Save the Dream Ohio

Update on Ohio’s Foreclosure Prevention Effort

Save the Dream Ohio Programs• Rescue Payment Assistance• Mortgage Payment Assistance• Mortgage Modification with Contribution

Assistance• Lien Elimination Assistance• Transition Assistance• Homeownership Retention Assistance• Homeowner Stabilization Assistance

Hardship Requirements• Hardship due to involuntary unemployment or 10% loss or reduction

in income; • Homeowner must meet minimum eligibility requirements regarding

bankruptcy, occupancy, income, home type, and first mortgage debt• Significant medical expenses of 7.5% of gross annual income for all

unreimbursed expenses accrued prior to 2012 and 10% of gross annual income for all unreimbursed expense accrued after 2012 (excluded from Mortgage Payment Assistance) and;

• Relocation for employment that meets the requirements of IRS Publication 521 which states “the new main job is at least 50 miles farther from former residence than old main job (included in Transition Assistance only).

• The hardship must have occurred on or after January 1, 2007.

Amount of Assistance• Homeowners may participate in two or more programs and are

subject to the maximum assistance amount of $35,000 per household;

• The maximum assistance per program ranges from $7,500 for Transition Assistance to $35,000 for Mortgage Modification with Contribution Assistance

• Assistance is in the form of a zero interest forgivable second mortgage

• All payments are made to mortgage servicers, except for Transition Assistance

• More than 400 servicers are participating in Save the Dream Ohio

Assistance Provided6/30/13

1,000

3,000

5,000

7,000

9,000

11,000

$10,000,000

$30,000,000

$50,000,000

$70,000,000

$90,000,000

$110,000,000

$130,000,000

$150,000,000

13.325 homeowners through 9/30/13

Status of Funding9/30/13

Ohio Hardest Hit Funds estimate

Ohio Allocation $570,400,000

Administration $70,415,000

Program Funds $499,985,000

Disbursed by 9/30/13 $177,012,000

Reserved/Committed $95,354,000

Neighborhood Initiative $60,000,000

Funds available - Assistance $167,619,000

Need for Demolition• Demolition of vacant housing will prevent foreclosure by

stabilizing home values in at risk neighborhoods• Moving Ohio Forward provides $75 million, plus local match,

for demolition of vacant housing statewide• Ohio urban areas need additional resources to address

vacant housing after Moving Ohio Forward• Other resources such as CDBG are shrinking

Hardest Hit Fund Limitations• OHFA’s initial proposal to Treasury to use HHF to extend

Moving Ohio Forward was not approved• Treasury approved a different structure for Michigan• Ohio’s current approval based on two key elements:

Prevent ForeclosureModify a Loan

Proposed Demolition ProgramHHF Allocation $60 million

Eligible Applicants Land Banks (ORC 1724) or designated entity

Eligible Properties 1 to 4 unit vacant and blighted residential properties, controlled by Land Bank

Strategic Plan • Target Areas• Source of Properties• Maintenance and/or Redevelopment

Loan Non-federal source

Demolition Completed by local entity

HHF Funding• Demolition• Administration• Greening• Maintenance

Maximum $25,000 per propertyUp to maximum for hard and soft costs, lien payoffUp to $1,000 Up to $1,500Up to $400

HHF Lien 0% lien to Ohio Homeowner Assistance LLC, expires December 31, 2017

Process Flow

note

Land Bank

HHF

note note

Land Bank

$

$

lien

Demolition Occurs Submit to OHFA HHF

Funds disbursed by OHA upon OHFA approval

• Tax Foreclosure• Deed in Lieu• Donation• Acquisition• Local Government

Agreement

HHF Loan takes out existing Loan and reimburses demolition costs plus fees

0% lien expires 12/31/17

Non-Federal Loan

$

Proposed/Optimistic Timeline• November 24 Request for Proposals Issued• December 20 First Round Proposals Due• January 24, 2014 First Round Awards• February 28 , 2014 First Round Contracts Executed• April 4 , 2014 Second Round

Proposals Due• May 2 , 2014 Second Round Awards• June 6 , 2014 Second Round

Contracts Executed• March 31, 2016 All Contracts Expire