FAQs • Affordable Multifamily Housing Loan Funding

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Affordable Multifamily Housing Loan Funding

1. How should the scoring criteria be applied to a hybrid LIHTC deal? Do the requirements apply to the 9% and 4% portion separately or for the entirety of the development?: The criteria apply to the entire project. If an application only needed loan funds for one side (e.g. just the 9% side), then only those units would be scored. If an applicant plans to apply the loan funds to the entire project, then the criteria apply to the entire project.

2. When should developers apply for project-based-vouchers (PBVs) if they are planning to include PBVs in their LIHTC 9% application?: Because Loudoun County issues the Requests for Proposals (RFP) for PBVs in the fall, developers should apply in the fall prior to their 9% application submission, following the timeline laid out in the RFP.

3. Is there a specific definition of “entry-level worker unit”?: The County is always looking for affordability and diversity of housing, including units for single person households and for family households in the County. The scoring criteria awards points for entry-level worker units of 1 bedroom or studios.

4. Does a loan program application require the site to be appropriately zoned at the time of application?: Yes. The application guidelines require that zoning approval, including special exception, that demonstrates that the proposed development is a matter of right is included as part of the application.

5. Does the Loudoun County loan program require Davis Bacon wages?: Loudoun County does not require Davis Bacon wages on its own; if they apply to projects, it is because of other funding sources being used in the project.

For the scoring criteria, if an element of the criteria is not fully met, partial points will be given.

7. In Section 1 of the Scoring Criteria, must each of the percentages of units be unique? For instance, can the 20% for seniors also be the 20% for disabled units, or must they be separate units?: Each criterion is treated separately. If a project has 100 units and 20 units are for seniors and 20 units are accessible for people with disabilities, the application would receive full points for each criterion, even if the units overlap.

8. What does the term “Project Manager” refer to in the Application Requirements list?: This term refers to the entity overseeing the development of the project to completion/occupancy.

9. Are there any restrictions or scoring considerations related to a property developed on a long-term ground lease rather than fee simple ownership of the site?: Ground lease as a form of ownership is an issue that the Board would need to consider in its review of a project’s application.

10. Are hard copy applications required?: Yes, applicants must submit one original and one hard copy along with the application payment. One electronic copy, either submitted online at: https://lfportal.loudoun.gov/Forms/Application or via email to housing@loudoun.gov is also required.

11. Is there a requirement that proposed projects must be located within a specified distance of an existing bus stop or commercial center?: The scoring criteria provides points for proposed projects located within walking distance (approximately .25 mile) to either public transportation or existing employment opportunities, public schools, and other amenities that could include, but not be limited to library, hospital, food store, park, community center.

12. Must Universal Design standards apply to all units and common spaces within the project to earn the full 5 points?: For all scoring criteria, full points will be given if the criteria are fully met.

13. Can you expand on the affordability period and are points given on a sliding scale?: Points are given on a sliding scale. Highest points are awarded for 60+ years commitment to maintaining affordability of units consistent with targeted households as proposed.

14. For sources of funds, does a Letter of Intent (LOI) proving tax credit pricing and debt serve as enough proof?: As a proof of available sources of funds, Loudoun County accepts a Letter of Intent (LOI) that states the tax credit pricing and loan/grant amount and the proposed rate of interest. Notwithstanding, points are given on a sliding scale and a firm financial commitment from other sources of financing will fully meet the criteria.

15. Can you give examples of the public participation requirement and how civic organizations should be included?: Community support and engagement contributes to the success of the project and sustainable outcomes. This engagement can be in many forms to include community meetings, materials and presentations, and forums for input and questions. Access to specific civic organizations that work in the area and provide social services, if any, or are able to partner with the non-profit organization/developer for the provision of social services to the tenants may be mentioned in the application.

16. For site control documentation, is a Memorandum of Understanding (MOU) enough?: No, a Memorandum of Understanding (MOU) is not legally binding. A legally binding purchase agreement would be considered.