hud 184 -tdhes making it work for you today as borrower
TRANSCRIPT
HUD 184 -TDHES
Making it work for you today as borrower
100% owned by the Chickasaw Nation
Mowa
Choctaw
Housing
Authority
Nancy Bainbridge Senior Vice President
Tribal & Construction Lending
Bank2
,
BEFORE
after
BEFORE
after
WHAT IS THE HUD 184 MORTGAGE PROGRAM?
HOW DOES IT WORK?
HUD 184 LOAN PROGRAMWHO CAN BORROW
• Section 184 loans are guaranteed 100% by the Office of Loan Guarantee within HUD’s office of Native American Programs” (ONAP).
•
• Borrower can
• ENROLLED tribal member of a federally recognized tribe
• Alaskan Native villages and corporations
➢Tribes❖Tribal housing departments within the tribe
➢Tribal Housing Authorities➢TDHEs-
Tribes, HAs and TDHEs must be on the HUD participating tribal list.
• The homes and property can be in any area participating tribes have determined to be eligible. There are 39 states of which 26 are 100% eligible (see HUD map
• *HUD 184 web
HUD 184 LOAN PROGRAM• Section 184 loans are guaranteed 100% by the Office of Loan Guarantee within HUD’s office of Native American Programs” (ONAP).
•
• Borrower can
• Construct• Rehab existing• Purchase• Purchase and Rehab• Construct a modular home• Purchase (have constructed) a new Manufactured home• Refinance existing home
A home can be a single family residence up to a 4-plex
• The homes and property can be in any area participating tribes have determined to be eligible. There are 39 states of which 26 are 100% eligible (see HUD map
• *HUD 184 web
HOW TRIBES & TDHESCAN USE THE PROGRAM TO
LEVERAGE THEIR RESOURCES
• Section 184 loans are guaranteed 100% by the Office of Loan Guarantee within HUD’s office of Native American Programs” (ONAP).
• Leverage your …….• Funds• Land• Tribal & Local Construction crews• Tribal & Local businesses & suppliers• Tribal & local craftsman
• Training and apprenticeships
• The homes and property can be in any area participating tribes have determined to be eligible. There are 39 states of which 26 are 100% eligible (see HUD map
• *HUD 184 web
BUILDING BETTER LIVES
$2,250 (plus closing costs) $97,750
Tribal funds
Bank funds
2.25% down payment plus
closing costs
Remaining 97.75% of cost of residence
whether it is Single family, duplex, triplex and/or quadplex
$100,000 House
Erna Reeves, Deputy Director,
Housing Authority of the Cherokee Nation
Build
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HUD 184 Title VI
From this to
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To this
➢ Housing Authority- Construction Department
or
➢ Contractors- Bids depending on location
Construction
Tenants choice of …………
FLOOR PLANS
2 Bedroom
3 Bedroom
4 Bedroom
Cherokee Territory 14 counties
Using their
own land
➢ Long-term lease➢ At the end 30 years- own home➢ Allows for sublease➢ Repairs & maintenance on tenant➢ Tenant can assume the loan If want to earlier than 30
years ( must credit & income qualify)
➢ HA responsible for insurance➢ No real estate taxes while owned by HA
Cherokee ProgramLease/ home ownership
Cherokee ProgramSelf- Sustainable
To be self-sustainable the rent should cover the cost of➢ the mortgage payment➢ Insurance➢ otherNo RE taxes
As the mortgage payment is fixed for 30 years, so is the lease payment.
The program needs to provides the ability to adjust the lease payments over time (before the lease is signed) for rising interests rates and/or higher construction costs to maintain its- self-sustainability.We try to have the rent payment cover its costs as noted
Providing Homes Today
BUILDING BETTER LIVES
Knik TribLori Canady Deputy Director / Housing Director e
Knik Tribal Council
4-plex
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WASILLA, ALASKA
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BUILDING BETTER LIVES
Purchase duplexes
BUILDING BETTER LIVES
MarketMarket Rate Rentals
Purchase
BUILDING BETTER LIVES
Design to standards and then purchase when completed
New project -market rate and low income
Designed duplexes
BUILDING BETTER LIVES
Stretch Tribal funds
by using bank funds NOT tribal funds
8 9 8
46
383 532
66
88
3
1653
62 7 7
597
4 6
2 5
2441
4618
244
156
2686
1439
162
323
19645
18
34 35
46
33
1113 5
LeaLease
Standardized
Acknowledged by
BIA &HUD
50 years ( can be
25yrs auto
renewable)
HUD language
How to Facilitate the process
Your responsibilities as tribal housing
Certified TSRSurvey
Environmental
Current
Signed
Refinance –
lease
recorded
Current
No
construction
/improvement
restrictions
Easements
Current
Required
On all tribal
lands
Side note- Also need to determine internally who is responsible -on the individual loans for getting,
ordering and paying- including ‘above income “ members
If you- the Housing Department , had $100,000
would you build
1 home …………. or
Or 10
BUILDING BETTER LIVES
$2,250 (plus closing costs) $97,750
Tribal funds
Bank funds
2.25% down payment plus
closing costs
Remaining 97.75% of cost of residence
whether it is Single family, duplex, triplex and/or quadplex
Finance Example
Average cost* $110,000Loan amount $107,525Tribally funds $ 2,475
Does not include closing costs
Rent $600Mortgage payment* $567Excess for insurance and other expenses $ 33
* Not exact just an example
Mortgage payment estimated at 4.5% and includes the HUD monthly mortgage insurance
Coronado
Park
Eagle River
Alaska
Manufactured home
Coronado
Park
Eagle River
Alaska
Modular or Pre-fab home
BUILDING BETTER LIVES
REFINANCE
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WHY USE THE HUD 184? TRIBES & TDHES
➢No income restrictions for tenants ➢ As long as no other government low income funds involved
➢Uses Bank2 funds not tribal funds to build
➢Collateral is 1st mortgage
➢Assumable , allowing a tribal member to step into the loan
➢Home can be on or off native lands
➢Permits single family up to a quadplex
➢Various purposes
IT CAN BE…………………
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Single Family
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Lummi Nation Housing Authority
Triplex
QUAD-PLEX
MOWA CHOCTAW Housing Authority
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PURPOSE POSSIBILITIES
• Housing - no income restrictions
➢Rentals
➢Lease to own
➢Build to sell
----------------------------------------▪ All are assumable to enrolled tribal
members of a tribe
▪ Can be any income level
▪ Low income to market rate
▪ Rents established by you
Own the homes for additional purposes
• Employees Housing
• Professionals Housing
• Doctors, Teachers, Medical, etc.
• Retirement
• Elder Housing
• Senior independent living
• Group homes
• Student Housing
• Other
• ( no temporary housing)
BUILDING BETTER LIVES
Li e
Lillie Steiner, Executive Director
MOWA Choctaw Housing Authority
MOWA CHOCTAW ELDERLY HOUSING
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PHASE II
Eagles View
Started in April 2019
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BUILDING BETTER LIVES
1 2
4 3
Need all the pieces of the puzzle= Success!
TDHE- construct,
purchase or rehab
Education
Home buyers
Credit Counseling
Assumable
loan
Or
internal funds
Rent
covers
costsSelf-sustainingTransfer ownership
Assume or
convey
Success!
LeaLease
Standardized
Acknowledged by
BIA &HUD
50 years ( can be
25yrs auto
renewable)
HUD language
How to Facilitate the process
Your responsibilities as tribal housing
Certified TSRSurvey
Environmental
Current
Signed
Refinance –
lease
recorded
Current
No
construction
/improvement
restrictions
Easements
Current
Required
On all tribal
lands
Side note- Also need to determine internally who is responsible -on the individual loans for getting,
ordering and paying- including ‘above income “ members
A 100% tribally owned bank by the
Chickasaw Nation
THANK YOU!
Questions