Mind the Gap: Where to Find Gap Funding

LIHTC ConferenceSeptember 5, 2013

Shea HollifieldDepartment of Housing and Community Development

Only ask for what is needed to fill the REAL gap

Do not low ball your request - $343,129 Do not inflate costs with unnecessary extras Do not replace other funding sources Participate in the risk – developer’s fee etc. Match project objectives to funder’s

objectives

Know Your Gap

Virginia Housing Trust Fund – competitive loans

HOME Investment Partnership funds – HUD funds for nonentitlement areas

DHCD Gap Funding Resources

It takes a village to pass a Trust Fund

$7 million in 2012 General Assembly$1 million in 2013 General Assembly$8 million Virginia Housing Trust Fund

At least 80% to loansUp to 20% for grants

Virginia Housing Trust Fund

Competitive loans $5,400,000Foreclosure rehab $1,000,000Homeless reduction grants $930,000Foreclosure counseling $500,000Admin $170,000

Housing Trust Fund Categories

Loans for affordable rental housing and homeownership

Alignment with state housing policies, leveraging, long-term affordability, sustainability

Rate and terms determined through underwriting process

HTF Competitive Loans

26 foreclosure counseling grants made in conjunction with VHDA’s housing counseling grant process

5 foreclosure rehabilitation grant applications approved – Trust Stabilization Program (TSP)

29 competitive loan applications pending 58 homeless reduction applications pending

announcement

Housing Trust Fund Status

Funds allocated only for FY 2014

Future allocations dependent upon funding from the General Assembly

Housing Trust Fund Status

Federal funds from HUD for a range of affordable housing uses

Virginia’s state HOME program:-Affordable and Special Needs Housing-Down payment assistance-Indoor plumbing and rehabilitation – homeowner rehabilitation

HOME Investment Partnership

2009

$14,201,692

2010 $14,170,610

2011

$12,404,080

2012

$7,258,158

2013

$6,796,346

$0 $2,000,000 $4,000,000 $6,000,000 $8,000,000

$10,000,000 $12,000,000 $14,000,000 $16,000,000

Chart Title

HOME funding – Virginia Program

Competitive quarterly application process Typically used as gap financing Structured as interest-only loans at 3% for

15 to 20 years. Principal due at end of affordability period. Can enter into an extended compliance period for principal forgiveness at end of term

HOME – Affordable and Special Needs Housing

Funds decreasing Increasingly competitive application process Priority given to:

-Projects in nonentitlement areas-Community Housing Development

Organization(CHDO) projects-Exceeding 504 requirement-Green building approaches

HOME – Affordable and Special Needs Housing

Shea HollifieldDepartment of Housing Community

Development804-371-7031

shea.hollifield@dhcd.virginia.gov