What is a typical financial package?
10% Owners Equity, 40% Conventional Loan, 50% HOME
What are some of the regulations that must be adhered to?
Occupancy Requirements, Rent Restrictions, and Fair Housing Requirements are required under the HOME Program. Please refer to the HOME Program Allocation Plan regarding the Federal requirements.
Where do I start?
What is the housing need in the community? The analysis should include a breakdown of community demographics, the age of the community, employment opportunities, and the growth of the community. Rental Projects should review the current rental projects, the size of the units (1-bdrm, 2-bdrm, etc.), rents currently charged, vacancy rates, who the units are being marketed towards (elderly, disabled, multifamily, etc.), when the projects were built, and the current physical condition of the projects. Once the housing need has been identified the review of rental income, expenses and development costs will determine project feasibility.
What are some of the main things to consider when putting together an application?
- Need and demand for the type of housing project.
- Local support of the project.
- Financial feasibility of the project by determining:
- Development cost projections and proposed funding sources.
- Income and expense projections for the affordability period.