Missouri USDA Rural Housing Program Information. Welcome!

Transcription

1 Missouri USDA Rural Housing Program Information Welcome! 1

2 Rural Development USDA Rural Development USDA Rural Development (RD) has been proudly serving rural America for over 70 years. Our mission: To enhance community development and economic opportunities and to improve the qualify of life in rural America. 2

3 Rural Development Rural Development is know as an agency that can build a community from the ground up. Our 40 + programs help by financing: Homes Senior and emergency centers Schools Hospitals Infrastructure Food Systems Bio products We believe the investments in rural communities are vital to the nation s overall economy. 3

4 HOUSING PROGRAMS Single Family Housing: Direct Home Ownership Loans assists verylow and low income applicants buy, build or repair homes 502 & 504 FY 13 - $22,574,978 FY Loans & Grants NO DOWN PAYMENT REQUIRED!!! 4

5 HOUSING PROGRAMS 502 Direct Homeownership Loans 5

6 502 Direct Homeownership Loans Loans for housing to very-low and low income families Build, purchase, or repair Can loan up to 100% of the appraisal Long term financing 33 years Payments are based on adjusted family income Home must be in a rural area. 6

7 502 Direct (cont.) Home must be modest in design and cost, and must not exceed the county maximum loan limit. Home must meet local codes Applicant must not already own a home Must have repayment ability Ratios cannot exceed 29% PITI (principle, interest, tax, insurance) and 41% Total Debt Must have an acceptable credit history 7

8 502 Direct (cont.) County Maximum loan limit - $149,500 to $175,600 Income limits $17,600 to $58,650 (for a 4 person household) For the following counties: Johnson Lafayette Pettis Saline 8

9 HOUSING PROGRAMS 504 Home Repair Loans and Grants 9

10 504 Home Repair Loans and Grants Provides loan and grant funds to be used to pay for needed repairs to dwellings of very low income families. To remove health and safety hazards leaky roofs, bad heating systems, structural problems, handicap accessibility Can loan up to 100% of property value Same eligibility, more liberal credit review 10

11 504 Home Repair (cont.) Loans are 1% for 20 yrs. Not over $20k Ex. $5000 Loan Payment is $23/ Per month Lifetime grant assistance not over $7,500 Loans may include modernizing and bringing the home up to standards, changes for convenience, adding a room, and overall improvements. Grants available to applicants 62 years or older who do not have repayment ability. 11

12 504 Home Repair (cont.) Income limits $17,600 to $36,650 (for a 4 person household) For the following counties: Johnson Lafayette Pettis Saline 12

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14 HOUSING PROGRAMS Richmond Servicing Office Debra Berry 500 Wollard Blvd Richmond, MO (Carroll, Clay, Jackson, Lafayette, Ray, and Saline Counties) SFH Area office Contacts Area Director, Kelly Gregory at Sedalia Servicing Office Sara Bax 1407 W. 32 nd Street Sedalia, MO (Benton, Cooper, Howard, Johnson, Morgan and Pettis Counties) 14

15 HOUSING PROGRAMS Single Family Housing: Guaranteed Home Ownership Loans purchase program for low and moderate income households (offered through your local bank) FY13 - $650,687,121 5,916 Loans 15

16 HOUSING PROGRAMS Guaranteed Homeownership Loans 16

17 Guaranteed Homeownership Loans Loans for housing to low and moderate income families Conventional lender makes the loan Build, or purchase, and repair Long-term financing 30 years Payments are not subsidized market rate RD charges the lender a one-time 2% fee 17

18 Guaranteed RH (cont.) Same requirements for the applicant and home as with the Direct loans except the mortgage limit is based on repayment ability. The lender can include the fee in the loan as long as it does not exceed 102% value 18

19 Guaranteed RH (cont.) Annual fee of.04% charged on outstanding balance. Can use conventional lending s forms, appraisals, and inspections Originating bank chooses inspectors and appraisers Program lowers the lenders risk of loss 19

20 Guaranteed RH (cont.) Income limits $74,750 to $84,300 (for a 4 person household) For the following counties: Johnson Lafayette Pettis Saline 20

21 Eligibility The below website will have the most current information as it pertains to property eligibility: eaction.do You can navigate within this site to drill down to streets to determine eligibility in that manner. Please keep in mind the website has not been updated to include the communities of Nixa, Wentzville or Foristell which will become eligible May 6,

22 HOUSING PROGRAMS Single Family Housing: 22

23 HOUSING PROGRAMS Single Family Housing: 23

24 HOUSING PROGRAMS Single Family Housing: 24

25 HOUSING PROGRAMS Single Family Housing: 25

26 HOUSING PROGRAMS Multi-Family Housing Programs 26

27 Multi-Family Housing Programs Regulations: 7 C.F.R HB , Loan Origination Handbook HB , Asset Management Handbook 7 C.F.R HB , Guaranteed Rural Rental Housing Program Origination and Servicing Handbook Websites: (National) (Missouri) 27

28 Multi-Family Housing Programs Section 515, Rural Rental Housing Program (RRH) Section 538, Guaranteed Rural Rental Housing Program (GRRH) Section 514, Farm Labor Housing Loans (FLHL) Section 515, Farm Labor Housing Grants (FLHG) 28

29 HOUSING PROGRAMS SECTION 515 RURAL RENTAL HOUSING PROGRAM 29

30 Section 515, Rural Rental Housing Program 640 complexes state wide 15,381 total units 19,825 Tenants Family or Elderly/Disabled Consist of 1-3 bedrooms Rent based upon tenant adjusted income 30

31 MFH Section 515 RRH (cont.) Types of Rental Housing USDA Rural Development Properties Rental assistance available, tenants pay 30% of adjusted income, accept HUD section 8 vouchers, some complexes limited to elderly tenants To search for RD properties, go to You can search by State, then by county and the contact information should be shown. HUD Subsidized Units Housing Assistance Payment contract (HAP), RA available for everyone in complex, some complexes limited to elderly tenants To search for HUD properties, go to and search by city when prompted. 31

32 MFH Section 515 RRH (cont.) Types of Rental Housing Local Housing Authorities HAP Contract in place, RA available for everyone in complex, Some housing authorities have a priority for elderly and displaced tenants Go to for a listing of housing authorities in Missouri. Privately owned No subsidy, listings are in local newspapers, craigslist, or realtor listings. State Tax Credit Housing No subsidy, rents are restricted in accordance with MHDC, most family apartments, but could be designated for a certain age group. There is an apartment locator at for a listing of tax credit properties. 32

33 MFH Section 515 RRH (cont.) Purpose of Program: To provide adequate, affordable, decent, safe, and sanitary rental units We provide financing to develop rental units in areas that need housing and where this housing is unlikely to be provided through other means 33

34 MFH Section 515 RRH (cont.) Loan Purposes: New construction Purchase and rehabilitate existing buildings Only when the loan for rehab does not exceed by 5% a loan for new construction in the same area Purchase and improve the necessary land on which the housing will be located Develop other related facilities in connection with the housing, such as community room, recreation area or office 34

35 MFH Section 515 RRH (cont.) Eligibility: Individuals, partnerships, limited partnerships, for-profit corporations, non-profit organizations, limited equity cooperatives, Native American tribes and public agencies are eligible For-profit borrowers must agree to operate on a limited profit basis Currently 8% on initial investment Borrowers must be unable to obtain credit elsewhere that would allow them to charge affordable rents to low and moderate income tenants 35

36 MFH Section 515 RRH (cont.) Applicants must have the ability and experience to operate and manage the development successfully Terms: The term for an initial Section 515 loan is 30 years with a 50 year amortization period Each loan is made at a note rate established by the Agency The current rate, as of May 1, is 3.75% 36

37 MFH Section 515 RRH (cont.) Applications: Competitive application process published yearly in the Federal Register as a Notice of Funding Availibilty (NOFA) Every year each State uses criteria to establish a list of targeted communities for which applications will be accepted (Designated Places list) Applications submitted for areas other than what is on the Designated Places list will be rejected We post these to our Missouri website when the NOFA is published Applications are then rated competitively nation-wide 37

38 MFH Section 515 RRH (cont.) Rental Assistance This is a deeper subsidy which pays the difference between 30% of the tenant s adjusted income and the basic rent This is project based subsidy that stays with the property Other Subsidies Existing Section 8 assistance is available through various housing agencies throughout the state This is tenant based subsidy which goes with the tenant 38

39 HOUSING PROGRAMS SECTION 538 GUARANTEED RURAL RENTAL HOUSING PROGRAM 39

40 MFH Section GRRH Purpose of Program: Provide housing that is decent, safe, sanitary, and competitive in the market Increase the supply of moderately-priced housing in rural areas Ensure housing is affordable to low- and moderate-income rural residents 115 percent of area median income (AMI) or less Foster risk-sharing partnerships with public and private lenders 40

41 MFH Section 538 GRRH (Cont.) Loan Purposes: New construction and/or purchase and rehabilitation of buildings Purchase and improve land on which the housing will be located Development of related facilities (community space, recreation, storage or maintenance structures) except high cost facilities swimming pools and exercise clubs 41

42 MFH Section 538 GRRH (Cont.) Construction of on-site management or maintenance offices and living quarters for operating personnel for the property Purchase and install appliances and develop the surrounding grounds Includes parking, signs, landscaping and fencing Construction interest accrued on the construction loan, relocation assistance and developers fees 42

43 MFH Section 538 GRRH (Cont.) Costs and/or fees determined by the Agency to be necessary to the development of the project Feasibility determination, loan application fees, appraisals, environmental documentation, etc. Costs associated with existing RD financed Section 515 properties Maximum amount required is $6,500 per unit 43

44 MFH Section 538 GRRH (Cont.) Eligibility: Borrowers must be US Citizen or US owned corporations, or organizations in which the principals are US Citizens or permanent legal residents, and include: Individuals, corporations, state or local public agencies, partnerships, cooperative housing, trusts, Indian tribes, etc. 44

45 MFH Section 538 GRRH (Cont.) Lenders are those approved and considered eligible by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corp., the Federal Home Loan Bank members, or the Department of Housing and Urban Development State Housing Finance Agencies are also considered eligible 45

46 MFH Section 538 GRRH (Cont.) Terms: The minimum term is 25 years and the maximum term is 40 years There is no maximum or minimum loan amount The interest rate is negotiated between the borrower and lender but cannot exceed the maximum rate specified in the NOFA The interest rate is fixed for the life of the guaranteed loan Location and Loan Amounts: Must be located in rural communities with less than 35,000 population 46

47 MFH Section 538 GRRH (Cont.) Fees: Depends upon the NOFA There is no interest credit available Applications: Competitive application process published yearly in the Federal Register as a Notice of Funding Availability (NOFA) FY 14 NOFA has not be published 47

48 HOUSING PROGRAMS SECTION 514 FARM LABOR HOUSING LOANS Purpose of Program: Increase the supply of affordable housing for farm workers and are specific to the farm where those laborers work 48

49 HOUSING PROGRAMS SECTION 516 FARM LABOR HOUSING GRANTS 49

50 MFH Section 516 FLHG Purpose of Program: Increase the supply of affordable housing for farm laborers regardless of the farm where they work Grants are provided where there is a pressing need for such facilities and there is reasonable doubt that housing can be provided without the grant assistance May be in urban or rural areas Off-farm labor housing only (on-farm labor housing does not qualify for a grant) 50

51 HOUSING PROGRAMS MFH Area office Contacts Clinton Area Office Area Director, Kelly Gregory, 1306 N 2 nd Street Clinton, MO Fax: Mary Ann Snodgrass, Area Specialist (Benton, Henry, Pettis, and St. Clair Counties) Lyn Bilyeu, Area Specialist (Carroll, Cooper, Hickory, Johnson, Lafayette, Moniteau, and Saline Counties 51