By Judy B. Bynum
Director of Publications and Information Services
North Carolina Housing Finance Agency
High interest rates have caused many young families to think they may never own their own home. However, many of these people could be helped by the North Carolina Housing Finance Agency, which works with private lending institutions in providing low-interest mortgage loans.
The state-chartered HFA is self-supporting and receives no state appropriations to cover salaries or operating expenses. Gary Paul Kane is Executive Director of the HFA, which is governed by a 13-member Board of Directors representing various segments of the housing industry.
Funds are obtained to make the below market interest rate mortgage loans through the sale of tax-exempt revenue bonds. The money generated by the bond sales is channeled through private lending institutions to North Carolinians qualifying for single family homes, and to developers building apartment projects for low and moderate income persons.
The HFA has had its most active year ever in 1983, providing a total of $216 million in mortgage financing. Of that amount, $168 million has been single family mortgages at 9 ' 6 ' 10.15 and 10.35 percent. Approximately 4,200 home loans will be made available with the proceeds of those three single family bond sales, the most recent of which occurred in November.
More than 8,000 mortgage loans for owner-occupied homes have been made available to date through the HFA. The average mortgage is approximately $35,000 to $40,000; applicants cannot have owned a home in three years and the family's income cannot exceed limits set by the HFA.
In addition to the single family bond sales, $28 million in multi-family financing was provided in 1983 for eight apartment projects at an interest
rate of 9.45 percent to developers.
Prior to 1983, the HFA's multi-family bond issues financed units which received federal rent subsidies. The new Unsubsidized Program was created this year to help fill the gap left behind when new federal rent subsidies were terminated. The new program accepts applications from developers at any time. When enough good proposals are received, the HFA plans to sell bonds to finance the apartment complexes.
The HFA also operates a Home Improvement Loan Program, which allows cities the opportunity to stretch their Community Development Block Grant (CDBG) dollars or other local funds to provide fix-up loans for low-income residents. Ten cities participated in this program this year; plans call for the expansion of the program to additional cities in 1984.
The HFA has made a concerted effort during the past 24 months to make more North Carolina Realtors, brokers, developers, city officials and prospective homeowners aware of its existence. There will probably not be another single family bond issue until mid-1984, depending on the outcome of federal legislation which has temporarily halted the program in all 50 states. But real estate professionals should keep the HFA in mind when investigating potential sources of financing.
HFA representatives are available to speak to housing related groups about the North Carolina Housing Finance Agency, its role in the overall housing picture and the services it offers. Please call or write the HFA at P.O. Box 28066, 424 North Blount St., Raleigh, N. C. 27611 (919) 733-4550 for more information.