Bonner Community Housing Agency assisting Boundary County
- Agency recently expanded its important reach into
- Sep 12, 2016
- 5 min read
The Bonner County Housing Agency (BCHA) recently expanded its important reach into affordable housing into Boundary County.
As a rehab property buyer competing with other buyers, BCHA recently made accepted offers on two Boundary County residences in need of repairs. The housing agency is a non-profit serving to acquire and refurbish residential properties that need extensive repairs to meet fair market standards.
Already proven successful in Bonner County, the agency is actively expanding into Boundary County to help both property owners and potential buyers including tenants in some cases.
BCHA, in cooperation with the Idaho Housing and Finance Association (IHFA,) provides classes designed to help potential buyers qualify for financing.
BCHA is a non-profit agency. Its project focus is the acquiring of, rehabilitation of and reselling at fair market values homes that need rather extensive refurbishing.
IHFA supplements BCHA approximately 14 percent of its budget from federal funds to assist BCHA with the paying of wages and operation expenses. Revenue made from resale of a BCHA project property go back into the process of normal operations and refurbishing expenses.
A non-board-member Realtor, in this case Carol Curtis of Century 21 Riverstone based in Sandpoint, negotiates and performs purchase and sale agreements on behalf of BCHA, just as any buyer’s agent would do. Essentially, BCHA enters the buyer’s end of the market on an equal and equally competitive level with all other would-be buyers. There is no dominant favor wielded by BCHA in the marketplace of bidding on a property.
Because BCHA was created to fill an apparent gap in affordable home ownership, it works in collaboration with IHFA’s Finally Home program to educate first time homebuyers in the financial responsibilities and qualifications to become homeowners.
Founding principles of BCHA recognize that home ownership generally improves neighborhoods across the spectrum by creating more positive environments in which to raise a family. BCHA recognizes that home ownership builds inner confidence for the entire family and thereby puts a majority of its new buyers on the track toward developing more successful life habits. Studies have shown that home ownership statistically creates greater continuity and stability in the lives of many owners.
How you can take advantage
The Home Acquisition / Rehab program offered by BCHA works closely with the Idaho Housing and Finance Association through the process of acquiring and refurbishing housing that enters the market in disrepair. In some cases, when a BCHA refurbished house is sold, it is the former tenants, if qualified, who become the homeowners.
BCHA classes, in cooperation with IHFA, serve to educate would-be homebuyers by requiring them to complete a specified financial education through an IHFA course called Finally Home. BCHA teaches the Finally Home course required by IHFA’s qualifying program.
The next available six-hour class will be held Saturday, August 20, 2016 at the Sandpoint Library on North Division and Cedar in Sandpoint The class begins at 9am and requires pre-registration through the library. Normally bearing a tuition fee, this class is FREE thanks to a private donor who is paying for it.
Boundary County residents interested in assistance with the home buying process are encouraged to sign up for and attend the course. You can preregister by calling the Sandpoint Library at 208.263.6930 or fax them at 208.263.8260.
How are homes chosen for acquisition and rehab under the program?
Of course the home has to be for sale first. But to qualify for the program, it must be a primary residence of a prospective buyer. In other words, the buyer has to take up residence in the purchased home. This is not for people who want to build a portfolio of rental properties.
By the education and subsequent guidance provided in the IHFA Finally Home program, renters can and often do become homeowners.
Code is the catch
Building codes are set to protect the homeowners. As American homes age, they often fall into disrepair. The BCHA program is designed to meet the need through funding provided by IHFA and other foundations willing to become players in the process.
Under the terms of its charter, BCHA acquires the home, establishes a budget and refurbishes it to code. Fair market value is predetermined for the completed project and the home is then sold to a qualified buyer (one who has completed the IHFA course). So even a tenant, if they can establish adequate credit, can buy and own a home.
Four points of buyer qualification
Not only is the prospective buyer of a BCHA-acquired and rehabbed home required to complete the IHFA Finally Home course, they must also be able to invest $500 in the purchase of the home at closing when they enter into the purchase.
The third point is, they must have non-retirement savings less than $5,000.
That third point changes for anyone over the age of 62 to non-retirement savings no greater than $10,000.
The fourth point, as taught in the IHFA course, is that the buyer's gross annual household income must be less than 80 percent of the Finally Home program's median income as shown below.
Family Size Maximum Household Income
1 $29,200
3 37,500
4 41,700
5 45,050
6 48,400
7 51,750
Again that’s less than 80 percent of the above listed values for a good reason: The median income numbers help determine exactly how much assistance a qualified buyer can receive for a no-payment, no-interest loan under the BCHA rehab program that goes toward closing costs and down payment.
Those requirements are one more reason why completion of the IHFA Finally Home course is a stipulated requirement.
If you have qualifying questions or wish to express interest and/or learn more, you can contact Bonner County Housing Agency staff by calling 208.263.5720 in Sandpoint.
Is BCHA already active in Boundary County?
Yes, BCHA currently has two houses under contract in Boundary County. Once those purchases close, these houses will enter the refurbishing process.
If you set about getting yourself prequalified for home ownership under this program (it begins with the IHFA course), you can begin working with an IHFA-approved lender almost immediately to prepare yourself to become an IHFA qualified buyer.
As you become more aware of the BCHA presence, check them out. Though they are Bonner County based, they are also now serving Boundary County. Sign up for the class. Open your mind and pocket to the belief that you too, if you never have, can actually own your own home.
You can follow BCHA updates by liking their page on Facebook/Bonner-Community-Housing or visiting their website at bonnerhousing.org.
Dwayne Parsons is a Realtor with Century 21 Beutler and Associates in Coeur d’Alene and an advisor Board member of BCHA. He works primarily in Bonner and Boundary counties but does not negotiate or take part in real estate transactions involving BCHA. His email is dparsons@21goldchoice.com.
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