DEVELOPER FUNDING INCENTIVES - Invest Atlanta · DEVELOPER FUNDING INCENTIVES For Project Financing...

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DEVELOPER FUNDING INCENTIVES

For Project Financing

THIS DOCUMENT INCLUDES A COMPREHENSIVE DESCRIPTION OF EACH OF THE AVAILABLE FUNDING SOURCES

TAX EXEMPT BOND FINANCING

HOUSING OPPORTUNITY BOND FINANCING

VINE CITY / ENGLISH AVE TRUST FUND FINANCING

BELTLINE AFFORDABLE HOUSING TRUST FUND

TAX ALLOCATION DISTRICTS DEVELOPMENT FINANCING

http://www.investatlanta.com/


Invest Atlanta is a public authority created by the City of Atlanta to promote the revitalization and growth of the City. It

represents a consolidation of the City’s economic and community development efforts in real estate, finance, marketing and

employment, for the purpose of providing a focal point for improving Atlanta’s neighborhoods and the quality of life for all of

its citizens.

Invest Atlanta is the official economic development agency for the City of Atlanta. It represents in-town Atlanta, a population

of approximately 500,000, and growing. A research-based economic development organization, it focuses on residential,

business and investment growth in the city. Invest Atlanta is governed by a 9 member board of directors, chaired by the

mayor of Atlanta. Invest Atlanta has 50 employees and partners with over 55 economic development partner organizations

regularly. One of Invest Atlanta’s core competencies is real estate finance. Invest Atlanta has several loan programs that it

administers for workforce housing developments. These programs include: the Tax Exempt Bond Program, the Housing

Opportunity Bond Program, Vine City Trust Fund, HOME Investment Partnership Program. Invest Atlanta also administers

the Beltline Affordable Housing Trust Fund which is a grant program for profit and not-for-profit developers who have projects

within the boundaries of the Beltline Tax Allocation District. Finally, Invest Atlanta administers lease-purchase bonds which

provide a 10-year reduction on property taxes in exchange for a project with public benefits such as workforce housing or

permanent job creation.



CONCEPT SUBMISSION

The CONCEPT SUBMISSION is For Developers, who have:

An idea for a development but are unsure about the funding sources

A need for financial consultation on a development project

Limited experience with workforce housing developments

While the CONCEPT SUBMISSION is provided to the development community to foster the relationship while a project is in the

preliminary stages, it is not required that all developers complete the concept submission. If you are a developer who seeks to

understand the process and who needs a comprehensive analysis of your development, please complete the CONCEPT SUBMISSION

and contact Alan Ferguson at (404) 614-8290 / [email protected] or Vickey Roberts at (404) 614-8305 /

[email protected].

DEVELOPER INCENTIVE APPLICATION

The Developer Incentive Application is For Developers, who have:

All the prerequisites for funding and project underwriting as stated in the 2015 Developer Incentive Program Guidelines

Existing experience with Invest Atlanta or GA Dept. of Community Affairs funding

If you are a developer who is ready to proceed toward funding, please complete the Developer Incentive Application. Once the

application is completed in its entirety, please contact Alan Ferguson at (404) 614-8290 / [email protected] or Vickey

Roberts at (404) 614-8305 / [email protected].

Benefits for the Developers who complete the CONCEPT SUBMISSION:

Early notification to Invest Atlanta of your pending development progress

A consultation with the Invest Atlanta staff and underwriters who will provide relevant and pertinent feedback

Streamlined process for supplying materials if project is not at the funding stage


mailto:[email protected]

mailto:[email protected]


T A X E X E M P T B O N D F I N A N C I N G P A G E

Eligible Developments

Use of Funds

Developer Guidelines

Neighborhood Compatibility

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H O U S I N G O P P O R T U N I T Y B O N D M U L T I F A M I L Y L O A N S


Use of Funds

Non Profit

For Profit


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H O U S I N G O P P O R T U N I T Y B O N D S I N G L E - F A M I L Y L O A N S


Use of Funds

Non Profit

For Profit


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10

V I N E C I T Y T R U S T F U N D F I N A N C I N G


Use of Funds



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B E L T L I N E A F F O R D A B L E H O U S I N G T R U S T F U N D


Use of Funds



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E A S T S I D E T A D D E V E L O P M E N T G R A N T G U I D E L I N E S

Programs


Use of Funds


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W E S T S I D E T A D D E V E L O P M E N T G R A N T G U I D E L I N E S

Programs


Use of Funds


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A P P L I C A T I O N A N D D E V E L O P M E N T G U I D E L I N E S

Property Standards

City of Atlanta Environmental Review

Historic Preservation Review

Scoring Criteria

Fees

Full Underwriting Process

2015 Developer Incentive Application Submission

Application Instructions

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New Construction or Acquisition and Rehabilitation. Minimum of 75 units and $5MM in Total Development Costs.

Conversion of an existing property not being used for housing

40% of units must be set aside to persons at 60% AMI or 20% of units set aside at 50% AMI.

See http://www.huduser.org/portal/datasets/il.html for AMI limits.

A minimum of 15% of units must be set aside for market rate tenants with no income restrictions

Be located within the City Limits of Atlanta

Developer must have experience commensurate with scope and size of the project

Developer must have a successful track record of property management and marketing

All workforce units must be comparable in size and quality to market rate units within the same development. Affordability must be

disbursed across unit types and floors.

Developer must have financial capacity

Development must meet sustainability requirements

Bond Financing must be at least 50% of capital stack

Cost of Issuance financed by Tax Exempt Bonds cannot exceed 2% of bond amount

Affordability period is the greater of 15 years or as long as bonds are outstanding

Tax-Exempt bonds can be coupled with 4% LIHTC’s & must be enhanced by letter of credit or by a financial guarantee unless the

bonds are sold via private placement or the bonds are rated and the project has a HUD HAP contract of at least 15-years

Bond Financing can be used for up to 100% of total development costs provided debt supports a minimum 1.20x DSCR.

For Acquisition and Rehabilitation, rehabilitation costs must equal at least 10% of the total project cost

URFA encourages developers to plan/develop projects that are located in the following areas:

o Economic Development Priority Areas

o Qualified Census Tracts

o Difficult to Develop Zones

o Within 1/4 mile of MARTA Mass Transit, Atlanta Streetcar, or Atlanta Beltline

o Within a Tax Allocation Districts (TAD)

Development must complement and enhance the existing character of the neighborhood

NPU Letter

ELIGIBLE DEVELOPMENTS

DEVELOPER GUIDELINES

USE OF FUNDS

NEIGHBORHOOD COMPATIBILITY

Tax exempt bonds are issued by the Urban Residential Finance Authority (the Housing Finance group of Invest Atlanta) to assis t with

the accomplishment of growth in multifamily housing. URFA is empowered to issue tax exempt bonds to make below market interest

rate mortgage loans to developers for rental housing provided Internal Revenue Service section 142 requirements are met to ensure

that a percentage of the rental units benefit low and moderate income renters.

Each year URFA receives a tax exempt bond allocation from GA Department of Community Affairs. URFA serves as a conduit bond

issuer. Bonds are issued on a first-come, first-served basis based on availability of allocation. There is no maximum amount of bonds

that can be allocated to a single development. Eligible projects must be located within the city of Atlanta.

Any tax-exempt bond funds allocated pursuant to this program must be used to provide permanent financing for the development. The

allocation is not intended for short-term financing, or “bridge” financing, or any refinancing, which is not the permanent financing for

the development; however, it can be used for construction financing and be taken out by another source under certain conditions.

TAX EXEMPT BOND FINANCING


http://www.huduser.org/portal/datasets/il.html


New Construction or Acquisition and Rehabilitation


May be used for rental or homeownership development

Serve a population at or below 100% of AMI for families of two or less and 115% of AMI or below for families of three or more for

homeownership projects

20% set aside for a population at or below 60% of AMI for rental housing projects. See http://www.huduser.org/portal/datasets/il.html

for AMI limits.


Project must demonstrate evidence of funding need.

Set aside for Households at 30% AMI or less

Permanent Affordability (30 years+)

Located within 1 mile of transit stations (30 years+)

Funds may be leveraged with conventional, bond, or other private or public financing

Funds serve as gap/bridge loans only; Will be underwritten based on need

Used as second mortgage loan (gap financing)

Loan cannot exceed

o Maximum amount per affordable unit:

30%-60% AMI = $40,000/Affordable Unit

0%-30% AMI = 60,000/Affordable Unit

o Maximum amount per project

$1,500,000


USE OF FUNDS

NON-PROFIT PREFERENCES

The Housing Opportunity Bond Fund (HOB) was created to provide gap financing to address a growing need for affordable workforce housing units

across the income spectrum for homeowners, builders, developers and community housing development organizations in the City of Atlanta.

Moneys held in the program fund will be used for low interest loans to developers to finance in part the acquisition, construction or renovation of

housing. These funds may be used in conjunction with conventional financing, bond financing or other private/public financing to construct and/or

rehabilitate residential housing and finance predevelopment and site development costs. No HOB loan may be made or unconditionally committed to

be made unless the developer has evidence of a firm commitment letter from funding sources detailing the terms and conditions for the balance of the

total costs of the housing development.

The obligation to repay the loan shall be evidenced by a promissory note and shall be secured by a deed to secure debt. Each housing project financed

with HOB funds shall be regulated by a land use restriction agreement for a minimum of 15 years. Funding is subject to availability.

HOUSING OPPORTUNITY BONDS MULTIFAMILY BONDS

FOR PROFIT PREFERENCES

Set aside for Households at 30% AMI or less

Permanent Affordability (30 years +)

Located within 1 mile of Transit Stations

Preservation of Existing Units

Small multifamily (<75 units)








o Within 1 mile of MARTA Mass Transit, Atlanta Streetcar, or Atlanta Beltline

o Within a Tax Allocation District (TAD)


NPU Letter




HOUSING OPPORTUNITY BONDS SINGLE-FAMILY LOANS

The Housing Opportunity Bond Fund (HOB) was created to provide gap financing to address a growing need for affordable workforce housing units

across the income spectrum for homeowners, builders, developers and community housing development organizations in the City of Atlanta.

Moneys held in the program fund will be used for low interest loans to developers to finance in part the acquisition, construction or renovation of

housing. These funds may be used in conjunction with conventional financing, bond financing or other private/public financing to construct and/or

rehabilitate residential housing and finance predevelopment and site development costs. No HOB loan may be made or unconditionally committed to

be made unless the developer has evidence of a firm commitment letter from funding sources detailing the terms and conditions for the balance of the

total costs of the housing development.

The obligation to repay the loan shall be evidenced by a promissory note and shall be secured by a deed to secure debt. Each housing project

financed with HOB funds shall be regulated by a land use restriction agreement for a minimum of 15 years. Funding is subject to availability.


New Construction or Acquisition and Rehabilitation


May be used for rental or homeownership development

Serve a population at or below 100% of AMI for families of two or less and 115% of AMI or below for families of three or more for

homeownership projects


for AMI limits.


Project must demonstrate evidence of funding need.

USE OF FUNDS

Funds may be leveraged with conventional, bond, or other private or public financing

Funds serve as gap/bridge loans only; Will be underwritten based on need

Used as second mortgage loan (gap financing)

Loan cannot exceed

o Maximum Price

HOME maximum purchase price limits

o Maximum amount per affordable unit:

For Profit :$60,000 / Unit

Non-Profit: $50,000 / Unit

o Maximum amount per project

$500,000

NON-PROFIT PREFERENCES

Set-aside for Households at 30% AMI or less

Permanent Affordability (Ground lease; Community Land Trust; etc.)

Single-Family Rental w/services to transition to homeownership

Located within 1 mile of transit stations

FOR-PROFIT PREFERENCES

Set-aside for Households at 30% AMI or less

Preservation of existing single family residential units

Permanent Affordability (Ground Lease; Community Land Trust; etc.)

Single-Family rental w/ services for transition to home ownership

Located within 1 mile of transit stations








o Within 1 mile of MARTA Mass Transit, Atlanta Streetcar, or Atlanta Beltline

o Within a Tax Allocation District (TAD)


NPU Letter




Acquisition, construction, or renovation of multifamily and single family housing


For sale housing that sets aside a minimum of 20% of the homes in the development must be marketed and sold to families of two

or less not to excess of 100% of AMI and 115% AMI for 3 or more with purchase price less than $252,890 or current 203 FHA limit


for AMI limits.

Provide for long-term affordability provisions of 15 years or more for rental; 10 years for single family

Developer must have experience commensurate with scope and size of the project

Developer must have success in leveraging additional funds

Developer must have a successful track record of property management and marketing

Must obtain, through a firm commitment, a secure funding source for the balance of the total costs of the project


Funds used as second mortgage loan (gap financing)

Funds cannot exceed 50% of the capital stack or $1.5 million

Will have an interest rate of up to 4%

The target area for the Trust Fund is the area bounded by Donald Lee Hollowell Parkway on the north; Joseph Lowery Boulevard

on the west; Martin Luther King Jr. Drive, Walnut Street and Beckwith Street as extended to Walker Street on the south and Walker

Street, Martin Luther King Jr. Drive and Northside Drive on the east.

See Map on PAGE 20. The shaded area is the boundary for the Trust Fund

NPU Letter


USE OF FUNDS



The Community/Housing Development Trust Fund was established in 1989 by the City of Atlanta, the Georgia World Congress Center

Authority and Fulton County to support the revitalization of communities adjacent to the Georgia Dome Stadium and the Georgia World

Congress Center.

The City of Atlanta designated the Urban Residential Finance Authority (URFA) as the administrator for the Trust Fund. Through the

Trust fund, loans in the total amount of $8 million were made to for–profit, non-profit developers and homebuyers to provide for new

and rehabilitated rental housing as well as homeownership opportunities.

The repayment dollars for these loans revolves into a program income account and is used to make additional loans for eligible housing

development in the Vine City and English Avenue communities. Funding is subject to availability.

VINE CITY TRUST FUND FINANCING




The Atlanta Beltline Affordable Housing Trust Fund (BAHTF) was created in 2008 to foster affordable housing development along the

Atlanta Beltline. Recapitalized in 2017, the trust fund is overseen by the Beltline Affordable Housing Advisory Board and managed by

Atlanta Beltline, Inc. and Invest Atlanta. Decisions to incentivize projects are made by the Board of Directors of Invest Atlanta.

Properties inside the Atlanta Beltline Tax Allocation District (TAD) are eligible for BAHTF Incentives. Verify the subject property is inside

the Atlanta Beltline TAD before applying the BAHTF incentives by visiting the Atlanta Beltline TAD map.

USE OF FUNDS

Maximum Incentive Amounts

Deal type

Maximum subsidy per

unit*

Maximum subsidy per

project

9% LIHTC $15,000 $2,000,000

4% LIHTC with other

subsidy $25,000 $2,000,000

For Sale $40,000 $2,000,000

Rental $40,000 $2,000,000

o *Maximum subsidy is the maximum amount ABI will provide per unit. Actual

subsidy amount is based on review and analysis of need.

o Projects committing to greater depths of affordability (percentage of affordable

units per project) and longer terms of affordability will be considered for greater

amounts of subsidy.

BELTLINE AFFORDABLE HOUSING TRUST FUND



All projects supported by the BAHTF must meet or exceed the requirements in the guidelines below. Any project proposal not

consistent with the guidelines must seek an exception from the Invest Atlanta Housing Committee or Board of Directors.

Conventional Developer Incentives

o Rental developments

Grant or subordinate, so debt enforced by a Land Use Restrict on Agreement

60% of area median income (“AMI”) eligibility cap for affordable units funded by the Trust Fund

Require a minimum 20 year affordability period

Maximum unit rents for affordable units will be based upon 30 percent of the 60 percent annual median

income limit adjusted for household size as published annually by the U.S. Department of Housing and

Urban Development for the Atlanta‐Sandy Springs‐Roswell Metropolitan Statistical Area. For the

purpose of calculating maximum affordable unit rents, household size is based upon 1.5 persons per

bedroom.

o For Sale Developments

The Trust Fund will allocate subsidies to developers that commit to building affordable for sale units

100% of AMI eligibility cap for one or two person households

A minimum of 20% of all units in each development must be affordable.

All affordable units will be permanently affordable.

Maximum sales price for each affordable for‐sale unit will be based upon 3x the 100 percent annual

median income limit adjusted for household size as published annually by the U.S. Department of

Housing and Urban Development for the Atlanta‐Sandy Springs‐Roswell Metropolitan Statistical Area.

For the purpose of calculating the maximum affordable for‐sale unit sales price, household size is

based upon 1.5 persons per bedroom.

Non-Profit Developer Incentives

o Rental Developments

Grant or flexible subordinate debt to CHDOs enforced by a land use restriction agreement

60% of AMI eligibility cap for affordable units funded by the Trust Fund

A minimum of 20% of all units in each development must be affordable

Require a minimum 20 year affordability period

Maximum unit rents for affordable units will be based upon 30 percent of the 60 percent annual median

income limit adjusted for household size as published annually by the U.S. Department of Housing and

Urban Development for the Atlanta‐Sandy Springs‐Roswell Metropolitan Statistical Area. For the

purpose of calculating maximum affordable unit rents, household size is based upon 1.5 persons per

bedroom.

o For Sale Developments

The Trust Fund will allocate subsidies to CHDOs that commit to building affordable for sale units

100% of AMI eligibility cap for one or two person households

A minimum of 20% of all units in each development must be affordable

A minimum of 20% of all units in each development must be affordable ● All affordable units will be

permanently affordable

Maximum sales price for each affordable for‐sale unit will be based upon 3x the 100 percent annual

median income limit adjusted for household size as published annually by the U.S. Department of

Housing and Urban Development for the Atlanta‐Sandy Springs‐Roswell Metropolitan Statistical Area.

For the purpose of calculating the maximum affordable for sale unit sales price, household size is based

upon 1.5 persons per bedroom.

Properties inside the Atlanta Beltline Tax Allocation District (TAD)



Invest Atlanta intends to utilize available Eastside Tax Allocation District (“Eastside TAD”) tax increment to provide gap financing for real

estate projects in the eastside TAD. Invest Atlanta invites qualified developers, property owners, and business owners seeking to develop

catalytic real estate projects and/or improve eligible property within the Eastside TAD to apply for grant funding from one of four primary

programs.

Ascension Fund Grant

Resurgens Fund Grant

Community empowerment Fund

Downtown Facade Improvement Grant

The Eastside TAD was created to rebuild downtown and its surrounding neighborhoods into a place to live, work, and play. Through TAD

funding, the Eastside TAD supports the development of new infill and anchor projects and promotes the implementation of public

infrastructure and amenities that are critical to building a sustainable community. Broad objectives of the Eastside TAD redevelopment

plan include, maintain the City of Atlanta as the historical commercial center of the metro region, attracting downtown jobs and residents,

creating an attractive, walkable downtown through new development and public infrastructure, investing in new mixed-use, mixed-income

housing revitalizing the Sweet Auburn/Old Fourth Ward and Memorial Drive corridors, and redeveloping Grady Homes and Capital Homes

into mixed-income communities.

EASTSIDE TAD DEVELOPMENT GRANT GUIDELINES

PROGRAMS

May finance, in part, the acquisition, construction, or renovation of multifamily housing for low and moderate income families

Be located within the City of Atlanta

Must have a minimum of 5 HOME-assisted units.

Provide for affordability provision

All Projects must meet the Model Energy Code

May be used for multifamily developments and will not be made or unconditionally committed to be made unless secure funding sources are identified for the balance of the total project cost of the housing project

Projects are eligible for a maximum of $35,000 per HOME Assisted Unit

Ensure all units receiving HOME assistance must be occupied by households earning no more than 80% of the area median income

Ensure at least 20% of the HOME units must be affordable to households earning no more than 50% and 20% at 60% of area median income.



o Applicants may apply for the following Ascension Fund grant based on the size of the total investment of the

project, including eligible acquisition costs (if under contract or purchased from an unrelated legal entity within

the previous 12 months of the date of application), hard costs (interior and exterior), and soft costs (see TAD

Requirements):

Projects are eligible for a maximum grant of 10% project costs


o Applicants may apply for the following Resurgens Fund grant based on the size of the total investment of the



requirements):

Projects are eligible for a maximum grant based on project size


o Projects less than $3.0 million are eligible for up to 25% of total costs

o Projects greater than $3.0 million but less than $7.5 million are eligible for a

maximum of $750,000.

Community Empowerment Fund Grant

o Applicants may apply for the following Community Empowerment Fund grant based on the size of the total

investment of the project, including eligible acquisition costs (if under contract or purchased from an unrelated

legal entity within the previous 12 months of the date of application), hard costs (interior and exterior), and

soft costs (see TAD requirements)

Projects are eligible for a maximum grant of 50% of project costs, not to exceed $1.5 million.



Please refer to the link below for details on eligible developments

http://www.investatlanta.com/wp-content/uploads/Eastside-TAD-Program-Guidelines-051917.pdf

For-profit developers and non-profit developers are eligible to apply for HOME funds


All TAD funding requests are distributed on a reimbursement basis and must include the appropriate documentation evidencing e ligible

capital costs have been incurred. The Georgia redevelopment powers law (O.C.G.A. TITLE 36 Chapter 44) states that eligible uses of

funds include:

Capital costs, including the costs incurred or estimated to be incurred for the construction of public works or improvements,

new buildings, structures, and fixtures; the renovation, rehabilitation, reconstruction, remodeling, repair, demolition, alteration,

or expansion of existing buildings, structures, and fixtures; the acquisition of equipment; and the clearing and grading of land

Professional service costs, including those costs incurred for architectural, planning, engineering, financial, marketing, and

legal advice and services;

Real property assembly costs












USE OF FUNDS



http://www.investatlanta.com/wp-content/uploads/Eastside-TAD-Program-Guidelines-051917.pdf


WESTSIDE TAD DEVELOPMENT GRANT GUIDELINES

Invest Atlanta intends to utilize available Westside Tax Allocation District (“Westside TAD”) tax increment to provide gap financing for

redevelopment and capital projects in the Westside TAD. Invest Atlanta invites qualified developers, property owners, business owners

and project sponsors seeking to develop catalytic real estate projects and/or improve eligible property within the Westside TAD to apply

for grant funding from one of three primary programs.


Community Improvement Fund Grant



o Applicants may apply for the following Ascension Fund grant based on the size of the total investment of the



Requirements):

Projects are eligible for a maximum grant of 10% project costs


o Applicants may apply for the following Resurgens Fund grant based on the size of the total investment of the



requirements):



o Projects less than $3.0 million are eligible for up to 25% of total costs

o Projects greater than $3.0 million but less than $7.5 million are eligible for a

maximum of $750,000.


o Applicants may apply for the following grants:

Property owners are eligible to apply for up to 2/3 (66.67 percent) of exterior renovation costs,

with a minimum project cost of $30,000 ($20,000 grant) and a maximum project cost of $300,000

($200,000 grant)

Property owners are eligible to apply for up to 2/3 (66.67 percent) of exterior renovation costs,

with a minimum project cost of $30,000 ($20,000 grant) and a maximum project cost of $300,000

($200,000 grant)

PROGRAMS






















Please refer to the link below for details on eligible developments

http://www.investatlanta.com/wp-content/uploads/Westside-TAD-Program-Guidelines-FINAL.pdf


http://www.investatlanta.com/wp-content/uploads/Westside-TAD-Program-Guidelines-FINAL.pdf


USE OF FUNDS

All TAD funding requests are distributed on a reimbursement basis and must include the appropriate documentation evidencing eligible

capital costs have been incurred. The Georgia redevelopment powers law (O.C.G.A. TITLE 36 Chapter 44) states that eligible uses of

funds include:

Capital costs, including the costs incurred or estimated to be incurred for the construction of public works or improvements,

new buildings, structures, and fixtures; the renovation, rehabilitation, reconstruction, remodeling, repair, demolition, alteration,

or expansion of existing buildings, structures, and fixtures; the acquisition of equipment; and the clearing and grading of land

Professional service costs, including those costs incurred for architectural, planning, engineering, financial, marketing, and

legal advice and services;

Real property assembly costs


For-profit developers and non-profit developers are eligible to apply for HOME funds




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Property Standards

All properties must maintain property standards through-out the affordability period. All projects must meet the accessibility requirement

of the Fair Housing Act and Section 504 of the Rehabilitation Act of 1973.

City of Atlanta Environmental Review

Every HOME project will be submitted to the City of Atlanta’s Office of Housing for environmental clearance.

Historic Preservation Review

Projects consisting of a building(s) that is 50 years old or older must submit information to the Urban Design Commission for review.

Applications must be complete

An application must be complete. Incomplete applications will not be scored until all required information is submitted. NOTE: All

incomplete applications will be discarded after 60 days.

Application Fees

All Applicants are not required to complete the CONCEPT SUBMISSION.

The CONCEPT SUBMISSION Fee is (US) $250.00 and is nonrefundable. The Incentive Application Fee is based on the program or

programs for which a developer applies. Applications recommended for Full Underwriting will have the CONCEPT SUBMISSION Fee

credited to Developer Incentive Application; all fees must be paid by certified check, money order or wire.

Developer Incentive Application Fees

Please see the detailed schedule of fees on pages 14 – 16. All fees are non-refundable and should be paid with certified funds.

APPLICATION AND DEVELOPMENT GUIDELINES



Applicant – Financial Strength & History

Developer and/or Partner(s) must be able to explain:

Favorable Trending History

Cash Reserves

Current Debt Capacity

Existing/Future Liabilities

Project Financial Strength

Project must be able to exhibit:

Positive Trending

Positive Cash Reserves

Positive Debt Ratio

Detailed Sources and Uses

Positive IRR

Recent Commitment Letters (within six-months on current

application)

Term Sheets from all related parties and lenders (within six-

months on current application)

Project location within ¼ mile of planned transit stop (if

applicable)

Project Readiness


Architectural drawings ready for submission (if needed)

Evidence of Site Control

Construction and Build Design Notification

Zoning Compliance

Letter from Neighborhood Planning Unit (within six-months on

current application)

Support Letter from CHDO Board (within six-months on current

application if needed)

Identification of Property Management Firm

Please supply most recent resume and two letters of

recommendation of service

Architect Agreement

Construction Contract

Firm Construction Cost Estimate

Meeting Housing Needs

Where Applicable, Developer must prove:

Project location if in a target area, census tract, property area

(as defined in an economic development plan), tax allocation

district, near mass transit or rail station

Creates “Specialty” units (supportive housings, supportive

services, utilizes rental assistance)

Serving Special Needs

Where Applicable, Developer must prove:

Percentage of units set-aside based on AMI

First-Time Homebuyer opportunities at designated AMI

Inclusion of target population (city employees, etc.)

Inclusion of large families

Opportunities for senior living and/or transitional living

Inclusion of Community Land Trusts (CLT)

Scoring Criteria Guidelines for Incentives



Community Revitalization


Removal of blighted property

Adaptive reuse of existing property

Improving the quality, energy efficiency, and modernity of

existing property.

Developer Experience

Developer must be able to exhibit:

Experience with Workforce Housing Initiatives

Experience with Development Partners in executing

Workforce Housing Initiatives

Experience with Workforce Housing Management

Design Quality


Incorporation of BeltLine Design Guidelines

Incorporation of Project Safety Guidelines

Incorporation of Walkability and Greenspace

Incorporation of Legacy Building Materials

Scoring Preferences

Developments with one or more of the following will receive a strong scoring preference which is the highest point value in its respective

scoring category:

Evidence of strong financial feasibility for the project

10% of the total units are to persons at or below 30% of AMI.

Proposed development incorporates Community Land Trust (“CLT”) units as part of development

Financial strength of developer

Firm commitment letters from financing sources

Aesthetic design & adherence to Beltline Overlay District Principles

Proximity to the BeltLine, MARTA Mass Transit, or Atlanta Streetcar

Developments in existing Community Housing Development Organization (“CHDO”) or Community Development Corporation

(“CDC”) neighborhoods that include the CHDO or CDC as a significant partner on the development team

Developments with units that are prewired for security systems

Scoring Criteria Guidelines for Incentives



All fees must be paid by certified funds and are subject to change.

Application Fee: 10 bps of the bond amount

At time of application

One-time non-refundable fee

Commitment Fee:

50 bps of the bond amount as indicated at submission of application

100% due immediately following bond inducement


Bond Compliance Fee: $36/per set-aside unit/year

1st two-years due at Closing

Due annually on Closing Anniversary Date

Asset Management Fee: $7,000



Issuer Expenses: $6,000 fee which includes: TEFRA, Validation, Publication and Printing

Due at Closing




Commitment Fee: 50 bps of the bond amount as indicated at submission of application



Bond Compliance Fee:

$36/per set-aside unit/year



Asset Management Fee: The greater of 12.5bps or $10,000




Due at Closing

TAX EXEMPT BOND FINANCING – FEES (BOND AMOUNT $5,000,000 OR LESS)

THAN 75 UNITS)

TAX EXEMPT BOND FINANCING – FEES (BOND AMOUNT $5,000,001 - $10,000,000)






No Fees associated with this program




Commitment Fee: 50 bps of the bond amount as indicated at submission of application



Bond Compliance Fee:

$36/per set-aside unit/year



Asset Management Fee: The greater of 12.5bps or $20,000




Due at Closing

Application Fee: 10 bps of the bond/requested amount

$500.00 Minimum



CHDO Application Fee: $500.00



Origination Fee

1% of the total requested amount

Due at Closing

Commitment Fee: $1500.00

Due Immediately after Award Letter issued

Asset Management Fee: $5,000.00

1st two years due at Closing


HOUSING OPPORTUNITY BOND FINANCING - FEES

VINE CITY TRUST FUND FINANCING - FEES

TAX EXEMPT BOND FINANCING – FEES (BOND AMOUNT GREATER THAN $10,000,000)

HOME INVESTMENT PARTNERSHIP PROGRAM FINANCING - FEES



No fees associated with home Investment Partnership program.

Application Process

Applications will be approved by the Invest Atlanta or URFA Board of Directors and/or the Housing Committee of the Invest Atlanta

Board or the URFA Board of Directors.

Each Application must contain all the items on this checklist. Failure to provide all or any parts of the checklist could result in a delayed

response and applications will not be considered. Please include this checklist in your application.

The CONCEPT SUBMISSION Requirements

Evidence of Site Control (Purchase and Sale Agreement or other supporting documents)

Development Renderings and Existing Site Photos (Concept Drawings & Site Plan)

Sources and Uses Chart

Construction Budget

Map Showing Development Location

15-year Proforma

Market Study

Full Application Requirements

Letter from CHDO Board supporting the request for funds (if applicable)

Letter of Support or Denial from Neighborhood Planning Unit

Sources and Uses Chart

15-year Operating Proforma

Evidence of Site Control

Development Renderings and Existing Site Photos

Proof that project meets the sustainability requirements

1/4 Size Architectural Drawings (at a minimum to a schematic level of detail)

Map Showing Development Location

Marketing Plan (for owner occupied developments)

Lease Up Schedule (for rental developments)

Documentation of Minority/ Female/ Disadvantaged Business Enterprise efforts, if applicable

Market Study

2 Years of Developer Audited Financials

Physical Needs Assessment (for rehab developments)

Phase I Environmental Site Assessment Report (no later than six-months old)

Appraisal

Construction Contract

Firm Construction Budget

Term sheet from other financing sources

Sustainability Requirements (Projects must meet a minimum of one of these standards)

LEED EarthCraft Indoor airPlus Enterprise Green Communities Green Globes

Energy Star + Water Sense Atlanta NSP Requirements

APPLICATION INSTRUCTIONS


http://www.investatlanta.com/buildDev/documents/Jan2012_Cert_Policy_Manual.pdf

http://www.earthcraft.org/earthcraft-programs

http://www.investatlanta.com/buildDev/documents/construction_specifications.pdf

http://www.investatlanta.com/buildDev/documents/green-certification-process.pdf

http://www.energystar.gov/index.cfm?c=bldrs_lenders_raters.nh_v3_guidelines

http://www.epa.gov/WaterSense/pubs/waterenergy.html

http://www.investatlanta.com/buildDev/documents/GreenRehabRequirements.pdf


In order to determine eligibility of a development for Developer Incentive financing, interested applicants must:

• Contact Invest Atlanta to arrange an initial meeting to discuss the viability of your proposed development for financing.

• Complete the application and submit the package electronically on a CD or USB Flash Drive with content, tabs, formatting and order

of application. One copy of the completed application on CD or USB Flash Drive shall be submitted to Invest Atlanta, accompanied

by the non-refundable application fee.

Application Steps

Upon receipt of an application, Invest Atlanta staff will review the application for content and completeness.

After the application has been reviewed for consistency with Invest Atlanta goals, staff will evaluate and score the application.

Invest Atlanta staff will present to the Committee its recommendation for funding.

Upon approval for funding by the Committee, the developer will be notified by Invest Atlanta.

The developer of approved development will be required to enter into an agreement which outlines the terms, conditions and

covenants of the funding source, detailing the disbursement of proceeds.

At Invest Atlanta’s sole discretion, a new application and fee may be required if a prior submission was inadequate based on

the application submission guidelines.

APPLICATION INSTRUCTIONS



C i t y o f A t l a n t a


DEVELOPER FUNDING INCENTIVES - Invest Atlanta · DEVELOPER FUNDING INCENTIVES For Project Financing...

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