View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

The	
  Miami-­‐Fort	
  Lauderdale-­‐Pompano	
  Beach,	
  FL	
  Metropolitan	
  StaEsEcal	
  Area	
  (Miami)	
  is	
  located	
  along	
  the	
  southeastern	
  coast	
  of	
  Florida	
  and	
  includes	
  3	
  counEes:	
  	
  Broward,	
  
(includes	
  City	
  of	
  Miami)	
  and	
  Palm	
  Beach.	
  The	
  challenges	
  in	
  the	
  Miami	
  housing	
  market,	
  as	
  in	
  other	
  parts	
  of	
  Florida,	
  have	
  been	
  more	
  severe	
  than	
  those	
  in	
  most	
  areas	
  of	
  the	
  n
currently	
  ranks	
  first	
  in	
  the	
  naEon	
  for	
  the	
  share	
  of	
  mortgages	
  at	
  risk	
  of	
  foreclosure	
  -­‐	
  those	
  90	
  or	
  more	
  days	
  delinquent	
  or	
  in	
  the	
  foreclosure	
  process.	
  	
  ContribuEng	
  to	
  the	
  hig
distressed	
  mortgages	
  is	
  a	
  long	
  foreclosure	
  processing	
  Eme	
  in	
  Florida	
  (the	
  third	
  longest	
  among	
  states),	
  as	
  lender	
  processing	
  delays	
  and	
  a	
  backlog	
  in	
  the	
  courts	
  contribute	
  to
of	
  mortgages	
  remaining	
  in	
  the	
  foreclosure	
  pipeline.	
  	
  During	
  the	
  early	
  part	
  of	
  the	
  last	
  decade,	
  local	
  home	
  prices	
  rose	
  at	
  nearly	
  double	
  the	
  pace	
  of	
  the	
  naEonal	
  average.	
  	
  As	
  a
prices	
  in	
  Miami	
  have	
  since	
  fallen	
  more	
  steeply	
  than	
  in	
  most	
  parts	
  of	
  the	
  country.	
  Reduced	
  property	
  values	
  	
  and	
  the	
  extent	
  of	
  underwater	
  mortgages	
  in	
  the	
  current	
  market	
  
fueled	
  by	
  investor	
  speculaEon	
  and	
  excess	
  housing	
  construcEon	
  in	
  the	
  years	
  prior	
  to	
  the	
  housing	
  crisis,	
  but	
  mainly	
  by	
  rising	
  defaults,	
  driven	
  first	
  by	
  unsustainable	
  	
  subprime
beginning	
  in	
  2007,	
  then	
  by	
  the	
  economic	
  downturn	
  and	
  climbing	
  unemployment.	
  Economic	
  condiEons	
  in	
  Miami	
  are	
  improving,	
  but	
  the	
  local	
  housing	
  market	
  remains	
  fragil
concentraEons	
  of	
  distressed	
  mortgages,	
  large	
  numbers	
  of	
  vacancies,	
  and	
  48	
  percent	
  of	
  home	
  mortgages	
  underwater.	
  	
  Access	
  to	
  available	
  credit	
  also	
  remains	
  a	
  barrier	
  for	
  p
exisEng	
  homeowners.	
  However,	
  the	
  AdministraEon’s	
  broad	
  approach	
  to	
  stabilize	
  the	
  housing	
  market	
  has	
  been	
  a	
  real	
  help	
  to	
  homeowners	
  in	
  Miami	
  and	
  surrounding	
  ciEes
addendum	
  to	
  the	
  Obama	
  AdministraEon’s	
  Housing	
  Scorecard	
  provides	
  a	
  summary	
  of	
  trends	
  and	
  condiEons	
  in	
  the	
  local	
  economy	
  and	
  the	
  impact	
  of	
  the	
  AdministraEon’s	
  eff
stabilize	
  the	
  housing	
  market	
  and	
  help	
  local	
  homeowners.	
  
	
  

U.S Department of Housing and Urban Development
U.S. Department of the Treasury

Spotlight on the Housing

Market in Miami-Fort LauderdalePompano Beach, Florida
Population Growth, Employment, and Housing Market:

	
  
With	
  a	
  populaEon	
  of	
  5.56	
  million	
  people	
  according	
  to	
  the	
  most	
  recent	
  Census,	
  the	
  
Miami	
  MSA	
  is	
  the	
  8th	
  largest	
  in	
  the	
  naEon.	
  From	
  2000	
  to	
  2010,	
  populaEon	
  growth	
  was	
  
moderate,	
  increasing	
  at	
  an	
  average	
  rate	
  of	
  1.1	
  percent	
  per	
  year.	
  	
  MigraEon	
  accounted	
  
for	
  nearly	
  57	
  percent	
  of	
  the	
  increase	
  during	
  this	
  E
with	
  the	
  most	
  r
t on the Housing Market in Miami-Fort Lauderdale-Pompano Beach, Florida etween	
  2000	
  and	
  2005.	
  In	
  Mme	
  period,	
  County,	
  	
  where	
  apid	
  City	
  of	
  
migraEon	
  occurring	
  b
iami-­‐Dade	
  
the	
  
Miami	
  is	
  located,	
  the	
  populaEon	
  increased	
  by	
  an	
  average	
  of	
  24,250	
  people,	
  or	
  1.1	
  
percent,	
  annually	
  
ama Administration's Efforts to Stabilize the Housing Market and Help American Homeowners - July 2012 from	
  2000	
  to	
  2010.	
  	
  

Miami	
  Housing	
  Unit	
  Growth	
  Outpaced	
  Population	
  and	
  Household	
  Grow
During	
  the	
  Past	
  Decade

Date	
  of	
  Census
Miami	
  Population
	
  	
  	
  Annual	
  Growth	
  Rate	
  
Miami	
  Households
	
  	
  	
  Annual	
  Growth	
  Rate	
  
Miami	
  Housing	
  Units
	
  	
  	
  Annual	
  Growth	
  Rate	
  

4/1/00
5,007,956
-­‐
1,905,394
-­‐
2,149,749
-­‐

4/1/10
5,564,635
1.1%
2,097,626
1.0%
2,464,417
1.5%

ach,	
  FL	
  Metropolitan	
  StaEsEcal	
  Area	
  (Miami)	
  is	
  located	
  along	
  the	
  southeastern	
  coast	
  of	
  Florida	
  and	
  includes	
  3	
  counEes:	
  	
  Broward,	
  Miami-­‐Dade	
  
	
  The	
  challenges	
  in	
  the	
  Miami	
  housing	
  market,	
  as	
  in	
  other	
  parts	
  of	
  Florida,	
  have	
  been	
  more	
  severe	
  than	
  those	
  in	
  most	
  areas	
  of	
  the	
  naEon.	
  	
  Miami	
  
Source: Census Bureau (2000 and 2010 Decennial)
	
  share	
  of	
  mortgages	
  at	
  risk	
  of	
  foreclosure	
  -­‐	
  those	
  90	
  or	
  more	
  days	
  delinquent	
  or	
  in	
  the	
  foreclosure	
  process.	
  	
  ContribuEng	
  to	
  the	
  high	
  share	
  of	
  
e	
  processing	
  Eme	
  in	
  Florida	
  (the	
  third	
  longest	
  among	
  states),	
  as	
  lender	
  processing	
  delays	
  and	
  a	
  backlog	
  in	
  the	
  courts	
  contribute	
  to	
  a	
  high	
  share	
  
	
  
re	
  pipeline.	
  	
  During	
  the	
  early	
  part	
  of	
  the	
  last	
  decade,	
  local	
  home	
  prices	
  rose	
  at	
  nearly	
  double	
  the	
  pace	
  of	
  the	
  naEonal	
  average.	
  	
  As	
  a	
  result,	
  home	
  
eeply	
  than	
  in	
  most	
  parts	
  of	
  the	
  country.	
  Reduced	
  property	
  values	
  	
  and	
  the	
  extent	
  of	
  underwater	
  During	
  the	
  decade	
  urrent	
  market	
  were	
  partly	
   housing	
  producEon	
  exceeded	
  household	
  growth	
  in	
  the	
  Miami	
  MSA;	
  net	
  annual	
  housing	
  unit	
  growth	
  at	
  1.5	
  percent	
  was	
  grea
mortgages	
  in	
  the	
  c spanned	
  by	
  the	
   ensus,	
  n
U.S. Department of Housing than	
  the	
  cnsustainable	
  	
   populaEon	
  Cortgages	
  ew	
  Office of Policy Development and Research
and Urban Development |
s	
  housing	
  construcEon	
  in	
  the	
  years	
  prior	
  to	
  the	
  housing	
  crisis,	
  but	
  mainly	
  by	
  rising	
  defaults,	
  driven	
  first	
  by	
  uorresponding	
  subprime	
  mand	
  household	
  growth	
  rates	
  of	
  1.1	
  and	
  1.0	
  percent,	
  respecEvely.	
  	
  Although	
  Miami	
  normally	
  has	
  a	
  relaEvely	
  larger	
  stock	
  of	
  housing	
  units
are	
  held	
  for	
  s arket	
  remains	
  fragile	
  -­‐	
   to	
  other	
  a
	
  downturn	
  and	
  climbing	
  unemployment.	
  Economic	
  condiEons	
  in	
  Miami	
  are	
  improving,	
  but	
  the	
  local	
  housing	
  measonal	
  use	
  compared	
  with	
  high	
   reas,	
  this	
  intercensal	
  growth	
  in	
  the	
  housing	
  stock	
  indicates	
  excess	
  construcEon	
  contributed	
  to	
  an	
  oversupply	
  of	
  housing	
  and	
  m
have	
  led	
  to	
  steeper	
   a	
  barrier	
  for	
  p aher	
  2006.	
  A
large	
  numbers	
  of	
  vacancies,	
  and	
  48	
  percent	
  of	
  home	
  mortgages	
  underwater.	
  	
  Access	
  to	
  available	
  credit	
  also	
  remains	
  price	
  declines	
  otenEal	
  and	
   ccording	
  to	
  the	
  Census	
  Bureau,	
  the	
  number	
  of	
  vacant	
  units	
  in	
  Miami	
  increased	
  by	
  an	
  average	
  of	
  12,250	
  units,	
  or	
  5.0	
  percent
The Miami-Fort Lauderdale-Pompano Beach, FL Metropolitan StatisticaliEes.	
  This	
   the	
  naEonal	
   is located along the	
  s southeastern coast of Florida cause	
   includes three
annually	
  d and	
  sthe	
  2000s,	
  h Area
ministraEon’s	
  broad	
  approach	
  to	
  stabilize	
  the	
  housing	
  market	
  has	
  been	
  a	
  real	
  help	
  to	
  homeowners	
  in	
  Miami	
  uring	
  urrounding	
  cigher	
  than	
  (Miami) rate	
  of	
  4.4	
  percent	
  during	
  the ame	
  period.	
  	
  Investor	
  speculaEon	
  was	
  a	
  major	
  and of	
  overbuilding	
  in	
  Miami	
  in	
  the	
  yea
’s	
  Housing	
  Scorecard	
  provides	
  a	
  summary	
  of	
  trends	
  and	
  condiEons	
  (includes City and	
  the	
  leading	
  onto	
  the	
  crisis,	
  wBeach. The purchases	
  represenEng	
  a	
  larger	
  stheir of	
  total	
  purchases	
  than	
  in	
  as naEon.	
  Specifically,	
  from	
  2Florida, haveales	
  to	
  invest
impact	
   f	
  the	
   Palm ith	
  investor	
  h to	
  
counties: Broward, Miami-Dade in	
  the	
  local	
  economy	
   of Miami) iandAdministraEon’s	
  efforts	
  ome	
  challenges in the Miami housing market, the	
   in other parts of 000	
  to	
  2006,	
  home	
  s
CoreLogic revised hare	
   methodology for
the	
  Miami-­‐Miami	
  B
ose	
  from	
  8 o	
  19	
  
cal	
  homeowners.	
  
been more severe than those in most areas of the nation. Miami each-­‐Kendall	
  Mrankswfirst in theconstrucEon	
  opercent	
  borrowersof hile	
  tuhe	
  corresponding	
  risk to	
  owner	
  occupants	
  as	
  8nvestors.	
  According	
  to	
  C
currently etropolitan	
  Division	
  restimating	
  tunderwater cof	
  acll	
  sales,	
  recently. which	
  did	
  not	
  ncrease	
  for	
  the	
  naEon	
  w or	
  -i 	
  tthose
nation forinner	
   ity	
   ondominium	
   nits	
  
the share w mortgages at i sell	
   of foreclosure o	
  15	
  percent.	
  Another	
  
of	
  overbuilding	
  in	
  Miami	
  prior	
  to	
  the	
  crisis	
   as	
  speculaEve	
  
f	
  
The updated national data is available for 2012 Q1;
Vultures®	
  LLC,	
  greater	
  downtown	
   the high share of distressed mortgages ishe	
  boom	
  that	
   egan	
  in	
  2003.	
  As	
  of	
  the	
  fourth	
  quarter	
  of	
  2011,	
  
22,250	
  
t the third
90 or more days delinquent or in the foreclosure process. Contributing to Miami	
  added	
  approximately	
  data forcondominium	
  units	
  during	
  available soon.blongest foreclosure processing approxima
Miami
2012 Q1 will hopefully
Authority.	
  	
  	
  	
  	
  
time among states, as lender processing delays and56	
  percent	
  of	
  downtown	
  condominium	
  units	
  were	
  renter-­‐occupied,	
  according	
  tofQ4 Miami	
  Downtown	
  Development	
  the foreclosure pipeline.
a backlog in the courts contribute to a high share o	
  the	
   for Miami is included in
Updated data for 2011 mortgages extending
	
  

The Obama Administration’s Efforts to Stabilize the Housing Market and Help American Homeowners | July 2012

the of
During the early part of the last decade, local home prices rose at nearly double the pace text.the national average. Since that time, home prices in Miami
have fallen
ent, and Housing Market:more steeply than in most parts of the country. Reduced property values and the extent of underwater mortgages in the current market were
Miami	
  Housing	
   and excess housing construction in the
partly fueled by investor speculation Unit	
  Growth	
  Outpaced	
  Population	
  and	
  Household	
  Growth	
   years prior to the housing crisis, but were also driven by rising defaults due to
During	
  t
according	
  to	
  the	
  most	
  recent	
  Census,	
  the	
  
	
  
unsustainable subprime mortgages beginning inhe	
  Past	
  Decade by the economic downturn and climbing unemployment. Economic conditions in Miami are
2007, then
n.	
  From	
  2000	
  to	
  2010,	
  populaEon	
  growth	
  was	
  
A	
  m
Date	
  of	
  Census
4/1/00odest	
  economic	
  recovery	
  is	
  underway	
  in	
  Miami.	
  The	
  local	
  economy	
  expanded	
  by	
  an	
  average	
  of	
  60,800	
  jobs,	
  or	
  2.8	
  percent,	
  per	
  year,	
  from	
  the	
  third	
  quarter	
  of	
  2003	
  t
4/1/10
improving, but the
of	
  1.1	
  percent	
  per	
  year.	
  	
  MigraEon	
  accounted	
  local housing market remains fragile – of	
  2007.	
  As	
  a	
  result	
  of	
  the	
  recent	
  recession,	
  distressedosses	
  occurred,	
  averaging	
  108,400	
  jobs,	
  or	
  4.5	
  percent,	
  per	
  year,	
  and 45he	
  third	
  quarter	
  of	
  2007	
  th
quarter	
   with high concentrations of significant	
  job	
  l mortgages, large numbers of vacancies, beginning	
  t percent of
Miami	
  Population
5,007,956
5,564,635
ng	
  this	
  Eme	
  period,	
  with	
  the	
  most	
  rapid	
  
quarter	
  of	
  2credit lremains a as	
  made	
  modest	
  gains	
  in	
  the	
  years	
  since,	
  with	
  an	
  average	
  of	
  30,300	
  jobs,	
  or	
  1.4	
  percent,	
  added	
  each	
  year.	
  The	
  educaEon	
  and	
  health	
  
010.	
  The	
   ocal	
  economy	
  h barrier for potential and existing homeowners. However, the Administration’s
home mortgages underwater.GIn addition, lack of access to
	
  	
  	
  Annual	
   rowth	
  Rate	
  
-­‐
1.1%
005.	
  In	
  Miami-­‐Dade	
  County,	
  	
  where	
  the	
  City	
  of	
  
professional	
  and	
  business	
  services,	
  and	
  retail	
  trade	
  declines,	
  mainly	
  in	
  the	
  construcEon	
  and	
  government	
  sectors,	
  parEally	
  offset	
  the	
  above	
  gains	
  during	
  the	
  same	
  period	
  by
Miami	
  Households
1,905,394
2,097,626
broad people,	
  or	
  1.1	
  
been f	
   real help to The	
  naEonal	
  unemployment	
  rate	
  p and surrounding cities. This addendum to the unemployment	
  rate	
  for	
  the	
  Mia
ed	
  by	
  an	
  average	
  of	
  24,250	
  approach to stabilize the housing market has average	
  oa8,500	
  jobs	
  per	
  year.	
  homeowners in Miami eaked	
  in	
  October	
  2009	
  at	
  10.0	
  and	
  fell	
  to	
  8.2	
  percent	
  by	
  June	
  2012.	
  The	
  Obama
	
  	
  	
  Annual	
  Growth	
  Rate	
  
-­‐
1.0%
followed	
  a trends2,464,417conditions in the local economy and the impact
Administration’s Housing Scorecard provides a summary of	
  similar	
  trend,	
  improving	
  from	
  a	
  high	
  of	
  11.4	
  in	
  September	
  2010	
  to	
  8.6	
  percent	
  in	
  May	
  2012.	
  	
   of the Administration’s efforts to
and
Miami	
  Housing	
  Units
2,149,749
	
  -­‐
	
  	
  	
  Annual	
  Growth	
  Rate	
  
1.5%
stabilize the housing market and help local homeowners.
	
  
Source: Census Bureau (2000 and 2010 Decennial)

Job Market Conditions Improving for Miami and Nation
Quarterly	
  Nonfarm	
  Employment	
  

12	
  
148	
  

10	
  
143	
  

Thousands	
  

2,250	
  
moderate, increasing at an average rate of 1.1 percent per
2,200	
  
year. In Miami-Dade County, where the City of Miami is
2,150	
  
located, the population increased by an average of 24,250
2,100	
  
2,050	
  
people, or 1.1 percent, annually from 2000 to 2010. During
2,000	
  
the decade spanned average	
  o Census, new ercent,	
  per	
  y production
way	
  in	
  Miami.	
  The	
  local	
  economy	
  expanded	
  by	
  an	
  by the f	
  60,800	
  jobs,	
  or	
  2.8	
  phousing ear,	
  from	
  the	
  third	
  quarter	
  of	
  2003	
  through	
  the	
  second	
  
t	
  recession,	
  significant	
  job	
  losses	
  occurred,	
  averaging	
  108,400	
  jobs,	
  or	
  4Miami MSA; net annual quarter	
  of	
  2007	
  through	
  the	
  first	
  
exceeded householdverage	
  of	
  30,300	
  the o.5	
  1.4	
  percent,	
  aydded	
  beginning	
  the	
  third	
  
growth in jobs,	
   r	
   percent,	
  per	
   ear,	
   each	
  year.	
  The	
  educaEon	
  and	
  health	
  services,	
  
Miami unemployment rate and payroll data for
made	
  modest	
  gains	
  in	
  the	
  years	
  since,	
  with	
  an	
  a
June will be available Friday, July 20. The text
housing unit growth at 1.5 percent was greater than the
retail	
  trade	
  declines,	
  mainly	
  in	
  the	
  construcEon	
  and	
  government	
  sectors,	
  parEally	
  offset	
  the	
  above	
  gains	
  during	
  the	
  same	
  period	
  by	
  a	
  combined	
  
Year	
  and	
  Quarter	
  
and two charts on employment can be updated
onal	
  unemployment	
  rate	
  peaked	
  in	
  October	
  2009	
  at	
  10.0	
  and	
  fell	
  to	
  8.2	
  percent	
  by	
  June	
  2012.	
  rates of
corresponding population and household growth The	
  unemployment	
  rate	
  for	
  the	
  Miami	
  MSA	
  has	
  
then.Miami	
  MSA	
  
NaEon	
  (right	
  axis)	
  
m	
  a	
  high	
  of	
  11.4	
  in	
  September	
  2010	
  to	
  8.6	
  percent	
  in	
  May	
  2012.	
  	
  
1.1 and 1.0 percent, respectively. Although Miami normally
Seasonally	
  Adjusted	
  Data	
  	
  
Source:	
  Bureau	
  of	
  Labor	
  	
  StaEsEcs	
  
has a relatively larger stock of housing units that are held
	
  
for seasonal use compared to other areas, the growth in
the housing stock between Census counts indicates excess
Unemployment Rate Remains High, But Shows Improvement
Monthly	
  Unemployment	
  Rate	
  (Percent)	
  
Job construction contributed tofor Miami and Nationhousing and may
Market Conditions Improving an oversupply of
have led Quarterly	
  Nonfarm	
  Employment	
   after 2006. According
to steeper price declines
	
  
12	
  
to the Census Bureau, the number of vacant units in Miami
148	
  
increased by an average of 12,250 units, or 5.0 percent,
10	
  
143	
  
annually during the 2000s, higher than the national rate of
8	
  

Date of Census

4/1/2000

128	
  
4/1/2010

Miami Population

5,007,956

123	
  
5,564,635

Annual Growth Rate
Miami Households

1,905,394

Annual Growth Rate
Year	
  and	
  Quarter	
  

Miami Housing Units
Miami	
  MSA	
  

Annual Growth Rate

118	
  
1.1%

Millions	
  

138	
  

Miami Housing Unit Growth Outpaced Population and
133	
  
Household Growth During the Past Decade

6	
  
4	
  
2	
  
0	
  

2,097,626

-

1.0%

2,149,749

2,464,417

-

1.5%

NaEon	
  (right	
  axis)	
  

nally	
  Adjusted	
  Data	
  	
  
e:	
  Bureau	
  of	
  Labor	
  	
  StaEsEcs	
   Census Bureau (2000 and 2010 Decennial)
Source:

8	
  

138	
  

Miami	
  MSA	
  
	
  

Seasonally	
  Adjusted	
  Data	
  
Source:	
  Bureau	
  of	
  Labor	
  StaEsEcs	
  

Spotlight on Miami MSA | Page 1

NaEon	
  

133	
  
128	
  
123	
  
118	
  

Millions	
  

Population Growth, Employment,
and Housing Market:

s,	
  new	
  housing	
  producEon	
  exceeded	
  household	
  growth	
  in	
  the	
  Miami	
  MSA;	
  net	
  annual	
  housing	
  unit	
  growth	
  at	
  1.5	
  percent	
  was	
  greater	
  
household	
  growth	
  rates	
  of	
  1.1	
  and	
  1.0	
  percent,	
  respecEvely.	
  	
  Although	
  Miami	
  normally	
  has	
  a	
  relaEvely	
  larger	
  stock	
  of	
  housing	
  units	
  that	
  
her	
  areas,	
  this	
  intercensal	
  growth	
  in	
  the	
  housing	
  stock	
  indicates	
  excess	
  construcEon	
  contributed	
  to	
  an	
  oversupply	
  of	
  housing	
  and	
  may	
  
006.	
  According	
  to	
  the	
  Census	
  Bureau,	
  the	
  number	
  of	
  vacant	
  units	
  in	
  Miami	
  increased	
  by	
  an	
  average	
  of	
  12,250	
  units,	
  or	
  5.0	
  percent,	
  
he	
  naEonal	
  rate	
  of	
  4.4	
  percent	
  during	
  the	
  same	
  period.	
  	
  Investor	
  speculaEon	
  was	
  a	
  major	
  cause	
  of	
  overbuilding	
  in	
  Miami	
  in	
  the	
  years	
  
2,500	
  
e	
  purchases	
  represenEng	
  a	
  larger	
  share	
  of	
  total	
  purchases	
  than	
  in	
  the	
  naEon.	
  Specifically,	
  from	
  2000	
  to	
  2006,	
  home	
  sales	
  to	
  investors	
  in	
  
With a population sales,	
  while	
   he	
  corresponding	
  increase	
  for	
  the	
  naEon	
  w the
olitan	
  Division	
  rose	
  from	
  8	
  to	
  19	
  percent	
  of	
  all	
  of 5.56 tmillion people according to as	
  8	
  to	
  15	
  percent.	
  Another	
  2,450	
  
cause	
  
s	
  was	
  speculaEve	
  construcEon	
  of	
  inner	
  city	
  condominium	
  units	
  wMSA not	
  theto	
  owner	
  occupants	
  or	
  investors.	
  According	
  to	
  C2,400	
  
ondo	
  
most recent Census, the Miami hich	
  did	
  is sell	
   8th largest in
2,350	
  
added	
  approximately	
  22,250	
  condominium	
  units	
  during	
  the	
  boom	
  that	
  began	
  in	
  2003.	
  As	
  of	
  the	
  fourth	
  quarter	
  of	
  2011,	
  approximately	
  
the nation. From 2000 owntown	
  Development	
  Authority.	
  	
  	
  	
  	
  
nits	
  were	
  renter-­‐occupied,	
  according	
  to	
  the	
  Miami	
  Dto 2010, population growth was
2,300	
  

6	
  

4	
  

2	
  

0	
  

	
  

S
S

U.S Department of Housing and Urban Development
U.S. Department of the Treasury

U.S. Department Efforts to Stabilize Development Office and Help American Homeowners
The Obama Administration’sof Housing and Urban the Housing |Marketof Policy Development and Research | July 2012

ami	
  MSA	
  have	
  improved	
  since	
  2008.	
  ExisRng	
  home	
  sales	
  began	
  a	
  steep	
  decline	
  in	
  2006	
  
4.4 percent during the hrough	
   009	
  and	
  have	
  remained	
  at	
  
eadily	
  since	
  2008.	
  New	
  home	
  sales	
  fell	
  from	
  2007	
  tsame 2period. Investor speculation was
	
  	
  Sales	
  of	
  bank-­‐owned	
  properRes	
  and	
  short	
  sales	
  remain	
  high	
  in2Miami of	
  exisRng	
  
a major cause of overbuilding at	
   5	
  percent	
   in the years leading
mi	
  Market,	
  the	
  same	
  as	
  the	
  naRonal	
  ExisRng	
  home	
  sales	
  bto	
  weakness	
  idecline	
  iprices.	
  
SA	
  have	
  improved	
  since	
  2008.	
   rate,	
  and	
  contribute	
   egan	
  a	
  steep	
   n	
  home	
  n	
  2006	
  
mi	
  m
adily	
  since	
  2 price	
  i ew	
  the crisis, hat	
  the	
  rise	
  tihrough	
  2009	
  and	
   he	
  Miami-­‐Miami	
  
into h (HPI)	
  ales	
  fell	
  from	
   007	
   n	
  home	
  prices	
  i purchases at	
  
-­‐sales	
  house	
  008.	
  Nndex	
  ome	
  sshows	
  twith2investor homen	
  thave	
  remained	
  representing a
	
  Sales	
  of	
  bank-­‐owned	
  properRes	
  a he	
  
remain	
  high	
  
politan	
  Division	
  larger share nd	
  short	
  sales	
  ace	
  between	
  2000	
  and	
  mtheexisRng	
  
total purchasesat	
  25	
  percent	
  of	
   nation. Specifically,
than inh id-­‐2006.	
  2006	
  
ami	
  MSA	
  h the	
  i was	
  nearly	
  double	
  tofEnaRonal	
  ome	
  
xisRng	
  h p
n	
  
mi	
  market,	
  ave	
  smproved	
  since	
  2008.	
  home	
  sales	
  to	
  isales	
  tbegan	
  a	
  steep	
  decline	
  irices.	
  
helped	
  fuel	
  t2008.	
  Niew	
  home	
  sales	
  fell	
  from	
  2007	
  through	
  o	
  009	
  and	
  have	
  rpercent	
  in	
  t	
  
he	
  rame	
  ah the	
  naRonal	
  rate,	
  and	
  contribute	
   2 weakness	
  in	
  8	
  ome	
  p a
ise	
   n	
   s	
  
-­‐	
  
eadily	
  since	
  price	
  index	
  ouse	
  prices	
  -­‐that	
  the	
  rise	
  in	
  hnvestors	
  averaged	
  1iami-­‐Miami	
   the Miamifrom (2000 to 2006, home salesin	
  t Home	
   emained	
  in
sales	
  2006	
  -­‐-­‐	
  much	
  higher	
  than	
  the	
  14	
  percent	
  share	
  for	
  the	
  naRon.	
  he	
  M prices	
  in	
  Miami	
  
house	
  
HPI)	
  shows	
  
ome	
  prices	
   to investors
	
  and	
   Division	
  was	
  nearly	
  double	
  ahe	
  naRonal	
  pace	
  between	
  2000	
  apercent	
  of	
  exisRng	
  
	
  Sales	
  of	
  bank-­‐owned	
  properRes	
   t nd	
  short	
  sales	
  remain	
  high	
  at	
  25	
   nd	
  mid-­‐2006.	
  
olitan	
  
Metropolitan Division rose
m	
  their	
  peak	
  tihe	
  same	
  as	
  the	
  naverage	
  prices	
  for	
  the	
  naRon	
  o	
  weakness	
  in	
  hwere	
  prices.	
   9	
   from 8 to 19
006	
  than	
   id	
   aRonal	
  rate,	
  a
mi	
  market,	
   n	
  2MiamidBeach-Kendallontribute	
  t-­‐-­‐	
  Miami	
  prices	
   ome	
   down	
  4
elped	
  fuel	
   he	
  rise	
  in	
  house	
  prices	
   han	
  	
  the	
  snd	
  cercent	
  naRonal	
  peak-­‐to-­‐low	
  decline	
  .	
  
ome	
   31	
   t
ales	
  
percent	
  in	
  
ber	
  2009,	
  ntearly	
  two-­‐thirds	
  more	
  t-­‐-­‐	
  hhat	
  the	
  rise	
  o	
  investors	
  averaged	
  18	
  iami-­‐Miami	
  	
  	
  
sales	
  house	
  price	
  higher	
  than	
  s he	
  14	
  sales, swhile therices	
  in	
  t ome	
  
ndex	
  (HPI)	
  
percent t all ercent	
   p i home	
  p corresponding increase for the
and	
  2006	
  -­‐-­‐	
  much	
  siince	
  the	
  eofhows	
  tphouse	
  price	
  n	
  for	
  the	
  naRon.	
  Hhe	
  Mrprices	
  in	
  Miami	
  
hare	
  ubble	
  but	
  have	
  been	
   ising	
  since	
  early	
  
	
  have	
  fluctuated	
  
nd	
  of	
  
b
politan	
  Division	
  was	
  nearly	
  double	
  tthe	
   rices	
  for	
  tpace	
  aRon	
  -­‐-­‐	
  M2000	
  and	
  mwere	
  down	
  49	
  
their	
  peak	
  in	
  igher	
  than	
  their	
  verage	
  to aRonal	
   he	
  n between	
  iami	
  prices	
   id-­‐2006.	
   overbuilding in
2006	
  than	
  did	
  a 2009	
  he	
  n 	
  15 percent. Another cause of
nation was 8l-­‐	
  p ome	
  sales	
  to	
  investors	
  averaged	
  18	
  percent	
  in	
  
y	
  5	
  percent	
  he	
  rise	
  in	
  house	
  
ow.	
  
elped	
  fuel	
  t h
er	
  2009,	
  nearly	
  two-­‐thirds	
  mprices	
  -­‐ hthe	
  31	
  percent	
  naRonal	
  peak-­‐to-­‐low	
  decline	
  .	
  	
  	
  
ore	
  t
Miami priorthan	
  	
   ercent	
  share	
   or	
  t but	
  h
and	
  2006	
  -­‐-­‐	
  much	
  higher	
  than	
  ohe	
  14	
  pthe crisis fwas speculative construction of inner
t to
M
have	
  fluctuated	
  since	
  the	
  eousing	
  he	
  house	
  price	
  bubble	
  he	
  naRon.	
  Home	
  prices	
  in	
  searly	
  
een	
  rising	
  since	
   iami	
  
ucDon	
  the	
  Miami	
  rental	
  did	
  average	
  prices	
  fdoing	
  well,	
  with	
  vave	
  bprices	
  were	
  down	
  49	
  
h nd	
   f	
   market	
  is	
   or	
  the	
  naRon	
  -­‐-­‐	
  Macancy	
  rates	
  falling	
   ince	
  
t 	
  
2006	
  than	
  
iami	
  
	
  	
  5heir	
  peak	
  in	
  he	
  o han	
  their	
  2009	
  low.	
  	
   units which did not sell to owner occupants
PF	
  percent	
  higher	
  tverall	
  apartment	
  vacancy	
  rate	
  in	
  Miami	
  was	
  peak-­‐to-­‐low	
  idecline	
  .	
  	
  	
  
Research,	
  t city condominium
er	
  2009,	
  nearly	
  two-­‐thirds	
  more	
  than	
  	
  the	
  31	
  percent	
  naRonal	
   4.5	
  percent	
   n	
  the	
  first	
  
n	
  fave	
   5.1	
  percent	
  ainvestors.che	
  house	
   with	
  tb to ecline	
  ihave	
  been	
  
n	
  the	
  n
or 	
  year	
  earlier,	
   According Condo Vultures® LLC, greater
	
  h rom	
   he	
  Miami	
   ince	
  the	
  end	
  of	
  t ompared	
   oing	
   he	
  d w but	
   acancy	
  aRonal	
  vacancy	
  rarly	
  
rice	
   ell,	
  
e ate	
  
ucDon	
  fluctuated	
  srental	
  housing	
  market	
  is	
  dpents	
  wubble	
  ith	
  ncreased	
  by	
  rising	
  since	
  rom	
  a	
  
t
v
rates	
  f
nt.	
  	
  During	
  the	
  first	
  qhan	
  their	
  2009	
  low.	
  	
   added approximatelyalling	
  since	
   condominium
i
4 22,250
y	
  5 percent	
  higher	
  t uarter	
  of	
  2012,	
  average	
  r in	
  n	
  Miami	
  i 4.5	
  percent	
  	
  ipercent	
  f
downtown Miami
F	
  R verage	
  r the	
  overall	
  apartment	
  vacancy	
   ate	
   Miami	
  w 1,061	
  during	
  the	
  tsame	
  
n	
   he	
  first	
  
he	
  aesearch,	
  ent	
  naRonwide	
  also	
  increased	
  bry	
  4	
  percent	
  to	
  $as	
  
	
  from	
  5.1	
  percent	
  a	
  year	
  earlier,	
  compared	
  with	
  the	
  decline	
  in	
  the	
  naRonal	
  vacancy	
  rate	
   the fourth
units during the boom that began in 2003. As of
ucDon	
  the	
  Miami	
  rental	
  housing	
  m verage	
  rents	
  in	
  Miami	
  increased	
  by	
  4	
  percent	
   rom	
  a
t.	
  During	
  the	
  first	
  quarter	
  of	
  2012,	
  aarket	
  is	
  doing	
  well,	
  with	
  vacancy	
  rates	
  falling	
  fsince	
   	
  
PF	
  Research,	
  the	
  overall	
  apartment	
  vacancy	
  r4	
  percent	
  to	
  $1,061	
  56 percentfirst	
   downtown
quarter of 2011, approximately dpercent	
  in	
  the	
  
e	
  average	
  rent	
  naRonwide	
  also	
  increased	
  by	
   ate	
  in	
  Miami	
  was	
  4.5	
  uring	
  the	
  same	
   of
n	
  from	
  5.1	
  percent	
  a	
  year	
  earlier,	
  compared	
  with	
  the	
  decline	
  in	
  the	
  naRonal	
  vacancy	
  rate	
  
condominium units were renter-occupied, according to the
nt.	
  During	
  the	
  first	
  quarter	
  of	
  2012,	
  average	
  rents	
  in	
  Miami	
  increased	
  by	
  4	
  percent	
  from	
  a	
  
Miami Downtown y	
  4	
  percent	
  to	
  $1,061	
  during	
  the	
  same	
  
he	
  average	
  rent	
  naRonwide	
  also	
  increased	
  bDevelopment Authority.

A modest economic recovery is underway in Miami.
The local economy expanded by an average of 60,800
jobs, or 2.8 percent, per year, from the third quarter of 2003
through the second quarter of 2007. As a result of the recent
recession, significant job losses occurred, averaging 108,400
jobs, or 4.5 percent,
ge Delinquencies and Foreclosures: per year, beginning the third quarter of
2007 through the first quarter of 2010. The local economy
Rnue	
  to	
  struggle	
  with	
  high	
  rates	
  of	
  mortgage	
  delinquency	
  and	
  foreclosure.	
  As	
  of	
  May	
  
e of	
  366	
  metropolitan	
  areas	
  ranked	
  by	
  share	
  
has made modest gains in the risk	
  of	
  f since, (90	
  or	
  
ut	
  Delinquencies and Foreclosures: of	
  mortgages	
  at	
  yearsoreclosure	
  with an average of
in	
  the	
  foreclosure	
  process)	
  ajobs, or LPS	
  Applied	
  AnalyRcs.	
  However,	
  the	
  foreclosure	
  
30,300 ccording	
  to	
   1.4 percent, added each year. The education
nue	
  to	
   LPS	
  data	
  s ith	
  high	
  rates	
  of	
  mortgage	
  delinquency	
  and	
  foreclosure.	
  As	
   percent	
  
roving.	
  struggle	
  whow	
  andmortgages	
  at	
  risk	
  of	
  foreclosure	
  decreased	
  by	
  6.2	
  of	
  May	
  
e f	
  366	
  m
and that	
   Foreclosures: professional f	
  foreclosure	
  (90	
   f	
  
t	
  oDelinquencies health services, f	
  m ompared	
   t	
  risk	
   	
  and business1services, and
m	
  164,400	
  etropolitan	
  areas	
  ranked	
  n	
  May	
  2012,	
  cortgages	
  awith	
  aonaRonal	
  decline	
  oor	
   .0	
  
in	
  May	
  2011	
  to	
  154,200	
  iby	
  share	
  o
n	
  the	
  foreclosure	
  process)	
  according	
  to	
  Lthat	
  pplied	
  AnalyRcs.	
  However,	
  the	
  fforeclosure	
  
retail ince	
  2000	
  show	
   PS	
   t
contributors to job
period.	
  struggle	
  with	
  high	
  rates	
  osectors Adelinquency	
  aortgages	
  at	
  risk	
  of	
  oreclosure	
  
CoreLogic	
  data	
  strade f	
  mortgage	
  have been the major s	
  of	
  May	
  
Rnue	
  to	
  PS	
  data	
  show	
  that	
  mortgages	
  at	
  risk	
  of	
  he	
  rate	
  of	
  mdecreased	
  by	
  6.2	
  percent	
  
oving.	
  L
foreclosure	
   nd	
  foreclosure.	
  A
een	
  consistent	
  with	
  the	
   reas	
  ranked	
  thehare	
  ohe	
  end	
  o began, rincreasing or	
   a
ut	
  of	
  366	
  metropolitan	
  tnaRonal	
  rate	
  May	
  recovery f	
  2006,	
  isk	
  of	
  foreclosure	
  (90	
  byhe	
   combined
growth since through	
  t f	
  mortgages	
  a but	
   ose	
  sharply	
  during	
  t
	
  164,400	
  iof	
  the	
  crisis	
  wo	
  154,200	
  in	
  by	
  s 2oreclosures	
  were	
  ith	
  a	
  naRonal	
  decline	
  of	
  1.0	
  
n	
  May	
  2011	
  a hen	
  single-­‐family	
  f 012,	
  compared	
  wlt	
  r
first	
  years	
  
argely	
  associated	
  with	
  
in	
  the	
  fCoreLogic	
  dprocess)	
  according	
  t LPS	
  A ate	
  
period.	
  oreclosure	
  isk	
  osof 27,800o	
  jobspplied	
  AnalyRcs.	
  However,	
  tof	
  poreclosure	
  
per iami	
  -­‐ f ecreased	
  risk	
   he	
  foreclosure	
  
year. Employment declines, mainly
cts,	
  mortgages	
  atotalthat	
  m2000	
  show	
  trrapidly	
  rn	
  Mof	
  mortgages	
  at	
  o	
  12.7	
   f ercent	
  of	
  
t	
  r ata	
   ince	
   ortgages	
  at	
   hat	
  the	
   i
oving.	
  LPS	
  data	
  show	
   f	
  foreclosure	
  rose	
   isk	
  of	
  foreclosure	
  	
  drom	
  1.3	
  t b harply	
  during	
   he	
  
en	
  consistent	
  with	
  the	
  naRonal	
  rate	
  through	
  nhe	
  end	
  of	
  2006,	
  but	
  rose	
  sy	
  6.2	
  percent	
   tto	
  
2007	
  and	
  2n	
  May	
  he	
  comparable	
  rise	
  for	
  the	
   t aRon	
  was	
  1.6	
  to	
  4.4	
  naRonal	
  dAccording	
   .0	
  
008.	
  in 011	
  to	
  154,200	
  in	
  May	
  2012,	
  compared	
  with	
  a	
   percent.	
  	
   ecline	
  of	
  1
T 2 the construction and government sectors, partially offset the
m	
  164,400	
  if	
  the	
  crisis	
  when	
  single-­‐family	
  foreclosures	
  were	
  largely	
  associated	
  with	
  
rst	
  years	
  o
	
  period.	
  CoreLogic	
  data	
  since	
  2000	
  show	
  that	
  the	
  rate	
  ndicate	
  that	
  high-­‐cost	
  ofr	
  subprime	
  
Clearinghouse,	
  Home	
  Mortgage	
  Disclosure	
  Act	
  data	
  i of	
  m
above gains during the samerom	
  1.3	
  at	
  risk	
  opercent	
  of	
  
by
ts,	
  mortgages	
  aof	
  isk	
  of	
  lforeclosure	
  Miami	
  MSA	
  iin	
  2006.	
  B-­‐	
  ortgages	
  to	
  009,	
  ff	
  a combined average
f period 2.7	
   oreclosure	
  
rly	
  	
  consistent	
  with	
  the	
  naRonal	
  rate	
  through	
  the	
  eMiami	
   eginning	
  rn	
  21sharply	
  during	
  the	
  
3	
  percent	
   t	
  r total	
   oans	
  in	
  the	
   rose	
  rapidly	
   n	
  
i ose	
  
en	
   5and	
  2008.	
  The	
  comparable	
  rise	
  for	
  the	
  naRon	
  nd	
  of	
  2006,	
  but	
   ercent.	
  	
  Aoreclosures	
  
007	
  with	
  prime	
  of 8,500 jobs per y	
  loss	
  of	
  income,	
  unemployment,	
  and	
  negaRve	
  
wThe national unemployment rate
.6	
  t
ccording	
  
year. as	
  1ere	
  o	
  4.4	
  p associated	
  with	
   to	
  
ted	
  
oans	
  and	
  w single-­‐family	
   b
first	
  years	
  of	
  the	
  lcrisis	
  Mhen	
  ere	
  triggered	
  foreclosures	
  w
w ortgage	
  Disclosure	
  Act	
  data	
  indicate	
  that	
  high-­‐cost	
  or	
  subprime	
  
largely	
  
Clearinghouse,	
  Home	
  
arch	
  bortgages	
  at	
  risk	
  of	
  foreclosure	
  rose	
  rapidly	
  in	
  Mtiami	
  -­‐me,	
  the	
  share	
  2.7	
  percent	
  of	
  
the	
  Federal	
  Reserve	
  Bank	
  of	
  
R
severely	
  
ts,	
  m y	
  ercent	
  of	
  total	
  loans	
  iin he	
  MChicago.	
  Diuring	
   his	
  eginning	
  i.3	
  2o	
  1 of	
  oreclosures	
   percent by
y	
  	
  53	
  p rose	
  to	
  apeaked n	
  t October 2009 at 	
  10.0n	
  and f o	
  19.6	
  percent.	
  	
  
iami	
  arly	
  2010,	
  but	
  has	
  declined	
  s009,	
   fell to 8.2
MSA	
   n	
  2006.	
  B from	
  1 t ince	
  t
Miami	
  
	
   he	
  c of	
  23.1	
  p
2007	
  and	
  2008.	
  oans	
  and	
  were	
  ercent	
  in	
  eby	
  lnaRon	
  ncome,	
  uo	
  4.4	
  percent.	
  	
  According	
  to	
  
Thigh	
  omparable	
  
as	
  
ed	
  with	
  prime	
  l June 2012.rise	
  for	
  the	
  oss	
  of	
  iwat	
   1.6	
  t nemployment,	
  and	
  na
triggered	
  unemployment rate for 2010,	
   egaRve	
  
The
Miami
tgages	
  rose	
  less	
  Home	
  Mortgage	
  the	
  naRon,	
  pct	
  data	
  indicate	
  that	
  high-­‐cost	
  theubprime	
   MSA has
Clearinghouse,	
   dramaRcally	
  for	
  of	
  Chicago.	
  Deaking	
  his	
  7.9	
  percent	
  in	
  early	
  everely	
  nd	
  have	
  
ch	
  by	
  the	
  Federal	
  Reserve	
  Bank	
   Disclosure	
  A uring	
  t Rme,	
  the	
  share	
  of	
  s or	
  s
cent.	
  	
  	
  percent	
  ofollowedin	
  the	
  Miami	
  Mtrend, improving2from a high of 11.4 in
ly	
  	
  53	
  rose	
  to	
  a	
  high	
  of	
  oans	
  percent	
  in	
  early	
  2010,	
  but	
  hBeginning	
  in	
   ince	
  to	
  19.6	
  percent.	
  	
  
f	
  total	
  l 23.1	
   a similar SA	
  in	
  2006.	
   as	
  declined	
  s 009,	
  foreclosures	
  
Miami	
  
ted	
  w rose	
  less	
   lSeptembertriggered	
  btooss	
  of	
   ncome,	
  unemployment,	
  and	
  negaRve	
  
y	
   8.6 t	
  7.9	
  p
gages	
  ith	
  lprime	
  doans	
  and	
  were	
  isk	
  onaRon,	
  pleaking	
  iapercent Rme	
  iarly	
  2010,	
  complete	
  
the	
  high	
   evel	
  of	
  ramaRcally	
  aor	
  the	
   f	
  foreclosure	
  in	
  Miami	
  iercent	
  in	
  e t	
  takes	
  to	
  and	
  have	
  
mortgages	
   f t	
  r 2010
s	
  the	
   in May 2012.

rch	
   	
  
share	
  of	
  severely	
  
ent.	
  b	
  y	
  the	
  Federal	
  Reserve	
  Bank	
  of	
  Chicago.	
  During	
  this	
  Rme,	
  the	
  in	
   lorida,	
   hich	
  
According	
  to	
  Realty	
  Trac,	
  the	
  percent	
  iforeclosure	
  processing	
  eclined	
  Fince	
  to	
  w9.6	
  percent.	
  	
  
Miami	
  rose	
  to	
  a	
  high	
  of	
  23.1	
   average	
   n	
  early	
  2010,	
  but	
  has	
  d Rme	
   s
1
closure	
  ose	
  less	
  Home ays	
  in	
  the	
  saRon,	
  pquarter	
  of	
  2012	
  (third	
  iln	
  early	
  2010,	
  and	
  have	
  
gages	
  r process,	
  was	
  861	
  d at	
  or	
  the	
  noreclosure	
  in	
  Miami	
  is	
  ercent	
   ongest	
  among	
  states)	
  
dramaRcally	
  f risk	
  of	
  f in the Miamihe	
  Rme	
  it	
  thave omplete	
  
sales econd	
   eaking	
  at	
  7.9	
  pt MSA akes	
  to	
  c improved since
he	
  high	
  lof	
  378	
  days.	
  The	
  longer	
  processing	
  Rme	
  tends	
  to	
  increase	
  the	
  number	
  of	
  
nal	
  rate	
   evel	
  of	
  mortgages	
  
ent.	
  	
  	
  
ccording	
  elay	
  ealty	
  Trac,	
  tforeclosures.	
  	
  Lengthy	
  ppsales beganFlorida,	
  which	
   the	
  
2008. average	
  foreclosure	
   rocessing	
   mes	
   in	
   a steep decline in 2006 but
ne	
  and	
  d to	
  R completed	
   he	
  Existing home rocessing	
  RRme	
  notwithstanding,	
  
losure	
  process,	
  was	
  861	
  days	
  in	
  the	
  SA,	
  
second	
  quarter	
  of	
   i 012	
   third	
  longest	
  anaRonal	
  rate	
  
ate	
  hince	
  evel	
  o2have increased at	
  4.1	
  percent,	
  2s	
  n is	
  (t2008.t	
  tNew home sales fell from
s igh	
   A
steadily since he	
  Rme	
  n he	
   mong	
  states)	
  
the	
  ate	
  olf	
  3pril	
  days.	
  Tn	
  the	
  Miami	
  Mf	
  foreclosure	
  ends	
  iami	
  early	
  double	
  umber	
  of	
   omplete	
  
f	
  009	
  i he	
  longer	
  isk	
  o
i
al	
   c
78	
   mortgages	
  at	
  r processing	
  Rme	
  n	
  n	
  M to	
  increase	
  the	
  i takes	
  to	
  c
re	
  r ompleRons	
  have	
  been	
  trending	
  downward	
  it processing	
   MSA	
  iand	
  naRonally.	
   or	
  the	
  
According	
  to	
  Rompleted	
  foreclosures.	
  f2009 pand Miami	
  Rme	
  otwithstanding,	
  Fhistorically low
ealty	
  Trac,	
  tthrough 	
  oreclosure	
   the	
   have remained hich	
  he	
  
he	
  average	
   Lengthy	
   rocessing	
  Rmes	
  n n	
  Florida,	
  w at t
e	
  and	
  d foreclosures	
  in	
  Miami	
  
mpleted	
  elay	
  c 2007 days	
  iare	
  30	
  percent	
  uarter	
  the	
  previous	
  quarter	
  aamong	
  states)	
  
below	
   of	
  2012	
  (third	
  longest	
   nd	
  54	
  percent	
  
closure	
  pApril	
  2009	
  in	
  the	
  Miami	
  the	
  second	
  q ercent,	
  is	
  nearly	
  double	
  the	
  naRonal	
  rate	
  
te	
  since	
   rocess,	
  was	
  861	
   the	
  nn	
  MSA,	
  re	
  down	
  1
ompleted	
  foreclosures	
  in	
  Sales of at	
  4.1	
  p
aRon	
  a bank-owned properties and short
and	
  
nal	
  ompleRons	
  hlevels.longer	
  processing	
  Rme	
  3	
  percent	
  from	
  the	
  previous	
  quarter	
  he	
   sales remain
e	
  c rate	
  of	
  378	
  days.	
  The	
   i rending	
  downward	
  i f	
  ttends	
  to	
  increase	
  nd	
  nnumber	
  of	
   or	
  t
iami	
  MSA	
  l the	
   aRonally.	
  F
eak.	
  Both	
  peaks	
  ave	
  been	
  tn	
  the	
  third	
  qLengthy	
  n	
  2he	
  MHowever,	
  aotwithstanding,	
  the	
  
occurred	
  
ne	
  and	
  foreclosures	
  in	
  Mforeclosures.	
  ercent	
  boprocessing	
  Rmes	
  nender	
  process	
  peviews	
  Miami market,
delay	
  completed	
   27 percent of 010.	
   previous	
  quarter	
  and	
  5 inercent	
  
high atompleRons.	
   uarter	
   elow	
  the	
   that	
  48.1	
  percent	
  	
  of	
  mr the
pleted	
  affect	
  foreclosure	
  iami	
  are	
  30	
  p 	
  CoreLogic	
  existing home sales 4	
   ortgages	
  
nue	
   o	
  
c
reports	
  
ate	
  stince	
  April	
  2009	
  in	
   ihe	
  Miami	
  MSA,	
  at	
  4.1	
  percent,	
  is	
  n rom	
   he	
  previous	
  quarter	
  and	
  
ouble	
   he	
  naRonal	
  r
ompleted	
  foreclosures	
  tn	
  the	
  naRon	
  are	
  down	
  13	
  percent	
  fearly	
  td2011–	
  tcompared	
  to	
  ate	
  
slightly
percent. The high
h-­‐Kendall	
  Metropolitan	
  D thigher ownward	
  i at	
  the	
  end	
  o and	
   aRonally.	
  
25.2	
  
re	
  compleRons	
  have	
  been	
  ivision	
  were	
  underwater	
  national f	
  ratenof 24reviews	
  
d than the
iami	
  MSA	
  
ak.	
  Both	
  peaks	
  occurred	
  in	
  rending	
  otenRally	
  of	
  n	
  the	
  	
  Mowever,	
  lender	
  process	
   For	
  the	
  
the	
  third	
  
esenRng	
  addiRonal	
  hn	
  Miami	
  are	
  30	
  distressed tsales contributes 54	
  pweakness in home
omeowners	
  p quarter	
   at	
  2isk.	
  	
  he	
  previous	
  quarter	
  and	
   to ercent	
  
r010.	
  H
proportion of percent	
  below	
  
mpleted	
  foreclosures	
  i compleRons.	
  CoreLogic	
  reports	
  that	
  48.1	
  percent	
  	
  of	
  mortgages	
  
ue	
  to	
  affect	
  foreclosure	
  
ompleted	
  foreclosures	
   n	
  the	
  naRon	
  are	
  down	
  13	
  repeat-sales house price index (HPI)
h-­‐Kendall	
  Metropolitan	
  iDivision	
  were	
  underwater	
  percent	
  nd	
  of	
  the	
  previous	
  quarter	
  and	
  
prices. The CoreLogic at	
  the	
  e from	
  2011–	
  compared	
  to	
  25.2	
  
eak.	
  Both	
  peaks	
  occurred	
  in	
  the	
  t potenRally	
  at	
  r 2010.	
  
esenRng	
  addiRonal	
  homeowners	
  hird	
  quarter	
  of	
  isk.	
  	
  	
   However,	
  lender	
  process	
  reviews	
  
shows that the CoreLogic	
  reports	
   prices in the Miami-Miami Beachnue	
  to	
  affect	
  foreclosure	
  compleRons.	
  rise in homethat	
  48.1	
  percent	
  	
  of	
  mortgages	
  
h-­‐Kendall	
  Metropolitan	
  Division	
  were	
  underwater	
  at	
  the	
  end	
  was nearly double the national
Kendall Metropolitan Division of	
  2011–	
  compared	
  to	
  25.2	
  
esenRng	
  addiRonal	
  homeowners	
  potenRally	
  at	
  risk.	
  	
  	
  

pace between 2000 and mid-2006. Investor speculation
helped fuel the rise in house prices -- home sales to investors
averaged 18 percent in Miami between 2003 and 2006 –
much higher than the 14 percent share for the nation. Home
prices in Miami fell much farther from their peak in 2006 than
did average prices for the nation – Miami prices were down
49 percent as of November 2009, nearly two-thirds more than
Foreclosure	
  Completion	
  Rates	
  in	
  the	
  Miami	
  MSA
the 31 percent national peak-to-low decline. Home prices in
Second	
  Quarter	
  2012 have fluctuated pril	
  1,	
  2009
Since	
  A since the end of the house price bubble
Miami
oreclosure	
  Completion	
  Rates	
  in	
  the	
  Miami	
  MSA
Foreclosure	
  
Foreclosure	
  
Foreclosure	
  R been rising
Foreclosure	
   2011 and are currently 5
but haveate Completionssince early Rate
ompletions
Second	
  Quarter	
  2012
Since	
  April	
  1,	
  2009
Foreclosure	
  Completion	
  Rates	
  in	
  the	
  	
  M	
  iami	
  	
  M101,900	
   2009 low.
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  6,000	
   percent higher	
  	
  	
  than their
0.2%
	
   	
  	
  	
   	
   	
  	
  	
  	
   	
  	
  	
   SA
4.1%
oreclosure	
  
Foreclosure	
  

	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  160,500	
   Foreclosure	
  Rate 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  2,853,800	
   Foreclosure	
  Rate
0.1%
2.2%
ompletions
Completions
s	
  Percent	
  of	
  All	
  Housing	
  Units;
Second	
  Quarter	
  2012
Since	
  April	
  1,	
  2009
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  6,000	
  
0.2%
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  101,900	
  
4.1%
2012	
  for	
  Foreclosures	
  since	
  April	
  2009 Foreclosure	
  
oreclosure	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  160,500	
   Foreclosure	
  Rate 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  2,853,800	
   Foreclosure	
  Rate
0.1%
2.2%
nsus	
  Bureau
ompletions
Completions
Percent	
  of	
  All	
  Housing	
  Units;
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  6,000	
  
0.2%
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  101,900	
  
4.1%
012	
  for	
  Foreclosures	
  since	
  April	
  2009
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  160,500	
  
0.1%
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  2,853,800	
  
2.2%
sus	
  Bureau
	
  Percent	
  of	
  All	
  Housing	
  Units;

New and Existing Home Sales: Miami Compared to the Nation
Annual	
  Home	
  Sales	
  (thousands)	
  	
  

New and Existing Home Sales: Miami Compared to the Nation

400	
  

Annual	
  Home	
  Sales	
  (thousands)	
  	
  

8,000	
  

350	
  
7,000	
  
New and Existing Home Sales: Miami Compared to the Nation
400	
  
8,000	
  
Annual	
  Home	
  Sales	
  (thousands)	
  	
  
300	
  
6,000	
  
350	
  
7,000	
  
250	
  
5,000	
  
400	
  
8,000	
  
300	
  
6,000	
  
200	
  
4,000	
  
350	
  
7,000	
  
250	
  
5,000	
  
150	
  
3,000	
  
300	
  
6,000	
  
200	
  
4,000	
  
100	
  
2,000	
  
250	
  
5,000	
  
150	
  
3,000	
  
50	
  
1,000	
  
200	
  
4,000	
  
100	
  
2,000	
  
0	
  
0	
  
150	
  
3,000	
  
2003	
  
2004	
  
2005	
  
2006	
  
2007	
  
2008	
  
2009	
  
2010	
  
2011	
  
50	
  
1,000	
  
100	
  
2,000	
  
0	
  
0	
  
NaRon:	
  ExisRng	
  Sales	
  (right	
  axis)	
  2005	
   NaRon:	
  New	
  Sales	
  (right	
  axis)	
   2008	
   MSA:	
  ExisRng	
  Sales	
  
Miami	
  
2003	
  
2004	
  
2006	
  
2007	
  
2009	
  
2010	
   Miami	
  MSA:	
  New	
  Sales	
  
2011	
  
50	
  
1,000	
  
0	
  
0	
  
Sources:	
  CoreLogic,	
  HUD/Census	
  	
  Bureau,	
  and	
  NaRonal	
  AssociaRon	
  of	
  Realtors	
  
NaRon:	
  ExisRng	
  Sales	
  2004	
   axis)	
   2005	
  
(right	
  
NaRon:	
  New	
  Sales	
  (right	
  axis)	
  
Miami	
  
ExisRng	
  
2003	
  
2006	
  
2007	
  
2008	
   MSA:	
  2009	
   Sales	
  
2010	
   Miami	
  MSA:	
  New	
  Sales	
  
2011	
  
Sources:	
  CoreLogic,	
  HUD/Census	
  	
  Bureau,	
  and	
  NaRonal	
  AssociaRon	
  of	
  Realtors	
  
NaRon:	
  ExisRng	
  Sales	
  (right	
  axis)	
  
NaRon:	
  New	
  Sales	
  (right	
  axis)	
  
Miami	
  MSA:	
  ExisRng	
  Sales	
  

Miami Home Prices Decline Sharply After Steep Rise
Market Is Improving
Sources:	
  CoreLogic,	
  HUD/Census	
  	
  Bureau,	
  and	
  NaRonal	
  AssociaRon	
  of	
  Realtors	
  
Repeat-­‐Sales	
  House	
  Price	
   ndex	
  	
  (Jan	
  2000	
   	
  100)	
  
Miami Home Prices Decline ISharply After=Steep Rise
Market Is Improving
330	
  
Repeat-­‐Sales	
  House	
  Price	
  Index	
  	
  (Jan	
   000	
  = Steep
Miami Home Prices Decline Sharply2After	
  100)	
   Rise
Market Is Improving
280	
  
330	
  

Miami	
  MSA:	
  New	
  Sales	
  

Repeat-­‐Sales	
  House	
  Price	
  Index	
  	
  (Jan	
  2000	
  =	
  100)	
  

230	
  
280	
  
330	
  
180	
  
230	
  
280	
  
130	
  
180	
  
230	
  
80	
  
130	
  
180	
  
80	
  
130	
  
Miami	
  Metropolitan	
  Division	
  

NaRon	
  

80	
  
Source:	
  CoreLogic.	
  Miami-­‐Miami	
  Beach-­‐Kendall	
  Metropolitan	
  Division	
  HPI	
  
Miami	
  Metropolitan	
  Division	
  

NaRon	
  

Source:	
  CoreLogic.	
  Miami-­‐Miami	
  Beach-­‐Kendall	
  Metropolitan	
  Division	
  HPI	
  
Miami	
  Metropolitan	
  Division	
  

NaRon	
  

Rental Vacancy Rates Lower an the Nation
Source:	
  CoreLogic.	
  Miami-­‐Miami	
  Beach-­‐Kendall	
  Metropolitan	
  Division	
  HPI	
  
Quarterly	
  Apartment	
  Rental	
  Vacancy	
  Rates	
  (Percent)	
  

Rental Vacancy Rates Lower an the Nation

9	
  

Quarterly	
  Apartment	
  Rental	
  Vacancy	
  Rates	
  (Percent)	
  

8	
  

Rental Vacancy Rates Lower an the Nation

9	
  
7	
  

Quarterly	
  Apartment	
  Rental	
  Vacancy	
  Rates	
  (Percent)	
  

8	
  
6	
  
9	
  
7	
  
5	
  
8	
  
6	
  
4	
  
7	
  
5	
  
3	
  
6	
  
4	
  
2	
  
5	
  
3	
  
1	
  
4	
  
2	
  
3	
  
1	
  

Year	
  and	
  Quarter	
  

2	
  
1	
  

Miami	
  Metro	
  Area	
   and	
  Quarter	
  
Year	
  

NaRon	
  

Source:	
  MPF	
  Research	
  
Miami	
  Metro	
  Area	
  Year	
  and	
  Quarter	
  

NaRon	
  

Miami	
  Metro	
  Area	
  

NaRon	
  

Source:	
  MPF	
  Research	
  
Source:	
  MPF	
  Research	
  

Share of Distressed Mortgages Substantially Higher an the Nation
Mortgages	
  90+	
  Days	
  Delinquent	
  (Percent	
  of	
  All	
  AcRve	
  Mortgages)	
  

25	
  

Share of Distressed Mortgages Substantially Higher an the Nation
Mortgages	
  90+	
  Days	
  Delinquent	
  (Percent	
  of	
  All	
  AcRve	
  Mortgages)	
  

Share of Distressed Mortgages Substantially Higher an the Nation

Mortgages	
  9
25	
  Miami MSA | Page 0+	
  Days	
  Delinquent	
  (Percent	
  of	
  All	
  AcRve	
  Mortgages)	
  
Spotlight on20	
  
2

low	
  their	
  peak.	
  Both	
  peaks	
  occurred	
  in	
  the	
  third	
  quarter	
  of	
  2010.	
  However,	
  lender	
  process	
  reviews	
  
klogs	
  conRnue	
  to	
  affect	
  foreclosure	
  compleRons.	
  CoreLogic	
  reports	
  that	
  48.1	
  percent	
  	
  of	
  mortgages	
  
Miami	
  Beach-­‐Kendall	
  Metropolitan	
  Division	
  were	
  underwater	
  at	
  the	
  end	
  of	
  2011–	
  compared	
  to	
  25.2	
  
nally	
  -­‐-­‐	
  represenRng	
  addiRonal	
  homeowners	
  potenRally	
  at	
  risk.	
  	
  	
  
U.S Department of Housing and Urban Development

8	
  
7	
  
6	
  

U.S. Department of the Treasury

5	
  
4	
  
3	
  
2	
  
1	
  

Year	
  and	
  Quarter	
  

U.S. Department Efforts to Stabilize Development Office and Help American Homeowners
The Obama Administration’sof Housing and Urban the Housing |Marketof Policy Development and Research | July 2012
Miami	
  Metro	
  Area	
  

Second	
  Quarter	
  2012
Since	
  April	
  1,	
  2009
Foreclosure	
  
Foreclosure	
  
Foreclosure	
  Rate
Foreclosure	
  Rate
Completions
Completions
SA	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  6,000	
  
0.2%
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  101,900	
  
4.1%
	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  160,500	
  
0.1%
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  2,853,800	
  
2.2%
sure	
  Rates	
  as	
  Percent	
  of	
  All	
  Housing	
  Units;
rough	
  June	
  2012	
  for	
  Foreclosures	
  since	
  April	
  2009
	
  Trac	
  and	
  Census	
  Bureau

Despite excess construction the Miami rental
housing market is doing well, with vacancy rates
falling since 2009. According to MPF Research, the overall
apartment vacancy rate in Miami was 4.5 percent in the
first quarter of 2012, down from 5.1 percent a year earlier,
compared with the decline in the national vacancy rate to 5.1
from 6.3 percent. During the first quarter of 2012, average
rents in Miami increased by 4 percent from a year ago to
$1,146. The average rent nationwide also increased by 4
percent to $1,061 during the same period.

Trends in Mortgage
Delinquencies and Foreclosures:

Miami homeowners continue to struggle with high rates of
mortgage delinquency and foreclosure. As of May 2012,
Miami placed 1st out of 366 metropolitan areas ranked by
share of mortgages at risk of foreclosure (90 or more days
delinquent or in the foreclosure process) according to LPS
Applied Analytics. However, the foreclosure situation in
Miami is improving. LPS data show that mortgages at risk of
foreclosure decreased by 6.2 percent during the past year,
from 164,400 in May 2011 to 154,200 in May 2012,
compared with a national decline of 1.0 percent during the
same period. CoreLogic data since 2000 show that the rate
of mortgages at risk of foreclosure in the Miami MSA had
been consistent with the national rate through the end of
2006, but rose sharply during the foreclosure crisis. In the
first years of the crisis when single-family foreclosures were
largely associated with unaffordable loan products, mortgages
at risk of foreclosure rose rapidly in Miami – from 1.3 to
12.7 percent of active mortgages during 2007 and 2008.
The comparable rise for the nation was 1.6 to 4.4 percent.
According to the Florida Housing Data Clearinghouse,
Home Mortgage Disclosure Act data indicate that high-cost
or subprime loans accounted for nearly 53 percent of total
loans in the Miami MSA in 2006. Beginning in 2009, more
prime loans went into foreclosure, triggered by loss of income,
unemployment, and negative equity according to research by
the Federal Reserve Bank of Chicago. During this time, the
share of severely delinquent mortgages in Miami rose to a
high of 23.1 percent in early 2010, but has since declined to
19.6 percent. The rise in severely delinquent mortgages was
less steep in the rest of the nation, peaking at 7.9 percent in
early 2010 and declining since that time to 6.4 percent.
Foreclosure Completion Rates in the Miami MSA
Second Quarter 2012
Area
Miami MSA
Nation

Foreclosure
Completions

NaRon	
  

Source:	
  MPF	
  Research	
  

Foreclosure	
  Completion	
  Rates	
  in	
  the	
  Miami	
  MSA

Foreclosure
Rate

Since April 1, 2009
Foreclosure
Completions

Foreclosure
Rate

6,000

0.2%

101,900

4.1%

160,500

0.1%

2,853,800

2.2%

Note: Foreclosure Rates as Percent of All Housing Units; Data through
June 2012 for Foreclosures since April 2009
Source: Realty Trac and Census Bureau

Share of Distressed Mortgages Substantially Higher an the Nation
Mortgages	
  90+	
  Days	
  Delinquent	
  (Percent	
  of	
  All	
  AcRve	
  Mortgages)	
  

25	
  
20	
  
15	
  
10	
  
5	
  
0	
  

Miami	
  MSA	
  

NaRon	
  

Source:	
  CoreLogic	
  

A partial explanation for the high level of mortgages at risk of foreclosure in
Miami is the time it takes to complete a foreclosure in Florida. According to
Realty Trac, the average foreclosure processing time in Florida, which employs
the judicial foreclosure process, was 861 days in the second quarter of 2012
(third longest among states) – more than twice the national rate of 378 days. The
longer processing time tends to increase the number of foreclosures in the pipeline
and delay completed foreclosures. Lengthy processing times notwithstanding, the
foreclosure completion rate since April 2009 in the Miami MSA, at 4.1 percent,
is nearly double the national rate of 2.2 percent. Foreclosure completions have
been trending downward in the Miami MSA and nationally. For the first quarter of
2012, completed foreclosures in Miami are 30 percent below the previous quarter
and 54 percent below their peak, while completed foreclosures in the nation are
down 13 percent from the previous quarter and 44 percent below their peak. Both
peaks occurred in the third quarter of 2010. However, lender process reviews
and court backlogs continue to affect foreclosure completions. CoreLogic reports
that 44.7 percent of mortgages in the Miami-Miami Beach-Kendall Metropolitan
Division were underwater in the first quarter of 2012 – compared to 23.7 percent
nationally – representing additional homeowners potentially at risk.

The Administration’s Efforts to Stabilize the
Miami Housing Market:

From the launch of the Administration’s assistance programs in April 2009 through
the end of May 2012, nearly 147,500 homeowners received mortgage assistance
in the Miami metropolitan area. Nearly 66,900 interventions were started through
the Home Affordable Modification Program (HAMP) and the Federal Housing
Administration (FHA) loss mitigation and early delinquency intervention programs.
An estimated additional 80,600 proprietary mortgage modifications have been
made through HOPE Now Alliance servicers. While some homeowners may
have received help from more than one program, the number of times assistance
has been provided in the Miami MSA is nearly 50 percent higher than the
number of foreclosures completed during this period (100,000). In addition,
more than 287,000 Miami homeowners stand to benefit from the $8.5 billion
in relief provided to the state under the landmark Mortgage Servicing Settlement
announced in February 2012. Nationwide, the settlement will provide more
than $37.8 billion in benefits that include payments to the participating states,
payments to borrowers, refinance funding, fee reductions and homeowner
benefits. Nearly 1.7 million Americans will benefit from the mortgage settlement.

Spotlight on Miami MSA | Page 3

U.S Department of Housing and Urban Development
U.S. Department of the Treasury
Spotlight on the Housing Market in Miami-Fort Lauderdale-Pompano Beach, Florida

e Administration’s Efforts to Stabilize the Miami Housing Market:

m	
  the	
  launch	
  of	
  the	
  AdministraHon’s	
  assistance	
  programs	
  in	
  April	
  2009	
  through	
  the	
  end	
  of	
  May	
  2012,	
  nearly	
  147,500	
  
meowners	
  received	
  mortgage	
  assistance	
  in	
  the	
  Miami	
  metropolitan	
  area.	
  Nearly	
  66,900	
  intervenHons	
  were	
  started	
  through	
  the	
  
me	
  Affordable	
  ModificaHon	
  Program	
  (HAMP)	
  and	
  the	
  Federal	
  Housing	
  AdministraHon	
  (FHA)	
  loss	
  miHgaHon	
  and	
  early	
  delinquency	
  
ervenHon	
  programs.	
  	
  An	
  esHmated	
  addiHonal	
  80,600	
  proprietary	
  mortgage	
  modificaHons	
  have	
  been	
  made	
  through	
  HOPE	
  Now	
  
ance	
  servicers.	
  While	
  some	
  homeowners	
  may	
  have	
  received	
  help	
  from	
  more	
  than	
  one	
  program,	
  the	
  number	
  of	
  Hmes	
  assistance	
  
	
  been	
  provided	
  in	
  the	
  Miami	
  MSA	
  is	
  nearly	
  50	
  percent	
  higher	
  than	
  the	
  number	
  of	
  foreclosures	
  completed	
  during	
  this	
  period	
  
0,000).	
  In	
  addiHon,	
  the	
  AdministraHon’s	
  Neighborhood	
  StabilizaHon	
  Program	
  (NSP)	
  and	
  Hardest	
  Hit	
  Fund	
  have	
  helped	
  to	
  stabilize	
  

U.S. Department Efforts to Stabilize Development Office and Help American Homeowners
The Obama Administration’sof Housing and Urban the Housing |Marketof Policy Development and Research | July 2012

Together, the Administration’s Neighborhood Stabilization
Program (NSP) and Hardest Hit Fund programs, as well as the
provisions of the mortgage servicing settlement, are helping to
stabilize the Miami housing market.
Given over three rounds, the Neighborhood Stabilization
Program has invested $7 billion nationwide to help
localities work with non-profits and community development
corporations to turn tens of thousands of abandoned
and foreclosed homes that lower property values into
homeownership opportunities and the affordable rental
housing that communities need.

Mortgage Aid Provided More an 147,000 Times
to Mitigate Rising Foreclosures

Miami	
  MSA:	
  CumulaHve	
  Offers	
  of	
  Aid	
  by	
  Source	
  Compared	
  with	
  Foreclosures	
  Since	
  April	
  1,	
  2009	
  	
  (Thousands)	
  
160	
  

	
  	
  	
  	
  	
  Mortgage	
  Aid	
  Offers	
  in	
  Miami	
  MSA	
  from	
  April	
  2009	
  through	
  May	
  2012:	
  147,500	
  
	
  	
  	
  	
  	
  Foreclosure	
  CompleHons	
  Over	
  Same	
  Period:	
  100,000	
  	
  

140	
  
120	
  
100	
  
80	
  
60	
  
40	
  
20	
  
0	
  

FHA	
  Loss	
  MiHgaHon	
  
HAMP	
  Permanent	
  ModificaHons	
  
EsHmated	
  Hope	
  Now	
  ModificaHons	
  
Foreclosure	
  CompleHons	
  
NSP1 funds were granted to all states and selected local
Note:	
  Data	
  on	
  HOPE	
  Now	
  proprietary	
  mortgage	
  modificaHons	
  are	
  not	
  available	
  at	
  the	
  metropolitan	
  area	
  level.	
  However,	
  HOPE	
  Now	
  Alliance	
  
governments on a formula basis under Division B, Title III of
reports	
  214,400	
  non-­‐HAMP	
  modificaHons	
  since	
  April	
  1,	
  2009	
  in	
  Florida	
  of	
  which	
  38	
  percent	
  are	
  esHmated	
  by	
  HUD	
  to	
  have	
  occurred	
  in	
  the	
  
the Housing and Economic Recovery Act (HERA) of 2008;
Miami	
  MSA.	
  This	
  chart	
  excludes	
  HAMP	
  trial	
  modificaHons	
  not	
  made	
  permanent.	
  
	
  
NSP2 funds authorized under the American Recovery and
Sources:	
  Departments	
  of	
  HUD	
  and	
  Treasury,	
  HOPE	
  Now	
  Alliance,	
  and	
  Realty	
  Trac.	
  
	
  
Reinvestment Act (the Recovery Act) of 2009 provided grants
to states, local governments, nonprofits and a consortium of
nonprofit entities on a competitive basis; and NSP3 funds
authorized under the Dodd–Frank Wall Street Reform and
Miami MSA NSP Activity (Housing Units)
Projected Completed
Consumer Protection Act of 2010 provided neighborhood
en	
  over	
  three	
  rounds,	
  the	
  Neighborhood	
  StabilizaLon	
  Program	
  has	
  invested	
  $7	
  billion	
  naHonwide	
  to	
  help	
  
	
  
aliHes	
  work	
  with	
  non-­‐profits	
  and	
  community	
  development	
  corporaHons	
  to	
  turn	
  tens	
  of	
  thousands	
  of	
  
•	
  The	
  City	
  of	
  Miami	
  was	
  awarded	
  a	
  total	
  
n	
  NSP1	
  and	
  NSP3	
  funds.	
  A	
  porHon	
  o hese	
  
stabilization grants vto all states and oselect governments ongone	
  towards	
  rehabilitaHng	
  Total of	
  $16.6	
  million	
  fioreclosed	
  unfinished	
  building	
  in	
  the	
  f	
  teart	
  off	
  unds	
  
a
andoned	
  and	
  foreclosed	
  homes	
  that	
  lower	
  property	
   alues	
  into	
  homeownership	
   pportuniHes	
  and	
  	
  the	
  
has	
  
h
the	
  
NSP1 the	
  Camacho	
  Building,	
  a	
  
1833
701
ordable	
  rental	
  housing	
  that	
  communiHes	
  need.	
  	
  
Lifle	
  Havana	
  neighborhood.	
  With	
  the	
  City’s	
  assistance,	
  a	
  local	
  developer	
  purchased	
  the	
  property	
  and	
  
formula basis.
finished	
  the	
  development.	
  The	
  building’s	
  2and demolitiental	
  units	
  are	
  presently	
  being	
  leased	
  to	
  
Clearance 4	
  one-­‐bedroom	
  r on
101
67
P1	
  funds	
  were	
  granted	
  to	
  all	
  states	
  and	
  selected	
  local	
  governments	
  on	
  a	
  formula	
  basis	
  under	
  Division	
  B,	
  Title	
  
elderly	
  residents	
  at	
  or	
  below	
  50%	
  of	
  area	
  median	
  income.	
  The	
  Miami	
  Beach	
  Community	
  Development	
  
of	
  the	
  Housing	
  and	
  Economic	
  Recovery	
  Act	
  stabilizing SP2	
  funds	
  authorized	
  under	
  the	
  American	
  
Construction w new housing
In addition to (HERA)	
  of	
  2008;	
  N neighborhoods and providing CorporaHon,	
  a	
  non-­‐profit	
  organizaHon	
  that	
  has	
  oforked	
  to	
  revitalize	
  neighborhoods	
  and	
  enhance	
  the	
  
691
113
covery	
  and	
  Reinvestment	
  Act	
  (the	
  Recovery	
  Act)	
  of	
  2009	
  provided	
  grants	
  to	
  states,	
  local	
  governments,	
  
quality	
  of	
  community	
  life,	
  will	
  own	
  and	
  operate	
  the	
  building.	
  Another	
  Miami	
  NSP	
  project,	
  Vista	
  Mar,	
  
affordable housing, NSP funds have helped save he	
  
nprofits	
  and	
  a	
  consorHum	
  of	
  nonprofit	
  enHHes	
  on	
  a	
  compeHHve	
  basis;	
  and	
  NSP3	
  funds	
  authorized	
  under	
  tjobs. leveraged	
  NSP	
  funds	
  with	
  low	
  income	
  housing	
  tax	
  credits	
  to	
  turn	
  a	
  to low-and a	
  housing	
  development	
  
Homeownership assistance vacant	
  lot	
  into	
   moderate income
266
238
dd–Frank	
  Wall	
  Street	
  Reform	
  and	
  Consumer	
  ProtecHon	
  Act	
  of	
  2010	
  provided	
  neighborhood	
  stabilizaHon	
  
with	
  one-­‐,	
  two-­‐	
  and	
  three-­‐	
  bedroom	
  units,	
  a	
  six-­‐story	
  parking	
  garage	
  and	
  green	
  features.	
  	
  
Each overnments	
  on	
  a	
  formula	
  basis.	
  
nts	
  to	
  all	
  states	
  and	
  select	
  ghome purchased, rehabilitated and sold through the
	
  
Rehabilitation/reconstruction of residential structures
775
283
•	
  
NSP program is the result of the efforts of 35 to 50 local The	
  City	
  of	
  Hialeah,	
  also	
  in	
  Miami-­‐Dade	
  County,	
  was	
  awarded	
  a	
  total	
  of	
  $7.6	
  million	
  in	
  NSP1	
  and	
  NSP3	
  
addiHon	
  to	
  stabilizing	
  neighborhoods	
  and	
  providing	
  affordable	
  housing,	
  NSP	
  funds	
  have	
  helped	
  save	
  jobs.	
  Each	
  
funds.	
  The	
  City	
  is	
  creaHvely	
  combining	
  a	
  porHon	
  of	
  these	
  funds	
  with	
  local	
  funds	
  and	
  in-­‐kind	
  services	
  to	
  
NSP2 Total
2619
24
employees.
me	
  purchased,	
  rehabilitated	
  and	
  sold	
  through	
  the	
  NSP	
  program	
  is	
  the	
  result	
  of	
  the	
  efforts	
  of	
  35	
  to	
  50	
  local	
  
develop	
  city-­‐owned	
  and	
  operated	
  projects.	
  One	
  such	
  project	
  is	
  Villa	
  Teresita,	
  a	
  33-­‐unit	
  complex	
  of	
  
ployees.	
  	
  
affordable	
  rental	
  housing	
  for	
  elderly	
  families.	
  On	
  January	
  20,	
  2012,	
  the	
  City	
  of	
  Hialeah	
  was	
  recognized	
  for	
  
Clearance and demolition Community	
  Development	
  Achievement	
  
10
0
erall,	
  a	
  total	
  of	
  $426.8	
  million	
  has	
  been	
  awarded	
  to	
  26	
  NSP	
  grantees	
  in	
  the	
  Miami	
  MSA:	
  	
  20	
  ciHes,	
  including	
  
its	
  exemplary	
  use	
  of	
  NSP1	
  funds	
  by	
  receiving	
  the	
  Audrey	
  Nelson	
  
	
  principal	
  ciHes	
  of	
  Overall,auderdale,	
  Pompano	
  Beach,	
  West	
  Palm	
  Beach,	
  Miami	
  Beach,	
  Deerfield	
  Beach,	
   toAward.	
  	
  	
  
Miami,	
  Fort	
  L a total of $426.8 million has been awarded
26
Construction of new housing
667
0
yton	
  Beach,	
  and	
  Homestead;	
  all	
  three	
  counHes	
  in	
  the	
  MSA;	
  and	
  two	
  consorHa,	
  the	
  Lake-­‐Worth	
  Community	
  
	
  	
  
NSP grantees in the ervices	
  of	
  S MSA: 20 cities, including •	
  
development	
  Agency	
  and	
  the	
  Neighborhood	
  Housing	
  SMiami outh	
  Florida.	
  The	
  government	
  jurisdicHons	
   theLake	
  Worth	
  Community	
  Redevelopment	
  Agency,	
  a	
  22-­‐member	
  consorHum	
  in	
  Palm	
  Beach	
  County,	
  has	
  
Homeownership assistance togencies,	
  law	
  moderatepincome
low-and enforcement	
   ersonnel,	
  
108
11
eived	
  a	
  total	
  of	
  $191.1	
  million	
  in	
  NSP1	
  funds,	
  50	
  million	
  in	
  NSP2	
  funds,	
  Lauderdale,NPompano Beach,
been	
  instrumental	
  in	
  building	
  cooperaHve	
  relaHonships	
  among	
  local	
  a
principal cities of Miami, Fort and	
  $72.1	
  million	
  in	
   SP3	
  funds,	
  and	
  
	
  consorHa	
  received	
  a	
  total	
  of	
  $112.6	
  million	
  in	
  NSP2	
  funds.	
  Approximately	
  740	
  households	
  have	
  already	
  
neighborhood	
  associaHons,	
  and	
  cultural	
  and	
  educaHonal	
  organizaHons.	
  With	
  a	
  $23.2	
  million	
  NSP2	
  grant,	
  
Rehabilitation/reconstruction of residential structures
1834
13
West Palm Beach, Miami Beach, Deerfield Beach,
nefited	
  from	
  NSP,	
  and	
  acHviHes	
  funded	
  by	
  the	
  program	
  are	
  expected	
  to	
  provide	
  assistance	
  to	
  an	
  addiHonal	
  BoyntonWorth	
  has	
  worked	
  to	
  stem	
  a	
  “free	
  fall”	
  in	
  property	
  values	
  in	
  targeted	
  areas	
  and	
  to	
  reconnect	
  
Lake	
  
43	
  owner-­‐occupied	
  and	
  renter	
  households.	
  	
  Examples	
  of	
  how	
  these	
  funds	
  have	
  been	
  put	
  to	
  use	
  are	
  provided	
  
neighborhoods	
  by	
  removing	
  destabilizing	
  influences	
  and	
  promoHng	
  green,	
  pedestrian	
  and	
  bicycle-­‐friendly	
  
NSP3 as	
  acquired	
  and	
  rehabilitated	
  foreclosed	
  and	
  abandoned	
  properHes	
  as	
  well	
  
Total
Beach, and Homestead; all three counties in the MSA; and
531
15
ow.	
  	
  
communiHes.	
  The	
  consorHum	
  h
as	
  
partners	
  
two consortia, the Lake-Worth Community Redevelopmentarranged	
  for	
  the	
  provision	
  of	
  social	
  services	
  by	
  non-­‐profit	
  on who	
  have	
  a	
  long	
  history	
  of	
  assisHng	
  
Clearance and demoliti
39
4
individuals	
  and	
  families	
  in	
  need.	
  So	
  far,	
  the	
  consorHum	
  has	
  generated	
  200	
  contracts	
  with	
  small,	
  local	
  firms,	
  
Agency and the Neighborhood Housing Services of South
accounHng	
  for	
  about	
  20%	
  of	
  their	
  NSP	
  funds.	
  
Construction of new housing
270
0
	
  	
  
Florida. The government jurisdictions received a total of •	
  Palm	
  Beach	
  County	
  received	
  grants	
  from	
  all	
  three	
  NSP	
  programs	
  totaling	
  $89.0	
  million.	
  The	
  County	
  
Homeownership assistance to	
   low-and moderate income
101
11
uHlized	
  $20	
  
$191.1 million in NSP1 funds, 50 million in NSP2 funds, and million	
  to	
  provide	
  first	
  and	
  second	
  mortgage	
  financing	
  toincome	
  eligible	
  homebuyers	
  for	
  the	
  
acquisiHon	
  and	
  rehabilitaHon	
  of	
  foreclosed	
  properHes.	
  The	
  income	
  generated	
  from	
  these	
  mortgage	
  
Rehabilitati mortgages,	
  both	
  sustaining	
   residential structures
121
0
$72.1 million in NSP3 funds, and the consortia received a is	
  reinvested	
  to	
  finance	
  addiHonal	
  on/reconstruction ofthe	
  program	
  and	
  increasing	
  the	
  
programs	
  
public	
  benefit	
  g
he	
  N
total of $112.6 million in NSP2 funds. Approximately 740sed	
  $23	
  menerated	
  by	
  tunds	
  SP	
  dollars.	
  T1o	
  date,	
  the	
  County's	
  Diepartment	
  of	
  Economic	
  Sustainability	
  
has	
  u
illion	
  of	
  NSP	
  f
to	
  acquire	
   32	
  foreclosed	
  homes	
   n	
  the	
  community's	
  hardest	
  hit	
  
i	
  MSA	
  NSP	
  Activity	
  (Housing	
  Units)
Projected
neighborhoods	
  and	
  has	
  overseen	
  the	
  restoraHon	
  of	
  these	
  homes	
  through	
  homebuyer	
  programs.	
  	
  Palm	
  
households have already benefited1833 Completed and activities
from NSP,
Total
701
Beach	
  County	
  has	
  also	
  used	
  NSP	
  funds	
  to	
  aid	
  in	
  developing	
  vacant	
  commercial	
  property	
  by	
  building	
  a	
  
rance	
  and	
  demolition funded by the program are expected to provide assistance to
101
67
a three block area. In Brownsville, NHS has teamed up with a for-profit
homeless	
  resource	
  center,	
  a	
  key	
  element	
  to	
  the	
  County’s	
  Ten	
  Year	
  Plan	
  to	
  End	
  Homelessness.	
  The	
  Phillip	
  
struction	
  of	
  new	
  housing
691
113
D.	
  Lewis	
  
i
developer of affordable housing individuals	
   nd	
  
meownership	
  assistance	
  to	
  low-­‐and	
  moderate	
  income
266
238
an additional 4,243 owner-occupied and renter households.tCenter	
  opened	
  cn	
  June	
  2012,	
  and	
  is	
  now	
  offering	
  a	
  beacon	
  of	
  hope	
  to	
  homeless	
  to tearadown an apartment complex that
families	
   hroughout	
  the	
   ommunity.	
  
abilitation/reconstruction	
  of	
  residential	
  structures
775
283
has been a pocket of crime and drug abuse and replace it with a three-story
Examples of how these funds have 2619
been put24to use are 	
  
Total
•	
  The	
  City	
  of	
  Tamarac,	
  in	
  Broward	
  County,	
  has	
  received	
  a	
  total	
  of	
  $6.2	
  million	
  in	
  NSP1	
  and	
  NSP3	
  funding.	
  
10
0
rance	
  and	
  demolition
garden style apartment complex with enefiHng	
  
provided below.
The	
  City	
  used	
  the	
  NSP1	
  grant	
  to	
  purchase	
  and	
  rehabilitate	
  foreclosed	
  or	
  abandoned	
  properHes,	
  b100 units.

struction	
  of	
  new	
  housing
meownership	
  assistance	
  to	
  low-­‐and	
  moderate	
  income
abilitation/reconstruction	
  of	
  residential	
  structures
Total
rance	
  and	
  demolition
struction	
  of	
  new	
  housing
meownership	
  assistance	
  to	
  low-­‐and	
  moderate	
  income
abilitation/reconstruction	
  of	
  residential	
  structures

667
108
1834
531
39
270
101
121

0
11
13
15
4
0
11
0

53	
  households.	
  With	
  NSP3	
  funds,	
  the	
  City	
  developed	
  a	
  new	
  strategy	
  to	
  allocate	
  funds	
  for	
  acquisiHon,	
  
rehabilitaHon,	
  and	
  disposiHon	
  so	
  that	
  income	
  could	
  be	
  generated	
  and	
  reused	
  within	
  the	
  program.	
  The	
  City	
  

•
The City of andscaping	
  p was awarded a total of
also	
  
The Neighborhood Housing Services of South partnered	
  with	
  Home	
  Depot	
  for	
  the	
  donaHon	
  of	
  lMiami roducts	
  to	
  encourage	
  homeowners	
  near	
   $16.6 million in NSP1 and
NSP3	
  acquired	
   omes	
  to	
  improve	
  their	
  p funds. A portion of these funds has gone towards rehabilitating the
NSP3to	
  neighborhood	
  stabilizaHon	
  i f both	
   umerous	
  city	
  d 	
  	
  
Florida (NHS), a consortium of six non-profit members, a	
  chomprehensive	
  approach	
  roperHes.	
  A	
  coordinated	
  effort	
  n	
  rom	
  nNSP	
  programs.	
  epartments	
  
has	
  fostered	
  
	
  
Camacho Building, a foreclosed unfinished building in the heart of the
has focused its $89 million NSP2 grant on the north
	
  	
  
Little Havana neighborhood. With the City’s assistance, a local developer
central part of Miami-Dade County where the housing
	
  
	
  
purchased the property and finished the development. The building’s 24
stock is aging and there has been a long term trend
	
  
	
  Neighborhood	
  Housing	
  Services	
  of	
  South	
  Florida	
  (NHS),	
  a	
  consorHum	
  of	
  six	
  non-­‐profit	
  members,	
  
	
  
one-bedroom rental units are presently being leased to elderly residents
of middle-class flight iami-­‐Dade	
  County	
  where	
   NHS is
ocused	
  its	
  $89	
  million	
  NSP2	
  grant	
  on	
  the	
  north	
  central	
  part	
  of	
  Mto the suburbs. the	
  housing	
   targeting
	
  
	
  is	
  old	
  and	
  there	
  has	
  been	
  a	
  long	
  term	
  trend	
  of	
  middle-­‐class	
  flight	
  to	
  the	
  suburbs.	
  NHS	
  is	
  targeHng	
  
at or below 50% of area median income. The Miami Beach Community
NSP funds to areas where their investments can have
	
  
unds	
  to	
  areas	
  where	
  their	
  investments	
  can	
  have	
  a	
  substanHal	
  impact	
  on	
  neighborhoods.	
  Within	
  a	
  12	
  
	
  
Development Corporation, a non-profit organization that has worked to
	
  area	
  in	
  the	
  Overtown	
  neighborhood,	
  NHS	
  is	
  rehabilitaHng	
  five	
  on neighborhoods. Within a 12
a substantial impact foreclosed	
  mulHfamily	
  apartment	
  
	
  
ings	
  encompassing	
  a	
  total	
  of	
  100	
  units.	
  In	
  the	
  former	
  high-­‐crime	
  Triangle	
  neighborhood,	
  NHS	
  is	
  
revitalize neighborhoods and enhance the quality of community life, will own
block 40	
  residenHal	
  units	
   Overtown neighborhood, NHS is
vaHng	
  four	
  mulHfamily	
  buildings	
  with	
  area in the within	
  a	
  three	
  block	
  area.	
  In	
  Brownsville,	
  
has	
  teamed	
  up	
  with	
  a	
  for-­‐profit	
  developer	
  of	
  affordable	
  housing	
  to	
  tear	
  down	
  an	
  apartment	
  complex	
  
and operate the building. Another Miami NSP project, Vista Mar, leveraged
rehabilitating fivet	
  with	
  a	
  three-­‐story	
  gmultifamily apartment
foreclosed arden	
  style	
  apartment	
  
has	
  been	
  a	
  pocket	
  of	
  crime	
  and	
  drug	
  abuse,	
  and	
  replace	
  i
NSP funds with low income housing tax credits to turn a vacant lot into a
plex	
  with	
  100	
  units.	
  	
  
buildings encompassing a total of 100 units. In the former
housing development with one-, two- and three- bedroom units, a six-story
high-crime Triangle neighborhood, NHS is renovating
parking garage and green features.
four multifamily buildings with 40 residential units within
•

Spotlight on Miami MSA | Page 4

U.S Department of Housing and Urban Development
U.S. Department of the Treasury

U.S. Department Efforts to Stabilize Development Office and Help American Homeowners
The Obama Administration’sof Housing and Urban the Housing |Marketof Policy Development and Research | July 2012

•

The City of Hialeah, also in Miami-Dade County, was awarded a total of $7.6 million in NSP1 and NSP3 funds. The City is creatively
combining a portion of these funds with local funds and in-kind services to develop city-owned and operated projects. One such project is Villa
Teresita, a 33-unit complex of affordable rental housing for elderly families. On January 20, 2012, the City of Hialeah was recognized for its
exemplary use of NSP1 funds by receiving the Audrey Nelson Community Development Achievement Award.

•

Lake Worth Community Redevelopment Agency, a 22-member consortium in Palm Beach County, has been instrumental in building
cooperative relationships among local agencies, law enforcement personnel, neighborhood associations, and cultural and educational
organizations. With a $23.2 million NSP2 grant, Lake Worth has worked to stem a “free fall” in property values in targeted areas and to
reconnect neighborhoods by removing destabilizing influences and promoting green, pedestrian and bicycle-friendly communities. The consortium
has acquired and rehabilitated foreclosed and abandoned properties as well as arranged for the provision of social services by non-profit
partners who have a long history of assisting individuals and families in need. So far, the consortium has generated 200 Section 3 contracts with
small, local firms, accounting for about 20% of all subcontracted dollars. Section 3 refers to the Department’s program for providing preference to
low- and very low-income residents of the community where grant funds are spent and the businesses that substantially employ these persons.

•

Palm Beach County received grants from all three NSP programs totaling $89.0 million. The County utilized $20 million to provide first and
second mortgage financing to income eligible homebuyers for the acquisition and rehabilitation of foreclosed properties. The income generated
from these mortgage programs is reinvested to finance additional mortgages, both sustaining the program and increasing the public benefit
generated by the NSP dollars. To date, the County’s Department of Economic Sustainability has used $23 million of NSP funds to acquire 132
foreclosed homes in the community’s hardest hit neighborhoods and has overseen the restoration of these homes through homebuyer programs.
Palm Beach County has also used NSP funds to aid in developing vacant commercial property by building a homeless resource center, a key
element to the County’s Ten Year Plan to End Homelessness. The Phillip D. Lewis Center opened in June 2012, and is now offering a beacon of
hope to homeless individuals and families throughout the community.

•

The City of Tamarac, in Broward County, has received a total of $6.2 million in NSP1 and NSP3 funding. The City used the NSP1 grant to
purchase and rehabilitate foreclosed or abandoned properties, benefiting 53 households. With NSP3 funds, the City developed a new strategy
to allocate funds for acquisition, rehabilitation, and disposition so that income could be generated and reused within the program. The City also
partnered with Home Depot for the donation of landscaping products to encourage homeowners near NSP3 acquired homes to improve their
properties. A coordinated effort from numerous city departments has fostered a comprehensive approach to neighborhood stabilization in both
NSP programs.

As part of the State of Florida’s housing recovery efforts, the Florida Hardest-Hit Fund was launched on April 18, 2011 to help Florida
homeowners who have experienced a substantial decrease in income due to job loss or underemployment by providing a mortgage payment bridge
while they seek new or better employment. The Florida Hardest-Hit Fund is funded by $1.06 billion from the Administration’s Hardest Hit Fund
and administered by the Florida Housing Finance Corporation. Program eligibility was recently modified to reach more homeowners with steeper
assistance. Assistance is provided in one of two ways:
•

Unemployment Mortgage Assistance Program (UMAP) provides up to twelve months of payments (with a cap of $24,000) to the
mortgage lender to assist unemployed/underemployed borrowers with their first mortgage until they can resume full payments on their own.

•

Mortgage Loan Reinstatement Payment (MLRP) Program is used to bring a delinquent mortgage current (up to $25,000) for a
homeowner who has returned to work or recovered from underemployment.

The homeowner’s household income is reviewed to determine the level of assistance needed and the minimum mortgage payment that may be
contributed by the borrower. Eligible homeowners close on a 0-percent interest subordinate loan similar to a home equity line of credit. The first 20
percent of the loan will be forgiven eighteen months after the loan closing, and the balance will be forgiven at a rate of 20 percent per year thereafter.
Homeowners must have a documented hardship due to unemployment or underemployment through no fault of their own.

Florida homeowners who believe they may be eligible for these programs should visit www.FLHardestHitHelp.org. Florida has these funds
available until 2017 or until all funds are expended to help struggling homeowners and prevent avoidable foreclosures.

Spotlight on Miami MSA | Page 5


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102