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Cape Fear Habitat for Humanity ApplicationWorkforce Housing Services Program - Request for Proposals FY23-24 *indicates a required field Applicant Information Corporate/Entity Name Cape Fear Habitat for Humanity, Inc. Type of Applicant Private Incorporated Non-Profit Agency with IRS 501(c)(3) Designation Applicant Established Date & State February 20th, 1987, North Carolina Organization Principal Name and Title Lauren McKenzie, Executive Director Principal Email Address lauren@capefearhabitat.org Principal Phone Number 9107624744, ext. 101 Please include the name, phone number, and email address of the person that should receive updates about the status of your proposal. Contact Name Lana Svensson Contact Email Address grants@capefearhabitat.org Phone Number 9107624744, ext. 105 Preferred Contact Method Email In addition to the above, non-profit organizations must provide: • 501(c)3 Determination Letter • List of Board Members with Terms • Organization By-laws • Articles of Incorporation • Current Year Operating Budget • Most Recent Financial Statement, Audit, and 990 501(c)3 Determination Letter 501(c)3 Determination Letter.pdf List of Board Members with Terms List of Board Members with Terms.pdf Organization By-Laws Cape Fear Habitat Organization By-Laws.pdf Articles of Incorporation Articles of Incorporation.pdf Current Year Operating Budget FY23-24 Current Year Operating Budget.pdf Most Recent Financial Statement FY22-23 Most Recent Financial Statement.pdf Most Recent Audit Most Recent Audit 2022.pdf Most Recent 990 Most Recent 990.pdf Project Summary Project/Program Name Affordable & Permanent Homeownership for Low-to Moderate- Income Families in Cape Fear Habitat Haven Place Development Number of Units/Households to be Assisted 35 Units Estimated Total Project/Program Cost $9,653,539 WHSP Funding Requested (Maximum $1.5 Million) $1,000,000 Project Location/Address Haven Place, 3101 Castle Hayne Road, Castle Hayne, NC 28429 Please upload a location map clearly indicating the project site or program service area. Haven Place Location Map.pdf Are you requesting an award in the form of a low- interest loan or a grant? Grant If requesting a loan, please describe the loan Field not completed. terms/interest rate requested. Indicate if the request is for pre-development or construction financing. Cape Fear Habitat is seeking a grant for construction of new affordable single-family housing units for sale through Cape Fear Habitat’s homeownership program for fiscal year 2023-24. Project Type Construction (including site work, infrastructure, operational, and design costs) of new affordable single-family or multifamily housing units for sale or rent Project Narrative Earliest Project/Program Start Date Infrastructure work began spring 2023. Construction is estimated to begin in March 2024. Anticipated completion date of sale/ rental/ occupancy The anticipated completion date is March 2027. Strategic Goals Addressed Increasing Housing Stock, Improving Housing Stock, Increasing Housing Access Describe how your project will address the strategic goal(s) listed above. *Character restriction: additional proposal narrative to address this question attached as "Supporting Narrative." Increasing Stock: At Cape Fear Habitat for Humanity, it is our objective to create opportunities for affordable homeownership that are accessible to low-to-moderate income families. In our Haven Place neighborhood development, we will build 35 permanently affordable housing units that will be available starting next year. This project will increase stock by providing 35 units for sale at an affordable mortgage and increasing the county property tax base by an estimated $10.5 million. Improving Stock: Many of the homes currently on the market at an affordable price may require significant rehabilitation costs to make the homes sustainable and livable. Cape Fear Habitat builds high quality homes while still ensuring affordability. All homes are built to standards as defined by SystemVision, the nation’s only affordable housing guarantee program. Increasing Access: In efforts to increase access to affordable housing through our Homeownership Program, we recognize that a significant prerequisite for access is awareness. Cape Fear Habitat has spent the last year increasing outreach efforts by hiring a Community Outreach Coordinator and making all programs accessible for Spanish-speaking families. Strategic Priorities Addressed Shovel Ready/Operational by July 2024 Infrastructure work has begun on the development with home construction anticipated to begin in March 2024. Typical completion for new builds takes approximately four to five months, depending on the permitting process, weather, and unforeseen supply chain issues. Closing and occupancy are available to the homeowner immediately upon project completion. Cape Fear Habitat has two construction crews, a corps of experienced regular volunteers, and hundreds of other volunteers, including future homeowners. One additional construction crew member is in the process of being hired to fully staff our construction team. Leverage of Funding Other Sources of Funding – Cape Fear Habitat leverages a diverse funding base for its home construction through: Donations (41%) Grants (23%) Mortgage Payments (30%) Other Funding (4%) ReStore Sales (2%) Grants and Donations – These will come from a broad base of funders, including: House Sponsorships – $630,000 Individual Donations – $439,500 Events – $286,250 Other Grants – $257,500 Government Funding (NCHFA, City of Wilmington, New Hanover County Non-County Agency) – $181,500 Local Faith Communities – $150,000 Cape Fear Habitat maintains stringent financial oversight of all our operations. We undergo an independent annual audit, and our finances are monitored on a monthly basis by the Board of Directors and finance committee. Over the years, our creditworthiness has been affirmed through various lending relationships, including Wells Fargo and Dogwood State Bank. We have been approved for a significant unsecured line of credit. While having access to credit is a best practice for financial management, Cape Fear Habitat has not had to utilize this resource. We uphold the highest fundraising standards and have received a platinum rating for accountability and transparency through GuideStar and Candid. Cape Fear Habitat meets all compliance requirements, including insurance and e-Verify. Period of Affordability Cape Fear Habitat homeowners’ typical mortgage length is 30 years. While some homeowners may satisfy this early, our deed restrictions provide us the first right to repurchase all Cape Fear Habitat homes; this allows us to keep housing stock at a permanently affordable status. When Cape Fear Habitat homeowners decide to sell their homes, our deed restrictions on all builds and rehabs allow us to quickly perform renovations and return them to the stock of affordable homes for sale. Additionally, when families relocate and use their generated wealth to purchase a home outside of our program, they build equity and financial resilience. We have expanded our homeownership program to include classes on and opportunities to secure wills, helping homeowners facilitate the transfer of their homes to their heirs and maintain affordable housing security for generations. Our anticipated period of affordability will last well beyond 30 years. Target AMI 60% to 120% Cape Fear Habitat serves families at 30% - 80% AMI through our Homeownership Program. All homes will be sold at appraised value; however, we ensure mortgage payments will not exceed 30% of families’ household income. Calculated at a 0% interest rate, we anticipate the average payable mortgage to be $170,000 based on homeowner affordability. With the families currently enrolled in our Homeownership Program, we anticipate: 42% of units will serve 30%-50% AMI 58% of units will serve 50-80% AMI Acceptance of Housing Choice Vouchers Some Cape Fear Habitat families are eligible for housing choice vouchers. By providing them the opportunity to purchase an affordable housing unit, it will free up voucher resources for other families in our community. In our 36-year experience, we have assisted many families in the voucher program and helped them pivot from public assistance, including public housing, to become independent homeowners. Describe how WHSP funding will expand existing programs and/or projects, if applicable. A primary goal of our strategic plan is to produce more affordable homeownership opportunities, doubling the number of families we serve to 500 by 2025. To do that, we must increase our production and have adequate land inventory to serve those families. While we are meeting our goals in more rural counties, we are faced with depleted land stock and urgency around land acquisition in New Hanover County. Without developable land, as well as the ability to purchase existing housing stock and rehabilitate it, our goals will be delayed. Leveraging funds through WHSP will not only allow us to build more units but free up financial resources to make future land acquisitions and continue providing homeownership opportunities for low- to moderate-income families. Furthermore, WHSP funding will allow us to leverage other funding support to develop our programming, homeownership education, and advocacy efforts. Tell us how your proposal supports New Hanover County's commitment to diversity, equity, and inclusion. *Character restriction: additional proposal narrative to address this question attached as "Supporting Narrative." Cape Fear Habitat is dedicated to addressing the systems of oppression that result in inequitable outcomes for people of color and minority populations. The majority of the families we serve are Black and Hispanic/Latino with low- to moderate- income. Our staff actively works to remove barriers to participation with outreach to underserved areas of the community. We have an ongoing commitment to engage communities that have been historically marginalized and embrace diversity at the client, staff, and board levels. As an Equal Housing Lender, it is our responsibility to serve families from a variety of backgrounds. To properly serve such a diverse group of individuals, we must also be made up of a diverse group of employees, volunteers, and board members. We create this inclusive environment through a variety of measures, beginning with our board. We approach board recruitment strategically, actively engaging with individuals from a variety of ages, occupations, races, and cultural heritage. Recently instituted term limits also help promote board succession which actively fosters diversity. Describe how your development will comply with the Federal Fair Housing Act. Cape Fear Habitat’s mission is rooted in equity and fair housing practices and we comply with all Federal regulations regarding fair housing practices as we are a housing lender. We do not discriminate based on race, ethnicity, class, gender, gender identity, sexual orientation, intersectionality, country of origin, or ability, as well as cultural, political, religious, or other affiliations. As required by HUD, Cape Fear Habitat for Humanity adopts affirmative marketing procedures and requirements for all Habitat homes. Additional Information Project Budget/Pro Forma (must be the spreadsheet provided) Final Housing Program Budget (Services and Programs).xlsx Tell us if/how the project is supported by any other New Hanover County grant, funding, or contribution. Please include the type and amount of funding, contribution, etc. $45,000 Non-County Agency Grant: 2023-2024, current funding to support new home construction in Haven Place. $945,500 Water & Sewer Infrastructure Grant: 2021-2022, previous funding to support the infrastructure of Haven Place. $443,437 Land Donation from the county: 2019-2020, previous conveyance of land for Haven Place. Resume of staff who will manage the project. Resumes of Management Staff.pdf Three examples of past experience, including project title, description, number of units/households assisted, project year, and location. Past Project Experience.pdf Site/Eligibility Criteria • Evidence the site is not impacted by environmental problems such as a brownfield and flood hazard, if applicable • Evidence of appropriate zoning for proposed project, if applicable • Preliminary site plan for project site, if applicable • Evidence of water and sewer accessibility and availability, if applicable Evidence that site is not impacted by environmental problems Field not completed. Evidence of appropriate zoning Field not completed. Preliminary site plan Haven Place Prelimiary Site Plan.pdf Evidence of water/sewer availability Field not completed. Describe how your policies and procedures give access to housing for residents with credit challenges or who may have been involved with the legal system (or upload to the right, if applicable). Cape Fear Habitat does not require a minimum credit score for program participation and enrollment. While in the program, future homeowners meet monthly with our Nationally Certified Credit Counselor to improve their credit and manage debt. Cape Fear Habitat for Humanity requires all members of each household at or above the age of 18 to consent to a criminal background check as a condition of further consideration for our Homeownership and Repair Programs. Records of arrests on pending charges and/or convictions are not an absolute bar to approval of the application. Such information will be used to determine whether the results of the background check reasonably bear on trustworthiness or the person’s ability to perform the duties as a homeowner in a manner which is safe for Cape Fear Habitat’s staff, volunteers, neighbors, and other community members. Assessments of the results use a points- based system to help determine if we may move forward. In situations where final score is neither a pass or fail but instead falls in the middle-range, the context and any other relevant information provided by the person about their unique situation surrounding what happened, and the growth that may have taken place since it happened, is taken into consideration for the Director of Homeowner Services and Executive Director to make a final decision. Fair Housing policies/procedures Fair Housing Policies Affirmative Marketing Plan 2023.pdf Letters of support from other funding sources. Letters of Support.pdf Additional Uploads NCA Funding Commitment.pdf Additional Uploads Supporting Narrative.pdf Additional Uploads Field not completed. Is there anything else you'd like to tell us about your proposal? *Character restriction: additional proposal narrative to address this question attached as "Supporting Narrative." In addition to the New Hanover County Housing Goals, our mission at Cape Fear Habitat and our 35-unit affordable housing development, Haven Place, are directly aligned with the 2023 recommendations from the Workforce Housing Advisory Committee. The committee’s recommendations to “Reduce Barriers to, and Support the Production and Preservation of a Diversity of Housing Options,” and “Expand Housing Counseling & Financial Literacy Programs” would be achieved with the support from New Hanover County’s Workforce Housing Services Program. Funding for the construction of Haven Place would provide homeownership opportunities for low- to moderate-income families, as well as allow us to leverage other sources of funding for program sustainability and expansion.