LAKE WORTH CRA CONSORTIUM

Welcome

Topics:

Summary OverviewProperty InformationPartners and the Conveyance ProcessStatus of Rehabilitation and New Construction EffortsPhotos of Purchased PropertiesMarketingOpportunities for Local ContractorsBeneficiary Information Monitoring Neighborhood Impact

NSP-2 Authorization

Authorized under ARRA (American Recovery and Reinvestment Act) to address the affects of the foreclosure crisis on the nation’s communities

CRA, as lead applicant of the Consortium, applied in 2009 for Neighborhood Stabilization funds and was awarded funding in the early part of 2010

Received $23.2M (received full amount requested due to strength of Consortium and the demonstrated need within the identified area)

The program is designed to assist low to moderate income families and individuals with the purchase of a home

Lake Worth CRA Consortium

Our goal is to revitalize a very targeted area of the CRA

Partners were chosen with proven capacity and demonstrated history – most are local

This approach was used to increase our team’s application score, the abilities and experience to facilitate the program implementation process due to the tight timeframes for the expenditure of funds, and to help insure Program compliance and success

Half of the funds must be expended by February 11, 2012 and all funds must be expended by February 11, 2013

Consortium Members

City of Lake Worth The Urban Group Adopt-A-Family Habitat for Humanity of PBC Housing Partnership Stuart & Shelby Cannatelli Builders Craftsman Plus All Phase Services National Community Stabilization Trust Intelli-Green Lake Worth CDC Housing Leadership Council of PBC United Way of PBC The Lord’s Place Indiantown Non-profit Housing

Palm Beach State College Small Business Development Center (SBDC)

Families First of PBC Children’s Services Council Realtors Association of PBC Palm Beach State College

Plan includes social services to provide for long term stabilization of the neighborhoods

Consortium Members

Summary of Eligible Uses

Eligible Use A - Financing MechanismsEligible Use B - Acquisition and RehabEligible Use C - Land BankingEligible Use D - DemolitionEligible Use E - Redevelopment

Target Area

Entirely within the Lake Worth CRA District Primarily foreclosed, bank-owned properties will be targeted Can also include vacant and abandoned properties in some

cases Donated or City-surplus properties can also be used Area is large enough so we can possibly purchase up to 130

properties in the next two years but small enough to produce a significant impact with visible revitalization

Must meet rehabilitation and construction budget included in the action plan

Target Area

Target Area

NEIGHBORHOOD STABILIZATION PROGRAMREVIEW OF PROPERTIES SCHEDULED TO

TRANSFER TO AAF

• 402 SOUTH “F” STREET• EXISTING 4-UNIT • 1 BEDROOM / 1 BATH• NO WASHER/DRYER• NO A/C• NO IMPACT WINDOWS

• 427 NORTH “H” STREET• 2 EXISTING UNITS, FRAME CONST.• 2 BR / 1 BA & 1 BR / 1 BA• NO WASHER/DRYER, NO A/C• NO IMPACT WINDOWS• SEVERE DEFERRED MAINTENANCE

• 910 NORTH “D” STREET• EXISTING SF HOME, CBS• 2 BR / 1 BA, DETACHED GARAGE• NO WASHER/DRYER• NO IMPACT WINDOWS• REMODEL KITCHEN/BATH

•310 NORTH DIXIE #109• HAMMON PARK TOWNHOME• 3-STORY• 2 BEDROOM / 2 BATH• REPLACE APPLIANCES• EXCELLENT CONDITION

•310 NORTH DIXIE #105• HAMMOND PARK TOWNHOME• 3-STORY• 2 BEDROOM / 2 BATH• CLEAN, PAINT, CARPET,

APPLIANCES• GOOD CONDITION

•520 NORTH “C” STREET• EXISTING SF HOME FRAME

CONST.• 2 BR / 1 BA • NO IMPACT WINDOWS/DOORS• CLEAN, REFINISH FLOORS• MINOR REPAIRS, LANDSCAPE

402 South F Street

402 South F Floor & Site Plan

Floor Plan

•New Hurricane Impact

Windows

•New kitchen cabinets

& appliances

•New central a/c

•2-Bedrooms & 2-Baths

•Washer’s & Dryers

•1200 Square Feet per

unit

•In permitting

Site Plan

•Remove front parking

•Reorient rear parking

•Add open space in front and rear

•Retain existing landscaping where possible

310 NORTH DIXIE UNIT 105 & 109

Hammon Park •3-Story•2-Bedroom, 2-Bath•Garage•Washer/Dryer•New kitchen•Replace appliances•Minor clean, paint, carpet•No permits needed

427 North H Street

427 North H Street Site Plan

•Demolish existing structures

•Construct new 1200 square foot single-family residence

•2-Story

•On-site parking

•Increase outdoor space

427 NORTH “H” STREET FLOOR PLAN

• First floor living, dining, kitchen, ½ bath, washer dryer

• Second floor, 3 bedrooms & 2 full baths• Hurricane impact windows & doors

• Energy Star & gas appliances• Central A/C• Certify green

• Finalizing plan for permitting

910 North D Street

•SINGLE FAMILY HOME, DETACHED GARAGE

•2-BEDROOM 1-BATH

•REMODEL KITCHEN AND BATH

•GAS & ENERGY STAR APPLIANCES

•REPAINT, NEW FLOORING

•RENOVATE GARAGE

•LANDSCAPE

NEIGHBORHOOD STABILIZATION PROGRAMNEXT GROUP OF PROPERTIES FOR TRANSFER

26 SOUTH “E” STREET• CONVERT 12 EFFICIENCY UNITS TO 6, 2BR UNITS

324 SOUTH “F” STREET• DEMOLISH EXISTING, BUILD NEW TWO-FAMILY RESIDENCE

909 NORTH “E” STREET• DEMOLISH, BUILD NEW TWO-FAMILY RESIDENCE

30 SOUTH “D” STREET• DEMOLISH, BUILD NEW TWO-FAMILY RESIDENCE

305 NORTH “H” STREET• DEMOLISH, BUILD NEW TWO-FAMILY RESIDENCE

330-332 NORTH “H” STREET• DEMOLISH EXISTING, BUILD NEW THREE-FAMILY RESIDENCE

310 NORTH DIXIE, UNIT 108• Minor clean, paint, appliances

709 NORTH “H” STREET• VACANT LOT, BUILD NEW TWO-FAMILY RESIDENCE

408 SOUTH “E” STREET• DEMOLISH EXISTING, BUILD NEW SF RESIDENCE

Habitat for Humanity Amenities

Energy Star Certified homes FGBC Green Building Criteria Energy Star and gas appliances Higher insulation values than Florida Building Code requires Homes have storm mitigation measures built in

427 South F Street

401 South E Street

26 South E Street

430 South E Street

413 North D Street

Program Update

Following are some specific facts regarding the Consortium’s Actions to date:

Program Update - Continued

Since the approval to expend funds, the Consortium has purchased 46 properties (7 multi-family, 27 single-family and 12 vacant lots), which based on Consortium Developers’ plans, will ultimately produce between 50 and 55 Housing units (future sales and rentals) for the program. 46 properties equates to approximately 36% of the total number of properties we stated we would purchase through this program.

Program Update - continued

Cumulative Purchase Costs of the 46 properties purchased to date is approximately $2.4Million

Program Update - Continued

Consortium is purchasing properties at a price point approximately 15% below Fair Market Value, surpassing HUD overall requirements of 5% for the program

Currently there are about 54 properties in the “NSP-2 Pipeline”

Several new closings scheduled over the next two weeks

Consortium has submitted four Quarterly Reports to HUD, with the next one scheduled to be submitted in April. All reports are available on the CRA website (www.lakeworthcra.org/nsp)

Program Update - Marketing

Consortium Marketing efforts are centered around the following:

1. providing program awareness2. information on how to participate, and3. highlighting both the Program’s and the City’s

competitive advantages such as the energy-efficient homes - following Florida Green Building Coalition guidelines, lower-cost maintenance, opportunities for mortgage “buy-downs” without negatively affecting market value in the neighborhood, as well as the City’s central Palm Beach County location, proximity

Program Update - Marketing

to the Atlantic Ocean, and budding cultural and artistic

Renaissance.Examples of marketing efforts to date include: Developed flyers and posters for the program Installed signs on purchased lots Advertised in City utility bills Advertising Kiosk at Boynton Beach Mall Consortium Partner Monthly First Time Buyer

Workshops

Program Update - Marketing

Distribution of flyers to JFK Medical Center for posting

Consortium Affordable Housing presentation in Spanish, held March 5, 2011 at the Community Foundation of Palm Beach County

Upcoming: Planning advertising on Tri-Rail, minority

newspapers and web sites Public Service Radio spot Lake Worth Chamber of Commerce Breakfast,

scheduled for March 16, 2011

Program Update - Marketing

Distribution to Florida Atlantic University employees and visitors

Distribution of flyers to all personnel at PBSO Distribution to the Compass Center Consortium Partner (AAF) providing program

information to Palm Beach State College, as well as all Day-Care agencies in Palm Beach County

Program Update - Marketing

NSP and CRP

According to the Consortiums Application, CRP funding will be used to compliment the program, by developing home ownership opportunities for artists, the attraction of investment and on-going coordination with culturally based institutions.

Units built on both Lake and Lucerne can offer artists both live and work space. Plans are underway for the development of design plans. These plans will be presented to the CRA Board before going through the formal City process.

Opportunities for Local Contractors

As described earlier, the selection of Consortium Partners was critical in demonstrating our capacity to perform. This collective capability coupled with the demonstrated target area need, were the two most important factors in determining our award. Simply put, without having partners which collectively met and often exceeded the minimum successful output requirements reflected in the Notice of Funding Availability, the application would have been unsuccessful in this very competitive environment.

Opportunities for Local Contractors

That being said, there are and will continue to be ample opportunity for local residential contractors, tradesmen, and professional service providers to become involved and earn stimulus dollars through the NSP-2 Program.

Examples of non-construction opportunities that already exist include demolition services, asbestos and lead-based testing services, property protection (boarding/fencing), signage, printing, Seller-initiated real estate commissions

Opportunities for Local Contractors

Section 3 of the Housing and Urban Development (HUD) Act of 1968 applies to the NSP-2 program. In summary, this means that contracting opportunities, consistent with Federal, State and Local laws and regulations, shall to the greatest extent feasible, be directed to low and very-low income persons within the local Metropolitan Statistical Area (MSA). This area is defined as Palm Beach County, with a preference to qualified contractors within the City limits of the City of Lake Worth.

Opportunities for Local Contractors

Upcoming opportunities include architect/engineer services, construction material provision, and a whole host of residential rehabilitation/new construction sub-trade activities

The Consortium will place an advertisement for such services in the Sunday, March 13, 2011 Palm Beach Post, and will post the advertisement with the Lake Worth Chamber of Commerce, at City Hall, the City Annex, as well as the CRA’s NSP-2 website: www.lakeworthcra.org/nsp

Opportunities for Local Contractors

The Consortium will continue to post advertisements as needed, with the intent of building a full compliment of contractors with preference for work given to Section 3 residents and business concerns. The Consortium has developed a qualifications questionnaire and Section 3 eligibility forms, which will assist in evaluating and incorporating qualified local contractors, whether they qualify for a Section 3 preference or not.

Neighborhood Fiscal Impact

Lake Worth Target area contains approximately 1,800 addresses

Revitalized addresses 130 or 7.22% of areaImpact of vacant foreclosed home$-80,000

per home*Removal of 130 vacant foreclosed homes

80,000 X130 = 10,400,000 value impact 100 additional electric and water customersAdditional Sales for area merchants and sales

tax revenue

* Congressional Oversight Panel 2009 report on TARP

How NSP Helps the City

NSP already helps the City in many ways, and promises to continue to help during construction and once new owners are living in the home.

Following are some examples of how NSP is helping the City: Collection of over $10,000 in past due Utility charges Collection of nearly $29,000 in assessments and

administrative fees Collection of $2,900 in Lien and Building Searches Collection of $3,000 in Permit Fees

How NSP Helps the City

Collection of over $124,000 in property taxes Clean-up of purchased properties Marketing the City as a destination, promoting the City’s

proximity to the Beach, ongoing retail investment, cultural renaissance taking place downtown, etc.

To date, local real estate brokers have made over $30K in transaction fees related to NSP2.

“The final piece to your homeownership puzzle”

Stabilizing Neighborhoods Increasing Homeownership

Long Term Affordability $23.2 Million Investment in Lake Worth

Monitoring and Beneficiary Issues

Reporting Requirements

NSP2 requires federal reporting to ensure compliance and transparency.

Quarterly reporting must be completed and submitted 10 days following the completion of a quarter (i.e. quarter ends on March 31st, reporting is due April 10th.

All reports are posted on the CRA website (www.lakeworth cra.org), through DRGR and federal site (recovery.gov). RAMPS reporting (environmental) is also required on a quarterly basis.

Financial information is automatically populated by HUD. If is hasn’t been spent, it cannot be included in the grant. Reports based on actual expenditure.

Internal Monitoring

Program requires ongoing internal monitoring/technical assistance.

All consortium partners are monitored on a regular basis with an on-site visit at least once per year.

Contract monitoring specialist G. Scott Curry is conducting these monitorings.

Purpose of internal monitoring is to ensure compliance with all cross-cutting federal regulations, grant requirements, record keeping and outcome measures.

HUD Oversight

HUD monitors program on a weekly basis via reports from DRGR and grantee generated reports.

HUD also conducts “on-site” monitoring visits (CRA is scheduled for last week in April and HUD staff reserved the entire week).

HUD can (and will) visit any consortium partner during “on-site” monitoring to review files and make sure partner is in compliance and has done appropriate record keeping.

HUD will also physically inspect target area.

Beneficiary Requirements

Need to be within income guideline (at or below 120% of AMI)

Must be able to qualify for a first mortgageMust be US Citizens or a qualified legal alien

eligible to purchase propertyNo bankruptcies within 5 years or foreclosures in

past 6 yearsMust be able to qualify for 1st time FHA mortgageAll homes will be deed restricted; minimum 15

years

Beneficiary Requirements

Must not currently be a homeownerMust be able to apply for homestead

Exemption on the Property they are purchasing

Total debt cannot be more than 50% of their income

Housing Counseling

Buyers will receive Housing Counseling to ensure that they can afford the home and understand the transaction Mortgages in default in FL (90+days late) 14% Mortgages in default in South FL 23.6% Mortgage defaults with Housing

Counseling and down Payment assistance 4.5%

*Source Florida Housing Finance Corporation

For more information

General program and housing informationHUD (Housing & Urban Development) www.hud.govAll program information, including Quarterly reports can be found on the CRA web site Lake Worth NSP Programwww.lakeworthcra.org/nsp