David Abromowitz: Innovative State and Local Approaches to Containing the Spread of Foreclosures

While $4 billion in community development block grant neighborhood stabilization funding was riding its way for months on the Capitol Hill roller coaster, states and localities stepped forward with their own innovations to contain the spreading blight of foreclosures. In July, Massachusetts Governor Deval Patrick announced a $20 million Neighborhood Stabilization Loan Fund to acquire foreclosed properties and renovate them as affordable homes in 7 of the state's hardest hit communities. In what may be a first in the nation, this fund combines money from quasi-public agencies, banks and $3 million from private foundations to write down the interest costs.

Fairfax County, Virginia committed more than $10 million in tax revenue to aid acquisition of as many as 200 foreclosed houses. The DC suburb is funding a mix of outright purchase, aid to buyers through government-backed, low-interest loans, and other financial assistance mainly for first time homebuyers earning up to 80% of median income (roughly $75,000).

These and similar efforts cropping up around the country represent a significant addition to the already active foreclosure prevention efforts that have been underway for some time.

It has been encouraging to see communities and major private funders not wait for Washington to act. As thoughtful and well targeted as local stabilization efforts may be, however, the sheer avalanche of foreclosures is likely to bury these efforts if not combined with Federal resources that flow quickly and easily soon to where they are needed. Congress placed swift deadlines – 60 days for creation of a formula, and 30 days after that to get funds distributed – but communities need to be ready to put these funds immediately to work.

David Abromowitz is a director and partner with Goulston & Storrs, a law firm known nationally for its Housing & Economic Development Group, which works on all aspects of the acquisition, financing and development of residential real estate and affordable housing.

"Spotlight" on NHC and the Center for Housing Policy

Visit the list of links below to read recent articles featuring the National Housing Conference and the Center for Housing Policy.

January 2009
December 2008
November 2008
October 2008
September 2008

January 2009

"Coalition Seeks Protection for Renters in Foreclosed Properties"
Mutlifamily Executive Magazine (1/30)
Quoted: Sharon Price, NHC director of policy

“Developer Sees Appeal of Mass Transit”
St. Petersburg Times (FL) (1/23)
Featured: “A Heavy Load: The Combined Housing and Transportation Burdens of Working Families,” a study conducted by NHC’s research affiliate the Center for Housing Policy

“IRS Agents Soften Heart for Delinquent Taxpayers”
Associated Press (1/6)
Quoted: Sharon Price, NHC director of policy

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December 2008

“The Great Persuader”
American Prospect (12/18)
Quoted: Conrad Egan, president and CEO of NHC

“Donovan Enlisted by Obama”
CityFeet.com (12/17)
Featured: The NYHC and NHC 35th Annual Awards Luncheon

“HUD Choice to be Part of Cornerstone to Fix Crisis”
USA Today (12/15)
Quoted: Conrad Egan, NHC president and CEO

“Eyeing State/Federal Aid for MF”
National Mortgage News (12/15)
Quoted: Conrad Egan, NHC president and CEO

“Advocates Ponder Affordable Housing Under Obama”
GlobeSt.com (12/15)
Quoted: Conrad Egan, NHC president and CEO, and Sharon Price, NHC director of policy

“Obama's HUD Pick to Help With Crisis”
Associated Press (12/13)
Quoted: Conrad Egan, NHC president and CEO

“Bloomberg: Housing Program Must Get Done”
GlobeSt.com (12/12)
Featured: The NYHC and NHC 35th Annual Awards Luncheon

“NHC Holds Annual New York City Awards Luncheon”
Multi-Housing News (12/11)
Featured: The NYHC and NHC 35th Annual Awards Luncheon

"High Inventory Killing Home Builders; Industry Asks For Help"
MarketWatch (12/5)
Quoted: Sharon Price, NHC director of policy

“Help for Homeowners”
Lou Dobbs Tonight - CNN (12/4)
Featured: On-camera interview with Sharon Price, NHC director of policy

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November 2008

“Home is Where the Savings Are”
San Jose Mercury News (CA) (11/28)
Featured: Center for Housing Policy's Stretched Thin study

"FHA Relaxes Program Rules for Homeowners"
Washington Post (11/20)
Quoted: Sharon Price, NHC director of policy

"Paulson Shift Pressures Home Lenders, Investors"
Boston Globe (11/13)
Quoted: Sharon Price, NHC director of policy

“Wrangling Over Foreclosures”
Boston Globe (11/12)
Quoted: Sharon Price, NHC director of policy

“Rell Calls for Foreclosure Moratorium; Plan Includes Mediation and Tenant Notification"
The Day (CT) (11/21)
Featured: HousingPolicy.org, the Center for Housing Policy’s online guide to state and local housing policy solutions

“Paulson Shift Pressures Home Lenders, Investors”
Boston Globe (11/13)
Quoted: Sharon Price, NHC director of policy

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October 2008

“Countdown to the Vote: Housing”
SmartMoney.com (10/31)
Quoted: Sharon Price, NHC director of policy

“Mortgages Not The Only Problem”
Chattanooga Times Free Press (10/27)
Featured: Center for Housing Policy's Stretched Thin study

“Market Pulse”
Hartfotd Courant (CT) (10/19)
Featured: Center for Housing Policy's Stretched Thin study

“Study Finds Rising Operating Expenses Lead to Rent Increases, Housing Costs Outpace Income Growth”
Multi-Housing News Online (10/14)
Quoted: Barbara Lipman, research director for the Center for Housing Policy

“Salaries Lag Behind Living Costs”
El Paso Times (10/12)
Quoted: Maya Brennan, research associate for the Center for Housing Policy

“Housing Costs Outpace Income Increases”
The Citizens' Voice (10/11)
Featured: Center for Housing Policy's Stretched Thin study

“Stretched Too Thin? You’ve Got Company: Part II”
“L.A. Land” – Los Angeles Times Blog (10/10)
Featured: Center for Housing Policy's Stretched Thin study

“Housing Costs Not Just About Mortgages”
“Seattle Real Estate News” – Seattle Post-Intelligencer Blog (10/9)
Featured: Center for Housing Policy's Stretched Thin study

“Stretched Too Thin? You’ve Got Company”
“L.A. Land” – Los Angeles Times Blog (10/8)
Featured: Center for Housing Policy's Stretched Thin study

“Report: Housing Expenses Grow At Faster Pace Than Income”
Las Vegas Review-Journal (10/8)
Quoted: Maya Brennan, research associate for the Center for Housing Policy

“Mortgage Payments Aren’t the Only Housing Costs Crimping Budgets”
MarketWatch (10/8)
Quoted: Maya Brennan, research associate for the Center for Housing Policy
**This article also appeared in Fort Wayne News-Sentinel, NASDAQ Online, and Boston Herald Online

“Study: US Housing Costs Soared as Incomes Lagged”
Associated Press (10/8)
Quoted: Maya Brennan, research associate for the Center for Housing Policy
**This article also appeared in newspapers such as Washington Post, Tampa Tribune, Arizona Republic, Austin-American Statesman, Seattle Times, Columbus Dispatch, Richmond Times-Dispatch, Houston Chronicle, and Newsday

“‘Stretched Thin’ Study Examines Full Spectrum of Housing Costs”
“The Hill Blog” – Congress Blog (10/8)
Featured: Center for Housing Policy's Stretched Thin study

“FHA Will Take on Subprime Loans Shunned by Lenders”
Bloomberg (10/6)
Quoted: Sharon Price, director of policy for the National Housing Conference

“Federal Bailout Lacks Control of Home Loans to Aid Owners”
Boston Globe (10/5)
Quoted: Sharon Price, director of policy for the National Housing Conference

“Industry Leaders Speak Out on Candidates, Election”
Affordable Housing Finance (10/2008)
Quoted: NHC President and CEO Conrad Egan

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September 2008

“Financial Bailout to Include Help for Homeowners”
Newsday (9/23)
Quoted: Sharon Price, director of policy for the National Housing Conference

“Open House [Blog] Opened”
San Diego Union-Tribune (9/21)
Quoted: Michele Anapol, director of communications for NHC and the Center

“[Fannie Mae, Freddie Mac] Social Mission in Doubt”
Wall Street Journal (9/10)
Quoted: NHC President and CEO Conrad Egan

“Caution on Fannie Mae and Freddie Mac”
Washington Post (9/4)
Featured: Letter-to-the-Editor by NHC President and CEO Conrad Egan

“High Gas Prices and New Regional Transit Agency Prompt Hopes for Better Rail Service”
Bradenton Herald (9/3)
Referenced: The Center for Housing Policy’s study “A Heavy Load: The Combined Housing and Transportation Burdens of Working Families”

“Out of Balance”
Affordable Housing Finance (9/2008)
Quoted: Jeffrey Lubell, executive director of the Center for Housing Policy

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Foreclosure Prevention and Neighborhood Stabilization

Visit the list of links below to access information about foreclosure prevention efforts and neighborhood stabilization initiatives. For more information on the Foreclosure Taskforce, please contact NHC Policy Associate Clare Duncan.

Weekly Policy Updates
Follow this link to receive additional news, events, and resources related to Foreclosure Prevention and Neighborhood Stabilization Initiatives. This section is updated weekly.

Resources
National Foreclosure Prevention and Neighborhood Stabilization Task Force Sign-On Letters, Press Statements, and Presentations

• Taskforce Supports Project Rebuild in the Senate (10/17/11)
• Taskforce Supports Project Rebuild in the House (10/5/11)
• Taskforce Submits Recommendations on the Disposition of REO Properties (9/15/11)
• Taskforce Submits Recommendations on the QRM rule (7/27/11)
• Taskforce Supports Housing Counseling Funding in the House (7/8/11)
• Taskforce Supports NSP Funding in the Senate (5/2/11)
• Task Force Supports NSP Funding At Rescission Hearing and Mark-Up (3/8/11)
• Task Force Thanks Chairman Dodd, Chairman Frank, and Chairwoman Waters for Their Work on NSP3 (8/23/10)
• Foreclosure Task Force Hails Bill Signing- $1 Billion In Funding Secured To Help Stabilize Communities Nationwide
• Task Force Thanks HUD for Their Work on NSP Issues (5/21/10)
• Task Force Recommends NSP Vacant Property Change (11/18/09)
• Task Force Releases Statement to Add NSP Funding to Economic Recovery Package Conference Bill (2/10/09)
• Task Force Urges Senate to Keep NSP Funding in Economic Recovery Package (2/3/09)
• Task Force Urges Congress to Include $5 Billion in NSP Funding in Economic Stimulus Package (12/19/08)
• Prepared in Response to FDIC’s Approach to Loan Modifications for Families Facing Foreclosure (11/19/08)
• National Foreclosure Prevention and Neighborhood Stabilization Responds to FDIC’s Approach to Loan Modifications for Families Facing Foreclosure (11/19/08)
• Confronting the Neighborhood Impacts of Foreclosure - Presentation materials and best practices from the Federal Reserve Board (10/20/08)

NSP Resources from the US Department of Housing and Urban Development (HUD)

• HUD: Neighborhood Stabilization Program
• NSP 2 Correction Notice (11/9/09)
• NSP 2 FAQs (11/9/09)
• NSP Bridge Notice
• NSP1 Recapture and Reallocation Notice and Guidance (8/23/10)

NSP Summaries

• Summary of NSP3 Notice
• Summary of NSP1 Recapture and Reallocation Notice
• Summary of NSP3 in the Dodd-Frank Wall Street Reform and Consumer Protection Act
• Summary for Other Foreclosure Programs in the Dodd-Frank Wall Street Reform and Consumer Protection Act
• July 2010 Update: Outstanding NSP1 and NSP2 Task Force Issues
• June 2010 Update: Outstanding NSP1 and NSP2 Task Force Issues
• November 2009 Update: Outstanding NSP1 and NSP2 Task Force Issues
• June 2009 Update: Outstanding NSP1 and NSP2 Task Force Issues
• Summary of NSP Bridge Notice
• NSP 1 Quarterly Performance Reports (8/11/09)
  Compiled by the National Housing Law Project
• NSP 2 Proposals, Public Comment Periods, Applications (7/15/08)
  Compiled by the National Housing Law Project

PLEASE NOTE: You can update the two shared documents above with additional information as it relates to your city, state or county.


Other Resources from the US Department of Housing and Urban Development (HUD)

• NSP State and Local Action Plans (12/2008)
• HOPE for Homeowners Program (10/1/08)
• Neighborhood Stabilization Program (NSP) Procedures and Requirements (9/30/08)
• Neighborhood Stabilization Program Targeting
• Neighborhood Stabilization Program

Other Legislation

• Summary of HERA

Organizations and Coalitions

• Save America’s Neighborhoods Campaign
• National Vacant Properties Campaign
• Stable Communities Web site
• HOPE NOW

Enterprise Community Partners Resources

• Ten Solutions to Improve the Effectiveness of HUD's Neighborhood Stabilization Program - Resource from Enterprise Community Partners (11/25/08)
• Policy Solutions to the Foreclosure Crisis: Past, Present and Future - Resource from Enterprise Community Partners (12/2008)

National Community Stabilization Trust Resources

• National Community Stabilization Trust
• National Community Stabilization Trust: Overview (12/2008)
• National Community Stabilization Trust: Guide for State and Local NSP Recipients (12/2008)

NCB Capital Impact Resources

• How to Use the Neighborhood Stabilization Program for Shared Equity Homeownership - Resource from NCB Capital Impact. (12/2008)
• Long-Term Affordability Template - Resource from NCB Capital Impact.

Land Bank Resources

• Land Bank Authorities: A Guide for the Creation and Operation of Local Land Banks (12/2008)
• Genesee County Land Bank (12/2008)
• Land Banking as Metropolitan Policy (10/28/08)

Additional Resources

• Policy Map - Provided by The Reinvestment Fund, this online mapping tool aids investors applying to HUD for NSP grant dollars in understanding places and considering investment strategies.
• Foreclosure-Response.org - This initiative from the Center for Housing Policy, KnowledgePlex, the Local Initiatives Support Coalition (LISC) and the Urban Institute provides tools for states and localities regarding the use of Neighborhood Stabilization funds.
• Transforming Foreclosed Properties Into Community Assets - Resource from the Furman Center for Real Estate and Urban Policy at New York University (12/2008)
• Foreclosure Update: Over 8 Million Foreclosures Expected (Credit Suisse Report) (12/4/08)
• Position Paper - How To Spend $3.92 Billion: Stabilizing Neighborhoods by Addressing Foreclosed And Abandoned Properties