MILESTONES – 1986-1995

As we begin 1985, the affordable housing business is increasingly more complex and substantially different from the past. The Idaho Housing Agency must reexamine its role in affordable housing and provide other financing that will improve Idaho’s economy and infrastructure.

"To encourage construction and rehabilitation of affordable rental housing and conform to the 1986 Tax Reform Act, Governor John V. Evans signs an executive order designating IHA as Idaho’s allocating agency for Low-Income Housing Tax Credits," remembers Gerald Hunter, IHFA executive director and president. "The new act was viewed as an encroachment on the rights of states to finance essential programs and a burden on issuers of tax-exempt bonds," Hunter adds.

Nineteen eighty-six also sees Idaho families living in substandard or unaffordable housing and waiting up to two years for Section 8 rental assistance. The five field offices have a collective waiting list of over 1,400 families, whose average annual income is $3,100. Despite reductions in federal budgetary and tax code support, IHA focuses even more on housing choices for Idaho’s citizens.

IHA’s Single-Family Mortgage Lending Program was reactivated in 1988 and issued its first mortgage revenue bonds in three years. The new bonds were met with a tremendous response. While national interest rates were at a staggering 10 to 10.5 percent, IHA offers 8.80 to 8.94 percent—providing home to 950 families.

Continuing this new and critical housing role in 1989, IHA takes on 25 federal rental assistance units in Idaho Falls operated as a Scattered Site Low-Rent Public Housing Program. The Agency also begins offering construction and permanent loan terms—ranging from 15 to 30 years—and assumes responsibility for the Rental Rehabilitation Program and the Stewart B. McKinney Program—permanent housing development funds for homeless and handicapped persons.

Ever-changing federal legislation makes it increasingly difficult to do long-range planning. Despite these obstacles, IHA passes the $1 billion milestone in Single-Family Mortgage Revenue bond issuance in 1990 and purchases its 15,000^th home loan. None of which would have been possible without legislative bond increase authority from $600 million to $990 million.

This new year also marks the formation of IHA’s newest division—Mortgage Services Group—and the servicing operations for 2,078 single-family loans. The new division, aided by a new online servicing system, achieves lower delinquency and default rates, while providing better service to first-time home buyers.

"Nineteen-ninety also earned IHA its own national long-term general obligation credit rating of "A1" from Moody’s Investor Services," states Hunter. "At that time, IHA is one of a few housing finance agencies approved nationally to underwrite HUD multifamily loan insurance."

Homelessness is now recognized as a national crisis and part of Idaho’s rural housing picture as well. In 1990, IHA awards $183,000 in Emergency Shelter Grant funds for homeless prevention programs and emergency shelters. By 1992, Idaho’s supply of affordable rental housing is nearly exhausted, so IHA distributes $3.5 million in the new federal HOME Block Grant funds to nonprofit groups for rehab and new permanent rental housing for low-income tenants.

In 1993, national economic issues result in a dramatic reduction in mortgage interest rates. Narrow margins between IHA and conventional rates and the temporary sunset of MRBs force the Agency to provide housing opportunities by refinancing $16.5 million in existing bonds. In addition, IHA became the first state housing agency to issue "commercial paper"—another tool to ensure an adequate source of mortgage funds.

The new Family Self-Sufficiency Program is created in 1994 to provide opportunities and incentives for personal growth and fiscal responsibility. The Agency worked with the Idaho Department of Health and Welfare to assist nearly 100 families. Joint ventures continued into 1995, when IHA issues construction loans using both Housing Tax Credits and HOME Program dollars, and the first $14 million Consolidated Plan is developed with the Idaho Department of Commerce.

Nearly a quarter century and 86 employees later, IHA is thriving and fiscally sound. Despite seemingly insurmountable past challenges, this uniquely created Agency will soon face some of its most significant ones…