Neighborhood Stabilization Program October 23, 2008

NeedImpactLeveragingReadinessCapacity

Why We Are Here Meet new partners Meet new partners Introduce ourselves and State CDBG program Introduce ourselves and State CDBG program Communicate NSP requirements and program options Communicate NSP requirements and program options Learn about local conditions and existing local efforts Learn about local conditions and existing local efforts

Why We Are Here Identify stakeholders and tools needed Identify stakeholders and tools needed for success for success Identify stakeholders and tools in place or available Identify stakeholders and tools in place or available Identify tools DHCD, VHDA or others can provide Identify tools DHCD, VHDA or others can provide

Brainstorm Ideas Brainstorm Ideas –State allocation Strategy –Performance –Neighborhood Impact –Leveraging –Property acquisition strategies –Financing & facilitation targeted home ownership

Virginia CDBG Program Denise Ambrose Denise Ambrose Associate Director Associate Director (804) (804) Chris Thompson Chris Thompson Program Manager Project Development (804) (804)

Virginia CDBG Program Joanne Peerman Joanne Peerman Program Manager Implementation Program Manager Implementation (804) (804) Keith Sherrill Keith Sherrill Policy Analyst Project Development Policy Analyst Project Development (804) (804) Community Representatives Community Representatives Monica Poole TBA TBA

Background Authorized under Title III of the Housing and Economic Recovery Act of 2008 Authorized under Title III of the Housing and Economic Recovery Act of 2008 Targeted emergency assistance to state and local governments Targeted emergency assistance to state and local governments Acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities Acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities

Funding $3.92 billion to all states and particularly hard-hit areas $3.92 billion to all states and particularly hard-hit areas Virginia - $38.7 million Virginia - $38.7 million –Fairfax County - $2.8 million –Prince William - $4.1 million Need is based on number and percent of: Need is based on number and percent of: –Home foreclosures in each State or unit of general local government –Homes financed by a subprime mortgage related loan in each State or UGLG –Homes in default or delinquency in each State or UGLG

Activities Each activity must be CDBG eligible and meet a LMI national objective Each activity must be CDBG eligible and meet a LMI national objective Establish financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties Establish financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties Purchase and rehabilitate homes and residential properties abandoned or foreclosed; new housing construction is eligible as redevelopment Purchase and rehabilitate homes and residential properties abandoned or foreclosed; new housing construction is eligible as redevelopment Establish land banks for foreclosed homes Establish land banks for foreclosed homes Demolish blighted structures Demolish blighted structures Redevelop demolished or vacant properties Redevelop demolished or vacant properties

Eligibility All funds be used to benefit individuals at or below 120% of area median income All funds be used to benefit individuals at or below 120% of area median income At least 25% of the funds must be used for individuals or families whose incomes do not exceed 50% of the area median income At least 25% of the funds must be used for individuals or families whose incomes do not exceed 50% of the area median income Activities may not qualify using the "prevent or eliminate slums and blight" or "address urgent community development needs" objectives Activities may not qualify using the "prevent or eliminate slums and blight" or "address urgent community development needs" objectives

Distribution Must target funds to give priority emphasis and consideration to areas with greatest need including those: Must target funds to give priority emphasis and consideration to areas with greatest need including those: –With the greatest percentage of home foreclosures; –With the highest percentage of homes financed by a subprime mortgage related loan; and –Identified as likely to face a significant rise in the rate of home foreclosures 18 months to use NSP funds 18 months to use NSP funds –Defined as being obligated for eligible activities –Funds must be expended within 4 years

Additional Information

Investment Approach Outcome Funding Outcome Funding Leveraging Resources Leveraging Resources Performance based contracts Performance based contracts –Output based administrative & delivery costs –Additional $$$$ for achievement of outcomes Outcome oriented compliance monitoring Outcome oriented compliance monitoring

Stakeholder Involvement Management team Management team –Everyone needed or affected Management Plan Management Plan –Required contract document

We need to know The areas of concentrated bank owned homes in your locality Status of your identification of ownership and the condition of affected properties Existing programs that you have in place or designed to address these properties Property acquisition strategy

We need to know: Banks or other partners that may provide financing which can be leveraged with NSP funding. Homeownership and special needs housing programs you operate, waiting lists for those programs, & plan to target to NSP areas. Program elements you see the need for assistance or collaborative involvement by DHCD, VHDA or state or national non-profit partners.

Options / Alternatives / Issues for DHCD to consider Eligible applicants Eligible applicants Prioritization of neighborhoods vis a vis localities Prioritization of neighborhoods vis a vis localities Percent of need met in neighborhoods Percent of need met in neighborhoods Property acquisition strategies Property acquisition strategies Finding eligible ownership candidates interested in targeted properties Finding eligible ownership candidates interested in targeted properties Rentals versus Owner occupied Rentals versus Owner occupied

Options / Alternatives / Issues for DHCD to consider 25% / 50% strategies 25% / 50% strategies Role of non-profits Role of non-profits Role of private for profit Role of private for profit Size of grants Size of grants Planning grants Planning grants Pay for performance Pay for performance

Options / Alternatives / Issues for DHCD to consider Measuring outcomes Measuring outcomes Delivery costs Delivery costs Financing partners Financing partners Clearance activities Clearance activities Infrastructure / Vacant lots Infrastructure / Vacant lots Land banking criteria Land banking criteria

Tentative Schedule - Draft Late November Program Design Workshop Late November Program Design Workshop December 1 Action plan to HUD December 1 Action plan to HUD Mid-January RFP issued Mid-January RFP issued Late January How to apply workshop Late January How to apply workshop March 1 Proposals due March 1 Proposals due  1 st round NSP Implementation  Planning grants (?)

Tentative Schedule - Draft Tentative Schedule - Draft Early-AprilAwards announced Early-AprilAwards announced May Contract negotiations May Contract negotiations and NSP contracts and NSP contracts JulyRound 2 RFP issued (?) JulyRound 2 RFP issued (?) July 2010 July 2010 Performance window opens

NeedImpactLeveragingReadinessCapacity