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USDA Rural Development Housing Resources for Elderly Native Americans

USDA Rural Development Housing Resources for Elderly Native Americans. Tedd Buelow, Sue Harris-Green & Carolyn Bell May 2 nd - Baltimore, Maryland. Session Summary. Quick Overview of USDA Rural Development Community Facilities Program Multi-Family Housing Programs (515)

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USDA Rural Development Housing Resources for Elderly Native Americans

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  1. USDA Rural DevelopmentHousing Resources for Elderly Native Americans Tedd Buelow, Sue Harris-Green & Carolyn Bell May 2nd - Baltimore, Maryland

  2. Session Summary • Quick Overview of USDA Rural Development • Community Facilities Program • Multi-Family Housing Programs (515) • Rural Housing Repair and Rehabilitation Loans & Grants (504) • Introduction of USDA’s 1994 Tribal College Program Director • Questions and Answers

  3. USDA Rural Development National and State Office Structure • State Directors • Program Directors • Native American Coordinators 3 Program Areas • Rural Business/Cooperative • Rural Utilities • Rural Housing & Community Facilities Native American Coordinators (43) Area / Local Offices (Over 700)

  4. Historic Funding Benefiting AI/AN Customers Millions of Dollars Fiscal Years

  5. FY 06 Housing Funds to AI/AN

  6. Community Facilities Program • Guaranteed loans, direct loans and limited grants for essential Community Facilities • Definition of rural for this program = 20,000 or less • Guaranteed Loan Program • Interest rate is the lender’s customary interest rate for similar projects • Interest rates for guaranteed loans may be fixed or variable and are determined by the lender and borrower, subject to HCFP review and approval • Direct loan program fixed interest rates • Poverty is set at 4.5% • Intermediate rate is set halfway between the market and the poverty rates • Market rate is indexed to the eleventh bond buyers rate as determined by the U. S. Treasury Department • Eligibility for these different interest rates is determined by the median household income (MHI) of the area being served and the type of project. The intermediate and market interest rates are adjusted quarterly. • Loan repayment terms may not exceed the applicant’s authority (under State law or organizational structure), the useful life of the facility, or a maximum 40 years.

  7. Community Facilities Program Limited Grant Funds • 3 Priority Areas • Serve Small Communities (5,000 or less get highest priority) • Low-income Communities • Provide healthcare, public safety, or public & community services • Grant assistance may be available for up to 75% of project costs • Grant limitations are based on population and income, economic feasibility, and availability of funds • Combination of funds Types of facilities: • Nursing Homes • Assisted Living Facilities • Clinics • Boarding Homes for the Elderly • Hospitals (General & Surgical) • Medical Rehabilitation Center s • Psychiatric Hospitals • Outpatient Clinics • Adult Dare Care Center s • Tribal Administration Buildings • Many others www.rurdev.usda.gov/rhs/cf/cp.htm

  8. Welcome to Multi-Family HousingProcessing Division • Direct Loans (515) • Guaranteed Loans (538) • Farm Labor (514/516) • Preservation Grant (533) • Preservation Revolving Loan Fund

  9. Multi-Family Housing Processing Division Sue Harris-Green Deputy Director Direct Loans/Grants

  10. Multi-Family Housing Processing Division Division Objectives: Provide Prompt Accurate Guidance & Assistance to State & Field Offices Assure Consistent Application of Regs Open Communication with Field Staff If you have a question, please give us a call. (202) 720-1660

  11. Direct Loans (515) • Loans made to build, acquire and renovate multi-family properties. • Loans receive interest credit, which lowers the effective interest paid. • Borrowers must lease units to income eligible tenants, at rents approved by the agency.

  12. Direct Loans (con’t) • Units must be rented to very low (30% of AMI), low (50% of AMI) and moderate (80% of AMI) income tenants.

  13. Direct Loans (con’t) • Types of eligible projects: • Family Projects • Elderly Projects • Congregate Projects • Group homes • Rural Cooperative Housing

  14. Direct Loans (con’t) • Eligible uses of funds: • Construct / Rehabilitate MFH • Purchase equipment • Legal and technical assistance • Interest and other financing costs

  15. Direct Loans (con’t) • NOFA Process (New Construction) • Publish Notice of Funding Availability • Applications received by states • States score the applications • National Office receive the scores • N/O selects highest scored applications

  16. Direct Loans (con’t) • Rehab / Repair Loans • First Come / First Served • State reviews borrower requests • State submits the requests to N/O • N/O reviews requests • N/O approves / denies requests

  17. Guaranteed Loans (538) • Loan Guarantee for 90% of principal and interest outstanding (for profit entity). • Loan Guarantee for 97% of principal and interest outstanding (non-profit entity). • Construction and/or permanent loan guarantee available.

  18. Guaranteed Loans (con’t) • Property in program for 25 year minimum, 40 year maximum. • Loan term 25 year minimum with 40 year amortization.

  19. Guaranteed Loans (con’t) Qualified Borrowers • Non-profit corps. or partnerships • Public entities • Indian Tribes • For-profit comps. • Individuals • Trusts Qualified Properties • Multi-family Projects • Minimum of 5 units • New construction • Rehab. of at least $6,500 per unit for purposes of acquisition or to create new units

  20. Guaranteed Loans (con’t) Qualified Lenders: • State or local HFA or member of the Federal Home Loan Bank • HUD, Ginnie Mae, Fannie Mae, or Freddie Mac approved lenders for multi-family housing loans • Any lender that can demonstrate the ability to originate, underwrite, and manage MFH loans and meet the criteria found in 3565.102 and 3565.103

  21. Guaranteed Loans (con’t) Eligible Uses Found in 3565.205 • All hard and soft costs related to dwellings and related facilities • Developer’s fees • Tech. assistance Ineligible Uses Found in 3565.206 • Student or military housing • Nursing homes and special care facilities • Refinancing of existing debt

  22. Farm Labor (514/516) 7 CFR 3560 Separate Subparts: Off-Farm Labor Housing - 7 CFR 3560, subpart L On-Farm Labor Housing - 7 CFR 3560, subpart M

  23. Farm Labor (514/516) Definition of a “Domestic Farm Laborer”(7 CFR 3560.11) A person who….. …….receives a substantial portion of their income from farm labor….. Income requirements for farm laborers are contained in: 7 CFR 3560.576(b)(2) and Attachment 6-H of the Asset Management Handbook.

  24. Farm Labor (514/516) Definition of a “Domestic Farm Laborer”- Continued 7 CFR 3560.11) …..and either is a citizen of the United States or resides in the United States after being legally admitted for permanent residence. Farmworkers who are admitted under temporary visas, such as H2A workers, are not eligible to live in Farm Labor Housing (they are not admitted for permanent residence).

  25. Farm Labor (514/516) On-Farm LH Funding • On-Farm LH loans will be made available on a first-come-first-served basis (outside of the NOFA process).

  26. Farm Labor (514/516) Off-Farm Labor HousingNotice of Funding Availability (NOFA) • FY07 Off-Farm NOFA published on April 19. Preapplications received by the S/O by June 18. • The preapplication requirements arecontained in the NOFA. Pre-applications should be reviewed for completeness against the requirements in the NOFA.

  27. Housing Preservation Grant (533) Notice of Funding Availability (NOFA) • Grants to nonprofits, public agencies and other eligible entities to provide funds to repair low-income homeowner’s dwellings. • The preapplication requirements arecontained in the annual NOFA.

  28. Housing Preservation Grant (533) Homeowner’s Repairs & Rental Property Repairs • Recipients of these grants assist very-low and low income homeowners in making repairs to their homes. • Grant funds can be used to assist rental property owners and co-ops in making repairs, if units available to very-low and low income tenants.

  29. Preservation Revolving Loan Fund Re-lending Program with Intermediaries • Eligible Recipients are non-profits and HFAs. • Announced through NOFA. • Recipients re-lend funds to renovate existing 515 properties. • Demonstration Program in FY 07.

  30. Processing Division Contact List Direct Loans 515 • Sue Harris Dep. Director (202) 720-1660 e-mail susie.harris@usda.gov • Barbara Chism (202) 690-1436 e-mail barbara.chism@usda.gov Farm Labor 514 / 516 • Sue Harris Dep. Director (202) 720-1660 E-mail susie.harris@usda.gov • Henry Searcy (202) 720-1753 E-mail henry.searcy@usda.gov

  31. Processing Division Contact List Housing Preservation Grants 533 • Sue Harris Dep. Director (202) 720-1660 e-mail susie.harris@usda.gov • Bonnie Edwards-Jackson (202) 690-0759 e-mail bonnie.edwards@usda.gov Preservation Revolving Loan Fund • Sue Harris Dep. Director (202) 720-1660 E-mail susie.harris@usda.gov • Henry Searcy (202) 720-1753 E-mail henry.searcy@usda.gov

  32. Processing Division Contact List Guaranteed Loans (538) • Joyce Allen Deputy Director (202) 690-4499 e-mail joyce.allen@usda.gov • Arlene Nunes (202) 401-2307 e-mail arlene.nunes@usda.gov • C.B. Alonso (202) 720-1624 e-mail cb.alonso@usda.gov

  33. Reference Information http://www.rurdev.usda.gov/regs Handbooks & Regulations 7 CFR part 3560 HB-1-3560 – Rural Rental Housing Loan Origination 7 CFR part 3565 HB-1-3565 - Guaranteed Rural Rental Housing Program Origination & Servicing

  34. SFH 504 Program Purpose: • The Very Low-Income Housing Repair program provides loans and grants to very low-income homeowners to repair, improve, or modernize their dwellings or to remove health and safety hazards.

  35. SFH 504 Program Eligibility: • Homeowner-occupants must be unable to obtain affordable credit elsewhere and must have very low incomes, (below 50 percent of the area median income). • Repairs and improvements must make the dwelling more safe and sanitary or remove health and safety hazards.

  36. SFH 504 Program Eligibility: • Grants are only available to homeowners who are 62 years old or older and cannot repay a Section 504 loan.

  37. SFH 504 Program Terms: • Loans of up to $20,000 and grants of up to $7,500 are available. • Loans are for up to 20 years at 1 percent interest. • No security requirement for loans under $7,500.

  38. SFH 504 Program Terms: • Grants must be repaid if the property is sold within 3 years. • Repairs financed with grant funds must result in the removal of health and safety hazards.

  39. SFH 504 Program Terms: • A grant/loan combination is made if the applicant can repay part of the cost. • Loans and grants can be combined for up to $27,500 in Section 504 assistance

  40. SFH 504 Program Standards: • Repaired properties need not meet RHS code requirements, but water and waste systems and related fixtures must meet local health department requirements. • Water supply and sewage disposal systems should meet RHS requirements.

  41. SFH 504 Program Standards: • Major health and safety hazards must be corrected. • All work performed must meet local codes and standards.

  42. USDA’s 1994 Programs(Tribal Colleges and Universities) Introducing Yolanda Garcia

  43. Questions and Answers

  44. Contact information

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