Tier 1 FAQs
Tier 1 Project Solicitation Sept 16, 2021
The California Department of Housing and Community Development (HCD) has posted a Project Solicitation and Guidelines for the California Housing Accelerator Program. This document represents written comments the team received during the Application webinar held September 24, 2021, and questions received by the Accelerator email inbox, accelerator@hcd.ca.gov.
| Q&A Questions Log | HCD Comments/Recommendations |
|---|---|
| Is this a competitive process for all applications that are submitted in the round or does someone who applies early in the application period have a better chance as someone who applies at the end of the application period? | There is sufficient funding available to fund all complete applications submitted for project listed in Tier 1 of the Accelerator project tracker. Applications will be reviewed on an over-the-counter basis and complete applications that meet minimum threshold requirements are expected to be awarded funds. |
| Is an owner COSR an allowable expense? | The Accelerator program will follow all relevant TCAC regulations and guidance for allowable expenses. Please consult TCAC regulations. |
| For the borrowing entity, does the LP-1 need to be filed for the application? | An unfiled LP-1 document will be allowable in the Application, but will need to be filed prior to Standard Agreement execution. |
| Are electronic meetings acceptable for the Resolution? | Electronic meetings are acceptable, as long as all other required components of the resolution are in place. |
| Is there a sample resolution available for us to use now? | Sample resolutions will be available at the Accelerator webpage as soon as they are finalized by the Department. |
| Will HCD allow for additional funding if there are cost overruns outside of the control of the developer? | The Accelerator program is intended to fill the funding gap remaining from denial of tax credits and bonds. If a gap still remains, the Sponsor will be allowed to seek additional *debt* financing. |
| Will the deposit be refunded if we accept a September 2021 CDLAC award? | Deposits will be refunded is a project receives a CDLAC-TCAC allocation and returns an Accelerator award. |
| When you look at the increase in construction costs in accordance with CCCI, will you look at the increase since April since most projects would have received a budget from their contractor in April for a May CDLAC/TCAC App? | The index utilized to quantify costs increases does include increases during the 2021 calendar year. |
| You mentioned that loan forgiveness is not available if the Sponsor receives negative points in the last five years. Is that just for the project that receives Accelerator funds? Or for all sponsor projects? | The rule applies to all the Sponsor’s projects funded by Department. |
| If a project has multiple HCD awards with different sponsors, can the organization pick which HCD award to tie to the accelerator program? | Please include all relevant previous HCD awards made after January 1, 2018 in your Accelerator application. |
| If I have technical difficulties with the Accelerator application document or the application portal, do I email accelerator@hcd.ca.gov? | Yes, any technical questions or issues should be forwarded to the Accelerator inbox. |
| Do I need NEPA approval if my project has HUD-based Property-Based Voucher (PBV) rental assistance? | If the only other federal funding in the project are PBVs, NEPA will not be required, consistent with other HCD programs. |
| When I submit my application fee, what information do I need to add to the check? | When submitting your application fee, please include the project name and contract number of your Existing HCD Commitment. |
| Are enforceable funding commitments (EFCs) required for an Accelerator application? | Funding commitments are not required for your Accelerator application, but if funding is committed, you can attach documentation in the Additional Requirements section of the application. |
| Where do submit documentation for evidence of site control, local approvals and entitlements, and environmental? | In the online application portal, there is a section called “Additional Requirements” where you can upload those documents. |
| Will HCD use the same rent limits for the California Housing Accelerator as it uses in other programs for projects with tax credits, including the hold harmless and rent floor provisions applicable to tax credit projects? | Yes, HCD will use the same rent limits for the California Housing Accelerator as it uses in other programs for projects with tax credits, including the hold harmless and rent floor provisions applicable to tax credit projects. |