1. 2006 NIFA Affordable Housing Deal Makers’ Marketplace Dealing with Out of Date Housing Stock January 2006

2. Roger D. Nadrchal Executive Director

3. Staff Roger Nadrchal, Executive Director Leslie Coleman, Program Director Mitch Borst, Housing Assistant Kelli Holton, Administrative Assistant

4. Mission Statement To strengthen families and communities by developing opportunities that make homeownership a reality

5. We renovate “out of date housing stock” to make them safe, energy-efficient and affordable

6. Service Area Purchase/Rehab/Resell Program is available to families and individuals living in communities within a 40-mile radius of Norfolk.

7. Purchase / Rehab / Resell Program EVCDC Designed Original Program Implemented in 1997 Very Successful To-Date

8. Achievements 201 Units Rehabilitated Property Value: $13,500,000 Down Payment Assistance: $2,400,000

9. Housing Project Averages 2005Overall Initial Purchase$61,850$55,200 Resale Value$74,500$67,300 1 st Mortgage$64,137$56,676 Rehabilitation$ 8,500$ 7,200 Homebuyer Equity$ 2,708$ 1,600 Development Fee$ 4,111$ 2,500

10. Organization identifies housing unit Homebuyer identifies housing unit (Preferred) House Selection

11. Initial Inspection Once property is identified, inspection is arranged Inspection completed by qualified inspector Property inspected according to: Minimal Housing Quality Standards, (HQS) DED Housing Rehab Standards Other requirements: City, State, etc.

12. Review Results of Inspection Rehabilitation specifications reviewed –Review repairs with homebuyer –Review costs with homebuyer –Determine re-sale amount –Determine amount of cash needed from buyer –Determine amount of financing required

13. Submit Offer to Purchase Purchaser is organization, not homebuyer Amount of offer determined with homebuyers’ input Offer can be cash or loan Offer is “as-is”, no repairs required of seller Set purchase date as soon as possible

14. Contingencies on Offer to Purchase Homebuyer obtaining loan approval Appraisal to meet purchase price of organization’s homebuyer Acceptable inspections (electrical, plumbing, HVAC, etc.) Lead Based Paint inspection Termite inspection Survey Title Insurance

15. Appraisal Requirements Appraisal is ordered “subject to” by homebuyers’ lender –Eliminates need to have 2 different appraisals –Allows appraisal to be used for permanent financing If valuation is acceptable, proceed to purchase property

16. Purchase/Rehab of Property Acquire property with Closing Agent or Realtor Have utilities put into organizations name Give Notice to Proceed to rehabilitation contractors and/or homebuyers –Use “Lead Safe Work Practices” when lead- based paint is present

17. Resale of Property Determine all repairs are completed Contact lender to have appraiser complete final inspection to review list of repairs were completed according to write-up Establish closing agent, date & location If providing Down Payment Assistance, prepare loan documents as needed Sell property, and finalize sale

18. Purchase/Rehab/Resell Example PURCHASE PRICE OF HOME: $65,000 Rehab Costs: (+) $ 5,000 Development Fee: (+) $ 5,000 PURCHASE PRICE FOR HOMEBUYER: $75,000 Lender’s Closing Costs: (+) $ 4,500 TOTAL EXPENSES TO BE PAID BY HOMEBUYER: $79,500 Elkhorn Valley CDC’s Down Payment Assistance (20%): (-) $15,000 Buyer’s Cash: (-) $ 1,000 TOTAL CASH AVAILABLE: $16,000 ESTIMATED MORTGAGE LOAN NEEDED: $63,500

19. We educate and enable individuals and families to be responsible homeowners

20. We help homebuyers afford the American Dream

21. Achievements $2,400,000 of down payment and closing cost assistance provided to 275 qualified homebuyers.

22. Lenders REALTORS® Contractors Closing Agents Community Leaders Norfolk Housing Agency Homebuyers/Homeowners Partners in Community Revitalization

24. Thank you for your time and attention!!