From your Fahe Advocacy Team
The election is over and the landscape for the next administration is slowly coming into focus. As of the 14th, the AP called that Republicans have retained their narrow majority in the House of Representatives, resulting in a unified government. This means new faces in both elected and appointed positions and new policy and funding priorities.
Over the next 3 months as appointments are made, legislation is introduced, and the budget process begins, we’ll be reaching out to help you navigate these shifts. You can expect:
- Support in crafting messaging that speaks to these new audiences.
- Information on which programs may be poised for cuts or increases – and how you can influence these decisions.
- Opportunities to meet with the new staff in the Administration and Congress.
To be well-positioned to have these important conversations at the Federal, State and Local levels, it’s important to have good relationships with these folks. Remember one of Advocacy’s golden rules: Don’t let your first contact with an elected office be when you’re facing a problem or asking for something.
To help streamline this effort, each Caucus has sent letters of congratulations on your behalf to all of the Federal and State election winners in our footprint. In addition, Jim has sent letters of congratulations from the entire network to all the Federal representatives in our footprint. We are on track to send WELL over 100 letters! Which is fantastic!
But, we know that local decisions are where the rubber meets the road. So we have a small request: To help ensure we engage at the local level too (where your relationships are VITAL) we’ve drafted a basic letter of congratulations that you can modify for local leaders (new or returning!).
You can use the template as formatted, make modifications (remove logos etc.), or copy and paste to your own letterhead. What matters is that you take a few minutes to personalize and send a note (email or snail mail!) to your local leaders. And, if possible, please tell your Fahe Advocacy Staff Member who you’ve reached out to! You can just shoot us a list, or cc us on emails. Whatever is easiest. If you’re not sure where to find good addresses (email or snail) for local winners, please let us know.
And, if you’re feeling ambitious and you’d like to send something to your State and Federal Representatives, we can provide you with that template as well as the best addresses for those candidates/incumbents. Just reach out to your state point of contact, or Kylie Milliken (kmilliken@fahe.org).
As always, we’re here to talk if you have questions or concerns. Otherwise, we look forward to hearing hearing who you’re connecting with and supporting you in this transition over the months to come.
2025 UPCOMING CAUCUS MEETING INFO ~ coming in December!
PREVIOUS MEETING INFO:
- Fri. Nov. 1, 2024 – Caucus Packet
- Tues., July 9, 2024 – in person, Caucus Packet Here
- Fri. Feb. 9, 2024 – Caucus Packet – ~ Mapping Slides
- November 9, 2023 – Caucus Packet
- June 30, 2023 – Virtual – Caucus Packet
- April 12, 2023 – Caucus Packet
Alabama Housing Finance Authority (AHFA)
11/18/2024: Notice of Public Hearing – Tues. Nov. 26th 10 am
Alabama Housing Finance Authority (the “Authority”) proposes to issue and sell up to $100,000,000 aggregate principal amount of its Collateralized Single Family Mortgage Revenue Bonds, 2024 Series D (the “2024 Series D Bonds”). If issued, the 2024 Series D Bonds are intended to be issued as “qualified mortgage bonds” under Section 143 of the Internal Revenue Code of 1986, as amended (the “Code”). The proceeds of the 2024 Series D Bonds will be used to make funds available for the origination of new residential mortgage loans to persons of low or moderate income for the purpose of financing the purchase of newly constructed and existing single family, owner-occupied residences located in any county of the State of Alabama.
NOTICE IS HEREBY GIVEN, that a public hearing concerning the issuance of the 2024 Series D Bonds, the program of the Authority under which the 2024 Series D Bonds will be issued and the mortgage loans financed by said program will be conducted by the Authority at 10:00 a.m., Central Time, on Tuesday, November 26, 2024, in the offices of the Authority located at 7460 Halcyon Pointe Drive, Suite 200, Montgomery, Alabama 36117. Members of the public are invited to attend and submit comments, either orally or in writing, with respect to the 2024 Series D Bonds, the program of the Authority under which the 2024 Series D Bonds are to be issued and the mortgage loans made a part of such program. Written comments may also be mailed to the Authority prior to the public hearing at the address above.
This notice is intended to comply with the public notice requirements of Section 147(f) of the Code.
Robert Strickland, Executive Director
First Step program provides below-market interest rates and up to $10K toward down payment for Alabama homebuyers
AHFA will be hosting free training events via Zoom and in-person across Alabama to help Realtors, homebuilders, loan officers, underwriters, processors, and management staff prepare. Register here for one of the sessions to learn more about adding this program to your homeownership toolbox.
Watch this space and our social media for all the previews and details on this coming attraction.
Beginning April 15, homebuyers who earn less than the median income for their area can apply for two special 30-year fixed mortgage interest rates: either 5.5% on FHA, VA, or USDA loans, or 6% on Freddie Mac HFA Advantage conventional loans. Available to Alabama homebuyers only through AHFA, applications are accepted on a first-come, first-served basis by a statewide network of participating lenders. Both rates include up to $10,000 in down payment assistance.
Financed by the sale of tax-exempt Mortgage Revenue Bonds, the First Step program was hugely popular several years ago. Market conditions are again right for reopening the program, said AHFA Executive Director Robert Strickland.
“The 50,000 Alabama homebuyers who took advantage of this program from 1980 to 2010 know what a difference it makes,” said Strickland. “These lower-than-market interest rates result in real savings over the life of a loan. Combined with AHFA’s down payment assistance, we can stretch borrowers’ savings and reach the next generation of potential homebuyers.” Income and sales price limits for participation are set by the U.S. Department of Housing and Urban Development and based on each area’s median income. Limits vary based on family size and the home’s location. In some areas of the state, qualifying households can earn up to $119,400 annually and purchase homes with a sales price up to $588,104 in “target” areas and $481,176 in “non-target” areas. These areas are also set by the federal government to encourage economic development. Program details are available at ahfa.com/homebuyers/programs-available/first-step-mortgage-revenue-bonds.
| Interest Rates AS OF 11/18/2024: |
|---|
| Below are the current Step Up interest rates: FHA / VA/ USDA: 6.500% CONVENTIONAL: 6.750% First Step: VHA/VA/USDA: 5.500% CONVENTIONAL: 6.000% |
We are pleased to announce the release of our FY23 Annual Report and financial statements. Every season brings change and challenge. Like other industries, the affordable housing market experiences its own cycles of pruning and growth. In any economic weather, the Alabama Housing Finance Authority and its associates share a commitment to seeing communities thrive in every one of our state’s 67 counties. Our 2023 Annual Report reveals the creative solutions and layered assistance that result from hard work and the careful use of resources. We remain dedicated to helping Alabama’s homeowners and household renters flourish in the coming year.
From Collaborative Solutions:
RURAL PEER NETWORK OPPORTUNITY – Applications close on 4/5/2024
Is your rural community interested in developing permanent supportive housing (PSH) for people experiencing homelessness?
Collaborative Solutions, Inc. is offering 5-10 agencies in rural communities the opportunity to participate in a 6-12 month PSH Peer Network. The Peer Network develops capacity for agencies within a single rural community to build permanent supportive housing. It results in housing development or a concrete plan to develop PSH after the engagement. CLICK HERE TO APPLY
January 10, 2024 – Notice of Mortgage Credit Certificate Program –
The Alabama Housing Finance Authority (“AHFA”) announces its Mortgage Credit Certificate Program (December 13, 2023). Section 25 of the Internal Revenue Code authorizes “issuers” to issue Mortgage Credit Certificates (MCC) in lieu of qualified mortgage bonds. AHFA is an issuer of MCCs. Mortgage Credit Certificates entitle qualifying individuals to a credit against the individual’s Federal income tax. The amount of the credit is determined by multiplying the certificate credit rate by the interest paid or accrued during the taxpayer’s taxable year on the mortgage loan for the taxpayer’s principal residence. In order for an individual to claim the credit provided by section 25(a), the MCC must be a “qualified mortgage credit certificate” issued pursuant to a “qualified mortgage credit certificate program.” The following criteria/requirements must be met:
Principal Residence Requirement – The homebuyer must use the residence as their principal residence within a reasonable time (sixty (60) days) after the MCC is issued. The MCC holder will notify the issuer of the MCC if the residence ceases to be their principal residence.
New Mortgage Requirement – An MCC cannot be issued in conjunction with the acquisition, replacement or refinancing of an existing mortgage. However, a certificate can be used in conjunction with the replacement of construction period loans, bridge loans, or other temporary initial financing with a term of twenty-four (24) months or less.
Three-Year No Prior Homeownership Requirement – The homebuyer cannot have had any present ownership interest in a principal residence at any time during the preceding three years ending on the date the MCC is issued. This three-year, first-time homebuyer requirement does not have to be met if the residence for which a mortgage loan application is being made is located in a designated target area. A target area is a particular area in the State determined or approved by the Federal government that will receive special consideration to provide an added stimulus to housing in that area.
Purchase Price Requirements – There are maximum allowable purchase prices which vary based upon whether the home is located in a designated target area, or a non-target area. The maximum purchase prices at this time are: NEW & EXISTING HOMES (ALL AREAS): $588,104 in Target areas OR $481,176 in Non-Target areas
Homebuyer Income Limits – The homebuyer must have family income at or below the income limit for the county in which the residence being purchased is located, considering family size and whether the home is located in a target area. Current maximum income limits range from $79,600 to $119,400. A complete listing of income limits can be obtained by contacting AHFA.
Methods by Which Certificates Are Issued – Prior to the mortgage loan closing, the participating lender must submit to AHFA an application, affidavit and supporting documents. AHF A will review these documents and either reject or accept the application. At the mortgage loan closing, a closing affidavit is prepared and sent with supporting documents to AHF A and if all documents are acceptable, a Mortgage Credit Certificate is issued by AHFA which will allow homebuyers to claim the credit. In order to comply with Federal requirements, Mortgage Credit Certificates may not be issued prior to April 30, 2024.
For further information contact Alabama Housing Finance Authority, P.O. Box 242967, Montgomery, AL 36124-2967, telephone (334) 244-9200 or visit our web site at www.ahfa.com.
FY23 Annual Report – AHFA
Current interest rates:
Below are the current Step Up interest rates (Rates are subject to change without notification.):
- FHA / VA: 7.000%
- CONV-Freddie Mac: 7.125%
AHFA – Explaining the MCC Program Although it’s made homeownership more affordable for nearly 5,000 Alabama households, the Mortgage Credit Certificate (MCC) is one of the most misunderstood housing programs on the market today. Give “Albert Budstein” a chance to explain the savings in simpler terms in our new video.
From ADECA
Posted 11/15/23: Alabama BEAD Initial Proposal and Alabama Statewide Digital Opportunity Plan Public Webinar: Please save the date to join representatives from the Alabama Digital Expansion Division of the Alabama Department of Economic and Community Affairs (ADECA) for a webinar next Monday, November 20th, from 2pm-3pm. At the webinar, ADECA will provide an overview of the recently-released Alabama BEAD Initial Proposal Volume 1 and Volume 2 as well as the Alabama Statewide Digital Opportunity Plan, all of which are now open for public comment. ADECA will discuss how to submit comments on the documents, which provide information about ADECA’s plans to promote broadband deployment and digital opportunity in the state. Please click this link to pre-register for the webinar and receive the meeting link: https://us06web.zoom.us/webinar/register/WN_hpMG5kVPQOm2gaDyp1Z4lg
broadband.fund@adeca.alabama.gov.
Resource from NLIHC: Alabama | National Low Income Housing Coalition (nlihc.org) Alabama Housing Needs
4/14/23 – Alabama Community Broadband Technical Assistance Program
In response to the critical need for internet access, ADECA has developed the Alabama Community Broadband Technical Assistance Program. Through this program, ADECA is providing technical assistance for communities seeking to expand broadband infrastructure and services in all of Alabama’s 67 counties. The following meetings have been scheduled to produce insights and the data needed to build broadband planning and deployment capacity. The calendar will be updated as more meetings are scheduled, please visit our website at https://adeca.alabama.gov/broadband/.
BROADBAND ALABAMA TEAM
E-mail: broadband.fund@adeca.alabama.gov
Phone: (334) 353-0767
AHFA News/Updates!
Step Up DPA Gives Buyers Freedom to Choose
| New furniture, upgrades, and renovations? Or utility deposits, packing supplies, and moving truck rental? The costs quickly add up for any move. But with up to $10,000 in down payment assistance, AHFA’s Step Up program gives home buyers flexibility in spending for all the expenses – expected or unexpected – that they will incur. Step Up is a homeownership program designed specifically for moderate-income home buyers who can afford a mortgage but need help with the down payment. Along with the up-front funds, Step Up provides a competitive 30-year, fixed interest rate for homebuyers who earn less than $130,600 and meet standards for creditworthiness. The down payment funds are secured by a 10-year second mortgage. Since the loans are serviced by ServiSolutions, a division of AHFA, homeowners have only one check to write each month. Program participants must also complete a homebuyer education course to qualify, which is typically an online course offered by their lender. For more information about the Step Up program, including additional savings options, eligibility requirements, and a current list of participating lenders, visit www.AHFA.com. |
AHFA FY22 Annual Report “Creating Home”
| AHFA to Conclude Temporary Rental Assistance Program, Shift Focus to Long-Term Solution |
| AHFA’s federally funded Emergency Rental Assistance (ERA) Alabama program has committed more than $173 million to 39,000 of the state’s lower-income households to date. Due to its success, the program had to stop accepting applications on December 15. Individuals with applications in process can check their status by logging into their accounts on eraalabama.com. The ERA Call Center can also be reached at 1-833-620-2434 Monday through Friday, 8 a.m.-5 p.m. “Though the worst of the pandemic is over, we recognize the ongoing need for affordable multifamily housing in Alabama,” said Young. “AHFA remains committed to addressing that need by doing what we do best – funding the creation and repair of safe and economical rental housing that our state’s financially strapped renters can afford.” |
FHLB-Atlanta News/Updates
2/21/23 ~ 2023 Funding for AHP Homeownership Set-aside Program
Federal Home Loan Bank of Atlanta (FHLBank Atlanta) announced today that funding for its 2023 Affordable Housing Program (AHP) Homeownership Set-aside Program is now available. The products within this program provide direct assistance to eligible borrowers to help them purchase or rehabilitate a home.
Eligible homebuyers may receive up to $15,000 through the Community Partners product, up to $12,500 through the First-time Homebuyer product, or up to $10,000 through the Community Rebuild and Restore product. Funding for each of these products is available only through FHLBank Atlanta member financial institutions, and funds are available on a transaction by transaction, first-come, first-served basis.
A summary of 2023 Homeownership Set-aside Program products is below. To learn more click here:
First-time Homebuyer Product The First-time Homebuyer product provides up to $12,500 in down-payment, closing-cost, counseling, or rehabilitation assistance in connection with the purchase or purchase and rehabilitation of an existing home.
Community Partners Product The Community Partners product provides up to $15,000 in down-payment, closing-cost, counseling, or rehabilitation assistance in connection with the purchase or purchase and rehabilitation of an existing home by currently employed or retired law enforcement officers, educators, firefighters, health care workers, other first responders, veterans or their surviving spouse, and essential workers.
Community Rebuild and Restore Product The Community Rebuild and Restore product provides up to $10,000 in funding for the rehabilitation of an existing owner-occupied home in in “Emergency Declaration” areas or “Major Disaster Declaration” areas designated by the Federal Emergency Management Agency (FEMA). The homeowner must have at least 30 days of current ownership by life estate or full interest in the fee title and have ownership of the subject property at the time of the “Emergency Declaration” or “Major Disaster Declaration”. The “Emergency Declaration” or “Major Disaster Declaration” must have occurred no later than 36 months prior to the date of application for Community Rebuild and Restore funding.
