City of Visalia CHDO Certification 10
CITY OF VISALIA CHDO APPLICATION
Or
ganization: ______________________________ Federal Tax ID (EIN): ________________ Contact Person: ______________________________ Phone #: __________________________ Title: _______________________________________ E- Mail: ____________________________ Street Address: _______________________________ Web Site: _________________________ City/State & Zip: _______________________________ DUNS #: __________________________ Board Composition: Attach a complete list of Board Members at Tab M above, indicating name, Board position and if they are a low-income representative or public official. Certification required for low- income representative. The Board Member Certification Form is located at the end of this document.
Annual Operating Budget: ____________________________________________________________ Major sources of operating funds:
Source
Indicate whether State,
Federal or Other Amount
CH
DO’s must serve a specific, clearly defined geographic area. They do not need to represent a single neighborhood but may include in their service area an entire community, i.e., city, town, village, county, or multicounty area but not the whole state, as long as they meet all other CHDO requirements.
CHDO Application (continued)
City of Visalia CHDO Certification 11
Cur
rent defined service area (i.e., before the proposed CHDO set-aside project):
___________________________________________________________________________________ Name, address, and county of the CHDO set-aside project: ____________________________________ Is the Executive Director experienced in the CHDO activity for which you intend to exercise a CHDO designation? ☐ Yes ☐ No
Are others on staff experienced in the CHDO activity for which you intend to use a CHDO designation? ☐ Yes ☐ No
If staff is not experienced in housing development, has a qualified consultant been hired to train employees of the CHDO in HOME development activities during the first year of operation as a CHDO? ☐ Ye s ☐ No ☐ N/A
Num
ber of full-time employees: ________________ Professional: ____________________ Parent organization, if applicable: _________________________________________________ IRS Tax Status (check one) 501(c)3 ☐ 501(c)4 ☐ 905 subordinate ☐ Date of Incorporation: ______________________________
Based on descriptions on pages 5 and 7 of the Policies and Procedures the CHDO expects to pursue the following CHDO roles (check all that apply):
☐ Rental Owner
☐ Rental Developer
☐ Rental Sponsor – Scenario 1 (see 5.2.3.1 on page 14)
☐ Rental Sponsor – Scenario 2 (see 5.2.3.2 on page 14)
☐ Homeownership Developer
City of Visalia CHDO Certification 12
CHDO Requirements Rule Cit ation
Requirement
satisfied &
documented
ORGANIZATIONAL REQUIREMENTS
1. Legal structure
1.1. The organization is organized under state or local law. §92.2 CHDO Definition ¶ (1)
1.2. The organization has among its purposes the provision of decent housing that is affordable to low-income and moderate-income persons.
§92.2 CHDO
Definition ¶ (7)
1.3. The organization has no part of its net earnings inuring to the benefit of any member, founder, contributor, or individual.
§92.2 CHDO
Definition ¶ (2)
1.4. The organization is not under the control or direction by any individual or entity seeking to derive profit or gain.
§92.2 CHDO
Definition ¶ (3)
1.5. The organization has one of the following IRS tax exempt statuses:
1.5.1. Exem
ption under 501(c)(3) or 501(c)(4);
1.5.2. Subordinate of a central nonprofit under IRC Section 905; or
1.5.3. A private nonprofit that is a wholly owned subsidiary of an organization that has 501(c)(3) or (c)(4) status and meets the CHDO definition. §92.2 CHDO
Definition ¶ (4)
1.6. The organization is not a governmental entity (any of the following: participating jurisdiction, other jurisdiction, Indian tribe, public housing agency, Indian housing authority, housing finance agency, or redevelopment authority). §92.2 CHDO
Definition ¶ (5)
2. Independence
2.1. Public officials & employees of a governmental entity may comprise no more than 1/3 of the board.
§92.2 CHDO
Definition ¶ (5)
2.2. Officers and employees of a governmental entity cannot be officers (e.g., CEO, CFO, or COO) or employees of a CHDO.
§92.2 CHDO
Definition ¶ (5)
2.3. If the organization was created by a governmental entity, then the governmental entity that created the organization may not appoint more than 1/3 of the board members and board members appointed by the governmental entity may not appoint remaining 2/3.
§92.2 CHDO
Definition ¶ (5)
2.4. If the organization was created by a for-profit entity, then 2.4.1 through 2.4.4 apply:
N/A
2.4.1. The for-profit entity that sponsored or created the organization may not have as its primary purpose the development or management of housing, such as a builder, developer, or real estate management firm. §92.2 CHDO
Definition ¶ (3)(i)
2.4.2. The for-profit entity that created the organization may not appoint more than 1/3 board members, and for-profit-appointed members may not appoint remaining 2/3 of board.
§92.2 CHDO
Definition ¶
(3)(ii)
"Att. D : 2 Para"
"Att.G : IV"
"Att.G : III"
"Att.G : VI"
"Att.G : VI"
N/A
N/A
N/A
N/A
N/A
N/A
City of Visalia CHDO Certification 13
CHDO Requirements Rule C itation
Requirement
satisfied &
documented
2.4.3. Officers and employees of the for-profit entity that created the organization cannot be officers or employees of the CHDO.
§92.2 CHDO
Definition ¶
(3)(iv)
2.4.4. The organization must be free to contract for goods & services with others. §92.2 CHDO Definition ¶
(3)(iii)
3. Accountability to the Low-Income Community
3.1. The organization must have a designated service area (i.e., the “community” in which it produces housing). A community can be a neighborhood or neighborhoods, city, county, metropolitan area, or multi-county area (but not the entire State).
§92.2 CHDO
Definition ¶ (8)(i)
3.2. At least 1/3 of the board members are: 1) low-income; 2) residents of a low- income neighborhood; or 3) elected representatives of a low-income neighborhood organization.
§92.2 CHDO
Definition ¶ (8)(i)
3.3. The organization has a formally adopted process for low-income beneficiaries to advise it on decisions regarding design, siting, development, and management of housing.
§92.2 CHDO
Definition ¶
(8)(ii)
3.4. The organization has at least 1 year of serving the community, or, if it is formed by local churches, service organizations, or neighborhood organizations, its parent organization meets this requirement.
§92.2 CHDO
Definition ¶ (10)
4. Capacity
4.1. The organization has financial management systems that conform to 2 CFR 200.302 and 200.303
§92.2 CHDO
Definition ¶ (6)
4.2. The organization has paid employees with demonstrated experience relevant to the CHDO’s role in undertaking the HOME activity to be funded. (Note: this does not include volunteers, board members, donated or shared staff, or consultants – except as described in 4.1.1. below.)
§92.2 CHDO
Definition ¶ (9)
4.1.1. During the first year of an organization’s funding as a CHDO only, capacity can be demonstrated through a contract with a consultant who has housing development experience to train appropriate key staff of the organization.
§92.2 CHDO
Definition ¶ (9)
CHDO ROLE
5. CHDO set-aside project
CHDOs can undertake either homebuyer or rental projects, as described below, with CHDO set-aside funds:
5.1. Homebuyer projects in accordance with §92.254
To qualify under CHDO set-aside, must meet 5.1.1 and 5.1.2:
"Att. H: Art II (2)"
"Att. H :
Art I (2)"
"Att. J "
"Att. E :
Developer
Capacity /
Resumes "
N/A
N/A
N/A
N/A
N/A
" Att. L"
City of Visalia CHDO Certification 14
CHDO Requirements Rule C itation
Requirement
satisfied &
documented
5.1.1. Developer: The organization is or will be the owner in fee simple and the developer of new or rehabilitated units for sale to low-income buyers §92.300(a)(6)
5.1.2. The organization will control the development process including, at a minimum, arranging financing for the project and being in sole charge of construction.
§92.300(a)(6)(i)
5.2. Rental projects in accordance with §92.252
To qualify under CHDO set-aside, must meet one of the following:
5.2.1. Own: The organization is or will be owner in fee simple absolute (or will hold a long-term ground lease) for at least the period of affordability. If a project involves rehabilitation or construction, the organization will oversee all aspects of development.
§92.300(a)(2)
5.2.2. Develop: The organization is or will be owner in fee simple absolute (or will hold a long-term ground lease) for at least the period of affordability and will be in sole charge of all aspects of the development process. §92.300(a)(3)
5.2.3. Sponsor:
Must meet one of the following:
5.2.3.1. The organization will own and develop project that it will convey at a predetermined time after completion to a designated private nonprofit (that was not created by a governmental entity). §92.300(a)(5)
5.2.3.2. The project will be owned and/or developed by an eligible CHDO affiliate, including:
• A wholly owned subsidiary of the CHDO; or
• A limited partnership of which the CHDO or its wholly owned subsidiary is the sole general partner; or
• A limited liability company of which the CHDO or its wholly owned subsidiary is the sole managing member.
§92.300(a)(4)
CHDO PREDEVELOPMENT
6. CHDO pre-development loan
If a project specific pre-development loan is being provided, in addition to meeting CHDO qualification listed in Items 1 – 4 above and having a set-aside eligible project under Item 5, the predevelopment loan must designated as one of following two loan types:
N/A
6.1. TA/site control loan: The loan is for allowable costs specified in §92.301(a)(2) for planning an eligible set-aside project.
§92.301(a)
6.1.1. Document the environmental exemption under 24 CFR 58.34(a) and/or
58.35(b).
§92.352
6.2 Seed money loan: The loan is for allowable preconstruction costs specified in §92.301(b)(1) for planning an eligible set-aside project. §92.301(b)
N/A
N/A
" Att. E "
" Att. E "
"Att. A & E "
"Att. A & E "
City of Visalia CHDO Certification 15
CHDO Requirements Rule Citation
Requirement
satisfied &
documented
6.2.1 Document the environmental exemption under 24 CFR 58.34(a) and/or
58.35(b).
§92.352
CHDO OPERATING
7. CHDO operating expenses
If CHDO operating expenses are being provided, the organization must meet the CHDO qualification requirements listed in Items 1 – 4 above, or the organization must meet requirements in 1-3 and item 4.1 above and be receiving the operating funds specifically to hire staff to meet the requirements in 4.2 above.
In addition, the CHDO must meet the following requirements §92.208(c)
N/A
7.1. The organization is funded from the set-aside for a project under development, or is reasonably expected to be funded from the CHDO set-aside within 24 months
§92.300(e)
7.2. The operating expense funds will be used for eligible operating costs that are reasonable and necessary
§92.208(a)
7.3. Operating expense funding (including from other PJs and any Pass-Through funding) in the fiscal year will not exceed the greater of $50,000 or 50% of the organization’s total operating expenses in that year
§92.300(f)
CHDO CERTIFICATION
8. CHDO Certification - Applicant certifies that the information provided herein is true and correct. The organization meets all CHDO regulatory thresholds, AND one or more of the following:
The organization has a project that meets the project eligibility requirements of 92.300 for a reservation of CHDO set-aside funds.
The organization has a project that qualifies for a pre-development loan for eligible costs under 92.301. The organization qualifies for Operating Expenses.
Name:________________________________________________________________________ Title: _______________________________________________________________________ Signature:
___________________________________________________ Date: _____________________ DocuSign Envelope ID: 92EDDF8D-525B-4B1F-B3A6-C86A3B583947 X
X
Tom Collishaw
President/ CEO
6/19/2023