sustaining rural rental housing
Download
Skip this Video
Download Presentation
Sustaining Rural Rental Housing

Loading in 2 Seconds...

play fullscreen
1 / 11

Sustaining - PowerPoint PPT Presentation


  • 328 Views
  • Uploaded on

Sustaining Rural Rental Housing Presented by Colleen Fisher October 14, 2008 Housing Colorado Now! Breckenridge, Colorado Housing Act of 1949 Authorized the USDA to make loans to farmers to construct, improve, repair, and replace dwelling to their farm buildings

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Sustaining ' - Jims


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
sustaining rural rental housing
Sustaining Rural Rental Housing
  • Presented by Colleen Fisher

October 14, 2008

Housing Colorado Now!

Breckenridge, Colorado

housing act of 1949
Housing Act of 1949
  • Authorized the USDA to make loans to farmers to construct, improve, repair, and replace dwelling to their farm buildings
  • Over time the act has been amended to authorize housing loans and grants to rural residents in general
rural definition
Rural Definition:
  • An area with a population less than 50,000 inhabitants; For Section 515, it’s less than 20,000
  • An area not contiguous and adjacent to areas to non-rural area (suburbs are not rural)
section 515 rural rental housing
Section 515 –Rural Rental Housing:
  • Direct loan program
  • Effective 1% interest rate
  • 50-year amortization
  • Original loan terms were 50 years
  • New loan terms 30 years w/ balloon
section 521 rental assistance
Section 521 – Rental Assistance:
  • Rental Assistance program equivalent to project based Section 8
section 538 rural rental housing guaranteed program
Section 538 – Rural Rental Housing Guaranteed Program:
  • Loan Guarantees (construction, acquisition, rehab)
  • No Rental Assistance
  • Terms of loan (up to 40 years)
  • Rates of loans (30 years fixed)
  • Maximum rent – 30% of 115%
  • Average rent – 30% of 100%
characteristics of the section 515 portfolio
Characteristics of the Section 515 Portfolio:
  • 16,500 properties
  • 434,296 units
  • Average size is 27 units
  • Existing tenant base is 57% elderly
  • Average property age is 23 years; 2/3 over 20 years old
  • Average annual tenant income is $9,075
  • 74% of units are covered by RA
  • 8% project based section 8
  • 9% section 8 vouchers
  • 74% of households are female based
preservation issues
Preservation Issues:
  • Aging portfolio
  • Aging GPs
  • Existing limited partners taxable phantom income
  • Average 515 loan balance is $25,722/unit
  • Average current rehab need is $26K
  • In order to fund 100% of the 20 year needs, average monthly reserve contributions would have to rise from $33 to $74; this would make no provision for unit upgrades
  • Mortgage Restructuring
challenges facing rental rural housing
Challenges Facing Rental Rural Housing:
  • Emphasis on preservation
  • Need to make RD MPR Program permanent
  • Housing and Economic Recovery Act of 2008
  • Tax Credits-Investment in Rural Complexes
carh webmap
CARH Webmap
  • Search for Section 515 properties by state and county
  • www.carh.org
ad