[HISTORY: Adopted by the Mayor and Council of the City of
Española 11-13-2018 by Ord.
No. 2018-04. Amendments noted where applicable.]
A.
This chapter is adopted to implement the City's Affordable Housing
Program. In accordance with N.M. Const. Art. IX, § 14, the
Affordable Housing Act, NMSA 1978, § 6-27-1 et seq. (the
"Act"), Rules, the purpose of the Affordable Housing Ordinance is
to:
(1)
Establish procedures to ensure that both state and local housing
assistance grantees are qualifying grantees who meet the requirements
of the Act and the rules promulgated pursuant to the Act both at the
time of the award and throughout the term of any grant or loan under
the program;
(2)
Establish an application and award timetable for state housing assistance
grants or loans to permit the selection of the qualifying grantee(s)
by the City;
(3)
Create an evaluation process to determine:
(a)
The financial and management stability of the applicant;
(b)
The demonstrated commitment of the applicant to the community;
(c)
A cost-benefit analysis of the project proposed by the applicant;
(d)
The benefits to the community of a proposed project;
(e)
The type or amount of assistance to be provided;
(f)
The scope of the affordable housing project;
(g)
Any substantive or matching contribution by the applicant to
the proposed project;
(h)
A performance schedule for the qualifying grantee with performance
criteria; and
(i)
Any other rules or procedures which the City believes are necessary
for a full review and evaluation of the applicant and the application
or by which the MFA believes is necessary for a full review of the
City's evaluation of the applicant;
(4)
Require long-term affordability of the City's affordable housing
projects so that a project cannot be sold shortly after completion
and taken out of the affordable housing market to ensure a quick project
for the qualifying grantee;
(5)
Require that a grant loan for a project must impose a contractual
obligation on the qualifying grantee that the affordable housing units
in any project be occupied by persons of low or moderate income;
(6)
Provide for adequate security against the loss of public funds or
property in the event that the qualifying grantee abandons or otherwise
fails to complete the project;
(7)
Require review and approval of a housing grant project budget by
the City and the Mortgage Finance Authority (MFA) before any expenditure
of grant funds or transfer of granted property;
(8)
Require that a condition of grant or loan approval be proof of compliance
with all applicable state and local laws, rules, and ordinances;
(9)
Provide definitions for "low income" and "moderate income," and set
out requirements for verification of income levels; and
(10)
Require that the City enter into a contract with the qualifying
grantee consistent with the Act, which contract shall include remedies
and default provisions in the event of the unsatisfactory performance
by the qualifying grantee and which contract shall be subject to the
review of the MFA in its discretion.
B.
The purpose of this chapter and the proposed contributions it authorizes
is for the purpose of compliance with the City approved Affordable
Housing Plan.
This chapter shall be cited as the Affordable Housing Ordinance.
The following words and terms shall have the following meanings.
The Affordable Housing Act, NMSA 1978, § 6-27-1
et seq.
If the fair market value of any housing assistance grant or
the total amount of affordable housing funds that have been awarded,
loaned, donated or otherwise conveyed to the qualifying grantee is
from $1 to $14,999.99, then the affordability period shall be not
less than five years;
If the fair market value of any housing assistance grant or
the total amount of affordable housing funds is from $15,000 up to
and including $40,000, then the affordability period shall be not
less than 10 years;
If the fair market value of any housing assistance grant or
the total amount of affordable housing funds is from $40,000 up to
and including $100,000, then the affordability period shall be not
less than 15 years; and
If the fair market value of any housing assistance grant or
the total amount of affordable housing funds is greater than $100,000,
then the affordability period shall be not less than 20 years.
Consistent with maximum rent and/or income limitations set
forth in guidelines established by the MFA.
Residential housing primarily for persons or households of
low or moderate income.
Any or all funds awarded or to be awarded, loaned or otherwise
distributed under the Act[1] for payment of the costs of infrastructure for affordable
housing under an affordable housing plan.
A plan which is a product of detailed research and analysis
of the community and housing profile. It includes a review of land
use and policy regarding land use and must result in a housing needs
assessment for low- and moderate-income households in the City and
surrounding planning area.
Any programs the City of Española (City) and/or the
MFA establish pursuant to the Act.[2] An affordable housing program must be based on the findings
of the approved affordable housing plan.
Any work or undertaking, whether new construction, acquisition
of existing residential housing, remodeling, improvement, rehabilitation,
or conversion, which may be undertaken in one or more phases, as part
of an affordable housing program, as approved by the City and/or the
MFA for primary purposes as allowed by the Act.[3]
Subject to further qualifications in § 220-6, an individual, a governmental housing agency, regional housing authority, a for-profit organization, including a corporation, limited-liability company, partnership, joint venture, syndicate, or association, or a nonprofit organization meeting the appropriate criteria of the City and/or the MFA.
An application submitted by an applicant to the City and/or
the MFA to construct, own, operate and maintain one or more affordable
housing projects under the Act pursuant to an approved affordable
housing plan.
An individual or entity licensed as a general contractor
to construct residential housing in the state that satisfies the requirements
of a qualifying grantee and has been approved by the City and/or the
MFA to participate in an affordable housing program. The term "builder"
shall also include an individual or entity that satisfies the requirements
of a qualifying grantee and has been approved by the City and/or the
MFA to participate in an affordable housing program, who is not licensed
as a general contractor in the state, provided such individual or
entity contracts with a general contractor licensed in the state to
construct residential housing.
A structure capable of being renovated or converted into
affordable housing or a structure that is to be demolished and is
located on land donated for use in connection with an affordable housing
project.
The City of Española, New Mexico, a New Mexico municipal
corporation. As authorized and limited by the Affordable Housing Ordinance,
the City may act through the decisions and actions taken by the City
Manager and the Director of Planning.
Residential housing designated for occupancy by more than
four persons of low or moderate income living independently of each
other. The facility may contain group dining, recreational, and health
care or other communal living facilities, and each unit in a congregate
housing facility shall contain its own living, sleeping, and bathing
facilities.
The United States of America and any agency or instrumentality,
corporate or otherwise, of the United States of America.
One or more persons occupying a housing unit.
The donation, payment or provision by the City of all, or
a portion of:
The United States Department of Housing and Urban Development.
Infrastructure improvements and infrastructure purposes.
Includes, but is not limited to:
Sanitary sewage system, including collection, transport, diversion,
storage, detention, retention, dispersal, effluent use and discharge;
Drainage and flood control systems, including collection, transport,
diversion, storage, detention, retention, dispersal, use and discharge;
Water systems for domestic purposes, including production, collection,
storage, treatment, transport, delivery, connection and dispersal;
Areas for motor vehicle use for road access, ingress, egress
and parking;
Trails and areas for pedestrian, equestrian, bicycle or other
non-motor vehicle use for access, ingress, egress and parking;
Parks, recreational facilities and open space areas for the
use of residents for entertainment, assembly and recreation;
Landscaping, including earthworks, structures, plants, trees
and related water delivery systems;
Electrical transmission and distribution facilities;
Natural gas distribution facilities;
Lighting systems;
Cable or other telecommunications lines and related equipment;
Traffic control systems and devices, including signals, controls,
markings and signs;
Inspection, construction management and related costs in connection
with the furnishing of the items listed in this subsection; and
Heating, air-conditioning and weatherization facilities, systems
or services, and energy efficiency improvements that are affixed to
real property.
Planning, designing, engineering, construction, acquisition
or installation of infrastructure, including the costs of applications,
impact fees and other fees, permits and approvals related to the construction,
acquisition, or installation of the infrastructure, provided the City
may determine it appropriate to reduce or waive building permit fees,
sewer and water hookup fees and other fees with respect to an affordable
housing project for which affordable housing funds and/or housing
assistance grants are awarded, loaned, donated or otherwise distributed
under the Act;[4]
Acquiring, converting, renovating or improving existing facilities
for infrastructure, including facilities owned, leased or installed
by the owner;
Acquiring interests in real property or water rights for infrastructure,
including interests of the owner; and
Incurring expenses incident to and reasonably necessary to carry
out the purpose specified in this subsection.
The New Mexico Mortgage Finance Authority.
The Mortgage Finance Authority Act, enacted as Chapter 303
of the Laws of 1975 of the State of New Mexico, as amended (being
NMSA 1978, §§ 58-18-1 through 58-18-27, inclusive,
as amended).
A mortgage, deed, deed of trust or other instrument creating
a lien, subject only to title exceptions as may be acceptable to the
City and/or the MFA, on a fee interest in real property located within
the state or on a leasehold interest that has a remaining term at
the time of computation that exceeds or is renewable at the option
of the lessee until after the maturity day of the mortgage loan.
Any bank or trust company, mortgage company, mortgage banker,
national banking association, savings bank, savings and loan association,
credit union, building and loan association and any other lending
institution, provided that the mortgage lender maintains an office
in the state, is authorized to make mortgage loans in the state and
is approved by the City and/or the MFA and either the Federal Housing
Authority, Veterans' Affairs, Federal National Mortgage Association
(now known as "Fannie Mae"), or Federal Home Loan Mortgage Corporation.
A financial obligation secured by a mortgage, including a
mortgage loan for a project.
A program involving a congregate housing facility, a multiple-family
housing project or a transitional housing facility.
Residential housing that is designed for occupancy by more
than four persons or families living independently of each other or
living in a congregate housing facility, at least 60% of whom are
persons of low or moderate income, including, without limitation,
persons of low or moderate income who are elderly and handicapped
as determined by the City and/or the MFA, provided that the percentage
of low-income persons and families shall be at least the minimum,
if any, required by federal tax law.
Persons and families within the state who are determined
by the MFA to lack sufficient income to pay enough to cause private
enterprise to build an adequate supply of decent, safe and sanitary
residential housing in their locality or in an area reasonably accessible
to their locality and whose incomes are below the income levels established
by the MFA to be in need of the assistance made available by the Act,
taking into consideration, without limitation, such factors as defined
under the Act. For purposes of this definition, the word "families"
shall mean a group of persons consisting of, but not limited to, the
head of a household; his or her spouse, if any; and children, if any,
who are allowable as personal exemptions for federal income tax purposes.
PERSONS OF LOW INCOMEIndividuals or households whose incomes are at or below 80% of area median income, defined by the Income Limits for the City, as approved and published each year by MFA.
PERSONS OF MODERATE INCOMEIndividuals or households whose incomes are at or below 120% of area median income, defined by the Income Limits for the City, as approved and published each year by MFA.
Policies and procedures of the MFA, including, but not limited
to, mortgage loan purchasing, selling, servicing and reservation procedures,
which the MFA may update and revise from time to time as the MFA deems
appropriate.
Includes, but are not limited to, any entities that support
affordable housing and which believe that the program or project proposed
by the application is worthy and advisable, but which are not involved,
either directly or indirectly, in the affordable housing program or
project for which the applicant is applying.
An individual who is qualified to receive assistance pursuant
to the Act[5] and is approved by the City; and
A governmental housing agency, regional housing authority, corporation,
a limited-liability company, partnership, joint venture, syndicate,
association or a nonprofit organization that:
The recertification of applicants and/or qualifying grantees
participating in any affordable housing programs or in any programs
under the Act[6] as determined necessary from time to time by the City
and/or the MFA.
The substantial renovation or reconstruction of an existing
single-family residence or a multifamily housing project, which complies
with requirements established by the MFA. Rehabilitation shall not
include routing or ordinary repairs, improvements or maintenance,
such as interior decorating, remodeling or exterior painting, except
in conjunction with other substantial renovations or reconstruction.
Any building, structure or portion thereof that is primarily
occupied, or designed or intended primarily for occupancy, as a residence
by one or more households and any real property that is offered for
sale or lease for the construction or location thereon of such a building,
structure or portion thereof. Residential housing includes congregate
housing, manufactured homes and housing intended to provide transitional
or temporary housing for homeless persons.
A structure or the portion of a structure to benefit from
the affordable housing funds or housing assistance grant is designed
primarily for use as the principal residence of the occupant or occupants
and shall exclude vacation or recreational homes.
Any request for proposal made by the City.
The New Mexico Mortgage Finance Authority Affordable Housing
Act Rules, adopted pursuant to NMSA 1978, § 6-27-8B.
The State of New Mexico.
Residential housing that is designed for temporary or transitional
occupancy by persons of low or moderate income or special needs.
[1]
Editor's Note: See NMSA 1978, § 6-27-1 et seq.
[2]
Editor's Note: See NMSA 1978, § 6-27-1 et seq.
[3]
Editor's Note: See NMSA 1978, § 6-27-1 et seq.
[4]
Editor's Note: See NMSA 1978, § 6-27-1 et seq.
[5]
Editor's Note: See NMSA 1978, § 6-27-1 et seq.
[6]
Editor's Note: See NMSA 1978, § 6-27-1 et seq.
With the exception of housing assistance grants involving findings
from the state which shall be governed as hereinbelow, the following
requirements shall apply to all housing assistance grants and/or affordable
housing funds awarded, loaned or otherwise distributed by the City
under the Act[1] to a qualifying grantee.
[1]
Editor's Note: See NMSA 1978, § 6-27-1 et seq.
The City, in its discretion, may issue one or more RFPs to solicit
applications from applicants or shall otherwise identify a qualifying
grantee for the use of any affordable housing funds or housing assistance
grants to be awarded, loaned, donated or otherwise distributed under
the Act.
The following applicants are eligible under the Act to apply
for affordable housing funds or a housing assistance grant to provide
housing or related services to persons of low or moderate income in
the community:
A.
All individuals who are qualified to receive assistance pursuant
to the Act, the rules, and this chapter that are approved by the City
to receive an affordable housing contribution with income not exceeding
the defined income ranges established by the MFA. The household eligibility
shall be certified by the City no more than 90 days prior to receiving
assistance. The certification is valid for six months. If six months
elapse before the applicant receives assistance, the household eligibility
shall be recertified, and such certification shall be valid for an
additional 90 days.
B.
All regional housing authorities and any governmental housing agencies.
C.
All for-profit organizations, including any corporation, limited-liability
company, partnership, joint venture, syndicate or association.
D.
All nonprofit organizations meeting the following requirements:
(1)
A primary mission of the nonprofit organization must be to provide
housing or housing-related services to persons of low or moderate
income; and
(2)
The nonprofit organization must have received its 501(c)(3) designation
prior to submitting an application; and
(3)
Have no part of its net earning inuring to the benefit of any member,
founder, contributor, or individual.
E.
All non-individual applicants must:
(1)
Be organized under New Mexico and local laws and provide proof of
such organization and be approved by the City.
(2)
Have a functioning accounting system that is operated in accordance
with generally accepted accounting principles or have designated an
entity that will maintain such an accounting system consistent with
generally accepted accounting principles.
(3)
Have among its purposes significant activities related to providing
housing or services to persons or households of low or moderate income.
(4)
Have no significant outstanding or unresolved monitoring findings
from the City, the MFA or its most recent independent financial audit,
or if it has any such findings, it has a certified letter from the
City, the MFA, or auditor stating that the findings are in the process
of being resolved.
Process for applying. Applicants wishing to apply for a housing
assistance grant, including the use of any affordable housing funds,
or to participate in any affordable housing programs are required
to submit to the City the following (as applicable):
A.
One original application, together with all required schedules, documents,
or such other information which may be required by the City or in
any RFP which may have been issued by the City, must be included in
the complete application;
B.
A proposal describing the nature and a scope of the affordable housing
project proposed by the applicant and for which the applicant is applying
for funds or a grant under the Act,[1] and which describes the type and/or amount of assistance
which the applicant proposes to provide to persons of low or moderate
income;
[1]
Editor's Note: See NMSA 1978, § 6-27-1 et seq.
C.
Executive summary and project narrative(s) that address the evaluation
criteria set forth in any RFP issued by the City for the affordable
housing funds or the housing assistance grant for which the applicant
is applying;
D.
A proposed budget for the affordable housing project for which the
applicant is applying for affordable housing funds or for a housing
assistance grant;
E.
Current independent financial audit;
G.
If an applicant is a legal entity, including a nonprofit organization:
(1)
A current annual budget for the applicant, including all sources
and uses of funds, not just those related to relevant programs and/or
a current annual budget only for the program for which the applicant
is applying for a housing assistance grant, or as otherwise may be
required by the City and/or the MFA in its discretion;
(2)
An approved mission statement that the applicant has among its purposes
significant activities related to providing housing or housing-related
services to persons or households of low or moderate income;
(3)
A list of members of the applicant's current board of directors
or other governing body, including designated homeless participation,
where required by the City;
(4)
Evidence (or a certification as may be allowed by the City) that
the applicant has a functioning accounting system that is operated
in accordance with generally accepted accounting principles, or has
a designated entity that will maintain such an accounting system consistent
with generally accepted accounting principles;
(5)
Evidence that the applicant has no significant outstanding or unresolved
monitoring findings from the City, the MFA, or its most recent independent
financial audit; or if it has any significant outstanding or unresolved
monitoring findings from the City, the MFA, or its most recent independent
financial audit, it has a certified letter from the City, the MFA,
or the auditor stating that the findings are in the in the process
of being resolved;
(6)
An organizational chart, including job titles and qualifications
for the applicant's employees or as otherwise may be required
by the City and/or the MFA in its discretion. Job descriptions may
be submitted as appropriate;
(7)
Documentation that the applicant is duly organized under state or
local law and certification that the applicant is in good standing
with any state authorities, including the Public Regulation Commission
and the Secretary of State.
H.
Information may be required by the City in order for it to determine
the financial and management stability of the applicant;
I.
Information as may be required by the City in order for it to determine
the demonstrated commitment of the applicant to the community;
J.
A completed cost-benefit analysis of the affordable housing project
proposed by the applicant. Any cost-benefit analysis must include
documentation that clearly evidences that there is or will be a direct
benefit from the project proposed by the applicant to the community
and/or to the purported beneficiaries of the project, consistent with
the provision of the Act;[2]
[2]
Editor's Note: See NMSA 1978, § 6-27-1 et seq.
K.
Information supporting the benefits to the community of the affordable
housing project proposed by the applicant;
L.
Proof of substantive or matching funds or contributions and/or in
kind donations to the proposed affordable housing project in connection
with the application for funds under the Act. Nothing contained herein
shall prevent or preclude an applicant from matching or using local,
private, or federal funds in connection with a specific housing assistance
grant or a grant of affordable housing funds under the Act;
M.
Any certifications or other proof which the City may require in order
for the City to confirm that the applicant is in compliance with all
applicable federal, state or local laws, rules and ordinances;
N.
A verification signed by the applicant before a notary public that
the information provided, upon penalty of perjury, is true and correct
to the best of the applicant's information, knowledge, and belief;
O.
Certification as may be required by the City and signed by the chief
executive officer, board President, or other authorized official of
the applicant, provided that the City, at its discretion, may waive
any of the foregoing requirements if not deemed applicable;
Applicants who are submitting applications in connection with
a multifamily housing program must also submit to the City a verified
certificate:
A.
Identifying every multifamily housing program, including every assisted
insured project of HUD, RHS, FHA and any other state or local government
housing finance agency in which such applicant has been or is a principal;
B.
Stating that (except as shown on such certificate):
(1)
No mortgage on a project listed on such certificate has ever been
in default, assigned to the federal government or foreclosed, nor
has any mortgage relief by the mortgagee been given;
(2)
There has not been a suspension or termination of payments under
any HUD assistance contract in which the applicant has had a legal
or beneficial interest;
(3)
Such applicant has not been suspended, debarred or otherwise restricted
by any department or agency of the federal government or any state
government from doing business with such department or agency because
of misconduct or alleged misconduct; and
(4)
The applicant has not defaulted on an obligation covered by a surety
or performance bond.
C.
Explaining the experience of the applicant in developing, financing
and managing multiple-family housing projects; and
D.
Disclosing whether the applicant has been found by the United States
Equal Employment Opportunity Commission or the New Mexico Human Rights
Commission to be noncompliant with any applicable civil rights laws.
If the applicant is a mortgage lender, the City shall consider,
among other things:
A.
The financial condition of the applicant;
B.
The terms and condition of any loans to be made;
C.
The aggregate principal balances of any loans to be made to each
applicant compared with the aggregate principal balances of the loans
to be made to all other applicants;
D.
The City assessment of the ability of the applicant or its designated
servicer to act as originator and servicer of mortgage loans for any
multifamily housing programs or other programs to be financed; and
E.
Previous participation by the applicant in the MFA's programs
and HUD, Federal Housing Authority, or Rural Housing Service programs.
A.
Time, place and method of submission delivery.
(1)
If the City has issued a RFP, all applications must be received by
the City no later than the deadline set forth in the RFP; otherwise,
all applications must be received by the City by the deadline the
City has established in connection with the respective award or grant.
Any qualifying grantees must, no later than October 15 of any year,
meet these deadlines in order to allow sufficient time to allow the
MFA not less than 45 days in which to review any such applications
or otherwise determine or confirm that an applicant is a qualifying
grantee under the Act and consistent with the Rules.
(2)
Applications shall be submitted by applicants to the City in the
form required by the City and shall contain all information which
is required by this chapter and any RFP which may have been issued.
B.
Additional factors. The application procedures shall take into consideration:
(1)
Timely completion and submission to the City of an application or
other appropriate response to any solicitation by the City;
(2)
Timely submission of all other information and documentation related
to the program required by the City as set forth in this chapter or
as set forth in the MFA policies;
(3)
Timely payment of any fees required to be paid to the City at the
time of submission of the application; and
A.
City forms or MFA forms (if available) must be used when provided
and no substitutions will be accepted; however, attachments may be
provided as necessary.
B.
An applicant's failure to provide or complete any element of
an application, including all requirements of the City or as may be
listed on any RFP, may result in the rejection of the application
prior to review.
C.
Illegible information provided in the application and/or incomplete
forms will be treated as missing information and evaluated accordingly.
D.
The City and the MFA reserve the right to request further information
from any applicant so long as the request is done fairly and does
not provide any applicant an undue advantage over another applicant.
E.
The City, in its discretion, may cancel any RFP or reject any or
all proposals, in whole or part, submitted by any applicant.
F.
Neither the City or the MFA shall be responsible for any expenses
incurred by the applicant in preparing and submitting an application.
However, the City or the MFA, as applicable, may establish and collect
fees from applicants who file applications. Notice that fees will
be charged and the amount of any such fees shall be provided by the
City or the MFA, as applicable in any RFP or otherwise shall be advertised
as part of the application solicitation process.
On receipt of an application, the City shall:
A.
Determine whether the application submitted by the applicant is complete
and responsive;
C.
Review and analyze whether the applicant has shown a demonstrated
need for activities to promote and provide affordable housing and
related services to persons of low or moderate income;
D.
Determine whether the applicant has demonstrated experience related
to providing housing or services to persons of low or moderate income,
as well as experience and/or the capacity to administer the affordable
housing program or project for which the applicant has applied;
E.
Determine whether the applicant's proposal provides a plan for
coordinating with other service providers in the community; whether
the applicant's plan addresses how persons of low income or moderate
income, in need of housing and/or housing-related supportive services,
can receive supportive services and referrals to federal, state and
local resources; and whether the applicant's plan addresses outreach
efforts to reach the population to be served as identified by the
City in any RFP or otherwise;
F.
Determine whether the applicant has support from public service agencies,
or such other support as may be required by the City and/or the MFA,
in its discretion, for its proposed services in the community;
G.
Ascertain the amount of any matching funds or in-kind services specific
to the program that may be utilized by the applicant in connection
with the program;
H.
Ascertain whether any local, private, or federal funds will be used
by the applicant in connection with the specific grant for which the
applicant is applying;
I.
Ascertain whether the applicant has and can demonstrate the capability
to manage the implementation of the program for which the applicant
is applying;
J.
If the applicant is a prior recipient of either a housing assistance
grant, affordable housing funds and/or other program funds, confirm
that the applicant has no outstanding findings or matters of noncompliance
with program requirements from the City or the MFA, as applicable,
or if it has any such findings, it has a certified letter from the
City, the MFA, or auditor stating that the findings are in the process
of being resolved;
K.
If the applicant is a prior recipient of either a housing assistance
grant, affordable housing funds and/or other program funds, confirm
that the applicant reasonably committed and expended the funds under
the prior program and/or met anticipated production levels as set
forth in any contract with the City or the MFA as applicable, for
those prior program funds;
L.
Evaluate the applicant's proposal in part based upon the applicant's
current financial audit;
M.
Evaluate the applicant's proposed budget for the project for
which the applicant is applying for affordable housing funds or a
housing assistance grant, which proposed budget must be approved by
the City before the applicant can be approved as a qualifying grantee
and any expenditure of grant funds under the Act[2] or granted property is transferred to the applicant;
[2]
Editor's Note: See NMSA 1978, § 6-27-1 et seq.
N.
On receipt of an application from a builder, the City will analyze
the builder's ability to construct and sell sufficient residential
housing units to persons of low or moderate income within the time
or times as may be required by the City;
O.
Consider other factors it deems appropriate to ensure a reasonable
geographic allocation for all affordable housing programs;
P.
Determine which contract(s) must include remedies and default provisions
in the event of the unsatisfactory performance by the qualifying grantee.
The City shall certify an application to the MFA, in writing,
upon:
The MFA, upon its receipt of the certification from the City,
may, in its discretion, review the application and any of the materials
submitted by the applicant to the City. The MFA may also request any
additional information from the applicant, which it may require in
order to determine whether the applicant is a qualifying grantee under
the Act and the application is complete. The MFA will then notify
the City of its determination of whether or not the application is
complete and that the requirements of the Act and the Rules have been
satisfied and the applicant is a qualifying grantee. Unless the period
is extended for good cause shown, the MFA shall act on an application
within 45 days of its receipt of any application, which the MFA deems
to be complete, and, if not acted upon, the application shall be deemed
to be approved by MFA. The qualifying grantee must be contractually
obligated to abide by a reasonable performance schedule and performance
criteria.
Upon completion of the City's review of the application
and an evaluation of the criteria for approval of the application
as set forth in this chapter and in any RFP issued by the City and
upon the City's determination that the applicant is a qualifying
grantee, and upon the City's receipt of notification from the
MFA that it agrees that the application is complete and that the Act[1] and Rules have been satisfied and the applicant is a qualifying
grantee, the City by written notice shall notify each applicant which
has submitted an application of the approval or disapproval of its
application. Upon approval of its application, the applicant shall
be considered approved to participate in the Affordable Housing Program.
The City and the MFA's determination of any application shall
be conclusive.
[1]
Editor's Note: See NMSA 1978, § 6-27-1 et seq.
Upon acceptance, the following additional requirements shall
apply to any applicant, who is a qualifying grantee:
A.
Contractual requirements. The recipient of any affordable housing
contribution must enter into one (or more) contracts with the City,
which contract(s) shall be consistent as required by the Affordable
Housing Rule (5.6) and subject to the review of the MFA, in its discretion,
and which contract(s) shall include remedies and default provisions
in the event of the unsatisfactory performance by the qualifying grantee.
B.
Security provisions; collateral requirements. In accordance with
the Act, the Rules and this chapter, the City shall require the qualifying
grantee to execute documents, which will provide adequate security
against the loss of public funds or property in the event the qualifying
grantee abandons or fails to complete the affordable housing project,
and which shall further provide, as may be permitted by law, for the
recovery of any attorneys' fees and costs which the City and/or
the MFA may incur in enforcing the provisions of this chapter, the
Rules, the Act and/or any agreement entered into by City and the qualifying
grantee, and which documents may include, but are not limited to the
following: note, mortgage, loan agreement, land use restriction agreement,
restrictive covenant agreements and/or any other agreement which the
City may require in order to allow for any funds which the qualifying
grantee may receive under a housing assistance grant or affordable
housing funds to be adequately secured and allow the City and the
MFA to ensure that such funds shall be utilized by the qualifying
grantee in accordance with the Act, the Rules, and this chapter.
C.
Performance schedule and criteria. The qualifying grantee shall be
required to abide by a reasonable performance schedule and performance
criteria that the City, in its discretion, may establish.
D.
Examination of book and records. The qualifying grantee shall submit,
and the City shall cause to be made such examinations of, the books
and records of each qualifying grantee's compliance with the
terms of the Act,[1] the Rules, this chapter and any contracts between the
qualifying grantee and the City. The City and/or the MFA may require
each qualifying grantee to pay the costs of any such examination.
[1]
Editor's Note: See NMSA 1978, § 6-27-1 et seq.
E.
Infrastructure cost reimbursement contracts.
(1)
Cost reimbursement. Payments to a qualifying grantee under cost reimbursable
contract provisions shall be made upon the City's receipt from
the qualifying grantee of certified and documented invoices for actual
expenditures allowable under the terms of any agreement between the
qualifying grantee and the City.
(2)
Cost reimbursements from units of service. Payments under any unit
cost contract provisions shall be made upon the City's receipt
from the qualifying grantee of a certified and documented invoice
showing the number of units of service provided during the billing
period.
(3)
Rate at which costs incurred. Under unit cost of cost reimbursable
contracts, it is anticipated that costs will be incurred by the qualifying
grantee at an approximate level rate during the term of any agreement
between the qualifying grantee and the City. If the City determines
that the agreement by the qualifying grantee at the approximate level
rate during the term of any agreement between the qualifying grantee
and the City. If the City determines that the qualifying grantee is
underspending or overspending, the City may reduce the budget and/or
exercise such other budgetary fiscal controls it deems appropriate.
(4)
Invoices. The qualifying grantee shall not submit invoices more than
once a month, unless written approval is obtained, in advance, from
the City. Failure to submit invoices within 20 days of the close of
the month for which payment is sought may result in the nonavailability
of funds for reimbursement.
(5)
No dual application of costs. The qualifying grantee shall certify
that any direct or indirect costs claimed by the qualifying grantee
will be allocable to or included as a cost of any other program, project,
contract, or activity operated by the qualifying grantee and which
has not been approved by the City in advance, in writing.
(6)
Prohibition of substitution of funds. Any affordable housing funds
or other amounts received by the qualifying grantee may not be used
by the qualifying grantee to replace other amounts made available
or designated by the state or local governments through appropriations
for use for the purposes of the Act.[2]
[2]
Editor's Note: See NMSA 1978, § 6-27-1 et seq.
(7)
Cost allocation. The qualifying grantee shall clearly identify and
distribute all costs incurred pertaining to the affordable housing
project by a methodology and cost allocation plan at times and in
a manner prescribed by, or acceptable to, the City.
F.
Additional information. Qualifying grantees shall provide the City
with any and all information which the City reasonably may require
in order for it to confirm that the qualifying grantees continue to
satisfy the requirements of the Act, the Rules, and this chapter throughout
the term of any contract and/or any affordability period or otherwise
as may be required by the City or the MFA in its discretion. At a
minimum, on an annual basis, the City shall certify to the MFA, in
writing, that, to the best of its knowledge, the qualifying grantee
is in compliance with applicable provisions of the Act, the Rules
and this chapter.
All affordable housing funds or housing assistance grants awarded
under the Act[1] are to be used by qualifying grantees for the benefit
of persons of low or moderate income subject to the provisions of
the Act and with particular regard to their housing-related needs.
An application must include a provision requiring proof of the need
for an affordable housing contribution. The applicant shall submit
adequate information, as required by the City and/or the MFA, of the
affordable housing project proposed by the applicant. The information
provided must clearly evidence the need for the subsidy, that the
value of the housing assistance grant reduces the housing costs to
persons of low or moderate income, and that there is or will be a
direct benefit from the project proposed by the applicant to the community
and/or to the purported beneficiaries of the project, consistent with
the provisions of the Act;
A.
Single-family property. Qualifying grantees shall agree that they
shall maintain any single-family property which has been acquired,
rehabilitated, weatherized, converted, leased, repaired, constructed,
or which property has otherwise benefited from affordable housing
funds, including but not limited to any loans which have been repaid
with affordable housing funds and which loans previously were secured
by such properties, as affordable housing for so long as any or all
of the affordable housing funds which have been awarded, loaned, or
otherwise conveyed to the qualifying grantee are unpaid and outstanding
or the affordability period, whichever is longer.
B.
Multifamily property.
(1)
Single apartment within a multifamily property. Qualifying grantees
shall agree that, if any single apartments are to be rehabilitated,
weatherized, leased, repaired, constructed, or otherwise are to benefit
from affordable housing funds, those apartments shall be leased to
persons of low or moderate income at the time of any such award. Qualifying
grantees, who are the landlords and/or owners of such properties,
shall further agree to contribute at least 60% of the cost of rehabilitation,
weatherization, conversion, lease, repair, and/or construction. Qualifying
grantees also shall agree that the persons of low or moderate income,
who are tenants of those apartments, shall be allowed to remain tenants
for so long as there are no uncured defaults by those tenants under
their respective leases and provided that there is no just cause for
the landlord to terminate any lease agreement with those tenants.
(2)
Multiple apartments. Qualifying grantees shall agree that, if multiple
apartments or an entire multifamily property are to be acquired, rehabilitated,
weatherized, converted, leased, repaired, constructed, or otherwise
are to benefit from affordable housing funds, including but not limited
to any loans which have been repaid with affordable housing funds
and which loans previously were secured by such properties, they shall
maintain not less than 60% of the housing units as affordable housing
for long as any or all of the affordable housing funds which have
been awarded, loaned, or otherwise conveyed to the qualifying grantee
are unpaid and outstanding or the affordability period, whichever
is longer.
C.
Nonresidential property. Qualifying grantees shall agree that they
shall maintain any nonresidential property which has been acquired,
rehabilitated, weatherized, converted, leased, repaired, constructed,
or which property has otherwise benefitted from affordable housing
funds, including but not limited to any loans which have been repaid
with affordable housing funds and which loans previously were secured
by such properties, as a facility which provides housing-related services
to persons of low or moderate income for so long as any or all of
the affordable housing funds which have been awarded, loaned, or otherwise
conveyed to the qualifying grantee are unpaid and outstanding or the
affordability period, whichever is longer.
D.
Housing assistance grant affordability requirements.
(1)
Qualifying grantees shall agree that they shall maintain any land or buildings received as a housing assistance grant as either single-family or multifamily affordable housing in accordance with Subsections A and B or as a facility which provides housing-related services to persons of low or moderate income in accordance with Subsection C (as applicable) for the duration of the affordability period. The grant for the housing project must impose a contractual obligation on the recipient of the contribution that the units must be occupied by low- or moderate-income households.
(2)
Qualifying grantees shall agree that they shall maintain any land
or buildings for which they have received the costs of infrastructure
as a housing assistance grant as either single-family or multifamily
affordable housing or as a facility which provides housing-related
services to persons of low or moderate income (as applicable) for
the duration of the affordability period. In calculating the affordability
period for housing assistance grants of either land or buildings,
the fair market value of the land or buildings or the costs of infrastructure
at the time of the donation by the state or the City shall apply.
E.
Affordability period. The City, in its discretion, may increase the affordability period in any contract, note, mortgage, loan agreement, land use restriction agreement, restrictive covenant agreements and/or any other agreement which the City may enter into with any qualifying grantee or beneficiary of the affordable housing funds or of the housing assistance grant. See the definition of "affordability period" in § 220-3 of this chapter. Notwithstanding the foregoing, in the discretion of the MDA, weatherization funds conveyed from the state to the MFA and/or any other similar conveyances where an affordability period is not practical shall not be subject to the affordability period requirements of this section; but nevertheless, any such conveyances may be subject to recapture, on some pro-rated basis, as determined by the City and/or the MFA.
[1]
Editor's Note: See NMSA 1978, § 6-27-1 et seq.
Each qualifying grantee shall consent to the jurisdiction of
the State of New Mexico District Courts, First Judicial District,
Rio Arriba County, over any proceeding to enforce compliance with
the terms of the Act,[1] the Rules and this chapter and any agreement between the
qualifying grantee and the City and/or the MFA.
[1]
Editor's Note: See NMSA 1978, § 6-27-1 et seq.
B.
The City may establish procedures for certifying qualifying grantees
from time to time.
C.
Qualifying grantees that fail to satisfy the requirements for recertification
shall cease to be eligible and shall be denied further participation
in affordable housing programs until the requirements of the City
and the MFA are satisfied.
Qualifying grantees shall provide the City with any certifications
or other proof that it may require in order for the City and the MFA
to confirm that the qualifying grantee and the qualifying grantee's
proposed project are in compliance with all applicable federal, state
and local laws, rules and ordinances.
The MFA shall have the power to create variations or extensions
of affordable housing programs, or additional programs that comply
with the Act and the Rules.
A.
The City is authorized to make housing assistance grants under the
Act.[1] Upon determination that the City will make a housing assistance
grant, including the use of any affordable housing funds, the City
shall provide the MFA with the following:
(1)
Documentation that confirms that the City has an existing valid affordable
housing plan;
(2)
A copy of the proposed ordinance which provides for the authorization
of the housing assistance grant, including the use of any affordable
housing funds, together with a written certification that the proposed
grantee is in compliance with the Act and the Rules so that the MFA
may confirm both that the ordinance is in compliance with the Act,
that the application is complete, and that the proposed grantee is
a qualifying grantee under the Act and the Rules.
(3)
A statement that the contributions to any project authorized by the
ordinance are consistent with the approved housing plan and consistent
with the requirements of the Affordable Housing Act § 4.4.
[1]
Editor's Note: See NMSA 1978, § 6-27-1 et seq.
B.
Prior to the submission of the ordinance to the Commission, the Commission
must approve the budget submitted by the applicant.
C.
An ordinance authorizing the City to make a housing assistance grant
and/or distribute affordable housing funds:
(1)
Must authorize the grant, including use of affordable housing funds,
if any;
(2)
Must state the requirements and purpose of the grant; and
(3)
Must authorize the transfer or disbursement to the qualifying grantee
only after a budget is submitted to and approved by the Commission;
(4)
Must comply with the Rules, as amended;
(5)
May provide for matching or using local, private or federal funds
either through direct participation with a federal agency pursuant
to federal law or through indirect participation through the MFA.
D.
The MFA may request to review any contribution made pursuant to the
ordinance, as permitted under the Act and the Rules.
E.
The City, in its discretion, may also hold any award of affordable
housing funds or any housing assistance grant made by the City in
suspense pending the issuance by the City of any RFP or pending the
award of the affordable housing funds or the housing assistance grant
by the City to the qualifying grantee without the issuance of an RFP
by the City. Any award of affordable housing funds or a housing assistance
grant by the City shall subject the qualifying grantee of the award
or grant to the oversight of the City and the MFA under this chapter
and the Rules.
A.
If a school district or a public post-secondary educational institution
makes a housing assistance grant, then it shall provide the MFA with
written certification that the proposed grantee is in compliance with
the Act,[1] the Rules and this chapter so that the MFA may confirm
that the application is complete and that the proposed grantee is
a qualifying grantee under the Act, Rules and this chapter. Any transfer
of land by a school district to the City to be further granted has
part or all of an Affordable Housing Grant shall be subject to the
additional limitations contained in the Act that the school district
and the Commission enter into a contract that provides the school
district with a negotiated number of affordable housing units that
will be reserved for employees of the school district. Any transfer
of land by a public post-secondary educational institution shall be
subject to the additional limitations contained in the Act that:
(1)
The property transferred shall be granted by the City as part or
all of an affordable housing grant; and
(2)
The governing board of the public post-secondary educational institution
and the Commission enter into a contract that provides the public
post-secondary educational institution with affordable housing units.
[1]
Editor's Note: See NMSA 1978, § 6-27-1 et seq.
B.
As used in this section, "public post-secondary educational institution"
means a state university or a public community college. The City,
in its discretion, may also hold any housing assistance grant made
by any school district or public post-secondary educational institution
in suspense pending the issuance by the City of any RFP or pending
the award of the housing assistance grant by the City to the qualifying
grantee without the issuance of an RFP by the City. Any award of a
housing assistance grant by a school district or a public post-secondary
educational institution shall subject the qualifying grantee of the
grant to the oversight of the City and the MFA under these Rules.
The development, construction, occupancy and operation of an
affordable housing program or an affordable housing project financed
or assisted under the Act shall be undertaken in a manner consistent
with principles of nondiscrimination and equal opportunity, and the
City shall require compliance by all qualifying grantees with all
applicable federal and state laws and regulations relating to affirmative
action, nondiscrimination and equal opportunity.
Any proposed amendment to this chapter and/or regulations promulgated
pursuant to this chapter shall be submitted to MFA for review, as
required by the Affordable Housing Rule 4.1(F).
The Commission may repeal this chapter and terminate the City's
Affordable Housing Program and any or all contracts undertaken in
its authority. Termination shall be by ordinance at a public hearing
or in accordance with the terms of the contract and applicable state
law. If an ordinance or a contract is repealed or terminated, all
contract provisions of the contract regarding termination shall be
satisfied.
If any provision of this chapter or the application hereof is
held to be invalid by a court of competent jurisdiction, the remainder
of this chapter and the application of this chapter under other circumstances
or to other persons not similarly situated shall not be affected thereby.
This chapter shall be incorporated in and compiled as a part
of the Code of Ordinances of the City of Española.
This chapter shall become effective and be in full force and
effect from and after its passage, publication and posting, according
to law.