August 2014

AHFA has gone social...find us on Facebook!

AHFA recently launched a new Facebook page which will feature news, testimonials, grand openings, links and information relevant to the affordable housing industry.

Join the conversation....go LIKE our Facebook page today!

Majority of US Households Faring Well in Wake of Great Recession
40 Percent Still Face 'Financial Stress'

The Fed 2013 Survey of Household Economics and Decisionmaking said as of September 2013 many households were faring well, but that sizable fractions of the population were at the same time displaying signs of financial stress. More than 60 percent of respondents reported that their families were either "doing okay" or "living comfortably" financially; one-fourth said that they were "just getting by" financially and another 13 percent said they were struggling to do so. 

"Many households in the United States have been tested by the Great Recession," the survey said. "Large-scale financial strain at the household level ultimately fed into broader economic challenges for the country, and the completion of the national recovery will ultimately be, in part, a reflection of the well-being of households and consumers. Because households' finances can change at a rapid pace and new opportunities and risks may emerge, such recovery can be complex to monitor."

The recession has turned more Americans into renters, yet the survey suggests that's not because they aren't interested in being homeowners. The most common reasons people gave for renting rather than buying a home were because they couldn't afford a down payment or couldn't qualify for a mortgage.

AHFA's Step Up program can remove the entry cost barrier for many looking to make the transition from renting to owning. Step Up provides 30-year, fixed-rate financing and down payment assistance with no private mortgage insurance costs (a savings of $150 per month) for the homebuyer.  Eligible borrowers may earn up to $97,300 in total household income and must also complete a homeownership education course to qualify.

Learn more about AHFA's Step Up program.

Greystone Place Opens in West Mobile

On August 25, grand-opening ceremonies were held for Mobile's Greystone Place, a 56-unit, townhouse-style development for area families. 

 


Already fully occupied, the project was funded in part by $1.3 million in AHFA-administered HOME Investment Partnerships funds and $646,089 in Housing Credits. Greystone Place also received City of Mobile HOME funds and additional financing from Bank Independent.


"It is located in close proximity to numerous community amenities and it is a great example of the city leveraging its resources with private sector participation to provide this needed affordable housing," Mobile Mayor Sandy Stimpson said. "By fostering these partnerships, the city hopes to continue to improve quality housing options for all Mobilians."
 

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Work Begins on New Somerville Apartments for Seniors

Tuscaloosa officials gathered August 12, to mark the ground-breaking for a senior housing development that is expected to open in January.

Somerville Apartments, funded through a public-private partnership, will be open to income-eligible people 55 years old and older. 


 

The development at 5701 McFarland Blvd. E. will feature 1,200-square-foot, two-bedroom, two-bath apartment homes with porch balconies. The site developer is the Tuscaloosa-based Morrow Companies. 


 

"The ground-breaking ceremonies at Somerville are only the beginning of what will soon be a thriving community," said David C. Young, the AHFA's multifamily administrator. "The Alabama Housing Finance Authority is honored to play a part in creating housing opportunities for these 50 residents by awarding more than $1 million in HOME Investment Partnerships funds and more than $607,000 in Housing Credits."

 

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What Matters More to Housing? Price or Rates?

With home prices easing, rate fluctuations may be the key to predicting whether first-time buyers will enter the housing market this year.

A recent CNBC article examines how stagnant rates and dropping prices make it difficult to predict the movements of first-time buyers in the fall homebuying season.
How Weak is Housing? Five Charts Tell the Story
 

A big question at the beginning of the year was whether this would finally be the year housing contributed in a big way to economic growth. The answer so far: Nope.

 

The Wall Street Journal looks at housing impact on the economy in the second quarter, as measured in a recent Commerce Department report on gross domestic product.

 

The GDP report measures two ways that housing contributes to the economy: private residential investment and consumption on housing services. Residential investment includes construction of single-family and multifamily housing units as well as home improvements and brokers' commissions. Consumption on housing services includes gross renters and utilities. 

 

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AHFA Board to Meet in September

The AHFA Board of Directors will meet in public session on Tuesday, September 23 at 11 AM. Please make a note of this date.