Single Family Housing Programs

Single Family HousingPrograms

Presented by: Rural Development

April 25, 2013

502 Direct Homeownership Loans

502 Direct Homeownership Loans

• Loans for housing to very-low and low income families

• Build, purchase, or repair

• Can loan up to 100% of the appraisal

• Long term financing – 33 years

• Payments are based on adjusted family income

• Home must be in a rural area.

502 Direct (cont.)• Home must be modest in design and cost,

and must not exceed the county maximum loan limit.

• Home must meet local codes

• Applicant must not already own a home

• Must have repayment ability– Ratios cannot exceed 29% PITI (principle, interest, tax, insurance) and 41% Total Debt

• Must have an acceptable credit history

502 Direct (cont.)• County Maximum loan limit - $139,400 to $156,900

• Income limits – $38,550 to $52,800 (for a 4 person household)

• For the following counties: • Adair Grundy Macon• Boone Howard Randolph• Carroll Linn Saline• Chariton Livingston Sullivan

Guaranteed Homeownership Loans

Guaranteed Homeownership Loans

• Loans for housing to low and moderate income families

• Conventional lender makes the loan

• Build, or purchase, and repair

• Long-term financing – 30 years

• Payments are not subsidized – market rate

• RD charges the lender a one-time 2% fee

Guaranteed RH (cont.)

• Same requirements for the applicant and home as with the Direct loans except the mortgage limit is based on repayment ability.

• The lender can include the fee in the loan as long as it does not exceed 102% value

Guaranteed RH (cont.)

• Annual fee of .04% charged on outstanding balance.

• Can use conventional lending’s forms, appraisals, and inspections

• Originating bank chooses inspectors and appraisers

• Program lowers the lenders risk of loss

• Income limits – $74,750 to $75,900 (for a 4 person household)

• For the following counties: • Adair Grundy Macon• Boone Howard Randolph• Carroll Linn Saline• Chariton Livingston Sullivan

Guaranteed RH (cont.)

504 Home Repair Loans and Grants

504 Home Repair Loans and Grants• Provides loan and grant funds to be used to

pay for needed repairs to dwellings of very low income families. To remove health and safety hazards – leaky roofs, bad heating systems, structural problems, handicap accessibility

• Can loan up to 100% of property value

• Same eligibility, more liberal credit review

504 Home Repair (cont.)• Loans are 1% for 20 yrs. Not over $20k

• Lifetime grant assistance not over $7,500

• Loans may include modernizing and bringing the home up to standards, changes for convenience, adding a room, and overall improvements.

• Grants available to applicants 62 years or older who do not have repayment ability.

504 Home Repair (cont.)

• Income limits – $24,100 to $33,000 (for a 4 person household)

• For the following counties: • Adair Grundy Macon• Boone Howard Randolph• Carroll Linn Saline• Chariton Livingston Sullivan

Area office ContactsChillicothe Servicing Office

Shelby Leakey

1100 Morton Parkway

Chillicothe, MO

660-646-6222

Shelby.leakey@mo.usda.gov(Grundy, Linn, Livingston, Sullivan Counties)

Moberly Servicing Office

Catherine Linneman

2995 County Road 1325

Moberly, MO

660-263-7400

Catherine.linneman@mo.usda(Adair, Boone, Chariton, Howard, Macon, Randolph counties)

Richmond Servicing OfficeDebra Berry500 Wollard BlvdRichmond, MO816-776-2266Debra.berry@mo.usda.gov(Carroll County)

Sedalia Servicing Office

Sara Bax

1407 W. 32nd Street

Sedalia, MO

660-826-3339

sara.bax@mo.usda.gov

(Saline County)

Multi-Family Housing Programs-Rental Housing

Multi-Family Housing Programs-Rental Housing

• 633 complexes – state wide

• 15,750 total units

• Family or Elderly/Disabled

• Consist of 1-2 bedrooms

• Rent based upon tenant adjusted income

Types of Rental Housing• USDA Rural Development Properties

– Rental assistance available, tenants pay 30% of adjusted income, accept HUD section 8 vouchers, some complexes limited to elderly tenants

To search for RD properties, go to http://rdmfhrentals.sc.egov.usda.gov/RDMFHRentals/select_state.jsp You can search by State, then by county and the contact information should be shown.

• HUD Subsidized Units– Housing Assistance Payment contract (HAP), RA available for everyone in

complex, some complexes limited to elderly tenants

To search for HUD properties, go to http://www.hud.gov/offices/pih/pha/contacts/states/mo.cfm and search by city when prompted.

Types of Rental Housing• Local Housing Authorities

– HAP Contract in place, RA available for everyone in complex, Some housing authorities have a priority for elderly and displaced tenants

Go to http://www.hud.gov/offices/pih/pha/contacts/states/mo.cfm for a listing of housing authorities in Missouri.

• Privately owned – No subsidy, listings are in local newspapers, craigslist, or realtor listings.

• State Tax Credit Housing– No subsidy, rents are restricted in accordance with MHDC, most family apartments,

but could be designated for a certain age group.

There is an apartment locator at http://ahl.mhdc.com/ for a listing of tax credit properties.

Questions to Ask landlord

• What utilities are included with the rent and which ones are not?

• Can you make payments on the security deposit?

• Will you be doing a back ground check? If so, do I have to pay for it? If so, how much?

• Do you have tenant selection criteria? (such as have to be 62, elderly or disabled to reside there)

Understanding Type of RA

• USDA Rural Development (RD) Rental Assistance (RA) – USDA RD financed properties only, not portable, cannot be taken with

the tenant to another property

• USDA Rural Development Voucher– USDA RD financed properties that have paid off their loans, is a

portable voucher, there is a set dollar amount of assistance, tenant pays the difference between the rent and the assistance amount, and the assistance amount does not change.

Understanding Type of RA

• HUD Section 8 HAP Contract – Stays at the complex, not portable , It cannot be taken to another

property.

• HUD Section 8 Voucher – Once approved for a voucher it is portable as long as the property will

accepted by landlord at RD properties, and private landlords.

If you are receiving assistance be sure that you know if it goes with you or stays at the property.

Questions asked by Landlords

• Do you have a caretaker that lives with you? – The income for the caretaker is not counted but background check required

• Do you need any reasonable accommodation? – Always put in writing specific needs ex. Shower instead of tub

– In RD properties, property make changes at no charge if funds allowed

• Waiting Lists– When there are more people wanting apartments than there are apartments

– Some waiting lists move more quickly than others please check with submitting application

Examples

1. If you are low income and plan to live at a property indefinitely, a Section 8 property with a HAP contract or USDA Rural Development complex will meet your need and will limit your rent to 30% of your adjusted annual income.

2. If a tenant moves from one rental to another frequently, they would want assistance that goes with them to their next apartment. A HUD Section 8 voucher would go with them wherever they choose to move (but there may be a maximum rent that the voucher will pay and you need prior approval if you are moving out of the area).

Examples

3. You may choose to go with a private landlord with lots of amenities that you want/need.

4. If you do not need assistance in paying rent, you may want to check out the Missouri Housing Development website noted below. These are usually newer properties or properties that have been rehabbed using tax credits. They may offer washer/dryer hookups, dishwashers, etc. and you can use your Section 8 voucher if the landlord will accept it.

Examples

5. Local housing authorities usually administer HUD HAP contracts and are always trying to fill the needs of their local towns/communities. They are also a good source of information if they are unable to assist you. The local housing authorities have been around for a long time and their employees are always knowledgeable of local landlords. Please use them as a tool if you need assistance or have housing questions.

Rental Properties

3. There are three USDA Rural Development properties in Chillicothe. There are a total of 82 apartments with 53 units of Rental Assistance available and there are vacant units available for immediate occupancy. (Use the following website to find the location, number of bedrooms and contact information) http://rdmfhrentals.sc.egov.usda.gov/RDMFHRentals/select_state.jsp

A. There is a HAP Contract for all units located at Center Apartments in Chillicothe, see the above website for details.

Rental Properties

3. The Missouri Housing Development Commission has financed several properties in Chillicothe. See following website for a listing of the properties, location and the rents by bedroom size. There may not rent assistance available, however, you should be able to use your Section 8 voucher at the properties shown. to http://www.hud.gov/offices/pih/pha/contacts/states/mo.cfm

4. The Chillicothe Housing Authority has 100 subsidized apartments available also. See the following website for details. http://www.hud.gov/offices/pih/pha/contacts/states/mo.cfm

Questions/Comments• Let’s try to fill up all of the existing vacancies with tenants

that need them and would be served by them!

• If you have any questions, please go to www.rurdev.usda.gov/mo, click on Multi-Family Housing.

• Contact Teresa Cody, Area Specialist, or Dan Niemeyer, Area Specialist Kirksville, MO at 660-665-3274, extension 4 or by email at Teresa.cody@mo.usda.gov or dan.niemeyer@mo.usda.gov and we can get you the information on any county that you want and refer you to the Rural Development contact person in a specific county.