Funding Opportunity Announcement – March 2018                                                                                                                                       

FY 18 Community Homeownership Revitalization Program (CHRP), Tier 2                                                                                                          

Program Overview

The Community Homeownership Revitalization Program targets VHDA’s limited financial resources to communities with the greatest need. These resources provide a set-aside allocation of funding for affordable first mortgages that support a local jurisdiction’s efforts to revitalize Virginia's targeted neighborhoods and communities.  CHRP lowers loans up to one (1) percent lower than VHDA’s published first-time Homebuyer rate along with Down Payment Assistance up to two (2) - two and a half (2.5) percent. Consumers applying for CHRP resources may not exceed the limits set forth under VHDA’s first-time homebuyer program.  VHDA subsidizes the mortgage interest rate through REACH Virginia initiative funding.

Available Awards

Allocation awards will range from a minimum of $100,000 to a maximum of $4,000,000.

Allocation Period

The award period will be from June 1, 2018 - December 30, 2019.

Recorded Webinar Program Training

Copy and paste the link to access:  https://vhda.webex.com/vhda/lsr.php?RCID=030578b77dd1474d89a006092d5baddf

Program Goals

CHRP funding will support local efforts of increasing/maintaining neighborhood homeownership, develop downtown housing, de-concentrate poverty (through mixed-income development), provide affordable homeownership opportunities whereby any of which are linked to economic and neighborhood revitalization investments, the neighborhood stabilization program, and VHDA targeted areas.

CHRP provides funding for the development of new single-family homes, the rehabilitation of existing homes, or the purchase of existing homes (or a combination of these three approaches) which targets new homeowners.

Program Eligibility

 In order to be eligible for an allocation of CHRP funding, the properties must meet the following requirements:

• Provide single-family detached, attached and/or condominium units.  Condominiums must be FNMA, FHLMC and/or FHA approved. If the condominium is not approved, the Sponsor must obtain written approval from VHDA prior to submitting a SPARC proposal (See VHDA’s website for condominium guidelines).
• Units may be stick-built, modular, panelized or manufactured.  If manufactured housing, the units must be permanently attached to the real estate and considered real property, as well as, meeting VHDA property guidelines.
• The properties must expand or preserve the stock of quality affordable housing units.
• Eligible VHDA Loan Products – Conventional, FHA/VA, RD, and Fannie Mae with Down Payment Assistance Combine with DPA up to 2 -2.5%. 

Terms and Conditions

VHDA will provide the allocations of permanent mortgage funds to applicants under the following terms and conditions:

Programmatic Priorities

The following program priorities are eligible for funding:

1. Properties located in VHDA’s Rural Housing Areas:

COUNTIES:  Accomack County, Alleghany County, Bath County, Bland County, Brunswick County, Buchanan County, Carroll County, Charlotte County, Cumberland County, Dickenson County, Essex County, Grayson County, Greensville County, Halifax County, Henry County, Highland County, King and Queen County, King George County, Lancaster County, Lee County, Louisa County, Lunenburg County, Madison County, Mecklenburg County, Middlesex County, Northampton County, Northumberland County, Nottoway County, Orange County, Page County, Patrick County, Pittsylvania County, Prince Edward County, Richmond County, Rockbridge County, Russell County, Shenandoah County, Smyth County, Southampton County, Surry County, Tazewell County, Westmoreland County, Wise County, Wythe County

CITIES: Buena Vista city, Covington city, Danville city, Emporia city, Franklin city, Galax city, Lexington city, Martinsville city, Norton city

2.  Homeownership opportunities in VHDA Underserved Areas: (Roanoke/Lynchburg/Blacksburg and Southern Tier(Danville and surrounding counties).

Eligible Sponsors

Eligible applicants must be located in the Commonwealth of Virginia and serve Virginia residents. The following entities are eligible for the CHRP allocation:

• Local Governments
• Redevelopment and Housing Authorities
• Nonprofit Housing Organizations
• For-profit Developers/Sponsors

 Ineligible Applicants

• Organizations not based in and serving Virginia
• Individuals
• Entities or organizations that are not tax exempt under the federal Internal Revenue Code Section 501(C) 3

VHDA Mortgage Loan Parameters

Sponsors must partner with VHDA lenders to originate VHDA mortgage loan and allocations must be used to fund permanent home purchase mortgages to qualified VHDA 1st time homebuyers.  The interest rate will be determined at the time of reservation of funds.  The rate will be one (1) percent below the standard VHDA 1st time home buyer rate.  Loans must be reserved and locked-in by the end of the fiscal year December 30, 2019. No mortgage extensions will be offered for unused allocations.   Applicants will have to reapply during the next funding cycle.

Application Information

Applicants interested in this funding opportunity can apply electronically through www.vhdagrants.com.

• Applications will be reviewed by an internal committee, and final recommendations will be made for funding. Applicants responding to this funding announcement will be notified of their application outcome by May 1, 2018 (Subject to Change).

For additional information contact Monica Jefferson, Grant Programs Manager at monica.jefferson@vhda.com.