APPLICATION FOR FUNDS — 1 — (Version Date: 5/18/2012) APPLICATION FOR FUNDS FOR PROJECT TO HELP WASHINGTON HOMEOWNERS AVOID PREVENTABLE FORECLOSURES OR TO AMELIORATE THE EFFECTS OF THE FORECLOSURE CRISIS Please submit an application including all of the following information. Incomplete applications will not be considered. I. APPLICANT INFORMATION Organization Name: Peninsula Housing Authority (PHA) Mailing Address: 2603 S. Francis Street City, State, Zip: Port Angeles, WA 98362 County: Clallam and Jefferson If Tribal, Designate Tribe: Primary Contact Person: Kay Kassinger Primary Contact Phone No.: 360-452-7631 ext 41 Primary Contact Email: [email protected]Secondary Contact Person: Pamela J. Tietz Secondary Contact Phone No.: 360-452+7631 ext 21 Secondary Contact Email: [email protected]II. ORGANIZATION TYPE (check applicable) 501(c)3 nonprofit Tribal Governmental agency 30-003
Transcript
APPLICATION FOR FUNDS
— 1 —(Version Date: 5/18/2012)
APPLICATION FOR FUNDS FOR PROJECT TO HELP WASHINGTONHOMEOWNERS AVOID PREVENTABLE FORECLOSURES OR TO AMELIORATE
THE EFFECTS OF THE FORECLOSURE CRISIS
Please submit an application including all of the following information. Incompleteapplications will not be considered.
Tax Identification Number (TIN): 91-6000971Uniform Business Identifier (UBI): 601-138216000
A. Does your organization currently receive any funding from the AGO? If yes,please identify the date of your last report.
No; Yes.
B. Does your organization receive any funding from any other governmental agencyfor housing related projects or foreclosure related assistance? If yes, list thecontracts by title, contract number and funding amount for the past 3 years.
No; Yes.WA ST Department of Commerce -Home Ownership Opportunities Made Easier, Down Payment AssistanceProgram, 07-94100-055- $245,000Community Frameworks- pass through of HUD Self-help HousingOpportunity Program grant award - $255,000
Additional programs are listed on the attached SEFAs from '09,'10, and '11audits.
C. Is your organization solely owned/operated by a current state employee? If so,please complete the Ethics Certification process at www.ethics.wa.gov.
No; Yes.
IV. PROJECT PROPOSAL
A. Project Title Peninsula Housing Authority's Stabilize Housing AndRevitalization Efforts Program (SHARE)
B. Requested Amount: $1,750,000.00
C. Project summary: In 150 words or less, concisely describe your project and howit meets the criteria set forth in the settlement. This summary will help theCommittee review proposals. Attachments and exhibits are not allowed in thissection. Over-length summaries will disqualify application.The proposal includes two components:
Two area banks, First Federal and Sound Community, are partnering with thehousing authority to stop foreclosures of owner-occupied homes they service inClallam and Jefferson counties. The banks’ clients receive restructured loans andwith the program funds, foreclosure is avoided and they can remain in theirhomes. The program funds will cover arrearage, late fees, legal expenses,overdrawn escrow, and for some borrowers a principal reduction or a housepayment cushion to get them back on their feet.
A portion of the funds will be used to purchase and rehabilitate foreclosed homes,with the homes then resold to qualified borrowers. These rehabilitated homes willimprove neighborhood stability through owner-occupied homeownership andremove the blight associated with vacant, unkempt houses. Funds realized fromhome sales will revolve back into the program, assisting others facing foreclosureand the purchase and rehabilitation of additional foreclosed homes.
D. Describe how your project meets the criteria set forth in sections I and III above,including estimated start and completion dates. Supporting information andexhibits may be included here. Please try to make your submission as concise aspossible.The partnership with First Federal and Sound Community banks will allow us tostop preventable foreclosures of their borrowers located in Clallam and Jeffersoncounties. Neither lenders are part of the larger mortgage settlement; however, thebanks and their clients are searching for a solution to their foreclosure problems.Both banks will offer loan restructuring tailored to the client's needs with theSHARE program funds covering costs due from the borrower. The fund deliverywill begin approximately 4 weeks after contract signing and continue for another12-16 weeks based on the lender and borrower deal structuring requirements.The acquisition-rehab component will reduce the blight foreclosed homes createin a neighborhood; thereby increasing stability, curb appeal, and improved valuethat a maintained, occupied home provides. Estimated time from purchase toresale will be approximately 6-8 months, depending on the homes' condition.The client targeted for purchasing a rehabilitated home will be a low to moderateincome household that qualifies for a mortgage under a USDA RD program.While this client can be difficult to serve due to their lack of financial resources,the USDA RD mortgage provides 100% financing with no down paymentrequirement. The client will receive our assistance during the mortgageapplication process all the way through closing to reduce the risk of unfair ordeceptive lending practices.Home rehabilitation will be carried out by local residents/firms in the communityproviding employment opportunities with fair and competitive wages.
E. Describe the demographics of the consumers you serve. Please providesupporting data or statistics.The stop foreclosure component will be targeted to owner-occupied single familyhomes located in Clallam and Jefferson counties with mortgages held by FirstFederal and Sound Community Bank . The banks will submit clients they havebeen working with who are currently in arrears or in foreclosure. The bank will beoffering a restructured loan to meet the clients circumstance and with theprogram's cash contribution the household can be saved from foreclosure. Thecash contribution will be structured as a 0% interest forgivable loan with a 10%declining balance over a 10 year period. Any funds that may be recaptured will berevolved back into the program to serve other distressed loans.The acquisition component will select foreclosed homes located in either county
30-005
APPLICATION FOR FUNDS
— 4 —(Version Date: 5/18/2012)
that after rehabilitation will appraise for mortgage loan purposes and not exceedthe USDA RD area loan limits of $213,345 (Clallam) or $221,562 (Jefferson).The targeted purchaser will be households eligible under the USDA RD loanprograms, providing qualified applicants with access to 100%, no-down paymentfinancing. The maximum household income limits in Clallam and Jeffersoncounties for persons accessing the USDA RD Guaranteed loan product is $73,600for a family of four. The median income in Clallam and Jefferson counties per the2010 Census is $44,398 and $46,048, respectively, providing a sufficient base ofhouseholds that are within the income guidelines of the program criteria.
F. Describe the geographic scope of your project.The clients eligible to be served will be residents of Clallam and Jeffersoncounties.
G. Identify the total number of consumers you expect to serve during the life of thisgrant.The stop foreclosure component is expected to serve up to 65 households.
The acquisition-rehab program will begin with 2 homes. The estimated time topurchase, rehabilitate and resell a home is 6 to 8 months. There appears to besufficient homes available as currently 45 REOs are on the Clallam and JeffersonMLS with additional units in the pipeline.
Home sale funds will be revolved back into the program to fund additional directforeclosure assistance and to purchase, rehabilitation and resell additionalforeclosed homes.
H. If this is not a new project, describe what changes are being made to an existingproject.This is a new project for the Peninsula Housing Authority and the two counties.
I. Describe how net benefit or positive outcomes can be measured at the end of theproject.The majority (60%) of the identified borrowers are saved from foreclosure and theloss of their homes with a restructured loan suited to their needs andcircumstances.
Foreclosed single family homes that are purchased, rehabilitated and throughresale become owner-occupied will provide housing stability for the new ownersand reduce neighborhood blight created by vacant and untended houses.
The majority of the rehabilitation work will be accomplished by housing authorityon-call employees, receiving agency scale wages and providing them employmentopportunities in the communities in which they live. Our on-call program offerswork and training opportunities for residents living in housing authority
30-006
APPLICATION FOR FUNDS
— 5 —(Version Date: 5/18/2012)
properties.
J. Have you applied for an equivalent grant in the past, and if so, to which entity andwhen?No.
K. If you intend to collaborate with other organizations, please provide a letter ofsupport from that organization.See attached letters from First Federal and Sound Bank
L. Please provide an organization chart for your organization.Attached
M. Please provide three references familiar with organization’s activities and theircontact information.Janet Masella, Housing Trust Fund Associate Managing DirectorWA State Department of Commerce360-725-4134 [email protected]
William R. Fleck (Rod), City Attorney/PlannerCity of Forks360-374-5412 ext 245 [email protected]
Kathy Wahto, Executive DirectorSerenity House of Clallam County360-452-7954 [email protected]
30-007
APPLICATION FOR FUNDS
— 6 —(Version Date: 5/18/2012)
V. PROJECT BUDGET
As noted previously, this grant must be used to provide additional services and not merelyreplace existing services or supplant existing funding. No current salaries or benefits may befunded using grants provided by the AGO unless expressly and explicitly granted, in advanceand in writing, by the Committee. The Committee reserves the right to request a more detailedbudget prior to selection.
A. Total Project amount:
Salaries: $48,000.00Goods and Services (identify): $1,608,100.00
Administrative Overhead $89,000.00Advertising or Outreach $4,900.00
Travel: $0.00Total: $1,750,000.00
B. What percent of your total project budget does this funding request represent?100%
Salaries: 3 member team for housing rehabilitation. $3000/week for 8weeks=$24,000x2Goods and Services: Direct foreclosure assistance: $1,324,100
Foreclosed home purchase - $115,000 x 2Rehab material - $22,500/home x 2Specialized trades - electricians - $4500/home x 2
Administration: Program management - oversight of program, direct coordinationwith lenders, acquisition and rehabilitation of foreclosed properties; Financialmanagement and services (payables/receivables)- $89,000Advertising and Outreach: marketing, client outreach and loan assistance in theresale program - $4,950
C. If the project will be funded in part from other sources, identify those sources andthe funding amounts.There will not be other funding sources for the program. However, stopping theforeclosure process will provide the borrowers with restructured loans to savetheir home equity for a value approaching $10,100,000.
30-008
APPLICATION FOR FUNDS
— 7 —(Version Date: 5/18/2012)
VI. PROJECT ADMINISTRATION
A. Identify within your organization who will be directly responsible for thefollowing project components: (a) administration, (b) fiscal, (c) service delivery.Attach a current resume for the agency director, and the lead project staff person,and a current agency organizational chart.(a) Administration - Kay Kassinger(b) Fiscal - Annette Dotlich, Agency Comptroller and Finance Department staff(c) Service Delivery - Kay Kassinger
Resumes and organizational chart attached
B. Describe what steps your organization will take to ensure that the project willserve its intended purposes and be completed on time.The partner banks have determined clients that can benefit from the program.Both have been advised and agree that immediately upon award of funds they willbegin the process to submit to the PHA the needed documentation to moveforward for direct foreclosure assistance. Documentation will be current clientpayment status, certification of pre-foreclosure or foreclosure status, writtenlender and borrower agreement to the proposed restructuring and a detailedaccounting of borrower funds needed to close the transaction. The averageamount of time for each loan restructuring will depend on each borrowers'circumstance but the SHARE Program Manager will ensure all participants aremoving forward in a timely manner.
The acquisition and rehabilitation program will be operated by the SHAREprogram manager according to PHA agency policies and procedures whichensures compliance with the stated purpose. This program component will have aseparate time line to allow for the rehabilitation process.
C. Describe how you plan to measure and evaluate the success of your project andinclude samples of evaluation tools if available.65 homeowners in Clallam and Jefferson counties will be offered a restructuredmortgage designed to meet their circumstances and needs and the threat offoreclosure will be removed. The SHARE program goal is that a minimum of60% of the homeowners will be successful and stay in their homes.
Neighborhoods will have the blight of a foreclosed home removed because wepurchased, rehabilitated and resold a foreclosed property to qualified homeowners. Not only will this assist in stabilizing the neighborhoods but also providefunds for the future of the SHARE program.
30-009
APPLICATION FOR FUNDS
— 8 —(Version Date: 5/18/2012)
VII. CERTIFICATION
I certify that I have the authority to submit this proposal, and that the information in this proposalis true and accurate. If my organization is faith-based, I understand that federal and state lawprohibit the use of public funds for religious worship, exercise, instruction or support of anyreligious establishment.http://www.acf.hhs.gov/programs/ccb/law/state_faith_based.htmhttp://www.leg.wa.gov/LawsAndAgencyRules/constitution.htm
I understand that my organization will not receive reimbursement for any costs incurred inpreparing this proposal. If awarded funding, I understand that our proposal will be incorporatedinto the final contract.
Printed Name and Title: Pamela J. Tietz, Executive DirectorSignature (by entering name here,form is electronically signed):
x Josh x Vern x Cherilyn x Bob x Gregg OTHER: Mandyx Sonya x Angela x Brenda x Tiffany x Christy Jackiex Jeff x Minna x Kari PT x Margaret PT x Melinda Sherrix Dave S x Julie PT x Lisa Margaret PTx Al x Melanie x Peggy Kari PTx Dave W Julie PT
Maint. Laborer/Repair.
Maint. Custodian Sr. Bldg.
Acct. Supervisor
Bookkeeper
Self- Help Bkpr . PT
Maint.Mechanic
Maint.Mechanic
(Maint.Mechanic)
Maint. Laborer/Repair.
Bookkeeper
Forks Properties
Peninsula Apts.
Property Manager
Property Manager PT
Housing Assistant PT
TBRA ~ FSS
(PT) Comm. ServiceCoordinator
Sunbelt - Lee Plaza
Counselor
Group Wkr./ LoanPackager
Housing Counseling
Coordinator
Custodian PT
Property Manager
Housing Asst. PT
Senior (Pub. Housing)
C
K
FSS Cordinator
FSS Case Manager
x Dave W Julie PT
x Lori
HACC Organizational Chart 7/2/2012
30-015
30-016
30-017
30-018
30-019
30-020
30-021
30-022
30-023
30-024
USDA, Rural Development is an Equal Opportunity Lender, Provider and Employer. UL 5/6/09Complaints of discrimination should be sent to: Attachment B, page 1 of 1USDA, Director of Civil Rights, Washington D.C. 20250-9410
Flexible Underwriting –consideration given to compensatingfactors including acceptable creditscores, job stability and low or nopayment shock.
Properties must be located ineligible rural areas (generally townsof 20,000 or less). For maps or tocheck a specific property, visit theeligibility website shown below.
Simplified two-tier income limits(below).
Loan to Value (LTV) Ratio up to102% when the guarantee fee isfinanced in the loan.
Loan can include closing costs andrepairs with acceptable LTV Ratios.
Rather than monthly mortgageinsurance premiums, a one time 2%Guarantee Fee is paid at closing.
Applicant(s) need not be first timehome buyers.
Lender processes application usinglender’s forms. Typically, RuralDevelopment requires only oneadditional form (1980-21) signed bylender/applicant(s) in loan package.
Maximum loan limits are determinedby applicant’s repayment ability andLTV Ratios.
