While affordable housing has long held an important place on the federal government's policy agenda, budget cutbacks in recent years have forced the government to turn over many housing responsibilities to the states. Housing finance agencies (HFAs) have been created by states to issue tax-exempt bonds to finance mortgages for lower-income first-time home buyers and to build multi-family housing.
States are involved in a host of initiatives throughout the broad spectrum of housing finance and development. Interim construction financing programs which can reduce the basic costs of lower-income housing projects have been initiated in a number of states, together with innovative home ownership programs and programs directed toward rehabilitation and improved energy conservation.
States are also venturing into areas which have not received as much public sector attention until recently. By encouraging non-traditional types of housing, such as accessory units, shelters, and single room occupancy housing, states are addressing important elements of the housing market.
In Colorado, the state Housing and Finance Authority (CHFA) has issued more than $2 billions of bonds and notes since its establishment in 1973, providing housing for more than 33,000 families and individuals of low and moderate income; 19,000 first-time home buyers and over 14,500 rental housing units. In recent years the state has broadened CHFA's authority to allow it to develop finance programs to assist the growth of small business, help exports with insurance on goods sold overseas, and similar projects this is to stop foreclosures.
Maryland operates 25 programs, including those to help people with closing costs and settlement expenses. It also has special funds available for the elderly and is developing an emergency mortgage fund to help people who have fallen behind in their payments aiding them to stop future foreclosures. Non-profit developers can also tap the state for money to build low-cost rental units.
Among Michigan's 29 programs and Minnesota's 25 are several for neighborhood revitalization. Minnesota also offers programs targeting the needs of urban Indians and migrant farm workers. Alaska, Oregon and Vermont offer financing for tenant acquisition of mobile home parks.
Funds are also available for persons who take steps to make their homes more energy efficient, for home owners and landlords who remove lead paint from dwelling units, for houses without plumbing or those with plumbing that is dysfunctional, for handicapped persons, and to help landlords defray the costs of bringing low-income housing into compliance with state and local housing codes. There are also funds for non-profit organizations to acquire or renovate existing houses and apartments for use as group homes for special needs such as mentally retarded.
In many states, elderly home owners can look to the HFA to obtain financing and/or support services they need to remain in their homes and avoid institutionalization. Some of the states have more than one agency dedicated to housing and we have attempted to list them all here. Also, many cities and counties have quasi-federal/quasi-local "housing authorities" with additional programs. Check your local government listings for these.
Neil
1 Response to "State Money For Housing"
This article is very timely and relevant. As I quote Cameron Muir, an economist, "Home sales are unlikely to fall much further..That being said we expect home sales not to decline much further."
But it's never too late, with the right business plan set up, it will lead to valuable outcome. This is what most counselors would give as an advise.