HUD-5260 Rental Assistance Demonstration Instructions to Applican

Rental Assistance Demonstration (RAD) Application Form

HUD 5260 RAD Public Housing Application Version 9 20 12v2.xlsx

OMB: 2577-0278

Document [xlsx]

Download: xlsx | pdf

Overview

Instructions
PHA App Form
Board Approval Form
Financing Letter of Interest
Mixed Finance Affidavit
Choice Mobility Let Agreement
Validation
Sample PIC Data

Sheet 1: Instructions

RENTAL ASSISTANCE DEMONSTRATION
	U.S. Department of HUD, Form HUD-5260
	OMB Approval Number 2577-xxxx (Issue Date x/xx) (Expires x/xx)
Paperwork Reduction Notice: The information collection requirements contained in this notice have been approved by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 3520). Public reporting burden for this collection of information is estimated to average 2 hours per response, including the time for reviewing instructions, searching existing data sources , gathering and maintaining the data needed, and completing and reviewing the collection of information. This agency may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. This collection of information is required for applying to the Rental Assistance Demonstration pursuant to PL-112-55 and HUD requirements as explained in PIH Notice PIH-2012-032. The information will be used to provide HUD with sufficient information to enable a determination that the proposed conversion is financially feasible and that HUD statutory and regulatory requirements have been met. Please address any comments or questions on this data collection to rad@hud.gov and the appropriate personnel will respond to your inquiry in a timely manner. HUD may not collect this information, and you are not required to complete this form unless it displays a currently valid OMB number. Limited confidentiality is assured.
Note: This Excel Spreadsheet has multiple worksheets listed in the tabs below. Depending upon each worksheet’s applicability to your application, you may be required to fill out several of these worksheets in order for HUD to consider your application complete. To navigate amoung the worksheets, click the indivdual worksheet tabs at the bottom of this window. If no worksheet tabs are visible, select "Options ..." from the "Tools" menu. In the dialogue box, select the "View" tab and then "Normal".

Instructions to Applicants: Public Housing Agencies

INTRODUCTION

1	In accordance with Notice PIH-2012-32, this Excel-based Application Form shall be used by public housing agencies (PHAs) in submitting applications under the Rental Assistance Demonstration (RAD).
2	As part of the application, the user will be completing both an Operating Pro-Forma and a Development Budget for the proposed conversion. An application cannot be submitted (see "fatal error" message, below) if the Pro-Forma or Development Budget do not balance or otherwise contain error messages.

GENERAL INSTRUCTIONS

1	Complete one Application Form for each public housing project proposed for conversion.
2	Upon completion of the application, print out the associated attachments.
3	Submit the completed application, along with the signed attachments (where applicable), and email to RADApplication@hud.gov.

HOW THIS EXCEL WORKBOOK WORKS

1	In order to obtain this Excel workbook, go to the RAD website (www.hud.gov/rad), and click on 'Obtain Excel Application for PHAs'. Enter the project's PIC Development Number. The web site will auto-populate certain cells with information on the project from HUD systems. You can then download this Excel workbook and save it on your computer.
2	Fill in all items that appear in grey highlight.
3	Bright blue squares containing a white question mark offer additional guidance. Place the mouse cursor over the square to read this guidance.
4	Note that, for the purposes of reviewing applications, HUD has standardized some of the financing assumptions. These benchmarks/assumptions are only for the purposes of reviewing the applications; actual lender underwriting may be different. If an entry trips one of these assumptions, an error message will appear, indicating either that the user provide an explanation or that the user enter an amount that complies with the standardized assumption.
5	If a "fatal error" message appears in red, the application cannot be submitted. Review the fatal error message and correct the input(s) as needed. The fatal error message will disappear once the input(s) has been corrected.
6	Once all information has been entered, print the following form-generated attachments (where applicable): • Board Approval Form. This is a document that the PHA and the PHA Board must approve. A PDF copy of the signed document must be submitted with the RAD Application. It summarizes key aspects of the application. Failure to submit an executed form with the application will result in its rejection. • Financing Letter of Interest/Intent. This is a document that a lender or equity investor must sign. A PDF copy of the signed document must be submitted with the RAD Application. It is designed to give the lender or equity investor information on key aspects of the proposed transaction. A separate Financing Letter of Interest/Intent must be submitted for each proposed source of funding. Failure to submit all of the required Letters of Interest/Intent with the application will result in its rejection. • Mixed-Finance Affidavit. This is a document that the PHA and the owner-representative of the mixed-finance project must sign. A PDF copy of the signed document must be submitted with the RAD application for any mixed-finance project. PHAs should note that the Notice provides that mixed-finance projects funded with HOPE VI grants are eligible only if the Date of Full Availability (DOFA) is October 1, 2002 or earlier; and • Choice-Mobility Letter Agreement. This is a document that will be signed by both the PHA that is providing choice-mobility vouchers and by the PHA (or Mod Rehab project owner) whose RAD project will receive the choice-mobility vouchers. A PDF copy of the signed document must be submitted with the Application in order to qualify for the choice-mobility ranking factor. These attachments will include the name of the authorized representative identified in the application. Additionally, the Board Approval Form and the Financing Letter of Interest/Intent will include both a Statement of Sources and Uses and a Financing Pro-Forma, generated from the information submitted on the Application Form. Note that the Application Form, along with all the attachments, must be submitted electronically as part of the submission package. The full list of attachments needed will be automatically generated at the end of the Application Form once it has been completed.


THE VALIDATION WORKSHEET

	This worksheet shows the detailed calculations for potential PBRA and PBV rents. It also shows the historical FASS-PH data for the referenced project.

Sheet 2: PHA App Form

Rental Assistance Demonstration (RAD)

U.S. Department of HUD, Form HUD-5260

Public Housing Program Application

Office of Public Housing, Office of Multifamily Housing

OMB Approval Number 2577-xxxx (Issue date x/xx) (Expires x/xx)

There are several explanation boxes that extend the full width of this form. Increase or decrease the height of the box as needed (click to the left on the horizontal line below the row number, then drag the line up or down as needed).

Section 1: PIC Development Number and Name

Enter the PIC Development Number and Name.

AL086000001

FULTON/BROOK/HICKORY/RED HOLLOW

Development Number

Name of Development

Although some public housing projects do not have names in PIC, you should expect that your lender (if your are obtaining financing), and Multifamily Housing (if you are converting to PBRA), will refer to the project by name rather than by the PIC number. ?

Jefferson County Housing Authority

101705270

Public Housing Agency (PHA) Name

Data Universal Numbering System (DUNS) #

Lewis McDonald

2058490123

lmcdonald@jcha.com

Executive Director

Telephone Number

Section 2: Background Information on the PHA and the Project

Enter the requested contact information and complete the below questions regarding the project.

PHA Contact Name

Enter the name of the PHA staff person that HUD should contact with any questions about the application. ?

Title

Telephone Number

Type of Conversion:

PBRA (Project Based Rental Assistance)

While the final decision for PBV/PBRA is not required until 60 days after the issuance of a CHAP, HUD encourages you to make a careful selection now because a change later could slow down your progress. ?

Is this Project an existing Mixed Finance Project?

This is the formulaic result from FASS data. If this is N/A# or incorrect, please update in the following row. ?

The formulaic result from FASS data

Is this Project an existing Mixed Finance Project?

HUD will make awards to not more than 1,200 mixed-finance units. Further, eligibility for projects developed with HOPE VI grants is limited to those with a Date of Full Availability prior to October 1, 2002. ?

Corrected PHA entry (if applicable)

Are you requesting the Choice-Mobility Exemption for this project?

Review the below table of project unit counts, by bedroom size, per the PIC data extract as of 06/01/12

PIC Bedroom Distribution

Total Units

Average Bedroom per Unit

0-BR

1-BR

2-BR

3-BR

4-BR

5-BR

6-BR

104

205

2.38

Is the above PIC information correct?

If the PIC information is incorrect, you must correct it in PIC prior to submitting the application, or you must generate a PIC ticket if the change cannot be made by the PHA, and you must also enter the correct information below. ?

Actual Bedroom Distribution (PIC corrected)

Total Units

Average Bedroom per Unit

0-BR

1-BR

2-BR

3-BR

4-BR

5-BR

6-BR

104

205

2.38

Enter the date corrected or PIC ticket created (MM/DD/YYYY)

Proposed Post-RAD-Conversion Unit Distribution. Below, show the mix of units that you have proposed to convert, as well as other dwelling units at the project

Total Units

0-BR

1-BR

2-BR

3-BR

4-BR

5-BR

6-BR

Units Converting

104

194

Market Rate

Other Affordable

Total

104

194

For units converting under RAD, enter the current utility allowances and estimated reasonable rent determinations for each unit type.

The information requested on utility allowances and reasonable rents is important in that it can affect the associated rent caps under PBRA or PBV. You can see a detailed calculation of the rent caps on the validation tab. ?

0-BR

1-BR

2-BR

3-BR

4-BR

5-BR

6-BR

Utility Allowances

Reasonable Rents

Fatal Error: Reasonable Rents are not entered for all Unit Types

Section 3: De Minimis Reduction

The table below compares the current total public housing units, the number proposed for conversion, the number proposed to be reduced, and the applicable de minimis threshold. Indicate the number of reductions by category in the rows that follow, along with an explanation in the accompanying text box.

Current Public Housing Units

Total Units Proposed for Conversion

Units Proposed to be Reduced

de minimis threshold

Units above the de minimis threshold

205

194

A beyond de minimis reduction in number of assisted units is proposed. Indicate how many above de minimis units apply to each reduction reason below. Do not count the units more than once. An explanation for each of these units is required.

Units have already received Section 18 Demolition-Disposition approval from HUD

Reconfiguring efficiency apartments

Facilitating social service delivery

Units vacant for more than 24 months

Partial conversion

If you are planning to convert a part of the project, enter the number of units in this box that will not be converted here. For example, if the current project has 150 units, of which 100 are contained in a high rise and the remaining 50 are scattered single family units, and the PHA plans only to convert the 50 scattered sites, enter 100 units here. ?

Fatal Error: No explanation of unit(s) over de minimis is provided.

Total

Fatal Error: The total must equal the number of units above de minimis.

Please provide an explanation of each unit above de minimis in re each affected category. Please limit response to 200 words.

Section 4: Existing Indebtedness, Capital Needs, and Replacement Reserves

Enter below information on the project's existing indebtedness, if applicable:

For purposes of this application, assume that all existing loans must be paid off at the RAD closing. If the project has non-ACC units, include also the debt on the non-ACC units. ?

Energy Performance Contract (EPC)

Per Unit

Capital Fund Financing Program (CFFP)

Per Unit

Other

Per Unit

Other

Per Unit

Other

Per Unit

Total

Per Unit

Enter the most recent estimate of capital needs for the project, broken down by Immediate, Short-term, and Long-term needs. If these break-downs are not available, provide reasonable estimates.

Capital Needs:

The PHA is not required, at the time of application, to have completed an updated, third-party Physical Needs Assessment (PNA). The PHA can estimate its capital needs and explain the basis for its estimates in the narrative box below. If the project includes market or other units, include the capital needs for those units as well in these estimates. If this conversion is in conjunction with new construction, input the total construction costs in "Year 1 Immediate Needs". ?

What are your capital needs?

Year 1 (Immediate)

Include all rehabilitation or constructions costs, site improvements, general requirements, contractor overhead, contractor profit, P&P Bond or LoC, Contingency, Permits & Impact Fees, and other costs. If short-term needs will be addressed in initial repairs, include them in "Year 1" rather than in "Years 2-5." ?

Per Unit

Years 2-5 (Short-term)

Per Unit

Years 6-20 (Long-term)

Per Unit

Please explain how you have arrived at these estimates.

Explanation

Replacement Reserve Funding

The application calculates a "formula amount" for both the initial deposit to replacement reserve (IDRR) and the annual deposit to replacement reserve (ADRR). For purposes of the application, you must enter an amount ("Your Proposal") that is not less than these formula amounts. The formula for the IDRR is as follows: the amount of short-term needs minus (5 x ADRR). (This formula is intended to insure that sufficient funds are available over the initial five years to cover identified needs.) The formula for the ADRR is as follows: total of needs from years 2-20, divided by 20. ?

Enter the Initial Deposit and Annual Deposit to replacement reserves below.

Formula Amount

Your Proposal

Initial Deposit to Repl. Reserve (IDRR)

Annual Deposit to Repl. Reserve (ADRR)

This is a user entry, however the application prepopulates this entry based on the "optimal" ADRR. The Formula Amount is based on using the Formula IDRR, and to the extent the applicant increases the amount of the IDRR then the ADRR can be decreased. ?

Section 5: Vacancy Loss and Bad Debt Loss, for Assisted Units

Enter vacancy and bad debt data for the proposed conversion.

3 Yr Historical Avg

Proposed

Vacancy Rate (%)

For purposes of the application, you must enter an amount of not less than 3%. You should also check with your lender to determine lender's requirements. ?

2.06%

3.00%

Skip; no explanation necessary

Bad Debt Rate (%)

If you enter a number that is less than the historical rate for the project, you must provide an explanation. ?

1.80%

2.00%

Skip; no explanation necessary

Section 6: Other Rent Potential, Vacancy Loss and Bad Debt Loss

In addition to units that will be included under the HAP contract, enter other rent potential, vacancy loss, and bad debt loss for the proposed conversion.

Type of Add'l Gross Potential Rent

Annual GPR

Vacancy Loss %

Bad Debt Loss %

Market rate apartments

Other affordable apartments

Office space

Retail space

Section 7: Other Income

Enter other income for the planned project.

When estimating other income, consider historical actuals, and consider how the RAD conversion may impact each item of other income. ?

Annual

Late / NSF charges

Explanation

Damage charges

Explanation

Laundry / Vending

Explanation

Other

Explanation

Other

Explanation

Other

Explanation

Section 8: Operating Expenses

Are you proposing the conversion in conjunction with new construction?

Yes

Enter only the proposed conversion Operating Expenses. Leave the first column as zero. No explanations are required at this time.

Latest Approved Operating Budget

Proposed

New Construction; Proposed entries are required for all applicable line items

Administrative

Explanation

Asset Management Fee

Explanation

Tenant Services

Explanation

Utility Expense

Explanation

Ordinary Maint and Ops

Explanation

Protective Services

Explanation

Real Estate Taxes

Explanation

Property Insurance

Explanation

Liability Insurance

Explanation

Other General Expenses

Explanation

Total Operating Expenses

3 Year Historical Expenses:

The validation tab shows the three most recent fiscal year operating data, per FASS-PH. If less than three years were available, HUD used only the year(s) reported. If you enter less than 85% of the historical average, you must provide an explanation. ?

New Construction: Historical Operating Expenses are N/A

2009 AFS

2010 AFS

2011 AFS Missing

PHA Corrected 3 Year Historical Expenses:

New Construction: Corrected Operating Expenses N/A

2009 AFS

2010 AFS

2011 AFS

3 Year Average

New Construction : Section Not Applicable. No explanation is required.

Explanation

Section 9: Net Operating Income

Presented below is a summary calculation of the proposed project's Net Operating Income. Before proceeding, review and make any necessary changes in the applicable section of the application.

Apartment Gross Potential Rent:

RAD Units

$1,308,936

194

Units

$6,747

per unit annual

Market Rate Units

Units

per unit annual

Other Affordable Units

Units

per unit annual

Office / Retail GPR

Vacancy and Bad Debt Loss

($65,447)

5.0%

weighted average

Other Income

Effective Gross Income

$1,243,489

Total Operating Expenses

PUPA

Annual Reserve Deposit

PUPA

Net Operating Income

$1,243,489

Section 10: First Mortgage Loan Sizing

Are you proposing to take out a first mortgage loan for this project?

Yes

Enter the below information regarding the anticipated first mortgage loan.

Do you anticipate using FHA Insurance?

Interest Rate % per Year

For purposes of the application, you must enter an amount, when combined with the mortgage insurance premium, is not less than 3.5%. Your actual rate at closing may differ from the amount included here. ?

Fatal Error: Interest + MIP must be at least 3.50%

Mortgage Insurance Premium %

For FHA financing, enter the annual MIP provided by your lender. For non FHA financing, enter the annual % for any guaranty fees or other credit enhancement. Currently, the FHA MIP is 0.45%. Enter as follows: .0045. ?

Amortization Term

The Notice limits the amortization term to 40 years. Check with your lender; some lenders may not offer 40 year terms. Additionally, in the case of FHA financing, the loan term is limited to a maximum of 75% of the remaining economic life of the buildings. ?

Maturity Term

Balloon loans are allowed as long as the balloon payment does not occur before the end of the HAP contract. For purposes of this application, the user may not enter an amount less than 18. ?

Less than reasonable amount of years

Debt Service Coverage Ratio

DSC is the ratio of NOI to total debt service (P+I+MIP) and is sometimes also called the DSC Ratio (DSCR). For purposes of the application, in order to be prudent, HUD limits the DSC to 1.20 or above. HUD points out that many RAD projects will pursue financing that includes a "loan to value" (LTV) constraint, and that in current market conditions, an LTV constraint is likely to be the limiting factor in sizing the loan (which may lead to a relatively high DSC). ?

Fatal Error: Must be at least 1.20

Maximum Supportable Mortgage Loan

Proposed Mortgage Loan Amount

Enter the amount here that you are proposing to take out in a first mortgage, which could be less than the calculated maximum supportable loan amount in the line above. ?

Maximum Supportable Mortgage Loan

Calculated Annual Debt Service

Section 11: Total Uses of Funds (Total Development Cost)

Enter uses of funds for the proposed conversion.

Acquisition Costs

Building and Land Acquisition

In many cases, the covered project will not have any acquisition costs. If you will have acquisition costs, make sure that you have identified sources of financing, and that the acquisition costs are acceptable to your lender(s). ?

Payoff Existing Loans

Other Costs

Enter other acquisition costs, if applicable. ?

Construction Costs

This amount is drawn from your input for immediate capital needs in Section 4. If short-term needs will be addressed in initial repairs, inlcude them in "Year 1" rather than "Years 2-5." ?

Relocation Costs

Include the costs associated with any relocation, if applicable. ?

Professional Fees

Architecture & Engineering

Includes A/E fees to design project, prepare specifications, carry out inspections during construction, etc. ?

Physical Conditions Assessment

Includes cost of PCA for the project. ?

Borrower's Legal Counsel

Legal fees may be incurred in submitting the application (and necessary certifications) and submitting the Financing Plan, and will be incurred in closing the transaction. Legal fees in establishing the single-asset entity to hold the project post-conversion (a lender will likely require this) would normally be considered "Organizational Costs" (see below). ?

Lender's Legal Counsel

Many lenders require the borrower to pay fees for the lender's attorney. ?

Feasibility Studies

Includes cost of feasibility studies related to development of the project. ?

Environmental Reports

Includes cost of environmental reports related to development of the project. ?

Appraisal / Market Study

Includes cost of appraisal or market study as may be required by lender. ?

Accounting

includes cost of accounting services during development of the project, for example for a cost certification audit. ?

Survey

Includes cost of surveys related to development of the project. Lenders typically require an as-built survey after construction completion. ?

Other Costs

Enter other professional fees, if applicable. ?

Loan Fees and Costs

FHA MIP

Includes cost of the initial (up front) Mortgage Insurance Premium on an FHA-insured mortgage loan. Ask the lender for an estimate. ?

FHA Application Fee

Includes standard FHA application fee, also sometimes called an examination fee. ?

FHA Inspection Fee

Includes standard FHA inspection fee. ?

Financing Fee

Includes fee charged by lender related to financing of the project. Also see "Lender's Legal Counsel" above. Note that some lenders break the financing fee into components, such as an origination fee, a placement fee, and a processing fee. ?

Organizational Costs

Includes costs associated with establishing the legal entity that will own the project after conversion. ?

Title Insurance/Exam Fee

Title insurance premium. Check with your lenders regarding the amount of title insurance that will be required (typically, coverage will be required at least equal to the original principal balances of all loans). ?

Recordation Fee

Includes fee charged for recordation of any legal documents that must be placed in the local land records. This will include the RAD Use Agreement and all mortgages or deeds of trust. ?

Closing Escrow Agent Fee

Includes payment for the closing escrow agent. ?

Prepayment Penalty/Premium

Includes penalty or premium charged for prepayment of existing loan. ?

Payables

If the project has accounts payable that will not be paid as of the closing date, you will need to make arrangements to pay those payables at or prior to the closing. ?

Construction Interest

Includes the interest paid on the construction loan during the development period. When estimating construction interest, make a month by month estimate of sources and uses to determine the amount that will need to be drawn on the construction loan each month, and remember to account for the period after construction completion and prior to closing of the permanent loan. If you are utilizing a construction loan, be sure that your sources and uses of funds properly account for rental revenue and operating expenses during the construction and lease-up period (either by showing net rental income as a source of funds, by showing net expenses as a use of funds, or by showing income as a source and expenses as a use). ?

Construction Loan Fees

Includes any fees paid to obtain the construction loan. This could include an origination fee (points) and costs to cover the construction lender's attorney fees. ?

Cost of Bond Issuance

Includes the cost of issuing bonds (4% tax credits are available only with tax-exempt bonds, and taxable bond financing may be an efficient approach for certain larger projects). Talk to bond counsel to obtain an estimate of those costs. ?

Other Costs

Include other loan fees and costs, as applicable. ?

Reserves

Initial Deposit to Replacement Reserve

The amount of the IDRR varies based on the lender's minimum reserve balance requirements, the stream of annual long term capital needs from the PCNA, and the annual reserve deposit level. Some projects will require a large IDRR, and others may require a small IDRR or no IDRR. ?

Initial Operating Deficit Escrow

If your permanent loan will be funded at the initial closing, this line item should contain an allowance for any temporary loss of NOI during the rehab and stabilization period. Temporary loss of NOI could occur because of needing to hold units off line for rehab, and/or because operating expenses may be unusually high during rehab. ?

Operating Reserve

Some lenders may require an operating reserve to guard against potential negative cash flow over the loan term. ?

Tax and Insurance Escrow

Lenders typically require that tax and insurance expenses be escrowed. Check with your lender regarding initial escrow funding. ?

Other Costs

Include other reserves, as applicable. Some lenders may require additional reserves (for example, a Debt Service Reserve). ?

Developer Fees

For non-LIHTC transactions, the RAD Developer Fee may be up to 10 percent of the total development budget (all hard costs and reasonable soft costs), less developer fee and reserves and less any acquisition costs in non arms-length acquisitions, e.g., transfers of property title to related or wholly-owned entities for the purpose of meeting single asset entity ownership requirements. For LIHTC transactions, RAD permits a developer fee up to the lower of (a) 15% of total development cost and (b) the amount allowed by the state LIHTC allocating agency. ?

Total Development Cost

aka Total Uses of Funds

Section 12: Total Sources of Funds

Enter sources of funds for the proposed conversion.

New First Mortgage Loan

Public Housing Operating Reserves

Public Housing Capital Funds

Replacement Housing Factor

Low Income Housing Tax Credit Equity - 4%

Low Income Housing Tax Credit Equity - 9%

Other/Local

Total Sources of Funds

Total sources of funds must be equal to or greater than Total uses of funds. ?

Sources and uses are in balance

LIHTCs are not proposed; skip to Section 14

Section 13: Projects Utilizing Low Income Housing Tax Credits ('LIHTCs')

You are not proposing to use LIHTCs. Skip this section.

RAD allows PHA applicants to propose use of 9% LIHTCs without requiring that the PHA already hold a LIHTC Reservation letter. In such cases, the PHA must provide information on the QAP application timeline and demonstrate recent success in obtaining 9% LIHTCs. If a CHAP is issued, then based on this information, HUD will establish a property-specific milestone date, by which the PHA must have received a LIHTC Reservation letter. In addition, applicants proposing to utilize 9% credits must include a letter from the credit issuing authority- see the RAD Notice for detail. If the PHA is unable to secure such a letter from the credit-issuing agency, it must document its efforts to do so and must submit a self-scored QAP application. ?

Do you have a LIHTC reservation?

Briefly discuss the application submission and approval timing that is provided under the current QAP. Please provide sufficient detail that HUD can understand when you will submit an application, when you will be notified regarding selection, and when a LIHTC Reservation letter would be issued to you.

Discussion of QAP timing

RAD requires that you demonstrate recent success, internally or through development team partners, in obtaining 9% LIHTCs. Below, briefly discuss your capacity and experience in obtaining 9% LIHTCs from the relevant State allocating agency.

Demonstration of recent success obtaining 9% LIHTCs

Do you have a letter from the credit-issuing authority as described in Section 1.9(B) of the RAD Notice?

Provide evidence that the applicant diligently attempted to secure such a letter

Efforts to secure letter from credit-issuing authority

RAD requires that you attach a self-scored QAP application. Below, briefly discuss why you believe that a QAP application for the subject project, at the indicated score, is likely to receive a 9% LIHTC award.

Likelihood of obtaining 9% LIHTCs

Section 14: Ranking Factors

Do you want to designate this project as your PHA’s priority project?

Small PHAs may claim all projects as their "priority project". ?

Are you applying for a ranking factor for Choice Mobility?

(a)

Are you receiving choice-mobility vouchers?

(b)

Are you providing choice-mobility vouchers?

Are you requesting the Ranking Factor for Green Building and Energy Efficiency?

Describe the certification you will pursue, if applicable

Section 15: Additional Narratives

Provide written responses in the grey highlighted rows below. Please limit each responses to 200 words.

Briefly describe the land, location / neighborhood, and physical plant for the project.

Description

Discuss any known environmental or building product risks such as lead based paint, asbestos, PCBs, flood zone status, aluminum wiring, and fuel storage tanks (whether underground or above ground), along with associated remediation measures.

Explanation

Discuss any needed accessibility modifications.

Discuss any needed accessibility modifications, including any rehabilitation mandated by 24 C.F.R. Section 8.23. ?

Explanation

Discuss any known market competitiveness issues, such as small unit sizes or limited on-site parking, and how the conversion plans to address these issues.

Explanation

Discuss any proposed relocation plans for the project.

Explanation

Discuss the capacity of the development team to undertake the proposed conversion.

In the Financing Plan, the PHA or proposed ownership entity must demonstrate previous successful experience (within the last several years) with properties requiring similar types and levels of development, rehabilitation, ownership, and operational capabilities. Capacity and experience can be demonstrated with existing PHA staff and/or by adding relevant expertise to the development team. HUD's decision regarding capacity and experience will be made at the time the Financing Plan is reviewed. ?

Explanation

Section 16: Required Attachments

The Following Must Be Attached as Part of Your Electronic Application:

Yes

Board Approval Form

Evidence of PHA to Administer PBV Contracts

Mixed-finance Affidavit

Yes

Financing Letter of Interest/Intent for New First Mortgage Loan

Financing Letter of Interest/Intent for 4% LIHTCs

Financing Letter of Interest/Intent for 9% LIHTCs

Choice-Mobility Letter Agreement

9% LIHTC Reservation Letter

Letter from credit-issuing authority

Self-Scored QAP Application for 9% LIHTCs

QAP Timeline

Yes

Resident Comments

The 3 attachments indicated 'Yes' above must be included in your electronic application package. Incomplete application packages will be rejected, and if you re-submit, your place on the waiting list will be based on the date of re-submission.

No changes were made to the PIC data

This application will be rejected if submitted; there are 5 fatal errors.

Sheet 3: Board Approval Form

If required, this worksheet should be printed, signed and attached as a PDF to the application email.

Identify the person who will sign the PHA Certification:

Lewis McDonald

Executive Director

Name

Title

Date Signed

Attachment 1A: Board Approval Form

This application will be rejected if submitted; there are 5 fatal errors.

Jefferson County Housing Authority RAD Application for FULTON/BROOK/HICKORY/RED HOLLOW

AMP No:

AL086000001

Units

205

Type of Conversion

PBRA (Project Based Rental Assistance)

Proposed Units for Conversion and De Minimis

Summary

Total Units Proposed for Conversion

Units Proposed to be Reduced

de minimis threshold

194

Explanation for de minimis reduction

Unit Count

Pro Forma Sources and Uses

Sources of Funds

Amount

Per Unit

New First Mortgage Loan

Public Housing Operating Reserves

Public Housing Capital Funds

Replacement Housing Factor

Low Income Housing Tax Credit Equity - 4%

Other

Total Sources of Funds

Uses of Funds

Amount

Per Unit

Acquisition Costs

Construction Costs

Relocation Costs

Professional Fees

Loan Fees and Costs

Reserves

Developer Fees

Total Uses of Funds

Stabilized Cash Flow Pro Forma

Total

PUPA

Gross Potential Rents for RAD Units

$1,308,936

$6,747

Gross Potential Rents for Other Apartment Units

Gross Potential Rents for Commercial

N/A

Vacancy Loss and Bad Debt Loss

($65,447)

-$337

Other Income

Effective Gross Income

$1,243,489

$6,410

Total Operating Expenses

Annual Deposit to Replacement Reserve

Net Operating Income

$1,243,489

First Mortgage Debt Service

Operating Cash Flow

$1,243,489

PHA's Explanation of Any Relocation of Tenants (Estimated Relocation Cost is $0)

N/A

PHA's Explanation of Capacity and Experience to Carry Out the RAD Conversion

N/A

PHA's Explanation of the Proposed Total Operating Cost being less then 85% of the 3 Year Historical Operating Expenses

3 Year Historical Average Comparison

2009

2010

2011

Average

Proposed

$1,216,159

$1,152,883

#N/A

$1,184,521

N/A

PHA's Explanation of the Capital Needs and Replacement Reserves Estimates

N/A

Discussion of QAP timing

N/A

Demonstration of recent success obtaining 9% LIHTCs

N/A

Likelihood of obtaining 9% LIHTCs

N/A

I hereby certify to the following: (1) that I have the requisite authority to execute this application on behalf of the owner; (2) that HUD can rely upon this certification in evaluating the Application, (3) that I acknowledge that I have read and understand PIH Notice 2012-32 (the "Notice"), which describes the Rental Assistance Demonstration (RAD) (the "Program"), and agree to comply with all requirements of the Program or Notice; (4) that all materials submitted in association with the application are accurate, complete and not misleading; (5) that the application meets all applicable eligibility requirements for the Program set forth in the Notice; (6) that the owner approves the creation of a single-asset entity of the affected project if required by the lender to facilitate financing; (7) that, if selected for award, the owner will comply with the fair housing and civil rights requirements at 24 CFR 5.105(a) (general requirements) and will affirmatively further fair housing; (8) that there are no debarments, suspensions, or Limited Denials of Participation in Federal programs lodged against the applicant, PHA Executive Director, Board members, or affiliates; (9) that this Board Approval Form has been approved by the Board of Commissioners on the date noted below; and (10) that, if selected for an award, the PHA will comply with all provisions of HUD’s Commitment to Enter into a HAP (CHAP), which shall indicate the HUD-approved terms and conditions for conversion of assistance, or will indicate to HUD within 15 days that it is refusing the terms of the CHAP and withdrawing from RAD participation.

Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties (18 USC Sections 1001, 1010, 1012; 31 USC Sections 3729, 3802)

PHA Certification: By Lewis McDonald (Executive Director)

December 30, 1899

Signature:

Date:

Sheet 4: Financing Letter of Interest

If required, this worksheet should be printed, signed and attached as a PDF to the application email.
Identify the lender firm / equity investor that will sign the Financing Letter of Interest/Intent
ABC Mortgage Corporation

Identify the person who will sign on behalf of the lender / investor:
Gustavo Martinez		Vice President
Name		Title		Date Signed


Attachment 1B: Financing Letter of Interest/Intent

Jefferson County Housing Authority RAD Application for FULTON/BROOK/HICKORY/RED HOLLOW

AMP No:	AL086000001
Units	205

Type of Conversion
PBRA (Project Based Rental Assistance)

Pro Forma Sources and Uses
Sources of Funds	Amount	Per Unit
New First Mortgage Loan	$0	$0
Public Housing Operating Reserves	$0	$0
Public Housing Capital Funds	$0	$0
Replacement Housing Factor	$0	$0
Low Income Housing Tax Credit Equity - 4%	$0	$0
Other	$0	$0
Other	$0	$0
Other	$0	$0
Total Sources of Funds	$0	$0

Uses of Funds	Amount	Per Unit
Acquisition Costs	$0	$0
Construction Costs	$0	$0
Relocation Costs	$0	$0
Professional Fees	$0	$0
Loan Fees and Costs	$0	$0
Reserves	$0	$0
Developer Fees	$0	$0
Total Uses of Funds	$0	$0

Stabilized Cash Flow Pro Forma
	Total	PUPA
Gross Potential Rents for RAD Units	$1,308,936	$6,747
Gross Potential Rents for Other Apartment Units	$0	$0
Gross Potential Rents for Commercial	$0	N/A
Vacancy Loss and Bad Debt Loss	($65,447)	-$337
Other Income	$0	$0

Effective Gross Income	$1,243,489	$6,410

Total Operating Expenses	$0	$0
Annual Deposit to Replacement Reserve	$0	$0

Net Operating Income	$1,243,489	$0

First Mortgage Debt Service	$0	$0

Operating Cash Flow	$1,243,489	$0


PHA's Explanation of the Proposed Total Operating Cost being less then 85% of the 3 Year Historical Operating Expenses
3 Year Historical Average Comparison	2009	2010	2011	Average	Proposed
3 Year Historical Average Comparison	$1,216,159	$1,152,883	#N/A	$1,184,521	$0
N/A




PHA's Explanation of the Capital Needs and Replacement Reserves Estimates
N/A








Discussion of QAP timing
N/A








Demonstration of recent success obtaining 9% LIHTCs
N/A








Likelihood of obtaining 9% LIHTCs
N/A








Statement of Lender / Equity Provider:
The project appears feasible for ABC Mortgage Corporation to fund. Our general repayment terms and any conditions are stated above and/or in the comment block below. ABC Mortgage Corporation understands and acknowledges the RAD program requirements and policies and agrees to cooperate with the applicable RAD processes, as appropriate. This letter of interest/intent is not a firm commitment. Final approval will be contingent on the results of ABC Mortgage Corporation due diligence process and approvals.

State any exceptions or additional conditions

ABC Mortgage Corporation: By Gustavo Martinez (Vice President)

				December 30, 1899
Signature:				Date:

Sheet 5: Mixed Finance Affidavit

If required, this worksheet should be printed, signed and attached as a PDF to the application email

Identify the person who will sign on behalf of the PHA:

Lewis McDonald

Executive Director

Name

Title

Date Signed

Identify the legal entity that owns the mixed finance project:

Name

Title

Date Signed

Attachment 1C –Mixed-Finance Affidavit

Of Jefferson County Housing Authority

And

Regarding Jefferson County Housing Authority RAD Application for FULTON/BROOK/HICKORY/RED HOLLOW

Lewis McDonald certifies that he or she is the Executive Director of Jefferson County Housing Authority and that he or she has been authorized by Jefferson County Housing Authority to execute this Mixed Finance Affidavit.

certifies that he or she is the of and that he or she has been authorized by to execute this Mixed Finance Affidavit.

Jefferson County Housing Authority and , through their duly authorized representatives, agree that if the application for FULTON/BROOK/HICKORY/RED HOLLOW (AL086000001), is awarded entry into the Rental Assistance Demonstration, they will, if requested to do so by HUD:

(a) Convert the subject project’s current subsidy to long-term Section 8 rental assistance in accordance with the requirements of the Rental Assistance Demonstration ("RAD") including, without limitation, the requirements of Notice PIH-2012-32 (the "Notice").

(b) Agree to Section 8 contract rent levels in accordance with RAD and the Notice.

(d) Enter into one or more agreements to carry out the foregoing commitments. Such agreements shall include, without limitation, a Housing Assistance Payments (HAP) contract that:

(a) In the case of a RAD conversion to project based rental assistance, shall be between the project owner and the contract administrator designated by HUD; and

(b) In the case of a RAD conversion to project based voucher assistance, shall be between the project owner and a public housing authority designated by HUD.

Jefferson County Housing Authority: By Lewis McDonald (Executive Director)

December 30, 1899

Signature:

Date:

: By ()

December 30, 1899

Signature:

Date:

Sheet 6: Choice Mobility Let Agreement

If required, this worksheet should be printed, signed and attached as a PDF to the application email

Identify the PHA that is contributing choice-mobility vouchers:

Identify the person who will sign on behalf of the PHA that is contributing vouchers:

Name

Title

Date Signed

Identify the PHA that is receiving choice-mobility vouchers:

Identify the person who will sign on behalf of the PHA that is receiving vouchers:

Name

Title

Date Signed

Attachment 1D – Choice-Mobility Letter Agreement

Between (contributing vouchers)

And (receiving vouchers)

Regarding Jefferson County Housing Authority RAD Application for FULTON/BROOK/HICKORY/RED HOLLOW

Capitalized terms herein shall have the meaning given to them in Notice PIH-2012-32 (the "Notice") and in the Rental Assistance Demonstration ("RAD").

certifies that he or she is the of and that he or she has been authorized by to enter into this Choice-Mobility Letter Agreement regarding the RAD application submitted by FULTON/BROOK/HICKORY/RED HOLLOW (AL086000001).

, through its duly authorized representative, commits that if the subject project converts assistance under RAD, will provide Section 8 Housing Choice Vouchers to the assisted residents of the subject project to achieve the choice-mobility objective described in Section 1.7(5)(C) of the Notice. agrees that this commitment is binding on without regard to whether any RAD application submitted by is selected for participation in RAD.

acknowledges that if the subject project's application for RAD conversion is incomplete, fails to meet threshold criteria, or is submitted outside of the Initial Application Period, will not earn any Ranking Factor. However, if such application is submitted during the Initial Application Period, is complete, and meets threshold criteria, then will earn a Ranking Factor regardless of whether such application is selected, or, once selected, is withdrawn or terminated.

: By ()

December 30, 1899

Signature:

Date:

: By ()

December 30, 1899

Signature:

Date:

Sheet 7: Validation

Formula RAD Rents (PBRA and PBV)

Funding Baseline (pre-RAD)	Annual	Per Unit	PUPM	205	ACC units in PIC (after any corrections)

Operating Fund	$977,137	$4,767	$397.21
Capital Fund	$257,496	$1,256	$104.67
Tenant Payments	$160,121	$781	$65.09

Total	$1,394,754	$6,804	$566.97

Funding Utilized if PBRA Selected	$1,308,936	$6,747	$562.26	93.8%	of baseline funding is utilized
Funding Utilized if PBV Selected	$0	$0	$0.00	0.0%	of baseline funding is utilized


Baseline Funding By Unit Type	0-BR	1-BR	2-BR	3-BR	4-BR	5-BR	6-BR	Monthly	Annual
Units	0	20	104	65	16	0	0	205	205
FMR	$605	$673	$750	$952	$980	$1,127	$1,274
Ratio FMR : 2BR FMR	0.807	0.897	1.000	1.269	1.307	1.503	1.699
# Units of 2BR FMR Equivalents	0.00	17.95	104.00	82.51	20.91	0.00	0.00	225.36
BR Adjusted Rents	$416	$463	$516	$655	$674	$775	$877
Proposed Units	0	20	104	54	16	0	0
Preliminary Actual Rents	$0	$463	$516	$655	$674	$0	$0	$109,078	$1,308,936

Formula Rents if Project Based Rental Assistance is Proposed:

	0-BR	1-BR	2-BR	3-BR	4-BR	5-BR	6-BR	Monthly	Annual
Units	0	20	104	54	16	0	0	194	194
Preliminary Contract Rents	$0	$463	$516	$655	$674	$0	$0	$109,078	$1,308,936
FMR	$605	$673	$750	$952	$980	$1,127	$1,274	$158,548	$1,902,576
Utility Allowance	$0	$0	$0	$0	$0	$0	$0	$0	$0
Rent Reasonable	$0	$0	$0	$0	$0	$0	$0	$0	$0
120% FMR, minus Utility Allowance	$726	$808	$900	$1,142	$1,176	$1,352	$1,529	$190,244	$2,282,928
150% FMR, minus Utility Allowance	$908	$1,010	$1,125	$1,428	$1,470	$1,691	$1,911	$237,822	$2,853,864
PBRA-Contract Rent *		$463	$516	$655	$674			$109,078	$1,308,936
* Lower of preliminary contract rent and [120% of FMR minus utility allowance]. Reasonable rent does not affect this calculation.


Formula Rents if Project Based Vouchers are Proposed:

	0-BR	1-BR	2-BR	3-BR	4-BR	5-BR	6-BR	Monthly	Annual
Units	0	20	104	54	16	0	0	194	194
Preliminary Contract Rents	$0	$463	$516	$655	$674	$0	$0	$109,078	$1,308,936
Rent Reasonable	$0	$0	$0	$0	$0	$0	$0	$0	$0
FMR	$605	$673	$750	$952	$980	$1,127	$1,274	$158,548	$1,902,576
Utility Allowance	$0	$0	$0	$0	$0	$0	$0	$0	$0
110% FMR, minues Utility Allowance	$666	$740	$825	$1,047	$1,078	$1,240	$1,401	$174,403	$2,092,834
PBV-Contract Rents **		$0	$0	$0	$0			$0	$0
** Lowest of preliminary contract rent, reasonable rent, and [110% of FMR minus utility allowance]

Latest Board Approved Operating Expenses

	2009 AFS	2010 AFS	#N/A	3 yr Average

Provided?	Yes	Yes	MISSING

Vacancy Loss %	1.62%	2.51%	#N/A	2.06%	1 year of data missing; average is 2 years

Total Operating Expenses:	$1,186,674	$1,135,141	#N/A
Administrative	$458,532	$436,237	#N/A	$447,385	1 year of data missing; average is 2 years
Asset Management Fee	$24,720	$24,720	#N/A	$24,720	1 year of data missing; average is 2 years
Tenant Services	$22,755	$16,082	#N/A	$19,419	1 year of data missing; average is 2 years
Utility Expense	$203,977	$215,545	#N/A	$209,761	1 year of data missing; average is 2 years
Ordinary Maint and Ops	$447,104	$412,542	#N/A	$429,823	1 year of data missing; average is 2 years
Protective Services	$0	$0	#N/A	$0	1 year of data missing; average is 2 years
Real Estate Taxes	$0	$0	#N/A	$0	1 year of data missing; average is 2 years
Property Insurance	$27,947	$28,376	#N/A	$28,162	1 year of data missing; average is 2 years
Liability Insurance	$1,639	$1,639	#N/A	$1,639	1 year of data missing; average is 2 years
Other General Expenses	$0	$0	#N/A	$0	1 year of data missing; average is 2 years

Bad Debt Loss ($)	$29,485	$17,742	#N/A	$23,614	1 year of data missing; average is 2 years

	2 Years Prior	1 Year Prior	Most Recent	3 yr Average
Total FASS Operating Expenses:	$1,216,159	$1,152,883	#N/A	$1,184,521	1 year of data missing; average is 2 years

	3 yr Average	Corrected

Vacancy Loss %	2.06%	2.06%

Total Operating Expenses:	$1,160,908	$1,160,908
Administrative	$447,385	$447,385
Asset Management Fee	$24,720	$24,720
Tenant Services	$19,419	$19,419
Utility Expense	$209,761	$209,761
Ordinary Maint and Ops	$429,823	$429,823
Protective Services	$0	$0
Real Estate Taxes	$0	$0
Property Insurance	$28,162	$28,162
Liability Insurance	$1,639	$1,639
Other General Expenses	$0	$0

Bad Debt Loss ($)	$23,614	$23,614
Other General exp (net of bad debt)	-$23,614	-$23,614



2010 Capital Needs Study Definition for 'Elderly' and 'Family' Projects

Number of 2+ Bedroom Units	185	PIC data (before any corrections)
Average # Bedrooms	2.38	PIC data (before any corrections)

Family Definition 1	Yes	At least 1.5 bedrooms per unit
Family Definition 2	No	Between 1.2 and 1.5 and at least 100 2+ bedroom units
Elderly	No	All others

Occupancy Type for Preference	Family	Use this designation for purposes of the preference for high-rehab projects

Sheet 8: Sample PIC Data

Data Elements Downloaded from PIC Appear in Rows 2-3
AMP No	0-BR	1-BR	2-BR	3-BR	4-BR	5-BR	6-BR	Units	Average Bedroom Size	FMR (bedroom adjusted)	Utility Allowance (brm adj)	Operating Fund per unit	Operating Fund PUM	Capital fund per unit	Capital Fund PUM	Tenant Payments Per unit	Tenant payments PUM	Current Funding to FMR %	Primary PHA Signatory	Position	Phone	Email	Mixed Finance	Housing Authority	DUNS number	Lease up
AL086000001	0	20	104	65	16	0	0	205	2.38	$824	$117	$4,767	$397	$1,256	$105	$781	$65	69%	Lewis McDonald	Executive Director	2058490123	lmcdonald@jcha.com	No	Jefferson County Housing Authority	101705270
	0	20	208	195	64	0	0	487
	0	1	2	3	4	5	6
Uses Can Enter Corrections in the Grey Highlighted Cells Below in Column C (be sure to make the same changes in PIC itself as well)

PIC Data Element	PIC Value	Corrected Value		Comment

AMP No	AL086000001	AL086000001		Cannot be modified
0-BR	0	0		See RAD App Form Section 2 to modify
1-BR	20	20		See RAD App Form Section 2 to modify
2-BR	104	104		See RAD App Form Section 2 to modify
3-BR	65	65		See RAD App Form Section 2 to modify
4-BR	16	16		See RAD App Form Section 2 to modify
5-BR	0	0		See RAD App Form Section 2 to modify
6-BR	0	0		See RAD App Form Section 2 to modify
Units	205	205		See RAD App Form Section 2 to modify
Average Bedroom Size	2.38	2.38		See RAD App Form Section 2 to modify
FMR (bedroom adjusted)	$824	$824	0	Used on Board Approval form only
Utility Allowance (brm adj)	$117	$117	0	Used on Board Approval form only
Operating Fund per unit	$4,767	$4,767	0	Used on Validation sheet
Operating Fund PUM	$397	$397	0	Not currently used
Capital fund per unit	$1,256	$1,256	0	Used on Validation sheet
Capital Fund PUM	$105	$105	0	Not currently used
Tenant Payments Per unit	$781	$781	0	Used on Validation sheet
Tenant payments PUM	$65	$65	0	Not currently used
Current Funding to FMR %	69%	69%	0	Not currently used
Primary PHA Signatory	Lewis McDonald	Lewis McDonald	0	Used on RAD App Form sheet
Position	Executive Director	Executive Director	0	Used on RAD App Form sheet
Phone	2058490123	2058490123	0	Used on RAD App Form sheet
Email	lmcdonald@jcha.com	lmcdonald@jcha.com	0	Used on RAD App Form sheet
Mixed Finance	No	No	0	Used on RAD App Form sheet
Housing Authority	Jefferson County Housing Authority	Jefferson County Housing Authority	0	Used on RAD App Form sheet
DUNS number	101705270	101705270	0	Used on RAD App Form sheet

		Total Corrections	0

File Type	application/vnd.openxmlformats-officedocument.spreadsheetml.sheet
File Modified	0000-00-00
File Created	0000-00-00