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  Funding Opportunity Details
 308731-FY25 Sponsoring Partnerships and Revitalizing Communities Program (SPARC)
 
  Homeownership Market Support
  Application Deadline: 05/31/2024 11:59 PM
 
 
Award Amount Range: $5,000.00 - $5,000.00
Project Start Date: 07/01/2024
Project End Date: 06/30/2025
Award Announcement Date: 06/28/2024
Program Officer: Frank Curbeira
Phone: 804-343-5818 x
Email: Frank.Curbeira@virginiahousing.com
 
Maximum Status Report Approval Levels   
 
 
Description
 
 

Funding Opportunity Announcement – May 2024

FY25 Sponsoring Partnerships and Revitalizing Communities Program (SPARC)

Program Overview

The Sponsoring Partnerships and Revitalizing Communities Program (SPARC) targets Virginia Housing’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 the interest rate on Virginia Housing’s first mortgage loans by one (1) percentage point from Virginia Housing’s published first-time homebuyer rate.

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

Available Awards: Allocations will range from a minimum of $200,000 to a maximum of $8,000,000.

Performance Period: The award period will be from July 1, 2024 - June 30, 2025.

Application Announcement

May 10, 2024

Webinar: Application How to

https://virginiahousing.webex.com/weblink/register/r78e58a495fdfe75a53f48f6feb7451b6

Application Due Date

May 31, 2024

Award Announcements (subject to change)

July 15, 2024

Program Goals

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

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

Reference the Program Handbook for Program Priorities details.

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. (includes Community Land Trust)
  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 Virginia Housing property guidelines.
  4. The properties must expand or preserve the stock of quality affordable housing units.

 

In order to be eligible for an allocation of SPARC funding borrowers must receive both homebuyer education and housing counseling from a HUD approved Housing Counseling organization.

 

Education is defined as formal classes, with established curriculum and instructional goals, provided in a group, classroom setting, or virtual (online) format, covering , but not limited to budgeting, credit, qualifying and applying for the right loan, fair housing, choosing the right home, loan closing, importance of the home inspection. Eligible classes: Virginia Housing’s homebuyer education class (In-person or Online) or a class taught by a HUD Approved housing counseling agency.

 

Counseling is described as counselor-to-client assistance that addresses unique financial circumstances and housing issues, and focuses on overcoming specific obstacles to achieving a housing goal such as repairing credit, addressing a rental dispute, purchasing a home, locating cash for a down payment, raising awareness about critical housing topics such as predatory lending practices, fair lending and fair housing requirements, finding units accessible to persons with disabilities, avoiding foreclosure, or resolving a financial crisis.

 

Counseling must include

  1. Budget/Financial Analysis. A review of the client's income, expenses, spending habits, and use of credit in order to evaluate their unique financial situation relative to their housing needs.
  2. Housing Analysis. A review of the client’s housing needs, current housing quality, and housing affordability relative to their financial capability.
  3. Action Plan. The housing counselor and the client must establish an action plan that outlines actions the housing counseling agency and client will do in order to meet the client’s housing goals and, when appropriate, addresses the client’s housing problem(s).
  4. Discuss Alternatives. Identify and discuss with the client at least three (3) alternatives or options available to the client, including Federal Housing Administration (FHA) programs and products if applicable, relevant to the specific housing need.
  5. Follow-up. Efforts made by the counselor to have follow-up communication with the client, to ensure that the client is progressing toward his or her housing goal(s), to modify or terminate housing counseling services, and to determine and report outcomes.

Terms and Conditions

Sponsors must reference SPARC Program Guidelines found https://www.virginiahousing.com/partners/lenders/guidelines, for updates to eligible products, purpose and restrictions.  

 

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

 

Virginia Housing Mortgage Loan Parameters

Sponsors must partner with Virginia Housing lenders to originate Virginia Housing mortgage loan and allocations must be used to fund permanent home purchase mortgages to qualified Virginia Housing 1st time homebuyers.  The interest rate will be determined at the time of reservation of funds.   SPARC lowers the interest rate on Virginia Housing’s first mortgage loans by one (1) percentage point from Virginia Housing’s published first-time homebuyer rate.  Loans must be reserved and locked-in by the end of the fiscal year June 30th. 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 July 15th (Subject to Change).

 
 
 
 Attachments
 
 Click on the File Name to open attachment
 
Description File Name File Size
SPARC Application User Guide SPARC Application_User Guide.pdf 1.2 MB
SPARC Handbook SPARC Handbook.pdf 288 KB
 
 
 Website Links
 
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 Virginia Housing
 
 
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