2009 CONGRESSIONAL BRIEFING Department of Housing & Urban Development Atlanta Regional Office...

2009 CONGRESSIONAL BRIEFING

Department of Housing & Urban DevelopmentAtlanta Regional Office

September 16, 2009

2009 CONGRESSIONAL BRIEFINGSeptember 16, 2009

10:00 a.m. - 12:15 p.m.

10:00 Welcome and Overview Patricia A. Hoban-Moore, Deputy Overview 2010 HUD Budget Regional DirectorInter-Agency Agreements

Facilitator/Introductions Thomacina Brown, Supervisory Operations Officer10:15 Presentations

10:15 Public Housing Ada H. Holloway, DirectorOverview and ARRA FundingPublic Housing Grant ProgramHousing Choice Voucher Funding

10:30 Single Family Housing N. Daniel Rogers III, DirectorOverviewForeclosure Prevention InitiativesHousing Counseling Agencies

10:50 Community Planning and Development Hak-Keun Chang, Program ManagerNOFAsNeighborhood Stabilization Program (NSP) & ARRA FundingCurrent Issues and Homeless Prevention & Rapid Re-Housing Program

11:05 Fair Housing and Equal Opportunity James N. Sutton, Director FHIP/FHAP Agencies in GeorgiaNOFAsSection 3 InitiativeSignificant Georgia Cases

11:20 Westchester County, NY Fair Housing Case Sherri Smith, Office of Counsel

11:30 Multifamily Housing Sue Barron, Director, Project Mgmt.NOFAsARRA FundingGreen Retrofit Program and Other Initiatives

11:45 Regional Inspector General’s Office Michael Powell, Special Agent in Charge James McKay, RIG for Audit

Oversight & Monitoring of ARRA Funds and Fraud Prevention

12:00 HUD Web Resources

12:00-12:15 Q&A / Issues discussion Adjourn

CONGRESSIONAL BRIEFINGWELCOME

Atlanta Regional Office visit: www.hud.gov/georgia OR call: 404-331-5136

http://www.hud.gov/georgia


CONGRESSIONAL BRIEFING

• Public & Indian Housing

• Single Family Housing

• Community Planning & Development

• Office of Fair Housing & Equal Opportunity

• Atlanta Multifamily HUB

• Regional Office of Inspector General

Atlanta Regional Office visit: www.hud.gov/georgia



Public & Indian HousingCustomer Service 1-800-955-2232

Established to provide decent and safe rental housing for eligible low-income families, the elderly,

and persons with disabilities.

Georgia: 185 Housing Authorities– Atlanta Field Office performs monitoring & oversight– 50,000 Public Housing Units/52,000 HCV– 75% of PHAs have less than 250 housing units– Atlanta Housing Authority is the largest with 8,000 Public

Housing Units & 15,000 HCV.– Georgia DCA largest HCV agency with 16,000 vouchers.– Funding provided annually

To view Georgia’s Housing Authorities visit: www.hud.gov/offices/pih/pha/contacts/index.cfm

http://www.hud.gov/offices/pih/pha/contacts/index.cfm


• Operating Fund – Provides annual funding to PHAs to fund the difference between rental income collected and actual cost of operating the PHA. Funds PHA salaries, resident services, utilities, insurance, maintenance, etc.

• Capital Fund – Funding for PHA capital improvements. Funds can be used to renovate/modernize PHA housing stock and for development.

– Total Operating Subsidy Received for 2009 = $166 Million – Total Capital Funds Received 2009 = $87 Million

– Total Operating Subsidy Received for 2009= $166 Million – Total Capital Funds Received 2009= $87 Million

To view Georgia’s Housing Authorities visit: www.hud.gov/offices/pih/pha/contacts/index.cfm

http://www.hud.gov/offices/pih/pha/contacts/index.cfm


ARRA Capital Fund Program $4 Billion Nationwide – New Public Housing

Capital Fund Grants$3 Billion – Formula Grant$1 Billion – Competitive Allocation

Georgia - $112,675,806 PHCFAtlanta PHA - $26,579,168

Received by 185 PHAsTo view Housing Authority Allocations visit:

http://portal.hud.gov/portal/page/portal/RECOVERY/programs/CAPITAL_STIMULUS


ARRA Capital Fund GrantsRequirements

• Funding obligation effective date: March 17, 2009.• PHAs must obligate 100% of the funds within one year of

the date funds became available - March 17, 2010.• Expend at least 60% of funds within two years of the date

funds became available – March 17, 2011.• 100% must be expended within 3 years – March 17, 2012.

For Subsidized Housing visit: www.hud.gov/apps/section8/index.cfm

http://www.hud.gov/apps/section8/index.cfm


ARRA Capital Fund GrantsRequirements:• ARRA funds must be used for capital improvement activities:

– Deferred Maintenance– Rehabilitation– Correction of environmental issues– Demolition/relocation

• Cannot be used for operations or rental assistance.• Administrative costs limited to 10% of the total grant.

To view Housing Authority Allocations visit: http://portal.hud.gov/portal/page/portal/RECOVERY/programs/CAPITAL_STIMULUS


Public Housing Grant Programs2004 - 2008 funding for all grant programs in Georgia =

$8.5 Million• Residential Opportunity & Self Sufficiency Program

(ROSS)• Provide grants to PHAs for resident supportive services

• Family Self Sufficiency Program (FSS)• Employment and savings program for HCV and PH

residents

• Neighborhood Networks• Computer Learning Centers at PHAs (10 in GA)



Housing Choice Voucher (HCV) Funding $295 Million – Total 2009 Georgia HCV Funding

• HUD provides annual Housing Assistance Payments (HAP) to PHAs based on appropriations

• PHA makes HAP payments to landlords on behalf of residents (resident payment based on income)

• PHAs receive funds for administrative expenses based on monthly voucher leasing



Housing Choice Voucher Funding • PHA Funding Shortfalls

• Portability payment issues (PHAs not receiving payments timely)

• Incorrect reporting by PHAs in HUD’s Voucher Management System (VMS)

• Unexpected rising HAP costs.• HUD is working with PHAs to cover HAP expenses for

2009







• Multifamily Housing


For Single Family Housing visit: www.hud.gov/offices/hsg/sfh/hsgsingle.cfm

http://www.hud.gov/offices/hsg/sfh/hsgsingle.cfm

SINGLE FAMILY HOUSINGFHA Resource Center: 1-800-CALL- FHA

Nat’l Service Center Hotline: 1-888-297-8685

Guide to Avoiding Foreclosure visit: www.hud.gov/foreclosure/index.cfm

http://www.hud.gov/foreclosure/index.cfm



JURISDICTIONAlabama Florida

Georgia Kentucky

Illinois Mississippi

Indiana North Carolina

South Carolina

Tennessee Caribbean





Operations and Customer Service

Provides administrative support, quality control oversight and management consulting internally to the HOC staff and provides assistance to the public and the housing industry related to HUD’s Single Family FHA programs.

For a HUD Approved Counselor visit : www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm

http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm



Program Support Division

Program Support promotes the Department's mission of providing affordable housing opportunities through Single Family FHA programs for Nonprofit Organizations and Housing Counseling activities





Housing Counseling Agencies

• FY 2008 Atlanta HOC awarded $5,026,194

– $1,362,250 awarded to 20 Housing Counseling Agencies in the State of Georgia

• Housing Counseling Grants for FY 2009 should be announced in early October 2009





Processing and Underwriting

Processing and Underwriting is responsible for insurance endorsement of FHA loans and monitoring lenders (through post endorsement and pre-closing technical reviews) and appraisers (through desk and field reviews of appraisals) for compliance with FHA underwriting, insurance endorsement, and appraisal guidelines and regulations.

For a Hope Now visit : www.hopenow.com

http://www.hopenow.com/



Quality Assurance

Quality Assurance is responsible for evaluating and monitoring lenders to ensure that HUD/FHA approved lenders are originating quality loans and servicing FHA-insured loans in compliance with the Department's requirements.





Real Estate Owned

Real Estate Owned is responsible for oversight of the sale of Single Family FHA foreclosed properties for an 11 state area.

REO focuses on selling to owner occupants and nonprofits with the ultimate goal of minimizing the cost to the FHA Fund.

For a Making Home Affordable visit : www.makinghomeaffordable.gov

http://www.makinghomeaffordable.gov/

Making Home Affordable Program

FHA’s Home Affordable Modification Loss Mitigation Option (FHA- HAMP)






FHA’s Home Affordable Modification Loss Mitigation Option

The new FHA-HAMP authority will allow the use of a partial claim up to 30 percent of the unpaid principal balance as of the date of default combined with a loan modification.

The objective of FHA-HAMP is to assist FHA mortgagors who are in default to modify their mortgage to an affordable payment




Debt To Income RatiosFront-End Ratio – The total first mortgage payment

(PITI) divided by the mortgagor’s gross monthly income, shall be 31%.

Back-End Ratio – The total first mortgage payment plus all recurring monthly debt divided by the mortgagor’s gross monthly income, shall not exceed 55%.





Requirements To Use FHA-HAMP:

Mortgagees must evaluate the defaulted mortgage for Loss Mitigation actions in the following priority order:

1. Existing FHA Home Retention Loss Mitigation Options

2. FHA-HAMP

For HUD Homes for sale visit : www.homesales.gov

http://www.homesales.gov/



Mortgagee Incentives• Loan must be in default (>= 30 days past due)

• 2 types of Incentive Payments:

• Upon completion Mortgagee receives:

– FHA-HAMP - $1,250 ($500 Partial Claim + $750 Loan Mod)

– FHA-HAMP - Mortgagees may also claim up to $250 for reimbursement for a title search and/or recording fees on the Loan Modification.





MonitoringFHA will monitor Mortgagees for compliance.

FHA will take administrative action, including sanctions and penalties, against all parties for non-compliance.

For UFMIP Refunds visit : www.hud.gov/offices/hsg/comp/refunds/index.cfm

http://www.hud.gov/offices/hsg/comp/refunds/index.cfm



FHA Loss Mitigation• Prevents foreclosure• Maximizes homeownership retention• Preserves the FHA insurance funds• Delegates decision making to lenders• Combination of incentives and aggressive monitoring

ensure compliance





Home Retention Options

• Special ForbearanceNo limit on term of repayment planReduced or suspended payments

• Loan ModificationPermanent change to rate,

principal or amortization





Disposition Options

• Pre-foreclosure SalePrivate sale of the property for less than full

debt.

• Deed in Lieu of ForeclosureVoluntary giving of the property to the lender

in exchange for a full release from the debt.





HUD Approved Counseling Agency• Call 1-800-569-4287• No charge for loss mitigation, foreclosure

prevention or default counseling.





Hope For Homeowners• Program began October 1, 2008• Authorized under the Housing and Economic Recovery Act of 2008

(HERA)• Voluntary for lenders, investors, loan servicers and borrowers• 400,000 vs. 125 borrowers• Plan to improve program:

– Permit borrowers with higher debt loads to qualify.– Incentives to servicers.– Pursuing legislation so that FHA can reduce its fees.– Increase new loan maximum from 90% of current value to

95% of current value.





American Recovery and Reinvestment Act of 2009

• Signed into law February 17, 2009• It is estimated that the Homeowner Affordability and

Stability Plan will help 7 to 9 million families restructure or refinance their mortgages to avoid foreclosure.





Making Home Affordable Program• Treasury will spend up to $75 billion to make mortgage

payments affordable and sustainable for those at risk of foreclosure.

• Program guidance issued March 4th.• Interactive self-assessment tools, calculators and more.• Estimated to reach 3 to 4 million at risk homeowners.• Focus on homeowners who are at risk due to some form of

hardship.• No fee for modifications under program.• Program ends December 31, 2012.





Making Home Affordable Program -Eligibility• Current mortgage obtained prior to January 1, 2009.• Maximum mortgage of $729,750.• Both those whose payments are current and those who have

fallen behind may apply.• Must be able to prove hardship.• Current payments must be more than 31% of gross income,

before taxes.• Payments include principal, interest, taxes, insurance and

homeowners association or condominium fees.• Do not have sufficient cash or ready available assets to meet

current payments.





Making Home Affordable Program –Eligibility• Home must be owner occupied.• Property can have 1 to 4 units, as long as the owner lives there.• Condos, coop apartments and manufactured homes attached to a

foundation are eligible.• House cannot be vacant or condemned.• Does not apply to second homes.• Those with “back end” debt (which includes not only housing

debt, but other debt including car loans and credit card debt) equal to 55% or more of their income will be required to enter a HUD-approved counseling program as a condition for modification.





If Eligible, Then…• Before contacting your lender, gather together all of the

necessary information.• Proof of monthly gross income before taxes• Most recent income tax return.• Information on your assets.• Information on any second mortgage or other liens on your

home.• Account balances and monthly payments due on all of your

credit cards.• Account balances and monthly payments on all of your other

debt, such student loans, car loans, etc.





How Does It Work?• First, lender reduces the monthly mortgage payment to the

point where it is no more than 38% of the borrower’s income.• Second, Treasury will match further reductions in monthly

payments dollar-for-dollar, from 38% down to a 31% debt-to-income ratio for the borrower.

• To reach the target affordability rate of 31%, interest rates will first be reduced down to as low as 2%.

• If at that rate the debt to income ratio is still over 31%, lenders will then extend the term up to 40 years.

• Finally, lenders will forbear principal at 0% interest, until payment is reduced to the 31% target.





How Does It Work?• To ensure long term affordability, the modified payment will be

kept in place for 5 years and the loan rate will be capped for the life of the loan.

• After 5 years, the interest rate can be gradually stepped-up by 1% per year to the conforming loan survey rate in place at the time of the modification.

Net Present Value Test• Servicers will apply a “net present value” test to determine

whether a loan modification is in the financial interests of the lender or investor who owns the loan.

• If it is not, you may not qualify for a loan modification.


http://www.hud.gov/offices/hsg/comp/refunds/index.cfm



Incentives to Servicers• Servicers will receive an up-front fee of $1,000 for each eligible

modification.• Servicers will also receive “pay for success” fees – awarded

monthly as long as the borrower stays current on the loan – of up to $1,000 each year for 3 years.

Incentives to Lenders• To help keep lenders focused on reaching borrowers who are

trying their best to stay current on their mortgages,• Incentive payment of $500 paid to servicers, and an incentive

payment of $1,500 to mortgage holders, if they modify at-risk loans before the borrower falls behind.




Incentives to Borrowers• Monthly balance reduction payment that goes straight towards

reducing the principal balance of the mortgage loan.• As long as borrower stays current, they can get up to $1,000 per

year each year for 5 years.

For HUD homes (PEMCO) call : 1-800-881-9260



Home Affordable Refinance Program (HARP)• Borrowers who are current on their mortgage but have been

unable to refinance because their house has decreased in value may now have the opportunity to refinance.

• Fannie Mae or Freddie Mac will allow the refinance of loans that they hold in their portfolio or that they guarantee in their own mortgage-backed securities.

• To find out if your loan is owned or securitized by Fannie Mae or Freddie Mac and if you are eligible for this refinance, go to:– www.makinghomeaffordable.gov– Or call 1-800-7FANNIE– Or call 1-800-FREDDIE

For HUD homes (PEMCO) call : 1-800-881-9260



Home Affordable Refinance Program (HARP)• You must have a Fannie Mae or a Freddie Mac loan.• You must be current on your payments.• House must be your primary residence.• Must be able to prove that you can afford to make the payments.• Program ends June 2010.• Maximum mortgage amount is 105% of the current estimated

value of the property.• Maximum loan is $729,750.• Note: This is not free. There will be fees and costs associated with

the refinance.




Home Affordable Refinance Program (HARP)• Before contacting your lender, gather together all of the

necessary information.• Proof of monthly gross income before taxes.• Most recent income tax return.• Information on your assets.• Information on any second mortgage or other liens on your home.• Account balances and monthly payments due on all of your credit

cards and other debt.





Taylor, Bean, & Whitaker AccountsFor FHA:

Bank of America – Home Loans Servicing, LPPayment Processing:

P.O. Box 10334, Van Nuys, CA 91410-0334Phone: 1-800-669-6607

www.bankofamerica.comFor Conventional:

Central Loan Administration & Reporting (CENLAR)425 Phillips Blvd., Trenton, NJ 08628

Phone: 1-609-883-3900Toll Free: 1-800-223-6527

http://www.cenlar.com




HOPE NOW Goals:

Create a single point of contact for foreclosure assistance: 1-888-995-HOPE

Reach “no-contact” borrowers through targeted mailings and a national ad campaign

Streamline workout process via a common technology platform: www.hopenow.com








For CDBG information visit: http://portal.hud.gov/portal/page/portal/RECOVERY/programs/COMMUNITY

COMMUNITY PLANNING & DEVELOPMENT

404-331-5139

American Recovery and Reinvestment Act of 2009

$1 Billion – New Nationwide CDBG-R Formula Funding

$21.9 Million – Total New CDBG-R Funds in Georgia

New CDBG-R Funding:

$11.1 Million – Entitlement Communities$10.8 Million – State of Georgia (Non-entitlement CDBG Allocation)



404-331-5139

Community Development Block Grant ProgramEnables local governments to undertake a wide range of activities intended to:

– Create quality living environments

– Provide decent affordable housing

– Create economic opportunities primarily for persons of low and moderate income.

Under ARRA, recipients shall give priority to projects that can award contracts based on bids within 120 days of the grant agreement.



404-331-5139

Homelessness Prevention & Rapid Re-Housing (HPRP) Fund

Total Georgia Allocation - $33,624,789

• $14,540,363 – 11 Georgia Entitlement Communities– City of Atlanta (largest) - $3,441,091

• $19,084,426 – State of Georgia DCA

Program Description:

• Financial Assistance/Services to prevent homelessness

• Help homeless be quickly re-housed and stabilized

• Short & medium term rental assistance/housing relocation services


404-331-5139

ARRA Neighborhood Stabilization Program II$2 Billion in New Funds will be awarded through a competitive

process.

Program Description:• Targeted at mitigating the impact of foreclosures.

• For purchase & rehabilitation of foreclosed, vacant properties.

• Create more affordable housing & renew neighborhoods devastated by poor economic housing conditions.



404-331-5139

ARRA Tax Credit Assistance Program$2.25 Billion in New Funds Nationwide

$54.4 Million Georgia DCA


Provides grant funding for capital investment in Low Income Housing Tax Credit (LIHTC) projects via a formula-based allocation to State housing credit allocation agencies.

The housing credit agencies in each State shall distribute these funds competitively & according to their qualified allocation plan.

For Georgia Department of Community Affairs call: 404-679-4940


404-331-5139

ARRA Tax Credit Assistance Program

Housing credit agencies must give priority to projects that are expected to be completed by February 2012.

– 75% committed by February 2010.

– 75% expended by February 2011.

– 100% expended by February 2012.

For Georgia Department of Community Affairs call: 404-679-4940








FAIR HOUSING & EQUAL OPPORTUNITY

Questions: 404-331-1798Discrimination Complaints 1-800-669-9777

Fair Housing Act

Prohibits discrimination on the basis of:Race

Color

Religion

National Orgin

Sex

Familial Status

Disability

FHEO Online Complaint Form visit: www.hud.gov/complaints/housediscrim.cfm



Notification of Funding Availability

Fair Housing Assistance Program (FHAP) reimburses State & local agencies that enforce laws substantially equivalent to the Fair Housing Act.

Fair Housing Initiatives Program (FHIP) provides funding to nonprofits, community groups, & faith-based organizations to carry out private enforcement & education.



Questions:404-331-1798Discrimination Complaints 1-800-669-9777

Fair Housing Agencies in Georgia


Georgia Commission on Equal Opportunity2 Martin Luther King Jr. Drive SESuite 1002 – West TowerAtlanta, GA 30334(404) 656-1736 or (800) 473-OPENwww.gceo.state.ga.us

Metro Fair Housing Services, Inc.1514 East Cleveland Avenue, Suite 118East Point, Georgia 30344(404) 765-3985Email: [email protected]



HUD Section 3 Initiatives Section 3 of HUD Act of 1968 requires to the greatest extent feasible, that recipients of HUD funds (and their contractors and subcontractors) provide jobs and other economic opportunities to low-income persons specifically public housing residents.

Eligible Recipients – PHAs, State and Local Governments, Nonprofits and their contractors.

Eligible Customers – Residents of PHAs, Those Living Near PHAs, etc.

ARRA Section 3 Opportunities




Steps to Address Foreclosure Crisis/Lending Discrimination

Examples of Fair Housing cases settled.









Atlanta Multifamily HUB: www.hud.gov/offices/hsg/hsgmulti.cfm

MULTIFAMILY HOUSING Questions: 404-331-4976

Publications & Complaints 1-800-685-8470

ARRA Project Based Rental Assistance

$2 Billion Nationwide

Provides a full year of payments to landlords participating in Section 8

$44,627,882 – Georgia Allocation of Project Based Rental Assistance

127 Properties

Grants Management visit: www.hud.gov/offices/adm/grants/fundsavail.cfm#avail

MULTIFAMILY HOUSING Questions:404-331-4976


ARRA Green Retrofit Program

for Multifamily Housing (Competitive)

$250 Million Nationwide


Investment in energy efficient modernization & renovation of HUD-sponsored units for low-income, elderly & disabled persons.

Administered by the Office of Affordable Housing Preservation.




Healthy Homes/Lead-Based Paint

$100 Million Nationwide

Competitive grants to local governments & non-profit organizations.

Remove lead-based paint hazards in low income housing.

Administered by the Office of Lead Hazard Control & Healthy Homes.




Notice of Funding Availability (NOFA) for Multifamily Housing Programs

September 9, 2009

Georgia Funding:

Section 202 Program for the Elderly

Metro Area – $5,431,251 (50 units)

Non-Metro Area – $1,518,154 (14 units)

Section 811 Program for Persons with Disabilities$1,818,253 (17 units)








• Regional Office of the Inspector General

Atlanta Regional Office visit: www.hud.gov/georgia

REGIONAL OFFICE OF THE INSPECTOR GENERAL

OIG Hotline: 1-800-347-3735Fax: 202-708-4829

ARRA Activities Overview

Fraud Prevention Initiatives

Fraud, Waste, Abuse, and Serious Mismanagement

Email – [email protected]

Office of Inspector General visit: http://www.hud.gov/offices/oig/

Web ResourcesHUD website www.hud.gov/georgia

GA Department of Community Affairs www.dca.state.ga.us/main/Contact/index.asp

Georgia Housing Search www.georgiahousingsearch.org

HCV Waiting List www.dca.state.ga.us/RentalAssistance/WaitingLists/Public/CountySelection.aspx

Homeless Resources – HPRP Grantees www.dca.state.ga.us/housing/specialneeds/programs/HPRP.asp

Georgia Housing Counselors www.hud.gov/local/ga/homeownership/hsgcounseling.cfm

Grants www.hud.gov/grants/

HUD Homes - PEMCO, Ltd. http://www.hudpemco.com/

Making Home Affordable http://makinghomeaffordable.gov/

FHA Refunds www.hud.gov/offices/hsg/comp/refunds/

Office of Inspector General visit: www.hud.gov/offices/oig/hotline/index.cfm

Contact InformationOffice of Regional Director

Thomacina BrownSupervisory Operations Officer678-732-2380 phone404-331-4020 [email protected]

Emma H. NewsomeCongressional Liaison678-732-2448 phone404-331-4020 [email protected]

Georgia HUD Website: www.hud.gov/georgia

Mailing Address:Department of Housing & Urban Development

Atlanta Regional OfficeFive Points Plaza Building

40 Marietta Street, S.W., Suite 2000Atlanta, GA 30303

Phone: 404-331-5146

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