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South Carolina Housing Trust Fund. Upcoming Program Changes January, 2006. Emergency Repair. Emergency Repair. New Definition. 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);

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south carolina housing trust fund

South Carolina Housing Trust Fund

Upcoming Program Changes

January, 2006

emergency repair
Emergency Repair

New Definition

  • 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.

Emergency 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 rehabilitation1
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 rehabilitation2
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
slide8

Block Grant Application Completed and Submitted

Beneficiary Request Prepared – With Exhibits

Draw Requests

HTF Reviews and Authority Board Approves

HTF Reviews & Approves – Inspection Ordered

Final Inspection Performed

Technical Assistance – Funding Agreement Signed

Restrictive Covenants Signed – Work Begins

Draw Paid – File Closed

Owner-Occupied Rehabilitation Workflow

Block Grant Process

Beneficiary Process

owner occupied rehabilitation workflow
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

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

  • 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.
owner occupied major rehabilitation1
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.
homeownership acquisition1
Homeownership Acquisition
  • 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.
homeownership acquisition2
Homeownership Acquisition

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
slide17

Block Grant Application Completed and Submitted

Beneficiary Request Prepared – With Exhibits

Closing Documents Retuned to HTF

HTF Reviews and Authority Board Approves

HTF Reviews & Approves

Technical Assistance – Funding Agreement Signed

Closing Documents & Check sent to Closing Attorney

Homeownership Acquisition Workflow

Block Grant Process

Beneficiary Process

homeownership acquisition workflow
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 housing1
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 housing1
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
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

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 tribulations1
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
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