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 $4M  A funding bill under consideration this week proposes a 17% cut for 2016

KHRC – Eligible Activities  Rental Housing Development  Community Housing Development Organizations  HOME 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 organizations  HOME provides the difference between gross rent and 30% of tenant income.

KHRC – Eligible Activities  First Time Homebuyer Program  Down payment assistance for home purchase  Available through participating lenders  80% 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 households  Down payment assistance goes to households up to 80% of AMI  Rental 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 composition  Low income representation and input  Experience and capacity

Rental Housing Development  Applications due in February.  Up to $500,000  Priorities for things like:  Targeting lower income and rents  Leveraging other sources of funds  Design (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 - Topeka HOME funds from KHRC and the City of Topeka

Affordability Period  New construction – 20 Years  Rehabilitation – 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 housing  Not 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 period  Failure 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 assistance  Security deposit assistance  Utility 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 inspection  Rent 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

Leaseand TBRA renewal  A 12 month lease is required  Rental 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 assistance  Up to 80% of Area Median Income  Subject to HUD purchase price limits  Existing homes only  Must 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 development  Limited homeownership is eligible  Not a likely activity initially  Acquisition  Rehabilitation  New 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 sources  HOME, LIHTC, AHP, USDA, SHP…….

NHTF – Program Design  Rental assistance is not eligible  Limited operating assistance is eligible  No match requirement  State can determine per-unit subsidy limits (HOME is subject to HUD limits)