HOMEInvestment Partnership Program Presented by: -Dale Quisgard, State of Maryland , DHCD HOME Program Manager -Susan Devlin, Habitat for Humanity Maryland, Executive Director -Robert Rommel, State of Maryland , DHCD HOME Program Rehabilitation Inspector Martin O'Malley GOVERNOR Anthony G. Brown LT. GOVERNOR Raymond A. Skinner SECRETARY Clarence J. Snuggs DEPUTY SECRETARY
HOME The HOME program began in 1990 and has funded over 1 million units of affordable housing since inception • Objectives • Provide decent affordable housing to lower-income households, • Expand the capacity of nonprofit housing providers, • Strengthen the ability of state and local governments to provide housing, and • Leverage private-sector participation. • Program Regulations • The HOME Program regulation is at 24 CFR Part 92 • Additional guidance, including notices can be found at http://www.hud.gov/offices/cpd/affordablehousing/library/
Eligible Jurisdictions Maryland offers HOME funds to applicants throughout the State with the exception of the following entitlement jurisdictions which have their own HOME Program • Anne Arundel County, Baltimore City, Baltimore County, Harford County, Howard County Montgomery County and Prince George’s County Exceptions can be made on a case to case basis to fund projects within these jurisdictions.
ACCESSING HOME FUNDS • Each fall funds are awarded under the “HOME Initiatives” competitive round. Sub-Recipients may apply for funding through this round to finance programs, projects and activities that fill a need not met by other DHCD housing programs. • Potential homebuyers seeking assistance , such as closing cost and/or down payment assistance, will access funds directly from Sub-Recipients who have been awarded funds through the HOME Initiative for this activity.
ACCESSING HOME FUNDS (Continued) • Applicants seeking homeowner rehabilitationwill have access to funding directly through a local sub-recipient in their jurisdiction or, if there are no sub-recipients in their jurisdiction, directly through DHCD Special Loan Programs. • Applicants seeking funds for housing development may apply for funding through DHCDs Multi-Family Yearly Funding Round(s)
Eligible HOME Activities • Homebuyer Acquisition Assistance • Owner-Occupied Rehabilitation/Replacement Housing • Rental Housing • Tenant-Based Rental Assistance (TBRA)
Homebuyer Acquisition Assistance Frederick County • Eligible Activities: • Down payment and closing cost assistance • Interest Rate Buy downs • Owner Requirements: • Low income – Household Income (<80% of AMI) • Must occupy home as primary residence
Homebuyer Acquisition Assistance (Continued) Garrett County • Eligible Properties: • 1-4 Unit dwelling, condominium, cooperative or manufactured home • Must meet property standards prior to closing • Purchase price <95% of the area median purchase price • Affordability Period: < $ 15,000 5 years $ 15,000 - $ 40,000 10 years >$ 40,000 15 years
Homebuyer Acquisition Assistance (Continued) Cecil County • Application Process: • Homebuyers will apply directly to a Sub-Recipient, who has been awarded funds from DHCD Home Initiatives and is administering a Homebuyer Assistance Program. • Sub-Recipient must obtain environmental review approval from State prior to homebuyer entering into any binding contracts/commitments. When a property has been identified, the environmental package is forwarded to DHCD for approval/sign off. • Upon environmental approval Sub-Recipient may continue to process application.
OUR EXPIERENCE WITH THE STATE HOME PROGRAM Susan Devlin
Our Mission Habitat for Humanity Maryland is dedicated to enhancing the effectiveness of Maryland Habitat affiliates through advocacy, resource development, training and disaster services. Together we increase our capacity to transform the lives and communities of our low-income neighbors using appropriate housing solutions.
Our Purpose • Fundraise on a large scale for 15 Maryland affiliates • Advocate for affordable housing at the local, state and federal level • Provide training and technical assistance to affiliates • Assist during times of disaster in areas in need across Maryland
Housing Solutions • New Construction – Ground up construction of townhouses, single family houses, and condos • Rehabilitation – Rehabilitation of vacant, distressed properties • Weatherization/Repair – Painting, accessibility improvements, roof replacement, foundation work, mold remediation and increasing energy efficiency by adding insulation, storm doors, etc.
History • Since 2009, Habitat for Humanity Maryland has received $225,000 in HOME Funds. • Funds have been used for • down payment and • closing cost assistance
HOME Funds Used by 8 Habitat Affiliates Habitat Montgomery Serving Montgomery County* Habitat Frederick Serving Frederick County* Habitat Choptank Serving Talbot* and Dorchester* Counties Habitat Wicomico Serving Wicomico County* Habitat Patuxent Serving St. Mary’s* and Calvert Counties Habitat Chesapeake Serving Anne Arundel, Howard, Baltimore Counties and Baltimore City* Sandtown Habitat Serving Baltimore City Neighborhood - Sandtown-Winchester* Washington Habitat Serving Washington County
Families Served • 59 Habitat families have benefited from HOME Funds since 2009 and • An additional 12 families are expected to benefit by the end of 2012.
Application Process - Habitat for Humanity Maryland • Submits a joint application representing all interested and eligible affiliates • Provides guidance and oversight to participating affiliates • Reviews all required documents prior to submitting to DHCD • Manages all aspects of grant management for Affiliates
Application Process - Affiliates • Determine affiliate need • Provide addresses of projects to be submitted with application • Provide homeowner education • Work with title company to have required documents at closing • Submit documents to Habitat Maryland for review and submission
Distribution of Funds • Affiliates submit addresses that will close during the grant period • Estimate down payment/closing cost assistance needed • Habitat Maryland distributes the awarded funds in an equitable manner
Owner-Occupied Rehabilitation/Replacement Housing • Application Process: • If the homeowner lives in an area served by a participating Sub-Recipient then they will apply directly to that Sub-Recipient. If the homeowner is in an area where there is no Sub-Recipient then they will apply directly to DHCD’s Special Loans Program • DHCD Loan underwriter determines if the applicant and the home meet the program criteria • The Underwriter then assigns the case to a rehabilitation specialist who inspects home to determine the amount of work required and the estimated cost for such work.
Owner-Occupied Rehabilitation/Replacement Housing (Continued) • Application Process (Continued): • The loan underwriter continues to process case - continuing to collect any additional items needed. Once the estimated cost for work is received the underwriter will determine if funding is feasible. • As with all HOME/Federally funded programs an environmental review and approval must be received prior to entering into any binding agreement (i.e. Construction Contract, Loan Commitment)
Owner-Occupied Rehabilitation/Replacement Housing (Continued) • Eligible Properties: • Property must be the owner’s principal residence • 1-4 Unit dwelling, condominium, cooperative or manufactured home. • After rehabilitation value <95% of area median purchase price for the area, as published by HUD • Loan cannot exceed maximum subsidy requirements determined by HUD • Units must meet applicable property standards upon completion of rehab
Owner-Occupied Rehabilitation/Replacement Housing • Eligible Activities/Rehabilitation • Rehab of Existing Home to Code – which may include the following: • Essential Improvements • Energy related improvements • Incipient repairs and general property improvements of a non- luxury nature • For pre-1978 properties, lead based paint rules @ 24 CFR part 35, Subpart J apply • All code items must be addressed
Owner-Occupied Rehabilitation/Replacement Housing (Continued) • Replacement Housing • Replacementof existing home is permitted when existing home is determined, by the State DHCD Inspector, to be beyond repair or too costly to repair. (As part of approval process for replacement homes all senior lien holders must provide written approval of the demolition of the existing house) • Eligible applicants must have owned and occupied the home as their primary residence for at least five years prior to applying. • The replacement housing will be of modest design and materials.
Owner-Occupied Rehabilitation/Replacement Housing (Continued) • Replacement Housing
Owner-Occupied Rehabilitation/Replacement Housing The Rehabilitation/Replacement Housing Inspection Rob Rommel
Owner-Occupied Rehabilitation/Replacement HousingSite Inspections • WHY AM I HERE/WHAT AM I LOOKING FOR? • Major code violations • Structure issues • Weatherization issues • Minimum livable codes • Sanitization issues • Health and Safety • Slip trip and falls
Owner-Occupied Rehabilitation/Replacement HousingSite Inspections • THE INITIAL ASSESSMENT • In order to help with the initial assessment of the home and what repairs may be needed the homeowner is asked several questions regarding their home: • How old is your home and how long have you lived there? • Have you done any major renovations? • Age of roof and when were shingles last replaced? • Heating source? How old is it? Is it serviced yearly? Any problems? • Windows and Entrance Doors – Any problems with drafts or opening?
Owner-Occupied Rehabilitation/Replacement HousingSite Inspections • THE INITIAL ASSESSMENT(continued) • Do you have breakers or fuses? • Are there operable outlets in every room? Do you have a problem with breakers or fuses blowing? • Do you have Hot Water? Are all faucets operable ? • LEAD ISSUES – Age of individuals living in home? Is anyone living in home or are there future occupants within the target age group? • Discuss the items that the homeowner wants. Are these allowable under the program?
Owner-Occupied Rehabilitation/Replacement HousingSite Inspections • THE PROGRAM • Explanation of the program is provided which includes the steps that will be followed, time frames for write up, bids , preconstruction meetings/contract, appraisal commitment letter, closing to start • Explain that they will need to begin looking for and finding contractors immediately so that they will have 45 to 60 days to obtain bids.
Owner-Occupied Rehabilitation/Replacement HousingSite Inspections • Code Violations: • With HOME funds the house must be bought up to code. • Every home build before 2012 has some type of code violation. • Take into account the date the home was built and is it in code compliance for that period. • When code violations are found, if it is a hazard to occupants, it must be replaced or repaired and when gutting an entire room that entire room must be bought up to code.
Owner-Occupied Rehabilitation/Replacement HousingSite Inspections • Code Violations: Minimum livable codes • Protects the public health, safety and welfare in residential structures and premises by establishing property maintenance standards. • Follow the 2012 International Property Maintenance Code (IPMC) effective September 17, 2012
Owner-Occupied Rehabilitation/Replacement HousingSite Inspections • THE PHYSICAL INSPECTION • Type and Style of Home: • In order to begin evaluating and correcting deficiencies you will need to know the type and style of the construction of the home: • Type: • Balloon Platform Modular • Manufacture Log Post and Beam
Owner-Occupied Rehabilitation/Replacement HousingSite Inspections • Type and Style of Home: • Style - can be one, two or three story: • Colonial Victorian Contemporary • Historic Tudor Cape Code • Duplex/Multiplex Townhouse/Row Condominium • Modular Cottage or Log Cabin Chalet
Owner-Occupied Rehabilitation/Replacement HousingSite Inspections • THE PHYSICAL INSPECTION • Structure: • Look for structural issues: Sagging and bulging roof lines, plum lines of exterior walls, floors that are weak, have holes, are leaning and or have bulges or are sagging. Damage to foundation like deteriorated/leaning foundation walls, piers and girders. Gaps between walls and ceiling and/or floors. Doors and windows are binding, settlement.
Owner-Occupied Rehabilitation/Replacement HousingSite Inspections • Structure: • Grounds: • Divert ground and runoff water away from house • (a) Inadequate or negative drainage • (b) Gutter and downspouts to control water. • (c) Sump pumps, drain tile • (d) Ideally you want the crawl space floor to be above the outside ground. • .
Owner-Occupied Rehabilitation/Replacement HousingSite Inspections • THE PHYSICAL INSPECTION (continued) • Roofing: • Type • Style: Gable, Hip, Mansard, Gambrel or Shed • Material: asphalt/fiberglass, wood, roll, metal, slate or tile, • Condition: sagging, bulge, irregular, exposed wood, visible rot sheathing is weak and/or framing is bouncy • Life expectancy; (Water infiltration and possible concealed damage from deteriorated, curling, cracking, torn, missing, eroded, lifting, not sealing, nail pops, blistering, premature wear, exposed matrix, wind damage, crooked rows or slots, inadequate pitch and fungus) • .
Owner-Occupied Rehabilitation/Replacement HousingSite Inspections • Weatherization issues (ENERGY EFFICIENCY) • Siding • Age condition voids possible concealed damage, fungus issues, expose wood, water infiltration • Windows and Doors: • Damage, Lead issues, operational issue, energy efficiency safety issues, • .
Owner-Occupied Rehabilitation/Replacement HousingSite Inspections • Insulation: • Lack of or increase R-value • Vapor barriers • Sealants • Sanitization issues • Health and Safety • Lead • Mold • Smoke detector/Carbon Monoxide • Egress
Owner-Occupied Rehabilitation/Replacement HousingSite Inspections • Slip, trip and falls • Carpet/vinyl • Decks/patio/ Stoops • Railings/barriers at decks, balcony and doors (Slider) • Stairs/steps • Sidewalks/ Landings • Driveway
Owner-Occupied Rehabilitation/Replacement HousingSite Inspections • Kitchens • Deteriorated Cabinetry: falling off the wall, frames falling apart, doors and drawers damaged , heavy wear • Substandard workmanship • throughout/Incomplete • Fixtures not operating properly • Sanitization issues
Owner-Occupied Rehabilitation/Replacement HousingSite Inspections • Bathrooms • Sanitization issues • Heavy wear • Water Damage, leaks • Weak floors • Drain and water supply • Slip/trip hazards • Fixture not operating properly • Mold /Mildew
Owner-Occupied Rehabilitation/Replacement HousingSite Inspections • Electrical • Evaluate the system • Correct deficiencies/replace hazards • Upgrade if necessary • HVAC • Evaluate the system • Determine age and remaining life expectancy of system • Look for hazard/leaks
Owner-Occupied Rehabilitation/Replacement HousingSite Inspections • Decks/Porches/Attic/Garage/Carports • Safety issues • Slip /trips/falls • Proper operations of doors • Structural issues • Weatherization issues
Rental Housing • Eligible Activities: • Sponsor Rental Projects 1-4 Units (through our Single Family Special Loan Program) • Multi-Family Projects • Acquisition, new construction or rehabilitation of affordable rental housing Multi-Family Project St. Mary’s County
Rental Housing (Continued) Main Street Housing Annapolis Maryland • Owner Requirements: The developers or owners of the rental housing may be small scale property owners, for-profit developers, nonprofit housing providers, CHDOs or the local government, redevelopment organizations or public housing authorities.
Rental Housing (Continued) • Eligible Properties: • HOME rental projects may be one or more buildings on a single site, or multiple sites that are under common ownership, management and financing. • The project includes all activities associated with the site or building. • Transitional as well as permanent housing, including group homes and SROs, are allowed. • There are no preferences for project or unit size or style.
Rental Housing(Continued) • Property Standards: • Units must meet applicable property standards at occupancy or upon completion of rehab • Units must be maintained to property standards for affordability period • HOME property standards apply to the common areas and the building’s exterior, not only the HOME units.