October 1, 2016 thru December 31, 2016 Performance

Transcription

1 Grantee: Grant:, MN B-08-UN October 1, 2016 thru December 31, 2016 Performance 1

2 Grant Number: B-08-UN Grantee Name:, MN Grant Award Amount: $3,885, LOCCS Authorized Amount: $3,885, Total Budget: $6,185, Obligation Date: 03/20/2009 Contract End Date: 03/20/2013 Grant Status: Active Estimated PI/RL Funds: $2,300, Award Date: 03/09/2009 Review by HUD: Reviewed and Approved QPR Contact: Tonja West-Hafner Disasters: Declaration Number No Disasters Found Narratives Areas of Greatest Need:, located within the Minneapolis-St. Paul-Bloomington, MN-WI MSA, is the largest unit of local government in the State of Minnesota. There are 46 municipalities within the County, with an estimated population of over 1.1 million people. Approximately one-third of the County s population lives in Minneapolis with the remaining two-thirds residing in suburban. The County encompasses 611 square miles. According to the U.S. Census Bureau, there were an estimated 495,993 housing units in in 2006; approximately 36 percent of housing units are in multi-unit structures (2000 Census data). Both in-court and out-of-court foreclosure proceedings are used in Minnesota; with both types of foreclosure proceedings, the borrower can stop the foreclosure any time before the foreclosure sale by paying the default amount, plus fees and allowable costs. The timeline for a Minnesota foreclosure is approximately four months, not including the redemption period (a borrower usually has a six-month redemption period, but some property types and mortgages allow for a 12-month redemption period). Consistent with national trends, has been significantly impacted by high rates of mortgage foreclosure. The number of mortgage foreclosure sales in (including suburban and the City of Minneapolis) increased from 920 in 2002 to 5,563 in A 34 percent foreclosure rate increase is forecast for 2008, when the number of foreclosure sales is expected to exceed 7,000 (there have been 5,603 mortgage foreclosure sales from January 1, 2008 through September 30, 2008). Source: Hennepin County Sheriff s Office (includes city of Minneapolis)Foreclosures in initially hit some cities/neighborhoods particularly hard: North Minneapolis, Brooklyn Park, Brooklyn Center, Robbinsdale and Crystal. Most experts agree that will continue to experience high rates of foreclosure and resulting problems for several years to come, spreading across additional cities as different categories of risky mortgages come under stress. Early in 2007, the Board of Commissioners recognized the increasing impact of mortgage foreclosures in. The County Board responded in the short term by providing foreclosure prevention counseling funds. In order to facilitate a broader, multifaceted response to the mortgage foreclosure crisis, the County Board also established a Foreclosure Task Force, which included representatives of the following departments: County Attorney; Sheriff s Office; Office of Budget and Finance; Taxpayer Services; Housing, Community Works and Transit; Human Services and Public Health; County Administration; and County Assessor. The Foreclosure Task Force completed an initial report which is available at The Foreclosure Task Force continues to meet and report quarterly to the County Board. The U.S. Department of Housing and Urban Development (HUD) has provided data from four sources (listed below) that are used to predict whether or not a Census Tract Block Group ( CTBG or neighborhood ) has a high or low risk for foreclosed and abandoned homes ( Estimated Foreclosure Abandonment Risk Score ): Office of Federal Housing Enterprise Overs Areas of Greatest Need: ight (OFHEO) data on decline in home values as of June 2008 compared to peak home value since 2000 at the Metropolitan/Micropolitan/Non-Metropolitan level. Federal Reserve Home Mortgage Disclosure Act (HMDA) data on percent of all loans made between 2004 and 2006 that are high cost at the Census Tract Level. Labor Department data on unemployment rates in places and counties as of June USPS data on residential addresses identified as being vacant for 90 days or longer as of June 2008 at the Census Tract level. The Estimated Foreclosure Abandonment Risk Score provides a score for each neighborhood from 0 to 10, where 0 suggest a very low risk and 10 suggest a very high risk. HUD data is available upon request or on the HUD website. While HUD s Estimated 2

3 Foreclosure Abandonment Risk Score does not provide the actual level of problem in each neighborhood (but rather indicates there is a risk for problems), it is a good starting point for identifying areas of greatest need and targeting NSP funds. has identified thirteen (13) cities that contain at least one neighborhood with an Estimated Foreclosure Abandonment Risk Score of 7 or higher: Risk Factor -- Municipalities Affected Brooklyn Center, Brooklyn Park, Minneapolis, Richfield 9 -- Brooklyn Center, Brooklyn Park, Crystal, Minneapolis, Richfield, Robbinsdale 8 -- Bloomington, Brooklyn Park, Crystal, Minneapolis, New Hope, Richfield, Robbinsdale 7 -- Bloomington, Brooklyn Park, Champlin, Crystal, Hopkins, Minneapolis, Mound, New Hope, Osseo, Richfield, St. Louis Park NOTE: the cities of Bloomington, Eden Prairie, Minneapolis, Minnetonka and Plymouth are Community Development Block Grant entitlement cities and eligible for direct NSP funding from HUD. This Substantial Amendment is for Urban (defined as all non-cdbg entitlement cities). Next, reviewed Sheriff s Office data regarding mortgage foreclosure sales for the period January 1, 2007 through September 30, In general, there was relatively high correlation between HUD s Estimated Foreclosure Abandonment Risk Score and actual mortgage foreclosure sales. However, County staff did note one community (Maple Grove) that received relatively low Risk Factor scores (3 6) but that has encountered significant (378 units) mortgage foreclosure sales activity. This lead the County to apply for NSP assistance from HUD. Distribution and and Uses of Funds:, as the lead agency of the Urban Community Development Block Grant (CDBG) Program, has received an allocation of $3,885,729 from the U.S. Department of Housing and Urban Development (HUD) under the Neighborhood Stabilization Program (NSP). This program is to assist in the redevelopment of abandoned and foreclosed homes, and was authorized by the Housing and Economic Recovery Act of 2008 (HERA), signed July 31, The Urban CDBG Program consists of and 40 suburban cities, which have all executed Joint Cooperation Agreements enabling the County to secure and administer CDBG Program funding. In allocating NSP funds, HUD requires recipients to target those areas of greatest need, based on: 1. The number and percentage of home foreclosures; 2. The number and percentage of homes financed by a subprime mortgage related loan; and 3. The number and percentage of homes in default or delinquency. Using data compiled by HUD and local data on the number of mortgage foreclosure sales from January 1, 2007 through September 30, 2008, staff has identified 12 suburban cities with the greatest concentrations of NSP target areas: Tier One (highest need) Tier Two Brooklyn Center Champlin Brooklyn Park Hopkins Crystal Maple Grove New Hope Mound Richfield Osseo Robbinsdale &nbs Distribution and and Uses of Funds: ; St. Louis Park Together these 12 cities represent approximately 67 percent (3,824 out of 5,723) of mortgage foreclosure sales in suburban from January 1, 2007 through September 30, has formulated an NSP strategy based on discussions with the County Board throughout the year regarding housing foreclosure and related issues and dialogue with suburban cities, the city of Minneapolis, Minnesota Housing, the Family Housing Fund and other organizations actively involved in housing and foreclosure issues. s NSP Application incorporates the following program strategy: 1. will initially target Tier One cities listed above, with Tier Two cities included as available funding permits. 2. Federal funds will support multiple activities to address foreclosure needs in Hennepin communities including homeownership assistance, loans for the purchase and rehabilitation of foreclosed homes, assistance to nonprofit organizations for acquisition, rehabilitation and sale of foreclosed homes, and demolition of blighted properties. 3. Leverage, to the greatest extent possible, private funding. 4. Impact the greatest number of foreclosed units possible. s NSP Application identifies the following program activities, Potential Partners, Allocation and Projected NSP Units (not counting recycling opportunities, except where noted), plus administration, for implementation by the County: 1. NSP Homeownership Assistance Programs--Homebuyers--$410, units 2. NSP Purchase Rehabilitation Loan Programs--Homebuyers--$380, units, 3. NSP Affordable Housing Acquisition/Rehabilitation--*Land trust, Habitat for Humanity, cities, for-profit and nonprofit developers-- $972, units 4. NSP Demolition and Land Banking-- and eligible Cities--$600, units 5. NSP Acquisition/ Rehabilitation Revolving Loan Programs--For-profit and nonprofit developers--$600, units 6. NSP FHA Rehabilitation--, cities, for-profit and nonprofit developers--$600, * (includes recycling opportunities) units 7. Program Administration----$323,729, TOTAL $3,885, units * NSP regulations require that at least 25 percent of NSP funds be used to benefit households at or below 50 percent of area median income. The above resource allocation minimizes the per unit subsidy (approximately $30,000), while potentially leveraging $37 million in private mortgage financing. In addition, this resource allocation enables the County to target 20 percent of the lender-mediated property currently for sale on the Multiple Listing Service (MLS) 1,807 units as of October Final administrative procedures and city funding allocations are not detailed in the Draft NSP application. It is anticipated that some program elements (i.e. homebuyer assistance) may best be streamlined under one County-administered program, while others(i.e. 3

4 acquisition/rehabilitationrevolving loans)may be best administered Acquisition and Relocation: Distribution and and Uses of Funds: by individual cities. Final administrative responsibilities and procedures will be defined before February 1, July Overall update on funds, activities and unit counts. We have had to shift funds around to activites that were really working for our target areas. We had a lot more homebuyers that were below 50% AMI able to buy in the target areas. However, the amount of assistance we anticipated was impacted by this. Also, providing or requiring that some buyers also take the rehabilitation funds also has impacted our overall households assisted number if you do not double count those households. Our original estimate was reflecting that that would be a separate program. However, it was not workable within the perimeters of NSP to have it separate from the buyer assistance. We had to stop the buyer programs and move funds to Acq Rehab to ensure that the obligation deadline can be met. This also impacts households served because of higher costs of those activities. In addition, we determined that we really were not going to be land banking any properties. So, those budget and the households count were moved to the Acq Rehab activity. Definitions and Descriptions: Low Income Targeting: Public Comment: Overall Total Projected Budget from All Sources Total Budget Total Obligated Total Funds Drawdown Program Funds Drawdown Program Income Drawdown Program Income Received Total Funds Expended Match Contributed This Report Period To Date N/A $6,185, $6,185, $6,185, $207, $5,917, $180, $26, $3,772, $2,144, $2,144, $5,611,

5 Progress Toward Required Numeric Targets Requirement Required Overall Benefit Percentage (Projected) Overall Benefit Percentage (Actual) Minimum Non-Federal Match Limit on Public Services $582, Limit on Admin/Planning $388, Limit on State Admin To Date 0.00% 0.00% $323, $323, Progress Toward Activity Type Targets Progress Toward National Objective Targets National Objective Target Actual NSP Only - LH - 25% Set-Aside $971, $1,699, Overall Progress Narrative: We apologize for this report being late. We had one propery sell to a homebuyer this quarter. However, have one more property, which we have funded out of NSP1 and NSP3 PI, for which rehab should be complete soon. We hope it will sell quickly. The other activities are complete or were not used. We will be working on reconciliation of funding, and unit counts working towards close out. We anticipate the need to complete Action Plan amendments. We will also plan to be completing any budget adjustments and draws during the next quarter, but it could be the following quarter, as we are waiting for final budgets and requests on a few of the properties and we still have the one to sell. Project Summary Project #, Project Title This Report Period To Date Program Funds Drawdown Project Funds Budgeted Program Funds Drawdown 1, Financing Mechanisms -- NSP Homebuyer Assistance $804, $752, , Purchase & Rehab -- NSP Acquisition and Rehabilitation $180, $5,057, $2,780, , NSP Demo & Land Banking 4, NSP Administration $323, $239,

6 Activities Project # / Title: 1 / Financing Mechanisms -- NSP Homebuyer Assistance Grantee Activity Number: Activity Title: NSP thru 04 Financing Mech - Homebuyer Assistance- 50% HH Activitiy Category: Homeownership Assistance to low- and moderate-income Project Number: 1 Projected Start Date: 03/20/2009 Benefit Type: Direct ( HouseHold ) National Objective: NSP Only - LH - 25% Set-Aside Activity Status: Under Way Project Title: Financing Mechanisms -- NSP Homebuyer Assistance Projected End Date: 10/01/2010 Completed Activity Actual End Date: Responsible Organization: Overall Total Projected Budget from All Sources Total Budget Total Obligated Total Funds Drawdown To Date $263, $263, $263, $263, Program Funds Drawdown $211, Program Income Drawdown $51, Program Income Received Total Funds Expended Oct 1 thru Dec 31, 2016 N/A $263, $263, Match Contributed Activity Description: A. Establish financing Mechanisms for the purchase and redevelopment of foreclosed upon homes and residential properties. We have created two programs to help want to be homeowners to purchase: NSP Homebuyer Assistance Program; and NSP Homebuyer Rehabiliation Assistance Program. This part of the funding will be used if we are able to serve households at or below 50% of AMI We increased this budget and households benefiting over the course of this activity to reflect the number and amount of funds we were able to use for 50% Households. Overall we have assisted less households than we anticipated because the average household assistance was much higher than we originally anticipated. Location Description: 6

7 HUD Target Areas in Brooklyn Center, Brookly Park, New Hope and Crystal Activity Progress Narrative: Actvity is complete. Accomplishments Performance Measures This Report Period Total # of Housing Units 0 # of Singlefamily Units 0 Cumulative Actual Total / Expected Total 9/9 9/9 Beneficiaries Performance Measures This Report Period Cumulative Actual Total / Expected Low Mod Total Low Mod Total Low/Mod # of Households /9 0/0 9/ # Owner Households /9 0/0 9/ Activity Locations No Activity Locations found. Other Funding Sources Budgeted - Detail No Other Match Funding Sources Found Other Funding Sources No Other Funding Sources Found Total Other Funding Sources Amount 7

8 Grantee Activity Number: Activity Title: NSP to 04 Financing Mechanisms -NSP Homebuyer Assistance Activitiy Category: Homeownership Assistance to low- and moderate-income Project Number: 1 Projected Start Date: 03/20/2009 Benefit Type: Direct ( HouseHold ) National Objective: NSP Only - LMMI Activity Status: Under Way Project Title: Financing Mechanisms -- NSP Homebuyer Assistance Projected End Date: 10/01/2010 Completed Activity Actual End Date: Responsible Organization: Overall Total Projected Budget from All Sources Total Budget Total Obligated Total Funds Drawdown To Date $541, $541, $541, $541, Program Funds Drawdown $541, Program Income Drawdown Program Income Received Total Funds Expended Oct 1 thru Dec 31, 2016 N/A $541, $541, Match Contributed Activity Description: A. Establish financing Mechanisms for the purchase and redevelopment of foreclosed upon homes and residential properties. We have created two programs to help want to be homeowners to purchase: NSP Homebuyer Assistance Program; and NSP Homebuyer Rehabiliation Assistance Program. We decreased this budget and households benefiting over the course of this activity to reflect the number and amount of funds we were able to use for Households under 120% AMI during the time we had the project open. We had to close the program and move the remaining budget to Acq/Rehab to ensure that funds would get obligated by the deadline. Overall we have assisted less households than we anticipated because the average household assistance was much higher than we originally anticipated. Location Description: The HUD Target areas in Brooklyn Center, Brooklyn Park, New Hope and Crystal Activity Progress Narrative: Actvity is complete. 8

9 Accomplishments Performance Measures This Report Period Total # of Housing Units 0 # of Singlefamily Units 0 Cumulative Actual Total / Expected Total 23/23 23/23 Beneficiaries Performance Measures This Report Period Cumulative Actual Total / Expected Low Mod Total Low Mod Total Low/Mod # of Households /0 23/23 23/ # Owner Households /0 23/23 23/ Activity Locations No Activity Locations found. Other Funding Sources Budgeted - Detail No Other Match Funding Sources Found Other Funding Sources No Other Funding Sources Found Total Other Funding Sources Amount Project # / Title: 2 / Purchase & Rehab -- NSP Acquisition and Rehabilitation Grantee Activity Number: Activity Title: NSP to 13 B. Acqusition Rehabilitation Activitiy Category: Rehabilitation/reconstruction of residential structures Project Number: 2 Projected Start Date: 03/20/2009 Benefit Type: Direct ( HouseHold ) National Objective: NSP Only - LMMI Activity Status: Under Way Project Title: Purchase & Rehab -- NSP Acquisition and Projected End Date: 04/01/2014 Completed Activity Actual End Date: Responsible Organization: Overall Oct 1 thru Dec 31, 2016 To Date 9

10 Total Projected Budget from All Sources Total Budget Total Obligated Total Funds Drawdown $3,620, $3,620, $3,620, $3,352, Program Funds Drawdown $180, $2,022, Program Income Drawdown $26, $1,330, Program Income Received N/A Total Funds Expended $207, $1,673, $3,048, Match Contributed Activity Description: $3,048, B. Purchase and Rehabiliation of homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent or redevelop such homes and properties. Location Description: NSP Target Areas in Brooklyn Center, Brooklyn Park, Crystal Activity Progress Narrative: We had one propery sell to a homebuyer this quarter. However, have one more property, which we have funded out of NSP1 and NSP3 PI, for which rehab should be complete soon. We hope it will sell quickly. We will be working on reconciliation of funding, and unit counts. We anticipate the need to complete Action Plan amendments. We will also be hopefully be completing any budget adjustments and draws during the next quarter, but it could be hte following quarter, as we are waiting for final budgets and requests on a few of the properties and we still have the one to sell. Accomplishments Performance Measures This Report Period Total # of Housing Units 1 # of Singlefamily Units 1 Cumulative Actual Total / Expected Total 23/25 23/25 Beneficiaries Performance Measures This Report Period Cumulative Actual Total / Expected Low Mod Total Low Mod Total Low/Mod # of Households /0 23/25 25/ # Owner Households /0 23/25 25/ Activity Locations Address City County State Zip Status / Accept Address Support Information 10

11 Address: 3301 Poe Road, Brooklyn Center, Minnesota Property Status: Affordability Start Date: Completed 10/24/2016 Description of Affordability Strategy: Affordability End Date: 10/25/2021 Recapture Activity Type for End Use: Homeownership Assistance to low- and moderate- National Objective for End Use: NSP Only - LMMI Description of End Use: Projected Disposition Date: Date National Objective is met: Actual Disposition Date: Deadline Date: homeownership Address: st Ave N, Brooklyn Park, Minnesota Property Status: Affordability Start Date: Completed 08/30/2016 Description of Affordability Strategy: Affordability End Date: 08/31/2021 Recapture Activity Type for End Use: Projected Disposition Date: Homeownership Assistance to low- and moderate- 06/30/2016 National Objective for End Use: Date National Objective is met: NSP Only - LMMI 08/30/2016 Description of End Use: Actual Disposition Date: 08/30/2016 Deadline Date: homeownership Other Funding Sources Budgeted - Detail No Other Match Funding Sources Found Other Funding Sources No Other Funding Sources Found Total Other Funding Sources Amount Project # / Title: 3 / NSP Demo & Land Banking Grantee Activity Number: Activity Title: Activitiy Category: Clearance and Demolition Project Number: 3 NSP thru 18 NSP Demolition -- 50% HH Activity Status: Under Way Project Title: NSP Demo & Land Banking 11

12 Projected Start Date: 03/20/2009 Benefit Type: Direct ( HouseHold ) National Objective: NSP Only - LH - 25% Set-Aside Projected End Date: 04/01/2014 Completed Activity Actual End Date: Responsible Organization: Overall Total Projected Budget from All Sources Total Budget Total Obligated Total Funds Drawdown To Date Program Funds Drawdown Program Income Drawdown Program Income Received Total Funds Expended Oct 1 thru Dec 31, 2016 N/A Match Contributed Activity Description: D. Demolition of blighted structures to be redeveloped in to housing units for households at or below 50% AMI We are zeroing out this Activity. We have found that we will not be land banking any properties. The city partners will ensure that units will be rebuilt on the properties during the initial four years when we have access to NSP funds to help with the project. Location Description: NSP target areas in Brookln Center, brooklyn Park, Crystal, New Hope, and Robbinsdale Activity Progress Narrative: Accomplishments Performance Measures No Accomplishments Performance Measures 12

13 Beneficiaries Performance Measures Activity Locations No Activity Locations found. This Report Period Cumulative Actual Total / Expected Low Mod Total Low Mod Total Low/Mod # of Households /0 0/0 0/0 0 Other Funding Sources Budgeted - Detail No Other Match Funding Sources Found Other Funding Sources No Other Funding Sources Found Total Other Funding Sources Amount 13

14 Grantee Activity Number: Activity Title: Activitiy Category: Clearance and Demolition Project Number: 3 Projected Start Date: 03/20/2009 Benefit Type: Direct ( HouseHold ) National Objective: NSP Only - LMMI NSP to 18 NSP Demolition Activity Status: Under Way Project Title: NSP Demo & Land Banking Projected End Date: 04/01/2014 Completed Activity Actual End Date: Responsible Organization: Overall Total Projected Budget from All Sources Total Budget Total Obligated Total Funds Drawdown To Date Program Funds Drawdown Program Income Drawdown Program Income Received Total Funds Expended Oct 1 thru Dec 31, 2016 N/A Match Contributed Activity Description: D. NSP Demolition of blighted structures. This could also include properties that would be put into the land bank. We are zeroing out this Activity. We have found that we will not be land banking any properties. The city partners will ensure that units will be rebuilt on the properties during the initial four years when we have access to NSP funds to help with the project. Location Description: NSP Target Areas in Brooklyn Center, Brooklyn Park, Crystal, New Hope and Robbinsdale Activity Progress Narrative: Accomplishments Performance Measures This Report Period Total # of Properties 0 Cumulative Actual Total / Expected Total 0/0 14

15 Beneficiaries Performance Measures No Beneficiaries Performance Measures found. Activity Locations No Activity Locations found. Other Funding Sources Budgeted - Detail No Other Match Funding Sources Found Other Funding Sources No Other Funding Sources Found Total Other Funding Sources Amount Project # / Title: 4 / NSP Administration Grantee Activity Number: Activity Title: Activitiy Category: Administration Project Number: 4 Projected Start Date: 03/20/2009 Benefit Type: ( ) National Objective: N/A NSP NSP Administration Activity Status: Under Way Project Title: NSP Administration Projected End Date: 04/01/2014 Completed Activity Actual End Date: Responsible Organization: Overall Oct 1 thru Dec 31, 2016 To Date Total Projected Budget from All Sources N/A $323, Total Budget Total Obligated Total Funds Drawdown $323, $323, $323, Program Funds Drawdown $239,

16 Program Income Drawdown $84, Program Income Received Total Funds Expended $323, $323, Match Contributed Activity Description: This is Program Administration for the implementation of the NSP Program Funds. Location Description: HUD Target Areas Activity Progress Narrative: Actvity is complete. Accomplishments Performance Measures No Accomplishments Performance Measures Beneficiaries Performance Measures No Beneficiaries Performance Measures found. Activity Locations No Activity Locations found. Other Funding Sources Budgeted - Detail No Other Match Funding Sources Found Other Funding Sources No Other Funding Sources Found Total Other Funding Sources Amount 16