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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
