OHFA has updated a redline version of the Housing Stability Program Whitepaper and produced Draft Emergency Rules. These have been posted to OHFA's website and can be found attached. View AttachmentView Attachment
Pretty concerned about the part about claw backs on the down payment assistance.
It says the 5% has to be paid back in full if you move out in the first 5 years and then some percentage if you move out in the next 5. That is very punitive and honestly, if people are leaving their recently subsidized home, there is probably a legitimate reason because even with 5% assistance you are losing money on a house sale within the first few years.
This just needs to be scratched. There is no policy outcome here except that it could end up hurting people that qualified for help. It is unlikely people will utilize this program and then sell real fast.
Last Edit: Jul 8, 2023 21:10:18 GMT by nicks: Image link didn't work
Great conversations in OKC today, thank you all for holding these public forums. However, after hearing the feedback today, I think this needs to be approached from the opposite direction than what I've seen proposed. What price point is affordable for our working population? What price range is most strained and in demand for those struggling for stability?
As a Realtor, I see Oklahomans working full time or more as teachers, home health aides, store managers, contractors etc. and they are struggling to find a reasonable home to purchase that they can actually afford to maintain in a place they want to live. They are tired of renting and have saved up to the best of their ability but when a nice home comes available in their price range, they are fighting off out of state investors and cash buyers. It's clear every day that there is not enough supply available to meet demand for our middle income citizens.
The Realtor "rule of thumb" is usually 3x gross income is max purchase price (or loan amount, if they have significant down payment). 100% AMI in Oklahoma county is $86k which = $258k purchase price. If we are trying to incentivize builders to construct things that are missing in our inventory and in high demand, it's going to need to be less than $250k to serve those most afflicted by housing instability. It's been mentioned that maybe the intention of this is for it to be "step up housing," but I'm concerned about how the housing that people are stepping up from may enter the market as more inventory, and there's nothing to prevent those homes that are being "stepped up from" to not be bought up by investors.
I believe a maximum square footage of 2200 sq ft is excessive and results in what is effectively market rate housing. We currently have loan types and down payment assistance available for that price point without additional incentives. Overall maximum home prices in this program should fall well below $250k purchase price per unit to be stable housing for our workforce. This likely translates to less than 1800 sq ft. units. I believe we should look toward the future and lean in to innovation in these new homes whether developers consider multi-family communities or simply embrace a smaller square footage altogether.
I am also not a fan of requiring Buyers to utilize OHFA DPA. Some Buyers have VA benefits or better rates/PMI offered through USDA rural incentive loans, HUD 184 Native American loans, or even the ability of making a full down payment if they weren't competing against more leveraged buyers. I believe it's unfair for someone to be restricted on their financing type when the AMI qualifications should be focus. In my opinion, keeping qualifications and build budget focused around 100% AMI will do the most good for our citizens.
I represent the factory-built housing industry (Manufactured Housing Association of Oklahoma).
We need to remove "mobile" from all your Rules, etc., we haven't built a "mobile" since 1976.
You need to keep Manufactured Home and 3D manufacturing, add Modular and Panelized construction/Homes and all innovative housing construction. Which could also include container homes which is becoming popular throughout the US. Naturally all the homes have to be built to the UBC/IRC, except manufactured homes which is a preemptive federal build code, that can exceed many of our UBC/IRC codes.