Housing Initiatives is pleased to announce that up to $1 million dollars in federal HOME funding is being made available statewide.  Please click on this link entitled "HOME Statewide RFP/NOFA" for additional details as well as the link entitled "Exhibits A and B." 

Housing Initiatives
The Housing Initiatives Division provides affordable housing solutions and opportunities to Michigan residents, neighborhoods and partners.


Exhibits A and B

Questions and Answers Submitted through 10/7/16:

Q1:  In reading through the recently released RFP For HOME funds, I note that the minimum amount for a lien is $1,000.  Have the upper limits been established as yet?  Should we base our budget on, for example, $25,000/project, and then determining the number of projects we can accomplish from our requested amount in order to develop a budget?
A1:  The limits are built into the activity proformas.  Depending on which one you select the maximum per unit will be different.

Q2:  What is the maximum per project for homeowner rehabilitation?
A2:  The proforma will restrict a project to $40,000 per homeowner rehabilitation.

Q3:  Can you please give more information on “secured” leverage?  Normally our rehabilitation projects get leverage from FHLBI or RD and until they apply, we cannot be sure of the leverage amount is, so we would not be able to secure until then.  Are you looking for other forms of leverage? 
A3:  We are not requiring leverage unless your entity is providing assistance in a HOME PJ Area.  All leverage will be evaluated on a case by case basis.

Q4:  Must Land Bank’s be certified as CHDOS?  If we only work on homes outside of our local entitlement community (City) and in the outcounty municipalities is this requirement waived?
A4:  The Land Bank only has to be a certified CHDO if you are selecting the activity of ADR (Acquisition, Development, Resale).

Q5:  Do Land Bank’s need to secure a HOME match.  This would not be possible for us in our community given how our local City HOME funds are administered (timing, funding cycles, etc).  If we are wanting to rehab a home outside of the City (non-entitlement) to sell to a homeowner is this match required. 
A5:  If the land bank is performing work within an entitlement area then a 1 to 1 match is required.  With MSHDA pre-approval, matching funds may come from a different source that the city’s HOME funds.  This is a competitively scored program and match is one of the scoring factors.

Q6:  What happens with the proceeds of sale?
A6:  The proceeds of sale are returned to MSHDA.

Q7:  Can we rehabilitate vacant properties that come into our inventory via tax foreclosure and sell to homeowners at 80% of median and below?  Do these addresses need to be identified in advance or can we plan to select one to three properties from the spring 2017 foreclosure cycle? We frequently have abandoned homes in the out county areas that could make a good affordable home for a homeowner if they received the needed rehab. 
A7:  This is not a program structure that is currently being offered in this NOFA.  Currently we offer homeowner rehab (for existing homeowners – currently occupied single family homes) and homebuyer (Acquisition, Development, Resale of a property on the open market and Homeowner, Purchase, Rehab of a property on the market that a buyer selects).   However, this is a program structure concept that MSHDA may want to further discuss and consider for future funding rounds.

Q8:  Does the MSHDA grant apply only to single family residences? 
A8:  These programs are for single family which is defined as property which is zoned residential that a) has no mortgage and/or tax delinquencies; b) is not subject to a foreclosure proceedings, court-ordered receivership or nuisance abatement; c) has utilities services turned on; and d) is permanently occupied by homeowners that identify the assisted address as their primary residence. 

Q9:  Do we have to already own the properties? Or can the MSHDA funding be used to purchase single family residences for our families? 
A9:  No, the properties do not have to be owned by the agency.  ADR stands for Acquisition, Development, Resale. 

Q10:  Are we required to have leverage funding available before we apply for the grant?  If yes, can we require the homeowner to come up with the leverage requirements?
A10:  We are not requiring leverage unless your entity is providing assistance in a HOME PJ Area.  All leverage will be evaluated on a case by case basis.  Please note that all requests will be competitively evaluated and one of the scoring criteria is leverage. 

Q11:  Are we required to run the homebuyer component or can we specifically run just the homeowner component?
A11:  You can elect to apply for one or multiple components.

Q12:  Do we follow the Homeowner Rehabilitation Required Documents Checklist? To clarify question #3, are the required documents for HOME owner occupied rehab the same as CDBG single family housing rehab of the past?
A12:  If funded, the required documents checklists will be provided/required to assist with implementation. 

Q13:  Of the money available is there a certain amount that pertains to Rehab vs ADR?
A13:  The funding is not reserved for any particular component or in any particular amount by component. 

Q14:  Who will hold the CHDO proceeds?  The State or the agency?
A14: The State retains all proceeds of sale.

Q15:  Where is the RFP mailed to? 
A15:  The RFP should be mailed to the MSHDA Housing Initiatives Division, 735 East Michigan Avenue, P.O. Box 30044, Lansing, MI 48909 

Q16:  Under Submission Exhibits is Exhibit A actually Attachment 1A?
A16:  Either way is acceptable.

Q17:  When do we do the environmental review for our designated areas?
A17:  The environmental review process would begin after application authorization.

Q18:  Do we have to go through the CHDO certification process if we only intend to do HPR or HOR projects with the grant funds? 
A18:  The CHDO certification process is only needed if you elect to do ADR projects.

Q19:  Under the timeline section it states “agency selection of properties” by 5/15/17.  Please explain what this means. 
If we have HPR funds, how do we identify properties by 5/15.  Does this not apply to HPR? 
A19:  Agency selection of properties means that all properties to be assisted with the funds would need to be identified by 5/15/17.
You should know the area within which the HPRs would be offered.

Q20:  How many RFP's are projected to be granted out of this funding?  Is there a minimum/maximum award amount?
A20:  We have $1 million dollars and anticipate awarding it to multiple entities statewide.  We did not formally establish a minimum/maximum award amount.  However, regional distribution statewide will be one of the determining factors in how funds are awarded.
Q21:  Are Federally/State recognized Tribal Governments (Housing Authority) eligible to apply for this funding?
A21:  Applicants are eligible if they are a) a local unit of government that is not a HOME Participating Jurisdiction (PJ) and/or b) to nonprofit corporations such as Community Development Corporation (CDC)’s and/or Community Action Agencies (CAA)’s providing services to the community and/or Habitat for Humanity Affiliates and/or c) Land Bank Authorities within either HOME non-PJ areas and/or HOME PJ areas.  Tribal Governments are not eligible to apply.
Q22:  Are CDBG (NAHASDA) funding an eligible leveraging source?
A22:  CDBG funding is federal funding as is HOME and should not be used as a leveraging resource for this program.
Q23:  I was wondering if our local office as a non-profit community development financial institution (CDFI) is eligible to submit a proposal in response to the MSHDA RFP?   

Based on the criteria for agencies listed “….and/or to nonprofit corporations such as Community Development Corporation (CDC)’s and/or Community Action Agencies (CAA)’s providing services to the community and/or Habitat for Humanity Affiliates and/or Land Bank Authorities within either HOME non-PJ areas and/or HOME PJ areas.”   Would we be considered a CDC?
A23:  At this time a CDFI does not meet the Housing Initiatives Division’s nonprofit eligibility criteria.

Q24:  Will there be follow up information sent out regarding the Q & A Conference Call?
A24:  MSHDA will hold a Q & A conference call session will be held on Tuesday, October 11, 2016 from 1 p.m. – 2 p.m.

Q25:  Can CDBG Program Income be used as leverage?
A25:  Technically, Yes. – If there was receipted funds exceeding $35,000 during a fiscal year (July 1st – June30th) then continuing activity approval from MEDC will be required.  If less than $35,000 was receipted between (July 1st – June 30th) no approval is required.

Q26:  Is there a project delivery fee associated with each project?  If so, what percentage?
A26:  Please refer to the Administrative and Project Costs Chart.

Q27:  Does the 10% allowed for administration come out of the total grant or is it added to the grant amount requested?
A27:  The administrative dollar amount is contingent on the total amount awarded and the type of projects being funded.  Depending on the requests received and the funding decisions made, the administrative dollars will be provided based on availability of funding in an amount based on the chart referenced in #26 above.

Q28:  What is considered as Proposed Non-HRF Units on Exhibit B - Budget? Projects being funded solely from other funding sources such as Habitat? Please list examples.
A28:  Other units not being paid for with MSHDA Home dollars but being proposed as leveraged units must a) be stand-alone separate funded units Unit A and B – HOME funded and Units C and D – Non-HOME funded and b) demonstrate that they are clearly connected to this particular project i.e. same neighborhood.

Q29: With such a small amount of HOME Funds be to offered statewide, what is the recommended amount to apply for?
A29:  The requested amount should equal the HOME amount needed to complete the activities being proposed.

Q30: Will MSHDA be servicing these loans that require a monthly payment?
A30:  MSHDA will be responsible for ensuring the servicing is completed.

Q31: If we have CDBG Program Income, will it have to be drawn down below the $5,000 to be able to draw on a HOME grant?
A31:  No. 

Q32:  Does the program reimburse at a rate of $10 per hour for volunteer labor?
A32:  No.  This program does not pay for volunteer labor.

Q33:  Is there a preference for pre-certified CHDO’s?
A33:  No.

Q34:  What happens if there is more demand for the HOME funding than what is requested?
A34:  A pipeline will be built identifying where there is a need for this funding.  Prioritization of activities should be provided by the applicant.  We are looking for projects that demonstrate need, in neighborhoods that need help, in areas where previous work has been done, where a place plan or some type of communities plan and/or revitalization strategy supports the request and if applicable whether or not the entitlement is investing in the same area.
MSHDA may have to select the amount awarded based on a reduced number of units due to the limited amount of funding available.

Q35:  Is it possible to call in to one of the conferences instead of attending in person.
A35:  Yes, the Lansing Meeting will have a conference line available at 877-402-9753  Access Code:  3292085

The Conference Call   Number is 877.402.9753, Access Code 3292085.
In addition we are holding a series of meetings in October/November: 

The main purpose of the meeting(s) will be to go over the statewide HOME RFP.  When you register it gives you a brief description of the agenda as follows:  The tentative agenda consists of an overview of the new statewide HOME RFP, the new Analysis of Impediments to Fair Housing, and also a potential opportunity to obtain local housing assessment data via MSHDA.

We are pleased to announce that the MSHDA Housing Initiatives Division will be holding several meetings within the month of October/November.

The meetings will be held from 10 a.m. – 2 p.m. with lunch provided. 

If you plan on attending, please register for one of the following meetings:

Traverse City – October 21st
Grand Traverse County Governmental Center, 2nd Floor training room, 400 Boardman Street, Traverse City, MI 
Registration:  https://www.eventbrite.com/e/mshda-housing-initiatives-regional-meeting-traverse-city-tickets-28255440784
Password to register:  HID Traverse City

Lansing – October 25th
MSHDA Office:  735 East Michigan Avenue, Lansing, MI 48912
Registration:  https://www.eventbrite.com/e/mshda-housing-initiatives-regional-meeting-lansing-tickets-28256127839
Password to register:  HID Lansing
In addition to attending this location also has an option for conference call attendance:
Call In Number:  877-402-9753
Access Code:  3292085

Hancock – October 26th
CCISD – 809 Hecla Street, Hancock, MI  49930
Registration:  https://www.eventbrite.com/e/mshda-housing-initiatives-regional-meeting-hancock-tickets-28256331448
Password to register:  HID Hancock

Detroit – November 2nd
MSHDA Office:  Cadillac Place, 3028 W Grand Boulevard, Suite 4-600, Detroit, MI 48202-6028
Registration:  https://www.eventbrite.com/e/mshda-housing-initiatives-regional-meeting-detroit-tickets-28255186022
Password to register:  HID Detroit

Sault Ste. Marie – November 9th
Avery Square, 510 Ashmun Street, Sault Ste. Marie, MI  49783
Registration:  https://www.eventbrite.com/e/mshda-housing-initiatives-regional-meeting-sault-ste-marie-tickets-28256406673
Password to register:  HID SS Marie

Note:  Pre-registration is required prior to Friday, October 14th.

Applicable RFP/NOFA Housing Initiatives Policy Document Links: