Coming July 1st!
The CalPLUS FHA first mortgage will also have ZIP Extra, with an extra $6,500 in down payment assistance.
Fannie Mae's Adverse Market Delivery Charge will no longer be required. That's a savings of 0.25% on every Conventional first mortgage.
Summer 2015, Volume 25
Executive Director's Message
As I look at the calendar and notice that it's already June 2015 a well-known adage comes to mind: "time flies when you're having fun." If that holds true, we must sure be having fun here at CalHFA. Although, my definition of fun may differ from yours, I couldn't be happier knowing that CalHFA has made a positive difference in so many lives in just the past several months.
First, I'd like to share with you that the legislature has confirmed my appointment to the position of Executive Director of the California Housing Finance Agency. I am thrilled and committed to be able to move forward the mission of the agency, to create and finance progressive housing solutions so more Californians have a place to call home.
CalHFA's management team has been hard at work developing our strategic business plan for the upcoming fiscal year. The plan aligns lending activities with state housing policy and increases operational efficiencies so that we are able to provide more affordable housing options to more Californians.
In celebration of Homeownership Month, June 2015, I'm happy to report that our Single Family division has charged back into the mortgage loan market, offering a number of first mortgage and down payment assistance options to assist homebuyers. Even though it's a whole new game out there, we have been innovative and solution-oriented in developing our current offering of programs. With these new options, Single Family is on track this fiscal year to provide affordable financing to more than 1,200 families so they can have a place to call home. We expect that number to increase as we look forward to our next fiscal year.
In our Multifamily division we have released products like the Conduit Issuer program that will help affordable housing developers access tax-exempt and taxable bond funds to aid in the preservation and development of affordable housing projects throughout California.
Additionally, we were awarded $24 million from HUD's Section 811 Project Rental Assistance to provide affordable housing for non-elderly, disabled Californians living in residential care facilities so that they can improve their quality of life by becoming more independent and more involved with the community. I'm pleased to announce that California was the first in the nation to house residents under this program.
Finally, I'm very excited to announce that as of June 22, our entire northern California staff is once again housed in a single building here at 500 Capitol Mall. The Loan Servicing Division has moved back from West Sacramento, and having all Northern CA staff in one location will both save us money and improve our service.
Please take a moment and read more about these subjects and other ways that we're having fun here at CalHFA in this edition of Housing Matters.
Tia Boatman Patterson
Executive Director, CalHFA
Single Family Celebrates Homeownership Month
June is National Homeownership month, and we'll be celebrating its close with a significant addition to our CalPLUS FHA first mortgage loan. Beginning on July 1, the FHA will join its Conventional cousin by adding the ZIP Extra down payment assistance to its already ample assistance package.
ZIP Extra will be included automatically for all first-time homebuyers who use the CalPLUS FHA loan. In addition to the 3.5% down payment assistance included with the existing ZIP, first-time homebuyers can now receive an additional $6,500 in down payment or closing cost assistance, all at a zero-percent interest rate.
This means that first-time homebuyers can finally receive a meaningful amount of down payment and closing cost assistance with their FHA loan. So many renters have a steady job and good credit score, but just haven't been able to save up the funds for the down payment demanded by the private market. With ZIP Extra and the CalPLUS FHA loan, the ability to make payments means buyers can have the ability to purchase a home.
We are constantly improving our product offerings to stay current with the needs of low to moderate income homebuyers. Keep watching calhfa.ca.gov for more exciting announcements.
California First in Nation to House Disabled Residents through Section 811 Funding
The United States Department of Housing and Urban Development's Deputy Secretary, Ben Metcalf, joined CalHFA and local officials in celebrating the successful implementation of the California Section 811 Project Rental Assistance program. The program, funded by HUD, allows disabled people, age 18-61, to live in their own apartment rather than a nursing home or another institution, provides the support and services they need and reduces costs when compared to that of a long-term care facility. The program is facilitated through a collaborative effort of five state agencies, the California Housing Finance Agency, the Department of Housing and Community Development, the Department of Health Care Services, the Department of Developmental Services and the California Tax Credit Allocation Committee.
Mr. Metcalf met with Garden Village Section 811 residents, representatives from the developer, Sacramento County Supervisors, service providers, state partner agencies and other guests. Activities included tours of two of the residences belonging to Cheryl and Christine, who were happy to share how they are thriving independently in their new community.
The event was held in early May at Garden Village apartments in Sacramento, the first project in the country to house disabled residents with the new Section 811 funding. Domus Development acquired and rehabilitated the property that suffered from crime, mold damage, and severe disrepair. Now, the community is family-friendly and offers 195 affordable apartments, with 11 units set aside for Section 811 residents.
A little bird told me about… The New Conduit Issuer Program
Shortly after the April launch of the new CalHFA Conduit Issuer Program, the tweets began. Positive, interested and excited messages about the new program fluttered about. This program offers tax-exempt and taxable mortgage revenue bond issuance for projects across California.
The Conduit Issuer Program is another option for developers that are interested in increasing and preserving the supply of affordable rental housing. CalHFA hopes this new program will ensure the ongoing development and preservation of quality housing units by leveraging private sector funds to the greatest extent possible in cooperation with local jurisdictions to advance affordable housing.
Bond proceeds originating from the Conduit Program can be used to construct new affordable and mixed-income multifamily projects or acquire and rehabilitate existing multifamily projects to create or preserve affordability. The interest rate on the loans financed through the bond proceeds will vary depending upon market conditions at the time of issuance, the type of bond structure, and lender requirements. The debt is repaid from project revenue, collateralized by the underlying property and other guarantees, and may be credit enhanced for public sale or privately placed with institutional investors. CalHFA retains no obligation for repayment of the bonds issued through the Conduit Program.
To find out more about the Conduit Issuer Program, visit our website at www.calhfa.ca.gov.
What are people tweeting about the program?
SDHF @SDHFtweets Apr 28
New #CalHFA program offers bond funding for affordable multifamily rental housing. #ConduitIssuer #AffordableHousing http://ow.ly/LyUYa
@bialav: New State program may create more affordable multi-family rental housing in California. http://ow.ly/Lwa9h
Justin Cooper @ohsjustincooper Mar 10
@CalHFA conduit term sheet on the street! http://www.calhfa.ca.gov/multifamily/conduit/CIPTermSheet.pdf… #affordablehousing #LIHTC
Welcome Don Cavier!
Recently-appointed Chief Deputy Director, Don Cavier, found some time to talk about his path to CalHFA.
Originally hailing from Glenn County, Cavier knows several sides of affordable housing. Raised by a single mother and living in a single-wide manufactured home for most of his childhood, the family moved to Redwood City when Cavier was 12. After living in a rent-controlled apartment there, Cavier graduated from UC Davis and began working in the mortgage industry as a mortgage underwriter for single family and multifamily loans.
Shifting into internal auditing, Cavier audited lending operations for a wide array of financial services products including single family wholesale and retail mortgage products, SBA loans, home improvement loans, student loans and automotive finance. Cavier's professional titles include licensed real estate broker, Certified Internal Auditor and Certified Financial Services Auditor.
Using his private sector and auditing expertise, Cavier joined the Sacramento Housing and Redevelopment Agency 17 years ago and spent the last eight years as the Director of Finance. After his time in local government, Cavier wanted to use his knowledge of public finance and affordable housing to promote affordable housing opportunities for people throughout the state, and CalHFA was a great opportunity to do just that.
When we caught up with Cavier, he talked about his experiences working across all departments in an organization, from frontline production departments to the back office administrative departments.
"I have learned that an organization's success and long term stability are often the direct result of the more intangible work performed by the various administrative departments. I have a great respect and appreciation for the work of the administrative units within the organization. Departments like Fiscal Services, Legal, Budget, Human Resources, Financing, Loan Servicing, Business Services, IT, Marketing, etc. are the glue that holds the organization together."
As a result, Cavier believes that the best organizations have a healthy balance between production and support and he intends to promote that balance during his time with CalHFA. While Cavier admits that absorbing the volumes of information concerning current business operations, legacy issues and external partnerships is a challenge, he hopes to build relationships both internally and externally and guide resource allocation to promote delivery of the goals established in the Agency's Business Plan.
Building Industry Association: @bialav: New State program may create more affordable multi-family rental housing in California.
Yahoo Finance: CalHFA Announces Details of 2015 Mortgage Credit Certificate Program
Commercial Appraiser: @AppraiserCommer Lenders Now Have 24-hour Access to CalHFA Webinar Training
HUD Pacific: @HUDPacific Supportive and affordable housing for people with disabilities… It works! @RyanHarrisKFBK1 @CalHFA @kfbk
Ryan Harris KFBK: @RyanHarrisKFBK1 South Sac apt complex turned from drug den to place disabled people can afford to live @CalHFA @HUDPacific @KFBK
HSH.com: @HSHassociates #California has 8 #homebuyer assistance #programs. How does your state compare? http://bit.ly/1cDZXVj @CalHFA
HousingOnline.com: @HousingOnline New program from @CalHFA boosts access to bonds http://ow.ly/LjxKL
Nelson Sanchez: @ns63nj Great 1st time buyer program- Conventional 97% loan: - 3% 2nd TD, @CalHFA
Jondi Gumz: @jondigumz New program @CalHFA to help developers access bond funds to build #affordablehousing. Help for #SantaCruz? #scsnews
Robert Rivera Real Estate 101 California Association of Realtors President Chris Kutzkey speaks on the importance of CalHFA financing for homebuyers. https://youtu.be/uldFhJdaY28
CALIFORNIA ASSOCIATION OF REALTORS® C.A.R. President Chris Kutzkey takes a minute to ham it up while shooting a video for CalHFA. Finance.car.org #carealtors #FinanceHelpline #homeownership
Misty Leonard & Lori Rothenberg Guild Mortgage Team via Guild Mortgage, Morgan Hill Office: Even though home prices are going up, we have zero down payment options for you. Give us a call!
Sharon Boatwright: Congratulations Mr And Mrs G. It has been a pleasure to represent your family on the purchase of your new home and CalHFA CalPlusZIP Extra + Extra Credit Teacher loan program. WOW.. What a program!!