DOH Housing Development Scoring Criteria

Primary Factors

Management Capacity

Experience - Staff will consider DOH experience, affordable housing experience, general development experience, local experience, and experience with that particular project type.

DOH compliance record - The presence of repeat findings, escalation letters, and poor performance despite staff technical assistance would have a negative impact on this score.

Justification: Consistent with current practices, DOLA will evaluate the capacity of the project team. DOLA evaluates each applicant’s capacity to fulfill the objectives of the project by evaluating similar projects completed by the applicant. DOLA will evaluate applicant-provided narrative, corporate bios, and resumes. Applicants must demonstrate an ability to comply with Federal and State regulations and reporting requirements. DOLA will consider experience with DOH applications, affordable housing experience, general development experience of all partners involved in a project, local experience, and experience with that particular project type. DOLA will also look at staff turnover and vacancy rates, including changes in organizational leadership.

DOLA will score the compliance record of the developer/property management company. Developers/property management companies with a strong compliance record would be given a higher score.
Consistent with current practices, developers/property management companies with outstanding findings would be required to cure any outstanding findings. The presence of repeat findings, escalation letters, and poor performance despite staff technical assistance would have a negative impact on this score.

• High Points: 20
• Mid Points: 10
• No Points: 0

Leveraged funds

Funding request as a % of total project costs

Justification: DOLA will consider the funding request as a percentage of total development costs. Due to differences in per unit maximums and funding source availability, DOH will use a different benchmark for rental and homeownership projects.

• Benchmark: 10% for rental projects
• Benchmark: 11% for rural rental projects (non-LIHTC)
• Benchmark: 15% for homeownership projects

Projects slightly below these benchmarks will qualify for medium points,
and projects significantly below the benchmark will earn high points.

The current maximum per-unit subsidies are as follows:

Urban projects: $50,000

Rural projects: $55,000

Prop 123 Homeownership: $70,000, up to $84,000 with bonuses outlined
on the New Construction/Acquisition Rehabilitation page.

• High Points: 20
• Mid Points: 10
• No Points: 0

Cost Reasonableness

Total development costs per unit

Justification: DOLA will consider total development costs per unit as measured against the DOH published range. Staff aggregates project cost data and updates cost assessment ranges every two years. These are published in the Application Instructions (p. 11-12).

• High Points: 10
• Mid Points: 5
• No Points: 0

Energy Efficiency Certification Pursued

Justification: DOLA will publish a list of energy efficiency certifications programs and will award higher points to projects pursuing certifications with more rigorous requirements. Currently, those certifications are:

Medium points:

• National Green Building Standards (NGBS ICC) - silver or gold
• Energy Star NextGen Certification (US EPA)
• Enterprise Green Communities (EGC)

High Points:

• Enterprise Green Communities Certification Plus (EGC Plus)
• Zero Energy Ready Homes (US DOE)
• National Green Building Standards (NGBS ICC) - emerald

• High Points: 10
• Mid Points: 5
• No Points: 0

Accessibility

Development of accessible units above benchmarks

Justification: DOLA will score projects against a minimum requirement (for Federal funds) and benchmark (for State funds) that 10% of the units be accessible for mobility impairments and 4% of the units be accessible for sensory impairments. Projects exceeding these minimum requirements will score additional points. This is consistent with the current minimum requirement for federal funds, and this would create the same benchmark for state funds.

• High Points: 10
• Mid Points: 5
• No Points: 0

Bonus Points

Bonus points will be awarded for projects that incorporate the following innovative priorities:

Transit & Community Connections

As defined by HB24-1313

• Justification: Project is located:
  • within a transit corridor identified by the HB 24-1313 transit map (both transit areas and optional transit areas), or
  • If you are not on transit map, have provided a response to the following questions that indicates thoughtful transit or service connections within a local community:
    • Where is your project situated in the local community with respect to access to local transit, services, jobs, etc.?
    • How does your proposal encourage the use of transportation and/or connectivity to services? Note:
      this may include references to future services.
• Bonus Points: 2
• No Points: 0

Sustainable Development

Justification: Projects that utilize existing community infrastructure and land-use best practices, such as being proximate to available services.

• Bonus Points: 2
• No Points: 0

Innovative Project Delivery

Justification: Project utilizes an innovative delivery practice (e.g. Modular construction, 3D printing, etc.)

• Bonus Points: 2
• No Points: 0

Early Childhood Inclusions

Justification: Projects that include early childhood education, childcare, etc.

• Bonus Points: 2
• No Points: 0

No Negotiation Contracts

Justification: Projects agreeing to utilize DOH’s “no negotiation” contract templates (see New Loan Agreement Templates on the right) in order to conform to the timelines laid out in the Governor’s Executive Order and HB24-1308, to execute a contract in 90 days or less.

• Bonus Points: 2
• No Points: 0

Community Planning Alignment

Justification: Projects in jurisdictions that received and that conform to the community plan resulting from a DOLA Division of Local Government (DLG) planning grant in the past 5 years.

• Bonus Points: 2
• No Points: 0

Tenant Equity Vehicle/Wealth-Building

Justification: Projects that provide a satisfactory answer that demonstrates a genuine commitment and realistic plan to build tenant equity and/or wealth.

• If applicable, how will your project help create equity and or build wealth for rental tenants? Examples may include, but are not limited to:
  • A tenant-equity program;
  • Rent-to-own arrangements;
  • Participation in federal FSS/State Flex programs; and/or
  • Providing rent reporting on tenant payments through CHFA.
• Bonus Points: 2
• No Points: 0

Statutory Set-Asides

Note that the following are requirements of funds as dictated by Colorado state and/or federal law. DOLA is including them here for transparency.

30% AMI Units

Justification: 33% of DOH’s HDG Vendor Fee must assist 30% AMI units. 100% of DOH’s Federal Housing Trust Fund (HTF) funding must assist 30% AMI units.

Permanent Supportive Housing

DOH’s Persons Experiencing Homelessness (PEH) - Prop 123 homelessness funds will be used for supportive housing projects targeting chronically homeless households.

Rural

At least $5,000,000 in DOH’s HDG must be awarded to rural projects annually.