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. Labor Day meeting - cancel or reschedule
9. Adjourn - 4:30 PM
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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