South Carolina Housing Trust Fund

South Carolina Housing Trust Fund

Upcoming Program Changes

January, 2006

Emergency Repair

Emergency Repair

Be the result of a recent event, such as a fire or flood; Not be the result of accumulated deferred maintenance (see Owner-Occupied

Rehabilitation activity); Not be covered by existing insurance.

New DefinitionEmergency Repair means required repairs to owner-occupied units that are necessary to eliminate clear and present danger(s) to the occupant(s). In order to be classified as an emergency, the deficiency(s) to the unit must:

Other conditions that will be considered in determining qualification as an emergency for purposes of this program include:

Units occupied by children under the age of 12; Units occupied by disabled individuals of any age; Conditions that, if not repaired immediately, would cause further or irreparable damage; Units where the heating, cooling, electrical, or plumbing systems are not functioning or do not exist.

Owner-Occupied Rehabilitation

Owner-Occupied Rehabilitation Block Grants will be limited to $120,750 per

application, including any developer fees. Participants on Probationary Status will be

limited to $69,000 per Block Grant, including any developer fees.

Participants may apply for a new Block Grant when any open Owner-Occupied Rehabilitation Block Grant has $34,500 or less remaining unfunded.

Owner-Occupied Rehabilitation In no case may a participant have

more than two (2) open Owner-Occupied Rehabilitation Block Grants at any time.

Beneficiary families and/or properties do NOT need to be identified at the time of Block Grant application.

NO work write-up is required at the time of Block Grant application.

Owner-Occupied Rehabilitation

Two pieces to the process… Block Grant Application

“Reserves” funds Apply during open cycle

Owner-Occupied Beneficiary Request Can be submitted at any time with an

open Block Grant Must contain all beneficiary information

and work write-ups

Owner-Occupied Rehabilitation Workflow

Block Grant Application Completed

and Submitted

HTF Reviews and Authority

Board Approves

Technical Assistance –

Funding Agreement

Signed

Beneficiary Request

Prepared – With Exhibits

HTF Reviews & Approves –

Inspection Ordered

Restrictive Covenants

Signed – Work Begins

Draw Requests

Final Inspection Performed

Draw Paid – File Closed

Block Grant Process Beneficiary Process

Owner-Occupied Rehabilitation Workflow

Helpful Hints… Don’t submit Beneficiary Requests

until you’re ready to begin work Begin work within 30 days Make sure you have proof of income Check your deed, recheck your deed,

and then recheck your deed again Take your time on the work write-up –

the homeowner has to live with it

Owner-Occupied Major Rehabilitation

Owner-Occupied Major Rehabilitation

Major Rehabilitation is NOT available as a block grant, nor can existing block grant funds be used for this purpose.

Each unit must be applied for individually during an open application cycle.

For owner-occupied properties requiring substantially more than $15,000 in rehabilitation costs, a Major Rehabilitation option is available

Owner-Occupied Major Rehabilitation Awards under this program will include:

$15,000 as a forgivable loan An additional $10,000 available as a repayable loan

at 1% interest over a 20 year term ($45.99 per month).

Maximum Developers Fee: $3,000 or 15% of the HTF award, whichever is less

In order to apply for this program, the applicant must show and use matching funds equaling at least 25% of the total HTF amount requested. This match cannot require repayment by the

beneficiary, except in the event of property sale.

Homeownership Acquisition

Homeownership Acquisition Block Grant applications will be limited to

$80,500 per application, including any developer fees.

Participants on Probationary Status will be limited to $46,000 per Block Grant, including any developer fees.

Participants may apply for a new Block Grant when any open Homeownership Block Grant has $23,000 or less remaining unfunded.


In no case may a participant have more than two (2) open Homeownership Block Grants at any time.

Beneficiary families and/or properties do NOT need to be identified at the time of Block Grant application.


Two pieces to the process… Block Grant Application

“Reserves” funds Apply during open cycle

Homeownership Beneficiary Request Can be submitted at any time with an

open Block Grant Must contain all beneficiary and property

information

Homeownership Acquisition Workflow

Block Grant Application Completed

and Submitted

HTF Reviews and Authority

Board Approves

Technical Assistance –

Funding Agreement

Signed

Beneficiary Request

Prepared – With Exhibits

HTF Reviews & Approves

Closing Documents & Check sent to

Closing Attorney

Closing Documents Retuned to

HTF

Block Grant Process Beneficiary Process

Homeownership Acquisition Workflow

Helpful Hints… Don’t submit Beneficiary Requests

until the closing date is set Allow three (3) weeks for processing Make sure you have proof of income Use an experienced closing attorney

Supportive Housing

Supportive Housing

Create a Supportive Housing activity within HTF

The Shelter activity will be combined with Transitional Housing as a new Supportive Housing activity.

Leases for properties within the Supportive Housing activity are no longer required, beneficiary lists will be required instead.

Pro-forma income statements will not be required for Supportive Housing.

Supportive Housing The income stream for the organization

requesting the funding, as well as any operating subsidy for the property, will be examined for financial feasibility.

Maximum funding for Shelters and Transitional Housing will be $300,000 per project.

Match requirement for each housing type will be 25%.

Rental Housing

Rental Housing

Revise Underwriting Guidelines for smaller projects

Review the necessity of Market Analyses on smaller projects.

Review and possibly revise reserve requirements.

Review and possibly revise debt coverage ratio requirements (window between minimum and maximum).

Rental Housing

Review and possibly revise vacancy rate assumptions for population-specific projects.

Look at alternatives to bonding and letters of credit such as equity in the project.

HTF Contact Information

SC State Housing Finance & Development Authority

Housing Trust Program300 C Outlet Pointe Blvd.Columbia, SC 29210

803/896-9001

www.SCHousing.com

HTF Contact InformationStaff Phone Fax Email

Matt RiversDirector – HTF

(803) 896-8774 (803) 551-4934 [email protected]

Delores EdwardsProject Coordinator

(803) 896-9345 (803) 551-4891 [email protected]

Linda Hough-Hicks Project Coordinator

(803) 896-9338 (803) 551-4896 [email protected]

Charles McCulloughProject Coordinator

(803) 896-9511 (803) 551-4918 [email protected]

Dorothy SuttonProject Coordinator

(803) 896-9360 (803) 551-4948 [email protected]

Bonus Section Trials and

Tribulations

Trials and Tribulations

It’s the little things…. Submit COMPLETE documentation –

Incomplete submissions will be returned Deeds – Learn to read and understand

them Work write-ups are NOT estimates – You

and the homeowner have to live with them Don’t order inspections that you’re not

ready for We don’t print checks, the State Treasurer

does, so allow at least two weeks

Trials and Tribulations

Even MORE little things…. Don’t submit Beneficiary Requests until

you’re ready to do the deal Don’t request more money in a Block Grant

than you can realistically use in a year My ears are ringing, and so is the phone –

Email us! Get a written response! Check that income, verify that income,

document that income

www.SCHousing.com