50 Years of
The Fund was created by the Legislature as the statewide housing finance and development agency as a response to recommendations made by the 1967 State Task Force on Housing and the Appalachian Regional Commission.
The first Board of Directors was appointed.
Staff employed to operate the agency.
Commitments were made to finance three rental developments under the Department of Housing and Urban Development’s low and moderate income housing program.
The Fund entered the national capital market for the first time and sold its first bond issue, rated AA, in the amount of $12,155,000 to finance three multifamily projects.
The Fund’s legislation was amended authorizing the Fund to act as the statewide public housing authority, which broadened its powers to construct housing and to provide insured loans.
The Fund received authority to operate the Department of Housing and Urban Development’s Section 8 Existing Leased Housing Program.
Bond Anticipation Notes were sold to provide for the financing of additional multifamily projects. The median family income was $11,060, the median home value was $25,500 and the median mortgage loan was $20,740.
The Appalachian Housing Program was initiated. Bonds and notes in the amount of $51,500,000 were sold to finance multifamily projects, and $13,500,000 in bonds were sold to finance single-family homes.
The Legislature increased the Fund’s bonding authority from $130,000,000 to $300,000,000. Another $29,900,000 in bonds were sold to finance single-family homes. The Fund completed a Statewide Housing Needs Analysis, the most comprehensive analysis of its kind ever conducted in West Virginia. The single family mortgage annual income limit was $18,000, the house sales price limit was $42,000 and the average mortgage loan rate was 7.5%.
The Single-Family Mortgage Purchase Program was initiated with the sale of $62,000,000 in bonds. The Fund has sold $346,554,000 in bonds and notes since its inception in 1968.
Single-family bonds in the amount of $100,000,000 were sold, and $58,000,000 in multifamily bonds were sold. The Fund’s bonding authority was increased again from $300,000,000 to $500,000,000.
All housing functions of the State were transferred to the Fund. Bonding authority was increased to $700,000,000 and $192,900,000 in bonds were sold.
Federal legislation halted the Single-Family Mortgage Purchase Program and federal funding cutbacks reduced the rental housing programs. Bonding authority was increased to $900,000,000.
The Single-Family Program was reactivated with the issuance of $25,000,000 in bonds. The Construction Loan Incentive Program was initiated.
Twelve projects were financed under the Construction Loan Incentive Program with a $10,000,000 bond issue and $8,500,000 in bonds were issued to finance projects under the Department of Housing and Urban Development’s 11b program.
Single-family bonds in the amount of $38,700,000 were sold. Bonds were sold in the amount of $23,700,000 for the Construction Loan Incentive Program, and the Section 8 Leased Housing Program was turned over to local public housing authorities.
The Legislature expanded the purpose of the Fund to include student housing, housing for the homeless, temporary housing and housing for higher income citizens of the State. Bonding authority was increased to $1,250,000,000. Single-family bonds in the amount of $114,500,000 were sold.
In response to the November 1985 flood that affected 29 of the State’s 55 counties, the Fund opened a field office in the flood area and committed more than $7,000,000 to aid families with housing needs and to provide assistance to area businesses.
The Fund was designated a Top Tier Housing Agency by Standard and Poor’s Corporation. It was only the fifth state to receive such designation at the time. Flood recovery efforts were completed and the Fund closed its field office in the flood area. Single-family bonds in the amount of $95,800,000 were issued for mortgage loans.
The Fund entered a partnership with the State to develop homeless shelters under the Emergency Homeless Shelter Program. Bonds in the amount of $18,600,000 were issued for multifamily projects and $108,250,000 were issued for single-family mortgages.
With funds from its General Account, the Fund initiated the Building Revitalization/Reutilization Program. New legislation approved the Fund to aid economic development.
The Fund implemented the Low-Income Assisted Mortgage Program as a pilot program with Mountaineer Habitat for Humanity and initiated the Secondary Market Program. The Fund was also designated by the Governor to administer the U.S. Housing and Urban Development HOME Program with the initial designation of $9,700,000 to assist very low-income families.
The Fund created a down payment and closing cost assistance program.
The Fund’s Single-Family Program broke all records, loaning $90,000,000 in four months at the lowest rate to date of 6.50%. The Fund purchased approximately $4,000,000 in existing business loans from the West Virginia Economic Development Authority. On its first stand-alone competitive bond issue for its $10,600,000 1992 Housing Finance Bonds (FAF Multifamily Project Refunding), the Fund received a rating of AA+ from Standard and Poor’s Corporation. The Fund funded its first infrastructure projects: $800,000 for the water line extensions for the FBI (KGS) Center and $875,000 for the Fairmont Industrial & Credit Corporation for site preparation.
Standard and Poor’s Corporation advised the Fund it has maintained its Top Tier designation. Fitch Investor’s Service Inc. gave the Fund a rating of F-1+ on its unsecured debt, the highest possible rating. The Fund is the only financial institution in the State to receive this rating. The Fund offered its lowest single-family mortgage interest rate in history – 5.89%.
The Fund was awarded $100,000 from the Ford Foundation as a winner of its Innovations in State and Local Government awards.
Moody’s Investors Service, Inc. rated the Fund’s unsecured, long-term general obligation debt Aa.
Working with the West Virginia Disaster Recovery Board, the Fund assisted with a $5,000,000 permanent appropriation from the State to fund flood recovery efforts. The funds, under the control of the Disaster Recovery Board, will be administered by the Fund.
During fiscal 1997, the ratings on the Fund’s Housing Finance Bonds were raised from “AA+” to “AAA” by Standard & Poor’s Corporation and from “Aa1” to “Aaa” by Moody’s Investors Service, Inc.
With the issuance of the Housing Finance Bonds Series 1998A and B, the Fund’s total assets passed $1,000,000,000.
Issued first taxable bond issues in the amounts of $76,150,000 and $2,235,000 to refund prior bonds.
Moody’s Investor’s Service, Inc. raised the Fund’s long-term general obligation debt pledge to “Aaa.” This was the first time a State housing finance agency has achieved this rating. During fiscal year 2000, the total loans serviced by the fund exceeded $984,000,000.
The Fund began operations of the WVHDF Company, LLC, a wholly owned subsidiary created to provide competitively priced title insurance. Mortgage loan balances serviced by the Fund exceeded $1 billion.
The Fund responded to the housing needs of homeowners in 26 counties declared a national disaster area due to severe flooding. The Fund refunded $154,745,000 in high coupon debt creating a source of funds to recycle mortgage loans for the next 15-20 years.
Standard & Poor’s raised the Fund’s long-term general obligation debt rating to “AAA.” The Fund continues to be the only State housing finance agency to have achieved this rating.
The Fund began development of an Economic Development Program. On February 24, 2004, the Board of Directors approved a General Economic Development Bond Resolution and Plan of Finance authorizing the issuance of up to $30,000,000 in bonds to fund economic development projects.
The Fund developed a statewide mortgage loan program that allows the cost of moderate rehab to existing homes to be included in the first deed of trust mortgage loan. This program will provide an affordable source of funds that will allow borrowers to purchase existing homes in need of some level of repair that the borrower could not otherwise afford to complete.
The Fund issued its first series of Economic Development Financing Bonds under the General Economic Development Bond Resolution. The Economic Development Financing Bonds are secured by the projects funded from the Economic Development Program and by the Fund’s general obligation debt pledge.
The Fund reached a milestone by financing its 100,000th home.
The Fund developed a statewide loan program in partnership with the West Virginia Department of Environmental Protection (the “DEP”). Under this program, funds will be loaned to State residents to upgrade, replace or repair inadequate septic systems.
The Fund initiated a 3-2-1 buy down program to help families buy a new home. Under this program, buyers of new or never lived in homes can purchase those homes with below market interest rates during the first three years of the loan. The first year rate is lowered by 3%, the second year the rate is lowered by 2% and the third year the rate is lowered by 1%. This allows purchasers of new homes to adjust to the new payments and save substantial money in the process.
In October 2009, the U.S. Treasury announced a plan designed to aid state housing finance agencies to access the housing bond market. The program was offered under the Housing and Economic Recovery Act passed in July 2008. To participate in the U.S. Treasury plan, the Fund adopted a new bond resolution titled the General new Issue Bond Program Resolution.
The Fund offered first-time homebuyers the lowest mortgage rate in the history of the Fund. First-time Homebuyers were offered a 30-year fixed rate loan at 3.50%. This low interest rate was possible through a $35 million bond issue coupled with a special bond refunding.
Under the General New Issue Bond Program adopted in 2010, the Fund issued $118,620,000 in bonds for its first-time homebuyer program and also to refund older bonds for economic savings. The Fund broke its 2011 record by offering first-time homebuyers a 2.99% 30-year fixed rate loan, the lowest in the history of the Fund.
The Fund launched its Movin’ Up Program. Unlike other single family bond programs the Fund offers, the Movin’ Up Program does not have a first time homebuyer restriction and has significantly higher income limits than other single family programs offered. Its target market is for moderate income buyers who may have outgrown their current homes and want to move up to a larger home or move on to a home of greater value and it allows the borrower to incorporate down payment and closing cost assistance into the loan package.
The Fund implemented an enterprise wide software solution that tracks projects and advances them through the development process from coordinating the financing to tracking construction progress and monitoring compliance during the subsequent affordability period. This software provides for the electronic submission and review of documents such as tax credit applications and their associated documents, documents related to other Fund program applications and underwriting as well as documents required for compliance monitoring. The software also provides the ability to track progress and activity, to assign tasks and set deadlines and to create more efficiency throughout the entire process.
The Fund’s Demolition Program has evolved into the West Virginia Property Rescue Initiative (WVPRI) through a bill passed by the State legislature during the 2015 session. The Fund will allocate $1 million per fiscal year over the next five years to the WVPRI. The Fund will provide low-interest rate loans to municipalities and counties to be used to demolish or rehabilitate dilapidated, abandoned housing throughout the state. When appropriate the Fund will provide technical assistance, training and consulting services to counties and municipalities regarding the identification, purchase, removal and rehabilitation of properties.
The Fund offered first-time lower-income homebuyers the lowest mortgage rate in the history of the Fund. First-time homebuyers were offered a 30-year fixed rate loan at 2.75%. This low interest rate was possible through a $15 million bond issue coupled with a special bond refunding.
The Fund partnered with the Federation of Appalachian Housing Enterprises (FAHE) and the United States Department of Agriculture (USDA) to offer the USDA’s Section 502 Direct Loan Program. This program helps low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability.