Neighborhood S tabilization Program Pres entation Overview - PowerPoint PPT Presentation

“The Power of Community The Power of Community” ” “ Neighborhood S tabilization Program

Pres entation Overview • Background Information • Neighborhood S tabilization Program • Citizen Participation and Timeline • Related City Efforts • Opportunities for Bus ines s es /Not-for-Profits

“The Power of Community The Power of Community” ” “ Background Information

Federal Legis lation • Hous ing and Economic Recovery Act, 2008 – S igned by Pres ident Bus h on J uly 30, 2008 – Allocated $3.92 billion through Community Development Block Grants (CDBG) for Neighborhood S tabilization Program (NS P) to s tate and local governments • American Recovery and Reinves tment Act – Additional $2 billion for NS P

Purpos e • Reduce Bank-Owned Inventory • S tabilize Home Values and Neighborhoods • Get Families /Individuals into Homes • Benefit Qualified Families /Individuals • A s S oon A s P os s ible • NOT Foreclos ure Prevention Program

S tate Allocation • S tate of Florida was allocated $91 million • Identified 26 communities for funding, including the City of Palm Coas t • Allocations Identified for the City – Regular Allocation = $2,1 77,980 – S upplemental Allocation = $486,923

Qualified Individuals /Families • AMI = Area Median Income • Qualified Families /Individuals = Les s than 1 20% AMI Family S ize 1 2 3 4 <1 20% AMI $46,700 $53,400 $60,050 $66,700 • Credit Worthy – Credit S core Above 660 – No Foreclos ures or Defaults • Hous ing Couns eling

Palm Coas t Targeted • Number of Foreclos ures 2006-2008 2,053 foreclos ures of 21 ,382 mortgages = 9.6% • High Unemployment Rate = 8.3% (1 1 .7%) • High Cos t Mortgages 2006-2008 = 26.5% • Decline in Home Prices 2006-2008 = 21 .1 % Department of Hous ing and Urban Development, November 2008

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“The Power of Community The Power of Community” ” “ Neighborhood S tabilization Program

NS P Program • Activities will be carried out through contracts with private/public/not-for-profit (competitive proces s ) • Funds mus t be S pent within 1 0-1 8 months • Monitoring and Reporting • Long-Term Affordability • Compliance with Federal/S tate Laws – Environmental – Uniform Relocation Act – Fair Hous ing Act – Davis Bacon – Conflict of Interes t • Regular vs . S upplemental Allocation

Eligible NS P S trategies • Acquis ition, Rehabilitation, and Res ell • Hous ing Finance As s is tance • Es tablis hing Land Banks • Demolition and Clearance/Hous ing Redevelopment • Acquis ition, Rehabilitation, and Leas e to Low Income Individuals /Families

Acquis ition/Rehabilitation/Res ell to Individuals /Families • Minimum 1 5% Purchas e Dis count • Rehabilitation mus t meet federal/s tate/local codes and be “green” • Benefit Qualified Individuals /Families – Credit Worthy – Les s than 1 20% AMI – Undergo Hous ing Couns eling • Maintain Long-Term Affordability

Hous ing Finance As s is tance • Down-Payment As s is tance and/or Gap Financing for Foreclos ures • Benefit Qualified Individuals /Families – Credit Worthy – Les s than 1 20% AMI – Undergo Hous ing Couns eling • Maintain Long-Term Affordability

Example $80,000 Foreclos ed Home Purchas e + $40,000 Rehabilitation Cos ts $1 20,000 Total $1 00,000 Buyer Traditional Mortgage $20,000 Hous ing Finance As s is tance – S oft S econd Mortgage – 0% Interes t Rate, 1 0% Forgiven/Yr.

“The Power of Community The Power of Community” ” “ Citizen Participation and Timeline

Citizen Participation • Tonight’s Public Works hop • A Citizens Advis ory Tas k Force (CATF) will meet to review and provide input on the Local Hous ing As s is tance Plan (LHAP) for the Program • Check City of Palm Coas t Webs ite • LHAP Public Comment Period

Timeline • February 25, 2009 – Public Works hop • March 9 - 1 3, 2009 – CATF Meetings • March 1 4 – 30 – Public Comment Period • March 31 , 2009 – City Council Works hop/ S pecial Meeting • April 6, 2009 – Application Due • May – J an 201 0 - Implementation

“The Power of Community The Power of Community” ” “ Opportunities for Bus ines s es /Not-for-Profits

Opportunities for Bus ines s es / Not-for-Profits • Program Management Cons ultant • Property Developers • Apprais al and Valuation S ervices • Title & Clos ing S ervices • Environmental Engineers • Cons truction Management • Hous ing Couns elors • Builders /Contractors • Real Es tate S ervices

Bid Proces s • Competitive Bidding Proces s • No Local Preference Allowed (Prohibited by Federal and S tate Guidelines ) • May Bid on One or More S ervices • Each Bid for S ervice will be Evaluated Individually • Pre-Bid Meeting March 1 3, 2009 (Optional) • Ranking/Contract will be Forwarded to City Council for Final Approval

“The Power of Community The Power of Community” ” “ Other Related Efforts

Other Related Efforts • Ens uring that Banks Maintain Foreclos ed Properties – Adopt International Property Maintenance Code (April/May) – Adopt Foreclos ure Regis tration and Maintenance Ordinance (April/May) Includes requirements for banks to des ignate local agent, regis tration fee, ins pections , and citations

“The Power of Community The Power of Community” ” “ Neighborhood S tabilization Program