1 Martin O'Malley GOVERNOR Anthony G. Brown LT. GOVERNOR Raymond A. Skinner SECRETARY Clarence J. Snuggs DEPUTY SECRETARY First Look Maryland New Tools and Funding for Homeownership and Neighborhood Stabilization August 9, 2012

2 COMMUNITY DEVELOPMENT ADMINISTRATION

3 New CDA Programs Martin O'Malley GOVERNOR Anthony G. Brown LT. GOVERNOR Raymond A. Skinner SECRETARY Clarence J. Snuggs DEPUTY SECRETARY

4 CDA Progams Homefront An initiative for military families and veterans Lower interest rate Higher DSELP Targeted Areas Initiative- Interest Rate Reduction Move up or down buyers Save-A-Home Lower Interest Rate DHCD REO

5 New CDA Programs One half of a percent discount off the prevailing MMP rate $10,000 assistance from the Downpayment and Settlement Expense Loan Program (DSELP) Effective until the allocated funds have been expended. MD Homefront: The Veterans and Military Family Mortgage Program

6 New CDA Programs Interest rate of 2.875% (APR 3.675%) for a home purchase loan in a targeted area Effective for loans reserved on or after 10:00 a.m. on May 31, 2012 and continuing until the allocated funds have been expended. $ 30 Million Targeted Areas Initiative!

7 $30M Targeted Areas Initiative WHAT IS A TARGETED AREA?

8 $30M Targeted Areas Initiative The following jurisdictions are designated targeted areas: Allegany Co. Baltimore City Caroline Co. Garrett Co. Dorchester Co. Kent Co. Somerset Co. Targeted Areas

9 $30M Targeted Areas Initiative In addition, portions of other counties are targeted areas To determine if a specific area is targeted: Targeted Areas (continued)

10 $30M Targeted Areas Initiative Maryland Mortgage Program loans are usually for first-time homebuyers, BUT Borrowers who are purchasing in a TARGETED AREA do not have to meet the first-time homebuyer definition Veterans qualify for a one-time waiver of this requirement Not a First-Time Homebuyer?

11 Save-A-Home Short Sales and Foreclosed Homes Lower Interest Rate

12 Interest Rates Rates effective July 31, 2012 (subject to any major market moves however) PROGRAM Maryland Mortgage Program (MMP) Save-A-Home Loan Program (formerly "Homeward Bound" Program) DHCD-owned Foreclosure Program Non-TargetedTargeted Non-Targeted (0.25% below the MMP rate) Targeted (Non-Targeted and Targeted) Interest Rate3.500%2.875%3.250%2.875%1.000% APR4.355%3.675%4.082%3.675%1.638% Maximum DSELP Amount $5,000 (plus any applicable Partner Match Program funds) PROGRAM Maryland Homefront: the Veterans and Military Family Mortgage Program* Non-Targeted (0.50% below the MMP rate) Targeted Non-Targeted (0.50% below the MMP rate) Targeted (Non-Targeted and Targeted) Interest Rate3.000%2.875%3.000%2.875%1.000% APR (VA)3.167%3.041%3.167%3.041%1.149% APR (FHA) 3.809% 3.675% 3.809% 3.675%1.638% Maximum DSELP Amount $10,000 (plus any applicable Partner Match Program funds) Check current interest rates at:

13 Maryland Mortgage Program Loans MMP LOANS HAVE: 30-year loan terms Fixed interest rate - entire term of loan FHA, VA, or RHS loan types Minimum credit score of 620

14 MMP Eligibility Criteria Must be a First Time Homebuyer unless the borrower is a qualified veteran using a waiver or the property is in a targeted area Minimum Credit Score: 620 Maximum Debt-to-Income (DTI) Ratio : 43% with exceptions up to 45% with strong compensating factors Maximum Loan Amount: $417,000 (which must include the FHA Up Front Mortgage Insurance Premiums, VA funding fees, or RHS guarantee fees) Principal Residence: Must occupy home as principal residence; non-occupant co-borrowers are not permitted Income & Purchase Price Limits: Total annual household income may not exceed Income Limit (see chart on website at for income and purchase price limits by location)

15 Homebuyer First Steps Contact a housing counseling agency. A counseling certificate must be received prior to the execution of a contract of sale. If you are requesting a DSELP loan (Downpayment and Settlement Expense Loan Program, 0% deferred), there may be particular counseling agencies for your jurisdiction. Go to to find a counselor. Enter into a contract of sale on an eligible property. This can be done with the assistance of a realtor chosen by you. (Newly constructed homes must be in a Priority Funding Area). Contact a CDA approved lender. The lender will do a preliminary review of the borrower's eligibility and reserve funds for the loan. Approved lender list is found at For More Information: Contact Single Family Housing at or call

16 Maryland Mortgage Program Loans Homebuyer Education is Required A counseling certificate is required from the homebuyer education class provider If utilizing DSELP or matching funds, specific requirements for Baltimore City, Anne Arundel, Baltimore and Harford Counties must be followed Refer to for additional information on counseling requirements.

17 Down Payment & Settlement Expense Loan Program (DSELP) $5,000 toward downpayment or closing costs 0% deferred loan Repayable in full upon sale or transfer, or when the first mortgage is paid off or refinanced Available with all MMP loans!

18 Partner Match Programs House Keys 4 Employees (HK4E) with Smart Keys 4 Employees (SK4E) component Builder/Developer Incentive Program (BDIP) Community Partners Incentive Program (CPIP) These programs are available with an MMP loan

19 House Keys 4 Employees Workforce Housing Initiative Additional downpayment assistance through employer matching contributions An employer partnership initiative that matches funds from employers to help their employees who want to buy a home

20 House Keys 4 Employees (continued) What is it? Provides additional downpayment and closing cost assistance; can be used in addition to DSELP May only be used in conjunction with CDA mortgage loans Refer to CDA’s website for current list of participating employers

21 House Keys 4 Employees (continued) DHCD will match dollar-for-dollar up to $2,500 from a participating employer toward downpayment and closing costs The HK4E match from DHCD is a 0% deferred loan, repayable when the home is sold or transferred, or when the first mortgage is paid off or refinanced

22 Smart Keys 4 Employees A “Smart Growth” enhancement to the House Keys 4 Employees (HK4E) Program allows borrowers to receive additional matching funds if: Subject property is located in a Priority Funding Area Subject property is within 10 miles of borrower’s place of employment or within the boundaries of the local jurisdiction DHCD offers a bonus match of $1,000 for borrowers that meet this criteria

23 These incentive programs enable eligible homebuyers to receive supplemental downpayment and/or closing cost assistance IN ADDITION TO DSELP. Builder/Developer Incentive Program (BDIP) & Community Partner Incentive Programs (CPIP)

24 Builder/Developer Incentive Program (BDIP) & Community Partner Incentive Programs (CPIP) The BDIP or CDIP match from DHCD is a 0% deferred loan, repayable when the home is sold or transferred, or when the first mortgage is paid off or refinanced DHCD will match dollar-for-dollar up to $2,500 from a participating builder/developer or community partner toward downpayment and closing costs Refer to CDA’s website for current list of participants

25 Maryland Mortgage Program Combining Assistance Programs House Keys for Employees (HK4E), Builder/Developer (BDIP), the Community Partner and (CPIP) can be utilized either as stand alone forms of assistance, OR These programs can be combined with DSELP

26 For more information…

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28 DHCD Owned Properties

29 Purpose The Maryland Department of Housing and Community Development’s (DHCD), administers the “First Look Maryland” program through the Division of Credit Assurance (DCA). The program is an effort to give non-profits, public housing authorities, and other community focused entities the first opportunity to purchase DHCD owned Single Family properties. The” First Look Maryland” program, offers approved program participants the first opportunity to purchase newly listed DHCD real estate owned (REO). For the first 15 days, we will only accept offers from the First Program participants. Special financing available to qualified Maryland Mortgage Program (MMP) borrowers who purchase the homes from program participants. Currently a 1% (1.638% APR) is available.

30 Eligibility All nonprofits, PHAs and other community focused groups wishing to participate in the First Look Maryland Program must register with DHCD. The First Look Maryland Program is available to nonprofits with proof of 501-C3 status for a minimum of two years, and to registered public housing authorities.

31 Requirements In order to begin the process of becoming DHCD-approved, please submit the following documents via mail or fax for review by the Department: An application in the form required by the Department. A certification in the form required by the Department that the nonprofit organization shall abide by all requirements of: 1.Titles VI and VII of the Civil Rights Act of 1964 as amended, Title VIII of the Civil Rights Act of 1968 as amended, 2.The provisions of the Governor’s Code of Fair Practices, as amended, 3.Governor’s Executive Order relating to drug-free and alcohol-free workplaces, and any Department regulations adopted to carry out the requirements of that order;

32 Cont’d A contract affidavit in the form required by the Department; A copy of the following organizational documents for the nonprofit organization: 1.A letter from the Internal Revenue Service granting tax-exempt status under 501(c)(3) of the Internal Revenue Code, 2.Article of Incorporation or other applicable documents, 3. Bylaws, 4.Certificate of good standing, and 5.A resolution authorizing for the participation in the Program and purchase for a particular property where applicable, and designation of the person or persons authorized to sign on behalf of the organization; and Any other documents required by the Program.

33 Additional Requirements The nonprofit organization shall be in good standing and may not be under suspension or debarment from any of the Department’s programs in any action under COMAR The nonprofit organization may not be in default under any loan from the Department. At the time of settlement, the nonprofit organization shall have all necessary legal and corporate authorizations to purchase the property. DHCD reserves the right to remove any nonprofit, especially ones that do not go to closing

34 FAQs Q: Once my organization is approved, how do I find out which DHCD Homes are available to purchase? A: In order to determine what properties are available, go to DHCD’s web page. Once there, click on the link to Real Estate for Sale and this will allow you to view the current listings. This site is updated regularly with available properties. Q: How long does my DHCD approval last? A: Unless revoked by the Department, each nonprofit organization approved for the First Look Program is subject to recertification every two years. This recertification should be requested by the organization within 30 days of the expiration of their previous approval. Q: What are the experience requirements a nonprofit must meet to obtain DHCD approval? A: The nonprofit must have a minimum of two consecutive years, within the last four years, of housing development experience. Housing development experience is defined as acquisition, rehabilitation, and sale to low-to-moderate income persons. The experience must include the renovation and resale or renovation and rental of single family residences. The nonprofit is not required to market only to a homeowner, but some special conditions may only apply to qualified MMP Buyers. If you do not meet the experience requirement submit a business resume. Q: Can the nonprofit hold the property and rent it out? A: Yes

35 For more information, please contact: Division of Credit Assurance Maryland Department of Housing and Community Development 100 Community Place Crownsville, MD (410) Fax: (410)

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38 DSELP INCENTIVE Special DSELP Incentive! The first five organizations to purchase a property under the First Look Maryland program will receive a certificate for an additional $5,000 in assistance from our Downpayment and Settlement Expense Loan Program (DSELP) for use by the borrower who purchases the property from them. DHCD will send the DSELP certificate to the organization along with the First Look certificate. These should be passed on to the purchasing homebuyer—both must be used within six months with a qualifying CDA loan.

39 First Look Maryland Certificate

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41 Neighborhood Revitalization

42 Neighborhood Conservation Initiative $14 million from the Attorney General Settlement For neighborhood stabilization activities similar to those funded with HUD NSP funds, including Acquisition, rehab, resale / rent Down Payment assistance to homebuyers Targeted to areas still struggling with the impact of housing foreclosures -- locally designated “Neighborhood Conservation Areas”

43 Neighborhood Conservation Goals Increase affordable and workforce housing opportunities in neighborhoods affected by foreclosure Maximize revitalization impact through leverage and coordination with other public and private resources Encourage innovation between public and private sectors through new approaches to household and neighborhood stabilization

44 NCI Timeline RFP AVAILABLE SOON, Eligible Applicants: Local governments or non-profit community development organizations Target Areas: Neighborhood Conservation Areas Training Dates: TBD Application Due Date: TBD

45 Neighborhood Conservation Initiative Eligible Activity: Acquisition and rehabilitation of houses for resale or rental Montgomery County

46 Neighborhood Conservation Initiative Eligible Activity: Downpayment Assistance Charles County

47 Neighborhood Conservation Initiative Eligible Activity: Acquisition of blighted or abandoned property for new housing or community facilities Allegany County

48 Neighborhood Conservation Initiative Goal is to return blighted neighborhoods… Cornerstone Hill, Cumberland

49 Neighborhood Conservation Initiative Back into attractive, vibrant neighborhoods Cornerstone Hill, Cumberland

50 Neighborhood Conservation Tax Credit HB 923, Neighborhood Conservation Act of 2012 Enabling authority for local governments to design a property tax credit for homes purchased in locally designated areas – Neighborhood Conservation Areas

51 Strategic Demolition & Smart Growth Impact Fund (SGIF) SFY13 appropriation: $2.5 million Provides grants or loans for capital projects: Site acquisition and land assembly Demolition Site development, including public infrastructure improvements Construction-level architectural and engineering designs Left: Route 1 infrastructure improvements Right: College Park, Property acquisition

52 SGIF Outcomes Desired Smart Growth Outcomes: Accelerate compact mixed-use development Catalyze development around State-designated TODs Develop healthy local economy – augment tax base Create local jobs Provide a range of housing choices Demonstrate environmentally sensitive development practices

53 SGIF Timeline RFP AVAILABLE NOW, Eligible Applicants: Local governments or non-profit community development organizations Target Areas: Sustainable Community Areas Training Dates: Tuesday, August 28, 10am – 12noon OR 2pm – 4pm (DHCD Crownsville) Wednesday, August 29, 10am – 12noon OR 2pm – 4pm (NR office, Baltimore) Application Due Date: Friday, October 12, 2012

54 Questions? Smart Growth Impact Fund: Kevin Baynes, , Mary Kendall, , Neighborhood Conservation Initiative: Cindy Stone, , Neighborhood Conservation Tax Credit Carol Gilbert, ,