Overview CPP Housing Component Cameo Lane FNRC. 2 DDS Housing Initiative The development of affordable, accessible homes is critical to DDS’ goal to expand

OverviewCPP

Housing Component

Cameo Lane FNRC

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DDS Housing Initiative

The development of affordable, accessible homes is critical to DDS’ goal to expand opportunities for consumers to live in integrated community settings.

Guiding Principles “Buy It Once”Separation of ownership from service

deliveryRestricted use through long-term deed

restrictions

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What is CPP Housing?

The Community Placement Plan (CPP) is an integral part of DDS’ efforts to implement Olmstead v. LC for individuals with complex needs.

The RCs CPP Housing is driven by housing needs identified in the IPP solely for:

individuals who will move from the developmental centers

individuals at risk of moving into a developmental center

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CPP Timeline

Regional centers may submit CPP proposals annually.

September - DDS issues Housing Guidelines for

proposals November - RC prepares and submits proposal to

DDS December - DDS reviews proposals and makes a

determination of conditional approval July – CPP housing implementation contingent on

passage of the State budget

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Uses of Funds (see Appendix 1 of the Housing Guidelines for more detail)

Allowable Expenses

Pre-development

Acquisition

New construction

Renovation/rehabilitation

Development costs

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Uses of Funds (cont’d)

Allowable Expenses (cont’d)

For either a single-family or multi-family project, the total cost includes: purchase price down payment equity financing (e.g. tax credit funds) renovation/rehabilitation costs

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Allowable Expenses (cont’d)

For a multi-family project the total cost is computed only for the units that will be used for CPP placements.

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Non-allowable expenses

Purchase or improvement of real property to be owned by a consumer or family.

Purchase of real property for which another funding source is available or to supplant existing funding.

Purchase of real property owned by the regional center.

Ancillary costs not associated with the production of housing.

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Role of the RC

Prepares and submits proposal to DDS; RC is the ONLY entity that may apply for CPP funds.

Provides direction and oversight to the project development team so that the housing is developed consistent with the approved CPP housing plan and guidelines.

Submits quarterly progress reports to DDS during development, and an annual report after completion of the project.

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Pre-Screening Criteria

RC has satisfactorily completed any prior CPP-funded housing projects. RC has demonstrated satisfactory progress, including timely submission of quarterly reports and required documents, on any prior CPP-funded housing projects.

The proposed housing is consistent with the needs of consumers residing in the developmental centers or requiring deflection.

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Steps to Developing a CPP Proposal

Proposal Submission

Required Elements

Narrative Description

Budget

Implementation Plan

Organizational Documentation

NPO/Development Team

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Proposal Submission Process;Proposal Content

Required Elements:

75% of the CPP units must be for individuals exiting a developmental center

25% may be used for deflection from a developmental center

CPP funds may not exceed 25% of the total cost of a proposed project

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Required Elements (cont’d):

Demonstrate a separation of property ownership from the delivery of services and supports.

Property must be owned by an NPO selected by the RC.

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Proposal Submission Process; Proposal Content

Narrative Description

Type of housing – single-family, multi-family

Number of CPP consumers served at each property

Services to be provided

Target population

Description of neighborhood

Project type – new construction, acquisition, rehabilitation/renovation

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Budget

Sources and uses of funds

Sources of leveraged funds

Ongoing operating expenses

If CPP funds are reimbursed at permanent loan closing, NPO must describe how those funds will be reused for future affordable housing projects

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Proposal Submission Process;Implementation Plan

Proposed Implementation Plan

Sequenced activities necessary for project completion

Activities specific to each project site

Projected completion date for each property

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Proposal Submission Process; Organizational Documentation

The regional center will obtain and submit the following documentation for the NPO:

RC vendor approval letter

IRS 501(c)(3) letter

Board of Equalization (BOE) Organizational Clearance Certificate for the corporation in connection with the project property.

Statement of Good Standing from Secretary of State of California

Current Articles of Incorporation

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Proposal Submission Process; Organizational Documentation (cont’d)

Current by-laws

A list of current officers

A corporate resolution authorizing non-profit organization signatory to sign documents

List of completed projects similar in nature to the proposed project

Last 3 years' audited financial statements

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Proposal Submission Process; NPO / Development Team

The development team consists of:

RC

NPO and project staff

Developer

Consultant

Memo of Understanding or contract that shows the shared mission of development of affordable housing restricted for the use of persons with developmental disabilities.

Independence in decision-making powers for both the RC and the NPO.

Clearly demonstrable absence of conflict of interest, be in compliance with Title 17 §§54520 & 54522.

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Proposal Submission Process; Experience of NPO

NPO must have the background experience and capacity to effectively complete the project.

Experience can come from the organization, Executive Director, Key Staff, Board of Directors, or use of a housing consultant

Completion of previous project similar to the CPP proposal.

History of effective property management of similar properties.

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Proposal Submission Process; Capacity of NPO

Understanding of housing financing.

Knowledge of local area housing resources.

Working knowledge of local housing authority and housing development programs.

Ability to network for additional funding sources to complete the funding package for the entire project.

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Conditional Approval

DDS issues a Letter of Conditional Approval to the regional center if the proposal meets the requirements contained in the Housing Guidelines.

This authorizes the regional center to implement the approved proposal

Proceed with the acquisition of property

DDS will assign a project number for tracking purposes

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Project Milestones

Milestone 1: Loan Closing and Property Acquisition

Final implementation plan, including any funding commitment letters

Evidence of site control

Evidence of property purchase, including an executed, recorded deed of trust and regulatory agreement

Evidence of application for property tax exemption to County Tax Assessor

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Project Milestones

Milestone 2: Recordation of Notice of Completion or Issuance of Certificate of Occupancy

Final Sources and Uses of Funds (budget)

Certificate of Occupancy (Notice of Completion, if rehabilitation)

Evidence of licensing application, if applicable

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Project Milestones

Milestone 3: Conversion of Construction Financing to Permanent Financing with an Approved Construction Cost Audit

Executed, long-term lease agreement (NPO and service provider)

Executed, property management agreement

Property tax exemption (if not provided sooner)

Reconciled Sources and Uses of Funds (budget)

Approved construction cost audit

Final licensing approval, if applicable

Evidence of property insurance

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Examples of CPP Projects

Single-Family Home: FNRC Bechelli Lane

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CPP project of FNRC

Construction: 2,400 sq ft 4 bedroom, two bath home

Need: Accessible and open floor plan for medically fragile individuals

Leveraged Funding: City of Redding, Redevelopment Agency, Guild Mortgage

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Single-Family Home: FNRC Russell Street

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CPP project of FNRC Purchased: Main house is 950 sq ft 2

bedroom, 1 bath. Cottage is 600 sq ft 1 bedroom, 1 bath.

Need: Quiet and cozy environment for individuals with autism and sensory issues. Home is modified to prevent property damage.

Leveraged Funding: AccessHome

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Single-Family Home: FNRC Cedars Road

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CPP project of FNRC

Purchased: 1,675 sq ft 3 bedroom, 1 bath with barn on 1.2 acres

Need: Open floor plan for supervision of individuals with severe behaviors. Large yard provides buffer for neighbors.

Leveraged Funding: AccessHome

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Examples of CPP projects

Multi-Family Home: CVRC Encina Supportive Services Tri-Plex

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Encina Supportive Services Tri-Plex

CPP project of CVRC

Purchased: two 2 bedroom units and one 1 bedroom unit

Need: Non-ambulatory accessible outside and interior spaces designed for wheelchair accessibility

Leveraged Funding: Foundation Trust, City of Visalia and Tulare County Housing Authority

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For more information

To request technical assistance for CPP Housing questions, contact:

Yvonne McCuistion Tucker ChiefDDS Services and Supports Section

916-654-1571

A copy of this presentation, the Housing Guidelines, and samples of the forms used

can be found On the web, at:

http://www.dds.ca.gov/AH/CPP.cfm

Documents

Overview CPP Housing Component Cameo Lane FNRC. 2 DDS Housing Initiative The development of affordable, accessible homes is critical to DDS’ goal to expand