Single Family
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Report
Transcript Single Family
U. S. Department of Housing and
Urban Development
September 13, 2005
What Does HUD Do?
In the State of Indiana
HUD insured more than 26,000 Single Family
mortgages last year
HUD also insures mortgages on more than 600 MultiFamily properties, representing more than 58,000 total
units
(More than 41,000 of those units have Section 8
subsidy)
Subsidizes 66 Public Housing Authorities plus the State
of Indiana - 54,000 units of PIH and Section 8
Provides CDBG funds to 24 Entitlement Communities
and the State of Indiana, totaling over to $78 million for
FY 2005
Total HUD grants to Indiana last year - $545 million
Affordable Housing Needs
According to the State’s most recent
Consolidated Plan:
Shortage of 152,000 housing units for
extremely low income people
earning
less than 30% of median
household income
More than 187,000 households are
paying more than 30% of their income for
housing costs
2001 GAO report – Only one-third of
Eligible very low-income renter
households receive housing assistance
Eligiible Very L0w-Income Renter Households
3.9 million unassisted
households
Pay 31% 50% of
income for
rent
4.3 million assisted
households
Pay 30% of
income for
rent
Pay over 50%
of income for
rent
4.9 million unassisted
households
HUD Affordable Housing Programs
CDBG
HOME
Section 8 Homeownership
Single Family Programs
203(b)
mortgage insurance program
Good Neighbor Program
Teacher Next Door
Officer Next Door
Community Development Block Grant
State of Indiana - $78,271,273
Indiana Office of Rural Affairs ($34,933,351)
Reallocates $5,000,000 to IHFA
Assisting homebuyers directly through
downpayment assistance or a revolving loan fund
for first-time buyers.
Reconstructing or rehabilitating housing
Acquiring property
HOME Funds
State of Indiana - $30,192,799
IHCDA receives $16,320,149
Allowable activities
build, buy or rehabilitate affordable housing
rental or homeownership
rental assistance to low-income people
grants, direct loans, loan guarantees or
other forms of credit enhancement
Section 8 Homeownership
Homeownership Rule - published
September 11, 2000
Effective October 12, 2000
PHA option
Offer
whether to limit number
Section 8 Homeownership
Limitations
– Can be used for up to 15 years for mortgages
20 yrs or more, 10 years for shorter
term(elderly & disabled exempt)
– Must have income = 2,000 hrs @ minimum
wage ($5.50 x 2,000). Welfare assistance to
elderly or disabled must be counted toward
income requirement
– One or more adult family members must be
employed at least 30 hrs per week
Section 8 Homeownership
Programs
Active programs
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Bloomington
Columbus
Fort Wayne
Goshen
Indianapolis
Lafayette
Michigan City
State of Indiana FSSA
Example of Sec 8 Voucher
Fair Market Rent = $500 SSI = $521
If apartment rents for $510
Section 8 pays
$344
Tenant pays
$166 (33%)
Sec 8 pays difference between FMR of $500
and 30% of tenant income ($156)
Single Family Housing Programs
Single Family Mortgage Insurance
203(b) FHA Mortgage Insurance
More flexible underwriting terms than a
conventional mortgage
Low downpayment requirements
Protects lenders against default risk
Many closing costs can be financed
Discounted Sales of REO
Properties
Sales to Non-profits
10% to 30% discount
Officer/Teacher Next Door
50% discount
Must be in revitalization area
Good Neighbor Program
Sale to city for $1
Revitalization Areas
Revitalization areas are HUD-designated
neighborhoods in need of economic and
community development and where there
is already a strong commitment by the
local governments.
Census Tracts or blocks in Zip Codes
East Chicago, Elkhart, Fort Wayne, Gary,
Indianapolis, New Albany, Terre Haute
FHA Rehab Loans
203 (k) Rehab Loan
Purchase/Refinance and Rehab Loan
Must have at least $5,000 in rehab work
Title 1 Rehab Loan
Insures loans to finance the light or
moderate rehabilitation of properties.
Limit of $25,000 in loan amount. Can be
used for accessibility rehab
MultiFamily Housing Programs
Production Programs
Elderly Housing (Section 202)
Supportive Housing for Persons with
Disabilities (Section 811)
Grants to nonprofit sponsors to build or
rehabilitate rental housing for low-income
elderly/disabled with support services
Rental assistance to residents covering the
difference between monthly operating cost and
30 percent of residents adjusted income
Housing Assistance
Review Team
The Indiana Housing Assistance Review
Team (IHART) is a group of
representatives from various state and
federal agencies that provides
assistance and guidance in exploring
financial options for community housing
developments.
IHART Process
Submit In-Take Document with
attachments to IRDC
Project will be discussed at IHART
meeting
Letter of funding options available sent to
community
Follow-up with community
Benefits of IHART
Provides “one-stop shopping” for
communities
Early identification of potential
funding sources
Identifies partnering opportunities
Early notice to funding agencies of
communities’ options
Tips for
IHART Success
Present project ideas early in planning
stages
Provide as much information as possible
Follow-up on suggestions from team
Contact agency representatives for
additional assistance
How to Access HUD Programs
Through Your City or the State of Indiana
CDBG, HOME
HUD SuperNOFA Application
Available on our web site: www.hud.gov
HUD Approved FHA Lender
203(b)
203(k)
REO Sales
Available on web site: www.hud.org