CHAPTER 150
SHARE-EXPANSION GRANT/LOAN PROGRAM (REPEALED)

Part I
General

13VAC5-150-10. Definitions. (Repealed.)

The following words and terms, when used in these guidelines, shall have the following meaning unless the context clearly indicates otherwise:

"Acquisition" means the purchase of real property (building, structures, land).

"Application" means the request, on behalf of the applicant to the State, for a loan or grant fund reservation under the SHARE-Expansion Loan and Grant Programs.

"Appraised value" means the value of the building and land as determined by a certified appraiser for marketing purposes.

"Assessed value" means the value of the building and land as determined by the real estate assessment office of the local government for tax purposes. The applicable assessed value shall be that which is in effect as of the application date.

"DHCD" means the Department of Housing and Community Development.

"Emergency shelter" means a building or facility operated on a nonprofit and nondiscriminatory basis, which provides free temporary accommodations and related human services for homeless persons, wherein the typical stay is less than 30 days.

"Energy grant" means a grant which may be awarded to finance certain energy-related improvements within the SHARE-Expansion Grant/Loan Program.

"Energy-related improvements" means physical improvements to structures which are being rehabilitated which contribute to fuel cost savings and overall less energy consumption, and which have been so designated by the department. They may include installation or replacement of storm doors and windows; caulking and weatherstripping; roof, floor and wall repair as associated with insulation improvements; and furnace repair.

"Expansion" means increasing the number of beds provided by the sponsor through rehabilitation, addition of new space to an existing building, through the acquisition of an existing building, or through construction. The addition or rehabilitation of nonresidential space which is essential to the operation of the facility is also permitted, but only in conjunction with an increase in beds.

"Facility" means either an emergency shelter, transitional shelter, or single room occupancy housing.

"Fund" means the Virginia Housing Partnership Fund.

"Grant" means a grant made under SHARE-Expansion Grant/Loan Program.

"Grant agreement" means the agreement between DHCD and the project sponsor pertaining to the terms and conditions provided within the SHARE-Expansion Grant/Loan Program.

"Grantee" means a grant recipient under the SHARE-Expansion Grant/Loan Program.

"Homeless" means persons or families who are without housing or who are in imminent danger of being without housing.

"Loan" means a loan made under SHARE-Expansion Grant/Loan Program.

"Loan agreement" means the agreement between DHCD and the project sponsor pertaining to the terms and conditions provided in the SHARE-Expansion Grant/Loan Program.

"Locality" means a city or county.

"Project sponsor" means a nonprofit, incorporated organization, a governmental entity, or a for-profit (limited to SRO projects and only for loan and energy funds). Examples of project sponsors include, but are not limited to, cities, counties, towns, redevelopment and housing authorities, area agencies on aging, independent nonprofit housing organizations and others.

"Program" means the SHARE-Expansion Grant/Loan Program.

"Rehabilitation" means substantial physical improvements/repairs to a facility which will secure it structurally, correct building, health or fire safety code related defects, increase energy efficiency and assure safe and sanitary operation.

"State" means the Department of Housing and Community Development or such other entity as DHCD shall designate to act on its behalf.

"Single room occupancy housing" means permanent residential facilities for the homeless, consisting of a single room housing unit with either private or shared bath facilities with the optional provision of kitchen facilities, and in which rents may be charged to occupants.

"Transitional housing" means residential facilities for the homeless designed to meet their longer-term housing and human services needs, wherein the typical stay is over 30 days and less than two years, and in which rents may be charged to occupants.

"VHDA" means Virginia Housing Development Authority.

Part II
Eligibility

13VAC5-150-20. Eligible applicants. (Repealed.)

To be eligible applicants must be:

1. Nonprofit organizations incorporated under the laws of the Commonwealth of Virginia;

2. Governmental entities, including redevelopment and housing authorities; or

3. For-profit entities (may only apply for Expansion Loan and Energy Grant funds for SRO projects).

13VAC5-150-30. Eligibility requirements. (Repealed.)

To be eligible applicants:

1. Must be providing for expansion of number of beds, in order to receive Expansion Grant Funds (nonexpansion projects may be eligible for loan and energy funds only);

2. Must match SHARE funds for non-Virginia Housing Partnership Funds on a one-for-one basis. DHCD reserves the right to reduce the match for SRO's in order to meet the goals and objectives of the program; and

3. Must operate on year-round basis.

13VAC5-150-40. Eligible activities. (Repealed.)

To be eligible activities must be related to:

1. Acquisition, new construction, rehabilitation, and furnishings.

2. Energy-related improvements are encouraged.

NOTE: Luxury improvements are prohibited.

13VAC5-150-50. Operational requirements. (Repealed.)

To be eligible applicants:

1. Must operate facility for the homeless.

2. Must practice nondiscrimination in all programs and services including, but not limited to the delivery of services, opportunities or benefits based on race, national origin, color, or religion;

3. Must not require participation in a religious, sectarian, or philosophical service, rite, meeting or ritual as a condition for receiving shelter or related services;

4. Must not require a fee or donation as a condition for receiving emergency shelter or related services (transitional and SRO housing are excluded); and

5. Must operate a facility that is in compliance with applicable state and local health, building and fire safety codes, or agree to make necessary improvements/repairs for such code compliance on such schedule as the department shall determine.

Part III
Distribution of Funds

13VAC5-150-60. Distribution of funds. (Repealed.)

A. Funding priority. There are no set asides although DHCD shall endeavor to fund at least one emergency shelter, one transitional facility, and one single room occupancy facility. However, applicants who propose to expand or establish emergency shelter, transitional housing, or SRO facilities for the homeless will receive priority funding over applicants who do not propose to expand or establish these facilities.

B. Competitive ranking. All applications will be ranked competitively by the department within the areas of cost effectiveness, administrative capacity, leveraging, project design, unmet needs, site control and the provision of support services. There are no geographic set asides of funds; however, DHCD shall seek to achieve an equitable geographic distribution of funds.

The maximum amount available for each loan or grant application, or both, is as follows:

1. Loan or grant, or both, to shelter or transitional facility - $125,000.

2. Loan or grant, or both, to SRO - $15,000 per unit up to $500,000.

Part IV
Loan and Grant Terms and Conditions

13VAC5-150-70. Loan and grant terms and conditions. (Repealed.)

A. Loans will have a 0% interest rate for a term of up to 15 years. Energy-related improvements may be eligible for an energy grant. Loan recipients will sign a loan agreement, note, and deed of trust with the state.

B. Grants must be repaid to the state, if during the first five years after the closing of the grant or grants, the facility is used for some purpose other than that stated in the grant or loan agreement, unless approved by the state.

C. All loans and grants exceeding $10,000 total will be secured by a lien on the property. This lien may be subordinate to any primary financing on the project. Title insurance will be required unless waived by DHCD for loans or grants, or both, over $10,000.

D. Loan and grant applications will be analyzed by DHCD staff on two financial criteria:

1. The project sponsor's track record and potential for raising the funds needed for loan amortization will be analyzed.

2. The loan or grant amount plus any existing debt may not exceed 100% of the after-rehab property value. After-rehab property value may be estimated by the local tax assessor based on the current tax assessed value and the work write-up, cost estimates, and design plans for the rehabilitation, or it may be estimated by an appraiser using the current market appraisal and the related plans for rehabilitation.

E. The Virginia Housing Development Authority will disburse funds and collect payments for loans.

F. The project sponsor must own the property or have a lease for use of the building. If the project sponsor is leasing the property, that lease must be for a period of not less than 10 years, unless otherwise approved by the state.

G. A loan or grant may be assumed provided the new borrower continues to comply with the requirements of the loan or grant agreement, and approval is given by DHCD.

H. SHARE-Expansion Loans may not be prepaid unless authorized by the state.