# Presentation: 357245

## BERNALILLO COUNTY HOUSING DEPARTMENT1900 BRIDGE BLVD., SWALBUQUERQUE, NM 87105(505) 314-0200FAX: (505) 842-8149

**SECTION 8 VOUCHER CHOICE**
**HOMEOWNERSHIP PROGRAM**

## RICHARD G. CHAVEZ, DIRECTOR505-314-0235 rgchavez@bernco.govANGELA M. LUCERO, S8HOP COORDINATOR 505-314-0215 alucero@bernco.gov

## WHO IS BERNALILLO COUNTY HOUSING DEPTARTMENT

- Administers 1756 Section 8 Vouchers
- Administers 21 Public Housing Units
- Administers 40 New Construction Units
- Bernalillo County is the surrounding County for the Albuquerque Metropolitan Statistical Area
- Metropolitan area population is approximately 500,000

## LEGISLATIVE AUTHORIZATION

- The Quality Housing and Work Responsibility Act of 1998 amended the United States Housing Act of 1937 to authorize the Section 8 Housing Choice Voucher Homeownership Program.

## PROGRAM DEVELOPMENT

- INITIAL REVIEW OF PILOT PROGRAMS
- 75% 	FSS Coordinator Time for 2 Months
- 25%	Assistant Director Time for 2 Months
- 10%	Director’s Time for 2 Months

## INITIAL DECISION

- Open program to all eligible participants that meet the minimum income requirements.
- Sent out a mass mailing to all eligible participants about new program and how they may be able to purchase their own home.

## INITIAL PROGRAM PARTNERS

HOME New Mexico
Neighborhood Housing Services (NHS)
New Mexico Mortgage Finance Authority (MFA)
Suburban Mortgage Company of    New Mexico

- HOME New Mexico
- Neighborhood Housing Services (NHS)
- New Mexico Mortgage Finance Authority (MFA)
- Suburban Mortgage Company of    New Mexico

## ADDITIONAL PARTNERS

**LENDERS**
- Charter Mortgage
- Countrywide Home Loans
- First State Bank
- Home Trust Mortgage
- KB Mortgage
- Wells Fargo Home Mortgage
**HOUSING COUNSELORS**
- ACORN Housing Counseling
**REALTORS**
- Over 50 Realtors from the Albuquerque Area have partner up with us to make this program successful.

## WHO QUALIFIES

- Family must be a current voucher participant with BCHD or;
- Be eligible for admission to the housing choice voucher program.
- Family must have good credit, and be able to obtain a mortgage based on their own income, credit and debt.

## WHO QUALIFIES Continued

- Family must qualify as a first-time homeowner,
- Annual income of at least one adult non-disabled family member who will own the home must be at least $10,300 per year.
- For disabled families annual income must be equal to the monthly Federal Supplemental Security Income (SSI) + twelve months.

## WHO QUALIFIES Continued

- Except in the case of elderly or disabled families, the adult members who will own the home must be employed on full-time basis (average of 30 hrs/wk for one full year).
- For elderly or disabled families welfare assistance will only be counted for those adult members who will own the home.

## WHO QUALIFIES Continued

- The family must not have previously defaulted on a mortgage when participating in the voucher homeownership option.
- The family must not have a present ownership interest in a residential property.

## FAMILY RESPONSIBILITY

- The family is responsible for 3% of the sales price of the home as downpayment.  Of this 3%, the higher of 1% or $500 must come from the family’s personal resources.

## TIME LIMITS

- Except for elderly and disabled families, HAP may only be paid for a maximum period of 15 years if the mortgage incurred has a term that is 20 years or longer.
- 10 years if the mortgage is less than 20 years.
- In all other cases 10 years.
- No time limit for elderly and disabled families.
- However, homebuyers are required to re-certify yearly and to report any changes to income or family composition in a timely manner to insure they are still eligible for assistance under this program. (No exceptions)

## Suburban Mortgage allows payments from both the Housing Authority and direct debit from the family’s account then they combine both to make payment
Wells Fargo Home Mortgage is requiring that the family open a joint account with them and both the Housing Authority and client portions be deposited and they will in turn do a direct debit from that account.  
Some banks do not wish to work directly with us so we have also made arrangements to send the Housing Authority’s portion to the family and have them make the full payment.

- Wells Fargo Home Mortgage is requiring that the family open a joint account with them and both the Housing Authority and client portions be deposited and they will in turn do a direct debit from that account.
- Some banks do not wish to work directly with us so we have also made arrangements to send the Housing Authority’s portion to the family and have them make the full payment.

**HAP AND TENANT PAYMENTS**** **

## MFA ASSISTANCE

- MFA _may_ provide up to $15,000, as needed, for eligible participants at 0% interest, forgivable after 10 years, depreciation rate beginning on the 6th year at 20% per year.
- MFA assistance is available for homes purchased in the “unincorporated” areas of Bernalillo County.  (Outside of the City Limits)

## FINANCING

- It is anticipated that mortgage lenders will consider the voucher assistance when underwriting the loan
- Underwriting standards of the lender will apply.

## FINANCING Continued

- The family is responsible for securing its own financing.
- Voucher funds may not be used to assist with financing cost, such as downpayment or closing costs.

## AVERAGES FOR S8HOP

- HOME SALES			$6,048,161.00
- INCREASE TO TAX BASE	$     60,000.00
- APPRAISED VALUE		$99,226
- SALES PRICE OF HOME	$99,150
- SQUARE FOOTAGE 		    1,410
- HIGH END SALE		$167,300
- LOW END SALE		$  56,000

## AVERAGES FOR S8HOP cont.

- Annual Income of Families	$15,917
- Working Families				$18,966
- Disabled/Elderly  Families			$13,794

## AVERAGES FOR S8HOP cont.

- HOMEOWNERSHIP EXPENSES
- TOTAL HOUSING EXPENSE		$850
- MORTGAGE PAYMENT			$712
- UTILITY ALLOWANCE			$121
- MAINTENANCE ALLOWANCE		$  17
- UAP						$    1
- TENANT MORTGAGE PAYMENT	$282
- HOUSING ASSISTANCE PAYMENT	$435

## AVERAGES FOR S8HOP cont.

- FAMILY DEMOGRAPHICS
- Afghanistan	  1		Disabled 	34
- Black	  1		Elderly		  2
- Hispanic	32		Working	25
- Vietnamese	16
- White	11
- Female HH	33
- Male HH	  9
- 2 Parent HH	19

## PROGRAM ISSUES

- Families are using maximum payment standard.
- Families have higher utility allowances.
- Families are eligible for maintenance allowance.
- Families are finding ways to circumvent program goals in order to qualify.
- Additional time for PHA staff to run this program.