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2. Affordable Housinga 1Kali*spell Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406)758-7700 Fax (406)758-7758 REPORT TO: The Honorable Mayor Pamela B. Kennedy and City Council FROM: David R. Foster, Community Development Director James H. Patrick, City Manager SUBJECT: Work Session with Affordable Housing Providers and Educators MEETING DATE: April 9, 2007 BACKGROUND: On March 5, 2007, a Work Session was held to discuss affordable housing. The Executive Director of Northwest Montana Human Resources, Doug Rauthe, and Lynn Moon, City of Kalispell Housing Manager and consultant for Glacier Affordable Housing Foundation, presented statistics on home ownership and rental programs. At the conclusion of that meeting the Council requested that the Housing Affordability Ladder (HAL) group (a consortium of affordable housing providers and educators) appear before the Council at another Work Session to discuss issues regarding housing in greater detail. Each HA.L entity has provided written information describing the services they provide and the issues they face in providing those services. They will be prepared to give a three minute synopsis at the April 91h Work Session. RECOMMENDATION: Staff is recommending the City Council take this opportunity to consider hove the City can become a more effective partner in addressing the identified needs. FISCAL IMPACT: None known at this time. ALTERNATIVES: As suggested by Council. Respectfully submitted, David R. Foster, Director Community Development Memo generated: April 3, 2007 rmi es H. Patrick City Manager April 2, 2007 MEMORANDUM TO: Jim Patrick, City Manager Dave Foster, Community Development Director RE: APRIL 9'�H WORK SESSION Attached are the summaries prepared by the affordable housing providers that are members of Hal (Housing Affordability Ladder). Someone from each of the organizations will be prepared to give a 3 minute presentation about their agency at the Work Session. I assume that the Council may have questions following those presentations. Please contact me at 75 5-7741 if you have any questions. "Certified" Education & Counseling for Affordable Housing By Cal Scott Historically, ignorance or lack of depth in understanding and their counterpart, bias has and will continue to be our greatest barrier to addressing societal challenges, including affordable housing, whether it is ownership or rental housing. we do know the primary and elemental basic in combating a lack of understanding is education; hopefully a specific and specialized type education that successfully results in our relevant human understanding and achievement. The community wide awareness of, and the availability of "Certified" housing education is paramount to successfully housing our communities. Initially, the process of intelligently overcoming housing barriers and challenges begins with educating the very people who are empowered to make critical decisions affecting housing. Our City and County elected officials and staff(s) effectively need be the first to fully understand the issues, impacts, solutions and basic human needs. Secondly, the community, including the general public and businesses must also understand, including pointed emphases on how the lack of affordable housing realistically and personally impacts all of them in their day to day lives. Regional support, consensus and action of all people is required to fully understand, knowledgably address and successfully implement the measures required to cure the very real affordable housing crisis that dramatically affects all of us. Certified home buyer education process, and its comprehensively thorough subject matter, is the basic foundation of programs for understanding. The programs are made available to inform employers, housing industry, public officials, agencies, associations and the general public. The "certified" program effectively empowers all attendees (first time or experienced) to know their options and make responsibly informed decisions about their affordable home purchase and/or rental. Unlike most business for profit prospecting sessions, "certified" programs are reviewed and held accountable to provide truly unbiased, protective and comprehensive awareness programs that offer personal counseling befitting an individual's circumstance and need. Nationally, the basis for "Certified" education is Housing and Urban Development (HUD) supported and a nation wide Neighborworkst program. In Montana, HUD and the Montana Homeownership Network* in Great Falls is the guiding force of the "certified" programs. Our local Housing Affordability Ladder (HAL) partners strive to assure the standards of a specifically designed, competently instructed, effectively administered program, including a process of "certified" counseling, client follow-up and continuum of care, including after achieving housing. Some more reasons for "Certified" Home Buyer Education and Counseling? Reduces mortgage loan delinquency that allows for increasing affordable home lending programs to educated and therefore lower risk graduate/participants. Introduces government, employers and general population to the many possibilities available to achieve affordable home ownership stability for an area's workforce. Protects individuals and families from predatory lending practices and purchasing high risk and unsafe homes. Provides effective housing affordability guidelines, financing pre -approval, personal credit review, money management and family counseling. The Numbers: Some HAL partners have just completed a HUD biennial review of our "certified" local homebuyer education and counseling processes. Our performance and the numbers demonstrate our having made a remarkably positive difference in our region during the last four years. Home Buying Class Attendees: 1,740 Credit Challenged &Counseled: 373 Other Property Purchasers: 187 Counseling Participants: 873 Affordable Home Purchasers: 376 Maintenance Class Attendees: 248 A "pipeline" of potential home and property buyers is being cared for in the after class counseling process. Those possible purchasers number: Pending (3mos.) Home Buyers: 86 Pending (limos.) Home Buyers: 23 The preceding numbers do not reflect the affordable rental clients counseled, who may eventually achieve affordable home and property ownership. For more information regarding affordable housing and affordable product numbers, please read articles offered in the American Home Week insert, coming this Apri129`h, in your Daily Inter Lake. 2 The Whitefish Housina Authori 343 central Avenue, Whitefish, MT 59937 Phone: 852-4143 Fax: 852-4155 wfhaO-centuWeLnet The purpose of this summary is twofold: To offer information on the Whitefish Homeownership Program and to summarize how the efforts of the City of Whitefish support the creation of affordable housing and compliment the housing efforts of the Whitefish Housing Authority. THE WHITEFISH HOUSING AUTHORITY: The Homeownership Pro ram The Whitefish Housing Authority created this program in 2004/2005 in partnership with Glacier Affordable Housing Foundation. In 2004, the Foundation had already aided nearly 200 households become homebuyers and of that total, only two were in Whitefish. The Foundation has now aided over 300 households become homeowners. Through the new partnership, 12 households purchased homes in Whitefish in 2005/2006. Homebuyer Qualifications Eligible households earn 80%-125% of Area Median Income, will occupy the home on a full time basis, have good credit and are able to secure a bank loan for a minimum of 60% of the purchase price of the home. House cost and Average Assistance The appraised values of the homes purchased through the program range between $165,000 to $250,000. The average assistance to the homebuyer is approximately $65,000. How is a $165,000 to $225,000 Home "Affordable"? The home is affordable because the homebuyer will make monthly housing payments in an amount that will not exceed 30% of their monthly income. The homes are affordable through the use of no interest, deferred payment loans commonly known as "silent seconds." The homebuyer acquires a loan with a local bank for an amount "affordable" to their income. The bank determines how much a household qualifies for with monthly housing payments not to exceed 30% of their monthly income. The downpayment and closing cost assistance contributes the remaining "un-affordable" portion (not to exceed 40% of the total purchase price). Payments are made on the bank loan only, making the home affordable. When the home is sold, the full amount of the second is repaid along with a portion of the equity earned. Recapture Mechanism The WHA Program utilizes a recapture mechanism to maintain affordability. Under the recapture mechanism a homeowner may sell the home on the market for the full value. Upon sale, refinance, or transfer of title, the downpayment and closing cost assistance is repaid in full along with a share of the equity earned. The repaid funds are then used to aid the next household from the wait list. In this manner, the "revolving fund" continues to fund future households. This is the affordability mechanism used by Glacier Affordable Housing Foundation (GAHF). WHA proposed to use the recapture mechanism for the first ten households and then move to the resale restriction. Resale Mechanism: Planned change in 2007 Due to the increasing price of housing in Whitefish, WHA proposes to use a resale restriction in the near future. Although the current Homeownership Program recaptures the original subsidy along with a share of the equity, the repaid funds do not appear to be sufficient to aid a future homebuyer and the original home is no longer affordable. The objective of the resale option is to continue the affordability of a property in the event of resale. The resale option offers an attractive alternative to searching for affordable properties in the future for the homebuyer programs. Using this option, an owner is obligated to resell the original home to another income -eligible homebuyer. This sale must be at a price that is affordable to the purchaser, although the owner is also allowed a fair return on the sale. The Housing Authority defines both the terms of affordability and fair return. WHA will move to a resale restriction in 2007. With a goal of aiding 12 households a year, by the year 2011, there will be 00 homes in our inventory of permanently affordable homes. Defining a Fair Return It is important to ensure that the seller receives a fair return on investment. The participating jurisdiction (PJ) will define the fair return and how it will be enforced. The PJ may allow the homeowner to retain all of the net earning or share in this return. In most cases, the PJ should be willing and able to justify sharing a return with the homeowner. In some cases, such as a brief period of ownership or limited homeowner investment, the PJ may be justified in capturing the entire return. options include: ➢ Tying the return to an economic index or formula that takes into account such factors as the original purchase price, the value of improvements, a cost of living factor, and mortgage terms; ➢ Sharing equity as a fixed amount or percentage of the property's appreciation. CITY of WHITEFISH: Development Incentives for the Inclusion of Affordable Housin City stipulation of Affordable Units In 2004 the City of Whitefish adopted the Voluntary Inclusionary Zoning ordinance. The City now offers incentives to developers for the creation of affordable housing. When a subdivision triggers the inclusionary housing requirements, the developer may chose from the incentives. The subdivision must go through the PUD process, during which City Council will make the decision as to whether or not the community benefit is sufficient to offset any requested waivers to the zoning/subdivision rules. For example, a development may be seeking a lower percentage of open space or a density bonus. The following three options are available to developers when a development triggers the inclusion of an affordable housing component. • An Affordable Housing Unit is defined as a unit within the adopted range of mortgages for non -subsidized units as adopted by the Whitefish Housing Authority. The mortgages on the list are affordable to households earning 60% to 125% area median income without any downpayment and closing cost assistance. Affordable units will make up a minimum of 10% of total units in the development. A chart of affordable mortgages is included at the end of this section. Gifted Lots are defined as improved lots with all infrastructure complete. Gifted lots receive a deferred hook up fee to city water and sewer. The developer does not have to pay the fees; the cost of the fee will be placed as lien on the land in the name of the City of Whitefish. Gifted lots must equal a minimum of 10% of. the total lots in the subdivision. • Cash in lieu payment is equal to $5,000 per unit x all units in the subdivision. At preliminary plat, a developer will agree that one of the three options listed above will be met by final plat, by which time any buy sell agreements, gifts of land, or payment in lieu must be complete. At the time of request for preliminary plat, the Whitefish Housing Authority will submit a letter to City Council documenting WHA preference of one of the three options above or a combination of the options. City Council is vested with the final decision. 2 The Whitefish Housing Authority and low and moderate -income homebuyers have benefited from the City of Whitefish actions in a number of ways: ➢ The Housin Fund: When a developer opts to use the incentives but not include the units in their development, they can pay a payment in Lieu of housing. The payment goes to the City of Whitefish Housing Fund. WHA will apply to the fund for a portion of our overall operation costs and for use as homebuyer assistance. At present, the Housing Fund will be used to aid homebuyers earning 81--125% AIM (federal grant sources do not allow use to a household over 80% AIVII). It is only through the use of this local funding source that WHA is able to aid moderate -income households. For example, the first use of city housing funds will assist city firefighter own a home within the city limits. At present the Housing Fund has a zero balance, however, the first payment is expected this summer. ➢ Obtain in houses at rites less than market value: In 2005, when the first development opted to use the incentives, the Housing Authority purchased three homes to date at prices $50,000 to $90,000 below their appraised value and has four more homes under contract to close in 2007. The decreased prices aid the WHA to use our limited funds to aid more households. ➢ Deferment of olant investment fees: When a developer builds the affordable homes, the City allows the deferment of the plant investment fees for that home. The city puts a lien on the property, and at resale, the city is repaid. Chart of Affordable housing Prices Households earning 50% to 125% Area Median Income This chart is used when a developer opts to build the affordable units. The maximum mortgage is the purchase price to the WHA. Area Maximum Median Annual Household Household Maximum Income* Income Income Mortgage** 60-70% $231400 - $27, 300 $ 27,300 $ 921000 70- 80% $271300 - $311200 $ 31,200 $ 1061000 80-9O% $31, 200 - $35,100 $ 35,100 $ 127,000 90-1 00% $35,100 - $39, O00 $ 39,000 $ 144, 000 100-110% $39, OOo - $427900 $ 42, 90O $ 161,000 110-125% $42,900 - $48,750 $ 48,750 $ 187,000 * Area Median Income (AMI) household of two Flathead County HUD 2006 $39,000 ** Maximum Mortgage based on Maximum Household Income Based on 30-year loan, 5.5% interest rate, no household debt, and 28% of income towards housing. N GLACIER AFFORDABLE HOUSING FOUNDATION Glacier Affordable Housing Foundation (GAHF), a 501(c) 3 organization, was formed in 1995 by Steven Van Helden, the then President of Glacier Bank. GAHF is governed by a Board of Directors who represent social service organizations, lenders, government, and low-income organizations, as well as the general public. The purpose of Glacier Affordable Housing Foundation is to provide a receptacle of funds dedicated expressly for affordable housing. Through partnerships with governmental and non-profit agencies, as well as lenders, public funds and private capital are combined to provide financial assistance to low -to -moderate income, first time homebuyers. Glacier Affordable Housing Foundation provides down payment and closing cost assistance on a deferred basis, with no payments due and no interest accruing. At such time as the borrower sells or refinances the property, the loan, together with a share of the equity, becomes due and payable. The "recaptured" funds are then "recycled" to provide down payment and closing cost assistance to additional eligible homebuyers. Operations Glacier Affordable Housing Foundation is currently located at 411 1st Ave. w., where office space and equipment has been provided by the City of Kalispell since the year 2000. Lynn Moon serves as the contracted employee who provides for the day-to-day operations. Glacier Bank staff volunteer their time to provide the accounting, underwriting, and loan processing services that allow the Foundation to operate with minimal paid staff. Thanks to the partnership with the City, federal grants have been secured by both the City and GAHF. Since 2000, this partnership has resulted in 114 first time homebuyers purchasing a home with a Kalispell address. These homebuyers have incomes at or below 80% of median income for Flathead County. Current Resources GAHF has historically received its funding through 4 sources — Federal Home Loan Bank of Seattle, Community Development Block Grant and HOME Grant (which are both federal grant programs administered by the Montana Department of Commerce) and recaptured funds from the home sales of previously assisted homebuyers. First mortgages are provided through USDA Rural Development Direct Loans or Montana Board of Housing set -aside program. The Rural Development Loans have a variable interest rate from 1 % - 6%. The MBOH funds are a fixed rate, currently at 5.5%. Issues 0. *'• Home values have continued to increase rapidly. The subsidy provided by G AHF to the first time homebuyer is valid for that purchase only. The amount of G AHF subsidy necessary to facilitate a home purchase has increased $17,43 3 in 1996 to $36,196 in 2006.At the time of the sale of the previously assisted property, the homeowner must share any equity gained in the same percentage that the subsidy represented of the original purchase price. The intent of the equity share was to provide a means of coping with the inflation that would occur between the original purchase date and the subsequent sales date. when G AHF was formed in 01 1995, this formula worked. However, with homes increasing in value approximately 125% in 10 years, the homes that are being sold by the previously assisted buyers are no longer affordable for subsequent buyers. In other words, the subsidy only works once, then the homes are unaffordable for the new buyers. According to the March 25, 2007 article in the Daily Interlake, only 17% of all homes listed for sale are below $200,000. GA.HF homebuyers, cannot have incomes that exceed 80% of median income, which is $39,300 for a family of four. The maximum mortgage that this level of income will support is $135,000. •:� Two of the federal grant programs (CDBG and HOME) have either been drastically cut or have substantially changed, which has resulted in GAHF relying on "recaptured" loans to provide assistance for first time homebuyers. '# Homeowners are staying in their homes longer, which has decreased the amount of "recaptured" loan funds available to assist new homebuyers. what ' s next? •'• Seek funding to establish a Community Land Trust (CLT). A Community Land Trust is a non-profit organization created to hold land for the benefit of a community and individuals within the community. A common goal for most CLTs is to provide and preserve affordable housing on this land. By maintaining ownership of the land and limiting the equity retained by the owner of the improvements on the land, the CLT can control housing costs by permanently "locking in" subsidies so that they benefit one homeowner after another and do not need to be repeated each time a home is sold. •'• Research additional funding opportunities from both public and private sources. •` Approach local governmental entities to ascertain what opportunities/resources are available to facilitate permanently affordable housing for persons at or below 8 0% of median income. Northwest Montana Human Resources, Inc. Community Action Partnership 214 Main Street P.O. Box 8300 Kalispell, Montana 59904-1300 Phone:406-752-6565 Fax:406-752-6582 E-mail: nmhr@kalhrdc.mt.gov www.nmhr-distIO.org A .Non -Profit Community Action Partner that Provides opportunities for Disadvantaged Citizens to Become Self -Sufficient District X HRIC t»1NCOLN FLATHEAD SANDERS LAKE FIEJJ� OFFICES LIBB Y April 2007 903 Farm -To -Market Rd, P.O. Box 233 Libby, MT 59923 406-293-2712 POLSON AFFORDABLE HOUSING SUMMARY 110 Main St. Suite 6 P.O. Sox 132 Poison, MT 59860 Northwest Montana Human Resources, Inc. (NMHR) is a community -based 406-883-3470 non --profit serving Lake, Lincoln, Sanders and Flathead counties for the past SUMCES 30 years by offering services and programs "to provide opportunities for Outreach and disadvantaged citizens to become self-sufficient." Advocacy Information and Referral NMHR has been involved in low-income housing development and Needs Assessments preservation for the past 15 years. We developed 10 units of transitional comDmeveloopmenarnic housing for homeless citizens at the Courtyard Apartments and partnered with E,h PLMMa the City of Kalispell as they built 15 units of very low-income housing on the AND TRAINING same site. NMHR still manages all 32 units. This project has been home to WIA Programs more than 730 individuals duringp ears. Y the past 13 woRC Program State Programs NMHR participated in the "Montana Preservation Project" in 1999, by being ENEMA PROGMMS Fuel Assistance the non-profit partner on 4 of the 7 apartment projects statewide. The 4 Energy Share projects in northwest Montana "preserved to affordability„ over 183 weatheriza#'°n apartments. The purchase and rehabilitation of these units was recognized '` USB Programs nationally by HUD as a "best of the best practices" awardee. Two of the Ombudsman HOLISM projects are Big Sky Manor and Sunridge Pointe in Kalispell. Self -Help Housing Technical Assistance Beginning in 2000, NMHR partnered with the USDA 515 program and section 8 Program Montana Board of Housing's (MBOH) Low --Income Housing Tax Credits AfordableApts. WHTC) and HOME programs to develop 24 low-income senior apartments in p Emergency Shelter Senior Home Repair Kalispell, followed by 20 in Columbia Falls. In 2003 we built 20 units of USDA Groupworkcamps 515 housing in Polson= followed by another 24 units in Columbia Falls in 2005. I_HOMESERYWCS Case Management These garden -style apartment communities allow our senior citizens an affordable option to live with dignity in new, safe, decent and sanity housing.personal Touch/ HomeCare NMHR entered a partnership with the USDA 523 Mutual Self -Help Housing and HUD SHOP programs in 2001. Our first 8 families built their homes in Flathead County in 2002 and 10 more completed theirs' in 2003. In 2004 the number of family -built houses increased by 20 and in 2005 28 families mutually built their own and each others' homes for a total of 72 to date. "Helping People. Changing Lives. „ Serving Our Communities Since 1976 Sixteen of the finished homes are in Kalispell and another "build" was just started by 10 more families in Kalispell. NMHR is committed to continuing the Mutual self -Help Housing "sweat equity" program into the future with 10 more opportunities planned for next year. NMHR also administers the Section 8 Rental Assistance program in our four county service area. In the past 10 years, this program has assisted over 3,000 families and 8,000 individuals with their rent. Thus, these low-income families have been more able to afford food and other family expenses while "getting on their feet." The current "wait list" for northwest Montana is over 1000 families, with an average wait of four years. Since 1997, Northwest Montana Human Resources, Inc. has operated a Senior Home Repair Program funded by MBOH HOME, weatherization, and local match dollars. NMHR has helped more than 90 senior homeowners in the Flathead complete health, safety and efficiency repairs to their homes. NMHR plans to re -use "pay back" dollars and hopes to gain new funding to expand and continue this much needed effort. Local government support of the administration of this program is critical. Northwest Montana Human Resources, Inc. has weatherized over 1,600 homes since 1996 in the 4 counties of northwest Montana. We have helped more than 3,800 people stay safer, warmer and spend significantly less on utilities. Once again, Northwest Montana Human Resources, Inc. is committed to the mission of "Helping People. Changing Lives." Individual and Family Opportunities Page 1 of 3 . W669L-1 RAJU:ra exopmen Committedto the future. of rural communities. . .... ............ Search Go Versi6n en Espaftol Rural Development Housing & Community Facilities Programs The following is a listing of HCFP programs which might be of interest to individuals interested in buying or renovating a home. Click on a link for a brief description of that program. Single Family Housing !Direct Loan Prop -ram Loan Guarantee Program Mutual Self-Hel- ousing-Program HOMe Repair and Preservation Direct Loan & Grant Income Limits (Guaranteed Loan Income Limits Homes for Sale The Single -Family Housing Program provides homeownership opportunities to low and moderate -income rural Americans through several loan, grant, and guarantee programs. The program also makes funding available to *individuals to finance vital improvements necessary to make their homes decent, safe, and sanitary. Direct Loan Program (Section 502) Linder the Direct Loan program, individuals or families receive direct financial assistance _ directly from the Housing and Community Facilities Programs in the form of a home loan at an affordable interest rate. Most of the loans made under the Direct Loan Program are to families with income below 80% of the median income level in the communities where they live. Since HCFP is able to make loans to those who will not qualify for a conventional loan, the HCFP Direct Loan program enables many more people to buy homes than might otherwise be possible. Direct loans may be made for the purchase of an existing home or for new home construction. http://www.rurdev.usda.gov/rhs/sfh/indiv_sfh.htm 3/11/2007 Individual and Family opportunities Page 2 of 3 To learn more details about this program, click here. Back tom Loan Guarantee Program (Section 502) Under the Guaranteed Loan program, the Housing and Community Facilities Programs guarantees loans made by private sector lenders. (A loan guarantee through HCFP means that, should the individual borrower default on the loan, HCFP will pay the private financier for the loam.) The individual works with the private lender and makes his or her payments to that lender. Under the terms of the program, an individual or family may borrow up to 100% of the appraised value of the home, which eliminates the need for a down payment. Since a common barrier to owning a home for many low-income people is the lack of funds to make a down payment, the availability of the loan guarantees from HCFP makes the reality of owning a home available to a much larger percentage of Americans. For more details about this program, click here. Back to To Mutual Self -Help Dousing Program (section 523) The Mutual Self -Help Housing Program makes homes affordable by enabling future homeowners to work on homes themselves. With this investment in the home, or "sweat equity", each homeowner pays less for his or her horne. Each qualified applicant is required to complete 65% of the work to build his or her own home. Technical Assistance Grants and Site Loans are provided to nonprofit and local government organizations, which supervise groups of S to 12 enrollees in the Self -Help Program. Members of each group help work on each other's homes, moving in only when all the homes are completed. Once accepted into the Self -Help Housing Program, each individual enrollee generally applies for a Single -Family Housing Direct Loan (Section 502). For more details about this program, click here. To see Self -Help �s Back tor_ ._. o Home Repair Loam and Grant Program (Section 504) For very low income families who own homes in need of repair, the Home Repair Loan and Grant Program offers loans and grants for renovation. The Home Repair Program also provides funds to make a home accessible to someone with disabilities. Money may be provided, for example, to repair a leaking roof; to replace a wood stove with http:llwww.rurdev.usda.gov/rhs/sfh/indiv_sfh.htm 3/11 /2007 Individual and Family opportunities Page 3 of 3 central heating; to construct a front -door ramp for someone using a wheelchair; or to replace an outhouse and pump with running water, a bathroom, and a waste disposal system. Homeowners 62 years and older are eligible for home improvement grants. other low income families and individuals receive loans at a 1 % interest rate directly from HCFP. For more details about this program, click here. Back_ to Toy HCFP Home Feedback Administrator's Corner Contacts Civil Rights Briefm Room Re ulatiansDI =FAIQs http:llwww.rurdev.usda.gov/rhs/sfh/indiv_sfh.htm 3/11 /2007 Housing Programs Statistics Page 1 of 1 Montana Housing Programs Statistics Single Family Housing 502 Direct Loans 504 Home Improvement Loan/Grant 523 Self Help 509 HAPG 525 Technical& Supervisory Assistance Grants Guaranteed Loans Multi Family Housing 515 Direct 533 Housing Preservation Grants 538 Guaranteed Loans 521 Rental Assistance Total Assistance to Rural Montanans FY 2003 $81591, 282. 00 $428,100.00 $0.00 $0.00 FY 2004 $14,310,353.00 $2911147.00 $6291750.00 $0,000.00 FY 2005 $15, 045, 318.00 $434,375.00 $954,681.00 $Z, 500. 00 $1501000.00 $0.00 $100,000.00 $55,053,460.00 $7817041235.00 $56,818,631.00 $75,222,848.00 $93,941,495.00 $74,355,505.00 FY 2003 $135,715.00 $0.00 $0.00 $4, 82G, 91 2.00 $4, 953, 52 7.00 FY 2004 $11365,690. 00 $811000.00 $7501000. 00 $419721224.00 FY 2005 $313341705.00 $50, 000.00 $0.00 $21494,032.00 $71158, 914.00 $51878, 737.00 $8091869475.00 $'1011110,410.00 $80,234,242.00 http:llwww.rurdev.usda.govlmtlRHS/housing_programs�statisties.htm 3/11/2007 SM94to FIMI INC. I24 0 AW W4 KdLq9k MT 59WI, *2S7-SWI Far more than just a meal and a bed for the night, the Samaritan House is Montana's premiere homeless shelter and transitional living program providing a broad range of services and supports to help them break the cycle of homelessness in their life. - AA 1 NA Meetings - Employment Counseling �Housing Assistance - Budgeting Classes - Mental Health Support -Case Management - Veteran Assistance - Developmental Disability Help Literacy Classes - Social Security Support-Lifeskills Classes - Tenant Based Rental Assistance Various other services and referrals as needed Hmkiwz bt Na&weg modAm Ist . ➢ Samaritan House is the only shelter in a five county area. ➢ 60% families, compared to 22% nationwide. ➢ People who have been in our community an average of 2 — 5 years. RLASOMSfii' HOMl6SS bl MMdMo ➢ 42% experienced an unforeseen financial event ➢ 31 % have a mental health issue or a substance abuse issue ➢ 19% were victims of domestic violence ➢ 7% had an unforeseen medical issue ➢ Most homeless have more than one of the above issues. 1999 2000 2001 2002 2003 2004 2005 2006 Individuals Served: unknown 988 11050 11,127 1,124 1,125 11,124 1,127 Total bed nights: 8,424 115900 13,760 16,106 11,824 11,702 11,547 113,786 Meals Served: 15,942 151,467 16,251 119010 14,264 14,197 135982 14,032 (Typically every bed is full every night) Individuals Turned Away (because shelter is full) 183 204 286 395 In every level of our services we are serving nearly 1,500 locally homeless people annually. Demand for services increased 28% last year. Top three solutions to the above: 1. Transitional Housing 2. Affordable Rental Housing 3. Affordable Housing Habitat for Humanity of Flathead Valley What is Habitat for Humanity? Habitat for Humanity International, headquartered in Americus, Georgia, is a nonprofit, ecumenical Christian housing ministry. HFHI seeks to eliminate poverty housing and homelessness from the world, and to make decent shelter a matter of conscience and action. Habitat for Humanity's work is accomplished at the community level by affiliates -independent, locally run, nonprofit organizations. As an independent affiliate, Habitat for Humanity of Flathead Valley coordinates all aspects of Habitat home building in the Flathead Valley area fund raising, building, site selection, partner family selection and support, house construction and mortgage servicing. How does it work? Through volunteer labor and donations of money and materials, Habitat builds simple, decent houses with the help of the homeowner (partner) families. Habitat houses are sold to partner families at no profit, financed with affordable, no -interest loans. The homeowners' monthly mortgage payments are used to build more Habitat houses. In addition to a down payment and the monthly mortgage payments, homeowners invest hundreds of hours of their own labor --W- sweat equity into building their Habitat house and the houses of others. How are the partner families selected? Families in need of decent shelter are chosen based on their level of need, their willingness to become partners in the program and their ability to repay the no -interest loan. Habitat for Humanity of Flathead Valley follows a nondiscriminatory policy of family selection. Neither race nor religion is a factor in choosing the families who receive Habitat homes. In the Flathead Valley, selected families must earn no more than 60 percent of the median income for our area, as determined by HUD. Resale store A related service of the local Habitat affiliate is the operation of a store that accepts donations of used and surplus building supplies and sells therm at half-price or less. This enables people to acquire construction and remodeling items cheaply, and it raises significant amounts of money for Habitat's building program. The Need Shelter is a basic human need. Hundreds of families in the Flathead Valley have been robbed of hope by a lack of adequate, affordable housing. Habitat's goal is to see that everyone has a decent place to live. Unfortunately, we are falling behind in our quest to eliminate substandard housing in our valley. We continue to build houses — more of them each year -- but nevertheless there has been an alarming growth in the need for affordable housing since our program started 18 years ago. Our current applicants include folks with solid jobs who cannot afford decent housing. In other words, the need is great and growing. Local and state statistics bear this out. The increasing cost of land, fees, permits, and infrastructure is a major obstacle to filling this need. It is up to our local officials to work to halt or reverse this trend toward scarcity of housing availability for hardworking, ordinary citizens. Resources Habitat is constantly seeking donations and grants. Substantial grants from business and charitable organizations have enabled us to acquire land, build infrastructure and purchase building materials. Numerous local businesses help us by offering discounts on their goods and services. And individual benefactors have provided us with important funds for our program. But we also value the smaller contributions of citizens who donate by the month, annually or on a one-time basis. Our greatest resource are our volunteers. Habitat has always depended on volunteers, not only to build houses but to raise money, find qualified families with whom to partner, educate these families in the responsibilities of home ownership, and offer them counseling and moral support. Without dedicated volunteers, Habitat simply could not operate. In 1989, Habitat for Humanity of the Flathead Valley became the first Habitat affiliate in the state on Montana, 20 families, nearly one hundred people, in the Flathead, have benefited from our Habitat program because of the generosity of hundreds of local everyday ordinary people who volunteer their time and talent, working together, raising funds and building houses for those in need. Over the past 30 years Habitat for Humanity International has been building shelter around the world housing over 1,000,000 people who previously were living in sub -standard poverty housing. Decent affordable shelter is a basic human need. A house to a family is like soil to a plant, both need a place to put down roots and grow into all that God intended.