REHAB IN RURAL COMMUNITIES: BUILDING STRONGER COMMUNITIES Janice Kocher firstname.lastname@example.org Jess Peterson email@example.com Marilyn Vogrinec firstname.lastname@example.org
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
502 Direct 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.
Mutual Self-Help Model • 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.
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.
523 Technical Assistance Grant Provides homeownership education. Loan packaging. Construction supervision.
Home Improvement 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.
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
Maximum Grant Amount $7,500 lifetime assistance. No repayment after five years.
502 Guaranteed Housing Program 102% financing. No down payment required. 30-year term, fixed rate. Available to low- and moderate-income families.
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.
Benefits • 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
514/515/516 Multi-Family Housing Programs Funding is provided through the Notice of Funds Available (NOFA) system. Provides funding opportunities for non-profits and for-profit corporations to build affordable housing projects.
Preservation and Rehabilitation 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.
538 Guaranteed 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
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.
533 Housing Preservation Grant Funding provided through the NOFA process. Non-profit, public bodies, and Native American tribes renovate deteriorating homes and rental properties.
Utah Group Work Camps Coolest partnership EVER. State, federal, and local governments, banks, and a faith-based organization working together. The purpose of Utah Group Work Camps is to rehabilitate Native American homes on the Navajo Reservation.
History • Started in 2000. • From 2000-2012: • 4,225 volunteers • 132,932 volunteer hours • 143,932 total project hours • 613 homes completed
How It Works 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.
Weatherization Staff 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
Work Performed • 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
The Importance of Partnerships Leverage funds. More families served. Find solutions to problems. Working toward a common goal.
Working with USDA-RD Locate the state office (rurdev.usda.gov). Set up an appointment with the Housing Program Director. Look for partnership opportunities.
SINGLE FAMILY REHABILITATION and RECONSTRUCTION PROGRAM
What is the SFRRP? The SFRRP offers direct rehabilitation loans to enable homeowners to maintain safe, decent and livable conditions. The SFRRP also offers direct reconstruction loans to homeowners where the cost to rehabilitate the home exceeds the cost of a new home.
OWHLF Basic Qualifications • 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 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.
OWHLF Emergency Grant True emergency. Below 80% AMI. Grants up to $4,999. Is this the last resort?
CDBG Basic Qualifications • 60% AMI or below • Must meet one or more of the following criteria: • 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.
What types of problems do we correct? • 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
BEFORE Bathroom Modifications AFTER
BEFORE Health and Safety AFTER
BEFORE Health and Safety AFTER
BEFORE Drainage and Safety AFTER
BEFORE Access Modifications AFTER
BEFORE Electrical AFTER
BEFORE Roofing, Siding, Rain Gutters AFTER
BEFORE Wheelchair Modifications AFTER