Neighborhood Stabilization Program NSP Orange County Florida Presentation

Neighborhood Stabilization Program (NSP) Orange County, Florida

Presentation Outline • Overview • Implementation Strategy • Challenges and Opportunities • Additional NSP Activities • Summary

Overview • Orange County is one of the top foreclosure markets in the nation. • Orange County was allocated $27. 9 million in NSP. • Grant agreements were executed with HUD on March 9, 2009.

Overview Orange County Residential Foreclosures

Overview

Presentation Outline • Overview • Implementation Strategy • Challenges and Opportunities • Additional NSP Activities • Summary

Implementation Strategy Internal NSP Team Housing and Community Development Division County Attorney’s Mitchell Glasser, Manager Office Frantz Dutes, Assistant Manager Real Estate Division Property Acquisition Purchasing Division Housing Marketing & Rehabilitation Qualifying Fisca l

Implementation Strategy External Partners • Orlando Regional Board of Realtors • Mortgage Brokers and Financial Institutions • Vendors: – Contractors and trades – Appraisers – Surveyors – Title Companies

Implementation Strategy External Partners • Progress Energy (Energy saving audits) • Fannie Mae (First Look process) • National Community Stabilization Trust (First look program)

Implementation Strategy Fannie Mae (First Look process) Fannie Mae, Homepath. com • “First Look” process for Governmental agencies and first time homebuyers • Daily alerts of available properties • 45 day closing • Escrow deposit waived

Implementation Strategy National Community Stabilization Trust First Look Program The Trust (Transfer) J. P. Morgan Chase (Seller) Wells Fargo (Seller) Bank of America (Seller) Orange County (Buyer)

Implementation Strategy Option A: County Initiated Acquisition • Orange County will hold title to all the acquired properties and coordinate the following: – Acquisition, repair and sale of NSP homes – Private companies provide needed services – Realtors assist with acquisition and sales

Implementation Strategy Option A: County Initiated Acquisition • Scope of repairs prepared by County inspectors • Rehabilitation work conducted by private companies • Energy audit results included in repair work • Inspections of rehab work conducted by County inspectors

Implementation Strategy Option A: County Initiated Acquisition • Interested buyer list • Buyers must be pre-qualified by lender prior to being added to the interested buyer list • Buyers must have a realtor represent them. • Available properties will be advertised on Orange County’s web site.

Implementation Strategy Option A: County Initiated Acquisition Buyer Incentives: • $20, 000 Moderate • $30, 000 Low • $35, 000 Very Low • Closing Cost paid by Orange County • Buyer contribution 1. 75% of contract price for FHA loans. • County note will be 15 year non-amortized note at 0% interest

Implementation Strategy Option B: Realtor Initiated Purchases Realtor Participation: • Identify suitable properties and buyers • Coordinate purchase of foreclosed homes for eligible buyers • Utilize NSP homebuyer assistance for homes in good condition • Utilize NSP homebuyer assistance with FHA 203 K program for homes needing repairs.

Implementation Strategy Option B: Realtor Initiated Purchases Buyer Incentives: • Up to $35, 000 homebuyer assistance to qualified buyers • Closing Cost paid by Orange County • Buyer contribution 1. 75% of contract price

Implementation Strategy Option B: Realtor Initiated Purchases • Applications processed expeditiously • Commitment letter issued by Orange County • Down payment assistance check made payable to buyer and the closing agent • $8, 000 Tax Credit may be used

NSP Properties § Identif y § Acquir e. Homebuyer § Rehab § Outreach § Qualify § Down Payment Assistance HOMEOWNERSHIP

Implementation Strategy Performance Properties acquired Option A 30 Properties acquired Option B 24 Properties under contract 11 Offers pending 12 Properties reviewed to date Expenditures Year to date TOTAL $4, 505, 993 400

Presentation Outline • Overview • Implementation Strategy • Challenges and Opportunities • Additional NSP Activities • Summary

Challenges and Opportunities Challenges: • A warmer housing market – Inventory of homes for sale has decreased in half to 8. 1 month supply – Number of homes sold in July 2009 up 45% from July 2008 – Investors are actively pursuing & buying foreclosed properties

Challenges and Opportunities: • Stabilization of neighborhoods • Job creation and retention • Support of green initiatives • Create permanent supportive housing for special need groups

Presentation Outline • Overview • Implementation Strategy • Challenges and Opportunities • Additional NSP Activities • Summary

Additional NSP Activities • Issued a multi-family RFP for NSP – $7. 0 million in NSP funds allocated – Acquisition and rehabilitation of foreclosed rental housing for very low income households

Additional NSP Activities Demolition of blighted structures Partnership with our Code Enforcement Division

Additional NSP Activities Created NSP Web Site

Presentation Outline • Overview • Implementation Strategy • Challenges and Opportunities • Additional NSP Activities • Summary

Summary • NSP organizational structure in place • Additional activities under way • Addressing challenges and meeting milestones • Potential expansion of the program through NSP II competitive grant

For More NSP Information: www. ocfl. net/housing