USDA Rural Development Housing Resources for Elderly Native Americans

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USDA Rural DevelopmentHousing Resources for
Elderly Native Americans

• Tedd Buelow, Sue Harris-Green Carolyn Bell
• May 2nd - Baltimore, Maryland

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Session Summary

• Quick Overview of USDA Rural Development
• Community Facilities Program
• Multi-Family Housing Programs (515)
• Rural Housing Repair and Rehabilitation Loans
  Grants (504)
• Introduction of USDAs 1994 Tribal College
  Program Director
• Questions and Answers

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USDA Rural Development

• 3 Program Areas
• Rural Business/Cooperative
• Rural Utilities
• Rural Housing
• Community Facilities

• National and State Office Structure
• State Directors
• Program Directors
• Native American Coordinators

Native American Coordinators (43)
Area / Local Offices (Over 700)
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Historic Funding Benefiting AI/AN Customers
Millions of Dollars
Fiscal Years
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FY 06 Housing Funds to AI/AN
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Community Facilities Program

• Guaranteed loans, direct loans and limited grants
  for essential Community Facilities
• Definition of rural for this program 20,000 or
  less
• Guaranteed Loan Program
• Interest rate is the lenders customary interest
  rate for similar projects
• Interest rates for guaranteed loans may be fixed
  or variable and are determined by the lender and
  borrower, subject to HCFP review and approval
• Direct loan program fixed interest rates
• Poverty is set at 4.5
• Intermediate rate is set halfway between the
  market and the poverty rates
• Market rate is indexed to the eleventh bond
  buyers rate as determined by the U. S. Treasury
  Department
• Eligibility for these different interest rates is
  determined by the median household income (MHI)
  of the area being served and the type of project.
  The intermediate and market interest rates are
  adjusted quarterly.
• Loan repayment terms may not exceed the
  applicants authority (under State law or
  organizational structure), the useful life of the
  facility, or a maximum 40 years.

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Community Facilities Program

• Types of facilities
• Nursing Homes
• Assisted Living Facilities
• Clinics
• Boarding Homes for the Elderly
• Hospitals (General Surgical)
• Medical Rehabilitation Center s
• Psychiatric Hospitals
• Outpatient Clinics
• Adult Dare Care Center s
• Tribal Administration Buildings
• Many others

• Limited Grant Funds
• 3 Priority Areas
• Serve Small Communities
• (5,000 or less get highest priority)
• Low-income Communities
• Provide healthcare, public safety, or public
  community services
• Grant assistance may be available for up to 75
  of project costs
• Grant limitations are based on population and
  income, economic feasibility, and availability of
  funds
• Combination of funds

www.rurdev.usda.gov/rhs/cf/cp.htm
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Welcome to Multi-Family HousingProcessing
Division

• Direct Loans (515)
• Guaranteed Loans (538)
• Farm Labor (514/516)
• Preservation Grant (533)
• Preservation Revolving Loan Fund

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Multi-Family Housing Processing Division

Sue Harris-Green Deputy Director Direct
Loans/Grants

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Multi-Family Housing Processing Division

• Division Objectives
• Provide Prompt Accurate Guidance
  Assistance to State Field Offices
• Assure Consistent Application of Regs
• Open Communication with Field Staff
• If you have a question, please give us a call.
• [phone]

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Direct Loans (515)

• Loans made to build, acquire and renovate
  multi-family properties.
• Loans receive interest credit, which lowers the
  effective interest paid.
• Borrowers must lease units to income eligible
  tenants, at rents approved by the agency.

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Direct Loans (cont)

• Units must be rented to very low (30 of AMI),
  low (50 of AMI) and moderate (80 of AMI) income
  tenants.

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Direct Loans (cont)

• Types of eligible projects
• Family Projects
• Elderly Projects
• Congregate Projects
• Group homes
• Rural Cooperative Housing

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Direct Loans (cont)

• Eligible uses of funds
• Construct / Rehabilitate MFH
• Purchase equipment
• Legal and technical assistance
• Interest and other financing costs

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Direct Loans (cont)

• NOFA Process (New Construction)
• Publish Notice of Funding Availability
• Applications received by states
• States score the applications
• National Office receive the scores
• N/O selects highest scored applications

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Direct Loans (cont)

• Rehab / Repair Loans
• First Come / First Served
• State reviews borrower requests
• State submits the requests to N/O
• N/O reviews requests
• N/O approves / denies requests

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Guaranteed Loans (538)

• Loan Guarantee for 90 of principal and interest
  outstanding (for profit entity).
• Loan Guarantee for 97 of principal and interest
  outstanding (non-profit entity).
• Construction and/or permanent loan guarantee
  available.

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Guaranteed Loans (cont)

• Property in program for 25 year minimum, 40 year
  maximum.
• Loan term 25 year minimum with 40 year
  amortization.

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Guaranteed Loans (cont)

• Qualified Borrowers
• Non-profit corps.
• or partnerships
• Public entities
• Indian Tribes
• For-profit comps.
• Individuals
• Trusts

• Qualified Properties
• Multi-family Projects
• Minimum of 5 units
• New construction
• Rehab. of at least 6,500 per unit for purposes
  of acquisition or to create new units

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Guaranteed Loans (cont)

• Qualified Lenders
• State or local HFA or member of the Federal Home
  Loan Bank
• HUD, Ginnie Mae, Fannie Mae, or Freddie Mac
  approved lenders for multi-family housing loans
• Any lender that can demonstrate the ability to
  originate, underwrite, and manage MFH loans and
  meet the criteria found in 3565.102 and 3565.103

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Guaranteed Loans (cont)

• Eligible Uses
• Found in 3565.205
• All hard and soft costs related to dwellings and
  related facilities
• Developers fees
• Tech. assistance

• Ineligible Uses
• Found in 3565.206
• Student or military housing
• Nursing homes and special care facilities
• Refinancing of existing debt

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7 CFR 3560
Farm Labor (514/516)
Separate Subparts Off-Farm Labor Housing - 7 CFR
3560, subpart L On-Farm Labor Housing - 7 CFR
3560, subpart M
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Definition of a Domestic Farm Laborer(7 CFR
3560.11)
Farm Labor (514/516)
A person who.. .receives a substantial portion
of their income from farm labor.. Income
requirements for farm laborers are contained in
7 CFR 3560.576(b)(2) and Attachment 6-H of the
Asset Management Handbook.
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Definition of a Domestic Farm Laborer-
Continued 7 CFR 3560.11)
Farm Labor (514/516)
..and either is a citizen of the United States
or resides in the United States after being
legally admitted for permanent residence. Farmwork
ers who are admitted under temporary visas, such
as H2A workers, are not eligible to live in Farm
Labor Housing (they are not admitted for
permanent residence).
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On-Farm LH Funding
Farm Labor (514/516)

• On-Farm LH loans will be made available on a
  first-come-first-served basis (outside of the
  NOFA process).

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Off-Farm Labor HousingNotice of Funding
Availability (NOFA)
Farm Labor (514/516)

• FY07 Off-Farm NOFA published on April 19.
  Preapplications received by the S/O by June 18.
• The preapplication requirements arecontained in
  the NOFA. Pre-applications should be reviewed for
  completeness against the requirements in the NOFA.

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Notice of Funding Availability (NOFA)
Housing Preservation Grant (533)

• Grants to nonprofits, public agencies and other
  eligible entities to provide funds to repair
  low-income homeowners dwellings.
• The preapplication requirements arecontained in
  the annual NOFA.

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Homeowners Repairs Rental Property Repairs
Housing Preservation Grant (533)

• Recipients of these grants assist very-low and
  low income homeowners in making repairs to their
  homes.
• Grant funds can be used to assist rental property
  owners and co-ops in making repairs, if units
  available to very-low and low income tenants.

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Re-lending Program with Intermediaries
Preservation Revolving Loan Fund

• Eligible Recipients are non-profits and HFAs.
• Announced through NOFA.
• Recipients re-lend funds to renovate existing 515
  properties.
• Demonstration Program in FY 07.

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Processing Division Contact List

• Direct Loans 515
• Sue Harris Dep. Director [phone]
• e-mail susie.harris_at_usda.gov
• Barbara Chism [phone]
• e-mail barbara.chism_at_usda.gov
• Farm Labor 514 / 516
• Sue Harris Dep. Director [phone]
• E-mail susie.harris_at_usda.gov
• Henry Searcy [phone]
• E-mail henry.searcy_at_usda.gov

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Processing Division Contact List

• Housing Preservation Grants 533
• Sue Harris Dep. Director [phone]
• e-mail susie.harris_at_usda.gov
• Bonnie Edwards-Jackson [phone]
• e-mail bonnie.edwards_at_usda.gov
• Preservation Revolving Loan Fund
• Sue Harris Dep. Director [phone]
• E-mail susie.harris_at_usda.gov
• Henry Searcy [phone]
• E-mail henry.searcy_at_usda.gov

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Processing Division Contact List

• Guaranteed Loans (538)
• Joyce Allen Deputy Director [phone]
• e-mail joyce.allen_at_usda.gov
• Arlene Nunes [phone]
• e-mail arlene.nunes_at_usda.gov
• C.B. Alonso [phone]
• e-mail cb.alonso_at_usda.gov

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Reference Information

• http//www.rurdev.usda.gov/regs
• Handbooks Regulations
• 7 CFR part 3560
• HB-1-3560 Rural Rental Housing Loan Origination
• 7 CFR part 3565
• HB-1-3565 - Guaranteed Rural Rental Housing
  Program Origination Servicing

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(No Transcript)
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SFH 504 Program

• Purpose
• The Very Low-Income Housing Repair program
  provides loans and grants to very low-income
  homeowners to repair, improve, or modernize their
  dwellings or to remove health and safety hazards.

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SFH 504 Program

• Eligibility
• Homeowner-occupants must be unable to obtain
  affordable credit elsewhere and must have very
  low incomes, (below 50 percent of the area median
  income).
• Repairs and improvements must make the dwelling
  more safe and sanitary or remove health and
  safety hazards.

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SFH 504 Program

• Eligibility
• Grants are only available to homeowners who are
  62 years old or older and cannot repay a Section
  504 loan.

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SFH 504 Program

• Terms
• Loans of up to 20,000 and grants of up to 7,500
  are available.
• Loans are for up to 20 years at 1 percent
  interest.
• No security requirement for loans under 7,500.

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SFH 504 Program

• Terms
• Grants must be repaid if the property is sold
  within 3 years.
• Repairs financed with grant funds must result in
  the removal of health and safety hazards.

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SFH 504 Program

• Terms
• A grant/loan combination is made if the applicant
  can repay part of the cost.
• Loans and grants can be combined for up to
  27,500 in Section 504 assistance

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SFH 504 Program

• Standards
• Repaired properties need not meet RHS code
  requirements, but water and waste systems and
  related fixtures must meet local health
  department requirements.
• Water supply and sewage disposal systems should
  meet RHS requirements.

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SFH 504 Program

• Standards
• Major health and safety hazards must be
  corrected.
• All work performed must meet local codes and
  standards.

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USDAs 1994 Programs(Tribal Colleges and
Universities)

• Introducing Yolanda Garcia

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Questions and Answers
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Contact information