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NEIGHBORHOOD STABILIZATION PROGRAM NSP

Background. Title III of of the Housing and Economic Recovery Act, 2008 (HERA)Signed by the President on July 30, 2008Section 2301-Emergency Assistance for the Redevelopment of Abandoned and Foreclosed HomesHUD has assigned name of Neighborhood Stabilization Program$3.92 billion nationwide$62,2

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NEIGHBORHOOD STABILIZATION PROGRAM NSP

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    1. NEIGHBORHOOD STABILIZATION PROGRAM (NSP) SHALLEY JONES HORN DIRECTOR MIAMI-DADE COUNTY OFFICE OF COMMUNITY AND ECONOMIC DEVELOPMENT

    2. Background Title III of of the Housing and Economic Recovery Act, 2008 (HERA) Signed by the President on July 30, 2008 Section 2301-Emergency Assistance for the Redevelopment of Abandoned and Foreclosed Homes HUD has assigned name of Neighborhood Stabilization Program $3.92 billion nationwide $62,207,200 to Miami-Dade County Plan submitted to HUD on Nov. 26, 2008 and approved Jan. 12, 2009. Miami-Dade County has 18 months to commit the money and 4 years to fully expend all funding Grant Agreement signed March 6, 2009

    3. Uses of NSP Funding Five eligible uses specified by HERA Miami-Dade County has adopted four Eligible uses have roots in the CDBG program with exception of land banking provision (County elected not to do this activity) NSP funds are only for eligible uses, NOT foreclosure prevention or intervention

    4. The Five Eligible Uses

    5. Miami-Dade County Approach Second Mortgage Program Miami-Dade County will use its existing program. Miami-Dade County is conducting a lottery for homebuyer assistance. These borrowers will be able to purchase in any of the priority areas. Miami-Dade County will market homes it purchases to eligible buyers that do not win the lottery.

    6. The Five Eligible Uses

    7. Miami-Dade County Approach Acquisition and Rehabilitation Miami-Dade County is acquiring single-family homes for re-sale. Miami-Dade County may purchase or finance the acquisition of multi-family properties for rentals. Miami-Dade County through its General Services Administration (GSA) will acquire and rehab the single-family homes. GSA will work with a pool of qualified real estate professionals that will assist in this activity.

    8. Uses of NSP Funding

    9. Miami-Dade County Approach Redevelopment HOPE VI Miami-Dade County is funding the public infrastructure for the HOPE VI project. Miami-Dade County is working with a selected developer to complete the work. Redevelopment in the Expanded HOPE VI Area Miami-Dade County has identified a County-owned piece of property that will be part of a request for proposal (RFP). Miami-Dade County will make available $5,000,000 for the development of multi-family housing.

    10. Uses of NSP Funding

    11. Miami-Dade County Approach Demolition Miami-Dade County is working with non-entitlement cities to assist with demolition of blighted structures. Cities will have the opportunity to recommend sites for demolition.

    12. Uses of NSP Funding

    13. County’s Program What is Income Eligible? - Income Eligibility is set at 120% AMI and below 120% threshold for family of 4 - $80,880 As per NSP no less than 25% of allocated funds to be used for families at or below 50% AMI - $33,700 Improved residential structures will be occupied by households whose income does not exceed 120% AMI Areas served will have at least 51% of residents at or below 120% AMI Serving clientele whose income does not exceed 120% AMI Maximum assistance up to $70,000. AMI: AREA MEDIAN FAMILY INCOME

    14. Homebuyer Qualifications 51% to 120% of Area Median Income Employed for 24 consecutive months Good established credit history US citizen Minimum of 8 hours of homebuyer counseling Pre-approved by a first mortgage lender 3% down payment of which at least 1% is buyer’s own funds Maximum debt to income ratio 45%

    15. Criteria for Local Distribution NSP grantees 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

    16. NSP Purchase Discount CURRENT MARKET APPRAISED VALUE Value of a foreclosed upon home or residential property that is established through an appraisal made and completed within 60 days prior to an offer made for the property. The County must purchase homes at a 15% minimum discount.

    17. County’s Program

    18. Comments and Discussion For additional information on Miami-Dade County’s NSP initiative: Contact: Shalley Jones Horn, Director Office of Community and Economic Development Clarence Brown, Director Housing Asset Management 701 NW 1st Court, 14th Floor, Miami, FL 33136 786-469-2100 Neighborhood Stabilization Program Director

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