Transcript HOME INVESTMENT PARTNERSHIPS PROGRAM

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
Rent
Based Rental Assistance (TBRA)
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
Low
composition
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
unit
on amount of HOME $ per
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 nonrenewed 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
Lease and 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)