Neighborhood Stabilization Program (NSP) Update February 16, 2010.

Neighborhood Stabilization Neighborhood Stabilization Program (NSP) UpdateProgram (NSP) Update

February 16, 2010

Presentation OutlinePresentation Outline

• Overview

• Program Implementation

• Marketing Strategy

• Additional NSP Activities

• Summary

Presentation OutlinePresentation Outline

• Overview

• Program Implementation

• Marketing Strategy

• Additional NSP Activities

• Summary

OverviewOverview

• NSP created by the Housing and Economic Recovery Act of 2008 to respond to rising residential foreclosures and property abandonment.

• Orange County allocated $27.9 million

• Board of County Commissioners approved the County’s NSP Plan on November 18, 2008.

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

OverviewOverview

NSP Eligible Activities:

• Acquisition, rehabilitation, sale of foreclosed homes

• Acquisition, rehabilitation of foreclosed rental properties

• Demolition of abandoned, blighted properties

• Redevelopment of demolished or vacant properties

• Downpayment and closing cost assistance for Homebuyer

OverviewOverview

OverviewOverview

Significant 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

Presentation OutlinePresentation Outline

• Overview

• Program Implementation

• Marketing Strategy

• Additional NSP Activities

• Summary

Program Implementation Program Implementation Internal NSP TeamInternal NSP Team

Property Acquisition

Housing Rehabilitation

Marketing &Qualifying

Fiscal

Purchasing Division

Real Estate Division

Housing and Community Development DivisionMitchell Glasser, Manager

Frantz Dutes, Assistant Manager

CountyAttorney’s

Office

Program ImplementationProgram Implementation

External Partners • Orlando Regional Board of Realtors• Mortgage Brokers and Financial Institutions• Vendors:

• Contractors and trades• Appraisers• Surveyors• Title Companies

• Progress Energy (Energy saving audits)

Program ImplementationProgram Implementation

Sources for foreclosed properties:

• Multiple Listing Service

• Fannie Mae

• National Community Stabilization Trust

Program Implementation Program Implementation Option A:Option A: County Initiated Acquisition 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 ImplementationProgram Implementation Option A:Option A: County Initiated AcquisitionCounty Initiated Acquisition

• Buyers must be pre-qualified by lender.

• Buyers must have a realtor represent them.

• Available properties advertised in Multiple Listing Service and Orange County’s NSP web site.

Program ImplementationProgram Implementation Option A:Option A: County Initiated AcquisitionCounty Initiated Acquisition

Buyer Incentives:

• $20,000 Moderate

• $30,000 Low

• $35,000 Very Low

• Closing Costs paid by Orange County

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

• 15 year non-amortized mortgage note at 0% interest

Program ImplementationProgram Implementation Option B:Option B: Realtor Initiated PurchasesRealtor 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.

Program ImplementationProgram Implementation Option B:Option B: Realtor Initiated PurchasesRealtor Initiated Purchases

Buyer Incentives:

• Up to $35,000 down payment assistance to qualified buyers

• Closing costs paid by Orange County

• Buyer contributes 1.75% of contract price

Program ImplementationProgram ImplementationPerformance: AcquisitionPerformance: Acquisition

Properties acquired Option A 61

Properties acquired Option B 55

Properties under contract 19

Total number of homes 135

Expenditures Year to date

Total: $9,615,632

Program ImplementationProgram ImplementationPerformance: RehabilitationPerformance: Rehabilitation

Properties Completed 7

Under Construction 19

Out To Bid 6

Total Homes 32

Program ImplementationProgram ImplementationPerformance: SalesPerformance: Sales

Homes available for sale 7

Homes sold 2

Homes under contract 4

Presentation OutlinePresentation Outline

• Overview

• Program Implementation

• Marketing Strategy

• Additional NSP Activities

• Summary

Marketing StrategyMarketing Strategy

• Active NSP web site

• Access to Multiple Listing Service

• NSP for sale sign with home information flyers

MarketingMarketingStrategyStrategyActiveActiveNSP Web SiteNSP Web Site

www.OCFL.net/NSP

MarketingMarketingStrategyStrategyActiveActiveNSP Web SiteNSP Web Site

www.OCFL.net/NSP

Marketing StrategyMarketing StrategyAccess to Multiple Listing ServiceAccess to Multiple Listing Service

Marketing StrategyMarketing StrategyNSP For Sale Sign with Home Information FlyersNSP For Sale Sign with Home Information Flyers

Presentation OutlinePresentation Outline

• Overview

• Program Implementation

• Marketing Strategy

• Additional NSP Activities

• Summary

Additional NSP ActivitiesAdditional NSP Activities

• $7.0 million in NSP funds and $1,000,000 in SHIP funds allocated

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

Issued a multi-family RFP for NSP

Additional NSP ActivitiesAdditional NSP ActivitiesDemolition of blighted structuresDemolition of blighted structures

Partnership with our Code Enforcement Division

Presentation OutlinePresentation Outline

• Overview

• Program Implementation

• Marketing Strategy

• Additional NSP Activities

• Summary

SummarySummaryComparativeComparative Performance ReviewPerformance Review

GranteeGrant

Amount Expenditure

Brevard County $ 5,269,667 0

Hillsborough County 19,132,978 $1,297,401

Jacksonville-Duval 26,175,317 2,700,162

Orange County 27,901,773 9,615,632

Orlando 6,730,263 245,283

Seminole County 7,019,514 3,129,437

Tampa 13,600,915 621,058

SummarySummaryPerformance ReviewPerformance Review

Expenditure Deadline: August 3, 2010

Grant Amount $27,901,773

Obligations 3,687,177

Expenditures to Date 9,615,632

Remaining Balance 14,598,964

Without RFP

SummarySummary

• Stabilizing neighborhoods

• Creating and retaining jobs

• Supporting green initiatives

For More NSP Information:For More NSP Information:

www. www. OCFL.net/NSPOCFL.net/NSP