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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 Eme period, with the most rapid t on the Housing Market in Miami-Fort Lauderdale-Pompano Beach, Florida migraEon occurring between 2000 and 2005. In Miami-‐Dade County, where the City of 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 p ace of the naEonal average. As a result, home the d spanned by the Census, new housing producEon exceeded household growth in the Miami MSA; net annual housing unit growth at 1.5 percent was grea eeply than in most parts of the country. Reduced property values and the extent of underwater During mortgages in ecade the current market were partly U.S. Department of Housing than and Urban Development | Office of Policy Development and Research he opulaEon nd household growth rates of 1.1 and 1.0 percent, respecEvely. Although Miami normally has a relaEvely larger stock of housing units s housing construcEon in the years prior to the housing crisis, but mainly by rising defaults, driven first tb y ucorresponding nsustainable spubprime maortgages are hhousing eld for m seasonal use compared to ith other downturn and climbing unemployment. Economic condiEons in Miami are improving, but the local arket remains fragile -‐ w high areas, this intercensal growth in the housing stock indicates excess construcEon contributed to an oversupply of housing and m led to rsemains teeper parice declines aher 2006. large numbers of vacancies, and 48 percent of home mortgages underwater. Access to available have credit also barrier for potenEal and According 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 Beach, FL Metropolitan Area along southeastern of wFlorida three annually during the 2000s, hcigher tThan the naEonal ris ate located of 4.4 percent during the the same period. Investor coast speculaEon as a major and cause oincludes f overbuilding in Miami in the yea ministraEon’s broad approach to stabilize Lauderdale-Pompano the housing market has been a real help to homeowners in Miami and Statistical surrounding iEes. his (Miami) ’s Housing Scorecard provides aBroward, summary of trends and condiEons (includes in the local economy nd tMiami) he leading impact ointo f the AdministraEon’s efforts to p the crisis, wBeach. ith investor home urchases represenEng arevised larger stheir hare ohousing f total purchases the nin aEon. Specifically, 000 to 2006, have home sales to invest counties: Miami-Dade City aof and Palm The challenges in the Miami market, other partsfrom of2Florida, CoreLogic methodology forthan in as the Miami-‐Miami Beach-‐Kendall Metropolitan Division restimating ose from 8 tunderwater 9 percent borrowers f all sales, recently. the corresponding increase for the naEon was 8 to 15 percent. Another cal homeowners. been more severe than those in most areas of the nation. Miami currently ranks first in the nationo 1for the oshare ofwhile mortgages at risk of foreclosure - those of overbuilding in Miami prior to the crisis was speculaEve construcEon of inner city condominium units which did not sell to owner occupants or investors. According to C The updated national data is available for 2012 Q1; Vultures® Contributing LLC, greater downtown iami high added ashare pproximately 22,250 condominium units during the boom that blongest egan in 2003. As of the fourth processing quarter of 2011, approxima 90 or more days delinquent or in the foreclosure process. to Mthe of distressed mortgages is the third foreclosure Miami data for 2012 Q1 will hopefully available soon. of downtown condominium units were renter-‐occupied, according to the Miami Downtown Development Authority. time among states, as lender processing delays and56 apercent backlog in the courts contribute to a high ofQ4mortgages extending the foreclosure pipeline. Updated datashare for 2011 for Miami is included in The Obama Administration’s Efforts to Stabilize the Housing Market and Help American Homeowners | July 2012 the text. During the early part of the last decade, local home prices rose at nearly double the pace of the national average. Since that time, home prices in Miami haveMarket: fallen more steeply than in most parts of the country. Reduced property values and the extent of underwater mortgages in the current market were ent, and Housing Miami Housing Uand nit Growth Outpaced Population and Household G partly fueled by investor speculation excess housing construction inrowth the years prior to the housing crisis, but were also driven by rising defaults due to During the Past according to the most recent Census, the Decade unsustainable subprime mortgages beginning in 2007, then by the economic downturn and climbing unemployment. Economic conditions in Miami are n. From 2000 to 2010, populaEon growth was A modest economic recovery of Census 4/1/00 4/1/10 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 improving, the local Date housing market remains fragile – owith concentrations of distressed mortgages, large108,400 numbers 45the percent ofof 2007 th of 1.1 percent per year. MigraEon but accounted quarter f 2007. high As a 5,564,635 result of the recent recession, significant job losses occurred, averaging jobs, or 4of .5 pvacancies, ercent, per year, and beginning third quarter Miami Population 5,007,956 ng this Eme period, with the most rapid quarter of 2credit 010. The lremains ocal economy has made modest gpotential ains in the years since, with an average of 30,300 jobs, oHowever, r 1.4 percent, added eAdministration’s ach year. The educaEon and health home mortgages underwater. addition, lack of access to a barrier for and existing homeowners. the Annual GIn 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 been oaf 8,500 realjobs help to homeowners in Miami andin surrounding cities. This the ed by an average broad of 24,250 approach people, or 1.1 to stabilize the housing market has average per year. The naEonal unemployment rate peaked October 2009 at 10.0 and fell to 8.2 addendum percent by June 2to 012. The Obama unemployment rate for the Mia Annual Growth Rate -‐ 1.0% followed a s imilar t rend, i mproving from a high in of 1the 1.4 in local September 2010 to 8.6 and percent in Mimpact ay 2012. of the Administration’s efforts to Administration’s HousingMiami Scorecard and conditions economy the Housing Units provides a summary 2,149,749 of trends2,464,417 Annual Growth Rate local homeowners. -‐ 1.5% stabilize the housing market and help 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 theof Census, new production way in Miami. The local economy expanded by an by average 60,800 jobs, o r 2.8 phousing ercent, per year, from the third quarter of 2003 through the second t recession, significant job losses household occurred, averaging 108,400 in jobs, or 4Miami .5 percent, MSA; per year, net beginning the third quarter of 2007 through the first exceeded growth the annual Miami unemployment rate and payroll data for 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 services, June will be available Friday, July 20. The text housing growth aat percent was greater retail trade declines, mainly in unit the construcEon nd g1.5 overnment sectors, parEally offset the than above gthe ains 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 aand nd fell household to 8.2 percent by growth June 2012. rates The unemployment rate for the Miami MSA has corresponding population of 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 contributed tofor anMiami oversupply of housing and may Monthly Unemployment Rate (Percent) Job construction Market Conditions Improving and Nation Nonfarm Employment have led Quarterly to steeper price declines after 2006. According 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 of annually during the 2000s, higher than the national rate 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 1.1%118 1.0% 2,149,749 2,464,417 - 1.5% nally Adjusted Data e: Bureau of Labor SSource: taEsEcs Census Bureau (2000 and 2010 Decennial) 6 4 2 0 2,097,626 NaEon (right axis) Millions 138 Miami Housing Unit Growth Outpaced Population and 133 Household Growth During the Past Decade 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 5.56 people according towas the olitan Division rose from 8a to population 19 percent of all of sales, while tmillion he corresponding increase for the naEon 8 to 15 percent. Another 2,450 cause s was speculaEve construcEon of inner city condominium units wMSA hich did n sell to owner occupants ondo most recent Census, the Miami isot the 8th largest inor investors. According to C2,400 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 2010, population growth was nits were renter-‐occupied, according to the Miami Dto owntown Development Authority. 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 ofEff Housing Urban the Development Office of Policy Development Research | July 2012 The Obama Administration’s orts toand Stabilize Housing |Market and Help American and Homeowners ami MSA have improved since 2008. ExisRng home sales began a steep decline in 2006 4.4 percent Investor was eadily since 2008. New home sales during fell from 2the 007 tsame hrough 2period. 009 and have remained speculation at Sales of bank-‐owned properRes and sof hort sales remain high in at 2Miami 5 percent oin f exisRng a major cause overbuilding the years leading mi M SA h ave i mproved s ince 2 008. E xisRng h ome s ales b egan a s teep d ecline i n 2 006 mi market, the same as the naRonal rate, and contribute to weakness in home prices. adily shince 2008. Nindex ew the home ssales fell from 2investor 007 2p009 and ave emained representing at into crisis, a -‐sales ouse price (HPI) hows twith hat the rise tihrough n home home rices in purchases thhe Mriami-‐Miami Sales oD f bank-‐owned properRes and sales remain high a2t 000 25 paercent of exisRng politan was nearly double tof he sEhort nxisRng aRonal pace etween nd m id-‐2006. larger total than in the nation. ami M SA ivision have improved sshare ince 2008. hcpurchases ome sbales bo egan a steep dhecline irices. n 2006 Specifically, mi m arket, t he s ame a s t he n aRonal r ate, a nd ontribute t w eakness i n ome p helped fince uel t2he rise n hh ouse -‐ home sales tto hrough investors averaged 18 rpemained ercent in at eadily souse 008. Niew ome pssrices ales from 007 009 hinvestors ave from tof-‐tell 2006, home sales to in the Miamisales rice index (2000 HPI) the 2rise in hfome p2rices ian nd the Miami-‐Miami 2h006 -‐ pm uch higher than hows the a1nd 4 hat phort ercent share or the naRon. ome prices in Miami and Sales f b-‐ank-‐owned properRes sales remain high t 25 aH pnd ercent of exisRng olitan Dpoivision wMiami as ntearly dBeach-Kendall ouble the p nsrices aRonal ptace baRon etween 2a000 mid-‐2006. Metropolitan Division rose m t heir eak i n 2 006 han d id a verage f or he n -‐ -‐ M iami p rices w ere pdrices. own 49 from 8 to 19 mi m arket, t he s ame a s t he n aRonal r ate, a nd c ontribute t o w eakness i n h ome elped fuel ntearly he rise in house m prices -‐ home s3ales to investors averaged 18 percent in . ber 2009, two-‐thirds t-‐han the 1 rise percent nthe aRonal pieak-‐to-‐low decline sales house puch rice index (tHPI) sthows tsales, hat the in fhor ome pnrices n Hthe Miami-‐Miami percent ofore all while corresponding increase for the and 2 006 -‐ -‐ m h igher han he 1 4 p ercent s hare t he aRon. ome p rices i n M iami have flDuctuated since the deouble nd of tthe hnouse price bubble but h2ave een ising since early politan ivision was nhan early aRonal ace between 000 pbarices nd mrw id-‐2006. their peak in 2006 id average prices for percent. tphe naRon -‐-‐ Another Miami ere down 4overbuilding 9 nation was 8-‐he to cause of in y 5 percent higher titn han tdheir 2009 l-‐ ow. 15 elped f uel t he r ise h ouse p rices h ome s ales t o i nvestors a veraged 1 8 p ercent i n er 2009, nearly two-‐thirds more than the 31 percent naRonal peak-‐to-‐low decline . Miami prior the crisis construction of inner and 2fl006 -‐-‐ much higher tehan the 1to 4 hpouse ercent share fwas or the nspeculative aRon. Heen ome prices in M iami have uctuated s ince t he nd o f t he p rice b ubble b ut h ave b r ising s ince e arly ucDon pteak he M iami rental ousing market is fdor oing with vacancy rates falling since 2006 than dhid prices the w nell, aRon -‐-‐ M iami not prices were down 49 city condominium did sell to occupants 5their percent hin igher han their 2average 009 low. units PF esearch, the otverall apartment vacancy in which Miami was .5 percent idn ecline the fiowner rst er 2R009, nearly two-‐thirds more than the 31 rate percent naRonal p4eak-‐to-‐low . ® n rom fl5uctuated .1 percent ainvestors. year eearlier, cthe ompared wrice ith tbhe ihn ave the bVultures neen aRonal vacancy rarly ate greater or According todecline Condo LLC, ucDon hfave s ince t he nd o f h ouse p ubble b ut r ising s ince e the tM iami housing market is droing with increased vacancy rbates nt. uring he first rental q uarter of 22009 012, average ents w in ell, Mapproximately iami y 4 pfalling ercent since from a condominium y F 5R Dp ercent htigher than lvow. added Miami he downtown verall atheir partment acancy ate Miami 4.5 pdercent in t22,250 first he aesearch, verage rent noaRonwide also increased bry 4 pin ercent to w$as 1,061 uring the she ame from 5.1 percent a y ear e arlier, c ompared w ith t he d ecline i n t he n aRonal v acancy rate units during the boom that began inrates 2003. As of the fourth ucDon t he M iami r ental h ousing m arket i s d oing w ell, w ith v acancy f alling s ince a t. During the first quarter of 2012, average rents in Miami increased by 4 percent from PF R esearch, t he o verall a partment v acancy r ate i n M iami w as 4 .5 p ercent i n t he fi rst quarter of 2011, approximately 56 percent of downtown e average rent naRonwide also increased by 4 percent to $1,061 during the same 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 Authority. he average rent n aRonwide Downtown also increased bDevelopment y 4 percent to $1,061 during the same 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,and or Foreclosures: 4.5 percent, per year, beginning the third quarter of ge Delinquencies 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 Delinquencies Foreclosures: has and made modest gains in theat years since, with ut of 366 metropolitan areas ranked by share of mortgages risk of foreclosure (90 or an average of in the foreclosure process) ajobs, ccording or to L1.4 PS Applied AnalyRcs. However, the foreclosure 30,300 percent, added each year. The education nue to sLtruggle ith high rates of mortgage and foreclosure. s opf ercent May roving. PS data wshow that mForeclosures: ortgages at risk doelinquency f foreclosure decreased by 6A.2 and and services, business and t eo1Delinquencies f 64,400 366 metropolitan ahealth reas ranked by Msay hare of professional mcortgages t ith risk ao and foreclosure (90 oof r 1services, m in May 2011 to 154,200 in 2012, ompared aw nf aRonal decline .0 n the foreclosure pdrocess) according to LtPS Ahave pplied Abeen nalyRcs. However, the fcontributors oreclosure retail trade sectors the major to job period. C oreLogic ata s ince 2 000 s how hat t he r ate o f m ortgages a t r isk o f f oreclosure Rnue to struggle w ith h igh m rates of mortgage adnd foreclosure. As of May oving. LPS data wsith how that ortgages t risk odf telinquency foreclosure ecreased by s6harply .2 percent een the nreas aRonal rate the tahrough eortgages nd of began, 2006, but orf increasing ose d(uring the ut f c3onsistent 66 min etropolitan ranked share ohe f cmompared t risk foreclosure 90 o1r growth since recovery 1o64,400 ay 011 w tao 154,200 in bMy ay 2foreclosures 012, waith a naRonal decline of by .0 a combined first years of M the c2risis hen sccording ingle-‐family were largely associated with in t he f oreclosure p rocess) a t o L PS A pplied A nalyRcs. H owever, t he f oreclosure period. CoreLogic disk ata osf of ince 2000 show tjobs hat the per rin ate o f mortgages at to risk of pforeclosure total 27,800 year. Employment declines, mainly cts, m ortgages a t r f oreclosure r ose r apidly M iami -‐ f rom 1 .3 1 2.7 ercent o f oving. LPS data show tnhat mortgages at risk o f foreclosure decreased bsy 6.2 percent en consistent with the aRonal rate through end f 21006, b4ut rose harply during tthe 2007 and 2in 008. The comparable rise or the nthe aRon woas .6 wto .4 ercent. ccording o in the and government sectors, partially offset the m 164,400 May 2011 to construction 154,200 in fM ay 2012, compared ith a npaaRonal d Aecline of 1.0 rst y ears o f t he c risis w hen s ingle-‐family f oreclosures w ere l argely ssociated w ith period. Clearinghouse, Home Mince ortgage Dsisclosure drata indicate that high-‐cost ofr oreclosure subprime CoreLogic data 2000 how hat Atct he of m t r1isk above gains the same period byofpf oreclosures a combined average ts, m ortgages of lfsoans oreclosure rduring ose rtapidly n 2ate M006. iami -‐eginning ortgages from 1.3 in tao 2.7 ercent of rly c5onsistent 3 percent awot ith f risk total in trhe M iami MSA iin 2009, en tche naRonal ate tor hrough the end of 1B2.6 006, b.4 ut prercent. ose sharply during to the 007 a nd 2 008. T he omparable r ise f t he n aRon w as t o 4 A ccording of 8,500 jobs per year. The national unemployment rate ted ywears ith porime lcoans awnd were triggered fboreclosures y loss of income, uargely nemployment, and negaRve first f t he risis hen s ingle-‐family w ere l a ssociated w ith Clearinghouse, Home Mortgage Doisclosure Act data itndicate that hsigh-‐cost r subprime arch by the Federal Reserve Bank f Cose hicago. During his R-‐me, the hare of sopeverely ts, apeaked t trotal isk oloans f foreclosure rM apidly n 006. Miami 10.0 from 1i.3 12.7 ercent of percent by October at fell to 8.2 y 5m 3 ortgages percent iin n ptercent he Mriami SA 2009 i010, n i2 Beginning n and 2tso 009, Miami rose to oaf T h igh of 23.1 n ethe arly 2aRon but eclined ince ft oreclosures o 19.6 percent. 2007 aith nd 2rime 008. he caomparable rise fior n w as h1as .6 utdo 4.4 percent. Aaccording to ed w p l oans nd w ere t riggered b y l oss o f i ncome, nemployment, nd nMiami June 2012. The unemployment rate for the tgages rose less Hdome ramaRcally for tDhe naRon, Apct eaking andicate t 7.9 percent in early 2o010, aegaRve nd have MSA has Clearinghouse, M ortgage isclosure d ata i t hat h igh-‐cost r s ubprime ch b y t he F ederal R eserve B ank o f C hicago. D uring t his R me, t he s hare o f s everely cent. athe similar from a high of 11.4 in ly 53 p ercent total Miiami Mtrend, SA in 2b 006. eginning in s2ince 009, foreclosures Miami rose to ao followed hf igh of loans 23.1 pin ercent n early 2010, ut improving hBas declined to 19.6 percent. ted with prime oans and were ttriggered bto y pleaking oss of iancome, unemployment, a2012. nd annd egaRve gages rose less odf lSeptember ramaRcally he t iami 7.9 piercent in eMay 2010, have 2010 8.6 the high level mortgages afor t risk onf aRon, foreclosure in Mpercent s the Rin me iarly t takes to complete rch b y the Federal Reserve Bank of Chicago. During this Rme, the share of severely ent. According to tR Trac, he paercent verage ifn oreclosure processing Rme in Fsince lorida, hich Miami rose o ealty a high of 2t3.1 early 2010, but has declined to w 19.6 percent. closure process, as 861 days in tthe he saRon, econd uarter ot f 72.9 012 (third ongest mong states) gages rose less dw ramaRcally pqeaking percent iln 2a010, aimproved nd have in the Miami MSA since he hrigh loevel of dHome m ortgages asales t for risk of nforeclosure itn Maiami increase s the Rme iet narly thave akes to ocf omplete nal ate f 3 78 ays. T he l onger p rocessing R me ends t o i t he umber ent. to Realty Trac, the average foreclosure processing Rme in Florida, which ccording 2008.foreclosures. Existing Lengthy homeprocessing sales began a steep decline in 2006 but ne and delay completed Rmes notwithstanding, the losure process, w as 8in 61 days in the second quarter of 2is 012 (third longest anmong states) ate April o2f have 009 the Maiami M asteadily t 4.1 percent, nearly ttNew he aRonal rate sales fell from increased since the hsince igh olf evel mortgages t risk of SA, foreclosure in M iami is t2008. he dRouble me int umber akes too f home complete al rcate 378 days. Tbhe longer processing Rme itn ends to iami increase he re ompleRons have een trending dfownward trocessing he M Mme SA itan nd naRonally. For the According t o R ealty T rac, t he a verage oreclosure p R F lorida, w hich 2007 through and have at4 pthistorically low e and delay completed foreclosures. 2009 Lercent engthy bpelow rocessing Rmes remained notwithstanding, he mpleted f oreclosures i n M iami a re 3 0 p t he p revious q uarter a nd 5 ercent closure was dM ays in tM he second of (third longest mong srtates) te since pArocess, pril 2009 in 8t61 he iami SA, at d4own .1 qpuarter ercent, is 2n012 early the naaRonal ate ompleted foreclosures in longer tSales he naRon are 13 percent fproperties rom dtouble he previous quarter and sales remain ofownward bank-owned and short nal rate of 3 78 hdlevels. ays. bTeen he processing Rme ttends tiami o increase the naRonally. umber of For e c ompleRons ave t rending d i n he M M SA a nd n t he eak. Both peaks occurred in the third q Luarter op f rocessing 2010. However, lender process reviews ne and delay completed fiami oreclosures. engthy Rmes n tthe he Miami market, high 27 existing home sales inercent pleted in Mat are percent 30 percent bof elow the previous qotwithstanding, uarter and f 54 nue o aforeclosures ffect foreclosure compleRons. CaoreLogic reports 48.1 percent mportgages ate stince Aforeclosures pril 2009 in tin he Miami MSA, t own 4.1 p1ercent, is ntfhat early ouble the n oq aRonal raate ompleted the naRon are d 3 percent rom tf dhe previous uarter nd slightly higher than the national rate of 24 percent. The high h-‐Kendall M etropolitan D ivision w ere u nderwater a t t he e nd o 2 011– c ompared t o 5.2 re compleRons h been dqownward the M iami MSA and npaRonally. For t2he ak. Both paeaks oave ccurred in trending the third uarter oaf t in 2risk. 010. However, lender rocess reviews esenRng ddiRonal h omeowners p otenRally proportion in home mpleted foreclosures in McompleRons. iami are of 30 distressed pCercent below tsales he p revious 5to 4 pweakness ercent ue to affect foreclosure oreLogic reports that 4contributes 8.1 qpuarter ercent a nd of m ortgages ompleted M foreclosures iD n ivision the naRon down 13 repeat-sales paercent from phouse revious quarter nd h-‐Kendall etropolitan wCoreLogic ere aure nderwater t the end of t2he 011– compared to 2a5.2 prices. The price index (HPI) eak. B oth p eaks o ccurred i n t he t hird q uarter o f 2 010. H owever, l ender p rocess r eviews esenRng addiRonal homeowners potenRally at risk. showscompleRons. that the rise in home prices in the of Miami-Miami Beachnue to affect foreclosure CoreLogic reports that 48.1 percent mortgages h-‐Kendall Metropolitan Division were underwater at the end was of 2011– compared to 25.2 the national Kendall Metropolitan Division nearly double 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 Since April 1, 2009 Miami since the end of the house price bubble oreclosure Completion Rates in the Miami MSA Foreclosure Foreclosure Foreclosure Rate Foreclosure ate but have been rising since early R2011 and are currently 5 ompletions Completions Second Quarter 2012 Since April 1, 2009 percent their 2009 Foreclosure Completion Rates higher in the M 6,000 0.2% iami than M 1SA 01,900 4.1% low. oreclosure Foreclosure 160,500 Foreclosure 0.1% Rate 2,853,800 Foreclosure 2.2% Rate ompletions Completions s Percent of AQll uarter Housing Units; Second 2012 Since April 1, 2009 6,000 0.2% 101,900 4.1% 2012 for Foreclosures since April 2009 Foreclosure oreclosure 160,500 Foreclosure 0.1% Rate 2,853,800 Foreclosure 2.2% Rate 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: 2006 New Sales (right Miami MSA: ExisRng Sales MSA: New Sales 2003 2004 2007 axis) 2008 2009 2010 Miami 2011 50 1,000 0 0 Sources: CoreLogic, HUD/Census Bureau, and NaRonal AssociaRon of Realtors NaRon: E2003 xisRng Sales 2004 (right axis) 2005 NaRon: N2006 ew Sales (right axis) Miami MSA: 2009 ExisRng Sales 2010 Miami 2011 MSA: New Sales 2007 2008 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 oImproving Sources: CoreLogic, HUD/Census Bureau, and NaRonal AssociaRon f Realtors Repeat-‐Sales House Price ISharply ndex (Jan After 2000 =Steep 100) Rise Miami Home Prices Decline Market Is Improving 330 House Price Index (Jan 2After 000 = 1Steep 00) Rise MiamiRepeat-‐Sales Home Prices Decline Sharply 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 RatesDivision Lower Source: CoreLogic. Miami-‐Miami Beach-‐Kendall Metropolitan HPI an the Nation 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 7 9 5 6 8 4 5 7 3 4 6 2 3 5 1 2 4 1 3 Year and Quarter 2 1 Miami Metro Area Year and Quarter 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 Spotlight on25 20 Miami MSAMortgages | Page90+ 2 Days Delinquent (Percent of All AcRve Mortgages) 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 ofEff Housing Urban the Development Office of Policy Development Research | July 2012 The Obama Administration’s orts toand Stabilize Housing |Market and Help American and Homeowners 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 ofEff Housing Urban the Development Office of Policy Development Research | July 2012 The Obama Administration’s orts toand Stabilize Housing |Market and Help American and Homeowners 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 ofhas 2010 neighborhood en over three rounds, the Neighborhood StabilizaLon P rogram invested $provided 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 of $16.6 million in NSP1 and NSP3 funds. A porHon of these funds stabilization grants to all states and select governments on a andoned and foreclosed homes that lower property values into homeownership opportuniHes and the has gone towards rehabilitaHng the Camacho Building, a foreclosed unfinished building in the heart of the NSP1 Total 1833 701 ordable rental housing that communiHes Lifle Havana neighborhood. With the City’s assistance, a local developer purchased the property and formula basis.need. finished the development. The building’s 2and 4 one-‐bedroom Clearance demolitirental on units are presently being leased to 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 In Economic Recovery to Act stabilizing (HERA) of 2008; NSP2 funds authorized under tand he American that on has of worked revitalize neighborhoods and enhance the Constructi newto housing addition neighborhoods providing CorporaHon, a non-‐profit organizaHon 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 NSP funds have helped save nprofits and a consorHum of nonprofit housing, enHHes on a compeHHve basis; and NSP3 funds authorized under tjobs. he leveraged NSP funds with low income housing tax credits to turn a to vacant lot into amoderate housing development Homeownership assistance low-and 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 purchased, nts to all states and select ghome overnments on a formula basis. 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 demoliti on 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 Community Development Achievement principal ciHes of Overall, Miami, Fort Lauderdale, Beach, West million Palm Beach, has Miami been Beach, Deerfield Beach, toAward. a totalPompano of $426.8 awarded 26 Constructi on of new housing 667 0 yton Beach, and Homestead; all three counHes in the MSA; and two consorHa, the Lake-‐Worth Community NSP grantees inHousing the SMiami MSA: 20 development Agency and the Neighborhood ervices of South Florida. The gcities, overnment including jurisdicHons the • Lake Worth Community Redevelopment Agency, a 22-‐member consorHum in Palm Beach County, has Homeownership assistance to low-and moderate income 108 11 eived a total of $191.1 million in NSP1 funds, of 50 m illion in NSP2 funds, Lauderdale, and $72.1 million in NPompano SP3 funds, and Beach, been instrumental in building cooperaHve relaHonships among local agencies, law enforcement personnel, principal cities Miami, Fort 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 Palm Beach, Miami Beach, Deerfi eldto aBeach, nefited from NSP, aWest nd acHviHes funded by the program are expected to provide assistance n addiHonal Boynton Lake Worth has worked to stem a “free fall” in property values in targeted areas and to reconnect 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 Total Beach, and Homestead; all three counties in the MSA; and 531 15 ow. communiHes. The consorHum has acquired and rehabilitated foreclosed and abandoned properHes as well as arranged for the provision of social services by non-‐profit partners who have a long history of assisHng two consortia, the Lake-Worth Community Redevelopment Clearance demoliti 39 4 individuals and families in need. So far, the and consorHum has gon enerated 200 contracts with small, local firms, Agency and the Neighborhood Housing Services of South accounHng for about 20% of their NSP funds. Constructi on 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 low-and moderate income 101 11 uHlized $20 million to provide first and second mortgage financing to to income eligible homebuyers for the $191.1 million in NSP1 funds, 50 million in NSP2 funds, and acquisiHon and rehabilitaHon of foreclosed properHes. The income generated from these mortgage Rehabilitati on ofthe residenti 121 0 $72.1 million in NSP3 funds, and the consortia receivedprograms a is reinvested to finance addiHonal on/reconstructi mortgages, both sustaining program aal nd structures increasing the public benefit generated by the NSP dollars. To date, the County's Department of Economic Sustainability total of $112.6 million in NSP2 funds. Approximately 740 has used $23 million of NSP funds to acquire 132 foreclosed homes in 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 benefited fromCompleted NSP, and activities Total 1833 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 101 to provide 67 threeto tblock area. InPlan Brownsville, NHS has teamed up with a for-profit assistance to resource center, a key aelement homeless he County’s Ten Year to End Homelessness. The Phillip struction of new housing 691 113 D. Lewis Center opened in June developer 2012, and is now oof ffering a beacon of hope to homeless to individuals adown nd affordable housing tear an apartment complex that meownership assistance to low-‐and moderate income 266 and renter 238 an additional 4,243 owner-occupied households. families throughout the community. 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 withb100 provided below. The City used the NSP1 grant to purchase and rehabilitate foreclosed or acomplex bandoned properHes, enefiHng 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 • Depot The City ofof lMiami was to awarded a totalnear of $16.6 million in NSP1 and also partnered with Home for the donaHon andscaping products encourage homeowners The Neighborhood Housing Services of South NSP3 acquired homes to improve their properHes. A coordinated effort of from these numerous city departments NSP3 funds. A portion funds has gone towards rehabilitating the Florida (NHS), a consortium of six non-profit members, has fostered a comprehensive approach to neighborhood stabilizaHon in both NSP programs. 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 middle-class ight the suburbs. NHS is targeting ocused its $89 million NSP2 of grant on the north central fl part of Mto iami-‐Dade County where the housing 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 foreclosed mulHfamily apartment Within a 12 a substantial impact neighborhoods. 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 in the Overtown neighborhood, NHS is vaHng four mulHfamily buildings with area 40 residenHal units w ithin 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 fi ve foreclosed multifamily apartment has been a pocket of crime and drug abuse, and replace it with a three-‐story garden style apartment 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 ofEff Housing Urban the Development Office of Policy Development Research | July 2012 The Obama Administration’s orts toand Stabilize Housing |Market and Help American and Homeowners • 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
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