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
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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