Neighborhood Stabilization Program Redevelopment of Abandoned and Foreclosed

Neighborhood Stabilization Program Redevelopment of Abandoned and Foreclosed Homes

Presentation Outline • Background • Program Requirements • Preliminary Program Design • Accountability • Next Steps • Foreclosure Prevention Resources 2

Presentation Outline • Background • Program Requirements • Preliminary Program Design • Accountability • Next Steps • Foreclosure Prevention Resources 3

Background • Title III of the Housing and Economic Recovery Act of 2008 created the Neighborhood Stabilization Program (NSP) • Provides $3. 9 billion for states and local governments to respond to rising residential foreclosures and property abandonment • States and local governments will use this funding to acquire, redevelop and sell foreclosed properties 4

Background • Allocation of NSP funds were targeted to states and local jurisdictions of greatest need based on: – Number and percent of home foreclosures – Number and percent of financed by prime mortgages homes sub- – Number and percent of homes in default or delinquencies 5

Background Funding Allocation: • Orange County was allocated $27. 9 million • Second largest allocation in the state • 18 month deadline to commit or expend the funds 6

Background Eligible Activities: • Purchase and rehabilitation of foreclosed homes • Demolition of abandoned and blighted structures • Redevelopment of demolished or vacant properties • Provision of financing tools to assist with sale of home – Down payment assistance – Soft second mortgages 7

Presentation Outline • Background • Program Requirements • Preliminary Program Design • Accountability • Next Steps • Foreclosure Prevention Resources 8

Program Requirements • Neighborhood Stabilization Program funds are considered Community Development Block Grant (CDBG) funds • NSP funds are being treated as a special allocation of FY 2008 -2009 CDBG budget • Grantees must submit a substantial amendment to our FY 2008 -2009 CDBG Annual Action Plan 9

Program Requirements Significant elements of the NSP plan 1. Identify geographic areas of greatest need using: – Percentage of home foreclosures. – Percentage of home financed by sub-prime mortgages – Areas likely to face significant rise in rate of foreclosures 2. Describe how the use of funds will be targeted to areas of greatest need 3. Describe the activities to be under taken 10

Program Requirements Significant elements of the NSP plan (cont) 4. Identify bank owned properties within target areas 5. Purchases must be at a discount from the current appraised value – Minimum 5 percent for single purchases – Minimum 15 percent for bulk purchases 6. Sale of home shall be equal to or less than cost to acquire and rehabilitate 11

Program Requirements Income Requirements The program must serve families making up to 120% of the areas median income (AMI) (Example: $71, 040 for a family of four) Twenty five percent (25%) of the funds must serve families at or below 50% AMI (Example: $29, 600 for a family of four) 12

Presentation Outline • Background • Program Requirements • Preliminary Program Design • Accountability • Next Steps • Foreclosure Prevention Resources 13

Preliminary Program Design • Housing and Community Development Division will be lead agency • Realignment of key staff to implement the program – Draft the NSP plan – Develop internal policies and controls – Work with participating agencies and partners 14

Preliminary Program Design Selection Criteria for Nonprofit Housing Development Agencies: • Public Purpose Mission • Housing Development/Rehabilitation Experience • Agency Capacity • Financial Stability • Accountability 15

Preliminary Program Design Participating Agencies: • Nonprofit housing development agencies will be our principal partners in acquisition, rehab, and sale of homes – Orange County Housing Finance Authority – Housing and Neighborhood Development Services (HANDS) – Florida Community Partners – Orlando Neighborhood Improvement Corporation – Homes In Partnership – Habitat for Humanity 16

Preliminary Program Design Other Partners: • Realtors will assist with finding qualified buyers • The Lenders will provide the first mortgages • Contractors and sub-contractors will participate in the rehabilitation, redevelopment work • Housing counseling agencies will provide mandatory housing counseling • Other community organizations to assist in marketing the program 17

Preliminary Program Design Initial Planning: • Meeting with participating agencies • Working with other county divisions to research the impact of foreclosures • Identifying areas of greatest need 18

Preliminary Program Design Foreclosure Trends 2006 -2008 (Top 12 Areas) Zip Code 32824 32808 32828 32837 32835 32825 34787 32818 32822 32712 32811 32703 Community Taft / Meadow woods Pine Hills Waterford / Avalon Hunter's Creek / Southchase Metrowest Union Park/Rio Pinar Winter Garden / Horizon West Pine Hills Lee Vista Apopka Orlo Vista Apopka Activities 1145 997 872 842 751 710 706 705 702 594 561 20

Presentation Outline • Background • Program Requirements • Preliminary Program Design • Accountability • Next Steps • Foreclosure Prevention Resources 21

Accountability • Compliance with all Federal Regulations • Coordination with Orange County Comptroller’s Office • Monthly meetings with participating agencies • Quarterly reports to HUD • Interim reports to BCC 22

Presentation Outline • Background • Program Requirements • Preliminary Program Design • Accountability • Next Steps • Foreclosure Prevention Resources 23

Next Steps Timeline Date Action Orange County must amend its CDBG By December 1, 2008 Annual Action Plan On or about January 15, 2009 Execute grant agreement with HUD On or about July 15, 2010 Funds must be committed or expended On or about July 30, 2013 Program income returned to Treasury 24

Presentation Outline • Background • Program Requirements • Preliminary Program Design • Accountability • Next Steps • Foreclosure Prevention Resources 25

Foreclosure Prevention Resources For mortgage default counseling: Acorn Housing 407 -254 -5974 Consumer Credit Counseling Services 1 -800 -741 -7040 Central Florida HANDS 407 -447 -5686 Orange County Housing & Community Development Division Web Site Address: www. Orange. County. FL. net/housing 26

Neighborhood Stabilization Program Redevelopment of Abandoned and Foreclosed Homes