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FUNDING APPLICATION
City of Huntsville
Community Development Department
P. O. Box 308
Huntsville, Alabama 35804
256-427-5400
Physical Address:
Community Development Department
Yarbrough Building 2nd Floor
120 Holmes Avenue
Huntsville, AL 35801
October 18, 2023
The City of Huntsville is requesting proposals for projects qualifying under the EMERGENCY
RENTAL ASSISTANCE PROGRAM (ERA2) established by section 3201 of the American
Rescue Plan Act of 2021.
INTRODUCTION
This packet is designed to aid your organization in applying for Emergency Rental Assistance
Program (ERA2) funds from the City of Huntsville (City). Organizations with questions about the
eligibility of a project are strongly encouraged to contact the City’s Community Development staff
for technical assistance and guidance.
BACKGROUND
The City of Huntsville is a recipient of Emergency Rental Assistance Program (ERA2) funds
established by section 3201 of the American Rescue Plan Act of 2021 from the U.S. Department
of Treasury. The funding is designed to assist eligible households with financial assistance, provide
housing stability services, and as applicable, to cover the cost for other affordable rental housing
and eviction prevention activities.
AVAILABLE FUNDING
The City of Huntsville is making up to $4,000,000 in ERA2 funds available for other affordable
rental housing activities, specifically for the rehabilitation or preservation of affordable rental
housing serving very low-income families in the City of Huntsville.
GENERAL REQUIREMENTS
ERA2 provides that affordable rental housing projects must serve very low-income families at
50% and below area median income (AMI), as defined in section 3(b) of the United States Housing
Act of 1937 (42 U.S.C. 1437a(b)). ERA2 provides that the income limitation be imposed through
a covenant, land use restriction agreement, or other enforceable legal requirement for a period of
at least 20 years. ERA2 funds must be disbursed by September 30, 2025. As allowed by ERA2,
the City is requiring projects to conform and meet the program requirements of the Low-Income
Housing Tax Credit program (LIHTC), except that projects must meet the ERA2 requirement to
serve very low-income families. Project may use ERA2funds as part of the financing for a mixed-
income housing project if the total financing made up of ERA2 funds does not exceed the total
development costs attributable to affordable rental housing units serving very low-income
families.
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APPLICATION PACKAGE
This Application Package includes the following:
o Introduction and Instructions
o Application Coversheet and Signature Page
o Funding Application
o Appendix A – Application Checklist
o Appendix B – Certifications
o Appendix C – Income Limits and Rent Limits
APPLICATION INSTRUCTIONS
Submit the application in the order of the Application Checklist with main areas tabbed. Additional
information should be at the end of the application and tabbed under “Supporting Material” with
a coversheet detailing each additional item.
Number all the pages of your application and tab each section, beginning with the application
coversheet.
APPLICATION SUBMISSION
One (1) original document and (3) copies of the proposal, as well as the proposal on a flash
drive, must be received by Community Development at the City of Huntsville NO LATER
THAN 5:00 P.M. on Monday, November 20, 2023.
Proposals received after this deadline WILL NOT be accepted. No exceptions will be granted.
DO NOT staple, hole punch or attach a cover sheet. The copies may be separated by a paperclip
or by inserting a colored sheet of paper between them.
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**IMPORTANT NOTICE**
Before any proposed project proceeds, an environmental clearance must be obtained and a “Notice
to Proceed” must be issued by Community Development. The applicant will assume all financial
risk, and may forfeit grant eligibility, if work on the proposed project begins or continues without
an environmental clearance and a “Notice to Proceed”.
FUNDING LIMITATIONS
Funding is available for the rehabilitation and preservation of rental housing developments serving
very low-income households. The development must be located on a single site and shall be a
ground level or elevator type construction. Developments must be a minimum of one bedroom.
Projects proposing to serve elderly tenants should indicate whether age restrictions will be set at
55 or 62 years of age.
COMMUNITY OUTREACH
Applicants are encouraged to undertake community outreach efforts as part of the project planning.
Such efforts may include meeting with nearby neighborhood associations, residents, non-profit
organizations, and other similar community groups to share development plans, solicit input on
neighborhood concerns, and take such information into account when planning the development.
SELECTION CRITERIA
The preliminary funding commitments resulting from the Request for Proposals shall be
determined by a scoring system including, but not necessarily limited to, the factors shown below.
Regardless of strict numerical ranking, the scoring does not operate to vest in an applicant or
project any right to a reservation or commitment of ERA2 funds. The City will, in all instances,
commit ERA2 funds consistent with sound and reasonable judgment, prudent business practices,
and the exercise of its inherent discretion to ensure that:
Points will be designated for each factor of consideration below with a maximum score of 100
points. Application must receive a score of 80 or more to be considered for funding.
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Section A: Project Narrative - up to 20 points.
Projected rents as well as design and amenity considerations will be looked at closely for
compliance with the requirements set out in ERA2 and LIHTC. Each proposal will be compared
to the City’s affordable housing needs and to each other to determine which proposal is the
strongest, provides the greatest public benefit, and is consistent with neighborhood needs.
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QUALIFICATIONS ON FUNDING
Neither this RFP nor the acceptance of any application shall imply a funding obligation to any
applicant. Funding of proposals will be contingent upon availability of ERA2 funds from the U.S.
Department of Treasury. Should the City’s ERA2 allocation be reduced or eliminated, no claim
may be made against the City’s General Fund or other resources regardless of the status of the
proposal(s) or issuance by the City of a Commitment Letter for ERA2 funding. The City reserves
the sole right to approve or reject any and all applications on such basis as it deems to be in its best
interest. The City of Huntsville is responsible for the administration of the ERA2 funding under
Treasury regulations and requirements and the City has chosen to follow regulations and
requirements of the Low-Income Housing Tax Credit program. It is the intent that this RFP be
issued and proposals underwritten in compliance with said regulations and requirements. Should
the regulations and requirements change at any time, the City reserves the right to alter its ERA2
funding to ensure compliance up to and including terminating any commitment issued if the project
does not meet new Treasury regulations and/or requirements. The City must be notified in writing
and approve any material changes in the submitted application, including change in ownership,
staff and development team or project scope.
The City, its elected officials, employees, and agents, shall not be held responsible or liable for
any losses incurred from claims, suits, damages, and costs and expenses of any kind or of any
nature that any applicant may suffer, incur or pay arising out of decisions by the City concerning
any proposal, application, loan decision(s), or action(s) associated with the administration of the
ERA2 funding.
Good Standing
No application will be processed for any applicant or related entity which is not in good standing
with the City of Huntsville, the Alabama Housing Finance Authority, or any other state housing
finance authority, the Alabama Department of Economic and Community Affairs (ADECA), the
U.S. Department of Housing and Urban Development, the U.S. Department of Treasury or the
U.S. Department of Agriculture Office of Rural Development (formerly the Farmers Home
Administration). An applicant can be denied consideration for funding if the applicant or its related
parties have a history of default or non-performance under any agreement, payment delinquencies,
bankruptcy, foreclosure or activities determined to be unsound or unlawful.
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Conflict of Interest
As outlined in the Conflict of Interest Certification in Appendix B, the applicant must certify that
no person who presently exercises any functions or responsibilities in connection with the City of
Huntsville has any personal financial interest, direct or indirect, which would conflict in any
manner or degree with the performance of its services. In addition, in the performance of this
proposed project, no person having any conflict of interest shall be employed. Any interest on the
part of the applicant, its employees and its related entity must be disclosed to the City provided,
however, that this paragraph shall be interpreted in such a manner so as not to unreasonably impede
the statutory requirements that maximum opportunity be provided for employment of and
participation by low-income residents of the area.
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City of Huntsville, Alabama
Community Development Department
Emergency Rental Assistance Program (ERA2)
*APPLICATION COVERSHEET*
1. Name of Primary Applicant Entity:
2. Director/President/CEO:
5. Street Address:
6. City/State/Zip Code:
7. Telephone Number:
8. Fax Number:
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14. Project Name:
17. Is the location of the proposed project currently occupied by residents? ___ Yes ___ No
18. Will there be a need for residents to temporarily or permanently relocate for any
reason? ____ Yes ___ No ___ N/A
(Check One)
24. ___ New Project
___ Continuation Project (Project currently funded by other Community Development funds.)
25. Has the applicant entity been previously funded by the City? Yes □ No □
26. If your answer is “Yes”, indicate the year(s) and amount in the table below:
Year(s)
Amount $ $ $ $ $ $
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27. Do you currently have a project funded by the City of Huntsville in open status?
____ Yes ___ No
If your answer is “YES”, describe the project and give an estimated time for completion.
28. From the following list, choose the category(ies) that best describes the proposed project
(check all that apply):
□ Rehabilitation
□ Family Project
□ Elderly/Senior Project
□ Physical Disability
□ Other ___________________________________________
Has your organization been designated as a CHDO by any other unit of government?
___Yes ___No If yes, list the entity: ___________________________
31. If applicable for this application, does your project meet one of the housing goals
outlined in the City of Huntsville Consolidated Plan? Yes □ No □ NA □
If your answer is “Yes”, list which Housing Need(s) your proposal addresses:
□
□
□
□
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32. Please complete the following funding matrix table below.
Complete the “Other Sources of Funding Table” below. For each commitment, provide a copy of
the award letter(s). For anticipated amounts, provide a copy of the letter(s) requesting such funds
along with documentation validating the request(s). Each letter should contain appropriate contact
information. Attach award letter(s) and letter(s) requesting funds.
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APPLICATION SIGNATURE PAGE
________________________________________
Name of Organization
________________________________________
Signature of Chief Executive Officer
________________________________________
Printed Name of Chief Executive Officer
________________________________________
Date
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ERA2 RENTAL HOUSING FUNDING APPLICATION
SECTIONS: A, B, C, D, E, & F
Project Narrative section may not exceed three (3) pages. Attach other documents to
application as directed by the application instructions.
II. BENEFIT
Describe the population who will benefit from the proposed project. How many total people will
be assisted? How many low-income persons and/or households will be assisted through the
proposed project? If applicable, describe how this project serves a special needs population (e.g.,
senior citizens, mentally ill persons, etc.).
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SECTION B: CAPACITY AND PERFORMANCE: 20 POINTS
General Contractor:
Management Company:
Architect:
Consultant:
Attorney:
Accountant:
Environmental Consultant:
Market Analyst:
Other:
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II. Project Experience:
List projects that demonstrate the experience of the Staff and Development Team on projects of
similar nature and scope.
1. Development Team Member:_________________________________________
Project Name:_____________________________________________________
Address:_________________________________________________________
City, State: _______________________________________________________
Description:_______________________________________________________
Start Date:________________________________________________________
Completion Date:__________________________________________________
Project $ Amount:__________________________________________________
Reference Name & Phone Number:_____________________________________
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III. WORK PLAN & PERFORMANCE SCHEDULE
Please provide the Development Timeline or use this form. Include all project milestones and their anticipated work period (month(s)
and year(s)). There will be an opportunity to update the project timeline after grant notification and before executing a grant agreement.
Any proposed changes, including extension and early completion, must be requested in writing and approved in advance by the City of
Huntsville’s Department of Community Development.
NOTE: Applicant and/or grantee will assume all financial risk if work on the proposed project begins before environmental
clearance is obtained and a “Notice to Proceed” is issued by the City.
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Task/Activity
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SECTION C: Budgeting and Financial Projections (20 points)
I. PROJECT BUDGET
Provide a DETAILED budget for all costs associated with the proposed project including a DETAILED
budget narrative explaining how you arrived at each line item. Use the Detailed Budget Line-Item
Worksheet provided or submit the Development Budget.
Detailed Budget Line-Item Worksheet
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II. PRO FROMA OPERATING STATEMENT
Provide a Pro Forma Operating Statement for the length of the Affordability Period of the proposed
project including debt servicing and partner distributions as well as detailed budget narrative
explaining how you arrived at each line item.
2.
3.
4.
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SECTION D: PROJECT READINESS AND COMPLIANCE (30 points)
I. OWNERSHIP INFORMATION
II. APPRAISAL
Address: _______________________________________________________________
5. Is the prospective seller related to the applicant entity? Yes □ No □ If yes, describe the
relationship:
6. Is the prospective seller a member of Huntsville City Council or some other governmental entity
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III. PLANS AND SPECIFICATIONS
1. Describe Unit Amenities (e.g., range/stove, refrigerator, heating unit, air conditioning, etc.):
3. List the applicable licenses and insurance coverage for the project.
Attach copies of applicable licenses and insurance certificates.
2. If not properly zoned, what are zoning issues and when will they be resolved?
3. Indicate the availability and responsible party for the utilities and services in the following
chart:
Attach documentation of utility availability.
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Utilities and Services
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and Rent Limits (including utility allowance) for Huntsville, Madison, County, Alabama MSA.
The limits are updated annually.
1. Rents
Tenant Rents
1BR 2BR 3BR 4BR
Base Rent Amount:
Less Utility Allowance:
Rents Charged to Tenant:
Attach utility allowance calculations.
2. Units by Income
Total Number of Low-Income Units 60% of median income
Total Number of Very Low-Income Units 50% of median income
Total Number of Extremely Low-Income Units 30% of median income
Total Number of Market Rate Units
TOTAL NUMBER OF UNITS
4. Will an employee live onsite? _____ Yes _____No If yes, how many? _______
5. How many units will be accessible to persons with disabilities in compliance with the
Americans with Disabilities Act and Section 504 of the Rehabilitation Act of 1973? __________
1. Describe your community outreach plan and/or efforts for qualified renters.
If available, attach the Community Outreach Plan.
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Appendix A
ERA2 RENTAL HOUSING FUNDING APPLICATION CHECKLIST
Place this sheet on top of application package.
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______ Funding Application Section E: Community Outreach
Community Outreach Plan
Waiting List of Pre-Approved Applicants
______ Funding Application Section F: Organizational Documents
Articles of Incorporation
Organization’s Bylaws
Current Financial Statement
Current Operating Budget
Current List of Board of Directors with Contact Information
Organizational Chart including related entities
______ Certifications
Equal Opportunity and Fair Housing
Disbarment and Suspension
Conflict of Interest
Displacement and Relocation
Prohibition of the Use of Treasury Funds for Lobbying
Other Attachments
______ __________________________________________________
______ __________________________________________________
______ ___________________________________________________
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Appendix B
Certifications
CERTIFICATION
EQUAL OPPORTUNITY AND FAIR HOUSING
ERA2
The undersigned applicant certifies to the City of Huntsville (City) that it will continue to
further Equal Opportunity and Fair Housing by:
_______________________________________ _______________________
_______________________________________ _______________________
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CERTIFICATION
DISBARMENT AND SUSPENSION
ERA2
1. The applicant entity certifies to the best of its knowledge and belief that it and its principals and
related entities:
(a) Are not presently debarred, suspended, proposed for debarment or suspension,
declared ineligible, or voluntarily excluded from any transactions or projects
involving the use of Federal funds;
(b) Have not within a three-year period preceding this certification been convicted
of or had a civil judgment rendered against them for commission of fraud or a
criminal offense in connection with obtaining, attempting to obtain, or performing
a public (Federal, State or local) transaction or contract, violation of Federal or
State antitrust statutes or commission of embezzlement, theft, forgery, bribery,
falsification or destruction of records, making false statements, or receiving stolen
property;
(c) Are not presently indicted for or otherwise criminally or civilly charged by a
governmental entity (Federal, State or local) with commission of any of the offenses
enumerated in paragraph (1) (b) of this certification; and
(d) Have not within a three-year period preceding this certification had one or more
public transactions or projects (Federal, State or local) terminated for cause of
default.
2. Where the undersigned is unable to certify to any of the statements in this certification, the
undersigned shall attach an explanation to this certification.
_______________________________________ _______________________
_______________________________________ _______________________
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CERTIFICATION
CONFLICT OF INTEREST
ERA2
The applicant entity certifies to the City of Huntsville that it and its principals and related entities
are in compliance with the Conflict of Interest provision consistent with 2 C.F.R. § 200.318(c).
The applicant entity and related entity certifies that it must disclose in writing to the City of
Huntsville any potential conflict of interest affecting the awarded funds in accordance with 2
C.F.R. § 200.112.
_______________________________________ _______________________
_______________________________________ _______________________
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CERTIFICATION
DISPLACEMENT AND RELOCATION
ERA2
The undersigned hereby certifies to the City of Huntsville that all reasonable steps will be taken to
minimize the displacement of persons (families, individuals, businesses, nonprofit organizations,
and farms) and that all reasonable steps will be taken to minimize the temporary relocation of
tenants. If temporary relocation of tenants is necessary, tenants will be given reasonable advance
written notice and reimbursed for all reasonable out-of-pocket expenses incurred in connection
with the temporary relocation.
_______________________________________ _______________________
_______________________________________ _______________________
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CERTIFICATION
PROHIBITION ON THE USE OF
TREASURY FUNDS FOR LOBBYING
The undersigned certifies to the City of Huntsville, for itself and its principals and related entities
that:
(1) No federal appropriated funds have been paid or will be paid by or on behalf of
the applicant entity, to any person for influencing or attempting to influence an
officer or employee of any agency, a Member of Congress, an officer or employee
of Congress, or an employee of a Member of Congress in connection with the
awarding of any Federal funds, the entering into of any cooperative agreement, and
the extension, continuation, renewal, amendment, or modification of any Federal
contract, grant, loan or cooperative agreement;
(2) If any funds other than Federal appropriated funds have been paid or will be
paid to any person for influencing or attempting to influence an officer or employee
of any agency, a Member of Congress, an officer or employee of a Member of
Congress in connection with this Federal contract, grant, loan, or cooperative
agreement, the Owner will complete and submit Standard Form-LLL, "Disclosure
Form to Report Lobbying," in accordance with its instructions; and
(3) The Owner shall require that this certification be included in the award
documents for all sub-awards at all tiers (including sub-contracts, sub-grants, and
contracts under grants, loans, and cooperative agreements) and that all sub-
recipients shall certify and disclose accordingly.
_______________________________________ _______________________
_______________________________________ _______________________
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APPENDIX C
RENTAL INCOME LIMITS AND RENT LIMITS
2023 Rental Income Limits for Huntsville, Madison County, Alabama MSA
(Updated annually by HUD.)
Number of People 1 2 3 4 5 6 7 8
50% Median
Income $34,350 $39,250 $44,150 $49,050 $53,000 $56,900 $60,850 $64,750
60% Median
Income $41,220 $47,100 $52,980 $58,860 $63,600 $68,280 $73,020 $77,700
The City of Huntsville calculates Annual Income as defined in 24 CFR Part 5 (Section 8
Definition).
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