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HomeMy WebLinkAboutHabitat - Critical Home Repairs $90,000 Application Affordable and supportive Housing & Homeless Housing and Assistance Funds For use from January 1, 2025 to December 31, 2025 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 $165,000 for 5386 Homeless Housing and Assistance (operating) funds; $840,000 for 1590 Affordable and Supportive Housing development funds; and first year operating funds; and $560,000 for 1590 Affordable and Supportive Housing operating funds. Note that 1590 operating funds may be used for all housing-related services. Name of Project or Program oor 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: Jamie Maciejewski Title: Executive Director Address: PO Box 658 City: Port Townsend State: WA Zip: 98368 Phone Number: 360.379.2827 Fax Number: E-mail: director@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 10/18/2024 SPECIFIC INFORMATION Please separately tab each section of the application submission as to Project or Program Description, Capacity, Alignment, Approach, Impact of Funds, Budget. PROJECT DESCRIPTION • Name of Project or Program: ____Critical Home Repair • Amount requested: _____$90,000_______________________________________ • Provide a brief description of the Project or Program: (LIMIT 200 WORDS) Between January 1 and December 31, 2025 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 no-interest note, forgivable after 20 years, 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, or fully forgiven after 20 years. Measures: Homebuyer is certified at or below 60% AMI; a no-interest lien is placed against the home upon completion; no payments are collected for 20 years, or until the home is sold; after 20 years, the note is forgiven in full if the original owner continues to occupy the home; 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 ▪ Homeowner certified at or below 60% AMI ▪ Executed, forgivable (after 20 years), no-interest note secured by a Deed of Trust ▪ 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: • Identify 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. If you are submitting for both operating and development funds, please submit separate budgets for each. 5386 Operating Funds: 1590 Development Funds: XX (Alternative) 1590 Operating Funds: XX Eligible uses carried out by Habitat EJC’s Critical Repair Program include “housing- related services for eligible households at or below sixty percent AMI” including the following population groups: • Persons with mental illness • Veterans • Senior citizens • Homeless (or at-risk of being homeless) families with children • Persons with disabilities • Domestic violence survivors NOTE: we are submitting under 1590 Operating Funds, with the option for the committee to move the application to 1590 Development Funds if it is believed to be a better fit. • Provide a brief description of recent, relevant and successful experiences in delivering similar programs and/or projects. In 2011, our affiliate joined Habitat International’s Neighborhood Revitalization initiative, a holistic program that focused on partnership with volunteers, homeowners, neighbors and local organizations to help serve people in remote areas. The program emphasizes that, for families to succeed, sometimes the dynamics of their neighborhoods have to change. Through research and feedback from our community, we decided to focus our efforts on South County, where we saw an enormous need for home repairs. Thirteen years later, our repair program is flourishing. We have repaired over 50 homes with more than 30 of those in South County. Today, we are simultaneously working on around 7 repair projects scattered throughout East Jefferson County. We’re helping families whose homes have affected their health and safety. With the completion of each repair, we empower them to safely stay in their homes for at least another 5 years. • 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 and preserving the stock of lower-cost housing. 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 ▪ 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. A. APPROACH - Completeness of Proposal and Readiness (5 Points) (LIMIT 400 WORDS) Habitat EJC’s Critical Repair Program has become significantly more robust over the past year. Construction Manager Scott Lemm collaborates with Homeowner Services Manager Leanne Smith to identify and evaluate repair projects, define scope of work and create project timelines. • 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 2025, which began on July 1, 2024, $170,000 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 2025 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 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, provide critical repairs on homes owned by low-income families with incomes below 80% AMI but above the income guidelines for County funds. 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 2025. • 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. C. PROJECT OR PROGRAM BUDGET – A Feasible Financial Plan (5 Points) BUDGET FORMS Funding period begins January 1, 2025, and ends December 31, 2025. 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 $170,000 Repair costs for at least 12 projects Construction Fees $ Financing Fees and Charges $ Guarantees and Reserves $ Developers Fee $ $ Subtotal $ TOTAL $170,000 SOURCES Financing Categories Estimator Indicate if Committed or Application has been made. If not made indicate date application is to be submitted Private Loan $ Jefferson County Funds $90,000 Grant application Public Sources (State or Federal Funds) $ Foundations $30,000 Donations $50,000 We have received donations exceeding this amount from donors who specifically wanted to support critical repairs, and anticipate renewed support next year. Low Income Housing Tax Credits (indicate 9% or 4%) $ Historic Tax Credits $ New Market Tax Credits $ Gap (if any) $ TOTAL $170,000 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 $170,000: Based on a minimum of 12 projects (homes) at an average of $14,200/project, which includes direct contractor costs and time from the construction manager in scoping, contracting, and managing projects. Sources Private contributions $50,000: We have received donations exceeding this amount from donors who specifically wanted to support critical repairs and anticipate renewed support next year. Foundations: We have several pending grant applications to private foundations. Gap: This is the amount of $90,000 we request from Jefferson County Affordable Housing Funds. Habitat for Humanity FYE 6/30/25 East Jefferson County Budget Income 4000 · Grants 1,556,000 4100 · Contributions 2,007,000 4600 Mason St 955,000 4600 Mason St - Prefunding 3,000,000 4300 · Habitat Store 500,000 4400 · In-Kind Contributions 72,000 4400 · In-Kind Cont. - Store 500,000 4500 · Home Sales 1,993,000 4800 · Mortgage Loan Disct Amort 30,000 4900 · Other Income 20,400 Total Income 10,633,400 Cost of Goods Sold 5000 · Direct Construction Costs 2,697,660 5050 · Repair Costs 153,000 5300 · Store Cost of Goods Sold 500,075 Total COGS 3,350,735 Expenses 6000 · Salary & Wage Expenses 1,275,277 6100 · Payroll Taxes & Benefits 374,193 6200 · Professional Fees 269,260 6300 · Supplies and Equipment 22,000 Habitat for Humanity FYE 6/30/25 East Jefferson County Budget 6400 · Telephone 19,000 6450 · Information Technology 83,100 6500 · Postage & Shipping 5,000 6600 · Facilities 79,200 6700 · Equipment Rental & Maint 2,220 6800 · Communications 54,190 6900 · Vehicle Expense & Travel 27,520 7000 · Conf, Conv, Mtgs, Seminars 19,400 7100 · Volunteers 38,500 7200 · Dues, Fees, Lic, Permits 81,650 7300 · Taxes 12,400 7350 · Interest 68,418 7400 · Homeowner Services 28,500 7500 · Tithes 80,000 7600 · Insurance 34,250 7700 · Community & Public Rel 11,900 7900 NMTC Expenses 23,556 8000 · Depreciation 39,300 Total Expense 2,648,834 Net Income 4,633,831 Other Cash In (Out) Land Held for Development (2,270,000) Habitat for Humanity FYE 6/30/25 East Jefferson County Budget House Construction (2,207,952) Cash impact, COGS on sale 2,697,660 Pledges/Grants Received - (deferred) 984,296 Debt & Financing Activity (45,264) Operating Activities 45,210 Changes to other Assets (3,000) Adjust. for non-cash activities 9,300 Total Other Cash In (Out) (789,750) Total change in Cash 3,844,081 Cash Reserves Released (Restr'd) (2,985,740) Change in Unrestricted Cash 858,341 Total Cash, end of period 5,474,463 Restricted cash, end of period 4,605,720 Unrestricted Cash, end of period 868,743 Basic Assumptions Home starts 10 Recycles Acquired - Number of New Houses Completed 8 Number of Recycled Homes Sold 1 Total Houses Sold (new + recycled) 9