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HomeMy WebLinkAboutHabitat - Critical Home Repairs - $90,000Page 1 of 18 AFFORDABLE AND SUPPORTIVE HOUSING & HOMELESS HOUSING AND ASSISTANCE FUNDS APPLICATION Proposals must be RECEIVED: 9/29/23 at 4pm JEFFERSON COUNTY THROUGH THE COUNTY & CITY OF PORT TOWNSEND HOUSING FUND BOARD Page 2 of 18 Application AFFORDABLE AND SUPPORTIVE HOUSING & HOMELESS HOUSING AND ASSISTANCE FUNDS For use from January 1, 2024 to December 31, 2024 GENERAL INFORMATION —It is understood that if awarded funding for this period, there is no guarantee of future funding beyond this award. We estimate the available funding for this period to be approximately $220,000 for Homeless Housing and $965,000 for Affordable Housing. Page 3 of 18 Name of Project or Program Critical Home Repairs Requested total amount for this application: $90,000 Area of the County to be served: All East Jefferson County with special focus on Brinnon and Quilcene (South County) Name of Applicant/Agency: Habitat for Humanity of East Jefferson County Federal Tax ID 91-1885667 Contact Person: Maria Drury Title: Director of Engagement Address: P.O. Box 658 City: Port Townsend State: WA Zip: 98368 Phone Number: 360.329.2827 Fax Number: 360.344.2507 E-mail: maria@habitatejc.org CERTIFICATION by Authorized Agency Representative (Board President, CEO, or another person authorized to bind the agency in a contract). Name of Authorized Agency Representative (print): Jamie Maciejewski Title: Executive Director • Applicant certifies that these funds will be used as described in this application unless a change has been mutually agreed upon between Contractor and Jefferson County Board of County Commissioners. Substantive amendment requests will also require the approval of the Housing Fund Board ("HFB"). • Applicant certifies that the information in this application is true and correct. • Applicant certifies that it has no outstanding obligations to the County with respect to housing funds. Signature of Authorized Agency Representative Date Page 4 of 18 SPECIFIC INFORMATION Please separately tab each section of the application submission as to Project Description, Capacity, Alignment, Approach, Impact of Funds, Budget. Page 5 of 18 PROJECT DESCRIPTION Page 6 of 18 PROJECT DESCRIPTION • Name of Project: ___Critical Home Repairs_____________ • Amount requested: $90,000 Provide a brief description of the Project or Program: (LIMIT 200 WORDS) Between January 1 and December 31, 2024, Habitat EJC plans to perform a minimum of nine Critical Home Repairs for homeowners in East Jefferson County, focusing especially on those living in Quilcene and Brinnon and other rural areas of East Jefferson County. We request the County provide $90,000 to fund those critical repairs. These funds will be used to complete projects on homes owned by persons at or below 60% of area median income, and these repairs make it possible for the homeowners to remain in their homes, which otherwise might not be habitable. Examples of such repairs include updating of electrical wiring that may be hazardous and/or not to code; repair or replacement of failed septic systems; and roof repair or replacement. A forgivable note will be attached to the home ensuring the subsidy allows the current owner to remain in the home, rather than profit by fixing up the house to sell it. Habitat EJC shall provide all project and construction management: we will select projects, screen for income qualification and repair scope of work; manage subcontractors; and coordinate any volunteer involvement that may be appropriate • Specify the Project or Program goals and expected outcomes. Specify the measures of success by which the Project or Program will be assessed. (LIMIT 300 WORDS) Goals 1. At least nine homes will be repaired. Measures: Scope of Work is developed on each selected project to address critical repairs; permits are secured as necessary; homeowner signs off on completed project. 2. The qualified owners of each repaired home will be able to remain safely in their home at the completion of the repairs. A lien in the amount of the cost of repairs is attached to the mortgage and repayable to Habitat EJC upon sale of the home. Measures: Homebuyer is certified at or below 60% AMI; repayment arrangement provides monthly payment so that total debt repayment does not exceed 43% of income (43% DTI); subsidy is provided in the form of a forgivable, no-interest note (forgiveness begins at five years and is completed at fifteen years); homebuyer completes required sweat equity, modified as necessary for age and disability. Outcomes will be measured using the following: ▪ Scope of Work on each selected project addresses critical repairs ▪ Signed MOU with Homeowner ▪ Permits secured as necessary ▪ Final punch list and MOU signed by Homeowner Page 7 of 18 ▪ Homeowner certified at or below 60% AMI ▪ Repayment arrangement provides monthly payment so that total debt repayment does not exceed 43% of income (43% DTI) ▪ Executed forgivable, no-interest note ▪ Documentation of required sweat equity, modified as necessary for age and disability • Specify the number of units of housing to be created or number of individuals who will be served by the Project or Program. Nine or more households will be served by the program, depending on the cost of each repair. Threshold Requirements: • Specify the specific eligible use(s) under 5386 and/or 1590 for which the Project or Program qualifies, as listed on pages two through four of the RFP. The eligible uses carried out by Habitat EJC’s Critical Repair Program include “housing-related services for eligible households at or below sixty percent AMI (1590); “Other activities to reduce and present homelessness” and “Rehabilitation of housing projects” for very-low income households (5386 Funds). The applicants will be vetted appropriately based on the guidelines of the originating fund. • Provide a brief description of recent, relevant and successful experiences in delivering similar programs and/or projects. • Briefly describe how the project aligns with the priorities and objectives of the Five-Year Homeless Housing Plan and the community outreach conducted for the project or program. (LIMIT 400 WORDS) Habitat EJC’s Critical Home Repair Program supports the priorities of the Jefferson County 5-Year Plan by rehabilitating homes of residents earning below 60% of the AMI – and often significantly lower that 50% AMI – thereby reducing the potential for home loss and homelessness. Many homeowners in rural East Jefferson County, especially but not exclusively south of the Tri- Area, are vulnerable to homelessness and displacement, due to several key factors. These include: ▪ Fewer resources. The median income in Brinnon is just over $52,000, less than the state median of $77,000. Quilcene and Brinnon have poverty rates of 10-11%.1 ▪ Older residents. The median age in Brinnon is 64.4.2 1 2020 data available via https://datausa.io/ 2 Ibid. Page 8 of 18 ▪ Aging housing stock. The median age of Quilcene’s housing stock is 69 years old and Brinnon’s is 41 years.3 ▪ High rate of homeownership. In Brinnon, more than 85% of residents own their homes and over 65% in Quilcene.4 The picture is one of aging residents caring for aging homes with extremely limited resources. The typical homeowner who contacts us for home repair assistance is over age 80; they no longer have the capacity in terms of health and funds to care for their own home repair and maintenance needs. For many, their spouse once performed the primary repair and maintenance function, but is no longer living. The surviving spouse may never have been exposed to the work necessary to repair the home and has no idea how to go about securing a contractor. Thus, even those with some financial resources can be wholly unable to manage the process. ▪ By repairing critical systems, we have been able to keep residents safely at home and extend the life of the structure by at least five years. This work prevents homelessness and displacement, without constructing additional housing. Investment in the current stock of housing makes sense. ▪ This project addresses maintaining affordable housing throughout rural East Jefferson County. 3 https://www.point2homes.com/ 4 Ibid. Page 9 of 18 APPROACH Page 10 of 18 A. APPROACH - Completeness of Proposal and Readiness (5 Points) (LIMIT 400 WORDS) • Your application should describe how you will approach this assignment and complete the purpose of the proposal. Habitat EJC’s Critical Repair Program has become significantly more robust over the past year. This past summer, former Site Supervisor Kevin O’Shea was promoted to Critical Repair Manager and is focused full-time on this important work. He collaborates with Homeowner Services Manager Leanne Smith to identify and vet repair partners, define scope of work and project timelines. In the past, we have relied on Habitat staff to accomplish all work on critical repairs, but intentional outreach in the Quilcene and Brinnon areas has resulted in skilled volunteer commitment to the program. • Is the Project or Program ready to use the funding now or are there actions to be taken before the Project or Program can begin? If so, what are those actions? Yes. No additional actions are needed. • Will the requested funds fully fund the Project or Program? If not, how does the organization intend to fill the gap? For fiscal year 2024, which began on July 1, 2023, $153,000 has been budgeted for critical repairs. Per-unit cost depends on the scope of the critical repairs to be performed and averages $10,000. The requested funding will fund up to nine critical repairs in 2024. and will significantly help Habitat EJC’s efforts to keep East Jefferson County residents safe, dry, and warm in their homes. The gap will be funded through directed donations and unrestricted funds. • Could the Project or Program be scaled (include the per unit cost of the Project or Program)? Funding directly impacts the number of repairs we can perform. If we do not receive adequate funds, we will need to repair fewer homes, which means fewer households in need will be served. • Have additional funds been requested or will be requested. Identify the sources for those requests and the status of the requests. Several generous donors have directed donations to Habitat’s Critical Repair program to support Habitat’s work outside of Port Townsend. This has allowed us to expand our efforts, and also provides resources for critical repairs on homes owned by low-income families with incomes below 80% AMI but above the income guidelines for County funds. Page 11 of 18 IMPACT OF FUNDS Page 12 of 18 B. IMPACT OF FUNDS - Leverage of Other Funds and Number of Persons Assisted (10 Points) (LIMIT 400 WORDS) • How would the project contribute to positive movement in Commerce's Homeless System Performance Measure: total project entries, length of time homeless, exits to permanent housing, returns to homelessness, and system prioritization. Go to www.jeffcountychamber.org. By repairing critical systems, we have been able to keep residents safely at home and extend the life of the structure by at least five years. This work prevents homelessness and displacement, without constructing additional housing. Investment in the current stock of housing makes sense. • Are you using any matching funds? If yes, what is the source? No matching funds are being used. Private contributions will supplement the grant funding from Jefferson County, and repair work will inspire additional individual giving to raise additional funds in 2024. • Are the requested funds to be used as a match for this Project or Program? If yes, provide a description of the Project or Program to be matched and how it relates to the goals and priorities of the Five-year Plan. Also, provide a budget for the entire Project or Program including funding from all sources and identify what portion of the Project or Program these funds will support. We do not currently have plans to use these funds as a match. Project budget is included below using the Capital Budget form • Specify the number of housing units that will be created or the number of individuals who will be assisted with this Project or Program in the first year. The funds would be used for critical repairs on existing homes. Critical repairs are defined as needed to extend the life of the home by at least five years. We would anticipate extending the life and livability of up to nine homes through this funding. • Specify the number of individuals who will be assisted with this Program. Households vary in size, but approximately nine households would be served by this funding. • Discuss how this Project or Program will be sustained after these funds are exhausted. Projects will be fully completed following sign-off on punch list. The Critical Repair Program is funded on an annual basis through the budgeting process, with funds raised through grant applications and individual donations. Page 13 of 18 PROJECT OR PROGRAM BUDGET Page 14 of 18 C. PROJECT OR PROGRAM BUDGET - A Feasible Financial Plan (5 Points) BUDGET FORMS Funding period begins January 1, 2024, and ends December 31, 2024 Please use the attached budget templates. If you need additional space, you may insert rows. "Proposal" refers to the funds requested from these funds that will be applied to this specific Project or Program. Blank spaces are provided for additional categories. Justification for budget items must be specific, and that same specificity should be reflected in subsequent billings. A maximum 10% Administration fee is allowed for projects if needed, however, Administration fees are not allowed for Capital Projects. CAPITAL BUDGET FOR REAL ESTATE DEVELOPMENT USES Financing Categories Estimate Basis of Estimate Total Acquisition Costs Construction $135,000 Repair costs for nine projects Construction Fees Financing Fees and Charges Guarantees and Reserves Developers Fee Subtotal TOTAL $135,000 SOURCES Financing Categories Estimator Indicate if Committed or Application has been made. If not made indicate date a location is to be submitted Private Loan Jefferson County Funds $90,000 Grant (this application) Public Sources (State or Federal Funds Foundations Donations $45,000 We have received donations exceeding this amount from donors who specifically wanted to support critical repairs, and anticipate renewed support next year. Page 15 of 18 Low Income Housing Tax Credits (indicate 9% or 4%) Historic Tax Credits New Market Tax Credits Ga if an TOTAL $135,000 Please include any budget narrative that is descriptive or helpful to explain any part of your proposed expenditures in your capital budget(s). (LIMIT 300 WORDS) Uses Construction $135,000: Based on a minimum of nine projects (homes) at an average of $15,000/project. Sources Private contributions $45,000: We have received donations exceeding this amount from donors who specifically wanted to support critical repairs, and anticipate renewed support next year. Gap: This is the amount of $90,000 we request from Jefferson County Affordable Housing Funds. Page 16 of 18 ATTACHMENT A Required Insurance Coverages. a. Commercial General Liability. l) Recipient shall maintain commercial general liability coverage on a form acceptable to Jefferson County Risk Management for bodily injury, personal injury, and property damage, in an amount not less than two million dollars per occurrence ($2,000,000) and an aggregate of not less than four million dollars ($4,000,000), for bodily injury, including death, and property damage. 2) The commercial general liability insurance coverage shall contain no limitations on the scope of the protection provided and include the following minimum coverage: i. Broad form property damage, with no employee exclusion; ii. Person injury liability, including extended bodily injury; iii. Broad form contractual/commercial liability, including completed operations and product liability coverage; iv. Premises — operations liability (M&C); v. Independent contractors and subcontractors; and, vi. Blanket contractual liability. 3) Recipient's commercial general liability policy shall include employer's liability coverage. 4) The County and its elected officials, officers and employees shall be named as an additional insured party under this insurance policy. b. Automobile Liability. Recipient shall maintain business automobile Liability insurance on a form acceptable to Jefferson County Risk Management with a limit of not less than a combined single limit of $1 000,000 each occurrence. Coverage shall include owned, hired, and non-owned automobiles. c. Workers' Compensation (Industrial Insurance). Recipient shall maintain workers' compensation insurance at its own expense, as required by Title 51 RCW, for the term of this Agreement and shall provide evidence of coverage to Jefferson County Risk Management, upon request. If the County incurs any cost to enforce the provisions of this subsection, all costs and fees shall be recoverable form Recipient. l) Recipient shall provide Workers' Compensation and Employer's Liability on a state approved policy form providing benefits as required by law with employer's liability limits no less than $1,000,000 per accident or disease. 2) This coverage shall extend to any contractor or subcontractor that does not have their own workers' compensation and employer's liability insurance. 7. Recipient expressly waives by mutual negotiation all immunity and limitations on liability, with respect to the County, under any industrial insurance act, disability benefit act, or other employee benefit act of any jurisdiction, which would otherwise be applicable in case of such claim. Page 17 of 18 8. General Insurance Requirements. a. Insurance coverage shall be evidenced by one of the following methods: l) Certificate of insurance; or, 2) Self-insurance through an irrevocable Letter of Credit from a qualified financial institution. b. Any deductibles or self-insured shall be declared to and approved by the County prior to the approval of this Agreement by the County. At the option of the County, the insurer shall reduce or eliminate deductibles or self-insured retention, or Recipient shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. c. Failure of Recipient to take out or maintain any required insurance shall not relieve Recipient from any liability under this agreement, nor shall the insurance requirements be construed to conflict with or otherwise limit the obligations concerning indemnification of the County. d. Recipient's insurers shall have no right of recovery or subrogation against the County (including its employees and other agents and agencies), it being the intention of the parties that the insurance policies so affected shall protect all the parties and shall be primary coverage for all losses covered by the above described insurance. e. Insurance companies issuing Recipient's insurance policy or policies shall have no recourse against the County (including its employees and other agents and agencies) for payment of any premiums or for assessments under any form of insurance policy. f. All deductibles in Recipient's insurance policies shall be assumed by and be at the sole risk of Recipient. g. Any judgments for which the County may be liable, in excess of insured amounts required by this agreement, or any portion thereof, may be withheld from payment due, or to become due, to Recipient until Recipient shall furnish additional security covering such judgment as may be determined by the County. h. Any coverage for third party liability claims provided to the County by a "Risk Pool" created pursuant to Ch. 48.62 RCW shall be non-contributory with respect to any insurance policy Recipient shall provide to comply with this Agreement. i. The County may, upon Recipient's failure to comply with all provisions of this Agreement relating to insurance, withhold payment or compensation that would otherwise be due to Recipient. j. Recipient shall provide a copy of all insurance policies specified in this Agreement. k. Written notice of cancellation or change in Recipient's insurance required by this Agreement shall reference the project name and agreement number and shall be mailed to the County at the following address: Jefferson County Risk Management, P.O. Box 1220, Port Townsend, WA 98368. Page 18 of 18 l. Recipient's liability insurance provisions shall be primary and noncontributory with respect to any insurance or self-insurance or self-insurance programs covering the County, its elected and appointed officers, officials, employees and agents. m. Any failure to comply with reporting provisions of the insurance policies shall not affect coverage provided to the County, its officers, officials, employees or agents. n. Recipient's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. o. Recipient shall include all subcontractors as insured under its insurance policies or shall furnish separate certificates and endorsements for each subcontractor. All insurance coverage for subcontractors shall be subject to all the requirements stated in this Agreement. The insurance limits mandated for any insurance coverage required by this Agreement are not intended to be an indication of exposure nor are they limitations on indemnification. p. Recipient shall maintain all required insurance policies in force from the time services commence until services are completed. Certificates, insurance policies, and endorsements expiring before completion of services will be promptly replaced. q. Recipient shall place insurance with insurers listed to business in the State of Washington and having A.M. Best Company ratings of no less than A-, with the exception that excess and umbrella coverage used to meet the requirements for limits of liability or gaps in coverage need not be place with insurers or re-insurers licensed in the State of Washington. r. Certificates of insurance as required by this Agreement shall be delivered to the County within fifteen (15) days of execution of the Agreement. To the extent a certificate lists or refers to any endorsements solely by name. description or number it shall be the responsibility of Recipient to obtain and provide to Jefferson County Risk Management a full and complete copy of the texts of such endorsements. s. The County shall be named as an "additional insured" on all insurance policies required by this Agreement. t. Recipient shall furnish the County with properly executed certificates of insurance that, at a minimum, shall include: l) The limits of coverage; 2) The project name and agreement number to which it applies; 3) The certificate holder as Jefferson County, Washington and its elected officials, officers, employees and agents with the address of Jefferson County Risk Management, P.O. Box 1220, Port Townsend, WA 98368; and 4) A statement that the insurance policy shall not be cancelled or allowed to expire except on thirty (30) days prior written notice to the County.