lelia w. allen, director housing and community development june 19, 2008

Lelia W. Allen, DirectorHousing and Community

DevelopmentJune 19, 2008

How Bad Is It?13th in nation*Orange County: 70 filings per day30% proceed into foreclosureMay 2008 report: 258 in Orlando city limits

*Orlando Sentinel – June 8, 2008

Who is Impacted?New Middle Income HomeownersLong Term Lower Income HomeownersInvestorsRenters

•Erosion of Property Standards•Declining Property Values

Florida Amendment 1

Florida Amendment 1Amendment 1 is a constitutional amendment,

which among other things, addresses the assessment of property taxes by the state

Amendment 1 passed on January 29, 2008

Amendment 1 contained four (4) main provisions

Florida Amendment 1Doubles the existing homestead exemption

from $25,000 to $50,000Save Our Home is maintained and increased

up to $500,000Creates a new exemption for the first

$25,000 of assessed value for tangible personal property (rental property)

Put a cap of 10% per year on how much the assessed value of non-homestead property can increase

•More stringent underwriting in the Downpayment Assistance Program •Expand housing counseling services•Provide Financial Assistance•Enforcement of Code Violations•Education

City of Orlando’s Response• Understanding the Process• Identifying the

options• Identifying local resources

The PartnershipMortgage Counseling and Credit CenterFreddie MacHUDLegal AidLocal HUD approved housing counseling

agenciesLocal Lenders

•Approximately 200 attendees•Approximately 40 loan workouts with lenders•City financing used to bring 4 loans current

•Continue relationship with lenders and housing counseling agencies for educating residents•Work with homeowner associations to monitor property standards•Use code enforcement powers to improve property when necessary