Region IV HUDLines


A quarterly newsletter about HUD information in the Southeast and Caribbean Region

Bob Young, HUD Atlanta Regional Director
(404) 331-5001
Summer 2007
www.hud.gov/georgia

Join the National Call to Action
America�s Affordable Communities Initiatives

At the first HUD workforce housing conference held in Louisville, Kentucky on June 20, 2007, Deputy Secretary Roy A. Bernardi issued HUD�s National Call to Action for Affordable Housing Through Regulatory Reform. This National Call to Action is an appeal designed to reduce or eliminate unnecessary regulations that price housing beyond the reach of millions of Americans. �Red tape is literally choking the life out of housing that�s affordable to working families,� said Bernardi. �Today, HUD is calling on local communities to join us as we identify and remove these man-made barriers that prevent teachers, police officers, firefighters and others from living in communities of their choice.� More than 100 state and local officials met at the HUD Workforce Housing Conference in Louisville, Kentucky, to learn more about how to reduce regulatory barriers in order to make housing more affordable in their communities. At the time of the conference, more than 150 communities and organizations had already joined HUD�s �Call to Action.� Special recognition was given to Mayor Elaine Walker of Bowling Green, Kentucky, for being the first community to officially answer HUD�s �Call to Action.�

Save the Date � September 25, 2007
America�s Affordable Communities Initiative

A Symposium: Housing Opportunities for All Georgians
WHEN: September 25, 2007
9:30 AM to 4:00 PM

WHERE: Georgia Center for Continuing Education University of Georgia
Athens, Georgia
Cost for meals: $25

Come and learn how to overcome regulatory barriers to creating affordable workforce housing in your community. Workshop topics include zoning ordinances, land development standards, and housing finance issues.

Symposium Conveners: the University of Georgia Housing and Demographics Research Center and its Board of Advisors, U.S. Department of Housing and Urban Development, Georgia Department of Community Affairs, Federal Home Loan Bank of Atlanta, and the Georgia State Trade Association of Non-profit Developers.

For additional information, contact Karen Tinsley, UGA Housing and Demographics Research Center (706) 542-4949 or KLT@uga.edu

Disaster Preparedness!!!!!!
June 1, 2007 was the start of the Atlantic Hurricane Season. We are now in the middle of hurricane season. Get prepared. Here are some sites you should check out. www.ready.gov, www.pathnet.org, www.flash.org.

Atlanta HUD Office has Ribbon Cutting at Energy House FHA Celebrates 73rd Anniversary
U.S. Department of Housing and Urban Development (HUD) Atlanta Regional Office celebrated National Homeownership Month at a Ribbon Cutting Ceremony at an Energy Star Demonstration Home in Atlanta, Georgia. Joining HUD as partners in this event were City of Atlanta, Environmental Protection Agency, Georgia State Trade Association of Nonprofit Developers, Georgia Power, and the University Community Development Corporation (UCDC). This home was sold by HUD to the City of Atlanta, rehabbed by UCDC to meet Home Performance with Energy Star goals. The Home was open for tours to see the energy and water conservation methods used to provide affordable housing. �This Energy Star Demonstration Home will ultimately provide a homeowner with a real American dream - a home that has been rehabbed with energy and water conservation methods,� said Young. �It is a great day when all these partners can work together to provide this energy efficient house � a house which will continue to remain affordable because of all ther in the month, FHA celebrated it 73rd Birthday at this same house and welcomed the prospective new homebuyer.

Energy Star (http://www.energystar.gov/) is a government-backed program helping businesses and individuals protect the environment through superior energy efficiency in appliances, building materials and construction methods. It was started in 1992 by the Environmental Protection Agency (EPA). EPA founded Energy Star Program in partnership with the Department of Energy (DOE), and the Department of Housing and Urban Development and offers consumers, businesses, and public organizations energy-efficient solutions that save energy and money while helping protect the environment for future generations. A Memorandum of Understanding was signed by all the partners last year to promote Energy conversation and Energy Efficiency in Residential and Commercial Buildings and thereby promoting more affordable housing.

More than 300,000 Seniors Benefiting from HUD Reverse Mortgages
More seniors than ever before are reaping the benefits of reverse mortgages to enjoy their golden years. New data from HUD reveals that more than 300,000 seniors have used the federally-insured Home Equity Conversion Mortgage (HECM) loan program to convert the equity in their home into cash without having to move.

Insured by HUD's Federal Housing Administration (FHA), HUD's reverse mortgage loans require that the borrower be a homeowner, 62 years of age or older; own one's home outright, or have a low mortgage balance, and must live in the home. Reverse mortgage recipients are also required to participate in HUD-approved housing counseling programs before obtaining the loan.

Since 1990, more than 308,000 senior homeowners have used HUD's reverse mortgage program, which covers almost 90 percent of the reverse mortgage market, to borrow against the equity in their homes, making cash readily available to cover necessary expenses. There has been a 10-fold increase in the number of reverse mortgage loans backed the FHA between 2000 and 2006. More than 76,000 seniors obtained a reverse mortgage through HUD in 2006, compared to just 6,637 people in 2000. The number of HECM's insured by the FHA has steadily increased over the past 17 years, with the largest increases coming over the past six years. The FHA insured 18,084 loans in 2003 and more than doubled that amount to 37,789 in 2004. In 2007, the FHA has already backed 69,833 loans, putting the HECM program on pace to surpass its 2006 total this summer.

Unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower no longer maintains the home as their principal residence. If the homeowner has an existing mortgage on the home, it will be paid off with proceeds from the reverse mortgages. The remaining equity can be distributed as a lump sum, on a monthly basis, or on an occasional basis as a line of credit.

To help more seniors take advantage of reverse mortgages, HUD's Government National Mortgage Association (Ginnie Mae) is also creating a HECM mortgage-backed security that will allow FHA-insured reverse mortgages to be used as collateral to back Ginnie Mae securities. This change will expand the reverse mortgage business and should provide seniors with lower rates by allowing mortgage lenders to obtain a better price for their loans in the secondary market. Check out www.fha.gov.

 
Content Archived: November 8, 2012