Florida Housing Coalition SHIP Program Info and Updates

Foreclosure Prevention work for SHIP Offices

2011-01-05T09:14:00.000-08:00

Since SHIP has not received funding in the 10/11 fiscal year, some SHIP staff are looking for additional work related to their affordable housing mission. The Hardest Hit program may be a program for them to participate in.

The first phase of the Hardest Hit program’s statewide roll-out will begin on Wednesday, February 23^rd.

A webinar about this U.S. Treasury-funded foreclosure prevention program is scheduled for January 6, 2011 at 2:00 pm. This orientation is offered exclusively to city and county SHIP staff, as they consider if they are eligible and interested in participating in Hardest Hit’s local-level implementation. The list of local responsibilities and the fee schedule will be explained, as the Florida Housing Coalition facilitates this webinar with participation from Florida Housing Finance Corporation’s Hardest Hit Fund staff.

REGISTRATION WEBINAR

Space is limited so register today. This webinar will be hosted by GoToWebinar and registration is completed directly on their website. To register, click this link:

https://www2.gotomeeting.com/register/147313562

Provide your name, email address and organization. GoToWebinar will provide you with a unique sign-in weblink to join the training. In a separate email on the day of the event, the Florida Housing Coalition will provide detailed instructions for logging on to the Webinar.

Even if you miss this webinar, contact the Florida Housing Coalition to let how you can participate in Hardest Hit.

SHIP LHAP Resources

2010-03-17T09:50:00.001-07:00

The Florida Housing Coalition offers a new resource to assist SHIP staff. The Coalition’s website now contains a video summary of recent changes to the SHIP Program resulting from Senate Bill 360. Several changes have an impact on your Local Housing Assistance Plan (LHAP). This resource is especially timely considering that almost half of all SHIP jurisdictions are currently updating their LHAPs for a May 2nd, 2010 deadline. Ultimately, each jurisdiction must update its LHAP to some extent in response to these S.B. 360 topics.

There are four main topics to review. Each contains a video from the Coalition’s February 2010 workshop is accompanied by relevant handouts or powerpoint slides.
An Introductory Video about Senate Bill 360 and the new SHIP requirements is available here:
http://vimeo.com/10060536

See instructions below if you have difficulty viewing videos.

Green and Innovative Design
Your LHAP must now describe how one or more strategies address green building principles, innovative design, storm-resistant construction, or other elements that reduce long-term costs relating to maintenance, utilities, or insurance.

VIDEO: http://vimeo.com/10060850
POWER POINT
http://flhousing.org/sites/default/files/Green%20in%20LHAP.ppt
HANDOUT:
http://flhousing.org/sites/default/files/Green Aff Housing Example of FL Green Bldg CERT.pdf
This handout is an example of a home built with affordable housing subsidy that includes features that qualify it for a green housing certification from the Florida Green Building Coalition.
HANDOUT #2:
http://flhousing.org/sites/default/files/HUD%20Multi-Family%20WAP.pdf
This handout supplements the multifamily housing guidance provided in the video. It is a power power presentation about multifamily weatherization performed by Weatherization Assistance Program (WAP) staff in other states.

Special Housing Needs
Your LHAP must also now describe how one or more strategies make affordable residential units available to eligible persons with special housing needs, like homeless people, the elderly, migrant farmworkers, and persons with disabilities.

VIDEO: http://vimeo.com/10086141
POWER POINT:
http://flhousing.org/sites/default/files/Special%20Needs%20in%20LHAP.ppt
HANDOUT: http://flhousing.org/sites/default/files/Youth%20Leaving%20Foster%20Care%20CONTACTS%20Dec09.doc
While it is not an absolute requirement, the Legislature specifically encourages each SHIP jurisdiction to offer housing assistance to one specific special needs population: young adults leaving the foster care system. Contacting your local community-based care agencies providing foster services is often the first step to arranging for housing services for this at-risk population. This handout is a list of contact agencies.

Manufactured Homes
The SHIP definition of “eligible housing” now includes “manufactured housing constructed after June 1994 … for home ownership or rental” although no more than 20 percent of a jurisdiction’s funds may be used for manufactured housing. Each jurisdiction should consider whether or not to provide rehabilitation or purchase assistance for manufactured homes. Any decision on this topic will require updates to your LHAP.

VIDEO: http://vimeo.com/10086781
HANDOUT: http://flhousing.org/sites/default/files/Manufactured%20H%20items%20Combined.pdf
This handout is a sample lien and form to be used when securing SHIP assistance to a manufactured home that is personal property. Background information and guidance is included.

Preservation and Additional Topics
The Legislature encourages each SHIP jurisdiction to develop an LHAP strategy for the preservation of assisted rental housing.

VIDEO: http://vimeo.com/10086550
POWER POINT:
http://flhousing.org/sites/default/files/Preservation%20in%20LHAP.ppt
HANDOUT
http://flhousing.org/sites/default/files/Rental%20Rehab%20strategy.pdf This is a sample strategy for acquisition and rehabilitation of rental housing. Workshop participants reviewed and discussed what they liked about it and what they would improve upon.

VIDEO TroubleshootingTo view these videos, your computer must have Adobe Flash Player, which is available for free at http://get.adobe.com/flashplayer/. Even with this software, in order to initially view a video you may have to press the “full screen view” symbol, which is the symbol 4 outward pointing arrows located on the right side of the control box at the bottom of the video.

Rehab Resource Available

2010-03-09T12:50:00.000-08:00

The Coalition’s November workshop “Issues and Challenges of Owner Occupied Rehabilitation” highlighted Dr. Tom Taylor as a guest instructor. He applied his expertise in urban planning and mediation, facilitation and other collaborative processes to the example of working with rehabilitation contractors. Dr. Taylor provided a tool that may support your jurisdiction’s rehabilitation program. It is a contract and set of guidelines to assist owners, contractors and SHIP staff in coordinating their efforts and agreeing to a set of goals. The document is available on the Coalition’s website at:
flhousing.org/sites/default/files/Rehab Project Partnership Agreement.pdf

FHOP TRACKING SPREADSHEET

2010-03-09T12:38:00.000-08:00

The Florida Housing Coalition has updated its SHIP spreadsheet to assist you with tracking FHOP funds. TRAKFHOP is available on the Coalition’s website at this link:

www.flhousing.org/sites/default/files/TRAKFHOP May 2010.xls

TRAKFHOP closely resembles the SHIP tracking spreadsheet, with a summary page and Forms 1, 2 and 3. Throughout the spreadsheet, however, color coded cells indicate where FHOP-specific data is included:
• Most notably, the bottom half of the Summary Page now includes a blue box reporting the amount of FHOP expended funds per income category, including 121-140% AMI and ‘Above 140%’.
• Form 1 contains new columns to track FHOP buyers above the Moderate category and to track the date FHOP is repaid. It also includes a column for reporting the household’s income, as reported on the tax return.
• The “Date of Purchase” has been added alongside ‘Sales Price or Value’ on Form 3.
• Finally, the revenue section of the Summary page distinguishes between FHOP repayments and other types of Program Income.

TRAKFHOP has also been updated to reflect a SHIP change from Senate Bill 360 permitting a jurisdiction to adopt strategies that assist households between 121-140% of the area median income (AMI). The ability to separately track these households has been added for the first three strategies on TRAKFHOP. If a jurisdiction opts to assist households at 121-140% of AMI, these recipients will be considered part of the moderate income category. For this reason, the Summary Page counts the units and assistance expended on households at 121-140% AMI alongside all other Moderate data in columns M and N.

To avoid accidental deletion of formulas, TRAKFHOP is protected. The password to unprotect the spreadsheet remains the same: the word ship in lower case letters. If you have questions about the tracking sheet or have discovered an overlooked formula error, contact Michael Chaney at chaney@flhousing.org.

Expanded Coalition Website Resource: More SHIP Clips

2010-02-19T11:19:00.001-08:00

The Florida Housing Coalition has updated the SHIP Clips that are available for review on its website. “SHIP Clips” is a regular column in the Coalition’s quarterly journal, Housing News Network. The Coalition’s website, www.flhousing.org, now includes the SHIP Clips content from the most recent several years in the “Programs” section. With answers on SHIP topics about income qualification, eligible use, homebuyer strategies and more, the SHIP Clips content on the website has now more than doubled. You may also review this content—over 60 pages in all—by visiting www.shipfaq.blogspot.com

ANNUAL REPORT Update: Don’t Forget Certification Forms

2009-09-08T08:11:00.000-07:00

Annual report certification forms are crucial, and no annual report is complete without them. There are two certification forms, and both may be downloaded from the ‘References’ tab, the rightmost tab on the web annual report. Since the certification forms must be signed by your chief elected official, you must mail them to Florida Housing to supplement your web-based annual reports.

The first certification form is very straight forward. It certifies the accuracy of the annual report. The second certification form addresses the implementation of regulatory reform activities. This form is one main method that Florida Housing uses to document a jurisdiction’s compliance with the requirement to implement a minimum of two “incentive strategies”.

Section 67-37.019 (5) of the SHIP Rule outlines the incentive strategy requirements for all SHIP jurisdictions:
The local government staff or entity with administrative authority for a local housing assistance plan shall provide documented evidence to the Corporation or its designated monitoring agent, that:
(a) Permits, as defined in Sections 163.3164(7) and (8), F.S., for affordable housing projects are expedited to a greater degree than other projects; and
(b) There is an ongoing process for review of local policies, ordinances, regulations, and plan provisions that increase the cost of housing prior to their adoption.

These two incentive strategies are often referred to as (a) Expedited Permitting and (b) Ongoing Review. Sections 1 and 2 of the regulatory reform certification are statements to evidence that the jurisdiction has implemented these two incentive strategies.

Section 3 asks for details resulting from your jurisdiction’s ongoing review process. You must report the estimated per unit cost increases for housing construction that have resulted from the creation of any new policies, ordinances, regulations, fees or plans during the most recently completed state fiscal year. In order to complete this form with accurate information, talk with the group or individual in your jurisdiction that performs the “Ongoing Review” responsibility. Ask them about their review process during the 12 months of this last fiscal year. If there have been no new policies to increase costs, enter $0.

Section 4 is very similar to Section 3. Provide the per unit estimated cost increases for rehabilitation activities that have resulted from new local policies, ordinances, regulations and more that were considered during the state fiscal year.

How should your jurisdiction go about estimating how much a particular policy will increase the cost of housing? The SHIP Statute and Rule provide no guidance or method by which a local jurisdiction must determine the cost increase. Such estimates are a local determination, and the jurisdiction should retain back up material to justify the dollar amounts reported on this certification form.

THE DEADLINE IS APPROACHING
Every jurisdiction must submit their reports by next Tuesday, September 15th. The Coalition is available to help you ‘cross the finish line’ and submit your annual reports. This year, the Coalition is available on Tuesdays and Thursdays to provide this assistance through its technical assistance line: 800 677-4548. In addition, a full and updated collection of frequently asked questions about annual reports is available at http://faqannualreports.blogspot.com/.

ANNUAL REPORT Update: Recent Change Affects Form 4

2009-09-02T10:14:00.001-07:00

Check the ‘Review’ tab of each of your three annual reports. Do they show an error involving ‘Expended Funds’ reported on Form 4? If so, this may be the result of an update Florida Housing has made to the web annual report.

For each SHIP distribution, you must report details about all program funds that have been expended, including the name and address of each assisted household. The strategy that was used to provide assistance is listed alongside the name of each recipient. Florida Housing has now programmed the web system to total up the expended funds for each strategy. Now, a “Summary by Strategy” total appears at the end of the list of expended funds you have added to Form 4.

There’s a good reason for the change; it allows Florida Housing to review the amount expended per strategy and compare this with what is reported on each strategy line of Form 1. If the expended fund figures do not match, this new improvement may make it easier to identify specifically where the error occurs. For example, consider a jurisdiction that has expended funds on three strategies. The ‘Summary by Strategy’ totals show that the funds expended on Strategies A and B exactly match the figures on the top of Form 1. The total expended for Strategy C, conversely, does not match Form 1, so it is the source of the error. Correcting this report will go quickly since one is able to focus attention on only a portion of the data provided.

A Related Question:
On Form 4, I added an amount of expended funds per strategy that exactly matches the figures reported on Form 1. Yet the Review Tab still shows an error. Specifically, it indicates:
“There are no "Expended Funds" records for the "Homebuyer Assistance" strategy listed under the Distributed Funds' "Home Ownership" section on Form 1.”
Please provide guidance.

Answer:
The error in this case is caused by the fact that this jurisdiction labeled a strategy “Homebuyer Assistance” on Form 1, but called it “Purchase Assistance” next to the name of each buyer listed on Form 4. In order for Florida Housing’s new programming to work properly, the name of each strategy must be identical on Forms 1 and 4. Pay attention to capitalization, since this also makes a difference. In this case, the jurisdiction decided to change the strategy name on Form 1 to “Purchase Assistance” and the error message disappeared.

THE DEADLINE IS APPROACHING
Every jurisdiction must submit their reports by September 15th. The Coalition is available to help you ‘cross the finish line’ and submit your annual reports. This year, the Coalition is available on Tuesdays and Thursdays to provide this assistance through its technical assistance line: 800 677-4548. In addition, a full and updated collection of frequently asked questions about annual reports is available at http://faqannualreports.blogspot.com/.

ANNUAL REPORT Update: Achieving Set-Aside Compliance

2009-08-25T05:40:00.000-07:00

Among the most fundamental requirements of the SHIP program, funds must be expended in compliance with the Income, Homeownership and Construction/Rehab Set-Asides. Florida Housing has historically noticed that difficulties achieving set-aside compliance are among the most common of annual report problems.

WHAT GETS COUNTED?
The SHIP set-aside percentage calculations are not based only on the annual distribution. You must include other revenue sources when calculating set-aside compliance. Compliance with the Homeownership set-aside (65 percent of funds) and the Construction/Rehab set-aside (75 percent of funds) is based on the sum total of the Distribution plus Recaptured Funds. Compliance with the Income Set-aside, on the other hand, is calculated based on the total of all sources of SHIP revenue, including carry forward funds and program income.

Keep in mind the 2009 change to the definition of Recaptured Funds. Starting with the annual reports this year, there will likely be much more program income than recaptured funds reported. Now narrowly defined, recaptured funds are only a repayment that a SHIP jurisdiction receives when it provides SHIP funding for a housing project, but this funding is ultimately not used to assist eligible households.

RE-ASSIGN EXPENSES AS NEEDED
What happens if you create your 06/07 annual report, only to notice for the first time that you are out of compliance with one or more of the set-asides? What if, for example, you have fully expended your 06/07 funds but have only dedicated 70 percent—rather than the minimum 75 percent required—to the construction/rehab set-aside? The most straight forward solution may be to re-assign assistance expenses between SHIP distributions.

In the case stated above, all 06/07 funds have been expended. It is very likely that a significant amount of the jurisdiction’s 07/08 distribution may also be expended. Identify one or two households assisted with 07/08 funds that comply with the construction/rehab set-aside. Re-assign these expenses to the spreadsheet tracking 06/07 funds. Similarly, re-assign one or two 06/07 cases of set-aside non-compliant assistance to the 07/08 spreadsheet. Determine if this exchange has resulted in enough 06/07 expenses that comply with the set-aside, and re-assign additional 07/08 expenses as needed to achieve set-aside compliance.

The exercise of re-assigning expenses from one SHIP distribution to another is not uncommon. It may also be used to achieve compliance with an expenditure or encumbrance deadline. Whenever an expense is re-assigned to a different distribution, care should be taken to clearly indicate ‘from where’ and ‘to where’ an expense is being re-assigned. In this way, one may still fully reconcile SHIP tracking spreadsheets with the jurisdiction’s general ledger. The example above is a small and simple case of re-assigning funds. If your case is more complicated, call the Florida Housing Coalition for additional guidance as you work to re-assign funds and cure set-aside noncompliance.

LEARN MORE ABOUT THE SET-ASIDES
There is more to be said about set-aside compliance. Consider reviewing the videos on this topic at the Coalition’s website, http://www.flhousing.org/. On the top pull-down menu for “Local Government and Nonprofit Developer Tools”, select (SHIP) Program Update. These videos are available under the headline “SHIP Annual Report: Training Videos” and are about 7 minutes each.

START YOUR REPORTS NOW
Every jurisdiction must submit their reports by this September 15th and there is no extension available for submitting them after this date. Start now to ensure their timely completion. Many administrators find that these reports require more of their attention than originally expected.

The Coalition fields questions on a myriad of report-related topics. This year, the Coalition is available on Tuesdays and Thursdays to provide this assistance through its technical assistance line: 800 677-4548. In addition, a full and updated collection of frequently asked questions about annual reports is available at http://faqannualreports.blogspot.com/.

ANNUAL REPORT: One Month to the Deadline

2009-08-19T09:44:00.000-07:00

CAN YOU PASS THE TEST?
If you have ever created annual reports before, you know that the report is connected to the SHIP tracking spreadsheet your jurisdiction maintains for each SHIP distribution. When they are fully updated, these spreadsheets contain the data you need to complete the annual reports. But where exactly is the spreadsheet data you need for Annual Report Form 1, for Form 2 and for the rest of the report? The answers are illustrated in the following ‘Cheat Sheets’. The Florida Housing Coalition has created a sample report and sample tracking spreadsheet that show how these two documents match up.

As you assemble the data needed to complete your jurisdiction’s annual reports, the documents “Cheat Sheet Annual Report” and “Cheat Sheet Trak SHIP” may help. “Cheat Sheet Trak SHIP” shows where data required on the reports is located on the SHIP tracking spreadsheet designed by the Florida Housing Coalition. The red letters on this document correspond to the red numbers on “Cheat Sheet Annual Report”.

Can you pass the test? Looking at the two cheat sheets, match the proper letters to the numbers. Check your accuracy using “Cheat Sheet KEY”.

Download these documents from the following links:
· “Cheat Sheet Trak SHIP” http://content.screencast.com/users/FL-Coalition/folders/Default/media/1182cc35-ad91-40d5-b354-6aba168fc128/CHEAT%20SHEET%20SHIP%20Tracking%202009.xls?downloadOnly=true
· “Cheat Sheet Annual Report” http://content.screencast.com/users/FL-Coalition/folders/Default/media/7337b938-b3e5-4ae9-a886-ea010862ad94/CHEAT%20Sheet%20Annual%20Report.pdf?downloadOnly=true
· “Cheat Sheet KEY” http://content.screencast.com/users/FL-Coalition/folders/Default/media/fb7cb38c-76cf-4a28-b025-3996b2a58c47/Cheat%20Sheet%20KEY.doc?downloadOnly=true

DEADLINE EXTENSIONS
As you update your SHIP tracking spreadsheets, you may discover that your jurisdiction has not yet expended all the funds in the 06/07 close out distribution. Since SHIP funds must be expended within three years after they are received, how should you proceed?

First, recognize that it is common to have a small amount of unspent SHIP funds from a close out distribution; this is not a violation of the three year expenditure deadline. Whether the amount is $300 or $3000, this small unencumbered amount is insufficient to fully assist the next recipient for any of your strategies. In such a case, you may simply “carry forward” these remaining dollars. The new Web Report will identify these unencumbered funds as the carry forward amount and will automatically add this amount as the carry forward revenue on the 07/08 annual report.

However, consider the case of a jurisdiction that has tens or hundreds of thousands of 06/07 SHIP dollars left to expend. Perhaps the remaining funds are encumbered for projects that are not yet completed and occupied by eligible households. As soon as you discover that you have missed the expenditure deadline, you should request an expenditure deadline extension from Florida Housing. This request must be done in writing. Direct your correspondence to SHIP staff member Terry Auringer.

Your request should include:
The exact amount of funds still encumbered and/or unencumbered, and the number of months for which an extension is requested.
A brief explanation of why these funds have not been expended within the three year deadline. Was there, for example, a lack of contractors or materials, or is the jurisdiction still working to achieve some set-aside compliance?
Outline your plan to expend funds quickly, along with a timeline and estimate of when the funds will be fully expended. Indicate if changes have been made to SHIP strategies to address the delays. If a strategy has not been working, have you redesigned it, replaced it, or reallocated funds to a strategy known to be successful?

You should notify Florida Housing of your situation even if you anticipate that remaining 06/07 encumbered funds will be expended soon and before September 15th. The fact remains that funds were not expended by the June 30th deadline, so Florida Housing should be notified.

START YOUR REPORTS NOW
A handful of communities may receive extensions for expending their 06/07 funds, but they will still be required to submit a set of annual reports on September 15th. Every jurisdiction must submit their reports by this date, and there is no extension for submitting them after September 15th. Start now to ensure their timely completion. Many administrators find that these reports require more of their attention than originally expected.

The Coalition fields questions on a myriad of report-related topics. This year, the Coalition is available on Tuesdays and Thursdays to provide this assistance through its technical assistance line: 800 677-4548. In addition, a full and updated collection of frequently asked questions about annual reports is available at http://faqannualreports.blogspot.com/.

COUNTDOWN TO THE ANNUAL REPORT

2009-08-11T06:31:00.000-07:00

UPDATED 08/09 DISTRIBUTIONS
The Florida Housing Finance Corporation recently announced one more distribution of funds (4th quarter payment #4) for the 2008-2009 SHIP fiscal year. Since this is the final 08/09 distribution to local governments, Florida Housing has now updated Form 1 of the Web Annual Report to show each jurisdiction’s total 08/09 distribution in the revenue section. Florida Housing has also posted on the SHIP section of their website under ‘SHIP Collections and Disbursements’ a spreadsheet that lists each distribution over the year and each local government’s total.

SAVE AND PRINT A DRAFT
Even before SHIP administrators have completed all three of their reports, they may need to save or print a copy of the data they have entered. Last month, Florida Housing added a feature on the ‘Review’ tab to ‘click here for a printer-friendly (PDF) copy of this annual report’. The upper right corner of each form also contains this feature, in case you only want to print or save the data from one form. The feature requires users to have Adobe Reader version 8 or above on their computer in order to view or save a report PDF. Fortunately, this product is available for download from the Adobe site for free: http://get.adobe.com/reader/. Once all three reports are completed, this feature allows you to save your reports, a necessity in order to make the reports available for public inspection and comment.

CONGRATULATIONS TO THOSE WHO ARE DONE!
While SHIP jurisdictions have historically started working on their annual reports at the beginning of August, this year several communities are already approaching completion of their reports, including :
Dixie County
Flagler County
Hamilton County
Hardee County
Holmes County
Santa Rosa County
Seminole County
Once a jurisdiction completes and submits its annual reports, its chief elected official must review and sign two certification forms (available for download right on the web report) to mail to Florida Housing. As the SHIP Rule notes: “SHIP forms AR/02-1(approving) & the AR/02-1 Regulatory Certification must be used. The original certifications must be mailed to the corporation within three working days of the report being electronically sent.”

START YOUR REPORTS NOW
All reports must be submitted by September 15th, so start now to ensure their timely completion. Many administrators find that these reports require more of their attention than originally expected. Furthermore, the online annual report is a new system and the reporting process may be slower than usual as you become familiar with it.

Each year when the September 15th SHIP Annual Report deadline approaches, the Coalition fields questions on a myriad of report-related topics. This year, the Coalition is available on Tuesdays and Thursdays to provide this assistance through its technical assistance line: 800 677-4548. In addition, a full and updated collection of frequently asked questions about annual reports is available at http://faqannualreports.blogspot.com/.

MORTGAGEE LETTER 2009-15 Using First-Time Homebuyer Tax Credits

2009-06-15T05:35:00.001-07:00

The full text of Mortgagee Letter 2009-15 is below. This is the revised letter that was originally issued on May 11, 2009, then promptly withdrawn. The letter outlines the conditions under which FHA will insure a mortgage when the $8,000 tax credit is monetized. We will publish more information here as it becomes available.

To view the document in word format, click here. All mortgagee letters going back to 1976 are available at the HUD Web site.

May 29, 2009

MORTGAGEE LETTER 2009-15

TO: ALL APPROVED MORTGAGEES

SUBJECT: Using First-Time Homebuyer Tax Credits

The American Recovery and Reinvestment Act of 2009 (Recovery Act) provides for as much as an $8000 tax credit to qualified first-time homebuyers. FHA supports this important initiative to promote homeownership. This mortgagee letter provides:

· Basic information on the first-time homebuyer credit obtained from the Internal Revenue Service (IRS) website. Complete information on how the first time homebuyer tax credit works, including the eligibility requirements for the tax credit, the amount of the tax credit that a first-time homebuyer may be eligible to receive, and how a homebuyer may claim the tax credit is available on the IRS website .

· Guidance on how FHA-approved mortgagees and FHA-approved nonprofit organizations as well as Federal, state, and local government agencies or instrumentalities may assist homebuyers that are eligible for the tax credit.

I. About the First-Time Homebuyer Tax Credit

Please check the IRS website to ensure you have up-to-date information. A brief overview of the tax credit from the IRS website and a copy of IRS Form 5405 (including instructions) are attached for reference.

Pursuant to 31 U.S.C. 3727 and 26 U.S.C. 6402, a refund of the first-time homebuyer credit will be made by the IRS only to the taxpayer, not to a third party. In other words, any refund issued in response to a claim for this credit cannot be assigned by a taxpayer to a third party.

II. FHA Tax Credit Guidance

Secondary Financing

Consistent with existing FHA policy, FHA will permit entities covered by Section 528 of the National Housing Act to use the current authority to offer tax credit advances with second liens in a manner consistent with the requirements in 12 U.S.C. 1709(b)(9). Eligible government agencies and instrumentalities of government are described in handbook HUD-4155.1 5.C3 and 5.C4.

Conditions:

The tax credit advance, when combined with the FHA-insured first mortgage may not result in cash back to the borrower.
The second lien may not exceed the total amount needed for the down payment, closing costs, and prepaid expenses.
Secondary financing may be “soft” (silent) or require a monthly repayment.
If payments are required, they must be included within the qualifying ratios and, when combined with the first mortgage, cannot exceed the borrower’s reasonable ability to pay.
Payments must be deferred for at least 36 months to not be included in the qualifying ratios.
If the tax credit advance loan has a short term for repayment, it must also provide that if the borrower fails to repay by the designated deadline, principal and interest payments begin automatically or the loan converts to a “soft” second.
The secondary financing may not require a balloon payment before ten years.

Purchase of Tax Credit

FHA-approved mortgagees and FHA-approved nonprofit organizations as well as Federal, state, and local governmental agencies and instrumentalities thereof may purchase the tax credit anticipated by the homebuyer.

Conditions:

The proceeds of the sale of the tax credit may not exceed the anticipated tax credit due the homebuyer based on the computations of form IRS 5405;

The borrower must submit a signed certification that the tax credit is not subject to offset due to other indebtedness.
A copy of the borrower’s tax refund and/or the IRS 5405 must be collected and retained in the FHA case binder.
Any costs attendant to the purchase of the tax credit are to be nominal and discounting the anticipated credit to cover the costs and expenses of the transaction must be reasonable and disclosed to the homebuyer. In FHA’s view, fees and costs that total more than 2.5% of the anticipated credit are considered excessive. (Example: $6000 to be refunded, with all fees and costs discounted, borrower should receive not less than $5850.00 for sale of tax credit.)
Pursuant to 12 U.S.C. 1709(b)(9), the homebuyer’s downpayment required for eligibility for FHA insurance may not consist of any funds (including funds derived from a sale of the homebuyer tax credit) provided by the mortgagee, the seller, or any other person or entity that financially benefits from the transaction (or by any third party or entity that is reimbursed, directly or indirectly, by the financially benefiting person or entity). Accordingly, the proceeds of the sale of the tax credit to FHA approved mortgagees, the seller, or any other person or entity that financially benefits from the transaction (or any third party or entity that is reimbursed, directly or indirectly, by the financing benefiting person or entity), may not be used to meet the 3.5% minimum downpayment, but may be used as additional downpayment, buying down of interest rate, or other closing costs.

Due Diligence

FHA expects that entities purchasing tax credit assets will employ appropriate due diligence measures including, but not limited to:

· Require the homebuyer to draft and provide the IRS form 5405 “First-Time Homebuyer Credit.”

· Contact the borrower’s employer and review pay stubs to confirm there are no outstanding garnishments.

· Review the homebuyer’s credit report to ensure there are no unpaid student loans, or other obligations that could be offset against the credit.

· Validate that all of the eligibility requirements for the tax credit are fulfilled

· Review previous tax returns and IRS tax assessment letters, if any, to determine that the borrower does not have unsettled obligations to the IRS

III. Monitoring

In order to track the tax credit monetization activities, FHA will require FHA-approved mortgagees to input into FHA Connection the following data:

Name and EIN of the party who purchased the tax credit,
The amount of the anticipated credit, and
The amount the homebuyer paid for the monetization services.

The lender must also collect and maintain in the FHA case file the documentation that validates all of the tax credit monetization data submitted via FHA Connection.

FHA will monitor the purchase of tax credit transactions closely. Charging of excessive fees or costs in the purchase of the tax credit or increasing other fees or charges in the transaction without FHA approval may result in referral to the Mortgagee Review Board, and particularly with respect to entities that are not FHA-approved mortgagees, referral to the Federal Trade Commission, or referral to the appropriate State Attorney General office, as may be applicable.

If you have any questions regarding this mortgagee letter, please call FHA’s Resource Center at 1-800-CALL-FHA (1-800-225-5342). Persons with hearing or speech impairments may access this number via TDD/TTY by calling 1-877-TDD-2HUD (1-877-833-2483).

Sincerely,

Brian D. Montgomery

Assistant Secretary for Housing-

Federal Housing Commissioner

Homebuyer Education Training

2009-03-02T16:55:00.000-08:00

At the Coalition's Homebuyer Education Workshop in Tampa on February 19th, the staff was joined by presenter Carrie Vitale from the Tampa Bay Community Development Corporation. Carrie shared from her experiences teaching homebuyer education seminars. The following videos are from her presentation:

Become a Better Educator
* Visit other classes
* Build Partnerships
* Keep current on housing guidelines
* Tips about Public Speaking

Tips to Help You E-D-U-C-A-T-E
E- EIGHT is great
D- DON’T advertise it as a class
U- USE unbiased presenters
C- COMPLETE the workshop prior to closing
A- ALL buyers should attend the workshop
T- TAUGHT by a HUD-approved agency
E- ENTERTAIN, including an example of a Role Play

Sadowski Workforce Housing Coalition Asks the Governor to Veto $190 million Sweep from the Housing Trust Funds

2009-01-18T14:39:00.000-08:00

The Sadowski Workforce Housing Coalition urged Governor Charlie Crist to veto Section 47 of Senate Bill 2-A, the section that sweeps $190 million from the Housing Trust Funds—money that is desperately needed to jump start Florida’s economy and house our working families. For the complete text of the letter sent to the Governor click on the image below.

Housing Strategy Check-Up

2008-11-07T05:34:00.000-08:00

If your Local Housing Assistance Plan has had the same strategies for some time, give your Plan a Check-Up. Consider the three topic areas below as you review your current strategies. These subjects were discussed at the Coalition's "SHIP Program Administration" workshop in Miami on November 5, 2008. The powerpoint slides for this section of the workshop are available at this link: www.flhousing.org/uploadedcontentfiles/SHIPstrategy.ppt

Universal Design for New Construction
*Design Principles to incorporate into SHIP Strategies
*Examples of Accessible Features

Energy Efficiency
*Energy Education for SHIP recipients
*Features for New Construction

Combining Strategies
*How many strategies do other communities include in their plans?
*When are there too many strategies?

aBonus Clip: Universal Design Song

Fannie Mae ditching declining-market policy

2008-07-10T07:01:00.000-07:00

Fannie Mae is scrapping a "declining markets" policy that required loan underwriters to boost minimum down-payment requirements by 5 percent in areas where home prices are falling or difficult to determine.
Beginning in June, Fannie Mae will instead require 3 percent down payments for conventional, conforming mortgages processed through its Desktop Underwriter automated underwriting system, and 5 percent minimum down payments for loans processed manually. Larger down payments may be required depending on occupancy, property and transaction types.
The new single national down-payment policy will retire a controversial declining-market policy announced in December. The policy, implemented Jan. 15, boosted the minimum down payment required by 5 percent when Desktop Underwriter flagged a property as being located in an area of declining home prices or where it was difficult to assess home values. The policy also applied if an appraiser determined a property was in a declining market.
In an April 11 letter, the National Association of Realtors complained to Fannie Mae that "entire metropolitan statistical areas (MSAs) have been tagged as declining markets regardless of the actual values in the local neighborhoods, which further discourages potential buyers from entering the market."
The policy kept some would-be home buyers from taking action because they could not come up with the funds to make the increased down payment. Others avoided buying because they were afraid to do so if prices were still declining.
"In either case, the impact of the policy becomes a self-fulfilling prophecy that creates declining markets that did not exist before and intensifies the decline for markets that are declining and delays their recovery," NAR President Richard Gaylord said in a letter to Fannie Mae Chief Executive Officer Daniel Mudd.
Fannie Mae says it's able to move away from the declining markets policy because the latest version of Desktop Underwriter -- Version 7.0 -- will limit risk layering and assess each loan more precisely.
"At the same time, we believe that equity matters, especially in this market," Marianne Sullivan, Fannie Mae's senior vice president of single-family credit policy and risk management, said in a statement. "Down payments are a critical success factor in home ownership -- and responsible lending is good business."
Private mortgage insurers who insure most loans purchased by Fannie Mae and Freddie Mac in cases where borrowers put down less than 20 percent have their own requirements, including 3 percent minimums and stricter standards in declining markets (see story).
Fannie Mae's new national down-payment policy is part of the company's "Keys to Recovery" initiative announced May 6, which also includes improved pricing for jumbo-conforming mortgages to help borrowers in high-cost areas.
Through the end of the year, Fannie Mae announced this month that it will buy the new jumbo-conforming loans -- up to $729,750 in high-cost areas -- at the same price as loans that meet the conventional conforming loan limit of $417,000.
Congress gave the government-sponsored enterprises the ability to purchase mortgages larger than the conventional conforming loan limit of $417,000 in the hopes of bringing down interest rates on jumbo loans.
But until recently, the "spread" between conventional conforming loans and jumbo loans had remained pronounced -- about 1 percent -- and lawmakers have expressed disappointment about the pricing of jumbo conforming loans.
Although rates on jumbo conforming loans have come down, the House Financial Services Committee will hold a hearing on May 22 to examine the steps taken to implement the new loans and the impact on home buyers and the housing market.
http://www.freddiemac.com/singlefamily/20080529_advisory.html
Update on Elimination of Declining Markets Policy
May 29, 2008 Advisory E-mail Message to Seller/Servicers
On May 16, we announced the elimination of our declining markets policy to provide a simplified way for lenders to determine the maximum allowable financing for loans that we will purchase. In today's special Single-Family Seller/Servicer Guide (Guide) Bulletin [PDF 210K], we are following up on this announcement by providing the detailed requirements for this change.
For mortgages with application dates on or after June 1, 2008, we are eliminating the requirement to reduce the maximum LTV/TLTV/HTLTV ratios when a property is located in a market with declining home values.
For mortgages with application dates on or after June 1, whether manually underwritten or assessed through Loan Prospector®, we will continue to allow maximum financing up to 95 percent LTV for most purchase and no cash-out refinance mortgages secured by 1- to 2-unit primary residences or second homes–in all markets. For low- and moderate-income borrowers and borrowers in underserved areas, we will continue to provide up to 100 percent LTV and 105 percent TLTV financing for 1-unit primary residences through our Home Possible® Mortgages.
To help ensure that borrowers are using purchase transaction Home Possible Mortgages with higher LTV/TLTV ratios to purchase homes they can afford and keep, effective June 1 and as previously announced, we will require homeownership education before the note date when all borrowers are first-time homebuyers. At the same time, we are also ensuring borrowers have an appropriate credit history.
In addition, as a result of our review of our maximum financing requirements, we are making adjustments to maximum financing requirements for certain mortgage products and transaction types to ensure they more appropriately reflect sound lending practices in the current market environment. With today's Bulletin, effective for mortgages with application dates on or after June 1, 2008 we are also:
Announcing that we will no longer purchase mortgages with LTV/TLTV/HTLTV ratios greater than 95 percent, with the exception of: FHA/VA Mortgages, Section 502 GRH Mortgages, Section 184 Native American Mortgages and Home Possible Mortgages with LTV and TLTV ratios greater than 95 percent, subject to all existing requirements for these mortgages. Note that as previously announced, Home Possible Mortgages with an LTV/TLTV ratio greater than 97 percent must have an Indicator Score greater than or equal to 700.
Eliminating the requirement announced in our May 2 Guide Bulletin of a Loan Prospector® Accept Risk Class for purchase and no cash-out refinance mortgages with LTV/TLTV/HTLTV ratios equal to or greater than 95 percent. We established this requirement as a condition for reducing maximum financing to 95 percent for mortgages in declining markets where maximum financing was equal to or greater than 95 percent. This requirement, along with other requirements in our May 2 Bulletin, no longer applies as a result of the elimination of our declining markets policy.
Reducing the maximum LTV/TLTV/HTLTV ratios for:
Cash-out refinance mortgages secured by 1- to 2-unit primary residences or second homes to 85%/80%/85%/90% LTV without and with secondary financing/TLTV/HTLTV (this includes cash-out refinance Initial InterestSM Mortgages).
Purchase and no cash-out refinance mortgages secured by 1- to 2-unit investment properties to 85%/80%/85%/90% LTV without and with secondary financing/TLTV/HTLTV.
Modifying our current Alt 97® Mortgage requirements to reduce the maximum financing to 95 percent LTV/TLTV (for Alt 97 Mortgages with secondary financing, the maximum LTV ratio is reduced to 90 percent).
Adjusting our maximum financing requirements for Home Possible Mortgages and lender-branded affordable mortgages secured by:
2-unit properties, by reducing the maximum LTV ratio to 95 percent, and reducing the maximum TLTV ratio to 100 percent.
3- and 4-unit properties, by maintaining the maximum LTV ratio at 95 percent, and reducing the maximum TLTV ratio to 100 percent.
Revising Guide Exhibit 19, Postsettlement Delivery Fees, to reflect the reduced LTV/TLTV/HTLTV ratios. There are no changes to our delivery fees or fee rates as a result of these changes. However, all applicable current postsettlement delivery fees continue to apply, including the Market Condition delivery fee.
Implementing These Changes
All changes in this Bulletin supersede the maximum financing requirements that previously applied to mortgages secured by properties located in declining markets. This includes the changes we made to LTV/TLTV/HTLTV ratio reduction requirements in our May 2 Bulletin.
There are no changes to our delivery requirements as a result of today's Bulletin.
In addition, please see the Bulletin for more information on:
To cover pipelines for mortgages originated under our declining markets policies in effect before June 1, 2008, these mortgages are still eligible for sale to us provided they met all of our previous requirements and have Freddie Mac Settlement Dates on or before August 31, 2008.
Specific information on how the changes we announced today may impact your Master Agreement.
Information for Loan Prospector Assessments
At this time, we will not update Loan Prospector to reflect our new requirements. For mortgages assessed in Loan Prospector with application dates on and after June 1, 2008, you will need to perform a manual review of the mortgage file to ensure the mortgage meets the requirements announced in today's Bulletin and is eligible for sale to us.

Get More Information
http://seattletimes.nwsource.com/html/realestate/2004435396_harney25.html?syndication=rss

SHIP Annual Reports: Training Videos

2008-04-27T19:02:00.000-07:00

These videos provide a brief introduction to the subjects of the annual reporting and tracking of SHIP funds. They may prove helpful if you are new to working with the SHIP program, or you have recently taken over the responsibilities of SHIP tracking and annual reporting. Review the April 11 Post for additional information and training opportunities about SHIP annual reporting and tracking.

To advance or back-up the video, use your cursor to click on the red dot below the video, hold down and drag it left or right.

A. Introduction to SHIP Annual Reporting and Tracking
*Review of SHIP Timeline Chart
*Encumbrance and Expenditure Deadlines
*General Rule: First In, First Out

B. Set Aside Review
You know that SHIP has allotments—or Set-Asides—for homeownership assistance; for very low and low income assistance; and for new construction and rehabilitation activities. Do you know all the details? Check your knowledge with this review of the Set-Aside requirements.

a Homeownership Set-Aside

a Construction/Rehabilitation Set-Aside

a Income Set-Aside

C. More Details about Tracking and Reporting
Tracking: “It’s the Law”
· Track expenditures “per household”
· Data to collect
· Tracking is a program requirement

“Dance the TRAKSHIP Two Step”
· Tracking is a 2 Step Process
· Update Daily
· Introduction to TRAKSHIP, the SHIP tracking system designed by the Florida Housing Coalition.

Foreclosure Prevention Resources

2008-04-13T05:19:00.000-07:00

During its April 2008 Foreclosure Prevention workshop, the Florida Housing Coalition explored evidence that the “assisted” low income homebuyers receiving downpayment and closing cost subsidy have, for the most part, remained unaffected by the recent wave of foreclosures. The following brief audio and video recordings highlight some key topics from the workshop. A powerpoint and handouts that accompany the recordings are available by emailing chaney@flhousing.org.

Click on the links below (it takes a minute to load) to listen to:

1. A review of the policies and assistance provided to Assisted Buyers to help them avoid foreclosure even before purchase. Education and counseling, lenders guidelines, affordability criteria, and subordination policies are all discussed. Click HERE: http://cdn4.libsyn.com/chaneyhousing/The_Assisted_Homebuyer_AVOIDING_Foreclosure.mp3

2. A summary of key elements of a SHIP Foreclosure Prevention strategy to help those currently facing foreclosure. This recording also includes a review of a current bill in the 2008 Florida Legislative Session that could further help SHIP jurisdictions. Click HERE: http://cdn2.libsyn.com/chaneyhousing/How_SHIP_helps_those_facing_Foreclosure.mp3

3. A discussion of how current and future Assisted Buyers are affected by the Credit Crunch that has resulted from the foreclosure crisis. Click HERE: http://cdn2.libsyn.com/chaneyhousing/The_Future_Assisted_Buyer.mp3

MORE TRAINING AVAILABLE
The Florida Housing Coalition plans to offer two relevant trainings in the second half of 2008. Sign up for the waiting list for either or both events by sending an email request to Pam Davis at pamiam@flhousing.org.

1. First, the one day Foreclosure Prevention workshop will be offered again.

2. The Coalition also teaches a 5 Day class to become a certified Housing Counselor. This course was developed by Neighborworks America and is entitled “Housing Counseling Certification: Principles, Practices and Techniques”. It offers the skills, procedures and content needed to help counselors create new homeowners. Once a counselor completes this course, passes the final exam, and attends a separate class on Foreclosure Prevention, he or she will be awarded a full certification in Housing Counseling from Neighborworks America and the Florida Housing Coalition. There is a $875 registration fee to attend.

THE CAUSES OF THE CRISIS
The beginning of the workshop was filmed. The following video shorts review some factors that have caused the current foreclosure crisis.

Part 1: Buyers and Lenient Lenders

Part 2: Subprime Loans

Part 3: Regulators, Investors and more

Updated SHIP Tracking Spreadsheet

2008-04-11T13:52:00.000-07:00

The Coalition announces its release of updated software to assist local jurisdictions with SHIP program changes.

The newly revised spreadsheet is available at this link: www.flhousing.org/pdf/TrackShip.xls

BACKGROUND:
At the beginning of 2008, the Florida Housing Finance Corporation changed significant portions of the SHIP Rule, and some changes affect the SHIP Annual Report.

EXAMPLE #1: Future reports must detail sources of Program Income and Recaptured Funds, including foreclosure, refinance and sale of property.

EXAMPLE #2: SHIP administrators must report the amounts of administrative expenses spent by the local government and by sub-recipient agencies. The Annual Report must now include a list of sub-recipient organizations and consultants that help the jurisdiction implement its SHIP program.

RECORDING ABOUT TRACKING:
The topic of tracking and reporting changes was discussed in February during four online trainings offered by the Florida Housing Coalition. The Coalition is now offering an audio recording—which is called a Podcast when it is played on an IPOD or other MP3 player—of this Webinar. For those who were unable to participate in these brief, one-time-only trainings in February, 2008, the Coalition offers this podcast, along with the corresponding powerpoint presentation for each.

Webinar “Annual Report Changes”

1. First download the powerpoint to your computer
2. Next, turn up the volume on your computer and click www.flhousing.org/uploadedcontentfiles/PODCASTMP3shiprule.mp3
3. Finally, open up the powerpoint to follow along with the training.

ONLINE TRAINING about TRACKING and REPORTING:
The Coalition also regularly offers a more in-depth workshop(5 hours in 3 sessions) online. If you are interested, email Pam Davis pamiam@flhousing.org and ask to be added to the waiting list for the "Annual Report online Workshop".

DETAILS ABOUT NEW TRACKING SPREADSHEET
In response to current SHIP Rule changes, the Coalition has updated the SHIP tracking spreadsheet it created to help SHIP administrators in the early years of the program. The Coalition’s tracking system—an Excel spreadsheet called TRAKSHIP—has been updated to track funding devoted to Extremely Low Income (ELI) households. The spreadsheet reviews the activities for ELI and Very Low Income households together to track compliance with the Income Set-aside. The new version of TRAKSHIP also includes more rows to track all the households assisted per strategy. This accommodates jurisdictions that provide more than 50 recipients with assistance from a single strategy. The updated software offers a new method useful when initially setting up a spreadsheet for a new SHIP distribution.

Remember, a SHIP jurisdiction is not required to use the exact tracking spreadsheet designed by the Coalition. Some may wish to only review the Coalition’s version as they work to create a customized tracking system for their local programs. The only requirement—as outlined in Section 67-53.005 of Florida Housing’s Compliance Rule—is that “the staff or entity with administrative authority for a local housing assistance plan must develop a tracking system to ensure that the local housing distribution funds disbursed from the local housing assistance trust fund are at all times expended in accordance with the set-aside requirements in Rule 67-37.007, F.A.C., and time restraints detailed at subsection 67-37.005(6), F.A.C.”.

TIPS: Affordable Housing Advisory Committees

2008-04-11T13:18:00.000-07:00

The SHIP Statute and Rule have recently changed. They now require each SHIP jurisdiction to assemble an Affordable Housing Advisory Committee composed of 11 representatives of several housing stakeholder groups. This committee must create a report on the subject of Land Use "Regulatory Reform" and "Incentive Strategies" to promote the development of affordable housing. Here are some specific requirements related to the advisory committees:

1. The deadline to establish and appoint the board members by resolution or ordinance is June 30, 2008

2. A report is due every three years. The first mandatory report is due December 31, 2008. Naturally, the committee members will have to meet more than once to consider the topic of regulatory reform/incentive strategies before writing a report. The SHIP and Statute do not dictate a specific number of meetings required.

3. These are the SHIP citations that refer to the committee.
SHIP Statute: First part of section 420.9076
SHIP Rule: Section 67-37.010

RESOURCE:
The Coalition offered a web-based training on this topic in February. The Coalition is now offering an audio recording—which is called a Podcast when it is played on an IPOD or other MP3 player—of this online Webinar. For those who were unable to participate in these brief, one-time-only trainings in February, 2008, the Coalition offers this podcast, along with the corresponding powerpoint presentation for each. Webinar “Affordable Housing Advisory Committee”

1. First download the powerpoint to your computer
2. Next, turn up the volume on your computer and click www.flhousing.org/uploadedcontentfiles/PODCASTAdvisoryComm.mp3
3. Finally, open up the powerpoint to follow along with the training.

Lenders Offer Plan to Head Off Foreclosures

2008-02-12T10:46:00.000-08:00

By MICHAEL M. GRYNBAUM

A group of major mortgage lenders will allow some homeowners facing foreclosure to delay losing their homes for 30 days.

Mortgage Crisis Spreads Past Subprime Loans

2008-02-12T06:40:00.000-08:00

By VIKAS BAJAJ and LOUISE STORY

Even borrowers with strong credit are feeling the pinch as home values fall and payments rise. Several banks are expected to offer assistance to ease the burden on Tuesday.