AFFORDABLE HOUSING GOALS

1
AFFORDABLE HOUSING GOALS

• 2010
• Single Family Goals
• Multifamily Goals
• Strong Evaluation Tools
• Strong Enforcement Powers
• Strong Reporting Same as Banks
• Annual Reports to Congress on Affordable Housing
  Performance

2
GSE DEFINITIONS

• Very Low Income 30-50 of Area Median Income
• Low Income Does Not Exceed 80 of AMI
• Low Income Area AMI does not exceed 80
  household income greater than/equal to 100 of
  AMI in qualifying minority census tracts
• Qualifying Minority Census Tracts
• Minority population greater than/equal to 30
• Median family income less than/equal to 100

3
GOALS

• Single Family Goals
• Purchase Money Loans
• --Low Income (less than/equal to 80 AMI)
  families and areas
• --Very Low Income (less than/equal to 50 AMI)
  families
• Refinance Loans
• --Low Income

4
GOALS

• Multifamily Goal
• Units affordable to low income families
• Additional Multifamily Requirements
• Units for very low income families
• Enterprise reports on the purchase of affordable
  housing of
• Small projects 5-50 units OR mortgages under
  5 million

5
DUTY TO SERVE

• Leadership in developing loan products and
  flexible underwriting guidelines to facilitate a
  secondary market
• Manufactured housing
• Preservation of existing housing
• Rural markets
• Additional categories
• Additional credit for goals qualifying housing
  that includes a licensed child care center

6
Capital Magnet Fund

• Special account within the CDFI Fund for
• CDFIs or Other Housing Non-Profits
• Minimum leverage 10X Grant Amount
• Broad List of eligible activities, but also
• broad list of prohibited activities
• Advocacy
• Counseling
• Travel
• Tax Advice or Preparation of Returns

7
GSE for Trust Fund, Capital Magnet Fund

• 2009 0
• 2010 50
• 2011 75
• 2012 100
• Budget Neutrality 25
• Capital Magnet Fund 26
• Housing Trust Fund 49
• 10 Homeownership
• Rental 75 less than or equal to 30 AMI
• Rental 100 less than or equal to 50 AMI
• 7/30/09 HUD to announce needs-based formula, 3
  million minimum awards

8
GSE Conservatorship

• US Treasury Holds warrants for common stock,
  equal to 80 of Fannie Mae and Freddie Mac if
  exercised, the GSEs will be considered
  nationalized
• Treasury has a purchase agreement for 100
  Billion of senior preferred stock
• 12/31/09 Credit facility for 3 housing GSEs
  expires
• Portfolios capped at 850 billion each, to
  decline 10 per year until reaching 250
  billion
• 3/31/10 GSEs begin paying fees (TBD) to Treasury
  for support