1. February 17, 2009 Orange County Neighborhood Stabilization Program Update

2. Presentation Outline Background Initial NSP Implementation Strategy Revised NSP Implementation Strategy Action Requested

3. Presentation Outline Background Initial NSP Implementation Strategy Revised NSP Implementation Strategy Action Requested

4. Background Neighborhood Stabilization Program (NSP) was created to respond to rising residential foreclosures and property abandonment. Orange County was allocated $27.9 million Board of County Commissioners approved the County’s NSP Plan on November 18, 2008. Expenditure deadline for NSP funding 18 months from execution of Grant Agreement with HUD

5. Orange County Foreclosure Filings Background

6. Orange County Foreclosure Activity Background

7. Selected NSP Target Areas: Meadow Woods Pine Hills Azalea Park Holden Heights/Oak Ridge Union Park

8. Background NSP Activities: Acquisition, rehabilitation and sale of foreclosed homes Acquisition and rehabilitation of foreclosed rental properties Demolition of abandoned and blighted properties Redevelopment of demolished or vacant properties Financial Mechanisms for homeownership including: –Downpayment assistance –Closing cost assistance

9. Presentation Outline Background Initial NSP Implementation Strategy Revised NSP Implementation Strategy Action Requested

10. Initial NSP Implementation Strategy Housing and Community Development Division would coordinate with other nonprofit housing development agencies Non-profit agencies would acquire, repair and sell NSP homes –Hold title to properties –Issue bids –Monitor construction –Pay vendors –Sell homes

11. Initial NSP Implementation Strategy Concerns: Title to properties Liability and risk Limited control Inability to ensure objective procurement process

12. Presentation Outline Background Initial NSP Implementation Strategy Revised NSP Implementation Strategy Action Requested

13. Revised NSP Implementation Strategy Orange County will hold title to all the properties and coordinate the following : –Acquisition, repair and sale of NSP homes –Work with all private companies to provide needed services –Work with the nonprofit partners to assist us in achieving program requirements –Create Internal NSP team

14. Revised NSP Implementation Strategy Create Internal NSP Team Housing Repairs Fiscal NSP Administration Mitchell Glasser, Manager Frantz Dutes, Assistant Manager NSP Administration Mitchell Glasser, Manager Frantz Dutes, Assistant Manager Acquisition Legal Ex-Officio Legal Ex-Officio County Administration Linda Weinberg, Deputy County Administrator County Administration Linda Weinberg, Deputy County Administrator OVERSIGHT COMMITTEE Marketing and Sales Purchasing Real Estate Neighborhood Services Neighborhood Services

15. Revised NSP Implementation Strategy Purchasing and Contracts Division: Coordinate with Purchasing to secure required services such as: –Contractors –Survey –Appraisal –Title Company –Lawn Maintenance

16. Revised NSP Implementation Strategy Oversight and Accountability: Bi-monthly meetings with oversight committee Quarterly reports to BCC Quarterly reports to HUD

17. Revised NSP Implementation Strategy Executed HUD Agreements - Issue Bids for Services - Identify Properties, Conduct Due Diligence - Negotiate Acquisition - Close on Single Family Properties - Complete Renovations - Market Properties - Convey Properties - HUD/BCC Reporting Efficiently Expend $28 million 18 Months NSP Critical Path

18. Presentation Outline Background Initial NSP Implementation Strategy Revised NSP Implementation Strategy Action Requested

19. Adoption of a Resolution authorizing the Mayor or his designee to acquire and convey title of real properties within the Neighborhood Stabilization Program on behalf of Orange County.

20. NSP Program Budget ACTIVITIESAMOUNT Acquisition of Single Family Properties14,000,000 Rehabilitation of Single Family Properties1,500,000 Demolition of Blighted Properties250,000 Acquisition of Rental Properties3,000,000 Rehabilitation of Rental Housing1,000,000 Redevelopment of Residential Housing1,064,596 Financing Mechanisms4,400,000 Program Delivery Costs897,000 Administration1,790,177 GRAND TOTAL27,901,773