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1 Please mute your phones The webinar will begin momentarily 0

2 Welcome Michele Watson 1

3 SPARC Sponsoring Partnership And Revitalizing Communities Round 8 (FY 10)-Webinar 2

4 VHDA Participants Michele Watson Director of Home Ownership Programs Janice Burgess Loan Programs Manager Toni Ostrowski Senior Community Housing Officer Sandy Redd Business Partner Products Manager 3 3

5 Purpose of Webinar Inform VHDA partners and stakeholders of Round 8 funding availability Review programmatic changes Discuss underwriting criteria Answer questions or concerns 4 4

6 Questions? Questions will be addressed at the end of the webinar Please type your question in the dialogue box 5 5

7 SPARC - Round 8 Guidelines Toni Ostrowski 6

8 Round 8 Special allocation available to: Local governments Redevelopment and housing authorities Nonprofit housing advocates For profit developers Other Purpose: Assist housing advocates by providing a set-aside of resources to address critical housing needs 7 7

9 Round 8 Allocation Guide is available on line Timeline Applications deadline: Close of business August 14, 2009 Submit applications electronically to: sparcapplications@vhda.com Scoring & Ranking completed by mid-sept Notification of VHDA Board of Commissioners Commitments mailed by 3 rd week of September Reservations available October 1 st 8 8

10 Eligible Projects Project proposal-5 units or more Single family detached, townhomes and approved condominiums Subdivision or scattered sites acceptable All deed restrictions must terminate at foreclosure 9 9

11 Scoring of SPARC Proposal POINTS TAB DOCUMENTATION Mandatory I. Application Transmittal 80 (90 for NSP) II. Narrative Summary 20 pts. Need 60 pts. Strategy (70 NSP) Mandatory III. Typical Home Transaction 20 IV. Supporting Documentation-Proposal Readiness 10 V. Bonus points 10 10

12 Housing Strategy Areas of Concentration Expand Affordable Housing Opportunities Address Housing Needs of Minorities & Diverse Cultures Support Community Revitalization Increase Housing Opportunities for Seniors and People with Disabilities 11 11

13 Expand Affordable Housing Opportunities Scoring based on the following: 1. Income 2. Home Inspection 3. Leverage Round 8 changes: 20 points (high) for 80% AMI & below 30 points (high) for leverage of 10% 12 12

14 Address the Housing Needs of Minorities and Diverse Cultures Scoring based on the following: 1. Marketing/Outreach 2. Home Inspection 3. Leverage Round 8 changes Leverage 13 13

15 Support Community Revitalization Scoring based on the following: 1. Property 2. Home Inspection 3. Leverage Round 8 Changes Priority 30 points given to NSP partnerships Leverage 14 14

16 Increase Housing Opportunities for Seniors and PWD Scoring based on the following: 1. Property 2. Home Inspection 3. Leverage Round 8 changes: Leverage 15 15

17 Readiness of Proposal Zoning Site Control Utility Service Partnerships in place Utilization of past SPARC allocation 16 16

18 Bonus Points Categories Green Building Energy Star Certification (5 Star) EarthCraft Certified Certified by the Enterprise Foundation Green Communities program Universal Design Incorporate UD elements to meet minimum standards for visitability Attend a UD training session 17 17

19 Allocations Allocations will carry an interest rate reduction of ½% and/or Allocations of FHA Plus resources (prevailing FHA Plus rate at time of reservation) Proposal scoring/ranking and leverage will determine allocation types 18 18

20 SPARC Commitments Commitment will specify the following: allocation amount and type 1/2% - all eligible programs Prevailing market rate FHA Plus only Expiration: June 30, 2010 Loan type (e.g. government insured or conventional) 19 19

21 Underwriting Janice Burgess 20

22 Lender Responsibilities Confirm procedures with SPARC sponsor Confirm special commitment criteria with SPARC sponsor Make loan reservation Determine borrower eligibility per VHDA guidelines Originate/Process/Underwrite/Close loan Submit all required documents to VHDA 21 21

23 Eligible SPARC Programs Conventional FHA VA RHS FHA Plus Homebuyer Tax Credit Plus (must close no later than November 30, 2009) 22 22

24 SPARC Loan Parameters Borrowers Interest Rate Mortgage Insurance Sales Price Limitations Income Limits Underwriting 1 st time homebuyers Refer to Sponsor s commitment: ½% below VHDA 1 st time homebuyer reservation or the prevailing FHA Plus interest rate Loans with LTV s of 80% or more must be government insured Cannot exceed VHDA Income limits for 1 st time home buyer program Gross household income cannot exceed VHDA s 1 st time home buyer program. Cannot exceed limits established by Sponsor in SPARC application VHDA standards for 1st time homebuyer program 23 23

25 Recent Underwriting Changes FHA Plus Minimum 620 Credit score Collections exceeding $250 or $1000 cumulative must be paid prior to closing Maximum 31%/43% ratios (DE underwriter may grant exceptions up to 38%/50%) Qualifying income part time, overtime, commissions consider current earnings 24 24

26 Condominium Requirements Property must meet the requirements of the insurer and must be approved by: FHA Fannie Mae or Freddie Mac It is recommended that condominium developments be FHA approved VHDA will finance no more that 25% of the units in any development 25 25

27 Secondary Financing Providers must execute a VHDA Secondary Financing Certification Secondary financing must be provided by government entity Secondary financing may not be made by seller Shared equity and deed restrictions must be approved by VHDA 26 26

28 Reservation Procedures Sandy Redd 27

29 Reservation Form 28 28

30 Reservations Procedures Pricing Options are not available Reserve SPARC funds Must have authorization from SPARC sponsor prior to reserving Reservation form faxed to VHDA (cannot reserve on-line) Fax reservation form to (804)

31 Questions? 30 30