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Grants  |  Loans  | Soft Financing  |  Oper. Sub. & Other

GRANTS

Rudy Bruner Award for Urban Excellence The Rudy Bruner Award for Urban Excellence makes cash awards to projects that demonstrate excellence in the urban environment including revitalization projects, mixed-use developments, preservation projects and community development strategies and implementation.  For more information, contact: Bruner Foundation, Inc. Emily Axelrod 130 Prospect Street Cambridge, MA 02139 Phone: (617) 492-8404 Click here to read HUD's Sustaining Urban Excellence: Learning from the Rudy Bruner Award for Urban Excellence 1987-1993. Back to top HOPE II – Homeownership for Multi-Family Housing (Homeownership and Opportunity for People Everywhere) The purpose of HOPE II is to provide grants to eligible applicant organizations to develop programs under which eligible people will purchase units in multifamily housing projects owned, financed, or insured by HUD or other federal, state or local public agencies.  For more information, contact: Office of Housing U.S. Department of Housing and Urban Development Margaret Milner 451 Seventh, St., S.W., Room 6130 Washington, D.C. 20410 Phone: (202) 708-4542 Back to top HOPE III – Homeownership of Single Family Homes (Homeownership and Opportunity for People Everywhere) The purpose of HOPE III is to provide grants to eligible applicant organizations to develop programs under which low-income families that are first-time homebuyers may purchase single-family properties owned, financed, or insured by HUD or other federal, state or local public agencies.  For more information, contact: Office of Affordable Housing Programs Department of Housing and Urban Development John Garrity 451 Seventh, St., SW, Room 6130 Washington, DC 20410 Phone: (202) 708-0324 Back to top Community Development Block Grants (CDBG) – Entitlement Grants The CDBG Entitlement Grant program supplies funds to cities and urban counties to support the development of viable urban communities, by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income.  For more information contact: Entitlement Cities Division Office of Community Planning and Development James Broughman U.S. Department of Housing and Urban Development 451 Seventh, St., S.W., Room 6130 Washington, D.C. 20410 Phone: (202) 708-1577 Back to top Community Development Block Grants (CDBG) - Insular Areas State Community Development Block Grant (CDBG) Program Home Investment Program Self-Help Housing Shelter Plus Care California Housing Finance Agency - School Facility Fee Affordable Housing – Rental Assistance Program (SFRAP) The School Fees Rental Assistance Program provides reimbursement of school facility fees paid pursuant to Prop 1A by the sponsors or developers of rental housing developments who agree to restrict rents and occupancy of a portion of the units to very-low income households for a period of 55 years. School facility fees and/or taxes imposed by a locality, school district, or Community Facility District against a rental housing development pursuant to Proposition 1A. The program will be funded with $13 million per year for four years, beginning January 1, 1999. The rental housing development must be located within California. Application for funds under the SFRAP will be accepted on a first come, first served basis.  For more information, contact: California Housing Finance Agency Multifamily Lending Division 1121 L Street, Ste. 207 Sacramento, CA 95814 (916) 327-5170 Back to top

LOANS

Section 202 - Supportive Housing for the Elderly Section 221 (d) (3) and (4) Mortgage Insurance Section 108 Loan Guarantees California Housing Finance Agency, Tax-Exempt Affordable Mortgage Program Program provides bond-financed 30 to 40 year fixed-rate mortgages for developers of affordable housing projects that have at least 20 percent of their units occupied and affordable to households making no more than 50 percent of the county median income. Eligible applicants include for-profit organizations, non-profit corporations and public housing agencies.  For more information, contact: Linn Warren Chief, Multifamily Lenders 1121 L St., 7th Floor Sacramento, CA 95814 Phone: (916) 327-3022 Back to top California Housing Finance Agency, Taxable Affordable Mortgage Program Program provides taxable bond-financed mortgages for rental housing projects of which at least 20 percent of the units occupied by households with an income of 50 percent or less of the county median income and are affordable to very low-income households. Eligible applicants include for-profit organizations, non-profit corporations and public housing agencies.  For more information, contact: Linn Warren Chief, Multifamily Lenders 1121 L St., 7th Floor Sacramento, CA 95814 (916) 327-3022 Back to top California Community Reinvestment Corp. (CCRC) CCRC is a private lender that provides permanent financing to both non-profit corporations and for-profit organizations for new construction, acquisition and rehabilitation of affordable housing projects. Priority is given to projects targeting lowest area median incomes.  For more information, contact: California Community Reinvestment Corp. Mark Rasmussen 1777 Oakland Blvd., Suite 300 Walnut Creek, CA 94596 (510) 939-4787 Back to top Loan Management Set-Aside (LMSA) The goal of the LMSA program is to minimize defaults on HUD-insured multifamily rental projects by ensuring a reliable income stream. It may be used in conjunction with the Flexible Subsidy program. LMSA is a subprogram of the Section 8 Housing Assistance Payments program, which is a rent subsidy program that helps eligible low-income families obtain decent, safe and sanitary housing. Supplemental Loans for Multifamily Projects (Section 241(a)) Section 241(a) insures loans to finance repairs, additions and improvements to multifamily rental housing and health care facilities. The program is intended to keep projects competitive and extend its economic life. Back to top Two Year Operating Loss Loans (Section 223 (d)) The purpose of Section 223 (d) is to help avoid losses on HUD-insured multifamily projects by insuring loans written to cover operation losses. The two-year operating loss loans insure separate loans that cover operating losses during the first two years after completion of multifamily rental projects whose first mortgage is insured by HUD. The following loans are provided under the Michigan State Housing Development Agency (MSHDA) but are typical of programs provided in every state. The Direct Lending Program (70/30 Program) The Direct Lending Program offers low-interest mortgage loans for new construction and for substantial rehabilitation of existing buildings. Interest rates vary by location with lower rates in distressed areas. Financing is through the sale of tax-exempt bonds. Income limits also vary by location, but at least 20 percent of the units must be occupied by households with incomes less than 50 percent of the area median and 10 percent of the units by households with incomes under 30 percent of median; rents are restricted on these low income units. For more information, call: (517) 373-6880 (313) 256-2860 Back to top The Taxable Bond Program The Taxable Bond Program is financed with $50 million in taxable bonds and provides loans for rental housing in which all tenants have incomes at or below 60 percent of the area median and rents will be restricted. The program is designed to be used in conjunction with the federal low-income housing tax credit. For more information, call: (517) 373-6880 (313) 256-2860 Back to top The 1 percent Tax-Exempt Bond The 1 percent Tax-Exempt Bond Family Housing Program offers developers 1 percent interest rate loans for constructing or rehabilitating 50-120 units of rental housing for families in distressed areas. Owners can then apply for federal low-income housing tax credits on any of the units that meet the criteria. For more information, call: (517) 373-6880 The Pass Through Program The Pass Through Program allows MSHDA to sell tax-exempt bonds on behalf of developers who supply their own credit enhancement; 20 percent of the units must be occupied by households with incomes less than 50 percent of the median, or 40 percent of the units by tenants under 60 percent of median. For more information, call: (313) 256-2860 (517) 373-4880 Back to top Moderate rehabilitation loans to landlords In certain localities that receive grant funds from various federal rental rehabilitation programs, MSHDA offers loans at 8 percent interest to help landlords bring residential rental property to code, add energy improvements and make other types of renovations. Contractor Assistance Program (CAP) In conjunction with First Independence National Bank of Detroit, MSHDA provides working capital loans of up to $50,000 to small contractors (with special outreach to female and minority owned firms) which have been selected to work on MSHDA rental housing projects. The program also provides training to the participating contractors in the areas of estimating, budgeting, cash management, cost control and financial reporting. For more information, call: (517) 373-6840 Back to top Neighborhood Preservation Program This program offers $25 million in MSHDA funds to finance loans for small apartment buildings in distressed neighborhoods targeted by cities and/or local groups for revitalization. For more information, call: (517) 373-1974

SOFT FINANCING

Low-Income Housing Fund (LIHF) LIHF, a community development loan fund, provides financing and technical support to non-profit development organizations to support the development of affordable housing. They have provided more than 750 loans and grants totaling $155 million. LIHF is active in 35 states and provides affordable loans, flexible underwriting and willingness to finance difficult projects. LIHF’s services include a Revolving Loan Fund, loan packaging, interest rate subsidies, grants and lines of credit. For more information, contact one of LIHF’s three offices: 74 New Montgomery Street, Suite 250 San Francisco, CA 94105 (415) 777-9804 911 Wilshire Blvd., Suite 1770 Los Angeles, CA 90017 (213) 627-9611 55 John Street, 10th Floor New York, NY 10038 (212) 346-9790 Web page: www.LIHF.org Back to top HOME Investment Partnerships Program The purpose of the HOME Investment Partnership Program is to provide loans at below market interest rates to developers for the construction or rehabilitation of affordable housing. The HOME program was established under Title II (HOME Investment Partnership Act) of the Cranston-Gonzales Affordable Housing Act.  For more information contact: U.S. Department of Housing and Urban Development Deputy Assistant Secretary for Grants Kenneth C. Williams 451 7th Street, S.W. Room 7214 Washington, D.C. 20410 (202) 401-6367 Back to top

OPERATING SUBSIDIES & OTHER FINANCING

Federal Home Loan Bank System Access links to the federal home loan banks of the following cities: Atlanta, Boston, Chicago, Cincinnati, Dallas, Des Moines, Indianapolis, New York, Pittsburgh, San Francisco, Seattle and Topeka. Federal Home Loan Bank of San Francisco’s Affordable Housing Program The purpose of the Federal Home Loan Bank of San Francisco’s Affordable Housing Program (AHP) is to subsidize the interest rate of loans and/or to provide direct subsidies to shareholders engaged in lending for the construction and/or rehabilitation of affordable rental housing projects. These subsidies may be used in conjunction with the federal low-income housing tax credit program as well as other housing assistance programs. The Federal Home Loan Bank of San Francisco accepts applications for funding in two rounds per year. The deadlines for submitting applications each year are April 15 and October 15. For more information, contact: Federal Home Loan Bank of San Francisco - Community Investment Department P.O. Box 7948 San Francisco, CA Phone: (415) 616-2542 Back to top Federal Home Loan Bank of Chicago’s Affordable Housing Program (AHP) The purpose of the Federal Home Loan Bank of Chicago’s Affordable Housing Program (AHP) is to provide subsidies to financial institutions in the Chicago and Wisconsin area to finance the purchase, construction and/or rehabilitation of owner-occupied housing for families with incomes at or below 80 percent of area median income. The subsidy may also be used to finance the purchase, construction and/or rehabilitation of rental housing, at least 20 percent of the units of which will be occupied by, and affordable to, households with incomes at or below 50 percent of area median income. The AHP is available to financial institutions in Illinois and Wisconsin that hold stock in the Chicago Bank. In 1998, the bank provided approximately $8.7 million in subsidy funds. Back to top Federal Home Loan Bank of Chicago’s Community Investment Program (CIP) Financial institutions in Illinois and Wisconsin that hold stock in the Federal Home Loan Bank of Chicago can apply for CIP funds. The CIP features below market advances designed to finance housing for households earning less than 115% of Area Median Income, or to finance commercial and economic development projects that benefit low and moderate income households and/or neighborhoods. The Bank also issues CIP Letters of Credit for collateralization of public unit deposits, credit enhancement and other purposes such as performance guarantees that qualify under the CIP guidelines. For more information, contact: Federal Home Loan Bank of Chicago Community Investment Department 111 E. Wacker Drive, Suite 700 Chicago, IL 60601  Charles M. Hill, Sr. : (312) 565-5705 Leslie Pilot-Gatton : (312) 565-5718 Scott A. Stewart : (312) 565-5725 Back to top Federal Home Loan Bank System   Access links to the federal home loan banks of the following cities: Atlanta, Boston, Chicago, Cincinnati, Dallas, Des Moines, Indianapolis, New York, Pittsburgh, San Francisco, Seattle and Topeka. Flexible Subsidy Program (Section 201) The Flexible Subsidy Program is part of HUD’s effort to preserve affordable housing developed under federal government programs. It provides loans to owners of troubled federally assisted low-and moderate-income multifamily rental projects. It has two components: The Operating Assistance Program (OAP) provides temporary funding to replenish project reserves, cover operating costs and pay for limited physical improvements; The Capital Improvement Loan Program (CILP) pays for the cost of major repairs or replacement of building components that cannot be funded out of project reserves. Both components are designed to help restore the properties’ physical and financial soundness in order to maintain the use of the property for low- and moderate-income persons. The program allows rents to remain affordable. Back to top Washington Mutual Bank, Community Lending & Investment Program (Multi-family) This loan program is for multifamily projects of five or more units that are located in minority and/or low income census tracts or have affordability restrictions. The program provides for technical assistance, construction/rehabilitation loans, and tax credits to cities, counties, non-profit corporations, public housing agencies, as well as for-profit organizations. Loan applications are due April 1 and October 1 annually.  For more information, contact: Washington Mutual Bank Community Lending & Investment Program (Multi-family) Arthur L. Porter 17877 Von Karman Ave., 4th Floor Irvine, CA 92714 (949) 833-4123 Back to top Rental Housing Insurance (Section 207) The program provides mortgage insurance to finance construction or rehabilitation of a broad range of rental housing. The intent of Section 207 is to increase the supply of quality and reasonably priced rental housing for middle-income families. Mortgage insurance reduces the risk for lenders by guaranteeing payment in the event of default, making capital available at lower cost. Mortgage Insurance for Purchase or Refinancing of Existing Multifamily Rental Housing (Section 223(f)) and Small Projects Through FHA Section 223 (f), HUD provides mortgage insurance for the purchase or refinancing of existing rental housing. Projects refinanced under Section 223(f) may not undergo substantial rehabilitation. These projects may have been financed originally with conventional or FHA-insured mortgages. Section 223 (f) also applies to existing hospitals, nursing homes, assisted-living facilities, board-and-care homes, and combinations of such facilities. Section 223 (f) permits the restructuring of mortgages at lower interest rates to preserve an adequate supply of affordable rental housing and health care facilities. These projects usually cannot otherwise be refinanced without causing excessive rent burdens on the current tenants. The program allows long-term mortgages (up to 35 years) that can be purchased by the Government National Mortgage Association (Ginnie Mae). This eligibility for purchase in the secondary market improves the availability of loan funds and permits more favorable interest rates. For more information contact: U.S. Department of Housing and Urban Development Deputy Assistant Secretary Multifamily Housing Programs Robert Reavis 451 7th Street, S.W. Room 6106 Washington, D.C. 20410 (202) 708-2495 Back to top Historic Preservation