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Office of Community Development

HOME Affordable Rental Production Program

The purpose of the Program is to assist the development of affordable rental housing in Orange County, at least a portion of which is to be occupied by individuals and families earning no more than sixty percent (60%) Department of Housing and Urban Development. To determine household income eligibility, please refer to the HUD Income Limits chart. The Program will provide loans to for-profit and not-for-profit builders under the Federal HOME Investment Partnerships Program (the HOME Program) established pursuant to the National Affordable Housing Act.  
Request For Proposals are issued periodically and projects will be selected for the Program by OCD after a review of all information submitted by applicants and a rating and ranking of all proposals pursuant to the Project Selection Criteria specified herein. .

HOME Program Rents

Each HOME-assisted affordable rental housing project consisting of five (5) or more rental dwelling units must have at least 20% of the HOME assisted units occupied by families whose annual incomes do not exceed 50% of the area median family income. In conformance with the above occupancy requirements, rents of HOME assisted units are set at 30% of 65% of median income and 30% of 50% of median income, however, the HOME rents can never be more than the HUD fair market rent (FMR). For a listing of current HOME Program Rents, please click the link. Mixed income project may contain units that are not HOME -assisted and such units are not subject HOME rental restrictions. However, if some units in a project are HOME assisted, each building in the project must contain HOME assisted units.

HOME assisted units must remain affordable, pursuant to deed restrictions, for a minimum of twenty (20) years in the case of new construction projects, and, in the case of rehabilitation, 5 - 30 years:

Note: The above are minimum periods of affordability, which may change on a project-by-project basis.

The HOME Program rents include the local HUD-approved utility allowances. If tenants pay 
utilities, these must be subtracted from the HOME rents to determine the actual amounts that may be charged to tenants. 
New construction and rehabilitation projects are eligible under the Program. Rehabilitation of
projects that are substantially occupied are discouraged, unless such units are in imminent danger of becoming uninhabitable. In such cases, the relocation and displacement plan must meet HUD’s requirements, pursuant to the federal Housing Relocation Act. 

Program Requirements

The following sets forth Program requirements that must be met by all builders and projects. If another public agency (ie., the New York State Division of Homes and Community Renewal or Housing Finance Agency) will be the primary funding source, OCD will coordinate its review and oversight responsibilities, to the maximum extent possible, with the other funding agency. In any case, OCD will be required to insure compliance with all HOME Regulations.

A. Project Costs. All project costs must be reasonable. OCD will perform a review of project costs in order to determine reasonableness.

B. Acquisition Costs. Acquisitions at a market price must be pursuant to arms-length transactions involving unrelated parties and, in any event, must not be in excess of market value as determined by an appraisal in form and substance satisfactory to OCD. Costs for acquisitions involving related parties or parties participating in the project may be disallowed in excess of the original purchase price of the seller or appraised value, whichever is lower. A copy of the appraisal supporting the acquisition price must be submitted to OCD. HOME funds may not be used to refinance existing mortgages.

C. Underwriting Standards. All projects must be financially feasible. Accordingly, income and expense pro-formas for each project, which demonstrate financial feasibility, must be submitted to and approved by OCD. Supporting documentation, including market studies to justify projected rent levels, must also be submitted, if requested.

D. Financing Plan. All sources of financing for payment of project costs must be identified. Financing in excess of project costs is prohibited. After selection of projects for funding, OCD must review the final financing plan, including amount to be made, available under the Program, and determine that such financing plan is sufficient and appropriate.

E. Design Requirements. All plans and specifications must be in compliance with federal, state and local codes and regulations, including HUD Section 8 housing quality standards and, 504 provisions for handicapped accessibility. In addition, all projects should reflect the historic character of their environment in terms of design, scale, size and materials. Applicants are also encouraged to obtain LEED Certifications for new construction projects.

F. Environmental Requirements. The environmental effects of each project assisted under the 
Program must be assessed in accordance with the National Environmental Policy Act ("NEPA") and State Environmental Quality Review Act ("SEQRA"). It is anticipated that another private or public agency will have performed these assessments in most cases. If the assessments have been performed by other agencies, OCD will rely upon such assessments to the extent permitted by law and make findings based thereon. If SEQRA review, but not NEPA review, has been performed, OCD will undertake the NEPA assessment relying upon the SEQRA assessment to the extent permitted by law. Where applicable, lead-based paint hazard inspection and risk assessment will be required by OCD.

G. Professional Services and Fee: The cost of all professional services must he reasonable, as 
determined by OCD. OCD will also review the selection of/and contracts with, architects, engineers, attorneys, construction managers, contractors and other consultants in addition to the cost associated with provision of insurance coverage required by OCD.

 

H. Attention Developers

Rental Project Selection Criteria 

OCD will consider the following criteria in selecting builders and projects. OCD reserves the right to consider criteria other than the following and to assign to each of the following and to such other criteria as are considered such weight as OCD may in its absolute discretion determine (all criteria used by the OCD is being collectively referred to herein as the "Project Selection Criteria"). The following are listed in relative order of importance.

A. The experience of the builder and the development team with projects of a similar size, scale and complexity.
B. The extent of site control by the builder.
C. The extent to which the builder has firm commitments for all project financing.
D. The extent to which the builder has all necessary approvals and permits for the construction of the project.
E. The proposed development schedule and evidence that such schedule can be met.
F. The number of units to be assisted in the project.
G. The per unit Program funding requested.
H. The per unit project costs proposed.
I. The financial feasibility of the project.
J. Whether, and the extent to which, real property tax exemptions or abatements have been granted to the project.
K. The quality of the development program and design of the project, including, if applicable, the extent in which rehabilitation of pre-1978 buildings addresses lead paint hazard reduction.
L. The builder's record in business dealings with the United States, State of New York and municipalities thereof.
M. The extent to which the project addresses the priorities of need set forth in the County's 
Housing and Community Development Plan (HCDP).
N. The extent of community support for the project.
0. The extent to which the project proposes to maintain affordability beyond the minimum HOME affordability period.

HOME Program Rents

The rent limits shown below include utility allowances. See Section 8, Existing Housing Allowances for Tenant-furnished Utilities and Other Services, for the utility company where project is located. Also, please note the unit types (i.e. garden apartment, 1& 2 family row house, apartment, etc.). Utility allowances must be subtracted from the rents shown below to arrive at base rents charged to tenants.

When calculating HOME Program rents, use the lower of rents between the HOME rents and the Section 8 FMR for the Newburgh, NY-PA PMSA. The table below denotes the most current HUD approved rents for Orange County factoring in the Section 8 FMR where appropriate. The U. S. Department of Housing and Urban Development annually publishes HOME Program rents. 

Poughkeepsie-Newburgh-Middletown

NY MBA

 

 

 

 

 

 

 

LOW HOME RENT LIMIT

730

782

938

1084

1210

1335

1459

HIGH HOME RENT LIMIT

784

922

1128

1375

1473

1653

1791

For Information Only:

 

 

 

 

 

 

 

FAIR MARKET RENT

784

922

1128

1383

1473

1694

1915

50% RENT LIMIT

730

782

938

1084

1210

1335

1459

65% RENT LIMIT

929

997

1198

1375

1515

1653

1791

 


See HUD Website: 
http://www.hud.gov/offices/cpd/affordablehousing/programs/home/limits/rent