Addressing the Foreclosure Crisis in Fairfax County: Fairfax County Department of Housing and Community Development Presentation to: Regional Foreclosure Summit June 19, 2008

 3,518 foreclosures occurred in the first quarter 2008 in Fairfax County  Fairfax County foreclosures appear to be clustered in specific areas of the County, which include Springfield, Herndon, Centreville, and the Route 1 Corridor

2727 Properties 1907 Properties

Increased levels of foreclosures can result in:  Depressed property values  Deferred property maintenance  Higher levels of crime  Depressed property sales

Fairfax County Vacant & Foreclosed Home Effort - Structure Logistics Public Works Operations Administration CommunicationsLiaison Task Force Leader Deputy County Executive Planning Code Enforcement Housing Initiatives Law Enforcement Tax Admin. Situational Report Documentation Technical Specialists Human Services IT/Info Systems Legislative EDA & Revitalization Human Rights Prosecution Vacant Home Monitoring

Housing Initiatives: Three-pronged Approach  Assistance to Homeowners in Distress  Silver Lining Initiative  Neighborhood Preservation Efforts: Direct Strategic Purchase and Neighborhood Appearance and Safety

Assistance to Homeowners in Distress  Counseling to troubled homeowners  HCD will certify foreclosure counselors through VHDA  HCD and other County agencies will assist VHDA in counseling households at risk of foreclosure  HCD will train a network of counselors  Counseling will an emphasize assisting the homeowner to connect with their lender or other resources for loan workouts

Assistance to Homeowners in Distress Targets  Network of 50 trained foreclosure counselors  400 families to be counseled

Silver Lining Initiative  Take advantage of lower-cost housing to assist first-time homebuyers  Assist first-time homebuyers purchase a foreclosed home through an affordable first trust and shared equity second trust  Provide home improvement loans for renovations  Over time, the County will be repaid the loans and will share in increasing equity  Limited to detached single family and townhouses  Maximum price of $385,000

Silver Lining Initiative Priority for the program will include:  First-time Homebuyers Program waiting list  Fairfax County Government and School Employees  HCD residents ready for homeownership  Others

Silver Lining Initiative Targets  100 homebuyers: 60 with incomes below 80% AMI and 40 workforce with incomes between % AMI

Neighborhood Preservation Efforts: Direct Strategic Purchase  Purchase up to ten foreclosed homes where the house is abandoned, deteriorated or otherwise a blight on the neighborhood  Home will be resold to first-time homebuyer  Direct CHDO funds to assist non-profits to purchase foreclosed homes  Home will be rented as affordable housing

Neighborhood Preservation Efforts: Appearance and Safety  Providing home improvement loans to assist existing homeowners maintain their properties to code