State of Kansas Neighborhood Stabilization Program. Proposed Amended Action Plan Disaster Damage

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1 State of Kansas Neighborhood Stabilization Program Proposed Amended Action Plan Disaster Damage A. AREAS OF GREATEST NEED On July 30, 3008, Congress passed the Housing and Economic Recover Act (H.R.3221). This act is being implemented by the U.S. Department of Housing and Urban Development (HUD) as the Neighborhood Stabilization Program (NSP). Through this program governmental or non-profit entities will be authorized to purchase foreclosed properties from bank and/or other financial institutions. Said properties would, if necessary, be rehabilitated, and then sold to financially qualified individuals or families. Thus achieving the main aim of HERA that being to reduced or eliminate the foreclosure crises in America. The purpose of this Action Plan update is to implement the Neighborhood Stabilization Program. The idea behind this program is multifold. First, Banks and other lending institutions will have the opportunity to divest themselves from homes they hold due to foreclosure. Second, new homeowners who are at least 120 percent of area median income (AIM) will be given a chance to own a home at a discount. Third, local communities will receive the benefit of having once abandoned properties being utilized as family homes. Fourth, any property bought under NSP will serve, in part, persons or families earning less than 50 percent of AIM. These goals when combined will go a long ways to reviving neighborhoods and set the housing market on a road to recovery. The Kansas Action Plan has identified 21 Counties with the highest number of foreclosures to be the area of greatness need. The number of foreclosures of each of these 21 counties as identified in the HUD website was divided by the total foreclosures of all 21 Counties to determine each County s allocation. Each of these 21Counties then did their own needs assessment to determine what their own individual needs were within the 5 eligible uses of NSP funds. These grantees and eligible uses are identified by Grantee Activity number and Activity Title in action plan. Each grantee has a contract that states the NSP grant starts as of April 15, 2009 and completion by September 30, In addition, the contract states the State has a right to review the grantees at the end of 9 months to determine their progress in achieving their goals. If the State determines enough progress has not been achieved, the State reserves the right to reallocate those monies to other eligible counties who are achieving their goals. Of the 21 grantees identified, 17 have agreed to participate in the program. Several of these Counties have sub-awarded their grant to the largest City in their County Recovery Needs All eligible use categories of the NSP program are being utilized by the various Kansas NSP grantees. Each of these grantees are assigned a Grantee Activity Number and identified. In addition, all activity types and budgeted activity costs are broken out by these grantee activity numbers in this action plan. The purchase and rehabilitation of foreclosed properties is by far the largest single eligible use activity being undertaken, approximately 60%. The second largest

2 activity in this program is the redevelopment of vacant and foreclosed property into an eligible NSP use, approximately 15%. Providing financing mechanisms to income eligible purchasers is the next largest use of the funds, approximately 8%. Demolition of abandoned or vacant structures accounts for about 3% of the allocation. At this time a small percentage of the funds will go towards creating and maintaining properties in the land banks. In addition, 10% of the allocation will be utilized for administrative purposes for both the grantees and the State. All funds are not yet allocated to grantees because of some Counties that dropped out of the program at the last minute. These funds will be re-allocated to the other grantees as soon as possible. The Action plan also says the State has the right to re-allocate funds at the end of nine months from those grantees that are not moving rapidly on their projects to those grantees that are. This action plan was amended to reflect 2 grantees that withdrew from the program ( Crawford Co. $287,203 and Jefferson Co $ 213,562 ) and to reassign monies that were previously unassigned. Three grantees received increases ( Ottawa $322,837, Miami Co $15,000, and Wyandotte Co. $ 1,000,000.) The action plan is again being proposed to be amended to reflect the state of Kansas commitment to the city of Junction for $187,787 ( 09-NSP-007 ) as being terminated. The city of Leavenworth ( 09-NSP-011 )will receive an increase of $185,324 and Kansas Dept of Commerce administration increase $2,463. Projected Start Date 4/15/09 Projected End Date 09/30/13 Activities Under Way Activities totals Financing Mechanisms 1,294,175 Purchases/Rehab 12,928,537 Land Banks 855,684 Demolition 477,818 Redevelopment 3,363,568 Admin 2,050,460 Total 20,970,242 Detail Financing

3 grant # Mechanisms Cherokee Co. 09-NSP ,000 Harvey Co. 09-NSP ,000 Johnson Co. 09-NSP ,000 Johnson Co. 25% 09-NSP ,000 Emporia 09-NSP ,000 Hutchinson 09-NSP ,234 Hutchinson 25% 09-NSP ,750 Sedgwick Co. 09-NSP ,500 Sedgwick Co. 25% 09-NSP ,250 Wyandotte Co. 09-NSP ,441 1,294,175 Purchases grant # Cherokee Co. 09-NSP ,528 Cherokee Co. 25% 09-NSP ,548 Arkansas City 09-NSP ,934 Arkansas City 25% 09-NSP ,347 Ottawa 09-NSP ,700 Ottawa 25% 09-NSP ,300 Harvey Co. 09-NSP ,000 Hutchinson 25% 09-NSP ,710 Johnson Co. 09-NSP-010 1,542,839 Johnson Co. 25% 09-NSP ,982 Leavenworth 09-NSP ,440 Leavenworth 25% 09-NSP ,092 Emporia 09-NSP ,249 Emporia 25% 09-NSP ,992 Miami Co. 09-NSP ,000 Miami Co. 25% 09-NSP ,922 Coffeyville 09-NSP ,776 Coffeyville 25% 09-NSP ,803 Sedgwick Co. 09-NSP-018 2,017,748 Sedgwick Co. 25% 09-NSP ,291 Topeka 09-NSP ,435 Topeka 25% 09-NSP ,614 Sumner Co. 09-NSP ,000 Wyandotte Co. 09-NSP-021 1,446,798 Wyandotte Co. 25% 09-NSP ,973

4 Winfield 09-NSP ,935 Winfield 25 % 09-NSP ,347 9,976,303 grant # Rehab Cherokee Co. 09-NSP ,000 Arkansas City 09-NSP ,000 Arkansas City 25% 09-NSP ,000 Ottawa 09-NSP ,700 Ottawa 25% 09-NSP ,700 Johnson Co. 09-NSP ,000 Johnson Co. 25% 09-NSP ,000 Leavenworth 09-NSP ,546 Leavenworth 25% 09-NSP ,092 Emporia 09-NSP ,000 Emporia 25% 09-NSP ,000 Miami Co. 09-NSP ,000 Miami Co. 25% 09-NSP ,000 Coffeyville 09-NSP ,000 Coffeyville 25% 09-NSP ,000 Hutchinson 25% 09-NSP ,000 Sedgwick Co. 09-NSP ,000 Sedgwick Co. 25% 09-NSP ,000 Topeka 09-NSP ,000 Topeka 25% 09-NSP ,000 Wyandotte Co. 09-NSP ,117 Wyandotte Co. 25% 09-NSP ,079 Winfield 09-NSP ,000 Winfield 09-NSP ,000 2,952,234 Land grant # Banks Johnson Co. 09-NSP ,000 Hutchinson 09-NSP ,000 Topeka 09-NSP ,700 Wyandotte Co. 09-NSP-021 6, ,684

5 grant # Demolition Cherokee Co. 09-NSP-002 5,000 Ottawa 09-NSP-006 5,000 Johnson Co. 09-NSP ,000 Leavenworth 09-NSP ,000 Emporia 09-NSP-012 5,000 Miami Co. 09-NSP-013 5,000 Coffeyville 09-NSP ,600 Hutchinson 09-NSP ,593 Sedgwick Co. 09-NSP ,401 Sumner Co. 09-NSP-020 7,534 Wyandotte Co. 09-NSP , ,818 grant # Redevelopment Lawrence 09-NSP ,251 Lawrence 25% 09-NSP ,534 Harvey Co. 09-NSP ,726 Harvey Co. 25% 09-NSP ,311 Leavenworth 09-NSP ,943 Leavenworth 25% 09-NSP ,057 Sedgwick Co. 09-NSP ,244 Sedgwick Co. 25% 09-NSP ,671 Topeka 09-NSP ,794 Sumner Co. 09-NSP ,446 Sumner Co. 25% 09-NSP ,291 Wyandotte Co. 09-NSP ,944 Wyandotte Co. 25% 09-NSP ,356 3,363,568 grant # Admin Cherokee Co. 09-NSP ,801 Arkansas City 09-NSP-003 8,978 Lawrence 09-NSP ,349

6 Ottawa 09-NSP ,600 Harvey Co. 09-NSP ,207 Johnson Co. 09-NSP ,341 Leavenworth 09-NSP ,141 Emporia 09-NSP ,190 Miami Co. 09-NSP ,930 Coffeyville 09-NSP ,293 Hutchinson 09-NSP ,071 Sedgwick Co. 09-NSP ,019 Topeka 09-NSP ,127 Sumner Co. 09-NSP ,386 Wyandotte Co. 09-NSP ,942 Winfield 09-NSP-022 8,978 KDOC 314,554 KHRC 314,553 2,050,460