Transcript Neighborhood Stabilization Program

Neighborhood
Stabilization Program
Redevelopment of Abandoned and Foreclosed Homes
Presentation Outline
• Background
• Program Requirements
• Preliminary Program Design
• Accountability
• Next Steps
• Foreclosure Prevention Resources
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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
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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
homes financed by
sub-prime mortgages
– Number and percent of
homes in default
or delinquencies
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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
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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
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Presentation Outline
• Background
• Program Requirements
• Preliminary Program Design
• Accountability
• Next Steps
• Foreclosure Prevention Resources
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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
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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
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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
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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)
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Presentation Outline
• Background
• Program Requirements
• Preliminary Program Design
• Accountability
• Next Steps
• Foreclosure Prevention Resources
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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
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Preliminary Program Design
Selection Criteria for Nonprofit Housing
Development Agencies:
• Public Purpose Mission
• Housing Development/Rehabilitation Experience
• Agency Capacity
• Financial Stability
• Accountability
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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
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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
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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
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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
564
561
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Presentation Outline
• Background
• Program Requirements
• Preliminary Program Design
• Accountability
• Next Steps
• Foreclosure Prevention Resources
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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
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Presentation Outline
• Background
• Program Requirements
• Preliminary Program Design
• Accountability
• Next Steps
• Foreclosure Prevention Resources
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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
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Presentation Outline
• Background
• Program Requirements
• Preliminary Program Design
• Accountability
• Next Steps
• Foreclosure Prevention Resources
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Foreclosure Prevention
Resources
For mortgage default counseling:
Acorn Housing
Consumer Credit
Counseling Services
Central Florida HANDS
407-254-5974
1-800-741-7040
407-447-5686
Orange County
Housing & Community Development Division
Web Site Address:
www.OrangeCountyFL.net/housing
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Neighborhood
Stabilization Program
Redevelopment of Abandoned and Foreclosed Homes