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Welcome

Michele Watson

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SPARCSponsoring Partnership And Revitalizing Communities

Round 8 (FY 10)-Webinar

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VHDA Participants• Michele Watson

– Director of Home Ownership Programs

• Janice Burgess – Loan Programs Manager

• Toni Ostrowski – Senior Community Housing Officer

• Sandy Redd– Business Partner Products Manager

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Purpose of Webinar

• Inform VHDA partners and stakeholders of Round 8 funding availability

• Review programmatic changes

• Discuss underwriting criteria

• Answer questions or concerns

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Questions?

• Questions will be addressed at the end of the webinar

• Please type your question in the dialogue box

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SPARC - Round 8 Guidelines

Toni Ostrowski

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Round 8Special allocation available to:

– Local governments– Redevelopment and housing authorities– Nonprofit housing advocates– For profit developers– Other

Purpose:– Assist housing advocates by providing a

set-aside of resources to address critical housing needs

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Round 8 AllocationGuide is available on line www.vhda.com

Timeline– Applications deadline: Close of business August 14,

2009– Submit applications electronically to:

sparcapplications@vhda.com – Scoring & Ranking completed by mid-Sept– Notification of VHDA Board of Commissioners– Commitments mailed by 3rd week of September– Reservations available October 1st

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Eligible Projects

• Project proposal-5 units or more• Single family detached, townhomes and

approved condominiums• Subdivision or scattered sites acceptable• All deed restrictions must terminate at

foreclosure

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Scoring of SPARCSPARC Proposal

POINTS TAB DOCUMENTATIONMandatory I. Application Transmittal

80 (90 for NSP)

II. Narrative Summary20 pts. Need

60 pts. Strategy (70 NSP)Mandatory III. Typical Home Transaction

20 IV. Supporting Documentation-Proposal Readiness

10 V. Bonus points

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Housing Strategy

Areas of Concentration• Expand Affordable Housing Opportunities• Address Housing Needs of Minorities &

Diverse Cultures• Support Community Revitalization• Increase Housing Opportunities for

Seniors and People with Disabilities

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Expand Affordable Housing Opportunities

Scoring based on the following:1. Income2. Home Inspection3. Leverage

Round 8 changes:• 20 points (high) for 80% AMI & below• 30 points (high) for leverage of 10%

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Address the Housing Needs of Minorities and Diverse Cultures

Scoring based on the following:1. Marketing/Outreach2. Home Inspection3. Leverage

Round 8 changes• Leverage

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Support Community Revitalization

Scoring based on the following:1. Property2. Home Inspection3. Leverage

Round 8 Changes• Priority 30 points given to NSP

partnerships• Leverage

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Increase Housing Opportunities for Seniors and PWD

Scoring based on the following:1. Property2. Home Inspection3. Leverage

Round 8 changes:• Leverage

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Readiness of Proposal• Zoning

• Site Control

• Utility Service

• Partnerships in place

• Utilization of past SPARC allocation

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Bonus Points Categories

Green Building– Energy Star Certification (5 Star)– EarthCraft Certified– Certified by the Enterprise Foundation Green

Communities program

Universal Design– Incorporate UD elements to meet minimum

standards for visitability– Attend a UD training session

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Allocations

Allocations will carry an interest rate reduction of ½%

and/or

Allocations of FHA Plus resources(prevailing FHA Plus rate at time of reservation)

– Proposal scoring/ranking and leverage will determine allocation types

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SPARC Commitments

• Commitment will specify the following:– allocation amount and type

• 1/2% - all eligible programs• Prevailing market rate –FHA Plus only

– Expiration: June 30, 2010– Loan type (e.g. government insured or

conventional)

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Underwriting

Janice Burgess

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Lender Responsibilities• Confirm procedures with SPARC sponsor• Confirm special commitment criteria with

SPARC sponsor • Make loan reservation• Determine borrower eligibility per VHDA

guidelines• Originate/Process/Underwrite/Close loan• Submit all required documents to VHDA

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Eligible SPARC Programs• Conventional• FHA• VA• RHS• FHA Plus• Homebuyer Tax Credit Plus (must close no

later than November 30, 2009)

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SPARCSPARC Loan ParametersBorrowers 1st time homebuyers

Interest Rate Refer to Sponsor’s commitment: ½% below VHDA 1st time homebuyer rate @ reservation or the prevailing FHA Plus interest rate

Mortgage Insurance Loans with LTV’s of 80% or more must be government insured

Sales Price Limitations

Cannot exceed VHDA Income limits for 1st time home buyer program

Income Limits

Gross household income cannot exceed VHDA’s 1st time home buyer program. Cannot exceed limits established by Sponsor in SPARC application

Underwriting VHDA standards for 1st time homebuyer program

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Recent Underwriting Changes FHA Plus

• Minimum 620 Credit score• Collections exceeding $250 or $1000

cumulative must be paid prior to closing• Maximum 31%/43% ratios (DE underwriter may

grant exceptions up to 38%/50%)

• Qualifying income – part time, overtime, commissions – consider current earnings

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Condominium Requirements

• Property must meet the requirements of the insurer and must be approved by:– FHA– Fannie Mae or– Freddie Mac

• It is recommended that condominium developments be FHA approved

– VHDA will finance no more that 25% of the units in any development

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Secondary Financing

• Providers must execute a VHDA Secondary Financing Certification

• Secondary financing must be provided by government entity

• Secondary financing may not be made by seller

• Shared equity and deed restrictions must be approved by VHDA

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Reservation Procedures

Sandy Redd

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Reservation Form

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Reservations Procedures

• Pricing Options are not available

• Reserve SPARC funds

– Must have authorization from SPARC sponsor prior to reserving

– Reservation form faxed to VHDA (cannot reserve on-line)

• Fax reservation form to (804)343-8413

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Questions?Questions?