West Virginia Housing
Development Fund
Programs At A Glance
Erica L. Boggess
Acting Executive Director
Mission & Purpose
• The Fund’s primary purpose is to increase the supply
of affordable residential housing for persons and
families of low and moderate income.
• The Legislature also empowered the Fund to provide
construction and permanent mortgage financing to
public and private sponsors of such housing.
• This purpose has been expanded over time by the
legislature to include, among other things, housing for
persons of moderate income and temporary housing
for homeless people and disaster victims.
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Structure and Organization
• The Fund is governed by an 11-member Board of
Directors
• The Governor, Attorney General, Commissioner of
Agriculture, and the State Treasurer serving as public
directors
• Seven private directors appointed by the Governor from
the general public
• The Governor is designated as the Chair of the Board of
Directors
The Fund is a self-supported governmental entity and
receives no State appropriations.
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• Revolving loan programs provide sustainability
• Act states “loans are not otherwise available, wholly
or in part, from private lenders upon reasonably
equivalent terms and conditions”
• Quazi-governmental structure provides flexibility
• Revenues generated from loans, fees and investment
earnings are used to further programs
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Our Program Options
Rental
LIHTC
• New Construction
• Rehabilitation
HOME Rental
• New Construction
• Rehabilitation
MMRP
• Rehabilitation
Multifamily Lending
Land Development
WV PRI (Demo)
Special Needs Assistance
Ownership
Single Family Ownership
• First Time Buyer
• Movin' Up
• Downpayment
Assistance
• Secondary Market
• LAMP
• New Construction
Financing
• On-Site System Loan
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Homeownership Program
• Commonly know as “first time homebuyer” program
• Funded by tax-exempt mortgage revenue bonds –
AAA/Aaa ratings reduce borrower rates
• Targeted to low and moderate income borrowers
• Regulated by IRS Code and subject to provisions of bond
resolutions
• Subject to full underwriting and federal lending laws and
regulations
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Homeownership Program (Cont’d)
Average Payment
$582 – Including
Taxes and Insurance
• Average Sales
Price $112,564 =
Affordable
Average Family
Income = $43,865
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Single Family Movin’ Up
New initiative designed to
help families Move Up to a
better home.
• Designed for homeowners looking to purchase a
bigger home, downsize or just make a change
• No first time homebuyer requirement
• House price and income limits set by the Fund’s Board
Income Limits $113,760 for
1-2 persons or $132,720 for
3 or more
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Downpayment and Closing Cost
Assistance
(Board approved – HDF revenues)
• Available in conjunction with Homeownership and
Movin’ Up Programs
• 15 year term at 2.5% interest rate
• Homeownership Program - $15,000 max depending
on LTV
• Movin’ Up Program - $8,000 max depending on LTV
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Secondary Market
(Board approved – HDF revenues)
• Designed to provide liquidity to the State’s
small mortgage lenders
• The Fund purchases mortgages held by banks
and then sells the loan in the secondary
market to Fannie Mae
• Process provides banks funds for additional
mortgages
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LAMP
(Board approved – HDF revenues)
• LAMP provides a secondary market to Habitat
for Humanity affiliates to increase home
building production for very low income
families
• The Fund purchases the loan for its portfolio
• Provides funds for Habitat to build its next
home
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New Construction Financing Program
(Board approved – HDF revenues)
• Incentive program to encourage homebuilders
to build moderate single-family homes
• House price not to exceed MRB limits
• 15 month term, interest due at maturity
• Interest rate .5% if house price <$200,000; if
greater 1%
• 80% LTV
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On-Site Systems Loan Program
• Partnership with the WV DEP -the Fund acts
as conduit to loan DEP clean water revolving
funds
• Provides for the upgrade, replacement or
repair of inadequate septic systems
• 10 year, 2% loan up to $10,000
• No income limits
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Low Income
Housing Tax Credit
(Federal – IRS)
• Properties must maintain affordable units for a
minimum of 30 years
• Physical inspections and tenant eligibility reviews
• Eligible tenants must be at or below 60% of area
median income
• Highly competitive RFP process
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HOME Program
• HOME is a federally funded HUD program – requires state
matching funds
• Provides financing for both homeownership and rental
projects
• Repayment and loan terms vary based on underwriting of
each project
• Physical inspections and tenant eligibility reviews
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MMRP – Mini Mod
Rehabilitation Program
(Board approved – HDF revenues)
Provides owners of rental
properties financing to rehabilitate
existing rental units or assist with
the completion of new rental units
• Owners can be individuals, partnerships, corporations, nonprofits or LLCs
• Rehab may include minor repairs such as furnace or window
replacement or major rehab
• Max $25,000 if first lien, $20,000 if second lien
• Term of up to 10 years at up to 6%
• Max $300,000 or 95% LTV
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Multifamily Lending
(Board approved – HDF revenues)
• Provides permanent financing of rental
properties
• Financed properties may also receive funding
from the HOME, tax credit or other Fund
programs
• Properties often have federal loan guarantees
• Generally require replacement reserves
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Land Development Program
(restricted by HDF Act)
The Land Development Program provides
loans for the purpose of acquiring and
improving land for residential or nonresidential construction.
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WV Property Rescue Initiative
(Legislative restrictions – HDF revenues)
Revolving loan program for counties and municipalities to
demolish structures that constitute health and safety hazards to
improve communities.
• Loan terms up to 7
years
• Years 1-2, no
interest or
payments due
• Must have adopted
proper ordinances
and use licensed
code officials
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Special Assistance Lending
(Board approved – HDF revenues)
• Provides funding for non-traditional group
housing for the homeless, substance and
physical abuse recovery
• Scattered site repairs
• Repayment limited – only required if project
does not fulfill mission for generally 10 years
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Loan Servicing
• The Fund services all loans in its portfolio and on
behalf of other investors
• Provides personalized customer service
• Troubled loan work-out and loan modifications
• The Fund is the largest loan servicer in the State
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General
• Program participants subject to Multi Family
lending policies
• Contact your Area Managers for assistance on
various programs
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Erica L. Boggess
Acting Executive Director
West Virginia Housing Development Fund
5710 MacCorkle Ave SE
Charleston WV 25304
[email protected]
304-391-8638
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