Revised ADDI OMB Package Jan 08

SUPPORTING STATEMENT

Survey of Participating Jurisdictions in ADDI/HOME Programs

Submitted to:

Office of Management and Budget

Washington, D.C.

Submitted by:

Department of Housing and Urban Development

451 Seventh Street, SW

Washington, D.C. 20410

May XX, 2007

T able of Contents

Part A Justification 2

A1 Circumstances That Make the Collection of Information Necessary 2

A2 How and by Whom the Data Will Be Used 3

A2.1 Project Overview 3

A2.2 Purpose of the Data Collection 3

A2.3 Who Will Use the Information 3

A2.4 Instrument Item-by-Item Justification 3

A3 Use of Improved Technologies 5

A4 Efforts to Avoid Duplication 5

A5 Involvement of Small Entities 5

A6 Consequences of Less Frequent Data Collection 5

A7 Special Circumstances 5

A8 Consultations outside the Agency 6

A9 Payments to Respondents 6

A10 Arrangements and Assurances Regarding Confidentiality 6

A11 Sensitive Questions 6

A12 Estimate of Annualized Burden Hours 6

A13 Estimated Record Keeping and Reporting Cost Burden on Respondents 7

A14 Estimated Cost to the Federal Government 7

A15 Reasons for Changes in Burden 7

A16 Tabulation Plan, Statistical Analysis, and Study Schedule 7

A17 Expiration Date Display Exemption 8

A18 Exceptions to Certification 8

Part B Statistical Methods 9

B1 Respondent Universe and Sampling Method 9

B2 Information Collection Procedures 10

B3 Maximizing Response Rates 11

B4 Tests of Procedures or Methods 11

B5 Statistical Consultation and Information Collection Agents 11

Appendix A: Data Verification and Collection of ADDI/HOME Program Participants 12

Data Verification and Collection Instrument 13

Appendix B: Questionnaire on General Characteristics of ADDI/HOME Programs 17

Program Characteristics Questionnaire 18

Part A
Justification

A1 Circumstances That Make the Collection of Information Necessary

The U.S. Senate Committee Report of the FY 2006 Transportation, Treasury and HUD Appropriations Act directed the U.S. Department of Housing and Urban Development (HUD) to report on the default and delinquency rate of households who receive downpayment assistance through the American Dream Downpayment Initiative (ADDI). In response to this directive, HUD has contracted with Concentrance Consulting Group Inc. (Concentrance) to conduct this study. Concentrance has subcontracted with Abt Associates to assist in the conduction this study. The primary objective of this study is to provide an estimate of the delinquency and default rate among homebuyers assisted through both ADDI and the HOME Investment Partnerships Program (HOME). HOME is a pre-existing formula grant program of which the ADDI is a component. To conduct this study, we request clearance of a survey of participating jurisdictions (PJs) that were eligible for allocations of ADDI funding through the HOME program in fiscal year 2004. We selected a sample of the PJs that met eligibility requirements to assure that PJ data from ADDI and HOME are comparable. (Eligibility requirements are discussed in Part B-B1, “Respondent Universe and Sampling Method.)

As the ADDI program only began assisting homebuyers in 2003, and a good deal of program activity has only occurred in more recent years, there is not a great deal of program history to be able to provide a good indication of delinquency and default. Since those assisted by ADDI are believed to be quite similar in most respects to those assisted by the HOME program generally, HUD has called for the study to also estimate delinquency and default rates for the HOME program going back to 2000.

In addition to information on delinquency and default rates, HUD is also interested in an analysis of the reasons behind these outcomes. Thus, a secondary purpose of this study will be to analyze the factors associated with variations in delinquency and default rates.

Data collected in this survey will help to address the goals of this study by using information collected from the PJs and FHA to:

1. Estimate a statistically valid foreclosure rate among the participants of the ADDI /HOME programs.

2. Identify aspects of PJ programs that are intended to lower the risk of foreclosure. For example, the majority of homebuyers assisted through the ADDI/HOME programs receive some form of homeowner education or counseling. One question of interest is whether the provision of education or counseling – including the timing, intensity, and form of these services – affects the delinquency and default rates of assisted buyers.

3. Assess whether the level of ADDI/HOME assistance provided has an impact on the likelihood of the buyer facing later difficulties in meeting their mortgage payments. The establishment and nature of such a relationship will be of particular interest to policy makers.

4. Identify ADDI- and HOME-assisted homebuyers whose mortgages are insured by FHA. FHA data will be used to estimate mortgage delinquency rates experienced by assisted homebuyers.

A2 How and by Whom the Data Will Be Used

A2.1 Project Overview

This survey will collect data to serve three purposes. First, this survey will solicit information on a representative sample of homebuyers directly from PJs that administer ADDI/HOME funds. These data will be used to calculate a statistically valid estimate of the foreclosure rate for the ADDI/HOME programs in each year from 2000 through 2005. Second, the survey will solicit basic information on how the PJs manage their ADDI/HOME programs; this information will be used to identify features of downpayment assistance programs that affect observed foreclosure rates. Concentrance Consulting Group will administer the survey primarily by email with telephone follow-up as necessary. Third, the data collected will allow us to identify ADDI- and HOME-assisted homebuyers in FHA data that will make it possible to estimate mortgage delinquency rates for this subset of all assisted homebuyers.

Contingent upon OMB approval, the survey data collection will be conducted over a 12-week period, beginning in August 2007.

A2.2 Purpose of the Data Collection

The proposed study will fulfill three important needs for U.S. Congress and HUD. First, it will provide systematic and comprehensive information on the default and delinquency rate among ADDI/HOME-assisted homebuyers. Second, the study will compare the estimated ADDI/HOME default and delinquency rates to those of homebuyers not so assisted. Data on unassisted homebuyers will come from FHA databases. Finally, the study will seek to identify and quantify the factors which affect the default and delinquency rates. All of these will help Congress and HUD assess actions and policies related to these programs.

A2.3 Who Will Use the Information

The information will be used to prepare a report to respond to the request by the U.S. Congress for information on the default and delinquency experience in the ADDI program. The report will also highlight the factors associated with default and delinquency rates of households who receive downpayment assistance through the ADDI/HOME programs, which will help policymakers and program managers structure more successful programs.

A2.4 Instrument Item-by-Item Justification

Exhibits 1 and 2 describe the content and reason for inclusion of each question in the survey instruments.

Exhibit 1

Item-by-Item Justification of Survey – Homebuyer Information

Question(s)	Content, and Reason for Inclusion
Section A Homebuyer and Property Data to Verify/Correct	Content: Basic information on the property and homebuyer previously reported by the PJ in HUD’s Integrated Disbursement and Information System (IDIS), including buyer’s name, property address, purchase price, completion date, type of loan (FHA/non FHA), ADDI/HOME amount and type (grant, loan, etc.) of assistance, other amounts/sources of financing or assistance, and the affordability period.1 Reason: To verify and, if necessary, correct the information previously reported by the PJ on basic descriptive information on the assisted homebuyer and the property purchased to support the analysis and to match records to other administrative data maintained by HUD.
Section B Key Data to Collect	Content: The current status of the homebuyer based on the lien established for ADDI/HOME assistance (lien active, satisfied, or expired, or property foreclosed).2 The programmatic source of downpayment assistance: ADDI or HOME. The homebuyer’s household income. Reason: All of these data items should be available in the PJs files. The current status of the homebuyer is essential to the study’s goal of estimating the foreclosure rate for the ADDI/HOME programs. The programmatic source of downpayment assistance is not captured by HUD’s IDIS data and is needed to identify whether the outcomes differ between these programs. The borrower’s household income is only reported in IDIS as a range, while the actual income level is needed for analysis of outcomes.
Section C Data from the Loan Application	Content: Loan details such as buyer’s cash contribution, the primary mortgage amount, and the interest rate; the borrower’s credit score. Reason: These items may be available in the PJs’ files if they keep a copy of the mortgage application. The loan application items will be used to analyze the factors associated with foreclosure incidence.

Exhibit 2

Item-by-Item Justification of Survey – General Program Information

Program characteristics of the PJ

Content: Details of homeownership education or counseling, details of client screening and of buyer protection efforts. Reason: To identify the impact of the way that assistance is administered on foreclosure experience.

A3 Use of Improved Technologies

The survey will be administered primarily by email with telephone follow-up as needed. The email will contain the following attachments:

• A Microsoft Excel workbook with a list of the homebuyers from that PJ that have been sampled listing:

  • The IDIS data fields to be verified; and

  • The additional data elements sought.

A shell of the data verification form can be found in Appendix A.

• A Microsoft Word document (shown in Appendix B) with general questions about the management of their programs, including questions about:

  • Housing counseling

  • Applicant screening

  • Counseling on predatory lending practices

To maintain security of confidential data transmitted we will encrypt the files and protect them with passwords that are communicated separately from the files.

A4 Efforts to Avoid Duplication

In designing the survey, available information on its subject was carefully reviewed to ensure that the survey gathers only information not available from existing sources. In particular, we identified data fields of use to the study that were reported by PJs in HUD’s IDIS database. These data will be presented to PJs for them to validate.

A5 Involvement of Small Entities

No small businesses or other small entities are involved as respondents in the proposed data collection effort. Respondents to this data collection request are government agencies that are participating jurisdictions in the HOME and ADDI programs. Efforts have been made to minimize response burden on respondents through careful design of the data collection strategy and efficient construction of the data collection instruments.

A6 Consequences of Less Frequent Data Collection

Not applicable. This is a one-time data collection effort.

A7 Special Circumstances

The proposed data collection activities are consistent with the guidelines set forth in 5 CFR 1320.6 (Controlling Paperwork Burden on the Public—General Information Collection Guidelines). There are no special circumstances that require deviation from these guidelines.

A8 Consultations outside the Agency

In accordance with Paperwork Reduction Act of 1995, HUD published a notice in Federal Register Volume 72, No. 41, on March 2, 2007 (FR-5123-N-02) announcing the Department’s intention to request an OMB review of data collection activities for this survey. The notice provides a 60-day period for public comments. No comments were received.

HUD’s contractor, Concentrance Consulting Group, Inc. developed this data collection instrument in consultation with staff from HUD and a subcontractor (Abt Associates Inc.). Pre-testing of the survey instruments with up to nine respondents will be conducted in June and July 2007.

A9 Payments to Respondents

Respondents are being asked to voluntarily complete the survey.

A10 Arrangements and Assurances Regarding Confidentiality

All of the information to be collected has already been collected by state and local agencies administering the ADDI and HOME grant programs, so no new assurances of confidentiality are being made to the individual recipients of assistance through these programs. Much of the information collected has already been reported to HUD, but is being verified to ensure the accuracy of the reported information. The items being requested that were not previously reported to HUD are of a similar nature to what has already been reported, providing details on the financial characteristics of the home purchase transaction supported by the ADDI and HOME programs. The information collected will be handled following procedures designed to keep sensitive personal information secure. Electronic data files will be password protected and any files transferred will be encrypted and password protected. No data will be released or reported to parties other than HUD and its contractors that can identify any individuals assisted by the ADDI or HOME programs.

A11 Sensitive Questions

The survey does not contain any questions that are considered sensitive.

A12 Estimate of Annualized Burden Hours

Exhibit 3 provides information on the survey to be used in the study and the estimated time to complete the data collection. There are a total of 33 PJs for each year that will be surveyed. Since PJs may be selected for more than one year, a total of 129 PJs are expected to be sampled out of a total of 423 PJs eligible for the survey. With an expected response rate of 90 percent (explained in Part B), there will be a total of 116 respondents. Since respondents will on average spend 12 hours completing the survey, the total burden for data collection for the study is estimated at 1,392 hours.

Exhibit 3

Respondent Burden

A	B	C	D	E	F	G
Number of Respondents	Average Burden per Respondent (Minutes)	Total Annual Burden (Minutes)	Number of Responses per Respondent	Total Respondent Burden (Minutes)	Total Burden per Respondent (Minutes)	Total Respondent Burden (Hours)
		(A*B)		(C*D)	(B*D)	(E/60)
116	720	83,520	1	83,520	720	1,392

A13 Estimated Record Keeping and Reporting Cost Burden on Respondents

There is no cost to respondents, other than the time required to respond to the survey.

A14 Estimated Cost to the Federal Government

The total contracted cost to the federal government for the Internet-based survey of HUD-approved counseling agencies is $150,691.

A15 Reasons for Changes in Burden

This submission to OMB is a new request for approval; there is no change in burden.

A16 Tabulation Plan, Statistical Analysis, and Study Schedule

A16.1 Tabulation Plan and Statistical Analysis

The primary objective of the analysis of the data collected will be to estimate the foreclosure rate experienced collectively under the ADDI and HOME programs during each calendar year from 2000 through 2005. The foreclosure rate will be estimated as the number of assisted homebuyers from each calendar year that are reported by PJs to have been foreclosed upon divided by the total number of assisted homebuyers in that year. As will be described more fully in Part B, the sample of homebuyers will be selected from between four and eight strata each year. For each stratum we will estimate sampling weights that will be applied to the counts of homebuyers for that stratum to estimate the overall foreclosure rate in each year.

In addition to tabulating the overall foreclosure rates for each year, the annual data will also be tabulated by the following characteristics of the homebuyer and their home purchase transaction to examine whether foreclosure rates appear to vary with any of these factors:

• Type of PJ (state, city, county, consortium);

• Region of the country;

• Type of loan (fixed or adjustable rate);

• Borrower income relative to Area Median Income (AMI);

• Borrower race;

• First time buyer status;

• Program characteristics (use of counseling, eligibility requirements, or anti-predatory lending policies);

• Type of mortgage insurance (FHA vs. non-FHA);

• New construction versus existing home; and

• Neighborhood characteristics, where neighborhood will be defined as the census tract and will include median house value relative to MSA median, median household income relative to MSA median, percent minority, percent college grads, percent new construction, percent owner occupied homes, and percent single-family detached housing.

The association between foreclosure rates and the factors listed above will also be analyzed using multiple regression analysis to assess the statistical significance of these associations while simultaneously controlling for all of these factors.

A17 Expiration Date Display Exemption

All data collection instruments will prominently display the expiration date for OMB approval.

A18 Exceptions to Certification

This submission describing data collection requests no exceptions to the Certificate for Paperwork Reduction Act (5 CFR 1320.9).

Part B
Statistical Methods

HUD has contracted with Concentrance Consulting Group to conduct a study aimed to assess the foreclosure rates among ADDI and HOME program downpayment assistance recipients. For each of the years, 2000 through 2005, the study design aims to produce a sample of homebuyers from the combined HOME and ADDI programs, in which each homebuyer has an equal chance of being selected. The sampling strategy is described below.

B1 Respondent Universe and Sampling Method

While the survey seeks information on homebuyers assisted by the ADDI and HOME programs, the respondent universe are the PJs that administer these programs. The respondent universe in each year from 2000 to 2005 consists of all PJs that assisted at least one homebuyer in that year and that were eligible to receive an allocation of ADDI funding in Fiscal Year 2004. PJs are eligible for ADDI funding if they have a total population of at least 150,000 and would receive an allocation of $50,000 or more based on the ADDI Allocation Formula. Fiscal Year 2004 had the largest allocation of funding for the ADDI program, so it is the year when the largest numbers of PJs were eligible for funding. The total universe of PJs in the respondent universe ranges from a low of 302 in 2000 to a high of 371 in 2005.

The sampling approach was designed to minimize the number of PJs that were selected to provide information while also meeting goals related to the variance of the estimated foreclosure rate (described more below). To accomplish these goals the design uses a sample of 33 PJs in each of the 6 years, and separates the PJs into three groups according to the number of buyers assisted in the particular year:

• Group 1: Over 700 buyers;

• Group 2: From 51 to 700 buyers; and

• Group 3: 50 or fewer buyers.

PJs that belong to Group 1 are selected with certainty; each of them will be asked to provide information on a random sample of 50 buyers selected from its total list of assisted homebuyers for that year. From the PJs that belong to Group 2 a sample of PJs is selected with probability proportional to PJ size (PPS), where the measure of size is the number of buyers; as with Group 1, each of them will be asked to provide information on a random sample of 50 buyers selected from its total list of assisted homebuyers for that year. From among the PJs in Group 3 a simple random sample of PJs is selected, with each selected PJs asked to provide data on all the buyers that it assisted in that year. The number of PJs sampled in Groups 2 and 3 is proportional to the number of total PJs in these two groups. For example, if the PJs in Group 2 account for one third of the total PJs in Groups 2 and 3 in a given year, then one third of the sample PJs will be from Group 2 and two thirds will be from Group 3. In sampling PJs for Groups 2 and 3, PJs are first sorted by type of PJ (state, city, county, or consortium of local governments) and by region of the country to be sure the selected sample provides reasonable coverage in each of these dimensions. A systematic random sample is then drawn from these two groups for each year.

The resulting sample includes 129 PJs, including 92 that were sampled once, 22 that were sampled twice, 5 that were sampled 3 times, 6 that were sampled 4 times, 2 that were sampled 5 times, and 2 that were sampled in all 6 years. However, since the sample is limited to a maximum of 50 buyers per year, the largest number of buyers any one PJ will be asked to report on is 300. Most of the PJs sampled for 4 or more different years were states. In these cases PJs will be housing finance agencies that are expected to have much of the information available electronically. The total number of buyers sampled in each year ranges from 983 to 1,219.

The sample has been designed to provide an estimate of the foreclosure rate with a standard error of 1 percentage point. In selecting the sample size, we have assumed that the foreclosure rate in the HOME program is 5 percent. This is a conservative estimate of the foreclosure rate based on findings from an earlier study of the HOME program.³ If a simple random sample of assisted homebuyers in the HOME and ADDI programs were selected, we would need a sample size of 475 buyers to achieve this level of accuracy. However, the sample sizes must be increased to account for both non-response and the sample design. We have assumed a 90 percent response rate based on our experience in previous surveys of PJs to collect additional data on HOME program operations in which we have achieved response rates above 90 percent. The sample size also has to be increased to account for the fact that the sample of buyers is clustered within a sample of PJs. Even after taking into account these factors, the sample sizes for each year are more than sufficient to achieve the desired level of accuracy of the estimates. For example, in accounting for both non-response and the clustering of the sample, the effective sample size for the year 2000 is 587, which is much larger than the sample of 475 that is needed to achieve a standard error of 1 percentage point. Thus, we can have a higher non-response rate or greater degree of clustering in the results for assisted homebuyers within a PJ and still achieve the desired level of accuracy.

Finally, the sample sizes have also been increased to account for the sample design

B2 Information Collection Procedures

The research team will contact all PJs by email using the contact information on HUD’s website for HOME program contacts (ADDI programs are managed by the same personnel). The initial contact will introduce the project using the letters from HUD and Concentrance. Attached to the email will be the two survey instruments:

Questionnaire on General ADDI/HOME Program Characteristics (in Microsoft Word the contents of which are shown in Appendix B)

Data Verification and Collection of ADDI/HOME Program Participants (in Microsoft Excel the contents of which are shown in Appendix A)

The two instruments have been designed to be self-explanatory; however, the research team will have staff available to assist PJs with questions. PJs vary in size and technological sophistication and we expect some to be capable of creating data extracts from their database systems. The research team will encourage any such time-saving methods of data collection and transmission and will be accommodating of PJs’ technical requirements.

Upon receipt of the data, the research team will examine the responses for completeness and face validity. When there are questions the team will follow up with the PJ by email and telephone.

B3 Maximizing Response Rates

Data collection will take place over a twelve week period. The research team will maintain a record of all PJs surveyed. That record will include whether the PJ has responded to the survey, whether that response was complete, and whether the PJ was working with the team in developing its response. One week after the initial email distribution of the survey the research team will send a follow-up email with the letters and survey instruments to those PJs that had not responded. After another week, those PJs that have not responded will be contacted by telephone and will be encouraged to respond. We will continue to contact those PJs that have not responded to the survey over the remaining weeks of the data collection period. In addition, research team members will offer assistance to PJs in the development and transmission of their responses.

As participants in the ADDI and HOME programs, respondents will have an incentive to participate in this survey to help learn about program outcomes and help build Congressional support for the program. In previous studies of the HOME program, we have achieved very high response rates from PJs to requests for information about program characteristics and updating data on individual households assisted.

B4 Tests of Procedures or Methods

Initial design of the data collection process was informed by two efforts. First we consulted a previous study performed by one of HUD’s contractors to obtain essentially the same information from a sample of PJs.⁴ Second we conducted exploratory phone calls with a small sample of PJs to inquire about the nature of information maintained in their files and the degree of effort that would be required to gather this information. The specific data collection instruments will be pre-tested during June and July 2007 to refine the instruments to improve respondents’ ability to provide the requested information.

B5 Statistical Consultation and Information Collection Agents

HUD has contracted with Concentrance Consulting Group Inc. and Abt Associates Inc. to design and conduct the data collection for this study. The data collection procedure will be similar to that used by these firms in other efforts to collect data on homebuyers from PJs and lenders. The sampling plan was developed by Dr. David Hoaglin, Statistician, of Abt Associates Inc.

Appendix A:
Data Verification and Collection of ADDI/HOME Program Participants

Public Reporting Burden Statement. Public reporting burden for this two-part collection of information is estimated to average a total of 12 hours for each Participating Jurisdiction in this study. This includes the time for locating files, collecting the files, reviewing the files and reporting the data. This information is being collected for the U.S. Department of Housing and Urban Development and will be used to study the impact of downpayment assistance on mortgage delinquency and foreclosure rates in the ADDI and HOME Programs. Response to this request is voluntary. You should not undertake the requested data collection unless this data collection instrument displays a currently valid OMB control number.

Privacy Act Statements.

HUD is authorized to collect this information by P.L. 479.48, Stat.1246, 12 USC 1701 et. seq.: and the Community Development Act of 1987, 42 USC 3543. The information will be used to establish the rates of mortgage delinquency and foreclosure for recipients of downpayment assistance through ADDI and HOME, i.e., will be used to calculate aggregate statistics. Information on individual recipients of assistance from ADDI and HOME will not be disclosed outside the U.S. Department of Housing and Urban Development except as required and permitted by law.

Pursuant to the Privacy Act of 1974 (5 U.S.C. §552a) and the Principles for Providing and Using Personal Information, issued by the Information Infrastructure Task Force in 1995, Concentrance Consulting Group hereby acknowledges that we will acquire and keep only that personal information reasonably expected to support current or planned activities. All information requested herein will be acquired, disclosed, and used in ways that respect an individual's privacy. Personal information will not be improperly altered or destroyed, and will be used only for the purpose for which it is requested. Information acquired for this activity will not be used for any other unrelated activities.

We have instituted appropriate technical and managerial security measures to protect the confidentiality and integrity of this personal information, and to prevent the loss, unauthorized access, destruction, use, or disclosure of the data. Managerial measures include internal organizational measures that limit access to data and ensure that those individuals with access do not utilize the data for unauthorized purposes. Technical security measures to prevent unauthorized access include limits on access through use of passwords and the storage of data on secure servers.

Our analysis and reporting will be based on aggregation of the information and so we will not disclose any individual client’s information nor any particular participating jurisdiction’s information.

Data Verification and Collection Instrument

For Section A below: please verify the data on buyers you assisted through the ADDI/HOME programs. If any data is incorrect please correct in the space provided. For Sections B and C: please supply the data requested.

Appendix B

Questionnaire on General Characteristics of ADDI/HOME Programs

Public Reporting Burden Statement. Public reporting burden for this two-part collection of information is estimated to average a total of 12 hours for each Participating Jurisdiction in this study. This includes the time for locating files, collecting the files, reviewing the files and reporting the data. This information is being collected for the U.S. Department of Housing and Urban Development and will be used to study the impact of downpayment assistance on mortgage delinquency and foreclosure rates in the ADDI and HOME Programs. Response to this request is voluntary. You should not undertake the requested data collection unless this data collection instrument displays a currently valid OMB control number.

Privacy Act Statements.

HUD is authorized to collect this information by P.L. 479.48, Stat.1246, 12 USC 1701 et. seq.: and the Community Development Act of 1987, 42 USC 3543.The information will be used to establish the rates of mortgage delinquency and foreclosure for recipients of downpayment assistance through ADDI and HOME, i.e., will be used to calculate aggregate statistics. Information on individual recipients of assistance from ADDI and HOME will not be disclosed outside the U.S. Department of Housing and Urban Development except as required and permitted by law.

Pursuant to the Privacy Act of 1974 (5 U.S.C. §552a) and the Principles for Providing and Using Personal Information, issued by the Information Infrastructure Task Force in 1995, Concentrance Consulting Group hereby acknowledges that we will acquire and keep only that personal information reasonably expected to support current or planned activities. All information requested herein will be acquired, disclosed, and used in ways that respect an individual's privacy. Personal information will not be improperly altered or destroyed, and will be used only for the purpose for which it is requested. Information acquired for this activity will not be used for any other unrelated activities.

We have instituted appropriate technical and managerial security measures to protect the confidentiality and integrity of this personal information, and to prevent the loss, unauthorized access, destruction, use, or disclosure of the data. Managerial measures include internal organizational measures that limit access to data and ensure that those individuals with access do not utilize the data for unauthorized purposes. Technical security measures to prevent unauthorized access include limits on access through use of passwords and the storage of data on secure servers.

Our analysis and reporting will be based on aggregation of the information and so we will not disclose any individual client’s information nor any particular participating jurisdiction’s information.

Appendix B

Questionnaire on General Characteristics of ADDI/HOME Programs

Public Reporting Burden Statement. Public reporting burden for this two-part collection of information is estimated to average a total of 12 hours for each Participating Jurisdiction in this study. This includes the time for locating files, collecting the files, reviewing the files and reporting the data. This information is being collected for the U.S. Department of Housing and Urban Development and will be used to study the impact of downpayment assistance on mortgage delinquency and foreclosure rates in the ADDI and HOME Programs. Response to this request is voluntary. You should not undertake the requested data collection unless this data collection instrument displays a currently valid OMB control number.

Privacy Act Statements.

HUD is authorized to collect this information by P.L. 479.48, Stat.1246, 12 USC 1701 et. seq.: and the Community Development Act of 1987, 42 USC 3543.. The information will be used to establish the rates of mortgage delinquency and foreclosure for recipients of downpayment assistance through ADDI and HOME, i.e., will be used to calculate aggregate statistics. Information on individual recipients of assistance from ADDI and HOME will not be disclosed outside the U.S. Department of Housing and Urban Development except as required and permitted by law.

Pursuant to the Privacy Act of 1974 (5 U.S.C. §552a) and the Principles for Providing and Using Personal Information, issued by the Information Infrastructure Task Force in 1995, Concentrance Consulting Group hereby acknowledges that we will acquire and keep only that personal information reasonably expected to support current or planned activities. All information requested herein will be acquired, disclosed, and used in ways that respect an individual's privacy. Personal information will not be improperly altered or destroyed, and will be used only for the purpose for which it is requested. Information acquired for this activity will not be used for any other unrelated activities.

We have instituted appropriate technical and managerial security measures to protect the confidentiality and integrity of this personal information, and to prevent the loss, unauthorized access, destruction, use, or disclosure of the data. Managerial measures include internal organizational measures that limit access to data and ensure that those individuals with access do not utilize the data for unauthorized purposes. Technical security measures to prevent unauthorized access include limits on access through use of passwords and the storage of data on secure servers.

Our analysis and reporting will be based on aggregation of the information and so we will not disclose any individual client’s information nor any particular participating jurisdiction’s information.

Program Characteristics Questionnaire

Please answer the following questions about your downpayment assistance program as it was administered in the years for which you are being surveyed.

General
Participating Jurisdiction Name
Contact Person
Date

Please respond only for the years for which you are being surveyed.

	Circle the appropriate response(s).
Homeownership education and counseling	2000	2001	2002	2003	2004	2005
1. Did recipients of ADDI/HOME funds receive homeownership counseling?	Yes / No	Yes / No	Yes / No	Yes / No	Yes / No	Yes / No
If you answered ‘No’ to Question 1 then skip to Question 6. Otherwise please answer the following:
2. What percent of recipients of ADDI/HOME funds received homeownership counseling?	up to 25% 26-50% 61-75% 76-100%	up to 25% 26-50% 61-75% 76-100%	up to 25% 26-50% 61-75% 76-100%	up to 25% 26-50% 61-75% 76-100%	up to 25% 26-50% 61-75% 76-100%	up to 25% 26-50% 61-75% 76-100%
3. Of those recipients that received counseling, how many hours did they receive?	< 2 2 or 3 4 - 7 8 – 12 > 12	< 2 2 or 3 4 - 7 8 – 12 > 12	< 2 2 or 3 4 - 7 8 – 12 > 12	< 2 2 or 3 4 - 7 8 – 12 > 12	< 2 2 or 3 4 - 7 8 – 12 > 12	< 2 2 or 3 4 - 7 8 – 12 > 12
4. Approximately what percentage of recipients counseled received the following types of counseling:
4a. Pre-purchase Homebuyer Counseling (one on one)	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%
4b. Homebuyer Education Programs (group setting)	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%
4c. Counseling to Resolve or Prevent Mortgage Delinquency or Default	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%
4d. Non-Delinquency Post-Purchase Counseling – Individual	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%
4e. Post-Purchase Education Programs (group)	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%
4f. Counseling on avoiding Predatory Lending	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%	0% up to 25% 26-50% 61-75% 76-100%

Eligibility Criteria	2000	2001	2002	2003	2004	2005
5. What maximum percent of median income (using any appropriate HUD-approved adjustments) did your agency require for ADDI/HOME programs?	80% max 60% max 50% max 30% max	80% max 60% max 50% max 30% max	80% max 60% max 50% max 30% max	80% max 60% max 50% max 30% max	80% max 60% max 50% max 30% max	80% max 60% max 50% max 30% max
6. Did you have eligibility requirements in addition to those specified by ADDI/HOME programs?	Yes / No	Yes / No	Yes / No	Yes / No	Yes / No	Yes / No
6a. If so describe those additional requirements. Identify any differences by year.
7. How did you verify recipient qualifications? Identify any differences by year.	Tax return Employer verification Pay stubs Other	Tax return Employer verification Pay stubs Other	Tax return Employer verification Pay stubs Other	Tax return Employer verification Pay stubs Other	Tax return Employer verification Pay stubs Other	Tax return Employer verification Pay stubs Other
8. Were FICO scores used in determining eligibility?	Yes / No	Yes / No	Yes / No	Yes / No	Yes / No	Yes / No
8a. If so what was the minimum FICO score required?

	Circle appropriate response(s).
Provisions for Buyer Protection	2000	2001	2002	2003	2004	2005
9. How often did you check that the value of the property acquired by the recipient was reasonable (for example by reviewing the appraisal)?	Never Rarely Sometimes Usually Always	Never Rarely Sometimes Usually Always	Never Rarely Sometimes Usually Always	Never Rarely Sometimes Usually Always	Never Rarely Sometimes Usually Always	Never Rarely Sometimes Usually Always
10. Within how many days of settlement did you inspect the property to ensure that it met the HOME property standards?	10 days before 30 days before After Settlement	10 days before 30 days before After Settlement	10 days before 30 days before After Settlement	10 days before 30 days before After Settlement	10 days before 30 days before After Settlement	10 days before 30 days before After Settlement
11. As a percent of gross income, what was the maximum monthly housing payment (principal, interest, taxes and insurance) that recipients could incur?	36% or higher 30-35% 29%	36% or higher 30-35% 29%	36% or higher 30-35% 29%	36% or higher 30-35% 29%	36% or higher 30-35% 29%	36% or higher 30-35% 29%
12. What was the maximum monthly total debt as a percent of gross income that recipients could incur?	47% or higher 42-46% 41%	47% or higher 42-46% 41%	47% or higher 42-46% 41%	47% or higher 42-46% 41%	47% or higher 42-46% 41%	47% or higher 42-46% 41%
13. How did you monitor that the recipient’s loan interest rates were not excessive given the client’s risk profile? (Circle one for each year surveyed.)	Didn’t monitor Local lender Published rates Relied on loan officer	Didn’t monitor Local lender Published rates Relied on loan officer	Didn’t monitor Local lender Published rates Relied on loan officer	Didn’t monitor Local lender Published rates Relied on loan officer	Didn’t monitor Local lender Published rates Relied on loan officer	Didn’t monitor Local lender Published rates Relied on loan officer
14. Identify any other services you offered or measures you took to protect recipients from excessive property prices or excessive loan interest rates.
15. Generally, were you informed when a borrower became seriously delinquent or at risk of foreclosure?	Yes / No	Yes / No	Yes / No	Yes / No	Yes / No	Yes / No
16. If Yes to 15, what interventions did you undertake when a borrower became delinquent or at risk of foreclosure?	Offered counseling Identified sources of financial assistance Provided financial assistance Facilitated borrower communication with servicer Other (Describe)_______________________________________________________________ __________________________________________________________________________________________________________________________________________________________

1 The Affordability Period is a period of time (5, 10, or 15 years, depending on the amount of downpayment assistance) under which the purchased unit must remain available as affordable housing.

2 This lien is to ensure homebuyer compliance with the downpayment assistance program. The lien is used to recover downpayment assistance funds if the homebuyer fails to comply with provisions of the program, specifically, the Affordability Period.

3 Study of Homebuyer Activity Through the HOME Investment Partnerships Program, U.S. Department of Housing and Urban Development, January, 2004

4 Study of Homebuyer Activity Through the HOME Investment Partnerships Program, U.S. Department of Housing and Urban Development, January, 2004

2