Neighborhood Stabilization Program (NSP) Orange County, Florida

Presentation Outline Background Program Implementation Program Accomplishments NSP 3 Plan Action Requested

Presentation Outline Background Program Implementation Program Accomplishments NSP 3 Plan Action Requested

Background Neighborhood Stabilization Program (NSP) created by Congress to respond to rising residential foreclosures Orange County awarded $27.9 million Grant agreements executed with HUD March 2009 Primary goals were: Rapidly reduce vacant and abandoned homes in target areas Stabilize neighborhoods impacted by foreclosures

Background Orange County Foreclosure Filings Clerk of the Courts Office Orange County, Florida

Background NSP Program Requirements Program must serve low to moderate income families 25% of program funds must serve very low income families Properties must be purchased at a 1% discount from current appraised value Selection of target areas with greatest need

Background

NSP Activities Acquisition, rehabilitation, sale of foreclosed homes Acquisition, rehabilitation of foreclosed rental properties Demolition of abandoned, blighted properties Downpayment assistance for Homebuyers

Presentation Outline Background Program Implementation Program Accomplishments NSP 3 Plan Action Requested

Program Implementation Internal NSP Team County Attorney’s Office Property Acquisition Housing Rehabilitation Marketing & Qualifying Fiscal Purchasing Division Real Estate Division Housing and Community Development Division Mitchell Glasser, Manager Frantz Dutes, Assistant Manager

Program Implementation External Partners Orlando Regional Board of Realtors Mortgage Brokers and Financial Institutions Vendors: Contractors and trades Appraisers Surveyors Progress Energy (Energy saving audits)

Program Implementation Acquisition of NSP Homes Two paths for acquiring properties -Option A: County Initiated Acquisition - Option B: Realtor Initiated Purchases

Program Implementation Option A: County Initiated Acquisition Orange County coordinates the acquisition, repair and sale of NSP homes Realtors assist with acquisition and sales Rehabilitation work conducted by private companies Energy audit results included in repair work Inspections of rehab work conducted by County inspectors

Program Implementation Option B: Realtor Initiated Purchases Realtors Role: Identify suitable properties and buyers Coordinate purchase of foreclosed homes for eligible buyers Utilize NSP downpayment assistance

Program Implementation Option A & B: Buyer Incentives: $10,000 Moderate $15,000 Low $20,000 Very Low Closing cost assistance 15 year non-amortized note at 0% interest

Program Implementation Buyer Incentives Orange County Second Mortgage History year, 0% interest, monthly amortizing note year, 0% interest, monthly amortizing note year, 0% interest, monthly amortizing note 2007-Present 15 year, 0% interest, non-amortizing note

Program Implementation NSP Marketing Conducted workshop trainings for Realtors and Lenders Community outreach meetings for Contractors & Trades Use of the media: Print media Multiple Listing Service (MLS) Web site

Program Implementation NSP Marketing-Web Site

NSP Web Site Home Detail Page Program Implementation

Presentation Outline Background Program Implementation Program Accomplishments NSP 3 Plan Action Requested

Program Accomplishments Properties acquired Option A138 Properties acquired Option B 125 Properties under contract 4 Total number of homes 267 Rental units under contract 264 Total Expenditures to Date: $19.8 Million Total Expenditures to Date: $19.8 Million

Program Accomplishments Out To Bid7 Under Construction 13 Properties Completed47 Total Homes67 Rehabilitation

Program Accomplishments Homes available for sale 11 Homes sold28 Homes under contract 8 Total Homes47 Home Sales

Presentation Outline Background Program Implementation Program Accomplishments NSP 3 Plan Action Requested

NSP 3 Plan September HUD announced additional NSP funding to local governments Authorized as part of Dodd-Frank Act July 2010 Orange County was awarded $11.5 million referred to NSP 3 Funding requires an NSP 3 Plan due to HUD by March 1, 2011

NSP 3 Plan NSP 3 Requirements - 50% expenditure within two years -100% expenditure within three years Very low income targeting requirement 25% of NSP allocation Amend Action Plan for Community Development programs to include NSP 3 Selection of target area with the greatest need

Foreclosures in Target Areas Realty Trac

NSP 3 Plan Selection of Target Area: Pine Hills is the area with the greatest need in terms of foreclosures Pine Hills has a larger: Percent of houses delinquent on mortgages or in foreclosure Percent of high cost mortgages Number of vacant houses

Summary Stabilizing neighborhoods Creating & retaining jobs Supporting green initiatives Reinvesting program income ($10.5 million) into the four other target areas

Presentation Outline Background Program Implementation Program Accomplishments NSP 3 Plan Action Requested

Approval of an Amendment of the Annual Action Plan to include the Neighborhood Stabilization Program 3; approval of all required Certifications and Applications for Federal Assistance