South Carolina Housing Trust Fund

1. South Carolina Housing Trust Fund Upcoming Program Changes January, 2006

2. Emergency Repair

3. Emergency Repair New Definition • Be the result of a recent event, such as a fire or flood; • Not be the result of accumulated deferred maintenance (see Owner-Occupied Rehabilitation activity); • Not be covered by existing insurance. Emergency Repair means required repairs to owner-occupied units that are necessary to eliminate clear and present danger(s) to the occupant(s). In order to be classified as an emergency, the deficiency(s) to the unit must: Other conditions that will be considered in determining qualification as an emergency for purposes of this program include: • Units occupied by children under the age of 12; • Units occupied by disabled individuals of any age; • Conditions that, if not repaired immediately, would cause further or irreparable damage; • Units where the heating, cooling, electrical, or plumbing systems are not functioning or do not exist.

4. Owner-Occupied Rehabilitation

5. Owner-Occupied Rehabilitation • Block Grants will be limited to $120,750 per application, including any developer fees. • Participants on Probationary Status will be limited to $69,000 per Block Grant, including any developer fees. • Participants may apply for a new Block Grant when any open Owner-Occupied Rehabilitation Block Grant has $34,500 or less remaining unfunded.

6. Owner-Occupied Rehabilitation • In no case may a participant have more than two (2) open Owner-Occupied Rehabilitation Block Grants at any time. • Beneficiary families and/or properties do NOT need to be identified at the time of Block Grant application. • NO work write-up is required at the time of Block Grant application.

7. Owner-Occupied Rehabilitation Two pieces to the process… • Block Grant Application • “Reserves” funds • Apply during open cycle • Owner-Occupied Beneficiary Request • Can be submitted at any time with an open Block Grant • Must contain all beneficiary information and work write-ups

8. Block Grant Application Completed and Submitted Beneficiary Request Prepared – With Exhibits Draw Requests HTF Reviews and Authority Board Approves HTF Reviews & Approves – Inspection Ordered Final Inspection Performed Technical Assistance – Funding Agreement Signed Restrictive Covenants Signed – Work Begins Draw Paid – File Closed Owner-Occupied Rehabilitation Workflow Block Grant Process Beneficiary Process

9. Owner-Occupied Rehabilitation Workflow Helpful Hints… • Don’t submit Beneficiary Requests until you’re ready to begin work • Begin work within 30 days • Make sure you have proof of income • Check your deed, recheck your deed, and then recheck your deed again • Take your time on the work write-up – the homeowner has to live with it

10. Owner-Occupied Major Rehabilitation

11. Owner-Occupied Major Rehabilitation For owner-occupied properties requiring substantially more than $15,000 in rehabilitation costs, a Major Rehabilitation option is available • Major Rehabilitation is NOT available as a block grant, nor can existing block grant funds be used for this purpose. • Each unit must be applied for individually during an open application cycle.

12. Owner-Occupied Major Rehabilitation • Awards under this program will include: • $15,000 as a forgivable loan • An additional $10,000 available as a repayable loan at 1% interest over a 20 year term ($45.99 per month). • Maximum Developers Fee: $3,000 or 15% of the HTF award, whichever is less • In order to apply for this program, the applicant must show and use matching funds equaling at least 25% of the total HTF amount requested. • This match cannot require repayment by the beneficiary, except in the event of property sale.

13. Homeownership Acquisition

14. Homeownership Acquisition • Block Grant applications will be limited to $80,500 per application, including any developer fees. • Participants on Probationary Status will be limited to $46,000 per Block Grant, including any developer fees. • Participants may apply for a new Block Grant when any open Homeownership Block Grant has $23,000 or less remaining unfunded.

15. Homeownership Acquisition • In no case may a participant have more than two (2) open Homeownership Block Grants at any time. • Beneficiary families and/or properties do NOT need to be identified at the time of Block Grant application.

16. Homeownership Acquisition Two pieces to the process… • Block Grant Application • “Reserves” funds • Apply during open cycle • Homeownership Beneficiary Request • Can be submitted at any time with an open Block Grant • Must contain all beneficiary and property information

17. Block Grant Application Completed and Submitted Beneficiary Request Prepared – With Exhibits Closing Documents Retuned to HTF HTF Reviews and Authority Board Approves HTF Reviews & Approves Technical Assistance – Funding Agreement Signed Closing Documents & Check sent to Closing Attorney Homeownership Acquisition Workflow Block Grant Process Beneficiary Process

18. Homeownership Acquisition Workflow Helpful Hints… • Don’t submit Beneficiary Requests until the closing date is set • Allow three (3) weeks for processing • Make sure you have proof of income • Use an experienced closing attorney

19. Supportive Housing

20. Supportive Housing Create a Supportive Housing activity within HTF • The Shelter activity will be combined with Transitional Housing as a new Supportive Housing activity. • Leases for properties within the Supportive Housing activity are no longer required, beneficiary lists will be required instead. • Pro-forma income statements will not be required for Supportive Housing.

21. Supportive Housing • The income stream for the organization requesting the funding, as well as any operating subsidy for the property, will be examined for financial feasibility. • Maximum funding for Shelters and Transitional Housing will be $300,000 per project. • Match requirement for each housing type will be 25%.

22. Rental Housing

23. Rental Housing Revise Underwriting Guidelines for smaller projects • Review the necessity of Market Analyses on smaller projects. • Review and possibly revise reserve requirements. • Review and possibly revise debt coverage ratio requirements (window between minimum and maximum).

24. Rental Housing • Review and possibly revise vacancy rate assumptions for population-specific projects. • Look at alternatives to bonding and letters of credit such as equity in the project.

25. HTF Contact Information SC State Housing Finance & Development Authority Housing Trust Program300 C Outlet Pointe Blvd.Columbia, SC 29210 803/896-9001 www.SCHousing.com

26. HTF Contact Information

27. Bonus Section Trials and Tribulations

28. Trials and Tribulations It’s the little things…. • Submit COMPLETE documentation – Incomplete submissions will be returned • Deeds – Learn to read and understand them • Work write-ups are NOT estimates – You and the homeowner have to live with them • Don’t order inspections that you’re not ready for • We don’t print checks, the State Treasurer does, so allow at least two weeks

29. Trials and Tribulations Even MORE little things…. • Don’t submit Beneficiary Requests until you’re ready to do the deal • Don’t request more money in a Block Grant than you can realistically use in a year • My ears are ringing, and so is the phone – Email us! Get a written response! • Check that income, verify that income, document that income

30. www.SCHousing.com