Neighborhood Stabilization Program Redevelopment of Abandoned and Foreclosed Homes

1. Neighborhood Stabilization ProgramRedevelopment of Abandoned and Foreclosed Homes

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

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

4. 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

5. 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

6. 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

7. 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

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

9. 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

10. Program Requirements Significant elements of the NSP plan • 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 • Describe how the use of funds will be targeted to areas of greatest need • Describe the activities to be under taken

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

12. 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)

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

14. 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

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

16. 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

17. 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

18. 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

20. Preliminary Program Design Foreclosure Trends 2006-2008 (Top 12 Areas)

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

22. 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

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

24. Next Steps

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

26. 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.OrangeCountyFL.net/housing

27. Neighborhood Stabilization ProgramRedevelopment of Abandoned and Foreclosed Homes