Neighborhood S tabilization Program Pres entation Overview - - PowerPoint PPT Presentation

Neighborhood S tabilization Program

“ “The Power of Community The Power of Community” ”

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

Background Information

“ “The Power of Community The Power of Community” ”

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

• As

S

• on As

Pos 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

• Credit Worthy

– Credit S core Above 660 – No Foreclos ures

• r Defaults
• Hous

ing Couns eling

$66,700 $60,050 $53,400 $46,700

<1 20% AMI 4 3 2 1 Family S ize

Palm Coas t Targeted

• Number of Foreclos

ures 2006-2008 2,053 foreclos ures

• f 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

Foreclos ures

Foreclos ures

Neighborhood S tabilization Program

“ “The Power of Community The Power of Community” ”

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

• ft S

econd Mortgage – 0% Interes t Rate, 1 0% Forgiven/Yr.

Citizen Participation and Timeline

“ “The Power of Community The Power of Community” ”

Citizen Participation

• Tonight’s

Public Works hop

• A Citizens

Advis

• ry 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

Opportunities for Bus ines s es /Not-for-Profits

“ “The Power of Community The Power of Community” ”

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

Other Related Efforts

“ “The Power of Community The Power of Community” ”

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

Neighborhood S tabilization Program

“ “The Power of Community The Power of Community” ”