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Housing Assistance Council Building Rural Communities since 1971 HAC Programs and Services Overview Eugene Gonzales, SW Region Director Albuquerque, New.

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Presentation on theme: "Housing Assistance Council Building Rural Communities since 1971 HAC Programs and Services Overview Eugene Gonzales, SW Region Director Albuquerque, New."— Presentation transcript:

1 Housing Assistance Council Building Rural Communities since 1971 HAC Programs and Services Overview Eugene Gonzales, SW Region Director Albuquerque, New Mexico

2 Housing Assistance Council Established in 1971 National nonprofit organization Created to increase the availability of decent and affordable housing for low-income people in rural areas throughout the U.S. Provide services to local, state, and national organizations Building Rural Communities since 1971

3 HAC’s Mission “To improve housing conditions for the rural poor, with an emphasis on the poorest of the poor in the most rural places.”

4 About HAC Improves housing conditions for the rural poor, with an emphasis on the poorest of the poor in the most rural places in the United States. Offers services to public, nonprofit, and private organizations throughout the rural United States. Maintains a special focus on high-need groups and regions: Indian country, the Mississippi Delta, farmworkers, the Southwest border colonias, and Appalachia.

5 Regional Offices

6 HAC Offices Housing Assistance Council 1025 Vermont Ave Ste 606 Washington DC (202) Southwest Regional Office 3939 C San Pedro NE Ste 7 Albuquerque, NM (505) Western Regional Office 717 K Street Suite 404 Sacramento, CA (916) Southeast Regional Office 600 West Peachtree Street NW Ste 1500 Atlanta, GA (404) Midwest Regional Office N Ambassador Dr Ste 310 Kansas City, MO (816)

7 Services Offered Technical Assistance Training Loan Funds Information & Publications

8 HAC Services Loans. Since 1971, HAC has made almost $164 million in loans to help create more than 56,867 homes, including water/sewer connections. HAC's loan funds have reach throughout rural America, with loan commitments to over 600 local organizations in more than 400 counties throughout 49 states and territories of Puerto Rico and the U.S. Virgin Islands. Research and Information. HAC publishes the biweekly newsletter HAC News and Rural Voices, a quarterly magazine; writes up to 15 research reports and technical manuals annually; and maintains a rural housing resource center for its constituents. HAC's Web site, is a significant source of up-to-date information on rural housing topics.

9 HAC Services Technical Assistance. HAC's expert staff delivers thousands of hours of technical advice each year to organizations and developers improving low- income rural housing. One element of HAC's assistance is a contract with HUD to help rural Community Housing Development Organizations (CHDOs) use HOME and other funding programs. Training. HAC sponsors intensive training workshops all over the country, emphasizing housing development, financing, construction and nonprofit management. HAC also regularly convenes the National Rural Housing Conference; more than 700 people attended the December 2008 conference in Washington, D.C.

10 Special Initiatives CHDO and HOME Technical Assistance Building Communities in the Lower Mississippi Delta Building Capacity in Colonias and Native American Communities Border Colonias Initiative Rural Capacity Building Initiative Rural Community Development Initiative

11 Training National Conference, Regional Trainings, & Local Workshops

12 Publications & Information Biweekly newsletter Quarterly magazine Reports Manuals Information sheets

13 HAC News

14 Rural Voices

15 Information Sheets Rural Housing Needs HUD Programs USDA Housing Programs Special Initiatives Special Populations

16 Other Publications Website (www.ruralhome.org)www.ruralhome.org Rural Housing Service Data Press Releases

17 Loan Funds HAC provides low-interest loans to finance affordable housing projects in rural communities. Loans are available to support projects at all stages of the development process, from predevelopment through construction.

18 Loan Fund’s Objectives Serve the underserved Target the highest need communities Empower low-income people Facilitate access to credit Leverage resources Provide technical assistance Exercise sound business practices Promote flexible partnerships

19 Eligible Projects Financing is available for single- and multi- family housing, with various forms of ownership and using traditional and alternative models of land tenure. Affordable and mixed-income housing projects in rural communities nationwide.

20 Eligible Borrowers Community-based nonprofit organizations Housing development corporations Self-help housing sponsors Farm worker organizations Housing cooperatives and condo associations

21 Eligible Borrowers Native American tribes Public agencies and units of local government Public utility districts Small businesses and minority contractors

22 Loan Uses & Structure Uses predevelopment land acquisition site development construction preservation gap/interim Structure loans guarantees compensating deposits letters of credit lines of credit

23 Loan Terms & Rates Loans up to five years in duration Below-market interest (currently 5.0%) Interest due quarterly 1% service fee (borrower also pays HAC's legal and other reasonable costs)

24 Loan ProductTerm Interest Rate Service Fee Non-ProfitFor Profit Pre-DevelopmentUp to 5 years5%8%1% Site AcquisitionUp to 5 years5%8%1% Site DevelopmentUp to 5 years5%8%1% ConstructionVaries $750,000 Max 5%8%1% Water/Waste WaterUp to 5 years5%8%1% PreservationUp to 30 Years5%8%1% Self-Help Housing (SHOP)2-3 years0%N/A1% Land BankingUp to 10 years $750,000 Max 5%8%1% Letter of CreditUp to 5 years $250,000 Max 5%8%1% Line of CreditUp to 5 years $250,000 Max 5%8%1% HAC Loan Fund at a Glance

25 HUD’s SHOP Program The SHOP program is authorized under Section 11 of the Housing Opportunity Program Extension Act of 1996 Funded through the U.S. Department of Housing & Urban Development (HUD) Provides grant monies for land acquisition and infrastructure improvement costs associated with the development of self-help units

26 Eligible Applicants Public or private nonprofit self-help housing organizations that are exempt from taxation under Section 501(c)(3) or 501(c)(4) of the Internal Revenue Code of Current U.S. Department of Agriculture (USDA) Rural Development Section 523 Grantees, and housing authorities with documentation evidencing “non-profit” status

27 Ineligible Applicants Municipalities Individuals

28 An affiliate organization may be disqualified if applying to more than one HUD SHOP grantee.

29 Eligible Uses Land Acquisition Purchase of real property pursuant to a deed or minimum 25 year lease Financing and closing costs associated with the land acquisition transaction

30 Eligible Uses Infrastructure Improvements Utility hook-ups and connections Wells and waste disposal systems Impact and building fees Streets, streetlights, curbs, roads, sidewalks Surveys Engineering fees Site preparation

31 Ineligible Uses  Acquisition and site development costs incurred prior to date of NOFA  New construction/rehabilitation of dwellings Not eligible under HAC’s Program:  Administrative, planning and management

32 Eligible Homebuyers Low-income individuals and families whose incomes are at or below 80% of AMI. Definition of annual income SHOP NOFA requirement –U.S. Department of Agriculture Rural Development (7 CFR Part 3550).

33 Eligible Homebuyers Minimum of 100 hours (50 hours for one adult household) of sweat equity by homebuyer on construction of homebuyers house. Persons with disabilities - Tasks Sweat equity hours exclude homebuyer counseling and home maintenance training

34 SHOP Program Changes There are five primary changes in this year’s SHOP program. 1.HAC’s forgivable or recoverable grant increases from 80% to 90%. 2.HAC’s Last SHOP Round - Acquisition undertaken by the applicant prior to July 13, 2009, the publication date of the FY 2009 HUD SHOP NOFA, was not an eligible cost. Applicants incurred costs at their own risk. Those applicants that do not receive a HAC SHOP award cannot be reimbursed.

35 SHOP Program Changes 3.Applicants must clearly state the number of hours that are volunteer labor and sweat equity on the homebuyer’s own home. 4.Self-help units must be sold below the appraised value of the property such that the homebuyer, at minimum, receives the full value of their sweat equity contribution in the form of a reduction of the purchase price. Loans and mortgages cannot exceed the purchase price.

36 SHOP Program Changes 5. Applicants must describe procedures they have in place for Section 3 compliance regardless of whether the Section 3 threshold is met. (See section VIII. HUD Program Requirements.)

37 SHOP Program Requirements Applicants must incorporate energy-efficiency measures in the design, construction, and/or rehabilitation of self-help housing units. Applicants must meet Energy Star construction standards and use Energy Star labeled products and appliances and; Each unit must receive an Energy Star certification by an independent Home Energy Rater (HER) upon completion.

38 SHOP Program Requirements Applicants must affirmatively further fair housing by promoting fair housing rights and fair housing choice in housing programs funded by the award. Successful applicants must affirmatively further fair housing by adopting and following procedures and requirements to affirmatively market the self- help housing program.

39 SHOP Program Requirements Applicants must clearly state how the sales price for the SHOP-assisted unit is established. –Applicants must include the amounts of sweat equity and volunteer labor considered in the price; –what the sales price would be if sweat equity and volunteer labor were not provided; and –the difference in the sales price and the appraised or market value with and without contributions of sweat equity and volunteer labor. – if funding subsidies are used to reduce the sales price from the appraised or market value, they must be clearly distinguishable from the sweat equity and volunteer labor.

40 HAC SHOP Award Limits No maximum dollar cap Per dwelling unit request can not exceed $15,000 Only apply for one (1) project.

41 Timelines Number of Units Production Timeline Four or Less2 years Five or more3 years

42 SHOP Award Terms & Conditions 1.Recoverable grant. 2.All units completed and occupied by the required deadline. 3.Interest assessed on units not completed/occupied by the production deadline. 4.Up to 90% of SHOP award may be converted to a grant.

43 SHOP Ready or Not? Do you have?  Administrative funding in place  Experienced project staff on board  Construction & permanent financing identified  Sites identified & pre-qualified families

44 Contact Information Karin Klusmann Loan Fund Director Ext. 118 Myra Cobb-Davis Senior Loan Specialist Ext. 143 Jann Yankauskas Senior Loan Officer Ext. 149 Dierdra Pressley Loan Officer Ext. 154 Carlos Muralles SHOP Program Manager Ext. 144 Tanisha Jacob Loan Fund Assistant Ext. 128 Housing Assistance Council (202) (202) Fax

45 Office Locations HAC Southwest Office 3939 C San Pedro, N. E. Suite 7 Albuquerque, NM , fax: HAC Midwest Office NW Ambassador Drive Suite 310 Kansas City, MO , fax: Housing Assistance Council 1025 Vermont Avenue, N.W. Suite 606 Washington, DC , fax: HAC Southeast Office 600 West Peachtree Street, NW Suite 1500 Atlanta, GA , fax: HAC Western Office K. Street Suite 404 Sacramento, CA , fax:

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