[crrv OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA !Agenda Date: April 4, 2022 Action Requested: Resolution (2 readings) Presenter: Alex Ikefuna, Interim Director, Office of Community Solutions Staff Contacts: Alex Ikefuna, Interim Director, Office of Community Solutions Brenda Kelley, Redevelopment Manager, Office of Community Solutions Title: Award of FY22 Charlottesville Affordable Housing Funds (CAHF) Background: The City's FY21/22 budget included funding the Charlottesville Affordable Housing Fund (CAHF). A Notice of Funding Availability (NOFA) to accept applications for $750,000 in available funding was issued January 21, 2022, with applications due Februaty 18, 2022. Seven (7) applications were received (see application summary attached as an Exhibit). The recommendations for FY22 CAHF allocations are presented below. Discussion: Staff received seven (7) applications for CAHF funding by the submission deadline. The application review was done by a seven-person technical team composed of city staff and a representative from the Housing Advisory Committee (HAC). Summaries of the proposals are as follows (the applications are attached as Exhibits): Project: Assisted Home Performance and Electrification Ready (AHP) - Owner Occupied Applicant: Local Energy Alliance Program (LEAP) CAHF Request: $125,000 This program will assist 14-18 low-income households with whole-house energy-efficiency solutions, increasing comfort and indoor air quality while reducing energy bills. The improvements will assist in keeping existing affordable housing stock affordable, by reducing maintenance costs (e.g. better ventilation reduces mold and rot), reducing ownership cost through energy bill reduction, and improving home comfort and health outcomes. Additionally, if the home heating system is a good fit for electrification (the switching from a fossil-fuel-fired furnace or water heater to a high­ efficiency electric heat pump system), LEAP will also make those necessary improvements. Project: Assisted Home Performance and Electrification Ready (AHP) - Renter Occupied Applicant: Local Energy Alliance Program (LEAP) CAHF Request: $100,000 This program will assist 10-14 low-income renters by improving their homes' with whole-house energy-efficiency solutions, increasing comfort and indoor air quality while reducing energy bills. The improvements will assist in keeping existing affordable housing stock affordable, by reducing energy bills and improving home comfort and health outcomes. Additionally, if the home heating system is a good fit for electrification (the switching from a fossil-foel-fired furnace or water heater to a high-efficiency electric heat pump system), LEAP will also make those necessary improvements. Project: South First Phase Two Applicant: Charlottesville Redevelopment and Housing Authority (CRHA) CAHF Request: $750,000 The proposed South First Phase Two project will construct a new, 113-unit multi-family rental development on the site of the current South First Street public housing development located at 900 First Street South ... The mix of income levels include at least 12 households at or below 30% of AMI, 45 households at or below 50% of AMI, and 56 households at or below 60% of AMI. .. Project: Equity Homeownership Initiative 2022 Applicant: Habitat for Humanity of Greater Charlottesville CAHF Request: $435,000 (Lot Acquisition $360,000; Down Payment Assistance $75,000) Funding is requested to suppo1t lot acquisition and/or paitial site development for 12 affordable townhome units in the new Flint Hill neighborhood of the City... Funding is also requested for down payment assistance for families at or below 30% of AMI when they enter the Habitat program. Habitat is requesting an average of $15,000 for five families. Project: Gas Furnace Replacement Applicant: The Arc of the Piedmont CAHF Request: $6,739.00 This project will replace the original gas furnace at the Arc of Piedmont's group home at 222 Shamrock Road in the City of Charlottesville. Project: Charlottesville Critical Repair Program Applicant: Albemarle Housing Improvement Program (AHIP) CAHF Request: $250,000 Funds will provide for critical home repairs for low-income homeowners in the City of Charlottesville. Funds will enable AHIP to serve 25 to 50 Charlottesville households (with an anticipated investment of $5,000 to $10,000 in CAHF funds per project). Funds will enable AHIP to promptly respond to emergencies and serve more city residents who call us for assistance. We will also be able to move program participants through our program more quickly and efficiently. The purpose of this work is to keep household members safe, healthier, and more secure through improving, modernizing, and preserving their home. Project: MACAA Development Applicant: Piedmont Housing Alliance 2 CAHF Request: $3,000,000 This project provides a diversity of affordable housing options for people experiencing low incomes within a high-opportunity neighborhood just one mile from a local job center in downtown Charlottesville and meets a critical need for affordable housing in the Charlottesville area ... The proposal reflects a partnership between four organizations, all of which focus efforts on the support of people experiencing low-incomes as a central part of their mission. The four organizations are partnering on the redevelopment of the MA CAA location to pursue and integrated spectrum of affordable rental housing, affordable homeownership opportunities, and a new modern early childhood center. Piedmont Housing Alliance is acting as the lead developer overall as well as the lead developer of the affordable rental homes, aiming to partner with the Charlottesville Redevelopment and Housing Authority (CRHA) to dedicate a mixture of public housing units and project-based vouchers integrated with the rental buildings. MACAA, the current owner of the property, will develop classrooms in which to operate its Head Start program onsite. Habitat for Humanity of Charlottesville will build townhomes and duplexes on the site to provide affordable homeownership opportunities. The Charlottesville Affordable Housing Plan recommends that targeted funding awards should be allocated as follows· Level of Amount of Households Served Funding Funding Tier 1 $375,000 serving households with incomes up to 30% of Area Median Income (AMI) Tier 2 $225,000 serving households with incomes up to 60% of Area Median Income (AMI) Tier 3 $150,000 serving households with incomes up to 80% of Area Median Income (AMI) However, if City Council approves the allocation as recommended by the HAC, funding by Tier level as recommended by staff, should be awarded as follows· Level of Amount of Households Served Funding Funding Tier 1 $495,000 serving households with incomes up to 30% of Area Median Income (AMI) Tier 2 $245,000 serving households with incomes up to 60% of Area Median Income (AMI) Tier 3 $10,000 serving households with incomes up to 80% of Area Median Income (AMI) After careful consideration and discussion of all applications, the technical team recommended the following awards of CAHF funding: • CRHA; South First Phase 2; $350,000 • Habitat for Humanity of Greater Charlottesville; Equity Homeownership Initiative 2022 Down Payment Assistance; $75,000 • Piedmont Housing Alliance; MACAA Development; $175,000 3 • Albemarle Housing Improvement Program (AHIP); Charlottesville Critical Repair Program; $100,000 • Local Energy Alliance Program (LEAP); Assisted Home Performance and Electrification Ready (AHP) - Renter Occupied; $50,000 T he Housing Advisory Committee (HAC) was advised of the technical team's recommendations p rior to this agenda memo being finalized. The HAC requested a full review and recommendation of t he applications. A HAC subcommittee met on March 16th and March 24 th to review and discuss the applications. Subsequent to the first team review and recommendation of applications, we learned t hat Piedmont Housing Alliance did not make a Low Income Housing Tax Credit (LIHTC) a pplication in March 2022 for the MACAA project. Because of this, the HAC subcommittee r ecommended that the Piedmont Housing Alliance MACAA project application should not be f unded and those funds previously recommended by the technical review team ($175,000) be r eallocated to other applications. The final recommendation by the HAC subcommittee is as follows: • CRHA; South First Phase 2; $425,000 • Habitat for Humanity of Greater Charlottesville; Equity Homeownership Initiative 2022 Down Payment Assistance; $75,000 • Albemarle Housing Improvement Program (AHIP): Charlottesville Critical Repair Program; $100,000 • Local Energy Alliance Program (LEAP); Assisted Home Performance and Electrification Ready (AHP) - Owner Occupied; $50,000 • Local Energy Alliance Program (LEAP); Assisted Home Performance and Electrification Ready (AHP) - Renter Occupied; $100,000 Alignment with City Council's Vision and Strategic Plan: The overall funding of affordable housing initiatives supports City Council's visions of Quality Housing Opportunities for All; A Green City; Community of Mutual Respect; and Smati, Citizen­ Focused Government. Approval of this request is also supp01ied by the following: Strategic Plan Goals: • Goal 1.3: Increase affordable housing options • Goal 1.4: Enhance financial health of residents • Goal 1.5: Intentionally address issues of race and equity • Goal 2.3: Improve community health and safety outcomes by connecting residents with effective resources Comprehensive Plan Guiding Principles (2021 ): • Equity & Opportunity - All people will be able to thrive in Charlottesville. 4 • Community Culture & Unity - Charlottesville's rich and diverse culture and form will be celebrated, and the entire community will feel welcomed, valued and respected. • Local & Regional Collaboration - From the neighborhood to the region, open conversations and partnerships will make the city stronger. • Environmental Stewardship & Sustainability - The Charlottesville community will demonstrate enviromnenlal and climate leadership. • (Numerous Goals in the Comprehensive Plan also support this request). Community Engagement: This CAHF allocation is in keeping with the provisions in the Affordable Housing Plan and 2021 Comprehensive Plan that were recommended by the Planning Commission and approved by the City Council. Both documents went through an extensive public engagement process. Also, the application review was done by a seven-person team composed of city staff and a representative from the Housing Advisory Committee (HAC). Budgetary Impact: This request does not encumber any additional funding from the City budget. CAHF funding is allocated in the Capital Improvement Program (CIP) FY2 l/22 budget. This approval allocates this FY21/22 CIP funding. Recommendation: Staff recommends City Council approve the attached Resolutions awarding CAHF funding. If approved, the funding will support various levels of affordable housing, as follows: Level of funding: Tier 1 - serving households with incomes up to 30% AMI: • CRHA; South First Phase Two; $375,000 • Habitat for Humanity of Greater Charlottesville; Equity Homeownership Initiative 2022 Down Payment Assistance; $75,000 • Local Energy Alliance Program (LEAP); Assisted Home Performance and Electrification Ready (AHP) - Owner Occupied; $25,000 • Local Energy Alliance Program (LEAP); Assisted Home Performance and Electrification Ready (AHP) - Renter Occupied; $20,000 Level of funding: Tier 2 - serving households with incomes up to 60% AMI: • CRHA; South First Phase Two; $50,000 • Albemarle Housing Improvement Program (Al-lIP); Charlottesville Critical Repair Program; $100,000 • Local Energy Alliance Program (LEAP); Assisted Home Performance and Electrification Ready (AHP) - Owner Occupied; $25,000 5 • Local Energy Alliance Program (LEAP); Assisted Home Performance and Electrification Ready (AHP) - Renter Occupied; $70,000 Level of funding: Tier 3 - serving households with incomes up to 80% AMI: • Local Energy Alliance Program (LEAP); Assisted Home Performance and Electrification Ready (AHP) - Renter Occupied; $10,000 Alternatives: City Council could decide to provide the recommended projects with different levels offunding than those recommended. Council could also decide to fund a different set ofthe projects outlined above, or choose to not award any funding for any of these projects at this time. Attachments: • Resolutions (including suggested motions) • Summaty of CAHF applications received • CAHF applications 6 Suggested motion: "/ move the Resolution allocating CAHFfunding for CRHA South First Phase Two project, in the m110w1t of$425,000" RESOLUTION Allocation of Charlottesville Affordable Housing Fund (CAHF) for Charlottesville Redevelopment and Housing Authority (CRHA) South First Phase Two - - $425,000 NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Charlottesville, Virginia that the sum of $425,000 be allocated from previously appropriated funds in the Charlottesville Affordable Housing Fund (CAHF) to Charlottesville Redevelopment and Housing Authority (CRHA) for the purpose of providing funds for the South First Phase Two project. Fund: 426 Project: CP-084 G/L Account: 530670 Charlottesville Redevelopment and Housing Authority (CRHA) $425,000 Approved by Council April 18, 2022 Kyna Thomas Clerk of Council 7 Suggested motion: "I move the Resolution a/locating CAHFJwuli11gfor Habitat for Humanity of Greater C/wrlottes11ille Equity Homeownership Initiative 2022 Down Paymen t Assistance project, i11 the m1101111t of$75,000" RESOLUTION Allocation of Charlottesville Affordable Housing Fund (CAHF) for Habitat for Humanity of Greater Charlottesville Equity Homeownership Initiative 2022 Down Payment Assistance - - $75,000 NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Charlottesville, Virginia that the sum of $75,000 be allocated from previously appropriated funds in the Charlottesville Affordable Housing Fund (CAHF) to Habitat for Humanity ofGreater Charlottesville for the purpose of providing funds for the Equity Homeownership Initiative 2022 Down Pay ment Assistance program. Fund: 426 Project: CP-084 G/L Account: 530670 Habitat for Humanity of Greater Charlottesville $75,000 Approved by Council April 18, 2022 Kyna Thomas Clerk of Council 8 Suggested motion: "/ move tile Resolution allocati11g CAHF ftmdi11gfor Albemarle Housi11g Improve111e11t Program Charlottesville Critical Repair program, in tile a11101mt of $100,000" RESOLUTION Allocation of Charlottesville Affordable Housing Fund (CAHF) for Albemarle Housing Improvement Program (AHIP) Charlottesville Critical Repair Program - - $100,000 NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Charlottesville, Virginia that the sum of $100,000 be allocated from previously appropriated funds in the Charlottesville Affordable Housing Fund (CAHF) to Albemarle Housing Improvement Program (AHIP) for the purpose of providing funds for the Charlottesville Critical Repair program. Fund: 426 Project: CP-084 G/L Account: 530670 Albemarle Housing Improvement Program (AHIP) $100,000 Approved by Council April 18, 2022 Kyna Thomas Clerk of Council 9 Suggested motion: "I move tlze Resolution allocatiug CAHFfundiugfor Local Energy Alliance Assisted Home Pe,formance and Electrification Ready- Owner Occupied project, ill tlze a11101111t of$50,000" RESOLUTION Allocation of Charlottesville Affordable Housing Fund (CAHF) for Local Energy Alliance Program (LEAP) Assisted Home Performance and Electrification Ready (AHP) - Owner Occupied - - $50,000 NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Charlottesville, Virginia that the sum of $50,000 be allocated from previously appropriated funds in the Charlottesville Affordable Housing Fund (CAHF) to Local Energy Alliance Program (LEAP) for the purpose ofproviding funds for the Assisted Home Performance and Electrification Ready (AHP)­ Owner Occupied program. Fund: 426 Project: CP-084 GIL Account: 530670 Local Energy Alliance Program (LEAP) $50,000 Approved by Council April 18, 2022 Kyna Thomas Clerk of Council 10 Suggested motion: "I move tlte Resolution (ll/ocati11g CAHFfwulingfor Loc(I/ Energy Alliance Assisted Home Pe,fomumce and Electrification Ready - Renter Occupied project, ill tlte ll/llOllllt of$100,000" RESOLUTION Allocation of Charlottesville Affordable Housing Fund (CAHF) for Local Energy Alliance Program (LEAP) Assisted Home Performance and Electrification Ready (AHP) - Renter Occupied - - $100,000 NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Charlottesville, Virginia that the sum of $100,000 be allocated from previously appropriated funds in the Charlottesville Affordable Housing Fund (CAI-IF) to Local Energy Alliance Program (LEAP) for the purpose of providing funds for the Assisted Home Performance and Electrification Ready (AHP) - Renter Occupied program. Fund: 426 Project: CP-084 G/L Account: 530670 Local Energy Alliance Program (LEAP) $100,000 Approved by Council April 18, 2022 Kyna Thomas Clerk of Council 11 CAHF Applications Received by 2/18/22 $750,000 Available Organization Project Name Total Funding Requested Purpose of Requested Funding Funding Tier 1 TierZ Tier3 Requested <30%AMI <60%AMI <80%AMI LEAP Assisted Home Performance $125,000 $25,000 $75,000 $25,000 Rehabilitation and Electrification Ready (AHP) Other: Energy Efficiency - Owner Occupied retrofits with health and safety repairs LEAP Assisted Home Performance $100,000 $20,000 $70,000 $10,000 Rehabilitation and Electrification Ready (AHP) Other: Energy Efficiency - Renter Occupied retrofits with health and safety repairs Charlottesville South First Street Phase 2 $750,000 $375,000 $225,000 $150,000 Multi-family, New Construction Redevelopment and Housing Authority Habitat for Equity Homeownership $435,000 $75,000 $225,000 $135,000 New Construction, Acquisition, Humanity of Initiative 2022 Rehabilitation and Enhanced Greater Down Payment Assistance; Charlottesville Multi-family and detached and attached Single family The Arc of the Gas Furnace Replacement $6,739 $6,739 Other: replacement Piedmont Albemarle Charlottesville Critical Repair $250,000 $100,000 $100,000 $50,000 Rehabilitation Housing Program Improvement Program {AH IP) Piedmont MACAA Development $3,000,000 $1,650,000 $1,350,000 Acquisition; Multi-family New Housing Alliance Construction Totals $4,666,739 $2,251,739 $2,045,000 $370,000 City of Charlottesville Affordable Housing Fund (CAHF) Application (all items must be completed) Applicant Information Total Amount of CAHF funds requested: $125,000 Check Amount of CAHF Level of Typical Households Served Tier Funds Requested Funding Amount of Applying by Tier Funding For Available xx $25,000 Tier 1 $375,000 serving households with incomes up to 30% of Area Median Income {AMI) xx $75,000 Tier 2 $225,000 serving households with incomes up to 60% of Area Median Income (AMI) xx $25,000 Tier 3 $150,000 serving households with incomes up to 80% of Area Median Income (AMI) Organization name: Local Energy Alliance Program Contact name: Chris Meyer Title: Executive Director Organization Address: 608 Ridge Street Phone: 434.227.4666 Email: chris@leap-va.org Project Information Project Name: Assisted Home Performance and Electrification Ready (AHP) - Owner Occupied Project Location: All of Charlottesville Purpose of requested funding: (check all that apply) New Construction _ _ Acquisition _xx_ Rehabilitation _ _ Rent Subsidy _ _ Operating/Administration _xx_ Other: Energy Efficiency retrofits with health and safety repairs Project type: (check all that apply} _ _ Multi-family _xx_ Single family {detached) _xx_ Single family (attached} _xx_ Rehabilitation New Construction _ _ Acquisition _xx_ Other: Will assist all housing types including manufactured homes that are owner occupied. Income restrictions on project (indicate number of units meeting each Area Median Income (AMI) category: Incomes less than 30% AMI Incomes between 30% and 40% AMI Incomes between 40% and 50% AMI Incomes between 50% and 60% AMI Incomes between 60% and 80% AMI Unrestricted units (>80% AMI) Total Units Term of Affordability (indicate number of units meeting each affordability term): less than 2 years 2 - 5 years 5 - 10 years 10 - 15 years 15 - 20 years 20- 30 years more than 30 years Total Units Project Proposal: Please provide following information as separate attachments to the application: 1. Project Description -- Provide a description of the proposed project. Include: project type and location, short and long term goals, the population(s) to be served. Discuss plans for accessibility/adaptability, energy conservation and/or any green building components. This program will assist 14-18 low-income households (in a mix of the three income tiers provided) with whole-house energy-efficiency solutions, increasing comfort and indoor air quality while reducing energy bills. The improvements will assist in keeping existing affordable housing stock affordable, by reducing maintenance costs (e.g. better ventilation reduces mold and rot), reducing ownership cost through energy bill reduction, and improving home comfort and health outcomes. Additionally, if the home heating system is a good fit for electrification (the switching from a fossil-fuel-fired furnace or water heater to a high-efficiency electric heat pump system), LEAP will also make those necessary improvements. Program Scope of Work includes: o Pre-qualification of homeowners o Collection of utility usage from the year prior to work commencing (to the greatest extent feasible, when data is available) o Comprehensive Home Energy Audit performed by LEAP staff. Audit shall meet Building Performance Institute standards. Energy conservation, water conservation, occupant comfort, and health and safety improvements based upon recommendations from the energy audit report could include: • Improvements to facilitate Beneficial Electrification • Air sealing Duct sealing Insulation (attic, walls, basement, crawl space) • Crawlspace/Foundation insulation HVAC system tune-up HVAC system replacement • Ductwork reconfiguration • Water heater replacement • Hot water pipe insulation • Ventilation improvements and moisture control (bath fans, kitchen range exhaust, dehumidifiers, etc.) • Installing CO and smoke detectors Beneficiaries would be income qualified using the current HUD Income Limit guidelines (or 2023 when released}. LEAP already maintains a list of income-qualified households waiting for this type of assistance. A minimum of 14 households are to be assisted. LEAP will prioritize participants for the program who reside in the CDBG priority neighborhoods of Rose Hill, 10th and Page, Fifeville, Ridge Street, and Belmont. LEAP's headquarters is located on Ridge Street and neighbors Fifeville. By starting with a Home Energy Assessment, LEAP identifies the unique opportunities to reduce energy usage in each home. Combined with leveraging other programs from Dominion Energy and the City, LEAP can do 'deep' dives into the house that often require systemic fixes (like duct sealing and a new electric heat pump) to maximize energy savings. By ensuring that each home receives a unique solution set and delivering multiple improvements within a home, LEAP maximizes the energy savings for the homeowner while delivering services in a cost-effective manner to the City and client. LEAP uses our own set of experienced analysts to assess homes and discuss each home's particular needs with the client. All of the home improvements LEAP makes have been proven over the years, through independent research, to save energy and money. Because Dominion's energy-efficiency programs are regulated, much of the programming LEAP implements is frequently reviewed by the State Corporation Commission and found to be cost-effective in reducing energy use. Equipment replacements are independently rated for energy usage in order to determine the efficacy of each individual piece of equipment. LEAP's project managers are certified and take continuing education courses to ensure that the solutions they're suggesting or implementing for low-income households are the most appropriate and up-to-date options available. Finally, LEAP currently reports to the City on energy savings for a similar program and has consistently met its goal of more than 20% energy savings on average for clients served. This 20% savings equates to an ongoing annual savings of$350/vear {nearly $30/month/ for an 1800 sqft. 3-4 bedroom house built 50-60 years ago. 2. Demonstration of Need -- Describe how the project contributes to the City of Charlottesville's housing goals. Per the City's own Affordable Housing Plan (slide 147), energy efficiency rehabilitation and retrofits are one of the explicitly listed activities to be supported and implemented. This project takes what is on paper and makes it a reality. It will assist in keeping existing affordable housing units affordable or maintaining the stock. It will also, in many cases, be leveraging external funding from Dominion Energy's low-income energy-efficiency program ($1-to-$1 or greater in most cases) which will mean additional funding being sourced to support the City's goals. The project will also target households in all three income tiers, with the majority expected to be in the tier below 60% AMI. 3. Demonstration of Equity- Describe how this project demonstrates and promotes equitable housing needs and economic opportunity for low-income residents in the City of Charlottesville. All homeowners should feel comfortable in their homes and have an energy burden - or cost to heat and cool their home - that is bearable. However, for /ow-income households, their housing often lacks proper insulation levels, is under maintained with older, inefficient equipment, and thus, is relatively more expensive to heat and cool compared to a middle-higher income home. This project seeks to address the home comfort AND energy burden aspects of homeownership for low-income households. It will reduce energy bills and long-term maintenance costs, which will keep the housing stock affordable for longer and allow savings on energy bills to be spent on other household needs. 4. Project Readiness -- Provide evidence of: organizational experience and capacity to manage the project; pursue and acquire land, site control, required zoning variance and permitting (if applicable}; financial commitments for the projects; community engagement plan (if applicable}; resident relocation plan (if applicable}; plans for preparation and coordination of necessary public meetings (if applicable}. LEAP maintains a waitlist of income-qualified households already audited who are waiting for funding - as of the end ofJanuary 2022, the list numbered 10. Through outreach with partners such as the Community Climate Collaborative, Charlottesville Gas, past client referrals, and other channels, we typically add 4-5 income-qualifying households to our raster of clients needing assistance each month. LEAP has a dedicated audit team and weatherization crews for the Charlottesville area that serves 40 households a month. Our client coordination team is experienced in coordinating necessary oversight and paperwork with the City's legal office and securing necessary signatures fram clients. One of LEAP's coordinators is a notary and will go to a home to get a notarized signature, if necessary, in order to move a project forward administratively. LEAP would anticipate spending a $125,000 project allocation {14-18 clients) in 9-12 months. The maximum of 12 months would likely only be necessary if we were to receive additional external funding that we would prioritize spending instead of the City's resources. In the calendar year of 2021, LEAP served 263 /ow-income single-family households with a range of energy-efficiency services, around 22 households a month. We are capable of serving 14-18 households over 9-12 months. 5, Project Budget -- Provide a detailed description of the proposed project budget showing sources and uses and amounts of additional funding. LEAP's budget for the entire Assisted Home Performance program for low-income homeowners in the City of Charlottesville is $375,000. Of that amount, LEAP is requesting $125,000 from the CAHF with another chunk potentially coming from the City's HOME allocation, and the balance of$187,500 projected to be covered by Dominion Energy. iAssisted Home Performance Owner Occupied Budget Funding Splits Avg Cville !item 'Units ;cosUunit Total HOME Cville CAHF Dominion ' iEnergy Efficiency retrofit !mid-range 40 $5,ooo: $200,000 $40,000 $50.000 $110,000 !Energy Efficiency retrofit •high-range 10 $10,000 $100.000 $10,000 $50.000 $40,000 iOverhead (25%) $75.oool $12,500 $25.000 $37,500 Total $375,oooj $62.500 i $125,000 $187,500 The majority of projects LEAP would implement would max out at around $5,000 of provided support, to align with the City's Housing Affordability Policy (HAP) for when a lien on the deed is not required. A smaller portion of participants would receive up to $10,000 of assistance, which would require a lien on the deed for a number of years until the amount is amortized based on the HAP. Each home is different and would require different energy-efficiency measures, with differing costs depending on the home. However, a sampling of average costs for varying measures include: $2,000-$3,000 for attic insulation and air sealing, $8,500 to replace a heat pump, $2,500-$4,000 for a heat pump hot water heater replacement, $1,000 to replace an electric panel, and $450 to install a new bath fan. LEAP utilizes reimbursement rates for different measures provided by Dominion Energy and that have been reviewed by the State Corporation Commission. All of our work comes with industry-standard guarantees on equipment and workmanship in addition to LEAP being fully insured for any liability that may arise. LEAP's overhead rate is 25% for energy-efficiency work. Expenses in addition to the overhead covering client coordination/outreach and project administration/reporting, include: workers comp, general liability and other insurances needed, truck and equipment expense, and training and certification costs associated with maintaining LEAP's workforce. All of our full-time staff earn above a living wage and receive a full benefits package. 6. Project Schedule -- Indicate the proposed project schedule; timing of completed SAUs; pre- development, anticipated pursuit and acquisition timeline, site control, zoning approval, financing and construction milestones (if applicable) to project completion. Because LEAP already has a list of low-income households waiting for improvements, as soon as the contract is signed, LEAP will start work on any necessary paperwork with the client to qualify them in the City's system. Within the first manth, at least 2-3 households would be served. Over the next 5 months, an additional 2-3 households would be served for a total of at least 12 households served in the first six months. Over the next three months, the remaining 4-6 households would be served. The final three months would be utilized for any reporting and/or cushion time in case additional Dominion funding was allocated enabling LEAP to save City funding to be spent later. Again, we always try to utilize Dominion's funding first with the last three months of the calendar year (Oct-December) being when extra a/locations are normally awarded. LEAP can report every three months, or as desired by City staff 7. Experience -- Provide a summary of similar activities completed by the organization and project team. LEAP has a proven track record executing this type of work for the City over the last three years. Our team recently grew from a staff offive to 14 full-time employees serving the area, and accordingly increased our capacity. Our audit team reviews about 40 homes on average each month, and about 20 of those in the Greater Charlottesville area receive weatherization measures from our crews. All of our auditors are certified through the Building Performance Institute, have worked for LEAP for at least one year, and are familiar with these types of projects as well as how to ensure their prompt implementation. LEAP's network of trade allies (HVAC contractors, plumbers, and others) are responsive and complete work 2-3 weeks after being contracted. LEAP is currently executing this project with CDBG and HOME funding worth nearly $100,000. We have nearly spent down that funding in 7 months, prioritizing Dominion Energy funding over City funds in November and December of 2021. LEAP now serves low-income households throughout Northern and Central VA with similar energy-efficiency measures. 8. Capacity- Provide a detailed description to demonstrate the applicant's ability to complete this project within 24 months. LEAP's professional staff, consisting of Executive Director {Chris Meyer), Technical Director (Wilson Ratliff), Marketing and Outreach Manager (Erin Morgan), and Client Relations Coordinator (Kara Chipiwalt} meet regularly to review program progress and reporting needs. This includes weekly meetings to review households in need of service, utilization of project management software, and frequent communication with grant coordinators to ensure quality control. The City of Charlottesville's Housing and Redevelopment staff {Erin Atak) can attest that LEAP has aggressively spent our current FY CDBG and HOME allocations exceeding plan and target. That includes reporting and invoicing in a timely manner, frequent and responsive communication, and management of multiple contracts with the City simultaneously. LEAP manages and implements, at any one time, more than 10 programs or unique sources of funding from the City of Charlottesville {3}, Albemarle County (1), foundation grants (2), and Utility programs (4) - all of which have their own reporting and administrative requirements. 9. Metrics - Provide a detailed description of the metrics used to measure success. LEAP developed program evaluation metrics together with relevant City staff to detail the most relevant energy-efficiency measurements. These include: Kilowatt Hours Saved, Therms Saved (natural gas clients), Measures Implemented, and Efficiency Gains. Additionally, LEAP collects socio-economic demographic data on Race, Age, Household Headship, Income, and Number of Inhabitants. Evaluation of the data collected previously helped to inform where marketing dollars and time should be spent in order to ensure we are reaching low-income clients of all races and in the neediest neighborhoods. Authorization: Organization Name: Local Energy Alliance Program Project Title: Assisted Home Performance and Electrification Ready {AHP) - Owner Occupied I, Chris Meyer, certify that I am authorized to apply for funding from the City of Charlottesville. I certify that all information contained herein is accurate to the best of my knowledge. 2/9/2022 Signaturature Date Chris Meyer Executive Director Print Name Title Applications shall be submitted electronically via email in one complete .pdf package to: Brenda Kelley, Redevelopment Manager Office of Community Solutions kelleybr@cbaclottesville.gov (434) 970-3040 I t is the applicant's responsibility to insure that the application package is fully completed and received on or before the deadline. Applications received after the deadline will not be considered. City of Charlottesville Affordable Housing Fund (CAHF) Application (all items must be completed) Applicant Information Total Amount of CAHF funds requested: $100,000 Check Amount of CAHF Level of Typical Households Served Tier Funds Requested Funding Amount of Applying by Tier Funding For Available xx $20,000 Tier 1 $375,000 serving households with incomes up to 30% of Area Median Income (AMI) xx $70,000 Tier 2 $225,000 serving households with incomes up to 60% of Area Median Income (AMI} xx $10,000 Tier 3 $150,000 serving households with incomes up to 80% of Area Median Income (AMI) Organization name: Local Energy Alliance Program Contact name: Chris Meyer Title: Executive Director Organization Address: 608 Ridge Street Phone: 434.227.4666 Email: chris@leap-va.org Project Information Project Name: Assisted Home Performance and Electrification Ready (AHP) - Renter Occupied Project Location: All of Charlottesville Purpose of requested funding: (check all that apply) New Construction _ _ Acquisition _xx_ Rehabilitation _ _ Rent Subsidy _ _ Operating/Administration _xx_ Other: Energy Efficiency retrofits with health and safety repairs Project type: (check all that apply) _ _ Multi-family _xx_ Single family (detached) _xx_ Single family (attached) _xx_ Rehabilitation New Construction _ _ Acquisition _xx_ Other: Will assist all housing types including manufactured homes that are owner occupied. Income restrictions on project (indicate number of units meeting each Area Median Income (AMI) category: Incomes less than 30% AMI Incomes between 30% and 40% AMI Incomes between 40% and 50% AMI Incomes between 50% and 60% AMI Incomes between 60% and 80% AMI Unrestricted units (>80% AMI) Total Units Term of Affordability (indicate number of units meeting each affordability term): less than 2 years 2 - 5 years 5 - 10 years 10 -15 years 15 - 20 years 20 - 30 years more than 30 years Total Units Project Proposal: Please provide following information as separate attachments to the application: 1. Project Description -- Provide a description of the proposed project. Include: project type and location, short and long term goals, the population(s) to be served. Discuss plans for accessibility/adaptability, energy conservation and/or any green building components. This program will assist 10-14 low-income renters (in a mix of the three income tiers provided) by improving their homes' with whole-house energy-efficiency solutions, increasing comfort and indoor air quality while reducing energy bills. The improvements will assist in keeping existing affordable housing stock affordable, by reducing energy bills and improving home comfort and health outcomes. Additionally, if the home heating system is a good fit for electrification (the switching from a fossil-fueljired furnace or water heater to a high-efficiency electric heat pump system), LEAP will also make those necessary improvements. Program Scope of Work includes: o Pre-qualification of households o Collection of utility usage from the year prior to work commencing (to the greatest extent feasible, when data is available) o Comprehensive Home Energy Audit performed by LEAP staff Audit shall meet Building Performance Institute standards. Energy conservation, water conservation, and health and safety improvements based upon recommendations from the energy audit report could include: Upgrades for Electrification, if needed • Air sealing • Duct sealing Adding insulation where needed (attic, walls, basement, crawl space) Encapsulating the crawl space HVAC system tune-up HVAC system replacement Ductwork reconfiguration • Water heater replacement • Insulating water heater and the supply and distribution pipes Installing ventilation where needed (bath fans, kitchen range exhaust, etc.) Installing CO and smoke detectors Beneficiaries would be qualified as 'low-income' using the 2023 HUD Income Limit guidelines (when released). LEAP already maintains a list of income-qualified households waiting for this type of assistance. A minimum of 10 rental households are to be assisted. LEAP will prioritize participants for the program who reside in the CDBG priority neighborhoods of Rose Hill, 10th and Page, Fifeville, Ridge Street, and Belmont. LEAP's headquarters is located on Ridge Street and neighbors Fifeville. By starting with a Home Energy Assessment, LEAP identifies the unique opportunities to reduce energy usage in each home. Combined with leveraging other programs from Dominion Energy and the City, LEAP can do 'deep' dives into the house that often require systemic fixes (like duct sealing and a new electric heat pump) to maximize energy savings. By ensuring that each home receives a unique solution set and delivering multiple improvements within a home, LEAP maximizes the energy savings for the resident, while delivering services in a cost-effective manner to the City and client. LEAP uses our own set of experienced analysts to assess homes and discuss each home's particular needs with the client. All of the home improvements LEAP makes have been proven over the years, through independent research, to save energy and money. Because Dominion's energy-efficiency programs are regulated, much of the programming LEAP implements is frequently reviewed by the State Corporation Commission and found to be cost-effective in reducing energy use. Equipment replacements are independently rated for energy usage in order to determine the efficacy of each individual piece of equipment. LEAP's project managers are certified and take continuing education courses to ensure that the solutions they're suggesting or implementing for low-income households are the most appropriate and up-to-date options available. Finally, LEAP currently reports to the City on energy savings for a similar program and has consistently met its goal of more than 20% energy savings on average for clients served. This 20% savings equates on average to an ongoing annual savings of $350/year (nearly $30/month/ for an 1800 sgft. 3-4 bedroom house built 50-60 years ago. 2. Demonstration of Need -- Describe how the project contributes to the City of Charlottesville's housing goals. Per the City's own Affordable Housing Plan (slide 147), energy efficiency rehabilitation and retrofits are one of the explicitly listed activities to be supported and implemented. This project takes what is on paper and makes it a reality. It will assist in keeping existing affordable housing units affordable or maintaining the stock. It will also, in many cases, be leveraging external funding from Dominion Energy's low-income energy-efficiency program ($1-to-$1 or greater in most cases), which will mean additional funding being sourced to support the City's goals. The project will also target households in all three income tiers, with the majority expected to be in the tier below 60% AMI. 3. Demonstration of Equity - Describe how this project demonstrates and promotes equitable housing needs and economic opportunity for low-income residents in the City of Charlottesville. All renters should feel comfortable in their homes and have an energy burden - or cost to heat and cool their home - that is bearable. The majority of low-income residents in the City are renters. However, for low-income renters, their housing often lacks proper insulation levels, is under maintained with older, inefficient equipment, and thus, is relatively more expensive to heat and cool compared to a middle-higher income home. This project seeks to address the home comfort AND energy burden aspects of low-income renters, reducing energy bills for participating Charlottesville residents. Renters face a split incentive challenge regarding energy-efficiency updates, because it is normally the responsibility of the landlord to pay for insulation and air sealing for example, but the landlord doesn't receive the savings and comfort benefits. If the renter makes those investments, but only plans to live in the property for a couple of years, they would never reap the full benefits of their investment. Thus, the need for this type of project. LEAP will target the program to landlords who themselves are lower-income qualified. We will not engage large, corporate owners of multiple rental properties. We will utilize the Housing Assistance Program's (HAP) policies associated with assisting renters, which will ensure a landlord can not raise rent on the tenant until the Deferred Loan's term is complete (1-3 years depending on the amount of benefit received}. 4. Project Readiness -- Provide evidence of: organizational experience and capacity to manage the project; pursue and acquire land, site control, required zoning variance and permitting (if applicable); financial commitments for the projects; community engagement plan (if applicable); resident relocation plan (if applicable); plans for preparation and coordination of necessary public meetings (if applicable). LEAP maintains a waitlist of income-qualified households, including renters already audited who are waiting for funding - as of the end ofJanuary 2022, the list numbered 10. Through outreach with partners such as the Community Climate Collaborative, Charlottesville Gas, past client referrals, and other channels, we typically add 4-5 income-qualifying households and renters to our roster of clients needing assistance each month. LEAP has a dedicated audit team and weatherization crews for the Charlottesville area that serves 40 households a month. Our client coordination team is experienced in coordinating necessary oversight and paperwork with the City's legal office and securing necessary signatures from clients and landlords. One of LEAP's coordinators is a notary and will go to a home to get a notarized signature, if necessary, in order to move a project forward administratively. LEAP would anticipate spending a $100,000 project allocation (10-14 clients) in 12-16 months. The maximum of 16 months would likely only be necessary if we were to receive additional external funding that we would prioritize spending instead of the City's resources. In the calendar year of 2021, LEAP served 263 low-income single-family households with a range of energy-efficiency services, around 22 households a month. We are capable of serving 14-18 households over 9-12 months. 5. Project Budget -- Provide a detailed description of the proposed project budget showing sources and uses and amounts of additional funding. LEAP's budget for the entire Assisted Home Performance program for low-income renters in the City of Charlottesville is $200,000. Of that amount, LEAP is requesting $100,000 from the CAHF with the balance of $100,000 projected to be covered by Dominion Energy. iAssisted Home Performance Renters Funding Splits 'Item Units Avg cost/unit :Total City of Cville , Dominion IEnergy Efficiency retrofit mid-range 20 $5,000 $100,000 $55,000 $45,000 ,Energy Efficiency retrofit "high-range 6. $10,000 $60,000 $25,000 $35,000 :overhead (25%) $40,0001 $20,000 $20,000 Total $200,oooJ $100,000 $100,000 The majority of projects LEAP would implement would max out at around $5,000 of provided support, to align with the City's Housing Affordability Policy (HAP) for when a lien on the deed is not required. A smaller portion of participants would receive up to $10,000 of assistance, which would require a lien on the deed for a number of years until the amount is amortized based on the HAP. Each home is different and would require different energy-efficiency measures, with differing costs depending on the home. However, a sampling af average costs for varying measures include: $2,000-$3,000 for attic insulation and air sealing, $8,500 to replace a heat pump, $2,500-$4,000 for a heat pump hot water heater replacement, $1,000 to replace an electric panel, and $450 to install a new bath fan. LEAP utilizes reimbursement rates for different measures provided by Dominion Energy and that have been reviewed by the State Corporation Commission. All of our work comes with industry-standard guarantees on equipment and workmanship in addition to LEAP being fully insured for any liability that may arise. LEAP's overhead rate is 25% for energy-efficiency work. Expenses in addition to the overhead covering client coordination/outreach and project administration/reporting, include: workers comp, general liability and other insurances needed, truck and equipment expense, and training and certification costs associated with maintaining LEA P's workforce. All of our full-time staff earn above a living wage and receive a full benefits package. 6. Project Schedule -- Indicate the proposed project schedule; timing of completed SAUs; pre- development, anticipated pursuit and acquisition timeline, site control, zoning approval, financing and construction milestones (if applicable} to project completion. Because LEAP already has a list of low-income households waiting for improvements, as soon as the contract is signed, LEAP will start work on any necessary paperwork with the client to qualify them in the City's system. However, the list of renters is currently not as robust as the list of homeowners, so time would also need to be dedicated to growing this list. Within the first month, we would assist at least 1 renter and average 1-2/month over the next 12 months, expecting to finish all projects no later than 15 months after commencement. We would add an additional three months for any reporting and/or cushion time in case additional Dominion funding was allocated enabling LEAP to save City funding to be spent later. Again, we always try to utilize Dominion's funding first, with the last three months of the calendar year {Oct-December) being when extra a/locations are normally awarded. LEAP can report every three months, or as desired by City staff. We anticipate that all reporting and grant expenditures will be finished no later than 18 months after signature, and likely earlier. 7. Experience -- Provide a summary of similar activities completed by the organization and project team. LEAP has a proven track record executing this type of work for the City over the last three years. Our team recently grew from a staff offive to 14 full-time employees serving the area, and accordingly increased our capacity. Our audit team reviews about 40 homes on average each month, and about 20 of those in the Greater Charlottesville area receive weatherization measures from our crews. All of our auditors are certified through the Building Performance Institute, have worked for LEAP for at least one year, and are familiar with these types of projects as well as how to ensure their prompt implementation. LEAP's network of trade allies {HVAC contractors, plumbers, and others) are responsive and complete work 2-3 weeks after being contracted. LEAP is currently executing this project with CDBG and HOME funding worth nearly $100,000. We have nearly spent down that funding in 7 months, prioritizing Dominion Energy funding over City funds in November and December of 2021. LEAP now serves low-income households throughout Northern and Central VA with similar energy-efficiency measures. 8. Capacity- Provide a detailed description to demonstrate the applicant's ability to complete this project within 24 months. LEAP's professional staff, consisting of Executive Director {Chris Meyer), Technical Director (Wilson Ratliff), Marketing and Outreach Manager (Erin Morgan), and Client Relations Coordinator (Kara Chipiwalt) meet regularly to review program progress and reporting needs. This includes weekly meetings to review households in need of service, utilization of project management software, andfrequent communication with grant coordinators to ensure quality control. The City of Charlottesville's Housing and Redevelopment staff (Erin Atak) can attest that LEAP has aggressively spent our current FY CDBG and HOME a/locations exceeding plan and target. That includes reporting and invoicing in a timely manner, frequent and responsive communication, and management of multiple contracts with the City simultaneously. LEAP manages and implements, at any one time, more than 10 programs or unique sources of funding from the City of Charlottesville (3), Albemarle County (1), foundation grants (2), and Utility programs (4) - all of which have their own reporting and administrative requirements. 9. Metrics - Provide a detailed description of the metrics used to measure success. LEAP developed program evaluation metrics together with relevant City staff to detail the most relevant energy-efficiency measurements. These include: Kilowatt Hours Saved, Therms Saved (natural gas clients), Measures Implemented, and Efficiency Gains. Additionally, LEAP collects socio-economic demographic data on Race, Age, Household Headship, Income, and Number of Inhabitants. Evaluation of the data collected previously helped to inform where marketing dollars and time should be spent in order to ensure we are reaching low-income clients of all races and in the neediest neighborhoods. Authorization: Organization Name: Local Energy Alliance Program Project Title : Assisted Home Performance and Electrification Ready (AHP) - Renter Occupied I, Chris Meyer, certify that I am authorized to apply for funding from the City of Charlottesville. I certify that all information contained herein is accurate to the best of my knowledge. 2/9/2022 Signaturature Date Chris Meyer Executive Director Print Name Title Applications shall be submitted electronically via email in one complete .pdf package to: Brenda Kelley, Redevelopment Manager Office of Community Solutions kelleybr@charlottesville.gov (434) 970-3040 It is the applicant's responsibility to insure that the application package is fully completed and received on or before the deadline. Applications received after the deadline will not be considered. Kelley, Brenda From: Chris Meyer Sent: Wednesday, February 9, 2022 3:24 PM To: Kelley, Brenda Cc: Wilson Ratliff; Katie VanLangen Subject: Re: Release of Notice of Funding Availability for the Charlottesville Affordable Housing Fund (CAHF) Attachments: CAHF Jan2022 Application LEAP AHP Owner Occupied.docx.pdf; CAHF Jan2022 LEAP AHP Renter Program.docx.pdf WARNING: This email has originated from outside of the organization. Do not cli ck links or open attachments unless you recognize the sender and know the content is safe. Brenda, Please find attached proposals from LEAP to the CAHF. I believe they're complete in as much we answered all of the questions except for two regarding the length of affordability and number of new units provided at which affordability level. Both ofthose questions are not relevant to our proposal because we are not building any new units. Thank you for considering the proposal. Regards, Chris On Fri, Jan 21, 2022 at 4:03 PM Kelley, Brenda wrote: We are pleased to release the Notice of Funding Availability (NOFA) for the FY22 Charlottesville Affordable Housing Fund (CAHF). This NOFA contains the information and Application Form necessary to prepare and submit an application. More information can be found at: https://www.charlottesville.gov/679/Charlottesville-Affordable-Housing-Fund Applications are due by 4pm, February 18, 2022. Feel free to contact me if you require an Application Form in Word document format. Brenda Kelley, Redevelopment Manager (Pronouns: she/her/hers) Office of Community Solutions 1 Exhibit 1 Application Form for the Charlottesville Affordable Housing Fund (CAHF) City of Charlottesville Affordable Housing Fund (CAHF) Application (all items must be completed) Applicant Information Total Amount of CAHF funds requested: $ 750,000.00 Check Amount of CAHF Level of Typical Households Served Tier funds requested by Funding Amount of Applying Tier Funding For Available Tier 1 $375,000 serving households with incomes up to30% of X $375,000 Area Median Income (AMI) Tier 2 $225,000 serving households with incomes up to60% of X $225,000 Area Median Income (AMI) Tier 3 $150,000 serving households with incomes up to80% of X $150,000 Area Median Income (AMI) Organization name: Charlottesville Redevelopment and Housing Authority Contact name: John M Sales Title: Executive Director Organization Address: PO Box 1405, Charlottesville, VA 22902 Phone: 434-422-9297 Email: salesj@cvillerha.org 2 Project Information Project Name: South First Phase Two Project Location: 900 First Street South, Charlottesville, VA 22902 Purpose of requested funding: (check all that apply) __ X_ New Construction _ _ Acquisition Rehabilitation _ _ Rent Subsidy _ _ Operating/Administration Other: Project type: (check all that apply) _X_ Multi-family _ _ Single family (detached) _ _ Single family (attached) Rehabilitation _X_ New Construction _ _ Acquisition Other: 3 Income restrictions on project (indicate number of units meeting each Area Median Income (AMI) category: ---~1=2_ _ _1ncomes less than 30% AMI _ _ _ _ _ _ _ _Incomes between 30% and 40% AMI - - - ~45~ - - -Incomes between 40% and 50% AMI - - - ~ 5=6_ _ _ Incomes between 50% and 60% AMI _ _ _ _ _ _ _ _Incomes between 60% and 80% AMI _ _ _ _ _ _ _ _Unrestricted units (>80% AMI) ----=lce1=3_ _ _Total Units Term of Affordability (indicate number of units meeting each affordability term): _ _ _ _ _ _ _ _less than 2 years 2 - 5 years _ _ _ _ _ _ _ _5 - 10 years _ _ _ _ _ _ _ _10 - 15 years _ _ _ _ _ _ _ _15 - 20 years _ _ _ _ _ _ _ _20 - 30 years --~1=13~_ _ _.more than 30 years --~1=13~_ _ _Total Units 4 Project Proposal: Please provide following information as separate attachments to the application: • Project Description -- Provide a description of the proposed project. Include: project type and location, short- and long-term goals, the population(s) to be served. Discuss plans for accessibility/adaptability, energy conservation and/or any green building components. The proposed South First Phase Two project will construct a new, 113-unit multi-family rental development on the site of the current South First Street public housing development located at 900 First Street South. The existing South First Street public housing development containing 58 one through five-bedroom apartment units for families, and built in 1981 will be demolished, in two phases: A and B. Phase A will demolish that portion of the site containing only one-, two- or three-bedroom units. Construction on phase A will involve development of primarily large four- and five-bedroom units to accommodate the remainder of the households in larger bedroom units who, because of the lack of large units in the surrounding market area, cannot be moved anywhere else. Upon completion of Phase A, those large households will be relocated to the new units in Phase A, and Phase B will commence. The two phases may take up to 24 months to complete. The newly constructed units at South First Phase Two will include 19 one-bedroom, 38 two-bedroom, 26 three-bedroom, 15 four-bedroom and 15 five-bedroom apartment units, in twenty-five separate garden-style, and townhouse style buildings. The buildings are designed to achieve an Enterprise Certification for energy efficiency following construction. A minimum of twelve of the units are designed to be consistent with HU D's regulations interpreting the accessibility standards of Section 504 of the Rehabilitation Act of 1973 as referenced in the requirements set forth in the Uniform Federal Accessibility Standards "UFAS". Sixteen units are designed to meet VHDA's universal design guidelines (visitability). The buildings will have pitched roofs, and their exteriors will be clad with a mix of brick and cementitious siding. The development will include a large community resource space, resident storage, and outdoor recreation space. The non-dwelling heated community space will be approximately 10,567 sf. Additional unheated community space is 1,051. Thirty-eight of the units at South First Phase Two will be subsidized with project-based section 8 (TPV's). Twenty of the units are proposed to use the operating subsidy for public housing units under the CRHA's Annual Contributions Contract. The remaining fifty-five apartment units will have no operating subsidy attached to them but will be actively marketed to households in the community, including public housing residents, with incomes at or below 60% of AMI (LIHTC only units). The mix of income levels include at least 12 households at or below 30% of AMI, 45 households at or below 50% of AMI, and 56 households at or below 60% of AM I. The short-term goals of the project are to improve the living conditions for the existing 58 public housing households at South First Street by transforming their community into energy efficient, attractive, accessible homes with modern amenities, while remaining hyper-affordable. The long-term goal is to do the same for 55 additional low-income and vulnerable households on the same site. 5 • Demonstration of Need -- Describe how the project contributes to the City of Charlottesville's housing goals. In Charlottesville, the CRHA waitlist alone includes over 1600 families, and over 3,300 new affordable units are needed to meet the projected demand. By utilizing CRHA property to its highest and best use, we can start making positive strides to address this community need. This effort puts residents in the driver's seat to redesign their housing, leading to a complete community transformation. The Charlottesville Affordable Housing Plan includes a strong focus on equity in affordable housing. In particular, the plan notes that our community is lacking affordable housing options for those making 30% or less of the area median income. This population can only be served by CRHA and the multitude of government and private subsidies that must be layered to bring new deeply affordable options to our community. South First Phase Two will bring a mix of new affordable units to Charlottesville, including deeply affordable housing. • Demonstration of Equity - Describe how this project demonstrates and promotes equitable housing needs ond economic opportunity for low­ income residents in the City of Chorlottesville. While many may regard the city of Charlottesville, VA as a thriving city, a closer look at demographic data and lived experiences of Charlottesville residents reveals a tale of two cities-one in which housing, health, and economic disparities cut deeply across race and class. For example, in the neighborhoods where the South First Street Community is located, 44% of residents live below the poverty line. The area is home to the "working poor'', boasting unemployment rates from 1.64% alongside a neighborhood median income of $24,871, to 5.97% with a neighborhood median income at $26,806 (according to City Census data). The area is largely regarded as diverse with African Americans and people of color comprising 47%-92% of the population. Put simply, the historical neighborhoods of Ridge Street & Fifeville are prime examples of neighborhoods in our city that have been hardest hit by structural inequities and limits to resources due to historical segregation practices. Up to 66% of families in these neighborhoods earn less than necessary to pay for the essentials to support a family giving rise to high food insecurity rates (17.5% of residents are food insecure) and poor health outcomes. Furthermore, many are tenants in public housing sites falling into dilapidation. For these reasons, in 2017 the Department of Housing and Community Development declared the census tracks where our project is located as "Opportunity Zones" and in 2019 the City of Charlottesville designated the property a "Revitalization Area." The audacious plan to redevelop all public housing properties in Charlottesville is only possible through the foundation of an innovative resident-led redevelopment process in tandem with significant charitable donations from the City of Charlottesville, the Dave Matthews Band, other private charitable donations, LIHTC funding and leveraging of funding sources such as Vibrant Communities Initiative. Resident designers have spent over 700 hours so far in the redesign of South First Street 6 community, and the work continues. While we know this model is worth replicating for all future phases of public housing redevelopment, we also believe this resident process can be replicated and serve as a model for public housing throughout the country. • Project Readiness -- Provide evidence of: organizational experience and capacity to manage the project; pursue and acquire land, site control, required zoning variance and permitting (if applicable); financial commitments for the projects; community engagement pion (if applicable); resident relocation pion (if applicable); plans for preparation and coordination of necessary public meetings (if applicable). The most convincing evidence of the organizational experience and capacity of CRHA to engage in this level of redevelopment is the example of the first two redevelopment projects that are currently in construction and expected to be completed and leasing by the end of 2022. Both projects - South First Phase One and Crescent Halls - required the CRHA and PHAR to engage residents and neighbors in the planning process including holding multiple public meetings; organize a development team with the appropriate skills to see the developments to completion; attract sufficient financing to not only complete the projects as planned but to address unforeseen circumstances and crises; to proceed with renovation with residents in place, and then to relocate them in an emergency situation; and to work with the City's Neighborhood Development Division to achieve site plan and other permitting approvals. • Project Budget -- Provide a detailed description of the proposed project budget showing sources and uses and amounts of additional funding. All sources of funds in the attached sources and uses pages have been committed except for the following which are in process: • Additional equity from LIHTC $160,000 annual credits being requested equal to $1,408,000 in equity to the project. Application due March 10, awards late May. • $9.5 million loan from Virginia Housing in process of underwriting. Commitment expected in June of 2022. • TJPDC Funds $500,000 - request has been made, award anticipated soon. • CAHF request is $750,000. This request. PLEASE SEE ATTACHED SOURCES AND USES • Project Schedule -- Indicate the proposed project schedule; timing of completed SAUs; pre- development, anticipated pursuit and acquisition timeline, site control, zoning approval, financing and construction milestones (if applicable) to project completion. 7 I ~ IACTIVRY ACTUAL OR ANTICIPATED NAME OF I I I DATE I RESPONSIBLE PERSON I I I I I I 1. ISITE I I I Ia. JOption/Contract I b. ISite Acquisition II Complete 7/1/22 John John M Sales M Sales I c. !Zoning Approval I Complete John M Sales I d. jSlte Plan Approval I Complete John M Sa les I I I 2. JFinanci,w I I Ia. ,Construction Loan I I I I I. Loan Appllcatlon ' 4/1/22 John M Sales I II. !Conditional Commitment I I iii.l Firm Commitment I I 5/1/22 John M Sales Jb. Permanent Loan - First lien I I Ii. ILoan Application 11 In process John M Sales Iii. !Conditional Commitment I I liii.lFirm Commitment I I 5/1/22 John M Sales Ic. IPermanent Loan-Second lien I I I Ii. !Loan Application tI I Complete John M Sa les I Iii. !Conditional Commitment I I I /iii.I Firm Commitment I I Jd I other Loans & Grants I I I I II. !Type & Source, List • Complete John M Sales I I Iii. !Application I I I IIii.I Award/Commitment I I I I I ~ I I 2. IFormation of owner Complete John M Sales I I I I I I I 3. JIRS Approval of Nonprofit Stalin I I I I I I I 4.1Oming and Transfer of Property to Owner 7/1/22 John M Sales I I I I I I I 5. IPlans and SpecHicatiom, Workl,w Drawings I I I I 4/1/22 John M Sales I I 6. JBulding Pennit Issued by Local Govemmen1 6/1/22 John M Sales I I I 7. Start Comtruction I I 7/15/22 I John M Sa les I I I I I I I I I I 8. IBegin Lease-up I I 7/15/2 3 John M Sales I I I I I I I I 9. JComplete Construction I 7/15/24 John M Sales I I I I I I I 10. Complete Lease-Up I 10/15/24 John M Sales I l I I I I I 11. O'ecit Placed in Service Date I 10/15/24 John M Sales - • Experience -- Provide a summary of similar activities completed by the organization and project team. While CRHA is gaining valuable e xperience with d eveloping the Cres ce nt Ha lls and South Fi rst Phase One properties, they also have extensive e xpe ri e nce managing their po rtfolio of properties. CRHA has asse mbled a team of development e xperts to complete the re developme nt effo rts including Riverbe nd 8 Development, Castle Development Partners, Arnold Design Studio, BRW Architects and Virginia Community Development Corporation to coordinate the redevelopment of public housing. The most important experts that are leading this effort are the residents of public housing and the leadership and commitment of PHAR. Residents know best how to design their communities for comfort, cohesion and safety, with the result of better long-term outcomes for property maintenance and neighborhood stability. Riverbend Development has over a decade of experience in completing multifamily housing and commercial developments. Castle Development Partners have successfully completed numerous LIHTC and market rate developments throughout Virginia, North Carolina and Maryland. 6 staff members from Riverbend and Castle are working with CRHA on their redevelopment efforts. Riverbend Development and Castle Development Partners Multifamily Housing Project Portfolio: • Brookhill Apartments, Charlottesville, VA, budget $68 million, 316 market rate units, completed in 2019 • New Hill Place Apartments, Holly Springs, NC, budget $49 million, 288 market rate units, completed in 2019 • Adams Crossing Phase 1, Waldorf, MD, budget $33 million, 192 LIHTC units, completed in 2014 • Adams Crossing Phase 2, Waldorf, MD, budget $16 million, 72 LIHTC units, completed in 2017 • Beacon on 5th, Charlottesville, VA, budget $40 million, 241 market rate units, completed in 2017 • Avemore Apartments, Charlottesville, VA, budget $61 million, 280 market rate units, under renovation • Holly Tree Apartments, Waldorf, MD, budget $17 million, 144 market rate units, under renovation • Capacity- Provide a detailed description to demonstrate the applicant's ability to complete this project within 24 months. South First Phase 2, as noted in the attached schedule, will commence construction in the 4th quarter of 2022. Once under construction, we anticipate the project to take approximately 24 months to construct. The primary reason for this duration is the commitment by CRHA to prevent displacement of residents during the construction process and ensure they can remain in their existing home until their new home is complete. CRHA and Affordable Housing Group LLC have hired the Downey & Scott team to manage the construction process and hiring of a contracting team as the Owner's Representative. • Metrics - Provide a detailed description of the metrics used to measure success. For CRHA, the measurement and metrics of success are twofold. The first and most essential metric of success is- has the process been empowering to residents. The Resident Design process was deeply involved for South First Phase Two, with over 700 hours of resident input, design and education. As a result, residents will be moving into a neighborhood and a home of their own design with the amenities that are important to them and their families. The second measure of success is the creation of deeply affordable units for those who are most vulnerable in our community that match the resident design. South First Phase Two includes units that are 100% affordable to current residents of public housing and other members of our community in need of affordable options that do not exist anywhere in Charlottesville today. 9 Authorization: Organization Name: Charlottesville Redevelopment and Housing Authority Project Title: South First Phase Two l,~J~o~h~n~S~a~le~s_ _ _ _ _ _ _ _ _ _ _ _ _ certify that I am authorized to (Authorized Organization Official) apply for funding from the City of Charlottesville. I certify that all information contained herein is accurate to the best of my knowledge. 2/17/22 Signature Date John Sales Executive Director Print Name Title 10 South 1st Street Phase II Project Sponsor CharlotteSYil!e Redevelopment and Housinc-Authority Community Charlottesville, VA Sources Available On!y From C:.sh Soft Debt CF Payment Start Payments Per Annual Debt Asa%of Asa%ofTota! Sources Amount Interest: R.rte Interest On!y? Nonrecourse? Flow? Priority %ofCF %CF Flip• Date Amortization Term Year Service Asa%ofDebt Equity Capitalization Debt Hard Debt 1 VHDASPARC/REACH 9,500,000 0.50% No Yes 8/1/24 30 30 12 341,075 34.52% ·.·.·.·.· . . . . .. 22.04% 2 DHCD(VCI-HOME) 2,000,000 y~ Yes )!)) 0.50% ::::::::::l:::::::::::::::11::::::::::::1: 8/1/24 0 30 12 10,000 7.29% 4.64% 3 DHCD (NHTF) 400,000 0.50% Yes Yes 8/1/24 0 30 12 2,000 1.45% 0.93% 4 DHCD (HIEE) 2,000,000 0.00% Yes Yes 8/1/24 0 30 12 0 7.29% 4.64% Soft Debt 5 Deferred Developer Fee 559,643 0.00% No Yes Yes 1 100.00% 100.00% l/l/23 30 2.04% 1.30% 6 CRHA (Seller Note) 4,730,000 2.07% No Yes Yes 7 CCDC (City ofCharlottesvillegt 3,000,000 0.00% No No Yes ' 3 100.00% 100.00% 100.00% 100.00% 1/1/23 1/1/23 30 30 17.24% 10.93% 10.97% 5.95% 11:lllllli 3 CCDC (Affordable Houslne: Opp 4,000,000 0.00% No No Y5 4 100.00% 100.00% 1/1/23 30 14.58% 9.28% 9 CCDC {PDC Grant) 500,000 0.00% No No y" 5 100.00% 100.00% 1/1/23 0 30 0 1.82% 1.16% #II CCDC(CAHF) 750,000 0.00% 0.00 No Y5 6 100.00% 1/1/23 0 30 0 2.73% 1.74% Total Debt 27,439,643 100.00% 63.66% Equity 1 GP Interest 100 0.00% 0.00% 2 LIHTCEquity 15,662,434 100.00% 36.34% 3 State HTC Equity 0.00% 0.00% 4 Federal HTC Equity 0.00% 0.00% 5 EnergyCredltEquity 0 0.00% 0.00% 6 Grantl 0 0.00% 0.00% 7 Grant2 0 0.00% 0.00% s Grant3 0 0.00% 0.00% 9 Construction Period CF 0 0.00% 0.00% ## MM Contribution 0.00% 0.00% #II OtherEquity2 0.00% 0.00% Tot.11 Equity 15,662,534 100.00% 36.34% Other 1 - '- 3 - Total Other Source 0.00% 0.00 0.00 0.00 0 0 0.00% 0.00% 0.00% Total Sources 43,102,177 50%Test: Tax Exempt Bond 1 4% Credit Basis Acquisition #N/A ShortTerm Bonds 0 4% Credit Basis Rehab #N/A Tax Exempt Bond 3 0 No Credits- Depree/able #N/A Tax Exempt Bond 4 Total Tax ExemptSOurces Q 0 Land Total Denominator = #N/A 50% Test Result #N/A 11 2/16/22 0 g O g oocioooqoooooooooooooooooooooooooooooooooO " 0 O :'.; ~ ::} 0000000000 00000000000000000000000000000000000000000 00000000000000000000000000000000000000000 0000000000 00000000000000000000000000000000000000000 0000000000 00000000000000000000000000000000000000000 0000000000 00000000000000000000000000000000000000000 0000000000 00000000000000000000000000000000000000000 ~~~~~~~~~~~~gggggggggggggggggggggggggggg~ ~~~mm~MMNNrlcicicicicicicicicicicicicicicicicicicicicicicicicicicicici~ ~ 00000000000000000; N ''''''''''''''''''i O O 0 O O 0 O O 0 0000000000 0• M "l."l. ...., N N • D 0 < D 0 oooooooooooi ~0000~- < 000000000001 < oooooooooooooooooooooooooooooooooooo•oooooooooooi i < oooooooooooi" < oooooooooooi < 000000000000000000000000000000000000 oooooooooooi i oooooooooooooooooooooooooooooooooooo•oooooooooooi < " 0 " < oooooooooooooooooooooooooooooooooooo•oooooooooooi < ooooooooooojf < oooooooooooi City of Charlottesville Affordable Housing Fund (CAHF) Application (all items must be completed) Applicant Information Tota l Amount ofCAHF funds requested: $__4~3'--"5=0~0~0'---- - -- - -- - -- - Check Tier Amount of Level of Typical Households Served Applying for CAHF funds Funding Amount of requested by Funding Tier Available X $75,000 Tier 1 $375,000 Serving households with incomes up to 30% of Area Median Income (AMI) X $225,000 Tier2 $225,000 Serving households with incomes up to 60% of Area Median Income (AMI) X $135,000 Tier 3 $150,000 Serving households with incomes up to 80% of Area Median Income (AMI) Organization name: Habitat for Humanity of Greater Charlottesville Contact name: Dan Rosensweig Title: President & CEO Address: 967 2nd St. SE, Charlottesville, VA 22902 Phone: 434-293-9066 E-mail: drosensweig@cvillehabitat.org Project Information Project Name: Equity Homeownership Initiative 2022 Project Location: Flint Hill (lot acquisition) and other city locations (enhanced down payment for very-low income homebuyers) Purpose of requested funding: (check all that apply) _x New Construction _x Acquisition _x Rehabilitation Rent Subsidy Operating/Administration _x Other: Enhanced Down Payment Assistance for families at 30% or less of the Area Median Income (AMI) Project type: (check all that apply) _x Multi-family _x Single family (detached) __x Single family (attached) __x Rehabilitation __x New Construction __x Acquisition __x Other: Enhanced Down Payment Assistance for families at 30% or less of the Area Median Income (AMI) 2 Income restrictions on project (indicate number of units meeting each Area Median Income (AMI) category: Because Habitat families are able to select the homes they buy, the numbers below are estimates based on the AMI of families currently working through homeowner education and sweat equity requirements. Additionally, because we work with families to increase their incomes, their income at acceptance into the program and their income at closing will likely differ. -~5__ Incomes less than 30% AMI 5 Incomes between 30% and 40% AMI Incomes between 40% and 50% AMI -~!__ Incomes between 50% and 60% AMI Incomes between 60% and 80% AMI Unrestricted units (>80% AMI) 12 Total Units at Flint Hill 5 Units purchased by families via enhanced DPA 17 Total* *Please note that there may be some overlap if families supported by enhanced DPA choose to purchase at Flint Hill Term of Affordability (indicate number of units meeting each affordability term): Less than 2 years 2-5 years 5-10 years 10-15 years 15-20 years 20-30 years 17 more than 30 years 17 Total Units 3 Project Proposal Please provide the following information as separate attachments to the application. I. Project Description Provide a description ofthe proposed project. Include: project fJJJe and location, short- and long-term goals, the population (5) to be served. Discuss plans for accessibili1J1/adaptability, energy conservation and/or any green building components. The Equity Homeownership Initiative 2022 is an initiative of Habitat for Humanity of Greater Charlottesville, a nonprofit corporation whose mission is to "bring people together to build and rebuild homes and communities while catalyzing new pathways to safe, decent, and affordable housing." Habitat's 2017-2022 strategic plan-a product of intensive listening to local, low­ income residents--calls for Habitat to provide and/or catalyze ladders of housing opportunities across the housing needs spectrum. The Equity Homeownership Initiative 2022 will support acquisition of land in the City of Charlottesville for new affordable home construction, and targets families at the very low- and low-income levels who have experienced generational poverty and need a "hand up" to access safe and affordable homeownership. Access to affordable housing will in turn generate economic opportunities for families and future generations that serve to address the long-term inequities in wealth among Charlottesville's residents. The Equity Homeownership Initiative 2022 supports two primary long-term goals: (a) Increase the number of affordable homeownership housing units in the City; and, (b) Increase the capacity of very low- and low-income families to access affordable homeownership. CAHF funding is requested in order to achieve the following short-term goals: (1) assist in land acquisition land that would support 12 affordable housing units, and (2) provide down payment assistance to very low-income families (at or below 30% AMI) who are eligible for homeownership. Short-Term Goal (1): Lot Acquisition-Requested Funding $360,000 ($30,000/unit x 12 units). Funding is requested to support lot acquisition and/or paiiial site development for 12 affordable townhome units in the new Flint Hill neighborhood of the City. This funding (the local match) is necessary to leverage two sources of state and federal funding (Affordable and Special Needs Housing-ASNH -- and Self-Help Homeownership Opportunity Program - SHOP). Without a local match of at least 25%, these subsidies - part of the capital stack necessary to sell homes affordably to very low- and low-income homeowners - are unavailable to Habitat and thereby the project will likely be unfeasible. 4 The homes will be sold to homebuyers earning between 25-60% of the Area Median Income (AMI). Habitat homebuyers engage in financial coaching and homebuyer education, provide $2,000 for the down payment, and invest a minimum of200 hours of sweat equity toward the construction of Habitat homes (plus an additional l 00 hours for each adult who will be living in the home). For an entire year prior to purchase, Habitat home buyers meet monthly for Community Conversations--an opportunity to discuss shared values, hopes, and concerns. These conversations are guided by Habitat staff with a focus on building bridges between often diverse families, identifying and strengthening community assets, and working towards a shared identity that results in a healthy, engaged neighborhood community. Habitat's unique mortgage structure enables low-wealth homebuyers to purchase at an affordable price with monthly housing payments that do not exceed 23-28% of household income. Because Habitat homes are heavily subsidized, our equity sharing rules are designed to protect the investment of Habitat and other funders, assure the homes remain part of the City's affordable housing stock long term (40 years), and comply with City Housing Policy #1 regarding resale of homes as part of"people-based initiatives." Habitat originates a zero-interest first mortgage at an amount based on the homebuyer's ability to pay, with junior notes which are either deferred (and thus repaid in full if the home sells) or forgivable over time. A final forgivable mortgage provides extra incentive for families to remain in their homes long term and entitles Habitat a right of first refusal to repurchase the property for a period of 40 years if a homeowner chooses to sell. This allows Habitat to rehab the property to resell to another low-income family. This lending and legal structure assures that the homes are affordable at purchase, retain affordability mechanisms for at least 40 years, and, most importantly, enable homebuyers to build significant equity in their homes, providing economic mobility while also allowing for long-term affordability. To support accessibility and adaptability, all Habitat homes incorporate Universal Design Standards with elements such as zero-step entry and a first-floor bedroom with accessible bathrooms. Homes are all also built to at-least Energy Star 3.0 standards featuring highly energy-saving HVAC systems, windows and doors, energy-star appliances, insulation, and water heaters. Programmable thermostats, ceiling fans, and low-flow faucets and showerheads also minimize the environmental impact of these new homes. These features reduce the energy costs for the homeowners, thus enhancing long-term affordability while reducing adverse environmental impacts. CAI-IF funding will enable 12 families between 25% and 60% of the AMI to purchase homes, creating long term housing stability for the families and generating wealth via eaming of home equity. Each mortgage payment made by a family serves as "monthly savings" and is matched by a reduction in the amount owed on their final forgivable mortgage. Additionally, by staying in the home, families earn reduced or forgiven amounts on trailing mortgages and also increase their share of appreciation in value of the home. Although funds are sought from each of the three Tiers, including 80% and below of AMI, all proceeds from this award will be used to serve 5 homebuyer below 60% and below 30% AMI, in alignment with the RFP's statement that projects serving lower affordability levels will receive stronger consideration. Short-term Goal (2): Down Payment Assistance----Funding Requested $75,000 ($15,000/family for five families). Funding is also requested for down payment assistance for families at or below 30% of AMI when they enter the Habitat program. Habitat is requesting an average of $15,000 for five families. Habitat homebuyers are highly motivated to accomplish a life long goal of owning a home. In examining our financial risk data, we found that Habitat homebuyers on the lower end of the AMI scale had no higher default rate than other purchasers largely due to the extensive individual financial counseling provided and the fact that, as the long term note holder, we work in partnership with families who might struggle after closing instead of immediately working toward foreclosure. The intensive financial coaching Habitat staff provides for families includes personal finance, clearing issues surrounding credit, reducing debt, decreasing spending and improving savings, avoiding predatory lending and understanding fair housing policies. Because each Habitat motigage is based on the family's ability to pay, their payment is pro-rated to their income preventing them from being forced into a cost-burdened housing situation. On the back end, Habitat retains control of the notes so that we can work with families throughout the duration of their mortgage term should they need temporary forbearance, and support in addressing any issues they may have. Habitat's overall default rate is roughly I%, or less than the national average for all homes sold. In light of the critical need for a pathway to economic and housing securing for lower income families, Habitat has changed its selection and underwriting criteria to advantage residents at the lowest end of the AMI scale. "Housing need" is measured by tiered type(s) of need presented at the time of application. This new system prioritizes offering our services and suppo1i to local residents needing deeper subsidy due to earning a lower percentage of AMI and experiencing many years living locally in poverty. Although Habitat continues to offer core homebuyer services to all residents earning between 25%-60% of AMI, the new scoring criteria shifts our demographic toward those at the lower end of our scale. Although more subsidy is required, this shift addresses a deep and damaging racial wealth gap among residents in the City of Charlottesville. This source of CAHF funding will be available to residents at or below 30% of area median income as down payment assistance. Additionally, in response to the extraordinary local racial wealth gap, Habitat Charlottesville created the "Pathways to Housing" program through which we engage low-wealth communities 6 and families through targeted outreach. Through this work, we identify and build relationships with otherwise "hard to serve" families earning below 25% AMI who often have crippling debt burdens. When these families join the Pathways program, we provide wrap around assistance, helping them create a pathway toward better economic outcomes and eventually homeownership. Enhanced down payment assistance is especially important in helping these Pathways families become homeowners. CAHF funding would enable five families who came to us at or below 30% of area median income to purchase homes, creating long term housing stability and wealth generation via home equity. Each mortgage payment made by a family serves as "monthly savings" and is matched by a reduction in the amount owed on their final forgivable m01tgage. Additionally, by staying in the home, families earn reduced or forgiven amounts on trailing mortgages and increase their share of appreciation in value of the home. Over time, with patience and perseverance, Habitat homebuyers build a bridge out of poverty for themselves and for generations to follow. 2. Demonstration of Need Describe how the project contributes to the City ofCharlottesville's housing goals. The Eqnity Homeownership Initiative 2022 supports the City of Charlottesville 2025 goals for affordable housing and the housing goals detailed in the Comprehensive Plan of the City of Charlottesville, November 15, 2021. Released in February 2010, 711e City ofCharlottesville 2025 Goals for Affordable Housing clearly describes the deficit in affordable housing for the residents of Charlottesville and the Greater Charlottesville area. As noted in the report, the deficits are particularly significant for the very low- and low-income families who struggle to find affordable housing and further struggle to pay mortgages and rents in order to retain housing. According to the report, almost half of all households in the City spent more than 30% of their income on housing costs including utilities; for those spending more than 50% of their incomes on housing costs, most had incomes below 50% of AMI (City ofCharlottesville 2025 Goalsfor Affordable Housing, p.4). Since the 20 IO report was released, the deficits in affordable housing have continued to rise and is reported at "crisis proportions." In the County of Albemarle and City of Charlottesville the gap in affordable homeowner units is projected to be 2,589 by 2040 (Thomas Jefferson Planning District Commission, 2019). For many renters, costs are too high with monthly payments averaging $1,384 in today's market. Since 2012, the cost to purchase housing in Charlottesville has risen by an average of 5% per year with the median housing cost now exceeding $400,000. Further, the gap between the wealthy and those at the lower end of wealth has been increasing in recent years. Since 20 I 0, "the number of families earning over $150,000 has increased by 96% while the number of families earning less than $35,000 has increased by 10% (Charlottesville Low-Income Housing Coalition, 2020, p.7). According to the Housing Coalition report, 25% of Charlottesville families did not earn enough to meet the costs of living and working (Charlottesville Low-Income Housing Coalition, 2020, p. l). As a result of these inequities, 7 "affordable and decent housing remains out of reach for many residents, especially for Black communities" (Charlottesville Low-Income Housing Coalition, 2020, p.1 ). The Equity Homeownership Initiative 2022 offers solutions to address these deficits. The project activities increase access to affordable housing for families with low incomes by increasing the number of affordable housing units available, and supporting costs of access through assistance with down payments for very low-income aspiring homeowners. At every decision point in the process-from home design, to financing, construction, and closing­ community members who are representative of the target population are involved. The project directly contributes to Goal #3 of the City's affordable housing goals that states: "Increase the ratio ofsupported affordable units to 15% oftotal housing units by 2025" (City of Charlottesville 2025 Goals for Affordable Housing, p.3). Further, the project supports the Charlottesville Affordable Housing Plan and its policies that mandate funding to target the greatest need and support initiatives that "preserve and expand homeownership opportunities for residents who earn less than 80% of Area Median Income" (See Policy I, Current City of Charlottesville Policies Regarding Affordable Housing.) The project also directly supports the City's housing goals as presented in the Comprehensive Plan of2021: • Goal 1. Funding Commitments, Strategy 1.2. Prioritize city funding for those with the greatest need and attach funding awards to requirements for community representation in processes, duration of affordability, and leverage of non-public funds. • Goal 2. Diverse Housing Throughout the City, Strategies 2.1, 2.8 where funding decisions encourage mixed-use and mixed-income neighborhoods and housing developments throughout the city, and encourage the development of affordable housing to take a form similar to nearby market rate housing in design and other physical features ... allowing affordable units to blend into existing neighborhoods. • Goal 7. Subsidy Programs, Strategies 7.7, 7.10 where city subsidy programs are aligned with community-defined priorities and increase the impact of public spending, including down payment assistance to provide a greater level of assistance and serve a larger number of households, and collaboration with developers to build and renovate affordable single-family housing in existing neighborhoods. 3. Demonstration of Equity-Describe how this project demonstrates and promotes equitable housing needs and economic opportunity for low-income residents in the City ofCharlottesville. Charlottesville City sits nestled in the shadow of the Blue Ridge Mountains with a rich history of commitment to the residents of its city and the Greater Charlottesville Area. Like most southern cities, however, this commitment has not always reflected an equitable distribution of opportunity for all members of its community. Access to affordable housing- and in particular, to homeownership -- is one area in which, both historically and in 2022, the City recognizes 8 significant inequalities continue to exist among community members of different races and at different economic strata. While the City's Affordable Housing 2010 report notes that deficits in affordable rental and home ownership are each estimated at 3,000-4,000 units, this deficit has increased since that time. The Economic Policy Institute's 2015 comprehensive study on income inequality indicates that Charlottesville ranks among the highest in the country for wage gaps (Charlottesville Low­ Income Housing Coalition, February 2020). Since 2010, the number of families earning over $150,000 ... increased by 96% while the number of families earning less than $35,000 has increased by IO percent. Among available housing, higher income families are displacing lower income families competing for an increasingly diminishing market of affordable housing units. The 2021 Orange Dot Report showed that 22% (n=l,918) of Charlottesville's families do not make enough money to afford the basic necessities of life-food, shelter, clothing, utilities--and costs associated with working. Of these families, 55% (n=l,068) earn between $15,000-$35,000 annually, which is not enough to even cover their housing costs alone (Orange Dot Report 4.0, January 2021; Charlottesville Low-Income Housing Coalition, February 2020). A core directive of Habitat's is to address these inequities by increasing access to affordable homeownership, particularly for those who are at the lower wealth end of the economic spectrum. Habitat believes that to do this well and with the greatest success, the voices of those who are most affected must be an integral pati of the process. In 2021, Habitat for Humanity of Greater Charlottesville was certified by the US Department of Housing and Urban Development as a Community-Based Development Organization (CBDO) based on its extensive outreach into low income communities, its partnership homeownership model, its leadership in the use of Asset Based Community Development in redevelopment projects, the diverse composition of its board, and its nationally-recognized models for engaging and elevating low-wealth community members to leadership positions. One example is its formal Homeowner Advisory Council comprising I 00% of individuals who have purchased homes via our homebuyer's program. This group of 17 members, co-chaired by Habitat Partner Family Homeowners, meets monthly to guide Habitat's programming, advocacy, and home and land design work. Fmiher, this project supports the City's vision of achieving a housing market that is affordable, healthy, high quality, accessible to resources, and above all, equitable, meeting the needs of underserved communities to foster a good quality of life for all (Comprehensive Plan, City of Charlottesville, VA, 11/15/2021, p.45). This project addresses the issue of inequity within the housing market by promoting increased access to homeownership for very-low and low-income families and ensuring long-term affordability. It does so guided by the insight and desires of partner families. There is strong evidence that home ownership is one of the greatest means to build wealth for families and future generations. Providing low income families with the means to own a home gives them a "hand 9 up" along the economic strata, eventually reducing the income wealth gap and promoting a more equitable landscape of housing opportunities. Habitat's mixed income model is a bold response to more than a century of largely intentional residential segregation and provides mobility and opportunity for people from all walks of life to live together and to grow and learn from each other. CAHF funding has not been available for homeownership for three funding cycles and therefore, this request addresses a gap in home equity funding in the City's recent portfolio. 4. Project readiness Flint Hill received its rezoning approval two years ago. Habitat has agreed on a draft contract to develop these lots pending City funding. In total, Habitat will build 16 units, with acquisition of the first four units supported by the balance of a previous CAHF grant. CAHF funding is critical for this project for three primary reasons: I. The 12 remaining units need City funding to close a gap in the budget. 2. Without City Funding (the local match), Habitat will be unable to access certain State and Federal funding, specifically Affordable Housing and Special Needs (ASNH) and Community Development Block Grant (CDBG) which are leveraged with local government matches. 3. These additional subsidies, which, when leveraging a local match, can bring in up to $ l 20K./home subsidy from outside the City enabling Habitat to build and sell the homes affordably. These additional subsidies have enabled Habitat to push its AMI down to an average of 34% AMI as well allow us to continue to build and sell homes affordably during the COVID price spikes. CAHF Funding is the critical component remaining for this project to move forward. We expect these units to be completed by 2024 and are planning a hybrid build (utilizing the services of a general contractor) to expedite the build. 5. Project Budget Flint Hill 12 Units/Lot Acquisition REVENUE CAHF $360,000 ASNH $720,000 SHOP $144,000 Private Fundraising (donors, Store proceeds, etc) $496,000 Partner Family First Mortgages $1,200,000 IO TOTAL 2,920,000 EXPENSES Lot Acquisition $420,000 Site Work $100,000 New Home Construction $2,400,000 TOTAL $2,920,000 Down Payment Assistance For 5 Families @ +/-$15,000 $75,000 per family Down Payment Assistance (Sample Mortgage Structure for Family at 25% AMI) Appraised Value $275,000 Final Forgivable Mortgage $32,000 Habitat Deferred Mortgage $51,500 Trailing Deeds, forgivable terms vary (e.g. ASNH) $110,000 CAHFDPA $15,000 First Mortgage Amount (factored at 70%) $66,500 6. Project Schedule Flint Hill: Activity Time Frame Partner Family Applications and Selection Complete Partner Family Homebuyer Education and Sweat Equity Under way Contract Ratification for Purchase of 12 lots Pending. Awaiting results of CAHF application Closing on Purchase of 12 lots Pending. Awaiting results of CAHF application, contract ratification and final plat 11 Lot Delivery Expected 2023 Home Construction begins Expected third quarter of 2023 Homes Close Spring/Summer 2024 Enhanced DPA: Activity Time Frame Partner Family Applications and Selection Ongoing Partner Family Homebuyer Education, Financial Rolling Counseling and Sweat Equity Closing September 2022 through June 2024 (Homes available for selection at three sites) 7. Experience Habitat for Humanity of Greater Charlottesville is a leader in affordable housing on a national level. Founded in 1991, our affiliate is the flagship affordable homeownership program in Central Virginia and has enabled almost 300 families to achieve their dreams of homeownership, enabling them to earn collectively an estimated $85,000,000 in home equity creating a permanent bridge out of poverty. By building an average of 18 homes/year, we are the most productive Habitat affiliate for a service area of this size in the Country. Since Habitat's founding, we have also developed nine mixed-income neighborhoods, creating diverse and sustainable communities without gentrifying. For instance, Burnet Commons was a unique partnership among Habitat, the City, and a private developer that converted an old city dumping ground into a community oftownhomes and single-family detached homes. Our scattered site builds have added affordable homes in a number of census tracts throughout the City, including many that had previously had fewer than 10 deed-restricted affordable homes thereby providing affordable opportunities in homogenously wealthy areas. In the last two years, we have expanded our reach in Louisa and Greene Counties, and are increasing oppo1iunities for home ownership in these counties for low-income families. We have also undertaken the transformation of two mobile home parks -- one located in the City of Charlottesville and the other just south of Charlottesville in Albemarle County. In 2010 Sunrise Trailer Park was transformed from a deteriorating and under-threat mobile home park to a community of 70 mixed income housing units, a community center and community gathering space. We are now redeveloping Southwood, a mobile home park in Albemarle County of 317 12 trailers housing approximately 1,300 individuals to create 1,000 housing units, with 650-700 of them affordable rentals and homeownership. 8. Capacity Charlottesville Habitat is a nonprofit corporation governed by a 16-member Board of Directors and an Advisory Council with a 30-year history of addressing the affordable housing needs of the Greater Charlottesville Area. Together with the Chief Executive Officer, the Board sets the strategic vision and provides fiduciary oversight. Our annual goals are consistently tied to key City documents, such as the City of Charlottesville 2025 Goals for Affordable Housing, the Charlottesville Affordable Housing Plan, and the Charlottesville Comprehensive Plan. In 2017, we adopted a new strategic plan that called for us to increase our annual building capacity to more than 40 homes/year so that we can maintain building momentum at Southwood while also building 20+ units/annually in the City and in other surrounding jurisdictions. Since that time, we have nearly completed a$! SM capital campaign, increased our internal capacity to prepare families, augmented and improved our build staff, have begun homebuilding activities at Southwood and have increased our borrowing capacity such that we will be able to reach this level of production provided we are awarded local funding that will match leveraged State and Federal funds. Habitat's core staff of 50 experienced, knowledgeable, and committed individuals is led by a strong leadership team with many years of experience in affordable housing, land planning and development, finance and accounting, law, nonprofit management, and fundraising. In addition, staff reflects a diversity of cultures and educational backgrounds that provide a rich environment for pioneering creative solutions to address the City's urgent needs for affordable housing. Habitat's philosophy is one of community engagement. We work with a network of more than 2,000 volunteers, including individuals and families who will be future home owners, business pmtners, and civic and religious leaders. Together, we work to ensure all individuals have the opportunity for safe, affordable, decent housing. Habitat's efforts are partially self-sustaining. Partner family mortgages allow us to advance our next innovative building projects when combined with assistance from state and federal grants, such as CDBG, HOME, and SHOP, as well as gifts from individual donors, private foundations, and local government allocations. Our Habitat Store, generously supported by the community, has provided up to $450,000 annually in net revenue to support our projects. We have a strong record of accomplishment in successfully completing projects and meeting goals. We use an active listening, asset-based approach in neighborhood development. Our neighborhood engagement begins before we break ground where habitat homebuyers meet monthly for Community Conversations, an opportunity to discuss shared values, hopes, and concerns, for an entire year prior to purchase. Children participate as well, enabling them to 13 build friendships before "moving in next door." Existing neighbors around the build sites are also invited to join in the conversations and volunteer on the construction sites. We work hard to build neighborhoods first, and then begin building homes. 9. Metrics Metrics for the Equity Homeownership Initiative 2022 include: • Purchase of land for 12 townhome units by Summer 2022 • Construction of 12 homes sold to homebuyers between 25-60% AMI by June, 2024 • Sales of homes supported by enhanced down payment assistance to 5 very low-income homebuyers who came to us at or below 30% AMI. • Leverage of~ IOx City investment with other funding sources (including net mortgage amounts, private fundraising, Store proceeds and Federal/State funds) • Equity earnings potential of ~$SM for 17 local, low-income families. 14 Authorization: Organization Name: Habitat for Humanity of Greater Charlottesville Project Title: Equity Homeownership lnitlatlve 2022 I, -~D=an=R=o=se=n=s~w~e=ig~_ _ _ _ _ _ _ _ _ _ _ certify that I am authorized to apply (Authorized Organization Official) for funding from the City of Charlottesville. I certify that all information contained herein is accurate to the best ofmy knowledge. /-' / /_~ /---~ 21nno22 Signature Date Dau Rosensweig President & CEO, Habitat for Humanity of Greater Charlottesville Print Name Title 15 Building a future where all people with developmental disabilities and their families experience their best lives possible. The Arc.. of the Piedmont Brenda Kelley, Redevelopment Manager Officers Office of Community Solutions Kate Barrett City of Charlottesville President Charlottesville, VA 22901 JudySmith Vice President Dear Ms. Kelley, Rives Bailey I am pleased to submit an application on behalf of the Arc of the Treasurer Piedmont for the use of Charlottesville Affordable Housing Funds to replace the gas furnace at 222 Shamrock Rd. Carla Hallman Secretary This is a group home operated by the Arc ofthe Piedmont for individuals with developmental disabilities, all ofwhom are at or Board of Directors below the 30% of AMI. Rives Bailey M . Eddie Pinson, CIC The Arc of the Piedmont is a 501 (c ) 3 entity and has been in Flefb.Stewar-t;-Ph:1r. operation for nearly 60 years. If you need any additional Carla Hallman inf01mation please do not hesitate to contact me. Shannon Copeland -Bittba fit-Barrett-­ Judy Smith Kate Barrett Arn,( La,l(.fe, John Santoski, M.S. Executive Director Services Group Home In Home Sponsored Residential Day Support Education & Advocacy 1149 Rose Hill Drive, Charlottesville, VA 22903 Phone: {434) 977-4002 I www.arcpva.org I Fax: {434) 977-7864 Affiliated with The Arc US and The Arc Virginia City of Charlottesville Affordable Housing Fund (CAHF) Application (all items must be completed) Applicant Information Total Amount of CAHF funds requested: Check Amount of CAH F Level of Typical Households Served Tier funds requested by Funding Amount of Applying Tier Funding For Available ,11, Tier 1 $375,000 serving households with incomes up to ✓ b/ 7 39. t)O 30% of Area Median Income (AMI) Tier 2 $225,000 serving households with incomes up to 60% of Area Median Income (AMI) Tier 3 $150,000 serving households with incomes up to 80% of Area Median Income (AMI) Organization name: )te 1/,,;e, 1 ~ Med1,,,_,,,~ Contact name: V?J~,V ~-1-oSM · Title: {:;ee:,,J;ue, GY,rec.fel. . . OrganizationAddress: //~9' _f7a.se J/,// D. {!AQ)/ol/eso,ile, U/J ,;}~9()3 Phone: .t/31-9) 7 ➔ootJ., ,(II;}._ Email:. ~s.1c/@MC!./ua. o./JJ 11 Project Information Project Location: c?(dd S/2.<1m-1ot!.k'. N:!> CAM/&-Resd,lk-1 U-4 ci;J.9tJ3 Purpose of requested funding: (check all that apply) New Construction _ _ Acquisition Rehabilitation _ _ Rent Subsidy _ _ Operating/Administration ____L_ Other: fy~e-x.::t- Project type: (check all that apply) _ _ Multi-family _ _ Single family (detached) _ _ Single family (attached) Rehabilitation New Construction _ _ Acquisition / Other: fe./J~ e.,?(£ 12 Income restrictions on project (indicate number of units meeting each Area Median Income (AMI) category: ✓ Incomes less than 30% AMI Incomes between 30% and 40% AMI Incomes between 40% and 50% AMI Incomes between 50% and 60% AMI Incomes between 60% and 80% AMI Unrestricted units (>80% AMI) Total Units Term of Affordability (indicate number of units meeting each affordability term): less than 2 years 2-5 years 5 -10 years ✓ 10 - 15 years 15 - 20 years 20- 30 years more than 30 years Total Units 13 Proiect Proposal: Please provide following information as separate attachments to the application: 1. Project Description -- Provide a description of the proposed project. Include: project type and location, short and long term goals, the population(s) to be served. Discuss plans for accessibility/adaptability, energy conservation and/or any green building components. 2. Demonstration of Need -- Describe how the project contributes to the City of Charlottesville's housing goals. 3. Demonstration of Equity- Describe how this project demonstrates and promotes equitable housing needs and economic opportunity for low-income residents in the City of Charlottesville. 4. Project Readiness -- Provide evidence of: organizational experience and capacity to manage the project; pursue and acquire land, site control, required zoning variance and permitting (if applicable); financial commitments for the projects; community engagement plan (if applicable); resident relocation plan (if applicable); plans for preparation and coordination of necessary public meetings (if applicable). 5. Project Budget -- Provide a detailed description of the proposed project budget showing sources and uses and amounts of additional funding. 6, Project Schedule -- Indicate the proposed project schedule; timing of completed SAUs; pre- development, anticipated pursuit and acquisition timeline, site control, zoning approval, financing and construction milestones (if applicable) to project completion. 7. Experience -- Provide a summary of similar activities completed by the organization and project team. 8. Capacity- Provide a detailed description to demonstrate the applicant's ability to complete this project within 24 months. 9. Metrics - Provide a detailed description of the metrics used to measure success. 14 The Arc. of the Piedmont Project Description: Gas Furnace Replacement-Shamrock Rd. Group Home This project will replace the original gas furnace at the Arc of Piedmont's group home at 222 Shamrock Rd in the city of Charlottesville. This home was originally built and owned by the AIDS support Group and ownership was later transfened to the Arc of the Piedmont. The Arc still operates this home for individuals with developmental disabilities under a HUD agreement that ensures that the home remains affordable and serves those of low income. This home meets one of the missions of the Arc of the Piedmont which is to provide affordable housing and services to individuals with developmental disabilities. We are committed to maintaining the home for accessibility (it is all one level) and affordability. Demonstration of Need: This project helps to meet the goals of preserving one ofthe affordable homes in the city and stabilizing the housing instability faced by individuals with developmental disabilities who are also in the lowest category of affordable median income (AMI). Demonstration of Equity: By stabilizing housing for individuals with developmental disabilities who are also on fixed incomes (SSI) that places them in the lowest category of AMI, The Arc of the Piedmont continues to promote equity for those most in need who can least afford any other housing. Project Readiness: As can be seen from the attachment this project has a bid in place for the furnace replacement and is ready to be replaced upon notification to begin. Project Budget: The total project budget is $6,739.00 for the furnace replacement. Should any additional funds be required, the Arc of the Piedmont will be responsible for the additional costs. Project Schedule: This project will commence upon notification of award and notification that replacement can commence. Experience: The arc of the Piedmont has been in operation for nearly 60 years and operates group home in Charlottesville and Albemarle and Nelson counties along with day programs in Charlottesville and Louisa and Nelson County. We recently completed the purchase and remodeling of 1149 Rose Hill Drive in Charlottesville. Cii provides commercial air conditioning and heating service and has worked with the Arc for many years. They are SWaM ce11ified. Capacity: This is a small project that will be completed in days after replacement begins. Metrics: Timely completion, within budget and lower utility bills. Authorization: Organization Name: 7h /4c ~~ ~/4,d Project Title: (5!.115 rUlA1au I lip~ I, 'CJ;;iU ~ ~ / 4 , • ~~c+f certify that I am authorized to (Authorized Organization Official) apply for funding from the City of Charlottesville. I certify that all information contained herein is accurate to the best of my knowledge. =2.,/4/:;, I 7 2,, Sig Date Print Name Title 15 ... • SERVICE OF CENTRAL VIRGINIA, INC. COMMERCIAL AIR CONDITIONING & HEATING SERVICE • 24 HOUR SERVICE • i600,-8(,ll-',f, l(J 603 Rivanna Avenue • Chnrlottosvill~ . VA 22903 • (434J 9 77-5626 • Fax (434) 977 8808 February 4, 2020 Arc of the Piedmont 222 Shamrock Location Attn: Sharon Apgar Re: Replace the gas furnace Sharon, Per your request Cii Service is pleased to provide you with a quote to replace the gas furnace at this location. We will remove the existing furnace and dispose of it properly. We will install the new furnace and make all necessary connections to complete the installation. Then we will start the system and check it for proper operation. We will log the unit with all system checks. The total cost for this would be $61739.00 in material and labor. Please let us know how you would like to proceed. We look forward to working with you in the future. Please contact me if you have any questions at 434-977-5626 or 800-868-5610 and E-mail me at swalsh@cllservice.com Please visit us for news and Information at our web site at www.ciiservice.com Sincerely, CERTIF I ED S~W~ .... Cii Service of Central Virginia, Inc. s'u~ u/4&/4 ~~~~n and 1¥1 1 Minority-Owned Assistant Branch Manager Supplier Diversity Strengthens the Commonwealth by the Virginia Department of r.1inority Ousmess Enterprise The above process, specifications, and conditions are satisfactory and are hereby accepted. I understand payment terms to be net 30 days upon completlon of this project. Accepted by: _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ Date: _ _ _ _ _ _ _ _ __ www .ciiservice.cotn ,I f: , '1• • 1 • 1, 1' I' \ ", t \ • • • ,,, , •t \ I!, , , , + ' ,I , I , •, \ ,1t •• (, , •1 , I~ lj < , •,', n._: 1 ~-.• ' 1 1 11 • I 1 ,n ✓r~ A~JE ~ , V I RG I NI A H O U SIN G AWARD W I N Nm AHIP Charlottesville Critical Repair Program CAHF Application Form Febrnary 2022 Applicant Information Total Amount of CAHF fonds requested: $ 250,000 Check Tier Amount ofCAHF Level of Typical Amount of Households Served Applying Funds Requested Funding Funding Available For by Tier serving households with incomes up to ✓ $100,000 Tier 1 $375,000 30% ofArea Median Income (AMI) serving households with incomes up to ✓ $100,000 Tier 2 $225,000 60% ofArea M edian Income (AMI) serving households with incomes up to ✓ $50,000 Tier 3 $150,000 80% ofArea Median Income (AMI) Organization name: Albemarle Housing Improvement Program (AHIP) Contact name: Jen Jacobs Title: Executive Director Organization Address: 2127 Berkmar Drive, Charlottesville, VA 22901 Phone: 434-989-5282 Email: jja.cobs@ahipva.org Project Infonnation Project Name: Charlottesville Critical Repair Program Project Location: City of Charlottesville Purpose of requested funding: (check all that apply) New Construction ___ Acquisition ✓ Rehabilitation _ _ Rent Subsidy ___ Operating/Administration Other:--------------------------------- Project type: (check all that apply) _ _ Multi-family _ _ Single family (detached) _ _ Single family (attached) ✓ Rehabilitation New Construction ___ Acquisition Other:--------------------------------- Income restrictions on project (indicate number of units meeting each AMI category: 17 units Incomes less than 30% AMI 6 units Incomes between 30% and 40% AMI 8 units Incomes between 40% and 50% AMI 2 units Incomes between 50% and 60% AMI 5 units Incomes between 60% and 80% AMI 0 units Unrestricted units (>80% AMI) 38 units Total Units Term ofAffordability (indicate number of units meeting each affordability term): 21 units less than 2 years 13 units 2 - 5 years 4 units 5 - 10 years 0 units 10 - 15 years 0 units 15-20years 0 units 20 - 30 years 0 units more than 30 years 38 Total Units* *Note that because project costs average $5-10,000 per job, we estimate completing 25-50 projects. For completing the projections above, we used a mid-point of 38 units to calculate the metrics. AHIP I CAHF REQUEST I FEBRUARY 2022 2 0 AHIP tl ome Re paif Uonpr o f ,t AHIP Charlottesville Critical Repair Program Pl'Oject Pl'Oposal Section 1: Pl'Oject Description February 2022 1. PROJECT DESCRIPTION ► Executive Summary Everyone should be safe at home, and no one should have to worry about losing their home. AHIP is an independent, nonprofit Class A contractor that works year-round to deliver critical home repairs and rehabs to low-income Charlottesville residents. • AHIP is requesting $250,000 from the Charlottesville Affordable Housing Fund • Funds will provide for critical home repairs for low-income homeowners in the City of Charlottesville • Funds will enable AHIP to serve 25 to 50 Charlottesville households (with an anticipated investment of $5,000 to $10,000 in CAHF funds per project) • Funds will enable AHIP to promptly respond to emergencies and serve more city residents who call us for assistance. We will also be able to move program participants through our program more quickly and efficiently • The purpose of this work is to keep household members safe, healthier, and more secure through improving, modernizing, and preserving their home Critical repair services-which encompass emergency home repairs, energy-efficiency upgrade tasks, accessibility modifications, and critical maintenance tasks-keep city residents safe, increase their health and well-being, protect their wealth, support neighborhood investment, prevent involunta1y displacement, and preserve the city's existing affordable housing. In a time when housing and other costs are continuing to rise, incomes are failing to keep up, and there is continued and increasing pressure on Charlottesville's historically racially and economically diverse neighborhoods, preserving the affordable housing we have-the homes where people live right now and want to stay in- is essential. ► What is Critical Repair? The Charlottesville Critical Repair Program delivers emergency home repairs, energy-efficiency upgrade tasks, accessibility modifications, and critical maintenance repair tasks to low-income owner-occupied households throughout the City of Charlottesville. AHIP operates this program year­ round and, as long as there are available funds, the program rolls from year to year without stopping. Examples of home repair emergencies include: a septic line has ruptured and there is waste backing up into the house a roof that has been leaking for years finally gives out, and part of the roof collapses into the home, taking the kitchen ceiling with it a furnace dies in the middle of winter and there is no heat in the house Examples of energy-efficiency upgrade tasks include: installing attic and wall insulation replacing original windows with new high-efficiency windows replacing an old and inefficient water heater with an on-demand water heater Examples of accessibility modifications include: installing a handicap shower unit to prevent tripping and falling over a bathtub installing a chairlift building a wheelchair ramp to allow safe entry and exit Examples of critical maintenance repair tasks include: replacing a 30-year-old oven and range replacing outdated electrical receptacles and upgrading the panel box replacing a home's siding that is deteriorating and letting moisture in The people who cany out this initiative include AHIP program and construction staff, local subcontractors, local partner organizations, and skilled in-kind contributors and volunteers. For energy-efficiency upgrade projects, AHIP partners with LEAP. LEAP staff conducts energy audits and pre- and post-project inspections, helps our estimators develop scopes ofwork, and leverages funds. Where LEAP is not involved, AHIP's estimators plan any energy-related project components to LEAP standards, ensuring high-efficiency/EnergyStar-rated windows, doors, HVAC units, water heaters, and appliances. ► Program Goals Short-term goals include: eliminating dangerous deficiencies stabilizing and modernizing substandard conditions increasing home health and comfort preventing further and more expensive damage that would occur from an unaddressed issue reducing energy bills and increasing heating and cooling comfort relieving family stress over unaddressed safety hazards and housing repair and maintenance needs Long-term goals include: · prese1ving existing homes AHIP I Charlottesville Critical Repair Program I Project Proposal Section 1- Program Description 2 eliminating involuntary displacement due to home repair needs allowing senior homeowners to age safely in place reducing Charlottesville's carbon footprint by increasing the energy efficiency of our housing stock reducing parental stress and increasing the well-being of kids protecting homeownership in Charlottesville protecting and increasing rhe wealth of low-income and Black homeowners Service goals include: Se1ve 25 to 50 households with critical repair projects Invest an approximate average of $5,000 (and no more than $10,000) into each project -+ Program staff are ongoingly identifying and prioritizing who we will serve next and whar we can do for them based on funding availability, urgency and magnitude of need, general demand for our se1vices, risk to vulnerable household members (i.e., frail elderly residents or young kids in the house), and crew and subcontractor scheduling constraints. -+ Since we field calls and intake new clients on a rolling basis throughout the year, and since this program is set up to be a rapid-response program, we cannot pinpoint at this writing precisely how many projects we will complete or the exact project cost amount that will be expended. We address the spectrum of housing repair needs and don't yet know what each new client will need from us-it could be a minor but urgent plumbing leak fix ($200) or a collapsed roof ($8,000). -+ In order to serve as many households as possible with these funds, we aim to keep the average CAHF investment at approximately $5,000 per project and will not exceed $10,000 for any given project. -+ We will layer private fundraising and in-kind support into this initiative to support direct program delive1y and program management costs and direct construction costs. ► Program participants to be served Given our rolling intake and the fact that we will not begin planning projects before any potential CAHF funds are awarded and in hand, we do not yet know who our clients will be and therefore do not have firm demographic data. However, there are certain eligibility constraints and program guidelines that are firm: 1. This program will serve owner-occupied households in the City of Charlottesville 2. This program will serve households that fall within the following income tiers: o 10 to 20 households up to 30 percent of AMI ($100,000 offunding for this tier) o 10 to 20 households up to 60 percent of AMI ($100,000 of funding for this tier) o 5 to 10 households up to 80 percent ofAMI ($50,000 of funding for this tier) 3. This program will prioritize: o households with lower incomes or those experiencing financial or other hardship o households with senior citizens, children, and/or people with disabilities or special health needs The demographics of out city clients stay relatively consistent from year to year. Here is a snapshot of our city Critical Repair Program participants for both FY21 and FY22 (year-to-date), which will provide a good illustration of what we can expect for next fiscal year: AHIP I Charlottesville Critical Repair Program I Project Proposal Section 1- Program Description 3 FY21 Guly 1, 2020 - June 30, 2021): • 48 people in 25 households • 24% of households were home to kids under 18 (8 kids total) • 64% of households were home to senior citizens (I 7 seniors total} • 52% of households were home to family members with disabilities (15 individuals total) • 17 of25 households were Black (68%) • 2 of25 households were Hispanic (8%) • Our clients' annual household incomes averaged 42% of the area median (just under $32,000) So far in FY22 Guly l, 2021 - February 18, 2022): • 37 people in 20 households • 30% of households arc home to kids under 18 (7 kids so far) • 70% of households are home to senior citizens (17 seniors so far) • 27% of households are home to family members with disabilities (10 individuals so far) • 16 of20 households are Black (80%) • So far, our clients' annual household incomes average 35% of the area median (just under $25,000) ► IRL: Case study of a Chadottesville homeowner and Critical Repalr Program client Last July, Charlottesville's Director of Human Services connected us with a city property inspector who had fielded complaints from Rose Hill neighbors about a worsening sewage issue. The homeowner, Ms. J., knew her sewer line had failed and that the situation would only get worse, but being on a very low fixed income, she knew she could never cover the cost of fixing it. But AHIP could help. We quickly reached out, verified her eligibility, and sent one of our rehab specialists to inspect. Twelve inches of sewage had backed up in the crawlspace from the broken sewer line and a damaged plumbing system that required immediate attention. We hired a subcontractor to pump it out and repair the plumbing. Phase 2 will involve additional important but not as urgent work: putting down lime and ground cover, cleaning joists, and installing brand-new insulation since everything had to be torn out and removed during clean-up. The Phase 2 work is on hold, awaiting new pending grant money. The cost of the fix amounted to what would be double her annual income. There are countless stories like Ms. J's. We see firsthand how a family home confers stability on generations of occupants, and how easily this can be lost, especially as pressure increases on city neighborhoods. We believe that helping families preserve their homes through critical repair and rehab is one of the best and most tangible approaches we lmow: a cost-effective means of improving a family's health and well-being today while preserving their home for the future and serving as protection against involuntary displacement. And we believe that something as humble as home repair plays an important role in making sure the people of Charlottesville can preserve their histories and continue their legacies in the homes they want to-and deserve to-stay in. AHIP I Charlottesville Critical Repair Program I Project Proposal Section 1- Program Description 4 fB AHIP Ho me Repa ir Uon p ro f 1t AHIP Chadottesville Critical Repair Program Project Proposal Section 2: Demonstration of Need February 2022 2. DEMONSTRATION OF NEED AHIP fields calls year-round from prospective clients seeking assistance and also maintains a waiting list of homeowners who have called AHIP for help with a critical repair or set of repairs. As of this writing, there are 275 people in 97 low-income City households currently awaiting assistance. The number is always increasing as new calls come in. Without assistance, or while they wait, families work around the issues. They make stopgap fixes and triage their emergencies, putting buckets down when it rains or using space heaters to stay warm. In the most severe and stressful cases, they find themselves with no choice but to leave. Housing affordability in Charlottesville and the region continues co worsen, with median sale prices staying steadily high and beyond the affordability threshold for most city residents. In the fourth quarter of 2021, the median home sale price in the city reached $399,000. Meanwhile, inventory is plummeting: by the end of the second quarter, there were only 35 active listings, which is down 38 percent from last year's level. Invento1y in the region is currently among the lowest it has been in three decades. All of this pushes prices even higher, speeding up gentrification of already-gentrifying neighborhoods, widening the homeownership and wealth gap between affluent and low-income and between white and Black, and homogenizing the City. The City neighborhoods where our clients live are relentlessly targeted by "postcard investors" who prey on stressed homeowners in lower-income neighborhoods, urging them to sell quickly for fast cash. But once these houses are gone from families and from the affordable housing stock, they are gone forever. Local strategies and solutions to increase housing supply, increase affordability, strengthen household financial stability, and ensure access to capital are paramount. Preservation-ensuring that households are able to hold onto their homes and their wealth while keeping family members safe and healthy in their homes- is an essential part of this continuum. ► City of Charlottesville's Housing Goals Rehabilitation and preservation of Charlottesville's affordable housing stock fits within Charlottesville's goals and policies: 1. 2025 Goals for Affordable Housing: Supported Affordable Units AHIP's work helps the city reach its 15 percent goal by preserving existing affordable units-and our work not only ensures that homeowners and their families can stay in their homes but often helps them live more affordably by reducing their energy bills. For the proposed CAHF-funded Critical Repair Program, AHIP will secure projects with a promissory note (for projects that come in under $1,000) or a deed of trust (for projects over $1,000), with a term of one to five years. Through this mechanism, supported units arc tracked and a portion of the invested funds return to the city should a homeowner sell or pass away with no heirs during the term. 2. Comprehensive Plan 2021 Housing Goals AHJP's work supports the following goals: • Goal 2: "Maintain and improve the City's existing housing stock for residents of all income levels." This is AHIP's core work, but we strictly focus on low-income residents. • Goal 2.5: "Preserve and improve the quality and quantity of the existing housing stock through the renovation, rehabilitation, and/or expansion of existing units as a means of enhancing neighborhood stability." AHIP focuses on renovation and rehabilitation rather than expansion. 3. Charlottesville Strategic Plan Affordable Housing and Related Goals AHJP' s work supports the following goals: • Goal 1.4: "Enhance financial health of residents." AHIP helps families reduce operating costs immediately, removes long-term burdens of costly stop-gap measures; and prevents more costly fixes of unchecked problems down the road. • Goal 2.1: "Reduce adverse impact from sudden injury and illness and the effects of chronic disease." AHIP's work increases occupants' health and safety by addressing dangerous deficiencies and increasing building health. AHJP' s work decreases occupants' stress and improves mental health. • Goal 2.3: "Improve community health and safety outcomes by connecting residents with effective resources." AHIP delivers a critical resource to homeowners that allows them to improve the health and safety of their homes and families. I I AHIP Charlottesville Critical Repair Program Project Proposal Section 2 - Demonstration of Need 2 fB AHIP llo me: Repa ir fMnp rof it AHIP Charlottesville Critical Repair Pl'Ogram Pl'Oject Pl'Oposal Section 3: Demonstration of Equity February 2022 3. DEMONSTRATION OF EQUITY AHIP's strategic objective is to maximize and balance impact (how much we do for each household), reach (how many households we help), and capacity (what resources are available to support delive1y of high-quality services) with dignity, empathy, and equity as guiding values. The majority of our clients and their relatives have been profoundly impacted by past and present discriminat01y and harmful housing practices, buying a home- or living in a home chat their parents or grandparents bought or built-against all odds. Part of our duty in our work is to honor that legacy and support them in prese1v ing their health, protecting their wealth, and taking care of their biggest financial asset. Programmatically, AHIP has sought to remedy the impacts of a hostile system-one that has widened income inequality, shredded the social safety net, and sustained generational poverty and deep racial disparities-by serving a diverse clientele and prioritizing the most vulnerable and impacted. Last year, Black households made up 67% ofAHIP's se1ved households in the City. All households were below 80 percent of the area median, with the average hovering around 42 percent. Externally, AHIP advocates for resources that fund prese1vation as well as other housing affordability efforts along the local housing continuum. For us, promoting equity means keeping the community's investment focused on housing as a foundation. Equity will never truly exist if there continues to be an enormous gap in homeownership rates, housing stability, and cost burden between white and non-white and between affluent and non-affluent. Internally, from the makeup and the involvement of our Board of Directors to how our organization in general and staff members specifically deliver our se1vices into the community, the work to align our whole organization with sound equity and inclusion principles and our values of dignity, empathy, and respect is underway. We have hired an outside consultant to help us assess our internal culture; facilitate learning sessions; set diversity, equity, and inclusion commitments and accountability measures; and identify strategies to get us there. For us, our stated guiding principles and values will only matter if our se1vice delivery- how we treat people, whom we se1ve, how we communicate and manage conflict- genuinely embodies the words we use. And when it is time to recruit new staff members and new Board members, this work will ensure that we recruit equitably and create an inclusive and thriving workplace and boardroom. fB AHIP ll ome Re pa i, N o n pro fit AHIP Charlottesville C1·itical Repair Program Project P1·oposal Section 4: Project Readiness Febmary 2022 4. PROJECT READINESS AHIP's program is ongoing, and our internal structure and workflow are set up to move clients through our program pipeline from throughout the year and from year to year. We field intake calls continuously, and our two rehab specialists are simultaneously working in eve1y stage: program enrollment and eligibility verification, conducting inspections, sending out bids, and developing scopes of work and estimates. Likewise, our construction manager is simultaneously in various phases of rehab and repair projects from scheduling to construction to closeout. We are currently staffed-on the program management, program delive1y, and construction fronts-to fold the proposed projects into our client pipeline and achieve the goals detailed in this proposal. As always, local subcontractors supplement our construction capacity when we need more hands or when we're seeking specialty work such as HVAC or insulation installation. AHIP's home improvement work varies in terms of neighborhood, project size, funding constraints, and project scope, but this is the only work that we do and have done for more than 45 years. If awarded, this CAHF grant would allow us to seamlessly and immediately begin putting this funding to work, allowing us to help more City residents more efficiently and convening eve1y dollar into critical home repairs for City homeowners. ► Process Below is an outline of our Critical Repair Program process. Each program client would move through the following steps: STEP I: INTAKE • Preliminary screening o Takes place via phone or in person and involves questions about housing conditions, repair emergencies, and household makeup o C lients self-refer and are also referred by neighbors, family members, city staff, social services providers, and other housing providers. • Entry into our database/waitlist or enrollment (depending on urgency, severity, and funding availability) STEP 2: ENROLLMENT • Eligibility verification and data collection o Clients are assigned to one of AHIP's two Rehab Specialists, who verify income (through third-party verification) and other eligibility measures and get clients enrolled. Homeowners must be current on their real estate taxes (or have a payment plan in place) and have clear tide to their homes. Residents who hold a life estate are eligible. AHIP will often work with the client, their family members, and community resources such as Legal Aid to help clients clear up tax or ownership issues. • Initial home inspection o The Rehab Specialist meets with the clients to talk about their home and the issue(s) of concern and to conduct an initial walk-through. STEP 3: PROJECT PLANNING • Inspections o Depending on the types of repairs needed, the Rehab Specialist schedules general and/or specialty inspections. Other third-party specialty inspections may include LEAP, pest, chimney, and electrical. • Scope of work and estimate o The Rehab Specialist finalizes a scope of work and estimate for each project and reviews it with the homeowners. We focus on health and safety issues and must follow the city's scope of work requirements but do our best to work with homeowners to cover items that are important to them. If there is an energy upgrade included, LEAP may help with developing the scope of work. • Contract signing o AHIP's Construction Program Manager meets with each client to review project scope, costs, process, policies, and the contract. Once the contract is signed, AHIP schedules the work. STEP 5: CONSTRUCTION • Project work o AHIP crews, local subcontractors, and/or volunteers carry out the rehab and repair tasks. • Oversight, compliance, and quality assurance oAHIP's Construction Supervisor and/or subcontractors secure proper work permits when required and oui· Crew Leaders and Construction Supervisor monitor each project as it proceeds. o All construction activities are subject to local, state, and federal laws and regulations, including the building code, contracting regulations, and HUD and OSHA rules. We follow city rules for liability insurance, adhere to industry standards on workers' compensation, and are subject to audits by NDS staff, HUD inspectors, DPOR inspectors, and OSHA inspectors. o All client-facing staff are currently required to mask while working indoors or meeting with clients in their homes. AHIP I Charlottesville Critical Repair Program I Project Proposal Section 4- Project Readiness 2 o AHIP's Construction Program Manager is the point of contact for eve1y client, reviewing progress during the project and addressing any concerns or questions. o When the project is nearing completion, AHIP conducts a final walk-through with the client. The Construction Supervisor will create a punch list for any items that need to be addressed following the walk-through. Specialty inspectors will have their final inspections, and a final general inspection report verifies that all repairs and upgrades have been completed and are satisfact01y. • Qualifications o AHIP holds a Class A Contractor's license and is an EPA- and state-certified Lead Abatement Contractor. AHIP partners with Building Performance Institute (BPI)-certified building analysts at LEAP and WeatherSeal on all our energy-efficiency upgrade projects from pre-testing to closeout. o AHIP's programs meer a variety of industry standards, including HUD health and safety inspection guidelines; local property maintenance and building codes (based on state and national standards); and the BPI standards for best practices in energy efficiency. AHIP's third-party inspectors (plumbing, electrical, energy auditors, chimney, pest, etc.) or third-party building officials use HUD guidelines and/ or building code or BPI standards to scope and evaluate our work. • Closeout and warranty o With construction complete, AHIP's Construction Program Manager holds a meeting with the client to close out the project and sign all required documentation. o Client surveys provide feedback on the project, what impact it had on the household, and what could have been done to improve the process or the project outcomes. oAll of AHIP's work is warrantied for one year, so if something goes wrong, AHIP staff will return to malce it right at no additional cost to the client. And our staff are always available to answer past clients' questions, even outside of the official warranty window. AHIP I Charlottesville Critical Repair Program I Project Proposal Section 4- Project Readiness 3 ~ AHIP llo rne R~pa ir '4onp , o f,t AHIP Charlottesville Critical Repair Program Project Narrative Section S: Project Budget February 2022 5. PROJECT BUDGET EXPENSES Program delivery - staff costs (direct) 105,525 Intake, database management, eligibility verification/enrollment, inspections, estimating and scope of work development, bidding and procurement, construction management (planning, scheduling, supervision, quality control), client service, invoicing, cost tracking and reporting Program delivery - construction costs (direct) 200,000 Hard costs: AHIP labor, subcontractors, materials Soft costs: permits, 3rd-party inspections, recording fees, rentals, fuel, disposal, etc. Program management - staff (direct) 22,636 Oversight, support, troubleshooting, recordkeeping, invoicing, payables and receivables, funding source allocations and tracking, program payroll management/ cost allocations, project budget and impact reporting, invoicing, lien waiver/subcontractor coordination, program evaluation Total direct program expenses 328,161 INCOME City of Charlottesville - CAHF 250,000 Private foundation grants 25,000 Dominion Energy via LEAP 10,000 Safe at Home Campaign/Annual Fund 43,161 Total income 328,161 fB AHIP Horne Rie pai, Uo npr o f 1t A HIP Charlottesville Critical Repair Prngram Prnject P1·oposal S ection 6: Project Schedule F ebmary 2022 6 . PROJECT SCHEDULE I f funded, the targeted time frame for this project would begin in April 2022 and run for approximately 12 months. Unlike construction of a discrete multifamily development, this effort comprises multiple c onstruction projects in various stages of development-intake to estimating to construction-that run concurrently and consecutively throughout the year. Critical repairs may take as little as a week from intake to completion, or could take longer depending o n complexity of the issue and how many issues need to be addressed. Other current challenges that are slowing AHIP's pace down include labor shortage woes, permitting delays, extreme supply chain disruptions and delays, and highly scheduled local subcontractors (who are grappling with these ve1y same issues themselves). fB AHIP H o m e Re pai , r.l onpr o f1t AHIP Charlottesville Critical Repair Program Project Proposal Section 7: Experience February 2022 7. EXPERIENCE AHIP is an independent 501 (c)(3) nonprofit organization that began working locally in 1976 and that began working in the City of Charlottesville in 1995. (Our sister organization, Charlottesville Housing Improvement Program, or CHIP, closed in 1995.) From 1995 to 2008, AHIP utilized the city's federal HOME and CDBG funds to complete major rehabs for city households. In 2009, Neighborhood Development Services and City Council recognized a need to do more, and we began using newly dedicated housing funds to pilot an emergency and accessibility repair program. From there, more funding became available to expand the small repair program and begin completing more comprehensive rehab projects. In 2011, we began partnering with LEAP to bring energy-efficiency upgrades to city clients and began planning for our first Block-by-Block Charlottesville effort, which rehabbed 40 homes in the 10th & Page neighborhood and won a Virginia Housing Award. From that point fo1ward, we have worked closely with city staff and leaders to cany out a thriving effort that balances small repairs, energy upgrades, scattered-site projects, and target-area projects-bringing together city resources, private funds, partner organizations, and volunteers-to make sure that people can stay in their homes and stay safe in their homes. AHIP is a state-licensed Class A Contractor and an EPA-certified lead abatement contractor. With more than 150 years of construction experience among our rehab program staff and more than 45 years of experience serving our community, AHIP has the expertise to continue to deliver critical rehabs and repairs to city homeowners. This is our mission and our reason for being. ► Key Staff • Cory Demchak, Director of Programs, is responsible for day-to-day oversight ofAHIP's rehab department, managing construction staff, program partnerships, subcontractors, project financing, financial oversight and compliance, and recordkeeping. Mr. Demchak joined AHIP in September of 2018. • Laurie Jensen, Intake Manager, manages the intake, client database/waitlist, data collection, and client assignment process. She also manages special projects and works on target-area project planning. Ms. Jensen joined AHIP in 2015. • Len Wishart and Lee Miller, Rehab Specialists, are in charge of conducting initial inspections, scheduling specialty and city inspections, estimating projects, and writing up scopes of work. They also work with LEAP to estimate energy-efficiency tasks, folding them into the rehab estimating process and LEAP compliance processes (including pre- and post-testing coordination). Mr. Miller holds AHIP's plumbing and electrical license and Mr. Wishart manages AHIP's safety and lead training programs. Together, they bring more than 60 years of construction experience to the community. • George Herring, Construction Supervisor, is responsible for scheduling crews and subcontractors, managing workflow and budgets, arranging final inspections, and overseeing the quality of all work completed. He works closely with the crew leaders and the rehab program staff. AHIP I Charlottesville Critical Repair Program I Project Proposal Section 7 - Program Description 2 fB AHIP Home Re pair Nonp,o f,t AHIP Charlottesville Cdtical Repair Program Project Proposal Section 8: Capacity February 2022 8. CAPACITY As mentioned, the project budget shows specific sources and uses of funds, average and projected costs per unit, and other public funds and private resources that will be leveraged to make this effort a success. Additionally, we are currently staffed-on the programmatic, planning, and the construction fronts-to cany out the goals of this effort. - Focusing on emergency repairs with any awarded CAHF funding also allows us to complete projects more quickly than rehab projects and ideally reach more neighbors in need of critical home repairs. As always, local subcontractors supplement our construction capacity. Lastly, AHIP's impact and reach depend on strong and creative collaboration with a range oflocal partners. We would not be able to do this work on our own and are actively working with LEAP, CAAR, BRHBA, local businesses, and referring entities to malce the program a success. fB AHIP llome Repa ir Uo n prof 1t AHIP Charlottesville Critical Repair Program Project Proposal Section 9: Metrics Februaiy 2022 9.METRICS Beyond our service goal of 25 to 50 households, we measure satisfacto1y completion of each project (as determined by our own quality control measures, independent inspection, and homeowner satisfaction) and the overall satisfaction and increase in well-being of the homeowner (as measured through a post­ project survey). The level of inspection detail is commensurate with the complexity of the project. In addition to regular inspections and contact with the client throughout the project, AHIP staff conducts a thorough post-project inspection and walk-through with the client to make sure all tasks are completed to the satisfaction of the homeowner and our construction supervisor. All parties-client, staff, subcontractor (if needed), and third-party inspectors (when applicable)-can see, evaluate, and document the work that was done to address outstanding health and safety issues and improve the home. Generally, steps in the process include: 1. Initial conversations with the homeowner to understand their repair needs and goals, followed by inspections by AHIP staff, a city inspector ( as required by the building code), LEAP technicians (for energy upgrades), and independent inspectors (if applicable) 2. Approval of the proposed scope ofwork by city Neighborhood Development Services (NDS) staff and the homeowner 3. Periodic inspections, reviews of the work, and check-ins with the client by AHIP staff throughout the project while checking in with the client. The city's building inspector also conducts periodic inspections as part of the permitting process 4. Final walk-through and inspection by AHIP staff and the client at the close of the project, to review all tasks and ensure that all work has been done properly. Any outstanding items or fixes are added to a punch list for follow-up. Final inspections also conducted by city and independent inspectors as needed. Final test-out by LEAP staff for all energy upgrades assesses efficiency gain 5. Sign-off by the homeowner that all work, and any punch list items, have been completed satisfactorily 6. Post-project questionnaire delivered to client assessing satisfaction, experience, critiques, and impact of the work. Client feedback may identify needed follow-up tasks and helps guides process and program improvements 7. Warranty period that lasts one year following completion of the project. Depending on the scope of work and the funding source(s), AHIP's work must meet the federal HUD Housing Quality Standards, the City of Charlottesville maintenance and building code, and/or LEAP standards. Additionally, AHIP follows the regulations set forth by the city's Housing Assistance Program Policies, Procedures, Protocols & Rehabilitation Standards Manual. This year, AHIP is working on all of our client processes, including how to best communicate with clients throughout the process and measure satisfaction during and after the project is completed, and one of our key goals is to strengthen our evaluation tools and effectiveness. I I AHIP Charlottesville Critical Repair Program Project Proposal Section 9 - Metrics 2 Authorization: Organization Name: Albemarle Housing Improvement Program (AI-IIP} Project Title: Charlottesville Emergency l<.epair Program I JA ~) , certify that I am authorized to (Authorized Organization Official) ap y for funding from the City of Charlottesville. I certify that all information contained herein is accur e to the best of my knowledge. Date 4 EQUEST I FEBRUARY 2022 AHIP I CA HF R City of Charlottesville Affordable Housing Fund (CAHF) Application (all items must be completed) Applicant Information Total Amount of CAHF funds requested: $_3,000,000_ _ __ Check Tier Amount of Level of Typical Households Served Applying For CAHF funds Funding Amount of requested by Funding Tier Available X $1,650,000 Tier 1 $375,000 serving households with incomes up to 30% of Area Median Income (AMI) X $1,350,000 Tier 2 $225,000 serving households with incomes up to 60% of Area Median Income (AMI) $0 Tier 3 $150,000 serving households with incomes up to 80% of Area Median Income (AMI) Organization name: Piedmont Housing Alliance Contact name: Lindsay C. Chamberlain Title: Development and Communications Manager Organization Address: 682 Berkmar Dr Phone: 434.422.4866 Email: lchamber!ain@piedmonthousing.org Project Information Project Name: MACAA Development Project Location: Macaa Dr. Purpose of requested funding: (check all that apply) New Construction _x___Acquisition Rehabilitation _____ Rent Subsidy _____0 pe rating/Administration Project type:(checkall that apply) _x___Multi-family ____Single family (detached) _____Single family (attached) Rehabilitation _x___ New Construction _x___Acquisition _____Other: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Income restrictions on project (indicate number of units meeting each Area Median Income (AMI) category: _30_ _ _ _ _1ncomes less than 30% AMI _ _ _ _ _ _ _Incomes between 30% and 40% AMI 6_ _ _ _ _ _1ncomes between 40% and 50% AMI 30 Incomes between 50% and 60% AMI _ _ _ _ _ _Incomes between 60%and 80% AMI _ _ _ _ _ _ Unrestricted units (>80%AMI) 66_ _ _ _ _Total Units Term of Affordability (indicate number of units meeting each affordability term): _______ less than 2 years _ _ _ _ _ _ _2-5 years _ _ _ _ _ _ _5-10years _ _ _ _ _ _ _10-15 years _ _ _ _ _ _ _lS-20 years _ _ _ _ _ _ _20-30 years 66_ _ _ _ _.more than 30 years 66_ _ _ _ _Total Units Project Proposal: Please provide following Information as separate attachments to the application: 1. Project Description-Provide a description of the proposed project. Include: project type and location, short and long-term goals, the population(s) to be served. Discuss plans for accessibility/adaptability, energy conservation and/or any green building components. This project provides a diversity of affordable housing options for people experiencing low incomes within a high - opportunity neighborhood just one mile from a local job center in downtown Charlottesville and meets a critical need for affordable housing in the Charlottesville area. The project responds to the context of locust Grove's tree - lined local streets with single-family dwellings by extending this neighborhood fabric into the site. The development plan addresses the primary goals of the Charlottesville Comprehensive Plan with particular respect to housing, community facilities, land use, and the environment. This project addresses the need for greater affordability within our community by infilling in an area where no affordable housing currently exists. The proposal reflects a partnership between four organizations, all of which focus efforts on the support of people experiencing low-incomes as a central part of their mission. The four organizations are partnering on the redevelopment of the MACAA location to pursue an integrated spectrum of affordable rental housing, affordable homeownership opportunities, and a new modern early childhood center.. Piedmont Housing Alliance is acting as the lead developer overall as well as the lead developer of the affordable rental homes, aiming to partner with the Charlottesville Redevelopment and Housing Authority (CRHA) to dedicate a mixture of public housing units and project-based vouchers integrated within the rental buildings. MACAA, the current owner of the property, will develop classrooms in which to operate its Head Start program onsite. Habitat for Humanity of Charlottesville will build town homes and duplexes on the site to provide affordable homeownership opportunities. The redevelopment of the MACAA property on a prominent site between the North Downtown and Locust Grove neighborhoods provides a unique opportunity to address the City's affordable housing needs while taking advantage of the unique character of the grounds and sloping landscape on the site. This property will become an active and integrated extension of the adjacent neighborhoods while providing bike and pedestrian links to the broader community amenities by emphasizing connectivity and shared open spaces. RENTAL HOUSING The affordable rental portion of the project, for which this funding application would specifically applies, will include 66 rental homes, serving families between30 and 60%AMI. The mix of 1-, 2-, and 3-bedroom apartment homes will be managed by the Piedmont Housing Alliance (PHA) through the Low Income Housing Tax Credit (LIHTC) program. Through a unique partnership proposal between Piedmont Housing Alliance and the CRHA, up to 45% of those rental homes would be targeted to families making at or below 30% AMI. This would be accomplished through the inclusion of Project Based Vouchers and integrated Public Housing units within the project and would far exceed the number of deeply affordable units in a typical LIHTC project. More critically, these units would address a significant area of need for a vulnerable portion of the Charlottesville community. Regarding accessibility/adaptability for the affordable rental units, the code minimum number of fully accessible Section 504 units for the 66-unit MACAA development is four /4) units. Instead, the site will have seven /7) 504 units for residents with physical impairments and two (2) accessible units for residents with sensory impairments. The remaining rental homes are targeted to meet or exceed Universal Design standards - the gold standard for adaptability. Regarding energy efficiency and sustainability, the rental homes will not only be certified under Enterprise Green Communities, the national standard for green-built affordable housing, but also will be aiming for DOE Zero Energy Ready Homes (ZERH) certification and Passive House certification under the PHIUS Multifamily protocol, an extremely stringent design, construction, and verification practice that ensures durability, excellent moisture management, and significant energy reductions through passive strategies, including increased insulation, robust air-sealing, thoughtful mechanical specifications 1 and attention to detail. Designing to these standards will provide a higher quality building envelope and operational efficiencies that directly benefit residents through increased durability and reduced utility bills. Piedmont Housing will also be pursuing funding for a solar panel installation on all roofs to further project sustainability goals and reduce utility costs for residents. HOMEOWNERSHIP By pursuing a variety of financing models and unit types, the project intends to meet the needs of a range of household incomes. Partner Habitat for Humanity of Greater Charlottesville's funding for the town home and duplex portion of this project is separate from the rental housing development. And, yet, affordable homeownership will need parallel City funding to come to fruition. The Habitat funding application will come in a future CAHF round. The homes will be sold to families experiencing low-income using a low- to no-interest mortgage and a repayment schedule appropriate to that family's income. Habitat typically serves families between 30-60% AMI, and Habitat for Humanity of Greater Charlottesville has helped families with an average AMI of 34% over the last three years. 2. Demonstration of Need -- Describe how the project contributes to the City of Charlottesville 1s housing goals. The project provides housing choices that are not readily available within Charlottesville, namely affordable rental and homeownership opportunities. The project has been developed holistically, aiming to meet goals around affordability, sustainability, walkability, bikeability, and support of historical and natural landscapes. The project provides ranges of multifamily dwellings, townhouses, and duplexes, providing a variety of typologies along with a diversity of rental and ownership models. The homes provided are within a short distance from downtown and will have convenient access to a system of green spaces and other public amenities. The development will be constructed to a high level of quality -the standards for Low Income Housing Tax Credit-funded developments such as the rental portion of the project far exceed market-rate building standards, and our partner in the project, Greater Charlottesville Habitat for Humanity, has a proven track record of constructing quality homes throughout the region. 3. Demonstration of Equity - Describe how this project demonstrates and promotes equitable housing needs and economic opportunity for low-income residents in the City of Charlottesville. In the last two years, both the City of Charlottesville and the Thomas Jefferson Planning District Commission have commissioned housing needs assessments. The resulting data are dire. Regionally, over 11,000+ households are housing-cost burdened, with the large majority living in the urban center of Charlottesville and Albemarle County. Of this number, over 2,000 households in the urban core are severely cost burdened, paying more than 50% of their incomes towards housing costs. This burden falls disproportionately on households with incomes below 50% AML Designated by the city as a revitalization area, the MACAAsite is in a part of Charlottesville where no current affordable housing exists. This project provides a spectrum of housing types for residents with a variety of family sizes and incomes and accommodates an integrated range of affordable rental and homeownership choices. The project also contributes to the City's larger housing affordability goals by contributing to the housing stock for people experiencing low income, one of the critical areas where more supply is most needed. The project creates a diversity of affordable housing options for families at a range of income levels from 30to 60% of area median income, including affordable rental and affordable homeownership. Given MACAA's organizational mission, the desire to include early childhood education as a priority in the neighborhood re-design has been part of the conversation. As a result, this project includes onsite childcare to integrate services that support working families. Registration for families will follow the model of the current Head Start program that MACAA operates with prioritization given to residents in the site. Parents may confidently pursue educational and career opportunities knowing their children are thriving. 4. Project Readiness--Provide evidence of: organizational experience and capacity to manage the project; pursue and acquire land 1 site control, required zoning variance and permitting {if applicable); financial commitments for the projects; community engagement plan (if applicable); resident relocation plan (if applicable); plans for preparation and coordination of necessary public meetings (if applicable). The coordinated planning process for the MACAA redevelopment has included residents, local governments, and strategic partners. Strong financial and community support1 an experienced team, and a realistic project time line will ensure completion in a timely manner. This project has passed through a successful rezoning process which included public meetings. These public meetings were held multiple times in the process of approving the re - zoning. The land acquisition process will be finalized by Q2 2022. Piedmont Housing Alliance's commitment to building strong financial and community support and developing realistic financial projections has been demonstrated in other projects, such as Friendship Court and Southwood Apartments. MACAA homes will benefit from this substantial experience, a similar community engaged design process, and a coordinated campaign for political support of regional affordable housing efforts. As is the case with many publicly-approved and welcomed affordable housing developments, the city funding acts as a catalyst that unlocks the other sources. The funding sources listed in the budget hinge on the approval of funding from the City. 5. Project Budget-Provide a detailed description of the proposed project budget showing sources and uses and amounts of additional funding. The budget below, and the CAHF request here, refer to the rental housing development (66 units) that Piedmont Housing Alliance is undertaking. However, the full project, including the homeownership units to be developed in partnership with Habitat for Humanity of Greater Charlottesville, will require additional subsidy to support Habitat's units. The CAHF application for Habitat's units will take place in a future CAHF cycle. After speaking with City staff, we decided to separate the applications over time because they have different time constraints. The rental housing, which needs LIHTC to bring to fruition, is constrained by the annual LIHTC application cycle - applications are due in March of every year. Habitat's sources are not constrained by the same application cycle. MACAA - 66U - Combined Sources and Uses COMBINED Permanent Sources 66 Units Sources Avg. P U Tax Credit Equity $12,717,791 $192,694 First Mortgage $6,318,644 $95,737 City of Charlottesville Funds $3,000,000 $45,455 ASNH (VHTF, NHTF,HOME) $1,800,000 $27,273 Other Loan $1,320,000 $20,000 Seller Note $560,000 $8,485 FHLBAHP $500,000 $7,576 Deferred Developer Fee $64,790 $982 Total Permanent $26,281,226 $398,200 summarized Uses Uses Avg.PU Acquisition Costs $1,880,000 $28,485 Construction Costs $19,993,050 $302,925 Architecture and Engineering $708,750 $10,739 Owner's Construction Costs $332,430 $5,037 Professional Services $186,585 $2,827 Financing Costs $1,280,230 $19,397 Partnership Costs $70,350 $1,066 Operating and Carrying Costs $73,500 $1,114 Reserves and Escrows $456,331 $6,914 Developer's Fee $1,300,000 $19,697 Total Uses $26,281,226 $398,200 6. Project Schedule - Indicate the proposed project schedule; timing of completed SAUs; pre-development, anticipated pursuit and acquisition time line ,site control, zoning approval, fi nanci ng and construction milestones (if applicable) to project completion. The schedule below reflects our best estimation of timing based on known funding requirements driven by Virginia Housing and the Department of Housing and Community Development. Their closing processes constrain the gap in timing between LIHTC allocation and start of construction. More information can be provided if desired. MACAA PSA finalized May 2022 Site Plan Submission Apr2022 Site Plan Approval Feb 2023 LIHTC Application Submitted to VH Mar 2023 LIHTC Final Rankings Announced Jun 2023 LIHTC Reservation Documents Executed Jul 2023 Building Permit submitted Jul 2023 Building Permit Issued Oct2023 Closing process/ Construction Start Dec 2024 Construction Complete May 2026 Lease Up Complete Sep 2026 7. Experience-Provide a summary of similar activities completed by the organization and project team. Piedmont Housing Alliance has been a leader throughout the Charlottesville region since 1983 in developing and managing affordable housing and offering pathways for struggling renters and aspiring home buyers. Our work is guided by the core values of equity, opportunity, home, community and respect. Our continuum of services and resources has: assisted more than 1,000 low-income households purchase a home; supported thousands more through financial counseling services; backed the financing and construction of 100+ affordable single-family homes; financed the preservation, construction, and rehabilitation of nearly 1,000 affordable rental homes; and we currently manage over 600 affordable rental homes. From 2014-2021, Piedmont Housing successfully leveraged $18 million for new rental housing development and the rehabilitation of existing units; $21 million for mortgage financing for low-income homeowners; and $376,638 for economic development projects. In total, $40 million has been deployed and leveraged for affordable housing in the region, serving thousands of low-income households. Piedmont Housing Alliance has been a certified Community Housing Development Organization (CHDO) since 1997. In 2015, we provided $1,079,029 for the rehabilitation of 30 rental units of affordable housing, reserved for seniors experiencing low-income, in the rural community of Crozet. In 2016, we provided $950,000 as a development partner on a $10.7 million housing project that created 54 units for seniors experiencing low-income. Piedmont Housing acted as a primary conduit for project financing for land acquisition as a CHOO and nonprofit partner to enable LIHTC financing. In 2017, $6,273,332 was leveraged for the acquisition and rehabilitation costs for an additional 97 homes in Albemarle County. In total, 181 homes have been developed or rehabilitated in the past six years. Since 2016, Piedmont Housing Alliance has also led the redevelopment planning for Friendship Court, deploying over $800,000 for architectural and engineering design work, a facilitated master planning process, and preliminary site assessments. Plans detail a redevelopment strategy committed to zero displacement by building new units on available and open green space, transitioning 150 current households through a phased approach. The first phase of the redevelopment successfully secured a 9% tax credit award in 2019 and began construction last month. As a seasoned CDFI with experience asan affordable housing developer, Piedmont Housing has the track record and resources to successfully complete these projects. Further, the capacity to fulfill on this work is bolstered by the development experience of key personnel and the demonstrated experience of senior staff in leveraging the funding, resources, partnerships, and relationships necessary to bring projects to fruition. KEY PERSONNEL SUNSHINE MATHON, EXECUTIVE DIRECTOR: Sunshine joined Piedmont Housing Alliance as Executive Director in 2017 and leads the Real Estate Development team. He has 14 years of experience in affordable housing development including planning, leveraging resources, underwriting, pipeline development, relationship-building, and partnership management. Sunshine was specifically hired to oversee the Friendship Court redevelopment and to develop a strong pipeline of future projects, including finding public and private funding sources, and developing strong partnerships with elected officials, partner agency nonprofits, and planning agencies to successfully structure a complex, community-responsive, economically viable strategy for redevelopment. Prior to joining Piedmont Housing, Sunshine was Director of Real Estate Development for Foundation Communities in Austin, Texas. During his 10-year term, he oversaw of $200 million in sustainable, affordable housing development including over 1,000 units. He is well-versed in gathering and supervising integrated teams of staff, architects, engineers, contractors, and consultants through all phases of development, and his management of contractors includes adherence to strict funding driven construction schedules and budget. Sunshine's experience also includes an inclusive community focus, as well as the development of services such as an early childhood center for affordable housing residents. He holds a Master of Architecture from the University of Texas, Austin. ANDY MILLER, DIRECTOR OF REAL ESTATE DEVELOPMENT: Andy was hired in 2019 as part of Piedmont Housing Alliance's significant expansion in real estate development, bringing 16 years of affordable housing design and development experience.Andy has primary oversight of project development: identifying and evaluating properties for future development; facilitating the planning process, including pre-development work such as architectural and engineering specifications, design schematics and pricing, design development, commercial construction bidding processes, and construction oversight; and managing the full range of the development process for complex affordable multi-family projects. Prior to joining Piedmont Housing Alliance, Andy was Senior Development Manager for Laurel Street, an affordable housing development firm in Charlotte, North Carolina. In that role, he managed over $100 million in affordable and workforce housing development and oversaw the delivery of over 800 units. Past projects have ranged from new construction master planned communities to acquisition/rehab projects with financing from various sources including 4% tax credits, 9% tax credits, HUD Section 221(d)(4} loans, private equity funds, and various state and local resources. He has been responsible for day-to-day management of mixed income developments from initial concept through project stabilization, including project planning, finance structuring, proforma analysis, due diligence, market analysis, negotiation and closing on financing, design team management, entitlements, construction review, marketing and lease-up. He holds a Master of Architecture from UC Berkeley and a Master of Science in Real Estate from UNC Charlotte. MANDY BURBAGE, REAL ESTATE DEVELOPMENT MANAGER: Mandy joined Piedmont Housing in 2020with 13 years of planning and development experience in the Charlottesville area. Mandy most recently managed land development and entitlement activities for Habitat for Humanity of Greater Charlottesville, including the successful rezoning of Southwood Mobile Home Park, a resident-led, master planned trailer park redevelopment with a commitment to resident non-displacement. Prior to Habitat, Mandy worked in the public sector as a senior land use planner gaining valuable insight into the community's long range planning goals and an understanding of the entitlement process. Mandy currently oversees due diligence, entitlement, design coordination, and permitting efforts on multiple projects. 8. Capacity -Provide a detailed description to demonstrate the applicant's ability to complete this project within 24 months. Piedmont Housing's previously completed projects include leveraging $7,344,361 in project costs for the rehabilitation of two affordable housing communities in Albemarle County: in 2015, Crozet Meadows, a 30-unit senior apartment building in Crozet, underwent a $1,071,029 rehabilitation; and in 2017, Wood's Edge senior apartments underwent a $6,273,322 acquisition and renovation of 97 homes. Piedmont Housing Alliance recently broke ground on Phase I of the redevelopment of Friendship Court Apartments, a Project-Based Section 8 subsidized apartment complex serving 150families in Charlottesville, Virginia. Phase I of redevelopment includes one-for-one replacement of 46 of the existing Project-Based Section 8 homes, as well as 60 additional new homes serving households ranging from 30-80%AMI. A LIHTC allocation and DHCD ASNH funding has been awarded for Phase I, which will complete construction in 2023. By the end of all four phases in 2027, all 150 existing Section 8 subsidized units will be replaced and an additional ~300 new units will be added to create a tiered-income community model serving households from below 30% AMI up to 80% AMI. All units will be protected with long-term affordability restrictions. In March 2021, Piedmont Housing submitted a 9% LIHTC application for the development of a 71-unit affordable housing community, Southwood Apartments, and was successfully allocated credits in June. This is the first phase of a two-phase project that will include a total of 121 affordable units. The design is targeted to achieve Passive House and Enterprise Green Community certifications. The project is located in the larger Southwood Community redevelopment area, a community led redevelopment of a trailer park south of Charlottesville, which is being master planned and developed by Habitat for Humanity Charlottesville. Based on a successful LIHTC award, Southwood Apartments is anticipated to start construction in late 2022. Also in March 2021, Piedmont Housing Alliance purchased the Red Carpet lnn. As part of the first phase of the Premier Circle redevelopment, in which the motel is functioning as non-congregate emergency shelter for people experiencing homelessness, Piedmont Housing has overseen renovations for 94 homes. Phase II will consist of an 80-unit supportive housing project being developed by Virginia Supportive Housing. Piedmont Housing Alliance will develop Phase Ill of the redevelopment, Premier Apartments (final name TBD), consisting of approximately 60 affordable apartments for family and senior households with 30%-80% AMI incomes. Premier Apartments will be designed to Enterprise Green Communities and Passive House standards. The building(s) will provide direct benefits to residents through increased durability, healthy interiors, and reduced utility bills. Piedmont Housing Alliance and Habitat for Humanity each demonstrate track records of successful development, combined they form an explosive combination. Once initiated, construction will be completed within 18 months, in May 2026. Construction can begin in 2024 once the site plan ls approved,building permits are issued, and the Low Income Tax Housing Credit rankings are released in 2023. 9. Metrics-Provide a detailed description of the metrics used to measure success. We will know the redevelopment of the MACAA property has been successful upon construction completion in partnership with Habitat for Humanity and Greater Charlottesville. We will know we have succeeded in providing 96 affordable homes, reactivating the underutilized space and integrating it as a Charlottesville neighborhood reserved for cost-burdened residents. Our metrics for success will include delivering on seven fully accessible homes, and 59 homes targeted to meet or exceed Universal Design standards -the gold standard for adaptability, and building rental homes that will not only be certified under Enterprise Green Communities, the national standard for green-built affordable housing, but also DOE Zero Energy Ready Homes (ZERH) certification and Passive House certification under the PHIUS Multifamily protocol. Authorization: organization Name: Piedmont Housing Alliance Project Title: MACAA redevelopment I, certify that I am authorized to Lindsay C. Chamberlain (Authorized Organization Official) apply for funding from the City of Charlottesville. I certify that all information contained herein is accurate to the best of my knowledge. 02/18/2022 Signature Date Development and Lindsay C. Chamberlain Communications Manager Print Name Title 15