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HomeMy WebLinkAboutCF Habitat WHSP ApplicationWorkforce Housing Services Program - Request for Proposals FY 2025 *indicates a required field Applicant Information Corporate/Entity Name Cape Fear Habitat for Humanity Financial Fiduciary Cape Fear Habitat for Humanity Organization Receiving Payment Cape Fear Habitat for Humanity Type of Applicant Public Non-Profit Agency Applicant Established Date & State 1987, North Carolina Organization Principal Name and Title Cape Fear Habitat for Humanity Principal Email Address grants@capefearhabitat.org Principal Phone Number 910-762-4744 Please include the name, phone number, and email address of the person that should receive updates about the status of your proposal. Contact Name Lisa Williams Contact Email Address grants@capefearhabitat.org Phone Number 910-762-4744 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 Proof of Tax Exempt Status 01669260 (1).pdf List of Board Members with Terms FY 2025 BOD Member List No Contact Info.docx Organization By-Laws 2011.6.16 Amended By-Laws.pdf Articles of Incorporation Articles of Incorporation and Restatement.pdf Current Year Operating Budget BudgetOverviewBudget_FY25_PL-FY25PLClasses.pdf Most Recent Financial Statement Most Recent Financial Statement.pdf Most Recent Audit 6-30-23 Report and Financial Statements.pdf Most Recent Form 990 06.30.23 CFHFH 990 Final w signature page.pdf Project Summary Project/Program Name Affordable & Permanent Homeownership for Low-to Moderate-Income Families Number of Units/Households to be Assisted 10 Project Location/Address Haven Place, Castle Hayne: 54 Old Mill Rd. (new), 58 Old Mill Rd. (new), 62 Old Mill Rd. (new), 113 Jubilee Ct. (new), 3113 New Dawn Dr. (new), 3125 New Dawn Dr. (new); City of Wilmington: 1309 Corbett St. (buy back), 1311 Corbett St. (buy back), 1404 Corbett St. (buy back), 1106 N. 8th St. (buy back) Please upload a location map clearly indicating the project site or program service area. Project Maps [NHC WHSP 24-25].docx Estimated Total Project/Program Cost 2,014,640 WHSP Funding Requested (Maximum $1.5 Million) 1,000,000 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 terms/interest rate requested. Field not completed. Project Type Construction (including site work, infrastructure, operational, and design costs) of new affordable single- family or multifamily housing units for sale or rent, 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 City of Wilmington Home Rehabs: Four homes currently owned by Habitat homeowners, who have outgrown their homes, will be purchased from the homeowners in late 2024, with remodeling and upgrades underway in early 2025. Remodeling can take from 8 to12 months. With this timeline in mind, Cape Fear Habitat will be able to offer these homes to individuals in our program by December 31, 2025. Castle Hayne New Construction: Infrastructure and land development within the 35-home Haven Place subdivision was completed in July of 2024, rendering all 35 lots shovel- ready. Construction on the first home in Haven Place will be finished in September 2024, and the remaining 34 homes will be finished by December 2026. We anticipate construction starts on the six proposed Workforce Housing- funded homes in Haven Place from June 2025 through December 2025. Given the construction timeline of 5 to 6 months, and variable homeowner progression through our Homeownership Program, we anticipate occupancy in all six Haven Place homes by September 31, 2026. Strategic Goals Addressed Increasing Housing Stock, Improving Housing Stock, Increasing Housing Access Describe how your project will address the strategic goal(s) listed above. Increasing Stock Haven Place will quickly increase stock by providing 35 affordable homes, 6 funded by this request, for future homeowners who have selected a home in this development and are already working their way through the Homeownership Program. To protect affordable housing units, Habitat will exercise their repurchase option to buy back Habitat homes at fair market price, making these units quickly available for homeowners in our program. The repurchased homes will be rehabilitated for a new Habitat homebuyer. Improving Stock Habitat homes are built to SystemVision standards, the nation’s only affordable housing guarantee program. Homes are third-party verified and tested for energy efficiency and comfort, and they are built to be storm- resilient. Increasing Access We have increased access through focused community outreach. All program materials are available in Spanish and translation services for Spanish-speaking participants are provided. We also partner with more than 25 organizations and municipalities to increase access to our programs. Homeownership program applications in the 23- 24 fiscal year were up by 83%. Presumptive Eligibility Presumption 2 Explain how your project/program meets the selected presumption. Cape Fear Habitat for Humanity serves families in the 30%- 80% AMI range. Deed restrictions offer Cape Fear Habitat the first right of repurchase at fair market price. We inspect and refurbish the home and then sell it to a new homeowner at an affordable price. Immediate Impact Describe how the project supports allocation of funds by December 31, 2024 and disbursement of funds by December 31, 2026 This proposal provides a specific plan for the allocation of funds, including the addresses of the proposed new and renovated homes. Distribution of funds will begin almost immediately as there is a pressing need to buy back four homes to keep them in the stock of affordable housing. Without immediate cash to purchase these homes, there is the danger that they will end up on the open market. Distribution will continue throughout the grant cycle as renovations are made to the existing properties and as construction takes place on the new Haven Place homes. Funds will be allocated, and distribution will be complete by December 2026. Please refer to the Grant Budget Outline document in the supplemental uploads. Describe how the project will quickly deploy units to market and break ground by July 2025 The infrastructure at Haven Place is now complete, and all plots in the subdivision are shovel-ready. We have one house under construction, with a completion date of September 2024. Currently, 17 families progressing through our Homeownership Program have selected homes to be built in Haven Place, with construction scheduled to begin between August 3, 2024, and June 28, 2025. The remaining homes are projected to begin construction between July 1, 2025 and June 30, 2026, with all Haven Place construction projected to be complete by December 2026. We are currently in negotiations with four Habitat homeowners in the City of Wilmington who would like to sell their homes. We anticipate that we will begin the process of purchasing these homes by December 31, 2024, and the refurbishment will begin in early 2025. It is our goal to have these homes available for selection by future homeowners in the first quarter of 2025. Strategic Priorities Addressed Mixture of Price Points and AMI Describe the household/unit mix expected to be served by the program/project. Cape Fear Habitat serves families at 30% - 80% AMI through our Homeownership Program. All homes are sold at appraised value; however, through forgivable mortgages and additional financing, we ensure mortgage payments will not exceed 30% of families’ household income. With the families currently enrolled in our Homeownership Program, we estimate: 3 units will serve 30%-50% AMI 7 units will serve 50-80% AMI Options available to homeowners who purchase in Haven Place include 9 floor plans with 1-5 bedrooms and 1-2 bathrooms, depending on need. Period of Affordability Will the units be preserved in affordability for at least 20 years? How many years beyond the minimum 20 years? Yes, Cape Fear Habitat homes remain affordable in perpetuity. Describe how you will ensure compliance with the affordability requirement once the project is completed. 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, allowing 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, as demonstrated by our request to repurchase, refurbish, and resell four homes. 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. Acceptance of Housing Choice Vouchers Will your project accept 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 frees up voucher resources for other families in our community. During the 23-24 fiscal year, 5 families in the voucher program pivoted from public assistance, including public housing, to becoming independent homeowners. Three additional families who have housing vouchers are currently in the Homeownership Program and will leave the voucher program in the coming year. 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 Haven Place Zoning Map.pdf Technical Review Committee approval Haven Place Prelimiary Site Plan.pdf Evidence that site is not impacted by environmental problems Haven Place FEMA Flood FIRMETTE 3101 Castle Hayne Road.pdf Describe how WHSP funding will expand existing programs and/or projects, if applicable. Funding from WHSP will directly support construction projects already underway or at the shovel-ready stage. This funding will not only accelerate these projects, it will allow us the financial latitude to begin work on future construction projects in New Hanover County. WHSP funding will help us leverage other sources to begin development on additional New Hanover County construction projects, including engineering and infrastructure work in a project on St. Andrews Dr. and in Legacy Landing Phase II, our first-ever duplex development. These future projects also align with the Workforce Housing Advisory Committee's Strategic Plan to “increase the diversity of housing” and will help us continue to create more affordable housing in the next five years. As we continue to think creatively about how to close the affordable housing gap in New Hanover County, we look for ways to leverage multiple funders for higher-density and mixed-income projects, which can be more expensive to produce but must also remain affordable for homebuyers. The steps we take today to thoughtfully develop our approach to, and the concept of, homeownership will complement the interests and needs of both the current and future workforce and their ability to live unburdened by housing costs. Tell us if the project is supported by any other New Hanover County grant, funding, or contribution. The entire Haven Place development will cost an estimated $10 million and is only possible through a broad base of community support. To date, we have received funding from New Hanover County, who donated the land, Non-County Agency funding for construction, and a 2023-24 Workforce Housing infrastructure grant. We have applied for funding from the New Hanover Community Endowment and anticipate notification about the grant in September, and if awarded, funding in November 2024. The Community Endowment request does NOT overlap with the projects requested in this proposal. This proposal combines leveraged funding with a request to partially cover the cost of ten homes, totaling $2,014,640. We will secure approximately $1,014,640 by leveraging donations from the community, mortgage payments from current Habitat homeowners, corporate house sponsorships, a grant from the New Hanover Non-County Agency, and down payment assistance from the City of Wilmington (for the buy backs). Addressing affordable housing on a larger scale is effective because it allows us to serve more families quickly, but it also requires continued commitment and support from our partners. Without this sustained support for large construction projects, Cape Fear Habitat would be limited to single, one-off construction projects, limiting our ability to address the need for affordable housing in a meaningful way. How will you fund/develop your project/program if your proposal is not approved for funding? Securing funding for Haven Place construction is a priority for our organization, as this is our largest current project with the ability to serve many future homeowners. We work with corporate and faith-based partners who help provide funding and volunteer labor. We continuously pursue opportunities from well-established grantors and research and apply to new funders. We also hold fundraising events, like the Turkey Trot, CEO Build, and Women Build, to support construction. Additionally, mortgage payments from current homeowners are recycled back into the program and are used to fund Habitat home construction and refurbishment. A project of this scale requires support from a broad base of funders, including our municipal partners like New Hanover County. Funding from WHSP is a foundational component of this combined funding and is necessary to support the pace of construction required to bring as many homes to market as quickly as possible. Without funding from WHSP, other construction projects and land purchases for future projects would most likely be put on a slower development track, affecting our ability to put homeowners under their own roofs in a timely manner. Because of the growing scarcity of land in New Hanover County, delays in land purchases would also affect future developments for years to come. 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). For all future homeowners, including those with credit challenges, we require credit counseling and monthly meetings to review budgeting and finances, as well as to provide educational opportunities throughout the 12 to 18- month Homeownership Program. Unlike conventional mortgage companies, we do not require a credit score for approval to participate in the Homeownership Program, but we do help homeowners take control of their credit scores. According to our data, of the 14 families who were involved in the Homeownership Program in Fiscal Year 2023, 50% began the program with a credit score below 580, which is considered “very poor”. At the time of their home purchase, 43% moved their scores above 670, or “good”, and 21% were above 740, which is considered “very good”. Cape Fear Habitat for Humanity requires all members of each household at or above the age of 18 to consent to a background check for criminal, sex offender, and global terrorist registries. We understand that everyone makes mistakes, and we believe in celebrating growth. If there is anything on an applicant’s criminal record, we ask for context to allow us to consider their unique circumstances. Our assessment tool considers various factors to give us a comprehensive understanding, including whether all misdemeanors and felonies were disclosed, age at the time of the incident, the nature of event, and how recently it occurred. In the event of ineligibility, we offer referrals to other specialized programs. Fair Housing policies/procedures Fair Housing Policies Affirmative Marketing Plan 2023.pdf Tell us how your proposal supports New Hanover County's commitment to equity and inclusion. Cape Fear Habitat is dedicated to addressing the systems of oppression that result in inequitable outcomes for minority populations. Of the families we served in the 23-24 fiscal year with new construction and home repair, 77% were low-to-moderate-income Black families, and 87% were female homebuyers. Our staff works to remove barriers through outreach to underserved areas, as we have a commitment to engage historically marginalized communities. 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 backgrounds. Board term limits also promote board succession which actively fosters diversity. We are committed to furthering equity and inclusion by evolving our staff and leadership to reflect the communities we serve. Our recruitment process uses inclusive language in job posts, and we have partnered with nonprofit agencies, such as StepUp Wilmington, to recruit staff and to combat barriers to equitable access to information about our employment opportunities and application process. Describe how your development will comply with the Federal Fair Housing Act. Not only is Habitat’s mission rooted in equity and fair housing practices, but Cape Fear Habitat is also an Equal Housing Lender, and as such, complies with all Federal regulations regarding fair housing practices. We do not discriminate based on race, ethnicity, class, gender, gender identity, sexual orientation, intersectionality, country of origin, and 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. Our vision is a world where everyone has a decent place to live. Our affiliate is inclusive for members of all communities who actively support our mission of bringing people together to build homes, communities, and hope. By sharing power among a diverse range of voices, we will inherently become a stronger, more impactful, and more resilient organization. Additional Information Project Budget/Pro Forma (must be the spreadsheet provided) WHP Services and Programs Budget Template.xlsx 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. Examples of Past Experience in New Hanover County.docx Letters of support from other funding sources. Letters of Support.pdf Additional Uploads Grant Budget Outline for WFH.xlsx Additional Uploads LL and Haven Place Map.jpg Additional Uploads Field not completed.