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NeighborWorks

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NeighborWorks America Neighborhood Stabilization Program * When HUD releases its interpretations to the new ARRA language there may be additional changes ... – PowerPoint PPT presentation

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Title: NeighborWorks


1
NeighborWorks America
  • Neighborhood
  • Stabilization
  • Program

2
Agenda
  • Overview of the Neighborhood Stabilization
    Program I (NSP I)
  • NSP I Examples
  • Summary of Neighborhood Stabilization Program II
    (NSP II)
  • Discussion

3
  • NSP I
  • Created 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

4
NSP II
  • Additional 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

5
NSP I Requirements
  • Intent 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 lt50 AMI all housing to benefit lt
    120 AMI.

6
NSP I Requirements (Cont.)
  • No more than 10 for administration.
  • Foreclosed properties must be purchased at a
    discount (min. 5 up to 15).

7
NSP I Eligible Uses
  1. Establish financing mechanisms for purchase and
    redevelopment of foreclosed homes.
  2. Purchase and rehabilitate properties that have
    been abandoned or foreclosed upon.
  3. Establish and operate land banks for homes and
    residential properties that have been foreclosed
    upon.
  4. Demolish blighted structures.
  5. Redevelop demolished or vacant properties.

8
NSP I Timeline
  • Jurisdictions 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.

9
  • NSP I Examples

10
Caveats
  • Jurisdictions have just started to implement
    their programs
  • Few results available yet
  • Consider these emerging practices
  • All these jurisdictions have other NSP programs
    besides those featured here

11
NSP I- Example 1
  • San 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

12
San Bernadino County, CA (Cont.)
  • Target Population
  • First-Time Homebuyers and
  • Up to 120 of AMI and
  • FHA creditworthy
  • May be combined with the Countys NSP-funded
    rehab program if property needs repairs

13
San Bernadino County, CA (Cont.)
  • Downpayment Assistance
  • Planned Production
  • NSP Funds 2.5 million
  • of Units 85
  • NSP Funds/Unit 29,412/unit

14
NSP I Example 2
  • Miami-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

15
Miami-Dade County, FL
  • The County will conduct property appraisals,
    negotiate discounted purchase prices
  • 30 year affordability restrictions
  • Targeted to neighborhoods in top two priority
    areas (identified by areas of greatest need
    analysis)

16
Miami-Dade County, FL
  • Purchase Rehab
  • Planned Production
  • NSP Funds 21.57 million
  • Units 172
  • NSP Funds/Unit 125,400

17
NSP I- Example 3
  • Tampa, FL
  • Redevelopment
  • Purpose- 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

18
Tampa, FL
  • Up to 40 lots will be cleared
  • Cleared lots may be landbanked up to 10 years
  • Lots will be cleared in a handful of target
    neighborhoods
  • Tampa 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

19
Tampa, FL
  • Redevelopment
  • Planned 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

20
NSP I Example 4
  • Genesee County, MI
  • Landbanking
  • Purpose- To demolish blighted structures that
    are already owned by the Genesee County Land Bank
    Authority. Vacant lots may be held or redeveloped
    as housing.

21
Genesee County, MI
  • Planning 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

22
Genesee County, MI
  • Landbanking
  • Planned Production
  • NSP Funds 1,800,000 million
  • Units 200
  • NSP Funds/Unit 9,000

23
NSP I Example 5
  • North Las Vegas Clark County, NV
  • Housing Counseling
  • Purpose- HBE for households up to 120 of AMI
    seeking to purchase NSP-assisted housing.
  • HUD approved counseling agencies only.

24
North Las Vegas Clark County, NV
  • An RFP process will be used to allocate funds
  • Minimum of 8 hours counseling required
  • Assumes 10 households will be counseled for every
    1 that proceeds to purchase
  • Target 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

25
North Las Vegas Clark County, NV
  • Housing Counseling
  • Planned Production
  • NSP Funds 525,000
  • Units 200
  • NSP Funds/Unit 100

26
Paying for NSP Activities
  • NSP grantees may fund sales costs, closing costs,
    reasonable developers fees related to housing
    rehab or new construction activities.
  • HOWEVER
  • NSP regs prohibit NSP-assisted housing to be sold
    at a profit.

27
  • Accurately analyze development costs so they can
    be reimbursed as fees.
  • (Work this out with
  • NSP jurisdiction)

28
NSP II
  • Created by the American Recovery Reinvestment
    Act (ARRA), February 2009
  • 2 billion in funding for NSP
  • Some changes are retroactive to NSP I
  • Others apply only to NSP II
  • Stay tuned for more details from HUD

29
Changes Affecting both NSP I II
  • Elimination of the Program Income Section
  • Expansion of the Land Banking Eligible Use
  • Redevelopment will be Restricted to Housing Only-
    no non-residential uses
  • NSP Grantees may not Refuse to Lease to Section 8
    Recipients
  • Additional Tenant Protections for those with
    Leases Signed Before Foreclosure

30
Changes Affecting NSP II Only
  • Competitive Allocation Process (states, local
    govts, nonprofits)
  • Up to 200 million for Capacity Building
  • Expenditure 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

31
Changes Affecting NSP II Only (Cont.)
  • NSP II Allocation Criteria
  • Areas of Greatest Need
  • Capacity to Execute Projects
  • Leveraging Potential
  • Others TBD by HUD

32
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