REHAB IN RURAL COMMUNITIES: Janice Kocher Jess Peterson Marilyn Vogrinec BUILDING STRONGER COMMUNITIES

USDA RURAL DEVELOPMENT HOUSING PROGRAMS

Mission Statement “Increase economic opportunity and improve the quality of life in rural America.” —Business and cooperative programs —Community programs —Housing Programs

Loan Program 100% financing (no down payment required). Subsidized loans down to 1%. Available to low- and very low- income families. Funding is limited. 33- to 38-year term, fixed rate. 502 Direct

—Loan funds for participants are provided through the 502 Direct Loan Program. —Groups of 6 to 8 families work together to complete their homes. —No one moves in until all the homes are complete. —Program has been around since —Utah’s first grantee started in —We currently have 8 participating grantees. Mutual Self-Help Model

Benefits Leveraging of funds (federal and Olene Walker). Sweat equity. Homeowners learn life- changing skills that may lead to better jobs and that enable them to maintain their homes.

Assistance Grant Provides homeownership education. Loan packaging. Construction supervision. 523 Technical

Loans and Grants Remove health and safety hazards. Improve or modernize a home: —Windows —Furnace —Repair or replace roof Make homes accessible for people with disabilities. Home Improvement

Loan Eligibility Properties must be in a rural area. Applicants must show evidence of home ownership (tax notices, deeds). Must be very low-income (50% AMI) or below.

Loan Rates and Terms Maximum loan amount: $20,000. Interest rate: 1%. Term: Not to exceed 20 years.

Grant Eligibility —62 years old or older —Must show evidence of home ownership —Do not have repayment ability for a loan —Home in a rural area —Must be very low-income (50% AMI) or below

Grant Amount $7,500 lifetime assistance. No repayment after five years. Maximum

Housing Program 102% financing. No down payment required. 30-year term, fixed rate. Available to low- and moderate-income families. 502 Guaranteed

How It Works Borrower makes application to an approved lender. Lender underwrites the loan. Underwritten loan submitted to Rural Development. Rural Development issues a conditional commitment, allowing the lender to close.

—100% financing with no down payment requirement —2% up-front fee may be —Subsidy neutral program —Utah provided families the opportunity to own a home Benefits

514/515/516 Multi-Family Housing Programs Provides funding opportunities for non-profits and for-profit corporations to build affordable housing projects. Funding is provided through the Notice of Funds Available (NOFA) system.

Revolving Loan Fund Funding provided through the NOFA system (once a year). Used to preserve and rehabilitate 515 multi-family housing projects. Olene Walker partnership. and Rehabilitation Preservation

Multi-Family Housing Up to a 90% government guarantee. Eligible purposes: —New construction —Acquisition with rehabilitation of at least $6,500/unit —Housing with five or more adequate units 538 Guaranteed

Eligible Uses All hard costs. Soft costs—professional services, bond fees, developer’s fees, land acquisition and development, and financing costs

Eligible Borrowers Individuals, partnerships, non- profits, and for-profit organizations. State and local agencies, trusts, Indian tribes. Work with an approved lender.

Preservation Grant Funding provided through the NOFA process. Non-profit, public bodies, and Native American tribes renovate deteriorating homes and rental properties. 533 Housing

Utah Group Work Camps The purpose of Utah Group Work Camps is to rehabilitate Native American homes on the Navajo Reservation. Coolest partnership EVER. State, federal, and local governments, banks, and a faith-based organization working together.

History Started in From : —4,225 volunteers —132,932 volunteer hours —143,932 total project hours —613 homes completed

Group Work Camps (faith- based organization) provides most of the volunteers. Between 255 and 450 children participate each year. Week-long camp. Children pay to go to camp. Chaperones provide transportation to work sites. How It Works

July-January—Chapter houses collect applications January-February—Weatherization staff visits site, qualifies applicants April—Site writing (determines what work will be done and how much it will cost June or July—Work camp is held Weatherization Staff

—Roof replacement —Siding repair/replacement —Mobile home skirting —Wood stove replacement —Chimney repair/replacement —Exterior paint —Window replacement —Porch repair/replacement —Shuffle ramp installation or replacement Work Performed

Leverage funds. More families served. Find solutions to problems. Working toward a common goal. of Partnerships The Importance

Locate the state office (rurdev.usda.gov). Set up an appointment with the Housing Program Director. Look for partnership opportunities. USDA-RD Working with

SINGLE FAMILY REHABILITATION and RECONSTRUCTION PROGRAM

What is the SFRRP? The SFRRP also offers direct reconstruction loans to homeowners where the cost to rehabilitate the home exceeds the cost of a new home. The SFRRP offers direct rehabilitation loans to enable homeowners to maintain safe, decent and livable conditions.

—Low-income (<80% AMI) —Own the home and the land on which it resides —Owner occupied —Primary residence —Live in rural Utah —Single family property (1-4 units) OWHLF Basic Qualifications

OWHLF Guidelines Manufactured homes built prior to 1976, reconstruction is an option, rehabilitation is not. No open judgments or liens. Property taxes must be current.

OWHLF Terms Payments are not bigger than 31% of the household income. Very flexible loan terms and interest rates.

Emergency Grant True emergency. Below 80% AMI. Grants up to $4,999. Is this the last resort? OWHLF

—60% AMI or below —Must meet one or more of the following criteria: CDBG Basic Qualifications  62 years old  Dependent children 10 years old or younger  Extraordinary medical expenses  A permanent household member has a disability that requires modifications to the home to accommodate the disability

CDBG Guidelines Manufactured homes built prior to 1976, rehabilitation is not an option. No open judgments or liens. Property taxes must be current.

CDBG Terms Up to $10,000. Once in a lifetime. No repayment after five years.

SINGLE FAMILY REHABILITATION in RURAL UTAH

Goal of Rehab Remedy safety, sanitary, and code issues.

—Roofing —Plumbing —Electrical —Modifications  Bathroom  Ramps  Widen doors —Flooring —Sewer issues  Lateral  Beneath home —Windows —Insulation —Guardrails, handrails, and grab bars —Drainage issues —Mechanical  Water heater  Furnace What types of problems do we correct?

Bathroom Modifications BEFORE AFTER

Health and Safety BEFORE AFTER

Health and Safety BEFORE AFTER

Drainage and Safety BEFORE AFTER

Access Modifications BEFORE AFTER

Electrical AFTER BEFORE

Roofing, Siding, Rain Gutters BEFORE AFTER

Wheelchair Modifications BEFORE AFTER

Siding and Room Additions BEFORE AFTER

Leveraging —CDBG  Set aside for single family rehab —OWHLF  Currently state funds  More flexible —USDA-RD  504 Loans  504 Grants (62+) —Weatherization

Challenges —Age of housing stock  Average year built between 1910 and 1960 —Occupancy during rehab —Hidden issues  Mold  Insufficient structure  Lead-based paint

SELF-HELP ACQUISITION REHAB

—Mortgage includes repair money —Homeowner sweat provides the equity —Construction supervisor works one- on-one with homeowner —Win-win situation  Community/neighborhood wins – home is improved avoiding blight  Homeowners win – gain experience & knowledge to maintain home  Homeowners win – have equity when they move into home  USDA wins – gains an improved asset Self-Help Acquisition Rehab

—USDA —Provides first mortgage —OWHLF —Provides $15,000 second mortgage —CDBG —Provides closing cost assistance up to $3,000 —Deferred, no interest loan —Weatherization —Possible after move-in if qualified Leveraging

—Motivation of homeowner —Distance between projects —Providing the “right” tools at the “right” time —Coordination between agencies —Inventing the wheel  Each program structured differently  How to … —Quantity purchasing impossible  Each project has different components Challenges

Flickr user arbyreedarbyreed Flickr user efloneflon Image Credits Janice Kocher Jess Peterson Marilyn Vogrinec QUESTIONS?