Sec. 8212 - Application Selection and Evaluation

ยง 8212. Application Selection and Evaluation

(a) Applications shall not be considered for funding unless the application is received within the time frames specified in the NOFA and demonstrates that all of the following conditions exist:

(1) the applicant is eligible pursuant to Section 8204 and 8204.1;

(2) the applicant proposes at least one eligible activity and the proposed uses for the HOME funds are eligible pursuant to Sections 8205 and 8210(c);

(3) the application is complete pursuant to Section 8211;

(4) the total amount of funds requested for both administration and activity-specific costs does not exceed the funding allocation limit which is stated in the NOFA and any allowed increase to this limit pursuant to Section 8217;

(5) if applicant is a CHDO, includes procedures ensuring the CHDO's effective project control of activities assisted with HOME funds pursuant to 24 CFR Section 92.300(a)(1); and

(6) for applications proposing projects involving acquisition of rental housing, acquisition and rehabilitation of rental housing, rehabilitation of rental housing, construction of rental housing, or construction of housing for first-time homebuyers, the application demonstrates:

(A) that the project is financially feasible;

(B) site control is obtained pursuant to Section 8303;

(C) that there are no pending lawsuits that will prevent implementation of the project, as proposed;

(7) for applications proposing rental activities, the application contains documentation demonstrating that the project either complies with or is exempt from Article 34 of the California Constitution.

(b) Each application considered for funding shall first be rated using the criteria contained in this subsection and either the criteria in subsection (c) for program applications or the criteria listed in subsection (d) for project applications. Maximum possible rating points are listed after each criterion. Program applications, rental project applications, and first-time homebuyer project applications shall be rated and ranked separately. All applications shall be rated on the following:

(1) If the applicant is a city or county, the city or county's adopted housing element is in substantive compliance on the date applications are due to the Department as published in the NOFA. If the applicant is a Developer (which includes a CHDO applying as a Developer,) the city or county's adopted housing element is in substantive compliance on the date applications are due to the Department as published in the NOFA. Newly formed cities that are not required to have an adopted housing element in compliance with general plan law shall receive full points in this category. CHDO projects and projects developed on Native American Lands as defined in Section 8201(y)(1) shall receive full points in this category. (50 points)

(2) Whether the application proposes activities within a jurisdiction whose formula allocation is being reallocated by the Department. (50 points)

(3) Whether the application proposes activities in a rural area. (50 points)

(4) Whether the application addresses one or more state objectives, as identified in the Consolidated Plan or the Annual Plan of the Consolidated Plan required by HUD. (200 points)

(c) Applications proposing programs shall be evaluated on these additional criteria:

(1) Capability to operate a HOME program, as demonstrated by the following: (up to 250 points).

(A) Performance of the applicant in meeting federal and State HOME requirements specified in this Section in previous State HOME contracts (up to 150 points). For this criterion only, all applicants initially will be credited with 150 points. Applications will then have points deducted for performance problems under previous State HOME contracts.

(i) Applicants who have in the last three contracts, from prior years as defined in the NOFA, not submitted required quarterly, annual, or project completion reports on time will lose up to 50 points; and

(ii) applicants who have not complied with monitoring and contractual requirements identified by the Department in the last 5 years as defined in the NOFA will lose up to 100 points.

(B) Prior experience of the applicant, as measured by implementation of HOME, and/or other local, State or federal affordable housing or community development programs during the most recent seven year period (up to 100 points):

(2) Community need based on one or more of the following factors: poverty level and overpayment for housing by low-income households by tenure (i.e., owner or renter), vacancy rates for housing in the jurisdiction by tenure, age of housing stock by tenure in the jurisdiction, numbers and percentages of substandard housing units, overcrowding of housing by tenure in the jurisdiction, and percentages of households that are below poverty level and who are overcrowded and living in substandard housing by tenure, as reflected in U.S. Census data; the numbers of low-income housing units at risk of conversion to market rate and those that actually have converted to market rate; and the ratio between the median home sales price and the median household income in the jurisdiction. The NOFA will identify the community need factors that apply to each activity and required source and who will be required to provide the source documentation. (up to 250 points)

(3) Feasibility of the program being applied for, as demonstrated by the degree to which the applicant's program guidelines reflect federal and State requirements, and the following: (up to 100 points)

(A) for first-time homebuyer programs, the number of units which have sold in the city or county over the preceding 12 month period at a price which is affordable, given the proposed HOME assistance, to lower income families;

(B) for rehabilitation of owner-occupied housing and rental housing programs, the number of overcrowded households by tenure and the age of the housing stock by tenure in the city or county, as reflected in U.S. Census data;

(C) for tenant-based rental assistance programs, the overpayment by lower-income renter households as reflected in U.S. Census data.

(d) Applications proposing projects will be evaluated on these additional criteria:

(1) Capability to develop a HOME-assisted project, as demonstrated by the following: (up to 450 points)

(A) Performance of the applicant, developer, owner, and managing general partner in meeting federal and State HOME requirements specified in this section in previous State HOME contracts; (up to 200 points). For this criterion only, all applications will initially will be credited with 200 points. Applications will then have points deducted for performance problems under previous State HOME contracts.

(i) applicants, developers, owners, and managing general partners who have in the most recent five-year period as defined in the NOFA, missed deadlines for projects specified in Section 8217 will lose up to 200 points; or applicants who have not submitted required monthly, quarterly program income, annual, or project completion reports on time will lose up to 50 points;

(ii) applicants, developers, owners, and managing general partners who have in the most recent five-year period as defined in the NOFA, made a material misrepresentation of any requirement or fact in an application, project report or other document submitted to the Department including but not limited to that which jeopardizes the Department's investment in a project or places the Department at risk of a monitoring finding will lose up to 200 points; and;

(iii) applicants, owners, and managing general partners who have not complied with monitoring requirements identified by the Department in the last five years will lose up to 100 points.

(B) Prior experience of the applicant, as measured by the implementation of HOME, and/or other local, State or federal affordable housing or community development projects during the most recent seven year period; (up to 50 points)

(C) Prior experience during the most recent five year period of the applicant, developer, owner, and managing general partner in developing the same type of subsidized project, in a manner consistent with the applicable funding source, as is proposed in the application. (up to 200 points)

(2) Community need based on one or more of the following factors: poverty level and overpayment for housing by low-income households and by tenure (i.e., owner or renter), vacancy rates for housing in the jurisdiction by tenure, age of housing stock by tenure in the jurisdiction, numbers and percentages of substandard housing units, overcrowding of housing by tenure in the jurisdiction, and percentages of households that are below poverty level and who are overcrowded and living in substandard housing by tenure, as reflected in U.S. Census data; the numbers of low-income housing units at risk of conversion to market rate and those that actually have converted to market rate and the ratio between the median home sales price and the median household income in the jurisdiction. The determination of poverty levels for scoring purposes for projects on Native American Lands will be defined as the poverty level in the local jurisdiction where the Native American Lands are located. The NOFA will identify the community need factors that apply to each activity and required source and who will be required to provide the source documentation. (up to 250 points)

(3) Feasibility of the project. For rental projects, feasibility will be as demonstrated by compliance with the Uniform Multifamily Regulations (commencing with Section 8300) and State and federal HOME requirements. For first-time homebuyer projects, the Department will evaluate the ability of the proposed project to meet State and federal HOME requirements. This will include but is not limited to an evaluation of the adequacy of the proposed development budget, the demonstrated market for the project, including both the assisted units, and the non-assisted units, if any, and the affordability of the project, taking into account other available financing and HOME income requirements. Projects will also earn points based on having the greatest percent of assisted units. Point values for each factor will be identified in the NOFA. (up to 200 points)

(4) Readiness of the project, as demonstrated by the project development plan, status of local governmental approvals, design progress and financing commitments. Project development plans, status of local governmental approvals and design process may be accepted from Tribal Planning Departments for projects on Native American Lands as defined in Section 8201(y)(1). Point values for each factor will be identified in the NOFA. (up to 300 points)

(5) Applications must receive at least 930 points in subsections (b) and (d) in order to be eligible for funding.

(1. New section filed 7-2-92 as an emergency; operative 7-2-92 (Register 92, No. 28). A Certificate of Compliance must be transmitted to OAL 10-30-92 or emergency language will be repealed by operation of law on the following day. 2. New section refiled 10-23-92 as an emergency; operative 10-30-92 (Register 92, No. 43). A Certificate of Compliance must be transmitted to OAL 2-23-93 or emergency language will be repealed by operation of law on the following day. 3. New section refiled 3-2-93 as an emergency; operative 3-2-93 (Register 93, No. 10). A Certificate of Compliance must be transmitted to OAL 6-30-93 or emergency language will be repealed by operation of law on the following day. 4. Certificate of Compliance as to 3-2-93 order including renumbering and amendment of former section 8213 to section 8214 with amendment of Note and renumbering of former section 8214 to section 8215 transmitted to OAL 5-26-93 and filed 7-7-93 (Register 93, No. 28). 5. Renumbering of former section 8212 to new section 8210, and renumbering of former section 8214 to new section 8212, including amendment of section and Note filed 3-14-97; operative 3-14-97 pursuant to Government Code section 11343.4(d) (Register 97, No. 11). 6. Editorial correction of Note (Register 99, No. 3). 7. Amendment of subsections (b)(1)(B)(i)-(ii) filed 1-14-99; operative 2-13-99 (Register 99, No. 3). 8. Amendment of subsections (b)(3)-(4), new subsection (b)(5), amendment of subsections (b)(3)(B)(i) and (c)(4) and new subsection (c)(5) filed 12-19-2001; operative 12-19-2001 pursuant to Government Code section 11343.4 (Register 2001, No. 51). 9. Amendment filed 9-9-2004; operative 9-9-2004 pursuant to Government Code section 11343.4 (Register 2004, No. 37). 10. Amendment of subsections (a)(2), (b) and (c)(1)-(c)(1)(A)(i) and repealer of subsections (c)(4)-(5) filed 8-12-2005; operative 9-11-2005 (Register 2005, No. 32). 11. Amendment of subsections (b) and (d)(1)(A)-(d)(1)(A)(i), new subsection (d)(1)(A)(ii), subsection renumbering and amendment of newly designated subsection (d)(1)(A)(iii) and subsection (d)(3) filed 12-10-2007; operative 12-10-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 50). 12. Amendment of subsections (b)(4), (c)(2), (d)(1)(A)(ii) and (d)(2) and amendment of Note filed 10-10-2012; operative 10-10-2012 pursuant to Government Code section 11343.4(Register 2012, No. 41). 13. Amendment of subsections (b)(1), (d)(2) and (d)(4) filed 10-31-2016; operative 1-1-2017 (Register 2016, No. 45).)

Note: Authority cited: Sections 50406 and 50896.3(b), Health and Safety Code. Reference: 24 CFR part 91, 24 CFR Sections 92.50, 92.102, 92.204, 92.205, 92.206, 92.218, 92.250, 92.451 and 92.453; and Section 50896.3, Health and Safety Code.

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