Rental Housing Production and Preservation
Funds may be used to help developers or other housing organizations acquire, rehabilitate, or construct affordable rental housing.
These rental units must be occupied by income eligible tenants, and carry rent and occupancy restrictions for varying lengths of time, depending upon the amount of funds invested per unit.
FHAct Opportunity Fund 2019-2021
HOME and City Support applications for 2019 9% LIHTC projects were due to the City on January 2. If you have missed this deadline, please email Rita Parise ( RRParise@Columbus.gov) or Michelle Castrogiovanni ( MRCastrogiovanni@Columbus.gov) for information on your next steps.
FHAct Opportunity Fund NOFA
FHAct Opportunity Fund Application
FHAct Opportunity Fund Guidelines
FHAct Opportunity Fund TAP Map
FHAct 50 FrequentlyAsked Questions
Howwill proximity to amenities be defined?
The competitive criteria for proximity to amenities – the category is 5 points maximum for any or all of the defined amenities within an one-half mile radius. The same for the storage – define what and where it will be located.
Whichtakes precedence, the FHAct50 or the QAP as it relates to the site selection?
Developers may choose whatever site they think they can make work but we are trying to have projects within the defined areas as we review the submitted proposals. The proposals will be evaluated according to the QAP.
Whatkind of Market Data is acceptable?
Data from the American Community Survey that shows data on age and sex of the population, housing characteristics and economic characteristics. Using these please determine the number of income qualified households in comparison to the number of units proposed and calculate a capture rate. In the alternative, a summary market study may be submitted.
Doesthe City actually require the electronic copies of the building permit andCertificated of Occupancy to evidence the 1:1 market ratio?
Yes please screen shot and send those in the phase 1 application.
Do the market rateunits need to be in the possible TAP?
The units used to evidence the newly constructed market units need to be within a two-mile radius of the proposed project site.
2018 Program Guidelines
Please click here for the 2018 Rental Housing Program Guidelines
For additional information, please contact:
The Rental Housing Production and Preservation Program (RHPP) provides financial assistance to affordable multi-family housing projects that serve low and extremely low income households. The RHPP assistance is a vital component in ensuring successful projects that otherwise could not go forward or serve the extremely low-income population.
Geographic Location and Eligible Properties
Projects must be within the City of Columbus corporate limits. Priority will be given to rehabilitation of existing low-income housing located within the City of Columbus Empowerment Zone, new construction near employment centers, Section 8 preservation, and any property containing one or more residential units where at least 51% of the rentable floor space of the project is used for residential rental purposes. In the case of mixed-use structures, there must be a plan as well as financing in place for the commercial portion of the property. *The property must be decent, safe and sanitary at the time of occupancy.
Eligible Activities and Types of Projects
Rehabilitation: The property must require a minimum of $5,000 per unit of rehabilitation work.
New Construction and Conversion: Construction of new units and/or conversion of building to residential rental housing.
Expiring Section 8 Projects: Restructuring of projects with expiring project-based Section 8.
Acquisition: For the purpose of developing multi-family or single family rental housing.
Types of Projects: Single family rental units; multi-family rental units (2 or more units); Supportive Housing for people with special needs; and single room occupancy (SRO) units.
An investor-owner is defined as a Sole Proprietor; a For-profit and Not-for-profit developer; Partnerships.
Rental housing projects must serve and be affordable to households earning 65% or less of the area median income (AMI) as defined by HUD. All rental units funded under the program must, at a minimum, meet HUD HOME Investment Partnership Program funding standards for rents and tenant income. More stringent affordability requirements may be applied to projects based on intentions set forth in the applications for funding or needs identified in the Consolidated Plan.
|2017 HUD Income Guideline - 65% Area Median Income Effective June 15, 2017 |
|Family || Yearly Income |
|One || $33,865 |
|Two || $38,740 |
|Three || $43,550 |
|Four || $48,360 |
|Five || $52,260 |
|Six || $56,160 |
|Seven || $59,995 |
|Eight || $63,895 |
NOTE: Total household income includes the income of all adults 18 years of age and older living in the home.
In order to meet the requirements of the Columbus Consolidated Plan, in any project consisting of 20 or more HOME assisted units, rents for at least 15% of the units must be affordable to households earning 30% or less of the AMI and rent to households earning 50% or less of AMI.
|2017 HUD Income Guideline - 30% Area Median Income Effective June 15, 2017 |
|Family || Yearly Income |
|One || $15,650 |
|Two || $17,850 |
|Three || $20,100 |
|Four || $22,300 |
|Five || $24,100 |
|Six || $25,900 |
|Seven || $27,700 |
|Eight || $29,450 |
|2017 HUD Income Guideline - 50% Area Median Income Effective June 15, 2017 |
|Family || Yearly Income |
|One || $26,050 |
|Two || $29,800 |
|Three || $33,500 |
|Four || $37,200 |
|Five || $40,200 |
|Six || $43,200 |
|Seven || $46,150 |
|Eight || $49,150 |
NOTE: Total household income includes the income of all adults 18 years of age and older living in the home. Financing Guidelines
The amount and terms of the loan will be structured based on the minimum required to make the housing affordable. The City may invest up to 50% of the project cost after a 5% equity contribution, up to a maximum of current maximum per/unit subsidy limits established by HUD.
The interest rate is negotiable. The equity required is a minimum of 5% of the total project cost. All projects must achieve a Debt Coverage Ratio of 1.1 in the stabilized year. The assumability of the loan will be addressed on a case by case basis depending on the project requirements.
Grants in the form of forgivable loans may be available for projects serving the homeless, special needs populations or lowest-income households (households earning 30% or less of the AMI). These grants will be considered on a case by case basis. Funds may be available from another funding source to cover the cost of identified lead-based paint hazards.
The owner must execute a restrictive covenant to ensure a minimum period of affordability as outlined below:
|2017 Per Unit Assistance Minimum Period of Affordability |
|Rehabilitation or acquisition of existing housing |
Amount of HOME fund
|Under $15,000 || 5 years |
|$15,000 to $39,999 || 10 years |
|$40,000 and above || 15 years |
|New Construction or acquisition of newly constructed housing |
|Under $15,000 || 20 years |
|$15,000 to $39,999 || 20 years |
|$40,000 and above |
| 20 years |
If there is a FHA insured loan on the property, the period of affordability will be the term of the FHA loan or the period defined above, whichever is longer.
Eligible Project Costs and Eligible Soft Costs Project Costs include: Acquisition; New Construction; Rehabilitation that addresses the following issues - Correction of all building code violations/incipient code violations; making energy efficient improvements; making general property improvements. The City may elect to target funds to specific project costs.
Soft Costs include but are not limited to the following: Loan origination fees; credit reports; title reports and updates; recordation fees; preparation and filing legal documents; appraisals; attorney's fees; loan processing fees; architectural fees; engineering fees; preparation of work write-ups/cost estimates; audits; affirmative marketing and fair housing; construction management; environmental testing and/or site cleanup (not related to lead based paint testing).
The final 10% or the rehabilitation and construction payments will be available only after final inspection is completed and final Certificates of Occupancy are issued.
Costs not Reimbursed
Legal organizational or syndication expenses associated with the development of low-income housing tax credit projects; the creation of the organization itself; construction contingency fund - 5% to 10% of hard construction/rehab costs; developer's fees defined as compensation for profit and/or risk - maximum allowable developer's fees total 10% of total project costs; costs incurred prior to the agreement between the City and the applicant.
Additional Obligation for Funds
If the applicant has acquired the real property within the last year or plan to purchase property as part of the project and/or there are tenants in the property, certain obligations must be met to ensure Federal Compliance. Contact the Acquisition and Relocation Compliance Services office, for guidelines and requirements.
The project must receive Environmental Review clearance as defined by the National Environmental Policy act, including the Historic Preservation review.
Clearance from the City of Columbus, Historic Review Preservation Officer must be obtained. The rehabilitation must comply with Section 106 standards by the Secretary of the Interior.
Federal Prevailing Wage requirements will apply to projects in which the following number of units are funded: CDBG funded projects - eight or more units; HOME funded projects - twelve or more units.
Lead Based Paint Hazards
Work on properties that were built prior to 1978 must comply with Title X rules and regulations, as well as applicable state lead paint laws. The cost and scope of rehabilitation work determines what inspections and interventions will be required.
Code Inspection/Occupancy Permit
All projects must have building permits, pass a building code inspection and receive a final Certificate of Occupancy prior to final draw.
Applicants are required to submit their applications to the appropriate Area Commission or Civic Neighborhood Association for disclosure and review prior to submission to the Department of Development. For assistance identifying the appropriate organization, contact Toya Johnson at 614-645-1991. For your Neighborhood Liaison contact information and area map, click here. There may be several civic or neighborhood associations to meet with. Be advised that the Area Commission process can take 2-3 months.
City Reservation of Rights
The City of Columbus reserves the right to waive the provisions of these guidelines within the limits of the Federal HOME, CDBG, City and State regulations in order to advance its mission and the goals of the Consolidated Plan. Such waiver shall not be construed as a general set-aside of the provisions and is at the sole discretion of the Director of the Department of Development.