1. Addressing the Foreclosure Crisis: Action Oriented Research in the Greater Atlanta Area Michael J. Rich Emory University mrich@emory.edu (404) 712-9691 Panel on How Urban Neighborhoods are Faring in the Foreclosure Crisis 39 th Annual Meeting of the Urban Affairs Association Chicago, IL March 7, 2009

2. Metropolitan Housing Conditions and Trends U.S. AverageAtlantaChicagoWashington, DC Population (000s, city/suburbs), 2007433/4,8392,738/6,785588/4,718 Poverty (%, 2007, city/suburbs)21/1020/816/6 Housing Units (000s) 2007 % chg/yr, 2000-07 127,895 1.4 2,113 3.6 3,752 1.2 2,133 1.7 Vacancy rate (%, 2007) Renters Owners 8.0 2.5 11.5 4.3 8.1 2.7 7.4 2.3 Homeownership (%, 2007) Total Minority 67 50 70 55 69 53 68 57 Housing Values Owner-Occupied, 2007 Avg. Gross Rent, 2007 278 878 260 909 325 920 521 1,282 Housing Prices (OFHEO Index) Q1/2000 – Q4/2006 Q4/2006 – Q2/2008 5.5 -5.9 2.5 -4.4 5.3 -5.5 11.5 -11.7 Housing Affordability Pay more than 30% income for housing Renters Owners 49 50 47 Hendey, Kingsley, Pettit, Metropolitan Profiles, 2008

3. Mortgage Market Conditions and Trends Hendey, Kingsley, Pettit, Metropolitan Profiles, 2008

4. Geopolitical Fragmentation GovernmentsNumber Counties28 Cities133 Special districts161 School districts36 TOTAL GOVERNMENTS358 Among 25 Largest Metro Areas: Local governments per 100,000 residents Atlanta ranks 15 th (3.5) Geopolitical fragmentation index Atlanta ranks 8 th Source: Myron Orfield, American Metropolitics. Source: U.S. Bureau of the Census, Census of Governments, 2002

6. The Foreclosure Storm

8. Regional Dimensions of the Foreclosure Crisis High Cost Mortgage Loans, 2004-2006Foreclosure Filings, May 2008

9. REO Properties, November 2008 Fannie Mae Listing Number of REOs REOs per square mile

10. Foreclosures and REOs No. of Foreclosure Filings per sq. mileNo. of REOs per sq. mile Source: Equity DepotSource: Fannie Mae

11. Foreclosure Filings per square mileREOs per square mile Foreclosures and REOs Source: Fannie Mae, November 2008Source: Equity Depot, May 2008

12. Forum Participants PublicPrivateNonprofit Atlanta Bureau of HousingFirst Service MortgageAtlanta Housing Association of Neighborhood-Based Developers Atlanta-Fulton Land Bank AuthorityGA Home Builders AssociationAtlanta Neighborhood Development Partnership Atlanta Regional CommissionInsights PlusAnnie E. Casey Foundation— Atlanta Civic Site DeKalb CountyJP Morgan ChaseAtlanta Legal Aid Fannie MaeMiller RealtyCharis Community Housing Federal Reserve Bank of AtlantaPRISM Realty ManagementConsumer Credit Counseling Services of Greater Atlanta Fulton CountySun Trust BankEnterprise Community Partners Housing Authority of Fulton Co.The Power GroupGA State Trade Association of Nonprofit Developers GA Dept. of Community AffairsWorkforce ResourceNeighborhood Assistance Corp. of America NeighborWorks America--AtlantaPittsburgh Community Improvement Association United Way of Metropolitan Atlanta

13. Forum Objectives Inventory of programs and services – Who, what, where, how Identification of dimensions of mortgage foreclosure crisis—how does it vary by place What data do we need to better understand the dimensions of the crisis and to better guide investments to address the crisis Is there interest in building a regional network for information sharing and fostering collaboration?

14. Activity/Programs:Who Is Involved? Operating or Planned/In Process? Foreclosure Counseling & Home Ownership Counseling, including: Loan Modifications Classes & Clinics Individual Sessions Atlanta Legal Aid, CCCS D&E, The Power Group, NACA RRC, The IMPACT! Group All Operating, ongoing Legal claims on behalf of borrowersAtlanta Legal AidOngoing Sound Reverse Mortgages for some senior home owners Atlanta Legal AidOngoing Financial Support for Foreclosure Housing Counseling NeighborWorks America Georgia DCA, DeKalb County Fannie Mae, SunTrust JP Morgan Chase / WaMu Ongoing Systems: Hope Hotline, Best Fit Program Professional Training for Housing Counselors NeighborWorks AmericaOngoing Pro-active outreach to delinquent homeowners SunTrust, Chase/WaMu Some other lenders not present Ongoing Clayton County Foreclosure Resource CenterD&E, CCCSOngoing Collaborations with servicers & housing counseling agencies to standardize the workout process. CCCS Ongoing and In Process Loan fund for distressed borrowers (limited)RRC Foreclosure Prevention Programs & Activities

15. Action / ProductChampion(s)Others Involved Opinion Paper re: Section 257 Hope for Homeownership (strategies for implementing NSP) Atlanta / Fulton County Land Bank Authority Studied & publicized the Tax Assessment processes and the Impact on neighborhoods and homeowners.ANDP Education on the laws and processes of foreclosure and bankruptcy. Atlanta / Fulton County Land Bank Authority Education of Foundations and Lenders on the issues and the Community Land Trust model Beltline Partnership Convening of Housing Counseling Agencies to discuss current issues DeKalb County Community Development Housing Counseling Agencies Formed a Think Tank/Collaborative on the Affordable Housing Delivery “system” and processes (effort calls out the need for capacity $ and subsidy $) Enterprise Community Partners CDCs Local governments Educate new players in distressed neighborhoods about the neighborhood culture, fabric, vision for its future. Educate Real Estate Community Pittsburg Community Improvement Association Other neighborhood-based CDCs DeKalb County Greater Atlanta Homebuilders Association Information, Systems & Collaborations

16. Action / ProductOrganization Involved Active of Planned/In Progress Will land bank properties for jurisdictions and then redeploy the asset. Atlanta / Fulton County Land Bank Authority Retooling Renaissance initiative coming to Atlanta and a Homeownership Preservation Office JP Morgan ChasePlanned Looking to rehab properties in affected neighborhoods AND recognize resident services, interests The Fuller CenterPlanned Mitigation of Foreclosure Impacts

17. Action / ProductOrganization Involved Active or Planned/In Process Homebuyer Education & Preparedness Requests for HBE are starting to grow. CCCS D&E RRC The IMPACT! Group Active Down payment Assistance DCA City of Atlanta DeKalb County Fulton County Active First Mortgages Note: Hope Now and FHA are not working! DCA ADA Lenders Active Web-based tool that integrates current info on down payment assistance and first mortgage products.Workforce-ResourceIn process Education targeted to help households start over post-foreclosure, bankruptcy CCCS D&E The IMPACT! Group Would like to expand property reclamation efforts SunTrust Fannie Mae Preparing the Neighborhood Stabilization Program (NSP) applications for HUD DeKalb County City of Atlanta Fulton County Property Reclamation & Household Recovery