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HomeMy WebLinkAboutCF Collective Block by Block WHSP ApplicationWorkforce Housing Services Program - Request for Proposals FY 2025 *indicates a required field Applicant Information Corporate/Entity Name Collective Impact in New Hanover County, Inc. dba Cape Fear Collective Financial Fiduciary Donna Meacham, Chief Finance Officer Organization Receiving Payment Cape Fear Collective Type of Applicant Private Incorporated Non-Profit Agency with IRS 501(c)(3) Designation Applicant Established Date & State January 23, 2019 Organization Principal Name and Title Cara Stretch, Chief Executive Officer Principal Email Address cstretch@capefearcollective.org Principal Phone Number 910-619-8274 Please include the name, phone number, and email address of the person that should receive updates about the status of your proposal. Contact Name Suzanne Rogers Contact Email Address srogers@capefearcollective.org Phone Number 865-705-2879 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 Form 990 501(c)3 Determination Letter IRS.501(c)3Ltr.pdf List of Board Members with Terms CFC_FY25 Board Roster .docx.pdf Organization By-Laws CFC_Bylaws_-_BoD_Approved_6-22-22 (1) (2) (1).pdf Articles of Incorporation CFC_Articles of Incorporation (1).pdf Current Year Operating Budget CFC Final Budget 2024-2025 - Sheet1 (1) (1).pdf Most Recent Financial Statement Q1 2024 IO1 Financial Workbook.pdf Most Recent Audit Audit.Draft_501c3 - YearEnd 6-30-2023 Combined Financial Statements Supp Info (4-22-2024).pdf Most Recent Form 990 2022 990COLLECTIVE IMPACT IN NEW HANOVER COUNTY.pdf Project Summary Project/Program Name Block by Block Number of Units/Households to be Assisted 18-24 depending on scope of work/costs Project Location/Address Wilmington, NC various address please see proforma Scattered-site single-family rental units Please upload a location map clearly indicating the project site or program service area. CFCMap.pdf Estimated Total Project/Program Cost $6,015,128/annually WHSP Funding Requested (Maximum $1.5 Million) $837,237/annually Are you requesting an award in the form of a low- interest loan or a grant? Loan If requesting a loan, please describe the loan terms/interest rate requested. Forgivable Loan at 0% interest w/20 year affordability period at minimum Project Type Conversion/rehabilitation of existing residential and non- residential structure(s) for affordable single-family or multifamily housing units for sale or rent Project Narrative Project Timeline A detailed timeline is attached. Anticipate the start of rehabilitation construction no later than November 2024 with unit 1, followed by approximately 1 unit starting each month after that. Completion of six to eight NHC units by October 2026 at the latest. CFC has control/ownership of units and 4 of 8 units identified for NHC WHSP are vacant. Rehabilitation construction can begin immediately after the development of the scope of work and bidding. This project is shovel-ready. Strategic Goals Addressed Improving Housing Stock Describe how your project will address the strategic goal(s) listed above. Major rehabilitation construction of 18 to 24 scattered-site single-family residential units located in the Northside and Southside neighborhoods will be brought to quality standard, thereby eliminating substandard housing conditions and neighborhood blight while also preventing displacement of low-to-moderate income households. Preserving Naturally Occurring Affordable Housing (NOAH) in areas experiencing redevelopment and displacement due to the loss of affordable housing. Presumptive Eligibility Presumption 1 Explain how your project/program meets the selected presumption. Housing rehabilitation for the preservation of affordable housing for eligible households earning at or below 80% AMI is an allowed HOME Investment Partnership activity. Immediate Impact Describe how the project supports allocation of funds by December 31, 2024 and disbursement of funds by December 31, 2026 Cape Fear Collective (CFC) owns the homes and has identified vacant homes needing major rehabilitation to start construction. The houses are available and ready for work to begin upon receipt of funds. Unlike LIHTC, new construction or Homeowner Rehab projects the Block by Block will not experience delays due to closing for land acquisition, zoning variances or rezoning, qualifying homeowners, or closing on other financing sources. Describe how the project will quickly deploy units to market and break ground by July 2025 Cape Fear Collective owns the homes to be rehabilitated and is prepared to complete updated assessments and develop scopes of work to bid the rehabilitation work out to qualified contractors in the fall of 2024. As vacant houses are rehabilitated tenants from occupied units in need of rehabilitation will be permanently relocated to recently rehabilitated units creating vacant units to continue the process. CFC anticipates bidding out at least one house a month for rehabilitation beginning in October 2024 and increasing this to two units per month in April 2025. Completing 36 units by November 2026, including up to eight units with NHC WHSP funds. Because these are existing units that will be rehabilitated the timeline for permits is greatly reduced compared to new construction. In most instances, the unit's original footprint will not be altered significantly, thereby the need for architectural design and permitting is not required. Strategic Priorities Addressed Mixture of Price Points and AMI Describe the household/unit mix expected to be served by the program/project. This project proposes to serve up to 24 households with incomes at or below 80% AMI. The project revenue projections are based on the HUD High HOME rent standard which is affordable to households at 65% AMI. Period of Affordability Will the units be preserved in affordability for at least 20 years? How many years beyond the minimum 20 years? Yes, the units will be preserved in affordability for at least 20 years as per the NHC loan terms and deed restrictions. Homes will be transferred into the Cape Fear Community Land Trust as they become vacant for sale to low-to- moderate homebuyers. The Land Trust model ensures affordability for 76 years. Over time portions of the rental portfolio may be sold to mission-aligned organizations for continued use a affordable rental housing. In this instance, CFC will utilize deed restrictions to ensure a longer-term affordability period. Describe how you will ensure compliance with the affordability By utilizing a loan instead of grant for the NHC WHSP funds, NHC can use deed restriction to ensure a 20 year affordability period. Notice of any transfer of property will be provided to NHC by the Register of Deeds. CFC will use requirement once the project is completed. the same method to place a forgivable loan on properties transferred if needed. In some instances, the source of funds used for the acquisition of CFC properties i.e. land trust, CPLP, DPA etc. will use deed restriction to ensure affordability or recapture of public funds. Acceptance of Housing Choice Vouchers Will your project accept Housing Choice Vouchers? CFC currently accepts Housing Choice Vouchers and will continue to do so. Vacant CFC rental units are offered to the HCV program first before being marketed to the general public. Approximately one-third of CFC's rental portfolio is occupied by HCV holders. Site/Eligibility Criteria • Evidence of appropriate zoning for proposed project, if applicable • Technical Review Committee approval including preliminary plat or site plan approval, if applicable • Evidence the site is not impacted by environmental problems such as a brownfield and flood hazard, if applicable Evidence of appropriate zoning Field not completed. Technical Review Committee approval Field not completed. Evidence that site is not impacted by environmental problems Field not completed. Describe how WHSP funding will expand existing programs and/or projects, if applicable. WHSP funding will allow CFC to bring substandard single- family rental units up to quality housing standards and maintain the units for affordable housing. Without public partnership, the private CRA funds used to acquire these properties will not sustain their continued use as affordable rental housing due to the dilapidated condition of the properties. Tell us if the project is supported by any other New Hanover County grant, funding, or contribution. The rehabilitation construction project is not supported by other NHC grants; however, an NHC grant of $17,961 will be used for tenant stabilization to assist tenants in CFC properties that will be rehabilitated. How will you fund/develop your project/program if your proposal is not approved for funding? Without NHC WHSP the number of dilapidated single- family scattered-site rental units addressed will be reduced. The opportunity for NHC to leverage local CRA funds will be lost. The opportunity to save affordable housing stock will be diminished and low-to-moderate income families will be displaced due to the lack of quality affordable housing within NHC. Describe how your policies and procedures give access to housing for residents with credit challenges or those who may have been involved in the justice system (or upload to the right, if applicable). CFC's rental portfolio is often housing of last resort for low- to-moderate income tenants unable to find decent, affordable housing elsewhere. Currently, CFC's properties require some level of repair or rehabilitation due to years of neglect by the previous owner. CFC uses a third party for property management -RPMC. RPMC evaluates applicants based on available income and past rent payment history. Credit scores are not used as criteria for renting nor is involvement with the criminal justice system. Fair Housing policies/procedures RPM Fair Housing Policy.pdf Tell us how your proposal supports New Hanover County's commitment to equity and inclusion. CFC's proposal supports providing a diversity of housing opportunities within neighborhoods to ensure access to housing for people regardless of income level. This promotes an inclusive community even in areas that are experiencing revitalization and redevelopment. Describe how your development will comply CFC does not discriminate against any protected class and offers reasonable accommodations as requested. CFC with the Federal Fair Housing Act. utilizes a property management partner that adheres to Fair Housing. Please see attached RPM Fair Housing Policy. Additional Information Project Budget/Pro Forma (must be the spreadsheet provided) CFC.WHP Construction Budget Template.xlsx Resume of staff who will manage the project. SERResume.short8.24.pdf Three examples of past experience, including project title, description, number of units/households assisted, project year, and location. CFC.PastProjects.NHC.WHSP.pdf Letters of support from other funding sources. Cape Fear Collective Mail - NHCE Grant Application Received.pdf Additional Uploads 3. Community Served.pdf Additional Uploads Field not completed. Additional Uploads Field not completed. 3. About Your Community* CFC works across NC, but our housing efforts are focused in our own backyard, here in New Hanover County and Wilmington. As the 2022 Bowen report made clear, the issue of housing cost burden is most pronounced for renters [1], who tend to have lower incomes than owner-occupants [2], in both the city and the county. It also estimated that the rental housing gap is largest for households at or below 30% AMI, but the shortage is growing most for households at 61- 80% and 81- 120% AMI [1]. Low to moderate income households are not only faced with the challenges of shrinking supply. Within the city, census tracts in the north and south sides of the city have the highest percentage of both low-to-moderate income households [3] and of severe housing problems, which is reflective of quality and/or affordability [4]. While s ome tracts in the county had as few as an estimated 8.5% of people experiencing severe housing problems in 2019, others on the north- and south-sides had a prevalence as high as 30.3% and 29.3% respectively. While data on our specific resident population is currently limited, this synthesis of secondary data indicates that we primarily serve an economically disadvantaged population given that 80% of our homes are in the Northside or Southside. Existing and prospective future tenants are our primary stakeholders. We engage residents through contracted property management and intend to deepen tenant relations with the addition of case management. Dedicated case management staff will create a pathway to collect data to monitor proposed KPIs, listen to our constituency, provide community resource referrals, and better understand opportunities to improve our programs and interventions. Though case management will be a new internal operation, CFC is already embedded in the local housing landscape, attuned to both the assets and needs of the community. We provide rental housing to clients of Good Shepherd Center (GSC), Family Promise, A Safe Place, Trillium, and Global Connections. In partnership with GSC and Norco Management, CFC recently reopened Driftwood to house chronically homeless individuals referred by the Cape Fear Continuum of Care. We are a partner – again with Norco – in the development of Estrella Landing, an 84-unit LIHTC project slated to serve households at or below 60% AMI. Going into our fifth year of property ownership, we have first-hand knowledge of and experience with needed repairs to the portfolio. This experience led us to add construction expertise through a project management contract with Paul Stavovy, a licensed general contractor at the Cape Fear Community Land Trust (CFCLT). We have also worked to transfer properties to LINC, CF Habitat for Humanity, and the CFCLT for ownership and rental. Finally, the proposed project-based rental subsidy serves to expand existing relationships with local housing funders, given that about 30% of our residents receive a tenant-based subsidy through Trillium or WHA.