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Asset Management

Capacity Scorecard Policy Guidance

Capacity Scorecard Policy/Guidance

 
I. Overview of Capacity Scorecard
In an effort to create consistency throughout the Corporation, Kentucky Housing Corporation (KHC) utilizes a Capacity Scorecard for all program areas that have a competitive application or formula grant allocation process. The scorecard is used to determine the overall capacity of the Entity or Development Team member(s) that will administer the proposed project and/or program they are applying for. The scorecard is divided in to three (3) sections:

  1. Capacity Scorecard Threshold Requirements
  2. Capacity Scorecard Self-Certifications
  3. Capacity Scorecard Overall Performance
The first section of the scorecard consist of capacity scorecard thresholds that must be achieved. If the Entity or Development Team member(s) answers “yes” to any of the Capacity Scorecard Threshold Requirements, the application may not be eligible for submission. All “yes” answers are required to provide an explanation as to circumstances of the infraction. KHC will review the response when determining approval or disqualification of the Scorecard. 

Capacity Scorecard Threshold Requirements will be verified at both the submission of the application and reviewed again prior to funding award announcement. If the status of a Capacity Scorecard Threshold Requirements changes prior to announcement of funding, the application may be disqualified. Depending on the circumstances, an Entity may be asked to correct the outstanding issue prior to a funding award. 

II.  Capacity Scorecard Self- Certification
The Capacity Scorecard Self-Certification section of the scorecard a series of statements that the applicant preparer must certify to. This is a non-scoring section, but will be used by KHC review staff to ensure that are no outstanding issues that could prevent the project from being awarded funds. There is a response section in the self-certification section that can be used to provide additional information to any of the self-certification questions. KHC review staff may request additional information for clarifications purposes.

The Entity will need to complete the certification acknowledgement that states the responses to the self-certification statements are true and accurate, to the best of their knowledge. Falsification of these statements could result in a recapture of funds or suspension/disbarment from KHC.
 
III.  Capacity Scorecard  Overall Performance
The Capacity Scorecard Overall Performance section is the part of the scorecard where KHC staff will indicate if a capacity deduction will be applied. Guidance on the type of infractions that KHC will consider for possible capacity deductions are listed in this section of the scorecard. Please note, the list is not all inclusive, but guidance as to what criteria is used to determine a potential capacity deduction. A capacity deduction can be determined at any time throughout the administration of a project/program, through the affordability / compliance period. The capacity deduction can apply to the Entity or any member of the Development Team. 

Please note, it is not KHC’s intention to issue capacity deductions on minor occurrences. A capacity deduction can occur if the Entity has repeated administrative issues or unresolved compliance findings for which corrections have been requested and not received. At the time a capacity deduction is issued, the agency or organization will receive a written notice from KHC explaining the reason for the capacity deduction and the amount of time the deduction will be applicable. KHC typically looks back 3 years, from the date of application submission, to determine capacity related issues. 

Capacity deductions will be applied to the overall score for the Capacity Section of the full application. For example, if the Capacity Section of the application is worth a total of 25 points and a capacity deduction of -2 was determined, then the application will be docked 2 points and will receive 23 out of a total of 25 possible points. There may be additional questions in the Capacity Section of the application that are outside of the scorecard. Those questions will be reviewed and scored by KHC after application submission.

IV.  Scorecard Submission
After the Entity completes the Capacity Scorecard Thresholds and Self-Certification sections the scorecard can be submitted to KHC for review. KHC staff will review the capacity scorecard, respond with any questions and determine a total capacity deduction, if applicable. The scorecard will be returned to the applicant preparer. At that point, the remaining sections of the application will be available for the applicant preparer to complete.