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HomeMy WebLinkAboutHH-AH-2020-004-HopeSource-Paulann-unsignedHH-AH-2020-004-HopeSource-Paulann HOMELESS HOUSING PROGRAM GRANT AGREEMENT This Homeless Housing Program Grant Agreement ("Agreement") is entered into between KITTITAS COLTNTY, a political subdivision of the State of Washington (the "County"), and HOPESOURCE, a Washington non-profit corporation ("Recipient") for the Kittitas County Homeless Reunification and Reintegration Project. ARTICLE I - PURPOSE AND TERM Section 1.1 Purpose: The purpose of this Agreement is to distribute homeless housing surcharge funds awarded pursuant to the applicable provisions of RCW 36.22.179-179I. Section 1.2 Term: This Agreement shall take effect August 7't, 2020 and terminate on October 3l't,2020. ARTICLE II - GRANT AMOUNT, USE AND BUDGET Section 2.1 Grant Amount: The Recipient is awarded a total of up to three hundred thousand, dollars ($3000,000) (the "Grant Award") to be administered as follows as Grant Award HH-AH-2020 - 004- HopeSource-Paulann ($100,000.00 to be from Affordable Housing funds and $200,000.00 to be from Homelessness funds). Section 2.2 Use of Grant. The Recipient shall use the Grant Award solely for the purposes and in the manner described in Exhibit A - Attached Application, which is incorporated by this reference. Adjustments to Proposed Project Timelines may be requested of the Committee in writing and the Committee may recommend adjustments to the Board of Kittitas County Commissioners. These recommendations may be granted or denied at the discretion o f the Board of Kittitas County Commissioners. Section 2.3 Budget. The Grant Award shall be expended by the Recipient as set forth in Exhibit A. Adjustments to Proposed Project Budgets may be requested of the Committee in writing and the Committee may recommend adjustments to the Board of Kittitas County Commissioners. These recommendations may be granted or denied at the discretion of the Board of Kittitas County Commissioners. These recommendations may be granted or denied at the discretion of the Board of County Commissioners. ARTICLE III - DISBURSEMENTS Section 3.1 Disbursement of Grant Award Funds. Not more frequently than once a month, the Recipient may request disbursement from the Grant Award. Each disbursement request must be made by the Recipient submitting to the County at the address specified in Section 5.2 a properly completed Reimbursement Request form. The request must identifu the work Homeless Housing Grant Agreement Revised 72/2019, as modified 812020.Page 1 ofll HH-AH-2020-004-Hope Source-Paulann performed and be based on billings, supported by detailed invoices and other appropriate detailed documentation of costs actually incurred, unless further documentation is requested by the Committee, the Kittitas County Auditor's Office, or the BOCC. The Recipient will be subject to periodic on-site audits to ensure that satisfactory supporting documentation of all allowable costs and expenses are being kept. Within 30 days of its receipt of the request and satisfactory supporting documentation, and subject to the other terms and conditions contained in this Agreement, the County shall pay the amount of the invoice to the Recipient at the address specified in Section 5.2. To the extent that this project requires advance disbursement in order to facilitate the purchase and operation of the property described in the attachments, such advance disbursement is to be done in the manner provided in Section 3.2 below. Section 3.2 Advance Disbursement. The Recipient may request disbursement from the Grant Award in advance of actual expenditure only for the following: purchase and any necessary remediation of the dwelling units described in the attached application for funds; Section 3.3 Disbursement Limitations. In no event will the County ever be required to disburse funds in excess of the Grant Award. In addition, unless expressly provided otherwise in this Agreement: (a) no disbursements will be made in advance of costs or expenses being incurred; and (b) no costs or expenses incurred by the Recipient prior to the effective date of this Agreement, or after its termination, are eligible for reimbursement. Section 3.4 Disbursement Without Prejudise. Any disbursement made by the County to the Recipient shall be without prejudice to the County's rights later to challenge the propriety of the Recipient's claimed costs or expenses. Section 3.5 Withholding Disbursements. If the Recipient fails to perform any obligation under this Agreement and the failure has not been cured within 10 days following oral or written notice from the County or the Committee, the County may, without penalty and in its sole discretion and upon written notice to the Recipient, withhold all monies otherwise due the Recipient until such failure to perform is cured. This right to withhold disbursements is in addition to all other rights and remedies the County may have available to it under this Agreement or under law. ARTICLE IV-REPORTS AND RECORDKEEPING Section 4.1 Annual Progress Reports. Once a year and upon request from time to time, the Recipient shall provide a report on the progress made to date on the Project, using such form and meeting such requirements as determined by the Committee (see also III REPORTING). Such progress reports shall be provided by the Recipient to the Committee and to the Kittitas County Auditor's Office at its address specified in Section 5.2. The Recipient shall also provide an Homeless Housing Grant Agreement Revised 12/2019, as modified 8/2020. a a Page2ofll HH-AH-2020-004-HopeSource-Paulann annual report as specified in the grant guidelines Section 4.2 Record Retention: Review. The Recipient shall maintain records sufficient to fully document its compliance with all contractual, grant and legal requirements, for not less than six years from the last date of work performed or reimbursement pursuant to this agreement, whichever is later. Upon reasonable advance notice, the Recipient shall provide the County its authorized agents, and State or Federal agencies having audit authority related to this Agreement with full access to all of the Recipient's records relating to this Agreement or the Project. The Recipient agrees to shall defend, indemnifu and hold harmless the County and its appointed and elective offrcers, agents and employees, from and against all loss or expense for any audit exceptions or other irregularities in its performance or recordkeeping, including but not limited to impermissible or unauthorized use of Grant Award funds. This section shall survive termination of this Agreement. ARTICLE V - CONTRACT ADMINISTRATION AND NOTICES Section 5.1 Personnel. The Recipient will secure at its own expense all labor and materials required to perform any work in connection with the Project. The Recipient shall be responsible for all applicable payroll, labor and industries premiums, and taxes. All employees and subcontractors of the Recipient shall be covered by Industrial Insurance in full compliance with title 5l of the Revised Code of Washington ("RCW"). Section 5.2 Contract Representatives. The parties' designated representatives shall be responsible for the administration of this Agreement and for receiving notices given in connection with this Agreement. The following are designated as the representatives of the parties. FOR THE COUNTY: Judy Pless, Budget & Finance Manager County Auditor's Office 205 West 5th - Suite 105 Ellensburg WA 98926 509-962-7502 j udy.pless@co.kittitas.wa.us FOR THE RECIPIENT: Craig Kelly 700 E. Mountain View Ave. Suite 501 Ellensburg, WA 98926 509-925-1448 ckelly@hopesource.us A party may change its designated representative or address by providing written notice to the other party. Homeless Housing Grant Agreement Revised 1212019, as modified 812020.Page3ofll HH-AH-2020 -004 -Hope S ource-Paulann Section 5.3 Notices. Any notice required or permitted to be made under this Agreement may be given personally, by facsimile, or by first-class, registered or certified mail. A notice personally delivered to the other party is deemed given upon proper delivery. A notice sent by first-class, registered or certified mail is deemed given three days after mailing, if properly addressed and having proper postage. Notices delivered by facsimile shall be deemed to have been given on the date of transmission if received during the recipient's business day or, if not, on the recipient's next business day. E-mail addresses, if listed in this Agreement, are provided only for convenience and not for notice purposes. ARTICLE VI - INSURANCE Section 6.1 Professional Legal Liability. The Recipient will maintain professional legal liability or professional errors and omissions coverage appropriate to the Recipient's profession. The coverage will have a limit of not less than One Million Dollars ($1 million) per occurrence. The coverage will apply to liability for a professional error, act or omission arising out of the Recipient's services under the Agreement. The coverage will not exclude bodily injury or property damage. The coverage will not exclude hazards related to the work rendered as part of the Agreement or within the scope of the Recipient's services under the Agreement, including testing, monitoring, measuring operations or laboratory analysis where such services are rendered under the Agreement. Section 6.2 Workers' Compensation and Employer Liability. The Recipient will maintain workers' compensation insurance as required by Title 51 RCW, and will provide evidence of coverage to the BOCC. If the Contract is for over $50,000, then the Recipient will also maintain employer liability coverage with a limit of not less than One Million Dollars ($1 million). The Recipient will request that the Washington State Department of Labor and Industries, Workers Compensation Representative, send written verification to the County that the Recipient is currently paying workers' compensation. Section 6.3 Commercial General Liability. The Recipient will maintain commercial general liability coverage for bodily injury, personal injury and property damage, subject to a limit of not less than One Million Dollars ($1 million) per occurrence. The general aggregate limit will apply separately to the Contract and be no less than Two Million Dollars ($2 million). The Recipient will provide commercial general liability coverage that does not exclude any activity to be performed in fulfillment of the Agreement. Specialized forms specific to the industry of the Recipient will be deemed equivalent, provided coverage is no more restrictive than would be provided under a standard commercial general liability policy, including contractual liability coverage. Section6.4 MiscellaneouslnsuranceProvisions. A. The Recipient will place insurance with insurers licensed to do business in the State of Washington and having A.M. Best Company ratings of no less than A-VII, with the exception that excess and umbrella coverage used to meet the requirements for Homeless Housing Grant Agreement Revised 12/2019, as modified 812020 Page4ofll HH-AH-2020-004-HopeSource-Paulann limits of liability or gaps in coverage need not be placed with insurers or re-insurers licensed in the State of Washington. B. The insurance limits established by this section are not intended to indicate the Recipient's exposure, nor are they limitations on the Recipient's indemnification duties. This section shall survive termination of this Agreement. C. The policy shall be endorsed and the certificate shall reflect that the County, its officers, officials, employees, agents and representatives, are an additional insured with respect to activities under the contract, and the policy will contain no special limitations on the scope of protection afforded to the County, its officers, officials, employees, agents and representatives as an additional insured. D. The certificate will, at a minimum, list limits of liability and coverage. The Recipient will furnish the County with properly executed certificates of insurance or a signed policy endorsement, including the additional-insured provision, which will clearly evidence all insurance required in this Section, before work under this Agreement shall commence, but no later than Ten (10) days after the effective date of this Agreement. Acceptable forms of evidence are the endorsement pages of the policy showing the County as an additional insured. E. The Recipient will maintain all required policies in force from the time services commence until services are completed. The Recipient will provide a current or updated copy of all insurance policies specified in the Agreement upon the request of the County. Certificates, policies and endorsements scheduled to expire before completion of services will be renewed before expiration. The certificate will provide that the underlying insurance contract may not be canceled, or allowed to expire, except on 30-days'prior written notice to the County. Any certificate or endorsement limiting or negating the insurer's obligation to notify the County of cancellation or changes must be amended so as not to negate the intent of this provision. Written notice of cancellation or change must be delivered to the County as set forth in Sections 5.2 and 5.3. F. If the Recipient's liability coverage is written as a claims-made policy, then the Recipient must evidence the purchase of an extended-reporting period or "tail" coverage for a three-year period after completion of the services. G. The Recipient's liability insurance provisions shall be primary and shall be non- contributing with any other insurance maintained by Kittitas County with respect to any insurance or self-insurance programs covering the County, its elected and appointed offi cers, offi cials, employees, agents and representatives. H. Any failure to comply with reporting provisions of the policies will not affect coverage provided to the County, its officers, officials, employees, agents or Homeless Housing Grant Agreement Revised 12/2019, as modified 812020 Page5ofll HH-AH-2020-004-HopeSource-Paulann representatives. I. The Recipient's insurance will apply separately to each insured against whom claim is made or suit is brought, subject to the limits of the insurer's liability. The Recipient will include all subcontractors as insurers under its policies or will furnish separate certificates and endorsements for each subcontractor. All coverage for subcontractors will be subject to all of the requirements stated in these provisions. ARTICLE VII - INDEMNIFICATION Section 7.1 Indemnification. To the fullest extent permitted by law, the Recipient shall indemnify, defend and hold harmless the County, the Committee and the BOCC, and all County officials, officers, employees, agents and each of them, from and against all claims in any way resulting from or arising out of the performance of this Agreement, whether such claims arise from the actual or alleged acts, errors or omissions of the Recipient, its subcontractors, third parties, the County, the Committee or the BOCC, or anyone directly or indirectly employed or supervised by any of them or anyone for whose acts, errors or omissions any of them may be liable. "Claim" means any loss, claim, suit, action, liability, damage or expense of any kind or nature whatsoever, including but not limited to attorneys' fees and costs, attributable to personal or bodily injury, sickness, disease or death, or to injury to or destruction of property, including the loss of use resulting therefrom. Section 7.2 Recipient's Duty to Indemnify. The Recipient's duty to indemnify, defend and hold harmless includes but is not limited to claims by the Recipients or any subcontractor's officers, employees or agents. The Recipient's duty, however, does not extend to claims arising from the sole negligence or willful misconduct of the County, the Committee or the BOCC, or of the officials, officers, employees, agents or representatives of the County, the Committee or the BOCC. Section 7.3 Waiver of RCW Title 5l Immunity. Solely for purposes of this indemnification provision, the Recipient expressly waives its immunity under Title 51 RCW and acknowledges that this waiver was mutually negotiated by the parties. The Recipient's duty to indemnify, defend and hold harmless shall survive termination of this Agreement. ARTICLE VIII-NONDISCRIMINATION AND LEGAL COMPLIANCE Section 8.1 Nondiscrimination. The Recipient shall not discriminate against any employee or applicant for employment, or program participant or program participant applicant, on account of race, color, sex, religion, national origin, creed, marital status, age, Vietnam era or disabled veterans status, the presence of any sensory, mental or physical handicap, or any other basis prohibited by law with respect to any program participation, employment upgrading, demotion, transfer, recruitment or selection for training, including apprenticeships and volunteers. This Homeless Housing Grant Agreement Revised 12/2019, as modified 812020 Page6of1l HH-AH-2020-004-HopeSource-Paulann prohibition does not apply, however, to a religious corporation, association, educational institution or society with respect to the employment of individuals of a particular religion to perform work connected with the carrying on by such corporation, association, educational institution or society of its activities. Section 8.2 Compliance with Laws. The Recipient and its officials, officers, employees, agents and subcontractors shall comply with all applicable federal, state and local laws, regulations, rules and policies, including all of those standards applicable to zoning and housing regulation related to fitness and safety for habitation. The County, the Committee and the BOCC shall have no obligation to ensure such compliance. ARTICLE IX - TERMINATION Section 9.1 Termination for Loss of Funding. The County shall have the right to terminate this Agreement at any time after providing written notice consistent with sections 5.2 and 5.3 of this agreement if the fimds relied upon for the Grant Award are terminated, suspended or otherwise lost or impaired in whole or in part. Section 9.2 Termination for Convenience. Either party may terminate this Agreement for convenience upon giving the other party at least 30 days' advance written notice. In that event, the Recipient will be entitled to payment only for those expenses and costs reasonably and actually incurred prior to the effective date of the termination. Section 9.3 Termination for Default. If either party defaults in its performance under this Agreement, the non-defaulting party may give the defaulting party written notice that it has 30 days in which to cure the default. If the default is not cured within 30 days of notice, the non-defaulting party may terminate the contract. In the event of such a termination, the non-defaulting party shall have all rights and remedies available to it under law. Section 9.4 Termination due to Extraordinary Circumstances. The performance of this Agreement is subject to termination without liability by either party upon the occurrence, or upon the prediction by the National Oceanic and Atmospheric Administration, any other agency of the United States Government, or any agency of the Government of the State of Washington of the occuffence of any circumstance beyond the control of either party- including, without limitation, acts of God,war, acts of terrorism within a fifty (50) mile radius of Kittitas County, government regulations, disaster, pandemic/epidemic illness, strikes or threat of strikes (except that neither party may terminate this Agreement for situations involving that party's own employees), civil disorder, or curtailment of transportation facilities-to the extent that such circumstance makes it illegal , impossible or economically impracticable for the parties to complete the duties and mutual obligations agreed upon and imposed upon them herein. The ability to terminate this Agreement without liability pursuant to this paragraph is conditioned upon delivery of written notice from one party to the other within 10 days of such occunence or upon delivery of written notice from one party to the Homeless Housing Grant Agreement Revised 1212019, as modified 812020.PageTofll HH-AH-2020-004-Hope Source-Paulann other within 24 hours of the receipt of notice of the prediction of any of the above occulTences To the extent feasible within the constraints imposed by any event of the type described above, the parties agree that if the triggering event is of apparently or likely transitory effect, the parties may negotiate such amendments to the agreement that are mutually satisfactory and not otherwise contrary to law, including but not limited to a change in the dates for completion of any portion or the entirety of this agreement. ARTICLE X - MISCELLANEOUS Section lO.L Permissible-Use Warrantv. The Recipient warrants that its planned and actual uses ofthe Grant Award constitute permissible uses for homeless housing surcharge funds as established by RCW 36.22.179. This section shall survive termination of this Agreement. Section 10.2 Organizational-Status Wanantv. The Recipient warrants that it is duly organized, existing and in good standing under the laws of the State of Washington. Section 10.3 Relationship of Parties. This Agreement, and the parties' and the Committee's and the County's activities under it, shall not be construed as creating any kind of partnership or joint venture, nor shall it be construed as creating any kind of independent contractor, agency or employment relationship between the parties, the Committee, or the County. Section 10.4 No Third-Party Rights. This Agreement is entered into by the parties solely for their own benefit and it creates or grants no rights of any kind in any other party. Section 10.5 Assignment. The Recipient shall not assign any of its rights or delegate any of its duties under this Agreement without the prior express written consent of the County, which may be granted or refused in the County's sole discretion. Section 10.6 Choice of Law: Venue; Jurisdiction. This Agreement shall be govemed by the laws of the State of Washington. In the event of a legal proceeding, venue shall be only in a court of competent jurisdiction in Kittitas County. Each party hereby consents to the personal jurisdiction of the courts of the State of Washington, County of Kittitas. This section shall survive the termination ofthis Agreement. Section 10.7 Waiver. No term or condition of this Agreement shall be deemed waived unless such waiver is expressly agreed to in writing by the party granting the waiver. In addition, waiver of any breach of this Agreement shall not be deemed a waiver of any prior or subsequent breach. Section 10.8 Amendment. This Agreement can be amended only by a writing executed by Homeless Housing Grant Agreement Revised 1212019, as modified 8/2020.PageSofll HH-AH-2020-0O4-Hope Source-Paulann the parties Section 10.9 Entire Agreement. The parties acknowledge that this Agreement is the complete expression of their agreement regarding the subject matter of this Agreement. Any oral or written representations or understandings not incorporated into this Agreement are specifically excluded. Section 10.10 Headines. The headings in this Agreement are for convenience only and shall not be deemed to affect the meaning of its provisions. Section 10.11 Severability. If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, such invalidity shall not affect the validity of the remaining provisions that can be given effect without the invalid provision, provided that the underlying intent of the parties can still be given effect. Section 10.12 Signature Authority. Each person signing this Agreement on behalf of a party warrants that he or she has full authority to sign this Agreement on that party's behalf. Section 10.13 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall be deemed one agreement. Each counterpart may be executed and delivered by facsimile to the other party. Section 10.14 Exhibits. The following exhibits are incorporated into this Agreement by reference: (a) Exhibit A - Attached Application. BOARD OF' COUNTY COMMISSIONERS KITTITAS COUNTY, WASHINGTON Chair Vice-Chair Commissioner ATTEST:APPROVED AS TO FORM Douglas R. Mitchell, Deputy Prosecuting Attorney E Clerk of the Board- Julie Kjorsvik n Deputy Clerk of the Board- Mandy Buchholz Homeless Housing Grant Agreement Revised 1212019, as modified 8/2020.Page9ofll HH-AH-2020-004-Hope Source-Paulann RECIPIENT: By: (Print Name) Title: DATE: Homeless Housing Grant Agreement Revised 72/2019, as modified 812020 Page l0 of 1 1 HH-AH-2020-004-HopeSource-Paulann STATEMENT OF WORK AND BUDGET- SEE ATTACHED APPLICATION REGARDING THE PURCHASE OF A 20 UNIT APARTMENT BUILDING AND CONVERSION TO HOUSING FOR THOSE WHO ARE HOMELESS OR OTHERWISE IN NEED OF AFFORDABLE RENTAL HOUSING. REPORTING For the reports required by Section 4.1, the agency will use the standardized reporting form developed by the Homeless and Affordable Housing Committee. The Annual Report is due on or before the 15th day of January 2021. and each year until January 15,2025. These reports shall include data on occupancy, and the demographic data that describes the population served by the apartment purchase that is the subject of this agreement. Reports shall reflect the data compiled and provided in compliance with section 3.1 Please send an electronic copy ofeach report to: Kittitas County Homeless and Affordable Housing Committee Taylor Crouch, Kittitas County Board of Commissioners office Kittitas County Auditor's Office, Judy Pless *Reporting requirements may be amended by the Committee so that appropriate data can be gathered. Homeless Housing Grant Agreement Revised 1212019, as modified 812020.Page 11 ofll Homelessness and Affordable Housing Funds 2O2O Notice of Funds Available Application Form **Fields outlined in red are required** PROJECT INFORMATION Project Title: Paulann Project Site Name(s): paulann Project Site Address(s): 691 E 6TH AVE ELLENSBURG Which fund source is this proposal for? (select one, see Section 1 of the NOFA for details) Affordable Housing Funds Homeless and Housing Assistance Funds Total Project costs (including other funding and resources): $1 ,500,000.00 Totaf Amount Requested (from Kittitds County Homeless Housing and Assistance or Afforddbte Housing funds): $300,000.00 Time Frame for Utilization of Requested Funds: AUgUSt 2020-OCtObef 2020 City, Town or Unincorporated Area to be served: Ellensburg APPLICANT INFORMATION Name of Applicant Organization: flgpgSOUfCe Mailing Address: 700 E Mountain View Ave Suite 501 City, State, Zip: EllenSbUrg, WA 98926 Phone: S0g-925-1448 Fax: 509-925-1204 Email Address: skgrindle@hopeSource.us Website: WWW. hOpeSOUfce.US Federal Tax ldentification Number: 91 -08 14544 Type of Organization: Government Non-Profit For-Profit Local housing authority Tribe PROJECT CONTACTS Name of Organization Director: SUSan Gfindle Phone: 509-925-1448 Email: skgrindle Project Contact Name: Cfaig Kelly ritle: Director of Affordable Housing Phone: 509-925-1448 Email Address: ckelly@hopesource.us Fiscal Contact Name: Afiam MehtSentU Phone: 509-925-1448 Email Address: amehtSentu@hOpeSOurce. US 2 PROPOSAL DETAILS L. Applicant Profile and Qualifications: Tell us about your organization including the purpose of your work, your goals, any history, and experience working in homeless and/or affordable housing services, experience managing public funds, and anything else that describes the organization's qualifications. (250 words max.) The purpose of HopeSource is to protect those who cannot protect themselves and to encourage those who can. Our goals are to end homelessness in our community and to support people in building self-sufficient lives. HopeSource has a 50-year history as a private, non-profit community action agency operating in a rural environment, making a difference through programs that stabilize households in crisis including housing, nutrition, energy assistance, home weatherization, transportation, rental assistance, and youth recreation assistance. HopeSource serves as the Continuum of Care lead for Kittitas County, operates the Coordinated Entry system for Kittitas County, conducts the annual Point-ln-Time count, completes the Community Needs Assessment, operates the only homeless shelter in the county, built 26 units of new affordable housing in Cle Elum, kept 167 units of affordable housing units from going market rate. HopeSource case managers are trained in trauma-informed care, motivational interviewing, WSCAP family development, home health worker, mental health first aid, and family stability planning. HopeSource oversees administration of 45 federal, state and local contracts including; Consolidated Homeless Grant, Housing and Essential Needs, Supportive Services for Veteran Families, McKinney-Vento, HUD, Rural Development, Housing Trust Fund, Housing Finance Commission, Youth Homelessness Demonstration Program, and private funding from the ROE Foundation, Mercer Creek Church, the Shoemaker Foundation, and the Suncadia Associate Fund. 4 2. Proiect Description Summary: Provide a brief summary the project being proposed and a general description of how it will address homelessness or affordable housing in Kittitas County. Be sure and indicate whether the proposal is intended to provide direct client services or construction, maintenance, or improvement of housing facilities. (250 words max.) The proposal is to purchase a 2O-unit market-rate apartment building in Ellensburg and convert it to a mixture of low-income units and shelter units providing housing opportunities for seniors, veterans, disabled and homeless youth. The units are all one-bedroom units, which is in keeping with the identification of one-bedroom apartments as the most needed unit type by the City of Ellensburg Comprehensive Plan. With this purchase, we will preserve these needed units affordable in an area that is likely to be re-developed leading to higher rents. 5 3. County Priorities: lndicate which of the following priorities are being addressed by the proposed project. (Select all that apply and give a brief 100 word description for each selected.) lZ qri.t ty identify and engage people experiencing homelessness. Outreach and identification are accomplished through field visits to all areas and businesses where homeless individuals or families are likely to spend time. We track all outreach efforts weekly to assure anyone experiencing homelessness is identified and given continued opportunities to receive assistance. We work closely with the City Homeless Taskforce to come alongside individuals identified as homeless with high vulnerability and currently unengaged needing services. lntakes include a VI-SPIDAT designed for each demographic we serve to determine each client's level of vulnerability and to develop a stability plan best suited to the needs of each client. Prioritize housing for people with the greatest needs HopeSource's prioritization policy is Category l "Literally Homeless," and Category4 "Those Fleeing or Attempting to Flee Domestic Violence." We either deploy the Housing First method of stabilizing homeless households or, where appropriate, employ diversion and reunification to help the client identify alternative, safe housing placement and connect them to their existing support systems and natural resources. iZ Op.ttte an effective and efficient homeless crisis response system that , swiftly moves people into stable permanent housing. The Kittitas County Continuum of Care Coordinated Entry System for homeless individuals was created and implemented to better maximize resources available in the community and to re-house homeless individuals or prevent eviction quickly. Using a web-based entry system that can be accessed from any computer or phone, the system is positioned to deliver information to the entire housing provider network immediately in one step, avoiding the need to go "door to door" for assistance. Agencies then communicate among themselves to determine the best choice for the applicant and to prioritize services. The client is then contacted for a full intake with the agency best suited to meet their needs. 6 { Project the fully implemented local plans on the number of households J-;4 housed and the number of households left unsheltered, assuming existing LLJ resources and state policies. This project will add ten units to the County homeless stock, as well as ten additional units of affordable low-income housing, a priority of Objective 4 in the recently updated homeless plan The plan also shows an increased need for housing that targets senior, disabled, and veteran households who are rapidly being priced out of the market. This project will add ten units of low-income housing targeting households earning at or below 50% AMl. Homeless households will be placed through Coordinated Entry, which will reduce pressure on the homeless response system in the county. [Z nUOr"ss racial disparities amongst people experiencing homelessness. HopeSource recognizes that race and economic status can significantly limit the opportunities of program participants and acknowledges the unequal impact of these factors. HopeSource works to prepare program participants to overcome systemic racism in housing, education, asset building, income, employment, and access to high-quality food. lt is the expectation that employees are sensitive to all diversity within the population of persons served by the organization and the employee workforce. Other information you think would be beneficial for the Committee to know. HopeSource priorities and the priorities of the Homeless and Affordable Housing committee strongly align with Governor lnslee's Reducing Poverty and lnequality 10-Year Plan. All of those projected to be served by this funding will have housing stability plans, including education and employment plans. HopeSource's Hope University provides in-person and virtual coaching in life skills such as basic budgeting, credit and debt, smart spending, stress management, and healthy living to ensure they can maintain their independence in the long term. The HopeSource Hope University suite works with people to strengthen or gain work skills and behavior that will secure and sustain employment. 4. Partnerships: List your key community partnerships for the proposed project and what their role will be. (250 words max.) Key service providers that HopeSource regularly collaborates with in meeting the needs of vulnerable populations in our community and in this property include: Central Washington Healthcare which provides mental health supportive housing for individuals coming out of therapeutic treatmenU WorkSource employment specialists; DSHS-SNAP and temporary financial benefits provide security as clients construct their safety net; the Social Security SOAR program that assists in moving from disability to ability; the Ministerial Association which offers spiritual counseling and assists with small essential needs; CentralTransit, HopeSource Dial-A-Ride, and The Apple Line which provide transportation services for the community to mitigate the expense of traveling in and outside the county; Aging and Long-Term Care and People for People which provide aging in place and support for seniors; Kittitas County Commissioners who provide funding for homeless and at-risk seniors over the age of 65; Central Washington Disability Resources and Elmview who provide training and disability support; FISH which offers food and social suppor! the Free Clinic Dental & Vision that provide access to medicaltreatment; Goodwill and the Methodist Clothing Bank which provide basic clothing and household needs; and the Kittitas County Health Network that encompasses all medical, mental health, and social determinants of health providers in the county. I 5. Gaps and Duplication in Services: Describe how your proposed project fills a gap in homeless and/or affordable housing services in Kittitas County. lnclude a description of how the project is or isn't a duplication of current services. (250 words max.) The Ellensburg Housing Needs Assessment shows a clear need for one-bedroom apartments to relieve the cost burden to seniors and people with disabilities on a fixed income: " As of 20!7, about 7O% of all households in Ellensburg have only i. or 2 members. Yet only 28% of housing units offered are studios or l--bedroom. The lack of smaller format housing can pose a barrier to many people living alone or with a partner who do not need or cannot afford a large home." Census data shows that in the next ten years, seniors in Kittitas County at or below the poverty line will increase by approximately L000 households. Without dedicated affordable senior housing units, many of these seniors may end up homeless. This project ensures that senior, disabled, veteran, and youth households who have limited assets are not living in unsuitable housing for lack of money. The relief of having affordable housing allows households to provide themselves with lifesaving prescription and medical care, food, and decent basic clothing. lntended residents can maintain pride in their independence and ability to care and provide for themselves without living in fear of being without food, without primary necessary medical care, and of being homeless with nowhere to turn. I 6. Sustainability: Describe your ability, experience, and resources to implement and sustain the project during the term of the project. (250 words max.) HopeSource has owned and operated over 300 affordable housing units throughout Central Washington, has developed 26 units, and is in the process of developing another 49 units. All projects have maintained their affordability over the years, are fully funded, and have sufficient operating reserves to maintain the structures and serve the populations as intended. HopeSource financial controls include adherence to Fiscal Policies supported by OMB Circular requirements and accounting practices. HopeSource is annually audited by an external account and has received L2 consecutive years of 'clean audits. HopeSource uses the Abila MIP fund accounting financial management system, which is a comprehensive, configurable solution that enables staff to make better financial decisions, execute financial management with greater precision, and better track, report, and manage finances across the entire organization. 10 7. Goals & Objectives: Use the Goals and Objectives Form below to fill in the following table with your project's goals, measures, strategies, and objectives. See the examples below for guidance and use as many forms as necessary. Exam le #1 Exam le #2: GOAL: lncrease number of people enrolled in health insurance by 25o/o by December 3L,2020. will are Dats Source Number of new enrollees in health insurance lnternal tracking sheet Strategy S1 (What will you do to achieve your goal?) Create promotional materials to distribute to local partners advertising health insurance enrollment assistance. Measurable Objectives Promote the service with at least 5 community portners each quorter through December 2020. Distribute at least L00 flyers oround the community by December 2020. a a Strategy *2 (What will you do to achieve your eoal?l Offer health insurance enrollment assistance at local community events. Measurable Objectives: Attend ot leost 2 community events per quorter in both Llpper Kittitos County and Lower Kittitas County through December 2020 a Strategy fi3 {What will you do to achieve your goal?} Offer health insurance enrollment assistance appointments in the office. Measurable Objectives: Schedule at leost 40 hours per month of open walk-in ossistqnce through December 2020. Ensure staff ovailability for ot leost 25 scheduled qppointments eqch month through December 2020. lncrease the number of trail systems available to the general public within the City of Ellensburg from 5GOA[: to 7 by December 2021. Data Soulee Number of trail systems open to the public and clearly labeled Trails report Strategy fll (What willyou do to achieve your goal?) Establish public-private partnerships for funding trail construction and maintenance, Measurable Objectives: Creqte tailored presentation about project by March 2020. Meet with ot least 2 potentiol partners eoch quqrter through June 2020. Estoblish ot least 2 primary public-privote partnerships for trails by December 2020. a a Strategy fr2 (What willyou do to achieve your goal?l ldentify sites for new trail systems. Measurable Objectives: Conduct site visits with partners of potential new sites by March 2021. ldentify pros and cons of potential new sites by June 2021 Solidify 2 new troil sites by December 2021. a a a Strategy f3 (What will you do to achieve your goal?)Build new trail systems Measurable 0bjectives: Create plons for construction of new trail systems by March 2021. Two new troil systems will be built by December 202L. a t 11 GOALS AND OBJECTIVES FORM Fill out white sections only. GOAL: lncrease the number of housing units available to homeless seniors, disabled, young adults, and veterans. Measures will know you are making progress toward your goal?)Data Source Strategies set out below are achieved within their targeted timelines lnternal tracking sheet Strategy fil: (What wlll you do to achieve your goal?) Add 10 units of affordable/homeless housing that has a preference for seniors, disabled, and veterans. Measurable Objectives: County funds released by 813112020 Strategy f2: (What will you do to achieve your goal?) Down payment and earnest money in escrow 9t112020 Measurable Objectives: Closing on the building is completed, and title is transferred by 101 1 12020. Strategy fi3: (What willyou do to achieve your goal?) Fully operational by 101112020 Measurable Objectives: First homeless households are placed *Use copies of the same form ,f yo, have more than 3 strategies for the same goal* 12 BUDGET NARRATIVE 1. Funding Utilization: Describe how the funds will be used to support the proposed project. For example, willthe funds be used for staff time, supplies, consultants, contractors, construction costs, direct customer services, etc.? (250 words max.) See attached spreadsheet Attachment A for full use of funds. HopeSource will use the funds as down payment assistance, funding the remaining due with proceeds from operations. 13 2. Other Support: Describe any monetary, in-kind, donations, grants, or other types of support that will be used for the project. lnclude both guaranteed support and support that may still be uncertain. (250 words max.) HopeSource will provide case management for tenants as in-kind support for the project. HopeSource staff will provide services that include trauma-informed case management; crisis counseling; planning and support for timely resolution of a housing crisis; development of a housing and employment stability plan; support in moving into permanent housing; reunification with family or friends to secure or stabilize housing; and connecting clients to mainstream and community-based services, financial counseling, energy assistance, food, clothing, legal, and employment and education services. 14 3. Sustainability: Describe how this project would or wouldn't be sustained if these Homelessness Prevention and Affordable Housing funds were not available either currently or in the future. (250 words max.) Without the Homeless Prevention and Affordable Housing funds, HopeSource would not be able to provide the down payment to secure the property and the community would lose an opportunity to create 20 low income including 10 homeless homeless units furthering our goal of creating 25 homeless units by 2024. The rental income from the occupants will support operations and mortgage payments. lt is HopeSource's intention to keep this project affordable for a minimum of 20 years renting only to households at or below 60% AMl. 15 4. Partial Funding: lf this project were to receive only partial funding from this source, how would the project be impacted? How would the proposal be adjusted for less than the requested amount of funds? (250 words max.) lf there is only partial funding available, the project will not be able to go forward. 16 ##########$$S'IVIOJ'IVNNNV$t$l$$t$t$t$t$t$t$tSJSOf, sAIIVUISINIHOV lVJOIIElot oqlJopccJxc ol$s0l c^uErlsrurupvAAIJIIUISINIUICV-NON'IVIOJI-oo'ooo's6s rs$$1Oqsofsss$$s$$lauaJulItraI0-$-ss$$aJublstssT I4uaEstsoJ)aqoslqoJscrrdastuollJ lrorro$$puD satJolosuoeD r rlqs n [/ u o nd u rsa1 / s I r DJa O,14Dno€ rarDno z )alrDnoI!I9ONg Jf,:IIOUd'IVNNNV, Jatono,* sDilo papDqs foJb Klua ur I!4 asDald*.+clpldurJ lobpngspunJ bulsnoH alqEploJJV puE ssaleuoHf1uno3 selqlrysactnog nqlg wotl lunouylsanbeutrJunoJ wo4lunouvlVJOJ00 000's5s I$00 000's6z'T$00 000'00tstc8pnA rrotord letolscrrnos rrqt0 uo{ letoJlsonbou Aunol lelol0z0z'1 iequruo-----popurU ditrg @ll1roleo pug l)olordroleC uEtstrrlord:cteO p!g SurpunC:nteO uets SurpunlsrPol SurpunlJo raqunNDrnosaqoHrau?N tuerilddV Sample Pro Forma Single Family Rentals AboutffrTod DercrErtim: 7f** saryle pro focne rgm.drtmt wwtbmk ir ilHarl hr rne tsy devdopaBcf silgb-frnily rentet hfi,*UtrH0b b€*Uffinncad s*tr effirortkxr* d€b& rrd F.oderd g.OcHeq no{trm$r s$*ry qrdtcdims; tiB letter reqJF€ fisa snghx fiSt3h. The unrho* hchl(hs aryrebtmlslnats Fr t'ls &relopmanf hr{tgB.l, oterr8l!} hdgpf rxl 2(}reer cas& froupt{erAnu. ThB iornlhwlslpd br grrire b orplsihe tfnpefum:" l*mr to ldryt tt$; Elocs.mnt: Thk b.m b provftled orily a an exemprc- f ftie ir d*{ sra bms Bfiflld be rdded, &bhrt s.rnm.hdbcmhrmbfppotciar rdprpffires dthe u* tlSP progr.tn. $orycs of Oocunsnt Ttis pro brrn rs e$lndnun r ip0e*frlc6t tre.hd bf PII| Jar3of IGF ffimdonC. Mixe dlhe glb nwu &bd frsn prc turs rrlod bytls Cnyof thrrer, Dirclaftmor: T]*s&crrrtr{ bndal dtffi }fi.F ebcrm'rt r}d tG nc* bffin :enturotl fy Ffrr0 cqrrsel- n klrqfikt brffimdond nmosee dy" Al-hhetg.f,rgofl:n* *n E be runlbnd bry*omercbr Ote p*lilsb fip ryrxmc* ryld mr* trfrm b rLb sd bcC m. Tlir rrnr*ct ir t rt of d: l{F ko*hr. Affibad ldt ltslrcc ilt b. ft€d * rw,hld-rov*ffi U-g Ofrhrrt dltrbg rrd llt* Orntpc*i&lttcMS**ebcFtqr:r Sample Pro Forma and Guide Single-Family Rental Development 1., 5TJ 1' r rll..t Sample Pro Forma Single Family Rentals County/Gity AH New Build Project Name: Developer: Address: Paulann HopeSource 801 6th Ave Uses isition Costs: Construction: Contract n Bond Premium Construction ContinqencV 8o/o $ Total Construction:, Soft Costs Total Development Cost:$ 1,595,000 Demolition $ Acquisition land and buildinq $ 1,500,000 Total Acquisition $ 1,500,000 Building Permit, License & Fees or Rehab S $ Environmental: Site-Specific Review $ uisiton Closi and Fees 90.000 Title Search & Title lnsurance $ Survey $ Appraisal & Analysis of Rent Comparables 5,000 Builder's Risk lnsurance - Real Estate Taxes Carrying Costs - Utilities c Costs - Site nds Maintenance $ Furniture Fixtures & Equipment $ Prefunded Replacement Reserve Prefunded Operating and/or Rental Loss Reserves $ Seller Legal and Recording Costs $ Tenant Relocation $ Loan Fee Construction Loan interest lnsurance $ Soft Cost Continqencv 0o/o Developer Fee 0o/o Total Soft Costs:$95,000 Sample Pro Forma Single Family Rentals Operating Project Name: PaulannAddress: 801 6th Ave lncome: 60% AMt Ex 19 Average Per Unit $ 105 $ 538 $ 895 $ 211 $-$ tt $21$- $$ 1,780 1,053 158 B1 1,291 105 263 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 158 79 605 Rent:# Units Monthlv Rent Annual Rent Efficiency 0 $ 743 $ One Bedroom 19 $787 $179,436 Two Bedroom 0 $750 $ Grant income 0 $$ Total Units 19 Gross Renf $179,436 Less Vacancy 3.0o/o $(5,383) Bad Debt 2,0%$(3,589) Gross Effective I ncome :$170,464 Administrative Annual 2,000$ mt Fee co 6.0o/o 10.228$ Administrative 17,000$ Legal 4,000$ Accountinq 200$ Credit Checks 400$ Leasing Fees $ Other $ Total Administrative:I 33,828 Administrative Payroll $ Maintenance 20,000$ Fringe 15.0o/o 3,000$ PayrollTaxes 7.65To 1,530$ 530 a ntenance Total unit make Repairs 5,000$ Security $ Grounds (landscaping, snow removal 3,000$ Building supplies 1,500$ Service contracts (HVAC)$ Other Total Maintenance:11,500$ Operating: Fuel (heating & hot water)$ Electric $ Water/Sewer 5,000$263 Sample Pro Forma Single Family Rentals Trash removal $3,000 Janitorial $ Exterminatinq $ Telephone $ Other $ Total Operafing Costs;$8.000 Taxes & lnsurance: Real Estate Taxes $10,000 lnsurance $2,100 Other Taxes, Licenses, Fees $ Total Taxes:$12,100 Total Annual Operating Expenses:$89,958 158 421 526 111 637 4,735 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ NOI Before Reseryes & Debf Svc.'$80,506 Reseryes Su le Debt Service Calculation: 4,237 50 50 4,137 3,618 519 Per Unit Annual Replacement Reserve $50 $950 Operatinq Reserve $50 $950 Cashflow Before Debt Service $78,606 Debt Service (See Terms Below)$68,747.80 Cashflow After Debt Servrce $9.858.40 Required Debt Service Coverage (Ratio)1.05 Loan Amortization Period (in vears)30 lnterest Rate 4o/o Third Party Debt $ 1,200,000.00 (This figure ties to the Development BudgeVSources & Uses) $ 63,158 City/County AH new buildPaulann ApartmentsProject Name:lncome Adjuster:Paulann2.25%Project Address:Expense Adjuster:801 6th Ave-1.50o/olncome$ 208,259Year 10$ 203.676Year 9$ 199,194Year 8$ 194.811Year 7$ 190,524Year 6s 186"332Year 5$ 182.232Year 4Year 3$ 178.222$ 174,300Year 2Year 1$ 170.464lncame38,680$ 13.1499,1 46$ 13.835$ 102,856$ 28,046$ 12,955$ 38,10827.632$ 13,631101.337$ 9.01137.54t$ 12.764$ 13.430$ 27.224$ 8,878$ 99.841$ 36,99012.57513.232$ 26.8:$ 8,747.t 98,366$ 36.44326.426$ 12,389$ 13,036; 96.912$ 8,61835,904$ 12.206$ 12.843$ 26,035$ 8,491$ 95.479$ 3s,37312.0268,36612.653$ 25,650$ 94,06825.271$ 11,848$ 12,466; 92.677$ 34.850$ 8.24234.335s 11.673s 12.242$ 24,898$ 8,120$ 91.308$ 11.500$ 12.100$ 33.828$ 24,530$ 8,000$ E9,958Taxes & lnsuranceMaintenanceAdministrativePavrollOperatingTotal Expense:$ 105,403$ 102.339$ 99.353$ 96,445t3.6128538599280NOt$ 1.900t$ 1.900$68,748 I $68.748$68.748$ 1,900$ 1,900$66,748$68.748$ 1,900$68.748$ 1.900$ 1,900$68,748$ 1,900$68.748$68.748$ 1,s00$ 1.900$68.748Reserves$34,7s5$31,691$28,705$2s,797$22,964$20,205$17,516$14,897$12,344$9,858Cashflow After Debt Svc:lncomeExnsesYear 20$ 260.158Year 19$ 254,433Year 18$ 248.8UYear 17$ 243.358Year 16$ 238,003Year 15$ 232,766Year 14$ 227.644Year 13$ 222,635Year 12$ 217.736Year 11Gross$ 44.890$ 15.258$ 16,05710.614$ 32,549$ 119.36844.22',15.033; 32,068s 1s.820$ 10,457$ 117,605$ 43,573$ 14,81115,586$ 31.594$ 10,302$ 115.866$ 42.929$ 14.5921 0.1 50$ 15,356114.154$ 31.12742.29$ 30,667$ 14.376$ 15.129$ 10,000$ 112.467$ 14.164$ 14.905; 41.671$ 110,E05$ 30.214$ 9,852$ 41.054$ 13,95514,685$ 29.767$ 9.706s 109.167s 40.447$ 13.7499,563$ 14,468i 107.554$ 29.32739.849$ 13.96$ 14.254$ 28,894$ 9.422$ 105.96539,26013,346s 14.043$ 28.467$ 9,283$ 104,399AclministrativeMaintenanceryes & lnsurancePavrollOperatingTotal Expense:$ 140.790$ 136.828$ 132.968$ 129.204$ 125,536s 121.961$ 118.477$ 1 15.081s 111.771$ 108.546NOI (w/o Res & Debt Svc)$ 1.900$68.748$ 1,900$68.748$ 1,900$68,748$ 1,900$68.748$ 1,900$68.748$ 1,900$68.748$ '1,900$68.748$ 1.900$68,748$ 1,900t$ 1.900$68.748 I $68.748Replacement & Op ReservesDebt Service$70,142$66,180$62.320$58,556$54,888$51,313947.829$44,433$41,123$37,898Gashflow After Debt Svc Sample Pro Forma Single Family Rentals Guide to Completing Development and Operating Pro Formas And Cash Flow Projections A. DEVELOPMENT PRO FORMA This worksheet is used to calculate your total development budget. lt includes all uses of funds for hard and soft costs as well as sources of funds. From the Operating budget worksheet, it carries over the amount of a mortgage loan that the project can support, then subtracts the mortgage amount and developer equity by formula to determine the required NSP funding amount. Acquisition Costs ln this version separate lines are shown for land and building costs, although these could be combined into one line item if desired. Soft costs related to acquisition, such as the appraisal and closing costs, should be listed under soft costs. Construction Costs The amount should be estimated until there is a contract, then the actual contract amount should be entered. Besides the "hard" costs of materials and labor, the contract price will typically include such components as an allowance for the contractor's project-related expenses or "general requirements" such as building permits, fencing around the site, temporary storage for materials, the contractor's overhead/profit, and the cost of a performance bond or letter of credit provided by the contractor to insure that the project will be completed (if required). This amount should also include site improvements such as excavation forfoundations or utilities, grading of the site, walkways, on-site roads, landscaping, outdoor lighting or parking spaces. Estimates of construction costs for single-family rental rehab projects are usually completed by a rehabilitation specialist based on a work write-up. lf substantial rehab or structural repairs are involved, the estimate or a portion thereof might be created by an architect with input from a engineer. ln the case of single-family rental rehab projects funded by NSP, limited off-site infrastructure costs might be included that are crucial to making the home marketable. This could include work repairing contiguous and nearby sidewalks or alleys. lncluding a construction contingency amount outside the construction contract is typical and advisable. Usually, the amount of contingency funds is not shared with the contractor. The contingency is used to fund change orders. Typical contingency amounts for rental rehab projects are 1O%to t5%. Typically, the more carefully the project has been evaluated and specifications identified, the lower the contingency amount needed. Soft Costs . Architectural fees should be based on estimates from an architect. These fees may be based on a certain percentage of the construction contract amount, a fee per dwelling unit, a flat fee for services, or another basis. With rental rehab projects, the specifications and cost estimates are often completed by a rehab specialist, either a specialist on the developer's staff or a contracted specialist. Note that design and construction management costs could be S0 for budgeting purposes if the developer fee has been calculated to pay for all project planning and management costs. . The engineering fee should also include mechanical or structural engineering costs, if any, incurred as part of the design process. . Environmental review costs could include the cost of a third-party contractor completing reviews required todetermineclearance; thethird-partyreviewswouldneedtobeapprovedbythegranteeorother "responsible entity". . A survey prior to acquisition may or may not be required by NSP grantees for single-family programs. Prior to providing construction or permanent financing, it may be required by the mortgage lender. A survey can reveal easements that make some of the land unbuildable. . As-is appraisals are required in NSP forforeclosed properties, to determine if the selling price is at least 1% ^L^.'^ +L^ ---1.^+ .,-1,,^ l+ i^ ^ ^^aJ ^-^^ri^^ +^ ^^1. +L^ -6^-^i-^- ^- -^^+h^- ^^+:+., r^ --^.,ii^ ll^^*-^--Ll^ Sample Pro Forma Single Family Rentals aoovetnemarKetvalue. lrlsagooopracuceroasKrneappralseroranornerenurytoprovtoe comparaote rents" for the housing units in completed condition, based on a transmittal of the plans and specifications or inspection of the unit(s) after the redevelopment is complete. The "rent comparables" should be used to establish the rents in the operating pro forma. . Property/casualty insurance should be obtained by the developer for the interim period before builder's risk insurance comes into effect. lf the developer is also the general contractor, the developer should obtain builder's risk insurance as insurance against casualty and liability risks during construction. Otherwise, builder's risk insurance is typically obtained by the building contractor and will be included in the construction contract amount, above. ln addition, grantees typically require developers to obtain commercial general liability insurance, the cost of which is typically covered by the developer fee. . NSP funds or other funds can be used to pre-fund a replacement reserve so long as the amount is reasonable and as required by a lender or equity investor. . Operating reserve - Pre-funding this reserve can cover the cost of operating the property while lease up is occurring, or during periods when the property is not fully leased up. ln this example, the operating reserve was calculated conservatively as two month's rent revenues. To be funded by NSP, HUD requires that this amount be reasonable and as required by a lender or equity investor. . Tenant relocation- For occupied properties requiring relocation of tenants, the developer agreement should spell out whether the financial and management responsibilities of tenant relocation lie with the grantee or developer. . Rent-up marketing costs - This line item includes the estimated costs of rent-up, such as advertising. Developers should make sure that the staffing costs of rent-up are covered either in the development budget or in the operating budget for the first year, but not in both pro formas. . Soft cost contingency - This is a contingency amount that may be used if one or more soft costs are higher than anticipated. . Developer fee - This is the fee a developer charges to the project for their time and risk. Developer fees as a percent of total development costs generally fall between t0% and 15%. lf funded by NSP, HUD requires that the fee be reasonable and customary in the market for this type of development project. Developer fees should be calculated based on the estimated time, effort and risk required of the developer. ln general, higher developer fees are allowed if the developer is not being reimbursed by any funding source for construction financing costs and holding costs and/or has equity at risk in the project. Fees are typically lower if NSP or other sources are funding all holding costs and the developer has little or no equity in the project. ln general, fees should also be lower for "easy" projects -- such as acquiring and selling homes in good condition that require little or no rehabilitation. Sometimes fees are established as a specific dollar amount per dwelling unit; this may be appropriate in projects where the per-unit development costs are relatively low. For example, 15% of a 540,000 total development cost may not be sufficient incentive for a developer to participate. Finally, it is generally not a good practice to both pay a fee and also reimburse the developer for staffing and other internal costs; this raises the possiblity of "double dipping." B. OPERATING PRO FORMA The Operating Proforma worksheet is designed to summarize a rental project's bedroom distribution, income targets, operating income and expenses, net operating income (NOl) before debt service, estimated debt service (from the Operating page) and the NSP gap financing needed. This example shows only a single rental unit and should be adapted as needed by the individual project. . First enter the Project Name, Developer Name and Address of property. o Enter the number of dwelling units of each type. A proforma could be used for several scattered-site units in one project, but with single-family rentals, the pro forma will typically be for a single dwelling unit, though Sample Pro Forma Single Family Rentals it might be for a 2-4 unit property. . Enter the estimated monthly rental amounts. These should be based on "rent comparables" of similar units in the vicinity of the project, in conditions similar to the after-redeveloment condition of the rental unit(s) in the project. . No "other income" is included because single-family rentals do not have income from sources such as common laundries or renting a function room. . Next, enter your project's estimated annual expenses in the expense Iine items. These should be based on past experience of the developer or data obtained from similar types of rental projects. Maintenance costs of detached or semi-detatched single-family rentals are typically higher than for low-rise apartments. However; tenants in scattered-site rental units are typically responsible for grounds maintenance, per their leases. ' Net operating income (NOl) is calculated by subtracting total operating expenses from gross effective income. This indicates the amount of income available to pay debt service and provide for "debt service coverage." ' "Supportable debt" is then automatically calculated by a formula based on the NOI and the assumptions in the "supportable debt service calculation" grid. ln this example, the calculation assumes a debt service ratio of 1.2, which means that the NOI must be 1.2 times (or 20% higher) than the amount available for debt service. The debt service amount is also calculated automatically based on the supportable debt amount. B. 2O-YEAR CASH FLOW PROJECTION It is a standard requirement of lenders for borrowers to provide a multi-year cash flow projection for a period of years equal to the term of the loan. This projection spreadsheet allows users to enter assumptions about inflation in rents and operating costs which automatically calculate increased income and expense amounts for each year. This projection is used primarily to demonstrate that the debt service can be paid in each year.