Housing Committee — Portland, ME
Date: 2020-02-12
Time: 17:30

HOUSING COMMITTEE

DATE: Wednesday, February 12, 2020
TIME: 5:30 PM
LOCATION: Room 209

 AGENDA

1. Review and accept Minutes of previous meeting held on January 9, 2020


 a. Draft Minutes of previous meeting held on January 9, 2020

2. Rental Housing Advisory Committee Policy Recommendation


 a. Rental Housing Advisory Committee Recommendation re: Rental Housing
 Application Fees

 Review and Recommendation to the City Council re: FY 2021 Housing
3.
 Program Budget
 This is an actionable item and public comment will be taken.

 a. Proposed FY21 Housing Program Budget

 Review and Recommendation to the City Council re: Renewal of the
4.
 Cumberland County HOME Consortium
 This is an actionable item and public comment will be taken.

 a. Memo re: Renewal of the Cumberland County HOME Consortium

 Review and Recommendation to the City Council re: 2020 Housing Trust
5.
 Fund Annual Plan
 This is an actionable item and public comment will be taken.

 a. Proposed 2020 Housing Trust Fund Annual Plan

 Review and Approval by the Committee to issue the 2020 Affordable
6.
 Housing Development Application
 This is an actionable item and public comment will be taken.

 a. Draft 2020 Affordable Housing Development Application




 389 Congress Street / www.portland.gov / tel, 207­874­8720 / tty, 207­874­8936 / fax, 207­756­8258
 Review and Approval by the Committee to issue the 2020 Affordable
7.
 Housing Tax Increment Financing Application
 This is an actionable item and public comment will be taken.

 a. Draft 2020 Affordable Housing TIF Application
8. Update on City­Owned Property


 a. Memo re: City­Owned Property
9. Review and Discussion of 2020 Work Plan


 a. Draft 2020 Housing Committee Work Plan


Next Meeting Date: March 4, 2020 at 5:30, City Hall Room 24, Joint Meeting with the Economic
Development Committee




City of Portland Commissions are not required to take public comment under FOAA and our Ordinance is
 silent regarding the duties of the Commission. The Commission has the discretion to not allow or allow
public comment during its meetings, including the authority to limit the duration of comments. Since the
 Commission makes recommendations to the City Council, public comment is available at that level.

HOUSING COMMITTEE

DATE: Wednesday, February 12, 2020
TIME: 5:30 PM
LOCATION: Room 209

 AGENDA

1. Review and accept Minutes of previous meeting held on January 9, 2020


 a. Draft Minutes of previous meeting held on January 9, 2020

2. Rental Housing Advisory Committee Policy Recommendation


 a. Rental Housing Advisory Committee Recommendation re: Rental Housing
 Application Fees

 Review and Recommendation to the City Council re: FY 2021 Housing
3.
 Program Budget
 This is an actionable item and public comment will be taken.

 a. Proposed FY21 Housing Program Budget

 Review and Recommendation to the City Council re: Renewal of the
4.
 Cumberland County HOME Consortium
 This is an actionable item and public comment will be taken.

 a. Memo re: Renewal of the Cumberland County HOME Consortium

 Review and Recommendation to the City Council re: 2020 Housing Trust
5.
 Fund Annual Plan
 This is an actionable item and public comment will be taken.

 a. Proposed 2020 Housing Trust Fund Annual Plan

 Review and Approval by the Committee to issue the 2020 Affordable
6.
 Housing Development Application
 This is an actionable item and public comment will be taken.

 a. Draft 2020 Affordable Housing Development Application




 389 Congress Street / www.portland.gov / tel, 207­874­8720 / tty, 207­874­8936 / fax, 207­756­8258
 Review and Approval by the Committee to issue the 2020 Affordable
7.
 Housing Tax Increment Financing Application
 This is an actionable item and public comment will be taken.

 a. Draft 2020 Affordable Housing TIF Application
8. Update on City­Owned Property


 a. Memo re: City­Owned Property
9. Review and Discussion of 2020 Work Plan


 a. Draft 2020 Housing Committee Work Plan


Next Meeting Date: March 4, 2020 at 5:30, City Hall Room 24, Joint Meeting with the Economic
Development Committee




City of Portland Commissions are not required to take public comment under FOAA and our Ordinance is
 silent regarding the duties of the Commission. The Commission has the discretion to not allow or allow
public comment during its meetings, including the authority to limit the duration of comments. Since the
 Commission makes recommendations to the City Council, public comment is available at that level.
 Housing Committee

 Minutes of January 9, 2020 Meeting

NOTE: The Housing Committee meetings are now live-streamed, which can be viewed at this link:
http://townhallstreams.com/stream.php?location_id=42&id=16398 These minutes provide a
record of those in attendance, general discussions taking place, and motions made.

A meeting of the Portland City Council’s Housing Committee (HC) was held on Thursday, January 9,
2020 at 5:30 P.M. in Council Chambers of Portland’s City Hall. Councilors present at the meeting
included Committee members Councilor Kim Cook, Councilor Pious Ali and Councilor Jill Duson,
Chair of the Committee. City staff present included Christine Grimando, Planning and Urban
Development Director, Mary Davis, Division Director Housing and Community Development, Victoria
Volent, Housing Program Manager.

Item 1: Review and accept Minutes of previous meetings held on November 13 2019
Motion by Councilor Ali to move for adoption of the minutes from November 13 2019. Motion was
seconded by Councilor Cook and minutes were approved 3-0.

Item 2: 2020 Work Plan Discussion Session
Councilor Duson introduced this item for the public. Public comment is not anticipated, as this is not an
action item.
Christine Grimando introduced this item for the Housing Committee. She provided a highlight of each
item starting with Inclusionary Zoning, lodging houses, ReCode activity (Phase I and Phase II),
(flagging items that are connected to Housing), street standards, resiliency, funding models, city-owned
property, rental housing advisory committee, community engagement, City Council proposed 2020
Housing Goals, and next steps.
Christine discussed the ReCode schedule and the process by which it goes through Planning Board
review.
Mary Davis discussed the 2020 Work Plan template, which includes mandatory items, some that may be
moved in the calendar while other items are fixed to meet specific deadlines set by HUD or MaineState
Housing. Staff is looking for direction from the Committee on the time line and other expectations.
Councilor Duson referred to staff’s memo with the following questions/comments:
Lodging houses- preference is to coordinate timing with ReCode and the Planning Board. She does not
want a separate review with the Housing Committee if it slows down the process. She would like to be
reminded of upcoming meetings.



 1
Street standards- does not feel Housing Committee involvement is necessary as the Sustainability and
Transportation Committee will be reviewing this item, but does wish to remain informed through
updates.
Resiliency- same comments as above.
City-Owned Property- would like to see the map of City-owned property kept up to date.
Community Engagement- would like to know if Housing Committee would like to start a new
community engagement initiative. Would like a context to have a conversation.
Councilor Ali questions and comments:
Community Engagement- not sure if the Housing Committee or the entire Council should take this up.
Invite developers and community groups, to have a conversation. Find a way to collaborate. Do not
need a task force.
Councilor Duson:
Community Engagement- supports a housing forum or forums to discuss ideas. Would like staff to
reach out to have others organize it.
Councilor Cook questions and comments:
Community Engagement- values hearing from the community. Supports a broader community
engagement on these issues. Joint community engagement on housing that includes a broad range of
issues. A regional discussion is expected from the State level.
Councilor Duson:
Asked staff when a forum could be brought together. Wants something for June. Asked Christine to
bring back a proposal by April.
Mary noted this could be tied into the five year consolidated plan that needs to be brought forward to
HUD by September. Christine supports the Committee’s suggestion.
Councilor Ali- suggested inviting others (outside of the City who have expertise in a certain area) take
on the lead and follow-up with discussions.
Councilor Cook:
Inclusionary Zoning - not interested in a major review, but supports a quick fix. Wants to review
whether we continue to use HUD area median income or use the Portland median income, open to
comments on the fee-in-lieu.
Lodging houses- okay with changing the definition under ReCode. Would only wish to look at the
residential piece of this item and direct commercial uses to the Economic Development Committee.



 2
Street Standards- is awaiting a comprehensive approach report from staff. Is interested in this issue
(unaccepted streets/paper streets). Is open to this topic being reviewed by the Sustainability and
Transportation Committee or the Housing Committee. She would like to know what has happened since
she spoke with Corporation Counsel in 2017. Would like to see progress on this item during this year.
Sees opportunity to place this item in a phase of ReCode. Christine would provide updates (to either the
Housing Committee or full Council) as work is completed. Per Councilor Duson, updates for the
Housing Committee would be good to have- staff should add them to the Work Plan. Councilor Cook
would like to know where sprinkled house discussion ties into this issue. Suggested a possible joint
meeting with Health and Human Services and Public Safety.
Resiliency – not interested in working on this item. Allow the Planning Board and, the Sustainability
and Transportation Committee to work on this
City-owned property - very interested in proposed rezoning for the three properties recently disposed
then getting additional properties to the Council for disposal (top priority). Land Bank or Cooperative
models should be reviewed (maybe with Economic Development) during the disposition. Wants to look
at these other models besides RFP. Wants to look at City-owned parking lots and other City-owned
parcels.
Rental Housing Advisory Committee (RHAC) - is interested in how security deposits are administered
by private insurance policies. Councilor Cook explained how tenants purchase security deposit policy
that is meant to cover the amount of the security deposit and refunds. Would like landlords to take cash
or a certificate of security deposit insurance. Councilor Duson would like the RHAC take this on. Staff
should draft the recommendation for the RHAC for the Housing Committee’s review prior to submitting
this to them.
Would like to know how other communities ensure new housing units become primary residences as
opposed to vacation properties. She is not asking Planning and Urban Development staff to research
this. What data does City show regarding the ownership (residence/ non residence) of newly
constructed buildings?
Councilor Duson:
Lodging House- asked if a workshop is necessary to discuss potential approaches, or have you looked at
it enough to provide recommendations to the Housing Committee.
Christine Grimando:
Staff feels it is early to land on a process to tackle this. We will report on the progress of this item and
bring it back if it becomes a residential item more than commercial.
The Committee had clarifying questions. Members will determine which of the suggestions from staff
will be incorporated into the 2020 Work Plan. Councilor Duson would like to attend ReCode meetings
when housing items appear.


 3
Councilor Duson noted the first three disposed properties might be good for land bank or cooperative
housing.
Councilor Ali agrees with a land bank or cooperative consideration.
Councilor Cook would like a formal joint meeting with the Economic Development Committee (EDC)
on disposition of City-owned property. The Housing Committee could join EDC at one of their
scheduled meetings.
Councilor Duson sees the Housing Committee as a co-branch for disposition of land and wants to be
part of the decision on how to put housing on the property. She would also like to the Housing
Committee to join the EDC during one of their meetings.
Councilor Duson would like the Work Plan to reflect the comments and suggestions provided by the
Housing Committee.
Per Mary Davis, the next meeting of the EDC is March 3 in room 24.

Item 3: Communication Items:
Councilor Duson invited the Committee the opportunity to discuss the communication items. The
Committee members did not have any comments.
Councilor Duson opened the meeting to the public for items not on the Agenda.
Victoria Morales- Executive Director, Quality Housing Coalition. She handed out a letter addressed to
the Housing Committee members introducing the Quality Housing Coalition and their dedication to
creating and supporting quality housing opportunities through philanthropy and policy work in the
Greater Portland area. She hopes to present policy ideas for the Council during their February meeting.
Tyler Plante- Portland Housing Authority. He reflected on Portland Housing Authority’s priorities, the
start of the Rental Assistance Demonstration (RAD) process, and provided an update on Washington
Gardens’ housing renovation and the Front Street project. He also mentioned the complexity of
developing housing and thanked the City for its partnership.
Karen Snyder of Waterville Street- 30 to 40 Munjoy Hill property owners have ideas and concerns
regarding affordable housing. She presented those concerns to the Council during their January 6 2020
meeting. She is interested in the long-term lease of City-owned property (as opposed to the sale of the
property) and a vacancy tax options.
Councilor Duson closed the opportunity for public comment on items not on the agenda.
Motion to adjourn was not recorded. The meeting adjourned at 7:39 P.M.
 Respectfully submitted,


 Victoria Volent

 4
 MEMORANDUM


FROM: Rental Housing Advisory Committee
DATE: February 5, 2020
SUBJECT: Rental Application Fees

I. SUMMARY

 The Rental Housing Advisory Committee recommends that the City enact an ordinance to ban
 application fees for rental housing units.

II. BACKGROUND
 The Rental Housing Advisory Committee (RHAC) is charged with providing the Housing Committee
 with recommendations or proposals for improvements, modifications, or changes regarding landlord
 and tenant policy issues and identifying education opportunities, seminars, and materials that would be
 useful to landlords and tenants.
 At the RHAC’s first meeting on September 24, 2019, group members brainstormed issues of concern to
 landlords and tenants. Several members expressed concern that rental housing application fees are a
 significant barrier preventing low and moderate income residents from securing housing in Portland.
 City staff informed the committee that staff in the Housing and Community Development Division had
 heard concerns about application fee fraud and abuse and had made the Housing Committee aware of
 that issue. City staff informed the group that the Housing Committee suggested that application fees
 might be a topic the RHAC could take up.
 The RHAC discussed the fact that there is no state law or city ordinance limiting application fees. There
 is no requirement that a fee charged be linked to the landlord’s cost in running a background check.
 Tenants are generally not in a position to know whether they have actually been considered for an
 apartment for which they have paid an application fee. Mindful that RHAC’s charge includes
 education, members of the group discussed whether there are education solutions to these issues.
 At the October 28, 2019 meeting of the RHAC members of committee articulated several areas of
 concern: landlords who collect application fees with no intention of renting to the applicant, landlords
 who collect application fees from multiple applicant and do not conduct background checks, and
 landlord who do not supply copies of reports to applicants who are not selected as tenants. The group
 discussed the concern that application fees price low and moderate income tenants out of Portland at
 multiple meetings.
 The RHAC discussed several ways to address application fees. Proposals included a limitation on the
 amount that could be charged, a requirement that fees collected be refunded to tenants, a requirement
 that landlords provide copies of background checks to tenants, a prohibition on charging application
 fees when a tenant provides a landlord with a copy of a recent background check, and a ban on
 application fees.
 Members of the Committee expressed concern that landlords could continue charging application fees
 by giving those fees another name and the proposed language banning fees is phrased to allow only a
 security deposit and first month’s rent to be charged at the beginning of a tenancy.
 On December 16, 2019 the RHAC voted 5-3 to recommend to the Housing Committee that the City
 prohibit landlords from charging application fees. (the committee currently has 8 members because a
 tenant member resigned) The RHAC drafted a resolution at the December 16th meeting to accompany
 the recommendation to explain the committee’s rationale and the RHAC approved the resolution 6-2.
III. ANALYSIS AND BACKGROUND
 RHAC understands that the Housing Committee would like to see “more than anecdotal” evidence
 demonstrating that application fees are a significant problem in the community. RHAC members have
 researched this issue and we have not found any studies that are responsive to this request.
 Pine Tree Legal Assistance (PTLA) was asked whether they track calls about application fees. RHAC
 member Katherine McGovern explained that PTLA tracks cases based on the legal issue involved and
 so can provide data on the number of tenants who called about issues like evictions or security deposits
 but because there are no state or local laws limiting application fees, inability to afford application fees
 is not categorized or tracked as a legal problem. Ms. McGovern shared throughout the RHAC’s
 discussion about this issue that PTLA’s clients struggle to find affordable housing in Portland and
 application fees are a significant problem for PTLA’s clients.
 RHAC co-chair Meredith Cook, who has worked as a housing specialist at Through These Doors and is
 currently employed by Preble Street as the Maine Hunger Initiative Social Change Advocate, told the
 committee that application fees are such a significant barrier for low-income tenants that Preble Street
 caseworkers searching for housing with clients do not even apply with landlord who charge application
 fees.
 RHAC member Wendy Harmon conducted a survey of members of the Southern Maine Landlord
 Association regarding members’ practices regarding application fees. Ms. Harmon submitted the results
 of the survey to the group and these results are attached. Some members reported not charging
 application fees and those that charge application fees reported that they charge between $25 and $50
 per adult applicant. Landlords who charge application fees reported collecting those fees from
 somewhere between one and nine applicants per available apartment.
 Each RHAC meeting has included time for public comment. At the November 25, 2019 RHAC meeting
 three members of the public offered their views and testimony about their experiences with application
 fees. Jenna Dorr described her family’s experience of scrambling to find new housing and spending
 more than $500 in application fees without know whether background checks were actually being
 conducted or whether they were truly being considered for apartments. Alyssa Floyd described paying
 application fees and never knowing why she was not offered an apartment. Jim Devine encouraged the
 committee to propose rules that are easy to understand and coherent. (Public comment for this meeting
 is summarized the meeting minutes and in the Bangor Daily News story attached).
IV. RECOMMENDATION
 RHAC recommends that the following provision be added to Chapter 6 of the City’s ordinances:
 “At or prior to the commencement of any tenancy, no lessor may require a tenant or prospective tenant
 to pay any amount in excess of the following:
 (i) Rent for the first full month of occupancy; and
 (ii) A security deposit as defined in 14 MRS 6032”


V. LIST ATTACHMENTS
 1. Resolution including proposed ordinance language submitted to the Housing Committee
 2. “Renters say application fees a barrier to living in Portland’s pricey housing market.” Bangor Daily
 News article by Nick Schroeder, December 2, 2019
 3. “Unregulated application fees make Portland’s housing crisis even more expensive for renters.”
 Maine Beacon, October 17, 2019
 4. Examples of ordinances/statutes from other jurisdictions: Minnesota, Oregon, Minneapolis
 5. Survey of Southern Maine Landlord Association members conducted by Wendy Harmon.


Prepared by: Katherine McGovern and approved by the Rental Housing Advisory Committee on a vote of 5-3


Date: February 5, 2020
Resolution



WHEREAS, application fees are a significant barrier to low and moderate income people in finding
housing in the City of Portland; and

WHEREAS, tenants are likely to pay multiple fees before finally securing housing, and

WHEREAS, there are no laws in Maine regulating application fees.

THEREFORE BE IT RESOLVED, the Rental Housing Advisory Committee sees application fees as a
significant burden on tenants when securing housing; and

THEREFORE BE IT FURTHER RESOLVED, the Rental Housing Advisory Committee recommends to the City
Council Housing Committee to address this concern through the recommended policy change in City
ordinance, below.

Application Fee Ban:

At or prior to the commencement of any tenancy, no lessor may require a tenant or prospective tenant
to pay any amount in excess of the following:

 (i) Rent for the first full month of occupancy, and
 (ii) A security deposit as defined in 14 MRS 6032
Unregulated application fees make Portland’s housing crisis even more expensive for rent... Page 1 of 8




 October 17, 2019 Cara DeRose



  Unregulated application fees make Portland’s housing
  crisis even more expensive for renters
  For renters who earn minimum wage or are just starting out in the workforce, affordable
  housing options in Maine — which has one of the least affordable rental markets in the country
  — are increasingly limited. In the Portland area, renters compete with dozens, if not hundreds,
  of others for apartments that often cost 33 percent or more of their income and require the
  payment of a security deposit, along with first and last month’s rent.

  Adding to the stress and expense of finding somewhere to live are fees that some landlords now
  charge simply to apply to rent an apartment.

  No laws in Maine currently regulate how much can be charged for these fees, what they can be
  used for and from how many applicants they can be accepted for the same property, a system
  that affordable housing advocates say can create a significant obstacle for low-income renters
  and a situation ripe for abuse.

  “As the rental market has gotten more challenging, as rents have gone up and the number of
  affordable units has gone down, people have ended up spending more on application fees
  because they’re having to apply to more units before they find a place,” explained Katherine




https://mainebeacon.com/unregulated-application-fees-make-portlands-housing-crisis-eve... 10/24/2019
Unregulated application fees make Portland’s housing crisis even more expensive for rent... Page 2 of 8



  McGovern, directing attorney for legal advocacy organization Pine Tree Legal’s Portland office.
  “It’s a real barrier for low- and moderate-income tenants.”

  While New England neighbors Massachusetts and Vermont have outlawed application fees,
  most states have no laws addressing these costs.

  Application fees vary landlord to landlord and are usually not refundable. Two of Portland’s
  biggest property management companies, Port Property and Schneider Management, charge a
  non-refundable $35 application fee, close to the $40 McGovern says is the average in Portland.

  Portland residents have raised concerns to McGovern about paying these fees, which can
  quickly add up to hundreds of dollars in the search for a single apartment. McGovern said her
  clients often feel like they are being cheated by property owners.

  “You may be paying fees without any real prospect of getting an apartment,” McGovern said.

  Paying without prospect

  There are anecdotal reports that abuses of these fees may already be occurring, with some
  landlords accepting fees from applicants to whom they have no intention of renting.

  Housing advocate Adam Rice told Beacon that when he worked for his family’s business, the
  Portland-based property owner Apartment Mart, he observed that the company would often
  settle on a desired tenant while still collecting fees of up to $40 from other applicants.

  “Say you have somebody come in, they look like they’re a clean-cut person, well-kept. They’re
  probably going to take care of the apartment. They apply for it,” he said. “And then [Apartment
  Mart] could have that apartment booked all day long, every hour, and every person comes in
  and applies for that. And [Apartment Mart] knows only one person is going to get it.”

  This practice, Rice noted, contributes to the “false hope” that potential renters competing for a
  dwindling stock of affordable units feel when applying for an apartment.

  “It’s weird that you wouldn’t say, ‘Hey, somebody’s already viewed this. I’m going to give it until
  the end of the day to see if their application passes,’” Rice said. “You could at least not be giving
  everyone false hope when you already know maybe five or six of these people aren’t going to get
  it regardless.”

  Already beyond affordability

  A recent housing report drafted by Portland’s Division of Housing and Community Development
  highlights the economic situation facing low-wage workers in the city. The report, presented at




https://mainebeacon.com/unregulated-application-fees-make-portlands-housing-crisis-eve... 10/24/2019
Unregulated application fees make Portland’s housing crisis even more expensive for rent... Page 3 of 8



  an Oct. 9 meeting of the city council’s Housing Committee, warns about the lack of rental
  options for the city’s low-wage residents and the financial burden this places on many
  Portlanders.

  As much as 47 percent of Portland’s renter households reported paying more than 30 percent of
  their income towards rent and utilities, which is considered unaffordable according to the rubric
  used in the report. A survey of city residents found that the median rent for a two-bedroom unit
  in 2018 was $1,380. In order for this to be affordable, a renter must make $26.67 an hour or
  $55,480 per year. The median income for an individual renter is $33,654 per year.

  (Photo: Kurt Bauschardt | Creative Commons via flickr)

 0

 Category housing municipal




  ABOUT AUTHOR
 Cara DeRose 211 posts
 Cara DeRose is a staff writer for Beacon. A graduate of the University of
 Southern Maine, she served as writer and copy editor for the USM Free Press
 and interned at the Portland Press Herald.


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https://mainebeacon.com/unregulated-application-fees-make-portlands-housing-crisis-eve... 10/24/2019
 Southern Maine Landlord Association Survey re: Application Fees



 How many Do you currently
 If so, what amount do you On average, how many background and credit checks do you collect fees for before
 rental units charge an
 charge? you find an appropriate tenant?
do you own? application fee?


 0 No N/A 0

 1 No N/A 1

 1 No N/A None will use airbnb for week long rentals on lake

 1 No N/A 0

 1 No N/A 1

 1 No N/A 0

 1 No N/A 2

 2 No N/A 0

 2 No N/A I Air BNB my units

 2 No N/A 0

 2 No N/A 0

 2 No N/A 0

 2 No N/A 4

 2 No N/A 3

 2 No N/A 0

 2 No N/A 1

 2 No N/A
 How many Do you currently
 If so, what amount do you On average, how many background and credit checks do you collect fees for before
 rental units charge an
 charge? you find an appropriate tenant?
do you own? application fee?


 2 No N/A

 3 No N/A 0

 3 No N/A 0

 3 No N/A 0

 3 No N/A

 3 No N/A 1

 3 No N/A 2

 3 No N/A 0

 3 No N/A

 4 No N/A

 4 No N/A

 5 No N/A 0

 5 No N/A 0

 5 No N/A 2-3

 5 No N/A 0

 5 No N/A 0

 5 No N/A
 How many Do you currently
 If so, what amount do you On average, how many background and credit checks do you collect fees for before
 rental units charge an
 charge? you find an appropriate tenant?
do you own? application fee?


 6 No N/A 0

 6 No N/A 0

 6 No N/A

 7 No N/A

 8 No N/A 0

 8 No N/A 1

 8 No N/A 0

 8 No N/A 0

 8 No N/A 0

 9 No N/A 0

 10 No N/A 0

 10 No N/A 0

 10 No N/A 0
 2-3, we usually wait until we find a candidate that is likely to meet our standards,
 11 No N/A
 before we do reference checks.
 13 No N/A 0

 14 No N/A 0

 14 No N/A 0
 How many Do you currently
 If so, what amount do you On average, how many background and credit checks do you collect fees for before
 rental units charge an
 charge? you find an appropriate tenant?
do you own? application fee?


 15 No N/A 3

 16 No N/A 0

 21 No N/A

 25 No N/A

 30 No N/A 0

 31 No N/A 1

 60 No N/A 0

 70 No N/A 0

 130 No N/A 3
 We have used a tenant finder When we have used a tenant finder service—it usually takes 2 to 3 credit credit and
 1 No
 and have paid a fee! background checks time find someone
 1 Yes Cost of TenantNet 8

 2 Yes $25 - $35 1

 3 Yes $50 2

 3 Yes $50 1-2

 3 Yes $29 1 to 5 - but I reimburse the fees to the tenant who ultimately signs a lease.
 $39.99 for one applicant.
 4 Yes 1-2
 $49.98 for two.
 4 Yes $40 1
 How many Do you currently
 If so, what amount do you On average, how many background and credit checks do you collect fees for before
 rental units charge an
 charge? you find an appropriate tenant?
do you own? application fee?


 4 Yes $35 2

 5 Yes $25 9

 5 Yes $30 1

 5 Yes $35 3

 5 Yes Whatever RentPrep charges So far, 1

 5 Yes $30 2
 Usually just one. If applicant is approved, the app. fee is credited to their sec. dep. If
 6 Yes $25 per adult applicant
 rejected, it is refunded, unless lies on the app. I use judgement experience to
 6 Yes $45 8

 6 Yes $40 2 max - I have a conversation before collecting $

 6 Yes $35

 7 Yes $25 2

 7 Yes $30 5
 How many Do you currently
 If so, what amount do you On average, how many background and credit checks do you collect fees for before
 rental units charge an
 charge? you find an appropriate tenant?
do you own? application fee?


 8 Yes $35 3

 9 Yes $30 2

 10 Yes Tenant net/$25 1-2

 10 Yes $30 1

 12 Yes $30 2

 14 Yes $35 1

 16 Yes $25 One or two

 18 Yes $30 4

 36 Yes $35 2 max

 47 Yes $35 3-4

 50 Yes $25 1

 50 Yes $40 Only the ones we want to rent to - so NO extra

 62 Yes $38 6

 74 Yes $30 4

 83 Yes $35 1-3

 100 Yes $30 1-2

 180 Yes $40 4
 CITY OF PORTLAND
 Planning & Urban Development Department
 Housing and Community Development Division



 TO: Councilor Duson, Chair
 Members of the Housing Committee

 FROM: Mary Davis, Division Director
 Housing and Community Development Division

 DATE: February 5, 2020

 SUBJECT: 2020-2021 Housing Program Budget



SUMMARY OF ISSUE
Review and recommendation to the City Council of the 2020-2021 Housing Program
Budget.

REASON FOR SUBMISSION
The Housing Committee recommends the Housing Program Budget to the City Council for
final approval.

HOME Program: The Home Investments Partnerships Program (HOME) was established
by Congress in 1992. Since 1992, the City of Portland and the Cumberland County HOME
Consortium have received over $21 million dollars in HOME funding. In 2009 the City
became the lead entity in the Cumberland County HOME Consortium (CCHC). The
Consortium is a partnership of the communities in Cumberland County that administers
HOME Program funds in Cumberland County. The creation of the consortium expanded
the financial resources for affordable housing activities in the region. The City retains
independent operation of its HOME program. Because the City serves as the “Lead
Entity” and City staff administers the County portion of the funding, all administrative
funds are retained by the City. The County’s Municipal Oversight Committee controls the
allocation of the County’s portion of the HOME funds.

When the Consortium was formed in 2009, it included a “hold harmless” clause to ensure
that the City, as an existing HOME grantee, would continue to receive funding equal to its
allocation prior to the formation of the consortium. The “hold harmless” formula was
based on a comparison ratio to the HOME funding for the Lewiston/Auburn (L/A)
Consortium. The formula identified Portland’s “hold harmless” amount at 118% of the
HOME allocation for the L/A Consortium. The Cumberland County HOME Agreement
did allow for adjustments to be made if the current level of funding to the L/A HOME
 389 Congress Street Room 312 • Portland, Maine 04101
 207- 874- 8711 mpd@portlandmaine.gov • www.portlandmaine.gov
Consortium varied from historic levels. Over the years the L/A allocation has decreased
which has resulted in the Portland “hold harmless” amount to decrease. As a result, by
agreement with the other members of the CCHC, the annual allocation is divided with 57%
of allocation, after the administrative set-aside, to the City and 43% of the funding to the
County.

As a point of reference, if the City were a stand-alone grantee, the estimated HOME
allocation for Portland (using a HUD HOME Allocation estimated calculation) would be
approximately $567,149. Of that amount 10% would be set aside for administrative costs
($56,715) leaving $510,434 for program funding. Under the current consortium
agreement, the city receives the administrative set-aside ($102,069) along with
approximately $524,000 in program funds. Participation in the HOME consortium benefits
Portland as well as the county as a whole.

HUD has not announced the allocation amount for FY 2020-2021. Since we do not
have the final allocation amounts, we are estimating the HUD HOME allocation at the
same level as the previous year ($1,020,693). $395,008 is reserved for County projects.
The budget proposal was developed after a historical review of HOME funding allocations,
previous year’s budget allocations, program expenditures and program income (loan
repayments) received. Currently, the City’s HOME Program is divided into three funding
categories:

1. Administration
2. Tenant Based Rental Assistance (TBRA)
3. Affordable Housing Development [including the required Community Housing
 Development Organization (CHDO) set-aside mandated by HUD]

 FY 2019-2020 FY 2020-2021 Budget
  HOME Program Budget Budgeted (entitlement proposal (entitlement
 + program income) + program income)
  Administration $109,558 $109,569
  Tenant Based Rental Assistance $143,571 $143,571
  Affordable Housing
  Development includes CHDO $493,265 $497,545
  requirement



CDBG/HOUSING DEVELOPMENT FUND: HDF is the program income account
funded by CDBG housing loan repayments. These funds can only be used for CDBG
eligible housing activities. The FY21 budget proposal would fund an emergency loan
program to assist eligible households (at or below 80% of the area median income) with
repairs that are determined to be an immediate danger to the health or safety of the
occupants of the household. This would supplement the remaining balance in the Housing
Rehabilitation budget above. In future years, we are exploring moving from the current
housing rehabilitation model to an emergency loan model that would focus smaller
investments where significant health, safety or related issues exist. FY20 funding would
allow us to explore this model while still retaining some Housing Rehabilitation funds.



 389 Congress Street Room 312 • Portland, Maine 04101
 207- 874- 8711 mpd@portlandmaine.gov • www.portlandmaine.gov
  Housing Development Fund FY 2019-2020 FY 2020-2021 Budget
  (HDF) Budget Budgeted Proposal
  Administration $0 $0
  Housing Rehabilitation $93,242 $166,003*
*$34,338 of program income from FY19 + unencumbered fund balance of $131,665

LEAD SAFE HOUSING (Program Income): Lead Safe Housing Program Income is
generated through repayment of loans given under prior Lead Safe Housing Grants. These
funds can only be used for lead safe housing eligible activities. The City also has a new
Lead Hazard Reduction Grant that will provide $2,038,041 in funding for lead paint
remediation and $503,655 in funding to assist with code and life safety improvements

 FY 2019-2020 FY 2020-2021 Budget
 Lead Safe Housing Program Income
 Budgeted Proposal
 $268,741 $197,871


HOUSING TRUST FUND: Revenue for the Housing Trust Fund is generated from fees
triggered by the City’s Housing Preservation and Replacement Ordinance, fee-in-lieu
contributions from the Inclusionary Zoning Ordinance and Hotel Inclusionary Zoning fee.
Including the current balance of the Housing Trust Fund in the Housing Program Budget
gives budget authority for the use of the funds. There are no projects or activities currently
identified for these funds. The amount budgeted is the maximum that might be expended in
FY21. However, staff continues to recommend a minimum balance in the Trust, so the
effective budget would be $477,331 ($977,331 less $500,000.) If additional funds are
allocated to the Trust based on current discussions, this number might be adjusted based on
the outcome.

 FY 2019-2020 FY 2020-2021 Budget
  Housing Trust Fund (HTF) Budget
 Budgeted Proposal
 $1,275,820 $979,031

STAFF ANALYSIS AND RECOMMENDATION – The proposed Housing Program
Budget will adjusted when HUD announces the fiscal year allocation for the HOME
Program. This budget will be forwarded to the full City Council for two Public Hearings
(tentatively scheduled for April), as part of the overall HCD budget. Typically the final
budget allocations and Annual Action Plan are submitted to HUD 45 days in advance of
the start of the fiscal year (May 15 for the fiscal year beginning July 1, 2020).

At this time staff is requesting Committee approval and recommendation to the City
Council of the FY 20/21 Housing Program Budget as outlined above and summarized in
the attached spreadsheet. If the HUD allocation amount is different from the estimate used
in this budget, program budgets will be adjusted proportionately.
FY 20/21 Housing Program Budget - Attached



 389 Congress Street Room 312 • Portland, Maine 04101
 207- 874- 8711 mpd@portlandmaine.gov • www.portlandmaine.gov
 2020-2021 HOUSING PROGRAM BUDGET HUD Final Allocation Date: XXXXXX, 2020
 Total HUD HOME Entitlement Allocation 1,020,693 Recommended by HC (X-X) XXXXXXX, 2020
 Portland Program Portion 523,616 Approved by Council XXXXXXXX, 2020
 Portland Admin Portion 102,069 HUD Allocation XXXXXXXXX, 2020
 County Program Portion 395,008 Adjusted for Final HUD Allocation XX.XX.2020



 LEAD Safe
 Housing
 Program Housing TOTAL
REVENUES- Housing Programs HOME CDBG HDF** Income** Trust Fund BUDGET
2020-21 HOME Consortium Admin (10% of allocation) 102,069 102,069
2020-21 HOME Consortium Programming 523,616 523,616
2019-20 HOME Estimated Program Income 75,000 75,000
2019-20 HOME Estimated Program Income Recaptured Funds 75,000 75,000
2019-20 HOME EstimatedProgram Income and Recapture Deduction for County -25,000 -25,000
Re-Allocated HOME Funds (funding from previous years) 0
2020-21 CDBG Administration 0
2020-21 CDBG Programming 0
2019-2020 Housing Trust Fund 979,031 979,031
2018-19 HDF Program Income** 166,003 166,003
2018-19 Lead Safe Housing Program Income** 197,871 197,871
REVENUE TOTALS (Portland) 750,685 0 166,003 197,871 979,031 2,093,590

** Includes previous unallocated program income + program income received in FY19



 LEAD Safe
 Housing
 Program Housing TOTAL
2020-21 HOUSING Budget by Activity (Portland) HOME CDBG HDF** Income** Trust Fund BUDGET
Administration 243021QQ01 (includes 10% of PI) 109,569 0 109,569
Housing Rehabilitation/Emergency Loan Program 0 166,003 166,003
Tenant-Based Rental Assistance 443021QT01 143,571 143,571
Affordable Housing Development 243021QA00 410,276 979,031 1,389,307
CHDO 243021QA00 87,269 87,269
Lead Safe Housing 243019PLL1 (PLL036) 0 197,871 197,871
 750,685 0 166,003 197,871 979,031 2,093,590




2020-21 HOME Consortium COUNTY - approved by MOC on XX.XX.2020
County HOME Program budget provided for reference only; adjusted for final HUD Allocation XX.XX.2020
Allocation of County funds is done by the County's Municipal Oversight Committee
 HOME
REVENUES- Housing Programs County
2020-21 HOME Consortium Non-Portland Programming 395,008
2019-20 HOME County Program Income and Recapture 25,000
 420,008

 HOME
2020-21 HOUSING Budget by Activity County
Housing Rehabilitation (# projects @ $15,000/project) 0
Home Ownership 0
Affordable Housing Development 243021QC00 354,173
CHDO 243021QC00 65,835
 420,008




 G:\Shared drives\PUD - HCD\Financial\Budgets\Budget 2021\HOUSING BUDGET 2020-2021 Draft 02.05.2020.xlsx
 CITY OF PORTLAND
 Planning & Urban Development Department
 Housing and Community Development Division


 TO: Councilor Jill Duson, Chair
 Members of the Housing and Community Development Committee

 FROM: Mary Davis, Division Director
 Housing and Community Development Division

 DATE: February 4, 2020

 SUBJECT: Renewal of the Cumberland County HOME Consortium

  I. SUMMARY OF ISSUE

The Cumberland County HOME Consortium will soon be entering the last year of its fourth
three-year Consortium contract period. The current Consortium agreement is due to expire on
June 30, 2021. Each member of the Consortium must confirm their participation in the next
three-year term and notify HUD by June 30.

 II. REASON FOR SUBMISSION

We are required to submit our consortium renewal request to the U.S. Department of Housing
and Urban Development by June 30 for the contract period July 1, 2021 through June 30,
2024.

III. INTENDED RESULT

Confirm Portland’s participation in the Cumberland County HOME Consortium for the period
beginning July 1, 2021 through June 30, 2024. The Consortium makes available more funds
for affordable housing activities throughout the region and provides the opportunity to address
housing issues on a regional level.

IV. COMMITTEE GOAL/COUNCIL GOAL ADDRESSED

Increase access to safe, location-efficient rental and ownership housing that is affordable for
working and low-income families.

 V. FINANCIAL IMPACT

In FY 2019-2020, the Cumberland County HOME Consortium received $1,020,693 in HOME
program funds from the U.S. Department of Housing and Urban Development. Based on the
funding formula established in the Mutual Cooperation Agreement between
 389 Congress Street Room 312 • Portland, Maine 04101
 207- 874- 8711 mpd@portlandmaine.gov • www.portlandmaine.gov
the City of Portland and the other Consortium Members, the City receives 10% of the grant
($102,069) for administrative costs and $523,616 for project programming. The remaining
funds ($395,008) are allocated to the other Cumberland County communities.

VI. STAFF ANALYSIS AND RECOMMENDATION

The concept of forming a City of Portland/Cumberland County HUD HOME Consortium was
first discussed in April 2007. The Consortium was designed to expand financial resources for
eligible affordable housing activities throughout Cumberland County. Prior to 2009, Portland
received an annual allocation of HUD HOME funds but the communities of Cumberland
County did not. The creation of the Consortium brought additional funding for affordable
housing activities into the region. The Consortium agreement includes a “hold harmless”
clause that ensures that Portland receives funding in an amount equivalent to the amount the
City would have received if the Consortium did not exist. Portland retains independent
operation of its HUD HOME program. As the “Lead Entity” of the Consortium, Portland
receives 100% of the administrative funds allowed under the HOME Program.

The consortium has been a successful collaboration in support of affordable housing
throughout Cumberland County. From July 2009 through January 2020, over 1100 units have
been assisted by or created with HOME funds. The City of Portland has been a recipient of
HOME funds since 1992. However, the county communities did not receive HOME funds
until the creation of the Consortium in 2009. Through a formula calculation agreed upon by
the members of the Consortium, Portland continues to receive our typical expected allocation,
retains independent operation of its HOME program and serves as “Lead Entity” for the
Consortium, retaining 100% of the allowable administration funds as compensation for this
responsibility. (See attached “Hold Harmless” statement). If the City were not a part of the
consortia, the City’s HOME allocation is estimated to be $567,149, which would represent
administrative funds and program funds (see copy of HUD funding estimate calculator)

Staff requests the Committee approve and recommend to the City Council that the City of
Portland renew its participation in the Cumberland County HOME Consortium.




 389 Congress Street Room 312 • Portland, Maine 04101
 207- 874- 8711 mpd@portlandmaine.gov • www.portlandmaine.gov
GEO GROUP STUSAB GEO NAME COUNTY NAME VACRENT ALLRENTALS FAMPOV P50RHP TRHC4 AMTRHC4 POPPCI
Places ME Portland city Cumberland County 630 17,910 1,975 2,940 8,400 7,483 63,455


Estimated value of the FAMILIES IN POVERTY factor: $56,842
 DISCLAIMER
Estimated value of the PRE-1950 RENTAL HOUSING OCCUPIED BY THE POOR factor: $245,126
Estimated value of the RENTAL HOUSING WITH 1 OF 4 PROBLEMS factor: $86,506 Deviations from these estimates WILL occur for any number of reasons including, but not limited
Estimated value of the COST INDEXED RENTAL HOUSING WITH 1 OF 4 PROBLEMS factor: $74,275 to the final appropriated amounts and final HOME Consortia participation rosters. CPD has no
 obligation or liability, legal or otherwise, if there is a discrepancy between these estimates and
Estimated value of the VACANCY ADJUSTED RENTAL HOUSING WITH PROBLEMS factor: $80,006
 any final calculated formula grant amounts. CPD maintains no responsibility for personal loss or
Estimated value of the POPULATION INDEXED BY PER CAPITA INCOME factor: $24,394 injury due to usage of this excel workbook.
Estimated TOTAL: $567,149
 CITY OF PORTLAND
 Planning & Urban Development Department
 Housing and Community Development Division


TO: Councilor Duson, Chair
 Members of the Housing Committee

FROM: Mary Davis, Division Director
 Housing and Community Development Division

DATE: February 7, 2020

SUBJECT: 2020 Housing Trust Fund Annual Plan



The Housing Trust Fund is established by Section 14-489 of the City’s Code of Ordinances.
Section 14-489 (e) states that “the city council shall adopt a housing trust fund annual plan”
and that the “housing committee of the city council or such other committee as the council
shall designate shall conduct public hearings on the recommended plan and refer the matter
to the council for action.” The plan establishes the priorities in which the current balance of
the Housing Trust Fund will be allocated.

Proposed Revisions to Housing Trust Fund Annual Plan from 2019 to 2020

 • Funding Priorities: support public/private partnerships that create workforce housing
 units affordable to households earning 80% to 120% of the area median income.

 • Point System for Evaluating and Scoring Applications: adjusted the point allocations
 in Section IV.A. to provide more emphasis on developments that are consistent with
 city goals, meet market demand and create economic diversity.

Staff Recommendation

Staff is requesting that the Housing Committee recommend to the City Council approval of
the 2020 Housing Trust Fund Annual Plan.




 389 Congress Street Room 312 • Portland, Maine 04101
 207- 874- 8711 mpd@portlandmaine.gov • www.portlandmaine.gov
 HOUSING TRUST FUND
 202019 ANNUAL PLAN

BACKGROUND

The Housing Trust fund is established by Section 14-489 of the City’s Code of Ordinances.
Section 14-489 (e) states that “the city council shall adopt a housing trust fund annual
plan” and that the “housing committee of the city council or such other committee as the
council shall designate shall conduct public hearings on the recommended plan and refer
the matter to the council for action.”

The Annual Plan will establish the priorities in which the current balance of the Housing Trust
Fund will be allocated. The plan is in line with the 2019 Housing Committee objective of
increasing access to rental and ownership housing that is safe, affordable, and accessible for
working and low-income families.

This budget is based on the balance in the Housing Trust Fund as of January 2, 2020March 1,
2019. At this time, Housing Trust Fund revenue is generated from fees triggered by the Housing
Preservation and Replacement Ordinance, a portion of revenue from the Short Term Rental
Registration Program, fee-in-lieu contributions from the Inclusionary Zoning Ordinance (including
the hotel inclusionary zoning fees), and other funding resources under Council consideration. The
current unencumbered balance of the Housing Trust Fund is $979,0311,275,820. While staff
anticipates increases in revenue in the Housing Trust Fund as a result of the Inclusionary Zoning
Ordinance and other sources being considered by the City Council, those anticipated resources are
not included in the 202019 Annual Plan.

Sources and Uses of Housing Trust Fund:
YEAR DEPOSITS YEAR EXPENDITURES
  2002/03 Maine Medical Center HRO $ 315,580.00 2011 Avesta Oak Street Lofts $ (380,585.00)
 2002 Sportsman's Grill HRO $ 40,000.00 2014 Housing First Pre-Development RFP $ (75,000.00)
 2009 Berlin City Auto HRO $ 116,000.00 2015 65 Hanover & 52 Alder Sts Feasibility Study $ (9,250.00)
 2010 Stop n Shop HRO 2010 $ 289,250.00 2017 65 Munjoy Street $ (175,000.00)
 2012 Rockbridge/Eastland Park HRO $ 42,500.00 2019 60 Parris Terr. Downpayment Assistance $ (24,000.00)
 2012 Riverwalk/Ocean Gateway HRO $ 250,000.00 2018 977 Brighton Avenue $ (300,000.00)
 2012 118 Congress LLC Easement $ 3,500.00 2018 37 Front Street (not yet spent) $ (925,000.00)
 2017 91 & 97 Belfort Street (sale of TAP) $ 86,423.99 2019 83 Middle Street (not yet spent) $ (136,734.00)
 2017 116 Upper A Street (sale of TAP) $ 78,526.74 2019 47 Boyd Street (not yet spent) $ (425,000.00)
 2017 443 Congress Street IZ $ 280,000.00 2019 18 Luther Street (not yet spent) $ (36,000.00)
 2018 62 India Street IZ $ 276,500.00 Total Expenditures $ (2,486,569.00)
 2018 Short Term Rental Fee transfer $ 33,138.80
 2018 0 Thames Street (WEX) sale $1,000,000.00
 2019 20 Thames Street IZ & Easement $ 270,000.00
 2019 20 Thames Street (for balcony overhang) $ 7,500.00
 2019 Short Term Rental Penalty $ 15,200.00
 2020 Short Tern Rental Penalty $ 200.00
 2019 Short Term Rental Fee transfer $ 176,118.00
 2019 56 Hampshire Street Easement fee $ 12,123.00
 2019 17 Sumac Street (sale of TAP) $ 79,617.86
 2019 121 Middle Street (HOTEL IZ) $ 41,866.00
 Previous INTEREST EARNED $ 51,555.81
 Total Deposits $3,465,600.20 BALANCE $979,031.20
HRO - Housing Replacement Ordinance; IZ = Inclusionary Zoning Fee-in-lieu; TAP = Tax Acquired Property
as of 2-5-2020




February 7, 2020April 22, 2019
1 | Page
City Ordinance requires that the Housing Trust Fund Annual Plan include a description of the
programs to be funded, a budget for each program and identify how the funds will be distributed
among very-low (at or below 50% of the area median income), low (at or below 80% of the area
median income) and moderate income (at or below 120% of the area median income) households.

The Housing Trust Fund is a valuable tool that can assist the City in meeting the goal of providing
increased availability in all segments of the housing market. While the City has other resources
such as the HUD HOME and CDBG Programs, those funds are limited in amount and scope. The
proposed Housing Program budget for FY 202019-20210 includes $497549,54536 in HOME
funding for affordable housing development. The HOME program restricts rental housing
assistance to households at or below 60% of the area median income and home ownership
assistance to households at or below 80% of the area median income. The CDBG program is
restricted to households at or below 80% of the area median income. City Ordinance allows the
Housing Trust Fund to assist households at or below 120% of area median income.

As always, the City should act prudently when deciding to invest these funds. The Housing Trust
Fund should maintain a minimum balance of $500,000 in order to have resources to act quickly
when there is an emergency, such as a need to cure a potential mortgage default that could result in
loss of an affordable unit. This right to cure will be included in the affordable housing covenants
that are recorded in the Cumberland County Registry of Deeds for each affordable unit.

FUNDING PRIORITIES

The purpose of the Housing Trust Fund is the “…promotion, retention and creation of an adequate
supply of housing, particularly affordable housing, for all economic groups and to limit the net loss
of housing units in the City.” and “To serve as a vehicle for addressing very low, low and median
income housing needs…”. In an effort to ensure that these purposes are met, the Housing Trust
Fund Annual Plan may identify specific priorities that support other city goals and priorities, for
example goals from the Comprehensive Plan or the City Council Common Goals. A 2020 priority
will be to support public/private partnerships that create workforce housing units that are
affordable to households earning 80% to 120% of the area median income. A 2019 priority will be
to support the creation of workforce housing units through a public/private partnership to add
rental and/or ownership units to the City’s housing inventory, as outlined in the Housing
Committees 2019 Priorities.

Allocation Process

Housing Trust Funds will be distributed through a competitive application process. A Notice of
Funding Availability will be issued at a minimum of an annual basis to notify potential
applicants that the application is available. Applications will be reviewed by an evaluation team
of City of Portland staff who will evaluate and score each application utilizing the scoring factors
outlined in Attachment #1 in order to recommend the most qualified application based on the
information submitted. This information will also be included in the Affordable Housing
Development Application.




February 7, 2020April 22, 2019
2 | Page
Recommendations will be forwarded to the City Council’s Housing Committee for review.
Housing Committee recommendations will be forwarded to the City Council for final review and
approval.

Eligible Activities

Activities eligible for funding from the Housing Trust Fund are those that promote, retain, and
create an adequate supply of housing, particularly affordable housing for all economic groups,
and to limit the net loss of housing units in the city. Eligible activities may include: new
construction, preservation/rehabilitation of existing affordable housing, adaptive reuse,
acquisition, housing first.

In this Plan, adaptive reuse is defined as creating housing in an existing building that was
originally built or designed for a use other than housing.

The Housing Trust Fund resources are also intended to promote the retention of affordable
housing. Staff recommends that Housing Trust Fund resources be made available, if necessary, to
exercise the City’s right of first refusal in connection with potential foreclosure issues with
affordable homeownership units. This is unlikely to occur in the near future but may come up as
more workforce homeownership units are created through Portland’s inclusionary zoning
ordinance. The City shall have a right of first refusal if an affordable unit is forced to sell due to
increased fees or has become delinquent in its payments and is in risk of foreclosure or any other
legal threats to the Unit’s affordability restrictions. The City shall also have the option of using
City funds to support affordable units facing large special assessments that may pose a risk to the
owner household’s ability to maintain their unit’s affordability. The City of Portland shall have
the right of first refusal to purchase any affordable unit that is in jeopardy of losing its affordability
restrictions due to foreclosure, delinquency of condominium fee payments, or any other cause
outside of the agreed upon term of restriction. The City’s Right of First Refusal is not intended to
infringe upon the ability of a mortgage lender to recapture any money owed by the affordable unit
owner. The intent is to ensure affordability of the unit for eligible households.

Financing Parameters

Housing Trust Funds should be a resource of last resort and should be focused on opportunities
where other funding sources do not work or are not effective. Applicants requesting financial
assistance from the Housing Trust Fund must provide document efforts made to obtain other
private, federal, state or local resources for the project.

Form of Awards: A variety of funding mechanisms will be utilized including no-interest loans,
below-market loans, forgivable loans, and grants. Type of funding will be determined after
review of a number of factors including amount necessary to make the project feasible, the
project type, income targeting, number of affordable units, and duration of the affordability
period.

Maximum Award Amount: Awards will be determined on a per affordable unit basis. The
average City investment per unit, excluding TIF financing, is approximately $10,000. The City
contribution per unit will not exceed $18,000. This amount may be adjusted at the discretion of
the City Council, only for unusual circumstances where a larger amount is the only way a project
February 7, 2020April 22, 2019
3 | Page
that meets other City goals is needed. In those cases, the higher cost per unit ratio must be tied
into the goals outlined in the City’s Comprehensive Plan.

Income Targeting

Housing Trust Fund resources should be focused on opportunities where other funding sources do
not work or are not effective, such as projects designed to create housing affordable to households
earning at or below 50% of the area median income, or projects designed to create housing
affordable to households earning 80% to 120% of the area median income. Often, other funding
sources, such as the Low Income Housing Tax Credit Program or the HOME Program, have
restrictions or requirements that limit or prohibit the creation of housing affordable to those in the
very low and moderate income ranges.

Affordable means that the percentage of income a household is charged in rent and other housing
expenses, or must pay in monthly mortgage payments (including insurance and taxes), does not
exceed 30% of a household’s income, or other amount established in city regulations that does not
vary significantly from this amount.

Affordability Restrictions

Affordability restrictions are required. In the case of rental or cooperative units, the units must
remain affordable for the life of the housing unit which is presumed to be a minimum of thirty (30)
years.

Homeownership units must include resale restrictions that maintain an “equitable balance”
between the interests of the owner and the City. These restrictions must be documented and
recorded in the Cumberland County Registry of Deeds.

Sales must be made through an arms-length arrangement. No employee, agent, stockholder,
officer, director, servant, or family member of the Owner or its Management Company, or its
employees, agents, or servants thereof, related either by blood, marriage, or operation of law may
qualify for a unit financed with Housing Trust Funds or receive any benefit related in any way to
the administration or compliance with the conditions contained therein.

Affordable Housing Agreement

The owner of each affordable unit will be required to sign and record in the Cumberland County
Registry of Deeds an Affordable Housing Agreement (AHA) with the City and to include the
affordability restrictions as a covenant to the project’s deed. The Affordable Housing Agreement
shall be referenced directly in the property’s deed unless prohibited by federal, state, or local
law. In order to guarantee affordability in homeownership units, this recorded covenant will
limit increases in sales price according to the calculation defined by the City as defined in the
implementation regulations. It will limit the incomes of subsequent buyers to the same income
limits initially applied. It will also provide a right of first refusal and other purchase rights to the
City or its designee (e.g. another eligible household, or a nonprofit corporation).



February 7, 2020April 22, 2019
4 | Page
Right of First Refusal

The City of Portland shall have the right of first refusal to purchase any affordable unit that is in
jeopardy of losing its affordability restrictions due to foreclosure, delinquency of condominium
fee payments, or any other cause outside of the agreed upon term of restriction. The City’s Right
of First Refusal is not intended to infringe upon the ability of a mortgage lender to recapture any
money owed by the affordable unit’s owner. The intent is to ensure affordability of the unit for
eligible households.

Implementing Regulations

Regulations to further specify the details of the parameters outlined in this Annual Plan, shall be
developed, including, but not limited to:
 1. Specific methodology for income verification; and
 2. Underwriting criteria.


Attachments
#1 Point System for Evaluating and Scoring Applications




February 7, 2020April 22, 2019
5 | Page
Attachment #1

Point System for Evaluating and Scoring Applications (Max 100)
Policy Objectives: Total 50 Points

Proposed use of funds to achieve the City of Portland's goals and address demonstrated need.
 26 points
Maximum points will be awarded for those applications that:
 1. Market Demand— 42 points
 a. 42 points high demand, meets the City’s income targeting priority,
 b. 21 point moderate demand,
 c. 0 points does not demonstrate sufficient market demand
 2. Zoning – 810 points
 a. 810 points Development requires no zoning amendments or contract or
 conditional zone
 b. 57 points development requires a zoning amendment which is consistent with the
 City Comprehensive Plan
 c. 0 points development requires rezoning that is not consistent with the City’s
 Comprehensive Plan
 3. Economic diversity – 64 points
 a. 64 points creates housing options which promote economic diversity in the
 neighborhood in which the development is located
 b. 0 points does not promote economic diversity
 4. CHDO – 24 points
 a. 24 points Developer and owner are both controlled by CHDO
 b. 12 points either developer or owner are controlled by CHDO
 c. 0 points neither developer nor owner are controlled by CHDO
 5. City Subsidy – 6 points
 a. 6 points investment from City is <$10,000/unit
 b. 5 points investment from City is > or = $10,000 and <$12,000/unit
 c. 4 points investment from City is > or = $12,000 and <$14,000/unit
 d. 3 points investment from City is > or = $14,000 and <$16,000/unit
 e. 2 points investment from City is > or = $16,000 and <$18,000/unit
 f. 0 points investment from City is > or = $18,000/unit

Impact on surrounding neighborhood, including design compatibility and environmental issues.
 24 points
Maximum points will be awarded for those applications where:
1) site selection -- 7 points
 i) 7 points -- fully appropriate for use,
 ii) 5 points – appropriate, some concerns
 iii) 0 points – significant concerns
2) Exterior Design -- 5 points
 i) 5 points -- the design is fully consistent with neighborhood design characteristics,
 ii) 3 points – the design is an adequate fit with the neighborhood design,
 iii) 0 points – the design is a significant outlier
3) Amenities and unit design -- 7 points
 i) 7 points – amenities & unit design are well thought out and appropriate for residents,
February 7, 2020April 22, 2019
6 | Page
 ii) 5 points -- amenities & unit design are adequate,
 iii) 0 points – amenities and unit design raise significant concerns that resident needs will
 not be adequately addressed
4) Environmental -- 5 points
 i) 5 points – Phase I identifies no environmental issues
 ii) 3 points – Phase I identifies an environmental issue, but a Phase II shows a feasible,
 economically viable resolution which is included in the budgets;
 iii) 0 points – there are significant unresolved environmental issues, or no Phase I has
 been received.

Underwriting Criteria: Total 50 Points

Financial feasibility, including cost, development budget operating pro forma and the provision
of secured and leverage funds. 20 points

Maximum points will be awarded for those applications that:
  1. Development budget & sources and uses – 10 points
 a. 10 points – EVERY development budget line item for which there is a City of
 Portland guideline complies with that guideline AND all other line items are
 reasonable and customary;
 b. 8 points – ONE budget line item falls outside City guidelines or outside the
 standard of “reasonable & customary”;
 c. 6 points – TWO budget line items item falls outside City guidelines or outside the
 standard of “reasonable & customary”;
 d. Zero points – more than two budget items fail to meet City guidelines or fall
 outside “reasonable and customary”
  2. Operating pro forma – 10 points
 a. 10 points – EVERY operating pro forma line item for which there is a City of
 Portland guideline complies with that guideline AND all other line items are
 reasonable and customary;
 b. 8 points – ONE budget line item falls outside City guidelines or outside the
 standard of “reasonable & customary”;
 c. 6 points – TWO budget line items item falls outside City guidelines or outside the
 standard of “reasonable & customary”;
 d. Zero points – more than two budget items fail to meet City guidelines or fall
 outside “reasonable and customary”

Applicant's ability to complete project, including development team experience, capacity, project
readiness and timeframe for completion. 30 points

Maximum points will be awarded for those applications that:
  1. Readiness to proceed – 10 points
 a. 10 points – at least one letter of commitment or interest is included and ALL
 projected sources are projected at terms and conditions consistent with the City’s
 prior experience with the funder.
 b. 5 – ALL projected sources of funding include letters of commitment, letters of
 interest, or, if no letter is included, are projected at terms and conditions
 consistent with the City’s prior experience with this funder.
February 7, 2020April 22, 2019
7 | Page
 c. 0 – one or more sources are projected on terms that are not consistent with the
 City’s prior experience with the funder and are not documented by letter(s) from
 funder(s).
 2. Track record of development team – 10 points
 a. 10 – every development team member has a successful track record with this type
 of project and at this scale
 b. 7 – all but one development team members have a successful track record with
 this type of project and at this scale; one development team member has relevant
 experience but at a smaller scale or not of this project type
 c. 3 – two development team members, while having relevant experience, are new to
 this type of project or this scale of development
 d. 0 – the development team does not meet the criteria above
 3. Current Capacity of development team – 10 points
 a. 10 – development team members have exceptional depth of human and financial
 resources to complete this project;
 b. 8 -- development team members have the human and financial resources to
 complete this project;
 c. 3 – development team has a staffing gap in a significant role and a plan to address
 that gap, OR there are some concerns about the financial resources of the team to
 move the development forward;
 d. 0 - the development team does not meet the criteria described above




February 7, 2020April 22, 2019
8 | Page
 CITY OF PORTLAND
 Planning & Urban Development Department
 Housing and Community Development Division

 TO: Councilor Duson, Chair
 Members of the Housing Committee

 FROM: Mary Davis, Division Director
 Housing and Community Development Division

 DATE: February 7, 2020

 SUBJECT: 2020-2021 Affordable Housing Development Application

It has been the policy of the City of Portland to utilize an annual application and/or RFP
process for the allocation of city resources budgeted for the development of affordable
housing. The 2020-2021 Affordable Housing Development Application will make available an
estimated $976,576 from the 2020-2021 HOME ($497,545, including CHDO budget
allocations) and Housing Trust ($479,031) funds budgeted for affordable housing
development. The anticipated annual production rate of housing units is 55 - 95 units.

If the committee endorses the proposed application, it will be released with a notation that the
estimated funding available may be adjusted pending receipt of the final HOME allocation
amount from HUD and approval by the City Council of the Housing Program Budget in April.

Revisions made to the 2020 Application

 • There were several minor clarifying edits made to the application.

 • Section I.B. - Priority for the use of Housing Trust Funds will be to support
 public/private partnerships that create workforce housing units that are affordable to
 households earning 80% to 120% of the area median income. Priority for the use of
 HOME Program funds will be given to developments that provide units households
 earning 60% of area median income and below.

 • Point System for Evaluating and Scoring Applications: adjusted the point allocations
 in Section IV.A. to provide more emphasis on developments that are consistent with
 city goals, meet market demand and create economic diversity.

Staff Recommendation

Staff is seeking Committee approval of the application criteria for the 2020-2021 Affordable
Housing Development Application and requesting committee approval to make minor
amendments to the application prior to its release.
 389 Congress Street Room 312 • Portland, Maine 04101
 207- 874- 8711 mpd@portlandmaine.gov • www.portlandmaine.gov
 City of Portland

 Affordable Housing
 Development Application




 July 1, 2020 – June 30, 2021
 Applications will be accepted until all budgeted funds have been allocated.




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 TABLE OF CONTENTS
I. GENERAL INFORMATION ............................................................................................................. 3
 A. Availability of Funding ................................................................................................................ 3
 B. General Guidelines ....................................................................................................................... 3
 C. Federal Requirements ................................................................................................................... 3
 D. Goals for the Distribution of Funds.............................................................................................. 5
II. SCOPE OF SERVICES ...................................................................................................................... 6
 A. General Specifications.................................................................................................................. 6
 B. Site Information and Criteria........................................................................................................ 7
 C. Financial Feasibility ..................................................................................................................... 7
 D. Market Demand ............................................................................................................................ 7
 E. Applicant Capacity ....................................................................................................................... 7
 F. Term of Affordability ................................................................................................................... 8
 G. Financing Terms ........................................................................................................................... 8
 H. Design Compatibility ................................................................................................................... 9
 I. Timeframe .................................................................................................................................... 9
III. APPLICATION REQUIREMENTS .................................................................................................. 9
 A. Project Summary ........................................................................................................................ 10
 B. All Applications Must Provide The Following: ......................................................................... 10
IV. SELECTION PROCESS .................................................................................................................. 12
  A. Point System for Evaluating and Scoring Applications (Max 100) ........................................... 12
 B. Evaluation and Selection Process and Timeframe ..................................................................... 14
V. Instructions and Other Information................................................................................................... 15
VI. Equal Employment Opportunities..................................................................................................... 16
VII. Reservation of Rights ........................................................................................................................ 16
VIII.Appendices........................................................................................................................................ 17
IX. APPLICATION SIGNATURE PAGE *THIS PAGE MUST BE INCLUDED* ............................ 18
X. EXHIBIT #1 – DEFINITION OF A COMMUNITY HOUSING DEVELOPMENT
ORGANIZATION (24 CFR §92.2 and §92.300-303) .............................................................................. 19




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I. GENERAL INFORMATION
 A. Availability of Funding

The City of Portland has made the development of affordable housing a priority, as identified in the City
of Portland's 2016-2020 HUD 5-year Consolidated Plan, City Council Common Goals and the
Comprehensive Plan. To accomplish this priority, the City of Portland will accept applications for the
development of affordable housing in the City of Portland.

Certified Community Housing Development Organizations (CHDO’s) or organizations eligible for
CHDO certification are strongly encouraged to apply. The HUD definition of a CHDO organization is
attached as Exhibit #1 entitled Definition of a Community Housing Development Organization (CHDO).

The City of Portland’s Division of Housing and Community Development uses an application process to
ensure that public funds are utilized for maximum public benefit to accomplish specific objectives and
provide fair access to all applicants. Applications will be accepted until all budgeted funds are allocated.
The City of Portland reserves the right to partially fund application requests or deny any application that
does not meet the application criteria.

The City of Portland is making a combination of FY 202019-202120 HUD Home Investment Partnership
Program (HOME) funds (which includes a mandatory set-aside for CHDO organizations or organizations
eligible for CHDO certification) and local Housing Trust Funds (HTF). The Housing and Community
Development Division is utilizing a single application process for these funds. City staff will determine
which funding source is best for each project and then make funding recommendations to the City Council
for final approval.

Total Funding Available: $976,5761,269,085.

 B. General Guidelines

Developments shall provide units to households earning no more than 120%up to 100% of the area
median. Priority for the use of Housing Trust Funds will be to support public/private partnerships that
create workforce housing units that are affordable to households earning 80% to 120% of the area median
income. Priority for the use of HOME Program funds will be given to developments that provide units
households earning 60% of area median income and below. Projects with mixed income targeting and a
mix of bedroom size are strongly encouraged. The minimum term of affordability depends on the funding
source, but is not generally less than 30 years, and in some cases maymuch be 90 years. The affordability
term is to be secured by a declaration of covenants and restrictions recorded in the Cumberland County
Registry of Deeds.

This application outlines the selection criteria which all projects applying for these funds must meet, as
well as scoring factors which will be used by the City of Portland to evaluate the applications.

 C. Federal Requirements
These requirements will apply for any project that is awarded HOME or other federal funding.

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Environmental Review Requirements
Projects receiving HOME funding are subject to environmental review, clearance and release of funds by
the U.S. Department of Housing and Urban Development. Once an application has been submitted to the
City of Portland, the applicant cannot take any “choice limiting actions” prior to receiving notification
from the City that the environmental review process, including historic preservation review and clearance,
has been completed and a release of funds has been received. A Phase I ESA along with a lead and
asbestos testing report is required before HUD Environmental Review Requirements can be completed.

Choice limiting actions include, but are not limited to, (1) actions having an adverse impact – e.g.,
demolition, dredging, filling, excavation, including soliciting bids for these activities; (2) actions limiting
the choice of reasonable alternatives – e.g., execution of a legally binding agreement, signing a purchase
and sale agreement, signing an option agreement that does not allow the purchaser to elect to terminate
the option agreement if the property is not desirable; entering into real property acquisition (including
making bids on auctioned properties), leasing, rehabilitation, demolition, environmental remediation,
related site improvements, relocating buildings or structures, conversion of land or buildings/structures
(including soliciting bids to undertake these activities).

Federal Labor Standards
As may be applicable, projects receiving HOME funding must ensure that they and all contractors and
subcontractors meet requirements for federal prevailing wage rates specified under the Davis-Bacon Act.
The Act requires all laborers and mechanics employed by contractors or subcontractors in the performance
of construction work over $2,000, financed in whole or in part with assistance received under HUD
programs, shall be paid the prevailing wage as determined by the Secretary of Labor in accordance with
the Davis-Bacon Act, as amended (40 U.S.C. 276a-5). Projects that include 12 or more HOME-assisted
units must meet the requirements of the Davis-Bacon Act.

Notice: Any project approved for a site-specific tax increment financing district utilizing a credit
enhancement agreement must ensure that any firms employed in the construction phase of a TIF-
assisted project compensate all employees the current wage rates and fringe benefits as required
under applicable state prevailing wage law under 26 M.R.S.A. §1306, or Portland City Ordinance
Ch. 33, §33-1 to 33-12, whichever is greater. State prevailing wage rates may exceed Davis-Bacon
wage rates.

Section 3
All HOME projects must comply with Section 3 of the Housing and Urban Development Act of 1968.
Contractors and subcontractors performing work on Section 3-covered projects must provide, to the
greatest extent feasible, opportunities for the employment of low- and very low-income residents of the
local community and the businesses that substantially employ these persons.

Minority and Women Owned Business (MWBE) Participation
All HOME projects must complete, track and report on outreach and contracts given to women- and
minority-owned businesses to ensure their inclusion, to the maximum extent possible, in the procurement
of property and services. Applicants are encouraged to utilize firms certified as a Minority Business
Enterprise or Woman’s Business Enterprise as part of the development team. The development team
members include the developer, architect, attorney, general contractor and management agent.

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Lead-Based Paint
All HOME funded residential rehabilitation, adaptive re-use and construction activities must comply with
24 CFR Part 35 and Section 401(b) of the Lead-Based Paint Poisoning Prevention Act.

Access to the Internet
All new construction and substantial rehabilitation projects of multifamily rental housing will be required
to provide the installation of broadband internet access to its residents to help narrow the digital divide for
households in need.

Fair Housing and Equal Opportunity
[Title VI of the Civil Rights Act of 1964, as amended (42 U.S.C. 2000d et seq.) (HUD implementation regulations
24 CFR Part 1); The Fair Housing Act (42 U.S.C. 3601-3620)(24 CFR Part 100-115(; Equal Opportunity in Housing
(Executive Order 11063, as amended by Executive Order 12259)(24 CFR Part 107); Age Discrimination Act of
1975, as amended (42 U.S.C. 6101)(24 CFR Part 146).]

The Fair Housing Act prohibits discrimination in all housing-related transactions based on race, color,
national origin, religion, sex, disability, age or familial status. It also includes minimum accessibility
design requirements for all new construction and rehabilitation projects and requires that reasonable
accommodations be made in rules, policies, practices, services and reasonable structural modifications.
Section 504 of the Rehabilitation Act of 1973 prohibits discrimination based on disability and requires
that everyone have equal opportunity to obtain housing built with federal funds.

Affirmative Marketing
Developers must have tenant selection policies and criteria to ensure that tenants are selected for
occupancy at the property in a fair and equitable manner. Tenant selection policies must be based on
objective criteria that expressly prohibit bias. Tenant selection procedures should be clear and easily
understood by prospective tenants. An affirmative marketing plan is required to ensure that the property
serves a diverse cross-section of the population of the market area, must consist of actions to provide
information and otherwise attract eligible persons in the housing market area that might not otherwise
apply without special outreach, and ensure that the housing is available to qualified applicants without
regard to race, color, national origin, religion, sex, disability, or familial status.

Violence Against Women Act
Developers must comply with the Violence Against Women Act (VAWA) requirements in 24 CFR
§92.359 and 24 CFR Part 5, subpart L. VAWA provides protections and options for victims of domestic
violence, dating violence, sexual assault and stalking.

 D. Goals for the Distribution of Funds

The goal for the distribution of these funds is to increase, preserve, and modify the overall supply of
housing city-wide to meet the needs, preferences and financial capabilities of all Portland residents.
Development should be consistent with the City of Portland’s Comprehensive Plan and the HUD Five-
Year Consolidated Plan. The City of Portland seeks development projects that create contextually
appropriate housing density in and proximate to neighborhood centers, concentrations of services, and
transit nodes and corridors as a means of supporting complete neighborhoods. Projects should not require

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a contract or conditional zone (although other rezoning consistent with the City’s Comprehensive Plan
may be considered). Resolution of any zoning issues is required before City Council approval of the
applicants funding request. Developments should incorporate quality, sustainable design.

II. SCOPE OF SERVICES

 A. General Specifications

All applications submitted for this funding must meet the following selection criteria to be considered
further in the review process.

Eligible Projects

1) Projects must create rental housing units which promote economic diversity in the neighborhood in
 which the development is located. New construction, conversion of non-residential property to
 housing and rehabilitation of existing rental units that creates accessible or maintains affordable units
 is eligible. Projects that have previously received HOME funds are not eligible for additional HOME
 assistance.

2) All projects must provide rental units to households earning no more than 120% up to 100% of the
 area median income and meet the income and rent restrictions of the HOME and/or Housing Trust
 Fund Programs.

3) Projects must ensure that the affordable units within a mixed income development will be equal in
 square footage and comparable to the market rate units.

4) Housing First developments are encouraged.

5) Single Room Occupancy (SRO) and other supportive housing projects specifically for special needs
 populations are eligible under this application.

6) Projects receiving funding through this application must include a written occupancy policy that
 prohibits smoking in the units and the interior common areas of the project in addition to including a
 non-smoking clause in the lease for every household and making educational materials on tobacco
 treatment programs available to residents through the residence service coordinator, occupancy
 specialist, or property manager, such as the phone number for the statewide Maine Tobacco HelpLine.

7) Projects receiving funding through this application must set aside 10% of the units in the project for
 individuals or families residing in a Portland shelter. The City’s Health and Human Services
 Department would be responsible for providing referrals, providing or coordinating supportive
 services and financial resources to assist with monthly rent payments. A Supportive Housing
 Agreement between the City and the Developer would document the services and expectations. At
 the time of loan closing or prior to disbursement of the City’s funding, the requirements would be
 secured by a Declaration of Covenants which will be recorded in the Cumberland County Registry of
 Deeds.

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B. Site Information and Criteria

1) Site Control: Land or buildings proposed as part of a project under this application must have site
 control at the time the application is submitted in the form of title, purchase and sale agreement, option,
 long-term lease for a minimum of 90 years, or other acceptable method. At a minimum, site control
 must extend through December 31, 202019.

2) Local Approvals: Local land use approval is not required prior to submittal of the application, however
 approval is required before the City Council will approve the funding request. The applicant must
 submit an analysis of the project in relation to local land use regulations and site feasibility.

3) Applications must not require a contract or conditional zone. Resolution of any zoning issues is
 required before City Council approval of the applicants funding request.

C. Financial Feasibility

1) Financial applications must be developed in accordance with the underwriting guidelines of the
 primary funding source, including adequate cash flow and debt coverage ratio, and conform to the
 City of Portland’s underwriting criteria.

2) Use of Funds: All projects will be reviewed for the proposed use of funds compared to other resources.
 Applicants must describe the proposed mortgage and security position for the City of Portland's
 funding. The average City investment per unit, excluding TIF financing, is approximately $10,000.
 The City contribution per unit will not exceed $18,000. This amount may be adjusted at the discretion
 of the City Council, only for unusual circumstances where a larger amount is the only way a project
 that meets other City goals is needed. In those cases, the higher cost per unit ratio must be tied into the
 goals outlined in the City’s Comprehensive Plan.

 D. Market Demand

Applicants must provide an analysis and discussion of market demand justifying the need for the proposed
project.

 E. Applicant Capacity

All applicants must demonstrate capacity to develop, own and manage the proposed project. All
applications must provide evidence of a development team with the capacity to successfully complete the
project including:

1) Key staff members assigned to the project with the abilities and experience to successfully complete
 the project within the proposed timeframe.

2) An architect, general contractor and professionals on the team with the experience and capacity to
 complete the project.
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3) A management team with qualified personnel and the capacity and experience to operate, manage and
 maintain the affordable rental property of size and mix of the proposed project.

4) Qualified staff with the capacity to perform ongoing property ownership requirements such as
 budgeting, tax accounting and oversight of management and maintenance.

5) A portfolio of current affordable housing projects that are financially sound and meeting their
 established goals.

6) Support Services: Applications containing rental units targeted to special needs populations must
 include commitments for support services to be provided to the residents and have in place a policy to
 make accessible units available when needed if units are occupied by someone that does not need the
 accessible features.

 F. Term of Affordability

All projects must have a minimum affordability period of 90 years, secured by a land use restriction
covenant in the deed.

Projects receiving HOME funding maywill be charged an annual fee to cover the actual costs of federally
required HOME monitoring, per 24 CFR 92.214(b)(1)(i).

 G. Financing Terms
The following are general guidelines and the City reserves the right to adjust the terms of funding on a
case-by-case basis based on changes in conventional lending and other financing sources.

The City’s funding is generally in the form of soft “gap” financing. To allow for future investment in
affordable and workforce housing, the City seeks to achieve a reasonable return of capital and where
possible a return on investment based on the financing features of each funding request. The City allows
flexibility for creativity by development teams by establishing funding terms based on the financial
structure of each development project.

Funding in the form of loans may range from 30 years non-amortizing, deferred at 0% interest, to 30 year,
amortizing loans based on a financial analysis of the development project. A key tool used to perform the
financial analysis is the Debt Coverage Ratio (DCR). Projects with a DCR greater than or equal to 1.25
will be considered for a fully amortizing loan with a corresponding rate that either achieves a DCR of
1.15. Other DCR features are as such:

• Projects that have a DCR of less than 1.25 will be considered for interest only loans. The interest rate
 will be set at a percentage rate that will achieve a DCR of 1.15.
• Projects that are submitted at a DCR of 1.15 will be considered for a deferred cash flow loan.
• Grants may be considered when a project serves a substantially underserved population.
• A project with a sustained DCR greater than 1.5, after the application of a fully amortizing loan will
 be considered over subsidized. The funding request will be reduced to achieve a sustained DCR of no

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 more than 1.4. This may result in the funding request being reduced to zero. Projects of this nature
 are candidates for private financing.

 H. Design Compatibility

Projects must be designed to contribute to the character of their neighborhood and adhere to the following
general guidelines.

Project designs:

1) MUST comply with the City’s Green Building Ordinance (Chapter 6, Article VII, Sec. 6-165)
 (http://www.portlandmaine.gov/DocumentCenter/Home/View/1070). Please note that the Green
 Building Ordinance may be more restrictive than the requirements in Maine Housing’s Quality
 Standards and Procedure Manual. Applicant must provide evidence reasonably satisfactory to the City
 of Portland demonstrating that the project was designed, constructed and rehabilitated in accordance
 with the Green Building Ordinance.

2) Should establish a building form, scale, massing and rhythm appropriate for the surrounding
 neighborhood.

3) Should provide a quality design that, where possible, reinforces the public realm of open space,
 sidewalks and streets through appropriately scaled entries that orient to the street instead of interior
 blocks or parking lots, and incorporate porches, fenestration, landscaping, and architectural details.

4) MUST meet the accessibility requirements of the Fair Housing Act and Section 504 of the
 Rehabilitation Act of 1973, and the Maine Human Rights Act for multi-family housing. Provide for
 universal accessibility to the extent possible.

5) Should provide visual and acoustical privacy between units while maximizing natural light and
 ventilation within units.

 I. Timeframe

The applicant must describe projected dates by which commitments will be obtained; the closing will take
place, construction start-up, substantial completion, final completion and occupancy. Timeframes must be
realistic and achievable. All funded projects must be able to start construction within 12 months of notice
of award.

III. APPLICATION REQUIREMENTS
Complete responses to this application, should include one (1) original printed version of the application
with original signatures plus one (1) full electronic version, submitted via email, USB drive or CD.
Printed version must be signed by an officer or employee having authority to bind the organization.

Applications must be submitted electronically and in paper form to:

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 City of Portland: Housing and Community Development Division
 Attention: Victoria Volent
 389 Congress Street, Room 313
 Portland, ME 04101
 vvolent@portlandmaine.gov
 207-482-5028

All applicants are encouraged to apply by April 30May 31,, 202019. Those who require a conditional
commitment of funds as part of other financing applications, such as the Low Income Housing Tax Credit
Program, must apply no later than April 30, 2020May 31, 2019. The City of Portland will consider
applications received after April 30, 2020May 31, 2019 if funds are available. Applicants applying after
April 30, 2020May 31, 2019 should contact the City of Portland to confirm the availability of funds prior
to submitting an application.

 A. Project Summary
A brief description of the project, no longer than two pages, to include the number and type of units,
tenants or owners to be served, special features, the impact on the neighborhood and other ways the
application meets the selection criteria and preference guidelines.

Photographs and maps of the site and area are required.

Note: All respondents should investigate legal and zoning requirements for proposed projects prior to
submission of application.

 B. All Applications Must Provide The Following:

1) Evidence of site control

2) A zoning opinion from an attorney or land use professional indicating if the project meets current
 zoning, or if zoning amendments will be required.

3) Conceptual architectural and site plans

4) A project schedule showing critical path events and their timeframe for completion;

5) Map showing location of site

6) Corporation/partnership articles and by-laws

6)7) Organizational Chart

7)8) Organization’s DUNS Number




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8)9) Applicant’s audits for 3 most recent years. (If audits are not available, applicant must submit 3
 years of internally prepared or CPA compiled statements AND 3 years of tax returns WITH
 attachments).

9)10) Most recent quarterly income and expense report (management prepared).

10)11) Documentation demonstrating certification or eligibility to obtain certification as a CHDO (if
 seeking the CHDO funds)

 11)12) A brief development team summary, including:

 • The type of organization/ownership structure and organization chart if developer is not the
 same legal entity as the ultimate owner of the project
 • The names of Board of Directors, Corporate Officers, or Owners, as appropriate
 • Name, title and relevant experience of individuals involved in managing the business entity
 and this proposed project. A copy of the 501(3)(c) exemption certification
 • Brief description of similar projects completed for developer, architect, and General
 Contractor (if selected)
 • A list of all projects currently in development with status and projected timeframe

 12)13) A sources and uses funding statement *

 13)14) A detailed development budget including all acquisition, construction, and soft costs,
 including any prefunded reserves and developer fee*

 14)15) Cost estimates for construction, signed by architect or GC

 15)16) For renovation projects, a capital needs assessment completed by an independent party,
 including their qualifications to perform such assessment

 16)17) Preliminary operating budget identifying rents and expenses for the first year*

 17)18) Projected prefunded project reserves and annual contributions to reserves*

 18)19) Debt service coverage ratio over the 2015-year operating pro forma timeline*

 19)20) A 2015-year operating pro forma for the project with inflators of 2% on income and 3% on
 expenses*

 20)21) Evidence of financial commitments, or explanation of the ability and timing to secure those
 commitments. A statement describing the applicant's capacity for and experience in raising the
 type of capital needed to finance projects of this size and type.

 21)22) Projects serving special needs populations must provide evidence of commitments of
 support services, and a description of the service provider and funding cycle for those services.


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 22)23) Applicant must include a management plan for the long-term management of the project
 including manager’s experience and capacity.

 23)24) An analysis and discussion of market demand justifying the need for the proposed project.

 24)25) For Renovation of Operational Projects (or projects with operational components)
 the following items are also required:

 • Relocation plan and budget
 • Description of all current debt, operation subsidies, and services provided (as applicable)
 • Current rent roll
 • 2 years of audits for project property (if available) OR 2 years of management income and
 expense statements for project property
 • Most recent Quarter internally prepared income and expense statement.

*Please use the Maine Housing Underwriting spreadsheet or its tax credit equivalent


IV. SELECTION PROCESS
Selection criteria will be used in reviewing and scoring the applications.

 A. Point System for Evaluating and Scoring Applications (Max 100)
Policy Objectives: Total 50 Points
Proposed use of funds to achieve the City of Portland's goals and address
demonstrated need. 26 points
Maximum points will be awarded for those applications that:
  1. Market Demand— 42 points
 a. 42 points high demand, meets the City’s income targeting priority
 b. 1 point moderate demand,
 c. 0 points does not demonstrate sufficient market demand
  2. Zoning – 810 points
 a. 810 points Development requires no zoning amendments or contract or conditional zone
 b. 57 points development requires a zoning amendment which is consistent with the City
 Comprehensive Plan
 c. 0 points development requires rezoning that is not consistent with the City’s
 Comprehensive Plan
  3. Economic diversity – 64 points
 a. 64 points creates housing options which promote economic diversity in the neighborhood
 in which the development is located
 b. 0 points does not promote economic diversity
  4. CHDO – 24 points
 a. 24 points Developer and owner are both controlled by CHDO
 b. 12 points either developer or owner are controlled by CHDO
 c. 0 points neither developer nor owner are controlled by CHDO
  5. City Subsidy – 6 points

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 a. 6 points investment from City is <$10,000/unit
 b. 5 points investment from City is > or = $10,000 and <$12,000/unit
 c. 4 points investment from City is > or = $12,000 and <$14,000/unit
 d. 3 points investment from City is > or = $14,000 and <$16,000/unit
 e. 2 points investment from City is > or = $16,000 and <$18,000/unit
 f. 0 points investment from City is > or = $18,000/unit

Impact on surrounding neighborhood, including design compatibility and
environmental issues. 24 points
Maximum points will be awarded for those applications where:
  1. Ssite selection -- 7 points
 a. 7 points -- fully appropriate for use,
 b. 5 points – appropriate, some concerns
 c. 0 points – significant concerns
  2. Exterior Design -- 5 points
 a. 5 points -- the design is fully consistent with neighborhood design characteristics,
 b. 3 points – the design is an adequate fit with the neighborhood design,
 c. 0 points – the design is a significant outlier
  3. Amenities and unit design -- 7 points
 a. 7 points – amenities & unit design are well thought out and appropriate for residents,
 b. 5 points -- amenities & unit design are adequate,
 c. 0 points – amenities and unit design raise significant concerns that resident needs will not be
 adequately addressed
  4. Environmental -- 5 points
 a. 5 points – Phase I identifies no environmental issues
 b. 3 points – Phase I identifies an environmental issue, but a Phase II shows a feasible,
 economically viable resolution which is included in the budgets;
 c. 0 points – there are significant unresolved environmental issues, or no Phase I has been
 received.

Underwriting Criteria: Total 50 Points
Financial feasibility, including cost, development budget operating pro forma and the
provision of secured and leverage funds. 20 points
Maximum points will be awarded for those applications that:

 1. Development budget & sources and uses – 10 points
 a. 10 points – EVERY development budget line item for which there is a City of Portland
 guideline complies with that guideline AND all other line items are reasonable and
 customary;
 b. 8 points – ONE budget line item falls outside City guidelines or outside the standard of
 “reasonable & customary”;
 c. 6 points – TWO budget line items item falls outside City guidelines or outside the standard
 of “reasonable & customary”;
 d. Zero points – more than two budget items fail to meet City guidelines or fall outside
 “reasonable and customary”
 2. Operating pro forma – 10 points
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 a. 10 points – EVERY operating pro forma line item for which there is a City of Portland
 guideline complies with that guideline AND all other line items are reasonable and
 customary;
 b. 8 points – ONE budget line item falls outside City guidelines or outside the standard of
 “reasonable & customary”;
 c. 6 points – TWO budget line items item falls outside City guidelines or outside the standard
 of “reasonable & customary”;
 d. Zero points – more than two budget items fail to meet City guidelines or fall outside
 “reasonable and customary”

Applicant's ability to complete project, including development team experience,
capacity, project readiness and timeframe for completion. 30 points
Maximum points will be awarded for those applications that:
  1. Readiness to proceed – 10 points
 a. 10 points – at least one letter of commitment or interest is included and ALL projected
 sources are projected at terms and conditions consistent with the City’s prior experience
 with the funder.
 b. 5 – ALL projected sources of funding include letters of commitment, letters of interest, or,
 if no letter is included, are projected at terms and conditions consistent with the City’s prior
 experience with this funder.
 c. 0 – one or more sources are projected on terms that are not consistent with the City’s prior
 experience with the funder and are not documented by letter(s) from funder(s).
  2. Track record of development team – 10 points
 a. 10 – every development team member has a successful track record with this type of project
 and at this scale
 b. 7 – all but one development team members have a successful track record with this type of
 project and at this scale; one development team member has relevant experience but at a
 smaller scale or not of this project type
 c. 3 – two development team members, while having relevant experience, are new to this type
 of project or this scale of development
 d. 0 – the development team does not meet the criteria above
  3. Current Capacity of development team – 10 points
 a. 10 – development team members have exceptional depth of human and financial resources
 to complete this project;
 b. 8 -- development team members have the human and financial resources to complete this
 project;
 c. 3 – development team has a staffing gap in a significant role and a plan to address that gap,
 OR there are some concerns about the financial resources of the team to move the
 development forward;
 d. 0 -- the development team does not meet the criteria described above

 B. Evaluation and Selection Process and Timeframe
Applications will be reviewed by an evaluation team that will include City of Portland staff. The
following process will be used:



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1) All applications will be reviewed for completeness. Only complete applications will be reviewed
 under the scoring factors in order to recommend the most qualified applications based on the
 information submitted. The application review team may confer with the applicants and/or third parties
 to clarify or verify information and request additional information.

2) Recommendations, along with all applications and scoring information, will be forwarded to the City
 Council’s Housing Committee for review and approval. Their recommendations will be forwarded to
 the City Council for final review and approval.

3) Applicants will be kept informed throughout the review process, specifically in regard to
 recommendations and funding levels.

4) The evaluation and review process should be substantially complete within 30 days of receipt of
 complete application. Applicants will be notified of their application status as soon as possible.

5) Based on City Council approval, successful applicants will receive a letter of funds reservation. A
 letter of funds reservation is not a commitment letter but an agreement to set aside budgeted funds for
 up to six months, to allow the project sponsor to proceed with securing other commitments.

V. Instructions and Other Information
The City of Portland reserves the right, at its sole discretion, to award all, a portion, or none of the available
funding from this application, as well as reject any and all applications for city funding, based on the
quality and merits of the applications received, or when it is determined to be in the public interest to do
so. Furthermore, the City of Portland may extend deadlines and timeframes, as needed.

Confidentiality: Applications received by the City of Portland shall become a matter of public record
subject to public inspection, except to the extent, which an applicant designates in writing, proprietary
data to be confidential and submits that data under separate cover, such information may be held from
public inspection, as provided in Maine law: 5 MRSA Sections 13119-A and 13119-B.

Compliance with Federal Law: The selected applicant will be required to certify that the development
and management of the proposed housing will be in compliance with all applicable laws, executive orders,
OMB Circulars and federal regulations, including but not limited to: Fair Housing Act, Equal Opportunity
and Non-discrimination, National Environmental Policy Act (NEPA), the Uniform Relocation Assistance
and Real Property Acquisition Policies Act, the Davis-Bacon Act, the Lead-Based Paint Poisoning
Prevention Act, Flood Disaster Protection Act, Conflict of Interest, Contractor Debarment and Cost
Principles.

Projects funded through HOME must meet the rules and regulations of the HOME Program as noted in
24 CFR Part 92, as amended, and the requirements of the Consolidated and Further Continuing
Appropriations Act of 2012 and 2013. Any costs incurred by the City to meet HOME Program
regulations, such as newspaper advertisements, underwriting fees, etc., shall be passed along to the
selected applicant.

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VI. Equal Employment Opportunities
Vendor shall comply fully with the Nondiscrimination and Equal Opportunity Provisions of the Workforce
Investment Act of 1998, as amended (WIA, 29 CFR part 37); the Nontraditional Employment for Women
Act of 1991; title VI of the Civil Rights Act of 1964, as amended; section 504 of the Rehabilitation Act
of 1973, as amended; the Age Discrimination Act of 1975, as amended; title IX of the Education
Amendments of 1972, as amended; and with all applicable requirements imposed by or pursuant to
regulations implementing those laws, including but not limited to 29 CFR part 37.

VII. Reservation of Rights
The City of Portland reserve the right, at its sole discretion, to award all, a portion, or none of the available
funding from this application, as well as reject any and all applications based on the quality and merits of
the applications received, or when it is determined to be in the public interest to do so. Furthermore, the
City of Portland may extend deadlines and timeframes, as needed.

The selection of a proposal through this application process does not guarantee any other City approvals.
All projects will be subject to the City’s standard development review process. Similarly, selection of a
proposal through this application process does not signify that the City will not request modifications to
the proposed development plan or negotiate additional details, covenants or terms that are not specifically
outlined in this application.

The City of Portland reserves the right to substantiate any proposers’ qualifications, capability to perform,
availability, past performance records and to verify that the applicant is current in its financial obligations
to the City of Portland.

All materials and equipment used as well as all methods of installation shall comply at a minimum with
any and all Federal, OSHA, State and/or local codes, including applicable municipal ordinances and
regulations.

The successful applicant shall agree to defend, indemnify and save the City of Portland harmless from all
losses, costs or damages caused by its acts or those of its agents, and, before signing the contract, will
produce evidence satisfactory to the City of Portland’s Corporation Counsel of coverage for General
Public and Automobile Liability insurance in amounts not less than $400,000 per person, for bodily injury,
death and property damage, protecting the contractor and the City of Portland, and naming the City of
Portland as an additional insured from such claims, and shall also procure Workers’ Compensation
insurance.

Pursuant to City of Portland procurement policy and ordinance, the City of Portland is unable to contract
with businesses or individuals who are delinquent in their financial obligations to the City of Portland.
These obligations may include but are not limited to real estate and personal property taxes and sewer user
fees. Applicants who are delinquent in their financial obligations to the City of Portland must do one of
the following: bring the obligation current, negotiate a payment plan with the City of Portland’s Treasury
office, or agree to an offset which shall be established by the contract which shall be issued to the
successful applicant.

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The City of Portland, Maine, reserves the right to waive any informalities in applications, to accept any
application or portion thereof, and, to reject any and all applications, should it be in the best in the best
interest of the City of Portland to do so.

It is the custom of the City of Portland, Maine to pay its bills 30 days following the receipt of correct
invoices for all items covered by the approved application.

VIII. Appendices
Exhibit #1. HUD definition of a Community Housing Development Organization (CHDO)




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IX. APPLICATION SIGNATURE PAGE *THIS PAGE MUST BE INCLUDED*
The UNDERSIGNED hereby declares that he/she or they are the only person(s), firm or corporation
interested in this application as principal, that it is made without any connection with any other person(s),
firm or corporation submitting an application for the same.

The UNDERSIGNED hereby declares that they have read and understand all conditions as outlined in the
invitation for bids, and that their application is made in accordance with same.

The UNDERSIGNED hereby declares that any person(s) employed by the City of Portland, Maine, who
has direct or indirect personal or financial interest in this application or in any portion of the profits that
may be derived there from, has been identified and the interest disclosed by separate attachment. (Please
include in your disclosure any interest which you know of. An example of a direct interest would be a
City of Portland employee who would be paid to perform services under this application. An example of
indirect interest would be a City of Portland employee who is related to any officers, employees, principal
or shareholders of your firm or to you. If in doubt as to status or interest, please disclose to the extent
known).

The proposer acknowledges the receipt of Addenda numbered
 If Applicable
COMPANY NAME:
 (Individual, Partnership, Corporation, Joint Venture)

AUTHORIZED SIGNATURE: DATE:
 (Officer, Authorized Individual or Owner)
PRINT NAME & TITLE:

ADDRESS:

TELEPHONE: E-MAIL:

FEDERAL TAX ID #: DUNS #:

In your organizations preceding completed fiscal year, did the organization receive:
 (1) 80 percent or more of its annual gross revenues in U.S. federal contracts, subcontracts, loans, grants,
subgrants, and/or cooperative agreements; and
 (2) $25,000,000 or more in annual gross revenues from U.S. federal contracts, subcontracts, loans, grants,
subgrants, and/or cooperative agreements? ☐ Yes ☐ No

Does the public have access to information about the compensation of the executives in the organization
through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (18
U.S.C. 78m(a), 78o(d) or section 6104 of the Internal Revenue Code of 1986? ☐ Yes ☐ No

NOTE: All bids must bear the handwritten signature of a duly authorized member or employee of the
organization making the bid. This sheet must be signed and returned with the application package.



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X. EXHIBIT #1 – DEFINITION OF A COMMUNITY HOUSING
DEVELOPMENT ORGANIZATION (24 CFR §92.2 and §92.300-303)
1. Is a private nonprofit organization under State or local laws;

2. Has no part of its net earnings inuring to the benefit of any member, founder, contributor, or
 individual;

3. Is neither controlled by, nor under the direction of, individuals or entities seeking to derive profit
 or gain from the organization. A community housing development organization may be sponsored
 or created by a for-profit entity, but:

 i. The for-profit entity may not be an entity whose primary purpose is the development or
 management of housing, such as a builder, developer, or real estate management firm.
 ii. The for-profit entity may not have the right to appoint more than one-third of the
 membership of the organization's governing body. Board members appointed by the for
 profit entity may not appoint the remaining two-thirds of the board members; and
 iii. The community housing development organization must be free to contract for goods and
 services from vendors of its own choosing;
 iv. The officers and employees of the for-profit entity may not be officers or employees of the
 community housing development organization;

4. Has a tax exemption ruling from the Internal Revenue Service under section 501(c)(3) or (4) of
 the Internal Revenue Code of 1986 (26 CFR 1.501(c)(3)-1 or 1.501(c)(4)-1)), is classified as a
 subordinate of a central non-profit under section 905 of the Internal Revenue Code of 1986, or if
 the private nonprofit organization is a wholly owned entity that is disregarded as an entity separate
 from its owner for tax purposes (e.g., a single member limited liability company that is wholly
 owned by an organization that qualifies as tax-exempt), the owner organization has a tax
 exemption ruling from the Internal Revenue Service under section 501(c)(3) or (4) of the Internal
 Revenue Code of 1986 and meets the definition of “community housing development
 organization”;

5. Is not a governmental entity (including the participating jurisdiction, other jurisdiction, Indian
 tribe, public housing authority, Indian housing authority, housing finance agency, or
 redevelopment authority) and is not controlled by a governmental entity. An organization that is
 created by a governmental entity may qualify as a community housing development organization;
 however, the governmental entity may not have the right to appoint more than one-third of the
 membership of the organization's governing body and no more than one-third of the board
 members may be public officials or employees of governmental entity. Board members appointed
 by a governmental entity may not appoint the remaining two thirds of the board members. The
 officers or employees of a governmental entity may not be officers or employees of a community
 housing development organization;

6. Has standards of financial accountability that conform to 24 CFR 84.21, "Standards for Financial
 Management Systems;"

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7. Has among its purposes the provision of decent housing that is affordable to low-income and
 moderate-income persons, as evidenced in its charter, articles of incorporation, resolutions or
 bylaws;

8. Maintains accountability to low-income community residents by:

 i. Maintaining at least one-third of its governing board's membership for residents of low-
 income neighborhoods, other low-income community residents, or elected representative
 of low-income neighborhood organizations. For urban areas, "community" may be a
 neighborhood or neighborhoods, city, county or metropolitan area; for rural areas, it may
 be a neighborhood or neighborhoods, town, village, county, or multi-county area (but not
 the entire State); and
 ii. Providing a formal process for low-income program beneficiaries to advise the
 organization in its decisions regarding the design, siting, development, and management of
 affordable housing;

9. Has a demonstrated capacity for carrying out housing projects assisted with HOME funds. A
 designated organization undertaking development activities as a developer or sponsor must satisfy
 this requirement by having paid employees with housing development experience who will work
 on projects assisted with HOME funds. For its first year of funding as a community housing
 development organization, an organization may satisfy this requirement through a contract with a
 consultant who has housing development experience and will advise and train appropriate key
 staff of the organization. An organization that will own housing must demonstrate capacity to act
 as owner of a project and meet the requirements of §92.300(a)(2). A nonprofit organization does
 not meet the test of demonstrated capacity based on any person who is a volunteer or whose
 services are donated by another organization; and

10. Has a history of serving the community within which housing to be assisted with HOME funds is
 to be located. In general, an organization must be able to show one year of serving the community
 before HOME funds are reserved for the organization. However, a newly created organization
 formed by local churches, service organizations or neighborhood organizations may meet this
 requirement by demonstrating that its parent organization has at least a year of serving the
 community.




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 CITY OF PORTLAND
 Planning & Urban Development Department
 Housing and Community Development Division

 TO: Councilor Duson, Chair
 Members of the Housing Committee

 FROM: Mary Davis, Division Director
 Housing and Community Development Division

 DATE: February 5, 2020

 SUBJECT: 2020 Affordable Housing TIF Application


In an effort to coordinate and streamline the process for the allocation of city resources, the
Housing and Community Development Division created an application for the Affordable
Housing Tax Increment Financing (AHTIF) Program. Maine State Housing Authority requires
specific information to review and approve an AHTIF request from the City of Portland. The
application form presented here will ensure that all AHTIF applicants provide the required
information.

If the committee endorses the proposed application, it will be released no later than March 2 in
order to accommodate the review process with MaineHousing and the LIHTC QAP process.




 389 Congress Street Room 312 • Portland, Maine 04101
 207- 874- 8711 mpd@portlandmaine.gov • www.portlandmaine.gov
 City of Portland

 Affordable Housing Tax
 Increment Financing
 Application




 January – December, 2020


City of Portland, Maine Affordable Housing TIF Application v1.5.20 2020
 TABLE OF CONTENTS

Table of Contents
I. GENERAL INFORMATION ................................................................................................................ 3
 A. Availability of Funding .................................................................................................................. 3
 B. General Guidelines ......................................................................................................................... 3
 C. Conditions for Approval................................................................................................................. 3
 D. Goals for the designation of an Affordable Housing TIF .............................................................. 4
II. SCOPE OF SERVICES ........................................................................................................................ 4
 A. General Specifications.................................................................................................................... 4
 B. Site Information and Criteria .......................................................................................................... 4
 C. Financial Feasibility ....................................................................................................................... 5
 D. Market Demand .............................................................................................................................. 5
 E. Applicant Capacity ......................................................................................................................... 5
 F. Term of Affordability ..................................................................................................................... 5
 G. Financing Terms ............................................................................................................................. 5
 H. Design Compatibility ..................................................................................................................... 6
 I. Timeframe ...................................................................................................................................... 6
III. APPLICATION REQUIREMENTS ..................................................................................................... 6
 A. Project Summary ............................................................................................................................ 7
  B. All Applications Must Provide The Following: ............................................................................. 7
IV. SELECTION PROCESS ...................................................................................................................... 9
 A.Evaluation and Selection Process and Timeframe ......................................................................... 9
V. Instructions and Other Information....................................................................................................... 9
VI. Equal Employment Opportunities....................................................................................................... 10
VII. Reservation of Rights .......................................................................................................................... 10




City of Portland, Maine Affordable Housing TIF Application v1.5.20 2020
I. GENERAL INFORMATION
 A.  Availability of Funding
The Affordable Housing Tax Increment Financing (AHTIF) Program is a financing tool authorized
under state law (30-A M.R.S.A. §§5245-5250-G) to support the implementation of affordable housing
development programs. The City of Portland has made the development of housing a priority, as
identified in the City of Portland's 2016-2020 HUD 5-year Consolidated Plan, City Council Common
Goals and the Comprehensive Plan. To accomplish this priority, the City of Portland will accept
applications to designate an affordable housing development district for the creation or maintenance of
affordable housing in the City of Portland.

The City of Portland’s Division of Housing and Community Development follows a three-step process
to approve establishment of an Affordable Housing TIF District. First, the City Council’s Economic
Development and Housing Committees provide a recommendation to the City Council regarding the
establishment of an Affordable Housing TIF district. If the City Council approves the recommendation,
the City submits an application to the Maine State Housing Authority. MaineHousing reviews the
application from the City to ensure compliance with the Affordable Housing Tax Increment Financing
Statute. The process begins with the submittal of a completed Affordable Housing Tax Increment
Financing application to the City of Portland. The City of Portland reserves the right to deny any
application that does not meet the application criteria.

 B. General Guidelines
Developments shall provide decent, safe and sanitary dwellings such as single-family homes,
apartments, condominiums, or other living accommodations for households whose income does not
exceed 120% of the median income for the area as defined by the U.S. Department of Housing and
Urban Development (HUD). Affordable housing does not include facilities such as shelters, nursing
homes, convalescent homes, hospitals, residential treatment facilities, correctional facilities, student
dormitories, or unattached mobile homes, regardless of income level. Projects must show that the
development meets an identified community housing need, the City’s participation is financially necessary in
order for the project to proceed, and the applicant has the financial capacity to support their project. The ongoing
affordability period for a single-family, owner-occupied unit is 10 years and 30 years for rental units.
The affordability term is to be secured by a declaration of covenants and restrictions recorded in the
Cumberland County Registry of Deeds. A minimum of $500,000 in new taxable investment property
value for affordable housing development is needed to qualify for an Affordable Housing TIF.

The following sections outline the information to be included in the Affordable Housing TIF
application.

 C. Conditions for Approval
Designation of an Affordable Housing Development District is subject to the following conditions.

i. At least 25%, by area, of the real property within an Affordable Housing Development district
 must be suitable for residential use; or be a blighted area; or in need of rehabilitation or
 redevelopment.

ii. The Affordable Housing Development program must show that the development meets an
 identified community housing need.
City of Portland, Maine Affordable Housing TIF Application v1.5.20 2020
 iii. The district must be primarily a residential development on which at least 33% of the dwelling
 units are affordable for households at or below 120% of Area Median Income (AMI) and that may
 be designed to be compact and walkable and to include internal open space, other common open
 space and one or more small-scale nonresidential uses of service to the residents of the
 development.

 iv. Projects approved for a site-specific tax increment financing district utilizing a credit enhancement agreement
 must ensure that any firms employed in the construction phase of a TIF-assisted project compensate all
 employees the current wage rates and fringe benefits as required under applicable state prevailing wage law
 under 26 M.R.S.A. §1306, or Portland City Ordinance Ch. 33, §33-1 to 33-12, whichever is greater. State
 prevailing wage rates may exceed Davis-Bacon wage rates.

 D. Goals for the designation of an Affordable Housing TIF
 Authorized by state statue as a public purpose for the development of affordable, livable housing, the
 goal for the designation of an Affordable Housing TIF is to increase, preserve, and modify the overall
 supply of housing citywide to meet the needs, preferences and financial capabilities of all Portland
 residents. Development should be consistent with state law and the City of Portland’s Comprehensive
 Plan. The City of Portland seeks development projects that create contextually appropriate housing
 density in and proximate to neighborhood centers, concentrations of services, and transit nodes and
 corridors as a means of supporting complete neighborhoods. Projects should not require a contract or
 conditional zone (although other rezoning consistent with the City’s Comprehensive Plan may be
 considered). Resolution of any zoning issues is required before City Council approval of the applicants
 funding request. Developments should incorporate quality, sustainable design.

 II. SCOPE OF SERVICES
 A.  General Specifications
 Eligible projects must create permanent structures such as single-family homes, apartments or
 condominium units and provide housing for households whose income does not exceed 120% of the
 median income for the area as defined by the U.S. Department of Housing and Urban Development
 (HUD).

 B. Site Information and Criteria
1) Site Control: Land or buildings proposed as part of a project under this application must have site
 control at the time the application is submitted in the form of title, purchase and sale agreement,
 option, long-term lease for a minimum of 90 years, or other acceptable method. At a minimum, site
 control must extend through December 31, 2020.

2) Local Approvals: Local land use approval is not required prior to submittal of the application,
 however approval is required before the City Council will approve the Affordable Housing TIF
 request. The applicant must submit an analysis of the project in relation to local land use regulations
 and site feasibility.

3) Applications must not require a contract or conditional zone. Resolution of any zoning issues is
 required before City Council approval of the applicants Affordable Housing TIF request.


 City of Portland, Maine Affordable Housing TIF Application v1.5.20 2020
 C. Financial Feasibility
1) Financial applications must be developed in accordance with the underwriting guidelines of the
 primary funding source, including adequate cash flow and debt coverage ratio, and conform to the City
 of Portland’s underwriting criteria.

2) All projects will be reviewed for the cost of improvements made within the Affordable Housing
 Development district.

 D. Market Demand
 Applicants must show that the development meets an identified community housing need.

 E. Applicant Capacity
 All applicants must demonstrate capacity to develop, own and manage the proposed project. All
 applications must provide evidence of a development team with the capacity to successfully complete the
 project including:

 1) Key staff members assigned to the project with the abilities and experience to successfully complete
 the project within the proposed timeframe.

 2) An architect, general contractor and professionals on the team with the experience and capacity to
 complete the project.

 3) A management team with qualified personnel and the capacity and experience to operate, manage
 and maintain the affordable rental property of size and mix of the proposed project.

 4) Qualified staff with the capacity to perform ongoing property ownership requirements such as
 budgeting, tax accounting and oversight of management and maintenance.

 5) A portfolio of current affordable housing projects that are financially sound and meeting their
 established goals.

 6) Support Services: Applications containing rental units targeted to special needs populations must
 include commitments for support services to be provided to the residents and have in place a policy
 to make accessible units available when needed if units are occupied by someone that does not need
 the accessible features.

 F. Term of Affordability
 The ongoing affordability period for a single-family, owner-occupied unit is 10 years and 30 years for
 rental units. The affordability term is to be secured by a declaration of covenants and restrictions
 recorded in the Cumberland County Registry of Deeds.

 G. Financing Terms
 During the term of the Affordable Housing District and the Development Program, tax increment
 revenues from the Affordable Housing District claimed by the City as captured assessed value may be
 used to pay authorized project costs. Authorized project costs are noted in 30-A M.R.S.A. §5249, a list
 of which is attached. Tax increment revenues will be paid by the City to the Project owner pursuant to a
 City of Portland, Maine Affordable Housing TIF Application v1.5.20 2020
 Credit Enhancement Agreement to be entered into by and between the City and the Project owner.

 H. Design Compatibility
 Projects must be designed to contribute to the character of their neighborhood and adhere to the following
 general guidelines. Project designs:

 1) MUST comply with the City’s Green Building Ordinance (Chapter 6, Article VII, Sec. 6-165)
 (https://www.portlandmaine.gov/DocumentCenter/Home/View/1070). Please note that the Green
 Building Ordinance may be more restrictive than the requirements in Maine Housing’s Quality
 Standards and Procedure Manual. Applicant must provide evidence reasonably satisfactory to the
 City of Portland demonstrating that the project was designed, constructed and rehabilitated in
 accordance with the Green Building Ordinance.
 2) Should establish a building form, scale, massing and rhythm appropriate for the surrounding
 neighborhood.

 3) Should provide a quality design that, where possible, reinforces the public realm of open space,
 sidewalks and streets through appropriately scaled entries that orient to the street instead of interior
 blocks or parking lots, and incorporate porches, fenestration, landscaping, and architectural details.

 4) MUST meet the accessibility requirements of the Fair Housing Act and Section 504 of the
 Rehabilitation Act of 1973, and the Maine Human Rights Act for multi-family housing. Provide for
 universal accessibility to the extent possible.

 5) Should provide visual and acoustical privacy between units while maximizing natural light and
 ventilation within units.

 I. Timeframe
The applicant must describe projected dates by which commitments will be obtained; the closing will take
place, construction start-up, substantial completion, final completion and occupancy. Timeframes must be
realistic and achievable. All funded projects must be able to start construction within 12 months of notice
of award.

 III. APPLICATION REQUIREMENTS
 Complete responses to this application, should include one (1) original printed version of the application
 with original signatures plus one (1) full electronic version, submitted via email, USB drive or CD.
 Printed version must be signed by an officer or employee having authority to bind the organization.

 Applications must be submitted electronically and in paper form to:
 City of Portland: Housing and Community Development Division
 Attention: Victoria Volent
 389 Congress Street, Room 312, Portland, ME 04101
 vvolent@portlandmaine.gov; 207-482-5028

 All applicants are encouraged to apply by April 30, 2020. Those who require a conditional commitment
 as part of other financing applications, such as the Low Income Housing Tax Credit Program, must
 apply no later than April 30, 2020.
 City of Portland, Maine Affordable Housing TIF Application v1.5.20 2020
 A. Project Summary
 A narrative description of the project that includes:
 • Property address
 • Tax chart, block and lot number
 • Total district acreage
 • Zoning designation where district is located, including allowed uses in that zone
 • Description of municipal housing need addressed by the creation of the district and how the
 district addresses that need
 • Percentage of district acreage that is suitable for residential use, blighted, or in need of
 rehabilitation/redevelopment;
 • Number and type of units to be constructed or rehabilitated; (level of affordability, rental,
 homeownership, single-family home, condominium unit; number of bedrooms in each unit,
 etc.);
 • Description of residential and non-residential uses in the district and acreage of each;
 • Description of accessory uses relating to residential use, if any;
 • Description of how housing and facilities in the district will be operated after completion;
 • Description of planned uses of tax increment revenues from the district;

 Note: All respondents should investigate legal and zoning requirements for proposed projects prior to
 submission of application.

 B. All Applications Must Provide The Following:
1) Evidence of site control

2) A zoning opinion from an attorney or land use professional indicating if the project meets current
 zoning, or if zoning amendments will be required.

3) Conceptual architectural and site plans

4) A project schedule showing critical path events and their timeframe for completion;

5) A municipal map showing district boundaries

6) A tax map showing district boundaries

7) Corporation/partnership articles and by-laws

8) Organization’s DUNS Number

9) Applicant’s audits for 3 most recent years. (If audits are not available, applicant must submit 3 years
 of internally prepared or CPA compiled statements AND 3 years of tax returns WITH attachments).

10) Most recent quarterly income and expense report (management prepared).


 City of Portland, Maine Affordable Housing TIF Application v1.5.20 2020
11) A brief development team summary, including:

 • The type of organization/ownership structure and organization chart if developer is not the
 same legal entity as the ultimate owner of the project
 • The names of Board of Directors, Corporate Officers, or Owners, as appropriate
 • Name, title and relevant experience of individuals involved in managing the business entity and
 this proposed project. A copy of the 501(3)(c) exemption certification
 • Brief description of similar projects completed for developer, architect, and General Contractor (if
 selected)
 • A list of all projects currently in development with status and projected timeframe
12) A sources and uses funding statement *

13) A detailed development budget including all acquisition, construction, and soft costs, including any
 prefunded reserves and developer fee*

14) Cost estimates for construction, signed by architect or GC

15) Applicant must provide evidence reasonably satisfactory to the City of Portland demonstrating that the
 project was designed, constructed and rehabilitated in accordance with the City’s Green Building
 Ordinance (Chapter 6, Article VII, Sec. 6-165).

16) For renovation projects, a capital needs assessment completed by an independent party,
 including their qualifications to perform such assessment

17) Preliminary operating budget identifying rents and expenses for the first year*

18) Projected prefunded project reserves and annual contributions to reserves*

19) Debt service coverage ratio over the 15-year operating pro forma timeline*

20) A 15-year operating pro forma for the project with inflators of 2% on income and 3% on
 expenses*

21) Evidence of financial commitments, or explanation of the ability and timing to secure those
 commitments. A statement describing the applicant's capacity for and experience in raising the type of
 capital needed to finance projects of this size and type.

22) Projects serving special needs populations must provide evidence of commitments of support
 services, and a description of the service provider and funding cycle for those services.

23) Applicant must include a management plan for the long-term management of the project
 including manager’s experience and capacity.

24) An analysis and discussion of market demand justifying the need for the proposed project.

25) For Renovation of Operational Projects (or projects with operational components) the
 City of Portland, Maine Affordable Housing TIF Application v1.5.20 2020
 following items are also required:

 • Relocation plan for persons temporarily or permanently displaced by the development activities
 • Relocation budget
 • Description of all current debt, operation subsidies, and services provided (as applicable)
 • Current rent roll
 • 2 years of audits for project property (if available) OR 2 years of management income and
 expense statements for project property
 • Most recent Quarter internally prepared income and expense statement.

*Please use the Maine Housing Underwriting spreadsheet or its tax credit equivalent, if applicable.

 IV. SELECTION PROCESS
 Selection criteria will be used in reviewing the applications.

 A. Evaluation and Selection Process and Timeframe
 Applications will be reviewed by an evaluation team that will include City of Portland staff. The
 following process will be used:

 1) All applications will be reviewed for completeness. Only complete applications will be reviewed in
 order to recommend the most qualified applications based on the information submitted. The
 application review team may confer with the applicants and/or third parties to clarify or verify
 information and request additional information.

 2) Recommendations, along with all applications, will be forwarded to the City Council’s Economic
 Development and Housing Committees for review and approval. Their recommendation will be
 forwarded to the City Council for final review and approval prior to submission to MaineHousing.

 3) Based on City Council approval, successful applications must be reviewed by MaineHousing to
 ensure the proposed district and development program comply with the Municipal Affordable
 Housing Development District statue, 30-A M.R.S.A. §§5245 – 5250 – G.

 4) Applicants will be kept informed throughout the review process.

 5) The evaluation and review process should be substantially complete within 30 days of receipt of the
 completed application. Applicants will be notified of their application status as soon as possible.

 V. Instructions and Other Information
 The City of Portland reserves the right, at its sole discretion, to award all, a portion, or none of the available
 funding from this application, as well as reject any and all applications for city funding, based on the
 quality and merits of the applications received, or when it is determined to be in the public interest to do
 so. Furthermore, the City of Portland may extend deadlines and timeframes, as needed.

 Confidentiality: Applications received by the City of Portland shall become a matter of public record
 City of Portland, Maine Affordable Housing TIF Application v1.5.20 2020
subject to public inspection, except to the extent, which an applicant designates in writing, proprietary
data to be confidential and submits that data under separate cover, such information may be held from
public inspection, as provided in Maine law: 5 MRSA §§ 13119-A and 13119-B.

Compliance with Federal Law: The selected applicant will be required to certify that the development
and management of the proposed housing will be in compliance with all applicable laws, executive orders,
OMB Circulars and federal regulations, including but not limited to: Fair Housing Act, Equal Opportunity
and Non-discrimination, National Environmental Policy Act (NEPA), the Uniform Relocation Assistance
and Real Property Acquisition Policies Act, the Davis-Bacon Act, the Lead-Based Paint Poisoning
Prevention Act, Flood Disaster Protection Act, Conflict of Interest, Contractor Debarment and Cost
Principles.

Projects must meet the rules and regulations of MaineHousing as noted in their Affordable Housing Tax
Increment Financing Application. Any costs incurred by the City to meet Maine Housing AHTIF
Application regulations, such as newspaper advertisements, underwriting fees, etc., shall be passed along
to the selected applicant.

VI. Equal Employment Opportunities
Vendor shall comply fully with the Nondiscrimination and Equal Opportunity Provisions of the Workforce
Investment Act of 1998, as amended (WIA, 29 CFR part 37); the Nontraditional Employment for Women
Act of 1991; title VI of the Civil Rights Act of 1964, as amended; section 504 of the Rehabilitation Act
of 1973, as amended; the Age Discrimination Act of 1975, as amended; title IX of the Education
Amendments of 1972, as amended; and with all applicable requirements imposed by or pursuant to
regulations implementing those laws, including but not limited to 29 CFR part 37.

VII. Reservation of Rights
The City of Portland reserve the right, at its sole discretion, to designate an affordable housing development
district and adopt an affordable housing development program for the district based on the quality and merits
of the applications received, or when it is determined to be in the public interest to do so. Furthermore,
the City of Portland may extend deadlines and timeframes, as needed.

The selection of a proposal through this application process does not guarantee any other City approvals.
All projects will be subject to the City’s standard development review process. Similarly, selection of a
proposal through this application process does not signify that the City will not request modifications to
the proposed development plan or negotiate additional details, covenants or terms that are not specifically
outlined in this application.

The City of Portland reserves the right to substantiate any proposers’ qualifications, capability to perform,
availability, past performance records and to verify that the applicant is current in its financial obligations
to the City of Portland.

All materials and equipment used as well as all methods of installation shall comply at a minimum with
any and all Federal, OSHA, State and/or local codes, including applicable municipal ordinances and
regulations.

The successful applicant shall agree to defend, indemnify and save the City of Portland harmless from all
losses, costs or damages caused by its acts or those of its agents, and, before signing the contract, will
City of Portland, Maine Affordable Housing TIF Application v1.5.20 2020
produce evidence satisfactory to the City of Portland’s Corporation Counsel of coverage for General
Public and Automobile Liability insurance in amounts not less than $400,000 per person, for bodily injury,
death and property damage, protecting the contractor and the City of Portland, and naming the City of
Portland as an additional insured from such claims, and shall also procure Workers’ Compensation
insurance.

Pursuant to City of Portland procurement policy and ordinance, the City of Portland is unable to contract
with businesses or individuals who are delinquent in their financial obligations to the City of Portland.
These obligations may include but are not limited to real estate and personal property taxes and sewer user
fees. Applicants who are delinquent in their financial obligations to the City of Portland must do one of
the following: bring the obligation current, negotiate a payment plan with the City of Portland’s Treasury
office, or agree to an offset, which shall be established by the contract, which shall be issued to the
successful applicant.

The City of Portland, Maine, reserves the right to waive any informalities in applications, to accept any
application or portion thereof, and, to reject any and all applications, should it be in the best in the best
interest of the City of Portland to do so.

It is the custom of the City of Portland, Maine to pay its bills 30 days following the receipt of correct
invoices for all items covered by the approved application.




City of Portland, Maine Affordable Housing TIF Application v1.5.20 2020
VIII. APPLICATION SIGNATURE PAGE *THIS PAGE MUST BE INCLUDED*
The UNDERSIGNED hereby declares that he/she or they are the only person(s), firm or corporation
interested in this application as principal, that it is made without any connection with any other person(s),
firm or corporation submitting an application for the same.

The UNDERSIGNED hereby declares that they have read and understand all conditions as outlined in the
Affordable Housing Tax Increment Financing Application, and that their application is made in accordance
with same.

The UNDERSIGNED hereby declares that any person(s) employed by the City of Portland, Maine, who
has direct or indirect personal or financial interest in this application or in any portion of the profits that
may be derived there from, has been identified and the interest disclosed by separate attachment. (Please
include in your disclosure any interest which you know of. An example of a direct interest would be a
City of Portland employee who would be paid to perform services under this application. An example of
indirect interest would be a City of Portland employee who is related to any officers, employees, principal
or shareholders of your firm or to you. If in doubt as to status or interest, please disclose to the extent
known).

COMPANY NAME:
 (Individual, Partnership, Corporation, Joint Venture)

AUTHORIZED SIGNATURE: DATE:
 (Officer, Authorized Individual or Owner)
PRINT NAME & TITLE:

ADDRESS:

TELEPHONE: E-MAIL:

FEDERAL TAX ID #: DUNS #:


NOTE: All bids must bear the handwritten signature of a duly authorized member or employee of the
organization making the bid. This sheet must be signed and returned with the application package.




City of Portland, Maine Affordable Housing TIF Application v1.5.20 2020
 MRS Title 30-A, §5249. PROJECT COSTS




 §5249. Project costs
 1. Authorized project costs. The director shall review proposed project costs to ensure
 compliance with this subsection. Authorized project costs are:
 A. Costs of improvements made within the affordable housing development district, including, but
 not limited to:
 (1) Capital costs, including, but not limited to:
 (a) The acquisition of land or construction of public infrastructure improvements for
 affordable housing development;
 (b) The demolition, alteration, remodeling, repair or reconstruction of existing buildings,
 structures and fixtures;
 (c) Site preparation and finishing work; and
 (d) All fees and expenses that are eligible to be included in the capital cost of such
 improvements, including, but not limited to, licensing and permitting expenses and
 planning, engineering, architectural, testing, legal and accounting expenses;
 (2) Financing costs, including, but not limited to, closing costs, issuance costs and interest paid
 to holders of evidences of indebtedness issued to pay for project costs and any premium paid
 over the principal amount of that indebtedness because of the redemption of the obligations
 before maturity;
 (3) Real property assembly costs;
 (4) Professional service costs, including, but not limited to, licensing, architectural, planning,
 engineering and legal expenses;
 (5) Administrative costs, including, but not limited to, reasonable charges for the time spent
 by municipal employees in connection with the implementation of an affordable housing
 development program;
 (6) Relocation costs, including, but not limited to, relocation payments made following
 condemnation;
 (7) Organizational costs relating to the establishment of the affordable housing district,
 including, but not limited to, the costs of conducting environmental impact and other studies
 and the costs of informing the public about the creation of affordable housing development
 districts and the implementation of project plans;
 (8) Costs of facilities used predominantly for recreational purposes, including, but not limited
 to, recreation centers, athletic fields and swimming pools;
 (9) Costs for child care, including finance costs and construction, staffing, training,
 certification and accreditation costs related to child care located in the affordable housing
 development district;
 (10) Costs of case management and support services; and
 (11) Operating costs, including but not limited to property management and administration,
 utilities, routine repairs and maintenance, insurance, real estate taxes and funding of a projects
 capital reserve account; and [PL 2013, c. 312, §4 (AMD).]
 B. Costs of improvements that are made outside the affordable housing development district but
 are directly related to or are made necessary by the establishment or operation of the district,
 including, but not limited to:



Generated
12.05.2019 §5249. Project costs | 1
 MRS Title 30-A, §5249. PROJECT COSTS



 (1) That portion of the costs reasonably related to the construction, alteration or expansion of
 any facilities not located within the district that are required due to improvements or activities
 within the district, including, but not limited to, sewage treatment plants, water treatment plants
 or other environmental protection devices; storm or sanitary sewer lines; water lines; electrical
 lines; improvements to fire stations; and amenities on streets;
 (2) Costs of public safety improvements made necessary by the establishment of the district;
 (3) Costs of funding to mitigate any adverse impact of the district upon the municipality and
 its constituents. This funding may be used for funding public kindergarten to grade 12 costs
 and public facilities and improvements; and
 (4) Costs to establish permanent housing development revolving loan funds or investment
 funds. [PL 2003, c. 426, §1 (NEW).]
 [PL 2013, c. 312, §4 (AMD).]
 2. Limitation. Tax increments received from any affordable housing development program may
 not be used to circumvent other tax laws.
 [PL 2003, c. 426, §1 (NEW).]
 SECTION HISTORY
 PL 2003, c. 426, §1 (NEW). PL 2013, c. 312, §4 (AMD).

The State of Maine claims a copyright in its codified statutes. If you intend to republish this material, we require that you include
the following disclaimer in your publication:
All copyrights and other rights to statutory text are reserved by the State of Maine. The text included in this publication reflects
changes made through the First Regular Session of the 129th Maine Legislature and is current through October 1, 2019. The text
is subject to change without notice. It is a version that has not been officially certified by the Secretary of State. Refer to the Maine
Revised Statutes Annotated and supplements for certified text.
The Office of the Revisor of Statutes also requests that you send us one copy of any statutory publication you may produce. Our
goal is not to restrict publishing activity, but to keep track of who is publishing what, to identify any needless duplication and to
preserve the State's copyright rights.

PLEASE NOTE: The Revisor's Office cannot perform research for or provide legal advice or interpretation of Maine law to the
public. If you need legal assistance, please contact a qualified attorney.




 Generated
2 | §5249. Project costs 12.05.2019
 CITY OF PORTLAND
 Planning & Urban Development Department
 Housing and Community Development Division


 TO: Councilor Duson, Chair
 Members of the Housing Committee

 FROM: Victoria Volent, Housing Program Manager
 Housing and Community Development Division

 DATE: January 20, 2020

 SUBJECT: City-Owned Property Review


Introduction

During the Housing Committee meeting on November 13, 2019, the Committee requested
staff provide information regarding four City-Owned Properties. Each of these parcels has
been previously reviewed by the City Council during a presentation by the Health and Human
Services Committee in regards to proposed site locations for homeless services in Portland.

A summary of each parcel follows.


33 Portland Street

The .3204 acre (13,956 sq. ft.) parcel located in the Bayside area at 33 Portland Street is
an active surface level parking lot used by the School Department’s Central Office
located at 351 Cumberland Avenue.

The property is collectively comprised of three separate abutting parcels located in the B2b
zone. Moderate to high-density housing is a character of the B2b zone. The minimum lot
area per dwelling unit is one unit for every 435 sq. ft., which would allow for 32 units of
housing on the parcel. The assessed value is currently $227,980.

A department-wide survey by the City-owned and Tax Acquired Property Committee
(COTAPC) has never been requested on this parcel.




 389 Congress Street Room 312 • Portland, Maine 04101
 207- 874- 8711 mpd@portlandmaine.gov • www.portlandmaine.gov
157 Brackett Street

The .1942 acre (8,460 sq. ft.) parcel located in the West Bayside area at 157 Brackett Street
is an active 20-space surface level parking lot used as employee and visitor parking for Reiche
School, parking for customers of area businesses, and off-street parking after hours.

As a result of an inquiry from a developer and responding to a request from the Housing and
Community Development Division, the City-Owned and Tax
Acquired Property Committee (COTAPC) reviewed the possible disposition of city-
owned property at 157 Brackett Street in July, 2014. A draft RFP was presented
to the Housing Committee on September 29, 2014. After much public comment
regarding Reiche School, safety issues, and area parking concerns, the
Housing Committee postponed action until city staff could coordinate a
neighborhood meeting to discuss these issues. As a result of a meeting
coordinated through the West End Neighborhood Association, several safety
improvements were made including installation of two new crosswalks, four
brick curb extensions/curb ramps for ADA compliance and better pedestrian
visibility, four new pedestrian/school crossing signs and the installation of
granite curbing to create a treed esplanade along a portion of the school
frontage. An RFP for sale of the property was issued on July 9, 2015. The only
respondent who replied to the RFP did not consummate the sale.

The property is located in the B-1 zone, which supports mixed-use buildings. The minimum
lot area per dwelling unit is one unit for every 435 sq. ft., which would allow for up to
19 units of housing on the parcel. The assess value is currently $126,300.


176 Clark Street

The .1678 acre (7,313 sq. ft.) parcel located in the West Bayside area at 176 Clark Street is
an active 16-space surface level parking lot used as employee and visitor parking
for Reiche School, parking for customers of area businesses, and off-street parking after
hours.

The developer who inquired into the 157 Brackett Street lot (see above) approached City
staff with the proposal to use the city-owned lot at 176 Clark Street for housing
development and create parking on the 157 Brackett Street lot and adjacent property at
1 Joy Place, which the developer had under an option to purchase. The intent being to
create one parking area to accommodate the parking currently existing at 176 Clark
Street and 157 Brackett Street. A department-wide survey was conducted by
COTAPC during July, 2014. Due to the complicated nature of the transaction, the
developer did not pursue the request. COTAPC did not move forward with a RFP for
176 Clark Street.

The property is located in the R-6 zone, which supports high-density
residential development characterized by multi-family dwellings. The minimum lot area
per dwelling unit is one unit for every 725 sq. ft., which would allow for up to 10 units
of housing on the parcel. The assess value is currently $79,500.



 389 Congress Street Room 312 • Portland, Maine 04101
431 Commercial Street

The 1.29 acre (56,245 sq. ft.) parcel located in the West End near the Casco Bay Bridge at
431 Commercial Street is a parking lot used regularly by the City for various purposes,
including placing cars there during snow bans.

The property was acqired by the City of Portland in the Order of Condemnation dated August
18, 1997 for the purpose of permitting the expansion of the facility at the International Marine
Terminal. A payment of $590,000 was remitted to the previous owner (Angelo Ciocca of
Bridgeport Associates).

The property is located in the B-5b zone, which is characterized by urban commercial mixed-
use. There does not exist a minimum lot area per dwelling unit in the B-5b zone. The assess
value is currently $562,500.

A department-wide survey by the City-owned and Tax Acquired Property Committee
(COTAPC) has never been requested on this parcel.




Attachments:

33 Portland Street parcel view
33 Portland Street Assessor’s database
157 Brackett parcel view
157 Brackett Street Assessor’s database
176 Clark Street parcel view
176 Clark Street Assessor’s database
431 Commercial Street parcel view
431 Commercial Street Assessor’s database




 389 Congress Street Room 312 • Portland, Maine 04101
 207- 874- 8711 mpd@portlandmaine.gov • www.portlandmaine.gov
33 Portland Street
157 Brackett Street
176 Clark Street
431 Commercial Street



 Parcel 043 C007




 P


 Parcel 043 C009
 Draft 2020 Housing Committee Work Plan
 as of February 6, 2020

February 12, 2020
 1. Rental Housing Advisory Committee Policy Recommendation
 2. (Action Item) Housing Program Budget - Review and Recommendation to the City Council
 3. (Action Item) Renewal of Membership in the Cumberland County HOME Consortium
 4. (Action Item) Review and Recommendation to the City Council of the 2020 Housing Trust Fund Annual Plan
 5. (Action Item) Affordable Housing Development Application - Review and Approval to Issue by the Committee
 6. (Action Item) Affordable Housing TIF Application – Review and Approval to issue by the Committee
 7. Presentation of City-Owned Property for Review
 8. 2020 Work Plan Discussion – Housing Committee Goals for 2020
March 4, 2020 – Joint Meeting Economic Development
 1. Presentation on Limited Equity Co-Operative Housing Model
 2. Update on HCD Eligible Areas Map
 3. Executive Session to discuss disposition of City-Owned Property – Joint Meeting with Economic Development
 Committee
 4. (Action Item) Review and Recommendation regarding Rental Housing Advisory Committee Policy Recommendation
 5. 2020 Work Plan Discussion
April 8, 2020
 1. Communication Item: Community Development Week – April 13-18/Fair Housing Month
 2. 2020 Work Plan Discussion
May 13, 2020
 1. Communication Item FY21 HUD Annual Allocation Plan
 2. 2020 Work Plan Discussion
May or June, 2020 (Possible Joint Meeting with Economic Development Committee)
 1. (Action Item) Review and Approval of Affordable Housing TIF Applications
June 10, 2020
 1. (Action Item) Review and Approval of Funding Requests Received from the Affordable Housing Development
 Applications
 2. 2020 Work Plan Discussion
July 8, 2020
 1. 2020 Work Plan Discussion
August 12, 2020
 1. 2020 Work Plan Discussion
September 9, 2020 (need to reschedule due to conflict with City Council Meeting)
 1. Presentation, Overview and Integrated Report from Permitting and Inspections and Fire Department re: Short-term
 and Long-term Rental Housing Safety & Inspection Program - Implementation and Financial Report (Public
 Comment)
 2. Presentation, Overview and Report from the Rental Housing Advisory Committee (Public Comment)
 3. Communication Item: FY20 HUD Consolidated Annual Performance Report
 4. 2020 Work Plan Discussion
October 14.2020
 1. Presentation of 2020 Interim Housing Report
 2. 2020 Work Plan Discussion
November 11, 2020 (Veterans Day – will need to reschedule meeting date)
 1. Review of 2020 Annual Housing Committee Report
 2. 2020 and 2021 Work Plan Discussion (new and/or updated recommendations to forward to the 2021 Housing
 Committee)
December 9, 2020 – no December meeting?

 WORK PLAN TOPICS DISCUSSED AT JANUARY 9, 2020 MEETING
Coordinate and be kept aware of ReCode Committee process, meetings, etc.
 1
Street Standards
City-Owned Property
Housing Forum
Inclusionary Zoning – minor process/clarifying language updates

 COMPLETED WORK
January 9, 2020 (Thursday)
 1. 2020 Work Plan Discussion
 2. Communication Item(s): Follow-up Response to Comments regarding the 2019 Housing Report, and Bayside Village
 Follow-up




 2