Mshda MSHDA RD Development Meeting 317223 7

8/3/2019 Mshda MSHDA RD Development Meeting 317223 7

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Michigan State HousingDevelopment Authority

Office of Community Development

Bill ParkerField Services

Office of Community Development


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MSHDA MISSION

MSHDA provides financial and technical assistancethrough public and private partnerships, to create

and preserve decent, affordable housing for low andmoderate income Michigan residents.


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County Allocation FormulaPopulation Allocation Amount

0 - 5,000 $100,000

5,001 - 10,000 $125,000

10,001 - 20,000 $150,000

20,001 - 30,000 $175,000

30,001 - 40,000 $200,000

40,001 - 50,000 $225,000

50,001 - 60,000 $250,000

60,001 - 70,000 $275,000

Over 70,001 $300,000


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County Allocation The primary activity undertaken by the counties is homeowner rehabilitation.

At least 85% of funds are for rehabilitation that brings the house up to at leastHUD Minimum Housing Quality Standards (HQS).

Up to 15% of the funds can be used for emergency repairs and HQSstandards are not required.

In 2009 County allocation grantees completed 477 homeowner rehab.projects totaling $6,025,000. Average CDBG cost was $12,700. (maximum loanis $35,000 deferred no payment loan repayable at sale or transfer)

Counties used program income funds to complete approximately 200 otherprojects in 2009.


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Housing Resource Fund

Approximately $6-10 million in 2010*

HOME fundsCDBG for housingMSHDA funds (limited funding if any)

* Estimate, not including County Allocation funds


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Housing Resource Funds (HRF) areused to assist low-income households

with incomes at or below 80% of theArea Median Income (AMI) as

adjusted for family size.

Some HRF components are targetedto lower incomes.


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HRF Desired Result

All communities will be vibrant,sustainable, affordable, and

diverse places, where peoplechoose to live and stay.


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HRF Eligible Applicants

Community Housing Development Organizations(CHDOs) and nonprofit organizations.

Any non-PJ Unit of Government


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A Nonprofit in a Local HOMEParticipating Jurisdiction (PJ):

Must have been approved by MSHDA as aCHDO;

Must leverage 100% of the HRF request from thelocal PJ.


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HRF Funds are Targeted

All HRF funds should be targetedto achieve our desired outcome,

to help create healthycommunities and neighborhoods.


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HRF Components:

Homeowner Assistance Homebuyer Assistance

Rental Rehabilitation

Neighborhood Preservation


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Homeowner Assistance

Enables existing homeowners to do

moderate rehabilitation.

Allowed as part of County Allocationprogram or Neighborhood PreservationProgram or other targeted approach

Incentive for homeowners in targetedprograms 50% of OCD funds forgivableover 5 years


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Targeted Homeowner

Applicants are encouraged to apply for targetedHO rehabilitation programs that do not duplicateCounty Allocation Programs.

Appropriate target areas are where other HRF

(or other MSHDA) investments have occurred around downtowns including Mainstreet andBlueprint DTs , NPP areas, NEZs etc.


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Leveraging for HO Projects

MSHDA encourages leveraging with other

sources

MSHDA will pay up to 10% of funds leveragedas a project delivery fee

Collaboration with weatherization encouraged($200 Million dollars available in 2009-2011 forweatherization in Michigan)

Visit www.mcaaa.org to find program near you


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Leveraging, cont.Federal Home Loan Bank of Indianapolis isanother leveraging source for homeowner andhomebuyer programs

MSHDA OCD will pay FHLB Lender up to $200for providing a NIP loan to an OCD funded HO

project

USDA RD funds may be available in rural areas

Participation in MSHDA PIP encouraged


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Homebuyer Assistance

Homebuyer Purchase Rehabilitation

Grantees may help buyers select a home theycan afford in the local market and manage the

necessary rehabilitation.

Activities usually involve moderate rehabilitationand down payment assistance.


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Homebuyer AssistanceAcquisition, Development, Resale

Grantees may develop property for resale in local targetarea.

Activities usually involve acquisition, substantial

rehabilitation, and/or new construction.

Poor homebuyer market means ADR programs more risky(60 unsold ADR units currently). Funding for ADR VERYlimited.


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Homebuyer Assistance

Down PaymentA

ssistance (without rehab)

Available through MSHDAs LINKS toHomeownership Program

Contact MSHDAs Homeownership Division at517-373-6840


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Homebuyer AssistanceNSP 1 Down Payment Assistance (with rehab)

Available through MSHDAs Homeownership Program

Foreclosed properties in high foreclosure risk areas

Up to $25,000 in DPA plus rehab. funds MSHDA 1stNSP 2nd mortgage is forgivable over 10 years

Contact MSHDAs Homeownership Division at 517-373-6840


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Rental RehabilitationGenerally done through local units of governmentwith code enforcement. Targetted residential or city-

wide only funded with HOME up to $14,999

Landlords must provide at least 25% of the projectcost.

Downtown rental program (creating space abovecommercial store fronts) - or in NPPs, is a higherpriority for OCD


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Downtown Rental Rehabilitation

Non CDBG Entitlement eligible for CDBG Entitlement Cities canapply for HOME funding

Preference given to: High capacity communities, (we encourage counties to apply) Projects ready to go (leverage financing in place) Strong local support tax incentives (NEZs, Brownfields etc) Mainstreet and/or communities with Historic designation

Larger projects (4-16 units) must have strong financial sponsor,evidence of market and long term financial viability


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Rental Rehabilitation

Recent change:

Up to $40,000 per unit in HOMEfunds is now allowed for creating new

units above commercial space indowntown buildings


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Rental Rehabilitation ComplianceCDBG: Initial Tenant on 51% of units

below 80% AMI FMR for 51% of unitsUnits must stay rental & meet HQS- 5 yrs

HOME: Initial tenants below 60% AMI,

subsequent below 80% (all HOME Units)Lower of FMR or HOME rent for

compliance period 5 yrs - $14,999 10 yrs

$15,000-$40,000 HOME $s


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Neighborhood Preservation

Primarily a HOUSING strategy, combining

HRF components. Includes non-housingactivities.

Provides support for comprehensivehousing and neighborhood revitalization

efforts in a target area.

Funding for planning grants usuallyprecedes funding for projects.


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Neighborhood PreservationNeighborhood Preservation activities thatsupport the targeted housing improvementstrategy:

Demolition

Public Improvements

Beautification

Marketing and Education, and

Business District Improvement


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You may apply for more thanone HRF component at a time

if..The housing problems you are addressing requiremultiple approaches, and;

Your application demonstrates that your organizationhas the capacity to implement a more complexprogram.


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To Apply for HRF Funds:

Use the Planning for Results section of theHousing Resource Fund (HRF) Guide available atthe MSHDA Web-Site www.michigan.gov/mshdawith your organizations leaders to identify thechanges you want to see in your target area as aresult of your proposed housing project.


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To Apply for the HRF:

Use the HRF Summary to determine funding foractivities under each component.

Complete application online during an HRFfunding window.

NPP projects may be submitted outside theapplication windows (are not yet on-line).


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2010 HRF ApplicationWindows

Round I: SpringApril 19 30, 2010

Round II: FallSeptember 20 October 1, 2010


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OCD Units Completed in 2009

Downpayment Assistance $ 30,000.00 3 $ 10,000.00

Homeowner rehab. $ 7,014,000.00 524 $ 13,385.50

Home Purchasew/rehab $ 1,167,000.00 41 $ 28,463.41

Acq. Dev. Resale $ 1,331,000.00 17 $ 78,294.12

Rental Rehab. $ 3,800,000.00 165 $ 23,030.30

Rental Dev. $ 1,393,000.00 28 $ 49,750.00

Total $14,705,000.00 775 $ 18,974.19


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Other MSHDA HOMEPrograms

Multi-Family Development including SupportiveHousing Projects

John Hundt 517-241-7207

Cities of Promise: Benton Harbor, Detroit, Flint,Highland Park, Hamtramck, Muskegon Heights,Pontiac, and Saginaw

Call CD Specialist


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Property Improvement LoanHomeowner Requirements:

Gross annual income cannot exceed $65k, andup to $74,750 in some areas.

Borrow up to $25k without equity; up to $50k

with equity.

Up to 20 years to repay.

Interest rates 4%, 6% or 8% based on grosshousehold income.

Most rehabilitation/improvements eligible (no

luxury improvements)

Manufactured and mobile homes subject tolower loan limits and shorter repayment period.

Landlord Requirements:No income restrictions.

Borrow average of $12k per unit, $60k peraddress; no max per borrower

OR;Borrow max $25k per unit, $100k max regardlessof address.

Up to 20 years to repay.

Interest rate flat 8%.

Most rehabilitation/ improvements eligible (noluxury improvements)

1-24 units, rents cannot exceed current MSHDArent limits.

Homeowner and Landlord Requirements: Minimum credit score of 620 (660 incertain cases). DTI cannot exceed 45%.


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2010 Consolidated Plan

Public input requested on draft C-Plan HOME, CDBG, ESG, HOPWA

www.michigan.gov/mshda

Please read draft plan and submitcomments as desired


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OCD Contact info

Questions?

Call your CD Specialist

Mshda MSHDA RD Development Meeting 317223 7

Documents

Transcript of Mshda MSHDA RD Development Meeting 317223 7