revision to the down payment assistance program (dpa) funded by the state housing initiative...

Revision to the Down Payment

Assistance Program (DPA)

Funded by The State Housing Initiative Partnership (SHIP)

Program

Presentation Outline

• Overview

• Housing Market Trends

• Downpayment Assistance Program

• Proposed Revisions to the Downpayment Assistance Program

• Action Requested

Presentation Outline

• Overview

• Housing Market Trends

• Downpayment Assistance Program

• Proposed Revisions to the Downpayment Assistance Program

• Action Requested

Overview

State Housing Initiatives Partnership Program (SHIP)

• Established 1992

• Funding source - Documentary Stamp Revenues

• 67 Counties and 48 Municipalities participate

• 5th Largest Recipient of SHIP Funds in the State

• Orange County received $5.2 million for Fiscal Year 2008-2009

– And will receive $0 for FY 2009-2010

Overview

State Housing Initiatives Partnership Program (SHIP) Activities

• Multi-Family Rehabilitation/Construction

• Single Family Rehabilitation/Construction

• Impact Fee Subsidy

• Down Payment Assistance

Presentation Outline

• Overview

• Housing Market Trends

• Downpayment Assistance Program

• Proposed Revisions to the Downpayment Assistance Program

• Action Requested

Housing Market Trends

• July 2007 Metro Orlando reached a record high median sales price of $264,436

• May 2009 the median price of existing homes in Metro Orlando dropped to $130,000

• The last time the median sales price was at this level was in 2002

Housing Market TrendsUnit Availability

2,6182,891

5,186

01,000

2,0003,000

4,0005,000

6,000

Under$119,999

$120,000 -$159,999

$160,000 -$199,999

19,123 Total Listings in Orange CountySource: Orlando Board of Realtors - MLS

June 3, 2009

Presentation Outline

• Overview

• Housing Market Trends

• Downpayment Assistance Program

• Proposed Revisions to the Downpayment Assistance Program

• Action Requested

Downpayment Assistance Program

• First-time income eligible homebuyers

• Property must be located within Orange County excluding City Limits of Orlando

• Homebuyers are required to complete Homebuyer education class

Downpayment Assistance Program

Current Levels of DPA Assistance

Very Low Income $35,000

Low Income $30,000

Moderate Income $20,000

• Average Down Payment Assistance Loan: $25,000

• Average number of households assisted: 325 per year

• Current budget will be expended by early 2010

Downpayment Assistance Program

Downpayment Assistance Program

Year SHIP Allocations

2005-2006 $5,840,038

2006-2007 $7,616,423

2007-2008 $7,688,950

2008-2009 $5,296,978

2009-2010 $0

Presentation Outline

• Overview

• Housing Market Trends

• Downpayment Assistance Program

• Proposed Revisions to the Downpayment Assistance Program

• Action Requested

Proposed Downpayment Assistance Program

• Current affordability level of housing market

• Reduction or elimination in SHIP Funding

• Doing more with less

Proposed Downpayment Assistance Program

Staff recommendation to decrease DPA subsidies

• Conducted consultation with industry providers

• Affordable Housing Advisory Board (AHAB) approved the recommendation on May 27, 2009

Decrease the maximum level of assistance

under the Down Payment Assistance Program

Income Level From To

Very Low Income $35,000$25,00

0

Low Income $30,000$17,50

0

Moderate Income

$20,000$

5,000

Proposed Downpayment Assistance Program

Presentation Outline

• Overview

• Housing Market Trends

• Downpayment Assistance Program

• Proposed Revisions to the Downpayment Assistance Program

• Action Requested

Action Requested

Approval of a revision to the State Housing Initiative

Partnership (SHIP) Program to decrease the level of assistance

under the Down Payment Assistance Program (DPA).