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Presentation Outline. Background NSP Plan Requirements Orange County NSP Plan NSP Implementation Strategies Timeline Action Requested. Presentation Outline. Background NSP Plan Requirements Orange County NSP Plan NSP Implementation Strategies Timeline Action Requested. Background.
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Presentation Outline • Background • NSP Plan Requirements • Orange County NSP Plan • NSP Implementation Strategies • Timeline • Action Requested
Presentation Outline • Background • NSP Plan Requirements • Orange County NSP Plan • NSP Implementation Strategies • Timeline • Action Requested
Background • The Housing and Economic Recovery Act of 2008 created the Neighborhood Stabilization Program (NSP) to respond to rising residential foreclosures and property abandonment. • The Act provides $3.9 billion for emergency assistance to states and local governments for redevelopment of abandoned and foreclosed homes. • Orange County was allocated $27.9 million.
Background • NSP funds are considered a special allocation under the Community Development Block Grant (CDBG) Program. • Grantees must submit a substantial amendment to their FY 2008-2009 CDBG Annual Action Plan to incorporate the NSP plan. • There is an 18-month timeline to commit or expend the funds.
Presentation Outline • Background • NSP Plan Requirements • Orange County NSP Plan • NSP Implementation Strategies • Timeline • Action Requested
NSP Plan Requirements • Identify geographic areas of greatest need using: • Number of home foreclosures • Number of homes financed by subprime mortgages • Areas likely to face a significant rise of foreclosures
NSP Plan Requirements 2. Describe the activities to be undertaken 3. Describe the use of funds 4. Establish acquisition and resale requirements • Minimum discounts to be used for purchases • Maximum sales price of homes
NSP Plan Requirements 5. Establish 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)
Presentation Outline • Background • NSP Plan Requirements • Orange County NSP Plan • NSP Implementation Strategies • Timeline • Action Requested
Orange County NSP Plan Identifying Areas of Greatest Need Source: Realty Trac, records from 2006-Sept. 30, 2008
Orange County NSP Plan Selected NSP Target Areas • Meadow Woods • Pine Hills • Azalea Park • Holden Heights/Oak Ridge • Union Park
Orange County NSP Plan Activities to be undertaken • Acquisition, rehabilitation and sale of homes that have been abandoned or foreclosed upon • Acquisition and rehabilitation of foreclosed properties for rental housing • Demolition of blighted properties • Redevelopment of demolished or vacant properties • Financial Mechanisms for homeownership activities
Presentation Outline • Background • NSP Plan Requirements • Orange County NSP Plan • NSP Implementation Strategies • Timeline • Action Requested
NSP Implementation Strategies • Housing and Community Development Division will be lead agency • Develop internal policies and controls • Delineate scope of work with participating agencies and organizations • Select primary partners (Non-profit housing development agencies)
NSP Implementation Strategies Selection Criteria for Nonprofit Housing Development Agencies: • Public Purpose Mission • Housing Development/Rehabilitation Experience • Agency Capacity • Financial Stability • Accountability • Agreements to be Approved by BCC
NSP Implementation Strategies Other Partners: • Realtors will assist with finding qualified buyers • Lenders will provide first mortgages • Contractors and sub-contractors will participate in the rehabilitation, redevelopment work • Housing counseling agencies will provide mandatory housing counseling • Banks, foundations and community partners are potential sources for additional leveraging opportunities
NSP Implementation Strategies Accountability • On-going monitoring • Monthly meetings with staff and participating agencies • Quarterly reports to HUD • Interim reports to BCC
NSP Implementation Strategies Staffing • Two additional positions are needed to support the NSP Program: • 1 Rehabilitation Specialist • 1 Realtor / Mortgage Specialist
Presentation Outline • Background • NSP Plan Requirements • Orange County NSP Plan • NSP Implementation Strategies • Timeline • Action Requested
Presentation Outline • Background • NSP Plan Requirements • Orange County NSP Plan • NSP Implementation Strategies • Timeline • Action Requested
Action Requested Approval of an Amendment of the 2008-2009 Annual Action Plan to include the Neighborhood Stabilization Program; approval of all required Certifications and Applications for Federal Assistance; and approval of two additional positions to support the Neighborhood Stabilization Program.