lihtc conference september 5, 2013 shea hollifield department of housing and community development
DESCRIPTION
Virginia Housing Trust Fund – competitive loans HOME Investment Partnership funds – HUD funds for nonentitlement areasTRANSCRIPT
Mind the Gap: Where to Find Gap Funding
LIHTC ConferenceSeptember 5, 2013
Shea HollifieldDepartment of Housing and Community Development
Only ask for what is needed to fill the REAL gap
Do not low ball your request - $343,129 Do not inflate costs with unnecessary extras Do not replace other funding sources Participate in the risk – developer’s fee etc. Match project objectives to funder’s
objectives
Know Your Gap
Virginia Housing Trust Fund – competitive loans
HOME Investment Partnership funds – HUD funds for nonentitlement areas
DHCD Gap Funding Resources
It takes a village to pass a Trust Fund
$7 million in 2012 General Assembly$1 million in 2013 General Assembly$8 million Virginia Housing Trust Fund
At least 80% to loansUp to 20% for grants
Virginia Housing Trust Fund
Competitive loans $5,400,000Foreclosure rehab $1,000,000Homeless reduction grants $930,000Foreclosure counseling $500,000Admin $170,000
Housing Trust Fund Categories
Loans for affordable rental housing and homeownership
Alignment with state housing policies, leveraging, long-term affordability, sustainability
Rate and terms determined through underwriting process
HTF Competitive Loans
26 foreclosure counseling grants made in conjunction with VHDA’s housing counseling grant process
5 foreclosure rehabilitation grant applications approved – Trust Stabilization Program (TSP)
29 competitive loan applications pending 58 homeless reduction applications pending
announcement
Housing Trust Fund Status
Funds allocated only for FY 2014
Future allocations dependent upon funding from the General Assembly
Housing Trust Fund Status
Federal funds from HUD for a range of affordable housing uses
Virginia’s state HOME program:-Affordable and Special Needs Housing-Down payment assistance-Indoor plumbing and rehabilitation – homeowner rehabilitation
HOME Investment Partnership
2009
$14,201,692
2010 $14,170,610
2011
$12,404,080
2012
$7,258,158
2013
$6,796,346
$0 $2,000,000 $4,000,000 $6,000,000 $8,000,000
$10,000,000 $12,000,000 $14,000,000 $16,000,000
Chart Title
HOME funding – Virginia Program
Competitive quarterly application process Typically used as gap financing Structured as interest-only loans at 3% for
15 to 20 years. Principal due at end of affordability period. Can enter into an extended compliance period for principal forgiveness at end of term
HOME – Affordable and Special Needs Housing
Funds decreasing Increasingly competitive application process Priority given to:
-Projects in nonentitlement areas-Community Housing Development
Organization(CHDO) projects-Exceeding 504 requirement-Green building approaches
HOME – Affordable and Special Needs Housing
