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Workforce Housing Options

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About the Corporation• Created by the Legislature in 1994 as a self-sustaining

501(c)3 nonprofit corporation • Our mission is to provide safe, decent and affordable housing

for low income Texans• Quasi-Governmental

Board appointed by the Governor Receives no State appropriated funding Employees are not State employees

Provide both single and multifamily housing programs, as well as, asset oversight and compliance services across Texas

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Workforce Options Offered

• Home Loan Programs

– Professional Educators Program

– Homes for Texas Heroes Program

– Home Sweet Texas Loan Program

• HomeWorks

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Home Loan Programs

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• Home Loan Programs created by the Texas Legislature (approximately $60M annually in mortgage revenue bonds)

• Acknowledges professionals’ commitment to the safety and welfare of all Texans

• 2800 new homeowners since 2002

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Home Loan Programs Offer… Low interest rate mortgage loan – currently 5.00% Grant of 3% for downpayment and closing costs

-OR-

Mortgage Credit Certificate: Tax credit of up to $2,000 annually  Tax credit can be taken as long as the home is the

borrower’s principle residence

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How does a individual qualify?1. Be of a specific group:

Professional Educators: • Classroom Teacher, Teacher Aide, School Librarian,

School Nurse, School Counselor, or Nursing and Allied Health Faculty.

Homes for Texas Heroes: • Firefighter, EMS Personnel, Peace Officer, Corrections

Officer (TDCJ or TYC), County Jailer, or Public Security Officer.

Home Sweet Texas Loan: An individual or family at or below 80% AMFI

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2. First-time Homebuyer• not owned a home in the past, or • have not had ownership interest in any principal residence in

the past 3 years, or• purchasing a home in a “targeted”/GO Zone area

3. Cannot exceed Income Limits• Based on County of residence and household size

4. Cannot exceed Purchase Price Limits

How does a borrower qualify?

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How does a borrower qualify? 5. Underwriting/Credit Requirements

• Must meet standard mortgage underwriting requirements as determined by the lender

• A minimum credit score of 600• FHA, VA, or USDA loans are eligible

6. Complete a HUD approved homebuyer education course prior to closing on the home loan. 

7. Contact an approved lender by visiting www.tsahc.org

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HomeWorks – an Employer Assisted Housing

Program

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In general, employer assisted housing…

• Provides affordable housing option to employees• Aids employers in recruitment and retention • Increases morale and productivity• Improves employer’s bottom line• Enhances employee’s work-life balance• Creates stronger communities

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• TSAHC created HomeWorks in April 2008 after realizing an unmet need in Texas

• We modeled our program after other cities and states

• Major goal was to partner with Texas employers to provide a recruitment/retention tool while providing an affordable housing option to employees

• After two years of marketing to employers, we were unable to find a partner employer

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How It Would Work:

• TSAHC and employer would each match dollar for dollar of an employee’s contribution toward downpayment and closing costs (up to $2,000 each, totaling $4,000 for DPA)

• Assistance would be provided to the employee in the form of a three year deferred forgivable second lien loan (1/3rd forgiven each year)

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How It Would Work:

• If the employee leaves or is terminated before three years, the remaining balance of the assistance would be repaid

• Employer could contribute a total set amount to the program and offer it to employees on a first-come, first-served basis

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How It Would Work:

• Employee would need to be employed by participating employer for at least 6 months, with a minimum commitment of 3 years to the employer prior to full loan forgiveness

• Employee must meet income and purchase price limits, while meeting standard mortgage underwriting requirements

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How It Would Work:

• Principal mortgage must be a fixed interest loan• Employee must complete a homebuyer education

course prior to receiving the assistance• Employee must occupy the purchased home as

his/her primary residence

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Sounds great… right?• As stated previously, we could not find a partner employer• Possible pitfalls:

• Approached large, multi-state employers primarily in medical and manufacturing industries

• Employers would not be able to provide incentive to those outside of Texas

• Economic environment • Employers faced with cutbacks

• Employer’s preferences could not be met • Home prices near employer were too high for targeted

employees• TSAHC limited by income range of serving those at or

below 80% AMFI

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Continuing the Effort…• In 2009, legislation was filed to create similar

program targeting a low-performing school district in San Antonio. The bill did not pass

• We appreciate the opportunity to share our experience

• Please feel free to contact us to continue the discussion

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Foreclosure Prevention Efforts• Founding member and fundraising arm of Texas Foreclosure

Prevention Task Force• Provide technical assistance and financial support to 16 HUD

approved housing counseling agencies• Texas Foreclosure Intervention Resource Guide• Loan Scam Alert Initiative

– Community Summits– PBS Special– Loan Scam Alert Materials

• Administer National Foreclosure Mitigation Counseling Program in partnership with the Texas Department of Housing and Community Affairs

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Thank you!

For additional information, please visit:

www.tsahc.org

Or call us toll free at (888) 638-3555