Housing action trust

Transcription

>> HI EVERYONE, I'M HUD SECRETARY JULIAN CASTRO. IT'S MY PLEASURE TO WELCOME YOU TO THIS PRESENTATION ON THE NATIONAL HOUSING TRUST FUND. FOR MANY AMERICAN FAMILIES, A HOME REPRESENTS MORE THAN JUST BRICKS AND MORTAR. IT'S WHERE WE START AND END OUR DAYS. IT'S WHERE OUR CHILDREN GROW UP AND OUR FAMILIES MAKE MEMORIES. IT'S AT THE CENTER OF OUR LIVES, AND AT THE FOUNDATION OF OUR FUTURES. AND WHERE WE LIVE OFTEN DETERMINES THE EDUCATION WE RECEIVE. THE JOBS THAT WE HAVE ACCESS TO. THE HEALTH THAT WE HAVE. THAT'S WHY WE'VE GOT TO GIVE EVERY AMERICAN THE OPPORTUNITY TO SECURE QUALITY, AFFORDABLE HOUSING. THE NATIONAL HOUSING TRUST FUND WILL PLAY AN IMPORTANT ROLE IN CREATING THESE OPPORTUNITIES. IT WAS ESTABLISHED AS PART OF THE HOUSING AND ECONOMIC RECOVERY ACT OF 2008 TO PRODUCE HOUSING FOR FOLKS WITH MODEST MEANS, INCLUDING VULNERABLE COMMUNITIES LIKE THOSE EXPERIENCING HOMELESSNESS. BUT FOR YEARS, IT COULDN'T FULFILL ITS MISSION, BECAUSE ITS FUNDING SOURCES, FANNIE MAE AND FREDDIE MAC, WERE IN THE PROCESS OF REBUILDING AFTER THE CRISIS. NOW THAT OUR HOUSING MARKET 2 CONTINUES TO GAIN STRENGTH AND FANNIE AND FREDDIE HAVE REBOUNDED THE FEDERAL HOUSING FINANCING AGENCY ANNOUNCED LAST YEAR IT WOULD BRING RESOURCES AVAILABLE TO BRING THE FUND TO LIFE. ON JANUARY 30, HUD PUBLISHED A RULE TO PROVIDE GUIDANCE TO STATES ABOUT THE IMPLEMENTATION OF THE FUND. THESE ADDITIONAL RESOURCES WILL ALLOW US TO MAKE VITAL INVESTMENTS IN AFFORDABLE HOUSING NATIONWIDE AND ENABLE MORE FAMILIES TO SECURE A DECENT PLACE TO CALL HOME. THIS IS A WIN FOR OUR FAMILIES, FOR OUR COMMUNITIES, AND FOR OUR ECONOMY. WE LOOK FORWARD TO WORKING CLOSELY WITH OUR PARTNERS TO IMPLEMENT THIS NEW RESOURCE TO EXPAND OPPORTUNITY FOR AMERICANS FOR GENERATIONS TO COME. TOGETHER, WE CAN AND WE MUST SHAPE THE FUTURE WHERE AFFORDABLE HOUSING IS AVAILABLE TO ALL AMERICANS. THANK YOU, AND LET'S GET TO WORK! � Hello and welcome to HUD�s Overview video on the National Housing Trust Fund (HTF). I am Milagro Fisher, Senior Affordable Housing Specialist in the Office of Affordable Housing Programs which administers the HTF. � The Housing Trust Fund is a new, non-appropriated source of funding for affordable housing production that will complement existing Federal, State, and local housing programs. � This video in one of a series of training videos on the HTF and provides an overview of the program and will be followed by additional videos that will cover specific topics related to implementing the HTF program. � The National Housing Trust Fund was created by the Housing and Economic Recovery Act (Pub. L. 110-289) on July 30, 2008. HERA was major housing legislation enacted to reform and improve the regulation of Fannie Mae and Freddie Mac, the government-sponsored enterprises (GSEs) which purchase mortgages sold by lenders on the secondary mortgage market. HERA established the Federal Housing Finance Agency (FHFA) to oversee the GSEs. � HERA also aimed to strengthen neighborhoods hardest hit by the foreclosure crisis and enhance mortgage protection and disclosures and maintain the availability of affordable home loans. � The goal of the HTF is to increase and preserve the supply of decent, safe, and affordable housing for extremely low-income and very low-income households, including homeless families. � On December 4, 2009, HUD published a proposed HTF formula rule to solicit comments on the proposed formula for allocation of HTF funds to grantees. � On October 29, 2010, HUD published a proposed program rule to solicit comments on the regulations that would govern the HTF. HUD modeled many of the HTF program requirements after provisions found in the regulations for the HOME Investment Partnerships Program to simplify and streamline program requirements and to avoid making grantees create new or separate structures to administer HTF funds. � On January 30, 2015, HUD published an Interim Rule implementing the HTF. The rule establishes both the program requirements and the formula for allocating funds to States. Based on public comments, HUD decided to put the rule in 24 CFR Part 93. � It is HUD�s intention to solicit public comments on the interim rule once funding is available and the grantees gain experience administering the HTF program. � HERA provides for the HTF to be funded by Fannie Mae and Freddie Mac. The (GSEs) are to set-aside an amount equal to 4.2 basis points for each dollar of the unpaid principal balances of its total new business purchases and transfer it to the Federal Housing Finance Agency for the HOPE Reserve Fund, the Housing Trust Fund and Capital Magnet Fund. � On November 13, 2008, before the GSEs could allocate funds to the HTF, the Federal Housing Finance Agency suspended contributions due to the financial condition of the GSEs. � Six years later on December 11, 2014, the Federal Housing Finance Agency lifted the suspension and directed the GSEs to begin setting aside funds for the HOPE Reserve Fund, the Housing Trust Fund and Capital Magnet Fund. � Sixty calendar days after the end of GSEs fiscal year which runs from January to December, the GSEs will transfer the HTF set-aside funds to the FHFA. The FHFA will deposit the money in the U.S. Treasury for the 3 Funds. � HUD will allocate HTF funds by formula. HUD anticipates that grantees will receive their HTF grants by summer 2016. � Per the Statute, only States are eligible to receive an allocation of HTF funds. States are the 50 States, Washington DC, the Commonwealth of Puerto Rico and the insular areas. � A State may choose to be the HTF grantee and receive and administer its grant or it may choose a qualified State-designated entity to be the HTF grantee on its behalf. � As a grantee, the State may directly select and fund projects of eligible recipients or subgrant funds to local governments that will select and fund projects. A local government subgrantee must have an approved consolidated plan (i.e., must be a CDBG or HOME grantee) and its HTF allocation plan must be consistent with the State�s HTF requirements. � Eligible HTF recipients are non-profit and for-profit developers, public agencies, and organizations that have development experience and capacity. � HUD will allocate HTF funds to the States by formula. � The allocation amounts to the 50 States, Washington, DC and Puerto Rico will be calculated using the sum of four need factors (weighted by priority) and multiplied by the cost of producing housing in the State relative to the national average. The formula factors focus on the shortage of both affordable and available rental housing for extremely low-income and very low-income households. � Four need factors are: � Shortage of standard rental units both affordable and available to extremely low-income renter households in the State; � Shortage of standard rental units both affordable and available to very low-income renter household in the State; � Number of extremely low-income renter households in the state living with either incomplete kitchen or plumbing facilities, overcrowding, and paying more than 50% of income on rent and utilities; and � Number of extremely low-income and very low-income renter households in the State paying more than 50% of income on rent and utilities � HUD will determine the allocation amounts as described in the regulation. � The minimum HTF allocation for each of the 50 States and DC is $3 million. � There is no minimum HTF allocation for Puerto Rico and the insular areas. � If the allocation for any of the 50 States or DC is less than $3 million, the shortfall will be taken from allocations above $3 million and from PR and insular areas. � Not later than 60 calendar days after the date that HUD determines the formula amounts, HUD will publish a notice in the Federal Register announcing the availability of the allocations to the States. � The HTF sets income targeting requirements based on the annual amount of HTF funds available. � In any given fiscal year in which the total HTF funds available are less than $1 billion, the grantee must target 100 percent of its HTF funds for the benefit of extremely low-income families or families with incomes at or below the poverty line, whichever is greater. � When the total HTF funds available exceed $1 billion, the grantees must target at least 75 percent of its HTF funds for the benefit of extremely low-income families or families with incomes at or below the poverty line, whichever is greater. Grantees may also target up to 25 percent of each grant for the benefit of very low-income households. � HTF is intended to increase and preserve the supply of affordable housing, primarily rental housing, for ELI and VLI families. It also provides an opportunity for increasing homeownership housing extremely low-income and very low-income families. � At least 80 percent of each annual grant must be spent for rental housing. � Up to 10 percent of each annual grant may be spent for homeownership housing. � And up to 10 percent of each annual grant may be expended on reasonable administrative and planning costs of the HTF. � At least 80 percent of each annual grant must be spent for rental housing activities. � The rents plus utilities are fixed rents and shall not exceed the rent limitation set for extremely low-income tenants or very low-income tenants. � The HTF rent plus utilities of an extremely low-income tenant shall not exceed the greater of 30 percent of the federal poverty line or 30 percent of the income of a family whose annual income equals 30 percent of the median income for the area, as determined by HUD, with adjustments for the number of bedrooms in the unit. � The HTF rent plus utilities of a very low-income tenant shall not exceed 30 percent of the income of a family whose annual income equals 50 percent of the median income for the area, as determined by HUD, with adjustments for the number of bedrooms in the unit. � HUD will publish the HTF rent limits on an annual basis. � HTF assisted units must meet the affordability requirements for not less than 30 years which begins after the project has been completed. � Up to 10% of each annual grant may be spent on modest housing for first time homebuyers � HTF funds may be used for new construction, acquisition-rehabilitation or to provide direct assistance to homebuyers. � Before purchasing the housing, the family must complete financial education and homeownership counseling from a HUD-approved housing counseling agency. � HTF-assisted homeownership housing must meet a period of affordability of 10, 20, or 30 years based on the amount of HTF investment in the unit. � Each State must submit an HTF Allocation Plan as part of its Annual Action Plan. The plan describes how the State will distribute its HTF funds, including how it will use the funds to address its priority housing needs, what activities may be undertaken, and how recipients and projects will be selected . � If the State subgrants HTF funds to a local government, the local government�s HTF Allocation Plan must be included in its action plan and must consistent with the terms of the State�s award of HTF funds. � Because the HTF allocation plan is part of the consolidated plan, the State and any subgrantees are subject to the requirements of its Consolidated Plan citizen participation plan. � HTF funds may be used for production of affordable housing through acquisition, new construction, reconstruction, or rehabilitation of non-luxury housing with suitable amenities. � Eligible project costs include: � Acquisition � Site improvements and development hard costs � Related soft costs � Demolition � Financing costs � Relocation assistance � Operating costs of HTF-assisted rental housing* **Not more than one third of each annual grant may be used for operating cost assistance and operating cost reserves that is provided to rental housing developed with HTF funds. � The State is required to notify HUD of its intent to become a grantee for HTF funding within 30 days after HUD publishes the formula allocation amounts. � � The notification letter must inform HUD of the State department/agency or State Designated Entity which will administer the HTF funds and the contact information. � If the State is designating a State-Designated Entity, a copy of the designation must be included.� � The designation letter must be addressed to the Secretary of HUD. � To facilitate receipt of guidance and training timely, States are encouraged to designate the State department/agency or State Designated Entity which will administer its HTF funds and to inform HUD early. � HUD published the HTF Interim Rule on January 30, 2015. � Fannie Mae and Freddie Mac will transfer the HTF funds to the Federal Housing Finance Agency by March 1, 2016. � HUD will calculate the HTF allocations for each State and publish the allocation in the Federal Register between March and April 2016. � HUD anticipates that HTF grant agreements will be executed commencing summer of 2016. � This presentation was an overview of the National Housing Trust fund. It will be followed by additional videos that will cover specific topics related to implementing the HTF program. � HUD is developing guidance, resources and tools for grantee and will make them available on the HTF website, at www.hudexchange.info/htf � Please visit the HTF website for more information on the HTF and to sign up for the HTF mailing list to receive updates on the program. � One of HUD�s top priorities is to expand affordable housing opportunities for extremely low-income and very low-income families. HUD does not provide Housing Trust Fund assistance directly to individuals. If you are a low-income person or family in need of affordable housing, please visit HUD�s website at www.HUD.GOV to learn more about affordable housing opportunities in your community. � Thank you for watching!