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 mortgage t mo to c cover t the do down wn pa payment an and c d closi sing cos osts of of 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 ogram 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 oversig 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 ommunity 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

LOAN TERMS  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

THANK YOU Davi vid D Dierk rks CPH CPHD- Housin ing D Divis isio ion 2100 C Clare rendon on 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 onva.u .us