Revision to the Down Payment Assistance Program (DPA) Funded by The State Housing Initiative Partnership (SHIP) Program

Presentation Outline Overview Housing Market Trends Downpayment Assistance Program Proposed Revisions to the Downpayment Assistance Program Action Requested

Presentation Outline Overview Housing Market Trends Downpayment Assistance Program Proposed Revisions to the Downpayment Assistance Program Action Requested

Overview State Housing Initiatives Partnership Program (SHIP) Established 1992 Funding source - Documentary Stamp Revenues 67 Counties and 48 Municipalities participate 5th Largest Recipient of SHIP Funds in the State Orange County received $5.2 million for Fiscal Year –And will receive $0 for FY

Overview State Housing Initiatives Partnership Program (SHIP) Activities Multi-Family Rehabilitation/Construction Single Family Rehabilitation/Construction Impact Fee Subsidy Down Payment Assistance

Presentation Outline Overview Housing Market Trends Downpayment Assistance Program Proposed Revisions to the Downpayment Assistance Program Action Requested

Housing Market Trends July 2007 Metro Orlando reached a record high median sales price of $264,436 May 2009 the median price of existing homes in Metro Orlando dropped to $130,000 The last time the median sales price was at this level was in 2002

Housing Market Trends Unit Availability 19,123 Total Listings in Orange County Source: Orlando Board of Realtors - MLS June 3, 2009

Presentation Outline Overview Housing Market Trends Downpayment Assistance Program Proposed Revisions to the Downpayment Assistance Program Action Requested

Downpayment Assistance Program First-time income eligible homebuyers Property must be located within Orange County excluding City Limits of Orlando Homebuyers are required to complete Homebuyer education class

Downpayment Assistance Program Current Levels of DPA Assistance Very Low Income$35,000 Low Income $30,000 Moderate Income$20,000

Average Down Payment Assistance Loan: $25,000 Average number of households assisted: 325 per year Current budget will be expended by early 2010 Downpayment Assistance Program

YearSHIP Allocations $5,840, $7,616, $7,688, $5,296, $0

Presentation Outline Overview Housing Market Trends Downpayment Assistance Program Proposed Revisions to the Downpayment Assistance Program Action Requested

Proposed Downpayment Assistance Program Current affordability level of housing market Reduction or elimination in SHIP Funding Doing more with less

Proposed Downpayment Assistance Program Staff recommendation to decrease DPA subsidies Conducted consultation with industry providers Affordable Housing Advisory Board (AHAB) approved the recommendation on May 27, 2009

Decrease the maximum level of assistance under the Down Payment Assistance Program Income LevelFromTo Very Low Income$35,000$25,000 Low Income$30,000$17,500 Moderate Income$20,000$ 5,000 Proposed Downpayment Assistance Program

Presentation Outline Overview Housing Market Trends Downpayment Assistance Program Proposed Revisions to the Downpayment Assistance Program Action Requested

Approval of a revision to the State Housing Initiative Partnership (SHIP) Program to decrease the level of assistance under the Down Payment Assistance Program (DPA).