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

Spotlight on the Housing
Market in the New York-NewarkJersey City, NY-NJ-PA MSA
U.S. Department Efforts to Stabilize Development | Office of Policy Development and Research
The Obama Administration’s of Housing and Urbanthe Housing Market and Help American Homeowners | April 2013
The New York-Newark-Jersey City, NY-NJ-PA Metropolitan Statistical Area (New York MSA) includes the five counties that comprise New York City — Bronx, Kings
(Brooklyn), New York (Manhattan), Queens, and Richmond (Staten Island) — and 20 other surrounding counties located in southeastern New York state, northern
New Jersey and eastern Pennsylvania. The foreclosure crisis in the New York MSA developed later and differently than in other areas of the nation. Home price
appreciation during the housing bubble was much more rapid in the New York MSA than in the nation; yet, home prices did not fall as sharply. Investor speculation
had little impact on excess housing construction during the bubble as it did in some areas of the country. The share of distressed mortgages in the New York MSA—
those 90 or more days delinquent or in the foreclosure process—actually declined from 2003 through 2006, unlike comparable shares in the rest of the nation that
generally remained flat or increased slightly. When the rapid rise of distressed mortgages in the nation began in 2007, the share of distressed mortgages in the New
York MSA soon followed suit, and rapid increases in local mortgage distress were seen starting in 2007, but did not surpass the national rate until 2009. Although
the share of distressed mortgages remains high, the foreclosure completion rate has remained well below the national rate. The states of New York and New Jersey,
both states that require a judicial process for a foreclosure, currently rank first and second in the nation for the time it takes to complete a foreclosure, which is a
major contributing factor to the high share of mortgages in the foreclosure pipeline. Declining property values after the bubble burst were driven in part by excess
housing construction, but mainly by rising defaults, spurred first by unsustainable mortgages, then by a sharp downturn in the economy and rising unemployment.
Economic and housing market conditions in the New York MSA are improving, but the local housing market remains fragile with a high concentration of distressed
mortgages and relatively low sales. However, the Administration’s broad approach to stabilize the housing market has been a real help to homeowners in New York
and 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 Administration’s efforts to stabilize the housing market and help local homeowners. It also provides a summary of the added impacts on the local
housing market from the devastation brought by Hurricane Sandy in October 2012, and how the government response to Sandy is progressing.

Population Growth, Employment,
and Housing Market:
With 19.6 million people according to the most recent
Census, the New York MSA is the largest in the nation. From
2000 to 2010, the population increased by an average of
62,300 people, or 0.3 percent a year. Although people
moved out of the area during the 2000s, natural population
growth (births minus deaths), which averaged 119,300 per
year, was greater than the number of people leaving the
area. An average of 9,000 people moved out of the MSA
each year from mid-2000 to mid-2002 during the recession
of the early 2000s, with this number increasing to 112,900
people from mid-2002 to mid-2007 as home prices rose
sharply.

During the decade spanned by the Census, new housing production exceeded
household growth in the New York MSA. Net annual housing unit growth of 0.6
percent was greater than the corresponding population and household growth
rates of 0.3 percent and 0.4 percent, respectively. This excess construction,
while not as great as in some parts of the nation, nevertheless contributed
to an oversupply of housing. According to the Census Bureau, the number
of vacant units increased by an average of 20,200 units, or 4.7 percent,
annually in New York during the 2000s, slightly more than the national average
increase of 4.4 percent during the same period. Investor speculation was not
a significant factor in the overbuilding in the years leading up to the housing
crisis as it was in other parts of the nation, as a very small share of New
York area home purchases were by non-occupant investors. Specifically, from
2000 to 2006 investor home sales rose from 4.6 to 7.7 percent of total sales
in the New York-White Plains-Wayne, NY-NJ Metropolitan Division, while the
corresponding increase for the nation was from 7.8 to 14.6 percent of sales.

Household Growth During the Past Decade
Date of Census

4/1/2000

Annual Growth Rate
New York MSA Households

4/1/2010

18,944,519

19,567,410

-

0.3%

6,891,287

7,152,840

Annual Growth Rate

-

0.4%

New York MSA Housing Units

7,320,008

7,783,415

Annual Growth Rate

-

0.6%

Source: Census Bureau (2000 and 2010 Decennial)

Spotlight on the Housing Market in the New York-Newark-Jersey City, NY-NJ-PA MSA | Page 1

U.S. Department of the Treasury
h

U.S. Department Efforts to Stabilize Development | Office of Policy Development and Research
The Obama Administration’s of Housing and Urbanthe Housing Market and Help American Homeowners | April 2013
Subprime lending, however, is likely to have contributed
to the overbuilding in New York. A study by the National
Bureau of Economic Research indicates that 19 percent of
new mortgages in New York in 2005 were subprime loans
compared with 20 percent nationally. Although the level of
subprime lending was comparable to the national average
in 2005, a conservative estimate based on HMDA (Home
Mortgage Disclosure Act) data indicates that subprime
originations tripled nationally between 1998 and 2005,
while other data sources imply a seven-fold increase in
subprime originations during this period. According to a
study by the Center for Responsible Lending, approximately
90 percent of subprime mortgages experience increases in
monthly payments of 30 to 50 percent within a few years,
causing subprime loans to typically default at more than 7
times the rate of other mortgages.

1.7 percent in manufacturing, and 1.6 percent in the government sector. The
unemployment rate for the New York MSA peaked at 9.3 percent in February
2010 and has since fallen to 8.4 percent as of March 2013. The national
unemployment rate peaked in October 2009 at 10.0 percent, falling to 7.5
percent by April 2013.

A strong economic recovery is underway in New
York. The New York metropolitan area represents the
largest job market in the nation. The local economy grew
modestly after the 2001 recession, with nonfarm payrolls
increasing at an average annual rate of 84,150 jobs, or
1.0 percent from the third quarter of 2003 through the first
quarter of 2008. The impact of the 2007-2009 recession
had a less severe impact on New York than for the nation.
Jobs in the New York MSA declined at an average annual
rate of 218,800, or 2.5 percent from the second quarter of
2008 through the end of 2009, compared with a national
annual decline of 3.5 percent over the same period.
Recovery from the Great Recession has been slightly stronger
in New York, with jobs increasing at an average annual rate
of 120,400, or 1.5 percent, from the first quarter of 2010
through the first quarter of 2013, compared with a rate of
1.3 percent for the nation.
The New York MSA is known as a major center of world
financial activities as well as professional and business
services, which account for a combined total of 24 percent
of local employment. These sectors have an immense impact
on local job growth and losses: the two sectors accounted
for 70 percent of the jobs lost during the recent recession
and 58 percent of the jobs gained during the subsequent
recovery. From the second quarter of 2008 through the end
of 2009, employment in financial activities declined at an
average annual rate of 36,000 jobs, or 4.6 percent, while
professional and business services declined at an average
annual rate of 32,750 jobs, or 2.5 percent. The recovery
in the New York economy was led by the professional
and business services sector, which grew at an average
annual rate of 29,800 jobs, or 2.4 percent, since the fourth
quarter of 2009, accounting for 56 percent of total job
growth. The financial activities sector has not recovered
as quickly, increasing at an average annual rate of 1,190
jobs, or 0.2 percent, over the same period. The leisure and
hospitality and retail trade sectors have also contributed
to the recovery, growing at rates of 2.3 and 1.1 percent,
respectively. Growth in these sectors more than offset
average annual job losses of 2.6 percent in construction,

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U.S. Department of the Treasury
h

U.S. Department Efforts to Stabilize Development | Office of Policy Development and Research
The Obama Administration’s of Housing and Urbanthe Housing Market and Help American Homeowners | April 2013
Existing and new home sales in the New York
MSA began a dramatic decline in 2006 but
have stabilized since 2008. After reaching a peak of
251,500 units sold in 2005, existing home sales dropped
by an average annual rate of 16 percent between 2005
and 2008. Since 2008, the decline in existing home sales
has slowed to an average annual rate of less than 3 percent,
reaching a low of 115,600 homes sold in 2012. New home
sales also peaked in 2005 at 24,600, before falling by
an average of 15 percent from 2006 through 2009. New
home sales have since stabilized, declining by an average
of 700 homes sold per year and reaching a low of 7,700 in
2012.
New York MSA house prices rose more sharply
but fell less steeply during the bubble. The
CoreLogic repeat-sales house price index (HPI) shows that
home prices in the New York-Wayne-White Plains, NY-NJ
Metropolitan Division (which includes New York City) rose
fairly rapidly during the bubble, increasing 20 percent
faster than the pace for the rest of the nation between 2000
and 2006. However, house prices fell by only 17 percent
from their peak in November 2006 to their low in July 2009
compared to a national peak-to-low decline of 31 percent. A
relatively low level of distressed sales (involving bank-owned
properties or short sales) is likely to have played a role in
the smaller price decline, as distressed sales—at 7 percent
of existing home sales during this period—were half the
14 percent national rate. In the last year, distressed sales
averaged 11 percent in New York compared to 25 percent
nationally. The lower rate of distressed sales in the New York
MSA is likely related to the lengthy foreclosure processing
time in New York and New Jersey, which are the highest
in the nation. The rise in house prices in New York during
the bubble had little to do with investor speculation, as
home sales to investors averaged 7 percent between 2003
and 2006—much lower than the 13 percent share for the
nation. As described earlier, subprime lending is likely to
have spurred demand, however, and fueled home prices.
Home prices in New York have since bounced back by 9
percent from their 2009 low, outpacing a 6 percent increase
nationally.

Impact of Hurricane Sandy on the New York
Metropolitan Area:
Hurricane Sandy made landfall just north of Atlantic City, New Jersey on
October 29, 2012, approximately one hour after being downgraded from a
Category One hurricane to a post-tropical cyclone. According to the National
Hurricane Center, at least 145 direct deaths were recorded in the Atlantic basin
due to Sandy. In terms of property destruction and lost economic activity, Sandy
was the second-costliest cyclone to hit the United States since 1900 with a
preliminary damage estimate of $50 billion according to Moody’s Analytics.
The geographies most heavily impacted by Sandy were concentrated in the
New York MSA. According to registration and inspection data from Federal
Emergency Management Agency’s (FEMA) Individual Assistance program, the
New York MSA accounted for nearly 90 percent of the more than 500,000
registrations for assistance and 95 percent of total assistance provided in the

The New York rental market continues to be one
of the tightest in the nation. According to Axiometrics
Inc., the New York-Wayne-White Plains, NY-NJ apartment
vacancy rate was 3.4 percent in the fourth quarter of 2012,
up from 3.1 percent a year earlier, but still representing
tight market conditions. The slight increase in the vacancy
rate was due to a large number of new apartment projects
entering the market during the past year. The national
apartment vacancy rate declined from 6.3 to 5.7 percent
over the same period. During the fourth quarter of 2012,
the average apartment rent in the New York-Wayne-White
Plains, NY-NJ metropolitan division was $3,260 compared
with a national average rent level of $1,076.
Note: From Jaison R. Abel, Jason Bram, Richard Deitz, and James Orr, “The Region’s Job Rebound
from Superstorm Sandy,” Federal Reserve Bank of New York Liberty Street Economics blog, March
11, 2013, available at http://libertystreeteconomics.newyorkfed.org/2013/03/the-regions-jobrebound-from-superstorm-sandy.html .

Spotlight on the Housing Market in the New York-Newark-Jersey City, NY-NJ-PA MSA | Page 3

U.S. Department of the Treasury
h

U.S. Department Efforts to Stabilize Development | Office of Policy Development and Research
The Obama Administration’s of Housing and Urbanthe Housing Market and Help American Homeowners | April 2013
disaster declaration area for Sandy. Using FEMA direct
inspection data as of January 2013, HUD estimates that
more than 170,000 primary residences in the MSA received
some damage, with nearly 110,000 receiving serious
damage, primarily due to flooding of one foot or more in the
living space. Thousands of second homes were likely also
damaged. As Table 1 shows, the damage was most severe
in Nassau, Queens, Kings (Brooklyn), and Richmond (Staten
Island) counties in New York and Ocean and Monmouth
Counties in New Jersey. Not in the MSA, Atlantic County
also had significant damage in New Jersey. In the affected
counties, most damage was due to storm surge, which
largely impacted the homes along the coastline or on inlets
to the Atlantic Ocean.
While the impacts on individual homeowners and affected
communities were devastating as noted above, the overall
economic impacts on the job market and employment in
the region show an immediate spike in initial jobless claims
and a drop in total employment after the storm, both of
which rebounded quickly. According to economists at the
New York Federal Reserve Bank, initial jobless claims only
remained elevated for two to three weeks. Furthermore,
total employment in the New York metropolitan area, which
fell by 32,000 jobs in November, increased by 53,200
in December to exceed total employment just before the
storm. The Reserve Bank’s economists explained that while
many people suddenly found themselves out of work in
the aftermath of Sandy, some were able to return to work
within a few weeks, and others found work created as a
consequence of the storm.
Damage to Primary Residences in NY
MSA
New York City

Total
Damaged

Seriously
Damaged

58,651

38,465

Queens County

23,031

16,466

Kings County (Brooklyn)

22,299

13,372

Richmond County (Staten Island)

11,275

7,956

1,036

393

Bronx County

1,010

278

New York - Outside NYC

56,126
41,626

8,397

Rockland County

693

265

Westchester County

934

145

55,667

32,049

Ocean County

23,529

17,840

Monmouth County

13,157

8,572

Hudson County

5,157

1,933

Bergen County

3,593

1,806

Middlesex County

3,985

1,344

Essex County

2,762

226

Union County

2,747

298

737

30

170,444

A primary reason for the stubbornly high level of mortgages at risk of
foreclosure in the New York MSA is the time it takes to foreclosure on a
property. According to Realty Trac® Inc., New York and New Jersey, both states
that employ the judicial foreclosure process, rank first and second, respectively,
for the average time it takes to process a foreclosure among states. In the first

29,954

12,873

New York homeowners continue to struggle with high rates of mortgages at risk
of foreclosure. According to LPS Applied Analytics, as of January 2013 New
York placed 24th out of 381 metropolitan areas ranked by share of mortgages
at risk of foreclosure (90 or more days delinquent or in the foreclosure process).
LPS data show that mortgages at risk of foreclosure decreased by 0.3 percent
during the last year in the New York MSA, from 200,300 in January 2012 to
199,700 in January 2013, compared with a national decline of 18.8 percent
during the same period. CoreLogic data since 2000 indicate that the rate of
mortgages at risk of foreclosure in the New York MSA declined from 2003
through 2006, when the average share of distressed mortgages for the nation
had remained steady or increased slightly. In 2007, when the foreclosure crisis
began for most of the nation, mortgages at risk of foreclosure in the NY MSA
followed closely behind the nation—rising from 1.3 percent to 4.2 percent
compared with a rise of 1.6 percent to 4.4 percent nationally. In 2007 and
2008, single-family foreclosures were largely driven by unaffordable loan
products. Beginning in 2009, foreclosures were increasingly driven by loss
of income, unemployment, and strategic defaults as the economy worsened
according to research by the Federal Reserve Bank of Chicago. A sharp spike
upward in the rate of distressed mortgages occurred in 2009 for both New York
and the nation. By early 2010, mortgages at risk of foreclosure reached a peak
of 8.0 percent nationally, and have since fallen to 6.0 percent. The share of
distressed mortgages in the New York MSA outpaced the national rate in 2009
and has continued to climb to 9.8 percent, although at a slower pace since
the beginning of 2010. Research by the New York Federal Reserve Bank notes
that, “Households in the New York-Northern New Jersey region were spared the
worst of the housing bust and have generally experienced less financial stress
than average over the past several years. However, as the housing market has
begun to recover both regionally and nationally, the region is faring far worse
than the nation in one important respect—a growing backlog of foreclosure
is resulting in a share of all active mortgages in foreclosure that is now well
above the national average.”

38,761

Nassau County

Trends in Mortgage Delinquencies and
Foreclosures:

109,275

New Jersey

Passaic County
NY MSA Total

Spotlight on the Housing Market in the New York-Newark-Jersey City, NY-NJ-PA MSA | Page 4

U.S. Department of the Treasury
h

U.S. Department Efforts to Stabilize Development | Office of Policy Development and Research
The Obama Administration’s of Housing and Urbanthe Housing Market and Help American Homeowners | April 2013
quarter of 2013, the average foreclosure processing time in
New York was 1,049 days—more than twice the national
rate of 477 days—but down from 1,056 days during the
first quarter of 2012. In New Jersey, a foreclosure took an
average of 1,002 days to complete in the first quarter of this
year, up from 966 days a year ago. The lengthy foreclosure
processing timelines in New York and New Jersey, along
with lender processing delays, have resulted in a very high
share of mortgages remaining in the foreclosure pipeline.
The State of New Jersey passed legislation in December
2012 that would shorten the foreclosure process by
allowing lenders to apply for a speedy summary judgment
on abandoned properties. The new law, which became
operative April 1, 2013, is expected to reduce the average
foreclosure process to three or four months.
Realty Trac data indicate that the foreclosure completion rate
in the NY MSA has been substantially less than the national
rate. As of March 2013, the rate of foreclosure completions
since April 1, 2009 in the New York MSA is 0.4 percent
compared to a national rate of 2.5 percent. Foreclosure
completions have been trending downward nationally and
in New York. For the first quarter of 2013, completed
foreclosures in New York were down 6 percent from one
year ago, while completed foreclosures in the nation
fell by 25 percent during the same period. The efforts of
numerous state and local entities and financial institutions in
partnership with the federal government have helped contain
the rate of foreclosures. Lender processing delays and a
lengthy judicial process have also contributed to the national
decline in foreclosure activity. In the wake of the February
2012 National Mortgage Servicing Settlement, foreclosure
activity has started to pick up a bit, primarily in states
where the process slowed dramatically in the last two years.
CoreLogic reports that 11.9 percent of mortgages in the
New York-Wayne-White Plains, NY-NJ metropolitan division
were underwater as of the fourth quarter of 2012—far
lower than the 21.5 percent nationally—but still representing
additional homeowners potentially at risk.

First Quarter 2013
Foreclosure
Area

Foreclosure
Rate

The Administration’s mortgage and neighborhood assistance programs —
the Home Affordable Modification Program (HAMP), the Federal Housing
Administration (FHA) mortgage assistance programs, the Neighborhood
Stabilization Program (NSP), and the Hardest Hit Fund (HHF) program –
combined with assistance from the HOPE Now Alliance of mortgage servicers
and the National Mortgage Servicing Settlement have helped stabilize the New
York MSA housing market.
From the launch of the Administration’s assistance programs in April 2009
through the end of February 2013, nearly 231,600 homeowners received
mortgage assistance in the New York metropolitan area. More than 122,500
interventions were completed through the HAMP and FHA loss mitigation and
early delinquency intervention programs. An estimated additional 109,100
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 New York MSA is more than 8 times the number of foreclosures completed
during this period (27,200). This relatively high ratio of mortgage assistance to
foreclosures in the New York MSA since April 2009 (8.5 to 1 compared to 2
to 1 for the nation) is likely related to a relatively stronger local economy and
lower unemployment rates over this time, making it easier to effect mortgage
assistance. Under the landmark National Mortgage Servicing Settlement,
over 19,000 New York homeowners had benefitted from nearly $2 billion in
refinancing, short sales and completed or trial loan modifications, including
principal reduction on first and second lien mortgages provided as of December
31, 2012. In New Jersey, over 17,000 homeowners had benefitted from more
than $1.5 billion in consumer relief. Nationwide, the settlement has provided
nearly $46 billion in consumer relief benefits to more than 554,000 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.

Since April 1, 2009
Foreclosure

Foreclosure
Rate

910

0.01%

27,520

0.4%

139,100

New York MSA

The Administration’s Efforts to Stabilize the
New York MSA Housing Market:

0.11%

3,318,200

2.5%

Note: Foreclosure Rates as Percent of All Housing Units;
Data through March 2013 for foreclosures since April 2009
Source: Realty Trac and Census Bureau
OMB MSA Definition Footnote
Effective February 28, 2013, the Office of Management and Budget released a
new definition for the metropolitan area formerly known as New York-Northern
New Jersey-Long Island, NY-NJ-PA.

Spotlight on the Housing Market in the New York-Newark-Jersey City, NY-NJ-PA MSA | Page 5

U.S. Department of the Treasury
h

U.S. Department Efforts to Stabilize Development | Office of Policy Development and Research
The Obama Administration’s of Housing and Urbanthe Housing Market and Help American Homeowners | April 2013

homes, mixed-used housing, and stalled or vacant site development. The
City’s NSP3 program was designed to provide affordable rental housing
to families earning 50 percent or less of area median income ($41,500

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.

for a family of four) and the projects must be certified by Enterprise Green
Communities. Neighborhoods targeted for assistance under all three

programs are primarily lower income communities with both high rates of
foreclosed and abandoned properties and subprime lending.

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.

A portion of the City’s NSP1 grant has been used to leverage the
purchase and rehabilitation of 14 foreclosed buildings located throughout
the Bronx. The properties had become extremely dilapidated, and with
the use of NSP funds the City was able to support their purchase and
renovation by a local developer. The City used $6.5 million of NSP2
funds to leverage the acquisition of a 27-building scatter site development
containing 216 units in central Brooklyn. The City also loaned $3.4
million of NSP3 funds through its Loan Participation Program to acquire
and refurbish five buildings in the Hunts Point-Longwood section of
the Bronx. A total of $9.28 million was raised through the sale of Low
Income Housing Tax Credits to cover construction costs for the project.
Many of these foreclosed properties were in the City’s Alternative
Enforcement Program, an initiative that annually targets 200 of the City’s
worst properties. To date, the City has restored 81 apartments in this
project.

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.

• The City of Newark, New Jersey was awarded a total of $3.4
million in NSP1 funds, $20.8 million in NSP2 funds, and $2.0 million in
NSP3 funds. The City of Newark used $3.16 million of the NSP2 grant
to construct the 56-unit Clinton Hill Apartments, a new community in
Newark’s South Ward neighborhood which serves military veterans and
low-income families. The Clinton Hill Apartments includes 56 permanent
affordable apartments and will house a minimum of 14 disabled
veterans.

Overall, a total of $109.8 million has been awarded to 9
NSP grantees in the New York MSA. Approximately 366
households have already benefited from NSP, and activities
funded by the program are expected to provide assistance
to an additional 633 owner-occupied and renter households.
Examples of how these funds have been put to use are
provided below.
• The City of New York was awarded a total of $24.3

million in NSP1 funds, $20.1 million in NSP2 funds,
and $9.8 million in NSP3 funds. The City’s NSP1
program primarily focused on establishing financing
mechanisms for the purchase and redevelopment of
foreclosed and abandoned residential properties,
while the City’s NSP2 program provides assistance
for a down-payment and rehabilitation of foreclosed
Projected Completed
NSP1 Total

470

358

6
Homeownership assistance to low-and moderate income

9

167

125
3
221

377

NSP2 Total

6
291

8

221

NSP3 Total

-

17

8

139

Homeownership assistance to low-and moderate income

-

152

-

8

-

88

-

56

The development was a joint venture by the HELP Development
Corporation, a national non-profit organization founded by Andrew
Cuomo in 1986 to help the homeless and low-income families, and the
Make It Right Foundation, a non-profit founded by actor Brad Pitt in
response to Hurricane Katrina. The New Jersey Housing and Mortgage
Finance Authority (HMFA) awarded Clinton Hill $1.6 million in federal
tax credits which generated $11.7 million in equity for the development.
HELP also received fourteen Section 8 vouchers from the Newark Housing
Authority and will work with the East Orange VA Medical Center to
make these units affordable to low-income veterans. The Make It Right
Foundation contributed its architectural design and sustainability expertise
to ensure that green features were incorporated into the building’s
development and construction.
Clinton Hill’s four-story building features 14 one-bedroom, 20 twobedroom, and 22 three-bedroom units with rents affordable to residents
earning no more than 50 percent of area median income. The building
includes a rooftop garden designed for tenants to grow vegetables, as
well as a solar power array and meets LEED Platinum standards. The
development contains a community center with a computer room, a fitness
center, and meeting rooms. The community center is used by residents,
HELP’s Mentoring USA program, and other social service programs.

-

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U.S. Department of the Treasury
h

U.S. Department Efforts to Stabilize Development | Office of Policy Development and Research
The Obama Administration’s of Housing and Urbanthe Housing Market and Help American Homeowners | April 2013

The Administration allocated $300.5 million from its Hardest
Hit Fund to the state of New Jersey. The New Jersey Housing
and Mortgage Finance Agency (NJHMFA) administers these
Hardest Hit funds through the New Jersey HomeKeeper
Program, which was launched statewide in May 2011.
HomeKeeper offers mortgage payment and reinstatement
assistance for New Jersey homeowners who are unemployed
or underemployed through no fault of their own and are at high
risk of default or foreclosure. Through the program, NJHMFA
provides twenty-four months or up to $48,000 in monthly
mortgage payment assistance paid to the servicer on behalf
of the qualified homeowner; the program also provides up to
$48,000 in reinstatement assistance for recently re-employed
homeowners to cure delinquent payments, escrow shortages,
and/or delinquent property taxes to avoid foreclosure. The
number of homeowners benefitting from the program has
steadily increased since 2011, due to strong demand and
continued economic and disaster recovery challenges for New
Jersey homeowners. For additional information,
see https://www.njhomekeeper.com/.

The Government’s Response to Hurricane
Sandy:
Multiple agencies at all levels of government have been involved in
the recovery efforts for Hurricane Sandy. The response to Hurricane
Sandy began while the massive storm was still gaining strength in the
Atlantic Ocean. By the time it made landfall along the East Coast,
FEMA teams and resources were already in place to begin helping
the millions of people that would be affected by the storm’s immediate
impact. Recovery and clean-up efforts have only intensified since
then. According to FEMA, as of mid-April 2013 over $1.3 billion
has been provided in Individual and Household assistance in New
York and New Jersey, the Flood Insurance Program has paid claims
of $6.6 billion, the Small Business Administration has approved
disaster recovery loans of over $2.1 billion, and more than $1 billion
in Public Assistance Grants have been approved. The Insurance
Information Institute reports that private insurers are projected to pay
out an additional $15.9 billion in New York and New Jersey above
what is covered by the National Flood Insurance Program. In April,
state regulators indicated that 93 percent of the insurance claims in
New York and New Jersey had been settled. More information on
the government response to Hurricane Sandy in New York and New
Jersey is available from the FEMA website at http://www.fema.gov/
disaster/4085 and http://www.fema.gov/disaster/4086.

Secretary of Housing and Urban Development, Shaun Donovan,
chairs the task force, which was officially launched on February 5 and
includes representatives from most federal agencies. The Task Force
is working with stakeholders in the region to deliver a comprehensive
regional rebuilding plan within six months, cut red tape and reduce
regulatory burdens, monitor progress, and provide communities with
technical assistance and tools to help them realize their vision for
redevelopment and revitalization.
In addition to direct funding, the Federal Housing Administration
(FHA), the Federal Housing Finance Agency (FHFA), Fannie Mae,
and Freddie Mac put in place foreclosure and eviction moratoriums,
in effect until April 30, 2013, on the initiation or commencement
of foreclosure actions against homeowners whose properties were
damaged or destroyed due to Hurricane Sandy. On April 12th,
FHA announced additional forbearance relief for affected borrowers
which would allow borrowers to suspend up to 12 months’ worth of
mortgage payments while they repair their homes, and potentially
be eligible for an FHA streamlined loan modification to avoid large
lump sum payments after the end of the forbearance period. FHA
and FHFA’s immediate responses to Hurricane Sandy are particularly
important since the most affected NYC metro area households were
more likely to live in a unit that had a foreclosure action taken in the
18 months prior to the storm. HUD analysis shows that households
whose property was damaged in the storm (as measured by FEMA
registrations) were 1.5 times more likely to have been ‘in foreclosure’
when the storm hit than all households in the MSA; thus the foreclosure
moratoriums are providing much needed relief for many affected
families.
The Hurricane Sandy relief effort has involved cooperation at all
levels of government, and that while there is much work yet to do, the
response to Sandy has been broad-based and comprehensive.

On top of assistance already provided, the Disaster Relief
Appropriations Act of 2013 was signed into law on January 29,
2013, which provides an additional $50 billion in funding that is
spread out across a variety of federal departments and agencies
primarily to support recovery from Hurricane Sandy. To help
coordinate the long-term recovery of the region impacted by Hurricane
Sandy, President Obama created through Executive Order the
Hurricane Sandy Rebuilding Task Force to “…ensure that the Federal
Government continues to provide appropriate resources to support
affected State, local, and tribal communities to improve the region’s
resilience, health, and prosperity by building for the future.” The

Spotlight on the Housing Market in the New York-Newark-Jersey City, NY-NJ-PA MSA | Page 7


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