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STATE OF UTAH NEGHBORHOOD STABILIZATION PROGRAM

STATE OF UTAH NEGHBORHOOD STABILIZATION PROGRAM. NSP – History.

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STATE OF UTAH NEGHBORHOOD STABILIZATION PROGRAM

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  1. STATE OF UTAHNEGHBORHOOD STABILIZATION PROGRAM

  2. NSP – History • On October 6, 2008, the Housing and Economic Recovery Act (HERA) was signed. The purpose of the Act was to assist in redevelopment of abandoned and foreclosed homes under the Neighborhood Stabilization Program (NSP). The state of Utah received $19.6 million for NSP.

  3. NSP – Program Requirements • As a requirement of HERA, the funds must be obligated prior to September 10, 2010. • 5 counties were identified to be in greatest need of assistance, they are: Salt Lake, Utah, Davis, Weber and Washington. • Properties acquired were required to be foreclosed or abandoned.

  4. NSP – Program Requirements • A requirement of the Program is to use 25% of the total funds received for households that were at or below 50% Area Medium Income. • $5 million of the State of Utah funds were used to meet this requirement. 46 housing units have been made available to households at or below 50% AMI.

  5. NSP – Program Requirements • The remaining funds were used to acquire properties to provide housing to qualified home buyers that have an Area Medium Income of up to 120%. This new income group is defined as Low-, Moderate-, and Middle-Income households (LMMH) in NSP regulations.

  6. Income Eligibility • Income Eligibility for LMMH: • <= 50% = Low Income • 50% - 80% = Moderate Income • 80% - 120% = Middle Income

  7. NSP – Eligible Activities • Activities chosen by the State of Utah • Purchase and Rehabilitate properties for re-sell/lease to qualified home buyers • Land Banking for future development • Redevelopment • Finance Mechanisms

  8. NSP – Request for Proposal • A Request for Proposal was solicited for organizations to assist the state in the administration of the funds. Criteria used to rate the proposals were: • Ability to administer the NSP regulations • Ability to partner with banks and other non-profits. • Ability to maximize the funding through leveraging.

  9. NSP – Request for Proposal • We received 3 qualified proposals. • The contract was awarded to Utah Center for Affordable Housing (UCAH)

  10. Critical Partnerships • Additional partnerships: • Zions Bank – donated office space and the Executive Director’s salary. This allowed more funds to be used to acquire properties. • National Community Stabilization Trust (NCST) – provided “first look” of foreclosed properties.

  11. Non-Profit Partners • Non-profits that UCAH partnered with: • Color Country in Washington County • SLC Housing • Rural Housing Development Corporation • Davis Community Housing • Road Home • Utah Housing • Neighborworks, Salt Lake • Neighborworks, Provo

  12. Available Funds (as of 3/31/14) • Program Funds $19,600,000 • Program Income $ 8,826,953 • Total Funds Received $28,426,963

  13. Administrative Allocation State Admin - $392,000 UCAH Admin - $640,345 Admin Allowed 10% Admin Funds Allocated 4%

  14. Activities/Funding *Data as of March 31, 2014

  15. NSP – Housing Units Housing Units Provided • Single Family – 101 • Multi Family – 61 • Land Bank – 249* *Proposed Units *Data is as of March 31, 2014

  16. Distribution of Funds by Household Income At least 25% at 50% AMI

  17. Huntington ApartmentsProvo, UT • This foreclosed condo project was purchased from a banking consortium led by Bank of Utah. The property design was flawed and many of the bottom units of the three story building were uninhabitable due to water damage even though the building was only 18 months old.

  18. Huntington ApartmentsProvo, Utah • The property is now fully leased. Three out of four families in The Huntington community make less than 50% of the area median income. Lease rates are about $350 lower than the market rents, enabling families to have quality housing at a very affordable price.

  19. Huntington ApartmentsProvo, UT

  20. Rockwell CondominiumsDraper, Utah • This 30 unit condominium complex and the 4 ground level retail spaces was purchased from the FDIC. The 12 acre development failed after only one buyer purchased a ground floor retail unit. When the project failed, construction halted, leaving all 10 of the fourth floor units incomplete. The fire suppression system had frozen causing water damage throughout the building. Tall weeds replaced a once well-manicured landscape within the sight of a major highway and the property exterior was an eyesore for Draper city residents.

  21. Rockwell CondominiumsDraper, Utah • The developer was adamant about maintaining the finish quality of the 10 incomplete units during the rehabilitation process. Reasonable contractor bids for labor and materials allowed for a high level of finish in the remaining 10 units. Residents who call the Rockwell Condominiums home are proud of their high quality residences.

  22. Rockwell CondominiumsDraper, Utah

  23. Rockwell CondominiumsDraper, Utah

  24. Rockwell CondominiumsDraper, Utah

  25. West Valley CityLand Bank Development • High School students were put to work under the supervision of local licensed contractors as they learned how to lay concrete, frame walls, hang sheetrock, install cabinets, wire, and plumb. Cabinets that were custom-built in a high school shop were transported to the home just prior to completion.

  26. West Valley CityLand Bank Development

  27. Canyons CrossingMidvale Land Bank Development • $3 million of NSP funds were used to purchase nine acres of land. An additional$33,000 million is being infused for the development costs. Construction has started on Canyon Crossing, a 180 unit 4% LIHTC affordable housing property. The property is expected to generate $250,000 in annual cash flow.

  28. Canyons CrossingMidvale Land Bank Development • Innovative energy solutions are being built into Canyon Crossing with geo-thermal technology for the heating and cooling of the units. Each building will have a boiler to heat the individual units; high energy efficient doors and windows will be installed; and the buildings are oriented so that they are not as impacted from the summer sun heating the units. The anticipated average monthly utility bill per unit is $25.

  29. Canyons Crossing Midvale Land Bank Development • Geo-Thermal Drilling • Before

  30. Canyons CrossingMidvale land Bank Development

  31. Single Family Acquisition & Rehabilitation • The State connected non-profit housing organizations with UCAH to connect eligible home buyers to the program to enable them to purchase the properties. This was a challenge since home buyers were required to qualify for a mortgage loan, but at the same time, not exceed specific income limits. The solution was an additional partner in the form of a credit union that developed a special mortgage program for this segment resulting in all of the units being sold to eligible homebuyers.

  32. Single Family Acquisition & RehabProvo, Utah • After • Before

  33. Single Family Acquisition & RehabProvo, Utah • After • Before

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