Step Forward Michigan Helping Michigan Homeowners And Michigan

Step Forward Michigan Helping Michigan Homeowners And Michigan Communities

PROGRAM SUMMARY The Hardest Hit Fund (HHF) was established by the U. S. Department of the Treasury through the Emergency Economic Stabilization Act of 2008 (EESA) and is part of the Troubled Asset Relief Program (TARP). Michigan was one of 18 states identified as ‘Hardest Hit’ by the economic downturn that began in 2007. Michigan has received over $761 million since 2010 to operate its Hardest Hit Fund programs with a focus on foreclosure prevention and neighborhood stabilization. The Michigan Homeowner Assistance Nonprofit Housing Corporation (MHA) was created in 2010 by the Michigan State Housing Development Authority (MSHDA) to design and oversee the distribution of the Hardest Hit Funds in Michigan.

PROGRAM SUMMARY The MHA in collaboration with MSHDA has created programs to focus on foreclosure prevention and neighborhood stabilization. Homeowner Assistance Programs The Step Forward Michigan (SFM) began providing loans in July of 2010 to assist Michigan homeowners struggling with their mortgage to stay in their home. In 2013, the program was expanded to assist with reverse mortgages, property taxes, and condominium association fees. Blight Elimination Program The Blight Elimination Program (BEP) was added in August of 2013 to assist Michigan cities with high vacancy rates to address blighted residential properties. This program works directly with local leaders to identify and demolish dilapidated abandoned homes.

Program Allocations to date:

Why did we utilize HHF for blight elimination? • There is a direct correlation between Foreclosure and Blight. • Stabilize housing markets • Goal is to lift up homeowners, neighborhoods and ultimately improve the tax base of the city and/or surrounding county.

Blight Elimination Program BEP can provide up to a $25, 000 interest free Hardest Hit Fund loan, with no monthly payments, to help with the acquisition, demolition, and greening of a blighted residential property. There are 20 cities participating in this program throughout Michigan, each was identified as having the highest vacancy rates in the State. Partners identified by the city manage the property selection and demolition work. The Hardest Hit Fund loan is forgivable at 20% each year, but can be forgiven earlier if the property is sold or surrendered for a use deemed beneficial for the neighborhood.

Blight Elimination Program UPDATED PROGRAM DATA: As of August 31, 2017 over 12, 788 units have been demolished using HHF BEP program. We have committed $98, 970, 000 million of the $381. 1 million allocation and disbursed over $197, 953, 031 million. City Flint Ironwood Lansing Adrian Muskegon Pontiac Saginaw Port Huron Detroit Grand Rapids Jackson Ecorse River Rouge Melvindale Inkster Highland Park Hamtramck Calhoun Structures Demolished 2, 269 27 252 13 164 185 851 44 8, 109 120 244 118 68 0 85 198 11 0 Dollars Spent 29, 772, 023 522, 003 3, 785, 986 239, 053 1, 824, 597 2, 869, 908 11, 314, 282 957, 096 129, 490, 815 2, 413, 407 5, 412, 931 1, 834, 993 345, 349 0 1, 604, 103 4, 126, 122 240, 717 0

Step Forward Michigan SFM can provide up to a $30, 000 interest free Hardest Hit Fund loan, with no monthly payments, to help a homeowner with their mortgage, property taxes or condominium association fees. Loan proceeds are paid directly to the Participating Partners. The list of Participating Partners is maintained on the program website. The Hardest Hit Fund loan is forgivable at 20% each year, as long as the property remains the homeowners primary residence.

Step Forward Michigan Loan Rescue – Designed to reinstate a delinquent amount that was caused by an eligible hardships event. UPDATED PROGRAM DATA: As of September 1, 2017, Step Forward Michigan has provided 34, 932 interest free loans to help Michigan homeowners. Of the $310 million program allocation $275 million has been disbursed an additional $3 million is currently committed to loans in the closing process. The program has recycled $50. 7 million in repayments and payoffs into the program. Total property tax assistance provided exceeds $93 million and payments toward mortgages exceed $214. 9 million.

Step Forward Michigan – Our work is not done! Ongoing Homeowner Assistance Needs…. March 2016 SFM survey response from 10 largest counties indicates: 39, 857 residential property owners in property tax foreclosure 149, 509 in forfeiture (one year away from foreclosure) for property taxes. Michigan Radio - Feb. 2, 2016 reports: In 2015 “foreclosures last year dropped 22. 6% from 2014” nationwide. In Michigan “the state saw only a 7% drop in completed foreclosure from 2014 to 2015”

Step Forward Michigan plans going forward • Expiration of program 12/31/2020 • Continue to look at creative ways to assist homeowners and cities

Step Forward Michigan Homeowners apply at www. Step. Forward. Michigan. org to begin the loan application process. The SFM Call Center is available at 866 -946 -7432 to assist homeowners with questions and help those without computer access complete and print the application form. Homeowners may also seek assistance through an approved MSHDA Housing Counseling Agency. A list of housing educators can be found at www. Michigan. gov/mshda under Homeownership.