Affordable Housing Network

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					Affordable Housing
 “Rebuilding communities one affordable
            home at a time”.
•   Provide affordable housing for low-income and middle-class individuals who have
    been affected by the recent housing market conditions due to the housing crisis
    and recent recession.
•   Provide budgeting strategies to assist in the elimination of debt which in turn will
    contribute to the re-establishment of credit worthiness.
•   Provide resources for the program participants to utilize which will assist in their
    search for affordable housing such as providing listings with homeowners, property
    managers, and apartment communities who will participate in our program and who
    have qualified vacant properties based on budget calculations.
•   Find homeowners, property managers, and apartment communities willing to
    participate in our program by in some cases waiving application fees, looking past
    credit imperfections, and in some events even lowering deposit requirements.
                          Mission (cont)
•   To create programs which assist existing homeowners with funds to bring past due
    mortgages/ fees current which may have fallen behind due to loss of employment,
    decrease in hours (underemployment), short or long term disability. (Other causes may
    be reviewed and approved at agency discretion). Fees to be included with
    disbursements may consist of late fees for mortgage, HOA fees, and loan
    reinstatement fees.
•   To provide grants to program participants who may require financial assistance with
    home purchase closing costs.
•   To provide homeowners with resources and referrals to increase home equity while
    minimizing improvement costs, and maintaining housing affordability.
•   To provide assistance programs for renters who may have fallen into financial
    hardship due to recent job loss, decrease in hours, short/ long term disability, those
    receiving SSI or other governmental income supplement, and assistance with meeting
    move-in criteria such as equal deposit, credit report fees, application fees, background
    check fees, application fees, and lot fees.
•   To assist with the rapid re-housing for those who are faced with homelessness due to
    job loss, recent housing crisis situations, short or long term disability etc.
•   To acquire land, buildings, and housing in order to provide rapid re-housing for those
    faced with homelessness throughout the Tidewater region.
                          The Problem
•   The housing bubble burst.
•   Many people who purchased homes between 2004 and 2008 lost their homes due
    to the fact that when they went to refinance their properties, the property values
    were less than the amounts owed on the properties.
•   Many of those trying to refinance had 2/28 and 3/27 ARMS which ballooned to
    interest rates which made payments extremely high and difficult to maintain.
•   There were many programs implemented by government agencies and banks
    which were supposed to work with homeowners. Many however focused on
    creating a forbearance pay plan which usually consisted of allowing two months of
    nonpayment and then monthly payments for nearly twice the original monthly
    payment amount or even more. This method did not create affordability and
    homeowners usually were in a worse position than when they started. Many of
    whom couldn’t even activate the forbearance agreement because of the hefty down
    payment required.
   …How did we get here? (cont)
• Because of the lack of affordability many families homes were
  foreclosed on or resulted in having to go through the short sale
  process. This all due in most cases to no fault of their own. This
  resulted in families going back into the housing market, yet this
  time with a credit ding which many property managers and
  apartment complexes refused to look past.
• No apartment community, property management company, or
  even private owners want to see a foreclosure on credit and they
  rarely do they give the chance to explain. Many will not approve
  the application and in most cases if they do, they take advantage
  by charging maximum rent, deposits, and application fees.
                  The Market
• The Affordable Housing Network LLC. Has
  recognized the overwhelming need throughout the
  community for an advocate primarily focused on
  housing affordability. According to the 2007 American
  Community Survey, it acknowledges that 77% of the
  Hampton Roads homeowners have mortgages, and of
  that 77%, 34% stated that they’re upside down.
  Unfortunately for many this is due to the recent
  housing crisis. Between the year 2004 to 2008, many
  families purchased homes which were secured with 2or
  3 year ARM’s (adjustable rate mortgages).
             The Market (cont)
• Upon receiving notices of the scheduled loan rate
  adjustment homeowners made attempts to refinance.
  Many were denied approval due to their homes being
  worth less than what was owed on the properties.
  Others were faced with a similar crisis who signed for 5
  year interest only mortgages. Doing the numbers, that
  34%breaks down to 110, 733 properties. Based on
  those figures 27% of those owe more than what their
  home is worth.
•   Aside from that major issue, affordable housing in Virginia and more particular in
    Hampton Roads is scarce. Sure there’s affordable housing but for whom? The rich,
    the wealthy, retiree’s, upper middle-class? Many of the lower-class citizens aren’t
    given very many options besides staying in unsafe neighborhoods, participating in
    section 8 (which is no longer accepting applications in several counties), as well as
    applying for government funds to maintain stability such as TANF (Temporary
    assistance for needy families), food stamps, and child care assistance. This
    dependence can be eliminated with affordable housing.
•   Studies show that many Virginia residents whether homeowners or renters, spend
    over 50% of their net income on housing payments, nearly 21% more than the
    allowable DTI required by banks to finance a home. Oftentimes this is the case
    because they’re given no other real option.
              What’s the Difference?
•   The difference between this program and other programs implemented by the state
    and other non-profit organizations is that many of the other programs put a primary
    emphasis on assisting with job placement. These programs provide resources for
    job search, resume’ builders, and even interview success. Even this process is a
    rushed process so that the program participants can stop receiving some type of
    financial assistance.
•   Our system lacks programs which focus on what you should do once you have
    gainful employment. Once people find a job, their spending patterns in most cases
    remain the same, and eventually they wind up repeating the process and
    dependence on the system is the only thing consistent.
•   Our program fills this gap. The Affordable Housing Network will focus on
    restructuring priorities, promoting debt-free living and credit worthiness, all
    independent of government subsidized programs.
•   Other programs already offered require an excellent credit standing and do not
    offer credit repair and debt management reference material for those who fall short
    of their credit requirement standard (ex VHDA, HRHA FTHB programs).
                     The Result
• Rebuilding communities with long-term residency and
• Provide a sense of pride in ownership
• Provide program participants with resources which
  contribute to long-term financial stability and independence,
  which in turn eliminates the need to repetitively depend on
  government funds for assistance. In the long run
  participants will stimulate the economy on their own.
               Contact Us
• Call 757-344-3773