Katie Howard


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Presentation from Bring Workers Home regional workforce housing forum in Austin, TX on August 12, 2010.

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Katie Howard

  1. 1. Workforce Housing Options
  2. 2. About the Corporation <ul><li>Created by the Legislature in 1994 as a self-sustaining 501(c)3 nonprofit corporation </li></ul><ul><li>Our mission is to provide safe, decent and affordable housing for low income Texans </li></ul><ul><li>Quasi-Governmental </li></ul><ul><ul><li>Board appointed by the Governor </li></ul></ul><ul><ul><li>Receives no State appropriated funding </li></ul></ul><ul><ul><li>Employees are not State employees </li></ul></ul><ul><li>Provide both single and multifamily housing programs, as well as, asset oversight and compliance services across Texas </li></ul>
  3. 3. Workforce Options Offered <ul><li>Home Loan Programs </li></ul><ul><ul><li>Professional Educators Program </li></ul></ul><ul><ul><li>Homes for Texas Heroes Program </li></ul></ul><ul><ul><li>Home Sweet Texas Loan Program </li></ul></ul><ul><li>HomeWorks </li></ul>
  4. 4. <ul><li>Home Loan Programs </li></ul>
  5. 5. <ul><li>Home Loan Programs created by the Texas Legislature (approximately $60M annually in mortgage revenue bonds) </li></ul><ul><li>Acknowledges professionals’ commitment to the safety and welfare of all Texans </li></ul><ul><li>2800 new homeowners since 2002 </li></ul>
  6. 6. Home Loan Programs Offer… <ul><ul><li>Low interest rate mortgage loan – currently 5.00% </li></ul></ul><ul><ul><li>Grant of 3% for downpayment and closing costs </li></ul></ul><ul><ul><li>-OR- </li></ul></ul><ul><ul><li>Mortgage Credit Certificate: </li></ul></ul><ul><ul><ul><li>Tax credit of up to $2,000 annually  </li></ul></ul></ul><ul><ul><ul><li>Tax credit can be taken as long as the home is the borrower’s principle residence </li></ul></ul></ul>
  7. 7. How does a individual qualify? <ul><li>Be of a specific group: </li></ul><ul><ul><li>Professional Educators: </li></ul></ul><ul><ul><ul><li>Classroom Teacher, Teacher Aide, School Librarian, School Nurse, School Counselor, or Nursing and Allied Health Faculty. </li></ul></ul></ul><ul><ul><li>Homes for Texas Heroes: </li></ul></ul><ul><ul><ul><li>Firefighter, EMS Personnel, Peace Officer, Corrections Officer (TDCJ or TYC), County Jailer, or Public Security Officer. </li></ul></ul></ul><ul><ul><li>Home Sweet Texas Loan: </li></ul></ul><ul><ul><ul><li>An individual or family at or below 80% AMFI </li></ul></ul></ul>
  8. 8. <ul><li>First-time Homebuyer </li></ul><ul><ul><li>not owned a home in the past, or </li></ul></ul><ul><ul><li>have not had ownership interest in any principal residence in the past 3 years , or </li></ul></ul><ul><ul><li>purchasing a home in a “targeted”/GO Zone area </li></ul></ul><ul><li>Cannot exceed Income Limits </li></ul><ul><ul><li>Based on County of residence and household size </li></ul></ul><ul><li>Cannot exceed Purchase Price Limits </li></ul>How does a borrower qualify?
  9. 9. How does a borrower qualify? <ul><li>Underwriting/Credit Requirements </li></ul><ul><ul><li>Must meet standard mortgage underwriting requirements as determined by the lender </li></ul></ul><ul><ul><li>A minimum credit score of 600 </li></ul></ul><ul><ul><li>FHA, VA, or USDA loans are eligible </li></ul></ul><ul><li>Complete a HUD approved homebuyer education course prior to closing on the home loan.   </li></ul><ul><li>Contact an approved lender by visiting www.tsahc.org </li></ul>
  10. 10. <ul><li>HomeWorks – </li></ul><ul><li>an Employer Assisted Housing Program </li></ul>
  11. 11. In general, employer assisted housing… <ul><li>Provides affordable housing option to employees </li></ul><ul><li>Aids employers in recruitment and retention </li></ul><ul><li>Increases morale and productivity </li></ul><ul><li>Improves employer’s bottom line </li></ul><ul><li>Enhances employee’s work-life balance </li></ul><ul><li>Creates stronger communities </li></ul>
  12. 12. <ul><li>TSAHC created HomeWorks in April 2008 after realizing an unmet need in Texas </li></ul><ul><li>We modeled our program after other cities and states </li></ul><ul><li>Major goal was to partner with Texas employers to provide a recruitment/retention tool while providing an affordable housing option to employees </li></ul><ul><li>After two years of marketing to employers, we were unable to find a partner employer </li></ul>
  13. 13. How It Would Work: <ul><li>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) </li></ul><ul><li>Assistance would be provided to the employee in the form of a three year deferred forgivable second lien loan (1/3rd forgiven each year) </li></ul>
  14. 14. How It Would Work: <ul><li>If the employee leaves or is terminated before three years, the remaining balance of the assistance would be repaid </li></ul><ul><li>Employer could contribute a total set amount to the program and offer it to employees on a first-come, first-served basis </li></ul>
  15. 15. How It Would Work: <ul><li>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 </li></ul><ul><li>Employee must meet income and purchase price limits, while meeting standard mortgage underwriting requirements </li></ul>
  16. 16. How It Would Work: <ul><li>Principal mortgage must be a fixed interest loan </li></ul><ul><li>Employee must complete a homebuyer education course prior to receiving the assistance </li></ul><ul><li>Employee must occupy the purchased home as his/her primary residence </li></ul>
  17. 17. Sounds great… right? <ul><li>As stated previously, we could not find a partner employer </li></ul><ul><li>Possible pitfalls: </li></ul><ul><ul><li>Approached large, multi-state employers primarily in medical and manufacturing industries </li></ul></ul><ul><ul><ul><li>Employers would not be able to provide incentive to those outside of Texas </li></ul></ul></ul><ul><ul><li>Economic environment </li></ul></ul><ul><ul><ul><li>Employers faced with cutbacks </li></ul></ul></ul><ul><li>Employer’s preferences could not be met </li></ul><ul><ul><ul><li>Home prices near employer were too high for targeted employees </li></ul></ul></ul><ul><ul><li>TSAHC limited by income range of serving those at or below 80% AMFI </li></ul></ul>
  18. 18. Continuing the Effort… <ul><li>In 2009, legislation was filed to create similar program targeting a low-performing school district in San Antonio. The bill did not pass </li></ul><ul><li>We appreciate the opportunity to share our experience </li></ul><ul><li>Please feel free to contact us to continue the discussion </li></ul>
  19. 19. Foreclosure Prevention Efforts <ul><li>Founding member and fundraising arm of Texas Foreclosure Prevention Task Force </li></ul><ul><li>Provide technical assistance and financial support to 16 HUD approved housing counseling agencies </li></ul><ul><li>Texas Foreclosure Intervention Resource Guide </li></ul><ul><li>Loan Scam Alert Initiative </li></ul><ul><ul><li>Community Summits </li></ul></ul><ul><ul><li>PBS Special </li></ul></ul><ul><ul><li>Loan Scam Alert Materials </li></ul></ul><ul><li>Administer National Foreclosure Mitigation Counseling Program in partnership with the Texas Department of Housing and Community Affairs </li></ul>
  20. 20. Thank you! <ul><li>For additional information, please visit: </li></ul><ul><li>www.tsahc.org </li></ul><ul><li>Or call us toll free at (888) 638-3555 </li></ul>