HUD Heartland News
Volume 10, Issue 2
In this Issue:
Calendar of Events:
Your Door to FHA Homeownership
As a result of severe storms, straight-line winds and flooding in May 2015, President Obama declared the Pine Ridge Indian Reservation a major federal disaster for the Oglala Sioux Tribe (OST). The declaration allows the Federal Emergency Management Agency (FEMA) to provide assistance by replacing a number of damaged or destroyed manufactured homes and repairing a number of stick-built homes to bring them to habitability standards.
Concurrently to replacing and repairing homes, FEMA initiated the National Disaster Recovery Framework (NDRF). The NDRF focuses on the ability of disaster-impacted communities to plan, manage, and implement long-term recovery projects and programs. Part of this process includes the ability of FEMA to bring other federal agencies together to assist with Recovery Support Functions (RSF). The objective of the RSFs is to facilitate the identification, coordination, and delivery of federal assistance needed to supplement recovery resources and efforts by local, state, tribal and territorial governments, as well as private and nonprofit sectors.
HUD, as the designated agency for the housing RSF, has been working alongside FEMA, the U.S. Department of Agriculture (USDA) and the OST since early November 2015 to analyze the current housing situation. A housing task force co-led by Paul Iron Cloud, Chief Executive Officer of Oglala Lakota Housing and Roger Jacobs, Field Office Director of the South Dakota HUD Office are currently working on the analysis. After the analysis is complete, the task force will create a recovery strategy that the tribe can use to guide them in the recovery efforts.
On February 8, 2016, HUD announced $900,000 in Imminent Threat funding to the OST. The Indian Community Development Block Grant Imminent Threat funds are intended to alleviate or remove imminent threats to health and safety. These funds allow the tribe to rent temporary housing units for the disaster survivors to live in while their homes are being repaired or replaced.
"With the increasing number and intensity of storms and flooding we have seen in this region in the past few years, access to this funding is crucial to helping families in need of housing while their homes are repaired," said HUD Regional Administrator Rick Garcia. "This is just one way the federal government assists presidentially declared disaster areas to ensure shelter and safety when events like this occur."
The capital ratio of FHA's Single-Family Mutual Mortgage Insurance Fund stood at 2.07 percent in November 2015, rising from 0.41 percent in 2014, according to an independent actuary report. Predicted to not occur until 2016, this is the first time since 2008 and the Great Recession that the Fund's reserves have been above the 2 percent standard established by Congress.
The economic value of the Mutual Mortgage Insurance Fund grew by $19 billion in fiscal year 2015 as a result of systematic efforts to reduce risks, cut losses and improve recoveries, allowing FHA to expand access to credit for homebuyers even as the rest of the housing sector continues to recover.
GROW SD, in partnership with Inter-lakes Community Action Partnership, Rural Office of Community Services, and Western South Dakota Community Action Partnership, administers the statewide Dakota Dream Savings Fund. The Fund allows low-to moderate income homebuyers to purchase their first home after saving for a period of time and receiving financial education and homebuyer counseling. The money saved is matched at a rate of 3:1 by federal and nonfederal funds. Assets for Independence matches the savings 1:1 and the Housing Opportunity Fund matches the savings 2:1. Participants are able to save up to $2,000 for a match of $6,000, which means the participant has $8,000 to use for the down payment of their first home. For more information, visit GROW SD's website.
The South Dakota Housing Development Authority (SDHDA) announced the Repeat Homebuyer Loan Program which provides down payment and closing cost assistance with competitive interest rates for those purchasing a home again. The program allows for up to 3% of the loan amount to be gifted for down payment and closing cost assistance. For more information about the program, visit SDHDA's website.
Does HUD/FHA owe you or someone you know a refund? If you had an FHA-insured mortgage, you may be eligible for a refund. It's easier than ever to find out if you are owed a refund. Simply search HUD's online database by entering your last name or FHA case number and the city and state where the property is located. Once your name is found, call 1-800-697-6967 to get your refund. If your name is not listed, but you believe you are owed a refund, call this same number to inquire about your status.
FY2016 Statistics Oct Nov Dec
Loans Insured 30 243 140
First-Time Homebuyers 126 142 65
Minority Homebuyers 10 15 3
Default Rate 2.43% 2.55% 2.63%
Foreclosure Rate 0.37% 0.32% 0.31%
Acquired 6 12 8
Sold 8 11 11
Owned 54 55 52
On January 8, 2016, HUD and the Department of Veterans Affairs awarded $190,898 to the Oglala Sioux Tribe on the Pine Ridge Reservation and $183,011 to the Sicangu Wicoti Awayankapi Tribe on the Rosebud Reservation in South Dakota. The funds will help to find permanent homes and supportive services for 20 veterans of each tribe who are homeless or at risk of experiencing homelessness. The funds are part of $5.9 million in grants to 26 tribes across the country assisting 500 Native American veterans.
A recent award of over $145,000 from HUD will help families in Brookings County, Mobridge, and Sioux Falls work toward self-sufficiency. HUD's Housing Choice Voucher Family Self-Sufficiency Program (FSS) allows public housing authorities to work with welfare agencies, schools, businesses, and others to develop a comprehensive program to help individuals develop skills and experience needed to obtain jobs to gain economic independence and self-sufficiency.
The housing authorities received funding to continue their programs in hiring family self-sufficiency coordinators to link participants to local organizations that provide job training, childcare, counseling, transportation, and job placement.
FHA recently announced a multifamily insurance rate reduction to encourage capital financing of affordable and energy-efficient apartments in an effort to help preserve and increase affordable rental housing.
Effective April 1, 2016, the rate reductions will directly impact FHA's multifamily housing programs and properties housing low-income and moderate-income families and/or newly built energy efficient properties. The annual rate on "broadly affordable" FHA mortgages will be lowered 25 basis points; to 35 basis points for mixed-income mortgages with affordability set-asides; and to 25 basis points for FHA mortgages that meet energy-efficient guidelines.
FHA estimates the rate reductions will spur the rehabilitation of an additional 12,000 units of affordable housing per year nationally, meaning over the next three years nearly 40,000 families nationwide could benefit from higher quality affordable housing. Read the entire press release.
The SDHDA announced $2 million in HOME Investment Partnerships Program (HOME) funding available for developers and/or owners for acquisition, new construction and rehabilitation of affordable housing.
HOME funds are used for building, buying, and/or rehabilitating affordable housing for rent or homeownership. They are also used for providing rental assistance to low-income tenants. Applications are due to SDHDA on March 4, 2016 and are available.
HUD announced 80 grants for a total of $15 million is available to test a housing and services model for low-income seniors to age in their own homes and delay or avoid the need for nursing home care. The Supportive Services Demonstration for Elderly Households in HUD-Assisted Multifamily Housing grant applications are due April 18, 2016. The three year grants will be offered to eligible owners of HUD-assisted senior housing developments to cover the cost of a full-time enhanced service coordinator and a wellness nurse.
HUD's Notice of Funding Availability (NOFA) forecast lists competitive grant opportunities that may be available for FY2016. The inclusion or exclusion of an opportunity in the list does not constitute a guarantee that a specific opportunity will become available. When funding is available, HUD will issue a NOFA, which will be available on Grants.gov.
The South Dakota Department of Labor and Regulation (DLR) provides workforce services to develop skills for employment. DLR is also available to assist with the job search. For more information, visit DLR Workforce Services.
HUD recently issued a notice seeking comments on methods to address over-income public housing residents who continue to live in public housing as other families wait for a unit to become available. About 1.1 million families currently live in public housing in the United States. To qualify for public housing, applicants initially qualify based on their low incomes by Public Housing Authorities (PHAs).
The PHAs conduct annual reviews of their incomes for purposes of calculating the amount of subsidy they receive; however, the laws do not require eviction or termination of tenancy in circumstances when their household income increases significantly and consistently over time, even if they pay full market rent and receive no subsidy at all. Therefore, HUD is considering ways to possibly limit public housing residency to those that actually need housing assistance, due to the urgent need of affordable rental housing.
Fiscal Year 2016 Fair Market Rents (FMRs) were published in the Federal Register and became effective on December 11, 2015. FMRs are used to determine payment standard amounts for assisted housing programs and to serve as a rent ceiling in the HOME rental assistance program.
For the most current information from HUD's Multifamily Housing Office in Denver.
South Dakota HUD Office
Phone: (605) 330-4223
This is a quarterly publication of the South Dakota HUD office. For active internet links, view the newsletter online at www.hud.gov/south_dakota.
Please contact us if you have any news or updates to include in our newsletter.
Sioux Falls Office Staff
HUD and the National Environmental Health Association are partnering to announce the second annual Secretary's Award for Healthy Homes. The award will recognize excellence in healthy housing innovation and achievement in three categories: Public Housing/Multifamily Housing, Policy and Research Innovation, and Cross Program Coordination among health, environment, and housing. The activities or policies nominated must show measurable benefits in the health of residents and be available to low and/or moderate income families. The deadline is February 29, 2016. Applications are available.
HUD recently published Frequently Asked Questions (FAQs) on the rules of using its Community Development Block Grant, Home Investment Partnership & National Housing Trust Fund funds for broadband infrastructure required to help low-income communities close the digital divide. FAQs.
HUD is seeking applications by March 7, 2016 for the public philanthropic partnership award to recognize the partnership process and its impact as a community strategy to increase the quality of life for low and moderate income residents. Examples of nominations include projects affiliated with housing and neighborhood improvements, education, health and recreation, transportation, community participation, arts and culture, safety, sustainability, etc. More information.
Mission of the U.S. Department of Housing and Urban Development: To create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes; utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business.
|Content Archived: March 27, 2018|