Transcript Relocation Aid Presentation - Welcome to Relocateaid.com

Presented to
Relocation Aid
Minnesota Housing Programs
April 21, 2006
Minnesota Housing’s Mission
We are committed to meeting
Minnesotans’ needs for
decent, safe, affordable homes
and stronger communities
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Minnesota Housing’s Strategic Goals
• End Long-Term Homelessness
• Increase Minority Homeownership
• Preserve Strategically The Existing
Affordable Housing Stock
• Provide Housing Choices For Low And
Moderate Income Workers
• Housing Partner Of Choice
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Today’s Multifamily Agenda
• Three Goals:
» Agency Introduction
» Long-term tools:
▪ Case Study
▪ Capital Resources
» Short-term tools:
▪ Rental Assistance Resources
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Housing Assistance, 10/04 - 9/05
• Single Family
» $398.8 million in assistance to over 16,400
homeowners and homebuyers.
• Multifamily
» $238.5 million to over 41,500 units of
affordable rental housing.
» Contact staff to determine affordable rental
housing available in your area.
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Case Study – Agency Financed
• New San Marco Apartments
» 70 SRO/Efficiency units, New Construction
» City of Duluth
» Affordable to residents at 30% AMI
» 36 Long-term homeless units
» 40 Section 8 PBV units
» 30 GRH units
» Targeting homeless with disabilities
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New San Marco - Site
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Case Study – New San Marco
• Multi-year process:
» Planning
» Application
» Selection
» Underwriting
» Construction
» Occupancy
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Case Study – New San Marco
• Financing – TDC, $9.2 Million
» $5.96 million – Tax Credit Equity ($650,000)
» $1.65 million – Minnesota Housing
» $500,000 – Federal Home Loan Bank
» $400,000 – HUD
» $300,000 – Greater MN Housing Fund
» $250,000 – City of Duluth (HOME, HIF)
» $170,000 – MN Green & Owner Equity
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Multifamily Resources
• Annual Request for Proposals (RFP)
» Capital Resources
» Rental Assistance
» Operating Subsidy
• 2006 RFP
» Published, April 24
» Applications deadline, June 20
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2006 RFP Timeline
• April 24, 2006 – RFP Published.
• May 10, 2006 – RFP Training.
» Earle Brown Center, Brooklyn Center
• June 20, 2006 – RFP Deadline.
• October 26, 2006 – Board Selection.
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Multifamily Resources – 2006 RFP
• State Resources
» Approximately $80,000,000
• Funding Partner Resources
» Approximately $5,000,000
• Housing Tax Credits
» Approximately $10,000,000
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Multifamily Resources – 2006 RFP
• Funding Partners
»
»
»
»
Family Housing Fund
Greater MN Housing Fund
Met Council
Green Communities Initiative
• Collaborating Partners
»
»
»
»
Hennepin County
Ramsey County
City of Minneapolis
City of St. Paul
• Coordinating Partners
» Federal (HUD & USDA Rural Dev.)
» State (DHS, DEED)
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Multifamily Resources – 2006 RFP
• Minnesota Housing Funding Programs
» Housing Trust Fund
▪ Deferred Loan
▪ Capital, Operating Subsidy & Rental Assistance
▪ 70% targeted toward LTH proposals.
» Ending Long-Term Homeless Initiative Fund
▪ Deferred Loan
▪ Capital, Operating Subsidy & Rental Assistance
▪ Targets LTH proposals.
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Multifamily Resources – 2006 RFP
• Funding Programs Continued:
» Publicly Owned Permanent Supportive
Housing Program
▪ Forgivable Loan, Capital
▪ Public ownership requirement
▪ LTH requirement
» Economic Development Housing Challenge
▪ Deferred Loan, Capital
▪ Workforce housing proposals
▪ American Indian set-aside
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Multifamily Resources – 2006 RFP
• Funding Programs Continued:
» Preservation of Affordable Housing Investment
Fund
▪
▪
1st Mortgage or deferred, Capital
Preservation – Acquisition, rehab or debt restructuring of
developments with Project Based Federal assistance and
supportive housing developments.
» Economic Development Housing Challenge
▪
▪
▪
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Deferred Loan, Capital
Workforce housing proposals
American Indian set-aside
Multifamily Resources – 2006 RFP
• Funding Programs Continued:
» Low and Moderate Income Rental Program
▪ 1st Mortgage, Capital
▪ Acquisition, rehab and new construction
» Flexible Financing for Capital Costs
▪ Deferred loan – in conjunction with 1st mortgage
▪ Acquisition, rehab and new construction
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Multifamily Resources – 2006 RFP
• Funding Programs Continued:
» Housing Tax Credits
▪ Housing Program under IRS rules
▪ Eligible acquisition, rehab and new construction
▪
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expenses
Two competitive rounds per year
Rental Assistance Resources
• Rental Assistance
» Housing Opportunities for Persons w/ AIDS
▪
Short-term Rent, utility and mortgage assistance
» ELHIF – LTH specific
▪
Available through the RFP or local administrators
» Bridges – SPMI specific
▪
Minnesota Housing partners with DHS
» Local Administrators (ELHIF & HTF)
▪
▪
Each program is unique
21 program administrators statewide
►
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Contact list available on website
Rental Assistance Resources
• Rental Assistance
» Minnesota Housing Contact:
▪ Kim Lieberman, Program Manager
►
►
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651-296-9841
[email protected]
Rent Assistance Resources
• Rent Assistance Brochure
» www.mhfa.state.mn.us/multifamily/RA_Brochure.pdf
• HTF & ELHIF Rent Assistance Program Info.
» www.mhfa.state.mn.us/multifamily/HTF.htm
• HTF & ELHIF Rent Assistance Program Administrators
» www.mhfa.state.mn.us/multifamily/HTFRA_ELHIF_Contacts.pdf
• Bridges Program Administrators
» www.mhfa.state.mn.us/multifamily/BRIDGES%20Contacts.pdf
• Bridges Program Information
» www.mhfa.state.mn.us/multifamily/bridges.htm
• Family Homeless Prevention and Assistance
» www.mhfa.state.mn.us/multifamily/FHPAP.htm
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Multifamily Resources
• Multifamily Housing
» www.mhfa.state.mn.us/multifamily/_home.htm
• Consolidated RFP Guide
» www.mhfa.state.mn.us/multifamily/MF_Application_Guide.pdf
• Housing Tax Credits
» www.mhfa.state.mn.us/multifamily/Multifamily_Tax.htm
• Long Term Homeless Business Plan
» www.mhfa.state.mn.us/multifamily/LTH.htm
• Program Guides
» www.mhfa.state.mn.us/managers/Program_Guidelines.htm
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For More Information Contact
Ken Doresky
651-284-3177
[email protected]
400 Sibley Street, Suite 300
St. Paul, MN 55101
651-296-7608 * 800-657-3769 * TTY 651-297-2361
www.mhfa.state.mn.us
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Presented to
Single-Family Homeownership and
Home Improvement Programs
April 21, 2006
Supporting Successful Home Ownership
Before-Purchase
Purchase
Education
& Outreach
Affordable Financing: Loans
After-Purchase Post-Purchase
Support
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Pre-Purchase
Counseling
Default and Foreclosure
Counseling & Assistance
Homebuyer Education
Homestretch Curriculum
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Advantages vs. disadvantages of homeownership
Mortgage industry terms
Overview of loan application process
Evaluation of credit picture and barriers
Shopping for a home
Home Inspections
Loan closings & forms
Post-purchase responsibilities
First Mortgage Programs
Minnesota Mortgage Program (MMP)
• Below market interest rate
• $3,000 in entry-cost assistance available
• Available statewide from participating lenders
Community Activity Set Aside (CASA)
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Below market interest rate
$3,000 in entry-cost assistance available
Monthly payment assistance ($75, $50, $25)
Option of a 40– year term mortgage
Partnerships apply for the program
Borrower Eligibility Requirement
Income Limits: MMP and CASA
Household Size
11-County Twin
Cities Metro Area
Olmsted County
Balance of State
1–4
$63,000
$57,000
$55,000
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$68,500
$62,000
$59,500
6
$73,500
$66,500
$64,000
7
$78,500
$71,000
$68,500
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$83,500
$75,500
$73,000
• 11 County Twin Cities Metro Area contains: Anoka, Carver, Chicago, Dakota, Hennepin, Isanti,
Ramsey, Scott, Sherburne, Washington and Wright Counties
• These limits are based on data supplied by the US Department of Housing and Urban Development
(HUD)
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Borrower Eligibility Requirement–
House Price Limits
For MMP and CASA
Area
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New and Existing Residences
11 County Twin Cities Metro Area
$298,125
Balance of State
$237,031
Borrower Eligibility Requirement
First-time Homebuyer
• Has not had an ownership
interest in a principal residence
for 3 years
First-Time Homebuyer (Section 4.3)
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Downpayment and Entry-Cost Assistance
Homeownership Assistance Fund (2nd Mortgage)
• Interest free, deferred loan
• Helps borrowers qualify by providing cash to close,
improving ratios and increasing borrower purchasing
power
• Due and payable upon one of the following:
 Sale or transfer of property
 Refinance of the first mortgage
 Payoff of first mortgage
 No longer a primary residence
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Downpayment and Entry-Cost Assistance
• Various levels of assistance depending
on mortgage program
» MMP
▪ $3,000 in entry-cost assistance for eligible
borrowers
►
» CASA
Targeted borrower/non-targeted borrower requirements
▪ $3,000 in entry-cost assistance
▪ Monthly payment assistance ($75, $50, $25)
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HAF Program Guidelines
1. CASA or MMP First Mortgage
2. Borrower meets income limits
3. Borrower required to pay out of own
funds $500
(Borrower must cover their minimum investment per
guidelines of the insurer/guarantor FHA,VA, RD,etc.)
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How Borrowers Access Programs
Apply with a lender that originates Minnesota
Housing first mortgage programs.
The lender originates, processes, underwrites,
closes and funds the loan, then sells the loan to
Minnesota Housing.
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Credit Requirements
• Credit worthiness
(Section 4.7)
• Must be a good credit risk as defined by loan
type and mortgage industry underwriting
standards
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–
–
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FHA
VA
RD
Conventional (Fannie Mae, Freddie Mac, etc.)
Mortgage Eligibility
Fully amortized fixed rate loans- No balloons
Allowable Loan Amortization Terms
• MMP (15, 20, 25, 30)
• CASA (15, 20, 25, 30, 40)
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Increased Purchasing Power & Cash to Close
$60,000 Income, 20% added to PITI for Taxes & Insurance, 33/38
Scenario A
Market Interest Rate
Max Loan
Scenario B
6.250%
$196,200
No HAF
$0
Same Maximum
Loan
CASA Interest Rate
Higher Loan Amount
$206,700
$3,000
HAF Entry Cost Asst
HAF Mo Payment Asst ($75) $217,400
40 Year Term
$233,300
$196,200
Increased Maximum Loan
CASA = An increase of $37,100 in buying
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5.625%
power and $3,000 cash to close!
$233,300
Home Improvement Programs
• Improve livability, accessibility or energy
efficiency of a home
• Accessibility features
» Room additions
» Accessible bathrooms
» Ramps
» Hardwood flooring
» Hallway widening
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Home Improvement Programs
» Fix-Up Fund
▪
Flagship program
» Community Fix-Up Fund
▪
▪
Community targeting
Subprime features
» Rehab Loan Fund
▪
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Targeted to very low-income borrowers
Fix-Up Fund
• Max loan $35,000
• Higher loan amount possible if serving a household member
with a disability
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Fixed payments
Max repayment 20 yrs
No down payment
Low closing costs
110% LTV
Unsecured loans if < $10,000
Community Fix-Up Fund
Special home improvement programs for
targeted community initiatives!
 Same terms and conditions as the fix-up-fund
 Subprime component available
 To access this program:
www.mhfa.state.mn.us/homes/CFUF_Matrix.pdf
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Fix-Up Fund and Community Fix-Up Fund
Requirements
• Household incomes: $90,000
• Income waiver possible if serving a family member
with a disability
• Decent credit
• Owner-occupied homes (No cabins!)
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Rehab Loan Program
• Features:
» Max loan amount is $15,000
» Additional $5,000 can be accessed in hh contains a family member with a
disability
» Single-family homes = 30 yr. term with 0% interest rate loan payment
deferred until borrower sells, transfers title or no longer occupies the
property
• Requirements:
» Income limits apply (4 person hh is $23,550)
» Owner-occupancy required
» Assets not greater than $25,000
• Access by contacting an administrator:
www.mhfa.state.mn.us/homes/Rehab_Administrator_by_County.pdf
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Resources
• Homebuyer Education
» Minnesota Home Ownership Center, www.hocmn.org
• First-Time Homebuyer Programs
» www.mhfa.state.mn.us/homes/homes_mortgage.htm
• Downpayment and Closing Cost Assistance
» www.mhfa.state.mn.us/homes/homes_payment.htm
• Home Improvement Programs
» www.mhfa.state.mn.us/homes/homes_improvement.htm
• Foreclosure Prevention Assistance
» www.mhfa.state.mn.us/homes/homes_foreclosure.htm
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For More Information Contact
Devon Pohlman
(651) 296-8255
[email protected]
400 Sibley Street, Suite 300
St. Paul, MN 55101
651-296-7608 * 800-657-3769 * TTY 651-297-2361
www.mhfa.state.mn.us
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