Doing Business With AH

Notice of Funding Availability (NOFA)

Purpose:  Atlanta Housing anticipates receiving applications from landlords of individual properties suitable to house families of 3 – 5 persons with a minimum of 8 units ready to lease. AH will also consider Landlords who can bundle several units in proposed clusters within the UCN boundaries.  Landlords who can provide residential units through existing housing or repurposing of other existing   buildings located in the UCN Boundaries, and are qualified and interested in receiving HomeFlex for their rental units, may submit an application at any time. If an application is approved and provided funding through HomeFlex, then AH will execute a Commitment Letter for an initial term of anywhere from five (5) to Twenty (20) years with options for possible extensions. If Atlanta Housing provides capital assistance for rehabilitation work at the property, Atlanta Housing will require a restrictive covenant on the property for a term of 30-40 years. AH also anticipates notifying Landlords within 30 days of AH’s receipt if application if is not awarded HomeFlex with specific rationale for why award was not made. AH reserves the right to cancel or discontinue its application process for HomeFlex for existing housing units within the UCN Boundary at any time throughout the duration of this NOFA if determined to be in the best interest of AH to do so.

NOFA Schedule of Events

The following Schedule of Events represents AH’s estimate of the timetable that will be followed in connection with this NOFA:

 

Steps	TIMEFRAME
Submission Period for Application	Applications may be submitted at any time.
Board Approval and Notification to Applicant	Applications must receive an acceptable evaluation from an Atlanta Housing Evaluation Committee in order to be submitted to AH’s Board of Commissioners for approval granting AH authorization to enter into a HomeFlex Agreement with the applicant.
Execution of the HomeFlex Agreement	AH will enter into a HomeFlex Agreement when: all required compliance requirements have been met and submitted to and approved by AH.   Provided the application meets all requirements of this NOFA, and Atlanta Housing approves the application and the AH Board of Commissioners authorizes the award, AH will enter into a HomeFlex Agreement for an initial term from five (5) to ten (10) years with option to extend. Extensions would be exercised at Atlanta Housing’s sole discretion.

 

Application Process

How To Submit Your Application.

Applications can be submitted at any time until Atlanta Housing, at its sole discretion, determines that it’s needs for affordable housing in the University Choice Neighborhood have been met.

Applicants may submit one (1) paper (or hard) copy of their applications to:  Atlanta Housing, Rae Clifton, Purchasing Analyst, Atlanta Housing Authority, 230 John Wesley Dobbs Avenue, N.E. Atlanta, Georgia 30303  OR

Applicants may submit one (1) electronic (soft) copy of their applications via email to: Rae.Clifton@atlantahousing.org

All proposals transmitted by mail or electronically delivered contain the same

A property may only be submitted a total of 3 times as a combination of proposed clusters or once by itself.

AH reserves the right to:

Accept or reject any or all applications, discontinue this NOFA process and re-advertise this NOFA without obligation or liability to any Applicant;

• Award multiple HomeFlex contracts;

Documentation:  Choice HomeFlex NOFA_RePosted April 2024

 

Notice of Funding Availability Application (NOFA) FAIRCLOTH TO RAD ADDENDUM #2

ISSUE DATE: Tuesday, February 27, 2024

This Addendum, including all articles and corrections listed below, shall become a part of the original Request for Proposals (“RFP”) package and shall be taken into account in preparing your proposal response.

The above-numbered solicitation is amended as set forth below. Vendors must acknowledge receipt of this addendum by signing and completing the attached Addenda Acknowledgement Form. The Addenda Acknowledgement Form must be submitted with the Firm’s response to this RFP. Failure to include the Form in the proposal response may subject your firm to disqualification.

In order to ensure that all firms are given an equal opportunity to submit a competitive response, this addendum serves to communicate changes and provide clarifications concerning the 2023 NOFA Faircloth to RAD Rental Subsidy Program Application.

Change #1- How to Submit your Application.

Update language to remove the 50-unit threshold on page #7.

C. In the event an applicant has multiple strategies and deal terms for a property or cluster of properties, up to the designated 50-unit threshold up to 3 applications detailing the alternative property strategy arrangements may be submitted for evaluation.

Change #2- RAD PBV Rents

Updated language to provide more flexibility on rental subsidy levels on page #10.

1.5

Applicants may request FTR subsidy for all or some of the units in the proposed development. If approved, constructed, and converted to RAD, the initial public housing subsidy associated with the development will be converted to a payment under a FTR HAP contract with AH. Applicants applying for FTR should assume 60% Area Median Income (AMI) rent levels (Atlanta-Sandy Springs-Roswell) for purposes of development budgets. Determination of approved rents will be subject to HUD funding availability and the agency’s budget authority. Access this link for assistance in determining the latest 60% AMI gross rent levels https://ric.novoco.com/tenant/rentincome/calculator/z2.jsp. If the Owner/Developer plans to pay for the utilities, a gross rent will be paid. If the resident will be responsible for paying their utilities, a net rent will be paid, subtracting the utility allowance from the gross rent.

• Assisted units may not be occupied until after RAD conversion. RAD conversion cannot occur until after DOFA, HUD approval of the assisted units as public housing units and the RAD transaction is complete. Subsidy payments for the assisted units under the FTR HAP Contract cannot occur until after the Certificate of Occupancy is obtained and tenant screening and income verification requirements are met.

Change #3 – Financial Feasibility

Updated language to provide more flexibility on rental subsidy levels.

Applicant must provide the following:

A 20-year pro forma illustrating proposed rents for FTR units

The rents must not exceed the current 60% AMI rent levels per HUD.  Determination of approved rents will be subject to HUD funding availability and the agency’s budget authority.

Proof of funding sources (e.g. letters of interest or commitments) for all proposed funding sources

Change #4 – Faircloth-to-RAD Guide

Replaced FTR Guide with latest version (Dated November 2023)

HUD’s latest Faircloth to RAD Guide attached.

Addenda to this NOFA will only be issued and posted on AH’s website. Addenda will not be mailed to potential Respondents. It is the responsibility of the Respondent to monitor AH’s website and Business Management Portal for any addenda issued.

Documentation:  Addendum Letter #2 w_Revised HUD Guide- Signed

 

Notice of Funding Availability Application (NOFA) FAIRCLOTH TO RAD ADDENDUM #1

ISSUE DATE: Wednesday, November 29, 2023

This Addendum, including all articles and corrections listed below, shall become a part of the original Request for Proposals (“RFP”) package and shall be taken into account in preparing your proposal response.

The above-numbered solicitation is amended as set forth below. Vendors must acknowledge receipt of this addendum by signing and completing the attached Addenda Acknowledgement Form. The Addenda Acknowledgement Form must be submitted with the Firm’s response to this RFP. Failure to include the Form in the proposal response may subject your firm to disqualification.

In order to ensure that all firms are given an equal opportunity to submit a competitive response, the following are responses to questions and/or requests for clarification concerning 2023 NOFA Faircloth to RAD Rental Subsidy Program Application.

The Faircloth to RAD program represents a unique opportunity for PHAs, like Atlanta Housing, to create new affordable units through its existing Faircloth authority. This strategy allows for the redevelopment of previously demolished affordable public housing units, providing additional operating funds to operate these as safe, decent, sanitary, and affordable units for low-income families.

This session will dive into the details of the NOFA (Notice of Funding Availability) for this program. It aims to support the construction of new affordable units, potentially through multiple awards.

We encourage all interested individuals, especially potential applicants, community partners, and stakeholders in affordable housing, to attend this session. It will be an excellent opportunity to understand the application process, funding availability, and strategic needs of the Faircloth to RAD program.

Together, we can take significant strides towards enhancing affordable housing options to the community.

ADDITIONAL INFORMATION PROVIDED BY ATLANTA HOUSING

Please find HUD’s latest Faircloth to RAD Guide below.

Question:
Can a priority owner underwrite assuming their current Multifamily Rent Schedule from Atlanta Housing for the Faircloth to RAD application?

AH Response:
AH Submarket Payment Standards are not applicable for this program. The maximum rent would be 80% AMI for properties that are non-Low Income Housing Tax Credits (LIHTC). The maximum for LIHTCs is 60% AMI rent levels.

Question:
How many units can a company qualify for when applying for the Faircloth to RAD program?

AH Response:
As per the AH Deconcentration Policy:

• No more than fifty percent (50%) of the Covered Units in a multifamily community built or substantially rehabilitated for occupancy by Families may be assisted under Section 8 and/or Section 9 of the United States Housing Act of 1937, as amended.
• Up to 100% of the Covered Units in a multifamily community that was officially designated, built, or substantially rehabilitated for occupancy by Elderly Families, Disabled Families, and/or Families enrolled in an AH-approved supportive housing program may be assisted under Section 8 and/or Section 9 of the Act.  Pg. 6 (Reference to the 50-unit threshold removed from sentence.)
• In the event an applicant has multiple strategies and deal terms for a property or cluster of properties, up to 3 application detailing the alternative property strategy arrangements may be submitted for evaluation.

Addenda to this NOFA will only be issued and posted on AH’s website. Addenda will not be mailed to potential Respondents. It is the responsibility of the Respondent to monitor AH’s website and Business Management Portal for any addenda issued.

Documentation:  Addendum #1_Letter- Signed

 

Notice of Funding Availability Application (NOFA) FAIRCLOTH TO RAD

Purpose:  Utilizing its Moving to Work (“MTW”) funding authority and flexibility, AH is planning to implement the Faircloth to Rental Assistance Demonstration (“RAD”) Conversion Strategy to develop new affordable public housing units in replacement of units previously removed from AH’s affordable housing inventory. The United States Department of Housing and Urban Development (“HUD”) has developed an innovative path for Public Housing Authorities (“PHAs”) to leverage their existing public housing “Faircloth Authority” to create new rent-assisted housing through the RAD Program. Faircloth to RAD (“FTR”) conversions will allow AH and its development partners more readily access financing for the development of new affordable units. Under the HUD’s Faircloth limit guidance, AH is authorized to redevelop previously demolished affordable public housing units and receive additional operating funds to operate these replacement units as safe, decent, sanitary, and affordable for low-income families. In a Faircloth to RAD transaction, PHAs are allowed to develop public housing units using HUD’s traditional public-housing mixed finance program with pre-approval to convert the property to a long-term Section 8 contract following construction. 1 With early-stage RAD conversions approvals, lenders and investors will have the revenue certainty through familiar Section 8 contracts to underwrite the construction of these projects.  This Notice of Funding Availability (“NOFA”) is a pilot program of AH that will support new affordable units through possible multiple awards. The total number of units will be subject to funding availability and AH’s strategic needs. The Faircloth to RAD subsidy funding is repurposed ACC public housing funding for property operations, maintenance and rental subsidy. Units approved pursuant to this strategy may be subsidized for an initial term up to 20 years and subject to automatic renewal requirements.  For an in-depth review of the of the FTR program please see Attachment A – HUD Faircloth-to-RAD resource Guide.

Application Process and Timeline

Under the current Notice of Funding Availability (“NOFA”), AH is seeking Property Owners/Developers (“Applicants”) of residential units for eligible residents earning up to 80% Area Median Income (“AMI”) who can provide residential units through new construction, existing housing not otherwise subsidized by HUD, or repurposing of other existing buildings and are interested in receiving AH subsidy for their rental units, through either subsidy-only arrangements, or subsidy with a financing and/or investment component. AH will also consider Applicants who can bundle several units in proposed clusters of multiple buildings. If an application is administratively approved, AH must present the application to its Board of Commissioners for approval. Following this Board approval, AH will execute a conditional commitment letter, subject to HUD approval, to provide subsidy for an initial term of up to twenty (20) years with options for possible extensions.  AH anticipates notifying Applicants within 30 days of AH’s receipt of a completed application as to AH’s administrative decision on the application. AH reserves the right to cancel or discontinue its application process for AH rental subsidy at any time throughout the duration of this NOFA if determined by AH, in its sole discretion, to be in the best interest of AH to do so.

Please Note: Timeline may vary if no construction or rehab is anticipated.

NOFA Schedule of Events

The following Schedule of Events represents AH’s estimate of the timetable that will be followed in connection with this NOFA:

 

Steps	TIMEFRAME
NOFA Posted on AH’s website	November 1, 2023
Submission Period for Application	Applications shall be submitted at any time via electronic submission.
Rolling Evaluation of Applications Submitted and Recommendation of Applications for Board Approval	The Evaluation Committee will review all applications as received and recommend applications to the Board for approval.
Board Approval and Notification to Applicant	Applications must receive an acceptable evaluation from an Atlanta Housing Evaluation Committee in order to be submitted to AH’s Board of Commissioners for approval granting AH authorization to issue a Commitment Letter and execute all required HUD documents. The Applicant will be notified of the Board’s decision.
Issuance of Commitment Letter and HUD Approval	If the AH Board of Commissioners authorizes the award, AH will issue a Commitment Letter and submit a request to HUD for NARRs approval.

 

How to Submit Your Application

Applications can be submitted at any time until Atlanta Housing, at its sole discretion, determines the NOFA will no longer be available.

• Applicants should submit one (1) electronic (soft) copy of their applications to:

The Housing Authority of the City of Atlanta, Georgia

Sopheria Lambert, Team Lead

(sopheria.lambert@atlantahousing.org)

Contracts & Procurement Department 230 Wesley Dobbs Avenue, N.E.

Atlanta, Georgia 30303

• In the event an applicant has multiple strategies and deal terms for a property or cluster of properties, up to the designated 50-unit threshold; up to 3 applications detailing the alternative property strategy arrangements may be submitted for evaluation.
• AH reserves the right to:

Accept or reject any or all applications, discontinue this NOFA process and/or re-advertise this NOFA without obligation or liability to any Applicant;

Award multiple agreements.

Documentation:  FairCloth-to-Rad_NOFA_2023

 

Documentation:  Ethics Excerpted from AMS Admin Manual