Revision to the Down Payment Assistance Program DPA

1
Revision to the Down Payment Assistance Program
(DPA)

• Funded by The State Housing Initiative
  Partnership (SHIP) Program

2
Presentation Outline

• Overview
• Housing Market Trends
• Downpayment Assistance Program
• Proposed Revisions to the Downpayment Assistance
  Program
• Action Requested

3
Presentation Outline

• Overview
• Housing Market Trends
• Downpayment Assistance Program
• Proposed Revisions to the Downpayment Assistance
  Program
• Action Requested

4
Overview

• State Housing Initiatives Partnership Program
  (SHIP)
• Established 1992
• Funding source - Documentary Stamp Revenues
• 67 Counties and 48 Municipalities participate
• 5th Largest Recipient of SHIP Funds in the State
• Orange County received 5.2 million for Fiscal
  Year 2008-2009
• And will receive 0 for FY 2009-2010

5
Overview

• State Housing Initiatives Partnership Program
  (SHIP) Activities
• Multi-Family Rehabilitation/Construction
• Single Family Rehabilitation/Construction
• Impact Fee Subsidy
• Down Payment Assistance

6
Presentation Outline

• Overview
• Housing Market Trends
• Downpayment Assistance Program
• Proposed Revisions to the Downpayment Assistance
  Program
• Action Requested

7
Housing Market Trends

• July 2007 Metro Orlando reached a record high
  median sales price of 264,436
• May 2009 the median price of existing homes in
  Metro Orlando dropped to 130,000
• The last time the median sales price was at this
  level was in 2002

8
Housing Market TrendsUnit Availability
19,123 Total Listings in Orange County Source
Orlando Board of Realtors - MLSJune 3, 2009
9
Presentation Outline

• Overview
• Housing Market Trends
• Downpayment Assistance Program
• Proposed Revisions to the Downpayment Assistance
  Program
• Action Requested

10
Downpayment Assistance Program

• First-time income eligible homebuyers
• Property must be located within Orange County
  excluding City Limits of Orlando
• Homebuyers are required to complete Homebuyer
  education class

11
Downpayment Assistance Program

• Current Levels of DPA Assistance
• Very Low Income 35,000
• Low Income 30,000
• Moderate Income 20,000

12
Downpayment Assistance Program

• Average Down Payment Assistance Loan 25,000
• Average number of households assisted
  325 per year
• Current budget will be expended by early 2010

13
Downpayment Assistance Program
14
Presentation Outline

• Overview
• Housing Market Trends
• Downpayment Assistance Program
• Proposed Revisions to the Downpayment Assistance
  Program
• Action Requested

15
Proposed Downpayment Assistance Program

• Current affordability level of housing market
• Reduction or elimination in SHIP Funding
• Doing more with less

16
Proposed Downpayment Assistance Program

• Staff recommendation to decrease DPA subsidies
• Conducted consultation with industry providers
• Affordable Housing Advisory Board (AHAB)
  approved the recommendation on May
  27, 2009

17
Proposed Downpayment Assistance Program
18
Presentation Outline

• Overview
• Housing Market Trends
• Downpayment Assistance Program
• Proposed Revisions to the Downpayment Assistance
  Program
• Action Requested

19
Action Requested

• Approval of a revision to the State
  Housing Initiative Partnership (SHIP) Program to
  decrease the level of assistance under the Down
  Payment Assistance Program (DPA).