The goals of the Idaho Housing Agency—now IHFA— were much the same in 1977 as they are today: to make housing costs affordable for Idahoans. This meant finding ways to reduce these costs to no more than 30 percent of a family’s income.

In 1977, IHA explored the possibility of a "backup security" for the Agency’s bonds—based on the backing from dedicated sales tax funds. An early 1930s Idaho Supreme Court case was the basis for the validity of the appropriation and a way to replenish its capital reserve bond funds.

"Suprisingly, the legislation was adopted by a large margin," comments IHFA Executive Director and President Gerald Hunter. "This was mainly due to IHA staff members and legal counsel diligently and personally contacting all interested legislators and legislative committee members prior to the start of the session."

With the Agency’s new sales tax-backed bond security, and a Moody’s and Standard and Poor’s bond rating of AA, IHA was positioned to finance qualified low-income apartment developments. The chance and challenge came in 1977 when IHA issued its first two sales tax backed bond issues to finance Section 8 assisted apartment units in 10 communities. Then in 1978, IHA "rescued" the elderly renters of the Shoshone Apartments in Kellogg, Idaho. IHA bought the 47-unit, low-income senior-citizen complex during its foreclosure with help from HUD and the City of Kellogg.

Also during 1978, IHA began to put together its Single-Family Residential Lending Program using its new sales tax backing as bond security. That year, the Agency issued its first $34.5 million bond with a 6.78 percent interest rate. At two and a half points below conventional loan rates, IHA’s first bond financed 1,000 loans. With an average home purchase price of $35,000, the gross annual income for a 1- to 3-person household was only $13,500.

"Today, it sounds like there were some great deals 30 years ago!" observes IHFA’s Vice President of Real Estate Lending, Bob Reed. "But compared to the typical family’s income back then, home ownership was still out of reach for many Idahoans. In that sense, not much has changed."

That same year, IHA was authorized by HUD to execute Section 8 Rental Assistance agreements for 689 units in Idaho. By 1979, it was administering agreements out of four field offices in Idaho Falls, Jerome, Coeur d’Alene and Lewiston.

Within a year, mortgage loan applications were being processed in Boise, Lewiston and Idaho Falls, through IHA’s purchase of 123 Graduated Payment Mortgages—a commitment to increase housing options in Idaho. IHA also started a Home Improvement Loan Program. Qualified lower-income families could borrow up to $15,000 at one to nine percent interest. As the need for more funds increased, IHA issued the first Home Improvement Bond in 1980 for $7.6 million.

Between 1981 and 1983, IHA implemented a Moderate Rehabilitation Program to preserve existing housing and revitalize neighborhoods; the single-family program had financed more than 5,800 mortgage loans; and the Agency had funded an Energy Conservation/Home Improvement Loan Program—a joint effort with the City of Boise and the Idaho Department of Water Resources that improved 300 homes.

"We learned the true value of joining forces to get the word out about our services, and also to come up with some great ideas to help people," stated Hunter. "Landlords, renters and home owners all saw the benefits."

At the close of 1985, IHA’s bonding authority by the legislature had increased to $600 million, a new field office was added in Blackfoot, a fax reservation system was added for lenders and staff had grown to 51 employees. Emphasis was put on refining and upgrading the Agency’s financial management and reporting methods to enhance and protect its financial reputation and credit rating. The Agency had made significant progress in its first 13 years and was definitely a champion for affordable housing programs in Idaho.