CHDO Application (continued)
City of Visalia CHDO Certification Page 10 CITY OF VISALIA CHDO APPLICATION Organization: ______________________________ 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, 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. Proposed CHDO Project: _____________________________________________________________ Proposed CHDO Project Address: ______________________________________________________ Proposed CHDO Project Major Funding Sources: Funding Source Indicate whether State, Federal or Other Funding Secured (Y/N) Amount Total $ Self-Help Enterprises 94-1592676Betsy McGovern-Garcia (559) 802-1653Vice [email protected] W. Elowin Courtselfhelpenterprises.orgVisalia,CA, 93291 056179906Crescent MeadowsNW corner of Ferguson Ave. And N. Dinuba Blvd in Visalia, CAHCD - NHTF Federal Y $5,713,291Tulare County - REAPState Y $1,369,6657,082,956 CHDO Application (continued)
City of Visalia CHDO Certification Page 11
CHDOs must serve a specific, clearly defined geographicarea. 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.Current 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?YesNoAre others on staff experienced in the CHDO activity for which you intend to use a CHDO designation?YesNoIf 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? YesNoN/ANumber of full-time employees: ________________ Professional: ____________________Parent organization, if applicable: _________________________________________________IRS Tax Status (check one) 501(c)3501(c)4905 subordinateDate 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 OwnerRental DeveloperRental 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 Crescent Meadows,NW corner of Ferguson Ave. And N. Dinuba Blvd in Visalia, CA,932912001965San Joaquin Valley
City of Visalia CHDO Certification Page 12 CHDO Requirements Rule Citation 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. Exemption 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) Applicable 2.4. If the organization was created by a for-profit entity, then 2.4.1 through 2.4.4 apply: Applicable 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) City of Visalia CHDO Certification Page 13
CHDO RequirementsRule Citation 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 CHDODefinition ¶(3)(iv)2.4.4. The organization must be free to contract for goods & services with others. §92.2 CHDODefinition ¶(3)(iii)3. Accountability to the Low-Income Community3.1. 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 CHDODefinition ¶ (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 CHDODefinition ¶ (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 CHDODefinition ¶(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 CHDODefinition ¶ (10)4. Capacity4.1. The organization has financial management systems that conform to 2 CFR 200.302 and 200.303 §92.2 CHDODefinition ¶ (6)4.2. The organization has paid employees with demonstrated experience relevant to the CHDOs 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 CHDODefinition ¶ (9)4.1.1. During the first year of an organizations 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 CHDODefinition ¶ (9)CHDO ROLE 5. CHDO set-aside projectCHDOs can undertake either homebuyer or rental projects, as described below, withCHDO set-aside funds: Applicable 5.1. Homebuyer projects in accordance with §92.254 To qualify under CHDO set-aside, must meet 5.1.1 and 5.1.2: Applicable City of Visalia CHDO Certification Page 14
CHDO RequirementsRule Citation 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: Applicable 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: Applicable 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; orA limited partnership of which the CHDO or its wholly ownedsubsidiary is the sole general partner; orA limited liability company of which the CHDO or its whollyowned subsidiary is the sole managing member.§92.300(a)(4)CHDO PREDEVELOPMENT 6. CHDO pre-development loanIf a project specific pre-development loan is being provided, in addition to meetingCHDO qualification listed in Items 1 4 above and having a set-aside eligible projectunder Item 5, the predevelopment loan must designated as one of following two loantypes: Applicable 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). §92.3526.2 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)
City of Visalia CHDO Certification Page 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) Applicable 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 organizations 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: _____________________ Tom CollishawPresident / CEO