HOME INVESTMENT PARTNERSHIPS PROGRAM 24 CFR Part 92.
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Transcript of HOME INVESTMENT PARTNERSHIPS PROGRAM 24 CFR Part 92.
What is HOME?
The Home Investment Partnerships (HOME) Program was created as part of the Cranston-Gonzalez National Affordable Housing Act of 1990
HOME funds are block granted to state and local Participating Jurisdictions (PJs) for the purpose of creating affordable housing
Funding
Since 2010, Congress has steadily reduced funding for the HOME program
In 2010, the State of Kansas received approximately $8.7M
In 2015, we anticipate about $4MA funding bill under consideration this
week proposes a 17% cut for 2016
KHRC – Eligible Activities
Rental Housing DevelopmentCommunity Housing Development
OrganizationsHOME can be used with Low Income
Housing Tax Credits (LIHTC), FHLBank, USDA Rural Development, etc.
Acquisition, new construction, rehabilitation
KHRC – Eligible Activities
Tenant Based Rental Assistance (TBRA)Rent and deposit assistance.Administered by PHAs, non-profit
organizationsHOME provides the difference
between gross rent and 30% of tenant income.
KHRC – Eligible Activities
First Time Homebuyer ProgramDown payment assistance for
home purchaseAvailable through participating
lenders80% of AMI; must qualify for loan
HOME Eligible (KHRC does not do)
New construction or rehab of housing for owner occupancy
Homeowner rehabilitation Discontinued after 2011 due to
reduction in HOME funds
Who Are The Beneficiaries?
Low Income householdsDown payment assistance goes to
households up to 80% of AMIRental housing is initially restricted
at 60% of AMI, or lower TBRA is restricted at 60% of AMI,
but preference for lower income targeting
Rental Housing Development
Applications for funding are currently restricted to Community Housing Development Organizations (CHDOs)CHDOs must meet requirements for:
Board compositionLow income representation and inputExperience and capacity
Rental Housing Development
Applications due in February.Up to $500,000Priorities for things like:
Targeting lower income and rentsLeveraging other sources of fundsDesign (accessibility, energy
efficiency, safe rooms, etc.) Location and housing need
Acquisition/rehab project serves people with disabilities, Lawrence. HOME, LIHTC and existing project based rental assistance
Bartell Hotel – Senior Housing – Junction City HOME, Low Income Housing Tax Credits, Historic Tax Credits, USDA loan and rental assistance
Affordability Period
New construction – 20 YearsRehabilitation – 5, 10 or 15 years
Depending on amount of HOME $ per unit
HOME Rental Projects
Since 1992, HOME funds from KHRC have supported the development of about 170 rental projects in Kansas
Transitional Housing
HOME can be used for permanent or transitional housingNot for shelters, dormitories or
student housing
Tenant Protections
In general, participation in services cannot be required
Permanent housing requires a minimum 12 month lease (except by mutual agreement)
Transitional Housing
Lease can be terminated or non-renewed for:Completion of transitional tenancy
periodFailure to participate in supportive
services designed to promote self sufficiency
Program design must be approved
Tenant Based Rental Assistance
KHRC provides approximately $1.2M for TBRA annually (subject to funding)
Applicants can be PHAs, local units of government and non-profit organizations
TBRA
TBRA can provide:Ongoing rental assistanceSecurity deposit assistanceUtility deposit assistance
Only in conjunction with security deposit assistance
Tenant Eligibility
Households at or below 60% of Area Median Income (HOME limits published annually by HUD)
Priority for funding programs targeting lower incomes, homeless households, etc.
Housing - TBRA
Grantee must adopt occupancy standards for household size/ number of bedrooms
Housing must pass HQS inspectionRent is subject to a ‘rent standard’
to ensure rent reasonableness
Rental Assistance - TBRA
TBRA uses the HUD ‘Voucher Model’ to determine assistance amount
Assistance is the difference between the Payment Standard (rent standard) and 30% of household adjusted income
Participants can remain on a Section 8 waiting list, and should move to Section 8 when possible
Lease and TBRA renewal
A 12 month lease is requiredRental assistance can be for up to
24 months, and can be renewed
TBRA – Administrative Expenses
Some project delivery costs (inspections, income certifications) can be charged to the grant
KHRC provides an Admin allowance to supplement
KHRC formula ensures 7% total for the above two items
First Time Home Buyer Program
KHRC provides HOME funds for down payment assistanceUp to 80% of Area Median IncomeSubject to HUD purchase price limitsExisting homes onlyMust pass inspection
FTHB
KHRC will record a second mortgage
15-20% of purchase price Buyer must contribute at least 2% Loan is forgiven over time Home must be primary residence
and remain as such
National Housing Trust Fund
In 2008, Congress created the National Housing Trust Fund as part of the Housing and Economic Recovery Act (HERA)
Funding was to come from a fee charged on new business of Fannie Mae and Freddie Mac
NHTF
The banking crisis of 2008 hit Fannie and Freddie, prevent any contributions
Suspension of contributions was lifted in December 2014
Funding is anticipated to being in 2016
NHTF
Interim Rule was published on January 30, 2015 (24 CFR Part 93)
Congress’ budget deliberations are once again putting the NHTF in jeopardy
NHTF – Eligible Activities
Rental housing developmentLimited homeownership is eligible
Not a likely activity initiallyAcquisitionRehabilitationNew construction
NOT rental assistance
NHTF Targeting
Initially, all housing is restricted to ‘Extremely Low Income’ households - at or below 30% of Area Median Income
If funding exceeds certain thresholds, some may be used for households up to 50% of AMI
HUD will publish rent limits
NHTF – Program Design
NHTF will follow HOME program rules with some exceptions
Mandatory affordability period is 30 years (HOME is up to 20)
May be used with other sourcesHOME, LIHTC, AHP, USDA, SHP…….