Neighborhood Stabilization Program

Neighborhood Stabilization Program

Neighborhood Stabilization Program Purpose

To stabilize communities impacted by high foreclosure rates.

To provide relief to lending institutions to reduce inventory of foreclosed properties.

To preserve and extend life of housing stockTo provide affordable housing opportunities

for low to moderate income customers.

NSP Funding Available To Alachua County

$1.4 Million to Regular Allocation$1.5 Million for Supplemental Allocation $2.9 Million Total Regular Allocation: Acquire, rehab, resale

Supplemental Allocation: rental only

Alachua County Neighborhood Stabilization Program is aligned with…

County Policies, Goals, and Objectives established in…

County Commission Guiding Vision

Housing Element of the Alachua County Comprehensive Plan

Alachua County Neighborhood Stabilization Program is Governed By:

Federal NSP Regulations

HERA of 2008Federal Register NoticesNSP Policy AlertsNSP Resource ExchangeExisting Federal CDBG Regulations

Existing OMB Circulars

Key HUD RequirementsFunds must be obligated by September 2010Homes must be sold to low to moderate income

families.Rental homes for very low income families

compulsory.Minimum Purchase discount required (1%)Define target areas based on HUD’s data base.Units must meet definition of “foreclosed.” Established program delivery options:

subgrantee, sub recipient, or developer model

State of Florida NSP Regulations

● DCA Substantial Amendment to HUD Plan (2) ● Executed Agreement with DCA ● Technical Memorandums ● Existing State of Florida CDBG regulations ● Periodic webinars and conference calls

Local NSP Regulations…County NSP Housing Assistance Plan Adopted March 2009, May, August 2010

County NSP Property Conveyance Ordinance: Adopted November 23, 2010

County Procurement PoliciesFinance and Accounting Policies

Neighborhood Stabilization Program Requirements

Acquire foreclosed properties at no more than 99% of appraised value in designated zip codes.

Homes must be vacant for at least 90 days.

May not exceed County’s maximum purchase price.

Purchase of any homes more than 50 years old must be pre-approved by SHPO.

Must meet all environmental review requirements

Acquisition of NSP Homes NSP Community Kick-Off Meeting State and Federal Relief from Red Tape

Board Action Related to AcquisitionAuthorized County Manager’s office to enter into

real estate contracts to purchase NSP homes.Increased maximum purchase price and allowed

acquisition of short sale properties for ACHA.

Property Acquisitions Chart

Location Alachua Gainesville HawthorneUnin-

corporatedTotal

Resale 1 4 1 3 9

Housing Authority 2 4 0 0 6

Other-Rental 1 3 0 1 5

Total 4 11 1 4 20

Neighborhood Stabilization Program Renovation

Units must meet minimum housing requirements Energy efficient improvements i.e. Energy Star

appliances, windows, and doors required.Marketability expenses allowed :

Exterior paintedInterior walls painted

Environmental Issues must be addressed i.e.Lead Based Paint Inspections/Mitigation/ClearanceMold and mildew Inspections/Mitigation/Clearance

Neighborhood Stabilization Program Exterior Home Repair Challenges

Neighborhood Stabilization ProgramInterior Home Repair Challenges

Neighborhood Stabilization Program Resales

1. Asking Price based on post rehab appraisal.2. Purchase price may not include disposition costs.3. Sold to low to moderate income homebuyers.4. HUD Certified Homebuyer Education Class required.5. Lending requirements for 1st mortgage.6. Homes are advertised and conveyed per NSP

Ordinance.7. Full price offers received on first 4 homes For Sale.8. Soft second mortgage assistance available.9. Buyer must obtain licensed realtor of their choice.10.Sale proceeds used to renovate and buy more homes.

Neighborhood Stabilization Program Rental Properties

Alachua County Housing Authoritya. Six homes were selected by ACHA.b. Very low income renters.c. Must be permanent, affordable rental housing for 15 years.

Request for Proposals Five rental homes made available to

not for profit via RFP.

Alachua County Neighborhood Stabilization Program Economic Impact

$562,226 in construction contracts awarded to Alachua County and North Central FL area contractors.

$102,845 in real estate commissions

Multiplier effect of real estate transactions

Alachua County Neighborhood Stabilization Program

NSP 3 Program Designated Target Area

NSP 3 Program Design OptionsMaximum Acquisition PriceMaximum Awards for Soft Second

MortgagesEnergy Conservation StandardsBid AcceptanceMinimum Buyer ContributionParticipation in First Look Program

NSP 3 Program Design OptionsMaximum Acquisition PriceOriginal: $125,000 Current: $155,000Staff Recommendation:

$110,000 Board Direction

NSP 3 Program Design OptionsMaximum Resale Soft Second Mortgages Current

$10,000 Moderate Income Buyer$20,000 Low Income Buyer$30,000 Very Low Income Buyer

Staff Recommendation: No changeBoard Direction

NSP 3 Program Design OptionsEnergy Conservation StandardsCurrent Requirements

Energy Star Doors, Windows, AppliancesR-30 Insulation where feasibleSeer rating of 15 for electric heat pump

units.Staff Recommendation: Retain

requirementsBoard Direction

NSP 3 Program Design OptionsBid AcceptanceCurrent

Bids will generally be recommended to be awarded to the lowest responsible bidder within plus or minus fifteen percent (15%) of the cost estimate.

Recommendation: Retain policyBoard Direction

NSP 3 Program Design OptionsCurrent Minimum Buyer ContributionVery low-income $500.00Low income $1,000.00Moderate $1,500.00Staff Recommendation: Retain policy

Board Direction

NSP 3 Program Design OptionsParticipation in First Look Program

Current: Alachua County has not participated in Fannie Mae Program which allows NSP recipients to buy homes before being listed on MLS.

Staff recommendation: NoneBoard Direction

NSP 3 Program Design OptionsStaff Recommendation: Approve

NSP 3 Housing Assistance Plan as amended