Neighborhood Stabilization Program

1. Neighborhood Stabilization Program

2. Neighborhood Stabilization Program Purpose • To stabilize communities impacted by high foreclosure rates. • To provide relief to lending institutions to reduce inventory of foreclosed properties. • To preserve and extend life of housing stock • To provide affordable housing opportunities for low to moderate income customers.

3. NSP Funding Available To Alachua County • $1.4 Million to Regular Allocation • $1.5 Million for Supplemental Allocation • $2.9 Million Total • Regular Allocation: Acquire, rehab, resale • Supplemental Allocation: rental only

4. Alachua County Neighborhood Stabilization Program is aligned with…

5. County Policies, Goals, and Objectives established in… County Commission Guiding Vision Housing Element of the Alachua County Comprehensive Plan

6. Alachua County Neighborhood Stabilization Program is Governed By:

7. Federal NSP Regulations • HERA of 2008 • Federal Register Notices • NSP Policy Alerts • NSP Resource Exchange • Existing Federal CDBG Regulations • Existing OMB Circulars

8. Key HUD Requirements • Funds must be obligated by September 2010 • Homes must be sold to low to moderate income families. • Rental homes for very low income families compulsory. • Minimum Purchase discount required (1%) • Define target areas based on HUD’s data base. • Units must meet definition of “foreclosed.” • Established program delivery options: • subgrantee, sub recipient, or developer model

9. State of Florida NSP Regulations ● DCA Substantial Amendment to HUD Plan (2) ● Executed Agreement with DCA ● Technical Memorandums ● Existing State of Florida CDBG regulations ● Periodic webinars and conference calls

10. Local NSP Regulations… • County NSP Housing Assistance Plan Adopted March 2009, May, August 2010 • County NSP Property Conveyance Ordinance: Adopted November 23, 2010 • County Procurement Policies • Finance and Accounting Policies

11. Neighborhood Stabilization Program Requirements Acquire foreclosed properties at no more than 99% of appraised value in designated zip codes. Homes must be vacant for at least 90 days. May not exceed County’s maximum purchase price. Purchase of any homes more than 50 years old must be pre-approved by SHPO. Must meet all environmental review requirements

12. Acquisition of NSP Homes • NSP Community Kick-Off Meeting • State and Federal Relief from Red Tape • Board Action Related to Acquisition • Authorized County Manager’s office to enter into real estate contracts to purchase NSP homes. • Increased maximum purchase price and allowed acquisition of short sale properties for ACHA.

13. Property Acquisitions Chart

14. Neighborhood Stabilization Program Renovation • Units must meet minimum housing requirements • Energy efficient improvements i.e. Energy Star appliances, windows, and doors required. • Marketability expenses allowed : • Exterior painted • Interior walls painted • Environmental Issues must be addressed i.e. • Lead Based Paint Inspections/Mitigation/Clearance • Mold and mildew Inspections/Mitigation/Clearance

15. Neighborhood Stabilization Program Exterior Home Repair Challenges

16. Neighborhood Stabilization ProgramInterior Home Repair Challenges

17. Neighborhood Stabilization Program Resales • Asking Price based on post rehab appraisal. • Purchase price may not include disposition costs. • Sold to low to moderate income homebuyers. • HUD Certified Homebuyer Education Class required. • Lending requirements for 1st mortgage. • Homes are advertised and conveyed per NSP Ordinance. • Full price offers received on first 4 homes For Sale. • Soft second mortgage assistance available. • Buyer must obtain licensed realtor of their choice. • Sale proceeds used to renovate and buy more homes.

18. Neighborhood Stabilization Program Rental Properties Alachua County Housing Authority a. Six homes were selected by ACHA. b. Very low income renters. c. Must be permanent, affordable rental housing for 15 years. Request for Proposals Five rental homes made available to not for profit via RFP.

19. Alachua County Neighborhood Stabilization Program Economic Impact $562,226 in construction contracts awarded to Alachua County and North Central FL area contractors. $102,845 in real estate commissions Multiplier effect of real estate transactions

20. Alachua County Neighborhood Stabilization Program

21. NSP 3 Program Designated Target Area

22. NSP 3 Program Design Options • Maximum Acquisition Price • Maximum Awards for Soft Second Mortgages • Energy Conservation Standards • Bid Acceptance • Minimum Buyer Contribution • Participation in First Look Program

23. NSP 3 Program Design Options Maximum Acquisition Price Original: $125,000 Current: $155,000 Staff Recommendation: $110,000 Board Direction

24. NSP 3 Program Design Options • Maximum Resale Soft Second Mortgages • Current • $10,000 Moderate Income Buyer • $20,000 Low Income Buyer • $30,000 Very Low Income Buyer • Staff Recommendation: No change • Board Direction

25. NSP 3 Program Design Options • Energy Conservation Standards • Current Requirements • Energy Star Doors, Windows, Appliances • R-30 Insulation where feasible • Seer rating of 15 for electric heat pump units. Staff Recommendation: Retain requirements Board Direction

26. NSP 3 Program Design Options • Bid Acceptance • Current • Bids will generally be recommended to be awarded to the lowest responsible bidder within plus or minus fifteen percent (15%) of the cost estimate. • Recommendation: Retain policy • Board Direction

27. NSP 3 Program Design Options • Current Minimum Buyer Contribution • Very low-income $500.00 • Low income $1,000.00 • Moderate $1,500.00 • Staff Recommendation: Retain policy • Board Direction

28. NSP 3 Program Design Options • Participation in First Look Program • Current: Alachua County has not participated in Fannie Mae Program which allows NSP recipients to buy homes before being listed on MLS. • Staff recommendation: None • Board Direction

29. NSP 3 Program Design Options • Staff Recommendation: Approve NSP 3 Housing Assistance Plan as amended