Transcript New York State HALT Task Force (“Halt Abusive Lending Transactions”) 1. Since 2007, the Governor’s HALT Task Force has led the coordination of foreclosure.

New York State HALT Task Force (“Halt Abusive Lending
Transactions”)
1.
Since 2007, the Governor’s HALT Task Force has led the coordination of
foreclosure and prevention efforts in response to the foreclosure and
subprime crisis in New York State, including:
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·
June 2008 passage of subprime legislation instituting changes to the
foreclosure legal process (e.g., 90 day lender notice before initiating
foreclosure proceedings);
•
·
$25 million in awards from DHCR to nonprofit homebuyer counseling
services;
•
·
$2 million grant program by the NY State Department of Banking for
consumer credit counseling and legal services;
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·
NYHOMES issuance of $2.56 million in grants to provide counseling and
legal assistance to homeowners at risk of foreclosure;
•
·
NYHOMES administering of $54.5 million in first round federal NSP
funds, with plans to apply to HUD for second round of NSP
New York State 1st Round NSP Awards – HUD Requirements
1.
A AREAS OF GREATEST NEED (measured by HUD Estimated Foreclosure Abandonment Risk Score of
8-10)
\
Priority given to Counties evidencing:

Greatest percentage of home foreclosures;

Highest percentage of homes financed with subprime mortgages; and
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Greatest likelihood of facing an increase in foreclosures.
2.
A AFFORDABILITY TO LOW, MODERATE, AND MIDDLE INCOME RESIDENTS (measured at or below
120% AMI)

At least 25% of NSP funds awarded must be targeted to low-income households with incomes
at or below 50% of AMI.
3.
PURCHASE PRICE DISCOUNTS
Prices paid by grantees for foreclosed or abandoned homes must be at least 5% below the
current market appraised value for individual properties, and 15% below current market appraised value for
bulk purchases.
4.
E EXTENDED AFFORDABILITY
Pr Projects will provide extended affordability to homebuyers or, as applicable, renters, based at a
minimum on HOME affordability rules;
5.
HOMEBUYER COUNSELING
F Grantees must provide pre-purchase homeowner counseling for end-buyers;
6.
ENVIRONMENTAL COMPLIANCE
Projects to comply with federal environmental review requirements;
7.
DAVIS-BACON COMPLIANCE
New York State 1st Round NSP Awards – Other Key Criteria
•Proposals reflect a focused strategy to achieve effective neighborhood
stabilization;
•Applicants demonstrate appropriate levels of administrative,
organizational, and financial capacity, and relevant real estate development
experience to execute and monitor projects;
•Applicants have prior experience in managing federal CDBG and/or HOME
programs;
•Proposals achieve maximum potential leverage with other funding
sources;
•Other criteria including but not limited to: minimizing of displacement;
promotion of long-term sustainability through “green” building practices or
retrofits; provision for supportive housing; project readiness
New York State 1st Round NSP Awards – USE OF FUNDS
% Total
Grant $
A - Financing Mechanisms (Loan Loss Reserves, Homebuyer
Assistance and Subsidies) for Acquisition and Rehab of Foreclosed
5%
Homes and Residential Properties
B - Acquisition and Rehab of Foreclosed and Abandoned Homes
and Residential Properties
79%
C - Land Banking of Foreclosed Homes
1%
D - Demolition of Blighted Structures
3%
E - Redevelopment of Demolished or Vacant Properties
(Generally New Construction Only)
12%
NY State 1st Round NSP Awards – EXAMPLES BY USE OF FUNDS
F Financing Mechanisms – City of Rochester: approximately $1.6 million for a loss reserve to
leverage $14,000,000 in construction financing from private lenders. Hudson River Housing, Inc.
(Dutchess County): $270,000 to fund homebuyer downpayment assistance and subsidize home
purchases.
B. Acquisition and Rehabilitation – CDC of Long Island (with Suffolk County): $3.2 million to
purchase and rehab up to 25 single family homes for low-income renters; City of Albany:
$1,128,350 toward the purchase and rehab of 10 abandoned homes for homeowner occupancy;
$3,796,425 for the purchase and rehab of 17 abandoned multi-family homes, containing 47 units,
for eventual rental to low-income households
C. Land Banking of Foreclosed Homes - Town of Tonawanda: $250,000 for the purchase of 6
foreclosed and abandoned homes containing 14 units, the sites of which to be held for future
development of new affordable homebuyer units.
D. Demolition of Blighted Structures – City of Niagara Falls: $250,000 towards a larger targeted
demolition program to assemble sites for a planned homebuyer and rental development;
E. Redevelopment of Vacant or Demolished Properties – City of Schenectady (with Better
Neighborhoods, Inc.): $935,000 to construct 10 new single-family affordable homes with universal
design and green building technologies; Cypress Hills LDC (Brooklyn): $1.6 million to construct 29
new low- to moderate-income condominiums.