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Lead-based Paint Dangerous for Children

Young children are particularly susceptible to lead poisoning since they are more likely to ingest lead paint chips, flakes, or dust and are more sensitive to the adverse health effects of lead. Elevated lead levels in young children can trigger

• learning disabilities
• decreased growth
• hyperactivity
• impaired hearing
• brain damage

Lead can be found in a number of places inside and outside the home. For example, lead can be found in household dust from deteriorating lead-based paint or from soil tracked into the house. It can also be found in drinking water coming from old lead pipes, fixtures and solder.

"Childhood lead poisoning is easily preventable with the right information and awareness. This grant will help Arizona tribal communities raise awareness about preventing lead's adverse health effects," said Administrator Jackson. "This project is an important example of the efforts happening across the country to protect our children from a major health threat."

Lead-based Paint Outreach to Native American Tribes

The Inter-Tribal Council of Arizona is developing culturally specific outreach materials to educate tribal families, especially parents of young children, and tribal staff on the health risks to children from exposure to lead-based paint.

Lead Awareness for Facility Maintenance Personnel

The program specifically reaches out to facility maintenance personnel to stress the importance of using lead-safe work practices when renovating buildings.

The use of lead-based paint in U.S. residential housing was banned in 1978.

Approximately 75% of the U.S. housing stock built before 1978, or 64 million homes, contain some lead-based paint.

For information on EPA's lead paint program, go to: http://www.epa.gov/region09/toxic/lead

For information on lead in paint, dust and soil, visit: http://www.epa.gov/lead

For information on protecting your family from lead hazards, visit: http://www.epa.gov/lead/pubs/leadinfo.htm#where

In July of 2007 HUD introduced its Green Initiative, a nationwide pilot initiative to encourage owners and purchasers of affordable, multifamily properties to rehabilitate and operate their properties using sustainable Green Building principles.

Green Building and Healthy Housing Concepts

These principles comprise sustainability, energy efficiency, recycling, and indoor air quality, and incorporate the "Healthy Housing" approach pioneered by HUD.

The Green Initiative will focus on properties within HUD's Section 8 portfolio, specifically properties in the Mark to Market (M2M) Program administered by the Office of Affordable Housing Preservation (OAHP).

What is Green Building?

The real estate industry, including the housing industry (and more particularly the affordable housing industry), is undergoing a fundamental shift toward Green Building principles.

Green Building is designed to result in a property that reduces its impact on the environment, costs less to operate, and improves the residents' quality of life.

Green building considerations start with site selection and include building placement and design, materials and techniques used in construction, and all the systems, appliances, and fixtures within the building. Wikipedia provides a good working definition for the OAHP Green Initiative:

• Green building is the practice of increasing the efficiency with which buildings and their sites use and harvest energy, water, and materials, and reducing building impacts on human health and the environment, through better siting, design, construction, operation, maintenance, and removal - the complete building life cycle.

To date, the focus of green initiatives has been on new construction rather than on rehab, particularly  moderate rehab that is associated with M2M properties.

There are fewer opportunities to Go Green in rehab, but the opportunities are  significant, particularly when viewed in the context of the M2M standard 20-year schedule of property repairs and replacements.

Green Rehab Benefits

Green rehab practices should result in lower utility costs that benefit HUD as well as residents and lower environmental impact. When rehab is performed in a manner that meets both Green and Healthy Housing principles, residents will benefit from

• lower utility costs
• improved indoor air quality
• lower risk of pest infestations
• lower levels of allergens
• reduced risk of mold-related illness

Why apply Green principles in the M2M Program?

The M2M Program offers a unique platform for establishing a Green Initiative in the HUD affordable housing portfolio because it can be implemented within existing statutes, regulations, and authorities.

M2M provides opportunities to implement Green Building principles in a representative sample of M2M restructurings involving properties that are already undergoing rehabilitation.

As HUD's primary housing preservation tool since its creation in 1997, OAHP has restructured more than 1,600 projects nationwide through the M2M program. These projects are privately owned, HUD-subsidized (through Section 8), multifamily properties, with approx 100 units each, on average.

In addition to rehabilitating properties, M2M also resizes and restructures property debt to account for market rent levels, to pay for rehabilitation and 20 years' of estimated repairs and replacements, and to establish a financially viable project for the long term.

M2M provides an opportunity to test the impact of Green and Healthy Housing principles in the existing HUD-subsidized multifamily inventory by providing modest incentives to owners and purchasers to perform needed rehab and maintenance using Green alternatives, and to collect ongoing data to validate impacts on utility consumption and indoor air quality.

In developing the Green Initiative, OAHP has consulted with several industry experts, and their participation has been invaluable in the development of this outline. By launching the Green Initiative through M2M, HUD has the opportunity to continue to work with industry leaders to shape both the future of HUD's efforts and of the Greening of affordable housing in this country.

MORE INFO: http://www.hud.gov/offices/hsg/omhar/paes/greenini.cfm

On May 6, the secretaries of HUD and the Department of Energy (DOE) signed an MOU  to facilitate use of DOE Weatherization Assistance Program (WAP) funding in public housing and privately owned, federally assisted housing properties.

HUD-Qualified Housing
Low Income Housing Tax Credit (LIHTC)

these properties, which are designated as "HUD-Qualified Housing," as well as those funded with the Low Income Housing Tax Credit (LIHTC) have sufficient income verification and rent controls to essentially prequalify them for the income and rent restrictions of the DOE's WAP program.

The WAP program requires that the households assisted have incomes no greater than two times the federal poverty level. In addition, when the funds are used in multifamily buildings, there must be sufficient controls to assure that WAP funded improvements are not used by owners to unduly raise rents and burden the low income people the program is intended to benefit.

Specifically, the MOU states that DOE will accept HUD's and the LIHTC program's beneficiary income eligibility determination and ongoing verification for the Weatherization Assistance Program (WAP).

To facilitate this, HUD will give DOE a list of "HUD-Qualified Housing" and LIHTC projects, and within 60 days HUD and DOE will provide joint guidance to states for evaluating income eligibility in order to implement the MOU. The agencies will also organize joint forums to educate stakeholders.

The American Reinvestment and Recovery Act (ARRA) provided $16 billion to DOE and HUD to improve the energy efficiency of existing homes. The Weatherization Assistance Program, which has been funded in recent years at roughly $250 million, received an additional $5 billion in ARRA. Similarly, HUD received $4.5 billion in new funding to renovate and upgrade public housing and $250 million to retrofit the privately owned, federally assisted housing.

The MOU is at www.hud.gov/recovery/doemoucombined.pdf

Home improvements for a home that you just purchased -- new, old or in between -- are often required before a bank will close on a home loan.  However, it's also possible that additional problem crop up...and that there are less necessary, but highly desired improvements you will want to make upon moving into your newly purchased home.

HUD (US Housing and Urban Development) makes loans available through the HUD 203(k) program to help buyers purchase or refinance a property plus include in the loan the cost of making repairs and improvements.  The FHA insured 203(k) loan is provided through approved mortgage lenders nationwide. 

The downpayment on this type of home improvement loan is approximately 3% of the acquisition and repair costs of the property.

The HUD 203(k) home improvement loan goes through these steps:

1. A potential homebuyer executes a sales contract after doing a feasibility analysis of the property with their real estate agent. The contract should state that the buyer is seeking a 203(k) loan and that the contract is contingent on the home improvement loan based on additional required repairs by the FHA or lender.

2. The homeowner selects an FHA-approved 203(k) lender and prepares a detailed proposal showing hte scope of work and a detailed cost estimate on each repair or improvement.

3.  An appraisal is performed to determine the value of the property after renovation.

4. If the home improvement loan is closed, it will cover the purchase or refinance cost of the property, the remodeling costs and the allowable closing costs.  The home improvement loan will also include a contingency reserve of 10% to 20% of the total remodeling cost to cover any extra work needed.

5. At closing, the seller is paid and the remaining funds are put into escrow to pay for the repairs and home improvements during the rehabilitation project.

6. Mortgage payments and remodeling begin after the loan closes.  Up to six mortgage payments can be put into the cost of rehabilitation if the property will not be occupeid during construction.  Some restrictions apply.

7. Escrow funds are released to the contractor during construction through draw requests for completed work. Restrictions apply.

For a list of lenders who offer the 203(k) Rehabilitation Program, see the 203(k) Lenders List.

Before you undertake a home improvement loan, it is helpful to visit with other people -- friends, relatives or classmates in a home improvement class -- about the ins and outs of caring for a home, selecting a good contractor, and monitoring the work being done on the property.  Helpful advice and tips can be shared that cover your particular weather patterns and the kind of insulation or moisture control improvements that will make your home safe and snug for you and your family. 

Housing is the largest investment a family usually makes in their entire lifetime, and it pays to take your time, do your research, and select your home improvement loan and remodeling contractor carefully. 

Tax deductions for interest on home equity loans can make remodeling more affordable.  Here are a couple tips to ask your tax advisor about...and to figure into the cost of your next remodeling or home improvement projects.

The IRS allows you to  deduct the interest on up to $100,000 of home equity debt that is used for any purpose. That's on your home, not rental property.

HELOC deductions on second homes can qualify as a home mortgage interest if you use the home as a vacation home during the year.

So...consider remodeling projects that will reduce your energy and water costs.  With today's low interest rates, you might be able to get that weatherization or remodeling loan more easily than you could move to your dream home!