Neighborhood Stabilization Program (NSP) Orange County, Florida.

Neighborhood Stabilization Program (NSP) Orange County, Florida

Neighborhood Stabilization Program (NSP) Orange County, Florida

Presentation Outline

• Overview

• Implementation Strategy

• Challenges and Opportunities

• Additional NSP Activities

• Summary

Presentation Outline

• Overview

• Implementation Strategy

• Challenges and Opportunities

• Additional NSP Activities

• Summary

Overview

• Orange County is one of the top foreclosure markets in the nation.

• Orange County was allocated $27.9 million in NSP.

• Grant agreements were executed with HUD on March 9, 2009.

Overview

Orange County Residential Foreclosures

19,063

5,067

11,351

26,131

0

5,000

10,000

15,000

20,000

25,000

30,000

2006 2007 2008 Up to July2009

Overview

Presentation Outline

• Overview

• Implementation Strategy

• Challenges and Opportunities

• Additional NSP Activities

• Summary

Implementation StrategyInternal NSP Team

CountyAttorney’s

Office

Property Acquisition

Housing Rehabilitation

Marketing &Qualifying

Fiscal

Purchasing Division

Real Estate Division

Housing and Community Development DivisionMitchell Glasser, Manager

Frantz Dutes, Assistant Manager

Implementation Strategy

External Partners

• Orlando Regional Board of Realtors

• Mortgage Brokers and Financial Institutions

• Vendors:

– Contractors and trades

– Appraisers

– Surveyors

– Title Companies

Implementation Strategy

External Partners

• Progress Energy (Energy saving audits)

• Fannie Mae (First Look process)

• National Community Stabilization Trust (First look program)

Implementation StrategyFannie Mae (First Look process)

Fannie Mae, Homepath.com

• “First Look” process for Governmental agencies and first time homebuyers

• Daily alerts of available properties

• 45 day closing

• Escrow deposit waived

Implementation Strategy National Community Stabilization TrustFirst Look Program

Wells Fargo(Seller)

J.P. Morgan Chase(Seller)

Bank of America(Seller)

The Trust(Transfer)

Orange County(Buyer)

Implementation Strategy Option A: County Initiated Acquisition

• Orange County will hold title to all the acquired properties and coordinate the following:

– Acquisition, repair and sale of NSP homes

– Private companies provide needed services

– Realtors assist with acquisition and sales

Implementation Strategy Option A: County Initiated Acquisition

• Scope of repairs prepared by County inspectors

• Rehabilitation work conducted by private companies

• Energy audit results included in repair work

• Inspections of rehab work conducted by County inspectors

Implementation Strategy Option A: County Initiated Acquisition

• Interested buyer list

• Buyers must be pre-qualified by lender prior to being added to the interested buyer list

• Buyers must have a realtor represent them.

• Available properties will be advertised on Orange County’s web site.

Implementation Strategy Option A: County Initiated Acquisition

Buyer Incentives:

• $20,000 Moderate

• $30,000 Low

• $35,000 Very Low

• Closing Cost paid by Orange County

• Buyer contribution 1.75% of contract price for FHA loans.

• County note will be 15 year non-amortized note at 0% interest

Implementation Strategy Option B: Realtor Initiated Purchases

Realtor Participation:

• Identify suitable properties and buyers

• Coordinate purchase of foreclosed homes for eligible buyers

• Utilize NSP homebuyer assistance for homes in good condition

• Utilize NSP homebuyer assistance with FHA 203K program for homes needing repairs.

Implementation Strategy Option B: Realtor Initiated Purchases

Buyer Incentives:

• Up to $35,000 homebuyer assistance to qualified buyers

• Closing Cost paid by Orange County

• Buyer contribution 1.75% of contract price

Implementation Strategy Option B: Realtor Initiated Purchases

• Applications processed expeditiously

• Commitment letter issued by Orange County

• Down payment assistance check made payable to buyer and the closing agent

• $8,000 Tax Credit may be used

NSP Properties Identify Acquire Rehab

HOMEOWNERSHIP

Homebuyer

Outreach Qualify Down Payment Assistance

Implementation StrategyPerformance

Properties acquired Option A 30

Properties acquired Option B 24

Properties under contract 11

Offers pending 12

Properties reviewed to date 400

Expenditures Year to date

TOTAL $4,505,993

Presentation Outline

• Overview

• Implementation Strategy

• Challenges and Opportunities

• Additional NSP Activities

• Summary

Challenges and Opportunities

Challenges:

• A warmer housing market

– Inventory of homes for sale has decreased in half to 8.1 month supply

– Number of homes sold in July 2009 up 45% from July 2008

– Investors are actively pursuing & buying foreclosed properties

Challenges and Opportunities

Opportunities:

• Stabilization of neighborhoods

• Job creation and retention

• Support of green initiatives

• Create permanent supportive housing for special need groups

Presentation Outline

• Overview

• Implementation Strategy

• Challenges and Opportunities

• Additional NSP Activities

• Summary

Additional NSP Activities

– $7.0 million in NSP funds allocated

– Acquisition and rehabilitation of foreclosed rental housing for very low income households

• Issued a multi-family RFP for NSP

Additional NSP ActivitiesDemolition of blighted structures

Partnership with our Code Enforcement Division

Additional NSP ActivitiesCreated NSP Web Site

Additional NSP ActivitiesCreated NSP Web Site

Presentation Outline

• Overview

• Implementation Strategy

• Challenges and Opportunities

• Additional NSP Activities

• Summary

Summary

• NSP organizational structure in place

• Additional activities under way

• Addressing challenges and meeting milestones

• Potential expansion of the program through NSP II competitive grant

For More NSP Information:

www. ocfl.net/housing