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About Portland observer. (Portland, Or.) 1970-current | View Entire Issue (Nov. 22, 1994)
P age A4 N ovember 22, 1994 • T he P ortland O bserver orttani» bseruer $8.5 Million Awarded For Affordable Housing The Oregon Housing and Community Services Department has awarded over S8.5 million in grants and tax incentives to 37 a ffo rd a b le housing projects throughout Oregon. “Quality af fordable housing is a critical need for many Oregonians, including children,"Governor Barbara Rob erts said, “These grants will help low income families, farmworkers, victims of domestic violence, the elderly and disabled to secure safe and affordable housing.” T hese aw ard s are the re su lt o f the Fall 1994 C o n so lid a te d F u n d in g C ycle th ro u g h w hich the D e p a rtm e n t o ffe rs a f f o r d a b le h o u sin g d e v e lo p e rs one a p p lic a tio n to access m u ltip le funding p ro g ram s. T his F u n d in g C ycle in clu d ed g ran ts from the O reg o n H o u s in g T ru st Fund of $ 1 ,259,352, O regon L en d ers Tax C re d its (O L T C ) fo r $3,5 5 2 ,1 7 1 in lo an s, In tern al R evenue S e r v ice (IR S ) Low Incom e H ou sin g T ax C r e d its (L 1 H T C ) o f $ 2 ,3 6 8 ,8 8 4 , H ou sin g and U rban D e v e lo p m e n t ( H U D ) H O M E fund g ran ts o f $ 2 ,5 8 8 ,6 0 9 , and H U D H E L P P rogram gran ts o f $ 1 7 0 ,0 0 0 . T o tal sp ending on affo rd a b le h o u sin g m ade p o ssib le by these g ra n ts is n e a rly $ 9 3 ,0 0 0 ,0 0 0 . L ev erage from the O reg o n H o u s ing T ru st Fund w as o v er 2 7 :1 . At its m onthly m eetin g , the S tate H ousing C o uncil ap p ro v ed th e larg er g ra n ts and co n c u rre d w ith the D e p a rtm e n t’s re c o m m e n d a tio n fo r a w a rd s fo r the b a la n c e o f the p ro je c ts. “ T here w ere m any d e se rv in g p ro je c ts w hich a p p lied fo r fu n d in g ,” said H ou sin g C o uncil C hairm an Russ D ale. ” 1 w ish we had the re so u rc es to fund them all. T hese p rojects have a great im pact on the a f fo rd ab le h o using need in O re gon” . As in the past, this funding cycle was heavily oversubscribed. Appli cations were reviewed by separate teams within the department for fi nancial feasibility, sponsor capacity, services offered, community support, and need for the units. “1 am proud of the Department for the work that PDC Contracts With Business Alliance To Aid Business Districts Seeking to bolster Portland’s business districts, the Portland De velopment Commission has entered into a contract with the Alliance o f Portland Neighborhood Business Associations (APNBA) to provide professional technical assistance to neighborhood business associa tions. The $30,000 contract will help Portland’s business associations in many fields, including association organizing, management, strategic planning, resource development and business district revitalization plan ning. “ With this contract, neighbor hood business groups will gam er some o f the sophisticated planning and management tools needed to thrive in today’s competitive mar ket place,” said Roger Jones, the A PNBA’s President. “Business districts are the back bone o f our local economy,” said Mark Clemons, PD C’s Director o f Economic Development. “The city will enjoy a stronger, job-creating economy if we have top quality business associations to serve small and large employers.” went into evaluating the applica tions,” said Baruti Artharee, depart ment Director, “The process was fair and objective, and the best possible projects were funded.” T he m oney w ill be used for new con stru ctio n , acquisition and re h a b ilita tio n by C om m unity D e v e lo p m e n t C o r p o r a tio n s , fo r- pro fit d e v e lo p e rs, and h o u sing a u th o ritie s. T he p ro je c ts serve a variety o f sp e c ia l needs gro u p s, in clu d in g low incom e w orking fa m ilie s, e ld e rly and d isa b le d perso n s, farm w orkers, victim s o f dom estic v io le n c e , and hom eless persons. The Department holds two Con solidated Funding Cycles each year, in the Spring and Fall. Oregon Hous ing and Community Services De partment is the state housing finance agency, providing financial and pro gram support to create and preserve opportunities for quality, affordable housing for low income Oregonians. The Department also administers federal and state anti-poverty, home less and energy assistance communi ty service programs. In specific, the c o n tra c t calls for the APNBA to: • publish a R esource G uide for business associations, providing a single-source reference for re sources available for healthy and effective associations; • publish new sletters that provide needed information about success ful business district operations and relevant business news; • help no few er th an six business associations with grants to im prove business districts, with a focus on Bureau o f Housing and C o m m u n ity D e v e lo p m e n t (BHCD) initiative grants in BHCD eligible areas; • help organize no few er than three business d istric ts in areas o f Port land currently lacking a business association; and, • p re p a re a Business D istrict Re vitalization R ep o rt to identify costs and benefits o f solutions to at least five issues facing business districts citywide. PDC is part o f an “ad hoc” team o f city agencies that worked with Portland’s 40- d 1 us business associa tions. Joining PDC on the city team are the Bureau o f Planning, the Bu reau o f Housing and Community D evelopm ent and the O ffice o f Neighborhood Associations. PDC is the city’s agency for Economic Development. Under the contract, local busi ness associations many use APNBA assistance to apply for grants to fi nance district improvements such as organizing businesses into a new association, planning physical or marketing improvements for an area, or improving the marketing or phys ical qualities o f the area. A pplications for grants are available through PDC and are due by December 1,1994. The city team will award the grants by the last day o f the year. The grant program was established by the ad hoc city team and is funded by $20,000 from the city General Fund. The APNBA is a coalition of most o f Portland’s business associ ations, formed last year to assist local business groups. Another aim o f the contract is the APNBA is to help the young organization become an effective force for enhancing busi ness district health in the city. Broad-Based 97 Percent Mortgage, Lowering Down Payment Fannie Mae (FNM/NYSE) announced it will greatly expand the availability of low down payment loans as well as help more low- and moderate- income people nationwide to qualify for a mortgage. “We are introducing products and additional risk management tools to address the need for low down payment lending in a comprehensive and coordinated way,” said Fannie Mae Chairman and C hief Executive Officer James A. Johnson. “Consis tent with the principles o f risk shar ing, targeted lending, and expanding opportunities, today we further ad dress the two major obstacles faced by first-time home buyers: a lack o f savings and a modest income.” To address potential home buy ers" lack o f accumulated funds. Fan nie Mae announced "Fannie 97,” a mortgage offered through the com pany’s Community Home Buyer’s program (CHBP) that will allow low- and moderate-income borrowers to HAP Receives Funding Good News For Two Resident- Based Programs With news o f full funding for a fifth year, the Housing Authority o f Portland (HAP) celebrates the success o f its Drug Elimination Grant Program. The one-year grant totals over $668,500, awarded from the Department o f Housing and Urban development (HUD). The funding amount is $131,300 higher than the 1994 grant o f 537,200. Augmenting the HUD mon ies will be m atching funds o f $ 1 2 5 ,1 6 7 from th e H o u sin g A ughority, M ultnom ah County S h e riffs Department and other local support agencies making the total program funding $793,667. “Over the past five years, HA P staff have made major efforts to provide support services to resi dents that will enable them to live safer, more productive lives,” said Denny West, HAP Executive Di rector. “The Drug Elimination Pro gram funds give us the chance to improve what we are already do ing and the extra money allows us to rerr\ove even more o f the barri ers that hinder people in being self sufficient. The yough Sports pro gram activities help young people to team to live and grow as healthy, educated citizens, free o f alcohol and other drug dependencies make a 3 percent down payment. The company said its first-year goal for this product would be $5 billion. To address potential home buy ers’ modest incomes, the company also announced the “ Start-Up M ort gage” - a 30-year, fixed-rate mort gage offering consumers a first-year monthly payment that is lower than a standard fixed-rate loan - tftqt will increase the number o f people able to qualify for this mortgage. Johnson emphasized that Fan nie M ae’s expansion o f low down payment loan products - known in the industry as high LTV (loan-to- value) lending -- is targeted specifi cally at home buyers with household incomes o f up to 100 percent o f their area’s median (with exceptions in designated higher cost areas), and who are otherw ise economically qual ified to own but lack enough savings for a larger down pay ment. “Our 97 percent LTV mortgage addresses the single biggest problem first-time home buyers consistently identify: having enough money for the down payment. We will work with approved seller/servicers who offer Fannie M ae's Com m unity Home Buyer’s Program to make this important product widely available,” Johnson said. “We also know there are poten tial home buyers who are good credit risks, who have some funds accumu lated for a down payment, but whose incomes keep them just out of reach o f homeownership. For these con sumers, the Start-Up Mortgage, with its interest-only payment in the first year and 5 percent down payment, allows them to qualify with lower payments and still have the benefit o f a fixed-rate mortgage,” Johnson said. As part o f Fannie M ae’s com prehensive strategy to expand the availability o f low down payment loans, the company said it will re quire a modest amount o f additional mortgage insurance on loans with down payments less than 15 percent. This additional mortgage insurance would match mortgage insurance lev els previously announced by Freddie Mac. The estimated increase -- $9 per month — wi 11 not affect a consum er’s ability to qualify for a mortgage, but will expand the com pany's abil ity to offer more consum er’s ability to qualify for a mortgage, but will expand the com pany’s ability to of fer more consumers with lower in comes access to higher LTV loans. For example, Fannie Mae esti mated that more than 50,000 fami lies could take advantage o f the Fan nie 97 in its first year - a significant expansion o f its commitment to low down payment lending. “Sharing the risk is the key both to maximizing homeownership op portunities and minimizing the risks for len d ers and h o m e o w n e rs,” Johnson said. “The net result for consumers is a wide-range o f low down payment loans that otherwise would not be available. For many, the Fannie 97 will provide their only opportunity to buy a home.” “ However, we intend to monitor carefully the performance o f the Fan nie 97. Ifover time, the performance o f this product warrants changes to safeguard the company against in creased credit risk, we will make them,” Johnson said. On October 11, in a speech at the Mortgage Bankers Association con vention in Boston, Johnson outlined principles that would guide the com pany in its approach to expanded high LTV lending. Today, Johnson said, “Our new initiatives are based on a sound analysis o f how Fannie Mae and the mortgage industry can expand access to families that need help buying a home. Fannie Mae will begin marketing the Fannie 97 and the Start-Up Mort gage immediately to its approved Com- r H. Frnncene Grewe Branch Manager Sales Representative Norwest Mortgage. Inc 825 NE Multnomahf Portland. OR 97211 Office 503-235-1940 FAX 503-235-1948 Pager 503-635-1622 ____________________________ / LISCENSED IN OREGON SINCE 1975 J.L.S. Lawn Service Singles & Seniors, I can help you! “ 1st Class Gaurantee” A-ZEBRA H. rmls George A. Hendrix MBA. GRI, Broker O Realty Inc. 300 NE Multnomah, Suite #16 Portland, Oregon 97232 munity Home Buyer’s Program lender and expects the loans to be widely available within 90 days. Consumers wishing more information on the Fan nie 97 or Start-Up Mortgage may call Fannie M ae’s Public Information Of fice toll-free at 1-800-7FANNIE (1- 800-732-6643). Monday - Friday, 9:00 a m. to 5:00 p.m. EST. * office: 503-335-0263 pager: 503-940-7721 * Estimates (503) 230-1390 • (Res.) 287-6837 A M k IV E R S A R Y ---------- Beginning With Our Martin Luther King Jr. Issue On Jan. 11, 1995 : a .# , = - y -
