Neighborhood Stabilization Program

1. Neighborhood Stabilization Program October 23, 2008

2. Need Impact Leveraging Readiness Capacity

3. Why We Are Here • Meet new partners • Introduce ourselves and State CDBG program • Communicate NSP requirements and program options • Learn about local conditions and existing local efforts

4. Why We Are Here • Identify stakeholders and tools needed for success • Identify stakeholders and tools in place or available • Identify tools DHCD, VHDA or others can provide

5. Brainstorm Ideas • State allocation Strategy • Performance • Neighborhood Impact • Leveraging • Property acquisition strategies • Financing & facilitation targeted home ownership

6. Virginia CDBG Program • Denise Ambrose Associate Director (804) 371-7029 • Chris Thompson Program Manager Project Development (804) 371-7056

7. Virginia CDBG Program • Joanne Peerman Program Manager Implementation (804) 371-7074 • Keith Sherrill Policy Analyst Project Development (804) 371-7055 • Community Representatives Monica Poole TBA

8. Background • Authorized under Title III of the Housing and Economic Recovery Act of 2008 • Targeted emergency assistance to state and local governments • Acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities

9. Funding • $3.92 billion to all states and particularly hard-hit areas • Virginia - $38.7 million • Fairfax County - $2.8 million • Prince William - $4.1 million • Need is based on number and percent of: • Home foreclosures in each State or unit of general local government • Homes financed by a subprime mortgage related loan in each State or UGLG • Homes in default or delinquency in each State or UGLG

10. Activities • Each activity must be CDBG eligible and meet a LMI national objective • Establish financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties • Purchase and rehabilitate homes and residential properties abandoned or foreclosed; new housing construction is eligible as redevelopment • Establish land banks for foreclosed homes • Demolish blighted structures • Redevelop demolished or vacant properties

11. Eligibility • All funds be used to benefit individuals at or below 120% of area median income • At least 25% of the funds must be used for individuals or families whose incomes do not exceed 50% of the area median income • Activities may not qualify using the "prevent or eliminate slums and blight" or "address urgent community development needs" objectives

12. Distribution • Must target funds to give priority emphasis and consideration to areas with greatest need including those: • With the greatest percentage of home foreclosures; • With the highest percentage of homes financed by a subprime mortgage related loan; and • Identified as likely to face a significant rise in the rate of home foreclosures • 18 months to use NSP funds • Defined as being obligated for eligible activities • Funds must be expended within 4 years

13. Additional Information • http://www.hud.gov/nsp

14. Investment Approach • Outcome Funding • Leveraging Resources • Performance based contracts • Output based administrative & delivery costs • Additional $$$$ for achievement of outcomes • Outcome oriented compliance monitoring

15. Stakeholder Involvement • Management team • Everyone needed or affected • Management Plan • Required contract document

16. We need to know • The areas of concentrated bank owned homes in your locality • Status of your identification of ownership and the condition of affected properties • Existing programs that you have in place or designed to address these properties • Property acquisition strategy

17. We need to know: • Banks or other partners that may provide financing which can be leveraged with NSP funding.  • Homeownership and special needs housing programs you operate, waiting lists for those programs, & plan to target to NSP areas. • Program elements you see the need for assistance or collaborative involvement by DHCD, VHDA or state or national non-profit partners.

18. Options / Alternatives / Issuesfor DHCD to consider • Eligible applicants • Prioritization of neighborhoods vis a vis localities • Percent of need met in neighborhoods • Property acquisition strategies • Finding eligible ownership candidates interested in targeted properties • Rentals versus Owner occupied

19. Options / Alternatives / Issues for DHCD to consider • 25% / 50% strategies • Role of non-profits • Role of private for profit • Size of grants • Planning grants • Pay for performance

20. Options / Alternatives / Issuesfor DHCD to consider • Measuring outcomes • Delivery costs • Financing partners • Clearance activities • Infrastructure / Vacant lots • Land banking criteria

21. Tentative Schedule - Draft • Late November Program Design Workshop • December 1 Action plan to HUD • Mid-January RFP issued • Late January How to apply workshop • March 1 Proposals due • 1st round NSP Implementation • Planning grants (?)

22. Tentative Schedule - Draft • Early-April Awards announced • May Contract negotiations and NSP contracts • July Round 2 RFP issued (?) July 2010 Performance window opens

23. Need Impact Leveraging Readiness Capacity