Summary of Services, Programs, and Initiatives Provided to Virginians with Disabilities

VIRGINIA HOUSING DEVELOPMENT AUTHORITY

1. Name of Service/Program/Initiative: Mortgage loan programs for rental housing
2. Service Description and Eligibility Requirements, If Any: VHDA provides permanent mortgage financing and combined construction/permanent financing under favorable terms and conditions for rental housing serving low- and moderate-income households. Loans are financed from the proceeds of VHDA-issued tax-exempt bonds and taxable bonds, as well as through the Virginia Housing Fund (VHF), which is capitalized with agency fund balances. Loan terms and conditions vary depending on the source of mortgage funds. Tax-exempt bond funds provide a below-market interest rate. Taxable bond funds provide a market rate of interest but offer other loan terms generally more favorable than those provided by private lenders. VHF funds provide a low rate of interest and the most flexible terms and conditions. Funds from differing sources can be blended to meet the particular needs of a rental housing development. VHDA financing can be used in conjunction with a variety of federal and state housing subsidies including Virginia Housing Partnership Fund monies, Low-Income Housing Tax Credits, HOME block grant funds, CDBG funds, McKinney Act subsidies, and Section 8 subsidies. Private for-profit, nonprofit and public entities are eligible to receive mortgage loans. Loan applications are received and processed on a first-come, first-served basis throughout the year. Applications for loans funded with bond proceeds are made to VHDA through participating private mortgage lenders. Applications for VHF-funded loans are made directly to VHDA.
3. Service Preauthorization Required: No
4. Target Population/s: Renter households of low and moderate income
5. Method of Administration: State - VHDA directly processes, closes and services all rental housing loans. Local - Under some programs, pools of loan funds may be allocated to local governments or housing authorities for use in conjunction with specific local programs. However, VHDA directly processes, closes and services all rental housing loans. Other - Under some programs, pools of loan funds may be allocated to nonprofit or private for-profit entities for use in conjunction with specific programs. However, VHDA directly processes, closes and services all rental housing loans.
6. General Availability of the Service Across the Commonwealth (e.g., statewide, only available in certain localities): Loans are made statewide.
7. Number of Persons Served Annually (Provide and indicate most recent year available):
   In FY 03, VHDA expects to provide financing that will support the development of an estimated 7,655 affordable rental housing units
8. Annual Service Cost/Allocation (Provide and indicate the most recent year available):
   In FY 03, VHDA expects to have the following funds available for lending:
   • Taxable bonds: $140 million
   • Tax-exempt bonds: $130 million
   • Virginia Housing Fund: $32 million
   • $302 million
9. Other Information or Comments About the Service:
   
   FOR ADDITIONAL INFORMATION CONTACT:
   Dick Johndrow
   804-343-5644
   dick.johndrow@vhda.com

VIRGINIA HOUSING DEVELOPMENT AUTHORITY

1. Name of Service/Program/Initiative: Low-Income Housing Tax Credits
2. Service Description and Eligibility Requirements, If Any: VHDA allocates federal Low-Income Housing Tax Credits (LIHTCs) to private for-profit, nonprofit and public developers of new or rehabilitated rental housing serving low-income households. Developers use the credits (primarily through syndication in the capital markets) as a major source of equity for their developments. This substantially reduces borrowing costs, thereby lowering rents to a level affordable to households with income less than 60% of area median. Generally, LIHTCs provide sufficient subsidy to provide rents affordable to households with income between 40% and 60% of area median.
   VHDA allocates two types of LIHTCs. Developments financed with tax-exempt bonds (whether through VHDA or a local issuer) automatically qualify to receive LIHTC assistance. The volume of "automatic" tax credits is determined by the level of tax-exempt bond financing, which in turn is limited by an annual volume cap for Virginia determined by a national formula.
   Developers of rental housing financed through other funding sources must compete for LIHTCs from an annual set aside of tax credits received by Virginia from the IRS under another national formula volume cap. Those competitive credits are allocated to rental housing developments by VHDA under a Qualified Allocation Plan (QAP) developed by VHDA in accordance with IRS requirements. Applications are accepted in the spring of each year.
   Rental housing developments financed with tax-exempt bonds or other federal subsidies qualify for a smaller tax credit (i.e., approximately 4%) than do developments financed without other federal subsidies (i.e., approximately 9%).
3. Service Preauthorization Required: No
4. Target Population/s: Low-income renter households
5. Method of Administration: State: VHDA
6. General Availability of the Service Across the Commonwealth (e.g., statewide, only available in certain localities): Tax credits are allocated statewide.
7. Number of Persons Served Annually (Provide and indicate most recent year available): In 2001, "automatic" LIHTCs associated with tax-exempt bonds were allocated to 34 rental developments containing 4,560 affordable rental units. "Competitive" LIHTCs were allocated to 44 rental developments containing 2,567 affordable rental units.
8. Annual Service Cost/Allocation (Provide and indicate the most recent year available):
   In calendar year 2001, $12,211,566 in LIHTCs were allocated competitively by VHDA. The dollar value of "automatic" LIHTCs allocated to rental housing developments using tax-exempt bonds in calendar year 2001 has not yet been determined.
9. Other Information or Comments About the Service: Generally, LIHTCs must be combined with other deep housing subsidies in order for rents to be affordable to households with incomes of less than 40% of area median.
   
   FOR ADDITIONAL INFORMATION CONTACT:
   Jim Chandler
   804-343-5786
   jim.chandler@vhda.com

VIRGINIA HOUSING DEVELOPMENT AUTHORITY

1. Name of Service/Program/Initiative: Mortgage loan programs for home purchase and home repair/improvement
2. Service Description and Eligibility Requirements, If Any: VHDA provides mortgage financing for the purchase of homes by low - and moderate-income homebuyers. Home purchase loans are financed from the proceeds of VHDA-issued tax-exempt bonds and taxable bonds, as well as through the Virginia Housing Fund (VHF), which is capitalized with agency fund balances. Loan terms and conditions vary depending on the source of mortgage funds and the type of mortgage insurance program used. Tax-exempt bond funds provide a below-market interest rate. Taxable bond funds provide a market rate of interest but offer other loan terms more favorable than those provided by private lenders. For example, loans financed with taxable bonds are offered at loan-to-value ratios of up to 100% of appraised value without a requirement for mortgage insurance. This makes monthly payments lower than with conventional mortgages. Loans can be for up to 110% of appraised value for borrowers needing to make accessibility improvements for a physically disabled household member. VHF funds provide a low rate of interest and the most flexible terms and conditions.
   VHDA financing can be used in conjunction with Section 8 homeownership programs to assist extremely low-income households in purchasing homes. VHDA is currently financing homes to Section 8 participants in a homeownership program sponsored by the ARC of the Piedmont in partnership with the Charlottesville Redevelopment and Housing Authority.
   VHDA also has a small home repair/improvement program that provides loans to low - and moderate-income homeowners with monies from the Authority's General Fund. Loans are insured through the HUD Title I program and provide a below market rate of interest. Loans can be used for accessibility and related improvements by disabled homeowners.
   Loan applications are received and processed on a first-come, first-served basis throughout the year. Applications for home purchase loans are made to VHDA either directly or through a statewide network of participating private mortgage lenders. Applications for home repair/improvement loans are made directly to VHDA.
   VHDA, in conjunction with its home purchase loan programs, provides free homebuyer education classes to potential homebuyers through a trained network of public and private partners using a VHDA-prepared curriculum. Participants have no obligation to apply for a mortgage loans through VHDA or any other mortgage lender. Classes are held regularly statewide. Locations and schedules are available from VHDA. VHDA will help arrange classes with special accommodations for people with disabilities.
3. Service Preauthorization Required: No
4. Target Population/s: Households of low and moderate income
5. Method of Administration: State--some home purchase loans and all home repair/improvement loans are originated, processed and closed by VHDA. Most loans are serviced by VHDA. Local - Pools of loan funds may be allocated to local government or local housing authority sponsored homeownership programs for use with specific projects. However, all loans are originated, processed, closed and serviced by either private lending agents or VHDA. Other - Most loans applications are originated, processed and closed through VHDA private lending agents. Private lending agents also service some loans. Pools of loan funds may be allocated to private for-profit or nonprofit homeownership program sponsors for use with specific projects. However, all loans are originated, processed, closed and serviced by either private lending agents or VHDA.
6. General Availability of the Service Across the Commonwealth (e.g., statewide, only available in certain localities): Loans are made statewide.
7. Number of Persons Served Annually (Provide and indicate most recent year available): In FY 03, VHDA expects to provide financing that will support the purchase of approximately 5,400 affordable homes by low- and moderate-income homebuyers and the repair/improvement of 50 homes by low- and moderate-income homeowners
8. Annual Service Cost/Allocation (Provide and indicate the most recent year available):
   In FY 03, VHDA expects to have the following funds available for lending:
   
   • Taxable bonds (home purchase): $470 million
   • Tax-exempt bonds (home purchase): $195 million
   • Virginia Housing Fund (home purchase): $32 million
   • Agency General Fund (home repair): $1 million
   • $698 million
9. Other Information or Comments About the Service:
   
   FOR ADDITIONAL INFORMATION CONTACT:
   Toni Ostrowski
   804-343-5982
   toni.ostrowski@vhda.com

VIRGINIA HOUSING DEVELOPMENT AUTHORITY

1. Name of Service/Program/Initiative: Housing Choice Vouchers (Section 8)
2. Service Description and Eligibility Requirements, If Any: The federal Housing Choice Voucher (Section 8) program provides subsidies to very low-income households (income less than 50% of area median) to reduce the household's share of gross housing costs to 30% of income. Qualifying households who are awarded a voucher must locate a housing unit on the private market that meets HUD housing quality standards (HQS) and payment standards, and that is owned by a landlord willing to participate in the program (federal law does not mandate landlord participation). Vouchers are "portable" from one locality to another under certain restrictions and limitations. Public housing agencies ("PHAs" - i.e., HUD-approved state local and state entities that administer vouchers) are authorized to assign a small share of the vouchers in their programs to particular rental developments (i.e., "project-base" them) in order to facilitate project feasibility.
   Recently, the federal government has authorized PHAs to establish homeownership programs through which eligible households can use their voucher to cover mortgage costs. The homeownership option is just now being extended from a demonstration to a full-fledged program, so that most PHAs are still in the process of developing and implementing local initiatives (PHAs are not required to establish homeownership options). In Virginia, HCV homeownership programs are currently up and running in Danville and in the Charlottesville area where the ARC of the Piedmont has initiated a program in partnership with Charlottesville Redevelopment and Housing Authority.
3. Service Preauthorization Required: Yes. Renter households must meet HUD program eligibility requirements including income limits that restrict participation to households with income of 50% or less of area median (priority is given to households with income of 30% or less or area median). Virtually all localities have a long waiting list for assistance on which a household must be entered. In addition, PHAs may implement local preferences for certain types of households in establishing a waiting list.
4. Target Population/s: Very low-income renter households, with preference given to households with income of 30% or less of area median.
5. Method of Administration: State--VHDA currently administers the Housing Choice Voucher program in 64 localities (primarily small cities and rural and suburban counties) in partnership with local administrative agents. VHDA maintains overall responsibility for program management and administration, including making subsidy payments to participating landlords, providing training and support for local administrative agents, and monitoring for program compliance. Local agents take primary responsibility for setting local priorities, conducting outreach to eligible households, qualifying tenants and establishing waiting lists, recruiting landlords to participate, carrying out housing quality inspections, and coordinating the provision of support services to households participating in special HCV supportive housing initiatives such as the Mainstream Program. VHDA's local administrative agents include local departments of social services, other local agencies, CSBs, CILs, and other nonprofit entities.
   Local -- Generally, in localities with a HUD-approved PHA (these are mostly independent cities), the PHA administers the Housing Choice Voucher program directly through HUD without assistance from VHDA. [See above for role of VHDA local administrative agents.] Other--
   Under the Mainstream Program, nonprofit entities with sufficient capacity are also eligible to administer vouchers directly with HUD. To date, the ARC of the Piedmont, in partnership with the Charlottesville Redevelopment and Housing Authority, is the only nonprofit Housing Choice Voucher administrator in Virginia.
6. General Availability of the Service Across the Commonwealth (e.g., statewide, only available in certain localities): Housing Choice Vouchers are available in most areas of Virginia with the exception of a number of rural counties. VHDA will administer HCVs in any county/city lacking a local program where there is an able and willing local administrative agent. In counties without a local program or an able/willing local administrative agent, VHDA will strive to serve eligible households through a VHDA local agent in an adjacent community.
7. Number of Persons Served Annually (Provide and indicate most recent year available): As of July 2002, VHDA's HCV program serves 8,726 households. Over 30,000 more households are served by HCV programs administered directly with HUD by local PHAs.
8. Annual Service Cost/Allocation (Provide and indicate the most recent year available):
   As of July 2002, VHDA is administering $36,750,880 in annual HCV subsidies.
9. Other Information or Comments About the Service:
   
   FOR ADDITIONAL INFORMATION CONTACT:
   Sharon Fairburn
   804-343-5893
   sharon.fairburn@vhda.com

   

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