Office of Affordable Housing Programs Update COSCDA March 15, 2016

Housing Trust Fund  HTF established by HERA in 2008  GSEs must deposit portion of unpaid principal balance of total new business purchases  In 2008, FHFA suspended deposits indefinitely due to GSE financial viability  In December 2014, FHFA terminated this suspension beginning with

Housing Trust Fund  GSEs published financial statements in Feb.  Formula allocations: Published in Federal Register in April.  States will submit HTF Allocation Plans  HUD has 45 days to review  First grants will be made this summer, continuing through

Housing Trust Fund Funds should be sufficient to provide statutory $3 million minimum/State. States should be planning for HTF administration, including the citizen participation process and HTF allocation plan development and submission. State-designated agencies and other info: 4

HOME FY 2015 Accomplishments 5 30,718 HOME units completed 14,779 rental units (48.1%) 10,481 homebuyer units (34.1%) 5,458 homeowner rehab units (17.8%) 11,935 households assisted with TBRA

HOME Five-Year Accomplishments 6 FY 2011FY 2012FY 2013FY 2014FY 2015 Rental Units39,16228,77920,92920,54014,779 Homebuyer Units21,59320,12915,35012,85410,481 Homeowner rehab Units9,1379,01710,5476,4315,458 Total units Completed69,89257,92546,82639,82530,718 TBRA Households Assisted15,68315,92912,36311,74411,935

HOME Budget HOME FY 2016: $950 Million $50 million increase from FY 2015 FY 17 Administration Request - $950m New Legislative Proposals in Budget: Eliminate 24-month commitment deadline Eliminate 15% CHDO set-aside 7

Legislative Changes – FY Day Notice for Eviction/Non-Renewal HOME tenants required to be provided 30 days written notice of eviction or decision not to renew lease – NO EXCEPTIONS. FY 16 law establishes an exception to 30 day notice requirement if a tenant poses “a direct threat to the safety of the tenants or employees of the housing, or an imminent and serious threat to the property.” State and local eviction laws must be followed. 8

Legislative Changes – FY 2016 Community Land Trust Provision HOME homebuyer units under a RESALE provision must be transferred to another low- income buyer. Rights of first refusal not permitted except for the PJ. FY 16 law permits CLTs to exercise purchase options, rights of first refusal or other preemptive rights to purchase to preserve affordability of the housing. 9

Commitment Issues Commitments –deobligations for failure to meet the 24-month commitment requirement are increasing substantially. – This is before the planned changed from a cumulative to a grant-specific compliance test. – HUD deobligated over $16 million for failure to commit in FY 2015, compared to just $3.8 million in FY 2012 and $12.2 in FY – New regulations, difficult market conditions, diminished PJ staffing/capacity are causes. 10

HOME Program Deobligations Requirement Years 2008 – 2013 ( Deadlines) Commitment Deobligations CHDO DeobligationsTotal Grant YearDeadline Year Amount# # # $3,891,32313$609,2979$4,500, $3,766,92614$1,071,1529$4,838, $13,440,78942$2,659,86615$16,100, $18,194,99447$774,9858$18,969, $12,297,43927$1,185,80115$13,329, $16,031,04437$4,014,22117$20,045,26554 TOTALS $67,622,515180$10,315,32173$77,937,

HOME Rulemaking HUD is drafting regulations implementing the grant-specific method of determining compliance w/HOME commitment and CHDO set-aside requirement: – Required by GAO Decision: “cumulative method” violates HOME statute 12

Recent HOME Guidance CPD : Maximum Per-Unit Subsidy Limits for the HOME Program CPD-15-09: Requirements for Committing HOME Funds – Webinar planned CPD-15-11: Development & Implementation of HOME Underwriting /Subsidy Layering Guidelines – Webinar planned 13

Recent HOME Guidance HOME FACTS Vol. 7, No. 1: Receipt Fund Types in the HOME Investment Trust Fund Local Account: Program Income, Repayments, and Recaptured Funds – Webinar conducted March 9 th 14

Upcoming HOME CPD Notices Cost Allocation Homebuyer Policies and Underwriting Match CHDOs For information on HOME training, policy guidance, TA products, visit Sign up for HOME listserv 15

HOME Training and TA 3 Web-Based Building HOME deliveries – Live webinar series with office hours CHDO Training (for CHDOs and PJs) – PJ Peer Groups – CHDO Basics; Organizational Planning for CHDOs; Homebuyer Development for CHDOs; Rental Development for CHDOs; Strategic Management for CHDOs 16