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 Maine’s 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 MaineHousing’s 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.

Program Requirements

 

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 MaineHousing’s 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: MaineHousing’s Rental Loan Program Guide (to the extent not in conflict with this Program), Chapter 16 of MaineHousing’s Rules, Allocation of State Ceiling for Low-Income Housing Tax Credit (if applicable), and Chapter 29 of MaineHousing’s Rules, Multifamily Development and Supportive Housing Loans and Grants.

Submission Requirements

The application must be mailed or hand-delivered to Maine State Housing Authority.  MaineHousing’s 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.