Rural Housing Development Corporation RHDC

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Rural Housing Development Corporation (RHDC)
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Service Area Central Utah
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Self-Help Housing
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8 to 10 months of Sweat Equity
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Urban Self-Help Housing
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Groundbreaking at Maeser School
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Urban Self-Help Project in Provo/Orem

• Latest estimates establish the project budget at
  196,000/home.
• In Utah County low-income families can only
  support 122,500 to 170,000 in Mortgage debt on
  a 30-year mortgage of 6.5 interest.

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12 Lot purchase

• SHOP 2003 Funds 80,000
• SHOP 2004 Funds 60,000
• Consortium HOME Funds 400,275
• Total 540,275

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9 sources of permanent financing for an Urban
Self-Help home at 196,000

• Sweat Equity - 15,000
• Fannie Mae Mortgage - 103,000 - 110,000
• Olene Walker Loan Fund Approx. 25,000
• Utah Valley Consortium of Cities and County (HOME
  Funds) 24,000
• Federal Home Loan Bank of Seattle AHP - 6,999
• SHOP Funds (up to 7,500)
• Forgivable developer fee 10,000
• City Loan - 6,313
• Family Funds - 500

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Funding Sources for Urban Self-Help Home

• Home buyer sweat-equity value of labor - 15,000
  - Rural Housing Development Corporations Urban
  Self-Help program requires the home buyers to
  commit 30 hours a week for up to 10 months to
  construct their and their neighbors homes.

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Funding Sources for Urban Self-Help Home

• 2. First Mortgage is with a Fannie Mae Mortgage
  Product given through one of three local banks
  Bank of American Fork, Central Bank and Far West
  Bank Up to 120,000
• RHDC packages the loan through Fannie
  Maes Home Counselor online. Mortgages are
  30-year, fixed rate loans at market rate. No
  Mortgage Insurance.

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Funding Sources for Urban Self-Help Home

• Second Mortgage - State of Utah, Olene Walker
  Housing Loan Fund 25,000
• Mortgages are 30-year, fixed rate loans at a
  2 or 3 interest rate (based on AMI).
• Construction terms are at 0 interest for
  13 months.

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Funding Sources for Urban Self-Help Home

• 4. Deferred trust deed/note Utah Valley
  Consortium of Cities and County (UVCCC) HOME
  funds - 24,000
• The Consortium HOME funds are deferred at 0
  interest and are due upon the death, sale,
  refinancing or end of the 30-year term.

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Funding Sources for Urban Self-Help Home

• 5. Deferred note/deed FHLB Affordable Housing
  Program - 6,999
• Federal Home Loan Bank of Seattles Affordable
  Housing Program provides subsidies to low-income
  home buyers in the form of a 5-year note that is
  forgiven in 20 increments annually.

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Funding Sources for Urban Self-Help Home

• 6. Deferred note/deed Housing Urban Development
  (HUD) Self-Help Homeownership Opportunities
  Program (SHOP) via Housing Assistance Council
  (HAC) - 7,500
• Used for homes not awarded FHLB funds. These
  funds are deferred at 0 interest and are due
  upon the death, sale, refinancing or end of the
  30-year term.

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Funding Sources for Urban Self-Help Home

• 7. Deferred trust deed/note Rural Housing
  Development Corporation - 10,000
• These funds are deferred at 0 interest and
  are forgiven by 25 every 5 years and are 100
  forgiven after 15 years. Otherwise, the note is
  due upon the death, sale, or refinancing of the
  mortgage.

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Funding Sources for Urban Self-Help Home

• 8. Deferred trust deed/note Provo City
  Average loan at 6,313
• Provo City awarded funds to upgrade exterior
  materials to fit in with historical character of
  the Maeser neighborhood. These funds are deferred
  at 0 interest and are due upon the death, sale,
  refinancing or end of the 30-year term.

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Mortgage payment

• 30-Year Bank loan of 103,000 _at_ 6.5
• Principle and interest is 638/month
• 30 Year OWHLF loan of 25,000 _at_ 2
• Principle and Interest 93/mont
• Taxes and Insurance - 150
• Total Payment - 881/ month

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Who do we serve?

• First group of 8 families in Provo/Orem
• Average income was at 65 AMI
• Employment 2 teachers, 1 case worker, production
  worker, electrician, Nurse, computer technician,
  Call center worker, and a corrections officer.
• Average family size 4.75

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Why do we pay for title insurance?
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Maeser Project
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Maeser Project
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For more information

• Brad Bishop
• Rural Housing Development Corporation
• [phone], Ext. 102
• brad_at_rhdchome.org