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U. S. Department of Housing and Urban Development September 13, 2005.

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Presentation on theme: "U. S. Department of Housing and Urban Development September 13, 2005."— Presentation transcript:

1 U. S. Department of Housing and Urban Development September 13, 2005

2 What Does HUD Do? In the State of Indiana HUD insured more than 26,000 Single Family mortgages last year HUD also insures mortgages on more than 600 Multi- Family properties, representing more than 58,000 total units (More than 41,000 of those units have Section 8 subsidy) Subsidizes 66 Public Housing Authorities plus the State of Indiana - 54,000 units of PIH and Section 8 Provides CDBG funds to 24 Entitlement Communities and the State of Indiana, totaling over to $78 million for FY 2005 Total HUD grants to Indiana last year - $545 million

3 Affordable Housing Needs According to the State’s most recent Consolidated Plan: Shortage of 152,000 housing units for extremely low income people earning less than 30% of median household income More than 187,000 households are paying more than 30% of their income for housing costs

4 2001 GAO report – Only one-third of Eligible very low-income renter households receive housing assistance

5 HUD Affordable Housing Programs CDBG HOME Section 8 Homeownership Single Family Programs u 203(b) mortgage insurance program u Good Neighbor Program u Teacher Next Door u Officer Next Door

6 Community Development Block Grant State of Indiana - $78,271,273 Indiana Office of Rural Affairs ($34,933,351) Reallocates $5,000,000 to IHFA Assisting homebuyers directly through downpayment assistance or a revolving loan fund for first-time buyers. Reconstructing or rehabilitating housing Acquiring property

7 HOME Funds State of Indiana - $30,192,799 IHCDA receives $16,320,149 Allowable activities build, buy or rehabilitate affordable housing rental or homeownership rental assistance to low-income people grants, direct loans, loan guarantees or other forms of credit enhancement

8 Section 8 Homeownership Homeownership Rule - published September 11, 2000 Effective October 12, 2000 PHA option Offer whether to limit number

9 Section 8 Homeownership n Limitations –Can be used for up to 15 years for mortgages 20 yrs or more, 10 years for shorter term(elderly & disabled exempt) –Must have income = 2,000 hrs @ minimum wage ($5.50 x 2,000). Welfare assistance to elderly or disabled must be counted toward income requirement –One or more adult family members must be employed at least 30 hrs per week

10 Section 8 Homeownership Programs  Active programs –Bloomington –Columbus –Fort Wayne –Goshen –Indianapolis –Lafayette –Michigan City –State of Indiana FSSA

11 Example of Sec 8 Voucher Fair Market Rent = $500 SSI = $521 If apartment rents for $510 Section 8 pays$344 Tenant pays$166 (33%) Sec 8 pays difference between FMR of $500 and 30% of tenant income ($156)

12 Single Family Housing Programs

13 Single Family Mortgage Insurance !203(b) FHA Mortgage Insurance rMore flexible underwriting terms than a conventional mortgage rLow downpayment requirements rProtects lenders against default risk rMany closing costs can be financed

14 Discounted Sales of REO Properties Sales to Non-profits 10% to 30% discount Officer/Teacher Next Door 50% discount Must be in revitalization area Good Neighbor Program Sale to city for $1

15 Revitalization Areas Revitalization areas are HUD-designated neighborhoods in need of economic and community development and where there is already a strong commitment by the local governments. Census Tracts or blocks in Zip Codes East Chicago, Elkhart, Fort Wayne, Gary, Indianapolis, New Albany, Terre Haute

16 FHA Rehab Loans 203 (k) Rehab Loan Purchase/Refinance and Rehab Loan Must have at least $5,000 in rehab work Title 1 Rehab Loan Insures loans to finance the light or moderate rehabilitation of properties. Limit of $25,000 in loan amount. Can be used for accessibility rehab

17 MultiFamily Housing Programs Production Programs Elderly Housing (Section 202) Supportive Housing for Persons with Disabilities (Section 811) Grants to nonprofit sponsors to build or rehabilitate rental housing for low-income elderly/disabled with support services Rental assistance to residents covering the difference between monthly operating cost and 30 percent of residents adjusted income

18 Housing Assistance Review Team The Indiana Housing Assistance Review Team (IHART) is a group of representatives from various state and federal agencies that provides assistance and guidance in exploring financial options for community housing developments.

19 IHART Process Submit In-Take Document with attachments to IRDC Project will be discussed at IHART meeting Letter of funding options available sent to community Follow-up with community

20 Benefits of IHART Provides “one-stop shopping” for communities Early identification of potential funding sources Identifies partnering opportunities Early notice to funding agencies of communities’ options

21 Tips for IHART Success Present project ideas early in planning stages Provide as much information as possible Follow-up on suggestions from team Contact agency representatives for additional assistance

22 How to Access HUD Programs Through Your City or the State of Indiana CDBG, HOME HUD SuperNOFA Application Available on our web site: HUD Approved FHA Lender 203(b) 203(k) REO Sales Available on web site:

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