National Coalition for Homeless Veterans. May 28, USDA Rural Development Housing Programs Community Facilities Programs

Transcription

1 National Coalition for Homeless Veterans May 28, 2014 USDA Rural Development Housing Programs Community Facilities Programs

2 Organizational Structure USDA s Rural Housing Service is part of the Rural Development mission area. Rural Development also includes: Rural Business-Cooperative Service Rural Utilities Service Office of Community Development

3 Strategic Plan to End Homelessness Active in US Interagency Council on Homelessness (USICH) Promote Collaborative Leadership USDA s Food & Nutrition Service (FNS) works closely with the Department of Health & Human Services (HHS) USDA Rural Development works closely with VA Strengthen Capacity and Knowledge Provide Affordable Housing & Community Facilities

4 Single Family Housing Direct Loans Section 502 and Section 504 Loan Guarantees Section 502 Grants and Loan Grant Combinations Section 504 and Section 523 Other Programs Housing Packaging Grants Construction Defects Site Loans

5 Sec. 502 Guaranteed Loan customer

6 Section 502 Rural Housing Loan Guarantees Purpose: Section 502 loans guarantees are primarily used to help moderate income households purchase homes in rural areas. Funds can be used to build or purchase a home. National Average Income of Loans for Purchase-- $55,700 FY 2014 (April 30)

7 Section 502 Rural Housing Loan Eligibility: Guarantees Income of up to 115% of median income. Lender determines repayment feasibility. Must be without adequate housing, but able to afford the mortgage payments, including taxes and insurance. Must be unable to obtain other credit without guarantee, yet have reasonable credit histories.

8 Section 502 Rural Housing Loan Approved lenders: Guarantees Any State housing agency; Lenders approved by HUD, VA, Fannie Mae, or Freddie Mac. Direct Farm Credit System lenders also qualify. Credit unions will soon qualify as participating lenders. Any lender participating in certain other USDA guaranteed loan programs.

9 Section 502 Rural Housing Loan Guarantees Terms: Loans are for 30 years. Interest rate is set by the lender. No required down payment.

10 Section 502 Rural Housing Loan Standards: Guarantees Housing must be modest in size, design, and cost. Houses must meet the voluntary national model building code adopted by the state and RHS thermal and site standards. Obligated 162,943 loans for $22.4 billion in FY FY $24 billion available.

11 Finding A Local Office USDA s Office Locator Web Site: Check in the white pages in your local phone book under USDA/Rural Development Call Rural Development s Public Information line to be connected to the State Office servicing your area. (800)

12 Section 502 Direct Loans Purpose to provide home-ownership opportunities to rural families with very low and low incomes loans may be used to buy, build, improve, or repair rural homes National Average Income Served -- $29,500 FY 2014 (April 30) 40% VL income avg.$22,100

13 Section 502 Rural Housing Eligibility: Direct Loans Applicants must be without adequate housing, but able to afford PITI of 22-26%. In addition, applicants must be unable to obtain credit elsewhere, yet have reasonable credit histories. Must be Very Low or Low income - below 50 percent of the area median income (AMI) / percent of AMI.

14 Section 502 Rural Housing Direct Loans Terms: No down payment, limited closing costs with other grants sometimes available. Loans are for up to 33 years (38 for those with incomes below 60 percent of AMI and who cannot afford 33-year terms). The term is 30 years for manufactured homes.

15 Section 502 Rural Housing Direct Loans Terms: Interest rate is set by RHS, currently (May 2014) the interest rate is 3.75%. Loans are subsidized with Interest Credit or Payment Assistance to an effective interest rate as low as 1 percent. Income reviewed regularly (1-2 years) to set subsidy amount. Subsidy is subject to recapture when home is sold or borrower moves out. Unique feature.

16 Section 502 Rural Housing Standards: Direct Loans Housing must be modest in size, design, and cost. Houses must meet state building code and RHS site standards.

17 Section 502 Direct Loan Customer

18 Section 504 Rural Housing Repair and Rehabilitation Loans and Grants Purpose: The Very Low-Income Housing Repair program provides loans and grants to Very Low-income homeowners to repair, improve, or modernize their dwellings or to remove health and safety hazards. Grants are limited to essential repairs for homeowners 62 or older who cannot repay a Section 504 loan.

19 Section 504 Rural Housing Repair and Rehabilitation Loans and Grants Terms: Loans of up to $20,000 and grants of up to $7,500 are available. Loans are for up to 20 years at 1 percent interest. Loans over $7,500 secured buy a mortgage.

20 Section 504 Rural Housing Repair and Rehabilitation Loans and Grants Terms: Grants must be repaid if the property is sold in less than three years. Repairs financed with grant funds must result in the removal of health and safety hazards.

21 Rural Development For more information about these or other Rural Housing Service programs, contact the Rural Development State Office in your State or visit our website at: The Rural Housing Service is an Equal Opportunity Lender and its programs are operated on an equal opportunity basis. Complaints of discrimination may be filed with the Secretary of Agriculture, Washington, D.C

22 Donn Appleman Special Assistant to Deputy Administrator Rural Housing Service Single Family Housing (202)

23 Rural Development: Rural Housing Service Community Facilities Programs Purpose Provide an essential service to a single community, county, or several communities Provide a service that is typically provided by a local unit of Government Be needed for the orderly development of the Rural Community National Coalition of Homeless Veterans Annual Conference May 28, 2014

24 What s Eligible? Health Care Facilities -- Public Safety Facilities Public Service Facilities Community Centers Public Bldgs.,Transportation Schools, Libraries Fair Grounds Adult and Child Care Centers Homeless Shelters National Coalition of Homeless Veterans Annual Conference May 28, 2014

25 Rural Development: Rural Housing Service Through its CF Programs, the USDA Supports the success of rural communities by providing loans and grants for the construction, acquisition, or renovation of essential community facilities The commitment of USDA to this effort is at the core of its mission and its promise to help build stronger, more vibrant rural communities across the nation. National Coalition of Homeless Veterans Annual Conference May 28, 2014

26 Rural Development: Rural Housing Service A key point to remember All of the facilities we fund must be open to the entire community and cannot be limited to a particular group, such as veterans. Another distinction about the CF program It does not provide direct services to the homeless, but rather, it provides the funding which may be used by eligible organizations to construct or acquire facilities through which services may be provided to the homeless. National Coalition of Homeless Veterans Annual Conference May 28, 2014

27 Rural Development: Rural Housing Service Some examples of CF projects we have funded: Citizens Against Domestic Violence, Inc. located in Camdenton, Missouri. Funds will be used to construct a domestic violence shelter that will house up to 34 women. National Coalition of Homeless Veterans Annual Conference May 28, 2014, 2013

28 Multi-Family Housing Direct Loans Section 515, Section 514 ($428.4 million in FY 2014) Loan Guarantees Section 538 ($150 m in FY 2014) Grants Section 533, Section 521, Section 516 ($17.9 m in FY 2014) Demonstration Programs Multi-Family Preservation and Revitalization ($73 m) Preservation Revolving Loan Fund ($16.4 m in FY 2014) Rural Development Voucher Program ($16.1 m FY 2014)

29 Multi-Family Housing Section 533 Direct Grant Program 7 CFR PART 1994, Subpart N DIRECT MULTI-FAMILY HOUSING GRANTS Housing Preservation Grants Purpose: ($3.6 million available in FY 2014) Repair and rehabilitate housing owned or occupied by rural people with low incomes by providing grants to non-profit organizations and public bodies. Section 533 grant funds can be used to: Install or repair water and waste disposal systems; Provide energy conservation; repair or replace heating systems or electrical wiring; Make repairs to improve the general living conditions of the rural area residents, including but not limited to, improved accessibility for persons with disabilities.

30 Multi-Family Housing Purpose: Section 521 Direct Grant Program 7 CFR PART 3560 DIRECT MULTI-FAMILY HOUSING GRANTS Rental Assistance A project-based tenant rent subsidy which may be provided to Rural Rental Housing and Farm Labor Housing facilities. Section 521 funds can be used to: Compensate a borrower for the difference between the approved shelter cost and the tenant contribution when the contribution is less than the basic rent for the property.