Thread Options
#2113838 - 01/11/17 04:26 PM Affordable Housing
cowgirlsrule Offline
100 Club
Joined: Jul 2014
Posts: 194
Arkansas
What do you need in the loan file to document affordable housing to LMI?

Can you use the following calculation versus the amount of rent being offered by the Multi-Housing Complex?

AMI x 50% = Low Income
AMI x 80% = Moderate Income
Divide by 12 = monthly income
Multiply by 30% = affordable house costs per month

Do you need documentation in file of other Multi-Housing complex rent fee for comparison?

Do you have a worksheet for documentation?

Return to Top
CRA
#2113989 - 01/12/17 03:28 PM Re: Affordable Housing cowgirlsrule
Pale Rider Offline
10K Club
Pale Rider
Joined: Aug 2002
Posts: 34,318
under the Lone Star
Looks good to me cowgirl. I do not believe you need other rent comparisons.
_________________________
Societies that do not find work in and of itself "pleasing to God and requisite to Man," tend to be highly corrupt.


Return to Top
#2115099 - 01/23/17 03:12 PM Re: Affordable Housing cowgirlsrule
wblewis935 Offline
Member
Joined: Feb 2011
Posts: 53
What kind of information should I present in the following scenario;

Approved loan to a housing authority to renovate former hotel with tax credit financing for affordable housing. The renovation hasn't started, so there aren't any rent roles. I do, however, have documentation from the HA that shows 100% of their current clients in other housing developments are LMI. This is the first loan of this nature I have come across (only been CRA officer for about 8 months now), so I wasn't sure what kind of documentation would suffice. Do I need to ask the HA what the proposed rent roles are for the complex?

I should also add that the loan officer isn't much help. CRA is outside of his interest and he doesn't usually care to provide very much information. I guess that he thinks that is exclusively on me to gather that kind of info.... So, I think I'm going to have to reach out to the housing authority or the loan assistant directly for this one.

Any ideas or guidance would be great.

Return to Top
#2115277 - 01/24/17 03:08 PM Re: Affordable Housing cowgirlsrule
cowgirlsrule Offline
100 Club
Joined: Jul 2014
Posts: 194
Arkansas
Thank you!

Return to Top
#2115314 - 01/24/17 05:15 PM Re: Affordable Housing cowgirlsrule
Pale Rider Offline
10K Club
Pale Rider
Joined: Aug 2002
Posts: 34,318
under the Lone Star
lewis935 - show the examiners the tax credit financing deal sheet. It (the housing authority) has as its purpose and mission affordable housing - case closed!
_________________________
Societies that do not find work in and of itself "pleasing to God and requisite to Man," tend to be highly corrupt.


Return to Top
#2115483 - 01/25/17 04:15 PM Re: Affordable Housing cowgirlsrule
cowgirlsrule Offline
100 Club
Joined: Jul 2014
Posts: 194
Arkansas
So I'm new to CRA is this (Tax Credit Financing deal sheet) something our LO should obtain and/or have as a part of their underwriting?

Return to Top
#2115498 - 01/25/17 05:10 PM Re: Affordable Housing cowgirlsrule
Pale Rider Offline
10K Club
Pale Rider
Joined: Aug 2002
Posts: 34,318
under the Lone Star
Sorry, I am referring to the credit memo, underwriting memo, whatever the bank has to evidencing a loan to a Housing Authority. It is a slam dunk CD loan.
_________________________
Societies that do not find work in and of itself "pleasing to God and requisite to Man," tend to be highly corrupt.


Return to Top
#2116821 - 02/02/17 08:47 PM Re: Affordable Housing cowgirlsrule
KelliD Offline
Member
Joined: Jun 2015
Posts: 62
After calculations you find the rents are lower than the affordable house costs per month then this would count as affordable housing?

Return to Top
#2141377 - 08/09/17 04:02 PM Re: Affordable Housing cowgirlsrule
Banker75 Offline
Member
Joined: Oct 2015
Posts: 93
I need some clarification when performing my calculations for affordable housing. Do I use the Estimated MSA/MD Median Family Income or the Estimated Tract Median Family Income when calculating?

Return to Top
#2164703 - 02/15/18 05:02 PM Re: Affordable Housing cowgirlsrule
Norman Paperman Offline
Diamond Poster
Norman Paperman
Joined: Aug 2012
Posts: 1,656
48.934476, -114.343735
Howdy folks. I'm working on trying to put together an affordable housing case (after loan booking- imagine that). So, using the math in the top post, I can get those figures but is there any guidance saying those rents should apply to a 1-4, studio, micro, etc?

I have a property that has been rehabbed and offers affordable rates (imo) but 1/3 of those are micro and studio units.
_________________________
Maybe you just wanna fly the plane yourself. Well good luck pressing take off, then auto pilot, then land.


CRCM

Return to Top
#2164901 - 02/16/18 03:33 PM Re: Affordable Housing cowgirlsrule
RR Jen Offline
Power Poster
RR Jen
Joined: May 2003
Posts: 3,759
Running and riding everywhere ...
The FRB examiner I worked with last summer used HUDs FMR. It has rates for efficiency, one, two, three, and four bedroom units.
_________________________
I don't need any more negativity in my life...be positive and helpful people or I will kick you in the shins!!!

Return to Top
#2164902 - 02/16/18 03:34 PM Re: Affordable Housing cowgirlsrule
RR Jen Offline
Power Poster
RR Jen
Joined: May 2003
Posts: 3,759
Running and riding everywhere ...
_________________________
I don't need any more negativity in my life...be positive and helpful people or I will kick you in the shins!!!

Return to Top