• How will reviewers know if a proposal will make a significant impact?

    The review committee will comprehensively assess proposals to identify projects that will provide the greatest impact and stabilization for the targeted community in a cost-effective way.

  • How will reviewers know if a project fits in with the community plan for stabilization?

    Applicants are asked to provide the community development plans for their targets neighborhoods within their applications, if available.

  • Is there a minimum or maximum dollar amount per project?

    There is no minimum amount per project that can be requested. The maximum amount of funds that can be requested by proposal is 20% of the State's total NSP allocation (ie. $10.6 million).

  • If a project is ready now and the application is approved, will any funds be awarded prior to July?

    No funds will be approved prior to July 1st.

  • What does "2 electronic copies" of application mean?

    Applications submitted on cd are considered electronic.

  • How many projects can be taken on?

    There is no maximum for the number of projects that can be taken on. However, applicants can not submit proposals for more than 20% of the State's total NSP grant. Applicants should remember that they must be able to indicate that they have the organizational capacity to implement that projects that they are seeking funds to develop.

  • How competitive will this application round be?

    This is a highly competitive solicitation.

  • What type of community support is needed to submit a proposal? How do you demonstrate community support?

    Sufficient show of community support includes:

    • Letters of support from community leaders
    • Copies of the community development action plans
    • Copies of publicity or public comment that applicants have undergone to facilitate public input
    • Facilitation of public hearings or town hall meetings
    • Leveraging local financial resources
  • Does posting a public notice count as soliciting community input?

    Yes, posting a public notice would count as soliciting community input as long as it contained a mechanism for the public to respond.

  • How strict is the requirement for applicants to have previous federal grant handling?

    Experience with federal funding is not mandatory, however from the perspective in which we will be evaluating applications, it strongly speaks to an applicants readiness and capacity to implement their project in compliance with the long-term monitoring requirements for this program, especially if the applicant has had previous HUD grant management experience.

  • What should I provide in my narrative about building characteristics and amenities?

    Yes, in the section entitled "Project Information - Readiness to Proceed" we request information regarding details of the project such as "building characteristics and amenities."

  • Do for profit developers need 2 year tax returns? Is a 1 year tax return and narrative acceptable?

    Yes, if you do not have 2 years of financial statements please provide a narrative explaining why in your application. Please note that inability to supply all requested documents will be considered in the evaluation process.

  • Who will make up the evaluation committee?

    The review committee will consists of DHS and IDHA representatives.

  • If a county applies for NSP funds will that preclude a City from applying? Will the City funds not be able to be used for a City that is also awarded the State's NSP funds?

    The States NSP program does not preclude an applicant from applying for funds from another NSP grantee.

  • How many copies of the application should be submitted? How many copies of the utilization plan is needed?

    7 hard copies of the application, 2 copies of the Utilization Plan, and 2 electronic versions of the application on cd.

  • I am applying with several other not-for-profit organizations. Does each agency have to submit financials, project team information, capacity information if the county is the lead agency?

    The application requests organizational documents including financial statements of the lead entity only but partners should be included in the discussion of the project team, capacity, and other appropriate areas of the application.

  • Does a project located in Peoria have to be completed by the City of Peoria?

    The application requests organizational documents including financial statements of the lead entity only but partners should be included in the discussion of the project team, capacity, and other appropriate areas of the application.

  • What is the maximum amount of points possible for an application?

    1060 points

  • How are the points awarded for each section (ie. How does one receive full points?)

    Point allocation is determined by a proposal ability to maximally meet the following criteria: community impact, areas of greatest need, target households at 50% of the area medium income level, targeting of priority populations, organizational capacity to implement the proposed project, and readiness to proceed.

  • How does leveraging other financing sources impact the application?

    An applicant's ability to leverage additional funds will speak towards a proposal's readiness to proceed and points will be awarded during the review for leveraging funds.

  • Are additional points awarded for other financing sources?

    Yes, under Project Information - Readiness to Proceed, applicants will receive points if additional financing sources are identified.

  • Can you have single houses and bundle them in different areas (example in Cantan and Champaign)?

    Yes, however, the applicant would have to explain the strategy for maintaining the properties in both areas.

  • To what extent is TA provided?

    Technical Assistance is provided to any applicant who needs assistance developing their proposed project plan. However, our TA consultants will not be providing grant writing services to applicants.

  • Can faith based organization manage all activities or do we need a management company?

    A faith based organization can facilitate all activities as long as the applicant can indicate a capacity to do so and can meet HUD's requirements for faith based organizations.

  • Do faith-based organizations have to submit a budget?

    Yes, as a non-profit/501 C-3, financial statements are still required.

  • How long do you need to be certified as a 501 C-3?

    There is no required length of time for certification as a 501(c)3 but the IRS designation must already have been made in order to qualify as a non-profit organization.

  • Is preference given to towards rental development projects vs home ownership?

    No preference is given towards to rental proposals over homeownership proposals

  • Is a 'subcontractor' an entity that directly receives funds from the State or a company that enters into a contract for services with a State NSP grantee?

    A subcontractor is an entity that enters into a contract for services with an NSP grantee.

  • What information will help to determine readiness to proceed?

    The elements of the application used to evaluate readiness to proceed will include the information requested within that section of the application. This section evaluates the strength of the applicants acquisition plan, plan for construction or redevelopment, property management, marketing, and project costs and feasibility.

  • How far do you have to look back to identify foreclosure or abandonment?

    90 days after the foreclosure and/or tax-foreclosure proceedings have been initiated

  • Does contracting with minority subcontractors give you the same amount of points as non-minority for profit business?

    No, an inability to develop a plan to meet the State's minority subcontracting goals will cause an applicant to receive fewer points under the readiness to proceed section of the application.

  • Does a non-profit have to be a 501 c-3?


  • Are there restrictions for an LLC applying for these funds? How long does the entity have to exist?

    There are no restrictions on an LLC applying for funds. The State is requesting 2 years of financial statements from all entities applying for NSP funds. However, if an agency is unable to provide this, please provide an explanation in narrative as part of your application.

  • At what point in the process is the grantee eligible for obtaining a developer and/or administrative fees?

    Developer fees will be negotiated after subgrantees have been identified.

  • Can we recoup the money spent on appraisals?

    Appraisals should be not done until an entity is identified as an NSP grantee. At that point, NSP funds can be used to pay for appraisal services.

  • I live in a rural county where there is no housing authority. How does my organization get technical assistance with the development of my proposal?

    Consider collaborating with another jurisdiction or community action agency within your area.

  • Does Davis-Bacon wages differ from a prevailing wage rate?


  • Does Davis Bacon apply to scattered site developments of 8 or more units?

    Davis Bacon applies to any development project where 8 or more units are being developed (including 8 separate units being developed by the same entity).

  • Do non-profit organizations also need to provide certificates of good standing, 2-year financial statements? Do you want an organizational flow chart in lieu of an "ownership" flow chart?
  • Non-profit organizations should include all organization documents required under Tab 1(b)(ii), which do include a Certificate of Good Standing and two years of financial statements. The "ownership" flow chart refers to the ownership of the NSP funded properties, not an organizational flow chart.
  • What does wc/latent/iod stand for in the Development Budget?
  • The original application contained a formula within the Development Budget intended to assist applicants in determining the appropriate developer fee. The State has removed this formula from the application to prevent further confusion.
  • Should an agency utilize partners or submit an application on their own?
  • Possible applicants should determine if they have sufficient capacity and experience to carry out their proposal. The State encourages applicants to form partnerships that will increase the viability of the proposed project but could not say whether or not an applicant should elect to utilize partnerships.
  • TIF funds as part of financing tools?
  • An applicant could use TIF funds as a source of leverage.
  • Do applicants have to have their construction contractors subcontracted at the time of application?
  • No.
  • Will IHDA have a "set aside" for NSP projects within the next application round of Low Income Housing Tax Credits?
  • No, there will be no "set-aside" for NSP projects in the next round of Low Income Housing Tax Credits. The next expected application date for tax credit applications will not take place until late 2009, making it difficult to combine with NSP.
  • Given the global retraction of credit, how does the state view prospective homeowners in securing a loan?
  • The State encourages applicants to develop partnerships with community banks and other lenders to assist in providing mortgage financing for buyers of NSP assisted properties, including those providing loans insured by the Federal Housing Administration.