Brian Vanderhoff's North Fulton Real Estate Blog

As part of an innovative partnership aimed at job creation and easing the pressures on the housing market, the Department of the Treasury and Department of Housing and Urban Development (HUD) jointly announced programs that will provide billions of dollars in recovery funds to spur the development of thousands of affordable housing units in states around the country. Funded through the American Recovery and Reinvestment Act (The Recovery Act), the programs together will provide approximately $5 billion for states to finance the acquisition and construction of affordable housing for working families.

Through the Recovery Act, the Treasury Department will now for the first time provide state housing agencies resources from which they will in turn provide cash assistance to developers of qualified affordable housing developments to fill the Low Income Housing Tax Credit (LITC) gap. The program will increase the supply of newly constructed or recently renovated affordable housing units for families - affordable housing that otherwise may not have come to market due to current economic conditions.

“Affordable housing is key to every American’s economic security,” said Treasury Secretary Timothy Geithner. “As the recession has worsened, unemployment has risen, and working families have suffered a loss of income, which has caused a downward economic spiral for too many American families and made it more difficult for those families to find affordable housing. With this new program, we are not only creating new jobs through new construction, we are ensuring the availability of affordable housing, which is good for the nation’s economic stability and the economic security of millions of American families.”

The economic and financial crises have presented significant challenges for the construction industry, particularly residential construction. Housing starts have fallen 80% from the peak level seen at the beginning of 2006. Houses currently under construction are at a 12-year low, down 60% from the peak in the first quarter of 2006. This collapse has led to severe job losses in the residential building and specialty trades sector related to housing, with employment down by nearly one-third - a loss of close to 1 million jobs. Such losses not only indicate the significant problems in the residential construction sector, but also suggest that the need for affordable housing has risen markedly during the recession.

In addition to Treasury’s new program, HUD will be awarding $2.25 billion in grants to state housing credit agencies through the Tax Credit Assistance Program (TCAP) to complete construction of qualified housing developments. The TCAP program will ultimately provide affordable housing to an estimated 35,000 low-income households.

“The intended purpose of the American Recovery and Reinvestment Act is to jumpstart the nation’s ailing economy, with a primary focus on creating and saving jobs in the near term,” said HUD Secretary Shaun Donovan. “These programs are an important step in achieving the goal of putting American people back to work while at the same time providing quality, affordable housing options for low-income families. We are proud of the collaboration between Treasury and HUD that enabled us to announce these programs together.”

One of the by-products of the economic crisis has been the freezing of the investment in Low Income Housing Tax Credit, the federal government’s program for the development of affordable rental housing. Tax credits provide an incentive for investors to participate in the program, which in turn provides equity to developers to build multi-family rental housing for moderate and low income families across the nation. Developers depend on the equity generated as a result of the incentive provided by the tax credits to fill project financing gaps. In the current financial crisis, credit is tight, and as a number of traditional equity investors have left the market, the value of tax credits have plummeted. The result is that as many as 1,000 projects containing nearly 150,000 units across the country are on hold.

The Treasury and HUD programs will help jumpstart the market for construction of affordable housing by providing these combined $5 billion in funds for states to finance the acquisition and construction of buildings for affordable housing, which will create thousands of jobs in the construction and specialty trades sectors, from laborers to architects and engineers around the country. The funds will also provide housing for a broad cross section of individuals and families affected by the downturn of the housing market.

For more information, visit www.treasury.gov or www.hud.gov.

Labels: american recovery and reinvestmanet act, Georgia, grant, hud, the recovery act

We can help you with your Short Sales-we will work with the bank to sell your home so you avoid foreclosure. Call (770) 331-1206 today!

Are you having trouble keeping up with your mortgage payments? Have you received a notice from your lender asking you to contact them? Don't ignore the letters from your lender, contact your lender immediately, contact a HUD-approved HousingCounseling Agency, Toll FREE (800) 569-4287, if you can't make your mortgage payment:

1. Don't ignore the problem. The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.

2. Contact your lender as soon as you realize that you have a problem. Lenders do not want your house. They have options to help borrowers through difficult financial times.

3. Open and respond to all mail from your lender. The first notices you receive will offer good information about foreclosure prevention options... Your failure to open the mail will not be an excuse in foreclosure court.

4. Know your mortgage rights. Find your loan documents and read them so you know what your lender may do if you can't make your payments. Learn about the foreclosure laws and timeframes in your state (as every state is different) by contacting the State Government Housing Office.

5. Understand foreclosure prevention options. Valuable information about foreclosure prevention (also called loss mitigation) options can be found on the internet at www.fha.gov/foreclosure/index.cfm.

6. Contact a HUD-approved housing counselor. The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide. Housing counselors can help you understand the law and your options, organizeyour finances and represent you in negotiations with your lender if you need this assistance. Find a HUD-approved housing counselor near you or call (800) 569-4287

7. Prioritize your spending. After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut spending. Look for optional expenses-cable TV,memberships, entertainment-that you can eliminate. Delay payments on "unsecured" debt until you have paid your mortgage.

8. Use your assets. Do you have assets-a second car, jewelry, a whole life insurance policy-that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don'tsignificantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.

9. Avoid foreclosure prevention companies. You don't need topay fees for foreclosure prevention help-use that money to pay the mortgage instead...For info and services your lender or a HUD approved housing counselor can provide it for free.

10. Don't lose your house to foreclosure recovery scams! If any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney or a trusted real estate professional.

WE CAN WORK WITH YOUR LENDER AND HELP YOU!!

Labels: avoid foreclosure, Forsyth, Georgia, hud, North Fulton, short sales

Federal officials announced Thursday an effort that could result in millions of dollars to combat homelessness in Georgia and around the nation.

U.S. Housing and Urban Development Secretary Shaun Donovan told reporters that his department is awarding $1.6 billion to more than 6,000 homelessness prevention programs across the nation. The funds are in addition to $1.5 billion from the recently approval federal economic recovery plan that will provide rental and utility assistance, along with helping homeless people find permanent housing.

“We know the HUD grants we announce today will literally save lives,” he said in a conference call with reporters.

Homeless advocates throughout metro Atlanta say they’ve seen more people in recent months — particularly women and children — seeking help.

The National Alliance to End Homelessness released a study last month that found 21 of every 10,000 Georgians were homeless in 2007. In 2005, about 30 of every 10,000 Georgians were homeless, the study reported.

Researchers found there were 6,832 homeless people in the city of Atlanta and DeKalb and Fulton counties in 2005. There were 6,840 homeless people in those jurisdictions in 2007, according to the study.

Atlanta has often been ranked as one of the “meanest” cities to the homeless. Mayor Shirley Franklin created a task force that has resulted in coordinated efforts to reduce homelessness in the city.

Labels: hud, the national alliance to end homelessness

A federal grant will give Fulton County funds to deal with foreclosed and abandoned properties next year but north Fulton may see little of the money.

According to Melvin Richardson, deputy director of community development and housing for Fulton County, Alpharetta, Roswell and Milton are part of the second-lowest priority district. Johns Creek is a separate entity and would not be eligible for any funds. The highest priority area is South Fulton, where there are the most foreclosures.

The $10.3 million from the U.S. Dept. of Housing and Urban Development would be available in February, said Richardson. Four public meetings have been held for public comment regarding the issue.

“There will be five primary strategies for dealing with foreclosures and abandonments including rehab, demolition and buying homes,” said Richardson. “Roswell administrators are identifying areas in the city with small concentrations of foreclosures and we will add those to the databank.”

The Neighborhood Stabilization Program Substantial Amendment will have to go to the County Board of Commissioners and get a majority approval before being submitted to HUD on or before Dec. 1, said Richardson.

The cities of Milton and Alpharetta have chosen not to take part in the process, he said. James Drinkard, Alpharetta assistant city administrator, said city staff have only seen a few individual foreclosed homes and not entire neighborhoods that need rehabilitation.

Labels: Alpharetta, Forclosures, foreclosure, hud, Johns Creek, milton, neighborhood stabilization program, North Fulton, Roswell

Roswell city officials agreed Monday to distribute $100,000 in federal funds to Habitat for Humanity, allowing the non-profit organization to purchase a townhouse and make it available to a deserving family.

The money will come from the federal department of Housing and Urban Development, through Fulton County.

The property under contract is at 243 Mill Creek Place, in a townhome community off Holcomb Bridge Road. The closing is scheduled for Dec. 15, said Russell Hayes, chief executive officer of Habitat’s North Central Georgia chapter.

The organization also hopes to acquire a home this year on Teal Court in the Martin’s Landing neighborhood, to make available as an affordable rental, Hayes said. The Roswell City Council is expected to consider contributing $100,000 for that property in its meeting next week.

Labels: habitat for humanity, hud, martins landing, Roswell, townhomes