1. LAKE WORTH CRA CONSORTIUM Welcome

2. Topics: Summary Overview Property Information Partners and the Conveyance Process Status of Rehabilitation and New Construction Efforts Photos of Purchased Properties Marketing Opportunities for Local Contractors Beneficiary Information Monitoring Neighborhood Impact

3. NSP-2 Authorization Authorized under ARRA (American Recovery and Reinvestment Act) to address the affects of the foreclosure crisis on the nations communities CRA, as lead applicant of the Consortium, applied in 2009 for Neighborhood Stabilization funds and was awarded funding in the early part of 2010 Received $23.2M (received full amount requested due to strength of Consortium and the demonstrated need within the identified area) The program is designed to assist low to moderate income families and individuals with the purchase of a home

4. Lake Worth CRA Consortium Our goal is to revitalize a very targeted area of the CRA Partners were chosen with proven capacity and demonstrated history – most are local This approach was used to increase our teams application score, the abilities and experience to facilitate the program implementation process due to the tight timeframes for the expenditure of funds, and to help insure Program compliance and success Half of the funds must be expended by February 11, 2012 and all funds must be expended by February 11, 2013

5. Consortium Members City of Lake Worth The Urban Group Adopt-A-Family Habitat for Humanity of PBC Housing Partnership Stuart & Shelby Cannatelli Builders Craftsman Plus All Phase Services National Community Stabilization Trust Intelli-Green Lake Worth CDC Housing Leadership Council of PBC United Way of PBC The Lords Place Indiantown Non-profit Housing

6. Palm Beach State College Small Business Development Center (SBDC) Families First of PBC Childrens Services Council Realtors Association of PBC Palm Beach State College Plan includes social services to provide for long term stabilization of the neighborhoods Consortium Members

7. Summary of Eligible Uses Eligible Use A - Financing Mechanisms Eligible Use B - Acquisition and Rehab Eligible Use C - Land Banking Eligible Use D - Demolition Eligible Use E - Redevelopment

8. Target Area Entirely within the Lake Worth CRA District Primarily foreclosed, bank-owned properties will be targeted Can also include vacant and abandoned properties in some cases Donated or City-surplus properties can also be used Area is large enough so we can possibly purchase up to 130 properties in the next two years but small enough to produce a significant impact with visible revitalization Must meet rehabilitation and construction budget included in the action plan

9. Target Area

10. NEIGHBORHOOD STABILIZATION PROGRAM REVIEW OF PROPERTIES SCHEDULED TO TRANSFER TO AAF 402 SOUTH F STREET EXISTING 4-UNIT 1 BEDROOM / 1 BATH NO WASHER/DRYER NO A/C NO IMPACT WINDOWS 427 NORTH H STREET 2 EXISTING UNITS, FRAME CONST. 2 BR / 1 BA & 1 BR / 1 BA NO WASHER/DRYER, NO A/C NO IMPACT WINDOWS SEVERE DEFERRED MAINTENANCE 910 NORTH D STREET EXISTING SF HOME, CBS 2 BR / 1 BA, DETACHED GARAGE NO WASHER/DRYER NO IMPACT WINDOWS REMODEL KITCHEN/BATH 310 NORTH DIXIE #109 HAMMON PARK TOWNHOME 3-STORY 2 BEDROOM / 2 BATH REPLACE APPLIANCES EXCELLENT CONDITION 310 NORTH DIXIE #105 HAMMOND PARK TOWNHOME 3-STORY 2 BEDROOM / 2 BATH CLEAN, PAINT, CARPET, APPLIANCES GOOD CONDITION 520 NORTH C STREET EXISTING SF HOME FRAME CONST. 2 BR / 1 BA NO IMPACT WINDOWS/DOORS CLEAN, REFINISH FLOORS MINOR REPAIRS, LANDSCAPE

11. 402 South F Street

12. 402 South F Floor & Site Plan Floor Plan New Hurricane Impact Windows New kitchen cabinets & appliances New central a/c 2-Bedrooms & 2-Baths Washers & Dryers 1200 Square Feet per unit In permitting Site Plan Remove front parking Reorient rear parking Add open space in front and rear Retain existing landscaping where possible

13. 310 NORTH DIXIE UNIT 105 & 109 Hammon Park 3-Story 2-Bedroom, 2-Bath Garage Washer/Dryer New kitchen Replace appliances Minor clean, paint, carpet No permits needed

14. 427 North H Street

15. 427 North H Street Site Plan Demolish existing structures Construct new 1200 square foot single- family residence 2-Story On-site parking Increase outdoor space

16. 427 NORTH H STREET FLOOR PLAN First floor living, dining, kitchen, ½ bath, washer dryer Second floor, 3 bedrooms & 2 full baths Hurricane impact windows & doors Energy Star & gas appliances Central A/C Certify green Finalizing plan for permitting

17. 910 North D Street SINGLE FAMILY HOME, DETACHED GARAGE 2-BEDROOM 1- BATH REMODEL KITCHEN AND BATH GAS & ENERGY STAR APPLIANCES REPAINT, NEW FLOORING RENOVATE GARAGE LANDSCAPE SINGLE FAMILY HOME, DETACHED GARAGE 2-BEDROOM 1- BATH REMODEL KITCHEN AND BATH GAS & ENERGY STAR APPLIANCES REPAINT, NEW FLOORING RENOVATE GARAGE LANDSCAPE

18. NEIGHBORHOOD STABILIZATION PROGRAM NEXT GROUP OF PROPERTIES FOR TRANSFER

19. Habitat for Humanity Amenities Energy Star Certified homes FGBC Green Building Criteria Energy Star and gas appliances Higher insulation values than Florida Building Code requires Homes have storm mitigation measures built in

20. 427 South F Street

21. 401 South E Street

22. 26 South E Street

23. 430 South E Street

24. 413 North D Street

25. Program Update Following are some specific facts regarding the Consortiums Actions to date:

26. Program Update - Continued Since the approval to expend funds, the Consortium has purchased 46 properties (7 multi-family, 27 single-family and 12 vacant lots), which based on Consortium Developers plans, will ultimately produce between 50 and 55 Housing units (future sales and rentals) for the program. 46 properties equates to approximately 36% of the total number of properties we stated we would purchase through this program.

27. Program Update - continued Cumulative Purchase Costs of the 46 properties purchased to date is approximately $2.4Million

28. Program Update - Continued Consortium is purchasing properties at a price point approximately 15% below Fair Market Value, surpassing HUD overall requirements of 5% for the program Currently there are about 54 properties in the NSP-2 Pipeline Several new closings scheduled over the next two weeks Consortium has submitted four Quarterly Reports to HUD, with the next one scheduled to be submitted in April. All reports are available on the CRA website (www.lakeworthcra.org/nsp)www.lakeworthcra.org/nsp

29. Program Update - Marketing Consortium Marketing efforts are centered around the following: 1. providing program awareness 2. information on how to participate, and 3. highlighting both the Programs and the Citys competitive advantages such as the energy-efficient homes - following Florida Green Building Coalition guidelines, lower-cost maintenance, opportunities for mortgage buy-downs without negatively affecting market value in the neighborhood, as well as the Citys central Palm Beach County location, proximity

30. Program Update - Marketing to the Atlantic Ocean, and budding cultural and artistic Renaissance. Examples of marketing efforts to date include: Developed flyers and posters for the program Installed signs on purchased lots Advertised in City utility bills Advertising Kiosk at Boynton Beach Mall Consortium Partner Monthly First Time Buyer Workshops

31. Program Update - Marketing Distribution of flyers to JFK Medical Center for posting Consortium Affordable Housing presentation in Spanish, held March 5, 2011 at the Community Foundation of Palm Beach County Upcoming: Planning advertising on Tri-Rail, minority newspapers and web sites Public Service Radio spot Lake Worth Chamber of Commerce Breakfast, scheduled for March 16, 2011

32. Program Update - Marketing Distribution to Florida Atlantic University employees and visitors Distribution of flyers to all personnel at PBSO Distribution to the Compass Center Consortium Partner (AAF) providing program information to Palm Beach State College, as well as all Day-Care agencies in Palm Beach County

33. Program Update - Marketing

34. NSP and CRP According to the Consortiums Application, CRP funding will be used to compliment the program, by developing home ownership opportunities for artists, the attraction of investment and on-going coordination with culturally based institutions. Units built on both Lake and Lucerne can offer artists both live and work space. Plans are underway for the development of design plans. These plans will be presented to the CRA Board before going through the formal City process.

35. Opportunities for Local Contractors As described earlier, the selection of Consortium Partners was critical in demonstrating our capacity to perform. This collective capability coupled with the demonstrated target area need, were the two most important factors in determining our award. Simply put, without having partners which collectively met and often exceeded the minimum successful output requirements reflected in the Notice of Funding Availability, the application would have been unsuccessful in this very competitive environment.

36. Opportunities for Local Contractors That being said, there are and will continue to be ample opportunity for local residential contractors, tradesmen, and professional service providers to become involved and earn stimulus dollars through the NSP-2 Program. Examples of non-construction opportunities that already exist include demolition services, asbestos and lead-based testing services, property protection (boarding/fencing), signage, printing, Seller- initiated real estate commissions

37. Opportunities for Local Contractors Section 3 of the Housing and Urban Development (HUD) Act of 1968 applies to the NSP-2 program. In summary, this means that contracting opportunities, consistent with Federal, State and Local laws and regulations, shall to the greatest extent feasible, be directed to low and very-low income persons within the local Metropolitan Statistical Area (MSA). This area is defined as Palm Beach County, with a preference to qualified contractors within the City limits of the City of Lake Worth.

38. Opportunities for Local Contractors Upcoming opportunities include architect/engineer services, construction material provision, and a whole host of residential rehabilitation/new construction sub-trade activities The Consortium will place an advertisement for such services in the Sunday, March 13, 2011 Palm Beach Post, and will post the advertisement with the Lake Worth Chamber of Commerce, at City Hall, the City Annex, as well as the CRAs NSP-2 website: www.lakeworthcra.org/nsp www.lakeworthcra.org/nsp

39. Opportunities for Local Contractors The Consortium will continue to post advertisements as needed, with the intent of building a full compliment of contractors with preference for work given to Section 3 residents and business concerns. The Consortium has developed a qualifications questionnaire and Section 3 eligibility forms, which will assist in evaluating and incorporating qualified local contractors, whether they qualify for a Section 3 preference or not.

40. Neighborhood Fiscal Impact Lake Worth Target area contains approximately 1,800 addresses Revitalized addresses 130 or 7.22% of area Impact of vacant foreclosed home$-80,000 per home* Removal of 130 vacant foreclosed homes 80,000 X130 = 10,400,000 value impact 100 additional electric and water customers Additional Sales for area merchants and sales tax revenue * Congressional Oversight Panel 2009 report on TARP

41. How NSP Helps the City NSP already helps the City in many ways, and promises to continue to help during construction and once new owners are living in the home. Following are some examples of how NSP is helping the City: Collection of over $10,000 in past due Utility charges Collection of nearly $29,000 in assessments and administrative fees Collection of $2,900 in Lien and Building Searches Collection of $3,000 in Permit Fees

42. How NSP Helps the City Collection of over $124,000 in property taxes Clean-up of purchased properties Marketing the City as a destination, promoting the Citys proximity to the Beach, ongoing retail investment, cultural renaissance taking place downtown, etc. To date, local real estate brokers have made over $30K in transaction fees related to NSP2. The final piece to your homeownership puzzle Stabilizing Neighborhoods Increasing Homeownership Long Term Affordability $23.2 Million Investment in Lake Worth

43. Monitoring and Beneficiary Issues

44. Reporting Requirements NSP2 requires federal reporting to ensure compliance and transparency. Quarterly reporting must be completed and submitted 10 days following the completion of a quarter (i.e. quarter ends on March 31 st, reporting is due April 10 th. All reports are posted on the CRA website (www.lakeworth cra.org), through DRGR and federal site (recovery.gov). RAMPS reporting (environmental) is also required on a quarterly basis. Financial information is automatically populated by HUD. If is hasnt been spent, it cannot be included in the grant. Reports based on actual expenditure.

45. Internal Monitoring Program requires ongoing internal monitoring/technical assistance. All consortium partners are monitored on a regular basis with an on-site visit at least once per year. Contract monitoring specialist G. Scott Curry is conducting these monitorings. Purpose of internal monitoring is to ensure compliance with all cross-cutting federal regulations, grant requirements, record keeping and outcome measures.

46. HUD Oversight HUD monitors program on a weekly basis via reports from DRGR and grantee generated reports. HUD also conducts on-site monitoring visits (CRA is scheduled for last week in April and HUD staff reserved the entire week). HUD can (and will) visit any consortium partner during on-site monitoring to review files and make sure partner is in compliance and has done appropriate record keeping. HUD will also physically inspect target area.

47. Beneficiary Requirements Need to be within income guideline (at or below 120% of AMI) Must be able to qualify for a first mortgage Must be US Citizens or a qualified legal alien eligible to purchase property No bankruptcies within 5 years or foreclosures in past 6 years Must be able to qualify for 1 st time FHA mortgage All homes will be deed restricted; minimum 15 years

48. Beneficiary Requirements Must not currently be a homeowner Must be able to apply for homestead Exemption on the Property they are purchasing Total debt cannot be more than 50% of their income

49. Housing Counseling Buyers will receive Housing Counseling to ensure that they can afford the home and understand the transaction Mortgages in default in FL (90+days late) 14% Mortgages in default in South FL 23.6% Mortgage defaults with Housing Counseling and down Payment assistance 4.5% *Source Florida Housing Finance Corporation

50. For more information General program and housing information HUD (Housing & Urban Development) www.hud.gov All program information, including Quarterly reports can be found on the CRA web site Lake Worth NSP Program www.lakeworthcra.org/nsp