1. Dale Darrow Wisconsin Field Office Director US Department of Housing and Urban Development http://www.hud.gov HUD Housing Programs

2. HUD’s Mission To Create Strong, Sustainable, Inclusive Communities To Increase Homeownership To Provide Quality Affordable Rental Housing To Address Homelessness To Enforce The Federal Fair Housing Laws

3. Milwaukee Field Office Principal Clients  22 Community Development Block Grant (CDBG) Entitlement Jurisdictions - 18 cities, 3 counties, and the State of Wisconsin  4 Continuums of Care addressing homelessness  117 housing authorities administering public housing and/or housing voucher programs  790 privately owned Multifamily Housing properties with 50,459 dwelling units with FHA insured mortgages and/or which receive section 8 rent assistance payments on behalf of low income tenants

4. HUD CDBG Program (Community Development Block Grant) HUD provides annual grants on a formula basis to local governments and county consortiums meeting certain population thresholds, and to the State of Wisconsin for provision of funding to address needs in small cities which will  Principally benefit low and moderate income households, or  Prevent or eliminate slums and blight  Meet an urgent need (i.e. disaster response)

5. Community Development Block Grant Some Eligible Activities  Acquire or rehabilitate affordable housing for low and moderate income households  Acquire and demolish deteriorated residential & non-residential properties  Install Public Infrastructure for benefit of low and moderate income persons  Redevelop neighborhoods and downtowns  Provide Relocation Payments to households and businesses displaced by government action

6. Wisconsin Department of Administration Division of Housing  The State of Wisconsin is the administrator of HUD Small Cities CDBG funds and HOME funds that are available for use in areas of the state that are not CDBG entitlement jurisdictions, and areas of the state that are not HOME entitlement jurisdictions  The State of Wisconsin determines how these CDBG and HOME funds will be used and allocated  An opportunity must be provided for the discussion of unmet needs from individual and local governments  A 3 to 5 year consolidated plan describes the unmet needs, and the consolidated plan and annual action plan describes the planned use of CDBG and HOME funds

7. Blending of CDBG and HOME Programs with FHA Insured and Other Financing CDBG and HOME funds have been used as supplemental financing for the construction, acquisition, or rehabilitation of FHA insured multifamily housing CDBG and HOME funds have also been used to provide down payment financing assistance to further homeownership Inclusion of CDBG or HOME funds in a project will require the project to comply with federal regulations governing the use of those funds, including the provision of affordable housing for low and moderate income households.

8. Federal Housing Administration Title II Loans for Single Family Properties Title II Loans must be originated through an FHA lender and meet lender and FHA insurance underwriting and physical condition requirements The loan is only available to borrowers who will occupy the property as their principal place of residence Fixed or Adjustable Rate Loans may be made to purchasers, and owners seeking refinancing, for existing traditionally and modular constructed properties with 1 to 4 dwelling units, and condominiums. Loans may be provided for the construction of a new property if the borrower owns the land and can provide evidence of intent to occupy.

9. Title II Single Family Loans  FHA makes a payment for loss incurred by the lender if the property goes into foreclosure and title is provided to HUD  Borrowers with a credit score of 580 or higher may qualify for an FHA loan requiring only a 3.5% down payment. A 10% down payment is required if the borrower’s credit score is between 500 and 579.  A monthly FHA insurance premium is charged to the borrower.  The maximum FHA loan for a single family property in Wisconsin is $417,000 with the actual loan limit determined by the appraised value of the property and an assessment of the borrowers ability repay the loan

10. Title II FHA Single Family Loans  203(b) mortgage loan is frequently used by first time homebuyers  203 (c) loan is used to finance a condominium mortgage  203k home mortgage loan permits the combination of financing home improvement with the standard FHA mortgage, and may also be combined with a Title I home improvement loan and/or an FHA Energy Efficiency Mortgage  Additional information may be obtained by phone at -800-Call-FHA or on the Internet at http://www.hud.gov

11. FHA Title I Loans Loans of no more than 20 years are provided to borrowers for properties which they own and occupy as their principal residence. Loans may be provided for the repair, improvement or alteration to traditionally constructed or modular constructed property, and for site improvements on single family dwellings. Title I loans may be used in conjunction with 203(k) Title II mortgage loans to finance the principal property loan and improvements based on an assessment of appraised value following completion of work Maximum loan amount of $25,000 for a single unit property, and $12,000 per unit for a property with additional units up to $60,000 Any loan over $7,500 must be secured by a mortgage or deed of trust on the property.

12. FHA Title I Loans Manufactured Homes  Title I loans may be provided to finance the purchase of a new or existing manufactured home on a permanent foundation (classified and taxed as real estate)  The maximum FHA loan provided for a manufactured home on a permanent foundation which is classified and taxed as real estate is $25,000 with a maximum 20 year repayment  A Title I loan of no more than $7,500 may be provided to finance a manufactured home classified as personal property with a repayment period of no more than 12 years  Manufactured homes must meet HUD minimum property standards, and state codes, and loans evaluated on the condition of the property

13. FHA Insured Multifamily Housing Financing Programs  Through its FHA programs HUD provides mortgage insurance to loans originated by FHA approved lenders for development, acquisition and refinancing of  Multifamily rental housing and housing cooperatives with 5 or more units with to serve all segments of the housing market  Assisted living housing properties and nursing homes  Hospitals  Information is provided at http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh

14. FHA Multifamily Housing Insured Loans  A project may be eligible for FHA mortgage insurance if the sponsor can demonstrate that there is a definite market demand, that the project is economically self-sufficient, that lender financing is secure and the property meets required zoning and architectural standards.  HUD has statutory per unit mortgage limits, which vary according to the size of the unit, the type of structure, and the location of the project.  There are loan-to-value and debt service limitations. The mortgage is limited to 90 percent of HUD appraised value.  HUD also has environmental consideration requirements and minimum property standards which may in some instances exceed requirements set forth in local or state codes

15. FHA Multifamily Housing Insured Loan Process  The sponsor has a pre-application conference with the local HUD Multifamily Hub or Program Center to determine preliminary feasibility of the project.  The sponsor must then submit a site appraisal and market analysis application for new construction projects, or feasibility application for substantial rehabilitation projects).  Following HUD's issuance of a feasibility letter the sponsor submits a firm commitment application through a HUD-approved lender for processing.  If the proposed project meets program requirements, the local Multifamily Hub or Program Center issues a commitment to the lender for mortgage insurance.

16. FHA Multifamily Accelerated Program (MAP) Loan Process  MAP process is limited to Section 221(d)(4) and Section 223(f) loans  The sponsor works with a FHA MAP-approved lender who submits required exhibits to HUD for the pre-application stage. Following review HUD will invite the lender to apply for a Firm Commitment for mortgage insurance, or decline to consider the application further  If HUD determines that the exhibits are acceptable, the lender submits the Firm Commitment application, including a full underwriting package to HUD for determination if the proposed loan is an acceptable risk based on considerations of market need, zoning, architectural merits, and capabilities of the borrower.  If the proposed project is determined to be acceptable HUD issues a commitment to the lender for mortgage insurance.

17. HUD Section 207/223(f) insured loan  The Section 207/223(f) insures mortgage loans to facilitate the purchase or refinancing of existing multifamily rental housing.  These projects may have been financed originally with conventional or FHA insured mortgages.  Properties requiring substantial rehabilitation are not eligible for mortgage insurance under this program.  HUD requires completion of critical repairs before endorsement of the mortgage and permits the completion of non-critical repairs after the endorsement for mortgage insurance. the 207 loan program is the primary insurance vehicle for the Section 223(f) refinancing program.

18. Multifamily Housing Section 221 (d)(4)loan program  Section 221(d)(4) insures mortgage loans to facilitate the new construction or substantial rehabilitation of multifamily rental or cooperative housing for moderate-income families, elderly, and the handicapped and single room occupancy (SRO) projects  The program may insure projects with detached, semidetached, row house, walkup, or elevator-type properties with 5 or more units.  The program has statutory mortgage limits which vary according to the size of the unit, the type of structure, and the location of the project.

19. Multifamily Housing Cooperative Section 213 Loan  In a housing cooperative each household shares in the ownership of the project with the exclusive right to occupy a specific unit and to participate in project operations through the purchase of stock.  Section 213 mortgage loans facilitate the construction, substantial rehabilitation, and purchase of cooperative housing projects.  Only non-profit cooperative ownership housing corporations or trusts are eligible to use Section 213. They may sponsor projects directly, sell individual units to cooperative members, or purchase projects from investor-sponsors.  HUD imposes no restrictions on the income or characteristics of individual shareholders/residents in an insured cooperative.

20. Mortgage Insurance for Construction or Substantial Rehabilitation of Condominium Projects  Section 234(d) insured mortgage loans may be used to finance the construction and substantial rehabilitation of multifamily housing structures where the individual units will be sold as condominiums under Section 234(c).  The program has statutory per unit mortgage limits which vary according to the size of the unit, the type of structure, and the location of the project.  There are also loan-to-replacement cost and pre-sale limitations.  Contractors for new construction or substantial rehabilitation projects must comply with prevailing wage requirements under the Davis- Bacon Act.

21. Manufactured Housing Parks Section 207 Loans  Section 207 insured mortgages may be used to finance the construction or rehabilitation of manufactured home parks.  Manufactured home parks must consist of 5 or more spaces.  Considerations of loan approval include but are not limited to market need, zoning, environmental review including flood plain consideration, capabilities of the borrower, and availability of community resources  Contractors for new construction and substantial rehabilitation projects must comply with prevailing wage requirements under the Davis- Bacon Act.

22. Multifamily Assisted Living Housing  Section 232 insures mortgage loans to facilitate the construction and substantial rehabilitation of nursing homes, intermediate care facilities, board and care homes, and assisted-living facilities with occupancy for 20 or more persons who require skilled care.  Section 232/223(f) allows for the purchase or refinancing with or without repairs of existing projects not requiring substantial rehabilitation.  The program allows for long-term, fixed rate financing (up to 40 years) for new and rehabilitated properties and (up to 35 years) for existing properties without rehabilitation that can be financed with Government National Mortgage Association (GNMA) Mortgage Backed Securities.

23. HUD Offices Processing FHA Loan Applications  Single Family Loans for Wisconsin are processed at HUD’s Denver Home Ownership Center  Additional information may be obtained by phone at -800-Call-FHA or on the Internet at http://www.hud.gov  Multifamily Housing Loans for properties in Wisconsin are processed at various locations throughout the United States - principally at HUD Offices in Chicago, IL, Minneapolis, MN and Detroit, MI  Additional Information on Multifamily Housing Loans may be obtained from Mary Anderson at 312-913-8102 or on the Internet at http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/m fh/progdesc