2006 nifa affordable housing deal makers’ marketplace dealing with out of date housing stock...
TRANSCRIPT
2006 NIFA Affordable Housing Deal Makers’
Marketplace
Dealing with Out of Date Housing Stock
January 2006
Roger D. Nadrchal
Executive Director
Staff
Roger Nadrchal, Executive Director
Leslie Coleman, Program Director
Mitch Borst, Housing Assistant
Kelli Holton, Administrative Assistant
Mission Statement
To strengthen families and communities by developing opportunities that make homeownership a reality
We renovate “out of date housing stock” to make them safe, energy-efficient and affordable
Service Area
Purchase/Rehab/Resell Program is available to families and individuals living in communities within a 40-mile radius of Norfolk.
Purchase / Rehab / Resell Program
• EVCDC Designed Original Program
• Implemented in 1997
• Very Successful To-Date
Achievements
201 Units Rehabilitated
Property Value: $13,500,000
Down Payment Assistance: $2,400,000
Housing Project Averages
2005 Overall
Initial Purchase $61,850 $55,200
Resale Value $74,500 $67,300
1st Mortgage $64,137 $56,676
Rehabilitation $ 8,500 $ 7,200
Homebuyer Equity $ 2,708 $ 1,600
Development Fee $ 4,111 $ 2,500
• Organization identifies housing unit
• Homebuyer identifies housing unit (Preferred)
House Selection
Initial Inspection
• Once property is identified, inspection is arranged• Inspection completed by qualified
inspector• Property inspected according to:
• Minimal Housing Quality Standards, (HQS)• DED Housing Rehab Standards• Other requirements: City, State, etc.
Review Results of Inspection
• Rehabilitation specifications reviewed– Review repairs with homebuyer– Review costs with homebuyer– Determine re-sale amount– Determine amount of cash needed from buyer– Determine amount of financing required
Submit Offer to Purchase
• Purchaser is organization, not homebuyer
• Amount of offer determined with homebuyers’ input
• Offer can be cash or loan
• Offer is “as-is”, no repairs required of seller
• Set purchase date as soon as possible
Contingencies on Offer to Purchase
• Homebuyer obtaining loan approval• Appraisal to meet purchase price of organization’s
homebuyer• Acceptable inspections
(electrical, plumbing, HVAC, etc.)• Lead Based Paint inspection• Termite inspection• Survey• Title Insurance
Appraisal Requirements
• Appraisal is ordered “subject to” by homebuyers’ lender– Eliminates need to have 2 different appraisals– Allows appraisal to be used for permanent
financing
• If valuation is acceptable, proceed to purchase property
Purchase/Rehab of Property
• Acquire property with Closing Agent or Realtor
• Have utilities put into organizations name
• Give Notice to Proceed to rehabilitation contractors and/or homebuyers– Use “Lead Safe Work Practices” when lead-
based paint is present
Resale of Property
• Determine all repairs are completed• Contact lender to have appraiser complete
final inspection to review list of repairs were completed according to write-up
• Establish closing agent, date & location• If providing Down Payment Assistance,
prepare loan documents as needed• Sell property, and finalize sale
Purchase/Rehab/Resell Example
PURCHASE PRICE OF HOME: $65,000Rehab Costs: (+) $ 5,000Development Fee: (+) $ 5,000PURCHASE PRICE FOR HOMEBUYER: $75,000
Lender’s Closing Costs: (+) $ 4,500TOTAL EXPENSES TO BE PAID BY HOMEBUYER: $79,500
Elkhorn Valley CDC’s Down Payment Assistance (20%): (-) $15,000Buyer’s Cash: (-) $ 1,000TOTAL CASH AVAILABLE: $16,000
ESTIMATED MORTGAGE LOAN NEEDED: $63,500
We educate and enable individuals and families to be responsible homeowners
We help homebuyers afford the American Dream
Achievements
$2,400,000 of down payment and closing cost assistance provided to 275 qualified homebuyers.
• Lenders• REALTORS®• Contractors• Closing Agents• Community Leaders• Norfolk Housing Agency• Homebuyers/Homeowners
Partners in Community Revitalization
Partners in Community Revitalization
Thank you for your time and attention!!