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Spotlight on the Housing Market in Cincinnati-Middletown, Ohio-Kent

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

The Obama Administration's Efforts to Stabilize the Housing Market and Help American Homeowners
The	
  Cincinna9-­‐Middletown	
  OH-­‐KY-­‐IN	
  Metropolitan	
  Sta9s9cal	
  Area	
  (Cincinna9)	
  is	
  located	
  along	
  the	
  Ohio	
  River	
  and	
  includes	
  15	
  coun9es	
  in	
  3	
  sta
Cincinna9)	
  and	
  four	
  other	
  Ohio	
  coun9es;	
  six	
  coun9es	
  in	
  Kentucky;	
  and	
  three	
  coun9es	
  in	
  Indiana.	
  The	
  challenges	
  in	
  the	
  Cincinna9	
  housing	
  mark
of	
  the	
  na9on.	
  	
  The	
  foreclosure	
  crisis	
  in	
  Cincinna9,	
  as	
  in	
  other	
  parts	
  of	
  the	
  Midwest,	
  developed	
  much	
  earlier	
  than	
  in	
  other	
  parts	
  of	
  the	
  country.	
  
rose	
  above	
  the	
  na9onal	
  	
  average	
  -­‐	
  the	
  rise	
  in	
  distressed	
  mortgage	
  shares	
  did	
  not	
  begin	
  un9l	
  2007	
  in	
  most	
  other	
  regions.	
  	
  The	
  Cincinna9	
  MSA	
  di
bubble;	
  yet,	
  local	
  house	
  prices	
  have	
  fallen	
  below	
  their	
  2000	
  levels.	
  	
  Declining	
  property	
  values	
  	
  in	
  Cincinna9	
  were	
  fueled	
  in	
  part	
  by	
  excess	
  housin
crisis,	
  but	
  mainly	
  by	
  rising	
  defaults,	
  driven	
  first	
  by	
  unsustainable	
  mortgages	
  ,	
  then	
  by	
  the	
  economic	
  downturn	
  and	
  climbing	
  unemployment.	
  Eco
improve,	
  but	
  the	
  local	
  housing	
  market	
  remains	
  fragile	
  -­‐	
  with	
  high	
  concentra9ons	
  of	
  distressed	
  mortgages	
  (those	
  90	
  or	
  more	
  days	
  delinquent	
  or
and	
  nearly	
  25	
  percent	
  of	
  home	
  mortgages	
  underwater.	
  However,	
  the	
  Administra9on’s	
  broad	
  approach	
  to	
  stabilize	
  the	
  housing	
  market	
  has	
  bee
surrounding	
  ci9es.	
  This	
  addendum	
  to	
  the	
  Obama	
  Administra9on’s	
  Housing	
  Scorecard	
  provides	
  a	
  summary	
  of	
  trends	
  and	
  condi9ons	
  in	
  the	
  local
efforts	
  to	
  stabilize	
  the	
  housing	
  market	
  and	
  help	
  local	
  homeowners.	
  
	
  

Spotlight on the Housing

Market in Cincinnati-Middletown,
Ohio-Kentucky-Indiana
Population Growth, Employment, and Housing Market:

Spotlight on the Housing Market in Cincinnati-Middletown,

	
  
With	
  2.13	
  million	
  people	
  according	
  to	
  the	
  most	
  recent	
  Census,	
  the	
  Cincinna9	
  MSA	
  is	
  the	
  
27th	
  largest	
  in	
  the	
  na9on.	
  From	
  2000	
  to	
  2010,	
  popula9on	
  growth	
  was	
  slow,	
  increasing	
  
at	
  an	
  average	
  rate	
  of	
  just	
  0.6	
  percent	
  per	
  year.	
  Natural	
  popula9on	
  growth	
  (births	
  minus	
  
deaths)	
  accounted	
  for	
  nearly	
  all	
  of	
  that	
  increase,	
  as	
  an	
  average	
  of	
  only	
  350	
  more	
  people	
  
moved	
  into	
  the	
  Cincinna9	
  MSA	
  each	
  year	
  than	
  moved	
  out.	
  In	
  Hamilton	
  County,	
  the	
  
popula9on	
  declined	
  by	
  an	
  average	
  of	
  4,300	
  people,	
  or	
  0.5	
  percent,	
  annually.	
  	
  
	
  
Ohio-Kentucky-Indiana

Cincinnati	
  Housing	
  Unit	
  Growth	
  Outpaced	
  Pop
During	
  the	
  Past	
  De

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

4/1/00
2,009,66
-­‐
779,226
-­‐
833,067
-­‐

Source: Census Bureau (2000 and 2010 Decennial)
The Obama Administration's Efforts to Stabilize the Housing Market and Help American Homeowners - May 2012
inna9-­‐Middletown	
  OH-­‐KY-­‐IN	
  Metropolitan	
  Sta9s9cal	
  Area	
  (Cincinna9)	
  is	
  located	
  along	
  the	
  Ohio	
  River	
  and	
  includes	
  15	
  coun9es	
  in	
  3	
  states:	
  Hamilton	
  in	
  southwestern	
  Ohio	
  (includes	
  City	
  of	
  
U.S.
Department
ofin	
  IHousing
and Urban
Development
| bOffice
Policy
Development
and Research
a9)	
  and	
  four	
  other	
  Ohio	
  coun9es;	
  six	
  coun9es	
  in	
  
Kentucky;	
  
and	
  three	
  coun9es	
  
ndiana.	
  The	
  challenges	
  
in	
  the	
  Cincinna9	
  
h	
  ousing	
  market	
  have	
  
een	
  more	
  sof
evere	
  
than	
  those	
  
in	
  many	
  areas	
  
the	
  dAecade	
  
spanned	
  
the	
  
Census,	
  
new	
  housing	
  
produc9on	
  exceeded	
  household	
  growth	
  in	
  the	
  Cincinna9	
  MSA;	
  net	
  annual	
  housing	
  uni
a9on.	
  	
  The	
  foreclosure	
  crisis	
  in	
  Cincinna9,	
  as	
  in	
  other	
  parts	
  of	
  the	
  Midwest,	
  developed	
  much	
  earlier	
  than	
  in	
  other	
  parts	
  of	
  tDuring	
  
he	
  country.	
  
s	
  early	
  
as	
  2002,	
  bty	
  he	
  
share	
  
of	
  distressed	
  
mortgages	
  
greater	
  
than	
  
opula9on	
  and	
  
ousehold	
  
rowth	
  rates	
  of	
  0.6	
  and	
  0.7	
  percent,	
  respec9vely.	
  This	
  excess	
  construc9on,	
  while	
  no
ove	
  the	
  na9onal	
  	
  average	
  -­‐	
  the	
  rise	
  in	
  distressed	
  mortgage	
  shares	
  did	
  not	
  begin	
  un9l	
  2007	
  in	
  most	
  other	
  regions.	
  	
  The	
  Cincinna9	
  
MSA	
  
did	
  the	
  
not	
  corresponding	
  
see	
  the	
  rapid	
  appprecia9on	
  
of	
  thhe	
  
house	
  pgrice	
  
evertheless	
  
contributed	
  
an	
  opversupply	
  
f	
  ousing	
  
housing	
  and	
  may	
  have	
  led	
  to	
  steeper	
  price	
  declines	
  aher	
  2006.	
  According	
  to	
  the	
  Census	
  B
yet,	
  local	
  house	
  The
prices	
  Cincinnati-Middletown
have	
  fallen	
  below	
  their	
  2000	
  levels.	
  
	
  Declining	
  Metropolitan
property	
  values	
  	
  in	
  
Cincinna9	
  wArea
ere	
  fueled	
  
in	
  part	
  by	
  ena9on,	
  
xcess	
  
hn
ousing	
  
construc9on	
  
the	
  tyo	
  ears	
  
rior	
  tand
o	
  the	
  oh
OH-KY-IN
Statistical
(Cincinnati)
is located
along
thein	
  Ohio
River
includes
15 counties in 3 states: Hamilton in southwestern
units	
  in	
  Cincinna9	
  increased	
  by	
  an	
  average	
  of	
  3,300,	
  or	
  6.1	
  percent	
  annually	
  during	
  the	
  2000s,	
  higher	
  than	
  the	
  na9onal	
  rate	
  of	
  4.4	
  percent	
  duri
ut	
  mainly	
  by	
  rising	
  defaults,	
  driven	
  first	
  by	
  unsustainable	
  mortgages	
  ,	
  then	
  by	
  the	
  economic	
  downturn	
  and	
  climbing	
  unemployment.	
  Economic	
  condi9ons	
  in	
  Cincinna9	
  are	
  star9ng	
  to	
  
Ohiom(includes
City
of-­‐Cincinnati)
and fourof	
  other
Ohio
counties;
Kentucky;
counties
The challenges
in thehome	
  
Cincinnati
market
have
ome	
  othree
ther	
  mlarge	
  
etro	
  
areas	
  
win
as	
  off	
  Indiana.
ueled	
  
by	
  
nvestor	
  
specula9on,	
  investor	
  
purchases	
  housing
in	
  Cincinna9	
  
represented	
  
a	
  rela9vely	
  sma
,	
  but	
  the	
  local	
  housing	
  
arket	
  remains	
  
fragile	
  
	
  with	
  high	
  concentra9ons	
  
distressed	
  
mortgages	
  
(those	
  six
90	
  ocounties
r	
  more	
  days	
  in
doverbuilding	
  
elinquent	
  
or	
  iin	
  
n	
  sfand
oreclosure),	
  
n
umbers	
  
vacant	
  
hiomes,	
  
years	
  
leading	
  
the	
  
crisis.	
  
owever,	
  subprime	
  
lending	
  
increased	
  significantly	
  in	
  the	
  Cincinna9	
  MSA	
  in	
  that	
  9me,	
  as	
  data	
  prepared	
  by	
  the	
  Cinc
rly	
  25	
  percent	
  of	
  been
home	
  m
ortgages	
  
underwater.	
  
owever,	
  
Administra9on’s	
  
pproach	
  to	
  
stabilize	
  
the	
  housing	
  crisis
market	
  
been	
  ianto	
  
	
  real	
  
help	
  
to	
  
in	
  Cof
incinna9	
  
and	
  
more
severe
thanHthose
inthe	
  many
areas ofbroad	
  
the anation.
The
foreclosure
inhas	
  
Cincinnati,
as
inhHomeowners	
  
other
parts
the
Midwest,
developed
much
earlier
than
innew	
  
other
parts
of in	
  2005	
  recei
number	
  
o
f	
  
s
ubprime	
  
m
ortgages	
  
i
ncreased	
  
f
rom	
  
5
,836	
  
i
n	
  
1
995	
  
t
o	
  
1
5,969	
  
i
n	
  
2
005	
  
a
nd	
  
t
hat	
  
o
ne	
  
i
n	
  
e
very	
  
s
even	
  
l
ocal	
  
b
orrowers	
  
ding	
  ci9es.	
  This	
  addendum	
  to	
  the	
  Obama	
  Administra9on’s	
  Housing	
  Scorecard	
  provides	
  a	
  summary	
  of	
  trends	
  and	
  condi9ons	
  in	
  the	
  local	
  economy	
  and	
  the	
  impact	
  of	
  the	
  Administra9on’s	
  
the country.
Ashelp	
  
early
2002, the share of distressed mortgages rose above 	
  the national average - the rise in distressed mortgage shares did not begin until 2007 in most
o	
  stabilize	
  the	
  housing	
  
market	
  and	
  
local	
  as
homeowners.	
  

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

other regions. The Cincinnati MSA did not see the rapid appreciation of the house price bubble; yet, local house prices have fallen below their 2000 levels. Declining property
values in Cincinnati were fueled in part by excess housing construction in the years prior to the housing crisis, but mainly by rising defaults, driven first by unsustainable
mortgages, then by the economic downturn and climbing unemployment. Economic conditions in Cincinnati are starting to improve, but the local housing market remains
fragile - with high concentrations of distressed mortgages (those 90 or more days
delinquent or in foreclosure), large numbers of vacant homes, and nearly 25 percent
	
  
A	
  modest	
  
economic	
  the
recovery	
  
is	
  underway	
  
in	
  Cincinna?.	
  
The	
  a
local	
  
economy	
  
had	
  homeowners
expanded	
  by	
  an	
  ain
verage	
  
of	
  8,020	
  jobs	
  
per	
  year	
  since	
  the	
  third
ation Growth,
and Housing
Market:
of Employment,
home mortgages
underwater.
However, the Administration’s broad approach
to stabilize
housing
market
has been
real
help to
Cincinnati
and
Cincinnati	
  Housing	
  Unit	
  Growth	
  Outpaced	
  
Population	
  
and	
  Household	
  
job	
  losses	
  
were	
  significant	
  
as	
  a	
  result	
  Gorowth	
  
f	
  the	
  recent	
  recession:	
  during	
  the	
  two	
  year	
  period	
  beginning	
  the	
  first	
  quarter	
  of	
  2008,	
  the	
  region	
  averag
surrounding
cities.
This
addendum
to
the
Obama
Administration’s
Housing
Scorecard
provides
a
summary
of
trends
and
conditions
in
the
local
economy
and
the
impact
of the
During	
  
t
he	
  
P
ast	
  
D
ecade
economy	
  
h
as	
  
m
ade	
  
m
odest	
  
g
ains	
  
i
n	
  
t
he	
  
y
ears	
  
s
ince,	
  
w
ith	
  
a
n	
  
a
verage	
  
o
f	
  
9
,250	
  
j
obs	
  
a
dded	
  
a
nnually,	
  
o
r	
  
0
.9	
  
p
ercent.	
  
T
he	
  
p
rofessional	
  
and	
  busine
3	
  million	
  people	
  according	
  to	
  the	
  most	
  recent	
  Census,	
  the	
  Cincinna9	
  MSA	
  is	
  the	
  
have	
  been	
  the	
  major	
  contributors	
  to	
  job	
  growth	
  during	
  the	
  past	
  2	
  years,	
  increasing	
  jobs	
  by	
  a	
  combined	
  total	
  of	
  13,000	
  per	
  year.	
  Employment	
  d
gest	
  in	
  the	
  na9on.	
  
From	
  2000	
  to	
  2010,	
  pefforts
opula9on	
  
was	
  slow,	
  
ncreasing	
   market and help local homeowners.
Administration’s
togrowth	
  
stabilize
the ihousing
Date	
  of	
  Census
4/1/00
4/1/10
Cincinnati	
  Population
	
  	
  	
  Annual	
  Growth	
  Rate	
  
Cincinnati	
  Households
	
  	
  	
  Annual	
  Growth	
  Rate	
  
Cincinnati	
  Housing	
  Units
	
  	
  	
  Annual	
  Growth	
  Rate	
  

Population Growth, Employment, and
Housing Market:

same	
  period	
  by	
  an	
  average	
  of	
  2,000	
  jobs	
  lost	
  each	
  year.	
  The	
  na9onal	
  unemployment	
  rate	
  peaked	
  in	
  October	
  2009	
  at	
  10.0	
  and	
  fell	
  to	
  8.2	
  percen
2,009,664
2,130,151
has	
  followed	
  a	
  more	
  favorable	
  trend,	
  improving	
  from	
  a	
  high	
  of	
  10.0	
  in	
  March	
  2010	
  to	
  7.5	
  percent	
  in	
  April	
  2012.	
  	
  	
  
-­‐
0.6%
	
  
779,226
830,608
	
  
-­‐
833,067
-­‐

Source: Census Bureau (2000 and 2010 Decennial)

0.7%
917,396
1.0%

Job Market Conditions Improving for Cincinnati and Nation

Thousands	
  

With 2.13 million people according to the most recent Census, the Cincinnati
Quarterly	
  Nonfarm	
  Employment	
  
MSA
is the
27th
largest
the nation.
Fromhousehold	
  
2000 to
2010,
population
he	
  decade	
  spanned	
  
by	
  the	
  
Census,	
  
new	
  
housing	
  in
produc9on	
  
exceeded	
  
growth	
  
in	
  the	
  
Cincinna9	
  MSA;	
  net	
  annual	
  housing	
  unit	
  growth	
  at	
  1.0	
  percent	
  was	
  
han	
  the	
  corresponding	
  
popula9on	
  
and	
  hincreasing
ousehold	
  growth	
  
rates	
  
of	
  0.6	
  and	
  
0.7	
  pof
ercent,	
  
respec9vely.	
  
excess	
  
construc9on,	
  while	
  
not	
  as	
  great	
  as	
  in	
  some	
  parts	
  of	
  the	
  
1,060	
  
growth
was slow,
at an
average
rate
just 0.6
percentThis	
  
per
year.
nevertheless	
  contributed	
  to	
  an	
  oversupply	
  of	
  housing	
  and	
  may	
  have	
  led	
  to	
  steeper	
  price	
  declines	
  aher	
  2006.	
  According	
  to	
  the	
  Census	
  Bureau,	
  the	
  number	
  of	
  vacant	
  
Natural
population
growth
(births
minus
deaths)
accounted
for
nearly
all
of
that
Cincinna9	
  increased	
  by	
  an	
  average	
  of	
  3,300,	
  or	
  6.1	
  percent	
  annually	
  during	
  the	
  2000s,	
  higher	
  than	
  the	
  na9onal	
  rate	
  of	
  4.4	
  percent	
  1,040	
  
during	
  the	
  same	
  period.	
  While	
  
ding	
  in	
  some	
  other	
  
metro	
  areas	
  
as	
  faverage
ueled	
  by	
  investor	
  
specula9on,	
  
investor	
  
home	
  moved
purchases	
  
in	
  Cthe
incinna9	
  
represented	
  a	
  rela9vely	
  small	
  share	
  of	
  total	
  purchases	
  in	
  the	
  
increase,
as wan
of only
350 more
people
into
Cincinnati
ading	
  into	
  the	
  crisis.	
  However,	
  subprime	
  lending	
  increased	
  significantly	
  in	
  the	
  Cincinna9	
  MSA	
  in	
  that	
  9me,	
  as	
  data	
  prepared	
  by	
  the	
  1,020	
  
Cincinna&	
  Enquirer	
  shows	
  that	
  the	
  
MSA each
year
than
moved
In Hamilton
the
population
of	
  subprime	
  mortgages	
  
increased	
  
from	
  
5,836	
  
in	
  1995	
  tout.
o	
  15,969	
  
in	
  2005	
  and	
  County,
that	
  one	
  in	
  
every	
  
seven	
  new	
  ldeclined
ocal	
  borrowers	
  in	
  2005	
  received	
  a	
  subprime	
  loan.	
  
1,000	
  
by an average of 4,300 people, or 0.5 percent, annually.

980	
  

960	
  

940	
  

Date of Census

4/1/2000

4/1/2010

128	
  

Cincinnati Population

2,009,664

2,130,151

126	
  

-

0.6%

779,226

830,608

-

0.7%

Annual Growth Rate
Cincinnati Households
Annual Growth Rate
Year	
  and	
  Quarter	
  

Cincinnati
Housing Units
Cincinna9	
  MSA	
  
Seasonally	
  Adjusted	
  Data	
  
	
  
Annual
Growth
Source:	
  Bureau	
  of	
  Labor	
  	
  Sta9s9cs	
  
	
  

833,067
917,396
Na9on	
  (right	
  axis)	
  

Rate

-

1.0%

124	
  

Millions	
  

134	
  

Cincinnati Housing Unit Growth Outpaced Population and 132	
  
130	
  
Household Growth During the Past Decade

132	
  
130	
  

6	
  
4	
  
2	
  
0	
  

Cincinna9	
  MSA	
  
Seasonally	
  Adjusted	
  Data	
  
Source:	
  Bureau	
  of	
  Labor	
  Sta9s9cs	
  

Source: Census Bureau (2000 and 2010 Decennial)

Spotlight on Cincinnati MSA | Page 1

10	
  

134	
  

980	
  

	
  

12	
  

138	
  
136	
  

During the decade spanned by the Census, new housing production
960	
  
exceeded household growth in the Cincinnati MSA; net annual housing unit
940	
  
growth at 1.0 percent was greater than the corresponding population and
st	
  economic	
  recovery	
  
is	
  underway	
  
in	
  Cincinna?.	
  
local	
  
economy	
  
had	
  expanded	
  
by	
  an	
  average	
  
of	
  8excess
,020	
  jobs	
  per	
  year	
  since	
  the	
  third	
  quarter	
  of	
  2003,	
  represen9ng	
  a	
  0.8	
  percent	
  pace	
  of	
  growth.	
  	
  But	
  
household
growth
rates ofThe	
  
0.6
and
0.7 percent,
respectively.
This
es	
  were	
  significant	
  as	
  a	
  result	
  of	
  the	
  recent	
  recession:	
  during	
  the	
  two	
  year	
  period	
  beginning	
  the	
  first	
  quarter	
  of	
  2008,	
  the	
  region	
  averaged	
  35,900	
  jobs	
  lost,	
  or	
  a	
  3.4	
  percent	
  annual	
  decline.	
  The	
  local	
  
construction,
notwas
as in
parts
ofathe
nation,
y	
  has	
  made	
  modest	
  
gains	
  in	
  the	
  ywhile
ears	
  since,	
  
ith	
  great
an	
  average	
  
of	
  9some
,250	
  jobs	
  
added	
  
nnually,	
  
or	
  0.9	
  nevertheless
percent.	
  The	
  professional	
  and	
  business	
  services,	
  leisure	
  and	
  hospitality,	
  and	
  manufacturing	
  sectors	
  
Year	
  
Quarter	
  
en	
  the	
  major	
  contributors	
  
to	
  job	
  
during	
  the	
  past	
  
	
  years,	
  increasing	
  
jobs	
  bhave
y	
  a	
  combined	
  
otal	
  of	
  13,000	
  
per	
  year.	
  Employment	
  declines,	
  mainly	
  in	
  the	
  government,	
  offset	
  
job	
  agnd	
  
ains	
  
during	
  this	
  
contributed
togrowth	
  
an oversupply
of2housing
and may
led totsteeper
price
riod	
  by	
  an	
  average	
  of	
  2,000	
  jobs	
  lost	
  each	
  year.	
  The	
  na9onal	
  unemployment	
  rate	
  peaked	
  in	
  October	
  2009	
  at	
  10.0	
  and	
  fell	
  to	
  8.2	
  percent	
  by	
  May	
  2012.	
  The	
  uCincinna9	
  
nemployment	
  
MSA	
   rate	
  for	
  the	
  Cincinna9	
  MSA	
  
Na9on	
  (right	
  axis)	
  
declines
after
2006.
According
toin	
  the
Census
Bureau,
thein	
  number
of	
  	
   vacant
wed	
  a	
  more	
  favorable	
  
trend,	
  
improving	
  
from	
  
a	
  high	
  of	
  10.0	
  
March	
  
2010	
  to	
  
7.5	
  percent	
  
April	
  2012.	
  
Seasonally	
  Adjusted	
  Data	
  	
  
Source:	
  Bureau	
  of	
  Labor	
  	
  Sta9s9cs	
  
units in Cincinnati increased by an average of 3,300, or 6.1 percent annually
	
  
during the 2000s, higher than the national rate of 4.4 percent during the same
period. While overbuilding in some other metro areas was fueled by investor
Unemployment Rate Remains High,
speculation, investor home purchases in Cincinnati represented a relatively
Job Market Conditions Improving for Cincinnati and Nation
But Shows Improvement
small share of total
purchases
in
the
years
leading
into
the
crisis.
However,
Quarterly	
  Nonfarm	
  Employment	
  
Monthly	
  Unemployment	
  Rate	
  (Percent)	
  
subprime lending increased significantly in the Cincinnati MSA in that time, as
12	
  
	
  
060	
  
140	
  
data prepared by the Cincinnati Enquirer shows that the number of subprime
138	
  
10	
  
mortgages increased from 5,836 in 1995 to 15,969 in 2005 and that one
040	
  
136	
  
in every seven new local borrowers in 2005 received a subprime loan.
8	
  
020	
  

000	
  

140	
  

Na9on	
  

128	
  
126	
  
124	
  

8	
  
Millions	
  

erage	
  rate	
  of	
  just	
  0.6	
  percent	
  per	
  year.	
  Natural	
  popula9on	
  growth	
  (births	
  minus	
  
accounted	
  for	
  nearly	
  all	
  of	
  that	
  increase,	
  as	
  an	
  average	
  of	
  only	
  350	
  more	
  people	
  
nto	
  the	
  Cincinna9	
  MSA	
  each	
  year	
  than	
  moved	
  out.	
  In	
  Hamilton	
  County,	
  the	
  
on	
  declined	
  by	
  an	
  average	
  of	
  4,300	
  people,	
  or	
  0.5	
  percent,	
  annually.	
  	
  

6	
  
4	
  
2	
  
0	
  

	
  

Seaso
Sourc

nal	
  pace	
  between	
  2000	
  and	
  mid-­‐2006.	
  From	
  their	
  peak	
  in	
  2006	
  to	
  the	
  end	
  
009,	
  home	
  prices	
  fell	
  by	
  18	
  percent	
  in	
  CincinnaO,	
  approximately	
  half	
  the	
  
e	
  of	
  31	
  percent.	
  	
  The	
  net	
  effect	
  for	
  CincinnaO	
  has	
  current	
  home	
  prices	
  
	
  2000,	
  compared	
  
to	
  current	
  prices	
  of
where	
  
they	
  were	
  aand
t	
  the	
  bUrban
eginning	
  of	
  
U.S Department
Housing
Development
eat-­‐sales	
  HPI	
  that	
  excludes	
  distressed	
  sales	
  shows	
  that	
  CincinnaO	
  house	
  
U.S.
Department
of
the
Treasury
3	
  levels	
  without	
  these	
  discounted	
  sales.	
  	
  

35	
  

7,000	
  

30	
  

6,000	
  

25	
  

5,000	
  

20	
  

4,000	
  

15	
  

3,000	
  

	
  has	
  improved	
  since	
  2010.	
  Rental	
  vacancy	
  rates	
  in	
  CincinnaO	
  have	
  
e	
  naOon	
  since	
  the	
  la^er	
  part	
  of	
  2008.	
  According	
  to	
  Reis	
  Inc.,	
  the	
  overall	
  
	
  was	
  4.9	
  percent	
  in	
  the	
  first	
  quarter	
  of	
  2012,	
  down	
  from	
  6.4	
  percent	
  a	
  
e	
  in	
  the	
  naOonal	
  average	
  from	
  6.2	
  to	
  4.9	
  percent.	
  During	
  the	
  first	
  quarter	
  
ncreased	
  by	
  2	
  percent	
  from	
  a	
  year	
  ago	
  to	
  $732.	
  The	
  average	
  rent	
  
ent	
  to	
  $1,070	
  during	
  the	
  same	
  period.	
  	
  	
  	
  

10	
  

2,000	
  

5	
  

1,000	
  

0	
  

0	
  
2003	
  

2004	
  

2005	
  

2006	
  

2007	
  

2008	
  

NaOon:	
  ExisOng	
  Sales	
  (right	
  axis)	
  

2009	
  

2010	
  

2011	
  

NaOon:	
  New	
  Sales	
  (right	
  axis)	
  

CincinnaO	
  Mof
SA:	
  EPolicy
xisOng	
  	
  Sales	
  Development and Research
CincinnaO	
  MSA:	
  New	
  Sales	
  
U.S. Department of
Housing
Urban the
Development
| Office
The Obama Administration’s
Eff
orts to and
Stabilize
Housing Market
and
Help American Homeowners
| May 2012

Spotlighton
onthe
theHousing
HousingMarket
MarketininCincinnati-Middletown,
Cincinnati-Middletown,Ohio-Kentucky-Indiana
Ohio-Kentucky-Indiana
Spotlight

main	
  
low	
  
levels.	
  
ExisOng	
  
home	
  
sales	
  
egan	
  a	
  as	
  teep	
  
steep	
  ddecline	
  
ecline	
  in	
  
in	
  22006	
  
006	
  bbut	
  
ut	
  
ain	
  at	
  alt	
  ow	
  
levels.	
  
	
  E	
  xisOng	
  
home	
  
sales	
  
bb
egan	
  
A
modest
economic
is tunderway
in Cincinnati.
me	
  
sales	
  
also	
  
fell	
  
sharply	
  
from	
  
2006	
  
through	
  
008	
  and	
  
arecovery
nd	
  hhave	
  
ave	
  conOnued	
  
conOnued	
  
e	
  sales	
  
also	
  
fell	
  
sharply	
  
from	
  
2006	
  
through	
  
22008	
  
to	
  o	
  
	
  bank-­‐owned	
  
properOes	
  
and	
  
seconomy
hort	
  
sales	
  
remain	
  
igh	
  
at	
  330	
  0	
  ppercent	
  
ercent	
  
The local
had
expanded
by
bank-­‐owned	
  
properOes	
  
and	
  
short	
  
sales	
  
remain	
  
hhigh	
  
at	
  
oof	
  f	
  an average of 8,020 jobs per
market	
  
and	
  
are	
  
comparable	
  
to	
  
the	
  naOonal	
  
rate	
  oof	
  f	
  229	
  9	
  ppercent.	
  
ercent.	
  TThe	
  
he	
  hhigh	
  
igh	
  
market	
  
and	
  
are	
  
comparable	
  
to	
  
the	
  
rate	
  
year
since
thenaOonal	
  
third
representing a 0.8 percent pace of
–	
  
which	
  
w
ere	
  
sold	
  
deep	
  
discounts	
  
as	
  
cquarter
ontributed	
  tof
to	
  the	
  
t2003,
he	
  conOnued	
  
conOnued	
  
which	
  
wand
ere	
  
sold	
  
at	
  at	
  
deep	
  
discounts	
  
–	
  –h	
  h
as	
  
contributed	
  
o	
  
encies
Foreclosures:
p	
  
t
o	
  
t
he	
  
p
eak	
  
i
n	
  
h
ome	
  
p
rices	
  
i
n	
  
m
id-­‐2006,	
  
a
	
  
r
elaOvely	
  
s
luggish	
  
e
conomy,	
  
growth.
But
job
losses
were
signifi
cant
to	
  the	
  peak	
  in	
  home	
  prices	
  in	
  mid-­‐2006,	
  a	
  relaOvely	
  sluggish	
  economy,	
  as a result of the recent recession:
ousing	
  
supply,	
  
and	
  
distressed	
  
sales	
  
hich	
  
egan	
  rising	
  
rising	
  eearlier	
  
arlier	
  than	
  
than	
  n	
  
in	
  the	
  
the	
  
using	
  
swupply,	
  
and	
  
distressed	
  
sales	
  
-­‐	
  -­‐w	
  w
hich	
  
bfb
egan	
  
during
two
year
period
beginning
the
first quarter of 2008, the
uggle	
  
ith	
  
huch	
  
igh	
  
ortgage	
  
dthe
and	
  
oreclosure	
  
levels.	
  
As	
  of	
  iM
arch	
  
ncreases	
  
lm
ower	
  
than	
  
nelinquency	
  
aOonal	
  
rates.	
  
The	
  
oreLogic	
  
repeat-­‐sales	
  
creases	
  
mm
uch	
  
lower	
  
than	
  
naOonal	
  
rates.	
  
CCoreLogic	
  
epeat-­‐sales	
  
6	
  m
etropolitan	
  
aregion
reas	
  
rianked	
  
bincinnaO-­‐Middletown	
  
y	
  share	
  
of	
  T35,900
mhe	
  
ortgages	
  
ajobs
t	
  SA	
  
rrisk	
  
oas	
  
f	
  foreclosure	
  
(90	
   percent annual decline.
he	
  
r
ise	
  
i
n	
  
h
ome	
  
p
rices	
  
n	
  
t
he	
  
C
M
w
averaged
lost,
or
a
3.4
e	
  losure	
  
rise	
  in	
  phrocess)	
  
ome	
  prices	
  
in	
  the	
  to	
  
CincinnaO-­‐Middletown	
  
M
SA	
  dwata	
  
as	
  also	
  show	
  that	
  
a
ccording	
  
L
PS	
  
A
pplied	
  
A
nalyOcs.	
  
L
PS	
  
nal	
  
pace	
  
between	
  
2000	
  
and	
  
id-­‐2006.	
  
From	
  
their	
  peak	
  
eak	
  in	
  
in	
  22006	
  
006	
  to	
  
to	
  the	
  
the	
  eend	
  
nd	
  
al	
  
pace	
  
bietween	
  
2000	
  
a.1	
  
nd	
  
mm
id-­‐2006.	
  
From	
  
their	
  
The
economy
has
modest
gains
in the years since, with an
eclosure	
  
ncreased	
  
y	
  5blocal
ercent	
  
during	
  
the	
  
past	
  pmade
yaear,	
  
from	
  
16,750	
  
2009,	
  
home	
  
prices	
  
fbell	
  
1p8	
  
percent	
  
in	
  
incinnaO,	
  
pproximately	
  
alf	
  itn	
  
the	
  
09,	
  home	
  
prices	
  
ell	
  
by	
  y	
  
18	
  
pecline	
  
ercent	
  
CC
incinnaO,	
  
pproximately	
  
hhalf	
  
he	
  
ompared	
  
w
ith	
  a	
  	
  average
nfhe	
  
aOonal	
  
dffect	
  
oCf	
  in	
  
2.4	
  
percent	
  
dacuring	
  
the	
  
sannually,
ame	
  
of
9,250
jobs
added
or 0.9 percent. The professional
e	
  
o
f	
  
3
1	
  
p
ercent.	
  
T
n
et	
  
e
f
or	
  
incinnaO	
  
h
as	
  
urrent	
  
h
ome	
  
p
rices	
  
of	
  
31	
  pthe	
  
ercent.	
  
	
  Tf	
  he	
  
net	
  effect	
  
for	
  
CincinnaO	
  
has	
  current	
  
home	
  phrices	
  
w	
  
t
hat	
  
r
ate	
  
o
m
ortgages	
  
a
t	
  
r
isk	
  
o
f	
  
f
oreclosure	
  
i
n	
  
C
incinnaO	
  
ad	
  
b
een	
  
	
  000,	
  
2000,	
  
compared	
  
to	
  
current	
  
prices	
  
here	
  
they	
  wwere	
  
ere	
  at	
  
at	
  the	
  
the	
  bbeginning	
  
eginning	
  oof	
  f	
  
compared	
  
o	
  
current	
  
prices	
  
ww
here	
  
they	
  
business
services,
leisure
and
fore	
  m
id-­‐2008	
  
btand
ut	
  
ose	
  
less	
  
teeply	
  
during	
  
tshe	
  
foreclosure	
  
crisis.	
  hospitality,
In	
  ouse	
  
the	
  first	
   and manufacturing sectors
eat-­‐sales	
  
PI	
  hat	
  
that	
  
erxcludes	
  
dsistressed	
  
sales	
  
hows	
  
that	
  CCincinnaO	
  
incinnaO	
  
at-­‐sales	
  
HH
PI	
  
elxcludes	
  
distressed	
  
sith	
  
ales	
  
shows	
  
that	
  
hhouse	
  
wthere	
  
argely	
  
associated	
  
wmajor
unaffordable	
  
loan	
  products,	
  
3	
  reclosures	
  
l
evels	
  
w
ithout	
  
t
hese	
  
d
iscounted	
  
s
ales.	
  
	
  
have
been
the
contributors
to job growth during the past 2 years,
evels	
  
without	
  
hese	
  discounted	
  
sales.	
  
	
   percent	
  	
  of	
  acOve	
  mortgages	
  
ore	
  
slowly	
  
in	
  CtincinnaO	
  
-­‐	
  from	
  2.5	
  
to	
  3.9	
  
during	
  
increasing
jobs
by raates	
  
combined
total
of 13,000 per year. Employment
r	
  	
  hthe	
  
aOon	
  was	
  
1.6	
  t2o	
  010.	
  
4.4	
  pRercent.	
  
Beginning	
  
in	
  i2n	
  009,	
  
foreclosures	
  
as	
  
inmproved	
  
since	
  
ental	
  
vacancy	
  
CincinnaO	
  
incinnaO	
  
have	
  
ave	
   were	
  
has	
  
i
mproved	
  
s
ince	
  
2
010.	
  
R
ental	
  
v
acancy	
  
r
ates	
  
i
n	
  
C
h
s	
  annd	
  
were	
  
triggered	
  
by	
  p
loss	
  
oomainly
f	
  f	
  i2ncome,	
  
unemployment,	
  
and	
  tnhe	
  
egaOve	
  
equity	
  
declines,
in
theto	
  government,
offset
job gains during this same
e	
  
aOon	
  
since	
  
the	
  
la^er	
  
art	
  
008.	
  
ccording	
  
to	
  RReis	
  
eis	
  Inc.,	
  
Inc.,	
  
verall	
  
naOon	
  
sf	
  ince	
  
the	
  
la^er	
  
part	
  
of	
  
008.	
  
AA
ccording	
  
the	
  ooverall	
  
eserve	
  
hicago.	
  
During	
  
this	
  
O2me,	
  
the	
  
hare	
  doown	
  
f	
  severely	
  
elinquent	
  
	
  was	
  
4o.9	
  
pCercent	
  
the	
  
first	
  
quarter	
  
o
2s012,	
  
from	
  66d
.4	
  
percent	
  
ercent	
  aa	
   	
  
was	
  
4i.9	
  
parly	
  
ercent	
  
iperiod
n	
  in	
  
tahe	
  
fiarst	
  
quarter	
  
oaverage
f	
  rf	
  
2emains	
  
012,	
  
down	
  
from	
  
.4	
  
peverely	
  
by
an
of
2,000
jobs
lost
each
year. The national
cent	
  
n	
  
e
2
010,	
  
nd	
  
ier	
  
d
ipping,	
  
a
t	
  
t
hat	
  
l
evel.	
  
S
e	
  
the	
  
naOonal	
  
average	
  
from	
  
6.2	
  
to	
  
4.9	
  
ercent.	
  DDuring	
  
uring	
  the	
  
the	
  fifirst	
  
rst	
  qquarter	
  
uarter	
  
in	
  in	
  
the	
  
nfaOonal	
  
aaOon,	
  
verage	
  
from	
  
6.2	
  
4.9	
  
pp
ercent.	
  
aOcally	
  
or	
  bty	
  he	
  
pfeaking	
  
t	
  t7o	
  .9	
  
prate
ercent	
  
in	
  eTarly	
  
010,	
  
but	
  
have	
  since	
  
unemployment
peaked
in October
2009 at 10.0 and fell to 8.2
ncreased	
  
pnercent	
  
rom	
  
yaear	
  
ago	
  
to	
  
$732.	
  
he	
  average	
  
a2verage	
  
rent	
  
creased	
  
by	
  2	
  2p	
  ercent	
  
from	
  
a	
  ay	
  ear	
  
ago	
  
to	
  
$732.	
  
The	
  
rent	
  
ent	
  
$1,070	
  
during	
  
the	
  
same	
  
period.	
  
percent
by
May
t	
  to	
  to	
  
$1,070	
  
during	
  
the	
  
same	
  
period.	
  
	
  	
  	
  	
  	
  	
  2012. The unemployment rate for the Cincinnati MSA
osure	
  compleOon	
  
rate	
  followed
since	
  April	
  2a
009	
  
in	
  CincinnaO,	
  
at	
  1.9	
  ptrend,
ercent,	
  is	
  
has
more
favorable
improving from a high of 10.0 in
0	
  percent.	
  Although	
  foreclosure	
  compleOons	
  have	
  been	
  on	
  the	
  decline	
  
percent
in April
2012.
re	
  compleOons	
  hMarch
ave	
  been	
  r2010
elaOvely	
  to
flat	
  7.5
in	
  CincinnaO	
  
during	
  
the	
  same	
  
Ome	
  
s	
  conOnue	
  to	
  affect	
  foreclosure	
  compleOons	
  locally	
  and	
  naOonally.	
  
ortgages	
  in	
  the	
  CincinnaO	
  MSA	
  are	
  currently	
  underwater	
  –	
  compared	
  to	
  23	
  
Home sales in the Cincinnati MSA remain at low levels.
onal	
  homeowners	
  and	
  loans	
  potenOally	
  at	
  risk.	
  	
  	
  

Existing home sales began a steep decline in 2006 but have leveled off
since 2008. New home sales also fell sharply from 2006 through 2008
and have continued a slow decline. Sales of bank-owned properties
enciesand
andForeclosures:
Foreclosures:
ncies
and short sales remain high at 30 percent of existing home sales in the
uggle	
  with	
  high	
  mortgage	
  delinquency	
  
and	
  foreclosure	
  
levels.	
  
s	
  of	
  March	
  
market
are in
lineAAs	
  with
the national rate of 29 percent. The
ggle	
  with	
  high	
  mCincinnati
ortgage	
  delinquency	
  
and	
  and
foreclosure	
  
levels.	
  
of	
  March	
  
6	
  metropolitan	
  areas	
  ranked	
  by	
  share	
  of	
  mortgages	
  at	
  risk	
  of	
  foreclosure	
  (90	
  
	
  metropolitan	
  areas	
  
ranked	
  
by	
  share	
  of	
  of
mortgages	
  
at	
  discounted
risk	
  of	
  foreclosure	
  
(90	
  
high
proportion
deeply
distressed
sales has contributed to
losure	
  process)	
  according	
  to	
  LPS	
  Applied	
  AnalyOcs.	
  LPS	
  data	
  also	
  show	
  
that	
  
osure	
  process)	
  according	
  to	
  LPS	
  Applied	
  AnalyOcs.	
  LPS	
  data	
  also	
  show	
  that	
  
eclosure	
  increased	
  
by	
  5.1	
  percent	
  during	
  
the	
  past	
  yin
ear,	
  
from	
  16,750	
  
in	
  
the
weakness
home
prices.
closure	
  increased	
  
by	
  5continued
.1	
  percent	
  during	
  
the	
  past	
  year,	
  
from	
  16,750	
  
in	
   A relatively sluggish economy,
ompared	
  with	
  a	
  naOonal	
  decline	
  of	
  2.4	
  percent	
  during	
  the	
  same	
  
mpared	
  with	
  a	
  naOonal	
  population
decline	
  of	
  2.4	
  pgrowth,
ercent	
  during	
  
the	
  
same	
   housing supply, and distressed
excess
w	
  that	
  the	
  rate	
  of	
  slow
mortgages	
  at	
  risk	
  of	
  foreclosure	
  
in	
  an
CincinnaO	
  
had	
  been	
  
hat	
  the	
  rate	
  of	
  mortgages	
  at	
  risk	
  of	
  foreclosure	
  in	
  CincinnaO	
  had	
  been	
  
efore	
  mid-­‐2008	
  bsales
ut	
  rose	
  seen
less	
  steeply	
  
during	
  the	
  fin
oreclosure	
  
crisis.	
  
n	
  the	
  nation
first	
  
earlier
the rest
ofIn	
  Ithe
kept Cincinnati home
ore	
  mid-­‐2008	
  but	
  rose	
  less	
  
steeply	
  
during	
  than
the	
  foreclosure	
  
crisis.	
  
the	
  first	
  
reclosures	
  where	
  largely	
  associated	
  with	
  unaffordable	
  loan	
  products,	
  
eclosures	
  where	
  price
largely	
  aincreases
ssociated	
  with	
  
unaffordable	
  
loan	
  
products,	
  
much
lower
than
national
rates. The CoreLogic repeatore	
  slowly	
  in	
  CincinnaO	
  -­‐	
  from	
  2.5	
  to	
  3.9	
  percent	
  	
  of	
  acOve	
  mortgages	
  during	
  
re	
  slowly	
  
in	
  Cin	
  incinnaO	
  
-­‐	
  from	
  
2SA
.5	
  to	
  3.9	
  percent	
  	
  of	
  acOve	
  mortgages	
  during	
  
pletion	
  
ates	
  
the	
  
Cincinnati	
  
r	
  the	
  nRaOon	
  
was	
  
1.6	
  
to	
  4house
.4	
  pM
ercent.	
  
Beginning	
  
in	
  2(HPI)
009,	
  foreclosures	
  
were	
  the rise in home prices in the
price
index
shows wthat
the	
  naOon	
  was	
  1sales
.6	
  to	
  4.4	
  
percent.	
  
Beginning	
  
in	
  2009,	
  
foreclosures	
  
ere	
  
s	
  and	
  were	
  triggered	
  by	
  loss	
  of	
  income,	
  unemployment,	
  and	
  negaOve	
  equity	
  
and	
  
w
ere	
  
t
riggered	
  
b
y	
  
l
oss	
  
o
f	
  
i
ncome,	
  
u
nemployment,	
  
a
nd	
  
n
egaOve	
  
Cincinnati-Middletown
MSA
was
approximately
one-quarter the national
ter	
  2012
Since	
  
April	
  
2009 of	
  severely	
  delinquent	
   equity	
  
eserve	
  
of	
  Chicago.	
  During	
  this	
  
Ome,	
  
the	
  1s,	
  hare	
  
erve	
  of	
  Chicago.	
  During	
  
this	
  Ome,	
  the	
  share	
  of	
  severely	
  delinquent	
  
Foreclosure	
  
cent	
  in	
  early	
  2010,	
  
and	
  
aier	
  
dipping,	
  r2000
emains	
  aand
t	
  that	
  mid-2006.
level.	
  Severely	
  
between
Foreclosure	
  
atepace
Foreclosure	
  
Rate
nt	
  
in	
  early	
  2R010,	
  
and	
  aier	
  
dipping,	
  remains	
  
at	
  that	
  
level.	
  Severely	
   From their peak in 2006 to the end
Completions
aOcally	
  for	
  the	
  naOon,	
  
peaking	
  at	
  7.9	
  percent	
  in	
  early	
  2010,	
  but	
  have	
  since	
  
Ocally	
  for	
  the	
  naOon,	
  
peaking	
  at	
  7.9	
  
percent	
  
in	
  early	
  2in
010,	
  
but	
  have	
  
since	
   home prices fell by 18 percent
of	
  	
  	
  the
price
bubble
March
2009,
0.1%
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  house
	
  	
  	
  	
  	
  	
  	
  	
  17,900	
  
1.9%
0.1%
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  2,693,300	
  approximately
2.0%
in	
  	
  	
  Cincinnati,
half the national average peak-to-low
losure	
  
rate	
  since	
  April	
  2009	
  in	
  CincinnaO,	
  at	
  1.9	
  percent,	
  is	
  
ousing	
  cUompleOon	
  
nits;
sure	
  compleOon	
  decline
rate	
  since	
  of
April	
  
2009	
  
in	
  CincinnaO,	
  
1.9	
  peffect
ercent,	
  for
is	
   Cincinnati is that home prices are
31
percent.
Theat	
  net
0	
  
percent.	
  
osures	
  
since	
  AAlthough	
  
pril	
  2009foreclosure	
  compleOons	
  have	
  been	
  on	
  the	
  decline	
  
percent.	
  
Although	
  
foreclosure	
  compleOons	
  have	
  been	
  on	
  the	
  decline	
  
re	
  compleOons	
  hnow
ave	
  been	
  
relaOvely	
  
flat	
  were
in	
  CincinnaO	
  
during	
  
the	
  same	
  Oof
me	
  
where
they
at
the
beginning
e	
  compleOons	
  have	
  been	
  relaOvely	
  flat	
  in	
  CincinnaO	
  during	
  the	
  same	
  Ome	
   2000. Without distressed sales,
s	
  conOnue	
  to	
  affect	
  foreclosure	
  compleOons	
  locally	
  and	
  naOonally.	
  
conOnue	
  to	
  affect	
  foreclosure	
  chouse
ompleOons	
  
locally	
  would
and	
  naOonally.	
  
prices
at much
ortgages	
  in	
  the	
  CCincinnati
incinnaO	
  MSA	
  are	
  currently	
  
underwater	
  –	
  cbe
ompared	
  
to	
  23	
   higher 2003 levels, as seen in
rtgages	
  
in	
  the	
  CincinnaO	
  
MSA	
  paotenOally	
  
re	
  currently	
  
nderwater	
  
–	
  compared	
  to	
  23	
  
onal	
  homeowners	
  
and	
  loans	
  
at	
  ruisk.	
  
	
  	
  
national
home
prices.
nal	
  homeowners	
  and	
  loans	
  potenOally	
  at	
  risk.	
  	
  	
  
The Cincinnati rental housing market has improved since
2011. According to Reis Inc., the overall apartment vacancy rate in
Cincinnati was 4.9 percent in the first quarter of 2012, down from 6.4
percent a year earlier and similar to the decline in the national vacancy
rates from 6.2 to 4.9 percent. During the first quarter of 2012, average
rents in Cincinnati increased by 2 percent from a year ago to $732. The
average rent nationwide also increased by 2 percent to $1,070 during
the same period.

pletion	
  Rates	
  in	
  the	
  Cincinnati	
  MSA
etion	
  Rates	
  in	
  the	
  Cincinnati	
  MSA

Trends in Mortgage Delinquencies and
Foreclosures:

ter	
  2012
Since	
  April	
  1,	
  2009
er	
  2012
Since	
  April	
  1,	
  2009
Foreclosure	
  
Foreclosure	
  Rate
Foreclosure	
  Rate
Foreclosure	
  
Completions
oreclosure	
  Rate
Foreclosure	
  Rate
0.1%
	
  	
  	
  Completions
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  17,900	
  
1.9%
0.1%
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  2	
  	
  	
  ,693,300	
  
17,900	
  
1.9%
0.1%
2.0%
Cincinnati
homeowners
0.1%
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  2,693,300	
  
2.0% continue to struggle with high mortgage
ousing	
  
Units;
using	
  Usnits;
and foreclosure levels. As of March 2012, Cincinnati
osures	
  
ince	
  April	
  delinquency
2009
ures	
  since	
  April	
  2009

placed
111th 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. LPS data also show that
Cincinnati area mortgages at risk of foreclosure increased by 5.1
percent during the past year, from 16,750 in March 2011 to 17,600
in March 2012, compared with a national decline of 2.4 percent
during the same period. CoreLogic data since 2000 show that the rate
of mortgages at risk of foreclosure in Cincinnati had been consistently
higher than the nations’ before mid-2008, but rose less steeply during the

Sources:	
  CoreLogic,	
  HUD/Census	
  	
  Bureau,	
  and	
  NaOonal	
  AssociaOon	
  of	
  Realtors	
  

Cincinnati Home Prices Decline
New
andExisting
Existing
Home
Sales: Cincinnati
Cincinnati
Compared
to
the Nation
Nation
Although
Did Home
Not
Experience
Run Up Compared
of
Housingto
Bubble
New
and
Sales:
the
Annual	
  
ome	
  
ales	
  
thousands)	
  
Repeat-­‐Sales	
  
House	
  
Price	
  
Index	
  
	
  (Jan	
  2000	
  	
  	
  =	
  100)	
  
Annual	
  
HHome	
  
SSales	
  
((thousands)	
  

220	
  
50	
  
50	
  

10,000	
  
10,000	
  
9,000	
  
9,000	
  

45	
  
200	
  
45	
  
40	
  
40	
  
180	
  
35	
  
35	
  
160	
  
30	
  
30	
  
25	
  
140	
  
25	
  

8,000	
  
8,000	
  
7,000	
  
7,000	
  
6,000	
  
6,000	
  
5,000	
  
5,000	
  

20	
  
20	
  
120	
  
15	
  
15	
  
100	
  
10	
  
10	
  
80	
  5	
  5	
  

0	
  0	
  

4,000	
  
4,000	
  
3,000	
  
3,000	
  
2,000	
  
2,000	
  
1,000	
  
1,000	
  
2003	
  
2003	
  

2004	
  
2004	
  

2005	
  
2005	
  

2006	
  
2006	
  

2007	
  
2007	
  

2008	
  
2008	
  

NaOon:	
  ExisOng	
  Sales	
  (CincinnaO-­‐Middletown	
  
right	
  axis)	
  
MSA	
  
NaOon:	
  ExisOng	
  Sales	
  (right	
  
axis)	
  
CincinnaO	
  
M
SA:	
  
ExisOng	
  	
  Sales	
  
Source:	
  CoreLogic.	
  
Metro	
  aM
rea	
  
HEPI	
  
CincinnaO	
  
SA:	
  
xisOng	
  	
  Sales	
  
Sources:	
  CoreLogic,	
  HUD/Census	
  	
  Bureau,	
  and	
  NaOonal	
  AssociaOon	
  of	
  Realtors	
  
Sources:	
  CoreLogic,	
  HUD/Census	
  	
  Bureau,	
  and	
  NaOonal	
  AssociaOon	
  of	
  Realtors	
  

2009	
  
2009	
  

2010	
  
2010	
  

2011	
  
2011	
  

0	
  
0	
  

NaOon:	
  
New	
  Sales	
  (right	
  axis)	
  
NaOon	
  
NaOon:	
  
New	
  Sales	
  (right	
  axis)	
  
CincinnaO	
  MSA:	
  New	
  Sales	
  
CincinnaO	
  MSA:	
  New	
  Sales	
  

Distressed Mortgage
SharesHome
Rose Above
National
Cincinnati
Prices Decline
Decline Level in 2002;
Cincinnati
HomeRemain
Prices
Peak and
Current
Shares
Nation
Although
Did Not
Not Experience
Experience
Run Up
UpBelow
of Housing
Housing
Bubble
Although
Did
Run
Bubble
Mortgages	
  90+	
  Days	
  Delinquent	
  (Percent	
  of	
  Aof
ll	
  AcOve	
  Mortgages)	
  
Repeat-­‐Sales	
  HHouse	
  
ouse	
  PPrice	
  
rice	
  IIndex	
  
ndex	
  	
  	
  ((Jan	
  
Jan	
  22000	
  
000	
  ==	
  	
  1100)	
  
00)	
  
Repeat-­‐Sales	
  

9	
  
220	
  
220	
  
8	
  
200	
  
200	
  7	
  

180	
  
180	
  6	
  
160	
  
5	
  
160	
  
4	
  
140	
  
140	
  
3	
  
120	
  
120	
  2	
  
100	
  
100	
  1	
  
0	
  
80	
  
80	
  

Source:	
  CoreLogic	
  
Source:	
  CoreLogic.	
  Metro	
  area	
  HPI	
  
Source:	
  CoreLogic.	
  Metro	
  area	
  HPI	
  

9	
  
9	
  
9	
  
8	
   8	
  
8	
  
7	
  
7	
   7	
  
6	
  
6	
  
5	
  
5	
   6	
  
4	
  
4	
  
3	
   5	
  
3	
  
2	
  
2	
  
1	
   4	
  
1	
  
0	
  
0	
  

CincinnaO	
  MSA	
  
CincinnaO-­‐Middletown	
  
MSA	
  
CincinnaO-­‐Middletown	
  MSA	
  

NaOon	
  
NaOon	
  
NaOon	
  

RentalMortgage
Vacancy Rates
Trend
to the Nation
Distressed
Shares
RoseSimilar
Above National
Level in 2002;
Distressed
Mortgage
Shares
Rose
Above
National
Level in 2002;
Quarterly	
  
Apartment	
  
Rental	
  
Vacancy	
  
Rates	
  
(Percent)	
  
Peak and Current Shares Remain Below Nation
Peak and Current Shares Remain Below Nation
Mortgages	
  90+	
  Days	
  Delinquent	
  (Percent	
  of	
  All	
  AcOve	
  Mortgages)	
  
Mortgages	
  90+	
  Days	
  Delinquent	
  (Percent	
  of	
  All	
  AcOve	
  Mortgages)	
  

Year	
  and	
  Quarter	
  
Source:	
  Reis	
  Inc.	
  
Source:	
  CoreLogic	
  
Source:	
  CoreLogic	
  

CincinnaO	
  Metro	
  Area	
  
CincinnaO	
  MSA	
  
CincinnaO	
  MSA	
  

NaOon	
  
NaOon	
  
NaOon	
  

foreclosure crisis. In the first years of the crisis when single-family foreclosures where largely
Rental Vacancy
Rates Trend
Similar at
to the
Nation
associated with unaffordable
loan products,
mortgages
riskNation
of foreclosure rose more
Rental
Vacancy
RatesRTrend
Similar
to the
Quarterly	
  
Apartment	
  
ental	
  Vacancy	
  
Rates	
  
(Percent)	
  
slowly in Cincinnati - from
2.5 toA3.9
percent
ofVacancy	
  
activeRmortgages
Quarterly	
  
partment	
  
Rental	
  
ates	
  (Percent)	
  during 2007 and 2008.
The comparable
rise for the nation was 1.6 to 4.4 percent. Beginning in 2009, foreclosures
9	
  
9	
  
were increasingly associated with prime loans and were triggered by loss of income,
8	
  
unemployment,
and negative equity according to research by the Federal Reserve Bank of
8	
  
Chicago. During this time, the share of severely delinquent mortgages in Cincinnati rose
7	
  
7	
  
to 5.9 percent
in early 2010, and after dipping, remains at that level. Severely delinquent
6	
  
6	
  
5	
  

5	
  
Spotlight on Cincinnati
MSA | Page 2

metropolitan	
  areas	
  ranked	
  by	
  share	
  of	
  mortgages	
  at	
  risk	
  of	
  foreclosure	
  (90	
  
sure	
  process)	
  according	
  to	
  LPS	
  Applied	
  AnalyOcs.	
  LPS	
  data	
  also	
  show	
  that	
  
losure	
  increased	
  by	
  5.1	
  percent	
  during	
  the	
  past	
  year,	
  from	
  16,750	
  in	
  
mpared	
  wU.S
ith	
  a	
  nDepartment
aOonal	
  decline	
  of	
  2of
.4	
  pHousing
ercent	
  during	
  and
the	
  same	
  
Urban Development
hat	
  the	
  rate	
  of	
  mortgages	
  at	
  risk	
  of	
  foreclosure	
  in	
  CincinnaO	
  had	
  been	
  
U.S.
Department
of
the
Treasury
ore	
  mid-­‐2008	
  but	
  rose	
  less	
  steeply	
  during	
  the	
  foreclosure	
  crisis.	
  In	
  the	
  first	
  
eclosures	
  where	
  largely	
  associated	
  with	
  unaffordable	
  loan	
  products,	
  
re	
  slowly	
  in	
  CincinnaO	
  -­‐	
  from	
  2.5	
  to	
  3.9	
  percent	
  	
  of	
  acOve	
  mortgages	
  during	
  
he	
  naOon	
  was	
  1.6	
  to	
  4.4	
  percent.	
  Beginning	
  in	
  2009,	
  foreclosures	
  were	
  
and	
  were	
  triggered	
  by	
  loss	
  of	
  income,	
  unemployment,	
  and	
  negaOve	
  equity	
  
erve	
  of	
  Chicago.	
  During	
  this	
  Ome,	
  the	
  share	
  of	
  severely	
  delinquent	
  
nt	
  in	
  early	
  2010,	
  and	
  aier	
  dipping,	
  remains	
  at	
  that	
  level.	
  Severely	
  
cally	
  for	
  the	
  naOon,	
  peaking	
  at	
  7.9	
  percent	
  in	
  early	
  2010,	
  but	
  have	
  since	
  

180	
  
160	
  
140	
  
120	
  
100	
  
80	
  

CincinnaO-­‐Middletown	
  
MSA	
  
NaOon	
  
U.S. Department of
Housing
Urban the
Development
| Office of
Policy
Development
and Research
The Obama Administration’s
Eff
orts to and
Stabilize
Housing Market
and
Help
American
Homeowners
| May 2012

sure	
  compleOon	
  rate	
  since	
  April	
  2009	
  in	
  CincinnaO,	
  at	
  1.9	
  percent,	
  is	
  
percent.	
  Although	
  foreclosure	
  compleOons	
  have	
  been	
  on	
  the	
  decline	
  
	
  compleOons	
  have	
  been	
  relaOvely	
  flat	
  in	
  CincinnaO	
  during	
  the	
  same	
  Ome	
  
conOnue	
  to	
  affect	
  foreclosure	
  compleOons	
  locally	
  and	
  naOonally.	
  
tgages	
  in	
  the	
  CincinnaO	
  MSA	
  
are	
  currently	
  uCompleti
nderwater	
  –on
	
  compared	
  
o	
  2the
3	
   Cincinnati MSA
Foreclosure
Ratestin
nal	
  homeowners	
  and	
  loans	
  potenOally	
  at	
  risk.	
  	
  	
  

First Quarter 2012

Area

Foreclosure
Completions

Cincinnati
MSA
Nation

r	
  2012

Distressed Mortgage Shares Rose Above National Level in 2002;
Peak and Current Shares Remain Below Nation

Since April 1, 2009

Foreclosure
Completions

Foreclosure
Rate

1,300

0.1%

17,900

1.9%

185,500

0.1%

2,693,300

2.0%

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

9	
  
8	
  
7	
  
6	
  
5	
  

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

Spotlight on the Housing Market in Cincinnati-Middletown, Ohio-Kentucky-Indiana

4	
  
3	
  

The Administration’s Efforts to Stabilize
the Cincinnati Housing Market:
2	
  

tion	
  Rates	
  in	
  the	
  Cincinnati	
  MSA

oreclosure	
  Rate

Foreclosure
Rate

Source:	
  CoreLogic.	
  Metro	
  area	
  HPI	
  

	
  

1	
  
mortgages rose more dramatically for the nation,	
  Fpeaking
at 7.9
rom	
  the	
  launch	
  
of	
  the	
  AdministraEon’s	
  assistance	
  programs	
  in	
  April	
  2009	
  through	
  the	
  end	
  of	
  March	
  2012,	
  nearly	
  34,000	
  mortgage	
  assistance	
  intervenEons	
  have	
  been	
  
0	
  
to	
  homeowners	
  in	
  the	
  CincinnaE	
  metropolitan	
  
area.	
  	
  Nearly	
  20,000	
  intervenEons	
  were	
  offered	
  through	
  the	
  Home	
  Affordable	
  ModificaEon	
  Program	
  (HAMP)	
  and	
  
April	
  1,	
  2010,
2009
percentSince	
  
in early
but have since declined tooffered	
  
6.6 percent.

the	
  Federal	
  Housing	
  AdministraEon	
  (FHA)	
  loss	
  miEgaEon	
  and	
  early	
  delinquency	
  intervenEon	
  programs.	
  	
  An	
  esEmated	
  addiEonal	
  14,000	
  proprietary	
  mortgage	
  
Foreclosure	
  
Foreclosure	
  Rate
modificaEons	
  have	
  been	
  offered	
  through	
  HOPE	
  Now	
  Alliance	
  servicers.	
  While	
  some	
  homeowners	
  may	
  have	
  received	
  help	
  from	
  more	
  than	
  one	
  program,	
  the	
  number	
  of	
  
Completions
Emes	
  assistance	
  
has	
  been	
  
offered	
  in	
  the	
  Chicago	
  MSA	
  is	
  nearly	
  double	
  the	
  number	
  of	
  foreclosures	
  completed	
  during	
  this	
  period	
  (17,900).	
  	
  In	
  addiEon	
  to	
  offers	
  of	
  
Realty
data indicate
that the foreclosure completion
rate since
April
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Trac
	
  	
  	
  17,900	
  
1.9%
MSA	
  and	
  Hardest	
  Hit	
  Fund	
  have	
  
NaOon	
  
to	
  homeowners,	
  the	
  AdministraEon’s	
  Neighborhood	
  StabilizaEon	
  PCincinnaO	
  
rogram	
  (NSP)	
  
helped	
  to	
  stabilize	
  the	
  Chicago	
  housing	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  2in
,693,300	
  
2.0%
2009
Cincinnati,
at 1.9 percent, is slightly less mortgage	
  
than theaid	
  national
market.	
  
Source:	
  CoreLogic	
  

0.1%
0.1%
using	
  Units;
rate
ures	
  since	
  April	
  2009

of 2.0 percent. Although foreclosure completions
have been on
	
  	
  
the decline nationally over the past year, foreclosure completions have
been relatively flat in Cincinnati during the same time period; however,
lender process reviews continue to affect foreclosure completions locally
and nationally. CoreLogic reports that 25 percent of mortgages in the
Cincinnati MSA are currently underwater – compared to 23 percent
nationally - representing additional homeowners and loans potentially
at risk.

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

Mortgage Aid Extended More an 34,000 Times to
Mitigate Rising Foreclosures

Rental
Similar
the Nation
CincinnaE	
  
MSA:	
  CVacancy
umulaEve	
  Rates
Offers	
  Trend
of	
  Aid	
  by	
  
Source	
  Cto
ompared	
  
with	
  Foreclosure	
  
Quarterly	
  A	
  partment	
  
Rental	
  
Vacancy	
  
Rates	
  (Percent)	
  
Since	
  April	
  
1,	
  2009	
  
	
  (Thousands)	
  
40	
  

9	
  

35	
  
30	
  

	
  	
  	
  	
  	
  Mortgage	
  Aid	
  Offers	
  in	
  CincinnaE	
  MSA	
  from	
  April	
  2009	
  through	
  March	
  2012:	
  34,000	
  
	
  	
  	
  	
  	
  Foreclosure	
  CompleEons	
  Over	
  Same	
  Period:	
  17,900	
  	
  

8	
  

25	
  
20	
  

7	
  

15	
  
10	
  

6	
  

5	
  
0	
  

5	
  
4	
  

FHA	
  Loss	
  MiEgaEon	
  
Hamp	
  ModificaEons	
  
EsEmated	
  Hope	
  Now	
  ModificaEons	
  
Foreclosure	
  CompleEons	
  
From the launch of the Administration’s assistance programs in April
2009 through the end of March 2012, nearly 34,000 mortgage
Note:	
  Data	
  on	
  HOPE	
  Now	
  proprietary	
  mortgage	
  modificaEons	
  
a
re	
  
n
ot	
  
a
vailable	
  
a
t	
  
t
he	
  
m
etropolitan	
  
a
rea	
  
l
evel.	
  
However,	
  HOPE	
  
Year	
   nd	
  Quarter	
  
Now	
  Alliance	
  reports	
  139,300	
  non-­‐HAMP	
  modificaEons	
  since	
  April	
  1,	
  2009	
  in	
  the	
  states	
  of	
  	
  OH,	
  KY,	
  and	
  IN	
  of	
  which	
  10	
  percent	
  
assistance interventions have been offered to homeowners in the
CincinnaO	
  
M
etro	
  
A
rea	
  
NaOon	
  
are	
  esEmated	
  by	
  HUD	
  to	
  have	
  occurred	
  in	
  the	
  CincinnaE	
  MSA.	
  
Cincinnati metropolitan area. Nearly 20,000 interventions were
Sources:	
  
Departments	
  
Source:	
  
Reis	
  Inc.	
  of	
  HUD	
  and	
  Treasury,	
  HOPE	
  Now	
  Alliance,	
  and	
  Realty	
  Trac.	
  
	
  
offered through the Home Affordable Modification Program (HAMP)
and the Federal Housing Administration (FHA) loss mitigation and early
In addition to stabilizing neighborhoods and providing affordable housing, NSP funds have
delinquency intervention programs. An estimated additional 14,000
helped save jobs. Each home purchased, rehabilitated and sold through the NSP program is
proprietary mortgage modifications have been offered through HOPE
the result of the efforts of 35 to 50 local employees.
Now Alliance servicers. While some homeownersGiven	
  
may
have
over	
  
three	
  received
rounds,	
  the	
  Neighborhood	
  StabilizaJon	
  Program	
  has	
  invested	
  $7	
  billion	
  naEonwide	
  to	
  help	
  
	
  
work	
  with	
  non-­‐profits	
  
orporaEons	
  
to	
  turn	
  has
tens	
  obeen
f	
  thousands	
  
of	
  
The	
  City	
  
of	
  Middletown	
  
was	
  
awarded	
  $2.1	
  million	
  under	
  NSP1.
help from more than one program, the number oflocaliEes	
  
times assistance
has and	
  community	
  
Overall,development	
  
a total of c$52.7
million
awarded
to five•	
  blighted	
  
NSP
grantees
in the
Cincinnati
abandoned	
  and	
  foreclosed	
  homes	
  that	
  lower	
  property	
  values	
  into	
  homeownership	
  opportuniEes	
  and	
  	
  the	
  
properEes	
  and	
  to	
  rehabilitate	
  properEes	
  that	
  are	
  funcEo
been offered in the Cincinnati MSA is nearly double
the number
of that	
  communiEes	
  
MSA:need.	
  
the	
   cities of Cincinnati and Middletown, OH; the counties
and
Butler,
OH;
affordable	
  
rental	
  housing	
  
The	
  city	
  hof
as	
  Hamilton
a	
  large	
  vacancy	
  
problem,	
  
with	
  
nearly	
  3000	
  vacant	
  ho
	
   In addition to offers
eliminates	
  led
their	
  by
destabilizing	
  
effect	
  
on	
  neighborhoods.	
  The	
  NSP1	
  
foreclosures completed during this period (17,900).
and one consortium, the Cincinnati-Hamilton County Consortium,
Hamilton
County
NSP1	
  funds	
  were	
  granted	
  to	
  all	
  states	
  and	
  selected	
  local	
  governments	
  on	
  a	
  formula	
  basis	
  under	
  Division	
  B,	
  Title	
  
rehabilitate,	
  and	
  sell	
  properEes	
  that	
  were	
  deterioraEng,	
  vandaliz
of mortgage aid to homeowners, the Administration’s
Neighborhood
andAct	
  
including
Cityuof
Cincinnati,
Housing
III	
  of	
  the	
  Housing	
  and	
  Economic	
  Recovery	
  
(HERA)	
  of	
  2as
008;	
  members
NSP2	
  funds	
  athe
uthorized	
  
nder	
  
the	
  American	
  the Cincinnati
income	
  Metropolitan
families.	
  	
  
and	
  Reinvestment	
  
Act	
  (the	
  RAuthority
ecovery	
  Act)	
  (CMHA),
of	
  2009	
  provided	
  
grants	
  
to	
  states,	
  Support
local	
  governments,	
  
	
  
Stabilization Program (NSP) and Hardest Hit FundRecovery	
  
have helped
to
Local
Initiatives
Corporation (LISC),
and the Model Group. The
nonprofits	
  and	
  a	
  consorEum	
  of	
  nonprofit	
  enEEes	
  on	
  a	
  compeEEve	
  basis;	
  and	
  NSP3	
  funds	
  authorized	
  under	
  the	
  
•	
  The	
  CincinnaJ-­‐Hamilton	
  County	
  ConsorJum	
  has	
  targeted	
  NSP2
stabilize the Cincinnati housing market.
government
jurisdictions
received
a total
of $22.7 million
in NSP1
funds
and $6.0 and	
  a	
  weak	
  housing	
  mar
Dodd–Frank	
  Wall	
  Street	
  Reform	
  and	
  Cfour
onsumer	
  
ProtecEon	
  Act	
  
of	
  2010	
  provided	
  
neighborhood	
  
stabilizaEon	
  
populaEon	
  
growth,	
  
high	
  unemployment,	
  
grants	
  to	
  all	
  states	
  and	
  select	
  governments	
  
on	
  ain
	
  formula	
  
basis.	
  
The	
  fmillion
unds	
  have	
  in
been	
  
used	
  ffunds.
or	
  the	
  acquisiEon,	
  demoliEo
million
NSP3
funds, and the consortium received a total vacancy.	
  
of $24.1
NSP2
	
  
owner-­‐occupied	
  units	
  across	
  seven	
  communiEes.	
  One	
  example	
  o
Given over three rounds, the Neighborhood Stabilization
Approximately
513 hhouseholds
have
benefi
ted from
NSP, and
activities
In	
  addiEon	
  to	
  stabilizing	
  neighborhoods	
  
and	
  providing	
  affordable	
  
ousing,	
  NSP	
  funds	
  
have	
  already
helped	
  save	
  
jobs.	
  Each	
  
rehabilitaEon	
  
of	
  the	
  
Elberon,	
  a	
  funded
landmark	
  aby
partment	
  building	
  in	
  C
Program has invested $7 billion nationwide to help
work and	
  sold	
  
home	
  plocalities
urchased,	
  rehabilitated	
  
the	
  NSP	
  
program	
  
is	
  the	
  result	
  
of	
  the	
  efforts	
  
of	
  35	
  to	
  50	
  lto
ocal	
  
prominence	
  
in	
  the	
  
East	
  Price	
  Hill	
  community.	
  
thethrough	
  
program
are
expected
to provide
assistance
an additional
920
owner-occupied
and Ajer	
  years	
  of	
  negle
employees.	
  	
  to turn tens
in	
  foreclosure.	
  In	
  partnership	
  with	
  the	
  local	
  non-­‐profit	
  Price	
  Hill,	
  t
with non-profits and community development corporations
renter households. Examples of how these funds have beenconjuncEon	
  
put to use
are
below.
	
  
with	
  
low	
  iprovided
ncome	
  housing	
  
tax	
  credits	
  to	
  redesign	
  the	
  h
of thousands of abandoned and foreclosed homesOverall,	
  
that alower
	
  total	
  of	
  property
$52.7	
  million	
  has	
  been	
  awarded	
  to	
  five	
  NSP	
  grantees	
  in	
  the	
  CinncinaE	
  MSA:	
  	
  the	
  ciEes	
  of	
  
affordable	
  senior	
  housing.	
  In	
  another	
  ConsorEum	
  development,	
  k
and	
  M
iddletown,	
  OH;	
  the	
  counEes	
  of	
  Hamilton	
  and	
  Butler,	
  OH;	
  and	
  one	
  consorEum,	
  the	
  CincinnaE-­‐
struggling	
  community	
  was	
  transformed	
  into	
  a	
  desirable	
  neighbor
values into homeownership opportunities and the CincinnaE	
  
affordable
rental
•
The City of Cincinnati and Hamilton County were
awarded a total of $10.5
Hamilton	
  County	
  ConsorEum,	
  led	
  by	
  Hamilton	
  County	
  and	
  including	
  as	
  members	
  the	
  City	
  of	
  CincinnaE,	
  the	
  
member,	
  Model	
  Group,	
  demolished	
  15	
  dilapidated	
  mulE-­‐family	
  b
housing that communities need.
CincinnaE	
  Metropolitan	
  Housing	
  Authority	
  (CMHA),	
  
Local	
  
niEaEves	
  funds.
Support	
  CA
orporaEon	
  
and	
  the	
  
Model	
  has been
two	
  detached	
  
rental	
  
conages	
  for	
  
income	
  
million
in INSP1
portion(LISC),	
  
of these
funds
targeted
towards
tenlow	
  city
andseniors,	
  thirty-­‐five	
  m
Group.	
  	
  The	
  four	
  government	
  jurisdicEons	
  received	
  a	
  total	
  of	
  $22.7	
  million	
  in	
  NSP1	
  funds	
  and	
  $6.0	
  million	
  in	
  
families,	
  and	
  four	
  single-­‐family	
  units	
  for	
  homeowners.	
  In	
  a	
  third	
  C
15 county neighborhoods which were statistically identifi
ed as having the greatest
NSP3	
  funds,	
  and	
  the	
  consorEum	
  received	
  a	
  total	
  of	
  $24.1	
  million	
  in	
  NSP2	
  funds.	
  Approximately	
  513	
  households	
  
Metropolitan	
  Housing	
  Authority	
  (CMHA)	
  put	
  NSP2	
  funds	
  to	
  use	
  b
NSP1 funds were granted to all states and selected
local governments
need.
The
funds
have
theto	
  effect
stabilizing
communities
three
have	
  already	
  benefited	
  from	
  NSP,	
  and	
  acEviEes	
  
funded	
  
by	
  the	
  
program	
  
are	
  ehad
xpected	
  
provide	
  of
assistance	
  
to	
  an	
   these
senior	
  
living	
  facility	
  in	
  through
Mt.	
  Healthy.	
  
Known	
  as	
  the	
  Reserve	
  on	
  Sout
on a formula basis under Division B, Title III of the addiEonal	
  
Housing920	
  
and
owner	
  and	
  renter	
  households.	
  	
  Examples	
  of	
  how	
  these	
  funds	
  have	
  been	
  put	
  to	
  use	
  are	
  provided	
  
rental	
  units	
  for	
  residents	
  55	
  years	
  and	
  older	
  when	
  completed	
  in	
  2
major activities: the purchase and redevelopment of properties
to increase affordable
below.	
  	
  
affected	
  more	
  than	
  100	
  blighted	
  and	
  foreclosed	
  properEes	
  across
Economic Recovery Act (HERA) of 2008; NSP2 funds
authorized
homeownership, the creation of affordable rental housing,
and hazard abatement and
	
  
	
  
under the American Recovery and Reinvestment Act
	
  	
   (the Recovery Act)
nder	
  Naffected
SP3,	
  the	
  City	
  
of	
  CincinnaJ	
  
nd	
  Hamilton	
  County	
  were	
  
demolition of blighted properties. In total, NSP1 funds•	
  Uhave
more
than a621
	
  
and	
  county	
  are	
  using	
  a	
  part	
  of	
  these	
  funds	
  in	
  six	
  local	
  communiEe
of 2009 provided grants to states, local governments,
nonprofits and a
blighted and foreclosed units across this region.
	
  
stabilizaEon	
  acEviEes	
  iniEated	
  under	
  NSP1	
  and	
  NSP2.	
  The	
  city	
  an
consortium of nonprofit entities on a competitive basis;
and NSP3 funds
	
  
profit	
  development	
  organizaEons	
  in	
  this	
  endeavor.	
  	
  
	
  
	
  
authorized under the Dodd–Frank Wall Street Reform
and Consumer
•
The City of Middletown was awarded $2.1 million
under
have
	
  
•	
  Using	
  
NSP1	
  NSP1.
and	
  NSP3	
  The
funds,	
  funds
Hamilton	
  
County	
  is	
  also	
  working	
  w
Protection Act of 2010 provided neighborhood stabilization
grants to
	
  
single-­‐family	
  properties
homes	
  for	
  low	
  
income	
  
been
used
to
demolish
blighted
properties
and
to
rehabilitate
that
arefamilies	
  in	
  targeted	
  commun
Cincinnati	
  MSA	
  NSP	
  Activity	
  (Housing	
  Units)
Projected
Completed
homeowners	
  volunteer	
  their	
  labor	
  in	
  renovaEng	
  the	
  homes,	
  allow
all states and select governments on a formula basis.
NSP1	
  Total
654
477
functionally obsolete and visibly
deteriorating.
The citybenefit	
  
has aa	
  greater	
  
largenumber	
  
vacancy
problem,
of	
  households.	
  
	
  
	
  	
  	
  Clearance	
  and	
  demolition
	
  	
  	
  Construction	
  of	
  new	
  housing
	
  	
  	
  Rehabilitation/reconstruction	
  of	
  residential	
  structures
NSP2	
  Total
	
  	
  	
  Clearance	
  and	
  demolition

513
15
126
127
19

Spotlight on Cincinnati MSA | Page 3

417
13
47
32
15

	
  
	
  
	
  
	
  
	
  

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

U.S. Department of
Housing
Urban the
Development
| Office of
Policy
and Research | May 2012
The Obama Administration’s
Eff
orts to and
Stabilize
Housing Market
and
HelpDevelopment
American Homeowners
with nearly 3,000 vacant housing units; removing blighted properties
eliminates their destabilizing effect on neighborhoods. The NSP1 funds
have also been used to purchase, rehabilitate, and sell properties that were
deteriorating, vandalized, and a source of frequent crime to low income
families.
•

•

•

The Cincinnati-Hamilton County Consortium has targeted NSP2
funds to areas where stagnant population growth, high unemployment, and
a weak housing market have led to high foreclosure and vacancy. The funds
have been used for the acquisition, demolition, and redevelopment of rental
and owner-occupied units across seven communities. One example of the
Consortium’s work is the rehabilitation of the Elberon, a landmark apartment
building in Cincinnati that had once held a place of prominence in the
East Price Hill community. After years of neglect, the building was blighted,
vacant and in foreclosure. In partnership with the local non-profit Price Hill,
the Consortium utilized NSP2 funds in conjunction with low income housing
tax credits to redesign the historic building into 37 units of affordable
senior housing. In another Consortium development, known as “Villas
of the Valley,” a struggling community was transformed into a desirable
neighborhood. In this project, the Consortium member, Model Group,
demolished 15 dilapidated multi-family buildings and replaced them with
42 detached rental cottages for low income seniors, 35 multi-family rental
units for low income families, and four single-family units for homeowners.
In a third Consortium project, the Cincinnati Metropolitan Housing Authority
(CMHA) put NSP2 funds to use by beginning construction on an affordable
senior living facility in Mt. Healthy. Known as the Reserve on South Martin,
the complex will include 60 rental units for residents 55 years and older
when completed in 2012. In total, the NSP2 funds have impacted more
than 100 blighted and foreclosed properties across the region.
Under NSP3, the City of Cincinnati and Hamilton County were
awarded a total of $4.6 million. The city and county are using a part of
these funds in six local communities to continue the implementation of the
stabilization activities initiated under NSP1 and NSP2. The city and county
are collaborating with local non-profit development organizations in this
endeavor.
Using NSP1 and NSP3 funds, Hamilton County is also working with
Habitat for Humanity to rehabilitate single-family homes for low income
families in targeted communities. As part of the program, the future
homeowners volunteer their labor in renovating the homes, allowing the
NSP development subsidy to benefit a greater number of households.

As part of the State of Ohio’s housing recovery efforts, the Restoring Stability:
A Save the Dream Ohio Initiative helps Ohio homeowners struggling to
make their monthly house payments or those who have already fallen behind on
their mortgage. Through the program, the Ohio Housing Finance Agency (OHFA)
is administering $570 million from the Administration’s Hardest Hit Fund to
help families avoid foreclosure.
The Restoring Stability programs include:
Rescue Payment Assistance: The Rescue Payment Assistance program
provides payments to mortgage servicers to help delinquent homeowners who
can demonstrate a financial hardship become current on their mortgages. The
payments can cover principal, interest, fees, delinquent taxes or escrow shortage
and homeowners insurance. Homeowners need to demonstrate the ability
to make future mortgage payments for at least six months. Rescue Payment
Assistance are structured as a zero-interest, deferred payment loan that is forgiven
over five years, or repaid from sales proceeds if the home is sold sooner.

Cincinnati MSA NSP Activity (Housing Units)
NSP1 Total
Clearance and demolition
Construction of new housing
Rehabilitation/reconstruction of residential structures
NSP2 Total
Clearance and demolition
Construction of new housing
Rehabilitation/reconstruction of residential structures

Projected Completed

654

477

513

417

15

13

126

47

127

32

19

15

4

1

104

16

139

4

Clearance and demolition

80

4

Rehabilitation/reconstruction of residential structures

59

0

NSP3 Total

Mortgage Payment Assistance: This program provides up to 15 months of
mortgage payments for unemployed and underemployed homeowners. Mortgage
Payment Assistance is structured as a zero-interest, deferred payment loan that
is forgiven over five years, or repaid if the home is sold or the loan is refinanced
sooner.
Mortgage Modification with Contribution Assistance: The program
provides a payment to mortgage servicers to reduce a participating homeowner’s
mortgage principal in connection with a modification. As a result of this assistance,
the homeowner should be able to qualify for a loan modification through the
Administration’s Home Affordable Modification Program (HAMP) or other
programs that can make the monthly mortgage payment more affordable. The
assistance provided by Restoring Stability is structured as a zero-interest, deferred
payment loan that is forgiven over five years, or repaid if the home is sold or the
loan is refinanced sooner.
Transitional Assistance: The Transitional Assistance program provides
homeowners who cannot sustain homeownership with an alternative to foreclosure
by offering an incentive to mortgage servicers to complete short sales or deedin-lieu of foreclosure agreements. Transitional Assistance allows homeowners
to exit their homes if they have exhausted all other options for maintaining
homeownership or if they need to relocate to gain meaningful employment. If
necessary, the plan may also make an incentive payment to a second lien holder
to release other liens on the property.
Lien Elimination Assistance: This program provides a payment to a
participating homeowner’s mortgage servicer and other lien holders to extinguish
existing liens. To qualify for Lien Elimination Assistance, the servicer must agree to
release the lien and the homeowner must demonstrate the ability to stay current
on any remaining liens attached to the property, property taxes and homeowner’s
insurance. The assistance provided by Restoring Stability is structured as a zerointerest, deferred payment loan that is forgiven over five years, or repaid if the
home is sold or the loan is refinanced sooner.
To date, over 150 mortgage servicers have agreed to participate in at least one of
the Restoring Stability programs. The programs make extensive use of local HUDapproved housing counseling agencies to help homeowners access the program
and apply for assistance. Ohio homeowners who believe they may be eligible
can visit www.savethedream.ohio.gov. Ohio has these funds available until 2017
(or until all funds are utilized to assist struggling homeowners) to prevent avoidable
foreclosures.

Spotlight on Cincinnati MSA | Page 4