FEDERAL HOUSING PROGRAMS

Office of Native American Programs, U.S. Department of Housing and Urban

Development

Urban Native American ConferencePrepared by

The Enterprise Foundation

FEDERAL HOUSING PROGRAMS

• HUD Block Grants and Formula-Based Programs

• HUD Competitive Programs

• Other Federal Programs

• Non-Federal Programs

BLOCK GRANTS

• Home Investment Partnership

• Housing Opportunities for People With AIDS (HOPWA)

• Community Development Block Grants (CDBG)

• McKinney Emergency Shelter Grants

HUD’s Competitive ProgramsReforms Bring Changes

HUD Introduces the “superNOFA” Format Rather than issuing more than 40 disparate Notices of

Funding Avaliability (NOFA), HUD will use three consolidated superNOFA.

The superNOFA and application Kits can now be accessed through HUD’s Web Site at www.hud.gov/nofas.html OR call the superNOFA Information Center at 1(800) HUD-8929.

Combined Application Kit Within specified categories applicants can use standardized

forms and certificaitons for program with a common purpose.

Common Factors for Award

To simplify the application process, most competitive programs now use five common factors for award.

Capacity - do you have the organizational resources necessary to implement the proposed activities?

Need/Extend of the Problem - is there an urgent and documented need for funding the proposed activities?

Soundness of Approach - Addresses the quality and appropriateness of the proposed program.

Leveraging Resources - can you secure resources beyond those provided by the specific program?

Comprehensiveness and Coordination - is your strategy coordinated with related community activities?

superNOFA:Housing and Community Development

Community Development Technical Assistance Programs Community Development Block Grant (CDBG) Community Housing Development Organization (CHDO) Home Supportive Housing Program (SHP)

University and College Programs Community Outreach Partnership Centers (COPCs)

superNOFA (cont.)

Fair Housing Initiatives and Assisted Housing Counseling Program.

Fair Housing Initiative Program (FHIP) Education and Outreach Initiatives (EOI) Private Enforcement Initiative (PEI) Fair Housing Organization Initiative (FHOI)

Housing Counseling Program Lead-Based Paint Hazard Control Program Drug Elimination Grant for Multifamily Low Income Housing

superNOFA: Economic Development and Empowerment Programs

Economic Development Initiative (EDI) Brownfields Economic Development Initiatives (BEDI) Youthbuild Rural Hosuing and Economic Development Program

superNOFA: Targeting Housing and Homeless Assistance

Continuum of Care Homeless Assistance Supportive Housing Shelter Plus Care SRO Moderate Rehabilitation

Section 202 Supportive Housing for the Elderly Section 811 Supportive Housing for Persons with Disabilities

Section 8 Mainstream Program Housing Opportunities for People with AIDS (HOPWA) -

Competitive

Other HUD Programs

National competition Program FHIP National Focus National Housing Counseling Training National Lead Hazard Awareness Campaign

Mainstream Hosung Opportunities for Persons with Disabilities Family Self Sufficiency Seslf-Help Home Ownership Opportunity HUD Single Family Disposition

Other Federal Programs

Low Income Housing and Historic Tax Credit Program Community Development Financial Institution (CDFI) and

Bank Enterprise Award (BEA) Programs (Treasury Department) Homeless Provides Grant and Per Diem for Veterans (Veterans

Department) Homeless Providers Grant and Per Diem for Veterans ( Veterans

Department) Homeless Veterans Reintegration Project

Other Federal Programs (cont.)

Rural Rental and Cooperative Housing Loans (Section 515) and Rural Rental Assistance Payment (Section 521) (Agriculture Department()

Rural Development - Home Ownership - Section 502, Section 502 Guarantee and Section 504.

HHS program for IDA’s

Non Federal Programs

Federal Home Loan Bank Affordable Housing Program Major Private Sources Major Reduced Rate Lenders

Typical Home Ownership Project Includes:

Band (Section 184-248 or conventional) State Housing Finance Agency or Section 502 First Mortgage

Second/Third + Mortgage or Grants NAHASDA HOME (CDBG or state CDBG) Affordable Housing Program of the Federal Home Loan Bank State Housing Trust Fund

Home Buyer Down Payment of 1% - 5% Fee based home ownership counseling with Housing Counseling

of FHIP subsidies

Typical Rental Project

Low Income Housing Tax Credits HOME CDGB NAHASDA AHP Rent subsidies (for any homeless) from Shelter Plus Care or Set-

Aside programs

Block Grants and Formula-Based Programs

Creating a Vision and Funding Your Project Through the Consolidated

Planning Process

Consolidated Planning

Articulates Need Creates Long Range (5 year) Plan for Meeting the need Identifies Targets/Objectives for Meeting Long Range Plan and

potential funding sources Identifies local obstacles (zoning/building codes/etc.) to meeting

objectives Project must be consistent with Consolidated Plan to be eligible

for funding

Consolidated Planning (continued)

Requires Citizen Participation A minimum of one public hearing Require outreach to undeserved populations Must consult with public and private agencies that provide

housing, health, or social services Summary of Consolidated Plan (CP) must appear in the newspaper A “reasonable number” of draft CP’s must be provided cost free to

public Minimum of 30 days for public to comment Most include information from Continuum of Care (if available)

Consolidated Plan (continued)

Why is it important to participate Access to HOME, CDBG, ESG, HOPWA Funds (most states do

not currently provide these funds on Tribal lands) Other Federal sources often require “consistency with consolidated

Plan” letter Market your project/need to state/local government Increase your awareness of political and development environment Can object if state locality does not meet consolidated Plan or if

they do not adequately provide for Citizen Participation

HOME Investment Partnership

Amount Available: In FY 2000, $1.6 Billion nationally Use of Funds: Acquisition, rehabilitation's, new construction of

affordable home ownership rental and transitional housing (under80 % of median income for all programs. 90 % of rental units assisted must be rented to household earning <60% of median income with targeting of 20% of the units in any project over 5 units for below 50 % of median income).

HOME Investment Partnership

Use of Funds (cont.): Affordability required for 5 to 20 years depending on funding amount Minimum 15% set aside for CHDOs, who can receive administrative support and at-risk pre-development financing. Minimum of $1,000 unit subsidy, maximum 221 (d)3 limits (through localities can reserve waivers for up to 210%)

Application Process and Due Date: Varies by Participating Jurisdiction.

HOPWA - Block Grant

Eligible Applicant: Service providers for people with HIV/AIDS.

Program Description: Financing for acquisition, rehabilitation, and construction of housing, rent subsidies, service and other related uses to assist people with HIV/AIDS find and remain in decent affordable housing. Decided locally

HOPWA - Block Grant

Amount Available: approximately $200 million nationally Use of Funds: Housing for people with AIDS Contact: Davis Vos - 202.708.1234

Community Devopment Block Grant/Section 108

Eligible Applicant: For and nonprofit developers/service providers, Housing Authorities and government agencies

Program Description: Block grant provided to state and local governments to assist in redeveloping distressed neighborhoods ( a majority of residents below 80% of median income and targeted by lock grant recipient) and providing services to low moderate income residents. High percentage to economic and housing development

CCBG/ Section 108

Amount Available: $4.5 billion nationally in FY 2000 Use of Funds: Can be used for housing development and

rehabilitation, economic development, social services, neighborhood/service planning tenant/home ownership counseling. Housing for all incomes in targeted neighborhood, housing for low income ( under 80% of median) outside of target areas. A minimum of 70% of funds must serve low and moderate income households.

CCBG/ Section 108

Use of Funds (cont.): construction only allowed if in conjunction with community revitalization with redevelopment plan in distressed communities. Section 108 program enables future year (up to 10 years) CDBG objectives Economic Development Initiative (EDI) program provides financing to reduce risk of Section 108 loans

Due Date: Varies by locality for CDBG Contact: Paul Webster (202) 708-1871 Ext 4563

Emergency Shelter Grant

Eligible Applicants: Nonprofit organizations and government agencies

Program Description: Block grant in state and localities to improve and increase (renovations, major rehabilitation and conversions to) homeless shelters and services and to assist homeless prevention efforts.

Amount Available: $175 million nationally in FY 2000 Use of Funds: Preventive and homeless services,

construction/rehabilitation of emergency shelter Due Date: Varies by state/locality

HUD’s Competitive Program

superNOFA 1

Housing and Community

Development Program

Fair Housing Initiative Program (FHIP)

Eligible Applicants: Fair Housing Government and Nonprofit agencies. Other nonprofit agencies eligible for the education and Outreach and Fair Housing Organization Initiative, but not the Private Enforcement Initiative

Program Description: Supports efforts to enforce and enhance fair housing. Most of funds earmarked for testing and fair housing enforcement

Amount Available in FY 2000 Education and outreach: $3.9 million Private enforcement Initiative: $10.5 million Fair Housing Organization Initiative: $2.1 million

FHIP

Use of funds: Education and Outreach Initiative: Studies affirmative marketing

training on meeting fair housing and disability requirements, and finding housing for the disabled.

Private Enforcement Initiative: Fair housing testing (note: Massachusetts used FHIP to testing on discrimination on the homeless), investigating and litigating complaints.

Fair Housing Organization Initiatives: Increasing capacity of fair housing organization to do enforcement and testing. Large emphasisfor organization working with disabled to apply.

Due Date: May 2, 2001 Contact: Ivy Davis, (202) 708-0800

Housing Counseling Program

Eligible applicant: Local HUD approved counseling agencies ($6.6 million); national, regional, multi-state counseling intermediaries ($9.95 million). State Housing Finance Agencies ($) million)

Program Description: Provides funding for agencies to provide tenants and homeowners with information and advise on how ownership and renter obligations, property maintenance, foreclosure prevention, financial management, and legal rights.

Amount Available: $17.55 million in FY 2001 (Grants to individual agencies cannot exceed $100,000

Housing Counseling Program

Use of Funds: To provide free of charge services to renters home buyers and home owners. Funds can be used staffing, administrative costs, public outreach, and other requirements for service delivery.

Due Date: May 3, 2001 Contact: For more information call Monica Schuster, (202)

708-0317 Ext. 5447

Lead-Based Paint Hazard Control Program

Eligible Applicants: States and local governments Program Description: Provide grants to devise strategies to

reduce lead hazards. See www.hud.gov/lea/leagrant.html Amount Available: $50 million in FY 2001 Due Date: June 2001 Grant Range: 15-25 grants available typically $2-$4 million

(maximum award of $4 million) Contact Person: Ellis Goldman, (202) 755-1822

Section 811 Housing for the Disabled

Eligible Applicants: Private nonprofits, consumer cooperatives and unicorporated nonprofits.

Program Description: Provides nonrepayable capital advance for acquisition and rehabilitation (or acquisition alone for group homes) and 20 year renewable rental assistance to housing for people with disabilities. Up to 15 people in a group home and 24 people in an independent Living facility.

Section 811 Housing for the Disabled

Use of Funds Capital Advance - Forgiven if housing is maintained very low

income (under 50% of median income) h h w/disabilities for 40 years.

Project Rental Assistance 0 rent subsidy for 20 years renewable for another 20 years

Due Date: May 2001 Amount Available: $90+ million nationally in FY 2001 Contact Person: Joseph Malloy, (202) 708-3000

superNOFA II

Economic Development and Empowerment Programs

Economic Development Initiative (EDI)

Program Description: EDI Provides grants to local government to enhance the security of Section 108 Guaranteed loans or to improve the viability of a project financed with a Section 108-guaranteed loan. EDI grants must be used in conjuncitn with new Section 108 guaranteed loan commitments and can be used as additional security for the loan (for example a loss reserve to reduce the exposure of CDBG funds or to pay for cost associated with the 108-assisted project

Amount Available: $35 million in FY 200 ( Additional $35 million for Brownfield EDI).

EDI

Typical Grant Size: $400,000-$700,000 Due Date: June 2000 Contact Paul Webster, (202) 708 1871

Brownfields Economic Development Initiative (BEDI)

Program Description: BEDI is designed to help local governments redevelop abandoned, idled, or underutilized industrial and commercial facilities where expansion is complicated by real or perceived environment contamination-with Section 108 loan guarantees to finance activities such as demolition, remediation, infrastructure construction or reconstruction, assistance to business and the construction of public facilities

Brownfields Initiative

Amount Available: $25 million Due Date: August 2001 Note: BEDI operates with a specific appropriation for

Brownfield sites but operates under the authority of the EDI program.

Contact: Paul Webster, (202) 708-1871 Ext 4559

Youthbuild

Program Description: Youthbuild provides funding to nonprofits, state and local governments, and housing agencies eligible to run Federal employment training programs to implement housing construction/rehabilitation training program for very low Income high school dropouts age 16 to 24. Program offer educational and job training services counseling and other support activities in conjunction with on-site paid training for construction work. 50% of participants time must be spent on-site

Amount Available: $33 million

Youthbuild

Use of Fnds: $8.3 million available for grants up in $350,000 for 18 month programs with 20 students $24.9 million available for grants either under $450,000 and up to 24 months or grants over $450,000 and up to 30 months. (maximum award of $700,000)

Due Date: June 2001 Contact: Phyllis Williams, (202) 708-2035

superNOFA III

Targeted Housing and Homeless Assistance Programs

Other HUD Programs

National Competition Program

Eligible Applicants: FHIP National Focus Education and Outreach - Fair Housing

Enforcement Organization and nonprofit agencies representing persons protected under Fair Housing Act or involved in fighting discrimination.

National Housing Counseling Training Program: HUD approved counseling agencies with 2+ year experience

National Lead Hazard Awareness Campaign: Public Relations Firms, Marketing/Advertising Companies, Nonprofit agencies.

Amount Available: FHIP - $3.5 million; NHCTP - $550,000; NLHAC - $1 million

Self Help Homeownership Opportunity Program

Eligible Applicants: Nonprofit national or regional organizations or consortia with capacity/experience to provide self-help housing.

Program Description: Assist low income (<80% of median) households to purchase homes through use of self-help and volunteer labor and community involvement in housing development. Housing development should be in a geographically diverse area. A minimum of 30 houses must be developed.

Self Help Homeownership Opportunity Program

Amount Available: $6,262 million (maximum of $10,000 per house)

Use of Funds: Funds can be used for acquisition, infrastructure administration, planning. Cannot be used by construction/rehabilitation.

Due Date: June 2001 (expression of interest) Contact: Joan Morgan, (202) 708-3226

Mainstream Housing for the Disabled

Eligible Applicant: PHA’s, TDHE’s, and eligible nonprofit disability organizaiotn

Amount Available: $48.5 million Program Description: Provides Section 8 rental assistance for 5

years for disabled Due Date: May 2001

HUD Single Family Disposition Program

Eligible Applicants: Government and nonprofit agencies for lease and sale program, nonprofit agencies for lease to purchase program.

Program Description: Leasing Program: Up to 10% of HUD held single family (1-4)

houses can be leased by homeless programs for 51 years (suspended until 12/31/98

Sale Program: Properties can be purchased at 10% discount (30% in Revitalization areas)

HUD Single Family Disposition Program

Program Description: (continued) Lease with option to buy: Six months lease with option to buy (at

10% discount, 30% discount in revitalization areas) if leaser receives Supported Housing Program funding. If not then can sell to PHA or maintain under lease program

Amount Available: NA Program does not include funding for rehab, operating or services.

Community Development Financing Institution (CDFI) <Treasury Department>

Eligible Applicants: Non governmental controlled corporations whose primary mission is to promote community development and whose primary business is the provision of loans of development investment

Program Description: Provides grants, equity (nonvoting shares), loans, deposits into credit unions or technical assistance for eligible financial entitles to either increase investment in distressed communities OR assist

CDFI

Program Description (cont.): Individuals who have been unable to take full advantage of the financial services industry. Program requires minimum of one to one match (from non Federal sources) of similar financing as requested from CDFI. Application requires documentation (of eligibility through staff/board), and 5 year business plan projecting market, services, management and financial health

CDFI

Amount Available: $60 million FY 2001. NO more than $2 million to any one entity (with exceptions) and more than $5 million over 3 years (with exceptions) SECA Program Provides up to $50,000 in operating support and $150,000 for new or emerging CDFI’s

Use of Funds: Equity, loans, and other investments in business or commercial facilities that promote community development or job retention or growth for low income people; low income housing; or other consumer lending products to assist

CDFI

Use Funds (continued): distressed communities, low income individuals, or others undeserved by the conventional financial market.

Due Date: SECA, March 27, 2001 Contact: John Carlisi, CDFI, (202) 622-8662

Bank Enterprise Award Program (BEA)

Eligible Applicant: Insured Depository Institution as defined by Section 3©2 of the Federal Deposit Insurance Act.

Program Description: Provide financing to depository institutions to support CDFI’s and their activities, increase investments in distressed communities, or increase service and assistance in distressed communities

Amount Available: $20 million in FY2001. An applicant will receive 15% of the increased amount of investment in targeted areas over a six month period

BEA Program

Amount Available: (cont.) 33% of increase for CDFI’s applying for CDFI Support Activities; 11% of increase for non-CDFI’s applying for CDFI Support Activities; 15% of increase for CDFI’s and 5% for non-CDFI’s for anticipated increase in Development and Service Activities in distressed communities.

Use of Funds: Equity, loans and other Investment in CDFI’s or distressed communities

Date Due: Summer, 2001 Contact: John Carlisi, CDFI, (202) 622-8662

Rural Rental and Cooperative Hosuing Loans and Rural Rental Assistance

Amount Available: Loans: $150= million, RA: $550+ million Date Due: Open ended (NOFS issued yearly in winter) Contact Person: Local Rural Housing Services office

Section 502 Direct Program Home Ownership

Eligible Applicants: Low (80% of median income and below) and very low income home buyers

Total Available: $975+ million Program Description: Provides 33 year 6,75% mortgages for

low and very low income home buyers, with monthly payment reduced to the equivalent of down to 1%, based on income verified annually. Home buyers get a certificate upon certification of eligibility use to assist purchase land or a home. For a $350 Fee, developer can receive forward (conditional) commitment for specific property

Section 502 Loan Guarantee Program

Eligible Applicants: Low and moderate income (115% median or less)

Amount Available: $3 billion Program Description: Guarantee 90% of loans for loans up to

100 % ltv with no PMI (1 point up front fee). No down payment requirement. Ratio’s are 29% and 41 %. Approximately 2, 000 lenders participate..

Section 504 Repair Loan

Eligible Applicants: Very low income home owners Amount Available: $25 million (loan) and $20 million (grant

for 62 y.o+ Program Description: Assist in making home safe, sanitary, or

to remove health hazards. No more than $20,000 (loan) and $75,000 (grant). Loans are 1% and 20 years.

Federal Home Loan Bank Affordable Housing Program (AHP)

Eligible Applicants: Federal Home Loan Bank members institutions, on behalf of project sponsors. Nonprofit or governments sponsor receive extra points.

Program Description: Direct Subsidy or to write down the interest rate for a loan. Subsidizes projects that purchase, construct, and/or rehabilitate for low and/or moderate income home ownership or rental housing.

AHP

Amount Available: Minimum of $100 million total in 12 national regions.

maximum per project varies by region typically $3,000 to $10,000/unit

Use of Funds:Acquisition, rehabilitation, and construction costs. Put in as direct subsidy to write down costs, down payment or closing costs, or interest rate write down. Cannot be used for capital or operating reserves or service (however, reasonable counseling costs may be eligible. limitations and/or reasonableness standard on developers fees and other costs

AHP

Due Date: Twice per year, varies by region. Contact: see attached Note: Conducted on a regional basis, AHP is authorized under

federal regulations but not a federal program. Nonprofit agencies must contact local member bank to apply.

Some major private sources

Fannie May Foundation 212.752.6500 Kresge Foundation 810.643.9630 Hearst Foundation 212.586.5404

Some major reduced rate lenders

The Enterprise Foundation 800-624-4298 The Low Income Housing Fund 415-777-9804 Local Initiative Support Corporation 212-455-9800 McAuley Institute 301-588-8110 Institution for Community Economics 415-746-8660

Tips for Grant Writing

Give them what they want - be creative in programming, not in grant writing.

Focus on outcomes - Foundations in particular like to see results for their investment.

Call to “ask questions” (unless Guidelines prohibit) as a way to market your program and clarify funding source priorities/interests

Keep updated - foundations, in particular, tend to change priorities frequently.

Tips for Grant Writing

Be concise - Funders have a lot of proposals and a reader can easily not understand you point if it is too verbose

Maintain good system for keeping funders informed of progress and successes and for giving them due credit

Receiving grant is a relationship building exercise - don’t be disappointed if you are turned down the first time - keep coming back

Tips for Grant Writing

If you are funded, don’t reapply until you can show results from your previous award.

Funders typically have substantial experience either directly or through funding - ask and respect their input (after you establish a rapport)

Know a funder role - they don’t have to know every up and down of your project (it may be exciting, but you don’t have to tell them when you get your zoning change or, conversely, when bids come in too high)