Housing and Housing Improvements for Low-Income, Homeless, and Victims of Domestic Violence I. TOPIC Bedford-Fulton Housing Services II. LOCATION South Central Pennsylvania III. SUBJECT Housing and Housing Improvements for Low-Income, Homeless, and Victims of Domestic Violence IV. SUMMARY In 1993, the Keystone Community Action Program (KCAP), a Community Action Agency serving south central Pennsylvania, offered its support in establishing Bedford-Fulton Housing Services, Inc. (BFHS), a separate entity that provides housing services to low-income residents of two rural counties. BFHS started with weatherization, utility, and home repair programs. A housing needs assessment/housing stock survey prompted BFHS to secure funds from the U.S. Department of Housing and Urban Development's HOME program and the state's Housing and Community Development (H&CD) program to address the substandard and special housing needs of the two counties. After implementing the rehabilitation program, BFHS received additional HOME and H&CD funds to continue a pilot first-time homebuyer program. The Pennsylvania Housing Finance Agency provided funds for BFHS to conduct a Homeowner's Emergency Mortgage Assistance Program (HEMAP) in six counties. BFHS' Neighborhood Assistance Program is establishing the area's first emergency shelter for the homeless, which will also provide counseling services and transitional and permanent housing. KCAP collaborated with the local Victim Services Agency to establish another corporation, Your Safe Haven, Inc., to provide shelter and other services to victims of domestic violence. V. SUCCESSFUL PRACTICE A Community Action Agency, local governments, banks, corporations, and other service providers worked together to create two separate entities that use a variety of funding sources and community partners to provide the rural, low-income population of two counties a comprehensive array of housing services, low-interest loans, counseling, and shelter to the homeless and victims of domestic violence. VI. CONTACT Marion Kruise, Executive Director Jeannee Mallow, Project Director Keystone Community Action Program (A Community Action Agency) 223 Penn Street, Huntingdon County Courthouse Huntingdon, Pennsylvania 16652 814-643-3010 814-643-8183 (FAX) VII. CASE STUDY The Problem: Bedford and Fulton Counties, two rural counties in south central Pennsylvania with a combined population of about 75,000, had a shortage of decent affordable housing for its low-income population. The counties were in particular need of homeownership opportunities and owner-occupied rehabilitations. Estimates show that more than 800 homes in the two counties lack complete indoor plumbing. There was also a shortage of special needs housing, e.g., shelter for the homeless and for victims of domestic violence. The Approach Adopted: The Keystone Community Action Program (KCAP), a Community Action Agency serving the two-county area, supported the creation of a separate entity, Bedford-Fulton Housing Services, Inc. (BFHS), to provide housing counseling and other housing services to the area's low-income population. How They Implemented The Approach: BFHS conducted a housing needs assessment/housing stock survey to determine the area's housing needs. The survey revealed that the two most pressing housing-related needs among the low-income population in the area were: assistance with owner-occupied housing rehabilitation; and a lack of homeownership opportunities. Additional study of the housing situation brought to light two other important needs: shelter and other services for families rendered homeless by natural disasters (fire, flood, etc.) or other emergency situations; and shelter and counseling services for victims of domestic violence and abuse. After determining local housing needs, BFHS submitted a proposal to the U.S. Department of Housing and Urban Development's (HUD) HOME program and Pennsylvania's Housing and Community Development (H&CD) program to develop a owner-occupied housing rehabilitation program. HUD and the state combined to give BFHS approximately $900,000 to implement rehabilitation programs in each of the two counties. Once the rehabilitation programs were underway, Bedford County approached BFHS about developing homeownership opportunities. KCAP gave BFHS funds from its Community Services Block Grant (CSBG), which BFHS used to add a housing counseling component to its services. When the county began its pilot program for homeownership, BFHS and Mid-State Bank met to develop an affordable homebuyer's package. The end result was an agreement to provide below-market interest rate loans, generally ¬ percent below the rate posted on the day a loan was secured. The loans are available with only a 5 percent down payment the homebuyer pays 2« percent; the county, through its Community Development Block Grant (CDBG), pays 2« percent and all closing costs; and BFHS provides housing counseling services. After the first year of the homeownership program, BFHS applied for and received additional HOME and H&CD funds to continue the program. Bedford County also provided additional 1994 CDBG funds. In addition to Mid-State Bank, the Keystone Financial Mortgage Corporation joined to help continue the homebuyer effort. To address the area's third housing need, shelter for the homeless, BFHS established a Neighborhood Assistance Program to raise funds to acquire and convert properties into homeless shelters. Under the Neighborhood Assistance Program, corporations receive state tax credits for 50 percent of the total of their cash and in-kind donations to the program. Among donations received to date, the First American National Bank of Pennsylvania has given BFHS five used mobile homes (valued at $68,000) to use as transitional housing. BFHS will provide comprehensive counseling services to the homeless in the program. BFHS plans to open its homeless shelter in October 1995. BFHS has recently joined forces with the local Victims Services Agency to meet the needs of victims of domestic violence and abuse. The two agencies realized they were using similar funding sources to provide identical services and that their mutual interests and the communities' needs would be better served if they collaborated. The recently incorporated Your Safe Haven, Inc., will provide emergency shelter and counseling services to victims of domestic violence and abuse. The Pennsylvania Housing Finance Agency (PHFA) provided funds for BFHS to begin a Homeowner's Emergency Mortgage Assistance Program (HEMAP) in six counties. Under the program, homeowner's who receive foreclosure notices can receive counseling services from BFHS. If BFHS determines that the homeowner intends to meet his or her obligations, but is temporarily unable to do so, BFHS applies to PHFA for assistance. If PHFA approves the application, the state assumes the person's mortgage payments for up to two years. The homeowner then resumes making mortgage payments and begins repaying to PHFA the funds it provided during the period of hardship. Once PHFA approves the loan applications, BFHS can conduct loan closings in nine counties. Results: To date, BFHS has helped finance 31 owner-occupied rehabilitation projects and eight first-time homebuyers. Through its HEMAP program, BFHS has provided housing counseling to 16 homeowners and helped with 31 loan closings. The victims services component has served 204 victims of domestic violence. Once it is fully operational, BFHS' homeless shelter will house approximately 300 people. VIII. KEY WORDS Community Action Agency Community Development Block Grant Community Services Block Grant Department of Housing and Urban Development Domestic Violence Emergency Shelter First-Time Homebuyers HOME Program Homeless Homeowner's Emergency Mortgage Assistance Program Homeownership Housing Housing and Community Development Housing Counseling Housing Rehabilitation Neighborhood Assistance Program Shelters Tax Credits Transitional Housing Victims Services