The monthly Council on Housing (COH) meeting was held last week at the Huling Cove community building in Lewes, Delaware. (Agenda; Meeting minutes of 4/13/2011 session)
The Loan Review Committee recommended the following Housing Development Fund (HDF) requests:
- Wexford Village Housing Corporation (WVHC) is a multi-family rental complex of 60 units located in Laurel, Delaware. Wexford Village housing Corporation (WVHC) received a 1990 Low Income Tax Credit (LIHTC) allocation and the property is currently in its extended use period. The property requires rehabilitation costing between $800,000 – 1,000,000 as indicated by a Capital Needs Assessment (CNA).
- The Delaware State Housing Authority (DSHA) recommended the request by attaching conditions to funding: (1) DSHA must obtain Department of Housing and Urban Development (HUD) approval to include the development as part of DSHA’s umbrella of properties and the ability to utilize $1M public housing/section 8 reserve funds for capital improvements and to project-base 20 Housing Choice Vouchers at WVHC. DSHA will demonstrate leveraging to HUD by paying off the first mortgage with Wilmington Trust/M&T of $293,000; (2) if DSHA does not obtain HUD approval, DSHA may proceed with the best alternative for the property; (3) applicant is still subject to regulatory requirements until the HDF loan is repaid; (4) surplus cash must be applied to the principal balance of the WVHC HDF loan; and (5) no acquisition costs, developer fees, equity distributions or legal fees are allowed to be paid from project funds.
- The request was approved by the Council on Housing (COH) with three council members abstaining.
- Under the previous administrative system, the Delaware State Housing Authority (DSHA) would reimburse housing counseling services (Second Mortgage Assistance Loan (SMAL), Delaware Emergency Mortgage Assistance (DEMAP), and National Foreclosure Mitigation Counseling (NFMC)) through a Housing Development Fund (HDF) grant to NCALL Research on behalf of the Federal of Housing Counselors. To streamline the process and provide for accurate reimbursements, Delaware State Housing Authority (DSHA) is changing the administration of the program by combining all of the housing counseling agencies under one master grant agreement and therefore is applying for the Housing Development Fund (HDF) funds directly. The impact of the new administration is a decrease to the Second Mortgage Assistance Loan (SMAL) closing fee reimbursement from $500 to $400 (DSHA will monitor this fee).
- The request was approved by the Council on Housing (COH) with three council members abstaining.
The next meeting is scheduled for Wednesday, July 13, 2011, at 2:00 p.m. at Buena Vista Conference Center, New Castle, Delaware.
