1. NACEDA Webinar for Members Federal Update Rachel Audi November 12, 2009

2. HUD Neighborhood Stabilization Program NSP1 Created 2008 - Housing Economic Recovery Act $4 billion grants to States and Locals for purchase & rehab, downpayment assistance NSP2 Created 2009 - ARRA $2 billion grants to States, Locals, Nonprofits or Consortia of Nonprofits NSP Task Force advocacy: Extension of the 18 months for the NSP1 funds

3. U.S. Foreclosure Crisis 925,000 borrowers went into foreclosure during Q3 of 2009, 29% increase from Q3 2008 Between July 2007 and August 2009 there were more than 7 million foreclosure filings, out of a total of 111 million households in the United States 1.5 million loans have been lost to foreclosure this year, with the highest foreclosure rates in Nevada, Arizona and Florida 2 million more will lose homes in 2009 As of May, 29% of Florida housing loans had been foreclosed 13 million homes are projected to foreclose in the next 5 years Only 17 percent of eligible borrowers have had their loans modified and monthly payments cut. To-date, delinquent loans > loan modifications According to the RealtyTrac Q1 2009 U.S. Foreclosure Market Reportforf9

4. Early successes in the Obama Administrations stabilization efforts Goal of 500,000 trial loan modifications by November 1, set in July, pushed servicers to speed up program implementation Goal met in early October: almost a month ahead of schedule Trial modifications are now being issued faster than new homeowners are becoming eligible The Obama Administration is pushing for more assistance for struggling homeowners Senior Treasury and HUD officials met with servicers, to find ways to improve efficient loan modification service

5. Legislation: Housing Preservation and Tenant Protection Act To be introduced by Barney Frank (D-MA), Chair Covers nearly 2 million affordable subsidized housing apartments Extend enhanced vouchers to all HUD-insured properties Protections for Residents facing conversion Projects facing foreclosure Expected to be introduced in December 2009

6. Congressional Legislation: Main Street TARP Act, H.R. 3766 Introduced by Barney Frank (D-MA), Chair $1 billion TARP funds for Housing Trust Fund Goal: 1.5 million homes in 10 years Dedicated funds (not subject to appropriations) For extremely low- and very low-income households $2 billion TARP funds for owner-occupants At least 3 months behind in mortgage payment Have lost employment or underemployed Have ability to make future mortgage payments Must repay loan/credit/advance

7. Legislation: Preserving Homes and Communities Act, S. 1731 Introduced by Senator Jack Reed (D-RI) Provides $2 billion for Housing Trust Fund Authorizes $6.4 billion to states to help prevent foreclosure for owners who In financial hardship beyond control Able to make mortgage payments in 15 months Provides foreclosure protections Requires lenders to disclose to owner all modification remedies to prevent foreclosure Prohibits unnecessary mod & foreclosure fees Creates grant program for foreclosure mediation Requires HUD implement plan to predict foreclosure trends

8. Legislation: Community Regeneration, Sustainability, and Innovation Act, H.R. 932 Introduced by Tim Ryan (D-OH), Senator Charles Schumer (D-NY) Creates demonstration grants for local governments in areas With 20% population decline since 1970 Vacated industrial towns, facilities, housing Funding for innovative renewal: Creation of land banks Recovered building materials reuse Removal of abandoned properties Creation of open space and infrastructure Land use, brownfield, and strategic planning

9. NSP Challenges Foreclosure environment Homes in foreclosure process: 2.5 million 750,000 held by banks Foreclosed homes sold by 2012: 4 million* HUD disbursement of NSP funding Only 13.8% of funds obligated to-date All purchases must be made by fall 2010 HUD Collaboration before disbursing Contract with banks and lenders States and cities: report to HUD how funds will be spent Slow funds slow states, cities *Source: Mark Zandi, Moodys Economy.com

10. NSP Challenges Investors & Locals Investors purchasing homes faster than non-profits State and local governments Finding funds beyond NSP for rehab Plans to reclaim streets, blocks slowed by critical collaboration with community, banks, owners State & local challenges: Acquiring homes from banks at 1% discount to appraised value 25% of funds must help very low-income

11. Status Report NSP1 Comments HUD Federal Reserve HUD review of NSP2 grant applications Reviewing 404 applications $13 billion in requests $2 billion in funds available NSP2 Timeframe HUD anticipates review NSP2 grant awarded beginning of December Consortia agreements now due January 29

12. Status Report NSP2 NOFA Amendment: Consortium Agreements Due now January 29, 2010 (formerly Dec 1) Technical Assistance Rollout Nationwide clinics start December Hosted by HUD For grantees and subrecipients New HUD Web Site: www.hudnsphelp.infowww.hudnsphelp.info NSP resource exchange Live: Wednesday, December 2