CRV Supplemental Application
for community land trusts, housing cooperatives AND STRATEGIC LAND ACQUISITION	

The questions listed in this supplemental application are required for community land trust (CLT), housing cooperative or strategic land acquisition applicants.
All total fields must be filed in by applicant.  (Application does not automatically calculate)

Community Land Trust Criteria
Minnesota Housing supports Community Land Trusts (CLT) through its CRV program provided the CLT meets the following conditions:

•	The CLT must provide evidence, satisfactory to Minnesota Housing, that homebuyers purchasing homes in the CLT receive full disclosure of their rights and obligations under the trust, including future limitations on sale.
•	The CLT must submit evidence satisfactory to Minnesota Housing that land trust borrowers have access to the secondary mortgage market (currently available through Fannie Mae lenders and Rural Development lenders).
•	The terms and conditions of the CLT must be compatible with those developed by the National CLT Network and otherwise satisfactory to Minnesota Housing.

If the applicant is requesting funding in conjunction with a CLT, the above information/ documentation must be submitted with the proposal.  CLT’s must meet these criteria prior to the funders’ Selection meeting.

Community Land Trust Supplemental Questions

1.	Describe the organization’s plan for the long-term stewardship of land trust units and land.  (Note:  Address CLT plans to make property improvements directly, and/or through programs individual homeowners can access, and other provisions for long-term stewardship of the land trust units such as succession planning.)

     

2.	Include evidence (written approval from Minnesota Housing) that the CLT meets the criteria listed above.  Provide a hard copy of the CLT’s ground lease.

     

3.	Provide a list of your organization’s board members and their term of service.

     

Cooperative Housing Supplemental Questions

1.	Are the CRV funds intended to benefit the co-op corporation or the buyer share member?  Explain.

     

2.	Complete a summary of the Operations Income and Expenses/Sources and Uses Budget using the general format on the following page.  (Minnesota Housing’s Multifamily Application, Sections IV, V, VI, is a very detailed form that may be helpful/used.  Note:  all total fields must be manually calculated as the application does not auto calculate.  

     

General Information		
Year. Property built:     	Total number of units in building:      	

Operations: Income & Expenses	Annual Amt	Unit/Mo. Amt	
Income-Member carrying charges	$     	$     	
Vacancy loss	$     	$     	
Other income	$     	$     	
Total Revenue:	$     	$     	

Mgmt, operating and mortgage expenses/debt service	$     	$     	
Pmt of ongoing/future reserves and escrows	$     	$     	
Total Gross Expense:	$     	$     	
Net Operating Income:	$     	$     	
Is cash flow positive every month? If no, explain
     			

Sources & Uses Budget  - Total Development Sources	Amount	Per Unit	
Mortgage	$     	$     	
Members Beginning Equity	$     	$     	
Donated Developers Fee	$     	$     	
Other Sources (gap)*      	$     	$     	
Total Sources:	$     	$     	

Total Development Uses**	Amount	Per Unit	
Property Cost	$     	$     	
Real Estate Holding Costs	$     	$     	
Rehabilitation/Construction Cost	$     	$     	
Developer Fee	$     	$     	
Soft Cost	$     	$     	
Financing Cost	$     	$     	
Start-up/Initial Reserve Set-aside	$     	$     	
Total Uses:	$     	$     	
* Refer to Local Investment and Leverage Section – page  7			
**Refer to the Financial Worksheet/Project Information – Attachment H			

3.	Is the blanket mortgage (first mortgage) for the co-op corporation financing in place?  If yes, list the resource providing the first mortgage.  If available, provide interest rate, maturity due date and unpaid balance.

     

4.	Does the co-op have an independent property management company control operation of the facility?  If yes, list name/address/contact name and describe the specific functions/roles of the company.

     

5.	If created, provide the make-up of the co-op’s board of directors.

     

6.	Is there any resale restrictions place on the units?  If yes, describe the resale restrictions and how they will be enforced.

     

7.	Is the property in compliance with current zoning requirements?  If no, explain.

     

8.	Has there ever been a filed petition of involuntary bankruptcy against your organization or any of the developer partners?  If yes, explain.

     

9.	Has your organization or any of the developer partners ever made an assignment for the benefit of creditors?  If yes, explain.

     

10.	Are there any unsatisfied judgments outstanding against your organization/developer/principals?  If yes, explain.

     

11.	Has your organization or any of the developer partners been a party to any litigation within the last five years?  If yes, explain.

     

12.	Describe specific training for co-op members you organization has in place or purposes.

     

13.	Additional market analysis information:
a.	The co-op corporations share of comparable unit ownership
b.	The co-op member share of comparable unit ownership.  The total should equate to comparable average sales price.
c.	Explain the co-op corporations share and co-op members share of the equity distribution.  Describe member household income level and rationale for determining co-op members’ equity share.

Strategic Land Acquisition Criteria
The intent of strategic land acquisition is to enable eligible organizations to purchase land suited for the eventual development, within five years, for either multi-or single-family affordable housing.  Applicants who are requesting funding to assist with the strategic acquisition of land please complete the relevant sections of the Standard CRV Application and the additional questions below.  Do not complete the Community Revitalization Fund Project Information/Financial Worksheet, but rather attach a pro-forma (see example below) or attach a project-specific pro-forma.
Funding will prioritize the acquisition of land that meets these criteria:
•	Exhibit rapidly rising land costs in the area of the proposed project, as demonstrated since 2005
•	Demonstrate affordable housing need, based on current targets established in partnership with the Metropolitan Council (Seven-County Metro Area only)
•	Located in an area of existing job growth, as demonstrated since 2000 
•	Located within ½ mile of existing or proposed transit (bus, light rail)
•	Commitment to build a mixed income development (for projects with more than six contiguous units)
•	Develop acquired land within five years of the funding award
Any strategic land acquisition proposal funded by Minnesota Housing must certify compliance with the following criteria upon development completion.  If it is determined at some point in the future that the land acquisition does not meet these criteria, the funding decision may be reversed. 
* Please note that the strategic land acquisition supplemental application is not fillable.

Strategic Land Acquisition Supplemental Questions
1.	What analyses of market and land price trends are available to support current investments in land acquisition as a strategy for providing more and/or more cost effective affordable housing in the future?
2.	What is the extent to which strategic land acquisition activities will support housing needs for the next decade identified by the Metropolitan Council?  (Not applicable to Greater Minnesota Applicants)
3.	What is the overall approach pertaining to strategic land acquisition for affordable housing development, including an anticipated schedule for construction and occupancy of the housing?
4.	Provide a financial analysis to support the amount of funding requested and the structure of the request—grants v. loans and the terms of any loan portion.  (Fill out the financial proforma below.  Do not complete the standard CRV Project Information/Financial Worksheet.)
Please attach a pro-forma (see example below) or attach a project-specific pro-forma.
1. General raw land cost
Amount on option to purchase agreement	$	
Final raw land costs	$	

2. Financial and legal costs
•	Title and recording costs	$	
•	Legal fees – (developer agreement, purchase agreement,	$	
covenants, other title costs)
•	Carrying costs	$	
3. Government costs
•	Street signs, street lights	$	
•	Special assessments	$	
•	Park dedication	$	
•	Other city fees	$	
4. Engineering costs
•	Surveys	$	
•	Plat engineering/drawings	$	
•	Utility and development plans	$	
•	Final plat	$	
•	Soil tests	$	
5. Lot construction cost
•	Grading	$	
•	Street and utility costs (Roads, sewer, water, other utilities, sidewalks etc.)	$	
6. Other
•	Wet land/environmental	$	
•	Neighborhood issues/agreements	$	
•	Site clean up	$	
•	Other general	$	

Please address these questions as related to the financial pro-forma submitted:

1. What is the projected cash flow requirement for the land purchase and development?  (Provide time line listing financial requirements at each critical point plus an aggregate total until housing units are sold/rented.)

2. Developed land cost per unit:	$	
Land cost per unit with lot improvements:	$	
Cost of housing units only (not including land cost):	$	
(Note: land cost plus cost of housing unit equals total development cost 
average for each unit of housing)

3. Development site and type of proposed housing units, if known:
Amount of Acreage purchased	$	
Number of affordable units	$	
Total number of units to be built on land (density if known)	$	

4. Answer the following questions
Number of single family units	$	
Type: Ramble, split entry, split level (1 ½ story), 2+ story, 
manufactured homes, multi unit / condo	$	
Number of bedrooms	$	
Lot width, depth	$	
Ownership type: Fee Simple, Tribal Trust/Allotted,
Community Land Trust, Condominium, Cooperative	$	
Targeted income for unit (i.e., 50%, 80%, 115% of state or area median income.)	$	

Number of Multifamily units	$	
Number of Multifamily buildings	$	
If non-residential (i.e., commercial, mixed-use areas excluding common 
areas for exclusive use of residents) usage in project, how many 
non-residential square feet are included?	$