West Virginia Housing Development Fund

Programs At A Glance

Erica L. BoggessActing Executive Director

Mission & Purpose• The Fund’s primary purpose is to increase the supply

of affordable residential housing for persons and families of low and moderate income.

• The Legislature also empowered the Fund to provide construction and permanent mortgage financing to public and private sponsors of such housing.

• This purpose has been expanded over time by the legislature to include, among other things, housing for persons of moderate income and temporary housing for homeless people and disaster victims.

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Structure and Organization• The Fund is governed by an 11-member Board of

Directors• The Governor, Attorney General, Commissioner of

Agriculture, and the State Treasurer serving as public directors

• Seven private directors appointed by the Governor from the general public

• The Governor is designated as the Chair of the Board of Directors

The Fund is a self-supported governmental entity and receives no State appropriations.

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• Revolving loan programs provide sustainability

• Act states “loans are not otherwise available, wholly or in part, from private lenders upon reasonably equivalent terms and conditions”

• Quazi-governmental structure provides flexibility

• Revenues generated from loans, fees and investment earnings are used to further programs

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Our Program Options

LIHTC• New Construction• RehabilitationHOME Rental• New Construction• RehabilitationMMRP• Rehabilitation

Multifamily LendingLand DevelopmentWV PRI (Demo)Special Needs Assistance

Single Family Ownership• First Time Buyer• Movin' Up• Downpayment

Assistance• Secondary Market • LAMP• New Construction

Financing• On-Site System Loan

Rental Ownership

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Homeownership Program• Commonly know as “first time homebuyer” program

• Funded by tax-exempt mortgage revenue bonds – AAA/Aaa ratings reduce borrower rates

• Targeted to low and moderate income borrowers

• Regulated by IRS Code and subject to provisions of bond resolutions

• Subject to full underwriting and federal lending laws and regulations 6

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Average Payment $582 – Including

Taxes and Insurance

• Average Sales Price $112,564 = Affordable

Average Family Income = $43,865

Homeownership Program (Cont’d)

Single Family Movin’ Up

• Designed for homeowners looking to purchase a bigger home, downsize or just make a change

• No first time homebuyer requirement

• House price and income limits set by the Fund’s Board

New initiative designed to help families Move Up to a better

home.

Income Limits $113,760 for 1-2 persons or $132,720 for

3 or more

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Downpayment and Closing Cost Assistance(Board approved – HDF revenues)

• Available in conjunction with Homeownership and Movin’ Up Programs

• 15 year term at 2.5% interest rate

• Homeownership Program - $15,000 max depending on LTV

• Movin’ Up Program - $8,000 max depending on LTV9

Secondary Market(Board approved – HDF revenues)

• Designed to provide liquidity to the State’s small mortgage lenders

• The Fund purchases mortgages held by banks and then sells the loan in the secondary market to Fannie Mae

• Process provides banks funds for additional mortgages

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LAMP(Board approved – HDF revenues)

• LAMP provides a secondary market to Habitat for Humanity affiliates to increase home building production for very low income families

• The Fund purchases the loan for its portfolio

• Provides funds for Habitat to build its next home

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• Incentive program to encourage homebuilders to build moderate single-family homes

• House price not to exceed MRB limits• 15 month term, interest due at maturity• Interest rate .5% if house price <$200,000; if

greater 1%• 80% LTV

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New Construction Financing Program(Board approved – HDF revenues)

On-Site Systems Loan Program• Partnership with the WV DEP -the Fund acts

as conduit to loan DEP clean water revolving funds

• Provides for the upgrade, replacement or repair of inadequate septic systems

• 10 year, 2% loan up to $10,000• No income limits

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Low Income Housing Tax Credit

(Federal – IRS)

• Properties must maintain affordable units for a minimum of 30 years

• Physical inspections and tenant eligibility reviews

• Eligible tenants must be at or below 60% of area median income

• Highly competitive RFP process

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HOME Program

• HOME is a federally funded HUD program – requires state matching funds

• Provides financing for both homeownership and rental projects

• Repayment and loan terms vary based on underwriting of each project

• Physical inspections and tenant eligibility reviews

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MMRP – Mini Mod Rehabilitation Program(Board approved – HDF revenues)

Provides owners of rental properties financing to rehabilitate existing rental units or assist with the completion of new rental units

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• Owners can be individuals, partnerships, corporations, non-profits or LLCs

• Rehab may include minor repairs such as furnace or window replacement or major rehab

• Max $25,000 if first lien, $20,000 if second lien• Term of up to 10 years at up to 6%• Max $300,000 or 95% LTV

Multifamily Lending(Board approved – HDF revenues)

• Provides permanent financing of rental properties

• Financed properties may also receive funding from the HOME, tax credit or other Fund programs

• Properties often have federal loan guarantees• Generally require replacement reserves

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Land Development Program(restricted by HDF Act)

The Land Development Program provides loans for the purpose of acquiring and improving land for residential or non-residential construction.

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WV Property Rescue Initiative(Legislative restrictions – HDF revenues)

Revolving loan program for counties and municipalities to demolish structures that constitute health and safety hazards to improve communities. • Loan terms up to 7

years• Years 1-2, no

interest or payments due

• Must have adopted proper ordinances and use licensed code officials

Special Assistance Lending(Board approved – HDF revenues)

• Provides funding for non-traditional group housing for the homeless, substance and physical abuse recovery

• Scattered site repairs

• Repayment limited – only required if project does not fulfill mission for generally 10 years

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Loan Servicing

• The Fund services all loans in its portfolio and on behalf of other investors

• Provides personalized customer service

• Troubled loan work-out and loan modifications

• The Fund is the largest loan servicer in the State

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General

• Program participants subject to Multi Family lending policies

• Contact your Area Managers for assistance on various programs

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Erica L. BoggessActing Executive Director

West Virginia Housing Development Fund5710 MacCorkle Ave SECharleston WV 25304eboggess@wvhdf.com

304-391-8638

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