Atlanta Development Authority

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

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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.

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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

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

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].

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T AX E X E M P T B O N D F INANCING PAGE  Eligible Developments 6  Use of Funds  Developer Guidelines  Neighborhood Compatibility H O U S I N G O PPORTUNITY B O N D M ULTIFAMILY L OANS  Eligible Developments 7

 Use of Funds

 Non Profit

 For Profit 8  Neighborhood Compatibility H O U S I N G O PPORTUNITY B O N D S INGLE - F A M I L Y L OANS

 Eligible Developments 9  Use of Funds

 Non Profit  For Profit  Neighborhood Compatibility 10

V I N E C I T Y T R U S T F UND F INANCING  Eligible Developments 11  Use of Funds  Developer Guidelines  Neighborhood Compatibility 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 UND  Eligible Developments 12  Use of Funds

 Developer Guidelines 13  Neighborhood Compatibility E A S T S I D E TAD D EVELOPMENT G R A N T G UIDELINES  Programs 14

 Eligible Developments

 Use of Funds  Developer Guidelines 15

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W ESTSIDE TAD D EVELOPMENT G R A N T G UIDELINES  Programs 16

 Eligible Developments 17  Use of Funds  Developer Guidelines A PPLICATION AND D EVELOPMENT G UIDELINES  Property Standards 19

 City of Atlanta Environmental Review

 Historic Preservation Review 20  Scoring Criteria

 Fees 22  Full Underwriting Process  2015 Developer Incentive Application Submission 24  Application Instructions

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TAX EXEMPT BOND FINANCING

Tax exempt bonds are issued by the Urban Residential Finance Authority (the Housing Finance group of Invest Atlanta) to assist 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.

ELIGIBLE DEVELOPMENTS

. 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

USE OF FUNDS . 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

DEVELOPER GUIDELINES . 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

NEIGHBORHOOD COMPATIBILITY

. 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

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HOUSING OPPORTUNITY BONDS MULTIFAMILY BONDS 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.

ELIGIBLE DEVELOPMENTS

. New Construction or Acquisition and Rehabilitation

. Conversion of an existing property not being used for housing

. 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. . Be located within the City Limits of Atlanta . 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 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

NON-PROFIT PREFERENCES

. Set aside for Households at 30% AMI or less . Permanent Affordability (30 years+)

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

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)

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NEIGHBORHOOD COMPATIBILITY

URFA encourages developers to plan/develop projects that are located in the following areas: . Economic Development Priority Areas o o Qualified Census Tracts

o Difficult to Develop Zones

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

o Within a Tax Allocation District (TAD)

Development must complement and enhance the existing character of the neighborhood . . NPU Letter

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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.

ELIGIBLE DEVELOPMENTS

. New Construction or Acquisition and Rehabilitation

. Conversion of an existing property not being used for housing

. 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. . Be located within the City Limits of Atlanta . 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

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NEIGHBORHOOD COMPATIBILITY

. 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 mile of MARTA Mass Transit, Atlanta Streetcar, or Atlanta Beltline o Within a Tax Allocation District (TAD) . Development must complement and enhance the existing character of the neighborhood . NPU Letter

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VINE CITY TRUST FUND FINANCING

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.

ELIGIBLE DEVELOPMENTS . Acquisition, construction, or renovation of multifamily and single family housing . Conversion of an existing property not being used for 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 . 20% set aside for a population at or below 80% of AMI for rental housing projects. See http://www.huduser.org/portal/datasets/il.html for AMI limits. . Provide for long-term affordability provisions of 15 years or more for rental; 10 years for single family

USE OF FUNDS . 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%

DEVELOPER GUIDELINES

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

. Development must meet sustainability requirements

N EIGHBORHOOD COMPATIBILITY

. 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

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BELTLINE AFFORDABLE HOUSING TRUST FUND 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

Maximum subsidy per Maximum subsidy per Deal type unit* 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.

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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)

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EASTSIDE TAD DEVELOPMENT GRANT GUIDELINES

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.

P ROGRAMS

. May finance, in part, the acquisition, construction, or renovation of multifamily housing for low and moderate . Ascension Fund Grant income families . Be located withino the Applicants City of Atlanta may apply for the following Ascension Fund grant based on the size of the total investment of the . Must have a minimumproject, of 5 HOMEincluding-assisted eligible acquisition units. 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 . Provide for affordability provision . All Projects must meetRequirements): the Model Energy Code

. May be used for multifamily. developmentsProjects are eligible and for will a maximum not be made grant ofor 10% unconditionally project costs committed to be made unless secure funding sources are identified for the balance of the total project cost of the housing project Resurgens Fund Grant . Projects are eligible for a maximum of $35,000 per HOME Assisted Unit . Ensure all units receivingo Applicants HOME may assistance apply for the must following be occupied Resurgens by Fund households grant based earning on the size no of more the total tha investmentn 80% of of thethe area median income project, including eligible acquisition costs (if under contract or purchased from an unrelated legal entity within . Ensure at least 20% theof theprevious HOME 12 monthsunits must of the be date affordable of application), to households hard costs (interi earningor and no exterior), more andthan soft 50% costs and (see 20% TAD

at 60% of area medianrequirements): income. ELIGIBLE DEVELOPMENTS . Projects are eligible for a maximum grant based on project size

 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.

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ELIGIBLE DEVELOPMENTS

. May finance, in part, the acquisition, construction, or renovation of multifamily housing for low and moderate Please refer to the link below for details on eligible developments http://www.investatlanta.com/wpincome families -content/uploads/Eastside-TAD-Program-Guidelines-051917.pdf . Be located within the City of Atlanta . Must have a minimum of 5 HOME-assisted units. .U SEProvid OF FUNDSe for affordability provision . All Projects must meet the Model Energy Code

.All MayTAD fundingbe used requests for multifamily are distributed developments on a reimbursement and will basis not and be mustmade include or unconditionally the appropriate documentationcommitted to evidencingbe made eunlessligible capitalsecure costs funding have been sources incurred. are The identified Georgia forredevelopment the balance powers of the law total (O.C.G.A. proj ectTITLE cost 36 of Chapter the housing 44) states project that eligible uses of .funds Projects include: are eligible for a maximum of $35,000 per HOME Assisted Unit . Ensure Capitalall units costs, receiving including HOME the costs assis incurredtance or must estimated be occupied to be incurred by households for the construction earning of publicno more works tha orn improvements,80% of the area mediannew buildings, income structures, and fixtures; the renovation, rehabilitation, reconstruction, remodeling, repair, demolition, alteration, . Ensure at least 20% of the HOME units must be affordable to households earning no more than 50% and 20% or expansion of existing buildings, structures, and fixtures; the acquisition of equipment; and the clearing and grading of land at 60% Professional of area median service costs,income including. those costs incurred for architectural, planning, engineering, financial, marketing, and ELIGIBLE DEVELOPMENTS legal advice and services;

 Real property assembly costs

DEVELOPER GUIDELINES . For-profit developers and non-profit developers are eligible to apply for HOME funds . Development must meet sustainability requirements

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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.

 Resurgens Fund Grant

Community Improvement Fund Grant  Downtown Facade Improvement Grant 

P ROGRAMS

. MayAscension finance, Fund Grantin part, the acquisition, construction, or renovation of multifamily housing for low and moderate income families . Be located withino the Applicants City of Atlanta may apply for the following Ascension Fund grant based on the size of the total investment of the . Must have a minimumproject, of 5 HOMEincluding-assisted eligible acquisition units. 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 . Provide for affordability provision . All Projects must meetRequirements): the Model Energy Code

. May be used for multifamily. developmentsProjects are eligible and for will a maximum not be made grant ofor 10% unconditionally project costs committed to be made unless secure funding sources are identified for the balance of the total project cost of the housing project . ProjectsResurgens are Fundeligible Grant for a maximum of $35,000 per HOME Assisted Unit . Ensure all units receivingo Applicants HOME may assistance apply for the must following be occupied Resurgens by Fund households grant based earning on the size no of more the total tha investmentn 80% of of thethe area median income project, including eligible acquisition costs (if under contract or purchased from an unrelated legal entity within

. Ensure at least 20% theof theprevious HOME 12 monthsunits must of the be date affordable of application), to households hard costs (interior earning and no exterior), more andthan soft 50% costs and (see 20% TAD at 60% of area medianrequirements): income. ELIGIBLE DEVELOPMENTS . Projects are eligible for a maximum grant based on project size

 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. . Downtown Facade Improvement Grant 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)

ELIGIBLE DEVELOPMENTS

Please. May refer finance, to the linkin part,below thefor details acquisition, on eligible construction, developments or renovation of multifamily housing for low and moderate http://www.investatlanta.com/wpincome families - content/uploads/Westside-TAD-Program-Guidelines-FINAL.pdf . 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% www.investatlanta.comat 60% of area median income . P a g e | 16 ELIGIBLE DEVELOPMENTS

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

DEVELOPER GUIDELINES

. For-profit developers and non-profit developers are eligible to apply for HOME funds . Development must meet sustainability requirements

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APPLICATION AND DEVELOPMENT GUIDELINES

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.

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Scoring Criteria Guidelines for Incentives

Applicant – Financial Strength & History  Favorable Trending History Developer and/or Partner(s) must be able to explain:  Cash Reserves  Current Debt Capacity  Existing/Future Liabilities

Project Financial Strength  Positive Trending Project must be able to exhibit:  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) Project must be able to exhibit:  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  Project location if in a target area, census tract, property area Where Applicable, Developer must prove: (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  Percentage of units set-aside based on AMI Where Applicable, Developer must prove:  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)

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Scoring Criteria Guidelines for Incentives

Community Revitalization  Removal of blighted property Project must be able to exhibit:  Adaptive reuse of existing property  Improving the quality, energy efficiency, and modernity of existing property.

Developer Experience  Experience with Workforce Housing Initiatives Developer must be able to exhibit:  Experience with Development Partners in executing Workforce Housing Initiatives  Experience with Workforce Housing Management

Design Quality  Incorporation of BeltLine Design Guidelines Project must be able to exhibit:  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

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

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 One-time non-refundable fee

THANBond Compliance75 UNITS) Fee: $36/per set-aside unit/year 1st two-years due at Closing Due annually on Closing Anniversary Date

Asset Management Fee: $7,000 1st two-years due at Closing Due annually on Closing Anniversary Date

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

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

TAX EXEMPT BOND FINANCING – FEES (BOND AMOUNT $5,000,001 - $10,000,000) 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 One-time non-refundable fee

Bond Compliance Fee: $36/per set-aside unit/year 1st two-years due at Closing Due annually on Closing Anniversary Date

Asset Management Fee: The greater of 12.5bps or $10,000 1st two-years due at Closing Due annually on Closing Anniversary Date

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

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

TAX EXEMPT BOND FINANCING – FEES (BOND AMOUNT GREATER THAN $10,000,000) 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 One-time non-refundable fee

Bond Compliance Fee: $36/per set-aside unit/year 1st two-years due at Closing Due annually on Closing Anniversary Date

Asset Management Fee: The greater of 12.5bps or $20,000 1st two-years due at Closing Due annually on Closing Anniversary Date

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

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

HOUSING OPPORTUNITY BOND FINANCING - FEES

VINE CITY TRUST FUND FINANCING - FEES Application Fee: 10 bps of the bond/requested amount $500.00 Minimum At time of application One-time non-refundable fee

CHDO Application Fee: $500.00 At time of application One-time non-refundable fee

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 Due annually on Closing Anniversary Date

All fees must be paid by certified funds and are subject to change. No Fees associated with this program HOME INVESTMENT PARTNERSHIP PROGRAM FINANCING - FEES

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No fees associated with home Investment Partnership program.

APPLICATION INSTRUCTIONS 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 Application Process Sustainability Requirements (Projects must meet a minimum of one of these standards) Applications will be approved by the Invest Atlanta or URFA Board of Directors and/or the Housing Committee of the Invest Atlanta LEED EarthCraft Indoor airPlus Board or the URFA Board of Directors. Enterprise Green Communities Energy Star + Water Sense Atlanta NSP Requirements Green Globes www.investatlanta.com P a g e | 24

APPLICATION INSTRUCTIONS

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.

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