LIFT for Homeownership Work Group Nears Completion Ahead of 2025 NOFA
The LIFT (Local Innovation and Fast Track) for Homeownership Work Group, convened by Oregon Housing and Community Services (OHCS) in partnership with the Oregon Department of Justice (DOJ), is nearing the end of its impactful journey. Over the past year, this dedicated team of stakeholders—including Shannon Vilhauer from Habitat for Humanity, Jackie Keogh from RootedHomes, and Kevin Cronin from Housing Oregon—has worked tirelessly to improve affordable homeownership opportunities in Oregon.
With one final meeting scheduled for December, the workgroup is wrapping up its efforts just in time for the release of the next Notice of Funding Availability (NOFA) in January 2025. The group’s work has resulted in a series of significant reforms that will better serve the program’s mission of addressing affordable homeownership needs across the state.
Key Reforms and Improvements
1. Subsidy Shift to Unit Size
Under the new framework, LIFT funds will be awarded based on the size of housing units rather than the value of the land. This approach ensures funding more directly supports construction costs, making projects in rural and underserved areas more feasible. By addressing these regional disparities, the program is better positioned to create equitable opportunities for homeownership statewide.
2. Enhancing Mortgage Alignment
The group also aligned LIFT-supported mortgages with private lending standards, including compatibility with Fannie Mae and Freddie Mac. This alignment bridges gaps between affordable housing programs and traditional financing markets, increasing stability and options for homebuyers.
3. Safeguards Against Foreclosure
Recognizing the need for long-term success, the workgroup introduced protections to reduce foreclosure risks for new homeowners. These measures provide a safety net to help families maintain their investment and build equity over time.
4. Streamlined and Transparent Documentation
To simplify the process for developers, bankers, and the state, the team created standardized templates for key legal documents. These templates not only reduce legal costs but also promote transparency and fairness by ensuring all parties operate with clear, consistent expectations.
Innovative Pilots and Supportive Features
The upcoming 2025 NOFA will include innovative features piloted through the workgroup’s efforts:
- Abbreviated Applications: A streamlined process for smaller projects with four or fewer units.
- Prioritization of Underserved Areas: Special funding set-asides for counties with fewer than 20 LIFT-supported homes.
- Technical Assistance and Training: Pre-NOFA support, including webinars on pro forma development and scoring rubrics, to ensure developers are prepared to apply successfully.
From Underutilized to Oversubscribed
Less than three years ago, OHCS considered eliminating the LIFT Homeownership program due to underutilization. Now, thanks to these reforms, the program is expected to be oversubscribed, with more developers applying than funding allows.
These changes are modernizing the program and making it more accessible, effective, and aligned with the needs of communities across Oregon. As the group concludes its work in December, the LIFT program is poised to help more families achieve the dream of homeownership and address critical housing needs statewide.
Stay tuned for the January 2025 NOFA and updates on how these improvements will shape affordable homeownership opportunities in Oregon.