Supportive Housing for the Elderly 202

Supportive Housing for the Elderly 202

This program provides assistance in expanding the supply of housing with supportive services for the elderly.

The program is designed to give capital advances to eligible private, nonprofit sponsors to finance the development of rental housing that has supportive services for the elderly. The capital advance is interest free and does not have to be repaid as long as the housing remains available for very low income elderly people for no less than 40 years. The rental assistance that is provided will cover the difference between operating cost and the tenants contributions toward the rent which is usually 30% of their monthly adjusted income.

The Eligibility for this program is for private and nonprofit organizations as well as consumer cooperatives who may apply. The occupancy is for low income households which has at lest one person 62 years old or older.

Assisted Living Conversion Program

Assisted Living Conversion Program; (ALCP)

This program gives grants to the owners of private nonprofit eligible developments; so that they can convert some of or all of their dwelling units into a assisted living facility for the elderly needing assistance.

The program is designed to fund the costs of converting some or all of units in the development, into a assisted living facility. The funding can include the units configuration as well as the common and service spaces as well as any other necessary remolding that is within the regulations of HUD or the states statutes.

ALF’s (Assisted Living Facilities), are housing designed to accommodate people with disabilities and the frail elderly; who can not live on their own, but need assistance; with daily living. Assistance provided in the way of helping with daily activities such as eating, grooming, bathing, dressing, as well as home management. With this program the ALF’s will provide supportive services; like personal care, transportation, meals, housekeeping and laundry.

These facilities must be licensed and regulated by the state.

Emergency Capital Repairs Program

Emergency Capital Repairs Program

This program provides grant money to eligible multifamily projects, with elderly tenants, that are owned by nonprofit private organizations. So that they can make substantial capital repairs to the property. In the way of rehabilitating and modernizing or retrofitting aging structures in the dwelling units or the common areas. These repairs must relate to a immediate threat to the safety and health and quality of life for the tenants. This program is designed to provide a one time assistance for emergency items that could not be afforded within the operating budget of the facility.

The eligible multifamily properties are for the assisted housing developments that are designated for the occupancy by elderly tenants.

Manufactured Home Parks

Manufactured Home Parks (207)

This is a program that helps provide federal mortgage insurance to finance the construction or rehabilitation of manufactured home parks.

HUD will insure mortgages that are made by private lenders to help finance the construction or rehabilitation of manufactured home parks, that consist of 5 or more spaces. HUD must approve were the park is located and it must be in a area in which the market conditions show a need for such housing.

The eligibility for this program is open to Investors, developers, builders,and cooperatives, and others that meet HUD’s requirements. If eligible you may apply to a FHA approved lender after conferring with a local HUD office.

Urban Renewal Areas

Mortgage & Major Home Improvement Loan Insurance for Urban Renewal Areas (220)

This program is for Investors, developers, builders, individual homeowners, and apartment owners. This program offers federally insured mortgages for housing in urban renewal areas, were revitalization activities have been in process by local government.

HUD will insure loans to finance the improvements that enhance and preserve salvageable homes and apartments in a designated urban renewal area.

Existing Multifamily Rental Housing

Existing Multifamily Rental Housing; (207/223f)

This program is designed for investors, developers, builders, and others that meet HUD requirements.

Under the National Housing Act section 207/223f was developed for the purchase or refinancing of a existing apartment, or cooperative housing project and or for the purchasing and conversion of a existing rental project to cooperative housing. HUD may also insure mortgages on a existing multifamily project that does not need substantial rehabilitation. But the project must have 5 or more units and the rehabilitation must have been completed for 3 or more years ago.

Revitalization of Severely Distressed Public Housing

Revitalization of Severely Distressed Public Housing; HOPE VI

The purpose of this program is the eradication of severely distressed public housing.

This program was developed in 1993, its purpose has been to transform public housing; by encouraging the PHA to seek partnerships with private enterprises to create mixed finance and mixed income affordable housing. The HOPE VI program; in 2003 was expanded to assist local governments in the rejuvenation of affordable housing in their local.

  • Activities permitted under HOPE VI:
  • Major Reconstruction
  • Capital costs of demolition
  • Rehabilitation
  • Other physical improvements
  • Replacement housing
  • Management improvements
  • Planning & technical assistance
  • Provisions for support services

This program gives HUD the opportunities to provide competitive grants to PHA’s so they can carry out the HOPE VI activities. PHA’s will provide matching contributions, at least 5% of the grant amount.

The Eligibility for this program is for the PHA’s and smaller communities.

Family Self-Sufficiency Program

Family Self-Sufficiency Program

This program is designed to help enable participating families to gain economic independence. This would be open to participants of the Housing Choice Voucher Programs, and public housing tenants. But using public and private resources.

The Family Self-Sufficiency Program (FSS) is administered by Public Housing Agency (PHA’s) with the help of Program Coordinating Committees (PCC’s).

Type of supportive services provided:

  • Child Care
  • Transportation
  • Remedial Education
  • Job Training

The Eligibility is to the Public Housing Agencies.

Rural Housing Development

Rural Housing and Economic Development Program

These are grants for and to meet the rural communities housing and economic development needs. This program is used to encourage new and innovative approaches to serving the housing and economic development needs of our nations rural communities.

The eligibility for this program are for local rural nonprofit organizations, community development corporations, federally recognized Indian tribes, state housing finance agencies, and state economic development and community development agencies.

Buying a HUD Home

Home Buying Guide from HUD

 

The home you’ve been Dreaming of could be a HUD home

If you have been dreaming of your own home; a home for you and your family, a place of your own! HUD could help you attain your dream home! HUD is the United States Department of Housing and Urban Development! This is a government agency developed to help the American Dream come true for everyone!

In 1934 HUD’s Federal Housing Administration (FHA) was developed. Since then the FHA has helped millions of Americans in attaining a Home of Their Own! The FHA does make it easier and more affordable! One way they do that is by offering HUD homes. You can find HUD homes in many communities throughout the U.S., at reasonable prices and economical terms.

Whether you buy a HUD home or any other home FHA has a reasonable loan for you!

Calculate just how much home you can afford

You need to calculate just how much home you can afford; before you go shopping for a home. The FHA formula that FHA and its lenders use is simple; you can calculate that 29% of your monthly gross income is what you can pay in the form of a monthly mortgage payment. This also depends on how much other debt you are carrying. But if you have no other debt you can calculate that 41% of your gross monthly income is what you can spend on a monthly mortgage payment.

Also to give you a easier way of looking at this is you can afford 3 to 4 times your annual gross (before taxes) income as a purchase price depending on how much debt you are carrying. This is a bit conservative but, say if your annual income is $30,000. your shopping for a range of $90,000 to $120,000. in a purchase price; maybe a bit more depending on your situation. The FHA loan officer can help you with that. Also before you shop you should get a pre-approval that way you can feel confident in your shopping for a home. Again your FHA loan officer can provide you with the pre-approval.

FHA is here to Help

So many questions and things to consider! FHA is here to help you with those questions! Once you have been pre-approved a good place to start is a real estate agent. The real estate agent can help with not only finding a home but with information on the schools in the area and community information; that would be helpful to your needs. They can guide you through the process of purchasing a home. Dealing with the contracts and offers, also being their for you.

Buying a HUD Home

But if you are buying a HUD home you are required to use a real estate agent. The real estate agent will help you with all that is required in finding and purchasing a HUD home. The one thing that is different than purchasing a non HUD home is that with a HUD purchase there are no negotiations between buyer and seller. This can be a advantage; there is no haggling about price. Everything is spelled out in black and white. When your offer is accepted the closing of the loan for the property will be within 30 to 60 days. You must find a HUD real estate agent; this is not hard all you need to do is call a few agents and ask. Also HUD will pay the brokers commission; you do not have to pay that.

You can find HUD homes on multiple listing services and on the the internet on this site http://www.hud.gov/homes/ , with this site you can access HUD homes from any state. Your real estate broker would have all the information you may need. Almost every one of the HUD homes would need some improvement; some more than others. This can be a great affordable opportunity for that fixer upper! Many are in fine neighborhoods, and some do qualify as handyman specials; many are in good condition.

HUD does not give warranties on the the HUD homes but it will disclose the condition of the property and this can help you in formulating your bid. The FHA HUD loan program that can help refurbish the home is called 203(K), this is were the borrower can borrow extra money form the price of the loan for renovations to be made to the home. You later repay these funds as part of your mortgage. Just be aware that a 203K loan is not available in all areas; ask your real estate agent about the availability in your area.

When you have found your dream home HUD urges you to get a home inspection before you make a offer on the property. This can give you an edge in what to submit as your offer! Making a offer on a HUD home can be much easier than purchasing a home in the private market! Your bid is submitted electronically through computer, a touch tone phone, or by real estate broker. The one with the highest bid is generally awarded that HUD home.

HUD’s initial listing is based on a independent appraisal. HUD may accept an offer less than the listed price, this depends on how long the property has been listed and what are the current market conditions. Sometimes buyers may offer more than the listed price; if the property is appealing; there maybe more bidders. Please be aware that property values are established by HUD and submit offers knowingly.

When you make a offer on a HUD home it will be done during the designated “Listing Period”. During this time all potential purchasers will submit their bids. However the priority will be given to owner-occupant offers, for the first 10 days as follows: All owner occupant offers received during the first 5 days of the 10 day listing period will be considered to have been submitted simultaneously. The first day after the initial first 5 days (the 6th day) all owner occupant bids will be reviewed, at this point the one with the highest bid will be accepted.

If there are no owner occupant bids; the bids will be reviewed on a daily basis for owner occupant bids till the end of the listing period (the remaining 5 days). At the conclusion of the listing period if no own occupant bids are present HUD will then review all bids (investor) received during the 10 day listing period. In other words for the 1st 10 days only bids from bidders that wish to live in the home are reviewed for the highest bid. After that if you plan on investing in the home, investor bids will be reviewed for highest bidder.

Once your bid has been accepted you then need Earnest Money. Earnest Money is a deposit towards the purchase price of the home. This shows that your offer is serious, if your offer is accepted the Earnest Money then becomes part of your down payment or closing costs. If for any reason your offer is rejected the broker will return your earnest money.