Central Virginia Housing Organizations Receive $26.5 Million in Financing to Address Housing Needs

Twelve Central Virginia housing organizations are receiving good news and much needed funding for first-time homebuyers. The Virginia Housing Development Authority recently announced that it is allocating $26.5 million in low-interest financing to these groups to finance affordable homes in Central Virginia.

The allocations are funded through VHDA’s Sponsoring Partnerships and Revitalizing Communities (SPARC) program, which provides home loans to potential homebuyers through local governments, non-profit organizations, developers and redevelopment and housing authorities. The organizations then combine a variety of local, state and federal loan and grant programs to design a variety of financing options that meet the needs of buyers in their specific communities. Organizations that received SPARC funding are eligible to receive allocations at an interest rate of 1/2 to 1 percent below VHDA’s rate for first-time homebuyer programs.

In addition to providing customized home financing programs, SPARC funds also support VHDA’s strategic initiatives, including community revitalization and addressing the housing needs of seniors, minorities and those with disabilities.

Below is an overview of the Central Virginia organizations that received SPARC allocations and the programs they designed for the funding:

Better Housing Coalition has been awarded an allocation of $3 million to assist borrowers purchasing newly constructed homes in Richmond’s Neighborhoods In Bloom area of Church Hill and HOPE VI area of Blackwell. Resources will be available for downpayment and closing cost assistance.

Central Virginia Housing Coalition has been awarded an allocation of $2.5 million to assist borrowers purchasing newly constructed townhomes and existing single family detached homes in Caroline, Orange and Spotsylvania Counties. HOME funds will be available for downpayment to eliminate the need for mortgage insurance and builders will provide funds for closing cost assistance.

High Street Lofts, LLC has been awarded an allocation of $1 million to support community revitalization efforts within the City of Petersburg. The funds will be used to convert the former Seward Luggage Building into 24 residential condominiums. Real estate tax abatement as well as historic tax credits contribute to the building’s affordability. The developer will assist with closing costs.

Highland Park Community Development Corporation has been awarded an allocation of $1.5 million to assist borrowers purchasing new and existing homes in Richmond’s Highland Park community. HOME and Federal Home Loan Bank (FHLB) funds will be available for downpayment and closing cost assistance.

Housing Opportunities Made Equal, Inc. has been awarded an allocation of $2 million to assist borrowers purchasing existing homes in the Richmond area. Downpayment and closing cost assistance will be available. Partnership for Down Payment Assistance has been awarded an allocation of $500,000 to help borrowers purchasing new and existing homes in the Sussex County community.

Virginia Individual Development Accounts (VIDA) will be available for downpayment assistance. For borrowers participating in the HomeOptions program, downpayment assistance will be provided by Sussex County.

Petersburg Redevelopment and Housing Authority (PRHA) has been awarded an allocation of $2 million to assist borrowers purchasing new homes in the Van Buren Estates and Cedar Lawn neighborhoods of Petersburg. Existing homes may also be purchased in the cities of Petersburg, Hopewell, and Colonial Heights as well as the counties of Dinwiddie, Prince George, southern Chesterfield, Sussex, Surry and Greensville. Downpayment and closing costs assistance will be available. City employees purchasing a home may receive funds for second mortgage assistance.

Petersburg Urban Ministries, Inc. has been awarded an allocation of $500,000 to assist borrowers purchasing new homes in the Battersea section of Petersburg. Funds from the Department of Housing and Community Development (DHCD) as well as Local Initiatives Support Coalition (LISC), Home Depot, and an anonymous donation will enable the developer to sell homes at an affordable price. Homes will be energy efficient and Earthcraft certified.

Richmond Redevelopment and Housing Authority (RRHA) has been awarded an allocation of $2 million to assist borrowers purchasing quality affordable housing in Richmond’s Fulton Redevelopment Area. Homes will incorporate Green Building techniques to increase energy efficiency. HOPE VI second mortgages as well as downpayment and closing cost assistance will increase affordability. RRHA also received an allocation of $1.5 million. Residents currently residing in the units will have the first option to purchase the newly renovated homes. RRHA will offer second mortgages of up to $10,000 to assist with affordability and participants may participate in the VIDA program to assist with downpayment.

Southside Community Development & Housing Corp. has been awarded an allocation of $5 million to assist borrowers purchasing new and existing rehabilitated homes in the Neighborhoods in Bloom and Hope VI areas in Richmond. Borrowers purchasing a home in the Counties of Henrico and Chesterfield may also be eligible. Downpayment and closing cost assistance will be available.

Virginia Local Initiatives Support Corporation has been awarded an allocation of $1 million to support new construction in the neighborhoods of Rome Street/Westview/Birdville, Blandford, Battersea and Halifax Triangle. The City of Petersburg has donated lots to increase the affordability of the homes.

Vision Integration Services has been awarded an allocation of $4 million for expansion of the Genesis Project, a minority homeownership outreach initiative. Downpayment and closing cost assistance will be available for individuals enrolled in the VIDA program.

“We developed the SPARC program so that our housing partners could bring us customized programs that generally are not available from private lenders or through VHDA’s regular lending programs,” said Don Ritenour, VHDA’s managing director of development. “Our partners have the knowledge and direct insight into the unmet needs in their communities. They are in the best position to design programs that combine their local, state and federal funding with our SPARC monies to make every dollar count.”

Organizations submitted proposals to VHDA in April 2007. All proposals underwent an initial eligibility review and a subsequent competitive review process.

In addition to addressing local needs, the proposals needed to support some or all of VHDA’s homeownership goals including: helping provide loans to low-income households, diverse cultures, minority populations and persons with disabilities; encouraging the construction or rehabilitation of homes for accessibility and overall quality improvements; revitalizing communities; and meeting housing needs not met by traditional lenders.

Proposals that significantly support VHDA’s business goals received an allocation of funds at an interest rate of 1 percent below the rate for VHDA’s first-time homebuyer loan program, which at today’s rate would be 5.125 percent. Other allocations had an interest rate of ½ percent below VHDA’s first-time homebuyer rate. Exact rates are determined at the time of actual loan reservation.

VHDA’s SPARC program has allocated more than $730 million to housing organizations to encourage homeownership throughout Virginia since the program was created five years ago.

For more information about the SPARC program, contact one of the organizations listed above. Information can also be found on VHDA’s Web site at www.vhda.com or by calling 1-877-VHDA-123.

VHDA is Virginia’s housing finance agency. It is a self-supporting authority that issues bonds to raise private capital for its lending programs. VHDA provides consumers with low-interest rate loans to purchase or renovate homes. VHDA also lends money to developers for the development, rehabilitation and renovation of affordable apartments.