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challenges	
  in	
  the	
  Reno	
  MSA	
  housing	
  market	
  have	
  been	
  more	
  severe	
  than	
  those	
  in	
  most	
  areas	
  of	
  the	
  naBon.	
  The	
  MSA	
  currently	
  ranks	
  49 	
  in	
  the	
  naBon	
  for	
  th
of	
  foreclosure	
  -­‐	
  those	
  90	
  or	
  more	
  days	
  delinquent	
  or	
  in	
  the	
  foreclosure	
  process.	
  During	
  the	
  early	
  part	
  of	
  the	
  last	
  decade,	
  local	
  home	
  prices	
  rose	
  at	
  a	
  pace	
  tha
than	
  the	
  naBonal	
  average.	
  Since	
  that	
  Bme,	
  home	
  prices	
  in	
  Reno	
  have	
  fallen	
  more	
  steeply	
  than	
  in	
  most	
  parts	
  of	
  the	
  country.	
  Falling	
  property	
  values	
  and	
  the	
  re
mortgages	
  were	
  parBally	
  fueled	
  by	
  investor	
  speculaBon	
  and	
  excess	
  housing	
  construcBon	
  in	
  the	
  years	
  leading	
  up	
  to	
  the	
  housing	
  crisis.	
  Rising	
  defaults	
  as	
  a	
  resu
mortgage	
  lending	
  and	
  rising	
  unemployment	
  during	
  the	
  subsequent	
  recession	
  added	
  further	
  to	
  the	
  decline	
  in	
  property	
  values.	
  Economic	
  condiBons	
  in	
  Reno	
  a
housing	
  market	
  remains	
  fragile	
  with	
  a	
  high	
  concentraBon	
  of	
  distressed	
  sales,	
  large	
  numbers	
  of	
  vacancies,	
  and	
  49	
  percent	
  of	
  home	
  mortgages	
  underwater.	
  Ho
broad	
  approach	
  to	
  stabilize	
  the	
  housing	
  market	
  has	
  been	
  a	
  real	
  help	
  to	
  homeowners	
  in	
  Reno	
  and	
  surrounding	
  ciBes.	
  This	
  addendum	
  to	
  the	
  Obama	
  Administr
provides	
  a	
  summary	
  of	
  trends	
  and	
  condiBons	
  in	
  the	
  local	
  economy	
  and	
  the	
  impact	
  of	
  the	
  AdministraBon’s	
  efforts	
  to	
  stabilize	
  the	
  housing	
  market	
  and	
  help	
  loc

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

Spotlight on the Housing
Population Growth, Employment, and Housing Market:

Market in Reno-Sparks, Nevada

With	
  a	
  populaBon	
  of	
  425,417	
  people	
  according	
  to	
  the	
  most	
  recent	
  Census,	
  the	
  Reno-­‐
Sparks	
  MSA	
  is	
  the	
  116th	
  largest	
  in	
  the	
  naBon.	
  From	
  2000	
  to	
  2010,	
  populaBon	
  growth	
  
was	
  moderate,	
  increasing	
  at	
  an	
  average	
  of	
  8,250	
  people,	
  or	
  2.4	
  percent	
  a	
  year.	
  From	
  
Spotlight on the Housing Market in Reno-Sparks, Nevada to	
  2007,	
  6,125	
  people	
  a	
  year	
  moved	
  into	
  the	
  area,	
  accounBng	
  for	
  68	
  percent	
  of	
  
2000	
  
total	
  populaBon	
  growth.	
  As	
  economic	
  condiBons	
  worsened	
  from	
  2008	
  to	
  2010,	
  an	
  
average	
  of	
  260	
  people	
  a	
  year	
  moved	
  out	
  of	
  the	
  MSA,	
  slowing	
  populaBon	
  growth.	
  	
  
The Obama Administration's Efforts to Stabilize the Housing Market and Help American Homeowners - November 2012

Reno	
  Housing	
  Unit	
  Growth	
  Outpaced	
  Population	
  and	
  Househ
the	
  Past	
  Decade

Date	
  of	
  Census
Reno-­‐Sparks	
  Population
	
  	
  	
  Annual	
  Growth	
  Rate	
  
Reno-­‐Sparks	
  Households
	
  	
  	
  Annual	
  Growth	
  Rate	
  
Reno-­‐Sparks	
  Housing	
  Units
	
  	
  	
  Annual	
  Growth	
  Rate	
  

4/1/00
342,885
-­‐
133,546
-­‐
145,504
-­‐

opolitan	
  StaBsBcal	
  Area	
  (Reno)	
  is	
  located	
  in	
  northwestern	
  Nevada	
  and	
  includes	
  two	
  counBes:	
  Washoe	
  (including	
  the	
  ciBes	
  of	
  Reno	
  and	
  Sparks)	
  and	
  Storey.	
  The	
  
Source: Census Bureau (2000 and 2010 Decennial)
A	
  housing	
  market	
  have	
  been	
  more	
  severe	
  than	
  those	
  in	
  most	
  areas	
  of	
  the	
  naBon.	
  The	
  MSA	
  currently	
  ranks	
  49th	
  in	
  the	
  naBon	
  for	
  the	
  share	
  of	
  mortgages	
  at	
  risk	
  
r	
  more	
  days	
  delinquent	
  or	
  in	
  the	
  foreclosure	
  process.	
  During	
  the	
  early	
  part	
  of	
  the	
  last	
  decade,	
  local	
  home	
  prices	
  rose	
  at	
  a	
  pace	
  that	
  was	
  27	
  percent	
  greater	
  
Since	
  that	
  Bme,	
  home	
  prices	
  in	
  Reno	
  have	
  fallen	
  more	
  steeply	
  than	
  in	
  most	
  parts	
  of	
  the	
  country.	
  Falling	
  property	
  vthe	
  decade	
  spanned	
  by	
  tnderwater	
   new	
  housing	
  producBon	
  exceeded	
  household	
  growth	
  in	
  the	
  Reno-­‐Sparks	
  MSA.	
  Net	
  annual	
  housing	
  unit	
  growth	
  of
During	
  alues	
  and	
  the	
  resulBng	
  u he	
  Census,	
  
ueled	
  by	
  investor	
  speculaBon	
  and	
  excess	
  housing	
  construcBon	
  in	
  the	
  years	
  leading	
  up	
  to	
  the	
  housing	
  crisis.	
  Rising	
  he	
  corresponding	
  populaBon	
  and	
  household	
  growth	
  rates	
  of	
  2.4	
  percent.	
  The	
  growth	
  in	
  the	
  Reno	
  housing	
  stock	
  between	
  Census	
  counts	
  indicates	
  an	
  ex
than	
  t defaults	
  as	
  a	
  result	
  of	
  unsustainable	
  
g	
  unemployment	
  during	
  the	
  subsequent	
  recession	
  added	
  further	
  to	
  the	
  decline	
  in	
  property	
  values.	
  Economic	
  condiBons	
  in	
  Reno	
  are	
  stabilizing,	
  but	
  the	
  he	
  steep	
  price	
  declines	
  observed	
  ager	
  2006.	
  Investor	
  speculaBon	
  was	
  likely	
  a	
  major	
  factor	
  in	
  the	
  overbuilding	
  in	
  t
construcBon	
  that	
  may	
  have	
  contributed	
  to	
  tlocal	
  
agile	
  with	
  a	
  high	
  concentraBon	
  of	
  distressed	
  sales,	
  large	
  numbers	
  of	
  vacancies,	
  and	
  49	
  percent	
  of	
  home	
  mortgages	
  underwater.	
  Hhare	
  of	
  Rthe	
  AdministraBon’s	
  
the	
  crisis,	
  as	
  a	
  larger	
  s owever,	
   eno	
  area	
  home	
  purchases	
  were	
  by	
  non-­‐occupant	
  investors	
  than	
  the	
  corresponding	
  share	
  for	
  the	
  naBon.	
  Specifically,	
  from	
  200
U.S. Department of Housingaand Urbanose	
  from	
  11.2	
  to	
  18.8	
  percent	
  of	
  Stcorecard	
   in	
  Reno,	
  while	
  the	
  corresponding	
  increase	
  for	
  the	
  naBon	
  was	
  from	
  7.8	
  to	
  14.6	
  percent	
  of	
  sales.	
  SpeculaBve
e	
  the	
  housing	
  market	
  has	
  been	
  a	
  real	
  help	
  to	
  homeowners	
  in	
  Reno	
  and	
  surrounding	
  ciBes.	
  This	
   ddendum	
  to	
  the	
  Obama	
  AdministraBon’s	
  Housing	
   otal	
  sales	
   Policy Development and Research
sales	
  r Development | Office of
nds	
  and	
  condiBons	
  in	
  the	
  local	
  economy	
  and	
  the	
  impact	
  of	
  the	
  AdministraBon’s	
  efforts	
  to	
  stabilize	
  the	
  housing	
  market	
  and	
  help	
  local	
  ate,	
  which	
  according	
  to	
  the	
  Census	
  Bureau,	
  increased	
  by	
  an	
  average	
  of	
  970	
  units,	
  or	
  8.1	
  percent,	
  annually	
  in	
  Reno	
  during	
  the	
  2000s,
raised	
  the	
  local	
  vacancy	
  r homeowners.	
  
naBonal	
  average	
  increase	
  of	
  4.4	
  percent	
  during	
  the	
  same	
  period.	
  	
  
The Reno-Sparks, NV Metropolitan Statistical Area (Reno) is	
   located in northwestern Nevada and includes two counties: Washoe (including the cities of

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

Reno and Sparks) and Storey. The challenges in the Reno MSA housing market have been more severe than those in most areas of the nation. The MSA
currently ranks 49th in the nation for the share of mortgages at risk of foreclosure - those 90 or more days delinquent or in the foreclosure process. During
the early part of the last decade, local home prices rose at a pace that was 27 percent greater than the national average. Since that time, home prices
	
  
in Reno have fallen more steeply than in most parts of the country. Fallingtabilizing.	
  The	
  local	
  economy	
  experienced	
  robust	
  economic	
  growth	
  prior	
  to	
  the	
  2007	
  recession.	
  From	
  the	
  third	
  fueled f	
  2003	
  through
Reno's	
  economy	
  is	
  s property values and the resulting underwater mortgages were partially quarter	
  o
Employment, and Housing Market:
nonfarm	
   nd	
  Household	
   up n	
   uring	
  
Reno	
  Housing	
   nit	
  Growth	
  Outpaced	
   the years leading G at	
  ato verage	
  annual	
  rate	
  of	
  7,200	
   Rising defaults as a result he	
   econd	
  quarter	
  of	
  2007	
  and	
  conBnued	
  
by investor speculation and excess housingUconstruction in Population	
  paayrolls	
  expanded	
  rowth	
  aDthe housing crisis. jobs,	
  or	
  3.6	
  percent.	
  Job	
  losses	
  began	
  in	
  tof sunsustainable mortgage through	
  th
at	
  ecade
economy	
  
tabilized	
  s
total	
   obs	
  at	
   pproximately	
  
the	
  Past	
  Dan	
  average	
  annual	
   ate	
  of	
  10,400	
   obs,	
  or	
  4.6	
  percent.	
  The	
  
17	
  people	
  according	
  to	
  the	
  most	
  recent	
  Census,	
  the	
  Reno-­‐
lending and rising unemployment during the subsequent recession added rfurther to jthend	
  business	
  services	
  Reno	
  he	
  leisure	
  has	
  shospitality	
  ince	
  then,	
  with	
  dded	
  jjobs	
  in aRenoecovery	
  began,	
  while	
  tjhe	
  floss
decline in property values. Economic conditions since	
  the	
  r are 189,400	
  from	
   ob	
   ou
third	
  quarter	
  of	
  2012.	
  The	
  professional	
  a
and	
  t
and	
  
sectors	
  have	
  a
gest	
  in	
  the	
  naBon.	
  From	
  2000	
  to	
  2010,	
  populaBon	
  growth	
  
stabilizing,2but the alocalFrom	
  
housing Date	
  of	
  Census
market remains fragile with 4/1/00
a onstrucBon	
  sectors	
  o4/1/10his	
  growth.	
  The	
  naBonal	
  unemployment	
   ate	
  peaked	
  i of vacancies, and 49 percent of home
and	
  chigh concentration of distressed sales, large rnumbersn	
  October	
  2009	
  at	
  10.0	
  percent,	
  falling	
  to	
  7.9	
  percent	
  by	
  October	
  2012
ffset	
  t
t	
  an	
  average	
  of	
  8,250	
  people,	
  or	
   .4	
  percent	
   	
  year.	
  
Reno-­‐Sparks	
  Population
342,885
425,417
Reno	
  peaked	
  at	
  1
mortgages underwater. However,	
  	
  	
  Annual	
  Growth	
  Rate	
  
the Administration’s broad approach 3.3	
  pstabilize the011	
  before	
  declining	
  to	
  11.3	
  percent	
  by	
  October	
  2012.	
   to homeowners in Reno and
to ercent	
  in	
  August	
  2 housing market has been a real help
e	
  a	
  year	
  moved	
  into	
  the	
  area,	
  accounBng	
  for	
  68	
  percent	
  of	
  
2.4%
	
   -­‐
s	
  economic	
  condiBons	
  worsened	
  from	
  2008	
  to	
  2010,	
  an	
  
Reno-­‐Sparks	
   Obama
165,187
surrounding cities. This addendum to the Households Administration’s Housing Scorecard provides a summary of trends and conditions in the local economy
	
  133,546
ar	
  moved	
  out	
  of	
  the	
  MSA,	
  slowing	
  populaBon	
  growth.	
  	
  
	
  	
  	
  Annual	
  Growth	
  Rate	
  
-­‐
2.4%
and the impact of the Administration’s efforts tonits
housing market 186,831help local homeowners.
and
Reno-­‐Sparks	
  Housing	
  U stabilize the145,504
	
  	
  	
  Annual	
  Growth	
  Rate	
  

-­‐

2.8%

Source: Census Bureau (2000 and 2010 Decennial)

Population Growth, Employment,
and Housing Market:

130	
  

Reno Housing Unit Growth Outpaced Population and
Household Growth During the Past Decade
125	
  
Date of Census

4/1/2000

4/1/2010

Reno-Sparks Population

342,885

425,417

-

2.4%

133,546

Millions	
  

Thousands	
  

recent Census, the Reno-Sparks MSA is the 116th largest in the
226	
  
221	
  
nation. From 2000 to 2010, population growth was moderate,
216	
  
increasing at an average of 8,250 people, or 2.4 percent a
211	
  
year. From 2000 to 2007, 6,125 people a year moved into the
206	
  
area, accounting for 68 percent of total population growth. As
zing.	
  The	
  local	
  economy	
  experienced	
  robust	
  economic	
  growth	
  prior	
  to	
  the	
  2007	
  recession.	
  From	
  the	
  third	
  quarter	
  of	
  2003	
  through	
  the	
  first	
  quarter	
  of	
  2007,	
  
201	
  
economic conditions worsened from 2008 to 2010, an average
d	
  at	
  an	
  average	
  annual	
  rate	
  of	
  7,200	
  jobs,	
  or	
  3.6	
  percent.	
  Job	
  losses	
  began	
  in	
  the	
  second	
  quarter	
  of	
  2007	
  and	
  conBnued	
  through	
  the	
  third	
  quarter	
  of	
  2010,	
  declining	
  
196	
  
of 260 people a conomy	
  has	
  stabilized	
   of the MSA, slowing population
of	
  10,400	
  jobs,	
  or	
  4.6	
  percent.	
  The	
  Reno	
  eyear moved outsince	
  then,	
  with	
  total	
  jobs	
  at	
  approximately	
  189,400	
  from	
  the	
  fourth	
  quarter	
  of	
  2010	
  through	
  the	
  
professional	
  and	
  business	
  services	
  and	
  the	
  leisure	
  and	
  hospitality	
  sectors	
  have	
  added	
  jobs	
  since	
  the	
  recovery	
  began,	
  while	
  job	
  losses	
  primarily	
  in	
  the	
  government	
  
191	
  
growth. During the decade spanned by the Census, new housing
ffset	
  this	
  growth.	
  The	
  naBonal	
  unemployment	
  rate	
  peaked	
  in	
  October	
  2009	
  at	
  10.0	
  percent,	
  falling	
  to	
  7.9	
  percent	
  by	
  October	
  2012.	
  The	
  unemployment	
  rate	
  for	
  
186	
  
production exceeded household 012.	
  
ent	
  in	
  August	
  2011	
  before	
  declining	
  to	
  11.3	
  percent	
  by	
  October	
  2growth in the Reno-Sparks MSA.
Net annual housing unit growth of 2.8 percent was greater than
the corresponding population and household growth rates of 2.4
Year	
  and	
  Quarter	
  
percent. The growth in the Reno housing stock between Census
Reno	
  MSA	
  
NaBon	
  (right	
  axis)	
  
counts indicates an excess of housing construction that may have
Seasonally	
  Adjusted	
  Data	
  	
  
Source:	
  Bureau	
  of	
  Labor	
  	
  StaBsBcs	
  
contributed to the steep price declines observed after 2006.
	
  
Investor speculation was likely a major factor in the overbuilding
in the years leading up to the crisis, as a larger share of Reno
Unemployment Rates Remain High, But Show Improvement
area home purchases were by non-occupant investors than the
Monthly	
  Unemployment	
  Rate	
  (Percent)	
  
Job Market Conditions Improving for the Nation, Stabilizing in Reno
corresponding share for the nation. Specifically, from 2000 to
Quarterly	
  Nonfarm	
  Employment	
  
	
  
2006 investor home sales rose from 11.2 to 18.8 percent of total
14	
  
140	
  
sales in Reno, while the corresponding increase for the nation
12	
  
was from 7.8 to 14.6 percent of sales. Speculative overbuilding
135	
  
10	
  
8	
  
6	
  
4	
  

165,187

Annual Growth Rate
Reno-Sparks Households
Annual Growth Rate

Year	
  and	
  Quarter	
  

Reno-Sparks Housing Units
Reno	
  MSA	
  

145,504
NaBon	
  (right	
  axis)	
  

onally	
  Adjusted	
  Data	
  	
   Annual Growth Rate
ce:	
  Bureau	
  of	
  Labor	
  	
  StaBsBcs	
  
Source: Census Bureau (2000 and 2010 Decennial)

-

120	
  
115	
  

2	
  
0	
  

2.4%
186,831
2.8%

Reno	
  MSA	
  
	
  

Seasonally	
  Adjusted	
  Data	
  
Source:	
  Bureau	
  of	
  Labor	
  StaBsBcs	
  

Spotlight on Reno-Sparks MSA | Page 1

NaBon	
  

14	
  

140	
  

12	
  
135	
  
130	
  
125	
  
120	
  
115	
  

10	
  
Millions	
  

d	
  by	
  the	
  Census,	
  new	
  housing	
  producBon	
  exceeded	
  household	
  growth	
  in	
  the	
  Reno-­‐Sparks	
  MSA.	
  Net	
  annual	
  housing	
  unit	
  growth	
  of	
  2.8	
  percent	
  was	
  greater	
  
pulaBon	
  and	
  household	
  growth	
  rates	
  of	
  2.4	
  percent.	
  The	
  growth	
  in	
  the	
  Reno	
  housing	
  stock	
  between	
  Census	
  counts	
  indicates	
  an	
  excess	
  of	
  housing	
  
e	
  contributed	
  to	
  the	
  steep	
  price	
  declines	
  observed	
  ager	
  2006.	
  Investor	
  speculaBon	
  was	
  likely	
  a	
  major	
  factor	
  in	
  the	
  overbuilding	
  in	
  the	
  years	
  leading	
  up	
  to	
  
of	
  Reno	
  area	
  home	
  purchases	
  were	
  by	
  non-­‐occupant	
  investors	
  than	
  the	
  corresponding	
  share	
  for	
  the	
  naBon.	
  Specifically,	
  from	
  2000	
  to	
  2006	
  investor	
  home	
  
Job ikely	
  
8	
  percent	
  of	
  total	
  sales	
  in	
  Reno,	
  while	
  the	
  corresponding	
  increase	
  for	
  the	
  naBon	
  was	
  from	
  7.8	
  to	
  14.6	
  percent	
  of	
  sales.	
  SpeculaBve	
  overbuilding	
  lMarket Conditions Improving for the Nation, Stabilizing in Reno
Quarterly	
  Nonfarm	
  Employment	
  
e,	
  which	
  according	
  to	
  the	
  Cpopulation of 425,417 people units,	
  or	
  8.1	
  percent,	
  annually	
  in	
  Reno	
  during	
  the	
  2000s,	
  nearly	
  double	
  the	
  
With a ensus	
  Bureau,	
  increased	
  by	
  an	
  average	
  of	
  970	
   according to the most
of	
  4.4	
  percent	
  during	
  the	
  same	
  period.	
  	
  

8	
  
6	
  
4	
  
2	
  
0	
  

	
  

Sea
Sou

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

U.S. Department of Housing and Urban Housing Market and Policy Development and Research
The Obama Administration’s Efforts to Stabilize the Development | Office ofHelp American Homeowners | November 2012

Housing Market in Reno-Sparks, Nevada

Housing Market in Reno-Sparks, Nevada
	
  to	
  
ut	
  
an	
  a	
  
	
  to	
  
Housing Market in Reno-Sparks, Nevada
ed	
  
ut	
  
likely raised the local vacancy rate, which according to the
ned	
   	
  
an	
  a
nal	
  rate	
  of	
  
Census Bureau, increased by an average of 970 units, or 8.1
ed	
  
	
  to	
  
home	
  
ned	
  
ut	
  
percent, annually in Reno during the 2000s, nearly double the
e	
  p rate	
  
an	
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nal	
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national average increase of 4.4 percent during the same period.
ercent	
  
ed	
  
home	
  
les	
  
ned	
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e	
  price	
  
the	
  
ercent	
  
nal	
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Reno’s economy is stabilizing. The local economy
re	
  down	
  
les	
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home	
  
of	
  decline	
  
experienced robust economic growth prior to the 2007 recession.
the	
  
e	
  price	
  
peak-­‐	
  
ercent	
  
re	
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From the third quarter of 2003 through the first quarter of 2007,
e	
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peak-­‐	
  
e	
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re	
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2009.	
  
of	
  decline	
  
2012,	
  
peak-­‐	
  
	
  4.6	
  
e	
  end	
  
2009.	
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previous	
  
2012,	
  

	
  4.6	
  
previous	
  
2009.	
  
	
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previous	
  

ding	
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  LPS	
  
	
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e	
  
ding	
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  LPS	
  
d	
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ages	
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  LPS	
  
	
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ages	
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e	
  
	
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2007	
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e	
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  an	
  
mortgages	
  
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  the	
  
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  products,	
  
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  ose	
  to	
  a	
  
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wth	
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imposing	
   	
  
	
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  currently.	
  
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  the	
  
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operly.	
  
imposing	
  
mortgages	
  
	
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   t urrently.	
  	
  
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g	
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wth	
  fiourth	
  
operly.	
  
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  at	
  451.	
  
	
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operly.	
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ercent	
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nding	
  
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ercent	
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es	
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nding	
  
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es	
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ercent	
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ers'	
   o
view	
  
ending	
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dramaScally	
  
ped	
  45	
  
l	
  process	
  
as	
  i
es	
  of	
  the	
  
ers'	
  n	
  the	
  
enSally	
  a
eview	
  of	
   t	
  
dramaScally	
  

as	
  of	
  the	
  
al	
  process	
  
enSally	
  at	
  
ers'	
  
dramaScally	
  
	
  as	
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enSally	
  at	
  

nonfarm payrolls expanded at an average annual rate of 7,200
jobs, or 3.6 percent. Job losses began in the second quarter of
2007 and continued through the third quarter of 2010, declining
at an average annual rate of 10,400 jobs, or 4.6 percent.
The Reno economy has stabilized since then, with total jobs at
approximately 189,400 from the fourth quarter of 2010 through
the third quarter of 2012. The professional and business services
and the leisure and hospitality sectors have added jobs since the
recovery began, while job losses primarily in the government and
construction sectors offset this growth. The national unemployment
rate peaked in October 2009 at 10.0 percent, falling to 7.9
percent by October 2012. The unemployment rate for Reno
peaked at 13.3 percent in August 2011 before declining to 11.3
percent by October 2012.
Existing home sales in the Reno MSA have improved
since 2008 and new home sales are beginning to
strengthen. Existing home sales peaked in 2004 at 13,000
units, declined to a low of 4,875 by 2008, but recovered to a
rate of 8,175 homes sold by 2011. New home sales peaked
in 2006 at 4,550 units, began a steep downward trend in
2007, and have been at historically low levels since 2009,
although annualized average sales through September 2012
indicate sales are beginning to strengthen. Sales of bank-owned
properties and short sales remain high at 43 percent of existing
home sales - nearly double the national rate of 23 percent. The
prevalence of distressed sales in Reno has contributed to the
prolonged weakness in home prices as well as the low levels of
new home construction and sales. The CoreLogic repeat-sales
house price index (HPI) shows that the growth in Reno-Sparks
home prices between 2000 and mid-2006 was 27 percent
greater than the national increase. Investor speculation helped
fuel the rise in house prices - home sales to investors averaged
21 percent between 2003 and 2006 - much greater than the
13 percent share for the nation. Home prices in the area fell
further from their peak in April 2006 – prices in the Reno MSA
were down 44 percent as of May 2009 compared to a national
peak-to-low decline of 31 percent. While the rate of decline
slowed after 2009, home values in Reno continued to fall by
an additional 5 percent from their 2006 peak - although home
values have improved in 2012. House prices for the nation have
risen slightly since the end of the bubble.

Despite weak rent growth, the rental housing market
is doing well with vacancy rates falling since 2009.
According to MPF Research, the Reno apartment vacancy rate
was 4.8 percent in the third quarter of 2012, down from 5.0
percent a year earlier, while the national apartment vacancy
rate declined from 5.1 to 4.6 percent. During the third quarter of
2012, the average rent in Reno increased by 1 percent from the
previous year to $752. National average rent levels increased by
4 percent to $1,086 during the same period.

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

New and Existing Home Sales: Reno Compared to the Nation

16	
  
14	
  
16	
  
12	
  
14	
  
10	
  
16	
  
12	
  
8	
  
14	
  
10	
  
6	
  
12	
  
8	
  
4	
  
10	
  
6	
  
2	
  
8	
  
4	
  
0	
  
6	
  
2	
  

8,000	
  

Annual	
  Home	
  Sales	
  (thousands)	
  	
  

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

2003	
  

2004	
  

2005	
  

2006	
  

2007	
  

2008	
  

4	
  
0	
  
2003	
  
2004	
  
2005	
  
NaSon:	
  ExisSng	
  Sales	
  (right	
  axis)	
  
2	
  

2006	
  
2007	
  
2008	
  
NaSon:	
  New	
  Sales	
  (right	
  axis)	
  

2009	
  

2010	
  

2011	
  

2012	
  

7,000	
  
8,000	
  
6,000	
  
7,000	
  
5,000	
  
8,000	
  
6,000	
  
4,000	
  
7,000	
  
5,000	
  
3,000	
  
6,000	
  
4,000	
  
2,000	
  
5,000	
  
3,000	
  
1,000	
  
4,000	
  
2,000	
  
0	
  
3,000	
  
1,000	
  

2,000	
  
0	
  
2009	
  
2010	
  
Reno	
  MSA:	
  ExisSng	
  Sales	
  2011	
   Reno	
  2012	
   New	
  Sales	
  
MSA:	
  
1,000	
  

0	
  
0	
  
Sources:	
  CoreLogic,	
  HUD/Census	
  xis)	
  
nd	
  NaSonal	
  A ales	
  (right	
  axis)	
  
Home	
  sales	
   xisSng	
  Sales	
  
NaSon:	
  ExisSng	
  Sales	
  (right	
  a	
  Bureau,	
  aNaSon:	
  New	
  SssociaSon	
  of	
  Realtors.	
  Reno	
  MSA:	
  Efor	
  2012	
  are	
  esSmated.	
   MSA:	
  New	
  Sales	
  
Reno	
  
2003	
  
2004	
  
2005	
  
2006	
  
2007	
  
2008	
  
2009	
  
2010	
  
2011	
  
2012	
  
Sources:	
  CoreLogic,	
  HUD/Census	
  	
  Bureau,	
  and	
  NaSonal	
  AssociaSon	
  of	
  Realtors.	
  Home	
  sales	
  for	
  2012	
  are	
  esSmated.	
  
NaSon:	
  ExisSng	
  Sales	
  (right	
  axis)	
  
NaSon:	
  New	
  Sales	
  (right	
  axis)	
  
Reno	
  MSA:	
  ExisSng	
  Sales	
  
Reno	
  MSA:	
  New	
  Sales	
  
Sources:	
  CoreLogic,	
  HUD/Census	
  	
  Bureau,	
  and	
  NaSonal	
  Declinedf	
  Realtors.	
  Home	
  sales	
  for	
  2012	
  are	
  esSmated.	
  
Reno Home Prices AssociaSon	
  o Sharply After Steep Rise

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

Reno Home Prices Declined Sharply After Steep Rise
Repeat-­‐Sales	
  House	
  Price	
  Index	
  	
  (Jan	
  2000	
  =	
  100)	
  

240	
  
220	
  
240	
  
200	
  
220	
  
180	
  
240	
  
200	
  
160	
  
220	
  
180	
  
140	
  
200	
  
160	
  
120	
  
180	
  
140	
  
100	
  
160	
  
120	
  
80	
  
140	
  
100	
  

Reno Home Prices Declined Sharply After Steep Rise
Repeat-­‐Sales	
  House	
  Price	
  Index	
  	
  (Jan	
  2000	
  =	
  100)	
  

120	
  
80	
  
100	
  

Reno	
  MSA	
  

NaSon	
  

Reno	
  MSA	
  

NaSon	
  

Reno	
  MSA	
  

80	
  
Source:	
  CoreLogic.	
  Reno-­‐Sparks	
  MSA	
  HPI	
  

NaSon	
  

Source:	
  CoreLogic.	
  Reno-­‐Sparks	
  MSA	
  HPI	
  

Source:	
  CoreLogic.	
  Reno-­‐Sparks	
  MSA	
  HPI	
  

Rental Vacancy Rates Decline Since 2009, Now Comparable to the Nation
Quarterly	
  Apartment	
  Rental	
  Vacancy	
  Rates	
  (Percent)	
  

12	
  
10	
  
12	
  
8	
  
10	
  
12	
  
6	
  
8	
  
10	
  
4	
  
6	
  
8	
  
2	
  
4	
  
6	
  
0	
  
2	
  
4	
  
0	
  
2	
  

Rental Vacancy Rates Decline Since 2009, Now Comparable to the Nation
Quarterly	
  Apartment	
  Rental	
  Vacancy	
  Rates	
  (Percent)	
  

Rental Vacancy Rates Decline Since 2009, Now Comparable to the Nation
Quarterly	
  Apartment	
  Rental	
  Vacancy	
  Rates	
  (Percent)	
  

Year	
  and	
  Quarter	
  

0	
  

Reno	
  Metro	
  Area	
  Year	
  and	
  Quarter	
  

NaSon	
  

Reno	
  Metro	
  Area	
  
Year	
  and	
  Quarter	
  

NaSon	
  

Reno	
  Metro	
  Area	
  

NaSon	
  

Source:	
  MPF	
  Research	
  
Source:	
  MPF	
  Research	
  

Share
Source:	
  MPF	
  Research	
  of Distressed Mortgages Higher in Reno an Nation
Mortgages	
  90+	
  Days	
  Delinquent	
  (Percent	
  of	
  All	
  AcSve	
  Mortgages)	
  

Share of Distressed Mortgages Higher in Reno an Nation
14	
  
12	
  
14	
  

Mortgages	
  90+	
  Days	
  Delinquent	
  (Percent	
  of	
  All	
  AcSve	
  Mortgages)	
  

Share of Distressed Mortgages Higher in Reno an Nation
Mortgages	
  90+	
  Days	
  Delinquent	
  (Percent	
  of	
  All	
  AcSve	
  Mortgages)	
  

Spotlight on Reno-Sparks MSA | Page 2
10	
  
12	
  

enders’	
  review	
  of	
  
h	
  a	
  judicial	
  process	
  
ge	
  servicers'	
  
s	
  slowed	
  dramaScally	
  
U.S Department of Housing and
derwater	
  as	
  of	
  the	
  
wners	
  potenSally	
  Department of the Treasury
U.S. at	
  

10	
  
8	
  

Urban Development

6	
  
4	
  
2	
  
0	
  

Year	
  and	
  Quarter	
  

U.S. Department of Housing and Urban Housing Market and Policy Development and Research
The Obama Administration’s Efforts to Stabilize the Development | Office ofHelp American Homeowners | November 2012
Reno	
  Metro	
  Area	
  

NaSon	
  

Source:	
  MPF	
  Research	
  

Trends in Mortgage
Delinquencies and Foreclosures:

Reno homeowners continue to struggle with high rates of
mortgage delinquency and foreclosure. According to LPS
Applied Analytics, as of September 2012 Reno placed 49th
out of 366 metropolitan areas ranked by share of mortgages
at risk of foreclosure (90 or more days delinquent or in the
foreclosure process). However, the foreclosure situation is
improving in Reno. LPS data show that mortgages at risk of
foreclosure decreased by 12.9 percent during the last year,
from 6,475 in September 2011 to 5,625 in September 2012,
compared with a national decline of 6.0 percent during the
same period. CoreLogic data since 2000 indicate that the
rate of mortgages at risk of foreclosure in the Reno MSA
had been below the national rate but rose sharply during the
foreclosure crisis. In the first years of the crisis when singlefamily foreclosures were largely associated with unaffordable
loan products, mortgages at risk of foreclosure in Reno rose
from 0.7 percent to 4.7 percent of active mortgages during
2007 and 2008; the comparable rise for the nation was 1.6
to 4.4 percent. Beginning in 2009, more prime loans went
into foreclosure, triggered by loss of income, unemployment,
and high negative equity according to research by the Federal
Reserve Bank of Chicago. During this time, the share of severely
delinquent mortgages in Reno rose to a high of 11.5 percent
in mid-2010, but has since declined to 8.7 percent. The rise in
severely delinquent mortgages was less steep for the rest of the
nation, peaking at 7.9 percent in early 2010 and declining
to 6.3 percent currently. Recent changes to laws affecting the
foreclosure process by the Nevada legislature have slowed the
growth in foreclosures. Effective October 2011, the Nevada law
halted future “robo-signing” efforts in the state by imposing strict
penalties on banks and lenders found committing foreclosure
fraud. As a result, mortgages entering the foreclosure process
have declined sharply as banks and lenders ensure that
foreclosures are handled properly. According to data provided
by the Center for Regional Studies from Ticor Title of Nevada,
Inc., notices of default filed in Washoe County declined from
1,682 in the third quarter of 2011 before the new law passed,
to 56 in the fourth quarter of 2011 after its passage. Notices
of default remain at low levels through the third quarter of
2012 at 451. The new law has also had the effect of extending
the foreclosure timeline. As of the third quarter of 2012 - the
average year-to-year processing time increased by 42 percent
to 520 days. Lenders may foreclosure on a mortgage using a
judicial or non-judicial process in Nevada.
Foreclosure Completion Rates in the Reno-Sparks MSA
Third Quarter 2012
Area
Reno-Sparks
MSA
Nation

Foreclosure
Completions

Foreclosure
Rate

Since April 1, 2009
Foreclosure
Completions

Foreclosure
Rate

240

0.1%

9,640

5.2%

159,600

0.1%

3,066,900

2.3%

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

Share of Distressed Mortgages Higher in Reno an Nation
Mortgages	
  90+	
  Days	
  Delinquent	
  (Percent	
  of	
  All	
  AcSve	
  Mortgages)	
  

14	
  
12	
  
10	
  
8	
  
6	
  
4	
  
2	
  
0	
  

Reno	
  MSA	
  

NaSon	
  

Source:	
  CoreLogic	
  

The new law notwithstanding, the foreclosure completion rate in the Reno MSA
since April 2009 is 5.2 percent of housing units, more than double the national rate
of 2.3 percent. Foreclosure completions have been trending downward nationally
and in the Reno MSA. As of September 2012, completed foreclosures in Reno
dropped 45 percent below the previous quarter and 65 percent below the previous
year, while completed foreclosures in the nation are down 1 percent from the
previous quarter and 18 percent from the previous year. Lenders’ review of internal
procedures related to the foreclosure process and backlogs in the courts for states
with a judicial process also contributed to the decline in foreclosure activity. In the
wake of the February 2012 mortgage servicers’ settlement, foreclosure activity is
starting to pick up again, primarily in states where the process slowed dramatically
in the last two years. CoreLogic reports that 49 percent of mortgages in the Reno
MSA were underwater as of the second quarter of 2012 – compared to 22 percent
nationally – representing additional homeowners potentially at risk.

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

From the launch of the Administration’s assistance programs in April 2009 through
the end of September 2012, nearly 9,700 homeowners received mortgage
assistance in the Reno metropolitan area. Nearly 5,400 interventions were
completed through the Home Affordable Modification Program (HAMP) and
the Federal Housing Administration (FHA) loss mitigation and early delinquency
intervention programs. An estimated additional 4,300 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 Reno MSA is slightly higher than the
number of foreclosures completed during this period (9,600). In addition, it is
estimated that over 10,000 Nevada homeowners are currently benefiting from over
$900 million in refinancing, short sales and completed or trial loan modifications,
including principal reduction on first and second lien mortgages, provided under
the landmark National Mortgage Servicing Settlement. Nationwide, the settlement
has provided more than $26.1 billion in consumer relief benefits to over 300,000
families. That is in addition to the $2.5 billion in payments to participating states
and $1.5 billion in direct payments to borrowers who were foreclosed upon
between 2008 and 2011.
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 Reno housing market.

Spotlight on Reno-Sparks MSA | Page 3

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

Spotlight on the Housing Market in Reno-Sparks, Nevada

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

	
  
From	
  the	
  launch	
  of	
  the	
  AdministraPon’s	
  assistance	
  programs	
  in	
  April	
  2009	
  through	
  the	
  end	
  of	
  September	
  2012,	
  nearly	
  9,700	
  homeowners	
  received	
  mor
	
  
in	
  the	
  Reno	
  metropolitan	
  area.	
  	
  Nearly	
  5,400	
  intervenPons	
  were	
  completed	
  through	
  the	
  Home	
  Affordable	
  ModificaPon	
  Program	
  (HAMP)	
  and	
  the	
  Federa
AdministraPon	
  (FHA)	
  loss	
  miPgaPon	
  and	
  early	
  delinquency	
  intervenPon	
  programs.	
  	
  An	
  esPmated	
  addiPonal	
  4,300	
  proprietary	
  mortgage	
  modificaPons	
  h
through	
  HOPE	
  Now	
  Alliance	
  servicers.	
  While	
  some	
  homeowners	
  may	
  have	
  received	
  help	
  from	
  more	
  than	
  one	
  program,	
  the	
  number	
  of	
  Pmes	
  assistance	
  h
provided	
  in	
  the	
  Reno	
  MSA	
  is	
  slightly	
  higher	
  than	
  the	
  number	
  of	
  foreclosures	
  completed	
  during	
  this	
  period	
  (9,600).	
  In	
  addiPon,	
  it	
  is	
  esPmated	
  that	
  over	
  1
Development | Office from	
  Policy million	
  in	
  refinancing,	
  short	
  sales	
  Researchor	
  trial	
  loan	
  modificaPons,	
  including	
  principal	
  red
homeowners	
  are	
  currently	
  benefiPng	
   of over	
  $900	
   Development and and	
  completed	
  
and	
  second	
  lien	
  mortgages,	
  provided	
  under	
  the	
  landmark	
  NaPonal	
  Mortgage	
  Servicing	
  SeVlement.	
  	
  NaPonwide,	
  the	
  seVlement	
  has	
  provided	
  more	
  than
consumer	
  relief	
  benefits	
  to	
  over	
  300,000	
  families.	
  	
  That	
  is	
  in	
  addiPon	
  to	
  the	
  $2.5	
  billion	
  in	
  payments	
  to	
  parPcipaPng	
  states	
  and	
  $1.5	
  billion	
  in	
  direct	
  paym
borrowers	
  who	
  were	
  foreclosed	
  upon	
  between	
  2008	
  and	
  2011.	
  
	
  

U.S. Department of Housing and Urban
The Obama Administration’s Efforts to Stabilize the Housing Market and Help American Homeowners | November 2012
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.
NSP1 funds were granted to all states and selected local
governments on a formula basis under Division B, Title III of
the Housing and Economic Recovery Act (HERA) of 2008;
NSP2 funds authorized under the American Recovery and
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
Consumer Protection Act of 2010 provided neighborhood
stabilization grants to all states and select governments on a
formula basis.
In addition to stabilizing neighborhoods and providing
affordable housing, NSP funds have helped save jobs. Each
home purchased, rehabilitated and sold through the NSP
program is the result of the efforts of 35 to 50 local employees.
Overall, a total of $29.9 million has been awarded to 3
NSP grantees in the Reno MSA. The City of Reno received
$4,818,796 as a sub-award from the State of Nevada’s NSP1
allocation. The Reno Housing Authority received an NSP2
award of $20,995,000. Under NSP3, the City of Reno and
Washoe County received a total of $3,709,642. Washoe
County also received an NSP3 sub-award from the State of
Nevada for $400,000. Approximately 227 households have
already benefited from NSP, and activities funded by the
program are expected to provide assistance to an additional
109 owner-occupied and renter households. Examples of how
these funds have been put to use are provided below.
• 	 The City of Reno received $3,199,941 in NSP1 funds
from the state of Nevada to acquire and rehabilitate
abandoned or foreclosed homes for resale to qualified
households (incomes between 81 and 120 percent of the
area median income or AMI). The City received another
$1,378,429 from the State to acquire, rehabilitate, and
operate a long-term rental project for households with
incomes at or below 50 percent of AMI. These funds were
then passed through to the City of Reno Housing Authority
to carry out the activities. A total of 24 households have
already purchased rehabilitated homes and another 11
households are currently renting NSP homes managed by
the Reno Housing Authority. The average NSP investment
is $130,811 per home. A total of $793,882 has been
generated from the sale of the NSP homes and will be
used to fund additional projects.
• 	 Reno Housing Authority’ (RHA) NSP2 program
s
has met with great success. The Reno Housing Authority
focused on purchasing vacant and foreclosed properties
and rehabilitating them to a high standard by installing
xeriscape (drought-tolerant) landscaping, for example.
The properties are being rented or sold. Families with
incomes under 50 percent of adjusted median income
(AMI) qualify for rental properties, and families with
incomes between 51 percent and 120 percent of AMI

Mortgage Aid Provided Nearly 9,700 Times to Mitigate Rising Foreclosures
Reno	
  MSA:	
  CumulaPve	
  Offers	
  of	
  Aid	
  by	
  Source	
  Compared	
  with	
  Foreclosures	
  Since	
  April	
  1,	
  2009	
  	
  (Thousands)	
  
	
  	
  	
  	
  	
  Mortgage	
  Aid	
  Extended	
  in	
  Reno	
  MSA	
  from	
  April	
  2009	
  through	
  September	
  2012:	
  9,700	
  
	
  	
  	
  	
  	
  Foreclosure	
  ComplePons	
  Over	
  Same	
  Period:	
  9,600	
  	
  

12	
  
10	
  
8	
  
6	
  
4	
  
2	
  
0	
  

FHA	
  Loss	
  MiPgaPon	
  

HAMP	
  Permanent	
  ModificaPons	
  

EsPmated	
  Hope	
  Now	
  ModificaPons	
  

Foreclosure	
  ComplePons	
  

Note:	
  Data	
  on	
  HOPE	
  Now	
  proprietary	
  mortgage	
  modificaPons	
  are	
  not	
  available	
  at	
  the	
  metropolitan	
  area	
  level.	
  However,	
  HOPE	
  	
  
Now	
  Alliance	
  reports	
  38,500	
  non-­‐HAMP	
  modificaPons	
  since	
  April	
  1,	
  2009	
  in	
  Nevada	
  of	
  which	
  11	
  percent	
  are	
  esPmated	
  by	
  HUD	
  
to	
  have	
  occurred	
  in	
  the	
  Reno	
  MSA.	
  This	
  chart	
  excludes	
  HAMP	
  trial	
  modificaPons	
  not	
  made	
  permanent.	
  
Sources:	
  Departments	
  of	
  HUD	
  and	
  Treasury,	
  HOPE	
  Now	
  Alliance,	
  and	
  Realty	
  Trac.	
  

	
  

Reno MSA NSP Activity (Housing Units)
NSP1 Total
Homeownership assistance to low-and moderate income

Projected Completed

107

108

32

42

	
  	
  
Rehabilitation/reconstruction of residential structures
75 •	
  The	
  City	
  of	
  Reno	
  received	
  $3,19
66
Together,	
  the	
  AdministraPon’s	
  Neighborhood	
  StabilizaPon	
  Program	
  (NSP)	
  and	
  Hardest	
  Hit	
  Fund	
  programs,	
  as	
  
abandoned	
  or	
  foreclosed	
  homes	
  f
well	
  aNSP2rovisions	
  of	
  the	
  mortgage	
  servicing	
  seVlement,	
  are	
  helping	
  to	
  stabilize	
  the	
  Reno	
  housing	
  market.	
   200 of	
  the	
  area	
  median	
  income	
  or	
  AM
s	
  the	
  p Total
119
	
  
rehabilitate,	
  and	
  operate	
  a	
  long-­‐te
Given	
  over	
  tHomeownership assistancetabilizaJon	
  Program	
  has	
  invested	
  $7	
  billion	
  naPonwide	
  to	
  help	
   137 AMI.	
  These	
  funds	
  were	
  then	
  passe
hree	
  rounds,	
  the	
  Neighborhood	
  S to low-and moderate income
33
localiPes	
  work	
  with	
  non-­‐profits	
  and	
  community	
  development	
  corporaPons	
  to	
  turn	
  tens	
  of	
  thousands	
  of	
  
acPviPes.	
  A	
  total	
  of	
  24	
  household
Rehabilitation/reconstruction of residential structures
63 households	
  86 currently	
  renPng	
  N
abandoned	
  and	
  foreclosed	
  homes	
  that	
  lower	
  property	
  values	
  into	
  homeownership	
  opportuniPes	
  and	
  	
  the	
  
are	
  
affordable	
  rental	
  housing	
  that	
  communiPes	
  need.	
  	
  
investment	
  is	
  $130,811	
  per	
  home
NSP3 Total
29 homes	
  and	
  will	
  be	
  used	
  to	
  fund	
  ad
0
	
  
NSP1	
  funds	
  were	
  granted	
  to	
  all	
  states	
  and	
  selected	
  local	
  governments	
  on	
  a	
  formula	
  basis	
  under	
  Division	
  B,	
  Title	
  
Clearance and demolition
5 	
  •	
  Reno	
  Housing	
  Authority’s	
  (RHA
0
III	
  of	
  the	
  Housing	
  and	
  Economic	
  Recovery	
  Act	
  (HERA)	
  of	
  2008;	
  NSP2	
  funds	
  authorized	
  under	
  the	
  American	
  
Recovery	
  and	
  Reinvestment	
  Act	
  newRhousing ct)	
  of	
  2009	
  provided	
  grants	
  to	
  states,	
  local	
  governments,	
  
Construction of (the	
   ecovery	
  A
14 focused	
  on	
  purchasing	
  vacant	
  and
0
nonprofits	
  and	
  a	
  consorPum	
  of	
  nonprofit	
  enPPes	
  on	
  a	
  compePPve	
  basis;	
  and	
  NSP3	
  funds	
  authorized	
  under	
  the	
  
installing	
  xeriscape	
  (drought-­‐toler
Dodd–Frank	
  Wall	
  Street	
  Reform	
  and	
  Consumer	
  ProtecPon	
  Act	
  of	
  2010	
  provided	
  neighborhood	
  stabilizaPon	
  
ncomes	
  under	
  50	
  p
Rehabilitation/reconstruction of residential structures
10 Families	
  with	
  i0
grants	
  to	
  all	
  states	
  and	
  select	
  governments	
  on	
  a	
  formula	
  basis.	
  
and	
  families	
  with	
  incomes	
  betwee
	
  
program	
  o than
Notes: The number of households assisted under NSP1 exceeds the grantee’s projection, as costs were lower r	
  a	
  sale	
  program.	
  To	
  da
In	
  addiPon	
  to	
  stabilizing	
  neighborhoods	
  and	
  providing	
  aassisted. housing,	
  NSP	
  funds	
  have	
  helped	
  save	
  jobs.	
  Each	
  
anticipated allowing more households to be ffordable	
   Rehabilitated units that were completed under been	
  set	
  aside	
  as	
  rental	
  units,	
  62	
  o
NSP2 are
home	
  purchased,	
  rprojected because some rentersSP	
  program	
  is	
  the	
  result	
  of	
  the	
  efforts	
  of	
  35	
  to	
  50	
  local	
   and for	
  deventually 2	
  of	
  which	
  have	
  b
higher than ehabilitated	
  and	
  sold	
  through	
  the	
  N of these homes are expected to purchase their unit
will irect	
  sale,	
  3
employees.	
  	
  
program,	
  24	
  of	
  which	
  have	
  been	
  l
be included in the homeownership assistance category.
	
  
rehabilitaPon	
  or	
  are	
  available	
  to	
  b
Overall,	
  a	
  total	
  of	
  $29.9	
  million	
  has	
  been	
  awarded	
  to	
  3	
  NSP	
  grantees	
  in	
  the	
  Reno	
  MSA.	
  The	
  City	
  of	
  Reno	
  received	
  date, RHA all	
  expenditures	
  from	
  
grant,	
  with	
  
qualify for either a lease-to-own program or a sale program. To
$4,818,796	
  as	
  a	
  sub-­‐award	
  from	
  the	
  State	
  of	
  Nevada’s	
  NSP1	
  allocaPon.	
  	
  The	
  Reno	
  Housing	
  Authority	
  received	
  an	
  
	
  
has purchased 140 homes. Sixty-three of these properties have
NSP2	
  award	
  of	
  $20,995,000.	
  Under	
  NSP3,	
  the	
  City	
  of	
  Reno	
  and	
  Washoe	
  County	
  received	
  a	
  total	
  of	
  $3,709,642.	
   been set
	
  	
  
Washoe	
  County	
  also	
  received	
  an	
  NSP3	
  sub-­‐award	
  from	
  the	
  State	
  of	
  Nevada	
  for	
  $400,000.	
  Approximately	
  227	
  
	
  
aside as rental units, 62 of which are occupied. Forty-five of these properties
households	
  have	
  already	
  benefited	
  from	
  NSP,	
  and	
  acPviPes	
  funded	
  by	
  the	
  program	
  are	
  expected	
  to	
  provide	
  
	
  
have been set aside for direct sale, 32 of which have been sold. 	
  
assistance	
  to	
  an	
  addiPonal	
  109	
  owner-­‐occupied	
  and	
  renter	
  households.	
  	
  Examples	
  of	
  how	
  these	
  funds	
  have	
  been	
   Thirty-two
put	
  to	
  use	
  are	
  provided	
  below.	
  	
  
	
  
of the 140 homes are part of the lease-to-own program, 24 of which have
	
  	
  
	
  
been leased with one sold. Those not yet occupied are either undergoing
	
  
	
  	
  
	
  
	
  
rehabilitation or are available to be rented, sold, or leased. RHA has
	
  
	
  
expended 100 percent of the NSP2 grant, with all expenditures from the
	
  
	
  
	
  
	
  
grant required by February 2013.
	
  
	
  
	
  
	
  
	
  
	
  
The Nevada Affordable Housing Assistance Corporation (NAHAC) oversees the

Projected
Nevada Hardest Hit Fund®, which was launched inCompleted
February 2011 and funded
107
108
through a $194 million allocation from the Administration’s 42
Hardest Hit Fund
32
75
66
program. NAHAC was selected to oversee the ‘Fund’ serving as a support arm
200
119
for the Nevada Housing Division, Nevada’s Housing Finance Agency. Nevada
137
33
63
86
Hardest Hit Fund provides several programs to assist Nevada homeowners
29
0
who are at high risk of default or foreclosure. These5 programs include: Principal
0
14
0
Reduction Program, Second Mortgage Reduction Plan, Short-Sale Acceleration
10
0
Program, and Mortgage Assistance Program (unemployment and reinstatement
Notes:	
  Tassistance). Nevada provides the	
  grantee's	
  projection,	
  of osts	
  were	
  lower	
  than	
  
he	
  number	
  of	
  households	
  assisted	
  under	
  NSP1	
  exceeds	
   nine months as	
  c unemployment assistance to qualified
anticipated	
  allowing	
  more	
  households	
  to	
  be	
  assisted.	
  Rehabilitated	
  units	
  that	
  were	
  completed	
  under	
  NSP2	
  are	
  higher	
  than	
  
borrowers; they also provide up to their	
  unit	
  and	
  will	
   for the included	
  in	
  the	
  
projected	
  because	
  some	
  renters	
  of	
  these	
  homes	
  are	
  expected	
  to	
  purchase	
  $16,500 eventually	
  be	
  removal of 2nd liens, and
homeownership	
  assistance	
  category.	
  
$50,000 for unmatched principal curtailment in conjunction with a HARP loan
refinance. The number of homeowners benefitting from the program has continued
to increase due to strong demand, and the state expects to commit all of their funds
on behalf of families in the near term – well before the program end date of 2017.
For more information see: http://nevadahardesthitfund.nv.gov.
Reno	
  MSA	
  NSP	
  Activity	
  (Housing	
  Units)
NSP1	
  Total
	
  	
  	
  Homeownership	
  assistance	
  to	
  low-­‐and	
  moderate	
  income
	
  	
  	
  Rehabilitation/reconstruction	
  of	
  residential	
  structures
NSP2	
  Total
	
  	
  	
  Homeownership	
  assistance	
  to	
  low-­‐and	
  moderate	
  income
	
  	
  	
  Rehabilitation/reconstruction	
  of	
  residential	
  structures
NSP3	
  Total
	
  	
  	
  Clearance	
  and	
  demolition
	
  	
  	
  Construction	
  of	
  new	
  housing
	
  	
  	
  Rehabilitation/reconstruction	
  of	
  residential	
  structures

Spotlight on Reno-Sparks MSA | Page 4


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