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NeighborWorks ® America. Neighborhood Stabilization Program. Agenda. Overview of the Neighborhood Stabilization Program I (NSP I) NSP I Examples Summary of Neighborhood Stabilization Program II (NSP II) Discussion. NSP I Created by the Housing and Economic Recovery Act (HERA) of 2008 - PowerPoint PPT PresentationTRANSCRIPT
NeighborWorksNeighborWorks®® AmericaAmerica
Neighborhood Stabilization
Program
AgendaAgenda• Overview of the Neighborhood Stabilization Program I (NSP I)• NSP I Examples• Summary of Neighborhood Stabilization Program II (NSP II)• Discussion
NSP ICreated by the Housing and Economic Recovery Act (HERA) of 2008• $3.92 billion in one-time grants to states, cities and counties (nonprofits not eligible)• Needs-based formula allocation• Based on Community Development Block Grant (CDBG) program: HUD administers it
NSP IINSP IIAdditional $2 billion allocated in the American Reinvestment and Recovery Act (ARRA) of 2009
• Will be a competitive application process
• Nonprofits can apply • HUD to release guidelines in May
NSP I RequirementsNSP I RequirementsIntent is to help stabilize neighborhoods affected by foreclosure.
Jurisdictions had to target funds to “areas of greatest need”.
Minimum of 25% of funds must be used to create housing for <50% AMI; all housing to benefit < 120% AMI.
NSP I Requirements NSP I Requirements (Cont.)(Cont.)No more than 10% for
administration.Foreclosed properties must be
purchased at a discount (min. 5% up to 15%).
NSP I Eligible UsesNSP I Eligible UsesA. Establish financing mechanisms for purchase and redevelopment of foreclosed homes.B. Purchase and rehabilitate properties that have been abandoned or foreclosed upon. C. Establish and operate land
banks for homes and residential properties that have been foreclosed upon.D. Demolish blighted structures.E. Redevelop demolished or vacant properties.
NSP I TimelineNSP I TimelineJurisdictions filed final Action
Plans in February, 2009.HUD approvals followed later in
February.Jurisdictions have 18 months
after HUD approval to obligate funds.
Funds not obligated w/in 18 months may be recaptured and re-allocated by HUD.
NSP I Examples
CaveatsCaveatsJurisdictions have just started to implement their programs
Few results available yetConsider these “emerging practices”
All these jurisdictions have other NSP programs besides those featured here
NSP I- Example 1NSP I- Example 1San Bernadino County, CA
Financing Mechanism: Purpose- “rapid re-occupancy” To help first-time homebuyers
quickly purchase and occupy foreclosed single family homes before vandalism and blight become acute.
0% Downpayment: 3.5-5% of purchase price
San Bernadino County, San Bernadino County, CA (Cont.)CA (Cont.)Target PopulationoFirst-Time Homebuyers; andoUp to 120% of AMI; andoFHA creditworthy
May be combined with the County’s NSP-funded rehab program if property needs repairs
San Bernadino County, San Bernadino County, CA (Cont.)CA (Cont.)Downpayment Assistance
Planned Production
NSP Funds: $2.5 million# of Units: 85NSP Funds/Unit: $29,412/unit
NSP I: Example 2NSP I: Example 2Miami-Dade County, FL
Purchase & Rehabilitation:Purpose- “multi-family housing” To purchase & rehab multi-
family properties for continued use as rental property.
Units to be purchased by the County; a partner entitlement city; or nonprofit or forprofit developers under contract with the County
Miami-Dade County, FLMiami-Dade County, FLThe County will conduct property appraisals, & negotiate discounted purchase prices
30 year affordability restrictionsTargeted to neighborhoods in top two priority areas (identified by “areas of greatest need” analysis)
Miami-Dade County, FLMiami-Dade County, FLPurchase & RehabPlanned Production
NSP Funds: $21.57 million# Units: 172NSP Funds/Unit: $125,400
NSP I- Example 3NSP I- Example 3Tampa, FL
RedevelopmentPurpose- “new construction on
cleared lots”To create new housing on lots
cleared by NSP funds that Tampa allocated to demolition of foreclosed properties
0% deferred payment loan
Tampa, FLTampa, FLUp to 40 lots will be clearedCleared lots may be landbanked
up to 10 yearsLots will be cleared in a handful
of target neighborhoodsTampa will issue RFQs to identify
Housing Partners to help with redevelopment
RFQ will make creation of an “interdisciplinary team” a competitive criterion in the RFQ
Tampa, FLTampa, FLRedevelopmentPlanned Production
NSP Funds: $25.41 million# Units: N/A*NSP Funds/Unit: N/A*
*SF or MF units to be constructed on up to 40 cleared lots
NSP I Example # 4NSP I Example # 4Genesee County, MI
LandbankingPurpose- To demolish blighted
structures that are already owned by the Genesee County Land Bank Authority. Vacant lots may be held or redeveloped as housing.
Genesee County, MIGenesee County, MIPlanning Commission staff, &local
inspectors & assessors will help identify properties
Genesee County will subcontract to the Genesee County Land Bank Authority to oversee demolition
The County will work with banks and FHA to acquire properties, help clear titles, etc.
Leverage from TIFs; Genesee County downpayment assistance; private resources
Genesee County, MIGenesee County, MILandbankingPlanned Production
NSP Funds: $1,800,000 million
# Units: 200NSP Funds/Unit: $9,000
NSP I Example #5NSP I Example #5North Las Vegas & Clark County, NV
Housing CounselingPurpose- HBE for households up
to 120% of AMI seeking to purchase NSP-assisted housing.
HUD approved counseling agencies only.
North Las Vegas & Clark North Las Vegas & Clark County, NVCounty, NV
An RFP process will be used to allocate fundsMinimum of 8 hours counseling requiredAssumes 10 households will be counseled for
every 1 that proceeds to purchaseTarget areas include very distressed census
tracts where significant public investment has already occurred, with more planned.
Leverage includes $93 million in MRB funding set aside by the state housing finance agency
North Las Vegas & Clark North Las Vegas & Clark County, NVCounty, NVHousing CounselingPlanned Production
NSP Funds: $525,000# Units: 200NSP Funds/Unit: $100
Paying for NSP ActivitiesPaying for NSP ActivitiesNSP grantees may fund sales costs,
closing costs, & reasonable developer’s fees related to housing rehab or new construction activities.
HOWEVER
NSP regs prohibit NSP-assisted housing to be sold at a profit.
Accurately analyze development costs so they can be reimbursed as fees.
(Work this out with NSP jurisdiction)
NSP IINSP IICreated by the American
Recovery & Reinvestment Act (ARRA), February 2009
$2 billion in funding for NSPSome changes are retroactive to
NSP IOthers apply only to NSP IIStay tuned for more details from
HUD
Changes Affecting both Changes Affecting both NSP I & IINSP I & IIElimination of the Program Income
SectionExpansion of the Land Banking
Eligible UseRedevelopment will be Restricted to
Housing Only- no non-residential usesNSP Grantees may not Refuse to
Lease to Section 8 RecipientsAdditional Tenant Protections for
those with Leases Signed Before Foreclosure
Changes Affecting NSP II Changes Affecting NSP II OnlyOnlyCompetitive Allocation Process
(states, local gov’ts, nonprofits)Up to $200 million for Capacity
BuildingExpenditure Timeline: Grantees
must spend 50% of allocated funds w/in 2 yrs.; 100% w/in 3 yrs.
No NSP Funds may Demolish Public Housing
10% Cap on Demolition
Changes Affecting NSP II Changes Affecting NSP II Only (Cont.)Only (Cont.)NSP II Allocation Criteria:
1. Areas of Greatest Need2. Capacity to Execute
Projects3. Leveraging Potential4. Others TBD by HUD
DiscussionDiscussion