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Dean J. Christon Executive Director

Dean J. Christon Executive Director. New Hampshire Housing Finance Authority. Established by State Legislature under RSA 204-C Independent Self Sustaining p ublic corporation An “Instrumentality of the State” not a department Mission

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Dean J. Christon Executive Director

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  1. Dean J. Christon Executive Director

  2. New Hampshire Housing Finance Authority • Established by State Legislature under RSA 204-C • Independent Self Sustaining public corporation • An “Instrumentality of the State” not a department • Mission • To help create housing which is affordable to low and moderate income people • Continuum of Services from Rental Assistance for very low income households to Home Ownership Programs for low to moderate income households • NH Housing does not oversee local housing authorities • But, not your usual state housing finance agency

  3. New Hampshire Housing Programs • Home Ownership • Single Family Mortgages • 700 -1000 loans/year: $120 Million year • Total: 39,200 Mortgages or $3.4 Billion • Multi-Family Housing Development • 300+ units financed/year • Total: 14,200 units • NH Housing finances multi-family housing construction, it does not develop or own housing. • NH Housing depends on developers to find opportunities to build or rehabilitate housing. • For Profit and Non-profit • Multi-Family Compliance • Oversee 15,000 units on behalf of HUD, IRS and ourselves

  4. New Hampshire Housing Programs • Tenant Assistance • 3,000+ units of Tenant Based rental assistance • 5,000+ units of Project Based rental assistance • Service Coordination/Self Sufficiency • Housing Research/Planning/Technical Assistance/ Grant Administration www.nhhfa.org www.GoNewHampshireHousing.com

  5. Healthy Homes and New Hampshire Housing Long history of making homes safe RSA 204-C Declaration of findings and necessity • “The development of safe and sanitary dwellings for elderly persons and for persons of low income will have a beneficial effect upon the health, safety and welfare of the citizens of the state…”

  6. New Hampshire Housing Healthy Homes Commitment • Lead Paint Abatement • Single-Family Home Rehabilitation Program • Multi-Family Construction Standards • Asset Management/Property Standards • Supportive Service Programs

  7. New Hampshire Housing Healthy Homes Commitment • Lead Based Paint Hazard Abatement • Over 14 years of abatement activities • First Lead Grant in 1998 – 319 units abated • Helped to grow capacity in the state • Second in 2008 – 369 units abated • Continued to provide training to inspectors and contractors • Third in 2012 – 200 units to be abated • Abatement as part of recapitalization of existing assisted housing (preservation projects) • 4,400 units in MF Preservation, Greener Homes, HOME Rehab and Mod-Rehab/Rent Rehab Programs

  8. New Hampshire Housing Lead Hazard Control Program 2008 Grant 746 People Trained in Lead Safe Work Practices 369 Lead Safe Housing Units Berlin 1 Unit(s) 1 to 4 Units 5 to 10 Units 11 to 20 Units More than 20 Units Tamworth 1 Unit(s) Rochester Laconia 7 Unit(s) 9 Unit(s) Tilton Belmont 9 Unit(s) 1 Unit(s) Somersworth Franklin 1 Unit(s) Newport 14 Unit(s) Claremont 4 Unit(s) 2 Unit(s) Rollinsford Northfield 1 Unit(s) 5 Unit(s) Dover Concord 1 Unit(s) 17 Unit(s) N. Walpole 13 Unit(s) Portsmouth Allenstown 99 Unit(s) Deering 5 Unit(s) 1 Unit(s) Walpole 13 Unit(s) Bennington Newmarket 1 Unit(s) 2 Unit(s) Raymond New Boston 1 Unit(s) Exeter 2 Unit(s) 1 Unit(s) Plaistow Salem 4 Unit(s) Temple 1 Unit(s) Hinsdale 7 Unit(s) 13 Unit(s) Manchester Milford 98 Unit(s) 11 Unit(s)

  9. New Hampshire Housing Healthy Homes Commitment • Single-Family Rehabilitation • Over 15 years of rehabilitation • Addressed health and safety issues in 712 homes ($18.6 M) • Used Federal HOME Investment Partnership dollars • Shrinking resource

  10. New Hampshire Housing Healthy Homes Commitment • Multi-Family Finance • Quality Construction Standards • Good quality heating/insulation and ventilation (less mold, radiation, VOCs) • Leader in discouraging carpeting (dust and mold, VOCs) and encouraging smoke free buildings

  11. New Hampshire Housing Healthy Homes Commitment • Asset Management/Property Standards • Annual/Regular Inspections • 20,000 units • Lead • Mold • Life Safety

  12. New Hampshire Housing Healthy Homes Commitment • Supportive Service Programs • With partners • REAP: Referral, Education, Assistance and Prevention Program • Sponsorship of Resident Service Coordinators • Elderly • Family • Help owners recognize that the health of clients is critical to the success of housing programs

  13. Do housing markets affect health? • Health is affected by property condition. • Housing is a commodity. • Property condition is affected by investment decisions. • Capital investment and maintenance • Owner occupied and renter occupied

  14. Do housing markets affect health? • The cost of housing drives household decisions. • Distance to work • Doubling up • Discretionary expenditures • Quality food • Heat source • Education • What happens when a households largest investment looses its value?

  15. Housing Market Conditions

  16. Homeownership Market Peak Sales 2,561 August Sales 1,581 A significant (40% +/-) decline in sales volume. The effect of the Federal tax credit. Cumulative sales for 2012 from January through August are now nearly 20% ahead of sales volume during the same period in 2011.

  17. Homeownership Market Peak Inventory 17 mos. August Sales 1,581 13.9 months A slight improvement in sales pace A slight improvement in Inventory

  18. Peak Sale Prices $254K to $258K August Median Price $204,000 Median MLS sale prices dropped by 20% since 2007. Monthly median MLS sale prices suggest prices are stabilizing. August median in 2012 is identical to the August median in 2011.

  19. Home Ownership • Prices have declined about 20% but seem to be stabilizing • Sales volume is low but improving • Inventory is high and includes distressed properties • It is a “Buyers Market”; but, • Affordability is still a problem • Especially for 1st time buyers • Tighter loan requirements • Buyers entering the market need an income well above the median for renter households • Buyers want confidence that their income is sustainable • High rents prevent savings for down payments

  20. Home Ownership • Foreclosures continue to have a negative affect • As prices drop more households are exposed to potential foreclosure. • If there is any disruption to income some households cannot sell for more than what they owe. Lower Prices More Foreclosures

  21. Foreclosures

  22. New Hampshire Foreclosures By Year 2005..……………………..462 2006…………………….1,057 2007…………………….2,071 2008…………………….3,563 2009…………………….3,467 2010…………………….3,953 2011………………….....3,863 Four Year Sum……….14,846 Average………….….3,712/yr.

  23. New Hampshire Foreclosures Average foreclosures per year………….….3,712 2010 Census New Hampshire Households 518,973 Owner Households 368,316 Owner Households with a Mortgage 266,988 0.7% or 1:140 Households 1.0% or 1:100 Owner Hh 1.4% or 1:72 Hh with Mtg.

  24. US .96% NH .83% NE .80% Foreclosure initiation rates have declined from their peaks, but are still at very elevated levels.

  25. New Hampshire Delinquency Rate

  26. Foreclosures are not only a problem of purchase mortgages. Between 2007 and 2011 54% of foreclosures were on refinances.

  27. 3,860 3,744 Projection 2,659 2,580 2012 foreclosures are projected to be 3% less than 2011.

  28. Foreclosure • Foreclosure activity continues to have a negative effect on the real estate market. • Delinquency/foreclosure rates are tied directly to unemployment/income loss. • There are indicators of improvement but the economy must continue to improve. • These households become renters : 15,000 from 2008 to 2011 + another 3,700 in 2012

  29. Rental Market

  30. NHHFA Residential Rental Cost Survey Rents are increasing again after several years of little change. The median 2-bedroom rent increased by 3.3% from 2011 to 2012

  31. NHHFA Residential Rental Cost Survey And the vacancy rate is down again, from 3.5% in 2011 to 3.2% in 2012 for 2-bedroom units.

  32. 2012 Residential Rental Cost Survey Preliminary Statewide Median Gross Rent for 2-Bedroom Units - $1,085 Rents are highest in the Southern Counties of the state, closest to the Boston labor market. Most of the rental units in the state (73%) are located in Hillsborough, Rockingham, Merrimack and Strafford Counties.

  33. Median Renter Income* = $35,965 * ACS 2010 5-year estimate

  34. Rental Market • Former owners are back in the rental market ( +/-18,000 in the last 5 years). • Vacancy rates have declined (3.2% this year). • Rents are increasing again (up 3.3% this year) after several years of little change. • Rental affordability remains a problemand saving for a down payment is harder. • Households with the lowest incomes are forced into the least desirable, and likely, least healthy units.

  35. Housing Market Summary • Home Ownership Market - recover slowly as long as there is stability in the economy, the mortgage industry and consumer confidence. • Foreclosures – indicators point toward an improving picture, but it depends on the economy and how many foreclosures remain in the system to be processed. • The Rental Market - continue to see an imbalance due to a short supply of quality units. Increasing rental costs as a result of high demand and lower vacancy rates. • Fewer renter households are able to save enough to move into ownership housing, despite reasonable interest rates and a surplus of discounted property for sale.

  36. New Hampshire Housing www.nhhfa.org www.GoNewHampshireHousing.com

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