Presented to Minnesota Housing Programs Relocation Aid April 21, 2006.
Post on 15-Jan-2016
225 Views
Preview:
Transcript
Presented to
Minnesota Housing Programs
Relocation Aid
April 21, 2006
2
We are committed to meeting Minnesotans’ needs for
decent, safe, affordable homes and stronger communities
Minnesota Housing’s Mission
3
• End Long-Term Homelessness
• Increase Minority Homeownership
• Preserve Strategically The Existing Affordable Housing Stock
• Provide Housing Choices For Low And Moderate Income Workers
• Housing Partner Of Choice
Minnesota Housing’s Strategic Goals
4
Today’s Multifamily Agenda
• Three Goals:» Agency Introduction» Long-term tools:
▪ Case Study
▪ Capital Resources
» Short-term tools:▪ Rental Assistance Resources
5
Housing Assistance, 10/04 - 9/05
• Single Family» $398.8 million in assistance to over 16,400
homeowners and homebuyers.
• Multifamily» $238.5 million to over 41,500 units of
affordable rental housing.» Contact staff to determine affordable rental
housing available in your area.
6
Case Study – Agency Financed
• New San Marco Apartments» 70 SRO/Efficiency units, New Construction» City of Duluth» Affordable to residents at 30% AMI» 36 Long-term homeless units» 40 Section 8 PBV units» 30 GRH units» Targeting homeless with disabilities
7
New San Marco - Site
8
Case Study – New San Marco
• Multi-year process:» Planning» Application» Selection» Underwriting » Construction» Occupancy
9
Case Study – New San Marco
• Financing – TDC, $9.2 Million» $5.96 million – Tax Credit Equity ($650,000)» $1.65 million – Minnesota Housing » $500,000 – Federal Home Loan Bank» $400,000 – HUD» $300,000 – Greater MN Housing Fund» $250,000 – City of Duluth (HOME, HIF)» $170,000 – MN Green & Owner Equity
10
Multifamily Resources
• Annual Request for Proposals (RFP)» Capital Resources» Rental Assistance» Operating Subsidy
• 2006 RFP» Published, April 24» Applications deadline, June 20
11
2006 RFP Timeline
• April 24, 2006 – RFP Published.
• May 10, 2006 – RFP Training.» Earle Brown Center, Brooklyn Center
• June 20, 2006 – RFP Deadline.
• October 26, 2006 – Board Selection.
12
Multifamily Resources – 2006 RFP
• State Resources» Approximately $80,000,000
• Funding Partner Resources» Approximately $5,000,000
• Housing Tax Credits» Approximately $10,000,000
13
Multifamily Resources – 2006 RFP
• Funding Partners» Family Housing Fund» Greater MN Housing Fund» Met Council» Green Communities Initiative
• Collaborating Partners» Hennepin County» Ramsey County» City of Minneapolis» City of St. Paul
• Coordinating Partners» Federal (HUD & USDA Rural Dev.) » State (DHS, DEED)
14
Multifamily Resources – 2006 RFP
• Minnesota Housing Funding Programs» Housing Trust Fund
▪ Deferred Loan
▪ Capital, Operating Subsidy & Rental Assistance
▪ 70% targeted toward LTH proposals.
» Ending Long-Term Homeless Initiative Fund▪ Deferred Loan
▪ Capital, Operating Subsidy & Rental Assistance
▪ Targets LTH proposals.
15
Multifamily Resources – 2006 RFP
• Funding Programs Continued:» Publicly Owned Permanent Supportive
Housing Program▪ Forgivable Loan, Capital
▪ Public ownership requirement
▪ LTH requirement
» Economic Development Housing Challenge▪ Deferred Loan, Capital
▪ Workforce housing proposals
▪ American Indian set-aside
16
Multifamily Resources – 2006 RFP
• Funding Programs Continued:» Preservation of Affordable Housing Investment
Fund▪ 1st Mortgage or deferred, Capital
▪ Preservation – Acquisition, rehab or debt restructuring of developments with Project Based Federal assistance and supportive housing developments.
» Economic Development Housing Challenge▪ Deferred Loan, Capital
▪ Workforce housing proposals
▪ American Indian set-aside
17
Multifamily Resources – 2006 RFP
• Funding Programs Continued:» Low and Moderate Income Rental Program
▪ 1st Mortgage, Capital
▪ Acquisition, rehab and new construction
» Flexible Financing for Capital Costs▪ Deferred loan – in conjunction with 1st mortgage
▪ Acquisition, rehab and new construction
18
Multifamily Resources – 2006 RFP
• Funding Programs Continued:» Housing Tax Credits
▪ Housing Program under IRS rules
▪ Eligible acquisition, rehab and new construction expenses
▪ Two competitive rounds per year
19
Rental Assistance Resources
• Rental Assistance» Housing Opportunities for Persons w/ AIDS
▪ Short-term Rent, utility and mortgage assistance
» ELHIF – LTH specific▪ Available through the RFP or local administrators
» Bridges – SPMI specific▪ Minnesota Housing partners with DHS
» Local Administrators (ELHIF & HTF)▪ Each program is unique
▪ 21 program administrators statewide► Contact list available on website
20
Rental Assistance Resources
• Rental Assistance» Minnesota Housing Contact:
▪ Kim Lieberman, Program Manager► 651-296-9841► Kim.Lieberman@state.mn.us
21
Rent Assistance Resources
• Rent Assistance Brochure» www.mhfa.state.mn.us/multifamily/RA_Brochure.pdf
• HTF & ELHIF Rent Assistance Program Info.» www.mhfa.state.mn.us/multifamily/HTF.htm
• HTF & ELHIF Rent Assistance Program Administrators» www.mhfa.state.mn.us/multifamily/HTFRA_ELHIF_Contacts.pdf
• Bridges Program Administrators» www.mhfa.state.mn.us/multifamily/BRIDGES%20Contacts.pdf
• Bridges Program Information» www.mhfa.state.mn.us/multifamily/bridges.htm
• Family Homeless Prevention and Assistance» www.mhfa.state.mn.us/multifamily/FHPAP.htm
22
Multifamily Resources
• Multifamily Housing» www.mhfa.state.mn.us/multifamily/_home.htm
• Consolidated RFP Guide» www.mhfa.state.mn.us/multifamily/MF_Application_Guide.pdf
• Housing Tax Credits» www.mhfa.state.mn.us/multifamily/Multifamily_Tax.htm
• Long Term Homeless Business Plan» www.mhfa.state.mn.us/multifamily/LTH.htm
• Program Guides» www.mhfa.state.mn.us/managers/Program_Guidelines.htm
23
For More Information Contact
Ken Doresky
651-284-3177
Ken.Doresky@state.mn.us
400 Sibley Street, Suite 300
St. Paul, MN 55101
651-296-7608 * 800-657-3769 * TTY 651-297-2361
www.mhfa.state.mn.us
Presented to
Single-Family Homeownership and Home Improvement Programs
April 21, 2006
25
Supporting Successful Home Ownership
Education & Outreach
Pre-PurchaseCounseling
Affordable Financing: Loans
Post-Purchase Support
Default and Foreclosure Counseling & Assistance
Before-Purchase
Purchase
After-Purchase
26
Homebuyer Education
Homestretch Curriculum• Advantages vs. disadvantages of homeownership• Mortgage industry terms• Overview of loan application process• Evaluation of credit picture and barriers• Shopping for a home• Home Inspections• Loan closings & forms• Post-purchase responsibilities
27
First Mortgage Programs
Minnesota Mortgage Program (MMP)• Below market interest rate• $3,000 in entry-cost assistance available• Available statewide from participating lenders
Community Activity Set Aside (CASA)• Below market interest rate• $3,000 in entry-cost assistance available• Monthly payment assistance ($75, $50, $25)• Option of a 40– year term mortgage• Partnerships apply for the program
28
Borrower Eligibility RequirementIncome Limits: MMP and CASA
• 11 County Twin Cities Metro Area contains: Anoka, Carver, Chicago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington and Wright Counties
• These limits are based on data supplied by the US Department of Housing and Urban Development (HUD)
Household Size 11-County Twin Cities Metro Area
Olmsted County Balance of State
1 – 4 $63,000 $57,000 $55,000
5 $68,500 $62,000 $59,500
6 $73,500 $66,500 $64,000
7 $78,500 $71,000 $68,500
8 $83,500 $75,500 $73,000
29
Borrower Eligibility Requirement– House Price Limits
For MMP and CASA
Area New and Existing Residences
11 County Twin Cities Metro Area $298,125
Balance of State $237,031
30
Borrower Eligibility Requirement First-time Homebuyer
• Has not had an ownership interest in a principal residence for 3 years First-Time Homebuyer (Section 4.3)
31
Downpayment and Entry-Cost Assistance
Homeownership Assistance Fund (2nd Mortgage)• Interest free, deferred loan• Helps borrowers qualify by providing cash to close,
improving ratios and increasing borrower purchasing power
• Due and payable upon one of the following: Sale or transfer of property Refinance of the first mortgage Payoff of first mortgage No longer a primary residence
32
Downpayment and Entry-Cost Assistance
• Various levels of assistance depending on mortgage program » MMP
▪ $3,000 in entry-cost assistance for eligible borrowers
► Targeted borrower/non-targeted borrower requirements
» CASA▪ $3,000 in entry-cost assistance
▪ Monthly payment assistance ($75, $50, $25)
33
HAF Program Guidelines
1. CASA or MMP First Mortgage
2. Borrower meets income limits
3. Borrower required to pay out of own funds $500
(Borrower must cover their minimum investment per guidelines of the insurer/guarantor FHA,VA, RD,etc.)
34
How Borrowers Access Programs
Apply with a lender that originates Minnesota Housing first mortgage programs.
The lender originates, processes, underwrites, closes and funds the loan, then sells the loan to Minnesota Housing.
35
Credit Requirements
• Credit worthiness (Section 4.7)
• Must be a good credit risk as defined by loan type and mortgage industry underwriting standards
– FHA– VA– RD– Conventional (Fannie Mae, Freddie Mac, etc.)
36
Mortgage Eligibility
Fully amortized fixed rate loans- No balloons
Allowable Loan Amortization Terms
• MMP (15, 20, 25, 30)
• CASA (15, 20, 25, 30, 40)
37
Increased Purchasing Power & Cash to Close
5.625%
$3,000
$233,300
$217,400
$233,300
CASA = An increase of $37,100 in buying
power and $3,000 cash to close!
Scenario A
Market Interest Rate 6.250%
Max Loan $196,200
No HAF $0
Same Maximum Loan
$196,200
Scenario B
CASA Interest Rate
Higher Loan AmountHAF Entry Cost Asst
HAF Mo Payment Asst ($75)
40 Year Term
Increased Maximum Loan
$206,700
$60,000 Income, 20% added to PITI for Taxes & Insurance, 33/38
38
Home Improvement Programs
• Improve livability, accessibility or energy efficiency of a home
• Accessibility features» Room additions» Accessible bathrooms» Ramps» Hardwood flooring» Hallway widening
39
Home Improvement Programs
» Fix-Up Fund▪ Flagship program
» Community Fix-Up Fund▪ Community targeting
▪ Subprime features
» Rehab Loan Fund▪ Targeted to very low-income borrowers
40
Fix-Up Fund
• Max loan $35,000• Higher loan amount possible if serving a household member
with a disability
• Fixed payments• Max repayment 20 yrs• No down payment• Low closing costs• 110% LTV• Unsecured loans if < $10,000
41
Community Fix-Up Fund
Special home improvement programs for
targeted community initiatives! Same terms and conditions as the fix-up-fund
Subprime component available
To access this program:
www.mhfa.state.mn.us/homes/CFUF_Matrix.pdf
42
Fix-Up Fund and Community Fix-Up Fund Requirements
• Household incomes: $90,000• Income waiver possible if serving a family member
with a disability
• Decent credit
• Owner-occupied homes (No cabins!)
43
Rehab Loan Program
• Features:» Max loan amount is $15,000» Additional $5,000 can be accessed in hh contains a family member with a
disability» Single-family homes = 30 yr. term with 0% interest rate loan payment
deferred until borrower sells, transfers title or no longer occupies the property
• Requirements:» Income limits apply (4 person hh is $23,550)» Owner-occupancy required» Assets not greater than $25,000
• Access by contacting an administrator:www.mhfa.state.mn.us/homes/Rehab_Administrator_by_County.pdf
44
Resources
• Homebuyer Education» Minnesota Home Ownership Center, www.hocmn.org
• First-Time Homebuyer Programs» www.mhfa.state.mn.us/homes/homes_mortgage.htm
• Downpayment and Closing Cost Assistance» www.mhfa.state.mn.us/homes/homes_payment.htm
• Home Improvement Programs» www.mhfa.state.mn.us/homes/homes_improvement.htm
• Foreclosure Prevention Assistance» www.mhfa.state.mn.us/homes/homes_foreclosure.htm
45
For More Information Contact
Devon Pohlman
(651) 296-8255
Devon.Pohlman@state.mn.us
400 Sibley Street, Suite 300
St. Paul, MN 55101
651-296-7608 * 800-657-3769 * TTY 651-297-2361
www.mhfa.state.mn.us
top related