Funding Opportunity Announcement – November 2019

FY20 Sponsoring Partnerships and Revitalizing Communities Program (SPARC)

Program Overview

The Sponsoring Partnerships and Revitalizing Communities Program (SPARC) 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. SPARC lowers loans one (1) percent lower than VHDA’s published first-time homebuyer rate.

SPARC funding will support local efforts of increasing homeownership opportunities through three programmatic priorities; Underserved Markets, VHDA’s Rural Housing Areas, and Community Revitalization 

Available Awards

Allocation awards will range from a minimum of $100,000 to a maximum of $8,000,000.

Performance Period

The award period will be from February 1, 2020 - June 30, 2021.

Program Goals

SPARC funding will support local efforts of increasing homeownership opportunities through three programmatic priorities;

1. Underserved Markets
2. VHDA’s Rural Housing Areas
3. Community Revitalization

 1.      Underserved Markets:

• Increasing Housing Opportunities of Minorities and Diverse Cultures
• VHDA’s Underserved Regions: Underserved markets include Northern Tier, Charlottesville, Roanoke/Lynchburg/Blacksburg and Southern Tier (Danville and surrounding counties).
  • Charlottesville-Central Valley: Albemarle County, Augusta County, Bath County, Buena Vista City, Charlottesville City, Fluvanna County, Greene County, Harrisonburg City, Highland County, Lexington City, Nelson County, Rockbridge County, Rockingham County, Staunton City, Waynesboro City
  • Northern Tier: Alexandria City, Arlington County, Caroline County, Clarke County, Culpeper County, Essex County, Fairfax City, Fairfax County, Falls Church City, Fauquier County, Frederick County, Fredericksburg City, King George County, Loudoun County, Madison County, Manassas City, Manassas Park City, Orange County, Page County, Prince William County, Rappahannock County, Richmond County, Shenandoah County, Spotsylvania County, Stafford County, Warren County, Westmoreland County, Winchester City
  • Roanoke-Blacksburg-Lynchburg: Alleghany County, Amherst County, Appomattox County, Bedford County, Botetourt County, Campbell County, Covington City, Craig County, Floyd County, Franklin County, Giles County, Lynchburg City, Montgomery County, Pulaski County, Radford City, Roanoke City, Roanoke County, Salem City
  • Southern Tier: Bland County, Bristol City, Brunswick County, Buchanan County, Carroll County, Charlotte County, Danville City, Dickenson County, Emporia City, Galax City, Grayson County, Greensville County, Halifax County, Henry County, Lee County, Lunenburg County, Martinsville City, Mecklenburg County, Norton City, Patrick County, Pittsylvania County, Russell County, Scott County, Smyth County, Tazewell County, Washington County, Wise County, Wythe County

 2.      VHDA’s Rural Housing Areas:

• Eligible 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
• Eligible Cities: Buena Vista city, Covington city, Danville city, Emporia city, Franklin city, Galax city, Lexington city, Martinsville city, Norton city

 3.      Community Revitalization:

• Neighborhood Revitalization: eligible properties for SPARC funding should include rehabilitation and/or new construction of quality affordable housing in an area formally designated by the local governing body under at least one of the following categories:
  • Areas designated under Title 36 of the Code of Virginia in accordance with one of the following a) Section 36.51; b) Section 36-49.1 or c) Section 36-52.3.
  • A Neighborhood Revitalization Strategy Area (NRSA) designated in a locally adopted, HUD-approved plan as part of a jurisdiction's CDBG program and contained in the local Consolidated Plan for Housing and Community Development or addendum.
  • Areas identified as State Enterprise Zones by the Virginia Department of Housing and Community Development
• Neighborhood Stabilization Program: Entities that have been awarded funding to stabilize existing neighborhoods, by purchasing foreclosed and abandoned properties, rehabilitating them and reselling them to low-moderate- and middle-income families through the following activities: 
  • Acquisition of foreclosed and abandoned residential properties
  • Rehabilitation of residential properties.
  • Obtaining a mortgage and sale of house to new a homebuyer
• Opportunity Zones
  • Economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment.
  • Virginia’s Opportunity Zones: : https://www.cdfifund.gov/Pages/Opportunity-Zones.aspx

Program Eligibility

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

1. Be physically located in Virginia.
2. Provide single-family detached, attached and/or condominium units.
3. 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.
4. The properties must expand or preserve the stock of quality affordable housing units. 

Terms and Conditions

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

Eligible Sponsors

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

• Local Governments
• Redevelopment and Housing Authorities
• Nonprofit Housing Organizations

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 June, 30 2021. 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 January 30, 2019 (Subject to Change).