Presentation Outline

Presentation Outline • Background • NSP Plan Requirements • Orange County NSP Plan • NSP Implementation Strategies • Timeline • Action Requested

Background • The Housing and Economic Recovery Act of 2008 created the Neighborhood Stabilization Program (NSP) to respond to rising residential foreclosures and property abandonment. • The Act provides $3.9 billion for emergency assistance to states and local governments for redevelopment of abandoned and foreclosed homes. • Orange County was allocated $27.9 million.

Background • NSP funds are considered a special allocation under the Community Development Block Grant (CDBG) Program. • Grantees must submit a substantial amendment to their FY 2008-2009 CDBG Annual Action Plan to incorporate the NSP plan. • There is an 18-month timeline to commit or expend the funds.

NSP Plan Requirements • Identify geographic areas of greatest need using: • Number of home foreclosures • Number of homes financed by subprime mortgages • Areas likely to face a significant rise of foreclosures

NSP Plan Requirements 2. Describe the activities to be undertaken 3. Describe the use of funds 4. Establish acquisition and resale requirements • Minimum discounts to be used for purchases • Maximum sales price of homes

NSP Plan Requirements 5. Establish Income Requirements • The program must serve families making up to 120% of the areas median income (AMI) (Example: $71,040 for a family of four) • Twenty five percent (25%) of the funds must serve families at or below 50% AMI (Example: $29,600 for a family of four)

Orange County NSP Plan Identifying Areas of Greatest Need Source: Realty Trac, records from 2006-Sept. 30, 2008

Orange County NSP Plan Selected NSP Target Areas • Meadow Woods • Pine Hills • Azalea Park • Holden Heights/Oak Ridge • Union Park

Orange County NSP Plan Activities to be undertaken • Acquisition, rehabilitation and sale of homes that have been abandoned or foreclosed upon • Acquisition and rehabilitation of foreclosed properties for rental housing • Demolition of blighted properties • Redevelopment of demolished or vacant properties • Financial Mechanisms for homeownership activities

Orange County NSP Plan Program Budget

NSP Implementation Strategies • Housing and Community Development Division will be lead agency • Develop internal policies and controls • Delineate scope of work with participating agencies and organizations • Select primary partners (Non-profit housing development agencies)

NSP Implementation Strategies Selection Criteria for Nonprofit Housing Development Agencies: • Public Purpose Mission • Housing Development/Rehabilitation Experience • Agency Capacity • Financial Stability • Accountability • Agreements to be Approved by BCC

NSP Implementation Strategies Other Partners: • Realtors will assist with finding qualified buyers • Lenders will provide first mortgages • Contractors and sub-contractors will participate in the rehabilitation, redevelopment work • Housing counseling agencies will provide mandatory housing counseling • Banks, foundations and community partners are potential sources for additional leveraging opportunities

NSP Implementation Strategies Accountability • On-going monitoring • Monthly meetings with staff and participating agencies • Quarterly reports to HUD • Interim reports to BCC

NSP Implementation Strategies Staffing • Two additional positions are needed to support the NSP Program: • 1 Rehabilitation Specialist • 1 Realtor / Mortgage Specialist

Timeline

Action Requested Approval of an Amendment of the 2008-2009 Annual Action Plan to include the Neighborhood Stabilization Program; approval of all required Certifications and Applications for Federal Assistance; and approval of two additional positions to support the Neighborhood Stabilization Program.

Presentation Outline