Arkansas Teacher Housing Development Foundation

Program Guidelines

High quality teachers are essential to successful student performance. Unfortunately, the exit of teachers from the profession and the movement of teachers to other schools deprive students of the value of being taught by effective and experienced teachers. While the rate of attrition is roughly fifty percent (50%) higher in poor schools than wealthier ones, teachers of all ages and in all kinds of schools leave the profession. So, it is critical that efforts be concentrated on retaining high quality teachers in every community at every level.

The Arkansas Teacher Housing Development Foundation (ATHDF) is offering housing incentives to assist in the recruitment and retention of quality teachers. The Housing Incentive Program provides housing assistance to eligible teachers. The program offers housing assistance in the form of forgivable loans and rental stipends. The program is supported by state funds that provide for the development of housing incentives for Arkansas teachers.

In October 2007, ATHDF will begin accepting applications for the initial awards. Applications will be accepted on an ongoing basis. Our initial goal is to provide awards to fifteen (15) to twenty (20) teachers. We anticipate leveraging over one hundred thousand dollars ($100,000) to meet our goal.

Types of Assistance
Through the Housing Incentive Program, qualifying teachers may apply for homeowner assistance or a rental stipend. Home ownership assistance is offered in the form of a forgivable loan in an amount up to ten percent (10%) of the purchase price for downpayment, closing costs, mortgage rate buy-down and other related costs. The loan is forgiven annually in equal parts in exchange for the teacher’s commitment to teach in a qualifying school district for five (5) consecutive years. The rental stipend program reimburses qualifying teachers for up to two thousand dollars ($2,000) of verifiable rental payments. The stipend is disbursed quarterly.

Eligiblility
To be eligible to apply for the housing incentive program, an individual must:

(1) Possess a valid Arkansas teaching license,

(2) Be currently employed (or anticipating employment) within a qualifying school district,

(3) Have three (3) or more years of classroom experience teaching the subject matter that will be taught in the qualifying school district, or

(4) Have completed less than three (3) years teaching but will complete three years before funds are disbursed, and

(5) Obtain housing no more than thirty (30) miles away from a qualifying school district

Teachers applying for homeownership assistance must meet additional requirements. A list of those requirements follows:

(1) The teacher must be able to secure a first mortgage with a cooperating lender.

(2) The purchased property must be the teacher’s primary residence.

(3) The purchase price of the property can not exceed one hundred thousand dollars ($100,000.00).

A teacher does not have to be a first time homebuyer to receive downpayment assistance, and there are no income restrictions. The assistance may be used for closing costs, downpayment, mortgage rate buy-down and other related costs. We encourage first time homebuyers to seek homeownership counseling. However, counseling is not a requirement to receive funds.

Teachers applying for the rental stipend must meet the following requirements:

(1) The teacher must have a valid rental/lease agreement during the academic year for which they are seeking the rental stipend.

(2) The leased property must be the teacher’s primary residence.

Eligibility will be verified by ATHDF staff and/or designated partners.

Application Process
At this time, applications may be obtained by contacting the ATHDF office. For full consideration, a teacher must submit a completed application and three completed recommendation forms. The recommendation forms must be completed by a current (or former) supervisor, principal, assistant principal, superintendent or any other school official with knowledge of the teacher’s classroom performance.

Applications will be reviewed and funds will be awarded on an ongoing basis. Awards will be made based on the availability of funds. Applications received for rental stipends after the school year has started will be considered for a prorated award amount.

Program Administration
The program will be administered by the ATHDF and/or its partners. The program shall be administered pursuant to existing rules and regulations, state law and board directives. A copy of the rules and regulations is available by contacting the ATHDF office.

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