HOUSING FINANCE AUTHORITY.

LEGAL AUTHORITY

Act No. 103 of August 11, 2001, as amended, known as the Puerto Rico Housing Finance Authority Act, established the Housing Finance Authority as a subsidiary of the Puerto Rico Government Development Bank.

MISSION

Provide financing alternatives and subsidies, to assist low and middle income Puerto Rican families with rent, for the construction or refurbishing of their home, and to promote the construction of new housing through affordable subsidized programs, financing and incentives for the private sector.

VISION

To be recognized as the agency that facilitates housing for low and middle income families through excellence in the formulation, implementation and administration of financial initiatives.

STRUCTURAL ORGANIZATION

As provided for by Act No. 103, supra, the Authority's Board of Directors is comprised of 7 members. Two of them must be ex-officio, the Secretary of Housing (who presides over the Board of Directors) and the President of the Government Development Bank's Board of Directors. Additionally, 3 Board members must be from the Bank's Board of Directors, and 2 from the private sector.

The Authority is comprised of the following organizational units:

  • Administration
  • Multi-Family Projects
  • Single Family Projects
  • Legal Affairs
  • Auditing and Compliance
  • Human Resources
  • Executive Director's Office

GEOGRAPHIC LOCATION

The Housing Finance Authority is located at 606 Barbosa Avenue, in the Juan Cordero Building in Rio Piedras.

PROGRAMMATIC STRUCTURE

POSITIONS FILLED

Authorized and Proposed Positions 2009 2010 2011 2012
Sept./08 Sept./09 Sept./10 Feb./11 Proj.

 

Total amount of positions 173 164 142 132 132

Data comes from the Agency's Certified Headcount Reports. Figures for Fiscal Year 2011-2012 were estimated during the budget formulation process.

PROGRAMS

General Management and Administration

Program Description

Coordinates and develops the Agency's management and administration duties to implement public policy related to financing. It is comprised of the Executive Director's Office, Human Resources, Auditing and Compliance, Legal Services and Administration.

Objective

  • Provide administrative and support services to all institutional programs.

Customers

The Authority's programs and units

Human Resources

Authorized and Proposed Positions 2009 2010 2011 2012

Managerial,Technical, Administrative, and Office Staff 46 43 41 32
Planning, Budget, Statistics, Auditing, and Finance 20 14 13 13
Maintenance and General Services Staff 8 8 8 8
Information Systems 5 5 5 4
Total, Positions 79 70 67 57

Housing Financing Trust

Program Description

Issues capital market bonds to create trusts for the acquisition of mortgage titles with explicit or implicit federal goverment repayment guarantees. These titles are comprised of loans that originated in private banks and will be granted to low and middle income buyers for purchasing housing at qualified projects. Thus, stimulating the participation of private banks and the construction of new housing units.

Objectives

  • Establish the financial structure necessary for the operation and continuity of subsidized housing programs.
  • Strengthen Authority's finances with the use of financial arbitration mechanisms.

Customers

Buyers, developers and mortgage banks that offer financing services to the population interested in acquiring affordable housing.

Human Resources

The administrative functions of this program are performed by the Executive Director's staff.

Financing and tax credits for the development of multifamily housing

Program Description

Offers federal and state financing, and tax credits to housing developers to stimulate affordable housing construction in the private sector and increase the inventory of available housing in the rental market.

Objetive

  • Grant interim and permanent tax credits and loans that contribute to the creation of affordable housing for rent.

Customers

Developers

Human Resources

Authorized and Proposed Positions 2009 2010 2011 2012

Managerial,Technical, Administrative, and Office Staff 9 9 9 9
Total, Positions 9 9 9 9

The key to your Home

Program Description

Provides assistance for the acquisition of housing by subsidizing mortgages and closing costs for public servants who offer direct services to citizens and the general public.

Customers

Qualified public servants

Human Resources

Authorized and Proposed Positions 2009 2010 2011 2012

Managerial,Technical, Administrative, and Office Staff 2 2 2 2
Total, Positions 2 2 2 2

New Homes

Program Description

Constructs new permanent housing units for disaster victims whose residences are located at zones prone to natural disasters.

Customers

Hurricane Georges victims and other families whose home is located at zones prone to natural disasters.

Human Resources

The administrative functions of this Program are performed by the Multi-Family Projects Unit.

Partnership program for housing investments (HOME)

Program Description

The Association for Housing Investment Program (HOME) was created by the 1990 National Accessible Housing Law. This Program is financed entirely by federal funds. Every year, the United States Government assigns federal funds that are distributed among participating jurisdictions to stimulate the development of affordable housing.

Puerto Rico has been among this Program's participating jurisdictions since 1992. It is administered by the Housing Department. On July 1, 2011, the program will be transferred to the Authority. This Program is responsible for analyzing and selecting projects.

Objectives
  • Expand and provide housing opportunities for low-income families.
  • Strengthen relationships between the central government, municipal governments, the private sector and non-profit organizations for the design and development of low-income housing.
  • Promote the participation of Community Housing Development Organizations and assist with their need for low-income housing.

Customer

Municipalities, private developers, Community Housing Development Organizations, contractors, citizens and other non-profit organizations.

Human Resources

Authorized and Proposed Positions 2009 2010 2011 2012

Managerial,Technical, Administrative, and Office Staff 0 0 0 9
Planning, Budget, Statistics, Auditing, and Finance 0 0 0 3
Information Systems 0 0 0 1
Total, Positions 0 0 0 13

Home Mortgage Insurance

Program Description

Act No. 87 of June 25, 1965, as amended, empowers the Authority to insure the mortgages of properties in its inventory. This Program was created as an effective mechanism for getting private banks involved in the financing of affordable housing.

Objective

  • Provides mortgages insurance.

Customers

Individuals that close loans with the Authority and with private financial institutions that insure their housing projects through the Authority.

Human Resources

Authorized and Proposed Positions 2009 2010 2011 2012

Managerial,Technical, Administrative, and Office Staff 4 4 4 4
Total, Positions 4 4 4 4

Mortgage Loans Services

Program Description

Offers financing to low and middle income individuals when the client's economic situation does not allow him/her to qualify and apply for a mortgage loan under private market standards. The services offered include: closing cost subsidies, housing acquisition, and subsidies to cover improvements work.


Objective

  • Educate the public about the different programs and opportunities available.

Customers

Low and middle income people that need financing for the construction, acquisition and improvement of their homes.

Human Resources

Authorized and Proposed Positions 2009 2010 2011 2012

Managerial,Technical, Administrative, and Office Staff 31 32 31 21
Information Systems 1 1 1 1
Total, Positions 32 33 32 22

Subsidy for low income housing

Program Description

Law No. 124 of December 10, 1993 as amended, created this Program to address the low and middle income population housing problem. It is an inter-sector effort between the construction industry, private banks, the Government Development Bank, the Housing Department and the Authority. It provides funds for the down payment. In addition, it manages the entire evaluation, qualification, monitoring and promotion process for eligible projects.

Objetive

  • Encourage affordable housing construction by providing subsidies that allow buyers to acquire homes and meet the monthly mortgage payments.

Customers

Qualified low and middle income families

Human Resources

The administrative phase of this unit are performed by the programmatic structure of the Multi-Family Projects Unit.

Subsidized housing

Program Description

Provides low income families subsidies for the rental of homes, as established by Section 8 of the Federal Housing Act. It is responsible for determining the eligibility of participants, the amount of rent and the subsidy payment. In addition, it grants and coordinates subsidy payments to multi-family project owners according to Housing and Urban Development (HUD) criteria.

Objective

  • Grant rent subsidies to needy families that comply with Housing and Urban Development requirements.

Customers

Low income families that receive rent subsidies and multi-family rental developers.

Human Resources

Authorized and Proposed Positions 2009 2010 2011 2012

Managerial,Technical, Administrative, and Office Staff 47 46 28 25
Total, Positions 47 46 28 25


FISCAL YEAR 2011-2012 ADOPTED BUDGET

The adopted consolidated budget for Fiscal Year 2011-2012 is $211,485,000. The funding includes: $149,902,000 in Federal Grants, $25,579,000 from Revenues from Internal Sources, $8,992,000 from Loans and Bonds, and $27,579,000 from the American Reinvestment and Recovery Act (ARRA).

Operational Expenses reflect an increase of $15,998,000 in comparison with the funding allocated for 2010-2011. This increase is due to the net effect of the funding for expenses of the Housing Investment Association Program's (HOME) operation.

Contributing federal programs include: the Federal Housing Act Section 8 Rental Certificate Program. This increase will be used to provide subsidies for low income families.

Revenues from Internal Sources are generated from interest on mortgages, the income from loan closing costs and from mortgages sales. This funding is to be used for the administration, functioning and operation of its programs.

For Fiscal Year 2011-2012, it is estimated that the contributions in ARRA funds will amount to $27,012,000 for the improvement and construction of retirement home facilities and other projects under Section 42.

SUMMARY OF AGENCY'S AVAILABLE FUNDING

Consolidated Budget  (thousands $) 2009 2010 2011 2012

 

Program  
Operational Expenses Actual Actual Budget Adopted
Financing and tax credits for the development of multifamily housing 897 1,959 1,929 2,886
General Management and Administration 7,297 9,435 11,014 11,378
Home Mortgage Insurance 171 1,189 1,198 584
Housing Financing Trust 0 0 10,228 8,992
Mortgage Loans Services 2,681 3,762 5,672 2,847
New Insured Home 341 90,812 0 0
Partnership program for housing investments (HOME) 0 0 0 18,432
Subsidized housing 3,622 5,639 6,667 7,626
Subsidy for low income housing 313 313 50 50
The key to your Home 183 15,231 247 208
Subtotal, Operational Expenses 15,505 128,340 37,005 53,003
 
Subsidies, Incentives and Donations
Housing Financing Trust 8,475 11,753 0 0
Subsidized housing 119,465 108,350 122,705 131,470
The key to your Home 20,180 0 0 0
Subtotal, Subsidies, Incentives and Donations 148,120 120,103 122,705 131,470
 
Capital Improvements
Financing and tax credits for the development of multifamily housing 0 85,305 109,812 27,012
New Insured Home 5,513 0 0 0
Subtotal, Capital Improvements 5,513 85,305 109,812 27,012
Total, Program 169,138 333,748 269,522 211,485
 
Funding Sources  
Operational Expenses  
Federal Grants 341 0 0 18,432
Loans & Bond Issuance 0 0 10,228 8,992
Other Income 0 88,774 0 0
Revenues from Internal Sources 15,164 39,566 26,777 25,579
Subtotal, Operational Expenses 15,505 128,340 37,005 53,003
 
Subsidies, Incentives and Donations  
Federal Grants 119,465 108,350 122,705 131,470
Loans & Bond Issuance 8,475 11,753 0 0
Revenues from Internal Sources 20,180 0 0 0
Subtotal, Subsidies, Incentives and Donations 148,120 120,103 122,705 131,470
 
Capital Improvements  
Federal Grants 5,513 0 0 0
Federal Economic Stimulus - ARRA 0 85,305 109,812 27,012
Subtotal, Capital Improvements 5,513 85,305 109,812 27,012
Total, Funding Sources 169,138 333,748 269,522 211,485
 
Expense Category  
Operational Expenses  
Payroll and Related Expenses 11,054 11,168 11,125 11,094
Rent and Utilities 204 193 139 1,964
Purchased Services 2,039 2,039 2,487 1,454
Donations, Subsidies, and Distributions 0 15,000 0 27,424
Transportation Expenses 86 88,860 207 226
Professional Services 1,890 2,000 3,413 6,443
Other Expenses 110 8,959 19,331 3,134
Equipment Purchases 31 30 85 1,046
Office Supplies and other Materials 91 91 218 218
Subtotal, Operational Expenses 15,505 128,340 37,005 53,003
 
Subsidies, Incentives and Donations  
Incentives and Subsidies for Services to Citizens 148,120 120,103 122,705 131,470
Subtotal, Subsidies, Incentives and Donations 148,120 120,103 122,705 131,470
 
Capital Improvements  
Capital Improvements Program 5,513 85,305 109,812 27,012
Subtotal, Capital Improvements 5,513 85,305 109,812 27,012
Total, Expense Category 169,138 333,748 269,522 211,485


SUMMARY OF PROGRAM FUNDING

General Management and Administration

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Operational Expenses  
Revenues from Internal Sources 7,297 9,435 11,014 11,378
Subtotal, Operational Expenses 7,297 9,435 11,014 11,378
Total, Funding Sources 7,297 9,435 11,014 11,378
 
Expense Category  
Operational Expenses  
Payroll and Related Expenses 5,659 5,062 5,043 4,933
Rent and Utilities 99 89 63 872
Purchased Services 983 983 1,120 645
Transportation Expenses 42 42 93 100
Professional Services 428 278 1,164 2,942
Other Expenses 26 2,922 3,394 1,325
Equipment Purchases 15 14 39 464
Office Supplies and other Materials 45 45 98 97
Subtotal, Operational Expenses 7,297 9,435 11,014 11,378
Total, Expense Category 7,297 9,435 11,014 11,378
 

Housing Financing Trust

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Operational Expenses  
Loans & Bond Issuance 0 0 10,228 8,992
Subtotal, Operational Expenses 0 0 10,228 8,992
 
Subsidies, Incentives and Donations  
Loans & Bond Issuance 8,475 11,753 0 0
Subtotal, Subsidies, Incentives and Donations 8,475 11,753 0 0
Total, Funding Sources 8,475 11,753 10,228 8,992
 
Expense Category  
Operational Expenses  
Donations, Subsidies, and Distributions 0 0 0 8,992
Other Expenses 0 0 10,228 0
Subtotal, Operational Expenses 0 0 10,228 8,992
 
Subsidies, Incentives and Donations  
Incentives and Subsidies for Services to Citizens 8,475 11,753 0 0
Subtotal, Subsidies, Incentives and Donations 8,475 11,753 0 0
Total, Expense Category 8,475 11,753 10,228 8,992
 

Financing and tax credits for the development of multifamily housing

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Operational Expenses  
Revenues from Internal Sources 897 1,959 1,929 2,886
Subtotal, Operational Expenses 897 1,959 1,929 2,886
 
Capital Improvements  
Federal Economic Stimulus - ARRA 0 85,305 109,812 27,012
Subtotal, Capital Improvements 0 85,305 109,812 27,012
Total, Funding Sources 897 87,264 111,741 29,898
 
Expense Category  
Operational Expenses  
Payroll and Related Expenses 623 888 886 881
Rent and Utilities 8 10 7 110
Purchased Services 80 160 130 82
Transportation Expenses 3 3 11 13
Professional Services 177 177 482 1,561
Other Expenses 2 716 397 168
Equipment Purchases 1 2 5 59
Office Supplies and other Materials 3 3 11 12
Subtotal, Operational Expenses 897 1,959 1,929 2,886
 
Capital Improvements  
Capital Improvements Program 0 85,305 109,812 27,012
Subtotal, Capital Improvements 0 85,305 109,812 27,012
Total, Expense Category 897 87,264 111,741 29,898
 

The key to your Home

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Operational Expenses  
Revenues from Internal Sources 183 15,231 247 208
Subtotal, Operational Expenses 183 15,231 247 208
 
Subsidies, Incentives and Donations  
Revenues from Internal Sources 20,180 0 0 0
Subtotal, Subsidies, Incentives and Donations 20,180 0 0 0
Total, Funding Sources 20,363 15,231 247 208
 
Expense Category  
Operational Expenses  
Payroll and Related Expenses 137 123 122 110
Rent and Utilities 3 2 2 24
Purchased Services 39 28 29 18
Donations, Subsidies, and Distributions 0 15,000 0 0
Transportation Expenses 1 1 2 3
Other Expenses 1 76 88 37
Equipment Purchases 1 0 1 13
Office Supplies and other Materials 1 1 3 3
Subtotal, Operational Expenses 183 15,231 247 208
 
Subsidies, Incentives and Donations  
Incentives and Subsidies for Services to Citizens 20,180 0 0 0
Subtotal, Subsidies, Incentives and Donations 20,180 0 0 0
Total, Expense Category 20,363 15,231 247 208
 

New Insured Home

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Operational Expenses  
Federal Grants 341 0 0 0
Other Income 0 88,774 0 0
Revenues from Internal Sources 0 2,038 0 0
Subtotal, Operational Expenses 341 90,812 0 0
 
Capital Improvements  
Federal Grants 5,513 0 0 0
Subtotal, Capital Improvements 5,513 0 0 0
Total, Funding Sources 5,854 90,812 0 0
 
Expense Category  
Operational Expenses  
Transportation Expenses 0 88,774 0 0
Professional Services 341 601 0 0
Other Expenses 0 1,437 0 0
Subtotal, Operational Expenses 341 90,812 0 0
 
Capital Improvements  
Capital Improvements Program 5,513 0 0 0
Subtotal, Capital Improvements 5,513 0 0 0
Total, Expense Category 5,854 90,812 0 0
 

Partnership program for housing investments (HOME)

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Operational Expenses  
Federal Grants 0 0 0 18,432
Subtotal, Operational Expenses 0 0 0 18,432
Total, Funding Sources 0 0 0 18,432
 
Expense Category  
Operational Expenses  
Donations, Subsidies, and Distributions 0 0 0 18,432
Subtotal, Operational Expenses 0 0 0 18,432
Total, Expense Category 0 0 0 18,432
 



Home Mortgage Insurance

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Operational Expenses  
Revenues from Internal Sources 171 1,189 1,198 584
Subtotal, Operational Expenses 171 1,189 1,198 584
Total, Funding Sources 171 1,189 1,198 584
 
Expense Category  
Operational Expenses  
Payroll and Related Expenses 123 322 321 326
Rent and Utilities 2 4 3 49
Purchased Services 21 30 59 36
Transportation Expenses 1 1 5 6
Other Expenses 23 831 805 136
Equipment Purchases 0 0 0 26
Office Supplies and other Materials 1 1 5 5
Subtotal, Operational Expenses 171 1,189 1,198 584
Total, Expense Category 171 1,189 1,198 584
 



Mortgage Loans Services

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Operational Expenses  
Revenues from Internal Sources 2,681 3,762 5,672 2,847
Subtotal, Operational Expenses 2,681 3,762 5,672 2,847
Total, Funding Sources 2,681 3,762 5,672 2,847
 
Expense Category  
Operational Expenses  
Payroll and Related Expenses 1,765 1,702 1,695 1,122
Rent and Utilities 41 37 26 209
Purchased Services 406 406 466 155
Transportation Expenses 17 17 39 24
Professional Services 383 383 1,042 797
Other Expenses 45 1,193 2,347 406
Equipment Purchases 6 6 16 111
Office Supplies and other Materials 18 18 41 23
Subtotal, Operational Expenses 2,681 3,762 5,672 2,847
Total, Expense Category 2,681 3,762 5,672 2,847
 

Subsidy for low income housing

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Operational Expenses  
Revenues from Internal Sources 313 313 50 50
Subtotal, Operational Expenses 313 313 50 50
Total, Funding Sources 313 313 50 50
 
Expense Category  
Operational Expenses  
Professional Services 313 313 50 50
Subtotal, Operational Expenses 313 313 50 50
Total, Expense Category 313 313 50 50
 


Subsidized housing

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Operational Expenses  
Revenues from Internal Sources 3,622 5,639 6,667 7,626
Subtotal, Operational Expenses 3,622 5,639 6,667 7,626
 
Subsidies, Incentives and Donations  
Federal Grants 119,465 108,350 122,705 131,470
Subtotal, Subsidies, Incentives and Donations 119,465 108,350 122,705 131,470
Total, Funding Sources 123,087 113,989 129,372 139,096
 
Expense Category  
Operational Expenses  
Payroll and Related Expenses 2,747 3,071 3,058 3,722
Rent and Utilities 51 51 38 700
Purchased Services 510 432 683 518
Transportation Expenses 22 22 57 80
Professional Services 248 248 675 1,093
Other Expenses 13 1,784 2,072 1,062
Equipment Purchases 8 8 24 373
Office Supplies and other Materials 23 23 60 78
Subtotal, Operational Expenses 3,622 5,639 6,667 7,626
 
Subsidies, Incentives and Donations  
Incentives and Subsidies for Services to Citizens 119,465 108,350 122,705 131,470
Subtotal, Subsidies, Incentives and Donations 119,465 108,350 122,705 131,470
Total, Expense Category 123,087 113,989 129,372 139,096