In Partnership With
NOFA Round 28 November 2022
i
TABLE OF CONTENTS
1 PROGRAM OVERVIEW ...................................................................................................... 1
1.1 Introduction ........................................................................................................... 1
1.2 NOFA Timeline ...................................................................................................... 2
1.3 Meeting for Funded Projects.................................................................................. 2
1.4 Important Resources ............................................................................................. 2
2 APPLICATION PROCESS ................................................................................................... 2
2.1 Mandatory Proposers Conference ......................................................................... 3
2.2 Questions & Answers ............................................................................................ 3
2.3 Application Evaluation ........................................................................................... 3
2.4 Application Reviews and Appeals .......................................................................... 4
2.5 Funding Recommendations ................................................................................... 4
2.6 CEQA Clearance and Funding Commitments ....................................................... 4
3 SUBSIDIES AND PROGRAM DESCRIPTION ..................................................................... 5
3.1 Available Funds and Rental Assistance ................................................................. 5
3.2 Target Populations ................................................................................................ 8
3.3 Eligible Projects and General Requirements ......................................................... 8
3.4 Ineligible Project Types ......................................................................................... 9
3.5 Eligible Uses of Capital Funds ............................................................................. 10
3.6 Ineligible Uses of Capital Funds .......................................................................... 10
3.7 Additional Application Eligibility Requirements .................................................... 10
3.8 Supportive Services Plan ..................................................................................... 12
3.9 Architectural Design Requirements ...................................................................... 13
4 LOAN TERMS .....................................................................................................................13
4.1 Terms and Term of Commitment ......................................................................... 13
4.2 Release of Funds ................................................................................................ 13
4.3 Fees .................................................................................................................... 14
5 SCORING AND EVALUATION CRITERIA ..........................................................................16
5.1 Financing............................................................................................................. 17
5.2 Development Team ............................................................................................. 18
5.3 Geography .......................................................................................................... 21
5.4 County Priorities .................................................................................................. 21
5.5 Housing Type –Special Needs Project ................................................................ 22
5.6 Geographic Equity Points ..................................................................................... 22
6 UNDERWRITING ................................................................................................................22
6.1 Financial Feasibility ............................................................................................. 22
6.2 Minimum Operating Expenses ............................................................................. 23
6.3 Partnership Management Fee ............................................................................. 23
6.4 Project-Funded Rental Subsidy ........................................................................... 23
6.5 Furnishings for Homeless Units ........................................................................... 24
6.6 Onsite Manager .................................................................................................... 24
7 ADMINISTRATIVE PROVISIONS .......................................................................................24
7.1 General LACDA Requirements ............................................................................ 24
7.2 LACDA’s Rights and Responsibilities .................................................................. 24
NOFA Round 28 November 2022
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7.3 LACDA’s Discretion ............................................................................................. 24
7.4 Cost of Application Preparation ........................................................................... 24
7.5 Application is Property of the LACDA .................................................................. 25
7.6 Other Funding Applications by NOFA Applicants ................................................. 25
7.7 Noncompliant/Debarred Contractors ................................................................... 25
7.8 Insurance Requirements ..................................................................................... 25
7.9 Pet-Friendly Housing Ordinance .......................................................................... 25
7.10 Section 3 ........................................................................................................... 25
7.11 Prevailing Wages .............................................................................................. 26
7.12 General Contractor Selection and Construction Contracts ................................. 26
7.13 Construction Signage ........................................................................................ 26
7.14 Fair Housing, Accessibility Requirements, Marketing, and Lease-Up ................ 27
7.15 Density Bonus Units .......................................................................................... 27
7.16 Withholding of Funds Until Permanent Financing .............................................. 27
7.17 Compliance with all Conditions Prior to Loan Closing ........................................ 27
7.18 Events of Default ............................................................................................... 28
7.19 Local and Targeted Worker Hiring program ....................................................... 28
8 DEFINITIONS .......................................................................................................................31
9 SIGNIFICANT CHANGES ......................................................................................................34
SUPPLEMENTAL DOCUMENTS
1.
Environmental Service Request Form
2.
Eligible Areas
3.
PBV and PBVASH Voucher Regulations and
Guidelines
4.
Supportive Services Criteria
5.
Architectural Design Requirements
6.
Affirmative Fair Housing and Accessibility
Requirements
7.
LACDA Underwriting Guidelines
8.
Community Outreach Toolkit
9.
General LACDA Requirements
10.
Utility Allowance Schedule
11.
Section 8 Payment Standards
12.
Rent and Income Limits
13.
LACDA Insurance Requirements
14.
Local and Targeted Worker Hiring Reporting
NOFA Round 28 1 November 2022
1 PROGRAM OVERVIEW
1.1 INTRODUCTION
In collaboration with the Chief Executive Office of the County of Los Angeles, the focus
of this Notice of Funding Availability for Affordable Multifamily Rental Housing, Round 28
(NOFA 28) is on new construction and acquisition/rehabilitation projects that create new
Special Needs and affordable rental housing units for residents vulnerable to COVID-19
and in areas significantly impacted by the COVID-19 pandemic. Incorporating the
principles of the County’s Anti-Racism, Diversity, and Inclusion (ARDI) Initiative, the Los
Angeles County Development Authority (LACDA) seeks to support the creation of
permanent housing to provide equitable relief and assistance to impacted communities.
An overriding goal is to ensure that recovery programs are equity-focused, community-
empowering, worker-centered, and results- and evidence-focused to maximize the
benefits to the communities suffering disproportionate health and economic impacts from
the COVID-19 pandemic.
Incorporating equity components into the NOFA enables the LACDA to prioritize
disproportionately impacted communities. In addition to ensuring equitable access to
housing, this NOFA seeks to attract developers, property management companies,
architects, contractors, and workers in impacted communities to ensure that the LACDA
funds benefit those most impacted. The LACDA will work closely with the County of Los
Angeles Department of Economic Opportunities to certify development team members
that qualify for Local Small Business Enterprise (LSBE), Disabled Veteran Business
Enterprise (DVBE), Social Enterprise (SE), and Community Business Enterprise (CBE)
certifications. Equity points will be awarded to team members that have an active
certification for any of these programs.
Through this NOFA, eligible affordable multifamily rental housing projects may apply for
capital financing, as well as rental assistance in the form of Section 8 Project-Based
Vouchers (PBVs) and Project-Based Veterans Affairs Supportive Housing (PBVASH)
Vouchers.
This NOFA makes available up to $35.2 million in capital funding for eligible permanent
multifamily rental housing projects. Additionally, the LACDA is designating this NOFA as
its public notice of a competitive request for the award of a combined total of 300
PBVs/PBVASH Vouchers.
NOFA Round 28 2 November 2022
1.2 NOFA TIMELINE
Date
Tuesday, 11/1/2022
Wednesday, 11/9/2022
Thursday, 11/10/2022
Tuesday, 11/15/2022
Tuesday, 11/15/2022
Thursday, 12/1/2022
Monday, 12/19/2022
12/21/2022
12/27/2022-1/31/2022
2/1/2023-2/3/2023
3/2023
1.3 MEETING FOR FUNDED PROJECTS
NOFA Awardees may be required to attend a meeting for funded projects. This meeting,
if required, will be scheduled after awards are announced, as a means of providing
information to project sponsors regarding funding requirements and timelines.
1.4 IMPORTANT RESOURCES
UNOFA Application Website
https://www.unofa.org/
NOFA 28 Equity Map
https://lacounty.maps.arcgis.com/apps/instant/lookup/index.html?appid=cd056f15b89c4
6829393c3617c565244
LACDA Affordable Housing Information
https://www.lacda.org/affordable-housing
UNOFA E-mail Subscription
Provides notification of NOFA-related information, such as upcoming NOFA rounds,
NOFA addenda, meetings, and other important funding information
https://www.unofa.org/#/homepage
NOFA Point of Contact
The LACDA’s Point of Contact for this NOFA is: Beatriz Lopez, Senior Analyst –
[email protected].
2 APPLICATION PROCESS
NOFA Round 28 3 November 2022
All NOFA materials and information can be found in these NOFA guidelines and in the
Supplemental Documents identified in the Table of Contents. These NOFA guidelines
incorporate by reference and are augmented by the Supplemental Documents.
Applications will only be accepted via the UNOFA Application website, located at
https://www.unofa.org . All application materials must be submitted before the application
closing date and time, as indicated in this NOFA.
Acceptance by the LACDA of an application under this NOFA constitutes agreement by
the applicant as to all terms, conditions, requirements, and rules of the NOFA but does
not constitute a contract or commitment of any kind. The LACDA reserves the right, in its
sole discretion, to reject any and all applications in whole or in part. Once an application
has been submitted, applicants will not be permitted the opportunity to cure deficiencies,
unless requested to do so by the LACDA. The LACDA may, in its sole discretion, request
clarification of any portion of an application from the applicant and its development team.
2.1 MANDATORY PROPOSERS CONFERENCE
All applicants must attend a Mandatory Proposers Conference (see NOFA Timeline
above). The LACDA will not accept applications from project sponsors that did not attend
the Mandatory Proposers Conference.
2.2 QUESTIONS & ANSWERS
Questions regarding the NOFA should only be submitted through the UNOFA
Application’s FAQs section and use the “Ask a Question” button. Inquiries made by any
other means (including by email or phone) will not be answered. The deadline for
submitting questions is identified in the NOFA timeline above.
2.3 APPLICATION EVALUATION
Applications are evaluated in two (2) stages: 1) Threshold Review and 2) Technical
Scoring and Evaluation. The NOFA Application is available through the UNOFA
Application website and it identifies threshold criteria in the Application Checklist that must
be met to be considered for funding.
The Threshold Review evaluates completeness of the application and compliance with
program and threshold requirements. Applications that do not pass Threshold Review
will not receive further consideration. Applications that pass Threshold Review move to
Technical Scoring and Evaluation, which evaluates projects based on the NOFA Scoring
Criteria. Applicants are notified of the outcome of both the Threshold Review and
Technical Scoring and Evaluation via e-mail to the point of contact identified in the
application.
If the Applicant is also applying for PBVs and/or PBVASH Vouchers through this NOFA,
the LACDA will determine compliance with the PBV and PBVASH regulations of the U.S.
Department of Housing and Urban Development (HUD) and with LACDA’s Administrative
Plan requirements. See the PBV and PBVASH Vouchers Regulations and Guidelines
Supplemental Document for program and application requirements.
NOFA Round 28 4 November 2022
2.4 APPLICATION REVIEWS AND APPEALS
Results of the Threshold Review are final and may not be appealed. The Threshold
Review includes overall project feasibility, as well as specific application items, as
described in the NOFA Application Checklist.
Applicants may appeal the Technical Scoring results. The written appeal will be the sole
basis of the LACDA’s consideration of the appeal. Appeals may be submitted within the
timeframe specified in the Notice of Technical Review Results issued by the LACDA. Late
appeals will not be considered. Appeals must:
▪ Be in writing
▪ Not exceed two (2) pages in length (8 ½ x 11-inch letter size, 12-point font, 1-inch
margins)
▪ Only address procedural or technical issues, and
▪ Not present new information, as new information will not be considered.
2.5 FUNDING RECOMMENDATIONS
Applications are recommended for funding based on the Technical Scoring. An
Independent Review Panel reviews project scoring results before making funding
recommendations to the LACDA’s Executive Director. All awards are provisional until
approved by the LACDA’s Board of Commissioners.
2.6 CEQA CLEARANCE AND FUNDING COMMITMENTS
Project sites must be free from severe adverse environmental conditions, such as the
presence of contamination or site conditions that place an undue financial burden on the
project, or that cannot be mitigated to the satisfaction of the LACDA. The LACDA’s
Environmental Officer must approve the site for funding eligibility based on current
environmental conditions and any remediation or mitigation plans.
The LACDA shall either be named as an intended user for environmental reports or will
require a reliance letter for environmental reporting that will authorize the LACDA to rely
on the existing environmental report for the project approval and loan-making processes.
Environmental conditions must be identified and included in any appraisal reports and a
determination shall be made regarding any negative effect on a site’s fair market value.
The applicant is required to provide formal documentation of the project’s compliance and
approval with California Environmental Quality Act (CEQA) no later than 60 days prior to
the LACDA’s Executive Director making a funding recommendation to the Board of
Commissioners. The final decision for funding rests with this Board and a funding
commitment can only be issued after Board approval. The actual issuance of funding to
a project is subject to compliance with all funding conditions; the NOFA’s Administrative
Provisions; preparation, signature, and delivery of the loan documents; and continued
cooperation of the applicant, including delivery of any additional information or materials
requested by the LACDA.
Funding and rental assistance available under this NOFA are dependent, in part, upon
appropriations from the County Board of Supervisors, and the U.S. Department of Housing
and Urban Development (HUD). In the event funds or rental assistance offered through this
NOFA Round 28 5 November 2022
NOFA are not available, the LACDA, at its sole discretion, may terminate its obligations
resulting from this NOFA.
3 SUBSIDIES AND PROGRAM DESCRIPTION
3.1 AVAILABLE FUNDS AND RENTAL ASSISTANCE
NOFA funds may be restricted to a target population and/or geography. Rental assistance
is only available to projects that are located in the LACDA’s Section 8 program jurisdiction.
At the sole discretion of the Executive Director, the LACDA will consider providing
PBVs/PBVASH Vouchers for projects in jurisdictions in which the local Housing Authority
has reached the statutory cap for project based rental assistance, as evidenced by the
issuance of Housing Assistance Payments (HAP) Contracts. The LACDA will refer to
HUD sources to confirm PBV/PBVASH Voucher issuance status for such jurisdictions and
a letter from the local Housing Authority also confirming this status will be required.
The local Housing Authority will need to enter into a Memorandum of Understanding with
the LACDA before the LACDA can issue vouchers for project-based rental assistance in
the local Housing Authority’s jurisdiction.
3.1.1 AVAILABLE CAPITAL FUNDS
This NOFA makes up to a total of approximately $35,200,000 in Affordable Housing Trust
Funds (AHTF) for units reserved for qualifying Special Needs populations.
3.1.2 PROJECT FUNDING AMOUNTS
Applications requesting funding that exceed the maximum allowable per unit or per
project amounts will be disqualified.
All funding awards are subject to further due diligence review by the LACDA prior to loan
closing. The award may be reduced or increased if the LACDA determines, in its sole
discretion, that the full amount of the award is not necessary to achieve financial
feasibility, or if the amount is insufficient to achieve the LACDA’s housing goals and
objectives. The LACDA may request additional documentation from successful
applicants during underwriting, including applications for funding from other public and
private entities.
CAPITAL FUND PROJECT LIMITS
Fund Type
Target
Population
Eligible
Geography
Maximum Subsidy Per Project
AHTF
Special Needs
Los Angeles
County
• $7,000,000 in unincorporated Los
Angeles County or projects using
County-owned land.
• $5,000,000 in incorporated cities
outside of the City of Los Angeles.
NOFA Round 28 6 November 2022
CAPITAL FUND PROJECT LIMITS
Fund Type
Target
Population
Eligible
Geography
Maximum Subsidy Per Project
• $3,000 in the City of Los Angeles
• Funds are allocated on a per-unit
basis per eligible Assisted Unit.
CAPITAL FUND UNIT LIMITS
Number of Bedrooms*
Maximum Per Unit Subsidy
Studio
$140,000
1
$150,000
2+
$160,000
*Projects proposing 3-bedroom units for Special Needs populations must provide evidence, acceptable to
the LACDA, and/or the Los Angeles County Departments of Health Services and Mental Health, that
sufficient demand exists for this unit type.
3.1.3 AVAILABLE RENTAL ASSISTANCE
Up to a total of 300 PBVs/PBVASH Vouchers are available to projects within LACDA’s
jurisdiction. At the sole discretion of the Executive Director, the LACDA will consider
providing PBVs/PBVASH Vouchers for projects in jurisdictions in which the local Housing
Authority has reached the statutory cap for project based rental assistance, as evidenced
by the issuance of Housing Assistance Payments (HAP) Contracts. The LACDA will refer
to HUD sources to confirm PBV/PBVASH Voucher issuance status for such jurisdictions
and a letter from the local Housing Authority also confirming this status will be required.
The local Housing Authority will need to enter into a Memorandum of Understanding with
the LACDA before the LACDA can issue vouchers for project-based rental assistance in
the local Housing Authority’s jurisdiction.
Projects must apply for and be awarded capital funds to qualify for rental assistance, with
one exception as follows. Projects seeking only PBVASH Vouchers may apply for this
rental assistance type as a stand-alone application. Such applications will only be
considered if sufficient PBVASH Vouchers remain after providing rental assistance to
projects funded through this NOFA. Projects receiving an allocation of PBVASH
Vouchers without an associated funding award will be assessed fees associated with the
provision of labor compliance services by the LACDA.
RENTAL ASSISTANCE TYPES
Type of Funds
Target Population
Eligible
Geography
Maximum Subsidy
Per Unit
PBVs
Special Needs up to 30% AMI
Unincorporated
Los Angeles
County or Section
As specified by
LACDA Section 8
payment standards
PBVASH
Vouchers
Homeless veterans & their
families up to 50% AMI
NOFA Round 28 7 November 2022
RENTAL ASSISTANCE TYPES
Type of Funds
Target Population
Eligible
Geography
Maximum Subsidy
Per Unit
8 Participating
Jurisdiction
As project-based rental assistance becomes scarce, the LACDA may reduce any request
of PBVs and/or PBVASH Vouchers based on project need. Applicants may be notified of
any such reduction during the application period, or any time before issuance of an
Agreement to Enter Into Housing Assistance Payments (AHAP) Contract.
3.1.4 NEPA CLEARANCE FOR RENTAL ASSISTANCE
PBVs and PBVASH Vouchers are subject to availability, approval, and qualification under
the LACDA’s Administrative Plan and HUD requirements. This rental assistance is
available only to projects that have requested and have been awarded capital funds, with
the exception of an allocation of standalone PBVASH Vouchers, as identified. Rental
assistance must serve eligible populations and the project must be within the LACDA’s
jurisdiction, as defined in this NOFA. Contract terms will be up to 20 years, with the
possibility of a 20-year extension subject to funding availability.
Qualifying PBV and/or PBVASH projects must:
▪ Not replace a committed operating subsidy, except for the Flexible Housing
Subsidy Pool administered by the Los Angeles County Department of Health
Services (DHS).
▪ Use a Coordinated Entry System (CES) for lease-up of 100% of the PBVASH units
and at least 80% of the PBV units.
▪ Serve an eligible population.
▪ Request capital funds under this NOFA (standalone applications for LACDA rental
assistance will not be accepted, except for PBVASH Vouchers).
▪ Be located in Unincorporated Los Angeles County, or within a jurisdiction served
by the LACDA’s Section 8 program (excluding exception areas).
PBV and PBVASH Voucher Regulations and Guidelines are available as a Supplemental
Document to this NOFA. In addition, applicants must include PBV and/or PBVASH
Voucher rental assistance assumptions in the NOFA application and complete all
applicable information related to the application for PBVs and/or PBVASH Vouchers.
Projects applying for PBVs and/or PBVASH Vouchers must comply with the National
Environmental Policy Act (NEPA) and complete the Environmental Service Request Form
included as a Supplemental Document to this NOFA. If project sponsors require NEPA
clearance by a particular date, a request for review and clearance must be received by
the LACDA at least 60 days prior to the date such NEPA clearance is needed.
3.1.5 GEOGRAPHIC PROJECT LIMITATIONS
An applicant may submit a maximum of one application for a project in the City of Los
Angeles for which they are the Lead Developer. A Lead Developer is a developer that
possesses 51% or more of the development responsibilities and share of developer fee.
NOFA Round 28 8 November 2022
There is no restriction on the number of projects per applicant outside of the City of Los
Angeles.
3.2 TARGET POPULATIONS
To qualify for funding, Special Needs units must target the following eligible populations:
▪ Homeless Households
▪ Chronically Homeless
▪ Homeless Seniors
▪ Homeless Veterans
▪ Homeless People with Mental Illnesses
▪ People Living with HIV / AIDS
▪ People with Intellectual/Developmental Disabilities
▪ Transition Age Youth (Homeless and At-Risk)
▪ Survivors of Domestic Violence/Human Trafficking/Sexual Assault
3.2.1 AFFORDABILITY REQUIREMENTS
Special Needs units that are to receive funding/rental assistance must be restricted to
households earning at or below 30% of AMI. Income targeting for units assisted by
PBVASH Vouchers may be at or below 50% of AMI, subject to the terms of other project
funding sources.
3.3 ELIGIBLE PROJECTS AND GENERAL REQUIREMENTS
▪ Projects using tax credit financing must provide at least 25 units of permanent
multifamily housing and set aside the greater of 20% of the total units or 15 units
for a qualifying Special Needs population.
▪ Projects that do not propose the use of tax credit financing must set aside at least
20% of the total units for permanent multifamily rental housing reserved for a
qualifying Special Needs population and request at least $1,000,000 in capital
funds. No unit minimum is required.
Please note that motel conversions are eligible projects under this NOFA.
3.3.1 MINIMUM PROJECT REQUIREMENTS
All eligible project types must meet the following minimum requirements:
▪ The project must be located entirely within Los Angeles County and within any
geographic restriction for funding or rental assistance.
▪ The project must demonstrate financial feasibility and positive cash flow for at least
20 years.
▪ The project must ensure integration of the Target Population in the community by
demonstrating adequate proximity to transportation, services, and other amenities.
▪ Proposed projects must demonstrate that Assisted Units are integrated with other
units in the project and not located in their own separate floors or areas of the
building.
o Applicants must facilitate or provide regular community-building activities
and architectural design features that promote tenant interaction; and
NOFA Round 28 9 November 2022
o The supportive services and property management plans must document
policies that promote participation by tenants in community activities and
impose no restrictions on tenants that are not otherwise required by other
project funding sources or would not be common in other unsubsidized
rental housing in the community.
▪ Property Management Plans must be consistent with Housing First practices as
required by Welfare and Institutions Code Section 8255(b) and described in more
detail in the Supportive Services Criteria Supplemental Document.
▪ Tenant screening standards for the special needs units, including criminal
background, housing history, and financial screening criteria (e.g., rental or other
debt), must not be stricter than those used by the Public Housing Authority (PHA)
that has jurisdiction over the location of the project site.
▪ Projects that are currently subject to affordability covenants or agreements are not
eligible unless the affordability period is expiring within five (5) years of the NOFA
application due date.
▪ For projects developed on land owned by or formerly owned by the LACDA or
County of Los Angeles, at least 49% of the total units must be reserved for an
eligible Special Needs population.
▪ Projects must be new construction, acquisition and operation, or acquisition with
rehabilitation.
o A rehabilitation project must:
▪ Submit at the time of NOFA application a Capital Needs Assessment
that meets the requirements of current CTCAC regulations.
▪ Provide new affordable units to the housing stock.
▪ Not displace low-income households, or remove units from the
housing stock, unless the project provides for a two- (2) to-one (1)
unit replacement.
▪ Projects seeking capital funds must not have submitted a current application for
tax credits, received an award of tax credits, or commenced construction. Per HUD
guidelines, projects that are only seeking PBVASH Vouchers may be in
predevelopment or be completed (but not in construction).
3.4 INELIGIBLE PROJECT TYPES
Projects must be able to meet all requirements and goals of this NOFA. The following list
of ineligible project types is not to be considered all-inclusive and is provided as a guide
to projects that will not be considered for assistance through this NOFA:
▪ Acquisition of land only.
▪ Single Room Occupancy (SRO) projects.
▪ Projects that result in the removal of existing housing units or demolition of existing
housing stock, except if the project provides replacement of housing units on a
two- (2) for-one (1) basis (two (2) units built for each one (1) unit removed).
▪ Projects that propose to fund commercial tenant improvements as part of the
project budgets.
▪ Projects within 500 feet of a freeway, as measured from the first lane of travel
nearest the project boundary. If a portion of a proposed development site is within
500 feet of a freeway, the project must be designed in such a way as to exclude
from this 500-foot freeway “buffer” area any portion of the residential building, as
NOFA Round 28 10 November 2022
well as play areas, community rooms, gardens, patios, and other areas where
residents may reasonably be expected to congregate. The LACDA shall review
and approve, at its sole discretion, any site plans for developments of this type.
Applicants seeking a determination of the project location relative to the freeway
buffer may submit a request to: [email protected].
3.5 ELIGIBLE USES OF CAPITAL FUNDS
Capital funds awarded under this NOFA may be used for the following expenses:
▪ Reimbursement for acquisition of land and improvements in conjunction with an
eligible project. Acquisition costs shall not exceed fair market value, as determined
by an appraisal. Costs in excess of fair market value will be disallowed from the
project budget.
▪ Costs in conformance with the LACDA’s Underwriting Guidelines.
▪ If the project contains commercial space, LACDA funds may be used only to pay
for eligible residential units and a proportionate amount of the project’s common
areas.
▪ Project predevelopment, construction, and permanent financing.
3.6 INELIGIBLE USES OF CAPITAL FUNDS
Capital funds awarded under this NOFA shall not be used for the following expenses or
activities:
▪ Substitution of any committed project financing source.
▪ Costs associated with units not funded by the LACDA.
▪ Commercial space or tenant improvements.
▪ Payment of invoices or expenses (during construction period) that are greater than
four (4) months old at the time of submission.
▪ Reimbursement for project costs that have been paid by another project funding
source.
▪ Capitalized transition reserve, or other project reserves.
▪ Refinancing permanent debt on existing developments, or recapitalizations of any
kind unless the project is within five (5) years of the termination of an affordability
covenant.
▪ Travel expenses, food, or meals of any kind.
▪ Application fees for other project financing.
▪ Office expenses.
▪ Costs that would normally be paid by the Limited Partnership.
▪ Fees associated with the LACDA NOFA, including Monitoring Fees.
3.7 ADDITIONAL APPLICATION ELIGIBILITY REQUIREMENTS
In addition to meeting basic program and applicant eligibility requirements, projects must
be financially feasible, maintain a positive cash flow for 20 years, and demonstrate
compliance with the minimum requirements for supportive service plans and architectural
design.
Projects seeking 9% tax credits in the City of Los Angeles must provide evidence of
inclusion in the Los Angeles Housing Department’s managed pipeline.
NOFA Round 28 11 November 2022
All applicants must demonstrate that the project may be legally developed at the proposed
site. This can take the form of a zoning verification letter from the local jurisdiction, or
evidence of an application for entitlements.
3.7.1 TIMING OF USE OF FUNDS
Awardees must demonstrate that the project can successfully close construction
financing within one (1) year from notice of award of funds or use NOFA funds to leverage
another source of financing within six (6) months of notice of award. Construction
financing close must then occur within one (1) year of this subsequent application.
3.7.2 ARTICLE XXXIV OF THE CALIFORNIA CONSTITUTION
Applications must demonstrate compliance with Article XXXIV (Article 34) by providing
either documentation of Article 34 authority from the local jurisdiction, or a letter from the
jurisdiction’s City Attorney indicating why the project is exempt from Article 34
requirements. A letter from a private law firm will only be accepted if the local jurisdiction
contracts with that firm for the provision of City Attorney services. In this case, the letter
must plainly state the law firm’s contractual relationship with the local jurisdiction.
Unincorporated Los Angeles County has sufficient Article 34 capacity, therefore, the
LACDA will coordinate Article 34 clearance as part of the funding reservation process and
will not require Article 34 letters as part of the application process for such projects.
3.7.3 SITE CONTROL
At the time of application, an applicant must demonstrate that it has site control, as
defined by current CTCAC Regulations. At a minimum, site control must extend through
the expected timeline for award of NOFA funds. An Agreement to Negotiate Exclusively
or an Exclusive Right to Negotiate with a public agency is also acceptable site control for
this NOFA.
3.7.4 COMPLIANCE WITH PROGRAMS
Applicants must be in compliance with all LACDA fiscal and programmatic requirements,
all regulatory agreements with the LACDA, and the requirements of other governmental
entities or permitting agencies, including any and all laws, statutes, ordinances, codes,
rules, regulations, directives, writs, injunctions, orders, decrees, rulings, or conditions of
approval.
If the applicant or any of the applicant’s existing projects are not in compliance with any
fiscal and programmatic requirements, the project will not be considered for funding and
an applicant may have any existing commitments rescinded. “Applicant’s existing
projects” include projects in which any member of the applicant's ownership entity has an
interest. Additionally, the LACDA may, in its sole discretion, reject applicants based on
past performance.
Applicants must submit a confirmation of compliance to [email protected] by
the due date identified in the NOFA Timeline.
NOFA Round 28 12 November 2022
3.8 SUPPORTIVE SERVICES PLAN
All applicants must prepare a Supportive Services Plan that is appropriate for the project’s
population(s), as described in the Supportive Services Criteria Supplemental Document
that is part of this NOFA. Projects with more than one target population must address the
supportive service needs of all tenants.
The Supportive Services Plan will not be scored, but will be evaluated for quality,
completeness, and inclusion of all required elements. The Supportive Services Plan
consists of the Supportive Services Narrative questions, (either 100% Homeless or Mixed
Population narrative questions) in the UNOFA application, the Property Management
Plan, and the Tenant Selection Plan. The Property Management and Tenant Selection
Plans can be in one document, but each plan must be clearly identified. The Service
Criteria Matrix and Service Definitions identify those services that are required to be
addressed at the time of NOFA application and the services required by the time of
construction loan closing.
Projects may receive a Final Conditions List that will detail areas in the Supportive
Services Plan that must be revised prior to the release of any loan funds. To guarantee
the fulfillment of the required Supportive Services Criteria, the LACDA may withhold loan
funds until all issues are addressed to the LACDA’s reasonable satisfaction.
The LACDA is partnering with DHS, which administers the Housing for Health program, for
the provision of supportive services to homeless Special Needs tenants. Projects seeking
to serve eligible homeless Special Needs populations must utilize a Lead Service Provider
that is either a DHS-approved Intensive Case Management Services (ICMS) provider with
an active work order or has begun DHS’s Request for Statement of Qualifications for
Supportive Housing Services process. Contact Christin Doyle at DHS for more information:
CDoyle@dhs.lacounty.gov.
DHS will fund ICMS for homeless Special Needs units at a rate of $450/door/month for
individuals and $600/door/month for families. The LACDA is in the process of updating
allowable supportive services costs that may be paid from project cash flow, which are in
addition to or supplement services funded by DHS for units designated or reserved for a
homeless population.
Until guidelines defining allowable levels of expenditure above the services provided to
the project by DHS are final, if project cash flow includes a supportive service expense
line item, the project sponsor must identify what services are funded by DHS through
Measure H, what services are proposed for payment through project cash flow, and the
reason these additional supportive services are needed. The LACDA, in its sole
discretion, will determine the reasonableness of these costs. See the Supportive Services
Criteria Supplemental Document and the application’s budget template for detailed
information on allowable costs.
The Lead Service Provider may be the applicant’s own personnel, or a third-party
contractor and applicants may use either the same agency or separate agencies to serve
as the Lead Service Providers for the Special Needs and general affordable units.
NOFA Round 28 13 November 2022
3.9 ARCHITECTURAL DESIGN REQUIREMENTS
All projects must meet minimum building code requirements, construction standards
defined by the latest CTCAC Regulations, and the LACDA’s Architectural Design
Requirements. Design is not scored, however, all required threshold application
submittals described in the LACDA’s Architectural Design Requirements document must
be included in the application to pass the Threshold Review. Applications must identify
whether the architect acts in the capacity of principal or junior architect. The LACDA must
be notified of and approve all changes to the lead architect after initial project review and
evaluation. Project sponsors must use contracts produced by The American Institute of
Architects (AIA) for architectural services.
4 LOAN TERMS
4.1 TERMS AND TERM OF COMMITMENT
Funding awarded under this NOFA is reserved for 12 months, following the Notice of
Intent to Award issued by the LACDA.
4.1.1 CAPITAL FUND LOAN TERMS
All capital funds will be made available as a loan under the following terms:
▪ Interest Rate:
3% simple annual.
▪ Term:
55 - 57 years, depending on when financing is introduced to
the project.
▪ Repayment:
Annual payments based on 50% of residual receipts, as
defined in the loan agreement. When other public funding
is involved, the LACDA will share its distribution of residual
receipts with other public lenders on a pro rata basis.
▪ Collateral:
Deed of Trust secured by the land, or leasehold interest and
improvements.
The LACDA may include in project financing multiple funding sources but will consider
the sources to be one loan amount. The LACDA will base loan priority decisions on the
total sum of the loan.
The LACDA is currently considering an affordability period that exceeds 55 - 57 years.
Projects may be required to adhere to an extended affordability term, which may be
introduced after project financing is approved.
4.2 RELEASE OF FUNDS
The LACDA will generally make capital funds available for disbursement on a draw-down
or reimbursement basis, upon closing of the loan and commencement of construction.
Disbursement of funds for payment of hard costs during construction will be on a draw-
down basis. Disbursement of funds for payment of soft costs during construction will be
on a reimbursement basis and requires evidence of prior payment of each soft cost before
payment is released.
NOFA Round 28 14 November 2022
4.3 FEES
4.3.1 GOOD FAITH DEPOSIT AND LONG-TERM COMPLIANCE MONITORING
Within 60 days of notification of an award, all applicants must pay a non-refundable good
faith deposit of $7,150. During operations, the LACDA will collect an annual compliance-
monitoring payment for each project in the amount of $7,150, to be paid from project cash
flow. The good faith deposit will be credited towards the first year’s monitoring cost.
4.3.2 TAX-EXEMPT BONDS
If tax-exempt bond financing is contemplated for a project within the Unincorporated
County area, or in an incorporated city that does not have authority to issue bonds, the
conduit issuer must be the LACDA (on behalf of the County of Los Angeles). If a project
is located within an incorporated city that (a) is providing financing for the project, and (b)
is a conduit issuer of mortgage revenue bonds, that city may be the conduit issuer.
When the LACDA is the bond issuer, CDLAC Applications will be reviewed by staff prior
to submittal and an initial LACDA application fee of $5,000 will be assessed each time an
application is processed. Additionally, an annual bond administrative fee will be collected
by LACDA. Project Sponsors must pay all costs of issuance at bond closing, including,
but not limited to, bond counsel, county counsel, underwriter, trustee and financial advisor
fees, as well as rating agency fees. Any deposits will be credited toward the cost of
issuance at closing.
The initial issuer fee of 25 basis points (0.25%) on the bond amount and the first year of
the annual administrative fee (the greater of either 12.5 basis points (0.125%) of the
outstanding bond amount or $6,000) are both paid at bond closing. Project Sponsors will
also pay an annual administrative fee to the LACDA equal to the greater of either 12.5
basis points (0.125%) of the outstanding bond amount or $6,000, for the project period to
cover the LACDA's ongoing administration and monitoring costs for the project.
In summary, bond fees include the following:
▪ Application - $5,000 (paid per CDLAC application)
▪ Issuer - .25 x total bond amount (one time, paid at bond closing)
▪ Annual - Greater of either 12.5 basis points (0.125%) of the outstanding bond
amount or $6,000 (annual fee over the 55-year compliance period)
For further information, questions related to the LACDA’s bond processes should be sent
to [email protected].
4.3.3 MATERIAL CHANGE
The LACDA must receive written notice of any material changes that are made to the
project after application submittal. Material changes include but are not limited to
changes or alterations regarding architectural design, supportive services, development
team, lead developer or joint developer structure, ownership, financing structure,
supportive services, cash flow, operating subsidies, or changes in development budget
line items that show an increase that exceeds 10%. Changes made or proposed to scored
items will result in applications being re-scored and then evaluated relative to other
NOFA Round 28 15 November 2022
applications and may change funding decisions, including rescinding committed funds in
favor of another project. Applicants must request and receive the LACDA’s written
approval for any material changes. If the applicant undertakes material changes without
approval, the LACDA reserves the right, in its sole discretion, to withdraw or rescind any
funding commitment.
When a material change is made after application evaluation, a fee of $5,000
(Administrative Fee) is due and payable to the LACDA upon submittal of the material
change notification to the LACDA. This Administrative Fee covers the costs related to the
LACDA’s review of the proposed project. If costs exceed the $5,000 Administrative Fee,
the balance owed must be paid upon written notification from the LACDA. Any remaining
funds will be used for administration costs for the continued review and administration of
the proposed project.
4.3.4 CHANGES TO STANDARD LOAN DOCUMENTS
The LACDA strictly limits changes to the standard loan agreement and related
documents. Only the sections identified in the “No Changes” letter, which accompanies
the initial draft loan documents, may be modified. Submission of an application assumes
the applicant agrees to the standard loan terms and conditions. The LACDA does not
have authority to agree to pay attorneys’ fees and expenses and will not incorporate any
language regarding this matter in the loan documents. Applicants may request a copy of
the standard loan documents from the LACDA.
If modifications to the loan documents are requested by the project sponsor, a non-
refundable deposit of $5,000 will be due upon written notification to the LACDA of the
requested modification. The project sponsor will be charged all costs incurred by the
LACDA. If the costs exceed $5,000, the balance owed must be paid prior to the execution
of the loan agreement.
If changes and modifications are requested in the loan documents, the LACDA reserves
the right to require additional documents, actions, and any other information from
applicants and related parties in order to evaluate the requested changes, including but
not limited to, legal opinions from the project sponsor’s attorneys covering such topics as
the LACDA considers appropriate, such as an opinion that each change requested does
not affect the validity or enforceability of the loan documents by the LACDA or the rights
of the LACDA to realize on the collateral, guaranties, and indemnities given in connection
with the loan documents.
Applicants are advised that requests for changes and modifications to the standard loan
documents may be circulated to third parties for review and input, which may delay
completion of loan documents.
The LACDA is transitioning to loan documents that will not allow for any changes beyond
project specific information. Awardees will be notified upon implementation.
4.3.5 UNINCORPORATED LOS ANGELES COUNTY PROJECT FEE WAIVERS
For Unincorporated Los Angeles County area projects sponsored by non-profit
developers receiving funding through this NOFA, the LACDA will provide a letter upon
NOFA Round 28 16 November 2022
written request to waive fees at the Los Angeles County Departments of Regional
Planning (DRP) and Public Works (DPW), consistent with Los Angeles County Code.
The DRP letter will provide a waiver of entitlement fees and case expediting. The DPW
letter will provide a waiver of Building and Safety fees and expedited review of
construction documents. Fees previously paid by applicants will not be reimbursed.
Please note that fee waivers will trigger California prevailing wage requirements.
5 SCORING AND EVALUATION CRITERIA
Applications that pass Threshold Review will be scored according to the scoring matrix
provided in the Application Scoring Criteria Summary table included in this scoring and
evaluation criteria section. Only projects that meet or exceed minimum development team
experience will be eligible for funding consideration.
Available funding will be prioritized and awarded through a two tier system. Tier 1 projects
will be first priority and will include projects that are located in jurisdictions that did not
receive a direct allocation of American Rescue Plan Act (ARPA) funds. Once all eligible
projects in Tier 1 are funded, if available funds remain, Tier 2 projects will be considered
for funding. Tier 2 projects are those projects proposed in jurisdictions that received a
direct allocation of ARPA funds.
Unless there are no other available projects to fund, an applicant cannot be awarded
funding for more than two projects through this NOFA, regardless of scoring. Despite
project scoring, the LACDA reserves the right to remove a project from funding
consideration if the per unit cost exceeds 125% of the average costs shown in other
applications.
In the event that there are insufficient funds to support all applications and project scoring
and evaluation cannot differentiate between the final two projects, a funding
recommendation will be based on the project that scores the highest in meeting County
funding priorities. If the projects are still tied, the final tiebreaker will be based on the
greater percentage of homeless units in a project.
APPLICATION SCORING SUMMARY (MORE DETAIL FOUND IN SECTIONS 5.1 – 5.6)
Category
Max.
Points
Scoring
Financing
Committed Permanent Public Funds
60
Three (3) points will be awarded for
every one percent (1%) of total
development cost financed with
committed public funds, up to a
maximum of 60 points.
Projects in unincorporated Los Angeles
County or those using County-owned
land receive full points.
Committed Rental Subsidies for Special Needs
Units
30
Projects in unincorporated LA County or
LACDA Section 8 participating
NOFA Round 28 17 November 2022
5.1 FINANCING
5.1.1 COMMITTED PERMANENT PUBLIC FUNDS
▪ Projects located in Unincorporated Los Angeles County, or projects that include
County-owned land will receive full points in this section.
▪ Points will be awarded based on non-LACDA permanent public funds committed
to the project. Funding will be considered committed if a commitment letter from
jurisdiction that are applying for rental
assistance through this NOFA will
receive full points.
Development Team
Developer Experience – Affordable
50
See Section 5.2 for point allocation.
Certified Sponsor – Equity Points
10
Managing GP Experience – Special Needs
25
Certified Sponsor – Equity Points
10
PM Experience – Special Needs
45
Certified Sponsor – Equity Points
10
Architect Experience
25
Certified Sponsor – Equity Points
10
Geography
Unincorporated Los Angeles County projects and
projects developed on County-owned land
100 or
75
Incorporated jurisdictions outside of the City of
Los Angeles
Readiness
All other project funding is committed
75
NOFA funds and/or tax credits is/are the
only remaining funding needed.
Entitlements for project are complete, or project
can be developed by-right
75
Evidenced by completed entitlements or
a zoning verification letter.
County Priorities
The project is selected by the County’s
Affordable Housing and Sustainable
Communities workgroup or the project received
tangible County support through capital funding
150
Tangible County support does not
include prior NOFA funding.
Project size - 1 point for each affordable
housing unit in the project
65
Excludes units reserved for the onsite
manager.
Special Needs project - Housing Type
100
The project provides either 49% of
project units or 50 units that are reserved
for a Special Needs population (excludes
manager’s unit).
Equity Points
COVID-19 Vulnerability & Recovery
60
Tenant Vulnerability Index
50
Concentrated Disadvantage
50
Total Project Points
800
Total Equity Points
200
Maximum Application Points
1,000
NOFA Round 28 18 November 2022
the agency’s Executive Director or other decision-making authority is included with
the NOFA application.
▪ Three (3) points will be awarded for every one percent (1%) of total development
cost financed with committed public funds, up to a maximum of 60 points. For
example, where non-LACDA public funds equal 15% of total development cost,
the project would receive 45 points.
5.1.2 COMMITTED RENTAL ASSISTANCE FOR SPECIAL NEEDS UNITS
▪ Projects located in Unincorporated Los Angeles County, or an LACDA participating
jurisdiction under the Section 8 program that are applying for rental assistance
through this NOFA will receive full points.
▪ Three (3) points will be awarded for every five percent (5%) of Special Needs units
with committed rental subsidy, up to a maximum of 30 points. Points will be
awarded based on rental assistance committed to the project at the time of NOFA
application. Rental assistance will be considered committed if a commitment letter
from the agency’s Executive Director or other decision-making authority is included
with the NOFA application.
5.2 DEVELOPMENT TEAM
Eligible applicants include nonprofit and for-profit organizations, limited liability
companies, limited partnerships, public agencies, local jurisdictions, community land
trusts, and joint ventures among these entities.
All applicants must include the following team members and meet the following minimum
criteria. If team members do not meet the minimum criteria, the project will not be eligible
for funding and/or rental assistance:
5.2.1 DEVELOPER EXPERIENCE
The applicant team must include a developer or turnkey builder with adequate financial
capacity and a successful track record of developing projects serving similar tenant
populations and of similar scale as the proposed project. The developer must have
completed (secured Certificate of Occupancy) a minimum of three (3) affordable
multifamily rental housing projects and meet experience requirements listed in this NOFA
to qualify.
Points will be awarded based on the experience of either the Lead or Joint Developer with
affordable, rent-restricted, and special needs projects. Qualifying projects must be in
operation for over three (3) years. If an applicant seeks points for projects previously
owned by the Developer, the ending date of ownership or participation in the project must
be no more than 10 years from the NOFA application deadline. Points are awarded as
follows:
▪ 3-6 projects in service more than 3 years = 30 points
▪ 7 or more projects in service more than 3 years = 50 points
Qualifying projects must be affordable, mixed-population, or special needs multifamily
rental developments greater than 10 units in size and subject to a recorded regulatory
agreement. The Lead or Joint Developer entity that is receiving experience points must
NOFA Round 28 19 November 2022
be identified in the application. Applicants shall not use a partnership name, or other
designations in the application materials.
If the project lists co-Developers, experience points will be awarded based on the most
experienced member.
5.2.2 GENERAL PARTNER EXPERIENCE
Qualifying projects must be in operation for over three (3) years. If an applicant seeks
points for projects previously owned by a General Partner, the ending date of ownership
or participation in the project must be no more than 10 years prior to the application
deadline. Points will be awarded based on experience with affordable, rent-restricted
projects, as follows:
▪ 3 projects in service more than 3 years = 15 points
▪ 4 or more projects in service more than 3 years = 25 points
Qualifying projects must be affordable multifamily rental developments greater than 10
units in size and subject to a recorded regulatory agreement. To qualify for points, a
project must restrict at least 10% of the units to a Special Needs or affordable population,
with the restriction reflected in a recorded regulatory agreement.
5.2.3 PROPERTY MANAGEMENT EXPERIENCE - SPECIAL NEEDS
The applicant team must include property management staff with experience in managing
at least two (2) projects with similar tenant populations, as determined by the LACDA is
its sole discretion, and of similar scale as the proposed project to qualify. The property
manager may be the applicant’s own personnel, or a third-party contractor. For scoring
purposes, qualifying projects must be over 10 units in size and dedicate at least 10% of
its units to an eligible Special Needs population, with the restriction reflected in a recorded
regulatory agreement.
Points will be awarded based on the experience of the Property Management Company
with affordable rent-restricted projects that include Special Needs units, as follows:
▪ 2-3 Special Needs projects managed over 3 years = 30 points
▪ 4 or more Special Needs projects managed over 3 years = 45 points
5.2.4 ARCHITECT EXPERIENCE
The project’s architect of record must be licensed in the State of California and must have
completed at least two (2) affordable multifamily rental housing projects, or one (1)
LACDA-funded affordable multifamily rental housing project of the type currently being
proposed (new construction or rehabilitation). To qualify, projects must be multifamily
rental affordable housing developments of over 10 units that are subject to a recorded
regulatory agreement. Experience points will only be awarded for projects of the type
proposed. For example, if a proposed project is new construction, only new construction
projects may be used to evidence experience.
Points will be awarded based on the experience of the Architect with affordable, rent-
restricted projects of the type proposed in the application, as follows:
▪ 2-4 projects = 12 points
▪ 5-9 projects = 18 points
NOFA Round 28 20 November 2022
▪ 10 or more projects = 25 points
DEVELOPMENT TEAM EXPERIENCE SUMMARY
No. of Projects
Available Points
Developer – Affordable
0-2
Ineligible
3-6
30
7+
50
General Partner
0-2
Ineligible
3
15
4+
25
Property Management – Special Needs
0-1
Ineligible
2-3
30
4+
45
Architect
0-1*
Ineligible
2-4
12
5-9
18
10+
25
*One (1) LACDA-funded affordable multifamily rental project is eligible.
5.2.5 DEVELOPMENT TEAM EQUITY POINTS
In addition to development team experience, developers, managing general partners,
property management companies, and architects will be scored based on certification in
one of the below programs. Certification is performed by the County of Los Angeles
Department of Economic Opportunity and certification information is available at
https://www.lacda.org/affordable-housing/multifamily-rental-housing-nofa.
Local Small Business Enterprise Program (LSBE): Los Angeles County uses the same
criteria to define local small businesses as the State of California’s Department of General
Services (DGS). Qualifying businesses must:
▪ Be independently owned and operated
▪ Not be dominant in its field of operation
▪ Have its main office in Los Angeles County for at least the last 12 months
▪ Have owners (officers in the case of a corporation) who live in California
▪ With its affiliates, be either:
o A business with 100 or fewer employees and an average annual gross
receipts of $15 million or less over the last three years.
o A manufacturer with 100 or fewer employees.
Disabled Veteran Business Enterprise Program (DVBE): Designed to enhance the
purchasing and contracting opportunities for businesses owned by disabled veterans. To
qualify, a business must be certified by one of these departments:
▪ The U.S. Department of Veterans Affairs (VA), which certifies a business as a
Service Disabled Veteran Owned Small Business (SDVOSB).
NOFA Round 28 21 November 2022
▪ State of California, Department of General Services (DGS), which certifies a
business as a Disabled Veteran Business Enterprise (DVBE).
Social Enterprise Program (SE): Designed to increase contracting opportunities for those
business enterprises whose primary purpose is to enhance Los Angeles County through
economic, social, and environmental sustainability. Businesses may qualify for
certification if the principal place of business is located in Los Angeles County, or if a
major office is located in Los Angeles County; and meet any one of the following criteria:
▪ Has been in operation for at least one (1) year providing transitional jobs, including
access to supportive services to a transitional workforce employing at least 51%
of a transitional workforce
▪ Is certified as a B Corporation by B Labs or is incorporated as a Benefit or Social
Purpose Corporation with the State of California; or
▪ Is certified Green by a city government located within Los Angeles County; or
▪ A business whose primary purpose is the common good as demonstrated through
a published mission statement and whose principal business activity is directly
related to accomplishing that stated social mission.
Community Business Enterprise Program (CBE): To be eligible, private sector prime
contractors and subcontractors must meet certain contracting goals in order to ensure
they are giving adequate business opportunities to women, minorities, disabled veterans,
and disadvantaged businesses. To qualify, a business must be certified as any one of the
following:
▪ Minority Business Enterprise (MBE)
▪ Women Business Enterprise (WBE)
▪ Disadvantaged Business Enterprise (DBE)
▪ Disabled Veteran Business Enterprise (DVBE)
5.3 GEOGRAPHY
Projects will be awarded points based on the location of the property, as follows:
▪ Projects located in Unincorporated Los Angeles County and projects developed
on County-owned land (regardless of jurisdiction) will be awarded 100 points.
▪ Projects located in incorporated jurisdictions outside of the City of Los Angeles will
be awarded 75 points.
5.4 COUNTY PRIORITIES
Projects will be awarded points based on meeting County housing priorities, as follows:
▪ Projects that are selected by the County’s Affordable Housing and Sustainable
Communities (AHSC) workgroup, or projects that received capital funding from a
LA County agency through a Request for Proposals or another solicitation.
Projects meeting these criteria will be awarded 150 points.
o The LACDA will confirm the selected projects with the AHSC workgroup.
▪ Project size - 1 point will be awarded for each affordable housing unit in the project,
which includes both special needs and general affordable units, but excludes
manager’s units. The maximum score related to project size is 65 points.
NOFA Round 28 22 November 2022
5.5 HOUSING TYPE – SPECIAL NEEDS PROJECT
▪ Projects that reserve 49% or more of the total units or 50 units (excluding any
manager’s unit) for a Special Needs population will be awarded 100 points.
5.6 GEOGRAPHY-BASED EQUITY POINTS
Projects will be awarded points based on the following Equity Explorer Indices:
▪ COVID 19 Vulnerability & Recovery Index
This Index uses census data to identify communities most in need of pandemic
and economic relief interventions using indicators that assess risk factors for
COVID-19 infection, vulnerability to severe outcomes if infected, and ability to
recover from the health, economic, and social impacts of the pandemic. The Index
includes COVID-19-related risk, severity, and recovery need indicators that
stratifies County cities and communities into five need tiers, ranging from highest
to lowest need. Projects can score up to 60 points.
▪ Tenant Vulnerability Index
This Index is a measure of the vulnerability of persons to problems that may make
their rental housing unaffordable, inappropriate, or insecure. The Index considers
tenant income, rent burden, ethnicity, age, immigration status, spoken language,
single parent households, family size, and rental history. Projects can score up to
50 points.
▪ Concentrated Disadvantage
This Index is calculated from five Census variables: 1) Percent of individuals below
the poverty line, 2) Percent of individuals receiving public assistance, 3) Percent
female-headed households, 4) Percent unemployed, and 5) Percent less than age
18. Projects can score 50 points.
6 UNDERWRITING
6.1 FINANCIAL FEASIBILITY
Proposed projects must demonstrate financial feasibility for both development and
operations, assuming the LACDA’s underwriting standards that are included in this NOFA
as a Supplemental Document. For projects that contain commercial components, the
sources and uses of funds contained in the NOFA application must contain detailed line
items and apportioned amounts for commercial components that are separate from
residential components and shall not include tenant improvement costs. The income from
the residential portion of the project shall not be used to support the commercial portion
and the commercial income shall not support the residential portion of the project.
Applicants must provide an analysis of the anticipated commercial income and expenses.
Projects must use reasonable assumptions for tax credit pricing reasonably related to the
Los Angeles County market. The LACDA will not approve a project based on
assumptions that are unreasonable or inconsistent with current industry standards.
NOFA Round 28 23 November 2022
The LACDA’s underwriting guidelines, included as a Supplemental Document, will be
used to evaluate projects.
6.2 MINIMUM OPERATING EXPENSES
Projects must assume no less than the LACDA’s minimum operating expenses. The
LACDA will accept operating expenses below these minimums if justified with audited
financial statements for the last two (2) years for two (2) comparable properties currently
owned by the applicant. The properties must be similar in size, type, tenant population,
and location to the proposed project. The LACDA reserves the right to request additional
operating expense documentation during the underwriting phase. Projects that involve
more than one (1) tenant population may assume a pro rata blended operating expense
based on the LACDA’s minimums.
TABLE 6.2 - Minimum Operating Expenses
Project Size
Family
Units
Senior
Units
Special Needs
Units
Up to 50 units
$7,100
$6,200
$8,200
51+ units
$7,000
$6,100
$7,200
The LACDA’s operating expenses include property taxes but exclude the following:
1) Replacement/operating reserve deposits
2) Debt service
3) Supportive services
4) Asset management fee
5) Partnership management fee
6) Deferred developer fee
6.3 PARTNERSHIP MANAGEMENT FEE
For projects that are approved for funding after January 1, 2022, an annual Partnership
Management Fee of up to $25,000 may be paid from project cash flow, prior to residual
receipts payments. This fee must be substantiated prior to the closing of the loan by the
developer and cannot include charges for any office overhead for the development of the
project or project operating expenses. This fee may only be paid during the tax credit
compliance period and includes payments to both the general partner(s) and the limited
partner. Payments above this limit may be made from the borrower’s portion of residual
receipts. No annual escalations are permitted and unpaid Partnership Management Fees
cannot be accrued.
6.4 RENTAL CROSS SUBSIDY
Projects that propose to rely on a rental cross subsidy to support the expenses of special
needs units shall assume the following in demonstrating long-term operational feasibility:
▪ Rents for Special Needs units shall be set no higher than 30% of Supplemental
Security Income (SSI) limits. Rents may be set higher in the unusual circumstance
where a Special Needs population may earn higher incomes. Applicants shall
submit evidence to demonstrate the ability of the Special Needs population to pay
higher rents.
NOFA Round 28 24 November 2022
▪ Rents for non-Special Needs units shall be set no higher than 10% below market.
Applicants will be required to submit a market study confirming the assumptions
meet this threshold prior to receiving a commitment of funds.
6.5 FURNISHINGS FOR HOMELESS UNITS
Projects that propose to serve homeless households must include costs to furnish all such
units in the proposed development budget. At a minimum the project shall provide a bed
and dresser in each bedroom, a dining table with chairs, sofa, coffee table and a lamp.
6.6 ONSITE MANAGER
At a minimum, one (1) on-site manager is required for all projects. The on-site manager
must be full-time and reside at the project.
7 ADMINISTRATIVE PROVISIONS
7.1 GENERAL LACDA REQUIREMENTS
All projects receiving funding under this NOFA must adhere to the General LACDA
Requirements, which are made part of this NOFA as a Supplemental Document.
7.2 LACDA’S RIGHTS AND RESPONSIBILITIES
The LACDA reserves the right to change the requirements and policies described in this
NOFA at the LACDA’s sole discretion. The LACDA is responsible only for that which is
expressly stated in the NOFA documents, any authorized written addenda, and any
posted Questions and Answers. Such addenda shall be made available to each person
or organization via the LACDA’s NOFA application website. It is the responsibility of
applicants to ensure, prior to submission, that their application reflects the most recent
addenda information, program requirements, and policies. By submission of an
application, each applicant acknowledges receipt of all addenda, if any, that are emailed
or posted on the LACDA’s website. The LACDA is not responsible for and shall not be
bound by any representations otherwise made by any individual acting or purporting to
act on its behalf if those representations conflict with NOFA requirements.
7.3 LACDA’S DISCRETION
The LACDA reserves the right, in its sole discretion, to disqualify any application that is
incomplete, out of order, lacks required attachments, or contains other content errors,
inconsistencies, misrepresented information, or other deficiencies. Forms provided in the
NOFA application must be used and information provided otherwise may be disregarded
at the LACDA’s discretion. The LACDA reserves the right to waive disparities in a
proposal if the sum and substance of the application is present. Furthermore, the LACDA
reserves the right to terminate this NOFA at any time without prior notice.
7.4 COST OF APPLICATION PREPARATION
The cost of application preparation shall be borne by the applicant. In no event shall the
LACDA be liable for any expenses incurred in the preparation and submission of the
application.
NOFA Round 28 25 November 2022
7.5 APPLICATION IS PROPERTY OF THE LACDA
Once submitted, each application becomes the property of the LACDA and becomes a
public record. The LACDA is not liable for the public disclosure of any information
contained in an application. Any information that applicants do not wish to disclose to the
public must be clearly marked “confidential.” A blanket statement of confidentiality or the
marking of every page of the application as confidential shall not be deemed sufficient
notice of exception. Applicants must specifically label only those portions of the
application that are confidential in nature and notify the LACDA that confidential
information is included.
7.6 OTHER FUNDING APPLICATIONS BY NOFA APPLICANTS
The LACDA reserves the right to request any funding applications submitted to other
funding sources by NOFA applicants. Funding applications include all such requests for
financing associated with the proposed project. Failure to provide such information upon
request may result in loss of funding allocation, withholding of funds, or the issuance of a
noncompliance letter.
7.7 NONCOMPLIANT/DEBARRED CONTRACTORS
Applications may be withheld from funding consideration in the event that the applicant
(or any of its principals, or partners) is currently in arrears or delinquent in payment of
debt to the LACDA, deemed to be noncompliant with the requirements of any agreement
with the LACDA, or included on any County of Los Angeles, HUD, or other public agency’s
debarment list.
7.8 INSURANCE REQUIREMENTS
Applicants must document that they procure and maintain insurance against claims for
injuries to persons or damage to property that may arise from or in connection with the
performance of the work by the applicant, its agents, representatives, employees, or
subcontractors. Insurance is required for all General Partner entities and all insurance,
including all applicable endorsements are required to be final and approved by the
LACDA prior to closing. The LACDA’s Insurance Requirements are made part of this
NOFA as a Supplemental Document.
7.9 PET-FRIENDLY HOUSING ORDINANCE
The County of Los Angeles Pet-Friendly Housing Ordinance authorizes tenants to have
at least one pet in a rental unit in new or rehabilitated multifamily housing developments
financed, in whole or in part, by the County and/or the LACDA on or after February 6,
2020, consistent with all federal and State laws and further requires landlords to maintain
and provide a copy of pet policies to tenants. Projects funded through this NOFA are
required to adhere to this ordinance.
7.10 SECTION 3
All projects receiving an award of HOME funds must comply with HUD’s Section 3
requirements. The purpose of Section 3 is to ensure that employment, training,
contracting, and other economic opportunities generated by financial assistance from
HUD shall, to the greatest extent feasible, and consistent with existing federal, state, and
local laws and regulations, be directed to low- and very low-income persons, particularly
NOFA Round 28 26 November 2022
those who are recipients of government assistance for housing, and to business concerns
that provide economic opportunities to low- and very low-income persons. Applicants
requesting HOME funds must provide a written strategy demonstrating understanding of
the Section 3 requirements and detailing how they will ensure that, when employment or
contracting opportunities are generated because the project or activity necessitates the
employment of additional persons or the award of contracts for work, preference shall be
given to low- and very low-income persons or business concerns in the neighborhood.
“Neighborhood” is defined in 24 CFR Part 92, Subpart A as “a geographic location
designated in comprehensive plans, ordinances, or other local documents as a
neighborhood, village, or similar geographical designation that is within the boundary but
does not encompass the entire area of a unit of general local government.”
7.11 PREVAILING WAGES
7.11.1 STATE PREVAILING WAGES
Section 1720 of the California Labor Code requires payment of California State Prevailing
Wages for certain projects. Payment of State Prevailing Wages is assumed, unless an
attorney’s opinion is submitted as part of the NOFA application stating that the project is
exempt from the payment of State Prevailing Wages.
7.11.2 DAVIS-BACON FEDERAL WAGES
The Davis-Bacon Act of 1931, as amended, requires payment of Davis-Bacon Wages in
HOME-funded projects with 12 or more HOME-Assisted Units, or in projects receiving
nine (9) or more PBVs or PBVASH Vouchers. In addition, contractors for such projects
are required to file payroll reports and to meet other administrative and labor standards
requirements.
7.12 GENERAL CONTRACTOR SELECTION AND CONSTRUCTION
CONTRACTS
When seeking a General Contractor, applicants must solicit a minimum of three (3) bids
for comparison of pricing and services offered. General Contractors working on funded
projects must use a Guaranteed Maximum Price Contract (GMAX) wherein the basis for
payment is the cost of the work plus a fee. The construction contract shall include an
overall cost limitation acceptable under the LACDA’s underwriting criteria. All construction
contracts shall clearly state that the sharing of cost savings above and beyond the
maximum General Conditions, Overhead and Profit allowed by the LACDA’s underwriting
criteria are not allowed.
Construction contracts shall not include costs associated with tenant improvements for
commercial space associated with the project. Project budgets shall not include tenant
improvement costs and project funds (regardless of source) shall not be used for
commercial tenant improvement costs.
7.13 CONSTRUCTION SIGNAGE
Projects receiving funding through this NOFA must acknowledge this assistance with
signage at the site. Construction signage must be approved by the LACDA prior to
placement at the project site. If any financial assistance from HUD is included in any
project, the construction sign must also acknowledge this HUD assistance.
NOFA Round 28 27 November 2022
7.14 FAIR HOUSING, ACCESSIBILITY REQUIREMENTS, MARKETING, AND
LEASE-UP
All projects receiving funding under this NOFA must adhere to the LACDA’s Fair Housing
and Accessibility Requirements included as a Supplemental Document with this NOFA.
The project must be constructed and maintained in accordance with all applicable
accessibility standards. Special Needs units must be distributed throughout the project
and cannot be aggregated on certain floors or set aside only in specified areas of a
building.
Projects that propose or implement local preferences will not be eligible for funding. An
exception may be made for projects in a jurisdiction with its own Continuum of Care.
7.15 DENSITY BONUS UNITS
The LACDA will issue density bonus covenants for Unincorporated Los Angeles projects
that have received a density bonus through DRP. Any density bonus covenant and
agreement issued by the LACDA will not be subordinated to other project financing.
Applicants are encouraged to discuss this with other project finance partners early in the
project lifecycle.
7.16 WITHHOLDING OF FUNDS UNTIL PERMANENT FINANCING
The LACDA will withhold 1.5% of the loan amount, up to a maximum of $100,000, until
conversion to permanent financing is complete. Any withheld loan amount will only be
released upon the full satisfaction of all Permanent Financing Conditions, as identified in
the LACDA’s loan agreement.
7.17 COMPLIANCE WITH ALL CONDITIONS PRIOR TO LOAN CLOSING
All requirements and conditions set forth in this NOFA and the loan documents must be
satisfied, as determined by the LACDA, in its sole discretion, prior to disbursement of any
loan funds. Applicants will be required to address all deficiencies identified during the
application scoring process prior to release of loan funds. The LACDA may withhold all
or part of its loan funds until all deficiencies are addressed, to the reasonable satisfaction
of staff. Applicants will also be required to address all conditions of funding, if any are
identified by the LACDA’s Loan Committee.
The applicant represents and warrants that all materials and information provided in
connection with this NOFA are true and correct at all times, from the date of submission
to the LACDA and throughout the award process, loan closing, and term of the loan. By
way of example, but not by limitation, some of the conditions, representations, or
warranties that must be at all times true include:
▪ Applicant must be in good standing and have the authority and organizational
power to enter into the documents, agreements, and certifications related to the
NOFA and any resulting loan.
▪ Applicant and its partners, principals, or affiliates must not be or include any
persons or companies who are in non-compliance with the requirements of any
agreement with the LACDA or be listed on any County of Los Angeles or HUD
debarment lists.
NOFA Round 28 28 November 2022
▪ Applicant and its partners, principals or affiliates cannot be in default or in violation
of any of its obligations under the NOFA, or any loan documents, contracts,
agreements, court orders or laws, and submitting for the NOFA and providing the
information and entering into the agreements contemplated by the NOFA will not
cause a default or violation.
▪ Applicant’s financial condition shall not have declined to the point of insolvency.
▪ There shall be no change in the ownership, management, or control (direct or
indirect) of applicant, which is not promptly disclosed to and approved by the
LACDA.
▪ Applicant and its partners, principals, or affiliates shall not be subject to any
binding, agreement, suit, order, or law which would be violated if applicant
proceeds with the transactions contemplated by the NOFA, or the loan documents.
▪ There shall be no discovery of any preexisting event or circumstances and there
shall be no material adverse change in the condition or suitability of the project
site, the feasibility of the project, completion date, or the cost of the project that is
not promptly disclosed to and approved by the LACDA.
▪ Applicant and its partners, principals or affiliates shall not be subject to any
litigation, suit, arbitration, or administrative proceeding that may adversely affect
the ability of applicant to perform any of its obligations under or contemplated by
the NOFA.
▪ Once met, the project shall continue to meet all requirements of this NOFA.
7.18 EVENTS OF DEFAULT
Under the terms of the documents for any loan made pursuant to this NOFA, the following
events may cause the LACDA to declare the applicant in default:
▪ Unfunded project or operating cost overruns.
▪ Breach of covenants, including affordability requirements.
▪ Failure to maintain the property.
▪ Failure to make loan payments.
▪ Failure to meet all accessibility requirements.
▪ Failure to submit audited financial statements by a certified public accountant
and the borrower.
▪ Failure to abide by prevailing wage requirements (as applicable).
▪ Failure to maintain appropriate insurance coverage.
▪ Failure to reasonably abide by project and/or construction schedules.
▪ Bankruptcy, dissolution, or insolvency of the borrower or general partner of
borrower's partnership.
▪ Appointment of a receiver or trustee or general assignment for the benefit of
creditors.
This list is representative and not all-inclusive.
7.19 LOCAL AND TARGETED WORKER HIRING PROGRAM
All projects must utilize best efforts to achieve the Local Resident hire goal of 30 percent
of total California construction labor hours and a Targeted Worker hire goal of 10 percent
of total California construction labor hours. Hours worked by a Targeted Worker who is
also a Local Resident may be applied towards the 30 percent Local Resident hire goal.
NOFA Round 28 29 November 2022
The Contractor shall ensure posting a wide array of its construction job advertisements
and/or seeking the assistance of a community service provider organization, if necessary,
to ensure the best-efforts hiring requirement provided for Local Workers is met in
accordance with this Policy.
Exceptions for projects in jurisdictions enforcing their own local hiring policy, and for
projects with federal or State funding prohibitions on geographic preferences will be
determined on a case-by-case basis by the Los Angeles County Chief Executive Office
(CEO), in consultation with the County Board of Supervisors Offices and County Counsel,
and the exemption shall be stated in the corresponding Board letter.
Affordable housing projects financed with federal funds subject to 24 CFR Part 135 will
follow local hiring and training guidelines promulgated through Section 3 of the Housing
and Urban Development Act of 1968 (12 U.S.C. 1701u) (Section 3). The purpose of
Section 3 is to ensure that employment and other economic opportunities generated by
certain Housing and Urban Development (HUD) financial assistance can be directed to
low- and very low-income persons, particularly those who are recipients of government
assistance for housing, and to business concerns which provide economic opportunities
to low- and very low-income persons.
LOCAL RESIDENT
Local Resident hiring uses a two-tiered preference system.
A Tier I Qualified Local Resident is defined as a County resident whose primary
residency is:
1) Within five (5) miles of the proposed project site; and
2) Is within a qualifying Zip Code (see definition below). If a qualifying Zip Code is
partially located within the 5-mile radius, then the entire Zip Code is considered as
Tier I Zip Code, and workers living in that entire Zip Code area may qualify as Tier
I hire.
A Tier 2 Qualified Local Resident is defined as a County resident whose primary
residency is:
1) Within a qualifying Zip code; and
2) That qualifying Zip Code is beyond five (5) miles of the proposed project site.
A qualifying Zip Code is defined as a Zip Code within the County of Los Angeles, where
either:
1) The average percentage of households living below 200 percent of the Federal
Poverty Level (FPL) for that individual’s primary residency’s Zip Code is greater
than the County average for such households; or
2) The Zip Code is one of 11 additional Zip Codes determined by the Board on
October 6, 2011 to be a Zip Code where at least 30 percent of the population is
living in poverty, and with an unemployment rate of at least 150 percent of the
national average.
NOFA Round 28 30 November 2022
A Local Resident is defined as an individual living within the Tier 1 or Tier 2 ZIP Codes of
Los Angeles County. Before employing worker(s) from Tier 2 ZIP Codes, the available
pool of local residents whose primary place of residence is within Tier 1 ZIP Codes must
first be exhausted.
TARGETED WORKER
A Targeted Worker is an individual who is both a County resident and who faces one or
more of the following barriers to employment:
1. Has a documented annual income at or below 100 percent of the Federal Poverty
Level;
2. Has no high school diploma or GED;
3. Has a history of involvement with the criminal justice system;
4. Is experiencing protracted unemployment (receiving unemployment benefits for
at least 6 months);
5. Is a current recipient of government cash or food assistance benefits;
6. Is homeless or has been homeless within the last year;
7. Is a custodial single parent;
8. Is a former foster youth;
9. Is a veteran, or is the eligible spouse of a veteran of the United States armed
forces, under Section 2(a) of the Jobs for Veterans Act (38 U.S.C.421 5[a});
10. Is an eligible migrant and seasonal farmworker;
11. Is currently an English language learner;
12. Is an older Individual (55+);
13. Is disabled; or
14. Is an individual with a low level of literacy.
LOCAL AND TARGETED WORKER PROGRAM REQUIREMENTS
From time to time, the Local and Targeted Worker Hiring Program may be updated or
amended by the Los Angeles County Board of Supervisors and/or Chief Executive Office.
Projects are expected to adhere to the Local and Targeted Worker Hiring Program in
effect at the time of permitting. Reporting on progress with meeting program
requirements will be made monthly and will be a prerequisite to receipt of approval of
funds during each construction draw and permanent loan conversion.
The lead developer is required to facilitate the Local and Targeted Worker Hiring Program
and must provide evidence of outreach to Local Residents and Targeted Workers and
report on hiring activities monthly. The LACDA will condition the approval of construction
draws and release of funds at conversion to permanent financing on the submission of
monthly reports.
To demonstrate best efforts at achieving the designated hiring goals, the project’s lead
developer shall provide evidence of outreach efforts that shall include but not be limited
to:
▪ Advertising the project information and Local Resident and Targeted Worker hiring
goals, job fairs, and job opportunities via two separate notices in community
newspapers prior to the start of construction;
NOFA Round 28 31 November 2022
▪ Conducting outreach to organizations or programs such as:
o Local Workforce Investment Board and job centers;
o Area chamber(s) of commerce;
o Any local community colleges, trade and technical schools, and other
employment training programs;
o Labor organizations if union labor is used; and
o The local jurisdiction’s social services department.
▪ Conducting at least two job fairs at or near the job site;
▪ To the extent available, using the lead developer’s and general contractor social
media outlets and website to advertise the Local and Targeted Worker hiring
aspects of the project;
▪ The following resources may be used to connect contractors to workers meeting
the definition of a Local Worker or a Target Worker, should the contractor require
assistance. Additional Community Service Providers may be used by contractors
and subcontractors to identify local residents and Targeted Workers.
1. Los Angeles County Workforce Development, Aging, and Community
Services: https://wdacs.lacounty.gov/
2. LA Jobs: https://www.jobsla.orq/vosnetlDefault.aspx
3. Cal Jobs: https://www.caljobs.ca.gov/vosnet/Default.aspx
4. Helmets to Hardhats: https://helmetstohardhats.org/
5. America’s Job Center of California: https://www.ajcc.lacounty.gov/
As a result of the above outreach, project teams shall develop a list of qualified Local
Residents and Targeted Workers and shall draw from this list to the greatest extent
possible for job openings that occur throughout the life of the project.
The Local and Targeted Worker Hiring Program does not require the project to hire
personnel that are not qualified for available job openings, but instead seeks to provide
job opportunities to Local and Targeted Workers to the greatest extent possible.
8 DEFINITIONS
1. “Application” means a request for funds or project-based rental assistance that will be
used for costs associated with Assisted Units that will house an eligible target
population.
2. “Assisted Unit” means a residential housing unit that is subject to the rent, occupancy
and other restrictions specified in this NOFA as a result of the financial assistance
provided by the LACDA, either in the form of capital or rental subsidy.
3. “Coordinated Entry System” or “CES” means a centralized or coordinated process
developed pursuant to 24 CFR Section 578.7(a)(8), as that section read on May 1,
2016, designed to coordinate program participant intake, assessment, and provision
of referrals. A centralized or coordinated assessment system covers the geographic
area, is easily accessed by individuals and families seeking housing or services, is
well advertised, and includes a comprehensive and standardized assessment tool.
NOFA Round 28 32 November 2022
4. “CTCAC” means the California Tax Credit Allocation Committee.
5. “Developer” or “Applicant” or “Project Sponsor” means any individual, joint venture,
partnership, limited partnership, corporation, cooperative, local public entity, or any
combination thereof, certified by the LACDA as qualified to own, manage, and
rehabilitate a Multifamily Rental Supportive Housing Development. A Developer,
Applicant, or Project Sponsor may be organized for profit, limited profit, or be nonprofit,
and includes a limited partnership in which the Developer, Applicant, or Project
Sponsor or an affiliate of the Developer, Applicant, or Project Sponsor is a general
partner.
6. “Developmental Disability” means, as defined in section 102 of the Developmental
Disabilities Assistance and Bill of Rights Act of 2000 (42 U.S.C. 15002):
a. A severe, chronic disability of an individual that -
i. Is attributable to a mental or physical impairment or combination of
mental and physical impairments;
ii. Is manifested before the individual attains age 22;
iii. Is likely to continue indefinitely;
iv. Results in substantial functional limitations in three or more of the
following areas of major life activity:
1. Self-care;
2. Receptive and expressive language;
3. Learning;
4. Mobility;
5. Self-direction;
6. Capacity for independent living;
7. Economic self-sufficiency.
v. Reflects the individual's need for a combination and sequence of
special, interdisciplinary, or generic services, individualized
supports, or other forms of assistance that are of lifelong or extended
duration and are individually planned and coordinated.
b. An individual from birth to age nine (9), inclusive, who has a substantial
developmental delay or specific congenital or acquired condition, may be
considered to have a developmental disability without meeting three or
more of the criteria described in paragraphs (a)(i) through (v) of the
definition of “developmental disability” in this section if the individual, without
services and supports, has a high probability of meeting these criteria later
in life.
7. “Fiscal and Programmatic Compliance” includes but is not limited to timely submission
of requested financial documents; demonstrated provision of social and supportive
services; proof of all required insurance; no delinquent payments or no loans written
off as uncollectible; the timely submission of annual owner certification documents;
satisfactory monitoring findings during occupancy, tenant file review, housing quality
standards inspections; and labor compliance reviews. Included in this evaluation are
timely completion of projects, and timely correction of any building deficiency noted by
any governmental agency.
NOFA Round 28 33 November 2022
8. “Financial Feasibility”, and/or “Financially Feasible” means, for any Project for any
given period of time during the term of the loan, that the total operating income for
such Project for such period of time, plus funds released pursuant to the loan
agreement from the Project’s operating reserve account(s) during such period of time
is sufficient to:
a. Pay all current operating expenses for such Project for such period of time;
b. Pay all current mandatory debt service (excluding deferred interest) coming
due with respect to such Project for such period of time; and
c. Fully fund all required reserve accounts.
9. “HIV/AIDS” means a person with acquired immunodeficiency syndrome or related
diseases who is a low-income individual, as defined in this section, and the person's
family, per 24 CFR 574.
10. “HUD” means the federal Department of Housing and Urban Development.
11. “Homeless” means the definition used by HUD at the time of application and/or lease
up of an identified unit.
12. “Housing First” has the same meaning as in Welfare and Institutions Code Section
8255, including all of the core components listed therein.
13. “Multifamily” means a housing type where multiple separate housing units for
residential inhabitants are contained within one building or several buildings within
one complex, commonly referred to as an “apartment building”.
14. “Rent” means the same as “gross rent”, as defined in accordance with the Internal
Revenue Code (26 USC 42(g)(2)(B)). It includes all mandatory charges, other than
deposits paid by the tenant, for use and occupancy of an Assisted Unit, plus a utility
allowance established in accordance with TCAC regulations, if applicable. For Units
assisted under the Section 8 program or similar rental or operating subsidy program,
Rent includes only the tenant contribution portion of the contract rent.
15. “Scattered Site Housing” means a Rental Housing Development that includes
noncontiguous parcels. The requirement of this shall be interpreted in a manner
consistent with the requirements of 25 CCR Section 8303 (b) pertaining to Scattered
Site Housing. Scattered Site Housing is permitted provided that the following
conditions are all satisfied prior to the closing of the loan:
a. All Project sites in the Rental Housing Development must have a single owner
and property manager;
b. All Project sites shall be governed by one set of program documents, which
among other things, shall include similar tenant selection criteria, serve similar
tenant populations and have similar Rent and income restrictions;
c. If the rental housing development has project-based rental assistance, there
shall only be one contract for all sites in the Project;
d. There may be at most one lender with required payments senior to the
LACDA’s loan;
e. There must be a single audit and annual report that covers all Project sites;
NOFA Round 28 34 November 2022
f. The sponsor’s obligations must be secured by all Project sites; and
g. The LACDA must be named on insurance policies covering all Project sites,
with coverage meeting LACDA requirements.
16. “SSI/SSP” means the California Department of Social Services’ Supplemental
Security Income/State Supplementary Payment pursuant to Welfare and Institutions
Code Section 12000 et seq.
17. “Survivors of Domestic Violence/Human Trafficking” is a survivor of domestic violence,
pursuant to California Penal Code 13700 who has experienced abuse committed by
an intimate partner. Human trafficking is defined as a person who has been subjected
to a “severe form of trafficking in persons,” which, as defined in 22 U.S.C. § 7102(11),
means:
a. sex trafficking in which a commercial sex act is induced by force, fraud, or
coercion, or in which the person induced to perform such an act has not
attained 18 years of age; or
b. the recruitment, harboring, transportation, provision, or obtaining of a
person for labor or services through the use of force, fraud, or coercion for
the purpose of subjection to involuntary servitude, peonage, debt bondage,
or slavery.
18. “Total Development Cost” means the sum of all eligible development costs associated
with the acquisition, design, construction, or rehabilitation.
19. “Transition Age Youth” means unaccompanied youth under age 25, including youth
with children who are leaving the care of a government system, including foster care,
mental health, or incarceration.
20. “Unit” means a residential unit that is used as a primary residence by its occupants,
including individual units within Rental Housing Developments, including Shared
Housing.
9 SIGNIFICANT CHANGES
The LACDA’s NOFA is modified each year to account for changes in the housing industry,
modifications to California Tax Credit Allocation Committee regulations, and/or changes
in County or LACDA policies, funding priorities, or goals. The following items highlight
the significant changes to the NOFA when compared to the last NOFA issuance. See
specific NOFA sections for full information. Because the information presented below
does not include all of the modifications to the NOFA, applicant teams are advised to read
and consider the entire document before applying.
3.13 Available Rental Assistance
At the sole discretion of the Executive Director, the LACDA will consider providing
PBVs/PBVASH Vouchers for projects in jurisdictions in which the local Housing Authority
NOFA Round 28 35 November 2022
has reached the statutory cap for project based rental assistance, as evidenced by the
issuance of Housing Assistance Payments (HAP) Contracts. The LACDA will refer to
HUD sources to confirm PBV/PBVASH Voucher issuance status for such jurisdictions and
a letter from the local Housing Authority also confirming this status will be required. The
local Housing Authority will need to enter into a Memorandum of Understanding with the
LACDA before the LACDA can issue vouchers for project-based rental assistance in the
local Housing Authority’s jurisdiction.
3.3.1 Minimum Project Requirements
Tenant screening standards for the special needs units, including criminal background,
housing history, and financial screening criteria (e.g., rental or other debt), must not be
stricter than those used by the Public Housing Authority (PHA) that has jurisdiction over
the location of the project site.
5 Scoring and Evaluation Criteria
Funding for NOFA 28 was enabled through the County’s administration of American
Rescue Plan Act (ARPA) funds, therefore, applications will be scored in two tiers. Tier 1
will be for projects located in jurisdictions that did not receive a direct allocation of
American Rescue Plan Act (ARPA) funds from the federal government. Tier 2 will be for
projects located in jurisdictions that received ARPA funds. Funds will be prioritized for
Tier 1 projects. Tier 2 projects will be considered for funding if sufficient funds remain
after Tier 1 projects have been awarded.
5.2.5 Development Team Equity Points
Development Team members (developer, general partner, property management agent,
and architect) that have an active LSBE, DVBE, SE, or CBE certification will be awarded
equity points. For more information, you can visit the County of Los Angeles Certification
Portal.
5.4 County Priorities
Projects that are selected by the County’s Affordable Housing and Sustainable
Communities workgroup or have received tangible County Support with capital funding
through a Request for Proposals or another LACDA or Los Angeles County solicitation
will receive 150 points. The LACDA will confirm the selected projects with the AHSC
workgroup.
5.6 Geography-Based Equity Points
Projects will be awarded points will be awarded to projects based on their location relative
to the following Equity Explorer Indexes:
▪ COVID 19 Vulnerability & Recovery Index
▪ Tenant Vulnerability Index
▪ Concentrated Disadvantage
The NOFA 28 Equity Map can be used to identify a project’s tier and equity points based
on the Equity Explorer Indices.
Developer Fee for Phased Projects
NOFA Round 28 36 November 2022
The LACDA’s underwriting criteria are updated to include the following restriction related
to allowable developer fee. The maximum developer fee for projects, regardless of tax
credit type, that are developed as multiple simultaneous phases or multiple phases over
time will be subject to an overall limit on total allowable developer fee. For purposes of
this limitation, “simultaneous” refers to projects consisting of a single building; projects on
the same parcel or parcels within ¼ mile of each other that were split into more than one
project for financing purposes; projects on the same parcel or on parcels within ¼ mile of
each other and with construction start dates within six months of each other, or with
completion dates that are within six months of each other; or multiple phases of a project
on land owned by the County or the LACDA.