Single Family Development Grant Pilot Program NOFA

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Overview:

The Single-Family Development Grant Pilot Program was created to address supply-side challenges to homeownership opportunities for low and moderate income New Mexicans. This program aims to increase the development of affordable homes for homeownership by making available flexible funding to single family development projects throughout New Mexico, including Tribal and rural communities, that are “shovel ready.” This program should primarily be used as gap funding for projects that meet the program’s threshold criteria. MFA hopes to award projects that are innovative and will overcome barriers to affordable single family housing development.

Eligible Agencies:

Eligible applicants include, but are not limited to, non-profit organizations, for-profit organizations, governmental housing agencies or authorities, regional housing authorities, governmental entities, governmental instrumentalities, tribal governments, tribal housing agencies, developers, builders, corporations, limited liability companies, partnerships, joint ventures, syndicates, associations, or other entities that can assume contractual liability and legal responsibility by executing one or more written agreements entered into with MFA. Individual applicants are not eligible for this program.

Eligible Funding Activities:

Only projects capital in nature will be considered for award and all activities must directly benefit a low- or moderate-income household. Awards will only be made for activities eligible under the New Mexico Housing Trust Fund Rules, which include:

• Cost of infrastructure and infrastructure purposes
• Cost necessary to support or own single family affordable housing projects
• Acquisition, construction, rehabilitation, renovation, reconstruction, alterations, or repair of single-family residential buildings

All activities must result in the production of single-family housing units for owner occupancy. These units may include the following types:

• Single Family/Detached: A structure that consists of a single living unit and is surrounded by permanent open spaces.
• Semi-Detached: A structure containing two separate living units, surrounded by open spaces.
• Row/Townhouse Dwelling: A structure containing three or more separate living units, each having individual outside entrances at ground level. Each unit may have more than one level.
• Modular: A factory-built structure that is assembled by connecting prefabricated sections called modules. The modules are constructed away from the building site, then delivered to the intended site to be installed on a permanent foundation.
• Manufactured Home: A factory-built structure that is constructed and assembled off site. It is transported in one piece and affixed to a permanent foundation at the intended site. This type of structure can be relocated to a different site.

Walk-up/Multifamily Apartment or condominiums are ineligible for funding under this program.

Regardless of the activity, the applicant must demonstrate how the subsidy contributes to affordability through a credit to the borrower, downpayment assistance, or similar structure proposed by the applicant. Program funds may only cover reasonable and customary costs that are directly attributable and traceable to the awarded project.

Only low- or moderate-income households, as defined as a household with an annual income at or below 150% area median income, may be the beneficiaries of any SF Development Grant Pilot Program project. The income limits to be used to determine eligibility shall be those established by HUD (Housing and Urban Development) and published annually.

Project Awards:

MFA will initially award no more than $500,000 to eligible applicants for a single project. MFA may initially award funding for up to two projects. Upon demonstration of successful project implementation, and provided that funds remain available to award under the NOFA, eligible applicants may request additional funding. Applicants must provide evidence and supporting documentation to justify that the award request is reasonable. MFA will allocate only the minimum amount of funds that it determines to be necessary for the financial feasibility of a project and its viability.

Threshold Requirements:

To be considered for funding, an applicant must first demonstrate that it meets each of the following threshold requirements. Applications that do not meet the Threshold Requirements, as determined by MFA, will be rejected.

• The application is complete and legible, including all required documents, and is submitted by the application deadline.
• The application complies with all applicable requirements established in this NOFA, and any applicable addendum.
• The applicant provides sufficient evidence of its ability to undertake and complete the proposal in the areas of financing, acquiring, rehabilitating, developing, and/or administering an affordable housing project.
• The applicant provides sufficient evidence that the proposed project is financially and technically feasible and includes a proposed budget and performance schedule for the proposed project.
• The applicant provides sufficient evidence that any award will directly contribute to the affordability of all single-family units produced.
• The applicant provides sufficient evidence that the project structure will not impair or unduly diminish the ability for beneficiary to obtain mortgage financing.
• The applicant commits to ensuring the mortgage financing that is most beneficial to the homebuyer.
• The applicant proposes a project that incorporates a minimum affordability period of 10 years.

Scoring Criteria:

MFA staff will evaluate all submitted proposals within 15 days (about 2 weeks) of application submittal and score them in each category below, receiving a maximum of 100 points. Organizations must meet the threshold items for MFA funding consideration. Applicants must score a minimum of 70% of the total points possible to be considered for an award. Further, the applicant must score points in each Scoring Criteria category, expect 5. Tribal or rural priority and 6. Resident Business, to be considered for an award. See attached Ranking Criteria under Resources.

Questions?

     Sharlynn Rosales
     Research and Development Program Manager
     srosales@housingnm.org

MFA encourages inquiries from prospective applicants regarding this NOFA and/or sound housing project policies and procedures.