MORTGAGE INSURANCE FOR DISASTER VICTIMS Type: Mortgage insurance for purchase of home. Agency: Federal Housing Administration (FHA). Program Name: Sec. 203 (h) Mortgage Insurance tims. Homes for Disaster Vic Form of Assistance: FHA insures lender against loss on qualifying loans. Terms: No-downpayment loan for up to 35 years at the prevailing FHA inter est rate. Contact: Application is made through FHA-approved local lender. For additional information, contact FHA Insuring Office, 1835-45 Assembly Street, Columbia, SC 29201-2482, 803/765-5592. IV. GENERAL HOUSING RESOURCES The following are brief discussions of a number of federal, state and other agencies which are potential resources for housing recovery because of the regular programs they administer. FARMERS HOME ADMINISTRATION PROGRAMS Farmers Home Administration (FmHA) is the federal government's principal rural housing agency. It has programs of both loans and grants and its assistance may be to an individual family directly or through developers or community organizations or to local governments. Among its programs are loans and grants for home repair available to very low-income elderly homeowners; loans only for home repair available to very low-income non-elderly; low-interest loans for the purchase, construction or rehabilitation of a modest but adequate home available to lower-income borrowers; financing for site acquisition and development available to community organizations; financing for the construction of rental housing for lower-income people available to private developers and to nonprofit organizations; loans and grants for development or improvement of necessary water and sewer facilities available to local governments and community organization; and, a number of other specialized housing and related programs. In general, FmHA programs are aimed at lower-income families. To qualify under most programs, an applicant must have an adjusted family income which is not in excess of 80% of the median family income in the county. These maximum incomes have been established for each county and can be determined at the County FmHA Office (see listings in Section V below.) Incomes also frequently determine whether an applicant qualifies for grant assistance and at what interest rate a loan may be available. It is also generally true that FmHA housing assistance is limited to "rural" areas, defined as outside of towns of 20,000 or more population (such as Chester, Orangeburg, and Georgetown). For those who qualify, FmHA housing loans can be on a no-downpayment basis, with a term of up to 33 years and an effective interest rate as low as 1%. (If borrower income rises during the repayment period, the effective interest rate may also rise.) Borrowers must have an ability to repay the loan, however, and must be unable to secure the necessary credit elsewhere on terms they could reasonably be expected to meet. It should also be noted that homeownership loans are not available to those who already own an adequate home. Application for most FmHA programs is through the County Office (see individual listings in Appendix A). For additional information contact State Office, Farmers Home Administration, Strom Thurmond Federal Bldg., 1835 Assembly Street, Room 1007, Columbia, SC 29201, 803/765-5879. FEDERAL HOUSING ADMINISTRATION/DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT While the Federal Housing Administration (FHA) operates principally through programs of mortgage insurance, its parent agency, the Department of Housing and Urban Development (HUD) does administer a number of direct assistance programs. These include Section 8 rental assistance, low-interest direct loans for rehabilitation under Section 312, operating assistance to local public housing programs and low-interest direct loans for elderly housing developed through nonprofit sponsors or consumer cooperatives under Section 202. Except for the latter program, most direct assistance from HUD is administered through local public agencies, including Local Housing Authorities (LHAS). The Section 202 elderly housing program is administered through the HUD Regional Office structure. South Carolina is in Region IV with a HUD Regional Office at Strom Thurmond Federal Building, 1835 Assembly St., Columbia, SC 29201, 803/765-5592. As noted, the largest volume of FHA/HUD housing activity is in the form of mortgage insurance which assures private lenders against loss on approved lending activities. Mortgage insurance is available for the financing of homeownership, rental housing, purchase of mobile homes and development of mobile home parks. As a general rule, loans are at market interest rates. Application is through FHA-approved local lenders. For additional information contact the HUD Field Office/FHA Insuring Office, 1835-45 Assembly St., Columbia, SC 29201-2482, 803/765-5861. OFFICE OF ECONOMIC POLICIES AND PROGRAMS The State Office of Economic Policies and Programs, Division of Economic Development, administers two programs relevant to housing recovery as part of the Small Cities Community Development Block Grant (CDBG) program. CDBG assistance is available only to or through a unit of local government and funds can generally be used for housing rehabilitation and related site and infrastructure creation or improvement. Housing Development Assistance Program: This program provides up to $150,000 for low- or moderate-income multifamily housing projects that need a small but essential subsidy to bring the project to completion. The funds normally pay for infrastructure and property acquisition costs. Indoor Facilities Program: Grants from this program can be used to install indoor bathrooms and plumbing in rural communities that identify at least 10 homes in need of such renovation. The program is often used in combination with local efforts to extend water and sewer lines. For additional information on CDBG, contact Vicky Stevens, Governor's Office of Economic Policies and Programs, Division of Economic Development, 1025 Pendleton St., Suite 418, Columbia, SC 29201, 803/734-0420. Another possible source of funds is the weatherization assistance program funded through the state by the federal Department of Energy. Grants are available for use alone or as part of a rehabilitation package. While the normal maximum grant size is $1,600, this can be exceeded in individual cases. Work financed by the weatherization grant must be of an energy-conserving natureusually increased insulation or actions to make a home more weather-tight. Eligibility for assistance is limited to persons whose income does not exceed 125% of the poverty level. Application is generally made through local Community Action Agencies (see individual county listings in Appendix A). For further information, contact Jeff Lee, Governor's Office of Economic Policies and Programs, Division of Energy, Agriculture, and Natural Resources, 1205 Pendleton Street, Suite 333, Columbia, SC 29201, 803/734-0446. STATE HOUSING PROGRAMS The State Housing Finance and Development Authority (HFDA) is the state agency responsible for long-term housing assistance for hurricane victims. The hurricane's devastating effects have led the State to target their existing multifamily rental and homeownership financing programs to areas affected by the disaster. Additionally, they expect to create a statewide nonprofit housing development corporation to coordinate the efforts of local and state governments and the private sector to address housing needs. HFDA has also requested additional rental housing assistance from the federal Department of Housing and Development. For further information, contact Mary Sulton, SC State Housing Finance and Development Authority, 1710 Gervais St., Suite 300, Columbia, SC 29201, 803/734-8832. The Division of Economic Development, the administering agency for the Community Development Block Grant Program, is also likely to establish a special program for long-term housing needs once the emergency phase of assistance is completed. (See above Section on CDBG for contact information.) HOUSING ASSISTANCE COUNCIL The Housing Assistance Council (HAC), in Washington, D.C., with a regional office in Atlanta, GA, is a source of technical assistance and of low-interest pre-development loan funds for low-income housing. Loans are generally for one year, with a 2 percent service fee and an interest rate two points below that prevailing for Farmers Home Administration site loans. They are renewable for a second year with a further 1 percent service fee and an interest rate equal to the prevailing FmHA rate. The funds may be used for land options, site acquisition and development, or other pre-development purposes, or for construction financing. For additional information, contact the national office, 1025 Vermont Ave., NW, Suite 606, Washington, DC 20005, 202/842-8600; or regional office, 1365 Peachtree St., N.E., Suite 224, Atlanta, GA 30309, 404/8924824. RURAL AMERICA Another source of below-market interest loans for housing pre-development purposes is the Rural Development Loan Fund administered by Rural America. Loans of up to $100,000 are available for a period of up to two years. There is a one-time service charge of 5 percent and the interest rate varies according to the repayment ability of the project. The principal beneficiaries of the activities financed must be low-income families, as defined in the official poverty guidelines, and the project must be located outside towns of 50,000 or more and any adjacent urbanized areas. For additional information, contact Rural America, 725 15th Street, NW, Washington, DC 20005, 202/628-1480. VIRGINIA WATER PROJECT/SE RURAL COMMUNITY ASSISTANCE Training and technical support to improve water and wastewater systems is available from the Virginia Water Project in Roanoke, Virginia. Available services include surveys, engineering reviews, assistance in selection of design engineers and other consultants, and aid in development of funding applications. The area to be served must be rural and have a significant low-income population. Application is normally through a community action agency or other community-based organization. For more information, contact Jackson C. Hall, Jr., Virginia Water Project/SE Rural Community Assistance Project, 702 Shenandoah Ave., P.O. Box 2868, Roanoke, VA 24001, 703/345-6781, ext. 250. |