OFFICE OF COMMUNITY DEVELOPMENT

Michael Levier, Director

City of Opelousas
318 North Court Street
Opelousas, LA  70570
Office:  337-948-9035
Fax: 337-948-5205
Email: mlevier@cityofopelousas.com

2007-2008 REPORT: Affordable Housing

The Office of Community Development began researching and developing an affordable housing plan for the City of Opelousas in May, 2007 with Pat Fontenot and Yvette Bernard of United Bank & Trust; Lena Charles of Zydeco CHDO; Donald Robinson of St Landry Parish Community Action and Margaret Doucet of City of Opelousas Code Enforcement/Public Works department.. The committee will design a program utilizing adjudicated properties to provide an affordable housing for low income families in Opelousas.

After researching tax credits, Individual Development Accounts, and housing assistance agencies that will assist families with savings and asset building to enter the financial mainstream, the  committee will present a pilot program to Mayor Cravins in 2008. The goal is to present a plan that identifies affordable housing at a cost of no more than $70,000.00 to Opelousas low-income families.

The Office of Community Development has housed, Rebuilding Together St. Landry, formerly Christmas in April housing rehab program that keeps the elderly and disabled in St. Landry Parish "safe and dry" since July, 1999.

The office of Community Development also partners with United States Department of Agriculture (USDA) to establish housing grants and loans.  Opelousas residents can apply for USDA's

• 504 Loan and Grant Repair Program
• 502 Loan Program to Build or Purchase Program
• 502 Guaranteed Housing Low & Moderate Income Program

The application for these USDA programs can be obtained at the office of Community Development 8-5, Monday thru Friday located at 105 North Main Street.

504 Loan and Grant Repair Program

Rural Housing Repair and Rehabilitation Loans are loans funded directly by the Government.  These loans are available to very low-income rural residents who own and occupy a dwelling in need of repairs.  Funds are available for repairs to improve or modernize a home, or to remove health and safety hazards.  This loan is a 1% loan that may be repaid over a 20-year period.

Purpose: The Very Low-Income Housing Repair program provides loans and grants to very low-income homeowners to repair, improve, or modernize their dwellings or to remove health and safety hazards.

Eligibility: To obtain a loan, homeowner-occupants must be unable to obtain affordable credit elsewhere and must have very low incomes, defined as below 50 percent of the area median income. They must need to make repairs and improvements to make the dwelling more safe and sanitary or to remove health and safety hazards. Grants are only available to homeowners who are 62 years old or older and cannot repay a Section 504 loan.

Terms: Loans of up to $20,000 and grants of up to $7,500 are available. Loans are for up to 20 years at 1 percent interest. A real estate mortgage and full title services are required for loans of $7,500 or more. Grants may be recaptured if the property is sold in less than 3 years. Grant funds may be used only to pay for repairs and improvements resulting in the removal of health and safety hazards. A grant/loan combination is made if the applicant can repay part of the cost. Loans and grants can be combined for up to $27,500 in assistance.

Standards: Repaired properties do not need to meet other HCFP code requirements, but the installation of water and waste systems and related fixtures must meet local health department requirements. Water supply and sewage disposal systems should normally meet HCFP requirements. Not all the health and safety hazards in a home must be removed with Section 504 funds, provided that major health and safety hazards are removed. All work must meet local codes and standards.

502 Loan Program to Build or Purchase

Rural Housing Direct Loans are loans that are directly funded by the Government.   These loans are available for low- and very low-income households to obtain homeownership.  Applicants may obtain 100% financing to purchase an existing dwelling, purchase a site and construct a dwelling, or purchase newly constructed dwellings located in rural areas.  Mortgage payments are based on the household's adjusted income.  These loans are commonly referred to as Section 502 Direct Loans.

Purpose:  Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.

Eligibility:  Applicants for direct loans from HCFP must have very low or low incomes.   Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI.  Click here to review area income limits for this program.  Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance, which are typically within 22 to 26 percent of an applicant's income.  However, payment subsidy is available to applicants to enhance repayment ability.  Applicants must be unable to obtain credit elsewhere, yet have reasonable credit histories. .

Terms:  Loans are for up to 33 years (38 for those with incomes below 60 percent of AMI and who cannot afford 33-year terms). The term is 30 years for manufactured homes. The promissory note interest rate is set by HCFP based on the Government's cost of money.  However, that interest rate is modified by payment assistance subsidy.

Standards:  Under the Section 502 program, housing must be modest in size, design, and cost. Modest housing is property that is considered modest for the area, does not have market value in excess of the applicable area loan limit, and does not have certain prohibited features. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards.

502 Guaranteed Housing Low to Moderate Income Program

Are you ready to own a home but are not sure you will qualify due to lack of a down payment?  Rural Development may be able to help you!  USDA Rural Development has partnered with local lenders to help them extend 100% financing opportunities to rural individuals and families.

• No down payment required 
• No expensive monthly mortgage insurance means you may qualify for a larger loan
• Flexible credit and qualifying guidelines

The Rural Development guaranteed loan program has assisted thousands of customers just like you.  Tell your mortgage lender you want the USDA Rural Development Guaranteed Housing Loan.

*Apply with a local participating lender of  your choice and ask for the Rural Development Guaranteed Housing loan.

Updated: 08/18/2008

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