administration on aging office of american indian, alaska native and native hawaiian programs...

Administration on AgingOffice of American Indian, Alaska Native and Native Hawaiian Programs

Training and Technical Assistance Forum / Listening Session

USDA Rural DevelopmentUSDA Rural DevelopmentHousing Resources for Elderly Native Housing Resources for Elderly Native

AmericansAmericans

Tedd Buelow, Sue Harris-Green & Carolyn BellTedd Buelow, Sue Harris-Green & Carolyn Bell

May 2May 2ndnd - Baltimore, Maryland - Baltimore, Maryland



Session SummarySession Summary

• Quick Overview of USDA Rural DevelopmentQuick Overview of USDA Rural Development• Community Facilities ProgramCommunity Facilities Program• Multi-Family Housing Programs (515)Multi-Family Housing Programs (515)• Rural Housing Repair and Rehabilitation Rural Housing Repair and Rehabilitation

Loans & Grants (504)Loans & Grants (504)• Introduction of USDA’s 1994 Tribal College Introduction of USDA’s 1994 Tribal College

Program Director Program Director • Questions and AnswersQuestions and Answers



USDA Rural DevelopmentUSDA Rural Development3 Program Areas3 Program Areas

– Rural Business/CooperativeRural Business/Cooperative

– Rural Utilities Rural Utilities

– Rural Housing &Rural Housing &

Community Facilities Community Facilities

L o ca l F ie ld O ffices A p p ro ved P riva te L e n d e rs P u b lic B o d ie s,In d ia n T rib es

N o n -P ro fit A sso c ia tio nsC o o p e ra tives

S ta te O ffices

N a tio n a l O fficeW a sh ing to n DC

G e n e ra l F ie ld Re p re se n ta tives(P re v io u s R E A pro g ra m s /d e live ry)

National and State Office StructureNational and State Office Structure– State DirectorsState Directors

– Program DirectorsProgram Directors

– Native American CoordinatorsNative American Coordinators

Area / Local Offices

(Over 700)

Native American Coordinators (43)



Historic Funding Benefiting Historic Funding Benefiting AI/AN CustomersAI/AN Customers

$0

$50

$100

$150

$200

$250

$300

95 96 97 98 99 00 01 02 O3 O4 O5 O6

Business

Housing

Utilities

Mil

lion

s o

f D

olla

rs

Fiscal Years



FY 06 Housing Funds to AI/ANFY 06 Housing Funds to AI/ANRural Housing and Community Facilities Programs

Tribal College Community Facilities Initiative $4,689,161

Community Facilities Program $19,087,670

502 Single Family Housing Direct Loans $19,495,545

502 Single Family Housing Guaranteed Loans $22,754,503

515 Multi Family Housing Direct Loans $1,896,150

538 Multi Family Housing Guaranteed Loans $0

Housing Preservation Grant $636,803

Mutual Self - Help Housing TA Grants $846,124

Technical Assistance Grants $100,000

504 Home Repair Loans & Grants $1,866,358

TOTAL $71,372,314



Community Facilities ProgramCommunity Facilities Program• Guaranteed loans, direct loans and limited grants for Guaranteed loans, direct loans and limited grants for

essential Community Facilitiesessential Community Facilities• Definition of rural for this program = 20,000 or lessDefinition of rural for this program = 20,000 or less• Guaranteed Loan ProgramGuaranteed Loan Program

– Interest rate is the lender’s customary interest rate for similar projects– Interest rates for guaranteed loans may be fixed or variable and are determined by the

lender and borrower, subject to HCFP review and approval

• Direct loan program fixed interest ratesDirect loan program fixed interest rates– Poverty is set at 4.5%– Intermediate rate is set halfway between the market and the poverty rates– Market rate is indexed to the eleventh bond buyers rate as determined by the U. S.

Treasury Department– Eligibility for these different interest rates is determined by the median household income

(MHI) of the area being served and the type of project. The intermediate and market interest rates are adjusted quarterly.

• Loan repayment terms may not exceed the applicant’s Loan repayment terms may not exceed the applicant’s authority (under State law or organizational structure), authority (under State law or organizational structure), the useful life of the facility, or a maximum 40 years.the useful life of the facility, or a maximum 40 years.



Types of facilities:Types of facilities:

• Nursing HomesNursing Homes• Assisted Living FacilitiesAssisted Living Facilities• Clinics Clinics • Boarding Homes for the Elderly Boarding Homes for the Elderly • Hospitals (General & Surgical) Hospitals (General & Surgical) • Medical Rehabilitation Center sMedical Rehabilitation Center s• Psychiatric HospitalsPsychiatric Hospitals• Outpatient ClinicsOutpatient Clinics• Adult Dare Care Center sAdult Dare Care Center s• Tribal Administration BuildingsTribal Administration Buildings• Many othersMany others

Community Facilities ProgramCommunity Facilities ProgramLimited Grant Funds Limited Grant Funds • 3 Priority Areas3 Priority Areas

– Serve Small CommunitiesServe Small Communities(5,000 or less get highest priority)(5,000 or less get highest priority)

– Low-income CommunitiesLow-income Communities– Provide healthcare, public safety, or Provide healthcare, public safety, or

public & community servicespublic & community services• Grant assistance may be available Grant assistance may be available

for up to 75% of project costsfor up to 75% of project costs• Grant limitations are based on Grant limitations are based on

population and income, economic population and income, economic feasibility, and availability of fundsfeasibility, and availability of funds

• Combination of fundsCombination of funds

www.rurdev.usda.gov/rhs/cf/cp.htm



Welcome to Multi-Family HousingWelcome to Multi-Family HousingProcessing DivisionProcessing Division

• Direct Loans (515) Direct Loans (515) • Guaranteed Loans (538) Guaranteed Loans (538) • Farm Labor (514/516) Farm Labor (514/516) • Preservation Grant (533)Preservation Grant (533)• Preservation Revolving Preservation Revolving

Loan FundLoan Fund



Multi-Family Housing Processing Multi-Family Housing Processing DivisionDivision

Sue Harris-GreenSue Harris-GreenDeputy DirectorDeputy DirectorDirect Loans/GrantsDirect Loans/Grants



Multi-Family Housing Processing Multi-Family Housing Processing DivisionDivision

Division Objectives:Division Objectives:

• Provide Prompt Accurate Guidance & Provide Prompt Accurate Guidance & Assistance to State & Field OfficesAssistance to State & Field Offices

• Assure Consistent Application of RegsAssure Consistent Application of Regs• Open Communication with Field StaffOpen Communication with Field Staff

If you have a question, please give us a call.If you have a question, please give us a call.

(202) 720-1660(202) 720-1660



• Loans made to build, acquire and Loans made to build, acquire and renovate multi-family properties.renovate multi-family properties.

• Loans receive interest credit, which Loans receive interest credit, which lowers the effective interest paid.lowers the effective interest paid.

• Borrowers must lease units to Borrowers must lease units to income eligible tenants, at rents income eligible tenants, at rents approved by the agency.approved by the agency.

Direct Loans (515)Direct Loans (515)



Direct Loans (con’t)Direct Loans (con’t)

• Units must be rented to very low (30% of Units must be rented to very low (30% of AMI), low (50% of AMI) and moderate AMI), low (50% of AMI) and moderate (80% of AMI) income tenants.(80% of AMI) income tenants.




• Types of eligible projects:Types of eligible projects:

– Family ProjectsFamily Projects– Elderly ProjectsElderly Projects– Congregate ProjectsCongregate Projects– Group homesGroup homes– Rural Cooperative HousingRural Cooperative Housing



• Eligible uses of funds:Eligible uses of funds:

– Construct / Rehabilitate MFHConstruct / Rehabilitate MFH– Purchase equipmentPurchase equipment– Legal and technical assistanceLegal and technical assistance– Interest and other financing costsInterest and other financing costs




• NOFA Process (New Construction)NOFA Process (New Construction)

– Publish Notice of Funding AvailabilityPublish Notice of Funding Availability– Applications received by statesApplications received by states– States score the applicationsStates score the applications– National Office receive the scoresNational Office receive the scores– N/O selects highest scored applicationsN/O selects highest scored applications




• Rehab / Repair LoansRehab / Repair Loans

– First Come / First ServedFirst Come / First Served– State reviews borrower requestsState reviews borrower requests– State submits the requests to N/OState submits the requests to N/O– N/O reviews requestsN/O reviews requests– N/O approves / denies requestsN/O approves / denies requests




Guaranteed Loans (538)Guaranteed Loans (538)

• Loan Guarantee for 90% of principal and Loan Guarantee for 90% of principal and interest outstanding (for profit entity).interest outstanding (for profit entity).

• Loan Guarantee for 97% of principal and Loan Guarantee for 97% of principal and interest outstanding (non-profit entity).interest outstanding (non-profit entity).

• Construction and/or permanent loan Construction and/or permanent loan guarantee available.guarantee available.



Guaranteed Loans (con’t)Guaranteed Loans (con’t)

• Property in program for 25 year Property in program for 25 year

minimum, 40 year maximum. minimum, 40 year maximum.

• Loan term 25 year minimum with Loan term 25 year minimum with

40 year amortization.40 year amortization.




Qualified BorrowersQualified Borrowers• Non-profit corps.Non-profit corps.

or partnershipsor partnerships• Public entitiesPublic entities• Indian TribesIndian Tribes• For-profit comps.For-profit comps.• IndividualsIndividuals• TrustsTrusts

Qualified PropertiesQualified Properties• Multi-family Projects Multi-family Projects • Minimum of 5 unitsMinimum of 5 units• New constructionNew construction• Rehab. of at least Rehab. of at least

$6,500 per unit for $6,500 per unit for purposes of acquisition purposes of acquisition or to create new unitsor to create new units




Qualified Lenders:Qualified Lenders:• State or local HFA or member of the Federal State or local HFA or member of the Federal

Home Loan Bank Home Loan Bank • HUD, Ginnie Mae, Fannie Mae, or Freddie Mac HUD, Ginnie Mae, Fannie Mae, or Freddie Mac

approved lenders for multi-family housing loansapproved lenders for multi-family housing loans• Any lender that can demonstrate the ability to Any lender that can demonstrate the ability to

originate, underwrite, and manage MFH loans originate, underwrite, and manage MFH loans and meet the criteria found in 3565.102 and and meet the criteria found in 3565.102 and 3565.1033565.103




Eligible UsesEligible Uses

Found in 3565.205Found in 3565.205

• All hard and soft All hard and soft costs related to costs related to dwellings and related dwellings and related facilitiesfacilities

• Developer’s feesDeveloper’s fees• Tech. assistanceTech. assistance

Ineligible UsesIneligible Uses

Found in 3565.206Found in 3565.206

• Student or military Student or military housinghousing

• Nursing homes and Nursing homes and special care facilitiesspecial care facilities

• Refinancing of Refinancing of existing debtexisting debt



7 CFR 35607 CFR 3560

Separate Subparts:Separate Subparts:

Off-Farm Labor Housing - 7 CFR 3560, subpart LOff-Farm Labor Housing - 7 CFR 3560, subpart L

On-Farm Labor Housing - 7 CFR 3560, subpart MOn-Farm Labor Housing - 7 CFR 3560, subpart M

Farm Labor (514/516)Farm Labor (514/516)



Definition of a “Domestic Farm Laborer”Definition of a “Domestic Farm Laborer”(7 CFR 3560.11)(7 CFR 3560.11)

A person who…..A person who…..

………….receives a substantial portion of their income .receives a substantial portion of their income from farm labor…..from farm labor…..

Income requirements for farm laborers are contained Income requirements for farm laborers are contained in: 7 CFR 3560.576(b)(2) and Attachment 6-H of the in: 7 CFR 3560.576(b)(2) and Attachment 6-H of the Asset Management Handbook.Asset Management Handbook.




Definition of a “Domestic Farm Laborer”Definition of a “Domestic Farm Laborer”- Continued 7 CFR 3560.11)- Continued 7 CFR 3560.11)

……..and either is a citizen of the United States or ..and either is a citizen of the United States or resides in the United States after being legally resides in the United States after being legally admitted for permanent residence.admitted for permanent residence.

Farmworkers who are admitted under temporary Farmworkers who are admitted under temporary visas, such as H2A workers, are not eligible to live in visas, such as H2A workers, are not eligible to live in Farm Labor Housing (they are not admitted for Farm Labor Housing (they are not admitted for permanent residence).permanent residence).




On-Farm LH FundingOn-Farm LH Funding

• On-Farm LH loans will be made On-Farm LH loans will be made available on a first-come-first-available on a first-come-first-served basis (outside of the served basis (outside of the NOFA process).NOFA process).




Off-Farm Labor HousingOff-Farm Labor HousingNotice of Funding Availability (NOFA)Notice of Funding Availability (NOFA)

• FY07 Off-Farm NOFA published on FY07 Off-Farm NOFA published on April 19. Preapplications received by April 19. Preapplications received by the S/O by June 18.the S/O by June 18.

• The preapplication requirements areThe preapplication requirements arecontained in the NOFA. Pre-contained in the NOFA. Pre-applications should be reviewed for applications should be reviewed for completeness against the requirements completeness against the requirements in the NOFA.in the NOFA.




Notice of Funding Availability (NOFA)Notice of Funding Availability (NOFA)

• Grants to nonprofits, public agencies Grants to nonprofits, public agencies and other eligible entities to provide and other eligible entities to provide funds to repair low-income funds to repair low-income homeowner’s dwellings.homeowner’s dwellings.

• The preapplication requirements areThe preapplication requirements arecontained in the annual NOFA.contained in the annual NOFA.

Housing Preservation Grant (533)Housing Preservation Grant (533)



Homeowner’s Repairs & Rental Property Homeowner’s Repairs & Rental Property RepairsRepairs

• Recipients of these grants assist very-low and low Recipients of these grants assist very-low and low income homeowners in making repairs to their income homeowners in making repairs to their homes. homes.

• Grant funds can be used to assist rental property Grant funds can be used to assist rental property owners and co-ops in making repairs, if units owners and co-ops in making repairs, if units available to very-low and low income tenants. available to very-low and low income tenants.

Housing Preservation Grant (533)Housing Preservation Grant (533)



Re-lending Program with IntermediariesRe-lending Program with Intermediaries

• Eligible Recipients are non-profits and HFAs.Eligible Recipients are non-profits and HFAs.

• Announced through NOFA.Announced through NOFA.

• Recipients re-lend funds to renovate existing 515 Recipients re-lend funds to renovate existing 515 properties.properties.

• Demonstration Program in FY 07.Demonstration Program in FY 07.

Preservation Revolving Loan FundPreservation Revolving Loan Fund



Processing Division Contact ListProcessing Division Contact ListDirect Loans 515 Direct Loans 515 • Sue Harris Dep. Director (202) 720-1660Sue Harris Dep. Director (202) 720-1660

e-mail e-mail [email protected] • Barbara Chism (202) 690-1436Barbara Chism (202) 690-1436

e-mail e-mail [email protected]

Farm Labor 514 / 516Farm Labor 514 / 516• Sue Harris Dep. Director (202) 720-1660Sue Harris Dep. Director (202) 720-1660

E-mail E-mail [email protected] • Henry Searcy (202) 720-1753Henry Searcy (202) 720-1753

E-mail E-mail [email protected]



Processing Division Contact ListProcessing Division Contact ListHousing Preservation Grants 533 Housing Preservation Grants 533 • Sue Harris Dep. Director (202) 720-1660Sue Harris Dep. Director (202) 720-1660

e-mail e-mail [email protected] • Bonnie Edwards-Jackson (202) 690-0759Bonnie Edwards-Jackson (202) 690-0759


Preservation Revolving Loan Fund Preservation Revolving Loan Fund • Sue Harris Dep. Director (202) 720-1660Sue Harris Dep. Director (202) 720-1660

E-mail E-mail [email protected] • Henry Searcy (202) 720-1753Henry Searcy (202) 720-1753

E-mail E-mail [email protected]



Processing Division Contact ListProcessing Division Contact ListGuaranteed Loans (538) Guaranteed Loans (538) • Joyce Allen Deputy Director (202) 690-4499Joyce Allen Deputy Director (202) 690-4499

e-mail e-mail [email protected] • Arlene Nunes (202) 401-2307Arlene Nunes (202) 401-2307

e-mail e-mail [email protected] • C.B. Alonso (202) 720-1624C.B. Alonso (202) 720-1624




Reference InformationReference Information

http://www.rurdev.usda.gov/regsHandbooks & RegulationsHandbooks & Regulations

• 7 CFR part 35607 CFR part 3560• HB-1-3560 – Rural Rental Housing Loan OriginationHB-1-3560 – Rural Rental Housing Loan Origination

• 7 CFR part 3565 7 CFR part 3565 • HB-1-3565 - Guaranteed Rural Rental Housing HB-1-3565 - Guaranteed Rural Rental Housing

Program Origination & ServicingProgram Origination & Servicing



SFH 504 ProgramSFH 504 Program

Purpose:

• The Very Low-Income Housing Repair program provides loans and grants to very low-income homeowners to repair, improve, or modernize their dwellings or to remove health and safety hazards.




Eligibility: • Homeowner-occupants must be unable to

obtain affordable credit elsewhere and must have very low incomes, (below 50 percent of the area median income).

• Repairs and improvements must make the dwelling more safe and sanitary or remove health and safety hazards.




Eligibility:

• Grants are only available to homeowners who are 62 years old or older and cannot repay a Section 504 loan.



SFH 504 ProgramSFH 504 ProgramTerms:

• Loans of up to $20,000 and grants of up to $7,500 are available.

• Loans are for up to 20 years at 1 percent interest.

• No security requirement for loans under $7,500.




Terms:

• Grants must be repaid if the property is sold within 3 years.

• Repairs financed with grant funds must result in the removal of health and safety hazards.




Terms:

• A grant/loan combination is made if the applicant can repay part of the cost.

• Loans and grants can be combined for up to $27,500 in Section 504 assistance




Standards: • Repaired properties need not meet RHS

code requirements, but water and waste systems and related fixtures must meet local health department requirements.

• Water supply and sewage disposal systems should meet RHS requirements.




Standards:

• Major health and safety hazards must be corrected.

• All work performed must meet local codes and standards.



USDA’s 1994 ProgramsUSDA’s 1994 Programs(Tribal Colleges and Universities)(Tribal Colleges and Universities)

Introducing Yolanda GarciaIntroducing Yolanda Garcia



Questions and AnswersQuestions and Answers



Contact informationContact informationTedd Buelow

Acting Native American Coordinator

USDA Rural Development

(202) 690-1681

[email protected]

www.rurdev.usda.gov/rd/aian

Sue Harris-Green

Deputy Director

MFH Direct Loans/Grants

(202) 720-1660

[email protected]

Carolyn Bell

Chief, Special Programs Branch

Single Family Housing Direct Loan Division

(202)720-1532

[email protected]

administration on aging office of american indian, alaska native and native hawaiian programs...

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