OHFA Annual Plan - Ohio Housing Finance Agency

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Subject Matter Expert (SME) Workgroup SummariesEach SME Workgroup was responsible for developing a report that thoroughly analyzed theissues and provide recommendations related to the respective housing need. It must benoted that there is not enough funding and SME Workgroups were challenged to preparereports without recommending increased funding. As listed above, there are a total of tenhousing needs in Ohio that were identified by the Annual Plan Advisory Board. Some of thehousing needs were combined and Workgroups were created according to the combinedhousing needs. The following consists of summaries of each of the eight SME Workgroups;see Appendix for full SME Workgroup Reports.Affordable Homeownership and Counseling & Education ResourcesBackground DataHomeownership is the preferred housing choice for Ohioans where 70 percent of householdsare homeowners according to the U.S. Census Bureau’s 2006 American Community Survey.Homeownership needs fall into three categories: affordability, quality and sustainability.• Of the owner-occupied units in Ohio 18.7 percent experience a “cost burden” which isdefined by the U.S. Department of Housing and Urban Development as paying morethan 30 percent of household income for housing.• The housing stock in Ohio is considerably older with the majority of homes beingbuilt prior to 1939. An older housing stock often means an increase in expenses formaintenance or rehabilitation, which strains low income households who may already beexperiencing a cost burden.• The current volatile economic conditions and foreclosure crisis has hit Ohio particularlyhard resulting in high foreclosure rates. In 2007, foreclosure filings increased 6.7percent from the year before, according to the annual study issued by Policy MattersOhio. Overall, there were 84,751 new foreclosure filings in 2007, up from 79,435 in2006. Foreclosure filings have grown by double-digits in 39 of Ohio’s 88 counties, andstate-wide have more than quintupled since 1995.SynopsisAffordability can be a concern for both aspiring homeowners and existing homeowners.Downpayment Assistance programs offered throughout the state help low and moderateincome households overcome initial affordability barriers, but due to market conditions,OHFA’s programs are temporarily suspended and additional resources are needed. Existinghomeowners as well as low and moderate income homeowners may need assistance withenergy efficiency and resource conservation, property maintenance or rehabilitation, whileother homeowners require modifications to remain in their homes. The Ohio Departmentof Development offers the Community Housing Investment Program (CHIP) to address thisneed. The CHIP program provides funds for downpayment assistance, rehabilitation andrepair to create and preserve affordable homeownership.Homeownership can provide families with stability and wealth building, but whenhomebuyers are unprepared for the financial and legal responsibilities of ownership, theopposite may result. The ability for homeowners to manage their financial resources andto protect their rights with respect to their housing situation is critical for homeowners tosuccessfully continue homeownership. OHFA has recently established a housing counselingprogram to educate future homebuyers of these and other aspects of responsiblehomeownership.10
In response to the devastating impact foreclosures have had on Ohio, Governor Stricklandcreated the Ohio Foreclosure Prevention Task Force. One outcome of the Task Force wasthe creation of Save the Dream, a collaborative effort of state agencies, which provides atoll-free hotline and website to refer borrowers to counseling agencies or legal assistance.As of September 2008, 74.75 percent of a total 4,250 Ohioans who access Save theDream resources seek help early to prevent the foreclosure process. Many families havebenefited from a variety of services offered such as: foreclosure mitigation and prevention,pre-purchase and post-purchase counseling and education, homelessness prevention,fair housing advocacy, and legal assistance with landlord-tenant disputes. The demandfor foreclosure prevention assistance exemplifies the importance and need for additionalcounseling and education resources.While many resources listed on the Resource Inventory promote affordable homeownershipand housing counseling, additional resources are required due to the following:• Demand for housing rehabilitation and repair assistance exceeds the availableresources.• Potential homeowners lack knowledge, savings and adequate credit requirements tocomplete the homeownership process.• Homeowners who have experienced recent foreclosure or bankruptcy, lack programs tohelp re-establish their credit and save for a down payment.• Energy conservation programs are limited to very low-income households whichexcludes other households where energy costs make up a significant percentage of theirhousing expenses but incomes are higher.Several recommendations were developed to address the need for affordablehomeownership opportunities and housing counseling, with consideration given to thecurrent economic environment.Recommendations1. Individual Development AccountsMany potential homebuyers are not able to qualify for a mortgage due to weak credithistory, limited income or changing underwriting standards. Individual Development Account(IDA) programs can help households by encouraging savings for down payment while thehousehold gains financial literacy and improves their credit. Ohio should expand IndividualDevelopment Account programs by supporting increases in federal funding, promotingthe concept with employers and philanthropic organizations, and exploring the potentialto expand matched savings resources through an Ohio State Income Tax or other publicresources.2. Lease Purchase ProgramsFormer homeowners who have experienced recent foreclosure or bankruptcy would benefitfrom short term lease purchase programs while they re-establish their credit and save fora down payment. Such programs would also keep people in homes that might otherwisebecome or remain vacant. A portion of rent paid would be applied to the down payment,provided the individual participates in a financial literacy plan to correct whatever creditissue they may have.11
Page 3 and 4: OHFA Annual PlanThe Ohio Housing Fi
Page 5: Mission StatementsThe OHFA Annual P
Page 8 and 9: The State’s Housing NeedsAffordab
Page 12 and 13: 3. Financial LiteracyOHFA and other
Page 14 and 15: Affordable Housing Preservation & D
Page 16 and 17: federal subsidies. To achieve this
Page 18 and 19: Accessible HousingBackground DataOh
Page 20 and 21: 3) Create dedicated funding streams
Page 22 and 23: • Recommend that Ohio support the
Page 24 and 25: Rural and Appalachian RegionsBackgr
Page 26 and 27: 6. Annual Set-Asides and Incentives
Page 28 and 29: • Several cities in Ohio current
Page 30 and 31: OHFA should provide funding, traini
Page 32 and 33: Permanent Supportive Housing Produc
Page 34 and 35: 3. The State should assist local Co
Page 45 and 46: PrioritizationThe challenge of prio
Page 47 and 48: Agency RecommendationsThe Annual Pl
Page 49 and 50: APPENDIXWorkgroup 1: Affordable Hom
Page 51 and 52: Executive SummaryHousing Need Descr
Page 53 and 54: efficiency and resource conservatio
Page 55 and 56: 554. Home Buyer Education in OHFA F
Page 57 and 58: Estimated Units in Need of Some For
Page 59 and 60: Ohio County Foreclosure Filings (19
Page 61 and 62:
Operating Costs - Met and Unmet Nee
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Workgroup #2:Affordable Housing Pre
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Secondary Recommendations• Explor
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Executive SummaryOhio’s supply of
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Met Housing Needs (“Resource Inve
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Ohio Deptof MentalRetardation andDe
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Unmet Housing NeedsData OverviewThe
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ody, and will be built within the C
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• OHFA will continue to maintain
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Best Practices, Policies and Progra
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addition, 60,111 one-person househo
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Across Ohio, people with very low i
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• Responsible for Rent - The pers
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Seattle, St. Louis, and Washington,
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Primary Recommendations• Create a
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Unmet Housing Needs:• Due to the
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• The cost of construction often
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Recommendations for Annual Plan Adv
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capacity to quantify vacant propert
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distributed on or about January 15,
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Action is needed at the State level
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a “user-friendly” data system,
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5) Incentivize the formation of bro
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Workgroup #8:Permanent Supportive H
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3. Assist local Continuums of Care
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Program and Resource InventoryNonpr
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Table 2PopulationsPersons whoexperi
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Examples: A national model for succ
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oles, so they create a contract bet
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Workgroup #8:Appendix ANameProgramD
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or remedyingneglect, abuse,or the e
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ased healthcare, and earlyintervent
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“Bob” of Stark County, OhioPubl
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OHFA Annual Plan - Ohio Housing Finance Agency

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