Katie Howard

Workforce Housing Options

About the Corporation
Created by the Legislature in 1994 as a self-sustaining 501(c)3 nonprofit corporation
Our mission is to provide safe, decent and affordable housing for low income Texans
Quasi-Governmental
Board appointed by the Governor
Receives no State appropriated funding
Employees are not State employees
Provide both single and multifamily housing programs, as well as, asset oversight and compliance services across Texas

Workforce Options Offered
Home Loan Programs
Professional Educators Program
Homes for Texas Heroes Program
Home Sweet Texas Loan Program
HomeWorks

Home Loan Programs

Home Loan Programs created by the Texas Legislature (approximately $60M annually in mortgage revenue bonds)
Acknowledges professionals’ commitment to the safety and welfare of all Texans
2800 new homeowners since 2002

Home Loan Programs Offer…
Low interest rate mortgage loan – currently 5.00%
Grant of 3% for downpayment and closing costs
-OR-
Mortgage Credit Certificate:
Tax credit of up to $2,000 annually
Tax credit can be taken as long as the home is the borrower’s principle residence

How does a individual qualify?
Be of a specific group:
Professional Educators:
Classroom Teacher, Teacher Aide, School Librarian, School Nurse, School Counselor, or Nursing and Allied Health Faculty.
Homes for Texas Heroes:
Firefighter, EMS Personnel, Peace Officer, Corrections Officer (TDCJ or TYC), County Jailer, or Public Security Officer.
Home Sweet Texas Loan:
An individual or family at or below 80% AMFI

First-time Homebuyer
not owned a home in the past, or
have not had ownership interest in any principal residence in the past 3 years , or
purchasing a home in a “targeted”/GO Zone area
Cannot exceed Income Limits
Based on County of residence and household size
Cannot exceed Purchase Price Limits
How does a borrower qualify?

How does a borrower qualify?
Underwriting/Credit Requirements
Must meet standard mortgage underwriting requirements as determined by the lender
A minimum credit score of 600
FHA, VA, or USDA loans are eligible
Complete a HUD approved homebuyer education course prior to closing on the home loan.
Contact an approved lender by visiting www.tsahc.org

HomeWorks –
an Employer Assisted Housing Program

In general, employer assisted housing…
Provides affordable housing option to employees
Aids employers in recruitment and retention
Increases morale and productivity
Improves employer’s bottom line
Enhances employee’s work-life balance
Creates stronger communities

TSAHC created HomeWorks in April 2008 after realizing an unmet need in Texas
We modeled our program after other cities and states
Major goal was to partner with Texas employers to provide a recruitment/retention tool while providing an affordable housing option to employees
After two years of marketing to employers, we were unable to find a partner employer

How It Would Work:
TSAHC and employer would each match dollar for dollar of an employee’s contribution toward downpayment and closing costs (up to $2,000 each, totaling $4,000 for DPA)
Assistance would be provided to the employee in the form of a three year deferred forgivable second lien loan (1/3rd forgiven each year)

How It Would Work:
If the employee leaves or is terminated before three years, the remaining balance of the assistance would be repaid
Employer could contribute a total set amount to the program and offer it to employees on a first-come, first-served basis

How It Would Work:
Employee would need to be employed by participating employer for at least 6 months, with a minimum commitment of 3 years to the employer prior to full loan forgiveness
Employee must meet income and purchase price limits, while meeting standard mortgage underwriting requirements

How It Would Work:
Principal mortgage must be a fixed interest loan
Employee must complete a homebuyer education course prior to receiving the assistance
Employee must occupy the purchased home as his/her primary residence

Sounds great… right?
As stated previously, we could not find a partner employer
Possible pitfalls:
Approached large, multi-state employers primarily in medical and manufacturing industries
Employers would not be able to provide incentive to those outside of Texas
Economic environment
Employers faced with cutbacks
Employer’s preferences could not be met
Home prices near employer were too high for targeted employees
TSAHC limited by income range of serving those at or below 80% AMFI

Continuing the Effort…
In 2009, legislation was filed to create similar program targeting a low-performing school district in San Antonio. The bill did not pass
We appreciate the opportunity to share our experience
Please feel free to contact us to continue the discussion

Foreclosure Prevention Efforts
Founding member and fundraising arm of Texas Foreclosure Prevention Task Force
Provide technical assistance and financial support to 16 HUD approved housing counseling agencies
Texas Foreclosure Intervention Resource Guide
Loan Scam Alert Initiative
Community Summits
PBS Special
Loan Scam Alert Materials
Administer National Foreclosure Mitigation Counseling Program in partnership with the Texas Department of Housing and Community Affairs

Thank you!
For additional information, please visit:
www.tsahc.org
Or call us toll free at (888) 638-3555

Katie Howard

by National Housing Conference & the Center for Housing Policy on Aug 15, 2010

Accessibility

Tags

Upload Details

Usage Rights

Statistics

Katie Howard — Presentation Transcript