How We Do It
Opening Doors to Opportunity
HDF provides a bridge between the dreams of first-time homebuyers and the requirements of responsible lenders. For over 20 years, HDF has executed a broad and dynamic mission, designing and implementing innovative products and programs.
HDF is a HUD-certified lender and counseling service agency that provides the homebuyer education and one-on-one counseling required to qualify for homebuyer assistance programs. Once potential homebuyers are qualified and have completed the educational requirements, HDF helps put together the financing package required to purchase a property selected on the open market or an affordable unit available from an HDF developer or municipal partner. After the purchase, HDF still remains available to new homeowners as they face the ongoing challenges of maintenance, condo boards, and other responsibilities of homeownership.
The HDF process begins with an initial 30-minute orientation session where applicants provide HDF with a completed application and all the necessary information to assess their qualifications as homebuyers and an HDF Homeownership Counselor provides details on our currently available programs. Homebuyer income criteria vary by program, but most require that buyers earn no more than 100% of the median income for the area.
Raising Opportunities, Lowering Risks
In over 15 years of lending to individuals and families, our loan delinquencies have been under 5 percent – well below the norm for even the strongest banks. We do this by offering financing that families can understand and manage. Our loans fit within the true value of each home, and they come with careful advice and preparation for every borrower.
HDF provides innovative lending products including:
- SmartMove low-interest second mortgages that offer up to 20 percent of the purchase price
- Homebuyer Assistance (HBA) loans that offer up to $10,000 to cover closing costs
- Live Where You Work Fund (formerly known as the Workforce Housing Down-Payment Assistance Fund) that offers up to $20,000 loans to families that purchase a property in the town where they work
Quality Affordable Housing for Diverse Communities
Not everyone wants to be a homeowner, and not everyone is ready to be. Healthy, diverse communities depend on a mix of housing types, including rental. To make sure that working families can find quality apartments within their budget, HDF offers financing specifically tailored to developers of affordable rental housing. For those who want to buy and renovate multi-family homes, HDF offers some of the hardest-to-find loans in the entire affordable-housing market. We have financing solutions for every stage of the process, from acquisition to construction to permanent operation. HDF is also working to develop LEAP, a program aimed at training first-time homebuyers to renovate and manage multi-family properties, acting as Landlord Entrepreneurs. As this new program takes shape, information will be available on our website.
< (Left) Bridgeport Mayor Bill Finch and HDF Board Chair John March stroll past the Bijou Square development, a residential/retail complex at the heart of Bridgeport revitalized with financing by HDF.
HDF works with a number of municipalities to help them identify qualified homebuyers for affordable housing and homebuyer assistance programs, and we have a history of developing innovative programs to facilitate affordable housing and homeownership for targeted populations including the elderly, transitional, public housing residents, mentally ill and previously incarcerated.
Our StrategyHDF’s mission and long-term strategic goals are to promote and support the development and preservation of affordable housing in contiguous communities in Connecticut and New York, and to ensure that all households and families in the region have the opportunity and access to affordable housing.
Over the next three years, HDF aims to raise funds – both capital to support the operations of loan programs, and philanthropic dollars to support the operations of our counseling programs – from current financial institution partners, new financial institutions, and philanthropic contributions from major businesses, private foundations, and individual donors. Finally, we will continue to work with policymakers directly and through housing policy organizations to preserve federal, state and local programs that impact affordable housing.
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