Housing Development Incentive Programs

Transcription

1 Incentive s USDA s Overview Rural Rental Multi-Family Direct s (Section 515) This program provides competitive loan financing for affordable multi-family rental housing for low-income, elderly, or disabled individuals and families. It is designed to assist qualified applicants that cannot obtain commercial credit on terms that will allow them to charge rents that are affordable to low-income tenants. USDA Direct Individuals, trusts, associations, partnerships, limited partnerships, nonprofit organizations, forprofit corporations, consumer cooperatives, most state and local governmental entities and federal-recognized tribes Rural areas with populations of 35,000 or less Other Eligibility Borrowers must have legal authority needed to construct, operate and maintain the proposed facilities and the services proposed. Purposes for New construction, substantial rehabilitation, construction management and purchasing, buying and improving land, providing necessary infrastructure Website: Dickinson Area Steve Lervik (701) Ext steve.lervik@nd.usda.gov Valley City Area Mark Schlenvogt (701) Ext mark.schlenvogt@nd.usda.gov Minot Area Alisa Dahl (701) Ext alisa.dahl@nd.usda.gov Devils Lake Area William Schafer (701) Ext william.schafer@nd.usda.gov Rural Rental Multi-Family Guaranteed s (Section 538) 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. 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. USDA guarantees multi-family loans made by lenders Individuals, limited profit and nonprofit organizations, corporations, partnerships, limited partnership, limited liability companies, Native American tribes, and public entities may apply to lenders Rural areas with populations of 35,000 or less lenders must be active in one of the following: Fannie Mae, Freddie Mac, Ginnie Mae, HUD, Federal Home Bank members, and state or local housing finance agencies New construction or substantial rehabilitation of rural rental housing Website: Dickinson Area Steve Lervik (701) Ext steve.lervik@nd.usda.gov Valley City Area Mark Schlenvogt (701) Ext mark.schlenvogt@nd.usda.gov Minot Area Alisa Dahl (701) Ext alisa.dahl@nd.usda.gov Devils Lake Area William Schafer (701) Ext william.schafer@nd.usda.gov Preservation s (Section 533) This program provides grants to sponsoring organizations for the repair or rehabilitation of housing occupied by low and very lowincome people in eligible rural areas USDA Most state and local government entities, nonprofit organizations, and federally recognized tribes Rural areas with populations of 35,000 or less - must have necessary background and experience with proven ability to perform the responsibility of repair and rehabilitation of low-income housing Repair and rehabilitation of single family or rental properties Website: Dickinson Area Steve Lervik (701) Ext steve.lervik@nd.usda.gov Valley City Area Mark Schlenvogt (701) Ext mark.schlenvogt@nd.usda.gov Minot Area Alisa Dahl (701) Ext alisa.dahl@nd.usda.gov Devils Lake Area William Schafer (701) Ext william.schafer@nd.usda.gov

2 Overview Farm Labor (Section 514 and 516) Single Family Home Ownership Direct s (Section 502) This program provides affordable financing to develop housing for year-round and migrant or seasonal domestic farm laborers. It assists qualified applicants that cannot obtain commercial credit on terms that will allow them to charge rents that are affordable to low-income tenants. This program assists low- and verylow-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant s repayment ability. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income USDA Direct s and s USDA Direct Individuals; public, private nonprofit organizations; broadbased nonprofit organization; limited partnership with nonprofit general partner (not eligible for grants); nonprofit organization of farm workers; and federally recognized Native American tribes Low and very-low income families and individuals based on county and family size urban or rural areas with demonstrat ed need. Open country not associated with an urban or MSA area or any community that has less than 35,000 population Other Eligibility Borrowers must have sufficient qualifications and experience to develop and operate the project must demonstrate a willingness and ability to repay debt, and property must be their primary residence. *Other applicant and property eligibility requirements apply; contact area RD office. Purposes for can be used for construction, improvement, repair and purchase of housing for domestic farm laborers Purchasing, building, repairing, renovating or relocating home that will be applicants primary residence, purchasing/preparin g sites, including water and sewage facilities Website: Dickinson Area Steve Lervik (701) Ext steve.lervik@nd.usda.gov Valley City Area Mark Schlenvogt (701) Ext mark.schlenvogt@nd.usda.gov Minot Area Alisa Dahl (701) Ext alisa.dahl@nd.usda.gov Devils Lake Area William Schafer (701) Ext william.schafer@nd.usda.gov Website: Bismarck Area - Barry Borstad (701) Ext barry.borstad@nd.usda.gov -Sandra Dewald (701) Ext Sandra.dewald@nd.usda.gov Minot Area Michele Brossart (701) Ext Michele.brossart@nd.usda.gov Single Family Home Ownership Guaranteed s (Section 502) This program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers. USDA guarantees single-family loans made by lenders Moderate, low and verylow income families or individuals based on county and family size Open country not associated with an urban or MSA area or any community that has less than 35,000 population Property must be applicant s primary residence. Must be an approved lender. *Other applicant and property eligibility requirements apply; contact area RD office. ND Department of Commerce Division of Community Services s HOME This is a federal program designed to create partnerships among government entities and the private sector in order to make affordable housing available to low-income persons. The two primary activities of the program are homeowner assistance and rental production/assistance. HUD Federal - equity investments, interest-bearing loans or advances, noninterest-bearing loans or advances, interest subsidies, deferred payment loans, and grants Applicant s Median Family Income must not exceed 80% of average Median Family Income in given area. Further income targeting and rent controls are required when assisting rental housing units. in ND with a need. Projects are required to have 25% match for funds they receive, and CHDO (community housing development organization) projects must have a minimum of 10% owner equity invested in the project. Purchasing, building, repairing, renovating or relocating home that will be applicant s primary residence, purchasing/preparin g sites, including water and sewage facilities. Also may refinance an existing 502 Direct or Guarantee loan Homeownership assistance, homeowner rehabilitation activities, rental rehabilitation/ production and security deposits. Website: Bismarck Area Tim Wanner (701) Tim.wanner@nd.usda.gov Dickinson Area Mary Kubischta (701) Ext Mary.kubischta@nd.usda.gov Submit any questions regarding the HOME program to the HOME program staff online at: - Click Community - Click HOME - Click Submit Your Own Question

3 Overview Other Eligibility Purposes for Renaissance Zone This program is a tool to help cities revitalize their communities. By offering both state and local tax incentives for 5 years, both residents and business owners are provided with an incentive to invest in the community. The program is unique in that cities develop handcrafted development plans that address each city's specific goals. State and Local Tax Incentives To apply, a city must first have a locally adopted comprehensive or strategic plan in place, and then create a development plan. ND cities and municipalities. -Size of Zone is dependent upon size of city applying for Zone (max of 49 blocks). -Renaissance Zone must have both residential and commercial properties. - -Community as a whole needs to be involved in creating Zone. -Projects approved for Zone need to clearly relate to the long term broader development plans of the city. Purchase, rehabilitation, new construction purchase, lease, leasehold improvements and Historical preservation. For questions, contact the Renaissance Zone Administrator: Rikki Roehrich - (701) For tax related questions, please contact Lorie Bowker - (701) Regional Council s Community Block s This program provides financial assistance to eligible units of local Governments in the form of grants and loans for Public Facilities, Rehabilitation, and Economic projects. The primary purpose of the CDBG program is the development of viable communities, by providing decent housing, suitable living environments and expanding economic opportunities, principally for persons of low and moderate income. and funds, loan guarantees units of Local Government Area in ND with a need. The primary beneficiaries of these projects must be very low and low income individuals. rehabilitation of very low and low income homeowner units and rental units, water and sewer projects, removal of architectural barriers, fire halls, ambulances, etc., cities and counties receive funds to loan/grant to businesses which create jobs for low income persons. For questions or more information, contact the Regional Council in your area: -Tri County Regional Association: (701) shirelles@ci.williston.nd.us -Souris Basin Planning Council: (701) info@sourisbasin.org -North Central Planning Council: (701) sandyncpc@gondtc.com -Red River Regional Council: (701) rrrc@nd.gov -Lake Agassiz Regional Council: (701) info@lakeagassiz.com -South Central Regional Council: (701) scdrc@daktel.com -Lewis and Clark Regional Council: (701) lcrdc@lewisandclarkrdc.org -Roosevelt-Custer Regional Council: (701) info@rooseveltcuster.com

4 North Dakota Finance Agency s Overview Other Eligibility Purposes for Incentive Fund The Incentive Fund (HIF) supports the development of affordable multi-family housing units for essential service workers, main street employees and fixed-income households. Forgivable zerointerest loan with repayment terms determined on a project specific basis as necessary to achieve project feasibility. Units of local, state or tribal government; local or tribal housing authorities; community action agencies; regional planning councils; nonprofit or for-profit developers. in ND with need. *For other eligibility requirements, contact the Planning and Division of the NDHFA. -New construction of multi-family housing -Substantial rehab of uninhabitable residential structures or habitable structures at risk of becoming uninhabitable due to deterioration. -Substantial rehab of existing uninhabitable units when a minimum of 50 percent of units in building are uninhabitable due to flooding/other natural disaster -Adaptive reuse of existing non-residential buildings that create additional housing units -Retirement of market rate debt to convert market rate units to affordable units -Acquisition rehab of projects opting out of a HUD or USDA-RD contract -Acquisition of publiclyowned essential service worker housing by private entity with commitment of continued affordability Planning and Rural This program provides lowinterest, short-term loans for predevelopment soft costs, land acquisition, site development and any other cost associated with producing housing in difficult to develop areas. Lowinterest, Short-term funds Communities or non-profit organizations representing/working in partnership with communities. For-profit developers may also be eligible, at the sole discretion of NDHFA. Communities located within an area meeting the USDA Rural definition of rural (population of less than 35,000). A minimum of 25% equity must be contributed to the project. Pre-development soft costs, land acquisition, site development and any other cost associated with producing difficult to develop housing in rural areas. Planning and Construction Guarantee The Construction Guarantee provides construction loan guarantees to lenders for contractors who build or rehabilitate affordable single family housing on a speculative basis for resale in difficult to develop rural communities. (Nonspeculative construction may be considered on case basis at discretion of NDHFA). NDHFA guarantees construction loans made by lenders lenders include bank, trust company, national banking association, savings and loan association, credit union or other financial institution authorized forbusiness within the State which customarily provides service or otherwise aids in the financing of construction loans. Rural communities (pop. less than 35,000) that are more than 10 miles away from any non-rural communities. -Must be a need for affordable housing in the community -Local governing body must support the construction -Max of 3 guarantees per contractor at a time -Max of 5 guarantees per community at a time Construction or rehabilitation of affordable single family housing for resale. Planning and

5 Overview Low- Income Tax Credit This program provides an incentive for the production or rehabilitation of affordable rental housing. Property owners receive federal income tax credits for up to 10 years based on capital investment and level of commitment to low-income tenancy. Federal Income Tax Credits Other Eligibility Developers of qualified low-income housing, as defined by the Internal Revenue Code (Section 42). in ND with need. *For other eligibility requirements, contact the Planning and Division of the NDHFA. Purposes for New construction, substantial rehabilitation and acquisition of existing properties that will be substantially rehabilitated. The size of the project can vary from a detached, singlefamily home being used as a rental unit to a large apartment complex Planning and Exemption from Property Taxation Residential rental property, inclusive of land and administrative and auxiliary buildings, that is owned by a qualified nonprofit entity and used as affordable housing shall be exempt from taxation for the property s period of affordability Tax Exemption Qualified non-profits who own properties that NDHFA certifies to the county tax director of tax equalization that the property meets the required conditions under Section (43) of the North Dakota Century Code. N/A *For other eligibility requirements, contact the Planning and Division of the NDHFA. N/A Planning and Helping HAND This program supports the needs of lower-income households through grants to targeted single-and multifamily housing rehabilitation programs. Federal s Funding is available to non-profit organizations by invitation from NDHFA. assistance is not directly available to individuals or families. in ND with need. - Existing housing projects with project-based rental assistance are not eligible to receive funding. - Matching funds, from a non-ndhfa source, of at least 25% of total project costs are required. New construction or rehabilitation of existing single family or multi-family housing programs (inclusive of homeless shelters). - Must be used to address housing needs of families/individuals with household incomes that do not exceed 80% of the HUD median income for the county in which the property is located -May not be used for general operating expenses. Planning and Rural Rehab This program provides a lowcost revolving loan fund for the rehabilitation of single- or multi-family properties. Low Interest s -Homeowners with household income of 100% of area median income or less -Owners, general partner or other authorized agent for eligible multi-family properties Single family and multi-family properties located within an area meeting the USDA Rural definition of rural (pop. of less than 35,000) -Multi-family properties must target at least 20% of its units to households with incomes at or below area median income. -Minimum 25% equity investment into the project is required -Applicant must own the property at time of application improvement to the property to a decent, safe condition, requiring more than routine/minor repairs or improvements that may vary in degree from gutting or extensive reconstruction to cosmetic improvements combined with cure of substantial accumulation of deferred maintenance, the construction of additions, the rehabilitation of an attached or detached garage, driveway, and sidewalks, improvements to achieve energy efficiency. Planning and

6 Bank of North Dakota Overview Other Eligibility Purposes for Flex PACE or Flex PACE Affordable This program is designed to assist in the financing of affordable multi-family housing and childcare facility developers. It can be used in conjunction with other state or federal programs targeted to affordable housing. A lead lender is required and BND will participate in percent of the total loan. The community s share of the interest buydown may be cash or in-kind contributions such as donations of property, infrastructure like water or sewer, or even selling land for below market rate. BND in partnership with lead lender. CommunityWorks North Dakota profit or non-profit borrower. affordablehousing project located in North Dakota. program can be used in conjunction with other state or federal programs targeted to affordable housing. *For other eligibility requirements, contact the Bank of North Dakota. Permanent financing of affordable multi-family housing units. BND may also be involved in the construction financing if the lead lender chooses, but there will not be interest buyddown during construction. For more information on any of these programs, contact Bob Humann from the Bank of North Dakota: bhumann@nd.gov Dream II Financing Recognizing a need for predevelopment, acquisition and construction financing for housing projects throughout North Dakota, this program offers a loan fund for affordable housing and development opportunities to revitalize communities and improve the standard of living and quality of life for ND residents. Fund For profit and not for profit entities, public and private entities Area in ND with demonstrat ed need. Project should include at least one: - Located in distressed or underserved communities. -Located in areas suffering housing/affordable housing shortages. - Address low and moderate income housing needs. - Serves underserved populations. - Within a redevelopment area. - Would have significant, positive impact on area s economy. - Assures continuation, viability, health or safety of existing affordable housing. Predevelopment costs, property acquisition, new construction and rehabilitation, infrastructure, permanent financing, and other bridge and gap loans. For questions or inquiries about this program, contact Paul Rechlin, CommunityWorks North Dakota: (701) and Urban s Assisted Living Conversion (ALCP) This program provides funding for the physical costs of converting some or all of units in an eligible development into an assisted-living facility or service-enriched housing designed to accommodate. Private nonprofit owners of Section 202, Section 8 project-based (including Rural Services Section 515), Section 221(d)(3) Below Market Interest Rate, and Section 236 housing developments that are designated primarily for occupancy by the elderly -Existing project must be at least 5 years old -For housing being converted to an assisted-living facility, the facility must be licensed and regulated by the state Unit configuration, common and services space, and any necessary remodeling consistent with HUD s or the state s statute or regulations For questions about FHA s and s, contact the FHA Resource

7 Overview Other Info/Eligibility Purposes for Mortgage Insurance for Cooperative (Section 213) This program insures mortgages made by private lending institutions on cooperative housing projects of five or more dwelling units to be occupied by members of nonprofit cooperative ownership housing corporations FHA insures mortgages made by HUDapproved lenders Nonprofit cooperative ownership housing corporations or trusts organized to construct homes for members of the corporation or beneficiaries of the trust; and qualified sponsors who intend to sell the project to a nonprofit corporation or trust *For other eligibility requirements, contact the FHA Resource Center New construction, rehabilitation, acquisition, improvement, or repair of a project already owned, and resale of individual memberships; construction of projects composed of individual family dwellings to be bought by individual members with separate insured mortgages; and construction or rehabilitation of projects that the owners intend to sell to nonprofit cooperatives For questions about FHA s and s, contact the FHA Resource Manufactured Home Parks Mortgage Insurance (Section 207) This program insures mortgage loans to facilitate the construction or substantial rehabilitation of multifamily manufactured home parks. Its purpose is to promotes the creation of manufactured home communities by increasing the availability of affordable financing and mortgages. FHA insures mortgages made by HUDapproved lenders Investors, builders, developers, cooperatives, and others meeting HUD s requirements may apply to an FHAapproved lending institution after conferring with the local HUD office HUDapproved area in which market shows need for such housing -Home Park must have 5 or more spaces -Contractors for new construction and substantial rehabilitation projects must comply with prevailing wage requirements under the Davis-Bacon Act. Construction or rehabilitation of manufactured home parks. For questions about FHA s and s, contact the FHA Resource Mortgage Insurance for Rental for the Elderly (Section 231) This program is designed to assure a supply of rental housing suited to the needs of the elderly or handicapped. FHA insures mortgages made by private lending institutions to build or rehabilitate multifamily projects. FHA insures mortgages made by HUDapproved lenders -Investors, builders, developers, public bodies, and nonprofit sponsors may qualify for mortgage insurance. - Congregate care projects with central kitchens providing food service are not eligible -Project must consist of 5 or more units - FHA may insure up to 100 percent of the Federal Commissioner s estimate of value after completion for nonprofit and public mortgagors, but only up to 90 percent for private mortgagors - All elderly (62 or older) and/or persons with disabilities are eligible to occupy units in a project insured under this program construction or rehabilitation of rental housing for the elderly and/or persons with disabilities For questions about FHA s and s, contact the FHA Resource

8 Overview Other Info/Eligibility Purposes for Multifamily Rental for Moderate- Income Families (Section 221(d)(3) and (4)) Supportive for the Elderly (Section 202) These are HUD s major insurance programs for new construction or substantially rehabilitated multifamily rental housing. The FHA insures mortgages made by private lending institutions to help finance construction or substantial rehabilitation of multifamily rental or cooperative housing for moderate-income or displaced families This program is designed expand the supply of affordable housing with supportive services for verylow income elderly persons. The Section 202 program provides capital advances and project rental assistance contracts to eligible applicants FHA insures mortgages made by HUDapproved lenders Capital advances and project rental assistance contracts Section 221(d)(3) is available to public, nonprofit, and cooperative mortgagors. Section 221(d)(4) mortgages are available to profitmotivated sponsors Private, nonprofit organizations and consumer cooperatives may qualify for assistance, and may partner with private, forprofit entities so long as the sole general partner is a nonprofit organization that meets the statutory requirements -Must consist of 5 or more units - SRO projects may consist of units that do not contain a complete kitchen or bath -Section 221(d)(3) may insure up to 100% of replacement costs for new construction for public, nonprofit and cooperative mortgagors, while Section 221(d)(4) only insures up to 90% -Section 221(d)(3) suspended unless the project to be financed also receives Low Income Tax Credits (LIHTC). -Capital bear no interest and repayment is not required as long as the housing remains available for occupancy by very low-income elderly persons for at least 40 years -Supportive services must be appropriate to the varying needs of the elderly residents and must allow for persons to age-in-place and live independently -Occupancy is open to very lowincome households which include at least one person 62 years of age or older. Construction or substantial rehabilitation of multifamily, rental or cooperative housing. Projects in both cases may consist of detached, semi-detached, row, walkup, or elevator structures -Capital funds must be used in the development of housing through new construction, rehabilitation, or acquisition with or without rehabilitation -Project rental assistance funds provided to cover difference between HUDapproved operating costs and amount residents pay (each resident pays 30 percent of adjusted income). Rental assistance funds may also be used to provide supportive services and to hire a service coordinator For questions about FHA s and s, contact the FHA Resource For questions about FHA s and s, contact the FHA Resource Supportive for Persons with Disabilities (Section 811) This program helps expand the supply of affordable housing with supportive services for persons with disabilities. It provides very low-income persons with disabilities options that allow them to live independently but in an environment that provides support activities. Section 811 provides capital advances and project rental assistance contracts to eligible applicants Capital advances and project rental assistance contracts Nonprofit organizations with a Section 501(c)(3) IRS tax exemption may qualify for assistance, and may partner with private, for-profit entities so long as the sole general partner is a nonprofit organization that meets the statutory requirements -Capital bear no interest and repayment is not required as long as the housing remains available for occupancy by very low-income elderly persons for at least 40 years -Occupancy is open to very lowincome persons with disabilities who are at least 18 years old and less than 62 years of age -Capital funds must be used in the development of housing through new construction, rehabilitation, or acquisition with or without rehabilitation -Project rental assistance funds provided to cover difference between HUDapproved operating costs and amount residents pay (each resident pays 30 percent of adjusted income). Rental assistance funds may also be used to provide supportive services and to hire a service coordinator For questions about FHA s and s, contact the FHA Resource

9 Overview Other Info/Eligibility Purposes for Choice Neighborhoods This program provides competitive planning grants and implementation grants to transform neighborhoods of extreme poverty with public and HUD-assisted housing into functioning, sustainable mixed-income neighborhoods with appropriate services, public assets, transportation and access to jobs, and schools, including public schools, community schools, and charter schools. Federal Local governments, public housing authorities, nonprofit organizations and for profit organizations that apply in partnership with a public entity with need - ees must undertake comprehensive local planning with input from residents and the community - Strong emphasis is placed on local community planning for school and educational improvements, including early childhood initiatives - ees shall create partnerships with other local organizations including assisted housing owners, service agencies and resident organizations Preservation, rehabilitation and transformation of public and HUD-assisted housing. may also be used for the conversion of vacant or foreclosed properties to affordable housing Public and Indian Office: HOPE VI: Revitalization of Severely Distressed Public This program was designed to facilitate the transformation of public housing by encouraging public housing agencies (PHAs) to seek new partnerships with private entities to create mixedfinance and mixed-income affordable housing. It has been expanded to assist local governments in the production of affordable housing in Main Street rejuvenation projects Competitive Public housing agencies and, for Main Street s only, smaller communities as defined in Section 24(n) with need PHAs provide matching contributions in amounts at least equal to five percent of the grant amount Permitted activities include, but are not limited to: the capital costs of demolition, major reconstruction, rehabilitation, and other physical improvements; the provision of replacement housing; management improvements; planning and technical assistance; and the provision of supportive services Public and Indian Office: Public Capital Fund This program provides capital and management funding for public housing agencies Capital Fund s Public housing agencies - Not more than 20% of a PHA s capital funds may be transferred to operations if the PHA s plan provides for such use. However, non-troubled PHAs that own or operate fewer than 250 units and have also maintained inventory in good condition have full flexibility in how they use Capital and Operating funds for eligible activities under Sections 9(d)(1) and 9(e)(1) - PHAs may request HUD approval to borrow funds from the private market to make improvements to and/or develop additional public housing, by pledging a portion of their future annual Capital Fund grants to make debt service payments. development, financing, and modernization of public housing projects, development of mixedfinance projects; vacancy reduction; addressing deferred maintenance needs, replacement of obsolete utility systems and dwelling equipment; planned code compliance; management improvements, demolition and replacement; resident relocation; various capitol expenditures; homeownership activities, improvement of energy and water-use efficiency; integrated utility management to maximize energy conservation and efficiency Public and Indian Office:

10 Overview Other Info/Eligibility Purposes for Federal Guarantees for Financing for Tribal Activities (Title VI) Indian Community Block (ICDBG) Indian Block (IHBG) This program authorizes HUD, through the Office of Native American s, to guarantee obligations issued by tribes or tribally designated housing entities (TDHEs) with tribal approval, to finance eligible affordable housing activities under Section 202 of the Native American Assistance and Self-Determination Act (NAHASDA) and housingrelated community development activities consistent with the purposes of NAHASDA. This program offers grants on a competitive basis to eligible Indian tribes and Alaska Native Villages to improve the housing stock, provide community facilities, make infrastructure improvements, fund microenterprises, and expand job opportunities This program authorizes housing assistance under a single block grant to eligible Indian tribes or their tribally designated housing entities (TDHEs). Guarantee Competitive Indian tribes and tribally designated housing entities that are IHBG recipients Indian tribes, bands, groups, or nations, including Alaskan Indians, Aleuts, and Eskimos and Alaska Native Villages, that are eligible for assistance under the Indian Self- Determination and Education Assistance Act or had been eligible under the state and local Fiscal Assistance Act of 1972 Indian tribes and tribally designated housing entities. *See eligible applicants *See eligible applicants *See eligible applicants No guarantee could be approved if the total outstanding obligations exceed five times the amount of the grant for the issuer, taking into consideration the amount needed to maintain and protect the viability of housing developed or operated pursuant to the U.S. Act of Requires issuers to pledge current and future Indian Block (IHBG) appropriations to the repayment of the guaranteed obligations - may not be used for constructing or improving government facilities, for new housing construction (unless carried out by an eligible nonprofit organization), for general government or income expenses, for operating or maintenance expenses, for political activities, or to purchase equipment affordable housing activities under Section 202 of the Native American Assistance and Self- Determination Act (NAHASDA) and housingrelated community development activities consistent with the purposes of NAHASDA. - rehabilitation, acquisition of land for housing, and assistance for homeownership opportunities for low- and moderate-income persons; construction of single- or multi-use facilities, streets, and public facilities, as well as for economic development projects, especially those sponsored by nonprofit tribal organizations or local development corporations -Indian housing assistance (modernization or operating assistance for housing previously developed or operated pursuant to a contract between HUD and an Indian housing authority) - of add. affordable housing --related and management services - Safety, security, and law enforcement measures and activities app. to protect resident from crime - activities under model programs, if specifically approved by HUD Public and Indian Office: Public and Indian Office: Public and Indian Office:

11 Overview Other Info/Eligibility Purposes for Guarantees for Indian (Section 184) Rural Stability Assistance Rural Innovation Fund Self-Help Homeownership Opportunity (SHOP) The purpose of the program is to provide access to private mortgage financing to Indian families, IHAs, and Indian tribes that could not otherwise acquire housing financing because of the unique legal status of Indian lands. This program provides rehousing and help for individuals moving from emergency or transitional shelters to permanent housing, or improves the housing situations of individuals and families who are homeless or in the worst housing situations in the geographic area; stabilizes the housing of individuals and families who are in imminent danger of losing housing; and improves the ability of the lowest-income residents of the community to afford stable housing. This program provides for capacity building at the state and local level for rural housing and economic development, and the program supports innovative housing and economic development activities in rural areas. This program provides competitive grants to national and regional nonprofit organizations and consortia that have the capacity and experience in providing or facilitating selfhelp homeownership housing opportunities Guarantee Competitive Competitive Indian families, Indian housing authorities, and Indian tribes. Organizations eligible to receive a grant under this program include private nonprofit entities and county and local governments. Local rural nonprofit organizations, community development corporations (CDCs), federally recognized Indian tribes, state housing finance agencies (HFAs), and state economic development and/or community development agencies National and regional nonprofit organizations and consortia *See eligible applicants Rural -Authorizes Indian tribes to assume responsibility for federal environmental reviews - This guarantee authority is freestanding and has its own guarantee fund *For other eligibility requirements, contact HUD s Special Needs and Assistance s Office *For other eligibility requirements, contact HUD s Office of Community Planning and -Homebuyers and community participants must contribute a significant amount of sweat equity toward the construction of their homes -Units must be decent, safe, sanitary non-luxury units and comply with local building/safety codes and standards. Units must be sold to eligible lowincome homebuyers at prices below the prevailing market price can be used to construct, acquire, refinance, or rehabilitate single family housing located on trust land or land located in an Indian or Alaska Native area. Rent, mortgage, or utility assistance, security deposits, relocation assistance, short-term emergency lodging, construction of new housing units to provide transitional or permanent housing, acquisition or rehabilitation of a structure to provide nonemergency transitional or permanent housing, property leasing, rental assistance, and payment of operating costs for assisted housing units Capacity building at the state and local level for rural housing and economic development, Innovative housing and economic development activities in rural areas Land acquisition (including financing and closing costs), infrastructure improvements (installing, extending, constructing, rehabilitating, or otherwise improving utilities and other infrastructure), and administrative costs (up to 20 percent of the grant amount) Public and Indian Office: Special Needs and Assistance s Office: (202) Office of Community Planning and : or (202) Office of Community Planning and : or (202)

12 Overview Other Info/Eligibility Purposes for Rehabilitation Mortgage Insurance (Section 203(k)) This is HUD s primary program for the rehabilitation and repair of one to four family properties Insurance All homeowners that can make the monthly mortgage payments. individual condominium units may be insured if they are in projects that have been approved by FHA and there are fewer than 4 units in the building. -Cooperative units are not eligible -Rehabilitation is limited to only the interior of a unit. -There are other limiting requirements for the use of the 203(k) loan in a condominium unit. Rehabilitation of an existing property; finance rehabilitation and refinancing of the outstanding indebtedness of a property; and finance purchase and rehabilitation of a property Single Family Property Disposition (Section 204(g)) The purpose of this program is to dispose of single family properties containing one to four units in a manner that expands homeownership opportunities, strengthens neighborhoods and communities, and ensures a maximum return to the mortgage insurance funds. Affordable disposal of single-family properties Individual bidders are eligible if they can finance their home purchase and provide an earnest money deposit with their bids. Nonprofit and government entities have special eligibility requirements, as detailed on HUD s website - Individual parties may submit an offer through the Internet or a real estate broker registered with HUD - Nonprofit and government entities may purchase properties at a discount without a real estate broker Listings of properties in inventory are available on the Internet New Construction or Substantial Rehabilitation of Nursing Homes, Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities (Section 232); Purchase or Refinancing of Existing Facilities (Section 232/223(f)) This program allows HFA to insure mortgages made by private lending institutions to finance construction or renovation of facilities to accommodate 20 or more patients requiring skilled nursing care and related medical services, or those in need of minimum but continuous care provided by licensed or trained personnel. FHA insured mortgage loan Developers, private owners, and private nonprofit corporations or associations, and public agencies (nursing homes only), or public entities that are licensed or regulated by the state to accommodate convalescents and persons requiring skilled nursing care or intermediate care, may qualify for mortgage insurance. -Patients requiring skilled nursing, intermediate care, assisted living and/or board and care are eligible to live in these facilities -Existing projects are eligible for purchase or refinancing with or without repairs (and not requiring substantial rehabilitation) under Section 232/ Section 223(f) -Nursing home operators are subject to new regulations adopted in 2012 Construction or renovation of facilities to accommodate 20 or more patients requiring skilled nursing care and related medical services, or those in need of minimum but continuous care provided by licensed or trained personnel -Major equipment needed to operate the facility may be included in the mortgage. Facilities for day care may be included.