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AHAC Backup Documents 08/03/2009 MEETING NOTICE REMINDER: August 3, 2009 Collier County Affordable Housing Advisory Committee Board of County Commissioners Chambers Naples, Florida 3:00 PM Commission Members Staff Marcy Krumbine Steve Hruby Ken Kelly Brian Goguen James Warnken Cormac Giblin James Pusateri John Cowan Sally Masters Christine Jones Bradley Schiffer Patrick Peck Open - Alternate Priscilla Doria Frank "Buddy" Ramsey Commissioner Coletta County Attorney's office AGENDA NOTICE: PERSONS WISHING TO SPEAK ON ANY AGENDA ITEM WILL RECEIVE UP TO THREE (3) MINUTES UNLESS THE CHAIRMAN ADJUSTS THE TIME. SPEAKERS NEED TO FILL OUT A SPEAKER REQUEST FORM AND LIST THE TOPIC THEY WISH TO SPEAK ON. DURING COMMISSION DISCUSSION COMMISSION MEMBERS MAY ASK DIRECT QUESTIONS TO INDIVIDUALS. PLEASE WAIT TO BE RECOGNIZED BY THE CHAIRMAN, OBTAIN A MICROPHONE AND STATE YOUR NAME AND AFFILIATION FOR THE RECORD BEFORE COMMENTING. PLEASE SILENCE CELL PHONES AND DIGITAL DEVICES. THERE MAY NOT BE A BREAK IN THIS MEETING. PLEASE LEAVE THE ROOM TO CONDUCT ANY PERSONAL BUSINESS. ALL PARTIES PARTICIPATING IN THE PUBLIC HEARING ARE ASKED TO OBSERVE ROBERTS RULES OF ORDER AND SPEAK ONE AT A TIME ONCE RECOGNIZED BY THE CHAIRMAN SO THAT THE MEETING REPORTER CAN RECORD ALL STATEMENTS BEING MADE. 1. Call to order - Chairman 2. Roll Call of Commission members and staff - Recorder 3. Approval of the minutes - Chairman/all 4. Approval of the agenda - Chairman/all 5. Information Items Only a. Subcommittee Update - Buddy Ramsey b. Update on NSP project - Marcy Krumbine/Buddy Ramsey c. Report on NSP 2 application - Buddy Ramsey d. Report on DRI funds from Tropical Storm Fay - Buddy Ramsey e. Presentation of the CAPER - Margo Castorena Public Comment - those wishing to address the Affordable Housing Advisory Committee must sign up to speak. They will be given 3 minutes. 7. Review applicants for alternate position and make recommendation to BCC - Chairman/all 8. 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MEMORANDUM DATE: June 26, 2009 FROM: Marcy Krumbine, Housing and~Services Director Sue Filson, Executive Manager 1 Board of County Commissione If TO: RE: Affordable Housing Advisory Committee As you know, we currently have vacancies on the above-referenced advisory committee. A press release was issued requesting citizens interested in serving on this committee to submit an application for consideration. I have attached the applications received for your review as follows: Stuart Warshauer 565 Via Veneto #101 Naples, FL 34108 Randy Anderson 5318 Warren Street Naples, FL 34113 Please let me know, in writing, the recommendation for appointment of the advisory committee within the 41 day time-frame, and I will prepare an executive summary for the BomJls consideration. Please include in your return memo the attendance records of the applicants recommended for reappointment. Please categorize the appHcants in areas of expertise. If you have any questions, please call me at 252-8097. Thank you for your attention to this matter. SF Attachments filson s From: ,,-nt: '-0: Subject: stuwarsh@hotmail.com Monday, June 08, 2009 11 :03 PM filson s New On-line Advisory Board Application Submitted Advisory Board Application Form Collier County Government 3301 E. Tamiami Trail Naples, FL 34112 (239)252-8606 Application was re4:eived on: 61812009 11:03:29 PM. Name: ~Stuart Warshaueq Home Phone: t;l39-591-42501 Home Address: 1565 Via Veneto #1011 City: lNap1e~ Zip Code: ~ Phone Numbers Fax: ~39-591-425q Business: t239-273-80591 eMail Address:~tuwarsMl)hotmail.coml Board I Committee Applied for: !Affordable Housing Commissio~ Category: !citizen-at-Iarge! Work Place: ~ How long have you liVed in Collier County: ~ Have you ever been convicted of any offense against the law? ~ /Not Indicated! Do you or your employer do business with the County? IH9 /Not Indicated! NOTE: All advisory board members must update their profile and notify the Board of Collier Commissioners in the event that their relationship changes relating to memberships of organizations that have a vested interest in the outcome of advisory board recommendations or _ they enter into contracts with the County. Do you belong to any organizations that have a vested interest in the outcome of advisory board 1 recommendations? ~ \Not Indicated! are you a registered voter in Collier County? ~ Do you currently hold public office? ~ Do you currently or ever served on a Collier County Board or Committee? ~ /Not Indicated! Education: .B.A in Marketin , 1954 from Cornell Universi . B.A in Government and Economics from Cornell in 1953 . 2 filson s From: Sent: To: Subject: randybayelectric@aol.com Thursday, June 25, 2009 9:08 AM filson s New On-line Advisory Board Application Submitted Advisory Board Application Form Collier County Government 3301 E. Tamiami Trail Naples, FL 34112 (239)252-8606 Application was received on: 6/25/2009 9:07:44 AM. Name: !Randy Anderson! Home Phone: ~39-774-062~ Home Address: 15318 Warren St.1 City: lNaple~ Zip Code: 1341131 Phone Numbers Fax: ~39-643-41631 Business: t239-643-433~ e-Mail Address:jrandybayelectric(tV.ao\.com! Board I Committee Applied for: jAffordable Housing Commisio~ Category: !Not indicate~ Work Place: !Bay Electric of Collier County Inc~ How long have you lived in Collier County: !more than 151 Have you ever been convicted of any offense against the law? ~ !Not Indicated! Do you or your employer do business with the County? ~ !Not Indicated! NOTE: All advisory board members must update their profile and notify the Board of County Commissioners in the event that their relationship changes relating to memberships of organizations that may benefit them in the outcome of advisory board recommendations or they enter into contracts with the County. Would you and/or any organizations with whom you are aft....iated benefit from decisions or 1 recommendations made by this advisory board? ~ !Not Indicatedj Are you a registered voter in Collier County? ~ Do you currently hold public office? ~ Do you currently or ever served on a Collier County Board or Committee? ~ !Board of Building Adjustments & Appea1~ Education: lMaster Electricanl 2 INSIDE >> This special supplement is underwritten in part by Freddie Mac. ~ Creative programs to prevent foreclosure. . , . . , . . . . .9 ~ Q&A with Ron Si ms, HUD Deputy Secretary, . , , . , . . , .9 ~ Best Practices I Quick Links, . ,10 ~ Crime rates rise as homes go. ,11 ~ Pets and foreclosures. , . . . ' . ,12 ~ 25 counties with highest foreclosure rates ...... .13 Counties and ... The Foreclosure Crisis Q_ Whatcanhomeownersdo - if they get behind on their mortgage payments or want to get help before they fall too far behind? Also how can they get help if they owe more on their homes than they are worth? Homeowners shouldcontacttheir lender to discuss options that may be available, Avoiding communication with a lender is the biggest mistake they can make. If the homeowner has trouble reaching the lender, they can contact a local HUD.approved housing.counseling agency for help working with the lender or they can contact their county about such a program, Q_ Is there any relief for - homeowners who are at risk of foreclosure? The Housing and Economic Recovery Act of 2008 created the HOPE for Homeowners (H4H)pro. gram, which helps certain borrowers to refinance their mortgage, Hom- eowners should speak to the holder of their mortgage to determine their eligibility for this program, Q_ How does the H4H pro- - gram work? Through this program, which is slated to end Sept, 30, 2011, horn. eowners may be eligible to refinance their loans into a fixed rate 30-year mortgage that is more affordable and is insured by the Federal Housing Administration (FHA). The principal amount cannot exceed more than 90 percent of the home's current appraised value, This is a voluntary program so the borrower and the lender (or lenders in case of more than one mortgage) must all agree to participate and to release the liens on the property. See FAQS page 11 Foreclosure crisis for counties hasn't 'hit bottom' yet By CHARLES TAYLOR SENIOR STAFF WRITER The mortgage foreclosure crisis is far from over for those counties hardest hit. "We haven't hit bottom yet, but I believe we're close," says Renee Ayres. Benavidez, Maricopa County, Ariz.'s director of community devel. opment. Some 2,000 miles away, Collier County, Fla, is ranked 10th in the state for foreclosures, "No, we don't see it abating at all," said Marcy Krumbine, the county's director of housing and human services, RealtyTrac's May 2009U.S. Fore- closure Market Report showed that foreclosure filings default notices, scheduled auctions and bank rcpos. sessions-werereportedon321,480 U.S. properties. While that was a 6 percent decrease from the previous month, itwasnearly 18 percent above May 2008, One in every 398 housing units in the United States received a foreclosure filing in May, Nevada, Califomia and Florida led the way, with one in 64 housing units receiving a foreclosure filing -- more than six times the national average. In those states, respectively, Clark, Merced and Lee counties had the most foreclosures. But the news isn't all doom and gloom for counties. Federal programs like the Neighborhood Stabilization Program (NSP) are pouring billions of dollars into acquiring, rehabbing and reselling foreclosed properties, TheObama administration's Making Home Affordable initiative, begun in March, aims to help millions of Americans stay current on their home loans, And increasingly, Washington is lookmg to local governments to help solve the problem and for ideas, "We will be asking you for inputs on our programs and policies, and you can believe we are in listening mode," said Ron Sims, Housing and Urban Development (HUD) deputy secretary and former county executive in King County, Wash. "Remember, I sat where you sit and I know which HUD programs worked for us and those that seemed as if they were a 'one size fits all but us' program," (see Q & A with Sims on page 9) As a result of the foreclosure crisis, counties are facing a range of challenges - not least of which is declining property tax revenue, leading to budget shortfalls, "We've seen as much as a 20percent decrease in property tax value," Krumbine said, The foreclosure mess isn't only starving county budgets, it's com. promising communities. Local officials report an increase in crime where foreclosures are high (see story on page II), Animal welfare dcpartments are sceing an increase in abandoned pets, In Washoe County, Nev., environmental health officials are concemed about foreclosed prop. erties becoming breeding grounds for West Nile virus.causing mosquitoes, "When you foreclose on a homewith See CRISIS page 8 81 July 13, 2009 Hot Topics . County . NA!k-- Maricopa County housing stock Ineeds to be used Upl CRISIS from page 7 aswimmingpool, there'sachancethe pool will grow its own ecosystem if it's not treated," health department spokeswoman Tracie Douglas told the Reno Gazette.Journal. Along the Gulf and Atlantic coasts, some residents are worried about what will become of vacant foreclosed homes - with no one there to shutter windows - if a hurricane should hit, Washington to the Rescue The American Recovery and Reinvestment Act included nearly $2 billion for NSP2, funds to be awarded on a competitive basis and targeted towards reviving and stabilizing neighborhoods and hous- ing markets with high numbers of foreclosed properties. This follows $3.92 billion in formula funds authorized last year for the original NSPI program. . redevelop demolished or vacant properries. Under NSPI, grantees have 18 months from the date HUD signed their grant agreements to obligate the funds and four years to spend them, Severalof thecounties interviewed by County News were feverishly at work to meet a July 17 deadline to apply for NSP2 funds. 'A Terrible Situation' "It's just been a terrible situation in terms of the number of foreclosures, not only single-family homes but a tremendous number of condomini- ums that were also built within the last couple of years," said Edward Lowery, Palm Beach County, Fla.'s director of housing and community development, Foreclosures in the county rose 113 percent from 2007 to 2008, according to Sharon Bock, clerk of courtsandcontroller-13,695cases Photo courtesy of Collier County, Fla. A Collier County, Fla. code enforcement investigator inspects a foreclosed property in Naplesfor potential code violations. Under the Neighborhood Stabilization Program, the county had inspected 163 properties by early July and made purchase offers on 135 of them, "Through the Neighborhood Stabilization and Community De- velopment Block Grant Programs, we are providing avenues for local leaders to tackle foreclosure at the neighborhood level and to bring vibrancy back into people's homes and communities," Sims said. NSP money can be used to do any of the following: . establish financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties . purchase and rehabilitate homes and residential properties abandoned or foreclosed . establish land banks for fore- closed homes . demolish blighted structures, and in2007;29, I 14 last year. Since 2004, the foreclosure rate has increased nearly 800 percent, she said, The county received $2 7,7 million under NSPI and is pursuing NSP2 funding, Lowery said, "Out of that $27 million, we're using $ 18 million to provide first-mortgage loans to homebuyers of foreclosed proper- ties." Under NSP2, the county wants provide second-mortgage subsidy assistance. The county also has an initiative that awards money to nonprofits to purchase foreclosed residential properties to rentto clients who meet HUD guidelines, "Right now, affordable rental housing is more critical than af- fordable home ownership," he said. "There are a lot of people here in Florida who don't necessarily want to be tied down with home owner- ship, and you also have families who are earning 70 or 80 percent of (area median income), so rentals are more attractive and affordable to a lot of the families here in South Florida, so we're trying to address both issues." Bock's office processes foreclosure filings and is now doing so with 20 percent less staff, On the other side of the state, Collier County's Clerk Dwight Brock said what used to take two days now takes 10 to 14. Both are operating under state-mandated cuts to their budgets, Housing Stock 'Needs to Be Used Up' Maricopa County received $9,9 million in NSPI money. Working through the county housing author- ity, it will use about $6 million to acquire and rehabilitate foreclosed properties for resale, Toward the end of the housing boom, there was a lot of develop- ment in the southwest portion of the county, Ayres-Benavidez said. The cities of El Mirage and Goodyear, and the town of Buckeye each have about 1,1 00 foreclosed homes. These newer homes won't need much rehabilitation, she said, "Our intention is to use as much money as we have available to do as much re- newable energy-type improvements as we can" such as installing low-flow faucets and toilets, extra in- sulation and double-paned windows _.Uto improve the energy-efficieney of these houses." Ayres-Benavidez said Maricopa doesn't plan to do any land-banking or demolition. "What we have is an excess availability of very goodhous- ing new housing the housing stock just needs to be used up," Stabilizing Neighborhoods before NSP Collier County began working with partners such as Habitat for Humanity a year-and-a-half ago, even before NSP was created, The county re-programmed HUD money to enable the nonprofits to acquire, fix up and resell residential foreclosures, When the NSP money became available, the county created an internal program, pulling together a team from across several departments including real property, code enforcement, legal, risk management to administer the program under her department's direction, To date, the county has inspected 163 properties and made offers on 135 of them, Krumbine said, As of early July, offers had been accepted on 20 properties. 'Clash of the Titans' Even with the Neighborhood Stabilization Program, some county officials believe that banks and lend- ers are dragging their feet in selling off foreclosed properties, Krumbine sees things through the prism of her background in home buyer education, "For years I told people: 'You can always go back to the bank if you're ever in trouble and work out issues with them... because they don't want to hold on to these assets, they wouldn't want your property. So they wantto help you stay in your home.' "I don't see them eager to sell the properties, It is a very arduous process to get them to sell a prop- erty," she said. Governments and banks work- ing together can be a "clash of the Titans," Krumbine said. "If I were to get a bunch of bank presidents in the room, what I would say to them is at least with the government .-- the county governments, and the jurisdictions that are participating in NSP they know we have money, "We might have a lot of paper- work, and it might take time to work with our bureaucracy, but you know we're coming to the table with a cash deal" " We do have acheckbookthat is supported by federal funding." By CHARLES TA nOR SI:.NIOR SIAFF WRITER Several of the foreclosed properties Collier County, Fla, has pur- chased under the Neighborhood Stabilization Program (NSP) were REOs so-called "real estate-owned" properties from mortgage lenders' holdings, Bank of America Home Loans was the seller under a program designed to streamline the process for local governments to purchase foreclosed homes, Marcy Krumbine, Collier County's director of housing and hu- man services, said the lender is among the few who have" gotten their act together," "Several of the properties that we've put offers on have been with them," she added, The eounty will rehabilitate and resell the homes. Robert Grossinger, a Bank of America senior vice president in Chicago, said the company is proactively briefing NSP grant recipients and has dedicated staff to work with the government officials, agen- cies and their nonprofit designees "to take the process of buying REOs from soup to nuts," For example, "If Cook County wants to participate with us in terms of knowing what REO properties we have, and they would like to buy them -- either directly or through a sub-grantee or a designee -- we first talk to them about how we do the program. Then we provide them with a property request form on which they fill out the zip codes they're interested in, "We will then provide them with a list of the REOs that we have in those zip codes and we will update that list once a week automati- cally and send it to them," he explained, Specifically, the program's guidelines offer NSP grantees the following: "First Look" Purchase Opportunity Review of Bank of America bank-owned properties before being listed on Multiple Listing Services (MLS) and other public sites. Multiple Property Purchase Opportunity .- The ability to purchase multiple properries in a single transaction. Individual REO Sales -- A dedicated servicing associate at Bank of America to work with the city or county from start to finish, and Real Time Listings -- Private access to a new Web site providing real-time listings of all REO properties owned by the bank. Lists of all REOs within a specific zip code are also available, Grossingcr said the first-look program, "really helps in commu- nities in which there's a large investor population that are bidding on properties and taking them but not necessarily restoring them immediately or giving them back to use immediately." Formore information, contact Robert Grossinger at312/904-9677 or robert,grossingen.dJbankofamerica, com. NA~__ . County . Hot Topics July 13 , 200919 Counties get creative on foreclosure prevention By EUZABETH PERRY STAFF WRITER Counties across the nation are us- ing Neighborhood Stabilization Pro- gram funds on creative approaches to foreclosure prevention. Some of the prevention pro- grams focus primarily on home buyer education and counseling programs, others offer counseling in conjunction with closing and down payment assistance, and others seek to prevent further fore- closures through counseling and loan programs, while at the same time increasing the availability of affordable housing. Boulder County, Colo. Boulder County, Colo. Housing Authority's Volunteer Foreclosure Housing Prevention Counseling Program offers classes and one-on- one counseling by trained volunteers to help guide home owners through the legalese of loan terms, retool their budgets and mediate with lenders to make loan terms more manageable. Changes in adjustable mortgage rates, employment or domestic sta- tus are some of the most common reasons people find themselves un- able to afford their homes, said Tonja Ahijevich, program coordinator. Others are current on mortgages but worried about future payments, "They know their adjustable rate mortgage is going to adjust next year, and they want to be proactive in being able to accomplish that financially," she said. "So we're seeing people who are not even in default who want to come to us to talk about options to stay in their homes. " The Housing Authority has of- fered foreclosure help since 1984, but when foreclosures jumped from 13,573 in 2003 to 21,782 in 2005 and kept trending upward, the Colorado Division of Housing identifIed foreclosure prevention as a high priority_ Through a mix of statewide partnerships and with HUD Deputy Secretary Ron Sims County News asked HUD Deputy Secretary Ron Sims, former King County, Wash. executive, for his take on HUD's ejJorts to address the foreclosure crisis and what it:' doing to help local governments preserve their communities. Q. What is the U.S. Depart- . ment of Housing and Urban Development doing to improve the housing foreclosure crisis in the U.S.? This administration is doing everything possible to stem the foreclosure crisis and to keep more families in their homes, In Febru- ary, we introduced Making Home Affordable, acomprehensiveplan to stabilize the U.S, housing market. In just a few months, almost a quarter- million borrowers have received offers for trial loan modifications, tens of thousands of refinances and trial modifications are under way, and informational mailings about the program have been sent to more than one million borrowers. Over the next few months, we expect these numbers to grow sig- nificantly, and we already have some early signs that the overall housing market is stabilizing.- particularly in the area of construction, where total starts in May increased 17.2 percent from the previous month, We are making a difference for hundreds of thousands of families, Ron Sims HUD Deputy Secretary but we realize there is always more we can do so we are constantly tweaking and refining it to assist more families, Recently, we moved to allow home buyers to apply the administration's new $8,000 first-time homebuyer tax credit toward the purchase costs of an FHA-insured home. Just recently, we announced an expansion of the Home Afford- able Refinance Program to include participation by borrowers who are current but up to 125 percent underwater on their mortgage. Before the change, only those borrowers whose first mortgage did not exceed 105 percent of the current market value of the property were eligible, HUD's FHA has also taken a lead role in assisting families facing foreclosures, When banks can't - or won't assist families, the FHA is assisting them, We need only look at FHA's share of the mortgage market. As of 2006, it was less than 2 percent .-. today, it's 23,7 percent, Obviously we'd prefer the private market to be playing a bigger role than it is today, but FHA is there to fill the gap until the private market returns to health. Another part of this foreclosure crisis is educating consumers, We must have better informed home buyers_ HUD requested $100 mil- lion for our Housing Counseling Program in the FYI 0 budget, a $35 million increase over 2009. We are also requesting $37 million to better protect consumers and taxpayers againstthosewhocommitmortgage fraud, We are fully committed to doing everything possible to stem the tide of foreclosures, Q. What federal programs . are available to assist county governments in helping their residents save their homes or neighborhoods that have a significant number of foreclosed properties, which are vacant or abandoned? I recently visited Gary, Ind. with See SIMS page 12 local collaboration, restructuring of its services and the creation of its housing counseling program, the Housing Authority was able to secure direct foreclosure fund- ing and expand its services to two other locations, Broomfield County and the city of Long- wood, Ahijevich said there are other county housing authorities throughout the state that address similar issues, and they come together as a statewide collective to plan foreclosure strategies and serve clients as a whole. Florida The Tampa Tribune recently reported that foreclosure cases in Hillsborough and Pinellas counties totaled 62,112 between 2006 and 2009, However, of the 1,000 first- time home buyers in the very low to moderate income bracket, only 10 cases resulted in foreclosure, Pine lias County's affordable hous. ingprogram had three foreclosures out of 191, and Hillsborough had less than I percent. The Tribune attributed the high number of foreclosures among mid- to higher-income families to the same mistakes that have plagued other home owners across the nation, including buying more home than they could afford, mortgages that readjusted rapidly out of reach and high interest-only loans, Lower-to-moderate income families didn't fall as quickly into the foreclosure trap, according to the Tn"bune, because they were not eligible for the risky adjustable rate mortgage offers that led so many mid-upper income home owners astray. But they were eligible for down-payment assistance from Hillsborough County which in- cluded a requirement to undergo financial counseling and budgeting classes that also taught them how to maintam their properties and live within their means, Home buyers received down-payment help from $20,000 to $30,000. "The more informed they are about the home-buying process, the more successful they are in home ownership," Daphne John- son, senior community planning specialist for the Pinellas County Community Development and Housing Finance Authority, told the Tribune, Fairfax County, Va. Fairfax County, Va.'s Board of Supervisors launched its Silver Lining Initiative last summer in reo sponse to the increase in foreclosed homes, which numbered 3,518 in the first quarter of 2008. The goal of the initiative is to help low-to-middle income families buy 100 foreclosed properties with the help of low- interest loans, The "silver lining" is the opportunity coming out of the housing crisis that the county hopes will make home-ownership a reality for everyone, In a report on the initiative, Paula Sampson, Fairfax housing and community development (HCD) director, wrote that fore- closure specialists with HCD, other agencies and nonprofit groups will provide counseling to home owners in danger of losing their homes. They will also collaborate with the Virginia Housing Development Authority, as well as local attorneys and paralegals to help create a workable solution, "The focus of the counseling is to connect home owners with their lenders or other resources, with theuItimategoalof a loan work-out," she wrote. Neighborhood preservation is another key factor in the initiative, with the Fairfax County Redevel- opment and Housing Authority's purchase of eight foreclosed, aban- doned or blighted homes towards its goal of 10, Up to $2.95 million in funding from Fairfax County Rede- velopment and HousingAuthority's taxable line of credit has been earmarked for the purchase and rehabilitation of the homes, which will be resold to first-time buyers and nonprofit organizations, Additional funding of $2,8 million in federal Neighborhood Stabilization funding will go into Silver Lining Plus, which will enable nonprofit organizations to purchase buildings to serve as affordable rental housing. To participate in the program, priority was given to home buy- ers on the first-time home buyers waiting list, public school and local government employees and county Housing and Community Develop- ment clients participating in the Partnership for Permanent Hous- ing, and Resident Opportunities and Self Sufficiency (ROSS) Grant public housing home ownership initiative. Other qualifications for the Silver Lining Initiative are: . purchase of a bank-owned, foreclosed single-family house . family members must not have owned a home for previous three years . live and work in Fairfax County . new home must be the buyer's primary residence, and . sale price must not exceed $362,790 for a single-family house or $270,000 for a townhouse. 10 I July 13, 2009 Hot Topics . CoUnty . ~A~ Best Practices: County Foreclosure Programs . Douglas County, Colo. The Douglas County Housing Partnership (DCHP), a multi- jurisdictional housing authority, established a Foreclosure Mediation Program, The program aims to prevent mortgage defaults, assist home mortgage lenders and bor- rowers in working out mortgage defaults, and resolve foreclosure actions that are either initiated or threatened by lenders. The program was established through cooperation with the Douglas County Public Trustee's Office to decrease the number of foreclosures in Douglas County by providing borrowers with tools and resources to use during the foreclosure process. DCHP educates borrowers on their consumer rights, as well as acts as a mediator between the lender and the borrower. For more information, contact the Douglas County Housing Part- nership at 303/784-7856. . Broward County, Fla. The Broward County Foreclo- sure Prevention Program is designed to preserve the affordable housing stockin the county, The program as- sists single-family home owners by providing a deferred payment loan to pay defaulted mortgages where the home owner is in default at least 30 days. Property must be owner- occupied, and the home must meet Florida's State Housing Initiatives Partnership program qualifications and guidelines, The foreclosure prevention Web site also provides a list of HUD-approved counseling agencies within the county, For more information, contact the Broward County Housing Authority at 954/497-4583 or housingcounselor@Jbchajl,oQi. . Collier County, Fla. The Collier County Foreclosure Task Force, a cooperative effort between the Legal Aid Service of Collier County and the Collier County Bar Association formed to promote foreclosure prevention, maintains a blog about foreclosure news in the county. Not only does the blog keep residents updated on upcoming events, but it also hosts videos and materials from previous workshops and forums, For more information, contact the Collier County Foreclosure Task Force at collierft.f@yahoo, com or Mario Bono at 239/252- 2481 or mariobono@collieQiov.net, . Lake County, Fla. County staff and Fair Hous- ing Resource Center, a multi- dimensional nonprofit agency, collaborated to meet housing market challenges faced by area residents with the Emergency Rent and Mortgage Assistance Program. The program provided emergency rent or mortgage assistance to income-eligible households who experienced and recovered from a financial crisis, With the initial allocation of $120,000 in funding from Com- munity Development Block Grants and a limit of$2,000 per household, the Emergency Rent and Mortgage Assistance Program intended to stabilize the housing of at least 60 households. Its secondary objective was to explore the terms and condi- tions in the housing market experi- enced by low-income households 10 need by directing them to the Fair Housing Resource Center. Applicants to the program were required to demonstrate that their rental or mortgage delinquency was the result of a crisis; that the crisis was alleviated, and the resident was unlikely to fall behind in the future, Since the program's implementa- tion, 66 rental households and 19 owner households were assisted, The average rental rescue assistance was $1,300 per household. and the average mortgage rescue was $1 ,800 per household, After this first objective was met, the program's secondary goal was accomplished as the program gave hope to others who had housing affordabi1ity problems by providing an avenue and incentive for them to seek housing counseling service, For more information, con- tact Tracy Udrija at 440/350- 2625 or tudrija@lakecountyohio.gov. . Miami-Dade County, Fla. The Miami-Dade County Fore. closure Prevention Now Web site has a comprehensive list of the assistance available through various county agencies as well as private organizations and the state and federal government, The site gives a short description of each program and service, and directs residents to the program's Web sitc as well as the agency's contact information, For more information, contact the Foreclosure Task Force at 786/331-534 or Glen Theobald at 305/471-2561 or gtheobald@mdpd. com. . Pinellas County, Fla. The Pinellas County Com- munity Development Department works with U.S, Department of Housing and Urban Development (HUD) and several local agencies that offer foreclosure prevention assistance. Through the foreclosure prevention Web site, the county provides information on upcom- ing events and services, as well as an archive of videos and materials from past events, The site also eontains informa- tion about avoiding mortgage scams and the importance of taking steps before the resident falls into foreclosure, For more information, contact the Pinellas County Commu- nity Development Department at 72 7/464-8211J, . Washtenaw County, Mich. Michigan State University Ex- tension in partnership with the Washtenaw County Treasurer's Office, Housing Bureau for Seniors and Legal Services of South Central Michigan provide mortgage fore- closure prevention counseling to help homeowners sort through the options available to them, The program encourages resi- dents to speak confidentially with a certified housing counselor in order to develop an action plan to help resolve a resident's housing crisis, The Web site contains fact sheets with detailed guidance on the options to avoid foreclosure and developing an action plan to create a long-term solution, For more information, contact the Washtenaw County Treasurer's Office at 734/222-6600. . Wayne County, Mich. Wayne County's Mortgage Foreclosure Prevention Program seeks to address the foreclosure crisis currently gripping the county, In collaboration with lenders, inves- tors and local housing counseling agencies, this program provides viable options through foreclosure education, process awareness and intervention, In addition to mortgage foreclosure prevention services, the program also offers families assistance with other basic family needs, such as utility assis- tance, food and clothing. For more information, contact the Mortgage Foreclosure Preven- tion Program at 3131833-2948 or Jamele Hage at 313/833-2053 or jhage@co, wayne, mi, us, . Craver County, Minn. The Carver County Housing Counseling Agency provides free foreclosure prevention counseling, Residents can discuss their situation with counselors and obtain informa. tion about options through their mortgage lender and other compa- nies to avoid foreclosure or create a long-term solution to solving their current financial problems. In conjunction with the county library, the agency is also presenting foreclosure workshops and encour- aging action by residents before they become too far behind in mortgage payments, For more information, contact the Carver County Housing Coun- seling Agency at 952/448-7715, . Dakota County, Minn. The Mortgage Foreclosure Prevention Program provides free counseling assistance to help homeowners who are in or near- ing foreclosure with referrals to additional resources and, in some cases, financial assistance. Hom- eowners work one-on-one with the Dakota County Community Devel- opment Agency's homeownership specialists to assess their situations and determine possible solutions, Applicants must be residents of Dakota County and be committed to solving their financial problems with long-term solutions, See BEST PRACTICES page 13 www.federalreserve.gov/consurnerinfo/foreclosure.htrn Many foreclosure resources are found on this Web site, www.ocpafl.org/ See how the Orange County, Fla, property appraiser's office maps foreclosed houses on its Web site. www.hud.gov/foreclosure/local.drn The U.S. Housing and Uman Development's site lists state-by- state foreclosure resources. www.federalreserveeducation.org/pfed/foreclosure This site provides links to agencies and organizations that may have helpful information for people facing foreclosures. www.all-foreclosure.com This Web site allows you to search for foreclosures in your neighborhood. www.rnarginalrevolution.com/ rna rgi nal revolution/2008/01/foreclosures-by.htrnl This is a county-by-county map showing foreclosures throughout the country from January to September of 2007. N~~ . Countv . Hot Topics July 13. 2009111 As homes go vacant, crime is new neighbor By KAT! GUERRA SENIOR ASSOCIATE From 2007 to 2008, overall property crime decreased 1.6 per- cent and violent crime was down 2,5, according to the 2008 Uniform Crime Report and the National Crime Victimization Survey. Yet many areas hardest hit with foreclosures are experiencing a different scenario; neighborhood crime rates are increasing, A 2009 report titled The Impact of Foreclosures on Neighborhood Crime in New Yo", found that while statewide crimerateswere decreasing, highfore- closure areas experienced increasing crime rates. In Nassau County, NY four out of five high-foreclosure neighborhoods had an increase in crime; there was no increase in eight low-foreclosure areas. In Charlotte-MecklenburgCoun- ty, N.C., the police department (CMPD) analyzed rates of violent crime,propertycrimeand911 service calls from 2003 to 2006. It found a consistent increase in violent crimes during the period in the high-foreclo. sure neighborhoods (except in 2004), but crime was significantly lower in the low foreclosure neighborhoods, according to CPMD'sMichael Bess, ~.4'~,'.' "."~~ ~~<'lJ,r. , ,'\. ." .... ....' ~J'l \,.. , '~ ".. -t., ~ This special County News sec. tion is underwritten in part by Freddie Mac. Contributors include: Jacqueline Byers NACO DIREGOR OF RESEARCH Daria Daniel ASSOCIATE LEGISLATIVE DIREGOR Jack Hernandez COUNTY NEWS SENIOR GRAPHIC ARTIST Chris Markwood RESEARCH INTERN Kathryn Murphy RESEARCH ASSOCIATE Elizabeth Perry COUNTY NEWS WRITER Sarah Sunderman RESEARCH ASSISTANT Beverly A, Schlotterbeck COUNTY NEWS EXECUTIVE EDITOR Charles Taylor COUNTY NEWS SENIOR WRITER targeting vacant houses on regular patrols and are often working with community neighborhood watch groups to identify problem areas. writing in Geography & Public Safety, October 2008, public safety issue. In response to metal thefts in vacant homes, the Hillsborough County, Fla. sheriff's office has assigned a special detec- tive to these types of theft cases, The Crime Prevention Unit in Prince William County, Va, distributes fliers to teenagers that warn of the consequences of partying in a vacant property, A list of vacant houses is available to the Fairfax County, Va. police department for periodic checking. Police in many counties are Counties Fight Back County police departments and sheriffs have had to come up with strategies to manage this emerging (Charles Taylor, senior staff writer, contributed to this report.) A Campaign to Reestablish the Federal .- County Partnership For decades, county and federal governments have worked together to answer the challenges facing the nation, but in recent years that partnership has diminished. Whether it is infrastructure, health care, housingr homeland security, environment or justice programs, each level of government has a role and responsibility, but they need to be coordinated for the best use of people and resources. To foster better coordination, NACo has launched a campaign to "Restore the Partnership" between the Federal government and America's counties. II i\ CONational Association of Counties I \1/1 J ................................ ..... ..... ...... The Voice of America's Counties Learn more by visiting www.naco.org 121 July 13, 2009 Hot Topics . County . N~I;k....__ HUD to deploy rapid response teams to foreclosure hot spots SIMS from page 9 Sen. Evan Bayh. I met with the local community leaders there to hear their concerns and to let them know what assistance we could offer to help them with their foreclosure concerns, I am willing to do that with other communities as well, One of the programs I highlighted in Gary was the Neighborhood Stabilization Program. Through the Neighborhood Stabilization and Community De- velopment Block Grant Programs, we are providing avenues for local leaders to tackle foreclosure at the neighborhood level and to bring vibrancy back into people's homes and communities, We're also put- ting a much bigger emphasis on affordable rental housing. The Neighborhood Stabiliza- tion Program helps communities to purchase and convert foreclosed and abandoned properties into new affordable housing, land banks, or other options that preserve neighborhoods. In all, the program is providing nearly $4 billion to communities across the country. A second round of Neighbor- hood Stabilization Program funds, a further $2 billion, will be al- located by competition, not only to turn foreclosed properties into homes again, but also to ensure that our communities go about the rehabilitation and purchase process in a smart, collaborative and, above all, sustainable way, We are also working closely with our own portfolio of lender- owned homes with Neighborhood Stabilization funding to make sure that we limit the period of time and the impact that those vacant homes have on communities. We also plan to start deploy- ing Foreclosure Rapid Response Teams to assess the areas hardest hit by foreclosure. Las Vegas will be the first to benefit from the ex- pertise of these HUD teams. The Las Vegas team will determine the needs in surrounding areas based on delinquency rate data at the zip code level, as well as listening sessions with local stakeholders such as housing counseling agen, cies, lenders and members of the public, Q_ What federal programs - are available to assist home owners or renters who have lost their homes due to foreclosure? If the current economic crisis has taught us anything, itis that it's long past time that we have a bal- anced, comprehensive, national housing policy, one that supports home ownership, but also provides affordable rental opportunities and ensures nobody falls through the cracks, Key to our new strategy is $1 billion to capitalize the National HousingTrustFund, The fund rep- market share, and the non-stop business of the government sponsored enterprises, or GSEs (such as Fannie Mae and Freddie Mac), to know that we are helping families, Is there more we can do? Certainly, that is why we continu- ously review our programs in an resents the first major federal hous, ing production program since the creation of the HOME program in 1990, and its purpose is primarily to increase and preserve the sup- ply of rental housing for low and very.low income households, We realize there is not one solution, but a multi-pronged ap- proach will be required to ensure more Americans than ever have affordable housing, Vouchers are also a eritical ele- ment of affordable rental housing and addressing the housing crisis. They are the most direct way of meeting the affordability challenge facing very low income renters and the most efficient way of address- ing the increase in homelessness resulting from growing job loss, the foreclosure crisis and the economic downturn. We believe that annual renewal funding of vouchers must be suf- ficient to ensure that families using vouchers will not lose their assis- tance and agencies will continue to have the resources to serve new families, That's why our budget requests a significantly higher level of federal funding for housing vouchers. Q_ To date, how effective - have the HUD or other Obama administration programs been in mitigating the foreclosure situation in the U.S. and stabiliz- ing communities? There is no doubt we are making a difference, One only needs to look at the numbers from the Making Home Affordable program, FHA's ever-increasing effort to refine them and make them more attractive, responsive and user-friendly to both consum- ers and the lenders. Q_ HowcanHUDandlocal - and state governments work together to ensure better outcomes in housing and eco- nomic development policy? HUD has never been more important to America's immediate Seizing this moment requires transforming the way we do business at HUD. and long-term success than it is at this moment. We are facing a daunting challenge, and one of the biggest windows of opportunity we may ever have to build better, stronger communities, Seizing this moment requires transforming the way we do busincss at HUD. It means part- nerships and collaboration with other agencies and at all levels of government to drive energy- efficient housing and sustainable growth. You will see a new HUD that emphasizes collaboration with you, There is no way we can develop strong sustainable communities and implement a balanced na- tional housing policy that recog- nizes both home ownership and affordable rental opportunities without you, The New HUD envisions a strategic partnership between the federal government, states, metropoli tan areas, localities and the private sector to tackle the structural housing challenges facing low- and moderate-income families, Together, we can turn this current crisis into a real op- portunity for growth, innovation and reform, We will be asking you for inputs on our programs and policies, and you can believe we are in listening mode. Remember, I sat where you sit, and I know which HUD programs worked for us and those that seemed as if they were a "one size fits all but us" program, Q _ While housing markets - rise and fall, long-term what is HUD doing to prevent the likelihood of such a devastating housing foreclosure crisis again in the U.S.? The recent challenges of the mortgage market have provided ample evidence that we must work to rethink each and every aspect of the nation's housing finance system, From HUD's perspective you can expect to see a heightened sensitivity to mortgage fraud and a much more extensive education effort to educate consumers about mortgages, We have implemented changes and we are continuing to imple- ment changes to better detect something. Some changes under- way at HUD are: . utilizing state-of-the.art tech- nology to enhancing FHA's fraud detection by borrowers, lenders and appraisers . adding more FHA staff with a different skills mix than our current work force . activating SWAT teams to look at and make visits - unan- nounced -- to 10 of the most troublesome lenders . implementing tighter under- writing standards . adjusting our risk manage- ment factors . requesting increased author- ity that would allow us to screen out lenders where they have been suspended or debarred from other programs and to give us other additional authorities to stop the migration of lenders, and . working more collaboratively with the Office of the Inspector General to detect fraud, Beyond the regulatory changes that may come to the mortgage industry, here at HUD, there has to be a different tone set to protect consumers, and we are doing that. What happens to pets of foreclosure? Pets are victims of foreclosures too, As many more people are facing foreclosure they are making tough choices about what they can afford. Animal shelters have been see- ing a major increase in the number of animals that are being dropped off, The most common scenario is one where owners can no longer afford to feed and care for their pets, Others don't have anywhere to go themselves. In another scenario, people who have lost their homes due to fore- closure move away and abandon their pets to fend for themselves, often leaving them locked inside yards or in the homes, The Maricopa County, Ariz, County Attorney's Office published the following helpful steps from the Humane Society of the United States of America on its Web site: . If youknowthata home in your neighborhood is being foreclosed upon, why not ask the occupants if they have made plans for their pets? . Some home owners might willingly turn over their pets to an animal welfare agency that specializes in rescuing stray and abandoned pets, if they knew where they were located, . Leave animal rescue literature with the owners; it's better to offend and apologize than to do nothing, . After the owners have moved, check on the home to see if any pets were left behind or tied up in the back yard. . Call your county animal shel- ter or the local humane society to find out how you can help to rescue abandoned pets, . Call a local real estate agent and ask the neighborhood specialist to inspect the home for abandoned pets. Most will gladly oblige at no obligation, The Humane Society is offer- ing Foreclosure Pet Grants of up to $2,000 to help shelters care for pet foreclosure victims, For more information, visit www.amen'can- humane.arg. ~~~ . County . Hot Topics Counties provide a broad range of foreclosure prevention programs BEST PRACTICES from page 10 For more information, contact the Dakota County Community Development Agency at 651/675- 4400. . Hennepin County, Minn. In response to the mortgage melt- down, Hennepin County commis- sioners formed a cross-departmental Foreclosure Task Force to focus on prevention, stabilization and recovery. Among the task force's chief recommendations was the creation of a lead staff person to serve as a central contact for county foreclo- sure information and resources, The county designated two staff members to implement the educa- tion and outreach of the task force's recommendations that included the following: $1.25 million for the city- county initiative to remove vacant and boarded houses from severely impacted neighborhoods; the cre- ation of a data center to improve the county's ability to track the foreclo- sure issue and allow such data to be easily shared; the mailing of more than 10,000 foreclosure information inserts in tax-delinquent notices to home owners; and the creation of foreclosure mini-workshops for home owners and renters in Hen- nepin County, To date, more than 200 people have attended the county's 12 work- shop seminars, Because tenants of properties are often unaware of the potential for foreclosure, many are left in vulnerable situations. For more information, contact Jeff Strand at 612/348-7870 or Jeff. strand@co,hennepin.mn.us. . Suffolk County, N.Y. In 2008, Suffolk County, N,Y, under the direction of County Executive Steve Levy, transferred to local townships a total of 28 proper- ties to be used for the development of affordable workforce housing under the Affordable Housing Transfer Program. A new provision of the county's workforce housing program gave eligibility preference to returning veterans of the Iraq and Afghanistan conflicts. Section 72-h of the New York General Municipal Law authorizes the sale of proper- ties between municipalities in the state of New York. In Suffolk County, the program provides for the transfer of property taken by the county for nonprofits fordevelopmentof affordable hous- ing and final transfer to economi- cally disadvantaged persons. For more information, contact Patrick Heaney at 631 /853-4800 or patrick. heaney@:;uffilkcounty.gov. . Cuyahoga County, Ohio The Cuyahoga County Fore- closure Prevention Program was created in the spring of 2006 to assist residents who were having trouble with or had questions about their home loans, The program connects borrowers in distress with a local nonprofit counseling agency through the United Way's First Call for Help line, The program also pro- vides educational materials about local mortgage workshops and warnings about mortgage scams, For more information, contact the Foreclosure Prevention Department at 216/443-8182, The county's new land bank program is ready to move into the implementation stage, said Gus Frangos, who runs the program out of County Treasurer Jim Rokakis' office. Frangos said the county plans tostartsmall, buying 100 abandoned and foreclosed properties, demolish, ing those that are beyond repair, and fixing up those that can be resold for affordable housing. So far, $3.1 million has been raised from tax pen- alties and interest, as well as grants, with more come later in the year, "We are looking at roughly 30 to 45 days to pick our first little batch of properties," Frangos said, "That will probably come from a portfolio lender, as well as tax forclosure," . Franklin County, Ohio The Homeowner Helpline is a collaborative county foreclosure program between the Franklin County commissioners, treasurer, and prosecutor to assist Franklin County residents struggling to save their homes from foreclosure, In addition to providing counseling, mortgage fraud prosecutions and rental assistance, the program also funds a mediation program with the municipal and common pleas court, The purpose of mediation is to encourage home owners and lenders to cometo the table and work out options for payment before and after the foreclosure is filed, For more information, contact the Franklin County Treasurer's Office at 614/462-3438, . Summit County, Ohio Summit County Foreclosure Prevention Partnership Program brings together government agen- cies, housing counseling agencies, banks, nonprofit organizations, professional associations, realtors, non-bank lenders, attorneys, brokers, Julv 13. 200g113 and many others with the goal of providing prevention education and assistance to homeowners and future homeowners who are or may be subject to predatory, deceptive and fraudulent lending practices. The program works to educate the community and to provide foreclosure assistance initiatives, consumer -based financial education, and a support system for homeown- ers who seek to rcfinance. For more information, contact the Summit County Office of Con- sumer Affairs at 330/643-2879 or consumeraffiirS@summitoh.net. . Fairfax County, Va. Fairfax County's Silver Lining Initiative serves as a three-tiered program designed to address the current housing foreclosure crisis and help to stabilize affected neighbor- hoods while also taking advantage of lower-cost housing to provide affordable workforce housing. The initiative's primary function is to provide assistance for low- and moderate-income households who are seeking to be first-time home buyers through shared equity loans. Qualified applicants are eligible to receive a loan, the amount of which is determined by household income and the price of the house, which can then be used to close the gap between an affordable first mortgage and the sales price of a market rate home, Upon sale or transfer of the property, the county will be repaid and will share in the appreciated value, The Silver Lining Initiative also provides loans for purchased, foreclosed homes that require repairs or improvements, A loan is made through the county's Improvement Loan Program to fund the needed repalTS. Lastly, the initiative provides counseling services to distressed home owners in danger of foreclo- sure, The focus of the counseling is to connect home owners with their lenders or other resources, with the ultimate goal of a loan work-out. In total, 70 attorneys and 30 paralegals have been recruited to provide six hours of counseling services each to county homeown- ers, By helping home owners during this foreclosure crisis, the county is creating a positive opportunity out of an economically damaging situation, These approaches work to stabilize communities by slow- ing the negative effects that a large number of foreclosures can have on neighborhoods. For more information, contact Paula Sampson at 703/246-5105 or psamps(dJjairfaxcounty,gov. F AQS from page I must be the primary residence and the homeowner must have made at least six payments on the property. As of March 1,2008, the homeowner must show a debt-to- income ratio of at least 31 percent and an inability to pay the debt. If the homeowner meets these requirements he or she may also apply if he or she is already facing foreclosure or bankruptcy, or if he or she is current on their mortgage currently but will soon facing a payment increase that they will be unable to pay. The cost to the homeowner to participate in this program includes an upfront mortgage insurance payment of 3 percent and a 1.5 percent annual premium that will be added to the monthly payments. The IOpercentequity created at the beginningof the new mortgage and any future appreciation in the value of the home must be shared equally with the FHA. Q. How does a homeowner . apply for H4H7 No applications are accepted directly from homeowners. The program application can be started by contacting the existing lender or another approved FHA lender who can initiate theprocess. It will take approximately 60 days to get through the process. Q. Do renters have any . rights during foreclo- sure? Renters frequently get involved in foreclosures when investors or speculators have purchased prop- erty hoping to make a profit from the rents. When property values slumped and they could not sell, they lost their investments. On May 20, 2009, President Obama signed the Protecting Tenants at Foreclosul1! Act of 2009 that allows leases to survive foreclosure. Prior to that, most renters lost their leases when their homes went into foreclosure and many were being evicted. The rule followed in most states is "first in time, first in right." This means that if the mortgage was recorded before the lease was signed, foreclosure wiped out the lease. The new law allows renters to stay at least until the end of their current leases and all month,to month renters are entitled to 90-day notice before they are required to vacate the property. (Ibis is a longer period than any state granted.) If the buyer of the foreclosed property is purchasing it as a pri- mary residence, a lease, regardless of its length, can be terminated with 9O-day notice. If the state law is more generous, it is not preempted, and all provisions and protections of this act apply to Section 8 tenants, also. 25 Counties with the Highest Foreclosure Rates in May 2009 1 54 2 60 Housing Units I 3 63 Properties with 4 66 Foreclosure 5 68 Filings 6 70 (i.e. one in every 7 71 X properties) 8 71 9 78 10 79 11 80 12 81 13 82 14 84 15 87 16 92 17 94 18 101 19 101 20 104 21 108 22 108 23 113 CompOed by NACo Research Division I 24 115 Information provided 25 116 by RealtyTrac 141 July 13, 2009 Hot Topics . County . NA!k--- Knowledge Share ~ A Peer-to-Peer Network TOiiGiiTiiiS -- What is it? * An opportunity to learn from other county officials * A resource center for technical assistance with new county projects * An up-to-date list of people across the country who have already addressed some of the same problems that you are now facing in your county * A database of officials who will share knowledge, information and resources How does it work? Go to www.naco.org. Under"County Resource Center;' select "Peer Ad- vice" and log in. Then select the is- sue that you are addressing. You can also choose to select peers from your own state or region. Once your selection has been made, a list of peers and their contact information will be generated especially for you. N "C 0 National Association of Counties Ii ..,. ..,... .......... ..... ..... "'- .... The Voice of America's Counties www.naco.org