STATE OF UTAHNEGHBORHOOD STABILIZATION PROGRAM

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NSP – HISTORY

On October 6, 2008, the Housing and Economic Recovery Act (HERA) was signed. The purpose of the Act was to assist in redevelopment of abandoned and foreclosed homes under the Neighborhood Stabilization Program (NSP). The state of Utah received $19.6 million for NSP.

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NSP – PROGRAM REQUIREMENTS

As a requirement of HERA, the funds must be obligated prior to September 10, 2010.

5 counties were identified to be in greatest need of assistance, they are: Salt Lake, Utah, Davis, Weber and Washington.

Properties acquired were required to be foreclosed or abandoned.

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NSP – PROGRAM REQUIREMENTS

A requirement of the Program is to use 25% of the total funds received for households that were at or below 50% Area Medium Income.

$5 million of the State of Utah funds were used to meet this requirement. 46 housing units have been made available to households at or below 50% AMI.

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NSP – PROGRAM REQUIREMENTS

The remaining funds were used to acquire properties to provide housing to qualified home buyers that have an Area Medium Income of up to 120%. This new income group is defined as Low-, Moderate-, and Middle-Income households (LMMH) in NSP regulations.

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INCOME ELIGIBILITY

Income Eligibility for LMMH:<= 50% = Low Income50% - 80% = Moderate Income80% - 120% = Middle Income

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NSP – ELIGIBLE ACTIVITIESActivities chosen by the State of

UtahPurchase and Rehabilitate properties for re-sell/lease to qualified home buyers

Land Banking for future developmentRedevelopmentFinance Mechanisms

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NSP – REQUEST FOR PROPOSAL

A Request for Proposal was solicited for organizations to assist the state in the administration of the funds. Criteria used to rate the proposals were:Ability to administer the NSP regulationsAbility to partner with banks and other non-profits.

Ability to maximize the funding through leveraging.

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NSP – REQUEST FOR PROPOSAL

We received 3 qualified proposals. The contract was awarded to

Utah Center for Affordable Housing (UCAH)

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CRITICAL PARTNERSHIPSAdditional partnerships:Zions Bank – donated office space and the Executive Director’s salary. This allowed more funds to be used to acquire properties.

National Community Stabilization Trust (NCST) – provided “first look” of foreclosed properties.

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NON-PROFIT PARTNERSNon-profits that UCAH partnered with:

Color Country in Washington CountySLC HousingRural Housing Development CorporationDavis Community HousingRoad HomeUtah HousingNeighborworks, Salt LakeNeighborworks, Provo

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AVAILABLE FUNDS (AS OF 3/31/14)

Program Funds$19,600,000

Program Income $ 8,826,953Total Funds Received

$28,426,963

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ADMINISTRATIVE ALLOCATION

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State Admin - $392,000

UCAH Admin - $640,345

Admin Allowed 10%

Admin Funds Allocated 4%

State Admin $392,000

UCAH Admin $640,345

Purchase and Rehab $18,143,816

Land Banking $6,535,353

Re-Development $793,380

Finance Mechanism $267,873

Program Income Unused $1,654,185

Total $ 28,426,952

*DATA AS OF MARCH 31, 2014 14

ACTIVITIES/FUNDING

NSP – HOUSING UNITS

Housing Units Provided

Single Family – 101

Multi Family – 61Land Bank – 249* *Proposed Units

*DATA IS AS OF MARCH 31, 2014 15

DISTRIBUTION OF FUNDS BY HOUSEHOLD INCOME

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At least 25% at 50% AMI

HUNTINGTON APARTMENTSPROVO, UT

This foreclosed condo project was purchased from a banking consortium led by Bank of Utah. The property design was flawed and many of the bottom units of the three story building were uninhabitable due to water damage even though the building was only 18 months old.

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HUNTINGTON APARTMENTSPROVO, UTAH

The property is now fully leased. Three out of four families in The Huntington community make less than 50% of the area median income. Lease rates are about $350 lower than the market rents, enabling families to have quality housing at a very affordable price.

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HUNTINGTON APARTMENTSPROVO, UT

ROCKWELL CONDOMINIUMSDRAPER, UTAH

This 30 unit condominium complex and the 4 ground level retail spaces was purchased from the FDIC. The 12 acre development failed after only one buyer purchased a ground floor retail unit. When the project failed, construction halted, leaving all 10 of the fourth floor units incomplete. The fire suppression system had frozen causing water damage throughout the building. Tall weeds replaced a once well-manicured landscape within the sight of a major highway and the property exterior was an eyesore for Draper city residents.

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ROCKWELL CONDOMINIUMSDRAPER, UTAH

The developer was adamant about maintaining the finish quality of the 10 incomplete units during the rehabilitation process. Reasonable contractor bids for labor and materials allowed for a high level of finish in the remaining 10 units. Residents who call the Rockwell Condominiums home are proud of their high quality residences.

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ROCKWELL CONDOMINIUMSDRAPER, UTAH

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ROCKWELL CONDOMINIUMSDRAPER, UTAH

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ROCKWELL CONDOMINIUMSDRAPER, UTAH

WEST VALLEY CITYLAND BANK DEVELOPMENT

High School students were put to work under the supervision of local licensed contractors as they learned how to lay concrete, frame walls, hang sheetrock, install cabinets, wire, and plumb. Cabinets that were custom-built in a high school shop were transported to the home just prior to completion.

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WEST VALLEY CITYLAND BANK DEVELOPMENT

CANYONS CROSSINGMIDVALE LAND BANK

DEVELOPMENT$3 million of NSP funds were used to

purchase nine acres of land. An additional$33,000 million is being infused for the development costs. Construction has started on Canyon Crossing, a 180 unit 4% LIHTC affordable housing property. The property is expected to generate $250,000 in annual cash flow.

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CANYONS CROSSINGMIDVALE LAND BANK

DEVELOPMENTInnovative energy solutions are being built

into Canyon Crossing with geo-thermal technology for the heating and cooling of the units. Each building will have a boiler to heat the individual units; high energy efficient doors and windows will be installed; and the buildings are oriented so that they are not as impacted from the summer sun heating the units. The anticipated average monthly utility bill per unit is $25.

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Before Geo-Thermal Drilling

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CANYONS CROSSING MIDVALE LAND BANK

DEVELOPMENT

CANYONS CROSSINGMIDVALE LAND BANK DEVELOPMENT

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SINGLE FAMILY ACQUISITION & REHABILITATION

The State connected non-profit housing organizations with UCAH to connect eligible home buyers to the program to enable them to purchase the properties. This was a challenge since home buyers were required to qualify for a mortgage loan, but at the same time, not exceed specific income limits. The solution was an additional partner in the form of a credit union that developed a special mortgage program for this segment resulting in all of the units being sold to eligible homebuyers.

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Before After

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SINGLE FAMILY ACQUISITION & REHAB

PROVO, UTAH

Before

After

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SINGLE FAMILY ACQUISITION & REHAB

PROVO, UTAH