Shelby County Down Payment Assistance Program NACCED Presentation September 2011
-
Upload
slade-mcbride -
Category
Documents
-
view
36 -
download
0
description
Transcript of Shelby County Down Payment Assistance Program NACCED Presentation September 2011
![Page 1: Shelby County Down Payment Assistance Program NACCED Presentation September 2011](https://reader030.fdocuments.net/reader030/viewer/2022032606/56812d47550346895d924d87/html5/thumbnails/1.jpg)
Shelby County Down Shelby County Down Payment Assistance Payment Assistance
ProgramProgram
NACCED PresentationNACCED PresentationSeptember 2011September 2011
![Page 2: Shelby County Down Payment Assistance Program NACCED Presentation September 2011](https://reader030.fdocuments.net/reader030/viewer/2022032606/56812d47550346895d924d87/html5/thumbnails/2.jpg)
Shelby County Down Shelby County Down Payment Assistance Payment Assistance
ProgramProgram Created in late 2006 as a revolving Created in late 2006 as a revolving
loan pool through a partnership loan pool through a partnership between Shelby County Government between Shelby County Government and the State of Tennessee.and the State of Tennessee.
Specifically the Department of Housing Specifically the Department of Housing and the Tennessee Housing and the Tennessee Housing Development Agency (THDA)Development Agency (THDA)
![Page 3: Shelby County Down Payment Assistance Program NACCED Presentation September 2011](https://reader030.fdocuments.net/reader030/viewer/2022032606/56812d47550346895d924d87/html5/thumbnails/3.jpg)
Shelby County Down Shelby County Down Payment Assistance Payment Assistance
ProgramProgram The original funding pool came from The original funding pool came from
interest paid on old bonds issued by interest paid on old bonds issued by Shelby County and the State in Shelby County and the State in 1990’s.1990’s.
70% of the pool provided by the State70% of the pool provided by the State 30% of the pool provided by Shelby 30% of the pool provided by Shelby
CountyCounty
![Page 4: Shelby County Down Payment Assistance Program NACCED Presentation September 2011](https://reader030.fdocuments.net/reader030/viewer/2022032606/56812d47550346895d924d87/html5/thumbnails/4.jpg)
Shelby County Down Shelby County Down Payment Assistance Payment Assistance
ProgramProgram In addition to the original pool, fees In addition to the original pool, fees
were established and collected on were established and collected on permits issued by Shelby County permits issued by Shelby County Code Enforcement. Code Enforcement.
Funds generated are used to operate Funds generated are used to operate the program and build on the revolving the program and build on the revolving loan fund. loan fund.
![Page 5: Shelby County Down Payment Assistance Program NACCED Presentation September 2011](https://reader030.fdocuments.net/reader030/viewer/2022032606/56812d47550346895d924d87/html5/thumbnails/5.jpg)
Shelby County Down Shelby County Down Payment Assistance Payment Assistance
ProgramProgram Permit Fees consist of:Permit Fees consist of:
$1 for each residential permit issued.$1 for each residential permit issued. $5 for each commercial permit issued.$5 for each commercial permit issued. $5 for each sign permit $5 for each sign permit
issued/renewed.issued/renewed.
Average generated per year from Average generated per year from fees $114,300.00fees $114,300.00
![Page 6: Shelby County Down Payment Assistance Program NACCED Presentation September 2011](https://reader030.fdocuments.net/reader030/viewer/2022032606/56812d47550346895d924d87/html5/thumbnails/6.jpg)
Shelby County Down Shelby County Down Payment Assistance Payment Assistance
ProgramProgram Original available loan pool: Original available loan pool: $ 3.3 Million$ 3.3 Million
(in 2006)(in 2006)
Current Available loan pool: Current Available loan pool: $ 2.3 Million$ 2.3 Million (in 2011) (in 2011)
Total Loans Made: Total Loans Made: $ 2.3 Million$ 2.3 Million (2006-2011)(2006-2011)
![Page 7: Shelby County Down Payment Assistance Program NACCED Presentation September 2011](https://reader030.fdocuments.net/reader030/viewer/2022032606/56812d47550346895d924d87/html5/thumbnails/7.jpg)
Type of Assistance Type of Assistance ProvidedProvided
Assistance is in the form of a 5% loan for Assistance is in the form of a 5% loan for down payment and closing costs associated down payment and closing costs associated with the purchase of a home.with the purchase of a home.
Loan amount:Loan amount: Up to $ 3,500.00Up to $ 3,500.00 Term:Term: Up to 10 years/120 Up to 10 years/120
monthsmonths Monthly Payment:Monthly Payment: $ 37.12 for 120 months*$ 37.12 for 120 months*
* for maximum loan.* for maximum loan.
![Page 8: Shelby County Down Payment Assistance Program NACCED Presentation September 2011](https://reader030.fdocuments.net/reader030/viewer/2022032606/56812d47550346895d924d87/html5/thumbnails/8.jpg)
Eligibility RequirementsEligibility Requirements
Unit purchased must be located in Unit purchased must be located in Shelby County and be the primary Shelby County and be the primary residence. residence.
Unit may be either existing or a Unit may be either existing or a newly constructed unit newly constructed unit
Homebuyer must qualify for a THDA, Homebuyer must qualify for a THDA, FHA, VA, or Conventional Mortgage.FHA, VA, or Conventional Mortgage.
![Page 9: Shelby County Down Payment Assistance Program NACCED Presentation September 2011](https://reader030.fdocuments.net/reader030/viewer/2022032606/56812d47550346895d924d87/html5/thumbnails/9.jpg)
Eligibility RequirementsEligibility Requirements
Homebuyer(s) must invest a Homebuyer(s) must invest a minimum of $500 of their own minimum of $500 of their own savings for closing.savings for closing.
Homebuyer(s) must attend a Homebuyer(s) must attend a homebuyer counseling class.homebuyer counseling class.
The purchase price of the unit must The purchase price of the unit must be less than $200,160.00.be less than $200,160.00.
![Page 10: Shelby County Down Payment Assistance Program NACCED Presentation September 2011](https://reader030.fdocuments.net/reader030/viewer/2022032606/56812d47550346895d924d87/html5/thumbnails/10.jpg)
Eligibility RequirementsEligibility Requirements
Ratio for Approval of DPA funds:Ratio for Approval of DPA funds:
Front end: Cannot exceed 33%Front end: Cannot exceed 33%
(Monthly housing expense/stable income)(Monthly housing expense/stable income)
Back end: Cannot exceed 43% Back end: Cannot exceed 43%
(Monthly housing expense + debt/stable (Monthly housing expense + debt/stable
income)income)
![Page 11: Shelby County Down Payment Assistance Program NACCED Presentation September 2011](https://reader030.fdocuments.net/reader030/viewer/2022032606/56812d47550346895d924d87/html5/thumbnails/11.jpg)
Eligibility RequirementsEligibility Requirements
Household Income Levels:Household Income Levels:
1 to 2 Person Household 1 to 2 Person Household Minimum $ 26,100.00Minimum $ 26,100.00 MaximumMaximum $ 68,439.00 $ 68,439.00
3 or More person Household3 or More person Household MinimumMinimum $ 26,100.00 $ 26,100.00 MaximumMaximum $ 78,704.00 $ 78,704.00
![Page 12: Shelby County Down Payment Assistance Program NACCED Presentation September 2011](https://reader030.fdocuments.net/reader030/viewer/2022032606/56812d47550346895d924d87/html5/thumbnails/12.jpg)
Eligibility RequirementsEligibility Requirements Purchaser must agree to a Deed of Trust Purchaser must agree to a Deed of Trust
Restriction being recorded on the home at Restriction being recorded on the home at closing.closing.
Purchaser may not at any time lease the Purchaser may not at any time lease the property and such language must be property and such language must be included in all loan documents. included in all loan documents.
Purchaser must sign to a Promissory Note Purchaser must sign to a Promissory Note which also incorporates all requirements which also incorporates all requirements of the loan. of the loan.
![Page 13: Shelby County Down Payment Assistance Program NACCED Presentation September 2011](https://reader030.fdocuments.net/reader030/viewer/2022032606/56812d47550346895d924d87/html5/thumbnails/13.jpg)
Eligible Closing CostsEligible Closing Costs
1.1. Origination Fee (1%)Origination Fee (1%)
2.2. One repair inspectionOne repair inspection
3.3. One lender inspectionOne lender inspection
4.4. Compliance/Final Compliance/Final InspectionInspection
5.5. Engineer’s CertificateEngineer’s Certificate
6.6. Pest InspectionPest Inspection
7.7. Closing/Settlement, Closing/Settlement, Deed of Trust, Note Deed of Trust, Note PreparationPreparation
8.8. Amortization ScheduleAmortization Schedule
9.9. Title ExaminationTitle Examination10.10. Title InsuranceTitle Insurance11.11. Credit ReportCredit Report12.12. SurveySurvey13.13. RecordingRecording14.14. NotaryNotary15.15. Attorney’s fee not to Attorney’s fee not to
exceed $200 exceed $20016.16. Allowable Pre-paysAllowable Pre-pays17.17. InsuranceInsurance
![Page 14: Shelby County Down Payment Assistance Program NACCED Presentation September 2011](https://reader030.fdocuments.net/reader030/viewer/2022032606/56812d47550346895d924d87/html5/thumbnails/14.jpg)
Resale ProvisionResale Provision
All loans contain a resale provision All loans contain a resale provision which requires payoff of the unpaid which requires payoff of the unpaid balance when the property is:balance when the property is:
Sold,Sold, Transferred, orTransferred, or Leased.Leased.
![Page 15: Shelby County Down Payment Assistance Program NACCED Presentation September 2011](https://reader030.fdocuments.net/reader030/viewer/2022032606/56812d47550346895d924d87/html5/thumbnails/15.jpg)
PrepaymentPrepayment
Loan balances may be paid off at any Loan balances may be paid off at any time.time.
There is no penalty for the There is no penalty for the prepayment of the DPA loan prior to prepayment of the DPA loan prior to the maturity date. the maturity date.
![Page 16: Shelby County Down Payment Assistance Program NACCED Presentation September 2011](https://reader030.fdocuments.net/reader030/viewer/2022032606/56812d47550346895d924d87/html5/thumbnails/16.jpg)
Loans By Fiscal YearLoans By Fiscal Year
# of loans# of loans Dollars Loans Average Dollars Loans Average LoanLoan
2006:2006: 1818 $ 57,658 $ 57,658 $ 3,203$ 3,203 2007:2007: 1818 $ 57,020$ 57,020 $ 3,168$ 3,168 2008:2008: 3939 $ 124,588$ 124,588 $ 3,195$ 3,195 2009:2009: 153153 $ 505,047$ 505,047 $ 3,301$ 3,301 2010:2010: 311311 $ 1,018,646$ 1,018,646 $ 3,275$ 3,275 2011:2011: 153153 $ 483,447$ 483,447 $ 3,160$ 3,160
692692 $ 2,246,406$ 2,246,406 $ 3,246$ 3,246
![Page 17: Shelby County Down Payment Assistance Program NACCED Presentation September 2011](https://reader030.fdocuments.net/reader030/viewer/2022032606/56812d47550346895d924d87/html5/thumbnails/17.jpg)
![Page 18: Shelby County Down Payment Assistance Program NACCED Presentation September 2011](https://reader030.fdocuments.net/reader030/viewer/2022032606/56812d47550346895d924d87/html5/thumbnails/18.jpg)
![Page 19: Shelby County Down Payment Assistance Program NACCED Presentation September 2011](https://reader030.fdocuments.net/reader030/viewer/2022032606/56812d47550346895d924d87/html5/thumbnails/19.jpg)
Average Tax Rates Average Tax Rates (January 1, 2006 – (January 1, 2006 –
6/30/2011)6/30/2011)Annual Property Tax Rates:Annual Property Tax Rates:
Shelby CountyShelby County $4.02 (Memphis) $4.06 (Non-$4.02 (Memphis) $4.06 (Non-Memphis)Memphis)
Municipalities*Municipalities*MemphisMemphis $3.19$3.19ArlingtonArlington $1.00$1.00BartlettBartlett $1.49$1.49ColliervilleCollierville $1.43$1.43GermantownGermantown $1.48$1.48MillingtonMillington $1.23$1.23
* Overall Average Municipal Rate: $1.63* Overall Average Municipal Rate: $1.63
![Page 20: Shelby County Down Payment Assistance Program NACCED Presentation September 2011](https://reader030.fdocuments.net/reader030/viewer/2022032606/56812d47550346895d924d87/html5/thumbnails/20.jpg)
Estimated Taxes GeneratedEstimated Taxes Generated(Since January 2006)(Since January 2006)
Average Mortgage Loan: Average Mortgage Loan: $ $ 94,698.0094,698.00
Shelby County Taxes:Shelby County Taxes: $ $ 1,511,331.361,511,331.36
City/Municipal Taxes:City/Municipal Taxes: $ $ 612,809.20612,809.20
Total in Shelby County:Total in Shelby County: $ 2,124,140.56$ 2,124,140.56
![Page 21: Shelby County Down Payment Assistance Program NACCED Presentation September 2011](https://reader030.fdocuments.net/reader030/viewer/2022032606/56812d47550346895d924d87/html5/thumbnails/21.jpg)
Annual DPA Income Loans Annual DPA Income Loans & Fees& Fees
MonthlyMonthly AnnuallyAnnually
Average repaymentsAverage repayments $13,370$13,370$160,440$160,440
Average from permit feesAverage from permit fees $ 9,525$ 9,525 $114,300$114,300
Total revenue collected*Total revenue collected* $ 22,895$ 22,895 $274,740$274,740
* Average as of 6/30/2011* Average as of 6/30/2011
![Page 22: Shelby County Down Payment Assistance Program NACCED Presentation September 2011](https://reader030.fdocuments.net/reader030/viewer/2022032606/56812d47550346895d924d87/html5/thumbnails/22.jpg)
Obstacles In Obstacles In ImplementingImplementing
Household Income Limits Household Income Limits Slow start due to income qualifications. Slow start due to income qualifications.
Originally, the program was set up to mirror Originally, the program was set up to mirror income by household size under the federal income by household size under the federal guidelines which resulted a high volume of guidelines which resulted a high volume of non-qualifying applicants. (Buyers were non-qualifying applicants. (Buyers were pigeonholed.) pigeonholed.)
Because no Federal funds are involved, a Because no Federal funds are involved, a change to State household limits resolved this change to State household limits resolved this issue by freeing up the restricted income levels issue by freeing up the restricted income levels and provided a wider income range. and provided a wider income range.
![Page 23: Shelby County Down Payment Assistance Program NACCED Presentation September 2011](https://reader030.fdocuments.net/reader030/viewer/2022032606/56812d47550346895d924d87/html5/thumbnails/23.jpg)
Obstacles In Obstacles In ImplementingImplementing
Shelby County’s Finance DepartmentShelby County’s Finance Department How to issue/cut Down Payment Checks?How to issue/cut Down Payment Checks?
Originally, Finance wanted W-9’s and Vendor Originally, Finance wanted W-9’s and Vendor numbers for each Homeowner receiving numbers for each Homeowner receiving assistance. assistance.
Finally, resolved by agreeing that the lender had Finally, resolved by agreeing that the lender had to be set up as a Shelby County vendor and the to be set up as a Shelby County vendor and the check was cut to the closing attorney on behalf of check was cut to the closing attorney on behalf of the buyer. the buyer.
![Page 24: Shelby County Down Payment Assistance Program NACCED Presentation September 2011](https://reader030.fdocuments.net/reader030/viewer/2022032606/56812d47550346895d924d87/html5/thumbnails/24.jpg)
Obstacles In Obstacles In ImplementingImplementing
Shelby County Finance DepartmentShelby County Finance Department Time line for issuing checks and method.Time line for issuing checks and method.
County policy required checks to be mailed County policy required checks to be mailed (no County employee can handle the check) (no County employee can handle the check) and turnaround time was set at 30 days. and turnaround time was set at 30 days.
Negotiated a system whereby checks could Negotiated a system whereby checks could be walked through in 10 days and picked up be walked through in 10 days and picked up and delivered by a Dept. of Housing staff and delivered by a Dept. of Housing staff person.person.
![Page 25: Shelby County Down Payment Assistance Program NACCED Presentation September 2011](https://reader030.fdocuments.net/reader030/viewer/2022032606/56812d47550346895d924d87/html5/thumbnails/25.jpg)
Obstacles In Obstacles In ImplementingImplementing
Finding A Loan Servicing Agent:Finding A Loan Servicing Agent: Selection of a Loan Servicer to handle the loans.Selection of a Loan Servicer to handle the loans.
We could not find anyone willing to service such a smallWe could not find anyone willing to service such a small
loan portfolio at a reasonable cost. Issued numerous loan portfolio at a reasonable cost. Issued numerous RFPsRFPs
This was resolved when a Tallahassee, FL company This was resolved when a Tallahassee, FL company mademade
inquiry after seeing the RFP. They ended up securinginquiry after seeing the RFP. They ended up securing
licensing through the State of TN and ended up licensing through the State of TN and ended up becoming becoming
The successful respondent. Cost of servicing is $8 per The successful respondent. Cost of servicing is $8 per loan.loan.
![Page 26: Shelby County Down Payment Assistance Program NACCED Presentation September 2011](https://reader030.fdocuments.net/reader030/viewer/2022032606/56812d47550346895d924d87/html5/thumbnails/26.jpg)
Contacts For More Contacts For More InformationInformation
Jim Vazquez, AdministratorJim Vazquez, Administrator 901-379-901-379-71027102
[email protected]@shelbycountytn.gov
Israel Henry, Finance ManagerIsrael Henry, Finance Manager 901-379-901-379-71167116
[email protected]@shelbycountytn.gov
Wanda Chambers, DPA SpecialistWanda Chambers, DPA Specialist 901-379-901-379-71007100
[email protected]@shelbycountytn.gov