Neighborhood Stabilization Program (NSP) Quarterly Report August 25, 2009

Neighborhood Stabilization Program (NSP)

Quarterly Report

August 25, 2009

Presentation Outline

• Background

• Implementation Strategy

• Performance Review

• Challenges and Opportunities

• Additional NSP Activities

• Summary


• Background





• Summary

Background

• NSP was created by the Housing and Economic Recovery Act of 2008 to respond to rising residential foreclosures and property abandonment.

• Orange County was allocated $27.9 million

• Board of County Commissioners approved the County’s NSP Plan on November 18, 2008.

• Grant agreements were executed with HUD on March 9, 2009.

Background

Orange County Residential Foreclosures

19,063

5,067

11,351

26,131

0

5,000

10,000

15,000

20,000

25,000

30,000

2006 2007 2008 Up to July2009

Background

Background

NSP Eligible Activities:

• Acquisition, rehabilitation and sale of foreclosed homes

• Acquisition and rehabilitation of foreclosed rental properties

• Demolition of abandoned and blighted properties

• Redevelopment of demolished or vacant properties

• Downpayment and closing cost assistance for Homebuyer

Background

Significant program requirements:

• Purchase foreclosed property at a discount from current appraised value

– Changed from 5% to 1 % discount for all purchases

• Program must serve low to moderate income families

• Twenty-five percent of program funds must serve very low income families


• Background





• Summary

Implementation StrategyInternal NSP Team

CountyAttorney’s

Office

Property Acquisition

Housing Rehabilitation

Marketing &Qualifying

Fiscal

Purchasing Division

Real Estate Division

Housing and Community Development DivisionMitchell Glasser, Manager

Frantz Dutes, Assistant Manager

Implementation Strategy

External Partners

• Orlando Regional Board of Realtors

• Mortgage Brokers and Financial Institutions

• Vendors:

– Contractors and trades

– Appraisers

– Surveyors

– Title Companies

Implementation Strategy

External Partners

• Progress Energy (Energy saving audits)

• Fannie Mae (Streamline acquisition process)

• National Community Stabilization Trust (First look program)

Implementation Strategy National Community Stabilization TrustFirst Look Program

Wells Fargo(Seller)

J.P. Morgan Chase(Seller)

Bank of America(Seller)

The Trust(Transfer)

Orange County(Buyer)

Implementation Strategy Orange County’s NSP Model

Homeownership

Outreach Qualify

DownPayment

Assistance

Homebuyer

Identify Acquire

Rehab

NSP Properties


• Background





• Summary

Performance Review

Properties acquired/assisted 30

Properties under contract 11

Offers pending 12

Properties reviewed to date 300

Expenditures Year to date

TOTAL $2,164,766

As of August 18, 2009

Performance Review Comparative Analysis of NSP Grantees Expenditures

Grantee Grant Amount Expenditure

Dade County $62,207,200 $122,075Orange County 27,901,773 2,164,767Palm Beach County 27,700,340 0Jacksonville – Duval 26,175,317 100,373Hillsborough County 19,132,978 0Lee County 18,243,867 328,779Broward County 17,767,589 13,802Port St. Lucie 13,523,132 1,418,908Seminole County 7,019,514 0Orlando 6,730,263 0

As of August 18, 2009


• Background





• Summary

Challenges and Opportunities

Challenges:

• A warmer housing market

– Inventory of homes for sale has decreased in half to 8.1 month supply

– Number of homes sold in July 2009 up 45% from July 2008

– Investors are actively pursuing & buying foreclosed properties

Challenges and Opportunities

Opportunities:

• Stabilization of neighborhoods

• Job creation and retention

• Support of green initiatives

• Ensuring long term homeownership


• Background





• Summary

Additional NSP Activities

– $7.0 million in NSP funds allocated

– Acquisition and rehabilitation of foreclosed rental housing for very low income households

• Issuance of a multi-family RFP

Additional NSP ActivitiesDemolition of blighted structures

Partnership with our Code Enforcement Division

Additional NSP ActivitiesCreated NSP Web Site

Additional NSP ActivitiesCreated NSP Web Site


• Background





• Summary

Summary

• NSP organizational structure in place

• Additional activities under way

• Addressing challenges and meeting milestones

• Potential expansion of the program through NSP II competitive grant

For More NSP Information:

www. ocfl.net/housing

Documents

Neighborhood Stabilization Program (NSP) Quarterly Report August 25, 2009