June 29, 2009

To: Local Governments / Redevelopment and Housing Authorities / Non-Profit Housing Advocates / Developers

The Virginia Housing Development Authority is pleased to announce Round 8 of the SPARC (Sponsoring Partnerships and Revitalizing Communities) loan program.

Based on the stakeholder feedback received during our regional SPARC sessions as well as the current market challenges faced by VHDA, we have retooled our business model and modified the programmatic criteria for SPARC. Due to the delay in the announcement of the Single Family SPARC Round 8 program, VHDA will be extending Round 7 SPARC commitments from June 30th to September 30th. This extension will ensure that organizations which have not exhausted their Round 7 allocations can continue to serve their clientele while the competitive process for Round 8 funding is underway. However, due to our new business model, any loans reserved after June 30th must meet VHDA's underwriting criteria noted in Round 8 of funding.

VHDA anticipates allocating a total of $175 million in Round 8 of funding. Resources will be available for reservations from October 2009 through June 2010. Approximately $150 million of the total allocation will be eligible for a reduction in the interest rate of 1/2%. In addition, VHDA will allocate $25 million of FHA Plus resources to organizations that provide a nominal amount of down payment and closing cost assistance to their first-time home buyers. Please see VHDA's SPARC Round 8 manual for guidance on leverage.

SPARC program eligibility requirements are currently available on-line in .pdf format. All applications for SPARC allocations must be received no later than close of business August 14, 2009. Applications will be ranked based on Round 8 programmatic criteria and allocations awarded in October 2009. In order to accommodate the number of applications and meet the stated deadlines, you are encouraged to submit your application as soon as possible.

Thank you for your continued support of VHDA programs and your commitment to affordable housing and neighborhood revitalization. Should you have any questions regarding the SPARC program or application requirements, please feel free to contact Toni Ostrowski, Senior Community Housing Officer, at (804) 343-5982 or toni.ostrowski@vhda.com.