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Frequently Asked Questions – HOME

General

H1. How do we ensure compliance during the term of affordability? Is this done through a deed restriction or is there another preferred method?
Depending on the type of HOME project, a mortgage, lien, and a deed restriction or regulatory agreement on the property will be required.

H2. How do we reference using the City's HOME Match Funds in the HOME RFP?
Each place it asks for the source of the Match funds, use the following description: "City of Tulsa Banked HOME Match Funds".

H3. What if we are unable to provide documentation and/or attachments with the application?
If you do not have the requested documentation and/or attachments that have been asked for in the application, you are welcome to provide a response to justify why it has not been included and state when the documentation and/or attachments will be provided.

H4. Will you require compliance with Section 3 in developments with HOME funds less than $200,000?
The Section 3 requirements apply to the City as a whole when we receive funds exceeding $200,000 combined from all sources in any one year. Section 3 covers the expenditure of any portion of those funds for any activity that involves housing construction, rehabilitation, or other public construction. Section 3 will apply to all HOME projects/activities.
Community Housing Development Organizations - CHDOs

H5. How much HOME funds is the City of Tulsa required to set-aside for CHDO funding?
Per regulation, the City of Tulsa must set aside a minimum of 15 percent of each annual HOME allocation for an eligible CHDO set-aside activity.

H6. Can you provide HOME CHDO rules and requirements?
CHDO Regulations can be found online at https://www.hudexchange.info/programs/home/home-chdo/#policy-guidance

Rental

H7. In for-profit housing development projects, is a developer's related entity that will be used as the general contractor for the project considered any type of conflict of interest as described in Section D of the Conflict of Interest Certification Form?
No; however, you will need to include this information in the Developer Certification Application where it asks for disclosure of any identity of interest.

H8. For-profit development corporations do not typically have the policies listed that are asked for in the HOME application. Will we need to develop such policies or may we indicate "N/A"?
You may mark these "N/A." However, you may want to include a narrative response on why such policies are not needed in your situation. In particular you will want to address how you ensure appropriate internal controls in accounting practices.

H9. The multi-family rental project we are working on will have no committed funds at the time the HOME application is due. How do I address that?
Section III, question H. states "Is the proposed project contingent on receipt of other funding?" Your answer can include the various funding sources, date of application, and anticipated award dates. You might also reference past experience with applying for these types of funds.

H10. Will the City award HOME funds as grants or loans to developers?
The City’s HOME funds are issued as deferred, forgivable loans to the non-profit/for-profit developer and the owner-entity of the property. When all requirements of the HOME affordability period are met, the loan is forgiven. The City may consider establishing a HOME revolving loan program in the future.

H11. May we provide our own version of a development timeline for our project?
Yes. The timeline included in the application is provided as an example, although this form can be filled out and submitted. You may also use this form and modify the listed descriptions appropriate to your specific project.

H12. Site and Neighborhood Standards Review under Title 24, Section 983.6(b) states that a new construction project, "must be approved by the HUD field office as meeting the following site and neighborhood standards." Does the applicant seek approval from HUD before making the HOME application?
You will document your site and neighborhood standards review to demonstrate compliance with 24 CFR 983.6(b). This information will be reviewed by the City of Tulsa for approval prior to your project being funded.

H13. What specific language does the City require in land purchase options indicating the purchase is subject to grant approval, an approved Environmental Review and executed written agreement with the City?
There is no required "specific language." The conditions that are listed are all applicable. We suggest your legal representative ensure this is appropriately covered in any option agreement.

H14. We completed a Phase I Environmental Assessment in the past on the vacant land that we are now proposing to use for our rental new construction project. Will it need to be updated?
Phase I Environmental Assessment standards are set by the ASTM (American Society for Testing and Materials). Any updates and what part or parts of the report need to be updated should be directed to that organization, the company that performed the review or the City of Tulsa's Development Services. You may submit the report with your application and include an explanation that required updates will be completed upon approval for funding.

H15. Section V Attachments for Rental/Rehab and New Construction, item #10 asks for a Current Appraisal or Comparative Market Analysis" to establish a value of the property. Will a 3rd party Market Study/Analysis suffice for this information since an appraisal is not applicable in this situation?
A Market Study/Analysis is required to establish the need for the housing in the location you have chosen. If the study you are submitting will also document a value of the property once it is built, this will be good information. However, item #10 in Section V Attachments - "Cost Estimate by a Professional Engineer" would be the information we would be looking for to establish the development cost of the property, or a value established by the construction lender. This value would also be included in the "financing" worksheet in the HOME Underwriting Spreadsheet.

H16. The HOME Subsidy Layering checklist indicates different limits than the OHFA LIHTC program for developer fees, builder's profit, and replacement reserves. Since we are only using HOME funds for land acquisition are we bound by the HOME limits even though it's not paying for the costs?
The City's HOME Subsidy Layering requirements do apply when HOME dollars are put into the project. Since there are differences between LIHTC and HOME, you may provide an explanation on the differences and any justification as needed to support this. As indicated in the City's policy, we MAY accept LIHTC evaluations/analysis.

H17. The HOME Underwriting Template, the Rents and Income section does not allow for units w/different rates for income targeting. May we submit the Tax Credit Tab 1 spreadsheets in lieu of the City spreadsheets which contain most of the information except for the gap analysis?
We acknowledge that the City's Underwriting Template is quite limited for editing. We suggest you complete it as best you can, then add notes and/or additional pages at the end to address any of these issues, as well as address this information in the narrative where appropriate. The City does require you to submit a complete copy of the LIHTC application, so referencing that information is also acceptable, but is not a substitute for the HOME template.

H18. The HOME RFP, Grant Certification Form 5 requires that we include a cost estimate provided by a professional engineer. Our developer uses a CPA familiar w/tax credits to certify the costs and the architect certifies to construction. Can we remove that line item in the certification or must we plan to hire an engineer to certify costs?
No, you may not cross that line item off. The City of Tulsa's Ordinance Number 23362 requires a cost estimate provided by a licensed Professional Engineer licensed in the State of Oklahoma and authorized to sign and seal plans, drawings, and costs that will be submitted to a public authority for approval.

H19. In a rental project, how do you determine the number of HOME units that are needed and correctly calculate the HOME costs per unit if a significant cost for the project is for a common area such as a parking lot?
It appears you are addressing issues related to Cost Allocation in a HOME rental project. HUD's CPD Notice 16-15 provides the HUD-approved methods to perform these calculations. This information is provided to all HOME applicants interested in applying for a rental project at the RFP workshops. It can also be found online.

H20. Our organization has hundreds of properties in our portfolio. Do we include information on all of them or just the ones in Tulsa Oklahoma?
Please provide information on all the properties throughout the country as HUD requires the City to evaluate each developer's financial stability, which would include all activities, investments, and liabilities.

H21. I am having trouble locating the information on the current Low HOME and High HOME rents. The RFP refers to CPD Notice 98.02. I am not familiar with that reference. Could you direct me to that source?
Link to CPD Notices: https://www.hudexchange.info/manage-a-program/cpd-notices
Additionally, the current HOME Rents are available online.