Revision to the Down Payment Assistance Program (DPA) Funded by The State Housing Initiative...
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Transcript of Revision to the Down Payment Assistance Program (DPA) Funded by The State Housing Initiative...
Revision to the Down Payment
Assistance Program (DPA)
Funded by The State Housing Initiative Partnership (SHIP)
Program
Presentation Outline
• Overview
• Housing Market Trends
• Downpayment Assistance Program
• Proposed Revisions to the Downpayment Assistance Program
• Action Requested
Presentation Outline
• Overview
• Housing Market Trends
• Downpayment Assistance Program
• Proposed Revisions to the Downpayment Assistance Program
• Action Requested
Overview
State Housing Initiatives Partnership Program (SHIP)
• Established 1992
• Funding source - Documentary Stamp Revenues
• 67 Counties and 48 Municipalities participate
• 5th Largest Recipient of SHIP Funds in the State
• Orange County received $5.2 million for Fiscal Year 2008-2009
– And will receive $0 for FY 2009-2010
Overview
State Housing Initiatives Partnership Program (SHIP) Activities
• Multi-Family Rehabilitation/Construction
• Single Family Rehabilitation/Construction
• Impact Fee Subsidy
• Down Payment Assistance
Presentation Outline
• Overview
• Housing Market Trends
• Downpayment Assistance Program
• Proposed Revisions to the Downpayment Assistance Program
• Action Requested
Housing Market Trends
• July 2007 Metro Orlando reached a record high median sales price of $264,436
• May 2009 the median price of existing homes in Metro Orlando dropped to $130,000
• The last time the median sales price was at this level was in 2002
Housing Market TrendsUnit Availability
2,6182,891
5,186
01,000
2,0003,000
4,0005,000
6,000
Under$119,999
$120,000 -$159,999
$160,000 -$199,999
19,123 Total Listings in Orange CountySource: Orlando Board of Realtors - MLS
June 3, 2009
Presentation Outline
• Overview
• Housing Market Trends
• Downpayment Assistance Program
• Proposed Revisions to the Downpayment Assistance Program
• Action Requested
Downpayment Assistance Program
• First-time income eligible homebuyers
• Property must be located within Orange County excluding City Limits of Orlando
• Homebuyers are required to complete Homebuyer education class
Downpayment Assistance Program
Current Levels of DPA Assistance
Very Low Income $35,000
Low Income $30,000
Moderate Income $20,000
• Average Down Payment Assistance Loan: $25,000
• Average number of households assisted: 325 per year
• Current budget will be expended by early 2010
Downpayment Assistance Program
Downpayment Assistance Program
Year SHIP Allocations
2005-2006 $5,840,038
2006-2007 $7,616,423
2007-2008 $7,688,950
2008-2009 $5,296,978
2009-2010 $0
Presentation Outline
• Overview
• Housing Market Trends
• Downpayment Assistance Program
• Proposed Revisions to the Downpayment Assistance Program
• Action Requested
Proposed Downpayment Assistance Program
• Current affordability level of housing market
• Reduction or elimination in SHIP Funding
• Doing more with less
Proposed Downpayment Assistance Program
Staff recommendation to decrease DPA subsidies
• Conducted consultation with industry providers
• Affordable Housing Advisory Board (AHAB) approved the recommendation on May 27, 2009
Decrease the maximum level of assistance
under the Down Payment Assistance Program
Income Level From To
Very Low Income $35,000$25,00
0
Low Income $30,000$17,50
0
Moderate Income
$20,000$
5,000
Proposed Downpayment Assistance Program
Presentation Outline
• Overview
• Housing Market Trends
• Downpayment Assistance Program
• Proposed Revisions to the Downpayment Assistance Program
• Action Requested
Action Requested
Approval of a revision to the State Housing Initiative
Partnership (SHIP) Program to decrease the level of assistance
under the Down Payment Assistance Program (DPA).