PROGRAM GOALS Help l low w an and d mo mode derate in income - - PowerPoint PPT Presentation

PROGRAM GOALS

• Help l

low w an and d mo mode derate in income h house seholds pu purchase their ir f first st h home t through p providin iding a a second t d trust st mo mortgage t to c cover t the do down wn pa payment an and c d closi sing cos

• sts of
• f the

he hom home p purcha hase

• Assi

ssist 1 10-15 e eligible le h household holds f for FY 2017

BACKGROUND

• The

The MIP MIPAP P Prog

• gram w

was e establishe hed i in 1983

• Program o

am operat atio ions a s and manag ageme ment w were e executed d by AHC, C, I Inc., w with C County s staf aff p providin iding o

• versig

sight

• The t

transit sitio ion f from A m AHC, I

• Inc. t

to H Housi sing D Divisio ision s staff sh should b d be compl pleted b d by November 2 2016

FUNDING SOURCES

• In

In the he p past, p pri rimarily t thou hough t h the he C Com

• mmunity

y Developme pment B Block G Grant P Program ( am (CDBG BG)

• County G

y Genera ral F l Funds

BENEFICIARIES

• Arlington County First Time Homebuyers earning

below 80% of the Area Median Income

• Currently, 189 MIPAP loans in the portfolio
• Over 400 households assisted through MIPAP

MIPAP LOAN UNDERWRITING TERMS

• Since 2009, Shared Appreciation Loan: calculated

as up to 25% of the purchase price

• Maximum purchase price: $400,000
• Maximum loan amount: $100,000
• Minimum cash contribution from homebuyer: 1% of

the purchase price

• Minimum credit score: 660

MIPAP LOAN UNDERWRITING TERMS

• At time of sale or refinance of property, loan

repayment equals original loan amount, plus proportionate share of net appreciation of property, if any.

• If MIPAP used for Affordable Dwelling Unit (ADU)

purchase, homebuyer would receive appreciation based on annual increases in the Area Median Income.

MIPAP LOAN UNDERWRITING TERMS

• ADU properties sold and re-sold through the

Notification List for Affordable Properties (lottery system).

• Repaid MIPAP loan proceeds become MIPAP

program income for new loans.

PROGRAM GOALS

• Make low interest loans to low and moderate

income Arlington homeowners for the purpose of:

• Completing major home repairs
• Improving livability through accessible retro-fits
• Improving energy efficiency
• Structure loans so repayment is not burdensome

BACKGROUND

• Funded though Arlington County administered

CDBG program funds since 1984

• Operations and management by AHC, Inc.
• County became the direct lender of HIP loans in

2014 and began the transition process to manage the program directly

FUNDING SOURCES

• Continuing to utilize Community

Development Block Grant (CDBG) funds

BENEFICIARIES

• Arlington County homeowners below 80% AMI
• Households age 62 and over
• Families with children under age 6
• People with physical disabilities.

PRIMARY SCOPE OF WORK

• Correcting major violations of the Virginia

Maintenance Code and National Housing Quality Standards

• Improving physical accessibility within the home

which may include wheelchair access

• Improving energy efficiency through insulation and

air sealing when feasible

• Up to $75,000 , average ≤ $50,000
• Interest Rate based on borrower’s AMI with a

tiered scale of up to 3% interest at 80%; up to 2% interest at 60% and up to 1% interest at 40%

• A term of up to 360 months with simple interest
• Full term deferred payments

LOAN TERMS

THANK YOU

Davi vid D Dierk rks CPH CPHD- Housin ing D Divis isio ion 2100 C Clare rendon

• n B
• Blvd. S

. Suite 7 700 Ar Arlington, V VA A 22 22201 703 2 03 228 0 28 0793 793 ddierk rks@arli rlington

• nva.u

.us