Division of Community Development FY2016 CAC Presentation

Low Interest Loan Program $100,000

Repair, Accessibility, Maintenance Program (RAMP) $100,000

Weatherization $70,000

FY2016 CDBG Funding Requests

Investing in Lakewood’s Housing Stock

Division of Community Development FY2016 CAC Presentation

12217 Plover HOME Rehab - Before

12217 Plover HOME Rehab - After

Strategy for Identifying Community Need

Adjust Programming to Economic Conditions

• Foreclosure rates• Property values• Unemployment • Housing condition

Adjust Programming to Individual Homeowner Financial Circumstances

• Bankruptcy• Job loss• Under-employment• Illness• Disability• Retirement

Division of Community Development FY2016 CAC Presentation

Incorporate Energy Efficiency & Sustainable Building Practices

Application

Inspection

Loan Approval

Pre-Construction Meeting

Construction

Low Interest Loan Program FY2016 CAC Presentation

- 0% Deferred Loans for low income seniors & disabled homeowners- 3% Financing for moderate income- 5% Financing for rental homes with low and moderate income tenants

Low Interest Loan Program FY2016 CAC Presentation

Lakewood’s Low Interest Loan Fund has Contracted by 28% Since 2010

• Paid in full loans have outpaced new loan set ups

• Loans are generally smaller and focus on basic repairs(roof, paint, porches)

• Market conditions including foreclosure, loss of equity, and job loss significantly reduced the pool of eligible borrowers

• Deferred loans comprise an ever-larger % of total portfolio

• Grant programs like RAMP are being utilized to bridge the financial gap for “underwater” homeowners

• Targeted mailings

• Coordination with the Building Department

• Application management & data collection through WEBQA

• Increased accountability placed on contractors to meet City & Federal requirements• Contractor Registration with Building Department• Permits• Proper licensure

• Credit counseling tied to credit scores below 600

• Home Improvement Grant funded as a stand alone program - $50,000 moved from Property Revitalization

Low Interest Loan Program FY2016 CAC Presentation

• Eligibility Requirements• Owner occupied 1, 2 & 3 family homes• Income restrictions

• Homeowner completes exterior repairs

• Exterior compliance inspection by Code Compliance Specialist (CCS)

• 50% up to $10,000 available – grant funding

Home Improvement Rebate FY2016 CAC Presentation

Completed Projects Year Rebates ($)

Homeowner Out-of-Pocket

5 2014 $17,601 $47,5994 2015 $6,799 $13,598

Repair, Accessibility, Maintenance Program (RAMP) FY2016 CAC Presentation

• Exterior maintenance

• Low & moderate income owner occupants

• Limited assets and home equity (<$25,000)

• Grants for projects less than $5,000

• Forgivable loans for projects between $5,000 & $15,000

• Must occupy home for 5 years or repay funds

• Rental properties – eligible for accessibility improvements only

• Match for Lead Safe Cuyahoga Grant Program

FY2016 CAC Presentation

Source: Cuyahoga County Common Pleas Court Docket

Market Conditions – 44,107 Foreclosure Filings

Repair, Accessibility, Maintenance Program (RAMP) FY2016 CAC Presentation

• 2-family Colonial• Built in 1905• Vinyl Siding

Repair, Accessibility Maintenance Program FY2016 CAC Presentation

Planning for the future with sustainable construction practices……

Weatherization FY2016 CAC Presentation

• Bridge gap for homeowners not eligible for County program

• Energy audits used to identify repairs with highest rate of return• Insulation• Sealing windows and doors• High efficiency furnace

• Maximum assistance - $5,000 grant

• Reduces energy consumption and costs

• Meet’s HUD’s 2014 – 2018 Strategic plan goals• Reduce energy consumption by half by 2030• Green & healthy homes

Weatherization FY2016 CAC Presentation

Weatherization FY2016 CAC Presentation

Nine projects completed since 2014

Average energy savings:• Annual - $1,800• Monthly - $150

50 – 60 % reduction in energy use

Average ROI – 5 years

Most projects fall between $5,000 and $10,000

Air sealing, insulation net greater savings than new windows

Program Results

HOME Program FY2016 CAC Presentation

1st Time Homebuyer Program• Online homebuyer seminar & quiz• Low and moderate income buyers• Condos, one and two family homes• Down payment and closing cost

assistance• Single family homes up to $128,000• 2-family homes up to $148,000

HOME Program FY2016 CAC Presentation

Market Trends – Home Values

Source: Zillow

HOME Program FY2016 CAC Presentation

Acquisition, Rehab & Resale2126 Quail - SOLD

2126 Quail transfer history:• $132,640 – 2008 Foreclosure• $36,950 – Fannie Mae to private buyer• $56,850 – Transferred to City of Lakewood• $90,000 – 2015 Post rehab sale to low/mod buyer

HOME Program FY2016 CAC Presentation

2147 Dowd Rehab

• Formerly 4 suite rental• Foreclosed upon in 2013• Energy efficiency

• Insulation• Rain barrels• Solar panels

• Spring, 2016 sale to low-mod household.