HAR §15-311-51. Forms

The corporation may prescribe and use such forms as it may reasonably require to carry out its functions. The corporation at any time may create, modify, amend, or delete any forms in order to effectuate the purposes herein. [Eff 4/23/10; comp JAN 1 5 2022 ] (Auth: HRS §201H- 202) (Imp: HRS §201H-202) 311-21 The rating criteria utilize a point system to rank projects based upon the evaluation criteria established. The ranking of projects determines the priorities to be followed by,the RHTF Commission in allocating program funds to projects under consideration. Projects selected under this rating criteria shall then be evaluated as to the minimum amount of program funds required to make the project feasible. These rating criteria only apply to project awards (i.e., loans and grants); applications for capacity building awards will be evaluated on a case-by-case basis. 4.5 CRITERIA POINT SYSTEM 7/17/96 Each application meeting the minimum criteria will be evaluated and be awarded points in accordance with the following criteria. A minimum of 125 points (out of 250 total points) must be scored in order to be considered for further review by the Commission. 4.5.1 I. Criteria LOCAL HOUSING NEED (55 points) A) Increases the integration of income levels in the immediate community area. Proposed projects serving the lowest income groups in an area of need will receive higher points. (10 points) Income levels in the area are------=--~~ higher than the highest proposed income level in the proposed project. 10 points 100% or more 9 90% - 99% 8 80% - 89% 7 70% - 79% 6 60% - 69% 5 50% - 59% 4 40% - 49% 3 30% - 39% 2 20% - 29% 1 10% - 19% 0 0% - 9% "Immediate Community Area" is hereby defined as the county in which the proposed project is to be located. A smaller area within a county may be 4 - 20 Project Evaluation Chapter 15-311, Hawaii Administrative Rules Exhibit "A" A-1 t 7/17/96 used if detailed income -information is provided and is.deemed satisfactory by staff. B) The proposed pro'ject is supported by ·the local county government in which the project is to be located, as evidenced by a letter of support. (10 points) 10 points 0 Application contains a letter of support from County.mayor, City or County council, County Housing office or agency, or neighborhood board. Letter must not be older than 6 months at time of application. No letter of support from acceptable list was submitted. C) The proposed project will be located in an area where there is a shortage of low-income units relative to projected demand. The-County in which the proposed project is to be located may provide comments with regard to the areas of greatest need with the County. The shortage of units and projected demand need to be substantiated in detail by a third party (preferably an independent market study). (10 points) 10 points 8 5 2 The applicant provided an independent third party market study which described the shortage and demand of the low-income units in the proposed area, and described potential rental rates and absorption of the units. The applicant provided various information (but not an independent market study) which describes the shortage and demand for the units. The applicant described the shortage and demand of units in the application, and submitted comments from the local county government which verifies the information. The applicant described the shortage and demand of units in the 4 - 21 Project .Evaluation Chapter 15-311, Hawaii Administrative Rules Exhibit "A" A-2 t II. 7/17/96 0 application, but did not submit a market study or comments from _the county. The applicant did not provide any substantiating information or description regarding the shortage or the demand of the proposed units. D) The proposed project will add new low-income units to the State's inventory, whether through n~w construction or the substantial rehabilitation. (25 points) 25 points 0 The proposed project will add units to the State's inventory. The proposed project will not add units-to the State's inventory. PROJECT DESCRIPTION AND DESIGN A) The proposed project characteristics address the health and safety of tenants and provides amenities to enhance the project. (10 points) 10 points 5 0 Staff architect has determined that the project design meets the necessary local code requirements and that the project aesthetically fits into the immediate area. The features are listed and explained in the application, and are shown in the project plans. Staff architect has been able to determine that the project design, as submitted, should meet the necessary local code requirements, and that the project aesthetically fits into the immediate area. The individual project features may be listed and shown on the plans, but are not explained as to why they enhance the project. No plans were submitted with the application, or the plans were not in sufficient detail for the staff 4 - 22 Project Evaluation Chapter 15-311, Hawaii Administrative Rules Exhibit "A" A-3 7/17/96 architect to make a determination of the health and safety characteristics. (Staff should evaluate the site's appropriate land use ordinance requirements, and local building requirements for the proposed improvements). III. BENEFITS AND IMPACT A) The proposed project services the original target group (i.e., at least 50% of the units serve individuals earning 60% of area median gross income with the remainder of units serving individuals earning 100% of area median gross income). (10 points) The project will set aside _____ .,..__ of units at 60% or less of area median gross income. 10 points 90% - 100% 8 80% - 89% 6 70% - 79% 4 60% - 69% 2 50% - 59% O* Less than 50% *If this is the case, the project may not qualify for funds based on the statutory requirements of the Project. The remaining 50%. of units must be set aside at 100% or less of area median gross income. B) The project is committed to serving the original target population, as stipulated in the project application, for longer than a 30 year period. (35 points) 35 points The proposed project is permanently committed to serving the target group, or will be committed for a minimum of 51 years. The proposed project is committed for years. 34 points 33 32 31 50 years 49 years 48 years 47 years 4 - 23 Project Evaluation Chapter 15-311, Hawaii Administrative Rules Exhibit "A" A-4 ~ 'J '.,(.., 7/17/96 30 46 years 29 45 years 28 44 years 27 43 years 26 42 years 25 41 years 24 40 years 23 39 years 22 38 years 21 37 years 20 36 years 19 35 years 18 34 years 17 33 years 16 32 years 15 31 years 14 29 or 30 years 13 27 or 28 years 12 25 or 26 years 11 23 or 24 years 10 21 or 22 years 9 19 or 20 years 8 17 or 18 years 7 15 or 16 years 0 Less than 15 years C) The proposed project will give preference in rent up to elderly or physically or mentally challenged individuals. (10 points) % of units for special needs. 10 points 100% 9 90% - 99% 8 80% - 89% 7 70% - 79% 6 60% - 69% 5 50% - 59% 4 40% - 49% 3 30% - 39% 2 20% - 29% 1 10% - 19% 0 Less than 10% D) The proposed project will provide low-income units of two or more bedroom units. (10 points) % of the units are two bedroom or larger. 10 points 100% 4 - 24 Project Evaluation Chapter 15-311, Hawaii Administrative Rules Exhibit "A" A-5 t 7 /17 /96 9 90% - 99% 8 80% - 89% 7 70% - 79% 6 60% - 69% 5 50% - 59% 4 40% - 49% 3 30% - 39% 2 20% - 29% 1 10% - 19% 0 Less than 10% E) The proposed project will charge rent for low- income units that is- less than the maximum rental allowed under the Rental Housing Trust Fund program guidelines. (20 points) The proposed rents are ____ below the maximum rental allowed under the Program. 20 points 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 60% or more 57% - 59% 54% - 56% 51% - 53% 48% - 50% 45% - 47% 42% - 44% 39% - 41% 36% - 38% 33% - 35% 30% - 32% 27% - 29% 24% - 26% 21% - 23% 18% - 20% 15% - 17% 12% - 14% 9% - 11% 6% - 8% 3% - 5% 0% - 2% IV. PROJECT MANAGEMENT A) The applicant and/or project development team has demonstrated experience in real estate development, and appears to possess the ability to successfully implement the proposed project in a timely and on-going manner. Applicants that have previously completed projects using Rental Housing 4 ~ 25 Project Evaluation Chapter 15-311, Hawaii Administrative Rules Exhibit"A" A-6 7/17/96 Trust Fund monies should possess the experience and ability. (10 points) 10 points 5 0 The applicant and/or project development team has completed a previous project with RHTF funds and/or has successfully built similar projects previously. The applicant and/or project development team has not demonstrated experience in the development of multi-family housing, but appears to possess the ability to complete the proposed project. The applicant or the project development team have no demonstrated experience, and their ability to complete this project is questionable. B) Appli~ant is a non-profit organization or is affiliated with a qualified non-profit organization. (10 points) 10 points 0 Applicant is a non-profit organization or is affiliated with a non-profit organization. Applicant is not a non-profit organization, or is nqt affiliated with a non-profit organization. C) Project has low developer fees and overhead. (10 points) Intermediary costs are project development cost. 10 points 8 6 4 2 0 0% - 5% 6% - 10% 1"1% - 15% 16% - 20% 21% - 25% Greater than 25% 4 - 26 of the total Project Evaluation Chapter 15-311, Hawaii Administrative Rules Exhibit "A" A-7 t 7/17/96 D) Applicant presents a reasonable project cost estimate, sources and uses statement, and pro forma operating budget. (10 points) 10 points 5 0 V. LEVERAGE The project cost analysis of the proposed development and proforma operating budget are considered reasonable. Either the project cost analysis or proforma operating pudget is not considered reasonable. Both the project cost analysis and proforma operating budget are not considered reasonable. A) The proposed project provides the maximum number of units for the least amount of Rental Housing Trust Fund monies. (20 points) 20 points For all projects under consideration, each project is ranked and awarded points based on the ratio of the number of units/amount of Rental Housing Trust Fund monies requested. The projects are ranked competitively against other projects, and points are awarded over 20 points. B) The Applicant has secured commitments of other funding resources, including cash, public funds and grants, and private sector loans to reduce the amount of Rental Housing Trust Fund monies requested. Staff may evaluate conditional commitments on a case-by-case basis to determine if points may be awarded. (10 points) % of sources other than Rental Housing Trust Fund monies are secured. 10 points 100% 9 90% - 99% 8 80% - 89% 7 70% - 79% 6 60% - 69% 5 50% - 59% 4 - 27 Project Evaluation Chapter 15-311, Hawaii Administrative Rules Exhibit "A" A-8 7/17/96 4 3 2 1 0 40% - 49% 30% - 39% 20% - 29% 10% - 19% less than 10% C) The proposed project provides the maximum amount of leverage by maximizing other funding sources other than the Rental Housing Trust Fund. (20 points) The proposed project has a leverage ratio of when comparing Rental Housing Trust Fund monies to other funding sources. 20 points 17 15 10 5 0 Less than 20% 21% - 33% 34% - 40% 41% - 60% 61% - 80% Greater than 80% D) The Applicant's development schedule demonstrates that the proposed project will be able to begin construction, contingent upon the receipt of Rental Housing Trust Fund monies, with a ce~tain time frame. (10 points) 10 points 7 4 The Applicant has stated that the proposed project will begin construction immediately upon the receipt of monies. (i.e., the project has site control, proper zoning, Negative Declaration, and all funding commitments). The Applicant has stated that the proposed project will begin construction within 6 months upon the Commission approval. (i.e., the project still lacks one of the items listed above). The Applicant has stated that the proposed project will begin construction within one year upon the Commission approval. (i.e., the project still lacks two or three of the items listed above). 4 - 28 Project Evaluation Chapter 15-311, Hawaii Administrative Rules Exhibit "A" A-9 ~ 0 TOTAL POINTS 7/17/96 Chapter 15-311, Hawaii Administrative Rules The Applicant is unable to determine the timeframe for construction. (i.e., the project still lacks zoning, site control, funding commitments, and Negative Declaration, or the majority of these items). 250 4 - 29 Project Evaluation Exhibit"A" A-10 v ,I r.::::: 0 :z: ,,. > a w (')~ 1- LL. :z:LL. <!D ::z: I- ::::, LL.I - J DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT AND TOURISM Amendments to and compi l ation of chapter 15-311, Hawaii Administrative Rules , on the Summary Pages dated December 6, 2021 , took place on December 7, 2021 , fol l owing a public hearing held on December 3 , 2021 , after public notice was given in the Honolulu Star-Advertiser, The Garden Island, The Maui News, West Hawaii Today, and Hawaii Tribune-Herald newspapers on November 1, 2021 . They shall take effect ten days after filing with the Office of the Lieutenant Governor. ~ <:') ,...... 0.... Ln I :z: = -, N r--i APPROVED AS TO FORM : DONN MENDE Chairperson Hawaii Housing Finance and Development Corporati on APPROVED: A-~ 1/ DAVID~ ~ Governor State of Hawaii Date: Filed