HOME INVESTMENT PARTNERSHIPS PROGRAM 24 CFR Part 92.

HOME INVESTMENT PARTNERSHIPS

PROGRAM 24 CFR Part 92

What is HOME?

The Home Investment Partnerships (HOME) Program was created as part of the Cranston-Gonzalez National Affordable Housing Act of 1990

HOME funds are block granted to state and local Participating Jurisdictions (PJs) for the purpose of creating affordable housing

Funding

Since 2010, Congress has steadily reduced funding for the HOME program

In 2010, the State of Kansas received approximately $8.7M

In 2015, we anticipate about $4MA funding bill under consideration this

week proposes a 17% cut for 2016

KHRC – Eligible Activities

Rental Housing DevelopmentCommunity Housing Development

OrganizationsHOME can be used with Low Income

Housing Tax Credits (LIHTC), FHLBank, USDA Rural Development, etc.

Acquisition, new construction, rehabilitation

KHRC – Eligible Activities

Tenant Based Rental Assistance (TBRA)Rent and deposit assistance.Administered by PHAs, non-profit

organizationsHOME provides the difference

between gross rent and 30% of tenant income.

KHRC – Eligible Activities

First Time Homebuyer ProgramDown payment assistance for

home purchaseAvailable through participating

lenders80% of AMI; must qualify for loan

HOME Eligible (KHRC does not do)

New construction or rehab of housing for owner occupancy

Homeowner rehabilitation Discontinued after 2011 due to

reduction in HOME funds

Who Are The Beneficiaries?

Low Income householdsDown payment assistance goes to

households up to 80% of AMIRental housing is initially restricted

at 60% of AMI, or lower TBRA is restricted at 60% of AMI,

but preference for lower income targeting

Rental Housing Development

Applications for funding are currently restricted to Community Housing Development Organizations (CHDOs)CHDOs must meet requirements for:

Board compositionLow income representation and inputExperience and capacity

Rental Housing Development

Applications due in February.Up to $500,000Priorities for things like:

Targeting lower income and rentsLeveraging other sources of fundsDesign (accessibility, energy

efficiency, safe rooms, etc.) Location and housing need

Acquisition/rehab project serves people with disabilities, Lawrence. HOME, LIHTC and existing project based rental assistance

Infill duplexes, Topeka – Energy Star construction HOME and private debt

Bartell Hotel – Senior Housing – Junction City HOME, Low Income Housing Tax Credits, Historic Tax Credits, USDA loan and rental assistance

Transitional Housing for Homeless Families - TopekaHOME funds from KHRC and the City of Topeka

Affordability Period

New construction – 20 YearsRehabilitation – 5, 10 or 15 years

Depending on amount of HOME $ per unit

HOME Rental Projects

Since 1992, HOME funds from KHRC have supported the development of about 170 rental projects in Kansas

Transitional Housing

HOME can be used for permanent or transitional housingNot for shelters, dormitories or

student housing

Tenant Protections

In general, participation in services cannot be required

Permanent housing requires a minimum 12 month lease (except by mutual agreement)

Transitional Housing

Lease can be terminated or non-renewed for:Completion of transitional tenancy

periodFailure to participate in supportive

services designed to promote self sufficiency

Program design must be approved

Tenant Based Rental Assistance

KHRC provides approximately $1.2M for TBRA annually (subject to funding)

Applicants can be PHAs, local units of government and non-profit organizations

TBRA

TBRA can provide:Ongoing rental assistanceSecurity deposit assistanceUtility deposit assistance

Only in conjunction with security deposit assistance

Tenant Eligibility

Households at or below 60% of Area Median Income (HOME limits published annually by HUD)

Priority for funding programs targeting lower incomes, homeless households, etc.

Housing - TBRA

Grantee must adopt occupancy standards for household size/ number of bedrooms

Housing must pass HQS inspectionRent is subject to a ‘rent standard’

to ensure rent reasonableness

Rental Assistance - TBRA

TBRA uses the HUD ‘Voucher Model’ to determine assistance amount

Assistance is the difference between the Payment Standard (rent standard) and 30% of household adjusted income

Participants can remain on a Section 8 waiting list, and should move to Section 8 when possible

Lease and TBRA renewal

A 12 month lease is requiredRental assistance can be for up to

24 months, and can be renewed

TBRA – Administrative Expenses

Some project delivery costs (inspections, income certifications) can be charged to the grant

KHRC provides an Admin allowance to supplement

KHRC formula ensures 7% total for the above two items

First Time Home Buyer Program

KHRC provides HOME funds for down payment assistanceUp to 80% of Area Median IncomeSubject to HUD purchase price limitsExisting homes onlyMust pass inspection

FTHB

KHRC will record a second mortgage

15-20% of purchase price Buyer must contribute at least 2% Loan is forgiven over time Home must be primary residence

and remain as such

National Housing Trust Fund

In 2008, Congress created the National Housing Trust Fund as part of the Housing and Economic Recovery Act (HERA)

Funding was to come from a fee charged on new business of Fannie Mae and Freddie Mac

NHTF

The banking crisis of 2008 hit Fannie and Freddie, prevent any contributions

Suspension of contributions was lifted in December 2014

Funding is anticipated to being in 2016

NHTF

Interim Rule was published on January 30, 2015 (24 CFR Part 93)

Congress’ budget deliberations are once again putting the NHTF in jeopardy

NHTF – Eligible Activities

Rental housing developmentLimited homeownership is eligible

Not a likely activity initiallyAcquisitionRehabilitationNew construction

NOT rental assistance

NHTF Targeting

Initially, all housing is restricted to ‘Extremely Low Income’ households - at or below 30% of Area Median Income

If funding exceeds certain thresholds, some may be used for households up to 50% of AMI

HUD will publish rent limits

NHTF – Program Design

NHTF will follow HOME program rules with some exceptions

Mandatory affordability period is 30 years (HOME is up to 20)

May be used with other sourcesHOME, LIHTC, AHP, USDA, SHP…….

NHTF – Program Design

Rental assistance is not eligibleLimited operating assistance is

eligibleNo match requirementState can determine per-unit subsidy

limits (HOME is subject to HUD limits)