february 17, 2009 orange county neighborhood stabilization program update

February 17, 2009 February 17, 2009

Orange CountyOrange CountyNeighborhood Neighborhood

Stabilization Stabilization Program Program UpdateUpdate

Presentation Outline

• Background

• Initial NSP Implementation Strategy

• Revised NSP Implementation Strategy

• Action Requested

Presentation Outline

• Background

• Initial NSP Implementation Strategy

• Revised NSP Implementation Strategy

• Action Requested

Background

• Neighborhood Stabilization Program (NSP) was created to respond to rising residential foreclosures and property abandonment.

• Orange County was allocated $27.9 million

• Board of County Commissioners approved the County’s NSP Plan on November 18, 2008.

• Expenditure deadline for NSP funding 18 months from execution of Grant Agreement with HUD

Orange County Foreclosure FilingsOrange County Foreclosure Filings

Background

5,067

11,351

26,131

0

5,000

10,000

15,000

20,000

25,000

30,000

2006 2007 2008

Orange County Foreclosure Activity

Background

Background

Selected NSP Target Areas:

• Meadow Woods

• Pine Hills

• Azalea Park

• Holden Heights/Oak Ridge

• Union Park

Background

NSP Activities:•Acquisition, rehabilitation and sale of foreclosed

homes

•Acquisition and rehabilitation of foreclosed rental properties

•Demolition of abandoned and blighted properties•Redevelopment of demolished or vacant

properties•Financial Mechanisms for homeownership

including:– Downpayment assistance– Closing cost assistance

Presentation Outline

• Background

• Initial NSP Implementation Strategy

• Revised NSP Implementation Strategy

• Action Requested

Initial NSP Implementation Strategy

• Housing and Community Development Division would coordinate with other nonprofit housing development agencies

• Non-profit agencies would acquire, repair and sell NSP homes– Hold title to properties– Issue bids– Monitor construction– Pay vendors– Sell homes

Initial NSP Implementation Strategy

Concerns:

• Title to properties

• Liability and risk

• Limited control

• Inability to ensure objective procurement process

Presentation Outline

• Background

• Initial NSP Implementation Strategy

• Revised NSP Implementation Strategy

• Action Requested

Revised NSP Implementation Strategy

• Orange County will hold title to all the properties and coordinate the following:

– Acquisition, repair and sale of NSP homes

– Work with all private companies to provide needed services

– Work with the nonprofit partners to assist us in achieving program requirements

– Create Internal NSP team

Revised NSP Implementation Strategy Create Internal NSP Team

Housing Repairs Fiscal

NSP AdministrationMitchell Glasser, Manager

Frantz Dutes, Assistant Manager

NSP AdministrationMitchell Glasser, Manager

Frantz Dutes, Assistant Manager

Acquisition

Legal

Ex-Officio

Legal

Ex-Officio

County Administration Linda Weinberg, Deputy County

Administrator

County Administration Linda Weinberg, Deputy County

Administrator

OVERSIGHT COMMITTEE

Marketing and Sales

PurchasingPurchasingReal EstateReal Estate Neighborhood

Services

Neighborhood

Services

Revised NSP Implementation Strategy

Purchasing and Contracts Division:

•Coordinate with Purchasing to secure required services such as:

– Contractors

– Survey

– Appraisal

– Title Company

– Lawn Maintenance

Revised NSP Implementation Strategy

Oversight and Accountability:

•Bi-monthly meetings with oversight committee

•Quarterly reports to BCC

•Quarterly reports to HUD

Revised NSP Implementation Strategy

Executed HUD Agreements- Issue Bids for Services

- Identify Properties, Conduct Due Diligence- Negotiate Acquisition- Close on Single Family Properties- Complete Renovations- Market Properties- Convey Properties- HUD/BCC Reporting

Efficiently Expend $28 million

18

Mon

thsNSP Critical Path

Presentation Outline

• Background

• Initial NSP Implementation Strategy

• Revised NSP Implementation Strategy

• Action Requested

Action Requested

Adoption of a Resolution authorizing the Mayor or his designee

to acquire and convey title of real properties within the

Neighborhood Stabilization Program on behalf of Orange

County.