Hampton Roads Housing Organizations Receive $61.6 Million in Financing to Address Housing Needs

Twenty-seven Hampton Roads 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 $61.6 million in low-interest financing to these groups to finance affordable homes in the Hampton Roads area of 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 Hampton Roads organizations that received SPARC allocations and the programs they designed for the funding:

Bay Aging has been awarded an allocation of $1 million to assist borrowers purchasing new and existing affordable homes within their service area. HOME funds and Federal Home Loan Bank (FHLB) funds will be available for downpayment and closing cost assistance.

Beacon Light Community Housing Development Incorporation (CHDO) has been awarded an allocation of $500,000 to assist borrowers purchasing new homes in the Southside of Norfolk. HOME funds, American Dream Downpayment Initiative (ADDI) and HOPE VI resources will be available for downpayment and closing cost assistance.

Carters Grove, LLC has been awarded an allocation of $2.5 million to assist borrowers purchasing new townhomes in the Pocahontas Square subdivision, single-family detached homes and townhomes in the Michelle Point subdivision of James City County. Forgivable second and third mortgages as well as reduced sales prices of units increase affordability of units. Green Building techniques will be incorporated to ensure energy efficiency.

Center for Community Development, Inc. has been awarded an allocation of $400,000 to assist borrowers purchasing new and rehabilitated homes in areas of Brighton, Prentis Park and Stuart Gardens. HOME funds will be available as forgivable second mortgages to increase affordability.

Chesapeake Redevelopment and Housing Authority has been awarded an allocation of $2 million to assist borrowers purchasing new townhomes in the Campostella Square Development Revitalization Strategy Area as well as homes throughout Chesapeake. HOME and FHLB funds will be available for downpayment and closing cost assistance. Assistance of up to $35,000 will be available for very-low income households.

Chesapeake Homes has been awarded an allocation of $1 million to assist borrowers purchasing new condominiums in Suffolk, Hampton, Portsmouth and Virginia Beach. Closing cost assistance will be available and the originating lender and settlement agent will provide a discount for their services.

City of Norfolk has been awarded an allocation of $5 million to assist borrowers purchasing new and existing homes throughout the City of Norfolk. Priority will be given for purchases of homes located in designated revitalization and conservation areas. Funds will be used to support the Norfolk Now Home Ownership Program. HOME funds will be available for downpayment assistance.

Community Housing Partners has been awarded an allocation of $3 million to assist borrowers purchasing new, renovated and existing homes throughout the Commonwealth. HOME, Federation of Appalachian Housing Enterprises (FAHE) and FHLB funds will help increase affordability.

County of York has been awarded an allocation of $1 million to assist borrowers purchasing new and existing homes in the County of York. Resources will be utilized to support the revitalization efforts in the Lackey neighborhood. Homebuyers may utilize Housing Choice Vouchers to increase affordability. Downpayment and closing costs assistance will also be available through the Family Self-Sufficiency (FSS) and Virginia Individual Development Accounts (VIDA) programs.

Dragas Associates, Inc. has been awarded an allocation of $3 million to assist borrowers purchasing new homes in the cities of Virginia Beach and Chesapeake. Downpayment assistance will be provided through the Ameridream program and closing cost assistance may also be available from the developer.

First Home Properties, LLC has been awarded an allocation of $1 million to assist borrowers purchasing modular homes on infill lots in the Southeast community of Newport News, Prentis Park in Portsmouth and Oakdale Farms in Norfolk. Homes will be priced below current market prices. HOME and FHLB funds will be available for downpayment and closing cost assistance.

Franciscus Homes, Inc. has been awarded an allocation of $1.5 million to assist borrowers purchasing Bridgewater condominiums at Eagle Harbor in the Isle of Wight County. Sales prices of the condominiums are discounted by 20 percent to support the Isle of Wight workforce housing initiative. Closing costs assistance will be available.

Gateway at SoNo Development, LLC has been awarded an allocation of $3 million to assist borrowers purchasing homes in the mixed-use/mixed-income development located in the revitalization area of South Norfolk in the City of Chesapeake. Chesapeake Redevelopment and Housing Authority will provide HOME funds for downpayment and closing cost assistance.

Hampton Redevelopment and Housing Authority has been awarded an allocation of $2.5 million to assist borrowers purchasing new and existing homes throughout the City of Hampton. Downpayment and closing cost assistance will be available. Hampton RHA has also been awarded an allocation of $2 million to support and expand the development of homes on parcels in the communities of Olde Hampton and Pasture Point. Community Development Block Grant (CDBG) funds were utilized to acquire the lots. HOME funds will be available for downpayment and closing cost assistance.

Hampton Roads Planning District Commission has been awarded an allocation of $3 million to assist borrowers purchasing new and rehabilitated homes throughout Planning District #23. The homes cost from $85,000 to $200,000 and are part of a region wide effort to reduce the homeownership gap. HOME and FHLB funds will be available for downpayment and closing cost assistance.

James City County has been awarded an allocation of $5.5 million to assist borrowers purchasing new townhomes and single-family detached homes located in the New Town, Inbound Square, Liberty Crossing and Chestnut Grove communities. HOME funds as well as soft second mortgages provided by James City County will eliminate the need for mortgage insurance for eligible borrowers.

Malachi House International has been awarded an allocation of $250,000. Malachi House will renovate properties in the Newport News area and offer these affordable homes to first time homebuyers. HOME funds will be utilized for the rehabilitation of the properties.

Metro Housing Group has been awarded an allocation of $2.5 million to assist borrowers purchasing renovated condominiums in the mixed income community of Park Place. Norfolk Redevelopment and Housing Authority (NRHA) will provide HOME funds for downpayment and closing costs assistance.

Newport News Redevelopment and Housing Authority (NNRHA) has been awarded an allocation of $3 million to assist borrowers purchasing existing homes in the City of Newport News. FHLB funds will be available for downpayment and closing costs. CDBG funds will be available to borrowers purchasing homes in the Southeast Community. NNRHA has also been awarded an allocation of $1 million to support the revitalization of the Madison Heights Neighborhood. NNRHA is providing CDBG funds for acquisition, demolition and relocation costs. HOME, ADDI, FHLB funds, and deferred soft second mortgages will be available.

Norfolk Redevelopment and Housing Authority has been awarded an allocation of $5 million to assist borrowers purchasing new homes in the Park Place, Berkley, Central Brambleton, Lamberts Point, Huntersville and Ballentine Place Neighborhoods and existing homes throughout the City of Norfolk. Downpayment and closing cost assistance will be available. NRHA has also been awarded an allocation of $3 million to assist borrowers purchasing existing homes in the redevelopment and conservation areas in the City of Norfolk. New homes in Coronado Place and Rivers Edge will include land subsidies to increase affordability.

Park Place Redevelopment Foundation Community Housing Development Organization has been awarded an allocation of $500,000 to assist borrowers purchasing new homes on infill parcels throughout the Park Place Planning District. HOME and HOPE VI funds will be available for downpayment and closing costs assistance.

Plumb Line Ministries has been awarded an allocation of $500,000 to assist borrowers purchasing new homes in the Central Brambleton neighborhood in inner city Norfolk. HOME funds for downpayment and closing costs will be available. Very-low income homebuyers will be eligible to receive up to an additional 15 percent as a forgivable third mortgage through NRHA’s HOPE VI program.

Portsmouth Redevelopment and Housing Authority has been awarded an allocation of $3 million to assist borrowers purchasing new homes in the Brighton and Westbury neighborhoods and existing homes throughout the City of Portsmouth. Three universal design homes will be built in the Brighton area in partnership with the Tidewater Builders Association and YouthBuild.

Suffolk Redevelopment and Housing Authority has been awarded an allocation of $1 million to assist borrowers purchasing new homes in the Hall Place neighborhood, as well as exiting homes throughout the Suffolk area. HOME funds and FSS resources will be available for downpayment and closing cost assistance.

Tony London & Associates, Realtors has been awarded an allocation of $1 million to assist borrowers purchasing condominiums located in the Euwanee Park, Park Place and Ghent neighborhoods in the City of Norfolk. Discounts for appraisal, closing and title insurance fees will be offered. HOME funds through NRHA will be available for downpayment and closing cost assistance.

TowneBank Foundation has been awarded an allocation of $1 million to assist borrowers purchasing newly constructed or renovated properties in the TowneBank service area. FHLB funds will be available for downpayment and closing costs assistance.

Virginia Beach Community Development Corporation has been awarded an allocation of $2 million to support the citywide initiative to purchase and rehabilitate government-foreclosed homes, as well as construct new affordable homes on infill lots. The City of Virginia Beach will provide HOME funds for downpayment and closing cost assistance.

“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 awarded 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.