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

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

4 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 CDBG Annual Action Plan to incorporate the NSP plan. There is an 18-month timeline to commit or expend the funds.

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

NSP Plan Requirements 1.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)

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

Orange County NSP Plan Identifying Areas of Greatest Need Foreclosure Activity in Orange County Pre-foreclosures1,3802,5178,359 Auctions Bank Repo804841,676 Total Actions1,5753,75610,524 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 ACTIVITIESAMOUNT Acquisition of Single Family Properties14,000,000 Rehabilitation of Single Family Properties1,500,000 Demolition of Blighted Properties250,000 Acquisition of Rental Properties3,000,000 Rehabilitation of Rental Housing1,000,000 Redevelopment of Residential Housing1,064,596 Financing Mechanisms4,400,000 Program Delivery Costs897,000 Administration1,790,177 GRAND TOTAL27,901,773

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

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

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

Timeline DateAction By December 1, 2008 Orange County must submit to HUD the amendment to the CDBG Annual Action Plan to include the NSP Plan On or about January 15, 2009 Execute grant agreement with HUD On or about July 15, 2010 Funds must be committed or expended On or about July 30, 2013 Program income returned to Treasury

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

Approval of an Amendment of the 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.