STATE OF UTAH NEGHBORHOOD STABILIZATION PROGRAM 1

NSP – HISTORY On October 6, 2008, the Housing and Economic Recovery Act (HERA) was signed. The purpose of the Act was to assist in redevelopment of abandoned and foreclosed homes under the Neighborhood Stabilization Program (NSP). The state of Utah received $19.6 million for NSP. 2

NSP – PROGRAM REQUIREMENTS As a requirement of HERA, the funds must be obligated prior to September 10, counties were identified to be in greatest need of assistance, they are: Salt Lake, Utah, Davis, Weber and Washington. Properties acquired were required to be foreclosed or abandoned. 3

NSP – PROGRAM REQUIREMENTS A requirement of the Program is to use 25% of the total funds received for households that were at or below 50% Area Medium Income. $5 million of the State of Utah funds were used to meet this requirement. 46 housing units have been made available to households at or below 50% AMI. 4

NSP – PROGRAM REQUIREMENTS The remaining funds were used to acquire properties to provide housing to qualified home buyers that have an Area Medium Income of up to 120%. This new income group is defined as Low-, Moderate-, and Middle-Income households (LMMH) in NSP regulations. 5

INCOME ELIGIBILITY Income Eligibility for LMMH:  <= 50% = Low Income  50% - 80% = Moderate Income  80% - 120% = Middle Income 6

NSP – ELIGIBLE ACTIVITIES Activities chosen by the State of Utah  Purchase and Rehabilitate properties for re-sell/lease to qualified home buyers  Land Banking for future development  Redevelopment  Finance Mechanisms 7

NSP – REQUEST FOR PROPOSAL A Request for Proposal was solicited for organizations to assist the state in the administration of the funds. Criteria used to rate the proposals were:  Ability to administer the NSP regulations  Ability to partner with banks and other non-profits.  Ability to maximize the funding through leveraging. 8

NSP – REQUEST FOR PROPOSAL We received 3 qualified proposals. The contract was awarded to Utah Center for Affordable Housing (UCAH) 9

CRITICAL PARTNERSHIPS Additional partnerships:  Zions Bank – donated office space and the Executive Director’s salary. This allowed more funds to be used to acquire properties.  National Community Stabilization Trust (NCST) – provided “first look” of foreclosed properties. 10

NON-PROFIT PARTNERS Non-profits that UCAH partnered with:  Color Country in Washington County  SLC Housing  Rural Housing Development Corporation  Davis Community Housing  Road Home  Utah Housing  Neighborworks, Salt Lake  Neighborworks, Provo 11

AVAILABLE FUNDS (AS OF 3/31/14) Program Funds$19,600,000 Program Income$ 8,826,953 Total Funds Received$28,426,963 12

ADMINISTRATIVE ALLOCATION 13 State Admin - $392,000 UCAH Admin - $640,345 Admin Allowed 10% Admin Funds Allocated 4%

State Admin$392,000 UCAH Admin$640,345 Purchase and Rehab$18,143,816 Land Banking$6,535,353 Re-Development$793,380 Finance Mechanism$267,873 Program Income Unused$1,654,185 Total $ 28,426,952 *DATA AS OF MARCH 31, ACTIVITIES/FUNDING

NSP – HOUSING UNITS Housing Units Provided Single Family – 101 Multi Family – 61 Land Bank – 249* *Proposed Units *DATA IS AS OF MARCH 31,

DISTRIBUTION OF FUNDS BY HOUSEHOLD INCOME 16 At least 25% at 50% AMI

HUNTINGTON APARTMENTS PROVO, UT This foreclosed condo project was purchased from a banking consortium led by Bank of Utah. The property design was flawed and many of the bottom units of the three story building were uninhabitable due to water damage even though the building was only 18 months old. 17

HUNTINGTON APARTMENTS PROVO, UTAH The property is now fully leased. Three out of four families in The Huntington community make less than 50% of the area median income. Lease rates are about $350 lower than the market rents, enabling families to have quality housing at a very affordable price. 18

19 HUNTINGTON APARTMENTS PROVO, UT

ROCKWELL CONDOMINIUMS DRAPER, UTAH This 30 unit condominium complex and the 4 ground level retail spaces was purchased from the FDIC. The 12 acre development failed after only one buyer purchased a ground floor retail unit. When the project failed, construction halted, leaving all 10 of the fourth floor units incomplete. The fire suppression system had frozen causing water damage throughout the building. Tall weeds replaced a once well-manicured landscape within the sight of a major highway and the property exterior was an eyesore for Draper city residents. 20

ROCKWELL CONDOMINIUMS DRAPER, UTAH The developer was adamant about maintaining the finish quality of the 10 incomplete units during the rehabilitation process. Reasonable contractor bids for labor and materials allowed for a high level of finish in the remaining 10 units. Residents who call the Rockwell Condominiums home are proud of their high quality residences. 21

22 ROCKWELL CONDOMINIUMS DRAPER, UTAH

23 ROCKWELL CONDOMINIUMS DRAPER, UTAH

24 ROCKWELL CONDOMINIUMS DRAPER, UTAH

WEST VALLEY CITY LAND BANK DEVELOPMENT High School students were put to work under the supervision of local licensed contractors as they learned how to lay concrete, frame walls, hang sheetrock, install cabinets, wire, and plumb. Cabinets that were custom-built in a high school shop were transported to the home just prior to completion. 25

26 WEST VALLEY CITY LAND BANK DEVELOPMENT

CANYONS CROSSING MIDVALE LAND BANK DEVELOPMENT $3 million of NSP funds were used to purchase nine acres of land. An additional$33,000 million is being infused for the development costs. Construction has started on Canyon Crossing, a 180 unit 4% LIHTC affordable housing property. The property is expected to generate $250,000 in annual cash flow. 27

CANYONS CROSSING MIDVALE LAND BANK DEVELOPMENT Innovative energy solutions are being built into Canyon Crossing with geo-thermal technology for the heating and cooling of the units. Each building will have a boiler to heat the individual units; high energy efficient doors and windows will be installed; and the buildings are oriented so that they are not as impacted from the summer sun heating the units. The anticipated average monthly utility bill per unit is $25. 28

BeforeGeo-Thermal Drilling 29 CANYONS CROSSING MIDVALE LAND BANK DEVELOPMENT

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SINGLE FAMILY ACQUISITION & REHABILITATION The State connected non-profit housing organizations with UCAH to connect eligible home buyers to the program to enable them to purchase the properties. This was a challenge since home buyers were required to qualify for a mortgage loan, but at the same time, not exceed specific income limits. The solution was an additional partner in the form of a credit union that developed a special mortgage program for this segment resulting in all of the units being sold to eligible homebuyers. 31

Before After 32 SINGLE FAMILY ACQUISITION & REHAB PROVO, UTAH

Before After 33 SINGLE FAMILY ACQUISITION & REHAB PROVO, UTAH