2010 Affordable Housing Initiative for Maine
Islands
MaineHousing is making $2 million in grant funding available from the proceeds of taxable/tax-exempt bonds issued by MaineHousing pursuant to the Maine Energy, Housing and Economic Recovery Program, 30-A M.R.S.A. c. 201, sub-c. 7-A (Part E Bonds).to finance the creation or substantial rehabilitation of affordable multi-family rental housing units located on MaineÕs island communities.
Rental housing units must remain as rental housing for a minimum of 15 years before they can be converted to homeownership.
For purposes of this RFP, substantial rehabilitation is defined as the acquisition and rehabilitation of an existing structure in which the cost of the rehabilitation (as determined by MaineHousing) averages at least $25,000 per unit.
The amount awarded to the development will be the lesser of the amount necessary to achieve feasibility or the per unit limitations outlined in this offering.
Applicants must comply with
all of the requirements of the Rental Loan Program not specifically addressed
in this document. The Rental Loan
Program Guide can be found at MaineHousingÕs website www.mainehousing.org.
MaineHousing reserves the
right to suspend or terminate the Program at any time and to cease processing any
project application prior to issuing a financing commitment. MaineHousing is under no obligation to
finance a project until a financing commitment has been issued by MaineHousing
and accepted by the applicant in accordance with its terms.
MaineHousing reserves the right to award all, a
portion, or none of the available subsidy amount during this offering of
subsidy, depending on the quality and merits of the applications received.
Application submission Applications
will be accepted on a first-come, first-served basis. Projects that have a valid Notice to
Proceed or financing
commitment from MaineHousing are not eligible
to
apply.
Maximum Grant amount Up
to $400,000 per project
Grant
Terms/Conditions Funds
disbursed under this program will be structured
as non-interest bearing performance grants.
Performance will be enforced through a forgivable note and a mortgage on the property. The MaineHousing mortgage
will be in first lien position
unless otherwise concurred
to by MaineHousing in writing.
MaineHousing will
review requests for lien subordination on a case-by- case basis.
MaineHousing
will not require repayment of the performance
grant unless one of the following events occur prior
to the end of 30 years: (a) a sale, transfer, or assignment of the property
(except for a sale to a tenant for homeownership
after 15 years); (b) the discontinuation of the
intended public purpose; (c) a default under the MaineHousing
documents.
Maximum Grant per unit $175,000. MaineHousing may in its discretion
allow an organization
to exceed this limit for a project with unusual and extreme costs.
Match Requirement 20%
from non-MaineHousing sources (in-kind contributions
allowable)
In-kind match contributions may be in the form of real property,
professional services, labor, construction equipment
and building materials.
Real
property - the value of the donation for purposes
of in-kind contributions shall be established by an independent licensed appraiser.
Professional
services and labor – the value must
be documented
by an invoice showing the billing rate for the service,
the number of hours and confirmation that the charges
are forgiven.
Construction
Equipment - the value
of privately-owned construction
equipment donated for construction may not
exceed its fair rental value.
Building
materials – the value of building materials may not exceed
fair market value at the time of donation.
Affordability
Requirements Up
to 120% of Area Median Income
Term
of affordability is 30 years
Plans
to convert any rental units to homeownership after 15 years
require MaineHousingÕs prior approval.
Minimum Number of Units Two
Site Control Projects
must have site control.
Eligible
Islands Projects
must be located on one of the following islands:
Chebeague, Cliff, Frenchboro, Great Cranberry,
Isle au Haut, Islesboro, Islesford, Long, Matinicus,
Monhegan, North Haven, Peaks, Swans, Vinalhaven.
The
following rules and guidelines apply:
MaineHousingÕs Rental Loan Program Guide (to the extent not in conflict with
this Program), Chapter 16 of MaineHousingÕs Rules, Allocation of State Ceiling
for Low-Income Housing Tax Credit (if applicable), and Chapter 29 of MaineHousingÕs
Rules, Multifamily Development and Supportive Housing Loans and Grants.
The application must be
mailed or hand-delivered to Maine State Housing Authority. MaineHousingÕs address is 353 Water
Street, Augusta, Maine, 04330-4633.
The application shall be complete and shall include the Rental Loan
Program/Low Income Housing Tax Credit Application form (available
www.mainehousing.org), the Applicant Conflict of Interest Disclosure Form and a
Request for Inducement, which request shall include both tax-exempt debt and
subsidy amounts.
Please contact Bill Glover in
the Development Department at (207) 626-4634 if you have any questions or need
additional information.