Oregon Housing Council Notes, Friday November 5th.

My notes from Friday November 5 Oregon Housing Council meeting:

1. NSP 3: Plans due on March 1st, likely will be focused only on  few areas as impact on concentrated areas of foreclosure is a HUD requirement. Recent visit from HUD IG audit staff have looked at program operations in several areas for NSP 1 and 2, with no apparent problems yet shared with OHCS staff. 
2. Legislative/Budget: Challenging environment with budget for agencies not due until Feb 1st, after legislative session has begun; current Governor's budget on Dec 1st will only be a "framework" budget with no detailed agency budgets. Tax credit programs likely will get careful review; no attempt will be made to increase amount of Earned Income Tax Credit and Housing Tax Credit and Farmworker Tax Credit currently have 2014 sunset dates.
3. Junction City Mobile Home Park: Approved $600,000 grant, surprised that no Council members asked question about purchase price that was at $100,000 above as is appraised value (Grant will pay up to appraised value with Umpaq Bank paying additional $100,000).  As is LTV stated as 79%, as completed LTV of 40%.
4. Predevelopment Loan for Junction City Project: Approved $720,000 loan , 86% LTV value; if not funded in CFC land is the sole security for the loan.  Council reiterated that projects with predevelopment loans have NO special standing for future CFC funding. 
5. Hardest Hit Fund: Oregon adapting software tool being used in 5-6 other states and working on getting highly readable web site operational very soon. (Mortgage Assistance Payment program will launch December 1st, and with two holidays, that is only 15 workdays until launch). Contracts for local intermediaries being finalized, will have statewide coverage. Concerns about potential for fraud, working with Employment Agency and Justice to share new hire database to cross check (MAP requires constant monthly verification of incomes and employment status by local intermediaries).  Council supportive and impressed with work to date; Council members concerned about possibility of long lines, did not ask any questions about slots or lottery, but DID confirm that even those currently employed WILL be eligible if they can demonstrate "financial hardship".  [ Not clear how this would impact amount of assistance]. 
6. Stimulus: Interesting discussion about methods of measuring jobs using Recovery funding only OR by jobs created with total funding per project. Recovery Act requires the former, while US Treasury has asked for latter for their tax credit programs.  Council should recognize that both methods are in play, with conservatives emphasizing lower number, and liberals the higher number. Using Treasury method Exchange and TCAP have created nearly 1,200 Oregon jobs; using ARRA method 2010 FTE's created for same programs was only 81. (OHCS also has third method that shows impacts of economic multipliers).
7. Financial report: Recording fee producing more income that budgeted, as of late October, $2.3 million more than budgeted. Both NSP and Hardest Hit programs are subject to fee (which will be paid for by those programs).  Lots of audit work underway, with financial opinion likely by December 1st.  Bond refunding is producing benefits. MF refunding for 23 projects reduced debt service by $300,000 AND allowed OHCS to increase their fee to full 1.5% allowed by IRS rules. SF refunding allowed similar increase in OHCS profitability. SF refunding also allowed sale of premium bonds whose proceeds can be used for down payment assistance ($1.7 million). $8 million in zero coupon bonds allow blending of rates with other bonds (for targeted programs?). OHCS hopes to sell $50 million in SF bonds by end of year, which would allow RESTART of SF bond program.

Originally created and posted on the Oregon Housing Blog.