Homeownership Initiatives

Transcription

1 Homeownership Initiatives NEIGHBORHOOD IMPACT PROGRAM TRAINING DATE: PRESENTED BY: Ronna Edwards, Community Investment Compliance Analyst II

2 Neighborhood Impact Program AVAILABLE TO ANY FHLBI MEMBER NIP Neighborhood Impact Program Owner-occupied rehabilitation for eligible homeowners Funds are available on a first-come, first served basis Each member could potentially access a maximum of $300,000, pending availability of funds 2

3 Neighborhood Impact Program NIP: DEFERRED MAINTENANCE REPAIRS 3

4 NIP Grant Details REPAIRS FOR OWNER-OCCUPIED PROPERTIES Each homeowner can request up to $7,500 for qualified repairs Each repair must be supported by two independent bids Owner-occupants must have resided in the home for at least 18 months prior to enrollment Must be current on mortgage and taxes Household income must be 80% AMI Funds can only be used for eligible repairs 4

5 NIP Repairs WHAT REPAIRS ARE ELIGIBLE? HVAC repair/replacement Water heater replacement Windows Soffits and Fascia Siding Roofing Gutters and downspouts Exterior doors Electrical wiring bringing house to local code Plumbing systems (not fixtures) Weatherization needs Caulking Weather stripping Insulation * See Implementation Plan for complete list of eligible repairs 5

6 Eligible Properties MUST BE OWNER OCCUPIED Single-Family Detached (1-4 family) Condominiums Townhomes Modular and Manufactured Homes All properties must be titled as real estate and be permanently affixed to a foundation Duplexes Potential rental income to be included in income qualification calculation 6

7 NIP Bid Requirements Two comparable bids for each repair Bid variance not to exceed 30%, or provide reasonable explanation Obtain a 3 rd bid to substantiate costs Disbursement request amount supported by at least one bid Pertinent bid information required, such as: Household name and property address Repair/replacement specifics, i.e. type of windows and how many to be replaced 7

8 Notable NIP Requirements Homeowner must own and occupy property 18 months prior to enrollment date No changes to owners in title during the 18-month time period unless there was a death of a title holder or legally-finalized divorce All persons in title must reside in subject property as primary residence Real Estate Retention Agreement must be recorded with 30 days of FHLBI disbursement of funds Not eligible for repairs of items specific only to a home-based business Repairs must be completed with 6 months of FHLBI s disbursement of funds 8

9 Additional Recommendations Ensure clear title: Limited scope title search, tax lien free Review credit history: May affect ownership retention/status Confirm current homeowner s insurance Use licensed/bonded contractors Ensure joint paid checks to homeowners and contractors Review bids/ask questions in advance of submission or before work commences Before/after photos of rehabilitation 9

10 NIP Disbursement Workbook HOUSEHOLD QUALIFICATION FORM (HQF) 10

11 NIP Disbursement Workbook HOUSEHOLD QUALIFICATION FORM (HQF) 11

12 NIP Certification of Cost Reasonableness 2018 NIP Certification of Cost Reasonableness (Included on the NIP HQF) I certify that the required minimum of 2 independent, third-party bids were obtained. I certify that written evidence supporting all bids received has been retained by Member and will be produced to FHLBI upon request. I certify that the two bids are comparable and reference the same scope of work. I certify that the bid estimate amounts do not vary by more than 30%, or a reasonable explanation has been documented. I certify that the costs are reasonable for the proposed repairs. I certify that the proposed repairs are eligible under the specified program. I certify that the proposed repairs are of the same like, quality and style, when applicable. I certify that FHLBI funds will not be requested or used to fund the same cost of uses billed to other funding sources. I certify that if the project includes donated labor and/or materials, the member must document the discounted cost(s). I certify that the maximum amount requested is supported by at least one of the bids. I certify that the two bids submitted include the following minimum information: o Date, Contractor s name and address, o Homeowner's name and property address o Itemized costs o Total bid/estimate amount Signature Member represents that the undersigned is fully authorized to sign on behalf of Member, and if accepted, agrees to the terms and conditions contained herein. 12

13 NIP Web Page 13

14 NIP Rehabilitation Closing Statement REQUIRED FOR ALL HOUSEHOLDS 14

15 NIP Monitoring Requirements FHLBI PERFORMS ANNUAL SAMPLING At a minimum, members should maintain the following in their files for every NIP recipient: 1. A copy of the disbursement request and all documentation obtained and used to qualify the household at enrollment 2. Final, fully-executed Rehabilitation Closing Statement, executed by both the homeowner and the member 3. Executed and recorded retention document executed by all owners in the legal title 4. Original bids to support the executed Certification of Cost Reasonableness 5. Final cost verification for rehabilitation work performed evidenced by copies of final invoices, receipts and cancelled checks or similar forms of payments to the contractor(s) 15

16 QUESTIONS? Please visit the FAQs posted on the NIP program home page where you can find answers to common questions. If you have additional questions not covered in the FAQ, please contact Ronna Edwards at: 16

17 CONTACT INFORMATION CID: Rori Chaney Community Lending Manager Ronna Edwards Compliance Analyst Mark Stermer Compliance Analyst Ashlen Nisley Compliance Analyst 17