See Affordable Rental Program Guidelines, Attachment A).
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
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D. Community Housing Development Organizations:
The HOME program strives to promote partnerships between local government and nonprofit
organizations and expand the nonprofit organizations' capacity to develop and manage decent
affordable housing. To assist in achieving these purposes, the City Parish is required to reserve not less
than 15 percent of its HOME allocations for investment in housing to be developed, sponsored, or
owned by Community Housing Development Organizations (CHDOs). A CHDO is a specific type of
nonprofit organization as defined in 24 CFR Part 92. Although many nonprofit organizations share
common characteristics with CHDOs, not all nonprofits qualify as CHDOs under the HOME program.
Only nonprofit organizations that have been certified by the City Parish as CHDOs can receive funds
from the City Parish’s minimum 15 percent set-aside.
Prior to committing funds under this RFP, the City Parish will review the status of any organization
seeking funds from the CHDO set-aside to ensure that it meets all HOME requirements and that it has
sufficient staff capacity to carry out the project. The City Parish’s CHDO Threshold Requirement
Checklist is included at Appendix B and is a required submission item for any entity seeking CHDO
status. Organizations that meet the requirements to be certified as CHDOS will receive points under
the scoring criteria.
E. Inclusion of Soft Costs:
For each funding round, the City Parish will provide allowances for development period City Parish
soft costs and ongoing monitoring fees to be used by Applicants in their proposals. For this funding
round, Applicants should assume $45,000 for City Parish soft costs and $2,500 per project per year for
City Parish monitoring fees.
F. Income and Rent Restrictions:
To qualify as affordable housing, HOME units must be rented only to households with certain incomes
at rents regulated by the program to be affordable to low income households.
2014 HOME Rental Income Limits for Baton Rouge, LA MSA
The City Parish calculates Annual Income as defined in 24 CFR Part 5 (Section 8 definition).
Number of People
1
2
3
4
5
6
7
8
50% Median Income
$23,250
$26,600
$29,900
$33,200
$34,900
$37,500
$40,100
$42,650
60% Median Income
$27,900
$31,920
$35,880
$39,840
$43,080
$46,260
$49,440
$52,620
*As
published May 1, 2014. *Expires when superseded.
2014 HOME Rent Limits for Baton Rouge, LA MSA
(Updated Annually by HUD)
Bedroom Size
Efficiency
1 BR
2BR
3 BR
4 BR
5 BR
6 BR
Low HOME Rent
$580
$623
$747
$863
$963
$1,063
$1,162
High HOME Rent
$580
$674
$799
$995
$1,147
$1,300
$1,404
*As
published May 1, 2014. *Expires when superseded.
As noted in the Funding Focus section above, the City Parish is requiring the applications in this
funding round provide at least 10% of their units (evenly distributed among the units types) that are
affordable to households at 30% AMI.
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
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G. Match:
The City Parish must contribute or match 25 cents for each dollar of HOME funds spent on affordable
housing. To assist the City Parish in meeting this requirement, proposals that include eligible matching
funds in their projects will receive points under the scoring criteria. Applicants should note that owner
equity does not count as match and will not result in the award of match points under this RFP.
Examples of eligible match include city or town commitments for infrastructure needed for the site or
tax abatement for the project. For more information on eligible match see HUD CPD Notice 97-03
which is available at the following link: http://portal.hud.gov/huddoc/19652_97-3.pdf
H. Selection Criteria:
The preliminary funding commitments resulting from this Request for Proposals shall be determined by
a scoring system including, but not necessarily limited to, the factors shown below. Regardless of strict
numerical ranking, the scoring does not operate to vest in an applicant or project any right to a
reservation or commitment of HOME funds. The City Parish will, in all instances, commit HOME
funds consistent with sound and reasonable judgment, prudent business practices, and the exercise of its
inherent discretion to ensure that:



Developers awarded funds are both capable and fiscally sound;
The neighborhood market will support the proposed housing; and
The project’s financial assumptions and projections have been reviewed (or underwritten) to
balance their adequacy and subsidy layering considerations.
Points will be designated for each factor of consideration below with a maximum score of 150 points.

Developer experience— up to 40 points.
Rankings will be based on scope of past portfolio including, but not limited to, leveraging of
other sources of funds, experience developing and managing projects of similar type and
scope, staff qualifications, input from other funders as well as the overall quality of the
application for this project.

Financial Proposal—up to 30 points.
Rankings will reflect the strength of the overall financial proposal including the combination
and availability of other non-HOME funds.

Projected Rents and Design/Amenities—up to 15 points.
Projected rents as well as design and amenity considerations will be looked at closely for
compliance with the requirements set out in the Program Guidelines. Each proposal will be
compared to the City Parish’s minimum requirements and to each other to determine which
proposal(s) are the strongest and provide the greatest public benefit.

Financial Statement/Audit—up to 20 points.
Applicant’s current financial statement and independent audit will be reviewed for financial
capacity and soundness.
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
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
Strength of Proforma— up to 30 points.
The Applicant’s pro forma will be reviewed against the underwriting and pro forma
requirements set forth in the Program Guidelines for compliance and strength.

Community Housing Development Organizations— 10 points.
Applicants who qualify as Community Housing Development Organizations (CHDOs) as
described in this RFP shall receive 10 points.

Matching Contributions— up to 5 points.
Proposals that include eligible matching funds as described in this RFP will be eligible for
points in this category.
I. Limitation on City/Parish Commitment
Successful Applicant(s) will receive a “preliminary award” for HOME funds, which will state that the
City Parish’s formal commitment of HOME funds is contingent upon at least: 1) Approval of the City
of Baton Rouge-Parish of East Baton Rouge Annual Action Plan by the City Parish Metro Council and
HUD; 2) the City Parish’s receipt of HOME funds from HUD; 3) the applicant’s award from LHC for
LIHTC, if applicable; and 4) the City Parish’s receipt of the HUD Authority to Use Grant Funds
following completion of the Environmental Review process; and 5) execution of a written HOME
Agreement between the City Parish and the developer/applicant within six months from the date of
letter of intent. Construction of the project must start within 12 months of the aforementioned
agreement.
Neither this RFP nor the acceptance of any application shall imply a funding obligation to any
applicant. Funding of proposals will be contingent upon receipt of federal HOME funds from the U.S.
Department of Housing & Urban Development (HUD). Should the City Parish’s HOME allocation be
reduced or eliminated, no claim may be made against the City Parish’s General Fund or other resources
regardless of the status of the proposal(s) or issuance by the City Parish of a Commitment Letter(s) for
HOME funding. The City Parish reserves the sole right to approve or reject any and all applications on
such basis as it deems to be in its best interest.
As a Participating Jurisdiction, the City Parish is responsible for the administration of the HOME
Program under federal HOME regulations and HUD requirements. It is the intent that this RFP be
issued and proposals underwritten in compliance with said regulations and requirements. Should the
regulations and requirements change at any time, the City Parish reserves the right to alter its Program
to ensure compliance up to and including terminating any Commitment issued if the project does not
meet new HOME regulations and/or HUD requirements. The City Parish, its elected officials,
employees and agents shall not be held responsible or liable for any losses incurred from claims, suits,
damages, and costs and expenses of any kind or of any nature that any proposing firm may suffer, incur
or pay arising out of decisions by the City Parish concerning any proposal, application, loan
decision(s), or action(s) associated with the administration of the HOME Program.
J. Good Standing
No loan application will be processed for any borrower or related entity which is not in good standing
with the City Parish, the Louisiana Housing Corporation or any other state housing finance authority, the
U. S. Department of Housing and Urban Development, the USDA Office of Rural Development (formerly
the Farmers Home Administration), or other state or federal department that provides financial assistance to
affordable housing. An applicant can be denied consideration for funding if the applicant or its related
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
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parties have a history of default or non-performance under any agreement, payment delinquencies, bankruptcy,
foreclosure or activities determined to be unsound or unlawful.
K. Code of Conduct
The developer covenants that no person who presently exercises any functions or responsibilities in
connection with the City Parish HOME program has any personal financial interest, direct or indirect,
which would conflict in any manner or degree with the performance of its services hereunder. The
developer further covenants that in the performance of this Agreement, no person having any conflict
of interest shall be employed. Any interest on the part of the developer or its employees must be
disclosed to the City Parish provided, however, that this paragraph shall be interpreted in such a manner
so as not to unreasonably impede the statutory requirements that maximum opportunity to be provided
for employment of and participation by low and moderate income residents of the area.
L. Keeping HOME-Assisted Units Affordable
To ensure that HOME investments yield affordable housing over the long term, HOME imposes rent
and occupancy requirements for all units produced over the length of an affordability period. For
homebuyers and rental projects, the length of the affordability period depends on the amount of the
HOME investment in the property and the nature of the activity funded. The table below provides the
affordability periods.
HOME Investment Per Unit
Length of Affordability Period
Less than $15,000
$15,000-40,000
More than $40,000
New construction of rental housing
Refinancing of rental housing
5 years
10 years
15 years
20 years
15 years
For more information on HOME, call the Office of Community Development at 225-389-3039.
XI. Emergency Solutions Grant Program
NOTE: ESG requirements have changed significantly with new regulatory guidance resulting from the
Homeless Emergency Assistance and Rapid Transition to Housing, or HEARTH, Act of 2009. Homelessassistance and homeless-prevention applicants should review the new guidance in detail:
http://www.hudhre.info/documents/HEARTH_ESGInterimRule&ConPlanConformingAmendments.pdf
Copies of the City Parish’s new ESG Guidance Manual are available from the Office of Community
Development.
A. National Objective of the Emergency Solutions Grant (ESG) Program
- To support the operations of emergency shelters, to support essential services for those living in
shelters, to provide for street outreach to unsheltered persons, and to assist in the provision of
homeless prevention and rapid re-housing.
B. Eligible Activities for ESG Funding
Street Outreach
Services to reach out to unsheltered homeless; connect them with emergency shelter, housing, or
critical services; and provide urgent, non-facility based care, through:
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
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- engagement
- case management
- emergency outpatient health services, including mental health
- transportation, including travel costs of outreach workers and costs of transporting unsheltered
homeless to shelters or services
Emergency Shelter
Providing services to homeless in shelters, renovating buildings to be used as shelters, and shelter
operations, including:
- case management
- child care in licensed facilities
- education services
- employment assistance and job training
- outpatient health services, including mental health
- legal services
- life skills training
- outpatient substance abuse treatment services
- transportation of residents to services
- labor, materials, tools, other costs for renovating/converting buildings owned by government or
nonprofit, for use as emergency shelter
- shelter operating expenses including maintenance, rent, security, equipment, insurance, utilities,
food, furnishings, supplies, and, when no appropriate shelter is available, motel/hotel vouchers
Rapid Re-housing Assistance
Assistance to help homeless families and individuals move quickly into permanent housing and attain
stability in that housing, including:
- short/medium-term rental assistance, rental application fees and security deposits, last month’s rent
at previous residence, utility deposits and payments, moving costs, housing search and placements
services, case management, tenant/landlord mediation, legal services, and credit counseling
Homeless Prevention
Assistance to prevent a family or individual with income at or below 30% of area median (see table
below), from moving to a shelter, other unstable housing situation, or unsheltered location, including:
- short/medium-term rental assistance, rental application fees and security deposits, last month’s rent
at previous residence, utility deposits and payments, moving costs, housing search and placements
services, case management, tenant/landlord mediation, legal services, and credit counseling.
2015 HUD Sec. 8 Annual Income By
Family Size for the Baton Rouge MSA*
Low: Up to 80% of Median
Very Low: Up to 50% of median
Extremely Low: To 30% of median
*As
1
Person
$36,700
$22,950
$13,800
2
Persons
3
Persons
4
Persons
5
Persons
$41,950 $47,200 $52,400 $56,600
$26,200 $29,500 $32,750 $35,400
$15,930 $20,090 $24,250 $28,410
6
Persons
7
Persons
$60,800 $65,000
$38,000 $40,650
$32,570 $36,730
8 or more
$69,200
$43,250
$40,890
published March 6, 2015. *Expires when superseded.
Homeless Management Information System (HMIS)
Costs of contributing data/reporting in the HMIS
Administration
Administrative costs of the City Parish in implementing ESG
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C. Limitations on the Use of ESG Funds:
1. The percentage of ESG funding allocated for shelter activities and street outreach to
unsheltered persons cannot exceed the greater of: the percentage allocated by the jurisdiction
for homeless assistance activities in its 2010 grant, or 60% of the current grant.
2. Grant administration expenses are limited to 7.5% of the grant.
D. Geographic Areas Covered by ESG and State ESG
The ESG program includes the entire City Parish with the exception of the cities of Baker, Zachary
and Central.
The State ESG program includes Ascension, East Baton Rouge, East Feliciana, Iberville, Pointe
Coupee, West Baton Rouge and West Feliciana Parishes.
E. Protection of the Federal Interest in Capital Projects
When ESG funding is used to acquire or improve homeless facilities or homeless housing, it is
necessary for the City Parish to record a lien in the amount of the funding against the assisted
property for a period of 3-10 years, depending on the level of rehabilitation, to guarantee eligible use
of the property during that time. If for any reason the property is sold during that period, the City
Parish shall be reimbursed the amount of its ESG funding.
F. Designation of ESG Projects
Because of the specific requirements associated with ESG, the City Parish determines which projects
are eligible for this funding. Projects not eligible for ESG are considered for CDBG funding.
For additional information about the ESG Program, call the Office of Community Development at 225389-3039.
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
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Attachment A
Rental Housing Program Guidelines
City of Baton Rouge/Parish of
East Baton Rouge
May 2015
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
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TABLE OF CONTENTS
1.
SUMMARY.................................................................................................................................... 19
2.
APPLICATION AND EVALUATION PROCEDURE ......................................................................... 19
A.
Funding Availability................................................................................................................... 20
B.
Submission of Materials ............................................................................................................ 20
3.
PROJECT FUNDING REQUIREMENTS ...........................................................................................21
A.
Eligibility Criteria ........................................................................................................................21
B.
Eligible Costs ............................................................................................................................. 22
C.
Property Standards ................................................................................................................... 22
D.
HOME Unit Allocation ................................................................................................................23
E.
Income and Rent Restrictions.................................................................................................... 24
F.
Environmental Review Requirements ....................................................................................... 25
G.
Other Federal Requirements ..................................................................................................... 26
4.
ONGOING PROJECT REQUIREMENTS ..........................................................................................27
A.
Period of Affordability ................................................................................................................27
B.
Initial Occupancy Deadlines: ......................................................................................................27
C.
Marketing and Leasing Materials: ............................................................................................. 28
D.
Prohibition on Certain Fees to Tenants ..................................................................................... 28
E.
Reporting and Recordkeeping ................................................................................................... 29
F.
Conflict of Interest .................................................................................................................... 30
5.
STRUCTURE OF TRANSACTION ................................................................................................... 31
A.
Loan Types and Terms ............................................................................................................... 31
B.
Guarantees ................................................................................................................................ 31
C.
Property Covenants and Restrictions .........................................................................................32
D.
HOME Agreement .....................................................................................................................32
6.
UNDERWRITING & SUBSIDY LAYERING REVIEWS .......................................................................32
A.
Project Underwriting ..................................................................................................................32
B.
Proforma Requirements ............................................................................................................ 34
C.
Cost Limitations ........................................................................................................................ 34
D.
Other Public Funding Sources ....................................................................................................35
7.
8.
CONSTRUCTION PROCESS ..........................................................................................................35
A.
City/Parish Construction Inspections ..........................................................................................35
B.
Davis Bacon ...............................................................................................................................35
C.
Drawing City/Parish HOME Funds ............................................................................................. 36
D.
Project Closeout ........................................................................................................................ 36
LONG TERM MONITORING.......................................................................................................... 36
EXHIBIT A: APPLICATION REQUIREMENTS AND DUE DILIGENCE EXHIBITS ..................................... 36
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
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SUMMARY
The City of Baton Rouge/Parish of East Baton Rouge (the City/Parish) supports the development of new and
rehabilitated affordable rental housing for low income households with its annual funding allocation from the
U. S. Department of Housing and Urban Development’s (HUD) HOME Investment Partnerships Program
(HOME program). The HOME program was created under Title 11 of the Cranston-Gonzalez National
Affordable Housing Act of 1990 with implementing regulations at 24 CFR Part 92. The HOME Program is
intended to achieve four specific goals:

To expand the supply of decent, safe, sanitary, and affordable housing with the primary focus on
housing for low, very low, and extremely low-income families.
 Expand the capacity of nonprofit and Community Housing Development Organizations (CHDO) to
plan and implement strategies for developing affordable housing.
 To strengthen the ability of local governments to design and implement strategies for achieving
adequate supplies of decent, affordable housing.
 To encourage public, private, and nonprofit partnerships to address affordable housing needs.
The City/Parish’s HOME funds will be used to provide gap financing to projects located in the City of Baton
Rouge or the Parish of East Baton Rouge, except for the incorporated areas of the Cities of Baker, Zachary,
and Central. The City/Parish’s program will target housing in eligible areas that is affordable to people who are
at or below 60% of the area’s median family income (AMI). In exchange for low-cost permanent financing,
property owners will agree to rent restrictions and to rent to low-income tenants for at least 20 years for new
construction projects and between 5 and 15 years for rehabilitation projects (in practice, rehabilitation projects
will typically require a 15 year compliance period). Projects are monitored for compliance during this
affordability period. Project sponsors must coordinate funders’ requirements when there are multiple funding
sources.
While the City/Parish will entertain a range of project proposals, in keeping with housing needs identified
within its Consolidated Planning process it generally intends to focus its program on the development of
affordable family units (i.e. not age-restricted) in mid-size complexes of 40-60 units. The City/Parish will also
favor the inclusion of larger (3+ bedroom) units to address the needs of larger households seeking affordable
rental housing.
The City/Parish also expects that most successful projects will also be funded, in part, by the award of Low
Income Housing Tax Credits (LIHTC) or the use of other federal funding sources such as HUD’s Section 8,
Section 811, or Section 202 programs. The City/Parish does not intend to fully fund projects, and expects to
only fund projects backed by developers and development teams with a successful track record of producing
similar housing.
This document sets forth the requirements for the City/Parish’s awards of HOME funds for rental projects.
APPLICATION AND EVALUATION PROCEDURE
The City/Parish will generally issue a Rental Housing Request for Proposal (RFP) on an annual basis. To allow
coordination with the Louisiana Housing Corporation’s (LHC) administration of the LIHTC program, the
City/Parish will generally time its RFP and application to allow the review of applications and preliminary
award determinations to be made ahead of LHC’s LIHTC application deadline. While the LHC schedule for
publishing its QAP and LIHTC application requirements varies somewhat from year to year, the QAP is
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
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generally available in the late spring or early summer with applications due near the end of August.
Consequently, in most cases the City/Parish will release an RFP in the spring with applications due in two
weeks.
The RFP will outline specific application deadlines, any funding focus (e.g., by project type, population served,
etc.), and other special considerations applied to a given funding round. Applications for HOME Rental
Housing funding can be submitted at any time throughout the program year. If submitted outside of an RFP
period, the City/Parish may consider an application based on the availability of funding, or such applications
will be reviewed as a part of the City/Parish’s next Rental Housing RFP process.
Pursuant to 24 CFR 92.214(b)(1)(ii), the City/Parish will charge an application fee to all applicants seeking
HOME funding for rental housing projects. The application fee will be laid out in the RFP.
FUNDING AVAILABILITY
Upon submission of a proposal for HOME funds, City/Parish staff will conduct a review and analysis of the
project and developers as presented in the proposal. Proposals will be scored based on criteria in the RFP.
Regardless of strict numerical ranking, the scoring does not operate to vest in an applicant or project any right
to a reservation or commitment of HOME funds. The City/Parish will, in all instances, commit HOME funds
consistent with sound and reasonable judgment, prudent business practices, and the exercise of its inherent
discretion.
Projects seeking City/Parish HOME funds prior to the receipt of all other funding sources, including state or
federal tax credit reservations, may be provided with non-binding preliminary awards. Only projects with firm
commitments for all other necessary funding may receive binding commitments.
Further, eligible Rental Housing projects will be provided funding commitments upon Metro Council approval
and may be contingent upon the 1) Approval of the City of Baton Rouge/Parish of East Baton Rouge Annual
Action Plan by the Metro Council and HUD; 2) the City/Parish’s receipt of HOME funds from HUD; 3) the
applicant’s award from LHC for LIHTC, if applicable; and 4) the City/Parish’s receipt of the HUD Authority to
Use Grant Funds following completion of the Environmental Review process.
SUBMISSION OF MATERIALS
All HOME Rental Housing Program applicants will need to comply with the submission criteria set forth in the
City/Parish’s HOME request for proposals and submit supporting documentation and due diligence items
identified in Exhibit A. Where possible, application documents from the LHC LIHTC application package will be
accepted by the City/Parish to avoid duplication of processes. The City/Parish reserves the right to require the
submission of additional information as needed to complete project underwriting.
Rental Housing applicants whose projects rely on the award of LIHTC must also submit a copy of their final
completed LHC application, including all attachments, prior to the formal commitment of HOME funds.
CONSISTENCY WITH CONSOLIDATED PLAN
The City/Parish has made every effort to anticipate its manner of awarding HOME funds to rental housing
projects as described within these Program Guidelines but recognizes that in limited cases it may need to
provide flexibility in implementing its program. The City/Parish reserves the right to waive minor informalities
in the application process and consider waivers to local policies that impose restrictions in excess of minimum
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
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federal HOME requirements. Such waivers are expected to be quite limited and only issued upon a
determination that any waiver is necessary to advance the goals of the City/Parish’s Consolidated Plan.
PROJECT FUNDING REQUIREMENTS
A. ELIGIBILITY CRITERIA
Eligible Applicants
The City/Parish will fund developers and owners of affordable rental housing, including for-profit developers,
nonprofit developers, and City/Parish-designated CHDOs, with City/Parish HOME Rental Housing Program
funds. Public housing units supported Public Housing Capital or Operating funds authorized by the 1937 Act
are not eligible for HOME, however non-public housing units owned and developed by a public housing
authority are eligible. The City/Parish generally will not fund individual owners of rental property, such as
private individuals owning single family residential rental property. Prior to committing funds, the City/Parish
will review the status of any organization seeking funds from the CHDO set-aside to ensure that it meets all
HOME requirements and that it has sufficient staff capacity to carry out the project.
Project Location
Projects must be located in the City of Baton Rouge or the Parish of East Baton Rouge. Projects located in the
incorporated Cities of Baker, Zachary, and Central are not eligible.
Project Types
For new construction family (i.e. not age-restricted) projects, the City/Parish will require that all units have
individual entrances rather than entrances from common hallways. Developers are encouraged to select
designs that are compatible with the surrounding neighborhood.
Projects shall be located on a single site (including contiguous sites separated only by a public right of way,
such as townhomes built on facing blocks). The City/Parish will not fund Single Room Occupancy units (SROs),
group homes, or projects on scattered sites. RFPs issued by the City/Parish may further specify eligible project
types and occupancy criteria including, but limited to, projects specified for either elderly or non-age restricted
occupancy.
While the City/Parish will entertain any proposals meeting its criteria, in practice most projects will also require
other public investment to be economically feasible. This may include projects also funded with other federally
regulated affordable housing programs such as LIHTC, HUD Section 202, Section 811, or Choice
Neighborhoods.
Parameters of HOME Investment Funding
Applications must include an investment of $1,000 in HOME funds per HOME unit. In no case will the
City/Parish investment exceed the maximum HOME investment allowed under 24 CFR 92.250.
Additionally, for projects involving both City/Parish and State HOME funds, the combined HOME funding
investment shall not exceed the total maximum HOME investment allowed under 24 CFR 92.250.
Typically, the City/Parish will also establish a maximum cap on its investment in a single development. Such a
limit will be based on the availability of funding and other City/Parish priorities and will be addressed in any
RFP issued by the City/Parish.
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
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B. ELIGIBLE COSTS
Costs funded with the City/Parish’s HOME funds must be eligible according to HOME Final Rule 24 CFR
92.206. The following additional limitations also apply:
1. HOME funds shall not be used for luxury improvements according to 24 CFR 92.205.
2. With the exception of a rent-up reserve to cover initial operating deficits allowed under 24 CFR
92.206(d)(5), HOME funds shall not be used to capitalize reserves.
3. Acquisition costs shall be supported by an independent appraisal of the property. Acquisition costs
exceeding the appraised value of the property will be ineligible for HOME funding reimbursement.
4.HOME funds shall not be used for non-residential accessory structures such as free-standing
community/leasing buildings, garages, carports, or maintenance structures. HOME funds may be used
for community space or common laundry facilities included in residential buildings.
City/Parish Project Related Soft Costs
The HOME program allows the City/Parish to include, as project costs, its internal soft costs specifically
attributable to a HOME project. These may include consulting, legal, inspection, and staff costs associated
with reviewing, processing, and overseeing the award of funds to the project. Projects must provide budget
allowances for “Baton Rouge Due Diligence & Legal Costs” in the project’s sources and uses and annual “Baton
Rouge Compliance Monitoring Fees” in the operating budget.
The City/Parish will provide allowances/estimates to be used by applicants in any RFP issued.
Cost Reasonableness
Per the requirements of 92.250(b) and 24 CFR 2.225, all project costs must be reasonable, whether paid
directly with HOME funds or not. The City/Parish will review project costs, including hard and soft costs, to
evaluate their reasonableness and may, at its option, require applicants to obtain additional quotes, bids, or
estimates of costs.
Identity of Interest
Owners must disclose any identify of interest situations that may occur when contracting with related
companies during either the development or ongoing operation of the project. City/Parish staff must be
allowed the opportunity to conduct a cost analysis to determine costs reasonableness. Applications may be
determined ineligible if access is not granted or costs are determined to be unreasonable.
PROPERTY STANDARDS
To meet both HOME regulations and City/Parish goals, all HOME-funded projects must meet certain physical
standards intended to provide quality affordable housing that is durable and energy efficient.
1. Construction must meet the requirements of the Louisiana State Uniform Construction Code.
Additional information on the model codes encompasses by the Louisiana State Uniform Code is
available online at the following link: http://brgov.com/dept/dpw/inspections/pdf/StateCode.pdf
2. All HOME projects must meet applicable Section 504/UFAS requirements. New construction projects
with 5 or more HOME-assisted units must provide 5% of the development’s units for physically
disabled occupants and another 2% of units designed to be accessible to those with visual or hearing
impairments. Additionally, covered multifamily dwellings, as defined at 24 CFR 100.201, must also
meet the design and construction requirements required by the Fair Housing Act as outlined in 24 CFR
100.205.
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
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3. The project must be certified under ENERGY STAR New Homes for all new construction under 3
stories or Energy Star for Multi-family High Rise Buildings rating system. In the case of rehabilitation
of existing structures, the developer must engage a RESNET or Building Performance Institute
qualified rater to complete an energy audit, review the design, recommend improvements sufficient to
reduce water and energy usage by at least 20%, and verify the satisfactory completion of such energy
improvement measures.
4.All ground floor or elevator accessible units in multi-family structures funded with HOME funds shall
be visitable and meet the following minimum Universal Design requirements:
a. Have at least one no-step main floor entry with a threshold of ½ inch or less;
b.All doorways on the main floor must be 32 inches wide when open at a 90 degree angle and
must be equipped with lever-style handles;
c. All main floor hallways must be at least 42 inches wide;
d.All main floor bathrooms must include blocking for future grab bar installation which is not less
than 33 inches and no more than 36 inches above the floor (this does not require grab bars
actually be installed during construction, just that blocking be put in place); and
e. Each unit must be provided with at least one half-bathroom on the main floor with i) a clear
floor space of 30 by 48 inches centered on and contiguous to the sink that is not encroached by
the swing path of the bathroom door and ii) a sink and toilet that allow for parallel or head-on
approach by a person in a wheelchair.
The City/Parish will consider waivers to this requirement for projects involving the acquisition and
rehabilitation of existing housing. Developers proposing such projects should identify any existing structural
limitations preventing compliance with these visitability standards. The City/Parish expects to waive this
provision narrowly, for example still requiring blocking for grab bars in a rehabilitation project where bathroom
walls are opened up even if resizing hallways in the unit is not feasible.
1. All projects must have a fully equipped laundry room if washer/dryer connections are not provided in
each unit;
2. Complex must have, or have access to, an accessible van or public transportation;
3. Site shall be served by public sewer, public water, and public road;
4.Units must be equipped with the following appliances: Refrigerator, range/oven, dishwasher, and
garbage disposal. Developers may also propose to include in-unit clothes washers and dryers,
microwave/vent fan combination units, as appropriate. If the Energy Star program rates the type of
appliances being installed, the developer must furnish the units with Energy Star rated appliances.
Note however that not all appliances are rated by the Energy Star program.
5. All units must be constructed/rehabilitated in a comparable manner, including the provision of
fixtures, finishes, and amenities. Other than differences in the size of units and those driven by the
location of a unit within the structure (e.g., ground floor units may get patios while upper floor units
might have balconies), there should be no substantial difference in the quality of affordable or market
rate units.
HOME UNIT ALLOCATION
In general, HOME units will be “floating units” and evenly distributed among the unit types in the
development. If the development’s units are not comparable, “fixed units” must be designated. In the case of
developments with comparable units, the City/Parish will designate units as HOME-assisted in proportion to
the percentage of HOME investment in the transaction or by dividing the total HOME investment by the
maximum per unit subsidy, whichever is greater. For example, if HOME represents 10% of the project’s total
HOME-eligible cost, at least 10% of the units will be HOME units.
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
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HOME-assisted units shall be designated as either “High HOME units” or “Low HOME units.” In projects with
five or more HOME-assisted units, at least 20% of the HOME-units, rounded up to a whole number, must be
designated as Low HOME units. Generally the City/Parish will only designate the minimum number of LowHOME units required unless the applicant requests that additional Low-HOME units be designated to
coordinate income and rent restrictions with other project requirements.
INCOME AND RENT RESTRICTIONS
To qualify as affordable housing, HOME units must be rented only to households with certain incomes at rents
regulated by the program to be affordable to low income households. Notwithstanding the limits described
below, in developing its annual RFP the City/Parish will generally favor developments that can provide units
with deeper income and rent targeting (e.g., where 10-15% of total units are income and rent restricted at 30%
AMI).
Developers should note that the HOME program publishes its own Income and Rent limits annually. These
limits are typically provided on a different schedule than the Section 8 Income limits used by LIHTC or the Fair
Market Rent limits used by other programs. Until HOME publishes its Income and Rent limits, HOME projects
must continue to use the most recent HOME charts and may not rely on updated Section 8 Income or Fair
Market Rent limits.
Income Limits
1. High HOME units must be occupied by tenants with household incomes at or below 60% of the Area
Median Income (AMI); and
2. Low HOME units must be rented exclusively to tenants with household incomes at or below 50% AMI.
Rent Limits
1. High-HOME units must be rented at or below the High-HOME rent as published by HUD. In general,
HUD calculates the High-HOME rent to be the lesser of the applicable Fair Market Rent or a rent equal
to 30% of 65% of the adjusted area median income, adjusted for unit size.
2. Low-HOME units must be rented at or below the Low-HOME rent as published by HUD. In general,
HUD calculates the Low-HOME rent to be the lesser of the applicable Fair Market Rent of a rent equal
to 30% of 50% of the area median income, adjusted for unit size.
3. The City/Parish must approve the development’s rent schedule annually.
Adjustment Tenant Paid Utilities
1. The High- and Low-HOME rent limits are gross rent limits. The actual rent collected from a tenant
must be adjusted taking into account an allowance for tenant paid utilities.
2. The City/Parish must approve the development’s utility allowance and reserves the right to adjust it
annually based on actual operations or other HUD approved methodologies.
Income Verification
All projects shall use the HUD Part 5 definition of income for determining income eligibility. Prior to signing a
lease, income must be verified for all new tenants using at least two months of source documentation in
accordance with 24 CFR 92.203(a)(1)(i). When available, the City/Parish prefers the use of third-party
verification as the primary means of documenting income.
During the period of affordability, the income of in-place tenants must be re-certified using source
documentation at least every sixth year of the project’s affordability period (e.g., in the sixth year, all in-place
tenants must be re-certified using source documentation even if a given tenant is only in his/her second year of
occupancy). In other years, owners must re-certify the income of existing tenants annually in accordance but
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
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may use one of the options in 92.203, unless the City/Parish requires that a project use one of the methods
exclusively:
1. Re-verifying income annually through source documentation;
2. Obtaining a written statement from the household regarding annual household income. However,
source documentation for all existing tenants must be reviewed at least every 6th year of the
affordability period; or
3. Obtaining a written statement from the administrator of a government program under which the
households receives benefits and which examines each year the annual income of the household.
Rent adjustments
HUD provides HOME income and rent limits on an annual basis. City/Parish staff will provide this information
to owners annually. Utility allowances will also be reviewed and adjusted, as needed, annually. Owners must
obtain City/Parish approval before implementing HOME unit rent increases. Owners shall also provide not less
than 30 days’ written notice to tenants upon receiving City/Parish approval for HOME unit rent increases.
HOME assisted units are considered to be compliant despite a temporary increase in income exceeding HOME
requirements for existing tenants. However, in such cases there are detailed requirements about how to adjust
the rent of such tenants and how to restore overall project compliance. These are outlined in the HOME Model
Guide “Compliance in HOME Rental Projects: A Guide for Property Owners,” which is available online at
http://portal.hud.gov/hudportal/documents/huddoc?id=19760_2009homerentalpo.pdf
For projects with floating units, when an existing tenant’s income increases beyond 80% AMI adjusted for
household size, the tenant’s gross rent will be increased to the lesser of the unassisted market rent for the unit
or 30% of the tenant’s adjusted household income. When the income of an existing tenant of a Low-HOME
unit increases above 50% AMI but is below 80% AMI, the rent for that tenant will be increased to the HighHOME rent. In both cases, the next available unit in the project should be rented, based on the project’s
compliance needs, as a Low- or High-HOME unit prior to adjusting the rent of the over-income tenant.
Notwithstanding, over-income tenants of HOME assisted units that have been allocated low-income housing
tax credits must pay rent according to Section 42 of the Internal Revenue Code of 1986 (26 U.S.C. 42).
ENVIRONMENTAL REVIEW REQUIREMENTS
Federally assisted projects are subject to a variety of environmental requirements. Developers should be
familiar with these requirements and are strongly encouraged to discuss any questions they have with
City/Parish staff prior to entering into a purchase agreement or submitting an application.
1. All Rental Housing projects shall be implemented in accordance with environmental review regulations
as defined 24 CFR Part 58.
2. The City/Parish shall be responsible for conducting the environmental review and completing all
necessary public notifications, and the request for release of funds (RROF) from HUD. The applicant is
responsible for cooperating with the City/Parish in the environmental review process and providing
information necessary for the City/Parish to fulfill its responsibilities under Part 58 and other applicable
regulations.
3. Submitting an application for HOME funds triggers environmental review requirements under 24 CFR
58, including the National Environmental Policy Act (NEPA). Once an application for federal funds is
submitted, a development proposal is now subject to the environmental review requirements and
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
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requires an environmental clearance and issuance of a Release of Funds (ROF) by the US Department
of Housing and Urban Development.
4. Developers are prohibited from undertaking or committing or expending any funds to (including nonfederal funds) any physical or choice-limiting actions on the site prior to an environmental clearance as
required by Part 58. Physical and choice limiting actions include, but are not limited to, property
acquisition, demolition, movement, rehabilitation, conversion, repair or construction. This prohibition
applies regardless of whether federal or non-federal funds are used, and taking a choice limiting action
prior to completion of the required environmental clearance process will result in the denial of any
HOME funds from the City/Parish.
OTHER FEDERAL REQUIREMENTS
Nondiscrimination and Equal Opportunity
The following federal nondiscrimination and equal opportunity guidelines apply to all Rental Housing projects
and affect both development and operation of assisted housing:
1. The Fair Housing Act (42 U.S.C. 3601-19) and implementing regulations at 24 CFR part 100 et seq.;
2. Executive Order 11063, as amended by Executive Order 12259 (3 CFR, 1959-1963 Comp., p. 652 and 3
CFR, 1980 Comp., p. 307) (Equal Opportunity in Housing Programs) and implementing regulations at
24 CFR part 107;
3. Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d- 2000d-4) (Nondiscrimination in Federally
Assisted Programs) and implementing regulations at 24 CFR part 1
4. The Age Discrimination Act of 1975 (42 U.S.C. 6101-6107) and implementing regulations at 24 CFR part
146
5. Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at part 8 of
this title
6. Title II of the Americans with Disabilities Act, 42 U.S.C. 12101 et seq.; 24 CFR part 8; Section 3 of the
Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) and implementing regulations at 24
CFR part 135;
7. Executive Order 11246, as amended by Executive Orders 11375, [[Page 41]] 11478, 12086, and 12107 (3
CFR, 1964-1965 Comp., p. 339; 3 CFR, 1966- 1970 Comp., p. 684; 3 CFR, 1966-1970 Comp., p. 803; 3
CFR, 1978 Comp., p. 230; and 3 CFR, 1978 Comp., p. 264, respectively) (Equal Employment
Opportunity Programs) and implementing regulations at 41 CFR chapter 60;
8. Executive Order 11625, as amended by Executive Order 12007 (3 CFR, 1971- 1975 Comp., p. 616 and 3
CFR, 1977 Comp., p. 139) (Minority Business Enterprises); Executive Order 12432 (3 CFR, 1983 Comp.,
p. 198) (Minority Business Enterprise Development).
9. Executive Order 12138, as amended by Executive Order 12608 (3 CFR, 1977 Comp., p. 393 and 3 CFR,
1987 Comp., p. 245) (Women's Business Enterprise). The nondiscrimination provisions of Section 282
of the National Affordable Housing Act of 1982.
Uniform Relocation Act (URA)
All Rental Housing projects fall under requirements of the URA. Any project resulting in permanent
relocation/displacement of households will not be funded by the City/Parish. Applicants must further
document that any purchase of property meets the requirements of URA, including provision of notices to the
seller identifying the transaction as a voluntary sale not under the threat of eminent domain. To ensure
compliance with URA, applicants should consult the City/Parish to understand the requirements of URA and
reference the URA forms included in the RFP prior to submitting an application involving an occupied
property.
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
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Davis Bacon
Davis Bacon federal prevailing wage requirements shall apply to all Rental Housing projects with 12 or more
units assisted with HOME funds.
Minority Business Enterprise and Women Business Enterprise (MBE/WBE) Plan
Developers must maintain a MBE/WBE plan that demonstrates marketing and solicitation of MBE/WBE
businesses and contractors for the construction of the project.
Section 3
Developers must maintain a Section 3 plan that demonstrates a marketing plan to include Section 3
contractors in the construction of the project.
Excluded Parties
The City/Parish will not fund projects owned, developed, or otherwise sponsored by any individual,
corporation, or other entity that is suspended, debarred, or otherwise precluded from receiving federal
awards. Nor may the owner contract with any other entity (including but not limited to builders/general
contractors, property management companies, or other members of the development team) that are
suspended, debarred, or otherwise so precluded. Similarly, the general contractor will be required to
determine that subcontractors are not so precluded.
ONGOING PROJECT REQUIREMENTS
A. PROJECT COMPLETION DEADLINE AND PERIOD OF AFFORDABILITY
The period of affordability will be based on the date of project completion as defined by 24 CFR 92.2 which,
among other things, requires that all construction activity be complete, all HOME funds drawn from the US
Treasury, and project completion information be entered into HUD’s Integrated Disbursement and
Information System (IDIS) reporting system.
For rental projects, project completion may occur upon completion of construction and before occupancy, and
units may be marked vacant in IDIS until complete beneficiary data is received. Project completion must occur
within four years of the date of commitment of funds to the project. If the Owner fails to meet this four-year
deadline, it must repay to the City/Parish any HOME funds disbursed for the project. In accordance with the
minimum requirements of 24 CFR 92.252(e), new construction rental project funded with HOME shall
maintain HOME affordability requirements for a period of 20 years after project completion. Rehabilitation
projects must maintain HOME affordability requirements for 5-15 years depending on the per-unit HOME
investment; in practice most rehabilitation projects will require a 15-year affordability period.
B. INITIAL OCCUPANCY DEADLINES:
In accordance with 24 CFR 92.252, HOME-funded rental projects must comply with the following deadlines
and requirements as evidenced by occupancy by tenants with a written lease that complies with the
requirements of 24 CFR 92.253:
1. This is a numbered list
2. Within 6 months from the date of project completion, if a rental unit remains unoccupied, the
Owner will provide to the City/Parish information about current marketing efforts and, if
appropriate, an enhanced plan for marketing the unit so that it is leased as quickly as possible.
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3. Within 18 months from the date of project completion, if efforts to market the units are
unsuccessful and units remain unoccupied by an eligible tenant, the City/Parish will require
repayment of all HOME funds invested in each vacant unit. A unit that has not served a low- or
very low- income household has not met the purposes of the HOME program. Therefore, the costs
associated with the unit are ineligible.
C. MARKETING AND LEASING MATERIALS
The owner/developer must establish a written tenant selection plan consistent with the requirements of 24
CFR 92.253(d). Among other requirements, the tenant selection plan must, insofar as is practical, provide for
the selection of tenants from a project’s waiting list in chronological order of their applications and provide
written notification to any rejected applicant of the reason for their rejection.
All HOME funded projects with five or more HOME-assisted units must establish an affirmative marketing plan
detailing marketing procedures to attract eligible occupants without regard to race, color, national origin, sex,
religion, familial status, disability, or sexual orientation. Affirmative marketing plans shall include all required
aspects as stated in 24 CFR 92.351(a)(2). The City/Parish will accept affirmative marketing plans using the most
recent version of form HUD-935.2A or in another format as may be specified by the City/Parish from time to
time.
HUD-935.2A
is
available
online
at
the
following
link:
http://portal.hud.gov/hudportal/documents/huddoc?id=935-2a.pdf.
Leases between the tenant and owner shall be for one year, unless by mutual agreement between the tenant
and the owner. Owners are required to provide 30 days’ written notice prior to terminating or refusing to
renew the lease, and any termination or refusal to renew must be for good cause. Owners are prohibited from
including unfair provisions in HOME project leases. In accordance with the provisions of 24 CFR 92.253, the
following terms are prohibited from HOME project leases:
1. Agreement to be sued
2. Treatment of personal property
3. Excusing owner from responsibility
4.Waiver of notice
5. Waiver of legal proceedings
6.Waiver of a jury trial
7. Waiver of right to appeal court decision
8. Tenant chargeable with cost of legal actions regardless of outcome
D. PROHIBITION ON CERTAIN FEES TO TENANTS
Pursuant to 24 CFR 92.214, HOME program participants may not charge fees to program beneficiaries to cover
administrative costs related to the cost of administering the HOME program. Specifically, rental project
owners may not charge tenants fees that are not customarily charged to tenants of rental housing (e.g.,
laundry room access fees). However, Owners may charge fees for the following:
1. Reasonable application fees to prospective tenants;
2. Parking fees to tenants only if such fees are customary for rental housing projects in the
neighborhood; and
3. Fees for services such as bus transportation or meals, as long as the services are voluntary and fees are
charged only for services provided.
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The City/Parish will review and approve fee schedules annually to ensure that any fees charged in addition to
rent are permissible under the applicable HOME requirements and whether proposed fees are reasonable and
customary based on market comparisons.
E. REPORTING AND RECORDKEEPING
To allow effective oversight of funded projects and document compliance with applicable HOME
requirements, all projects must submit periodic reports to the City/Parish. While this section outlines standard
reporting requirements, the City/Parish reserves the right to require additional reporting or to alter the
reporting format or frequency based on future changes to HOME requirements or City/Parish policy.
Additionally the City/Parish reserves the right to require additional or more frequent reporting for projects
with compliance deficiencies.
Owners are required to report quarterly during the development phase and lease-up phase. Quarterly
reports will be due on the 15th of the month following the end of the prior quarter (e.g., by April 15th
reports on the first quarter are due);
During the construction phase, owners must provide quarterly reports detailing construction progress and
barriers to progress, copies of invoices being paid, and evidence of appropriate lien waivers.
During the initial phase of lease-up, owners are required to provide quarterly reports detailing number of
additional leases, total project leases, marketing activity, and monthly income and expenses. Once the
owner has leased 90% of project units, leasing and marketing reporting will be required annually.
Annual Reports shall be required for all HOME projects, and shall be completed in accordance with the
forms for the Rental Property Owner’s Annual Report Narrative and Rental Property Owner’s Financial
Report and all related documents. Annual reporting requirements will, at a minimum, consist of the
following information:
Owner;
Project name;
Rent Roll indicating occupancy, tenant income, rents, and utility allowances for all Low- and High-HOME
units;
Outstanding loans on the property;
Development yearly financial performance including:
 Operating surplus or deficit;
 Vacancy rate;
 Rent collection rate; and
 Tenant turnover;
Copy of the Lease Agreement; and
Capital expenditures (previous year and any planned for next 3-5 years).
The City/Parish may require more frequent reporting due to findings identified during annual monitoring,
or findings identified during quarterly reports submitted during the development and lease up phases.
All HOME projects shall be required to submit an annual audit prepared by an independent Certified Public
Account.
Owners and developers shall allow City/Parish, HUD, the State of Louisiana, the Comptroller General of
the United States (aka the GAO), and all other pertinent Federal or State agencies or their designated
representative the right to inspect records and property.
Owners must annually submit any updates to their Tenant Selection Policy and affirmative marketing plan
and must maintain records of annual efforts to affirmatively further fair housing in accordance with 24
CFR 92.351. Updates must clearly detail all changes.
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The City/Parish will periodically require owners to obtain a capital needs assessment prepared by an
independent third party architect, engineer, or other qualified firm approved by the City/Parish.
Initially, the City/Parish expects that capital needs assessments would be required every five (5) years
following project completion. Such capital needs assessments shall be used for the purposes of
determining the adequacy of the Replacement Reserve, taking into account its existing balance,
planned deposits, and anticipated future capital replacement costs for the Project.
If the capital needs assessment indicates the Replacement Reserve is not sufficient to address anticipated
capital costs during the Affordability Period or the remaining term of any City/Parish HOME loan, the owner
must, at the City/Parish’s option, either make an additional deposit or increase its annual deposits sufficient to
meet any underfunding. If an additional deposit is required by the City/Parish, the owner (or the Guarantors)
must replenish the Replacement Reserve Account within six months.
F. CONFLICT OF INTEREST AND IDENTITY OF INTEREST
Conflict of Interest
To comply with HOME requirements and to maintain a high standard of accountability to the public, conflicts
of interest and perceived conflicts of interest must be avoided.
Owners shall maintain compliance with all HUD conflict of interest provisions as stated in 92.356.
Owners with employees, family members, consultants, or agents that are otherwise eligible to occupy HOME
funded-units must receive waiver/approval from City/Parish staff before entering into a lease with HOME
eligible employee or other covered person. 92.356(f) provisions apply to all HOME projects.
Identity of Interest
An Identity of Interest Entity includes any corporation, partnership, joint-venture, or other entity owned or
controlled, in whole or in part, by the developer, applicant, or any of the underlying owners or guarantors of
the ownership entity
No Identity of Interest Entity may obtain a financial interest in or from a HOME-assisted activity unless written
approval is granted by the City/Parish. “Financial interest” includes any interest in any contract, subcontract,
purchase contract, or agreement with respect to a HOME-assisted project owned, sponsored, or developed by
the applicant, or the proceeds thereunder.
Any Identity of Interest relationships that are intended as part of a project must be disclosed in writing to the
Participating Jurisdiction in the application for funding, or as soon thereafter as such a relationship is intended,
and must be approved in writing by the Participating Jurisdiction.
If an exception is requested for award of a contract or other financial benefit to an Identity of Interest Entity,
the developer or applicant must document and certify that:
The Covered Person or Identity of Interest Entity is fully qualified to perform under the proposed contract;
and
The proposed contract or purchase is cost reasonable.
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STRUCTURE OF TRANSACTION
A. LOAN TYPES AND TERMS
The City/Parish will provide HOME funds in the form of a loan to the entity that owns the property. Funding
commitments are not transferable without prior written City/Parish approval.
The City/Parish’s HOME Loan is intended as permanent financing. In most cases, proceeds of the HOME loan
will only be released following completion of construction and satisfaction of all requirements outlined below.
Based on the needs of the project and the strength of the development team, construction lending may be
considered on a case by case basis. As further security for construction loans, the guarantors described herein
must provide an irrevocable letter of credit payable upon demand to the City/Parish that remain in force until
completion of construction and satisfaction of all conditions otherwise typically required for the release of
permanent loan funds.
In all cases, the HOME loan will:
1. Have a minimum term of 20 years;
2. Be repayable in full upon sale, refinancing, or transfer of the property or upon maturity; and
3. Secured with a promissory note, mortgage, and appropriate UCC liens. Mortgages will be recorded
with the East Baton Rouge Parish Clerk of Court and generally may be subordinate only to an
approved amortizing first mortgage and to any loan provided by LHC, if applicable.
Except as further provided below, the City/Parish will offer one of two potential repayment structures:
1. Because the City/Parish expects to provide HOME as gap financing only, most loans will be
structured as a cash-flow contingent loan with payments limited to 50% of cash flow remaining
after all City/Parish approved operating costs and deposits to reserves;
2. At the City/Parish’s option, and based on its underwriting evaluation, loans may be structured as
repayable over a 20-year term at 0% interest.
For projects serving homeless, special needs, or other high need populations undertaken by nonprofit
organizations, the City/Parish may offer HOME in the form of a forgivable loan whereby any balance
remaining following the end of the affordability period can be forgiven provided the project has complied with
all HOME obligations and that the forgiveness is necessary to allow the recapitalization of the project to
extend its useful life and ability to continue to provide affordable housing.
B. GUARANTEES
Unless otherwise determined by the City/Parish, not including investor/syndicator partners or members of the
ownership entity, all underlying individuals, corporate entities (including nonprofit organizations),
partnerships, or limited liability companies with an interest in the project’s ownership entity will be required to
provide the following guarantees:
1. Completion Guarantee including provisions guaranteeing construction completion of the project.
2. Performance and Repayment Guarantee including provisions guaranteeing environmental
compliance and compliance with HUD HOME guidelines.
3. Replacement Reserve Guarantee to ensure annual deposits to a Replacement Reserve for the
project in an amount consistent with the loan documents and/or covenant running with the land.
Guarantees shall be joint and several and must remain in effect throughout the affordability period.
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
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C. PROPERTY COVENANTS AND RESTRICTIONS
Each HOME-funded project property must maintain Covenants and Restrictions enforcing HOME and
City/Parish guidelines. The Covenants and Restrictions will be separately recorded and will remain in place for
the Affordability Period even if the HOME loan is pre-paid. The following guidelines must be enforced through
Covenants and Restrictions:
1. Owner will be owner in fee simple of the property unless the City/Parish agrees to a 99-year ground
lease structure;
2. Property is not subject to additional liens or encumbrances that the City/Parish has not agreed to;
3. The City/Parish must approve any transfer of the property. Such approval will be in the City/Parish’s
sole discretion;
4. The City/Parish must approve any transfer of the underlying ownership interests (i.e. partnership
interests in a limited partnership or membership in a limited liability company) of the ownership entity.
Such approval will be in the City/Parish’s sole discretion;
5. Provisions to enforce ongoing requirements for project compliance through the HOME Affordability
period, including:
The length of the period of affordability;
Income and rent restrictions on HOME-assisted units;
Property standards to be enforced;
Marketing and leasing requirements; and
Recordkeeping and reporting requirements.
D. HOME AGREEMENT
In addition to any financing documents, owners of HOME-financed projects must sign a HOME agreement
with the City/Parish. The HOME agreement will identify requirements for compliance with the HOME
regulations and the City/Parish’s Rental Housing Program requirements and will remain in effect in the event
of any prepayment of the HOME loan.
UNDERWRITING & SUBSIDY LAYERING REVIEWS
A. MARKET ASSESSMENT
At initial application, all proposals should be supported, at a minimum, by an analysis of rents at comparable
affordable multifamily properties in the City/Parish that are either under common ownership or managed by
the proposed management agent. The management agent should prepare an analysis of actual rents
achieved, project features that support higher or lower rent projections, and vacancy and waiting list
information for comparable units. If a formal third-party market study, or preliminary assessment, has been
obtained prior to the initial application deadline, it must be submitted.
Prior to final underwriting and issuance of a formal commitment, all HOME project applications must include a
third-party market study. Market studies must be less than 6 months old and must have been provided by a
member of the National Council of Housing Market Analysts. Proposed rent levels must be supported by the
applicant’s market study and within HOME regulatory limits. To avoid duplication of costs, the City/Parish
expects that in most cases, it will accept the market study obtained by LHC as part of its LIHTC application
process, as applicable. In most cases, those market studies are available from LHC in early October.
Notwithstanding, the City/Parish reserves the right to require the applicant to obtain a market study for the
benefit of the City/Parish if necessary.
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
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B. DEVELOPER REVIEW
The City/Parish will only fund applicants with a demonstrated track record of successfully developing and
managing similar projects. Applicants must submit a list of schedule of real estate owned, including all real
estate developments completed in the past five years and a list of any pending or under-construction projects
for which HOME, LIHTC, or other public funding commitments have been made.
All HOME applications must include financial statements from all underlying owners and guarantors. Owners
must have a net worth equal to at least 10% of the total development cost with net liquid assets equal to 3% of
the total development cost.
The City/Parish will also consider the quality and experience of the development team assembled for the
project, and the track record of those team members on similar projects in the past.
A history of poor performance by the developer or development team—including projects that are behind
schedule, have been cited for compliance deficiencies or code violations, or have resulted in foreclosure or
removal of the developer—will be grounds for rejection.
C. PROJECT UNDERWRITING
In all cases, the City/Parish reserves the right to impose more stringent underwriting standards on individual
applicants based on unique features of the proposed project, experience at comparable properties, changing
economic and market conditions, or the City/Parish’s assessment of risk in a given transaction. In general, the
following underwriting standards will apply:
1. All projects will be underwritten to a combined economic vacancy factor of at least 7%.
Developments of 20 units or less will be underwritten to a combined vacancy factor or at least
10%.
2. City/Parish staff will use a maximum 2% inflation factor for all sources of income.
3. All operating expenses will be underwritten with an assumption of at least $3,600 per unit per year
and an inflation factor of at least 3%.
4. Proposals must include justification of operating costs that includes a comparison to similar
projects in the local market. Whenever possible, comparable properties should be operated by the
proposed management company. In its sole discretion, based on the review of actual operating
costs for comparable properties, the City/Parish may underwrite to a lower per unit per year
operating cost project if it determines that the project can reasonably be operated in such a
manner without unduly compromising its ongoing sustainability.
5. All HOME projects must maintain a total project Debt Coverage Ratio (DCR) of 1.20. Properties
with a DCR that exceeds 1.20 may have rent increases reduced or denied.
6. A capitalized operating reserve equal to at least six months of operating expenses, reserve
deposits, and debt service must be established at the initial closing of the project. This reserve
must be in addition to any dedicated “deficit reserve” that may be established to account for
predicted deficits with the project’s 20 year cash flow projection. HOME funds cannot be used to
establish this reserve.
7. At a minimum, projects must make replacement reserve deposits of $300 per unit per year for
family projects and $250 per unit per year for elderly projects. Additionally, in the case of
rehabilitation projects, the developer must capitalize an initial replacement reserve at closing
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
33
equal to at least $1,000 per unit. The replacement reserve must be funded annually and
maintained for the full affordability period and reflected in the operating expenses for the full 20year projection of expenses. Reserve deposits will be inflated at 3% annually.
In the case of projects involving the rehabilitation, a capital needs assessment prepared by an
independent third party architect, engineer, or other qualified firm acceptable to the City/Parish must
be submitted as part of the application. The capital needs assessment should demonstrate that, upon
completion of the rehabilitation, all major systems (including the roofing and exterior cladding, HVAC,
plumbing, and electrical systems) will either have a remaining useful life of 15 years or that the
replacement reserve will be funded sufficiently to allow the replacement of all major systems expected
to expire within the next 15 years.
To support projected tax credit equity pricing, applicants must submit documentation indicating that a
syndicator or investor has reviewed the proposal and indicated preliminary pricing along with their
interest in the project.
Applicant must provide the amounts and terms for the construction financing, permanent financing, and,
if applicable, owner equity information.
D. PROFORMA REQUIREMENTS
The City/Parish requires proforma format provided it explicitly shows:
1. An itemized breakdown of units by bedroom size, square footage, income restriction, and both
gross and net rent levels (i.e. net rents are those actually charged after adjusting rents for tenant
paid utilities);
2. Operating cost assumptions should be itemized and show costs on both a total development and
per unit basis. The City/Parish prefers the format provided by LHC in its LIHTC application
package;
3. The hard costs of any stand-alone accessory buildings, including leasing offices, community
buildings, laundry facilities, free-standing garages or carports, or maintenance buildings should be
specifically itemized in the Development Sources and Uses so that the City/Parish can complete
preliminary HOME cost allocation calculations. Further, for projects using LIHTCs, the
Development Sources and Uses should clearly show which costs are included in basis, whether
your project qualifies for a 30% basis boost;
4. For projects using LIHTCs, net tax credit equity projections should be supported by calculations
clearly showing anticipated pricing; and
5. The 20 year operating projection should clearly show inflation assumptions for all revenues and
expenses, including increases in replacement reserve funding.
6. Costs and fees to be paid to the City/Parish as permitted by the HOME program. The HOME
program allows the City/Parish to include, as project costs, its internal soft costs specifically
attributable to the project. These may include consulting, legal, inspection, and staff costs
associated with reviewing, processing, and monitoring award of funds to a project. The City/Parish
will notify Owners of the amounts to include in their Development Sources and Uses for “Baton
Rouge Due Diligence & Legal Costs” and annual “Baton Rouge Compliance Monitoring Fees.”
E. COST LIMITATIONS
All project costs must be reasonable and customary. The City/Parish reserves the right to review any line-item
cost to ensure that total project costs are not excessive. Additionally, HOME projects will be subject to the
following specific cost limitations:
City of Baton Rouge-East Baton Rouge Parish Office of Community Development, May 2015
34
1. The maximum allowable developer fee is 15% total development costs. Any development consultant
costs must be paid from the proceeds of the developer fee.
2. Maximum allowed builder General Requirements, Overhead, and Profit are 6%/2%/6%.
3. Architectural fees may not exceed 7% of total project hard costs.
4. Acquisition costs are limited to fair market value as determined by a third party appraisal. Appraisals
should be no more than 6 months old at the time of application to the City/Parish, and the City/Parish
reserves the right to require updated an updated appraisal if the commitment of HOME funds is not
made within 6 months of any preliminary award.
To account for fixed costs that do not vary based on the size of a transaction, for projects of less than 24 units,
the City/Parish will consider higher allowances for builder General Requirements, Overhead, and Profit and
Architectural fees on a case-by-case basis.
F. OTHER PUBLIC FUNDING SOURCES
Owners must disclose all other public source or applications for funding with initial HOME Rental Housing
application to the City/Parish at the time of application and upon receiving any additional commitments of
public source funding. The City/Parish will conduct a subsidy layering review as part of the underwriting
process for any project that includes other public subsidies. Using its underwriting criteria, the City/Parish will
assess the project and may require changes to the transaction to ensure that cash flows to the
owner/developer are not excessive. Changes may include a reduction in HOME funds awarded, reductions in
the rents being charged to tenants, requirements that excess cash is deposited to an operating reserve, or
increases in annual payments on the HOME loan.
The City/Parish will consider adjusting its underwriting in consultation with other public funders including LHC,
if applicable to the project. The City/Parish retains, at its sole discretion, the power to decide whether to
accept alternative standards.
CONSTRUCTION PROCESS
A. CITY/PARISH CONSTRUCTION INSPECTIONS
While the City/Parish will provide HOME in the form of permanent financing only, the City/Parish must be
provided with copies of all contractor invoices and provided reasonable notice of monthly draw inspections
during the construction period. City/Parish staff will participate in all draw reviews and conduct inspections to
ensure that the project is progressing and that work completed is consistent with all applicable HOME
requirements.
B. DAVIS BACON
When Davis Bacon applies to a project, the City/Parish must be provided with compliance documentation
throughout the construction period even though HOME will be provided as a permanent loan following the
completion of construction. Prior to commencing construction, the City/Parish must approve current wage
determinations applicable to the project. The contractor will be required to provide weekly payroll forms to
the City/Parish and allow access to the site and workers for the purpose of completing worker interviews.
The City/Parish will accept Form WH-47 or acceptable internal forms from the contractor. Form WH-347 and
instructions for completing it may be accessed at: http://www.dol.gov/whd/forms/wh347instr.htm.
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C. DRAWING CITY/PARISH HOME FUNDS
The City/Parish’s HOME Loan is intended as permanent financing. Proceeds of the HOME loan will only be
released as reimbursement for eligible project costs following:
Construction completion and satisfactory inspection by the City/Parish;
Lease-up of all HOME-designated units, submission of tenant data necessary to complete the Project in
HUD’s IDIS system, and the City/Parish’s approval of income determinations for HOME-assisted
tenants;
Review and acceptance of appropriate source documentation by the City/Parish, including but not limited
to submission of a cost certification prepared by an independent Certified Public Accountant following
completion of construction and payment of all development costs;
A determination by the City/Parish that all HOME requirements pertaining to the initial development of
the Project have been met, including but not limited to monitoring of Davis Bacon compliance.
D. PROJECT CLOSEOUT
Owners are required to submit demographic data at lease up for all HOME funded units. Data shall include
elderly status, race, gender, female head of household, number of household members, and percent of area
median income. Owners must be aware that the affordability period does not begin for HOME-funded units
until all project costs are processed, all demographic data is verified by City/Parish staff, and the project is
entered as completed in IDIS.
The City/Parish requires a copy of the final project sources and uses statement and submission of the project
cost certification prepared by an independent Certified Public Accountant following completion of
construction and payment of all development costs.
LONG TERM MONITORING
Following project closeout, the City/Parish will monitor the project for ongoing compliance with HOME
requirements, including but not limited to income and rent restrictions, property standards, tenant
protections, and marketing and fair housing requirements. In addition to requiring periodic reporting as
outlined in Section 4.E. above, the City/Parish will conduct on-site monitoring visits. The purpose of those
visits will include reviews of project records and inspection of the premises including common areas and
residential units. In most cases, such reviews will take place annually based on existing HOME requirements at
24 CFR 92.504(d)(1). However, the City/Parish reserves the right to conduct site visits more or less frequently
based on changes to HOME regulations and City/Parish policy or based on evidence of compliance deficiencies
in a prior monitoring visit.
EXHIBIT A: APPLICATION REQUIREMENTS AND DUE DILIGENCE
EXHIBITS
INSTRUCTIONS
At the time of applying for funding, applicants must submit all materials required by the City/Parish’s HOME
request for proposals including the bolded due diligence items from the list below. Applicants will then need to
submit all items, including non-bolded items, prior to receiving a formal commitment of funds from the
City/Parish. However, if available, applicants should submit all items in the checklist below with their initial
application.
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The City/Parish reserves the right to require additional due diligence items as needed to evaluate the project
and to document compliance with HOME and other applicable federal regulations. Additionally, following a
commitment of HOME funds, additional items will be required in order to close on the City/Parish’s HOME
loan.
For convenience, the list below identifies forms from the LHC application for LIHTC that can be submitted in
response to particular documents in this checklist. Because the City/Parish RFP will generally be issued prior to
LIHTC rounds, a full copy of the LHC application may not be available during the City/Parish’s initial review.
Prior to formal commitment applicants who are also receiving LIHTC must provide a full copy of their
application to the State.
APPLICATION
Complete Response to Request for Proposals including all required certifications and attachments
Executive Summary containing a brief synopsis of the proposed development and number of units,
location, project costs and the proposed financing. The Summary should also have a brief
description of the proposed complex (frontal elevation and floor plan only—detailed drawings are
not required with RFP), proposed site plan, security arrangements, amenities and
accessibility/adaptability provisions;
LHC Rental Housing Programs Application and all exhibits submitted to LHC (for any development seeking
LIHTC or other funding from the LHC), if applicable.
Developer Capacity & Fiscal Soundness
Developer statement of qualifications that identifies (will accept LHC Application Tab “Developer
Experience”):
 Schedule of real estate owned
 Recently completed comparable projects completed within the last five (5) years
 All projects underway and/or pending
 Staff assigned to this project and their roles and experience
 Disclosure of any identify of interest
Individual resumes, copies of appropriate licenses and/or professional certifications of assigned
developer staff
Information on qualifications of property management agent, if applicable (will accept LHC Application
Tab “Management Experience”)
Current financial statements for developer and any guarantors (not less than 90 days old)
Most recent corporate audit or reviewed financial statements
Most recent tax returns for developer (990s for nonprofit developers)
Certified copies of all organizational documents of all entities in the project, including articles of
incorporation, operating agreement, partnership agreement, as applicable
Authority to Release Confidential Information, which is included in the Application Cover Sheet
certification. Will allow City/Parish to:
 Contact Banking references
 Obtain developer’s corporate credit report (e.g. Dun & Bradstreet) or personal credit
report (e.g. sole proprietors, S-corps, etc.)
Completed CHDO Threshold Requirements Checklist along with required documentation (as
applicable)
Development team
 List of third-party development team members
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


Corporation profiles and/or individual resumes, copies of appropriate licenses and/or
professional certifications for development team members
List of affordable rental projects completed in past 5 years for all development team
members
Disclosure of any Identity of Interest Relationships (Applicant may also include LHC
Application Tab “ Appendix 1 – Ownership Info” which includes an Identity of Interest
statement)
Site and Product
Evidence of site control (e.g. option, etc.) (will accept LHC Application Tab “Appendix 2 Site Control”
with applicable attachments)
Uniform Relocation Act documentation
 URA Notice to Seller of Voluntary Sale
 Seller certification regarding vacancy (as applicable)
 Rent Roll and evidence of General Information Notices to existing tenants (occupied
properties only)
Preliminary Title insurance commitment
Documentation of existing property value (e.g. tax assessment, appraisal, etc.)
Phase I Environmental Site Assessment (additional time may be granted for submission of report
prepared by third parties if requested in writing at time of application submission)
Site specific environmental record and (as applicable) estimate of remediation costs
 Applicant may also provide LHC Application Tab “Appendix 42 Environmental Assessment”
 Radon and mold testing (as applicable)
 LBP risk assessment (as applicable)
Documentation of utility availability and connection costs
 Water/sewer, electric, gas
Plans and specifications, including site plan and elevation drawings
Zoning/site plan and building/code review approvals (will accept LHC Application Tab “ Appendix 4 Zoning
Certification”)
Flood Hazard Determination Form (FEMA Form 086-0-32) from a nationally recognized flood data
service or from a licensed surveyor that no portion of the property is located within the 100-year
flood plain. The proposed development cannot be located in the designated floodplain.
Utility allowance calculations
Market Data
Preliminary Market Data—If the third-party preliminary market assessment of market study is not
available, at a minimum a rent comparability analysis prepared by proposed management
company must be submitted with the initial application
Market study (For projects with LIHTC, applicant shall provide LHC commissioned market study upon
availability.)
Additional Evidence of demand—applications/waiting lists from similar projects, voucher/rental assistance
pipelines, or Continuum of Care data for homeless/special needs projects, etc. (will accept LHC
Application Tab “ Demand Certification” – when available from Third Party Market Analysis)
Underwriting/Financial Projections
Proforma showing rent and operating cost projections, all project costs, construction period
sources/uses, and 20 year operating/cash flow projections—should submit electronic copy in MS
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Excel format too (will accept LHC Application Tabs “Sources and Uses” “Proforma Calculation” and
“Proforma”)
Commitments for other financing, both permanent and construction loan sources
Documentation of construction costs (e.g. estimate by qualified individual, bids, contract documents)
Estimates/documentation of professional services and soft costs (e.g. architectural fees, construction
period taxes/insurance, marketing expenses, realtor listing agreement, etc.)
Marketing and Leasing
Marketing plan outlining
 Tenant selection criteria and waiting list procedures
 Description of primary market and outreach strategies, including affirmative marketing as
applicable
 Availability of tenants services and appropriate referral plan
Waiting list(s) of interested tenants—compare demographics to underwriting assumptions about
household incomes, ability to pay projected rent, etc. (if available) (applicant may include LHC
Application Tab “ Appendix 33 PHA Referral Agreement”)
Form lease agreement consistent with 92.253
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