Wyoming Rural Development Programs and Delivery

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2 Wyoming Rural Development Programs and Delivery 2

3 Mission Statement Rural Development is dedicated to strengthening and serving rural America. Through our local presence, we promote partnerships based on local strengths and goals that develop and sustain healthy rural communities. Our creative and collaborative efforts help honor the past and secure the future of rural life. Committed to the future of Rural Communities & bringing Prosperity to Rural America 3

4 What we do for Rural Wyoming Increase economic opportunity Improve the quality of life for rural residents Provide investment and technical assistance 4

5 In Fiscal Year Wyoming Rural Development Invested over $293,691, helping 1,448-Families, Businesses or Communities statewide in all programs Processed 1378 Section 502 Direct and Guaranteed loans totaling $248,619, MFH 538/515 loans for $2,567, Rental Assistance 38 Projects for $4,879, Total Housing Programs $256,124, Total Business Programs $25,437, Total Community Facilities $7,682,

6 What Services Does Rural Development Provide for Rural Wyoming? 6

7 From the Ground Up! USDA Rural Development is the only agency that can build an entire community from the bare ground up, including feeding and housing the workers and providing the raw materials to build with and the energy to complete the work. 7

8 Rural Development Provides - Telecommunications Renewable Energy Water Treatment Infrastructure 8

9 Rural Development Provides - Day Care Assisted Living Center- Washer Grant - Ambulance Community Facilities 9

10 Rural Development Provides - B&I Loan Water Plant Bio-diesel fuels Business Development & Cooperative Programs 10

11 Rural Development Provides - Guarantee Direct Self-Help Home Ownership 11

12 Rural Development Provides - Farm Labor Elderly Housing Family Complexes Rental Housing 12

13 Rural Development s Three Mission Areas Rural Housing Programs Rural Business/Cooperative Programs Rural Utilities / Community Facility Programs 13

14 Rural Business Programs Rural Business Development Grant Program-RBDG Intermediary Relending Program- IRP Rural Economic Development Loan and Grant Program- REDL&G Business and Industry Guaranteed Loan Rural Energy for America Program- REAP Value-Added Producer Grant-VAPG Rural Development Cooperative Development Services Rural Cooperative Development Grant Rural Business Programs 14

15 Cooperative Development Assistance Provide development and technical assistance to new or existing cooperatives Includes feasibility studies, business plans, market research, and much more! Rural Business Programs 15

16 Rural Housing Service Single Family Housing Programs Multi Family Housing Programs 16

17 Single Family Housing Programs Direct Loans Guaranteed Loans Direct Housing Repair Loans and Grants Single Family Housing 17

18 502 DIRECT Loan Payments subsidized Interest rate may be as low as 1% Up to 33 year payback or 38 years for verylow income applicants No down payment Subject to area loan limits Repay all or part of subsidy when sell or refinance. CURRENT NOTE RATE APRIL 3% 18

19 Loan Limits Effective May 1, 2015 to April 30, 2016-Subject to National Office Approval! Albany County $216,840 Natrona County $271,050 Big Horn County $216,840 Niobrara County $216,840 Campbell County $271,050 Park County $216,840 Carbon County $216,840 Platte County $216,840 Converse County $271,050 Crook County $216,840 Sheridan County $216,840 Fremont County $216,840 Sublette County $287,500 Goshen County $216,840 Sweetwater County $293,500 Hot Springs County $216,840 Teton County $625,500 Johnson County $216,840 Uinta County $216,840 Laramie County $216,840 Washakie County $216,840 Lincoln County $216,840 Weston County $216,840 Single Family Housing 19

20 Income Guidelines Direct County Program 4 Person Natrona Very Low $37,450 Low $59, Guaranteed County Program 4 Person Natrona Moderate $86,100 20

21 Guaranteed Loan Program (GRH) Section 502 An approved lender underwrites a loan & handles the paperwork The government guarantees the loan for up to 90% 2% upfront guaranteed fee plus an annual fee of 0.5 percent for both purchase and refinance transactions in FY Loans up to 100% of appraised value or acquisition cost No down payment 30-year fixed market rate There is no mortgage or value limitation. Single Family Housing 21

22 REPAIR/REMODEL DWELLINGS TO MAKE THEM ACCESSIBLE Single Family Housing 22

23 Housing Repair Loan and Grant Programs Section 504 To help very-low income homeowners remove health and/or safety hazards and repair their homes Very-low applicants who currently own their own home and cannot obtain conventional financing can apply Grants are available to applicants 62 years or older with limited income and assets. Maximum lifetime grant amount is $7,500. Loans to an individual may not exceed $20,000. Loan Terms to 20 1% interest rate. Single Family Housing 23

24 Multi Family Housing Section 515 Direct Rental Housing Loans Section 538 Guaranteed Rental Housing Loans Section 514/516 Farm Labor Housing Loans and Grants Esterbrook Apartments Section 533 Housing Preservation Grants Multi Family Housing 24

25 Los Adobes de Maria 65-unit complex for farm worker families Santa Maria, California On-Farm Labor Housing 2 Units Seasonal Purpose Prairieland Duplexes Crookston, Minnesota 20-unit complex for farm worker families To provide Decent, Safe, and Sanitary Housing for Income Qualified FAMILIES/ SENIORS. Multi Family Housing 25

26 538 Guaranteed Rural Rental Housing- Websites handbooks 26

27 538 GRRH MFH PROGRAM What does this program do? The program works with qualified private-sector lenders to provide financing to qualified borrowers to increase the supply of affordable rental housing for low- and moderate-income individuals and families in eligible rural areas and towns. 27

28 Who may apply for this program? Private lenders may apply for a loan guarantee on loans made to an eligible borrower who is unable to obtain commercial credit on reasonable terms without the guarantee. Eligible lenders must be approved and active in one of the following programs: Fannie Mae, Freddie Mac, Ginnie Mae HUD Federal Home Loan Bank members State or local housing finance agencies Eligible borrowers include: Most state and local governmental entities Nonprofit organizations For-profit organizations, including LLC's Federally-recognized Tribes Additional requirements include: Rent for individual units is capped at 30% of 115% area median income Average rent for an entire project (including tenant paid utilities) cannot exceed 30% of 100% of area medium income, adjusted for family size. Complexes must consist of at least five units Complexes may contain units that are detached, semi-detached, row houses or multi-family structures 28

29 What is an eligible area? Areas that may be served include: Rural areas and towns with 20,000 or fewer people Federally-recognized tribal lands How may funds be used? Construction, improvement and purchase of multi-family rental housing for low to moderate income families and individuals is the primary objective for this program. Funding may also be available for: Buying and improving land Providing necessary infrastructure For a complete list see Code of Federal Regulations, 7CFR Part

30 What are the terms of a loan guarantee? The maximum guarantee is typically 90% for for-profit entities and 97% for non-profit entities Minimum term of 25 years and maximum term of 40 years Interest rate negotiated between the lender and the borrower is fixed for the life of the loan guarantee 30

31 Who will service the loan? Loans guaranteed through this program are serviced through the private lender that makes the loan, just as they would be without a guarantee. Who may live in the rental housing? Low- to moderate- income families or individuals Is there a list of qualified private lenders in my area? Contact ANY State RD for a current list of lenders participating in the program. How do we get started? Applications for this program are accepted on an annual basis. A Notice of Funding Availability (NOFA) is posted in the Federal Register Who can answer questions? Contact your State Office above or to apply as a tenant. Current 538 Projects: Jackson, Riverton & Gillette-Wyoming 31

32 DATES: Eligible responses to NOFA will be accepted until December 31, 2015, 12:00 p.m. Eastern Time. Interest Credit: The Consolidated Appropriations Act, 2014 did not fund interest credit. 32

33 Initial guarantee fee. The Agency will charge an initial guarantee fee equal to 1 percent of the guarantee principal amount. For purposes of calculating this fee, the guarantee amount is the product of the percentage of the guarantee times the initial principal amount of the guaranteed loan. Annual guarantee fee. An annual guarantee fee of 50 basis points (1 2 percent) of the outstanding principal amount of the loan as of December 31 will be charged each year or portion of a year that the guarantee is outstanding. 33

34 Conditional Commitment: Once the required documents for obligation are received and all NEPA and regulatory requirements have been met, the USDA Rural Development State Office will issue a conditional commitment, which stipulates the conditions that must be fulfilled before the issuance of a guarantee, in accordance with 7 CFR

35 Certification from the lender stating that the lender or its qualified representative inspected the property and found that the construction meets the Government s requirements for the standards and conditions for housing and facilities in 7 CFR part 1924, subpart A and the standards for site development in 7 CFR part 1924, subpart C, or its successor regulations 35

36 Issuance of Guarantee: The USDA Rural Development Office will issue a guarantee to the lender for a project in accordance with 7 CFR No guarantee can be issued without a complete application, review of appropriate certifications, satisfactory assessment of the appropriate level of environmental review, and the completion of any conditional requirements. 36

37 TYPES OF GUARANTEES OFFERED BY USDA RD- 538 GRRH PROGRAM Option One guarantee. The PERMANENT GUARANTEE or (PERM ONLY) may not go into effect until the lender has provided the State Office with copies of rent rolls showing occupancy levels at 90 percent for 90 consecutive days (90/90 test). MOST COMMON! Option Two guarantee. The Agency may provide a guarantee which will cover construction loan advances (advances) during construction. Option Three guarantee. The Agency may provide a single, continuous guarantee for construction and permanent loans. 37

38 For more information on Rural Development Programs in Wyoming TIMOTHY D. BROOKS- Rural Housing Programs & Acting Business And Cooperative Programs Director OR LAURA KOENIG- MFH COORDINATOR

39 For more information on Rural Development Programs in Wyoming, visit our website at: 39