u. s. department of housing and urban development september 13, 2005
TRANSCRIPT
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U. S. Department of Housing and Urban Development
September 13, 2005
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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 Multi-Family 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
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Affordable Housing NeedsAccording 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 incomeMore than 187,000 households are
paying more than 30% of their income for housing costs
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2001 GAO report – Only one-third of Eligible very low-income renter households receive housing assistance
Eligiible Very L0w-Income Renter Households
4.3 million assisted households
4.9 million unassisted households
3.9 million unassisted households Pay 31% -
50% of income for rent
Pay 30% of income for rent
Pay over 50% of income for rent
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HUD Affordable Housing Programs
CDBGHOMESection 8 HomeownershipSingle Family Programs
203(b) mortgage insurance program Good Neighbor Program Teacher Next Door Officer Next Door
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Community Development Block Grant
State of Indiana - $78,271,273Indiana 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 housingAcquiring property
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HOME Funds
State of Indiana - $30,192,799 IHCDA receives $16,320,149Allowable activities
build, buy or rehabilitate affordable housingrental or homeownershiprental assistance to low-income people grants, direct loans, loan guarantees or
other forms of credit enhancement
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Section 8 HomeownershipHomeownership Rule - published
September 11, 2000Effective October 12, 2000PHA option
Offerwhether to limit number
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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
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Section 8 Homeownership Programs
Active programs– Bloomington– Columbus– Fort Wayne – Goshen– Indianapolis– Lafayette– Michigan City– State of Indiana FSSA
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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)
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Single Family Housing Programs
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Single Family Mortgage Insurance
203(b) FHA Mortgage InsuranceMore flexible underwriting terms than a
conventional mortgageLow downpayment requirementsProtects lenders against default riskMany closing costs can be financed
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Discounted Sales of REO Properties
Sales to Non-profits10% to 30% discount
Officer/Teacher Next Door50% discountMust be in revitalization area
Good Neighbor ProgramSale to city for $1
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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
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FHA Rehab Loans
203 (k) Rehab LoanPurchase/Refinance and Rehab LoanMust 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
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MultiFamily Housing Programs
Production ProgramsElderly 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
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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.
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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
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Benefits of IHART
Provides “one-stop shopping” for communities
Early identification of potential funding sources
Identifies partnering opportunitiesEarly notice to funding agencies of
communities’ options
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Tips for IHART Success
Present project ideas early in planning stages
Provide as much information as possibleFollow-up on suggestions from teamContact agency representatives for
additional assistance
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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