July 2013

 

Housing Credits And Bonds Are Under Threat As Part Of Federal Tax Reform

 

The U.S. Tax Code is being reviewed top to bottom in an effort at comprehensive tax reform. The Housing Credit and Housing Bonds are the Code's most significant affordable housing programs and are responsible for most of the affordable homes produced today with federal help. 

 

In Alabama alone, these programs have financed more than 54,700 affordable rental units and more than 47,600 single-family homes since 1980.

 

Unfortunately, the affordable housing activity the Housing Credit and Housing Bonds generate simply would not happen without these programs.  Rents affordable to the lower-income families served by Housing Credit and Housing Bond-financed developments just cannot support the cost of developing and operating rental housing without some form of subsidy.

 

We urge you to contact your congressional delegation and ask them to support the preservation of the Low-Income Housing Tax Credit and tax-exempt private activity Housing Bonds that have helped provide housing for so many Alabama families. 

 

ServiSolutions Begins Servicing for Missouri HFA

 

In addition to the loans originated by AHFA and the Washington State Housing Finance Commission, ServiSolutions has been selected to service the loans of the Missouri Housing Development Commission. In this capacity, ServiSolutions will service all types of mortgages including FHA, VA, Rural Development, conventional uninsured and conventional insured loans. AHFA is set to begin servicing the Commission's loans on August 1. 
 
Hardest Hit Reaches Out To Birmingham-Area Homeowners

Representatives of Hardest Hit Alabama were on-hand Wednesday, July 31 for the free "Help for Homeowners" event hosted by the U.S. Department of Housing and Urban Development, the HOPE NOW Alliance, and NeighborWorks America. Events such as these are designed to bring homeowners in financial distress together with their mortgage lender and/or local housing counselor. An estimated 500 homeowners were in attendance. 

 
 

Step Up Offers Buyers Affordable Mortgage Options

 

Step Up is designed for low- and moderate-income home buyers who need help with the down payment. The program offers up to 100 percent financing on 30-year, fixed-rate mortgages to buyers with limited savings. In the first half of 2013, Step Up has helped 528 borrowers with $64.3 million in affordable financing and entry cost assistance.

 

Combining the Step Up loan product with a Mortgage Credit Certificate helps lower-income home buyers afford even more home for the money. MCCs help reduce a borrower's federal tax liability which can increase available income needed to qualify for a mortgage. 

 
 
Staffers Attend Educational Meetings

AHFA staff members publicized programs and updated attendees about current activities during the Home Builders Association of Alabama's summer meeting July 18-20.

 

On July 23, AHFA's two-person communications team attended the first annual "Y'all Connect" blogging and social media conference coordinated by the Alabama Social Media Association. The event provided practical takeaways in corporate storytelling.

 

AHFA's Thresholds newsletter, which has been published quarterly since 1994, recently changed to a monthly digital edition. This will enable us to deliver current AHFA- and industry-related news straight to your inbox once a month. 

 

We appreciate your support and loyal readership of Thresholds and hope that you will join us in making this transition.