Group Coordinator Group Coordinator Best Practices Best Practices

Group Coordinator Group Coordinator Best Practices Best Practices

Presented By: NCALL Research, Inc.

Updated July 2011

Presented By: NCALL Research, Inc.

Updated July 2011

Throughout this slide presentation, NCALL’s recommended “best

practices” will be notated with a *BP.

Throughout this slide presentation, NCALL’s recommended “best

practices” will be notated with a *BP.

Group Coordinator Responsibilities

Group Coordinator Responsibilities

The Group Coordinator’s job duties and responsibilities are crucial to the success of the program. They include:

Locating and screening participants Packaging 502 loan applications Preparing families for the construction phase and

homeownership Helping to track their progress during construction

If one of the duties is not fulfilled, the entire program can be put in jeopardy!

The Group Coordinator needs to read and know:

√ The 502 Loan Processing Guide√ Pre-Construction Meeting Guide√ Rural Development SHARES Manual

The Group Coordinator needs to read and know:

√ The 502 Loan Processing Guide√ Pre-Construction Meeting Guide√ Rural Development SHARES Manual

Typical Job Responsibilities

Typical Job Responsibilities

Outreach and recruit LI & VLI families Prepare 502 Rural Housing loans

applications for submission to RD Organize associations of participants for

construction Hold preconstruction meetings with

participants Counsel applicants on eligibility for the

program

Outreach and recruit LI & VLI families Prepare 502 Rural Housing loans

applications for submission to RD Organize associations of participants for

construction Hold preconstruction meetings with

participants Counsel applicants on eligibility for the

program5

Act as primary liaison between participants and RD

Encourage maximum participation during construction

Resolve individual/group problems Maintain proper records, including

SHARES Assist RD with other program issues,

if necessary

Act as primary liaison between participants and RD

Encourage maximum participation during construction

Resolve individual/group problems Maintain proper records, including

SHARES Assist RD with other program issues,

if necessary6

Fair HousingFair Housing

IntroductionIntroduction

The right to fair housing is set by law

Training in this area is crucialEffects every staff person in the

self-help programRight to fair housing enforced by

formal complaint process, litigation, testing and monitoring

Lack of knowledge is no excuse

The right to fair housing is set by law

Training in this area is crucialEffects every staff person in the

self-help programRight to fair housing enforced by

formal complaint process, litigation, testing and monitoring

Lack of knowledge is no excuse

The Fair Housing ActThe Fair Housing Act

Prohibits discrimination because of:Race or colorNational originReligionSexFamilial statusHandicap / Disability

Covers most housing, definitely federally financed

Law effects sale and mortgage

Prohibits discrimination because of:Race or colorNational originReligionSexFamilial statusHandicap / Disability

Covers most housing, definitely federally financed

Law effects sale and mortgage

Other Applicable LawsOther Applicable Laws

Know that housing laws exist and must be enforced. Such laws include:

Title VI of the Civil Rights Act of 1964 Section 504 of the Rehabilitation Act of

1973 Age Discrimination Act of 1975 Title II of the Americans with

Disabilities Act

Know that housing laws exist and must be enforced. Such laws include:

Title VI of the Civil Rights Act of 1964 Section 504 of the Rehabilitation Act of

1973 Age Discrimination Act of 1975 Title II of the Americans with

Disabilities Act

Section 109 of the Housing and Community Development Act of 1974

Title VIII, Title VI Record keeping requirements: racial &

ethnic data ((1901.202(g))

Helpful Websites: HUD: www.hud.govUSDA: www.rurdev.usda.gov

Section 109 of the Housing and Community Development Act of 1974

Title VIII, Title VI Record keeping requirements: racial &

ethnic data ((1901.202(g))

Helpful Websites: HUD: www.hud.govUSDA: www.rurdev.usda.gov

Affirmative Fair Housing Marketing Plan HUD Form 935.2b, required for self-help

program Follow instructions Use accurate information Marketing plan designed to attract those “least likely to apply”

Special outreach for those groups required Plan approved and monitored by Rural

Development Plan needs to be posted in a prominent

location

Affirmative Fair Housing Marketing Plan HUD Form 935.2b, required for self-help

program Follow instructions Use accurate information Marketing plan designed to attract those “least likely to apply”

Special outreach for those groups required Plan approved and monitored by Rural

Development Plan needs to be posted in a prominent

location

Fair Housing MarketingFair Housing Marketing

Fair Housing AdvertisingFair Housing Advertising

To comply with Fair Housing Act requirements must be metNo discriminatory or limiting words or

phrases allowedNo selective use of media and models

which can lead to discriminatory resultsUse fair housing policies and practices

All advertising for real estate must contain the equal housing opportunity logotype, statement or slogan

For further details, see Guide.

To comply with Fair Housing Act requirements must be metNo discriminatory or limiting words or

phrases allowedNo selective use of media and models

which can lead to discriminatory resultsUse fair housing policies and practices

All advertising for real estate must contain the equal housing opportunity logotype, statement or slogan

For further details, see Guide.

Equal Housing Opportunity Logotype -Equal Housing Opportunity Slogan

“Equal Housing Opportunity”Equal Housing Opportunity Statement

“We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support affirmative fair housing advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin.”

Equal Housing Opportunity Logotype -Equal Housing Opportunity Slogan

“Equal Housing Opportunity”Equal Housing Opportunity Statement

“We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support affirmative fair housing advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin.”

Participant Selection and the Membership

Agreement

Participant Selection and the Membership

Agreement *BP Two ways to ensure that all fair

housing laws are being followedConsistencyDocumentation

A person with a disability cannot be denied the right to participate in the Mutual Self-Help Housing Program

RD and grantees are to make reasonable accommodations which allow someone with a disability to participate

*BP Two ways to ensure that all fair housing laws are being followedConsistencyDocumentation

A person with a disability cannot be denied the right to participate in the Mutual Self-Help Housing Program

RD and grantees are to make reasonable accommodations which allow someone with a disability to participate

“Participating family” definition allows substitute labor with prior approval by State Director

In reward and punishments participants should be treated equally

Follow rules in Membership Agreement, always

“Participating family” definition allows substitute labor with prior approval by State Director

In reward and punishments participants should be treated equally

Follow rules in Membership Agreement, always

Identifying and Solving Potential Fair Housing

Problems

Identifying and Solving Potential Fair Housing

ProblemsContact Rural Development or HUD

immediatelyUse mediation and all available

resourcesUnderstand the complaint process

Complaints must be filled within one yearEither HUD or RD may investigateTry to reach a conciliation agreementIf agreement breached, further legal action

taken

Contact Rural Development or HUD immediately

Use mediation and all available resources

Understand the complaint processComplaints must be filled within one yearEither HUD or RD may investigateTry to reach a conciliation agreementIf agreement breached, further legal action

taken

Additional ResourcesAdditional Resources

Various fair housing training materials exist

HUD’s Fair Housing Information Clearinghouse has brochures, videos, PSAs, posters

Rural Development can also provide materials and training

Various fair housing training materials exist

HUD’s Fair Housing Information Clearinghouse has brochures, videos, PSAs, posters

Rural Development can also provide materials and training

Stay in ComplianceStay in Compliance

Review the Affirmative Fair Housing Marketing Plan every quarter to insure compliance

Enforce Fair Housing Advertising requirements

Display Fair Housing Posters as required by RD

Questions should be addressed to State Civil Right’s Coordinator

Review the Affirmative Fair Housing Marketing Plan every quarter to insure compliance

Enforce Fair Housing Advertising requirements

Display Fair Housing Posters as required by RD

Questions should be addressed to State Civil Right’s Coordinator

*BP Know Your Role

The Group Coordinator CANNOT decline or approve an applicant!The Group Coordinator CAN counsel participants about if and when their application should be submittedGroup Coordinators are not lawyers and should not provide legal counselDo not make decisions for a client, just educate them

*BP Know Your Role

The Group Coordinator CANNOT decline or approve an applicant!The Group Coordinator CAN counsel participants about if and when their application should be submittedGroup Coordinators are not lawyers and should not provide legal counselDo not make decisions for a client, just educate them

Participant Recruitment & Program Marketing

Participant Recruitment & Program Marketing

*BP No matter what happens, remember these three rules:

Do not get discouragedTry something newPlan ahead

*BP No matter what happens, remember these three rules:

Do not get discouragedTry something newPlan ahead

IntroductionIntroduction

Begin to Develop Recruitment PlanBegin to Develop Recruitment Plan

The 1st group of families should be ready to close their loans and start building

Investigate what was done in past

Review the Affirmative Fair Housing Marketing Plan

Carry out the strategies laid out in this document (where to advertise, who to contact)

RD may conduct a review at the end of the grant

The 1st group of families should be ready to close their loans and start building

Investigate what was done in past

Review the Affirmative Fair Housing Marketing Plan

Carry out the strategies laid out in this document (where to advertise, who to contact)

RD may conduct a review at the end of the grant

23

Developing a Recruitment Plan

Developing a Recruitment Plan

Step 1 - Know Your Target Market Where is your targeted market located?

Work, church, home, clubs, PTA, etc. What media reaches them? Radio, TV,

newspaper, etc. Where do they go and when?

Laundromats, gas stations, grocery stores, restaurants, daycare, community events

Who are your community partners? Social service agencies, lenders, rental agencies, realtors

Step 1 - Know Your Target Market Where is your targeted market located?

Work, church, home, clubs, PTA, etc. What media reaches them? Radio, TV,

newspaper, etc. Where do they go and when?

Laundromats, gas stations, grocery stores, restaurants, daycare, community events

Who are your community partners? Social service agencies, lenders, rental agencies, realtors

Ask the people who respond to recruitment efforts

Ask social service agencies

Step Two – Analyze the Information

Review the data collected to determine where and how to reach most families

Ask the people who respond to recruitment efforts

Ask social service agencies

Step Two – Analyze the Information

Review the data collected to determine where and how to reach most families

Step Three – InvestigateContact organizations, employers,

churches, radio stations, newspapers, etc.

Get the word out about your program!

What are your costs? Are there other FREE methods available?

Step Three – InvestigateContact organizations, employers,

churches, radio stations, newspapers, etc.

Get the word out about your program!

What are your costs? Are there other FREE methods available?

Step Four – Plan and Make Decisions Can you delegate tasks? Do you have to do everything yourself? What are your time frames and dates for

objectives? Cost is also very important. What does your

marketing and advertising budget look like? How can you make your program its most

effective? Refer back to “Recruitment Methods” for

some ideas

Step Four – Plan and Make Decisions Can you delegate tasks? Do you have to do everything yourself? What are your time frames and dates for

objectives? Cost is also very important. What does your

marketing and advertising budget look like? How can you make your program its most

effective? Refer back to “Recruitment Methods” for

some ideas

Step Five – Develop a Message Before contacting the media or

producing brochures, know what you want to say

The message is not and should not be intended to tell everything about the program.

All advertisements must have the equal housing opportunity

logotype or slogan on them

Step Five – Develop a Message Before contacting the media or

producing brochures, know what you want to say

The message is not and should not be intended to tell everything about the program.

All advertisements must have the equal housing opportunity

logotype or slogan on them

Five elements of a good message:1. Attract Attention – Create interest2. Stress Advantages & Benefits of

the Self-Help Housing Program3. Prove What you Say is True4. Persuade5. Ask for Action

Five elements of a good message:1. Attract Attention – Create interest2. Stress Advantages & Benefits of

the Self-Help Housing Program3. Prove What you Say is True4. Persuade5. Ask for Action

29

Attract Attention

An “Attention Getter” is needed to create interest

Could be a photo Use of color Exciting statement or question

Attract Attention

An “Attention Getter” is needed to create interest

Could be a photo Use of color Exciting statement or question

30

Stress Advantages and Benefits Product – the home itself Price – Low cost of the home, Low

interest rate, Families save money Self - Learning skills, improving

their life, becoming independent

Make a list and prioritize the benefits for your potential participants.

Stress Advantages and Benefits Product – the home itself Price – Low cost of the home, Low

interest rate, Families save money Self - Learning skills, improving

their life, becoming independent

Make a list and prioritize the benefits for your potential participants.

31

Benefits of Self-Help Housing

Means different things to different people

Decide which aspects are important to your targeted market

Incorporate these aspects into the message

Do not incorporate too many benefits

Benefits of Self-Help Housing

Means different things to different people

Decide which aspects are important to your targeted market

Incorporate these aspects into the message

Do not incorporate too many benefits

Sample Chart of Potential Benefits

Sample Chart of Potential Benefits

Product – Stress Advantage

Modern convenient, well built

Energy-efficient Quality materials Maintenance free Designed to meet

your needs Modern

appliances

Product – Stress Advantage

Modern convenient, well built

Energy-efficient Quality materials Maintenance free Designed to meet

your needs Modern

appliances

33

Price – Stress Value•House payments based on ability to pay•No down payment•Save money•Affordable financing•Best financing in the country for new construction

Self – Stress Improvements•Sense of accomplishment•Independence•Improving yourself•Doing better for yourself•Security. Happiness.•Better, safer environment for family•Develop construction/maintenance skills

Prove What You Say Is TrueFour tactics can be used:1. Testimonials – Past client speaks of benefits2. Comparative quality – Comparison between self-help home vs. contractor built home 3. Reputation - If your organization has a good reputation in the community, use it 4. Successful Performance – After 1st group is complete, potential families and community members see successful program and nice homes

Prove What You Say Is TrueFour tactics can be used:1. Testimonials – Past client speaks of benefits2. Comparative quality – Comparison between self-help home vs. contractor built home 3. Reputation - If your organization has a good reputation in the community, use it 4. Successful Performance – After 1st group is complete, potential families and community members see successful program and nice homes

34

PersuadeGet the potential participants to grasp that they can enjoy the benefits and rewards of becoming a successful homeowner

PersuadeGet the potential participants to grasp that they can enjoy the benefits and rewards of becoming a successful homeowner

35

Ask for Action Call today Coming by our office Attending the community meeting Mail in a coupon, etc. Make it easy Always be prepared

Ask for Action Call today Coming by our office Attending the community meeting Mail in a coupon, etc. Make it easy Always be prepared

36

Newspapers – Both daily and weekly, try free and paid advertising, featured article, ad positioning is critical, classified adds great in some areas, activities announcements

Radio - paid ads, PSAs, talk shows, interviews

Television - featured on the local news, local community forum programs or PSAs

Newspapers – Both daily and weekly, try free and paid advertising, featured article, ad positioning is critical, classified adds great in some areas, activities announcements

Radio - paid ads, PSAs, talk shows, interviews

Television - featured on the local news, local community forum programs or PSAs

37

Recruitment Methods to Try

Recruitment Methods to Try

Flyers, Posters, Handouts - simple, easy to read, attractive flyers for public distribution in RD offices, stores, laundromats, CAP agencies, social service agencies, community bulletin boards, restaurant, etc.

Brochures – can be the best marketing tool used, place in supermarkets, laundromats, restaurants, waiting areas, public service facilities

Direct Mailings - can be expensive, may be more rewarding, church mailings, waiting lists for subsidized rental housing, enlist assistance of social service agencies, AFDC agencies and local employers

Flyers, Posters, Handouts - simple, easy to read, attractive flyers for public distribution in RD offices, stores, laundromats, CAP agencies, social service agencies, community bulletin boards, restaurant, etc.

Brochures – can be the best marketing tool used, place in supermarkets, laundromats, restaurants, waiting areas, public service facilities

Direct Mailings - can be expensive, may be more rewarding, church mailings, waiting lists for subsidized rental housing, enlist assistance of social service agencies, AFDC agencies and local employers 38

Community MeetingsTrade Shows, Human Service Fairs,

Mall Exhibits, Community Fairs - consider time and effort needed

Organizations, Colleges, Trade Schools, Headstart, Migrant Education Centers

Community Action Agencies (CAA)Churches

Community MeetingsTrade Shows, Human Service Fairs,

Mall Exhibits, Community Fairs - consider time and effort needed

Organizations, Colleges, Trade Schools, Headstart, Migrant Education Centers

Community Action Agencies (CAA)Churches 39

Local governments – referrals for families, land, grants

Local employees - post brochures on their bulletin board, stuff employee paycheck envelopes, or set up a table in the break/lunch area

Contact members of low-income apartment complexes

Host a tenants’ meeting Ask to distribute letters to persons on

waiting lists for subsidized rental housing Meet with a core group of social service

repr., brainstorm on how to reach families

Local governments – referrals for families, land, grants

Local employees - post brochures on their bulletin board, stuff employee paycheck envelopes, or set up a table in the break/lunch area

Contact members of low-income apartment complexes

Host a tenants’ meeting Ask to distribute letters to persons on

waiting lists for subsidized rental housing Meet with a core group of social service

repr., brainstorm on how to reach families40

*BP Recruitment Methods Try many options to determine what

works best for you Stay in contact with the local media Try the classified ads! Radio stations – morning program usually

have a larger target listening area TV – try to get a local featured interview.

Public service announcements (PSA) are free – use them!

Paper distribution - Flyers, posters, handouts, brochures

*BP Recruitment Methods Try many options to determine what

works best for you Stay in contact with the local media Try the classified ads! Radio stations – morning program usually

have a larger target listening area TV – try to get a local featured interview.

Public service announcements (PSA) are free – use them!

Paper distribution - Flyers, posters, handouts, brochures

Market ResearchMarket Research

Eliminates trial and error in recruitment

Know which methods worked best and are reaching target market

Survey those who have responded to recruitment efforts

Continuously review and revise strategies to keep activities alive

Your goal should be to have “word of mouth” work for you

Eliminates trial and error in recruitment

Know which methods worked best and are reaching target market

Survey those who have responded to recruitment efforts

Continuously review and revise strategies to keep activities alive

Your goal should be to have “word of mouth” work for you 42

The News ReleaseThe News Release

Major vehicle for communicating with the media

Knowing the purpose, design and uses for them can improve your chances of getting published

*BP Send a “thank you” note for any publicity your agency receives

Major vehicle for communicating with the media

Knowing the purpose, design and uses for them can improve your chances of getting published

*BP Send a “thank you” note for any publicity your agency receives

43

The following guidelines should be useful:

Decide on the message – must be interesting to target market

Select the media – message and intended audience usually drives which media to use

Put it in writing – prepare a properly written release

Mail to the right person Mail by the deadline

The following guidelines should be useful:

Decide on the message – must be interesting to target market

Select the media – message and intended audience usually drives which media to use

Put it in writing – prepare a properly written release

Mail to the right person Mail by the deadline 44

Content of the ReleaseFamiliarize yourself with chosen

publicationSelect information of interestRemember the 5 “W”s – Who,

what, when, where, why …and sometimes how

Be sure that they are all in the story

Content of the ReleaseFamiliarize yourself with chosen

publicationSelect information of interestRemember the 5 “W”s – Who,

what, when, where, why …and sometimes how

Be sure that they are all in the story 45

News Release TipsKeep it briefWrite in a simple, factual styleAvoid opinionsDon’t make assumptionsBe accurateMake the story interesting

News Release TipsKeep it briefWrite in a simple, factual styleAvoid opinionsDon’t make assumptionsBe accurateMake the story interesting

46

Structure of a News ReleaseRule #1 - Keep sentences and

paragraphs short and clearRule #2 – Place all facts at the

beginning of the story with quotes

*BP News story sentences should be 16-21 words long. Paragraphs rarely should consist of more than three sentences.

Structure of a News ReleaseRule #1 - Keep sentences and

paragraphs short and clearRule #2 – Place all facts at the

beginning of the story with quotes

*BP News story sentences should be 16-21 words long. Paragraphs rarely should consist of more than three sentences.

47

FACTSDETAILSEND

Other Media TipsOther Media Tips

When the media calls: Be certain of who is calling and

from where Know the reason for the interview Know your facts or refer him/her to

the right person It is ok to get back with them on

information

When the media calls: Be certain of who is calling and

from where Know the reason for the interview Know your facts or refer him/her to

the right person It is ok to get back with them on

information48

Develop a list of key pointsMake time for the interview or

arrange to call them backDo not answer questions that

would violate confidentiality rules, legal restrictions, or agency policy

Do not say “no comment”, explain why you cannot comment

Be clear and polite

Develop a list of key pointsMake time for the interview or

arrange to call them backDo not answer questions that

would violate confidentiality rules, legal restrictions, or agency policy

Do not say “no comment”, explain why you cannot comment

Be clear and polite 49

During the Interview Say things that the interviewer will remember Always tell the truth If you do not know the answer, say so...Offer

to get back with them the answer and do so ASAP

Personalize your answers Avoid jargon Only state your agency’s position Rephrase negative or objective questions

During the Interview Say things that the interviewer will remember Always tell the truth If you do not know the answer, say so...Offer

to get back with them the answer and do so ASAP

Personalize your answers Avoid jargon Only state your agency’s position Rephrase negative or objective questions

50

On the RadioYour voice becomes your imageYour appearance is still importantMaintain good posture, it aids your

voice and appearanceDon’t let the microphone intimidate

youPractice enunciating your wordsPractice answering anticipated

questions

On the RadioYour voice becomes your imageYour appearance is still importantMaintain good posture, it aids your

voice and appearanceDon’t let the microphone intimidate

youPractice enunciating your wordsPractice answering anticipated

questions 51

Television Appearance Your appearance – Look in the mirror first,

practice minimizing jesters Your attire – Be clean and professionally dressed Avoid certain colors – Ask host what is

appropriate Speak conversationally Follow direction on where to look when

responding to questions Thank the host Ask for a copy

Television Appearance Your appearance – Look in the mirror first,

practice minimizing jesters Your attire – Be clean and professionally dressed Avoid certain colors – Ask host what is

appropriate Speak conversationally Follow direction on where to look when

responding to questions Thank the host Ask for a copy 52

The Section 502 Mortgage Loan Program

The Section 502 Mortgage Loan Program

Important ingredient for Mutual Self-Help Housing Program

Rural Development provides attractive financing to participants

Participants must qualify individually502 Loan Program governed by 7CFR

3550Group Coordinators should have a copy

of HB-1-3550, DLOS Field Office Handbook

Important ingredient for Mutual Self-Help Housing Program

Rural Development provides attractive financing to participants

Participants must qualify individually502 Loan Program governed by 7CFR

3550Group Coordinators should have a copy

of HB-1-3550, DLOS Field Office Handbook

IntroductionIntroduction

Can be used to build, rehabilitate or improve an existing home

Reasonable expenses related to obtaining the loan

Legal, architectural and engineering fees, title clearance, loan closing fees, appraisal, environmental, tax monitoring

Cost of special design features because of disability

Connection feesReasonable lender charges and fees

Can be used to build, rehabilitate or improve an existing home

Reasonable expenses related to obtaining the loan

Legal, architectural and engineering fees, title clearance, loan closing fees, appraisal, environmental, tax monitoring

Cost of special design features because of disability

Connection feesReasonable lender charges and fees

Loan Purposes & UsesLoan Purposes & Uses

Real estate taxes due at closing and to set up escrow account

Purchase and installation of essential equipment (ranges, refrigerators, dishwashers, washers or dryers) Participants may want to pay for some of these

items themselves Site preparation, energy saving measures

(Mutual 523 Grantees are not eligible to receive packaging fees for RD self-help

housing loans.)

Real estate taxes due at closing and to set up escrow account

Purchase and installation of essential equipment (ranges, refrigerators, dishwashers, washers or dryers) Participants may want to pay for some of these

items themselves Site preparation, energy saving measures

(Mutual 523 Grantees are not eligible to receive packaging fees for RD self-help

housing loans.) 56

DefinitionsDefinitions

Simple Interest – calculated on the outstanding principal balance for a specific period

Compounded Interest – calculated on the outstanding principal balance plus any accumulated interest

Daily Accrued Interest – interest is charged on the daily principal balance

Interest Accrued Monthly – interest is charged monthly

Amortization Schedule – table showing loan payments by equal periodic payments calculated to retire the principal at the end of a fixed period and to pay accrued interest on the outstanding balance

PITI – Principal, Interest, Taxes, and Insurance

Simple Interest – calculated on the outstanding principal balance for a specific period

Compounded Interest – calculated on the outstanding principal balance plus any accumulated interest

Daily Accrued Interest – interest is charged on the daily principal balance

Interest Accrued Monthly – interest is charged monthly

Amortization Schedule – table showing loan payments by equal periodic payments calculated to retire the principal at the end of a fixed period and to pay accrued interest on the outstanding balance

PITI – Principal, Interest, Taxes, and Insurance57

Loan TermsLoan Terms

Repayment Period The repayment period will not exceed the

expected useful life of the property 33 years - most common term 38 years if the annual adjusted income

does not exceed 60% of median and is necessary to show repayment ability

Repayment Period The repayment period will not exceed the

expected useful life of the property 33 years - most common term 38 years if the annual adjusted income

does not exceed 60% of median and is necessary to show repayment ability

58

Interest RatesInterest Rates

502 mortgage loan based on SIMPLE INTEREST ACCRUED MONTHLY

First loan payment due 30 days from the date RD converts the loan from a construction to a permanent loan

Central Servicing Center (CSC) takes over service of the loan

Payments are due on that date every month thereafter

Payments received 15 days after due date assessed late fee of 4%

502 mortgage loan based on SIMPLE INTEREST ACCRUED MONTHLY

First loan payment due 30 days from the date RD converts the loan from a construction to a permanent loan

Central Servicing Center (CSC) takes over service of the loan

Payments are due on that date every month thereafter

Payments received 15 days after due date assessed late fee of 4% 59

60

502 Program has 2 interest ratesActual interest rate

Fixed for the duration of the loanUsed on the Truth in Lending StatementGovernment’s current cost of borrowingWill be the lower of the rates in effect at

time of loan approval or loan closingEffective interest rate

VariesDetermined by amount of payment

assistanceReviewed based on circumstances and could

change annually

502 Program has 2 interest ratesActual interest rate

Fixed for the duration of the loanUsed on the Truth in Lending StatementGovernment’s current cost of borrowingWill be the lower of the rates in effect at

time of loan approval or loan closingEffective interest rate

VariesDetermined by amount of payment

assistanceReviewed based on circumstances and could

change annually

Loan FeaturesLoan Features

61

No Down payment requiredApplicants are expected to reduce need

for loan funds if:Cash value of non-retirement household

assets greater than $7,500, or $10,000 for elderly households

For a non-retired applicant, if the market value of retirement assets is greater than the applicable AMI limit, the cash value of assets in excess of that must be used to reduce the loan amount

For retired applicants, if income is derived from retirement assets alone, or retirement assets and other retirement income, the applicant not required to use these assets as a downpayment

No Down payment requiredApplicants are expected to reduce need

for loan funds if:Cash value of non-retirement household

assets greater than $7,500, or $10,000 for elderly households

For a non-retired applicant, if the market value of retirement assets is greater than the applicable AMI limit, the cash value of assets in excess of that must be used to reduce the loan amount

For retired applicants, if income is derived from retirement assets alone, or retirement assets and other retirement income, the applicant not required to use these assets as a downpayment

Market Value – The dollar value on the open market

Cash Value – The market value less reasonable expenses to convert the asset to cash

(The exception to the asset limitation occurs when a family is experiencing non-reimbursed medical expenses in excess of 3% of annual income.)

(See “Adjusting Income” section for clarification)

Market Value – The dollar value on the open market

Cash Value – The market value less reasonable expenses to convert the asset to cash

(The exception to the asset limitation occurs when a family is experiencing non-reimbursed medical expenses in excess of 3% of annual income.)

(See “Adjusting Income” section for clarification)

62

Types of AssetsTypes of Assets

The following types of assets must be considered:Non-retirement assets including:

Savings accounts, avg. 6-mo. balance of checking accounts, stocks, bonds, savings certificates

Money market fundsEquity in real property, trust funds, Personal property (such as jewelry) held as an

investment Cash value of life insurance policies

The following types of assets must be considered:Non-retirement assets including:

Savings accounts, avg. 6-mo. balance of checking accounts, stocks, bonds, savings certificates

Money market fundsEquity in real property, trust funds, Personal property (such as jewelry) held as an

investment Cash value of life insurance policies

63

Retirement Assets including:Amounts in voluntary retirement

plans that can be withdrawn, such as individual retirement accounts (IRAs), 401(k) plans and Keogh accounts

Amounts in other retirement and pension plans that can be withdrawn without retiring or terminating employment

Retirement Assets including:Amounts in voluntary retirement

plans that can be withdrawn, such as individual retirement accounts (IRAs), 401(k) plans and Keogh accounts

Amounts in other retirement and pension plans that can be withdrawn without retiring or terminating employment

64

Assets not considered:Value of necessary personal property…

furniture and automobilesBusiness, trade or farming operation assets

where member of household is actively engaged

Value of irrevocable trustFor income calculation, any assets on hand

that will be used to reduce the amount of the loan

Assets not considered:Value of necessary personal property…

furniture and automobilesBusiness, trade or farming operation assets

where member of household is actively engaged

Value of irrevocable trustFor income calculation, any assets on hand

that will be used to reduce the amount of the loan

65

Loan Payments During the Loan Payments During the Construction PeriodConstruction Period

Loan Payments During the Loan Payments During the Construction PeriodConstruction Period

Mortgage payments deferred during construction period

Participants’ first mortgage payment is deferred until 30 days after move-in

Triggered by local office converting from construction to permanent loan

CSC takes over servicing upon conversion The participant makes no construction

interest payments during construction period

Mortgage payments deferred during construction period

Participants’ first mortgage payment is deferred until 30 days after move-in

Triggered by local office converting from construction to permanent loan

CSC takes over servicing upon conversion The participant makes no construction

interest payments during construction period

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Construction InterestConstruction Interest

Interest accrues on the loan during the construction period based on the subsidized interest rate

This interest is amortized into the mortgage at the end of the construction period

Drawdowns should be kept to a minimum Fewer and larger drawdowns will increase

the amount of borrowers’ mortgage loans at the end of construction

Interest accrues on the loan during the construction period based on the subsidized interest rate

This interest is amortized into the mortgage at the end of the construction period

Drawdowns should be kept to a minimum Fewer and larger drawdowns will increase

the amount of borrowers’ mortgage loans at the end of construction

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Construction Loan BalancesConstruction Loan Balances

The balance of loan funds after construction may be used for additional authorized loan purposes

Borrower and RD must agree on usage of funds

Must be documented If no agreement, funds will be applied to the

borrower’s outstanding principal balance Loan funds in excess of 10% of the loan

balance and are applied to the outstanding principal balance, will be re-amortized to reduce the borrower’s monthly payments

The balance of loan funds after construction may be used for additional authorized loan purposes

Borrower and RD must agree on usage of funds

Must be documented If no agreement, funds will be applied to the

borrower’s outstanding principal balance Loan funds in excess of 10% of the loan

balance and are applied to the outstanding principal balance, will be re-amortized to reduce the borrower’s monthly payments

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MoratoriumsMoratoriums

Suspends the borrower’s requirement of making monthly payments for up to a 2-year period

Temporary solution intended to help borrowers recover from financial difficulties without risk of foreclosure

Moratorium can include escrow payments

Circumstances must be beyond borrower’s control

Suspends the borrower’s requirement of making monthly payments for up to a 2-year period

Temporary solution intended to help borrowers recover from financial difficulties without risk of foreclosure

Moratorium can include escrow payments

Circumstances must be beyond borrower’s control

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Moratoriums only allowed for the following reasons: Borrower’s repayment income falls at least 20%

within 12 months and only after considered for increase in payment assistance

Borrower must pay unexpected and non-reimbursed expenses resulting from an accident, illness, injury, or death of a family member

Borrower must pay unexpected and non-reimbursable expenses resulting from damage occurred to the property when adequate hazard insurance was not available

Moratoriums only allowed for the following reasons: Borrower’s repayment income falls at least 20%

within 12 months and only after considered for increase in payment assistance

Borrower must pay unexpected and non-reimbursed expenses resulting from an accident, illness, injury, or death of a family member

Borrower must pay unexpected and non-reimbursable expenses resulting from damage occurred to the property when adequate hazard insurance was not available 70

Extra PaymentsExtra Payments

Payments in excess of the regular payments will be applied to the loan in the following order:1. To any outstanding fees and charges2. To reduce the loan’s principal balance

Prepayment of the scheduled payment is permitted

A reduction in 10% of loan balance is required before loan can be reamortized

Payments in excess of the regular payments will be applied to the loan in the following order:1. To any outstanding fees and charges2. To reduce the loan’s principal balance

Prepayment of the scheduled payment is permitted

A reduction in 10% of loan balance is required before loan can be reamortized

71

Escrow Accounts and Payments

Escrow Accounts and Payments

RD requires borrowers to establish escrow accounts

Borrower’s monthly mortgage payment includes 1/12th of the estimated annual taxes and insurance

These amounts included in borrower’s regular monthly payment and deposited into the escrow account

RD maintains this account and pays these bills on behalf of the borrower

RD requires borrowers to establish escrow accounts

Borrower’s monthly mortgage payment includes 1/12th of the estimated annual taxes and insurance

These amounts included in borrower’s regular monthly payment and deposited into the escrow account

RD maintains this account and pays these bills on behalf of the borrower

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Borrowers will be counseled by RD and the grantee about being responsible for the initial escrow deposit and any taxes that may become due during construction

These funds can be handled two ways:1. Taxes must be paid during construction and the

initial escrow deposit can be included in the loan amount, Applicant is responsible for shortages

2. Taxes due during construction period and the initial escrow deposit is paid from personal funds, Borrower pays the tax bill and provides a copy of paid tax bill to RD

Borrowers will be counseled by RD and the grantee about being responsible for the initial escrow deposit and any taxes that may become due during construction

These funds can be handled two ways:1. Taxes must be paid during construction and the

initial escrow deposit can be included in the loan amount, Applicant is responsible for shortages

2. Taxes due during construction period and the initial escrow deposit is paid from personal funds, Borrower pays the tax bill and provides a copy of paid tax bill to RD

73

Payment AssistancePayment Assistance

Payment subsidies used to make the loan affordable to low and very-low income

All new borrowers with RD will receive their subsidy in the form of “Payment Assistance”

This assistance subsidizes a portion of the interest due on the monthly payment

Is the difference between the amount due at the promissory note rate and the rate that the participant pays

Payment subsidies used to make the loan affordable to low and very-low income

All new borrowers with RD will receive their subsidy in the form of “Payment Assistance”

This assistance subsidizes a portion of the interest due on the monthly payment

Is the difference between the amount due at the promissory note rate and the rate that the participant pays

74

Payment Assistance looks like this:P&I payment at note rate of 8%

$397.98P&I payment at 1% rate -

$164.31Difference = Payment assistance

$233.67

Payment Assistance looks like this:P&I payment at note rate of 8%

$397.98P&I payment at 1% rate -

$164.31Difference = Payment assistance

$233.67

75

Participant’s payment is applied as such:

Participant P&I payment$164.31

Principal at note rate 8% -$ 28.65

Interest paid by borrower $135.66Interest paid by RD $233.67

Participant’s payment is applied as such:

Participant P&I payment$164.31

Principal at note rate 8% -$ 28.65

Interest paid by borrower $135.66Interest paid by RD $233.67

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The participant pays the greater of: The payment amortized at 1%

interest plus taxes and insurance; or 24% of their adjusted monthly

income.

(If the loan is leveraged, only the 1% interest method is used)

The participant pays the greater of: The payment amortized at 1%

interest plus taxes and insurance; or 24% of their adjusted monthly

income.

(If the loan is leveraged, only the 1% interest method is used)

77

Actual payment assistance received in first year of loan not calculated by RD until after the completion of the house

Due to many variables (household income, household size, subsequent loans, construction interest, etc.) that can effect the participant’s payment and assistance

Actual payment assistance received in first year of loan not calculated by RD until after the completion of the house

Due to many variables (household income, household size, subsequent loans, construction interest, etc.) that can effect the participant’s payment and assistance

78

Payment Assistance RenewalPayment Assistance Renewal

Payment assistance agreements valid for 24-months

Require re-certification at the end of the period Based on increase or decrease of the borrower’s

income or household composition, the amount of payment assistance can increase or decrease

Borrowers must notify RD of these changes Monthly payment remains affordable depending

on their circumstances When adjusted income reaches level that RD

feels can substantiate a conventional mortgage, the borrower is asked to refinance

Payment assistance agreements valid for 24-months

Require re-certification at the end of the period Based on increase or decrease of the borrower’s

income or household composition, the amount of payment assistance can increase or decrease

Borrowers must notify RD of these changes Monthly payment remains affordable depending

on their circumstances When adjusted income reaches level that RD

feels can substantiate a conventional mortgage, the borrower is asked to refinance

79

RecaptureRecapture

Borrowers can receive a substantial amount of payment subsidy over life of loan

Borrowers required to repay a portion of subsidy received when property title transfers or borrower ceases to meet occupancy requirements

Amount repaid government based on a percentage of value appreciation Value appreciation is calculated after closing costs, original

equity, all lien holders’ balances, capital improvement value, and principal reductions due to payments at both note rate and subsidized rate are deducted from the sales price or market value of the property

More information on Subsidy Recapture in HB-2-3550, DLOS CSC, Chapter 2, Section 5: Recapture. (http://rurdev.usda.gov/supportdocuments/3550-2chapter02.pdf)

Borrowers can receive a substantial amount of payment subsidy over life of loan

Borrowers required to repay a portion of subsidy received when property title transfers or borrower ceases to meet occupancy requirements

Amount repaid government based on a percentage of value appreciation Value appreciation is calculated after closing costs, original

equity, all lien holders’ balances, capital improvement value, and principal reductions due to payments at both note rate and subsidized rate are deducted from the sales price or market value of the property

More information on Subsidy Recapture in HB-2-3550, DLOS CSC, Chapter 2, Section 5: Recapture. (http://rurdev.usda.gov/supportdocuments/3550-2chapter02.pdf)

80

Site RequirementsSite Requirements

Must be located in a rural area: Open country and communities with populations up to

10,000, OR Cities with populations over 10,000 but not in excess of

20,000 that are outside the Metropolitan Statistical Area (MSA) and that have a lack of mortgage credit..

Property must have direct access from a street, road or driveway, meeting requirements of 1924-C

Lot size cannot be subdivided into two or more adequate sites

Must be located in a rural area: Open country and communities with populations up to

10,000, OR Cities with populations over 10,000 but not in excess of

20,000 that are outside the Metropolitan Statistical Area (MSA) and that have a lack of mortgage credit..

Property must have direct access from a street, road or driveway, meeting requirements of 1924-C

Lot size cannot be subdivided into two or more adequate sites

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Must have an adequate water and waste water system Must meet the applicable water and/or waste

water disposal system requirements of RD Instruction 1924-C

Must be of adequate size as required by the State’s Dept. of Health or other regulatory agency

Privately owned systems must comply with the Safe Drinking Water Act and the Clean Water Act

Must meet environmental requirements in 1940-G and 426.2 All mortgage loan applicants will receive

appropriate level of environmental review

Must have an adequate water and waste water system Must meet the applicable water and/or waste

water disposal system requirements of RD Instruction 1924-C

Must be of adequate size as required by the State’s Dept. of Health or other regulatory agency

Privately owned systems must comply with the Safe Drinking Water Act and the Clean Water Act

Must meet environmental requirements in 1940-G and 426.2 All mortgage loan applicants will receive

appropriate level of environmental review82

Modest Site Land value cannot exceed 30% of as-

improved market value of the property unless waived by State Director

Waiver possible when site cannot be subdivided and cost is typical for the area and is evidenced by appraisal and practices of other lenders

Modest Site Land value cannot exceed 30% of as-

improved market value of the property unless waived by State Director

Waiver possible when site cannot be subdivided and cost is typical for the area and is evidenced by appraisal and practices of other lenders

83

Ownership RequirementsOwnership Requirements

Normal 502 ownership is fee simple, if not, see 7CFR Part 3550.107

Normal 502 ownership is fee simple, if not, see 7CFR Part 3550.107

84

Fee Simple Owner entitled to all rights related to the property Highest type of ownership in real estate known to law Owner can do anything with his land allowed by law

Individual Ownership Single ownership in a fee simple title means that all the rights,

privileges, and responsibilities belong solely to one party May be individual, corporation, non-profit organization or other

legally recognized entity

Joint Ownership When two or more parties share ownership rights and

responsibilities Each party must get other parties’ consent to dispose of the

real property or, of rights to it – in some areas consent does not apply

Fee Simple Owner entitled to all rights related to the property Highest type of ownership in real estate known to law Owner can do anything with his land allowed by law

Individual Ownership Single ownership in a fee simple title means that all the rights,

privileges, and responsibilities belong solely to one party May be individual, corporation, non-profit organization or other

legally recognized entity

Joint Ownership When two or more parties share ownership rights and

responsibilities Each party must get other parties’ consent to dispose of the

real property or, of rights to it – in some areas consent does not apply

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Modest Dwelling RequirementsModest Dwelling Requirements

Houses must be modest They cannot exceed the cost of other modest

housing in the area and cannot have prohibited features

No in-ground swimming pools No structures designed for income producing

facilities or purposes (Exceptions: home-based operations such as childcare, product sales, or craft production)

New construction must meet requirements of 1924-A, including the thermal performance standards in 1924-A, Exhibit D

Houses must be modest They cannot exceed the cost of other modest

housing in the area and cannot have prohibited features

No in-ground swimming pools No structures designed for income producing

facilities or purposes (Exceptions: home-based operations such as childcare, product sales, or craft production)

New construction must meet requirements of 1924-A, including the thermal performance standards in 1924-A, Exhibit D

Maximum loan amount and cost Dwelling costs cannot exceed maximum dollar

limitation established by RD Based on the cost of modest housing in the area Appraised value cannot exceed the RD limit Includes the cost of the property, total cost paid

by RD loan, loan from other sources, other applicants own funds, and the value of a site already owned by the applicant

Exception: The appraisal fee, tax servicing fee and the initial contribution to the escrow account are the exceptions when a loan can exceed the limit if approved by the State Director

Maximum loan amount and cost Dwelling costs cannot exceed maximum dollar

limitation established by RD Based on the cost of modest housing in the area Appraised value cannot exceed the RD limit Includes the cost of the property, total cost paid

by RD loan, loan from other sources, other applicants own funds, and the value of a site already owned by the applicant

Exception: The appraisal fee, tax servicing fee and the initial contribution to the escrow account are the exceptions when a loan can exceed the limit if approved by the State Director

Exceptions to the Maximum Loan Amount and Cost

Exceptions permitted when existing mortgage limit is insufficient to provide for adequate housing

State Director can approve increases of $20,000 or less, Deputy Administrator, Single Family Housing must approve larger increases

Must have specific data and documentation to prove limit insufficient and that the modest housing costs in the area exceed the maximum loan limits, or a community has different maximum loan limit (usually because of a specified high cost area)

May be necessary to accommodate specific needs of a family, to correct overcrowding, or to accommodate a household member with a disability

Exceptions to the Maximum Loan Amount and Cost

Exceptions permitted when existing mortgage limit is insufficient to provide for adequate housing

State Director can approve increases of $20,000 or less, Deputy Administrator, Single Family Housing must approve larger increases

Must have specific data and documentation to prove limit insufficient and that the modest housing costs in the area exceed the maximum loan limits, or a community has different maximum loan limit (usually because of a specified high cost area)

May be necessary to accommodate specific needs of a family, to correct overcrowding, or to accommodate a household member with a disability

Eligibility RequirementsEligibility Requirements

Current Housing RequirementsThe applicant cannot own an existing dwelling

except to: Refinance an existing loan under certain

conditions Purchase a new dwelling if current dwelling

lacks complete plumbing, adequate heating, is dilapidated or structurally unsound, has an overcrowding condition or that is uninhabitable

To make necessary repairs to a property that is financed with an affordable non-RHS loan

Current homeowners with an RHS loan may receive a subsequent loan

Current Housing RequirementsThe applicant cannot own an existing dwelling

except to: Refinance an existing loan under certain

conditions Purchase a new dwelling if current dwelling

lacks complete plumbing, adequate heating, is dilapidated or structurally unsound, has an overcrowding condition or that is uninhabitable

To make necessary repairs to a property that is financed with an affordable non-RHS loan

Current homeowners with an RHS loan may receive a subsequent loan

Ability to Obtain Other CreditThe applicant must be unable to

secure necessary credit from other sources

RD will provide information on area lenders participating in the 502 guaranteed and participation loan program to all applicants who are required to seek other credit

Ability to Obtain Other CreditThe applicant must be unable to

secure necessary credit from other sources

RD will provide information on area lenders participating in the 502 guaranteed and participation loan program to all applicants who are required to seek other credit

Citizenship Requirements Applicants must be a US citizen or a non-

citizen who qualifies as a legal alien When the application indicates that the

applicant is a non-citizen, evidence of lawful admission to the US is required

RD personnel will obtain Verification is required only when they

indicate on the application that they are not a US citizen

Citizenship Requirements Applicants must be a US citizen or a non-

citizen who qualifies as a legal alien When the application indicates that the

applicant is a non-citizen, evidence of lawful admission to the US is required

RD personnel will obtain Verification is required only when they

indicate on the application that they are not a US citizen

Age/Capacity Requirements Applicant must be considered an adult under

state law and have the legal capacity to incur a loan obligation or

An applicant with a court appointed guardian or conservator who is empowered to obligate the applicant in real estate matters is eligible for the loan

*BP Assume that an applicant has the legal capacity to enter into a loan unless there is

evidence to indicate otherwise

Age/Capacity Requirements Applicant must be considered an adult under

state law and have the legal capacity to incur a loan obligation or

An applicant with a court appointed guardian or conservator who is empowered to obligate the applicant in real estate matters is eligible for the loan

*BP Assume that an applicant has the legal capacity to enter into a loan unless there is

evidence to indicate otherwise

Residence Requirements Applicant must have the potential ability

to personally occupy the home on a permanent basis

Typically, military or active duty personnel or full-time students will not be granted loans unless:

Military personnel will be discharged within a reasonable period of time, usually within 1 year of the loan

And the family will occupy the home if the borrower is transferred to another duty station before discharge

Residence Requirements Applicant must have the potential ability

to personally occupy the home on a permanent basis

Typically, military or active duty personnel or full-time students will not be granted loans unless:

Military personnel will be discharged within a reasonable period of time, usually within 1 year of the loan

And the family will occupy the home if the borrower is transferred to another duty station before discharge

Full-time students who intend to make the home a permanent residence and there are reasonable prospects that employment will be available after graduation

If, after obtaining a loan, the borrowers’ employment transfers the family, borrower can rent the property for up to 2 years while the property is on the market. However, the borrower’s payment will be graduated to the full note rate.

Full-time students who intend to make the home a permanent residence and there are reasonable prospects that employment will be available after graduation

If, after obtaining a loan, the borrowers’ employment transfers the family, borrower can rent the property for up to 2 years while the property is on the market. However, the borrower’s payment will be graduated to the full note rate.

Full Disclosure Requirement Applicant must provide truthful information

when applying for the program Those who give false information or fail to

disclose relevant information will be denied program assistance

Suspension or Debarment Requirement If an applicant has been suspended or

debarred from participating in Federal Programs, they are not eligible for this program

Full Disclosure Requirement Applicant must provide truthful information

when applying for the program Those who give false information or fail to

disclose relevant information will be denied program assistance

Suspension or Debarment Requirement If an applicant has been suspended or

debarred from participating in Federal Programs, they are not eligible for this program

Credit Requirement Applicants must have credit history that

shows that they have a willingness to meet their obligations when due

Credit history over the last 3 years will be evaluated

Credit Requirement Applicants must have credit history that

shows that they have a willingness to meet their obligations when due

Credit history over the last 3 years will be evaluated

Unless RD determines cause was beyond applicant’s control, the following would indicate unacceptable credit:Little or no credit history

May be mitigated if the applicant can document a willingness to pay recurring debts through other acceptable means (Due to impartiality issues, third party verifications from relatives of household members are not permissible)

Copies of canceled checks, or other acceptable documentation from monthly obligations such as rent, utilities, cell phone, doctor’s bills or other recurring debt payments

Unless RD determines cause was beyond applicant’s control, the following would indicate unacceptable credit:Little or no credit history

May be mitigated if the applicant can document a willingness to pay recurring debts through other acceptable means (Due to impartiality issues, third party verifications from relatives of household members are not permissible)

Copies of canceled checks, or other acceptable documentation from monthly obligations such as rent, utilities, cell phone, doctor’s bills or other recurring debt payments

Indicators of Unacceptable Credit History

Indicators of Unacceptable Credit History

Payments on any installment account where the amount of the delinquency exceeded one installment for more than 30 days within the last 12 months

Payments on any revolving account which was delinquent for more than 30 days on two or more occasions within the last 12 months

Foreclosure completed within the last 36 months

Outstanding IRS tax lien or any other outstanding tax liens with no satisfactory arrangement for payment

Payments on any installment account where the amount of the delinquency exceeded one installment for more than 30 days within the last 12 months

Payments on any revolving account which was delinquent for more than 30 days on two or more occasions within the last 12 months

Foreclosure completed within the last 36 months

Outstanding IRS tax lien or any other outstanding tax liens with no satisfactory arrangement for payment

Two or more rent or mortgage payments paid 30 or more days late within the last 2 years

If the applicant has experienced no other credit problems in the past 2 years, only 1 year of rent history will be evaluated

This requirement may be waived if the program loan will reduce shelter costs significantly and contribute to improved repayment ability

Outstanding collection accounts with a record of irregular payments with no satisfactory arrangements for repayment, or collection accounts that were paid in full within the last 6 months, unless the applicant had been making regular payments previously

Two or more rent or mortgage payments paid 30 or more days late within the last 2 years

If the applicant has experienced no other credit problems in the past 2 years, only 1 year of rent history will be evaluated

This requirement may be waived if the program loan will reduce shelter costs significantly and contribute to improved repayment ability

Outstanding collection accounts with a record of irregular payments with no satisfactory arrangements for repayment, or collection accounts that were paid in full within the last 6 months, unless the applicant had been making regular payments previously

Non-agency debts written off within the last 36 months, unless the debt was paid in full at least 12 months ago

Agency debts that were debt settled within the past 36 months, or are being considered for debt settlement

Delinquency on a federal debt

Non-agency debts written off within the last 36 months, unless the debt was paid in full at least 12 months ago

Agency debts that were debt settled within the past 36 months, or are being considered for debt settlement

Delinquency on a federal debt

A court-created or court-affirmed obligation or judgment caused by nonpayment that is currently outstanding or has been outstanding within the last 12 months, except a bankruptcy in which:

Debts were discharged more than 36 months prior to the date of application; or

Where an applicant successfully completed a bankruptcy debt restructuring plan and has demonstrated a willingness to meet obligations when due for the 12 months prior to the date of application.

A court-created or court-affirmed obligation or judgment caused by nonpayment that is currently outstanding or has been outstanding within the last 12 months, except a bankruptcy in which:

Debts were discharged more than 36 months prior to the date of application; or

Where an applicant successfully completed a bankruptcy debt restructuring plan and has demonstrated a willingness to meet obligations when due for the 12 months prior to the date of application.

A judgment satisfied more than 12 months before the date of application

An applicant with an outstanding judgment obtained by the United States in a Federal court, other than the United States Tax Court, is not eligible for a Section 502 loan. This requirement is statutory and cannot be waived.

*BP Always refer to RD Handbook 1-3550 for current credit guidelines

A judgment satisfied more than 12 months before the date of application

An applicant with an outstanding judgment obtained by the United States in a Federal court, other than the United States Tax Court, is not eligible for a Section 502 loan. This requirement is statutory and cannot be waived.

*BP Always refer to RD Handbook 1-3550 for current credit guidelines

Exceptions to Unacceptable Credit History

Exceptions to Unacceptable Credit History

Credit score of 640 or higher are exempt from indicators of unacceptable credit

Poor credit history may have been beyond the control of the applicant

When their history does not necessarily reflect their willingness to meet obligations, RD will consider the reasons and may grant an exception

Exceptions may be considered by the loan approval official (except for Federal Judgments) when documentation is provided that: Circumstances were temporary and beyond the

applicants control and have been removed Examples: loss of job, delay or reduction in benefits, other

loss of income, or an increase in expenses due to illness, death, etc.

Credit score of 640 or higher are exempt from indicators of unacceptable credit

Poor credit history may have been beyond the control of the applicant

When their history does not necessarily reflect their willingness to meet obligations, RD will consider the reasons and may grant an exception

Exceptions may be considered by the loan approval official (except for Federal Judgments) when documentation is provided that: Circumstances were temporary and beyond the

applicants control and have been removed Examples: loss of job, delay or reduction in benefits, other

loss of income, or an increase in expenses due to illness, death, etc.

Circumstances were temporary and beyond the applicants control and have been removed Examples: loss of job, delay or reduction in benefits, other

loss of income, or an increase in expenses due to illness, death, etc.

When the adverse action or delinquency was result of a refusal to make full payment because of defective goods or services or some other justifiable dispute

The loan will significantly reduce the shelter cost When the applicant is delinquent on a Federal Debt

and the loan benefits the Federal government. (Not to be confused with a judgment obtained by the United States in a Federal Court).

Circumstances were temporary and beyond the applicants control and have been removed Examples: loss of job, delay or reduction in benefits, other

loss of income, or an increase in expenses due to illness, death, etc.

When the adverse action or delinquency was result of a refusal to make full payment because of defective goods or services or some other justifiable dispute

The loan will significantly reduce the shelter cost When the applicant is delinquent on a Federal Debt

and the loan benefits the Federal government. (Not to be confused with a judgment obtained by the United States in a Federal Court).

Types of IncomeTypes of Income

The 502 program requires the calculation of three types of income for eligibility

$ Annual$ Includes income from all household members

(some exceptions)

$ Adjusted$ Determines whether or not income-eligible and

amount of payment assistance, if any

$ Repayment$ Determines applicant’s repayment ability

The 502 program requires the calculation of three types of income for eligibility

$ Annual$ Includes income from all household members

(some exceptions)

$ Adjusted$ Determines whether or not income-eligible and

amount of payment assistance, if any

$ Repayment$ Determines applicant’s repayment ability

Annual Income Basis for computation of adjusted income Includes income from all household members

except live-in aids, foster children and foster adults that are living in the household and earned income of minors

Adjusted Income Determines income-eligibility for the program Determines the amount of payment assistance that

the applicant will receive The household’s annual adjusted income cannot

exceed the adjusted income limit for that family’s size and for the county where they will live, at the time of loan approval

Annual Income Basis for computation of adjusted income Includes income from all household members

except live-in aids, foster children and foster adults that are living in the household and earned income of minors

Adjusted Income Determines income-eligibility for the program Determines the amount of payment assistance that

the applicant will receive The household’s annual adjusted income cannot

exceed the adjusted income limit for that family’s size and for the county where they will live, at the time of loan approval

DefinitionsDefinitions

Congress has determined that the 502 Loan Program must serve the low and very-low income rural borrower

Low and very-low income limits are determined by RD and follow HUD Guidelines

Income limits can be found at:http://www.rurdev.usda.gov/RHS/SFH/

SFH_DIRECT_LOAN_INCOME_LIMITS.HTM.

Congress has determined that the 502 Loan Program must serve the low and very-low income rural borrower

Low and very-low income limits are determined by RD and follow HUD Guidelines

Income limits can be found at:http://www.rurdev.usda.gov/RHS/SFH/

SFH_DIRECT_LOAN_INCOME_LIMITS.HTM.

Very Low Income Does not exceed 50% of county adjusted

median income for the family size

Low Income Does not exceed 80% of county adjusted

median income for the family size

Adjusted Median Income (AMI) Is noted for each family size within a

county and is 100% of median income in the county

Very Low Income Does not exceed 50% of county adjusted

median income for the family size

Low Income Does not exceed 80% of county adjusted

median income for the family size

Adjusted Median Income (AMI) Is noted for each family size within a

county and is 100% of median income in the county

Percentage of AMI Determined by dividing the household’s adjusted

income by the AMI figure for that particular family size within the county that the property is or will be located

Repayment Income Used to determine if the applicant will be able to

repay the loan Only the income from household members who

will be party to and sign the note will be counted Income from live-in aids, foster children and

foster adults that are living in the household and earned income of minors WILL NOT be counted

Percentage of AMI Determined by dividing the household’s adjusted

income by the AMI figure for that particular family size within the county that the property is or will be located

Repayment Income Used to determine if the applicant will be able to

repay the loan Only the income from household members who

will be party to and sign the note will be counted Income from live-in aids, foster children and

foster adults that are living in the household and earned income of minors WILL NOT be counted

Live-In Aids Persons living in the household for

the sole purpose of providing essential care and well being for an elderly or disabled household member

Live-in aids cannot be related to a household member an would not be living in the unit except to provide essential supportive services

Live-In Aids Persons living in the household for

the sole purpose of providing essential care and well being for an elderly or disabled household member

Live-in aids cannot be related to a household member an would not be living in the unit except to provide essential supportive services

Minor For the purposes of determining adjusted

annual income, this definition is restricted to persons under 18 years of age

Neither the head of household nor spouse may be counted as a minor

Foster children are not counted as minors for determining annual or adjusted annual income

Minor For the purposes of determining adjusted

annual income, this definition is restricted to persons under 18 years of age

Neither the head of household nor spouse may be counted as a minor

Foster children are not counted as minors for determining annual or adjusted annual income

The sum of “specific” kinds of income Calculation is the first step used in

determining adjusted annual income Determination of expected income for

the next 12 months for all members of the HH except live-in aids, foster children, foster adults and earned income from minors

Historical data of the past 12 months or fiscal year can be used if expected income difficult to determine (i.e., seasonal employment, self-employment and commissions)

The sum of “specific” kinds of income Calculation is the first step used in

determining adjusted annual income Determination of expected income for

the next 12 months for all members of the HH except live-in aids, foster children, foster adults and earned income from minors

Historical data of the past 12 months or fiscal year can be used if expected income difficult to determine (i.e., seasonal employment, self-employment and commissions)

Annual IncomeAnnual Income

Employment income, part-time and full-time, is computed by:

Hourly Wage x 2080 Hours (or anticipated hours for part-time)Weekly Wage x 52 WeeksBi-weekly Wage x 26 WeeksMonthly Wage x 12 MonthsBi-monthly Wage x 24 Pay Periods

Employment income, part-time and full-time, is computed by:

Hourly Wage x 2080 Hours (or anticipated hours for part-time)Weekly Wage x 52 WeeksBi-weekly Wage x 26 WeeksMonthly Wage x 12 MonthsBi-monthly Wage x 24 Pay Periods

If spouse or other adult member of the household is not employed but there is recent history of employment, that person’s employment will be projected Unless they provide a statement that he/she

does not intend to resume employment in the foreseeable future or during the term of the payment assistance agreement (1 yr). The former employer will be contacted to confirm that employment has been terminated

If actively seeking employment, a similar statement is required

Applicant needs to notify RD immediately upon re-employment

If spouse or other adult member of the household is not employed but there is recent history of employment, that person’s employment will be projected Unless they provide a statement that he/she

does not intend to resume employment in the foreseeable future or during the term of the payment assistance agreement (1 yr). The former employer will be contacted to confirm that employment has been terminated

If actively seeking employment, a similar statement is required

Applicant needs to notify RD immediately upon re-employment

Annual Income includes: (See Guide for more details)

Gross Wages and Salaries (before payroll deductions), overtime pay, commissions, fees, tips, bonuses, and other compensations for personal services of all adult members of the household

Net Income from farm, business or profession (Schedule C of IRS form 1040)

Interest, dividends, and other net income (of any kind) from real or personal property

The full amount of periodic payments from Social Security (including benefits received by adults on behalf of minors or by minors intended for their own support), annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar periodic receipts

Annual Income includes: (See Guide for more details)

Gross Wages and Salaries (before payroll deductions), overtime pay, commissions, fees, tips, bonuses, and other compensations for personal services of all adult members of the household

Net Income from farm, business or profession (Schedule C of IRS form 1040)

Interest, dividends, and other net income (of any kind) from real or personal property

The full amount of periodic payments from Social Security (including benefits received by adults on behalf of minors or by minors intended for their own support), annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar periodic receipts

Payment from unemployment and disability compensation, worker’s compensation and severance pay when these payments are in lieu or earnings

Periodic allowances, such as alimony and child support awarded in divorce decree or separation agreement

Recurring monetary gifts or contributions from someone other than a member of the household

All regular pay, special pay (except for hostile fire) and allowances for armed forces personnel who is the applicant or spouse, whether or not the family member lives in the home

Payment from unemployment and disability compensation, worker’s compensation and severance pay when these payments are in lieu or earnings

Periodic allowances, such as alimony and child support awarded in divorce decree or separation agreement

Recurring monetary gifts or contributions from someone other than a member of the household

All regular pay, special pay (except for hostile fire) and allowances for armed forces personnel who is the applicant or spouse, whether or not the family member lives in the home

Public Assistance except as indicated (AFDC is counted as annual income while food stamps and fuel assistance is not)

The first $480, per child, received for Adoption Assistance Payments

The first $480 of earned income from a full-time student 18 years or older, except parties to the note

Public Assistance except as indicated (AFDC is counted as annual income while food stamps and fuel assistance is not)

The first $480, per child, received for Adoption Assistance Payments

The first $480 of earned income from a full-time student 18 years or older, except parties to the note

Never counted as Annual Income: Income from the employment of persons

under 18 years old, except parties to the note and their spouses

Income from live-in aids and income directly received by foster children or foster adults

Payments received for the care of foster children or foster adults (usually individuals with disabilities, unrelated to the applicant, who are unable to live alone)

Never counted as Annual Income: Income from the employment of persons

under 18 years old, except parties to the note and their spouses

Income from live-in aids and income directly received by foster children or foster adults

Payments received for the care of foster children or foster adults (usually individuals with disabilities, unrelated to the applicant, who are unable to live alone)

Temporary, nonrecurring, or sporadic income (including gifts)

Lump sum additions to family assets (ie., inheritance, capital gains, insurance payments and settlements for personal or property losses)

Amounts that are granted specifically for, or in reimbursement of, the cost of medical expenses

Earnings in excess of $480 for each full-time student 18 yrs old or older, except parties to the note and their spouse

Temporary, nonrecurring, or sporadic income (including gifts)

Lump sum additions to family assets (ie., inheritance, capital gains, insurance payments and settlements for personal or property losses)

Amounts that are granted specifically for, or in reimbursement of, the cost of medical expenses

Earnings in excess of $480 for each full-time student 18 yrs old or older, except parties to the note and their spouse

What is the annual income of the following household?

1. Income of $5,000 from a trust fund established by the grandfather. The income is received by the household adults for living expenses of a 16-yer old minor living in the household.

2. 10 shares of GM stock sold for $75, which was purchased for $45.

3. A $150,000 business that is owned and operated by the applicant. Taxable income from the business last year was $8,000.

What is the annual income of the following household?

1. Income of $5,000 from a trust fund established by the grandfather. The income is received by the household adults for living expenses of a 16-yer old minor living in the household.

2. 10 shares of GM stock sold for $75, which was purchased for $45.

3. A $150,000 business that is owned and operated by the applicant. Taxable income from the business last year was $8,000.

Answers:1. $5,000 from a trust fund. Income is

paid on behalf of the minor to the household adults for living expenses for the minor.

2. $0 from the sale of the stock. This was a one-time income. If the applicant owns more stock, income will be calculated in net asset income.

3. $8,000 from the business. Only net income is used in the calculation.

Answers:1. $5,000 from a trust fund. Income is

paid on behalf of the minor to the household adults for living expenses for the minor.

2. $0 from the sale of the stock. This was a one-time income. If the applicant owns more stock, income will be calculated in net asset income.

3. $8,000 from the business. Only net income is used in the calculation.

Person with a Disability Person who has a physical or

mental impairment that substantially limits one or more major life activities; has a record of such an impairment; or is regarded as having such an impairment

Person with a Disability Person who has a physical or

mental impairment that substantially limits one or more major life activities; has a record of such an impairment; or is regarded as having such an impairment

Adjusted IncomeAdjusted Income

Elderly family A person who is the head, spouse, or sole member

of a family who is 62 years of age or older, or who is disabled, and is an applicant or borrower, or

Two or more persons who are living together, at least one of whom is age 62 or older, or disabled, and who is an applicant or borrower; or

In the case of a family where the deceased borrower or spouse was at least 62 years old or disabled, surviving household members shall continue to be classified as an elderly family for the purpose of determining adjusted income, even though the surviving members may not meet the definition of elderly family on their own, provided:

Elderly family A person who is the head, spouse, or sole member

of a family who is 62 years of age or older, or who is disabled, and is an applicant or borrower, or

Two or more persons who are living together, at least one of whom is age 62 or older, or disabled, and who is an applicant or borrower; or

In the case of a family where the deceased borrower or spouse was at least 62 years old or disabled, surviving household members shall continue to be classified as an elderly family for the purpose of determining adjusted income, even though the surviving members may not meet the definition of elderly family on their own, provided:

a. They occupied the dwelling with the deceased family member at the time of the death;

b. If one of the surviving members is the spouse of the deceased family member, the family shall be classified as an elderly family only until the remarriage of the surviving spouse; and

c. At the time of death of the deceased family member, the dwelling was financed under Title V of the Housing Act of 1949.

a. They occupied the dwelling with the deceased family member at the time of the death;

b. If one of the surviving members is the spouse of the deceased family member, the family shall be classified as an elderly family only until the remarriage of the surviving spouse; and

c. At the time of death of the deceased family member, the dwelling was financed under Title V of the Housing Act of 1949.

Full-time StudentA person who carries at least the

minimum number of credit hours considered to be full-time by the college or vocational school in which the person is enrolled

HouseholdAll persons expected to be living in

the dwelling, except for live-in aids, foster children and foster adults

Full-time StudentA person who carries at least the

minimum number of credit hours considered to be full-time by the college or vocational school in which the person is enrolled

HouseholdAll persons expected to be living in

the dwelling, except for live-in aids, foster children and foster adults

Adjusted Income Used in determining the amount of

payment assistance that a participant will receive, determines their monthly payment

To compute adjusted income, deduct from Annual Income: Deduction of $480 per dependent Child care expenses Elderly household deduction of $400 Deduction for medical expenses (for Elderly

Households only) Care of Household members

Adjusted Income Used in determining the amount of

payment assistance that a participant will receive, determines their monthly payment

To compute adjusted income, deduct from Annual Income: Deduction of $480 per dependent Child care expenses Elderly household deduction of $400 Deduction for medical expenses (for Elderly

Households only) Care of Household members

Dependent DeductionA $480 deduction is allowed for each member of the household who qualifies as a dependent.-17 yrs. of age or younger-18 or older and “disabled”-18 or older and a “full-time student”(Do not deduct for the applicant, co-applicant or spouse, or foster children).

Dependent DeductionA $480 deduction is allowed for each member of the household who qualifies as a dependent.-17 yrs. of age or younger-18 or older and “disabled”-18 or older and a “full-time student”(Do not deduct for the applicant, co-applicant or spouse, or foster children).

Child Care Expenses The amount reasonably expected to pay for the care

of minors (12 years or younger) to the extent that a family member can be gainfully employed, seek work or further their education

The expenses deducted cannot exceed the amount of annual income earned by the household member enabled to work

In the case where the expenses enable a family member to go to school, the family member need not be a full-time student

No other adult member of the household can be available for the care of the children

If the childcare provider is a household member, the cost of the childcare cannot be deducted

Full documentation is required

Child Care Expenses The amount reasonably expected to pay for the care

of minors (12 years or younger) to the extent that a family member can be gainfully employed, seek work or further their education

The expenses deducted cannot exceed the amount of annual income earned by the household member enabled to work

In the case where the expenses enable a family member to go to school, the family member need not be a full-time student

No other adult member of the household can be available for the care of the children

If the childcare provider is a household member, the cost of the childcare cannot be deducted

Full documentation is required

Elderly Household Deduction A household that qualifies as elderly receives

a $400 adjustment to annual income The head of the household, spouse or sole

member of a family who is party to the note must be 62 years of age or older, or an individual with a disability

A family where the qualifying family member has deceased, the surviving household members will continue to be considered “elderly” for the purposes of determining adjusted income

There are other determining factors – see definition

Elderly Household Deduction A household that qualifies as elderly receives

a $400 adjustment to annual income The head of the household, spouse or sole

member of a family who is party to the note must be 62 years of age or older, or an individual with a disability

A family where the qualifying family member has deceased, the surviving household members will continue to be considered “elderly” for the purposes of determining adjusted income

There are other determining factors – see definition

Deduction for Medical Expenses (for Elderly Households only)

Medical expenses anticipated for the upcoming twelve months can be deducted from annual income for elderly households if the expenses: Will not be reimbursed by insurance or

other source; and When combined with any disability

assistance expenses are in excess of 3% of annual income

Deduction for Medical Expenses (for Elderly Households only)

Medical expenses anticipated for the upcoming twelve months can be deducted from annual income for elderly households if the expenses: Will not be reimbursed by insurance or

other source; and When combined with any disability

assistance expenses are in excess of 3% of annual income

Typical medical expenses are: Services of physicians and other health care

providers Services of hospitals and other health care facilities Medical premiums Prescriptions and nonprescription medicine Dental expenses Eyeglasses and eye examinations

Refer to page 72 of manual for additional expenses

Typical medical expenses are: Services of physicians and other health care

providers Services of hospitals and other health care facilities Medical premiums Prescriptions and nonprescription medicine Dental expenses Eyeglasses and eye examinations

Refer to page 72 of manual for additional expenses

Calculating Medical AllowancesAnnual Income $,7000Medical Expenses (not covered by

insurance or other sources) $ 800

($7,000 x .03 - $210)$ 800 - $210 = $590

Allowable deductions = $590

Calculating Medical AllowancesAnnual Income $,7000Medical Expenses (not covered by

insurance or other sources) $ 800

($7,000 x .03 - $210)$ 800 - $210 = $590

Allowable deductions = $590

Care of Household Members Reasonable expenses for the care of an

individual with disabilities in excess of 3% of annual income may be deducted if the expenses: Enabled the individual with disabilities or

another family member to work Are not reimbursable from insurance or any

other source Do not exceed the amount of earned income

included in annual income by the person who is able to work as a result of the expenses

Care of Household Members Reasonable expenses for the care of an

individual with disabilities in excess of 3% of annual income may be deducted if the expenses: Enabled the individual with disabilities or

another family member to work Are not reimbursable from insurance or any

other source Do not exceed the amount of earned income

included in annual income by the person who is able to work as a result of the expenses

1 Person HHAnnual Income $12,500Allowable Deduction 0Adjusted Annual Income 12,500

1 Person HHAnnual Income $12,500Allowable Deduction 0Adjusted Annual Income 12,500

Sample Adjustment Calculations

Sample Adjustment Calculations

3 Person HH ( 1 minor child)Income Husband $10,400Income Wife $ 8, 500Annual Income $18,900Adjustment child care $ 2,500($50/wk x 50 weeks)Adjustment minor dependent $ 480Annual Adjusted Income $15,920

3 Person HH ( 1 minor child)Income Husband $10,400Income Wife $ 8, 500Annual Income $18,900Adjustment child care $ 2,500($50/wk x 50 weeks)Adjustment minor dependent $ 480Annual Adjusted Income $15,920

5 Person HH (3 minor children; elderly co-applicant)Income Husband $10,000Income Wife $11,840Annual Income $21, 840Adjustment minor dependents ($480 x 3)

- $ 1,440Adjustment elderly deduction $ 400Annual Adjusted Income $20,000

5 Person HH (3 minor children; elderly co-applicant)Income Husband $10,000Income Wife $11,840Annual Income $21, 840Adjustment minor dependents ($480 x 3)

- $ 1,440Adjustment elderly deduction $ 400Annual Adjusted Income $20,000

Amount of income that is available to repay the loan

Used in the calculation of the housing debt to income ratio and the total debt to income ratio

Only the income from persons who will be party to the note is counted

Takes the annual income and adds certain uncounted items back in Examples of income added is – Earned income tax

credit, student financial assistance, refunds or rebates received for property taxes, payments received for care of foster children, value of food stamp allotment

See manual – others listed on pages 74- 77

Amount of income that is available to repay the loan

Used in the calculation of the housing debt to income ratio and the total debt to income ratio

Only the income from persons who will be party to the note is counted

Takes the annual income and adds certain uncounted items back in Examples of income added is – Earned income tax

credit, student financial assistance, refunds or rebates received for property taxes, payments received for care of foster children, value of food stamp allotment

See manual – others listed on pages 74- 77

Repayment IncomeRepayment Income

Repayment Income Exclusions: Persons under the age of 18,

except parties to the note and their spouses

Income from live-in aids Income directly received by

foster kids or foster adults

Repayment Income Exclusions: Persons under the age of 18,

except parties to the note and their spouses

Income from live-in aids Income directly received by

foster kids or foster adults

Repayment income must be adequate to meet these ratios:

PITI Total DebtVery-low Income 29% 41%Low Income 33% 41%

Energy Efficient home – TD for both 43%

Repayment income must be adequate to meet these ratios:

PITI Total DebtVery-low Income 29% 41%Low Income 33% 41%

Energy Efficient home – TD for both 43%

RatiosRatios

PITI Ratio Calculated by dividing proposed loan’s PITI by

the household’s repayment income

Total Debt Ratio (TD) Calculated by dividing total monthly debt by

repayment income Total monthly debt includes:

PITI for proposed loan Homeowner or other assessments on the property Long-term obligations with more than 6 months left Alimony and child support payments Other short-term obligations considered to have an

impact on repayment ability No less than minimum payment on revolving credit

cards or the actual payment if higher

PITI Ratio Calculated by dividing proposed loan’s PITI by

the household’s repayment income

Total Debt Ratio (TD) Calculated by dividing total monthly debt by

repayment income Total monthly debt includes:

PITI for proposed loan Homeowner or other assessments on the property Long-term obligations with more than 6 months left Alimony and child support payments Other short-term obligations considered to have an

impact on repayment ability No less than minimum payment on revolving credit

cards or the actual payment if higher

Additional Co-applicantsOther adults in the household with

adequate and dependable incomeCombined incomes and obligations will

be used to determine eligibilityCo-signers

Cannot be a member of the householdWill be responsible for the debt Credit and repayment income

evaluatedReaps no tax benefits

Additional Co-applicantsOther adults in the household with

adequate and dependable incomeCombined incomes and obligations will

be used to determine eligibilityCo-signers

Cannot be a member of the householdWill be responsible for the debt Credit and repayment income

evaluatedReaps no tax benefits

Exercise on RatiosExercise on Ratios

Go to Attachment #13 in the GuideGo to Attachment #13 in the Guide

Intake and ScreeningIntake and Screening

First contact probably by phone Ask questions and share information Plan questions that abide by Fair

Housing Laws Gather the following information:

Income Employment Credit Marital Status Housing Citizenship Family Size

First contact probably by phone Ask questions and share information Plan questions that abide by Fair

Housing Laws Gather the following information:

Income Employment Credit Marital Status Housing Citizenship Family Size

*BP Give the following information: Self-Help concept Participant responsibilities Homes begun and completed at the same

time Examples of participant’s work No downpayment Monthly payments based on income, give

range if known Loan term

Be honest and clear Maintain a waiting list

*BP Give the following information: Self-Help concept Participant responsibilities Homes begun and completed at the same

time Examples of participant’s work No downpayment Monthly payments based on income, give

range if known Loan term

Be honest and clear Maintain a waiting list

Initial intake and screening must be completed by all potential applicantsRefer to Attachment #6 – Self-Help

Housing Pre-Application Interview FormSend Self-Help Program Information

sheet Attachment #7

*BP Mail Attachments #6 & #7 together

Reminder - Only a lender may decline an applicant!

Initial intake and screening must be completed by all potential applicantsRefer to Attachment #6 – Self-Help

Housing Pre-Application Interview FormSend Self-Help Program Information

sheet Attachment #7

*BP Mail Attachments #6 & #7 together

Reminder - Only a lender may decline an applicant!

502 Loan Processing Steps

502 Loan Processing Steps

Collect information on Attachments #6, #8 and #9

Pull on-line credit report Send letter requesting interview (Attachment #10) Hold applicant interview

Complete URLA Calculate PITI and ratios Have applicants sign forms

Order verifications Complete file documentation Update URLA Submit to RD Truth in Lending mailed by RD RD reviews file for completeness

Collect information on Attachments #6, #8 and #9

Pull on-line credit report Send letter requesting interview (Attachment #10) Hold applicant interview

Complete URLA Calculate PITI and ratios Have applicants sign forms

Order verifications Complete file documentation Update URLA Submit to RD Truth in Lending mailed by RD RD reviews file for completeness

Additional info requested by RD Residential Mortgage Credit Report VOEs (sometimes ordered by grantee)

Monthly payment, payment assistance, and maximum loan amount determined by RD

RD holds Applicant Interview Determination of eligibility made by RD, formal

letter issued Participants required to receive Homebuyer

Education Appraisal information and other docket

requirements submitted to RD Lot option, legal description of property, direction map,

complete set of house plans, plan certification, cost estimates, plot plan, survey, development plan

Additional info requested by RD Residential Mortgage Credit Report VOEs (sometimes ordered by grantee)

Monthly payment, payment assistance, and maximum loan amount determined by RD

RD holds Applicant Interview Determination of eligibility made by RD, formal

letter issued Participants required to receive Homebuyer

Education Appraisal information and other docket

requirements submitted to RD Lot option, legal description of property, direction map,

complete set of house plans, plan certification, cost estimates, plot plan, survey, development plan

Appraisal is ordered and received by RD

Loan approval and obligation is made by RD

Loan closing preparationsLoan closing

Appraisal is ordered and received by RD

Loan approval and obligation is made by RD

Loan closing preparationsLoan closing

Working with the Participants

Working with the Participants

*BP Remember:Be honest and clear about the

program Be honest about the hard work

involved, time and labor commitmentPresent a realistic picture of the self-

help processNever, never persuade any

participant to remain in the program

*BP Remember:Be honest and clear about the

program Be honest about the hard work

involved, time and labor commitmentPresent a realistic picture of the self-

help processNever, never persuade any

participant to remain in the program

Forming a GroupForming a Group

In order to form a group three events must occur:

1. Recruitment2. Determining 502 eligibility3. Forming, organizing and training the

group

In order to form a group three events must occur:

1. Recruitment2. Determining 502 eligibility3. Forming, organizing and training the

group

When Should Groups be Formed?Applicants should be deemed

eligible by RD

Why Should Groups be Formed?Group bondingEducate requirements/expectationsEstablish rules

When Should Groups be Formed?Applicants should be deemed

eligible by RD

Why Should Groups be Formed?Group bondingEducate requirements/expectationsEstablish rules

*BP Working with the participants:

Forming a group – How many is enough?

Organizing your group – hours/days available to build

Training your group – Any skills? Losing participants happens – Have one

more family approved by RD than you need for your group

*BP Working with the participants:

Forming a group – How many is enough?

Organizing your group – hours/days available to build

Training your group – Any skills? Losing participants happens – Have one

more family approved by RD than you need for your group

Homeownership TrainingHomeownership Training

*BP Follow the subsequent “Best Practice” outline for great Homeownership Training!

A. Orientation meeting (group)Building Dreams (video)Self-Help Participant Guide

(Attachment #5)Pre-Application Interview form

(Attachment #6)

*BP Follow the subsequent “Best Practice” outline for great Homeownership Training!

A. Orientation meeting (group)Building Dreams (video)Self-Help Participant Guide

(Attachment #5)Pre-Application Interview form

(Attachment #6)

B. Prescreening Interview (individual)Review attachment #6

Credit report ordered, Received prior to appt.

Identify needs, Develop a counseling plan Uniform Residential Loan Application (Form

RD 410-4) AKA URLA Employment and other verifications

ordered Assign homework

Encourage the families to discuss financial issues and develop a spending plan

B. Prescreening Interview (individual)Review attachment #6

Credit report ordered, Received prior to appt.

Identify needs, Develop a counseling plan Uniform Residential Loan Application (Form

RD 410-4) AKA URLA Employment and other verifications

ordered Assign homework

Encourage the families to discuss financial issues and develop a spending plan

C.Initial Budgeting Session (group)• Make this portion fun! • Use video presentations, budgeting

exercises and case studies in Pre-Construction Meeting Guide

• Discuss family spending values• Play the Bean Game! (Ask NCALL

for directions)*BP Practice what you preach! Try

implementing and following a budget yourself.

C.Initial Budgeting Session (group)• Make this portion fun! • Use video presentations, budgeting

exercises and case studies in Pre-Construction Meeting Guide

• Discuss family spending values• Play the Bean Game! (Ask NCALL

for directions)*BP Practice what you preach! Try

implementing and following a budget yourself.

D. Financial Analysis (individual) Credit report reviewed Budget analysis Ratios (including projected mortgage) Danger signals of over use of credit Savings goals

E. Supplemental Counseling (individual) Credit problem identification Analysis of money problems

D. Financial Analysis (individual) Credit report reviewed Budget analysis Ratios (including projected mortgage) Danger signals of over use of credit Savings goals

E. Supplemental Counseling (individual) Credit problem identification Analysis of money problems

Identification of goals Budget development Budget maintenance

F. Pre-Construction educational meetings (group)

Refer to the Preconstruction Meetings Manual

Topics of discussion Basic banking skills Maintaining good credit Selecting building lots and house plans

Identification of goals Budget development Budget maintenance

F. Pre-Construction educational meetings (group)

Refer to the Preconstruction Meetings Manual

Topics of discussion Basic banking skills Maintaining good credit Selecting building lots and house plans

Homeownership responsibilities and maintenance Property taxes and insurance Membership Agreement and teamwork Construction procedures and techniques

Prepare an agenda Invite speakers

*BP Don’t send them away empty! Take time to show the family how to improve their financial situation through planning, sacrificing, saving, and implementing

Homeownership responsibilities and maintenance Property taxes and insurance Membership Agreement and teamwork Construction procedures and techniques

Prepare an agenda Invite speakers

*BP Don’t send them away empty! Take time to show the family how to improve their financial situation through planning, sacrificing, saving, and implementing

Group OfficersGroup Officers

Some organizations let their family associations’ vote for officersPresident, Vice President, Secretary,

Treasurer, sometimes Labor Manager If done prior to construction,

leaders may be different on construction site

Officers conduct group’s business with help of Group Coordinator

Some organizations let their family associations’ vote for officersPresident, Vice President, Secretary,

Treasurer, sometimes Labor Manager If done prior to construction,

leaders may be different on construction site

Officers conduct group’s business with help of Group Coordinator

Tracking Participant HoursTracking Participant Hours

Crucial to track participant hours Take measures when participants fall

behind Keeps families accountable for work time *BP Hours should be monitored weekly

Time sheets should be at the job site Participants need to sign in and out daily! Verified by Construction Supervisor Turned into Group Coordinator and kept on

spreadsheet cumulatively Sample time sheet in Attachment #15

Crucial to track participant hours Take measures when participants fall

behind Keeps families accountable for work time *BP Hours should be monitored weekly

Time sheets should be at the job site Participants need to sign in and out daily! Verified by Construction Supervisor Turned into Group Coordinator and kept on

spreadsheet cumulatively Sample time sheet in Attachment #15

Once lost, control is not easily regained Rules may need to be clarified over and

over Be strict right away *BP Rules to enforce

No children allowed on the job site (age appropriate)

Participants must be on site with volunteers No drinking/drugs on site No one under the influence allowed on site No change orders w/out RD’s approval

*BP Enforce these rules consistently to help avoid fair housing complaints

Once lost, control is not easily regained Rules may need to be clarified over and

over Be strict right away *BP Rules to enforce

No children allowed on the job site (age appropriate)

Participants must be on site with volunteers No drinking/drugs on site No one under the influence allowed on site No change orders w/out RD’s approval

*BP Enforce these rules consistently to help avoid fair housing complaints

Enforcing the Building Group Membership and Labor

Agreement

Enforcing the Building Group Membership and Labor

Agreement

Holding Participant MeetingsHolding Participant Meetings

Continue holding meetings even after construction begins

Construction Supervisor should:Review progress of homesReveal future plansDiscuss current problems

Renews motivation Airs out differences Continues their education Encourage group officers to take charge *BP Do not hold meetings at construction site, too

many distractions

Continue holding meetings even after construction begins

Construction Supervisor should:Review progress of homesReveal future plansDiscuss current problems

Renews motivation Airs out differences Continues their education Encourage group officers to take charge *BP Do not hold meetings at construction site, too

many distractions

To resolve a problem, termination may be necessary

Tricky area Try to resolve the problem first Potential Reasons for Terminating a Participant

Unacceptable behavior Failure to attend mandatory group meetings Failure to adhere to membership agreement Acts of omission or false information Theft or vandalism on job site Persistent/Aggressive actions that endanger others Other reasons

To resolve a problem, termination may be necessary

Tricky area Try to resolve the problem first Potential Reasons for Terminating a Participant

Unacceptable behavior Failure to attend mandatory group meetings Failure to adhere to membership agreement Acts of omission or false information Theft or vandalism on job site Persistent/Aggressive actions that endanger others Other reasons

Terminating a ParticipantTerminating a Participant

Process of Termination

If participant’s loan has closed, work with RD to resolve

Mortgage may be turned over to replacement participant

Agency may be able to purchase the home Participant can seek other financing –out

of program Foreclosure

Process of Termination

If participant’s loan has closed, work with RD to resolve

Mortgage may be turned over to replacement participant

Agency may be able to purchase the home Participant can seek other financing –out

of program Foreclosure

CommunicationCommunication

Communication is taken for granted More than just words

Body language Way message is delivered

Communication can be a complex and frustrating process

*BP Group Coordinator communication best practices: Communicate often and effectively! Recognize the different styles of communication Observe the different ways people communicate Understand the nuances of these different styles

Communication is taken for granted More than just words

Body language Way message is delivered

Communication can be a complex and frustrating process

*BP Group Coordinator communication best practices: Communicate often and effectively! Recognize the different styles of communication Observe the different ways people communicate Understand the nuances of these different styles

IntroductionIntroduction

People communicate in different styles This alludes to our behavior patterns We communicate in two dimensions

Use of power Use of emotion

By measuring these dimensions, four styles emerge

Advocating Facilitating Analyzing Controlling

People communicate in different styles This alludes to our behavior patterns We communicate in two dimensions

Use of power Use of emotion

By measuring these dimensions, four styles emerge

Advocating Facilitating Analyzing Controlling

Communication StyleCommunication Style

Advocating Assertive – Responsive Enthusiastic and open to new ideas

Facilitating Receptive – Responsive Warm, friendly, tactful when dealing with others

Analyzing Receptive – Reserved Patient, thorough, precise, studies all

alternatives Controlling

Assertive – Reserved Makes decisions quickly and independently,

goal-oriented

Advocating Assertive – Responsive Enthusiastic and open to new ideas

Facilitating Receptive – Responsive Warm, friendly, tactful when dealing with others

Analyzing Receptive – Reserved Patient, thorough, precise, studies all

alternatives Controlling

Assertive – Reserved Makes decisions quickly and independently,

goal-oriented

Characteristics of Each Communication Style

Characteristics of Each Communication Style

Review Strengths/MisconceptionsSee pages 93 – 94

Complete exercisesSee pages 95 – 96

Review Strengths/MisconceptionsSee pages 93 – 94

Complete exercisesSee pages 95 – 96

Adapting Your StyleAdapting Your Style

If your style is different from the client, they might feel uncomfortable

May be difficult to connect In order to connect

Recognize your styleRecognize the client’s styleAdapt your message so that it is heard

Group Coordinator Styles – refer to pages 97 – 98 for more details

If your style is different from the client, they might feel uncomfortable

May be difficult to connect In order to connect

Recognize your styleRecognize the client’s styleAdapt your message so that it is heard

Group Coordinator Styles – refer to pages 97 – 98 for more details

Ø Insufficient informationØ AnticipatingØ SidetrackingØ Unclear expectationsØ InterruptionsØ DisinterestØ Time rushØ Double messageØ PrejudgingØ Over-reactionØ UnresponsivenessØ Absolute authority

Ø Insufficient informationØ AnticipatingØ SidetrackingØ Unclear expectationsØ InterruptionsØ DisinterestØ Time rushØ Double messageØ PrejudgingØ Over-reactionØ UnresponsivenessØ Absolute authority

Barriers to CommunicationBarriers to Communication

Good ListeningGood Listening

Stop talking Put client at ease Remove distractions Empathize Be patient Go easy on argument and criticism Ask questions Hold your temper Stop talking!

Stop talking Put client at ease Remove distractions Empathize Be patient Go easy on argument and criticism Ask questions Hold your temper Stop talking!

Challenges in Providing Affordable Housing

Challenges in Providing Affordable Housing

Issues Facing ParticipantsIssues Facing Participants

• Employment issues• Insufficient income, poor employment

history

• Inadequate credit and budget management

• Lack of sufficient consumer information, unwise purchases

• Discrimination

• Legal problems

• Medical and health issues (including bills)

• Discrimination/race relation problems

• Employment issues• Insufficient income, poor employment

history

• Inadequate credit and budget management

• Lack of sufficient consumer information, unwise purchases

• Discrimination

• Legal problems

• Medical and health issues (including bills)

• Discrimination/race relation problems

Family and marital difficulties Unpredictability, lack of planning for the

future Lack of information about community

services Educational problems Distrust of service agencies Lack of understanding of housing laws and

real estate procedures High incidence of mental illness, emotional

problems, drug and alcohol abuse

Family and marital difficulties Unpredictability, lack of planning for the

future Lack of information about community

services Educational problems Distrust of service agencies Lack of understanding of housing laws and

real estate procedures High incidence of mental illness, emotional

problems, drug and alcohol abuse

*BP Be knowledgeable of or prepared to refer families for assistance to:

Local technical or junior colleges Career counseling and testing

Local employers Salvation Army Food stamps Fuel assistance Lawyer’s referral service Legal aid

*BP Be knowledgeable of or prepared to refer families for assistance to:

Local technical or junior colleges Career counseling and testing

Local employers Salvation Army Food stamps Fuel assistance Lawyer’s referral service Legal aid

Other social service agencies HUD IRS Taxpayer assistance Departments of Public Welfare, Utilities,

Employment, Child Support Issues Consumer Credit Counseling Service Better Business Bureau Consumer Protection Agency

Other social service agencies HUD IRS Taxpayer assistance Departments of Public Welfare, Utilities,

Employment, Child Support Issues Consumer Credit Counseling Service Better Business Bureau Consumer Protection Agency

What is NIMBY?What is NIMBY?

Not in My Back Yard Group tries to prevent certain land uses Commonly used against affordable

housing Zoning requirements implemented Rooted in fear of people different from

themselves

Not in My Back Yard Group tries to prevent certain land uses Commonly used against affordable

housing Zoning requirements implemented Rooted in fear of people different from

themselves

Group MotivationGroup Motivation

Developing Winning TeamsDeveloping Winning Teams

Two tools developed to help create group motivation and teams:Pre-Construction Meeting GuideMembership Agreement

Modify these tools to your needs Use these tools effectively and it will

create winning teams

Two tools developed to help create group motivation and teams:Pre-Construction Meeting GuideMembership Agreement

Modify these tools to your needs Use these tools effectively and it will

create winning teams

Pre-Construction MeetingsPre-Construction Meetings

Series of meetings sets the stage for group dynamics

Clearly outline needs and expectations

Modeling good communication skillsPositive interaction with staff and

other participantsUse teambuilding and coaching

techniques

Series of meetings sets the stage for group dynamics

Clearly outline needs and expectations

Modeling good communication skillsPositive interaction with staff and

other participantsUse teambuilding and coaching

techniques

Group Coordinator’s RoleGroup Coordinator’s Role

Position has many roles You set the stage for a successful

program Your different hats

Teacher Coach Counselor

Position has many roles You set the stage for a successful

program Your different hats

Teacher Coach Counselor

Teacher Program orientationDisseminating informationPeople learn differently Vary your techniques

Teacher Program orientationDisseminating informationPeople learn differently Vary your techniques

CoachThree part process

Educating, Developing, Counseling

Make participants feel comfortable Be supportiveNeeded when teaching a new skill, going

through changes, people feel overwhelmed Adapt your style with the group’s styles

CoachThree part process

Educating, Developing, Counseling

Make participants feel comfortable Be supportiveNeeded when teaching a new skill, going

through changes, people feel overwhelmed Adapt your style with the group’s styles

Counselor Individualized problem solving technique

Identifying performance problemsDirectly confronting problemsInvolving individuals in the solution

Needed when confronted with a difficult person/attitude, continual problems

Important to provide positive feedbackRequires reward and consequence system

Reward is HomeownershipConsequences outlined in Membership Agreement

Counselor Individualized problem solving technique

Identifying performance problemsDirectly confronting problemsInvolving individuals in the solution

Needed when confronted with a difficult person/attitude, continual problems

Important to provide positive feedbackRequires reward and consequence system

Reward is HomeownershipConsequences outlined in Membership Agreement

Be a model Listen and observe Think and speak success Build to strengths Celebrate success Accept mistakes Communicate Focus on each team member Support and provide feedback

Be a model Listen and observe Think and speak success Build to strengths Celebrate success Accept mistakes Communicate Focus on each team member Support and provide feedback

*BP Coaching for Top Performance*BP Coaching for Top Performance

*BP Recommended version Attachment #11 Content of Agreement important to success

of program Agreements vary by agency Review details with participants during

Precon Meeting Have them sign it together Outlines:

Construction responsibilities Labor exchange commitment General rules of the group Grievance procedures

*BP Recommended version Attachment #11 Content of Agreement important to success

of program Agreements vary by agency Review details with participants during

Precon Meeting Have them sign it together Outlines:

Construction responsibilities Labor exchange commitment General rules of the group Grievance procedures

Membership and Labor Agreement

Membership and Labor Agreement

Make it clear that they will be held accountable

Participants need to take ownership of responsibilities

How it is presented is how it will be received Stress its value Rules will be enforced unilaterally and

consistently Treat it like a contract If they follow the rules, they will get their

“dream home” Problems can be avoided by consistent

enforcement

Make it clear that they will be held accountable

Participants need to take ownership of responsibilities

How it is presented is how it will be received Stress its value Rules will be enforced unilaterally and

consistently Treat it like a contract If they follow the rules, they will get their

“dream home” Problems can be avoided by consistent

enforcement

Understanding Respect Listening Explaining Caring Support Honesty Interest Advocate

Understanding Respect Listening Explaining Caring Support Honesty Interest Advocate

Effective Leadership QualitiesEffective Leadership Qualities

CredibilityTrustFairnessConfidencePositivityEnergyPersonalityAppreciation

CredibilityTrustFairnessConfidencePositivityEnergyPersonalityAppreciation

Symptoms of a Weak GroupSymptoms of a Weak Group

Teams sometimes fall apart Determine where the problem lies

Procrastination - identify Lack of OwnershipConflictMissed DeadlinesWasted Resources

Teams sometimes fall apart Determine where the problem lies

Procrastination - identify Lack of OwnershipConflictMissed DeadlinesWasted Resources

Dealing with ProblemsDealing with Problems

Agreement must contain grievance procedures

Determine where the problem resides Among the group members? Among the const. supervisor and the group? Among the group and the agency? Among the group and RD staff? Among the agency and RD staff?

Resolution must be logical and just

Agreement must contain grievance procedures

Determine where the problem resides Among the group members? Among the const. supervisor and the group? Among the group and the agency? Among the group and RD staff? Among the agency and RD staff?

Resolution must be logical and just

Handle problems quickly and directlyUse the membership agreement as

valuable toolDiscuss possible conflicts BEFORE they

happenFollow the steps:

Try to get the group to come to a consensusConst Sup or Group Coord should try to

resolveMake formal request to agency’s program

manager or EDBe aware of what problems may arise

Handle problems quickly and directlyUse the membership agreement as

valuable toolDiscuss possible conflicts BEFORE they

happenFollow the steps:

Try to get the group to come to a consensusConst Sup or Group Coord should try to

resolveMake formal request to agency’s program

manager or EDBe aware of what problems may arise

Review the Problem ID and Resolution Exercises

Pages 117 - 118

Review the Problem ID and Resolution Exercises

Pages 117 - 118

Maintaining Group Cooperation

Maintaining Group Cooperation

Set clear goals Change the group’s pace Keep the group informed of its progress Develop a reward or bonus system Discuss potential problems before they

ariseHandling nonparticipation of a group memberJudging quality of a participant’s labor performanceStopping disruptive behavior on the job site

Get families to monitor their own behavior and solve problems if possible

Set clear goals Change the group’s pace Keep the group informed of its progress Develop a reward or bonus system Discuss potential problems before they

ariseHandling nonparticipation of a group memberJudging quality of a participant’s labor performanceStopping disruptive behavior on the job site

Get families to monitor their own behavior and solve problems if possible

Potential Problems may be: Nonparticipation of a participant Poor quality labor performance by a

participant Disruptive behavior on the job site

*BP Whatever the problem, a quick acknowledgement and action will head off additional problems!

Potential Problems may be: Nonparticipation of a participant Poor quality labor performance by a

participant Disruptive behavior on the job site

*BP Whatever the problem, a quick acknowledgement and action will head off additional problems!

Group MotivationGroup Motivation

Motivation can be thought of in 2 ways: How to get someone to do what you want

Cannot be sustained throughout a SH program

How to get someone to want to do what you want them to do Takes more work Easier and more beneficial in the long term

Motivation can be thought of in 2 ways: How to get someone to do what you want

Cannot be sustained throughout a SH program

How to get someone to want to do what you want them to do Takes more work Easier and more beneficial in the long term

Motivation goes through cycles Starts out high, participants excited Program is hard, motivation lags

Lag can be caused by weather, slow progress, attitudes of other members, problems with subcontractors or suppliers

Give frequent compliments to boost spirits

Motivation goes through cycles Starts out high, participants excited Program is hard, motivation lags

Lag can be caused by weather, slow progress, attitudes of other members, problems with subcontractors or suppliers

Give frequent compliments to boost spirits

Participants involved in group motivation Group Coordinator Project Director Construction Supervisor RD Staff Subcontractors The Community

Participants involved in group motivation Group Coordinator Project Director Construction Supervisor RD Staff Subcontractors The Community

Group Activities – team building Meals on site Give measurable goals Delegate individual/group

responsibilities Encourage interaction and

teamwork Provide internal and external

motivation

Group Activities – team building Meals on site Give measurable goals Delegate individual/group

responsibilities Encourage interaction and

teamwork Provide internal and external

motivation

What Keeps the Group Motivated

What Keeps the Group Motivated

Identifying Values - beliefs of a person or social group in which they have an emotional investment (either for or against something)

Needs Desires Money Self-esteem

Identifying Values - beliefs of a person or social group in which they have an emotional investment (either for or against something)

Needs Desires Money Self-esteem

ReportingReporting

SHARES (Self-Help Analytical and Reporting Evaluation System)

Manage Track Evaluate Report

Monthly, Quarterly, Annually reporting

SHARES (Self-Help Analytical and Reporting Evaluation System)

Manage Track Evaluate Report

Monthly, Quarterly, Annually reporting

SHARESSHARES

Monthly Reports Reviewed by your T&MA Contractor and all

levels of RD. Shows: How much 523 $ spent/drawn down Status of recruitment Land development Construction progress Pre-construction meetings

Must be completed by 5th of every month!

Monthly Reports Reviewed by your T&MA Contractor and all

levels of RD. Shows: How much 523 $ spent/drawn down Status of recruitment Land development Construction progress Pre-construction meetings

Must be completed by 5th of every month!

QuarterlyPrimary tool in monitoring granteesDue to RD area office by the 15th of

each monthGroup Coordinator usually preparesSubmits to Housing Director

QuarterlyPrimary tool in monitoring granteesDue to RD area office by the 15th of

each monthGroup Coordinator usually preparesSubmits to Housing Director

*BP Program Evaluation

After the participants move in, have them evaluate the program, refer to Attachment #14

Get insight and recommendations from : Families Subcontractors Self-Help employees RD staff NCALL specialists

*BP Program Evaluation

After the participants move in, have them evaluate the program, refer to Attachment #14

Get insight and recommendations from : Families Subcontractors Self-Help employees RD staff NCALL specialists

The EndThe End