REHAB IN

RURAL COMMUNITIES:

Janice Kocherjanice.kocher@ut.usda.gov

Jess Petersonjesspeterson@utah.gov

Marilyn Vogrinecmvogrinec@seualg.utah.gov

BUILDING STRONGER COMMUNITIES

USDA RURAL

DEVELOPMENT

HOUSING

PROGRAMS

Mission Statement

“Increase economic opportunity and improve the quality of life in rural America.”

— Business and cooperative programs

— Community programs— Housing Programs

Loan Program

100% financing (no down payment required).

Subsidized loans down to 1%.

Available to low- and very low-income families.

Funding is limited.

33- to 38-year term, fixed rate.

502 Direct

— Loan funds for participants

are provided through the

502 Direct Loan Program.— Groups of 6 to 8 families

work together to complete

their homes.— No one moves in until all the

homes are complete.— Program has been around

since 1971.— Utah’s first grantee started

in 1989.— We currently have 8

participating grantees.

Mutual Self-Help Model

Benefits

Leveraging of funds (federal and Olene Walker).

Sweat equity.

Homeowners learn life-changing skills that may lead to better jobs and that enable them to maintain their homes.

Assistance Grant

Provides homeownership education.

Loan packaging.

Construction supervision.

523 Technical

Loans and Grants

Remove health and safety hazards.

Improve or modernize a home:— Windows— Furnace— Repair or replace roof

Make homes accessible for people with disabilities.

Home Improvement

Loan Eligibility

Properties must be in a rural area.

Applicants must show evidence of home ownership (tax notices, deeds).

Must be very low-income (50% AMI) or below.

Loan Rates and Terms

Maximum loan amount: $20,000.

Interest rate: 1%.

Term: Not to exceed 20 years.

Grant Eligibility

— 62 years old or older— Must show evidence of

home ownership— Do not have repayment

ability for a loan

— Home in a rural area— Must be very low-income

(50% AMI) or below

Grant Amount

$7,500 lifetime assistance.

No repayment after five years.

Maximum

Housing Program

102% financing.

No down payment required.

30-year term, fixed rate.

Available to low- and moderate-income families.

502 Guaranteed

How It Works

Borrower makes application to an approved lender.

Lender underwrites the loan.

Underwritten loan submitted to Rural Development.

Rural Development issues a conditional commitment, allowing the lender to close.

— 100% financing with no

down payment requirement— 2% up-front fee may be

— Subsidy neutral program— Utah provided 2500+

families the opportunity to

own a home

Benefits

514/515/516 Multi-Family Housing Programs

Provides funding opportunities for non-profits and for-profit corporations to build affordable housing projects.

Funding is provided through the Notice of Funds Available (NOFA) system.

Revolving Loan Fund

Funding provided through the NOFA system (once a year).

Used to preserve and rehabilitate 515 multi-family housing projects.

Olene Walker partnership.

and Rehabilitation

Preservation

Multi-Family Housing

Up to a 90% government guarantee.

Eligible purposes:— New construction— Acquisition with

rehabilitation of at least $6,500/unit

— Housing with five or more adequate units

538 Guaranteed

Eligible Uses

All hard costs.

Soft costs—professional services, bond fees, developer’s fees, land acquisition and development, and financing costs

Eligible Borrowers

Individuals, partnerships, non-profits, and for-profit organizations.

State and local agencies, trusts, Indian tribes.

Work with an approved lender.

Preservation Grant

Funding provided through the NOFA process.

Non-profit, public bodies, and Native American tribes renovate deteriorating homes and rental properties.

533 Housing

Utah Group Work Camps

The purpose of Utah Group Work Camps is to rehabilitate Native American homes on the Navajo Reservation.

Coolest partnership EVER. State, federal, and local governments, banks, and a faith-based organization working together.

History

Started in 2000.

From 2000-2012:— 4,225 volunteers— 132,932 volunteer

hours— 143,932 total project

hours— 613 homes completed

Group Work Camps (faith-based organization) provides most of the volunteers.

Between 255 and 450 children participate each year.

Week-long camp.

Children pay to go to camp.

Chaperones provide transportation to work sites.

How It Works

July-January—Chapter houses collect applications

January-February—Weatherization staff visits site, qualifies applicants

April—Site writing (determines what work will be done and how much it will cost

June or July—Work camp is held

Weatherization Staff

— Roof replacement— Siding repair/replacement— Mobile home skirting— Wood stove replacement— Chimney repair/replacement

— Exterior paint— Window replacement— Porch repair/replacement— Shuffle ramp installation or

replacement

Work Performed

Leverage funds.

More families served.

Find solutions to problems.

Working toward a common goal.

of Partnerships

The Importance

Locate the state office (rurdev.usda.gov).

Set up an appointment with the Housing Program Director.

Look for partnership opportunities.

USDA-RD

Working with

SINGLE FAMILY

REHABILITATION and

RECONSTRUCTION

PROGRAM

What is the SFRRP?

The SFRRP also offers direct reconstruction loans to homeowners where the cost to rehabilitate the home exceeds the cost of a new home.

The SFRRP offers direct rehabilitation loans to enable homeowners to maintain safe, decent and livable conditions.

— Low-income (<80% AMI)— Own the home and the land

on which it resides— Owner occupied

— Primary residence— Live in rural Utah— Single family property (1-4

units)

OWHLF Basic Qualifications

OWHLF Guidelines

Manufactured homes built prior to 1976, reconstruction is an option, rehabilitation is not.

No open judgments or liens.

Property taxes must be current.

OWHLF Terms

Payments are not bigger than 31% of the household income.

Very flexible loan terms and interest rates.

Emergency Grant

True emergency.

Below 80% AMI.

Grants up to $4,999.

Is this the last resort?

OWHLF

— 60% AMI or below— Must meet one or more of the following criteria:

CDBG Basic Qualifications

62 years old Dependent children 10 years old or

younger Extraordinary medical expenses

A permanent household member has a disability that requires modifications to the home to accommodate the disability

CDBG Guidelines

Manufactured homes built prior to 1976, rehabilitation is not an option.

No open judgments or liens.

Property taxes must be current.

CDBG Terms

Up to $10,000.

Once in a lifetime.

No repayment after five years.

SINGLE FAMILY

REHABILITATION in

RURAL UTAH

Goal of Rehab

Remedy safety, sanitary, and code issues.

— Roofing— Plumbing— Electrical— Modifications

Bathroom Ramps Widen doors

— Flooring— Sewer issues

Lateral Beneath home

— Windows— Insulation— Guardrails,

handrails, and

grab bars— Drainage issues— Mechanical

Water heater Furnace

What types of problems do we correct?

Bathroom Modifications

BEFORE AFTER

Health and Safety

BEFORE AFTER

Health and Safety

BEFORE AFTER

Drainage and Safety

BEFORE AFTER

Access Modifications

BEFORE AFTER

Electrical

AFTERBEFORE

Roofing, Siding, Rain Gutters

BEFORE AFTER

Wheelchair Modifications

BEFORE AFTER

Siding and Room Additions

BEFORE AFTER

Leveraging

— CDBG Set aside for single family

rehab

— OWHLF Currently state funds

More flexible

— USDA-RD 504 Loans 504 Grants (62+)

— Weatherization

Challenges

— Age of housing stock Average year built between

1910 and 1960

— Occupancy during rehab

— Hidden issues Mold Insufficient structure Lead-based paint

SELF-HELP

ACQUISITION

REHAB

— Mortgage includes repair

money— Homeowner sweat provides

the equity— Construction supervisor

works one-on-one with

homeowner

— Win-win situation Community/neighborhood wins

– home is improved avoiding blight

Homeowners win – gain experience & knowledge to maintain home

Homeowners win – have equity when they move into home

USDA wins – gains an improved asset

Self-Help Acquisition Rehab

— USDA — Provides first mortgage

— OWHLF— Provides $15,000 second

mortgage

— CDBG— Provides closing cost assistance

up to $3,000— Deferred, no interest loan

— Weatherization— Possible after move-in if

qualified

Leveraging

— Motivation of homeowner— Distance between projects— Providing the “right” tools at

the “right” time— Coordination between

agencies

— Inventing the wheel Each program structured

differently How to …

— Quantity purchasing

impossible Each project has different

components

Challenges

Flickr user arbyreedFlickr user eflon

Image Credits

Janice Kocherjanice.kocher@ut.usda.gov

Jess Petersonjesspeterson@utah.gov

Marilyn Vogrinecmvogrinec@seualg.utah.gov

QUESTIONS?