1. Applications will be accepted on an on-going basis. However, due to limited funding availability, earlier proposals may have a greater likelihood of receiving funding.
2. Proposals should be submitted in written format not to exceed ten (10) pages, and must include the attached one-page application summary cover. Each property/project requires an individual application.
3. The proposal should:
(a) provide documentation of the need for the program;
(b) include a proposed budget detailing other sources of funding and uses;
(c) contain a project pro-forma income and expense analysis for three years utilizing the requested loan terms, with supplemental pro-formas at a higher and lower interest rate;
(d) include a timeline of project completion; and
(e) briefly describe the background and experience of the agency to identify its qualifications to provide the proposed housing program.
4. Ten (10) copies of the application and proposal should be delivered to the Authority in care of El Paso County’s Economic Development Division, 27 E. Vermijo, 5th Floor 200, Colorado Springs, CO 80903.
5. Upon receipt, staff will review the proposals and may request additional information and clarifications prior to submitting them to the Authority.
6. If the Authority requests, interviews will be scheduled, especially for new applicants, at which time further information will be required of the proposing agency. For known contractors, interviews will not typically be conducted.
FUNDING DECISIONS
1. Commissioners of the El Paso County Housing Authority will review the proposals and determine if the established criteria are met. No review will be undertaken if the application is not complete.
2. Priority will be given to programs which:
· Assist the greatest number of residents
· Assist those of lower income
· Do not duplicate existing programs
· Leverage other funds (matching), especially non-governmental sources
· Create no risk or additional administrative cost/burden to the Authority
· Are self-renewing or include on-going repayment
· Are less than $50,000.00
· Utilize the funds for direct costs and not administrative costs
· Have a high likelihood of completion
3. Only in rare instances will funding be provided with no repayment required.
4. Deferred loans are discouraged since funds are not revolved efficiently.
5. Adequate security for loans will be required.
6. Loan commitments are limited to 90 days from date of issuance for existing projects of one- to four-units while multifamily commercial projects will be limited to six months. New construction commitments will not exceed one year.
7. Amendment requests are highly discouraged and may jeopardize future funding requests.
8. Loans for rental properties or lease projects will require balloon payments within seven years or less. Amortization will be limited to less than 30 years for all loans.
CLOSINGS/DISBURSEMENTS/REPORTING
1. A contract for services between the Authority and applicant will be required for the direct purchase of services. Disbursements will be structured to ensure maximum usage of the funds. Required reporting will be outlined in the contract.
2. For approved loans, the Authority will issue a commitment letter. Upon acceptance of the commitment, loan documents will be prepared by legal counsel for the Authority in accordance with the provisions of the commitment. Fees for legal counsel will be the responsibility of the applicant and will depend on the complexity of the transaction and the number of changes requested.
3. Loan disbursement will occur at the time of loan closing.
4. Reporting will be a requirement of the loan agreement and will be individually determined for each project. At a minimum, information on the assisted individuals (including income), rent/lease payment structure, physical improvements made, and expenses of the property will be required. For each borrower/contractor, audited financial statements will be required.
ADDITIONAL INFORMATION
For further information, please contact the Authority staff at El Paso County’s Economic Development Division, (719)520-6481.