1. West Virginia Housing Development Fund Programs At A Glance Erica L. Boggess Acting Executive Director

2. Mission & Purpose The Fund’s primary purpose is to increase the supply of affordable residential housing for persons and families of low and moderate income. The Legislature also empowered the Fund to provide construction and permanent mortgage financing to public and private sponsors of such housing. This purpose has been expanded over time by the legislature to include, among other things, housing for persons of moderate income and temporary housing for homeless people and disaster victims. 2

3. Structure and Organization The Fund is governed by an 11-member Board of Directors The Governor, Attorney General, Commissioner of Agriculture, and the State Treasurer serving as public directors Seven private directors appointed by the Governor from the general public The Governor is designated as the Chair of the Board of Directors The Fund is a self-supported governmental entity and receives no State appropriations. 3

4. Revolving loan programs provide sustainability Act states “loans are not otherwise available, wholly or in part, from private lenders upon reasonably equivalent terms and conditions” Quazi-governmental structure provides flexibility Revenues generated from loans, fees and investment earnings are used to further programs 4

5. Our Program Options LIHTC New Construction Rehabilitation HOME Rental New Construction Rehabilitation MMRP Rehabilitation Multifamily Lending Land Development WV PRI (Demo) Special Needs Assistance Single Family Ownership First Time Buyer Movin' Up Downpayment Assistance Secondary Market LAMP New Construction Financing On-Site System Loan RentalOwnership 5

6. Homeownership Program Commonly know as “first time homebuyer” program Funded by tax-exempt mortgage revenue bonds – AAA/Aaa ratings reduce borrower rates Targeted to low and moderate income borrowers Regulated by IRS Code and subject to provisions of bond resolutions Subject to full underwriting and federal lending laws and regulations 6

7. 7 Average Payment $582 – Including Taxes and Insurance Average Sales Price $112,564 = Affordable Average Family Income = $43,865 Homeownership Program (Cont’d)

8. Single Family Movin’ Up Designed for homeowners looking to purchase a bigger home, downsize or just make a change No first time homebuyer requirement House price and income limits set by the Fund’s Board New initiative designed to help families Move Up to a better home. Income Limits $113,760 for 1-2 persons or $132,720 for 3 or more 8

9. Downpayment and Closing Cost Assistance (Board approved – HDF revenues) Available in conjunction with Homeownership and Movin’ Up Programs 15 year term at 2.5% interest rate Homeownership Program - $15,000 max depending on LTV Movin’ Up Program - $8,000 max depending on LTV 9

10. Secondary Market (Board approved – HDF revenues) Designed to provide liquidity to the State’s small mortgage lenders The Fund purchases mortgages held by banks and then sells the loan in the secondary market to Fannie Mae Process provides banks funds for additional mortgages 10

11. LAMP (Board approved – HDF revenues) LAMP provides a secondary market to Habitat for Humanity affiliates to increase home building production for very low income families The Fund purchases the loan for its portfolio Provides funds for Habitat to build its next home 11

12. Incentive program to encourage homebuilders to build moderate single-family homes House price not to exceed MRB limits 15 month term, interest due at maturity Interest rate.5% if house price <$200,000; if greater 1% 80% LTV 12 New Construction Financing Program (Board approved – HDF revenues)

13. On-Site Systems Loan Program Partnership with the WV DEP -the Fund acts as conduit to loan DEP clean water revolving funds Provides for the upgrade, replacement or repair of inadequate septic systems 10 year, 2% loan up to $10,000 No income limits 13

14. Low Income Housing Tax Credit (Federal – IRS) Properties must maintain affordable units for a minimum of 30 years Physical inspections and tenant eligibility reviews Eligible tenants must be at or below 60% of area median income Highly competitive RFP process 14

15. HOME Program HOME is a federally funded HUD program – requires state matching funds Provides financing for both homeownership and rental projects Repayment and loan terms vary based on underwriting of each project Physical inspections and tenant eligibility reviews 15

16. MMRP – Mini Mod Rehabilitation Program (Board approved – HDF revenues) Provides owners of rental properties financing to rehabilitate existing rental units or assist with the completion of new rental units 16 Owners can be individuals, partnerships, corporations, non- profits or LLCs Rehab may include minor repairs such as furnace or window replacement or major rehab Max $25,000 if first lien, $20,000 if second lien Term of up to 10 years at up to 6% Max $300,000 or 95% LTV

17. Multifamily Lending (Board approved – HDF revenues) Provides permanent financing of rental properties Financed properties may also receive funding from the HOME, tax credit or other Fund programs Properties often have federal loan guarantees Generally require replacement reserves 17

18. Land Development Program (restricted by HDF Act) The Land Development Program provides loans for the purpose of acquiring and improving land for residential or non- residential construction. 18

19. 19 WV Property Rescue Initiative (Legislative restrictions – HDF revenues) Revolving loan program for counties and municipalities to demolish structures that constitute health and safety hazards to improve communities. Loan terms up to 7 years Years 1-2, no interest or payments due Must have adopted proper ordinances and use licensed code officials

20. Special Assistance Lending (Board approved – HDF revenues) Provides funding for non-traditional group housing for the homeless, substance and physical abuse recovery Scattered site repairs Repayment limited – only required if project does not fulfill mission for generally 10 years 20

21. Loan Servicing The Fund services all loans in its portfolio and on behalf of other investors Provides personalized customer service Troubled loan work-out and loan modifications The Fund is the largest loan servicer in the State 21

22. General Program participants subject to Multi Family lending policies Contact your Area Managers for assistance on various programs 22

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24. Erica L. Boggess Acting Executive Director West Virginia Housing Development Fund 5710 MacCorkle Ave SE Charleston WV 25304 eboggess@wvhdf.com 304-391-8638 24