Dennis Oshiro

1

. . . building stronger communities

one homeowner at a time. . .~ Since 2003 ~

Presentation Agenda

• HHOC’s Mission and Goals• Our partners and collaborators• “Wins and Challenges”• Questions and Answers

3

“Why is homeownership so important?”

StateFIPS Code 1990 1995 2000 2005 2006 2007 2008

Unit indicator   (%) (%) (%) (%) (%) (%) (%)

United States 00000 63.9 64.7 67.4 68.9 68.8 68.1 67.8

Dist. of Columbia 11000 36.4 39.2 41.9 45.8 45.9 47.2 44.1

New York 36000 53.3 52.7 53.4 55.9 55.7 55.9 55.0

California 06000 53.8 55.4 57.1 59.7 60.2 58.3 57.5

Hawaii 15000 55.5 50.2 55.2 59.8 59.9 60.1 59.1

Nevada 32000 55.8 58.6 64.0 63.4 65.7 63.3 63.6

Rhode Island 44000 58.5 57.9 61.5 63.1 64.6 64.9 64.5

Texas 48000 59.7 61.4 63.8 65.9 66.0 66.0 65.5

Massachusetts 25000 58.6 60.2 59.9 63.4 65.2 64.3 65.7

Oregon 41000 64.4 63.2 65.3 68.2 68.1 65.7 66.2

Washington 53000 61.8 61.6 63.6 67.6 66.7 66.8 66.2

Source: U.S. Census Bureau

Educational Success Attributable to Homeownership

• In a study jointly authored by a sociologist and an economist, a higher overall quality of life among homeowners is believed to contribute to the well-being of both homeowners and their children in a number of ways.

• Young children of homeowners tend to have higher levels of achievement in math and reading and fewer behavioral problems.

•Because it appears that educational outcomes were strongly influenced by homeownership and residential stability, government policies that promote homeownership or residential stability should be considered in any strategy to improve education.

The future of education does not rely solely on more expenditures for more schools.

Educational Success Attributable to Homeownership

• The decision to stay in school by teenage students is higher for those raised by home owning parents compared to those in renter households. Furthermore, daughters of homeowners have a much lower incidence of teenage pregnancy

Educational Success Attributable to Homeownership

• Social stability;

• Educational achievement;

• Civic participation including voting and volunteerism;

• Health outcomes and the ability to pay for health care;

• Lower crime and domestic violence rates

“Why Is Homeownership Important?”

9

“Who Is HHOC?”

•NeighborWorks Organization–Congressionally Chartered Non-Profit

–Network of Organizations Nationwide

–Training & Technical Assistance–Financial Support

Hawai’i HomeOwnership Center

“What is the HHOC?”

A non-profit 501(c)3 organization that provides HUD-approved

counseling and education.Formed in 2003

Oahu..Hawaii..Kauai..

#1 EDUCATION

Hawai’i HomeOwnership Center

Since 2003,

• Over 700 families have become homeowners…

• 302 were <80% AMI; would not qualify

• More than 2,000 families statewide

#2 FORECLOSURES

• Foreclosure Intervention Counseling; since Feb 1, 2009

#3 MORTGAGE LENDING

# 3 HHOC Mortgage’s# 3 HHOC Mortgage’s

• HUD-approved lenderHUD-approved lender• Down Payment Assistance Loan (DPAL)Down Payment Assistance Loan (DPAL)• Emerging CDFI lenderEmerging CDFI lender

DPAL BENEFITSDPAL BENEFITS

Available to First-time HomebuyersAvailable to First-time Homebuyers Finance up to 95% of Purchase PriceFinance up to 95% of Purchase Price Provides a lower monthly paymentProvides a lower monthly payment

compared to FHAcompared to FHAcompared to Conventional loan with compared to Conventional loan with

PMIPMIcompared to Portfolio 1compared to Portfolio 1stst and 2 and 2ndnd piggy piggy

loanloan No mortgage insuranceNo mortgage insurance Mortgage interest is tax deductibleMortgage interest is tax deductible

Loan Program ComparisonLoan Program Comparison

Loan Program Conventional Portfolio Loan FHA Conv. w/ MI

Second or Mortgage Insurance DPAL 2nd Portfolio 2nd FHA MI Monthly BPMI

% of Down Required 5% 5% 5% 5%

Purchase Price $ 265,000 $ 265,000 $ 265,000 $ 265,000

1st mortgage base loan amount $ 212,000 $ 212,000 $ 251,750 $ 251,750

UFMIP (financed) n/a n/a $ 4,405 n/a

1st mortgage loan amount $ 212,000 $ 212,000 $ 256,155 $ 251,750

2nd mortgage loan amount $ 39,750 $ 39,750 n/a n/a

5% Down payment $ 13,250 $ 13,250 $ 13,250 $ 13,250

Outreach Goals

• Increase Public Awareness

• Help is available

• Creating and Sustaining Homeownership

Key Partners

• Peer non-profits

• Industry affiliates

• Trade Groups & Unions

• Community groups

“Success and Challenges”

Wins

• Word-of-mouth works

• Collaboration maximizes funding and effort

• Partners assist in many ways

Issuses

• High cost of housing

• Low supply of affordable housing

22

. . . building stronger communities

one homeowner at a time. . .~ Since 2003 ~