STATE OF WASHINGTON DEPARTMENT OF COMMERCE

Transcription

1 STATE OF WASHINGTON DEPARTMENT OF COMMERCE 1011 Plum Street SE PO Box Olympia, Washington (360) June 28, 2012 Rich Zwicker, Paralegal Consumer Protection Division Office of the Washington State Attorney 800 Fifth Avenue, Suite 2000 Seattle, Washington Re: Proposal for a National Mortgage Settlement Grant Dear Mr. Zwicker: Commerce is pleased to submit the attached proposal requesting funding from the National Mortgage Settlement Agreement. We believe the attached proposal will stop preventable foreclosures, address neighborhood blight and falling housing prices caused by foreclosures and advance economic recovery in the State of Washington. Commerce proposes using National Mortgage Settlement funds to extend its existing and very successful Neighborhood Stabilization Program. The Neighborhood Stabilization Program is a federally funded program with very similar goals to the National Mortgage Settlement Agreement. The federal funding for this program is set to expire. The program works through local jurisdictions and nonprofit housing providers in areas of the state with the greatest foreclosure needs. By leveraging settlement dollars through this program, Commerce can get the money out quickly to jurisdictions with foreclosure programs that are already up and running. Commerce will provide technical assistance, oversight and reporting to assure program outcomes are achieved. I appreciate your consideration ofthis proposal and look forward to your response. Please do not hesitate to contact me for more information. Sincerely, rector Local Government and Infrastructure Division

2 APPLICATION FOR FUNDS TO HELP WASHINGTON HOMEOWNERS AVOID PREVENTABLE FORECLOSURES OR TO AMELIORATETHE EFFECTS OF THE FORECLOSURE CRISIS I. APPLICANT INFORMATION Organization Name: Washington State Department of Commerce Mailing Address: 1011 Plum Street S.E. City, State, Zip: Olympia, Washington County: Statewide If Tribal, Designate Tribe: n.a. Primary Contact Person: Bill Mandeville, NSP Lead Manager Primary Contact Phone No.: Primary Contact Secondary Contact Person: Corina Grigoras Secondary Contact Phone No.: Secondary Contact II. ORGANIZATION TYPE 501(c)3 nonprofit Tribal Governmental agency III. IDENTIFYING INFORMATION Tax Identification Number (TIN): Uniform Business Identifier (UBI): (DUNS) A. Does your organization currently receive any funding from the AGO? If yes, please identify the date of your last report. No Yes B. Does your organization receive any funding from any other governmental agency for housing related projects or foreclosure related assistance? If yes, list the contracts by title, contract number and funding amount for the past 3 years. No Yes (See Attachment 1) C. Is your organization solely owned/operated by a current state employee? If so, please complete the Ethics Certification process at No Yes

3 Department of Commerce Page 2 National Mortgage Settlement Proposal IV. PROJECT PROPOSAL A. Project Title: NMS Lease/Purchase Foreclosure Remediation Program B. Requested Amount: $18,500,000 C. Project summary: Commerce proposes using National Mortgage Settlement (NMS) funds to expand its existing and successful Neighborhood Stabilization Program (NSP). It wants to offer a Lease-Purchase Program in areas with the greatest foreclosure needs. Commerce will distribute NMS funds through a competitive grant process. Grant recipients must obligate their funds within six months. They will use NMS funds to acquire and rehabilitate foreclosed or distressed properties. They will lease recovered properties to eligible households, or in the case of distressed properties the previous owner, for not less than three years or more than five years. When the lease expires, the tenant may purchase the property. Net proceeds from the resale of recovered properties will become program income. Grant recipients must deposit program income into a revolving loan fund. They must use at least 65% of this program income to recover foreclosed properties. The remaining amount may finance counseling and other foreclosure remediation services. D. Describe how your project meets the criteria set forth in sections I and III above, including estimated start and completion dates. Rising numbers of foreclosed homes, combined with short-sales by distressed homeowners, cause housing prices to fall. Removing a large number of these properties from the housing market will help stop the deflation of home values. Commerce s proposed Lease-Purchase Program strives to accomplish such results in areas with the greatest foreclosure need. Commerce proposes to add the NMS funds to the existing Neighborhood Stabilization Program. In March 2009 Commerce received $28 million of emergency financial assistance from the federal Department of Housing and Urban Development (HUD). These funds were used to recover foreclosed properties and put them back into productive use. Nearly all of these NSP funds have been disbursed. NSP entails a network of communities hardest hit by the foreclosure crisis. Commerce allocated NSP funds to 25 local governments who, in turn, granted the funds to over 30 non-profit housing providers. These jurisdictions and their non-profit partners have foreclosure remediation systems in place that can quickly and efficiently obligate additional funds

4 Department of Commerce Page 3 National Mortgage Settlement Proposal The proposed Lease-Purchase Program represents a new program for NSP. It satisfies several of the criteria for the use of NMS funds. Funding for Housing Remediation and Anti-Blight Properties. The proposed NSP Lease- Purchase Program offers a way to remediate foreclosed or distressed properties. It targets real estate owned (REOs) by banks or property that banks will soon own through foreclosure (i.e., distressed properties). NSP s Lease-Purchase Program provides financing for eligible homeowners to short-sale their homes and continue living in them. It gives previous and potential homebuyers time to refinance their previous home or purchase the leased home. Targeting Populations Harmed by Unfair or Deceptive Mortgage Servicing Practices: Commerce proposes to allocate NMS funds to areas with the greatest need. These areas include communities with higher than average numbers of foreclosed or distressed properties. The target areas have the highest concentrations of foreclosures, delinquent loans, and subprime loans. Many residents were victims of unfair or deceptive mortgage practices. Reaching Underserved Populations: Commerce proposes to allocate NMS funds through a competitive grant process among existing NSP jurisdictions. They will follow the same guidelines used for the NSP program. These guidelines include a requirement that at least 25% of the funds benefit households who earn less than 50% of area median income. Offering the Greatest Benefit per Dollar Spent: Presently approximately one dollar of NSP funds recovers $1.60 of property values. To date NSP s $28 M grant from HUD has recovered nearly $45 million in property values. Providing Geographic Diversity: Commerce used HUD s foreclosure data to locate census tracts with the greatest need for foreclosure remediation (see Attachment 2). It identified 39 census tracts from southwest Washington to Puget Sound. Spokane and Yakima also have a couple of target areas. The proposed Lease-Purchase Program will remediate foreclosure statewide in roughly ten census tracts. Low Administrative Cost: Total administrative cost consumes only ten percent of the proposed grant. Commerce will split the funds allocated for administration with Grant recipients. It will use approximately forty percent of the NMS administrative budget and divide the remaining sixty percent among the remaining, Grant recipients. Demonstrated Success: Commerce achieved great success with its Neighborhood Stabilization Program. NSP recovered over 350 foreclosed and abandoned properties with a property value of nearly $45 million. Almost 40% of the occupants in the recovered properties earn less than 50 percent of median income. The resale of recovered property will generate over $6 million of program income. Many jurisdictions use their program income to create revolving loan funds. These funds assure the continuation of the benefits from after their NSP grant expires at the end of Year Increased Likelihood of Success Loan Remediation: The proposed Lease-Purchase Program provides the financing for distressed property owners to short-sale their properties. Short sales will require the approval of the financial institution holding the owner s loan or mortgage. The participating jurisdiction or non-profit housing provider who purchases the property may lease it back to the previous owner. The previous owner has up to five years to

5 Department of Commerce Page 4 National Mortgage Settlement Proposal refinance the home. The proceeds from the resale of the home goes into a revolving loan fund to purchase-lease-resale other distressed properties. E. Describe the demographics of the consumers you serve. The proposed NMS Lease-Purchase Program would use the eligibility requirements of the Neighborhood Stabilization Program. All activities must benefit households with incomes that do not exceed 120 percent of area median income. In addition, at least 25 percent of the funds must benefit individuals or families whose incomes do not exceed 50 percent of the area median income. Nearly all of the target areas have median incomes equal to or less than the area median income. A large number of the target areas are predominantly low-income neighborhoods. F. Describe the geographic scope of your project. Commerce proposes to allocate NMS funds to areas with the greatest need. These areas include communities with an above average number of foreclosed or distressed properties. They have the highest concentrations of foreclosures, delinquencies and subprime loans. Target areas were derived using HUD foreclosures scores. HUD estimated the number of loans 90 days delinquent or actually in foreclosure for each census tract. They assigned each tract a foreclosure score comprised of three factors: rate of subprime loans, increase in unemployment and deflation of housing values. The resulting score identifies areas with the highest rate of homes financed by a subprime mortgages, loan delinquencies or homes pending foreclosure. Attachment 2 is a list of the proposed target areas. Each target area falls within the boundaries of an existing NSP jurisdiction. The name of the neighborhood corresponds with a key landmark or neighborhood plan. Each neighborhood has a foreclosure needs score. The boundaries of the target area are defined by census tract boundaries. HUD s foreclosure data estimates the number of housing units that need to be recovered in order to make an impact on an area s foreclosure need score. Its estimated minimum impact is based on the number of properties owned by financial institutions (REOs). It presumes the recovery of at least 20% of REOs in the target area needs recovery to make a visible impact on the surround housing market. The table in Attachment 2 presents the minimum number of foreclosed housing units (H.U.) that HUD estimates needs recovery in order to make a noticeable impact. The sum total of all the minimum number of housing units in all the target areas reaches nearly 500 housing units. The estimated cost to recover all these properties is $72.6 million, which greatly exceeds the amount of NMS funds available. Commerce would like to recover approximately 100 foreclosed or distressed homes. This figure represents approximately 20 percent of the above 500 housing units. The number of target areas in which these 100 housing units will likely be located will vary. It will depend on the amount of NMS funds available and the minimum number of housing units required for each target area. Commerce s $18.5 million grant request should enable it to offer the proposed Lease-Purchase Program to around ten target areas

6 Department of Commerce Page 5 National Mortgage Settlement Proposal G. Identify number of consumers expected to serve during the life of this grant. Commerce proposes to use NMS funds to recover initially 100 foreclosed or distressed homes. In turn, the sale of these homes will generate program income that will allow the recovery of even more foreclosed or distressed homes. If these homes turn over every three to five years, then the program started with Commerce s grant could potentially recover 300 homes. Commerce will allocate NMS funds through a competitive grant. Projects will be selected based on the following criteria: Preference will be given to projects that address areas of greatest needs. Preference will be given to projects that increase the likelihood of successful loan modifications, mediations or meet and confer processes. Preference will be given to projects that recover more than the minimum number of housing units needed to make an impact as prescribed in HUD s program data. Preference will be given to projects that leverage other funds, demonstrating partnerships and local commitment. Projects must demonstrate readiness to proceed and ability to obligate its grant funds within six months after the grant award. Projects must show how at least 25% of NMS funds will benefit households or individuals that earn less than 50% of area median income. H. If not a new project, describe what changes are being made to an existing project. By using the existing NSP guidelines and service network, the proposed NMS Lease-Purchase Program will quickly and efficiently get implement. The following are some of the NSP guidelines that describe how the proposed Lease-Purchase will operate. Foreclosed refers to properties with foreclosure proceedings in progress or completed. Distressed properties refer to property owners who are 60 days or more delinquent on their loan or mortgage payment or 90 days or more delinquent on tax payments. Eligible properties may also include foreclosed housing that has been transferred to an intermediary aggregator or servicer. Purchase price of recovered homes must be at least one percent less than the appraised value. Resale price of the home may not exceed the appraised value. Income eligibility limits assistance to households who no more than 120 percent of area median incomes. Each potential homebuyer must receive and complete at least eight (8) hours of homebuyer counseling from a HUD-approved housing counseling agency before obtaining a mortgage or real estate loan

7 Department of Commerce Page 6 National Mortgage Settlement Proposal Up to 20 percent of the purchase price of the property may convert into down payment assistance in the form of a deferred loan. The deferred loan becomes payable when the owner sells the property. In addition, the proposed NMS Lease Purchase Program will require: Properties recovered using NMS funds must become rentals. Unless the tenant purchases them, they must remain off the housing market for a minimum of three years. At least one-third of all acquisitions must derive from the results of a foreclosure mediation process (e.g., short-sales approved by the owner s bank). NMS grant recipients cannot use NMS funds to purchase undeveloped property. NMS grant recipients may use NMS funds to purchase and redevelop foreclosed commercial property into residential property. Grant recipients must establish a revolving loan fund that uses program income from the sale of recovered property for future foreclosure remediation. I. Describe how you will measure net benefits or positive outcomes. In order to obligate the NMS funds within the prescribed timeline, Commerce would enter into performance-based contracts with local jurisdictions currently participating in the NSP program. These jurisdictions may enter into similar contracts with non-profit housing providers. Commerce will monitor these contracts to assure the following net benefits or positive outcomes: Implementation of a marketing plan that targets local banks with large numbers of REOs or foreclosure mediations in progress. Development of a lease-purchase program that assures adequate maintenance of the property and opportunities to purchase the property. Number of recovered foreclosed or distressed properties must exceed the minimum number of housing units required to make an impact. Successful short-sales or loan modifications must represent at least one-third of all acquisitions. At least 25 percent of the recovered properties must benefit households who earn less than 50 percent of area median income. Establishment of a revolving loan fund to assure the continuation of foreclosure remediation for many years after the NMS grant expires. J. Have you applied for an equivalent grant in the past? If yes, to who and when? Commerce received a $28 Million grant from HUD on March 19, It used this grant to create the Neighborhood Stabilization Program (NSP). NSP provides funds to recover foreclosed, abandoned and distressed properties. The initial grant expires on March 19, Commerce received an additional $5 Million in This grant expires in March

8 Department of Commerce Page 7 National Mortgage Settlement Proposal Commerce also offers the Foreclosure Fairness Program. This program was created by the Foreclosure Fairness Act, passed during the 2011 legislative session. It requires lenders to notify borrowers prior to foreclosure of the availability of foreclosure counseling and the potential for mediation. The program allows homeowners to meet with decision makers from their lender and a neutral third party to discuss options to foreclosure. It provides free counseling to help the homeowner understand their options and determine if they are eligible for mediation. K. If you intend to collaborate with other organizations, please provide a letter of support from that organization. Commerce plans to solicit proposals from its existing NSP jurisdictions. It will collaborate with the grant recipient after it completes a competitive procurement process. Commerce currently has NSP grant agreements with 25 local jurisdictions who, in turn, work with over thirty nonprofit housing providers, including Habitat for Humanity. Attachment 3 is a list of the participating jurisdictions and non-profit housing providers who may apply for a grant. L. Please provide an organizational chart for your organization. See Attachment 4 M. Please provide three references familiar with organization s activities and their contact information. Steve Washington, Deputy Director U.S. Dept of Housing and Urban Development 909 First Avenue, Suite 300, Seattle, WA Phone: (206) steven.k.washington@hud.gov Ric Teasley, Housing Division Manager City of Tacoma's Community Redevelopment Authority 747 Market Street, Suite 1036, Tacoma, WA Phone: (253) rteasley@cityoftacoma.org David Murnen, Executive Director NeighborhorWorks of Grays Harbor 710 East Market Street, Aberdeen, WA Phone: dmurnen@aberdeen-nhs.com

9 Department of Commerce Page 8 National Mortgage Settlement Proposal V. PROJECT BUDGET: A. Total Project amount: $18,500,000 Program Administration and Development Project Budget % Total -- Department of Commerce Salaries and Benefits $648,750 Goods and Services $10,000 Travel and Training $15,000 Administrative Overhead $227,063 subtotal: Commerce $900,813 4% -- Participating Jurisdiction s Program Admin $1,140,000 6% Total: Administration $2,040,813 10% Grants to Local Governments: -- Property Acquisition $14,759,000 70% -- Rehab and Redevelopment $1,875,000 9% -- Transaction Costs and Fees 499,020 2% -- Property Management and Remediation Services 1,826,168 9% Total: Grants $18,099,187 90% Total Expenditures: $21,000, % Source of Funding: -- National Mortgage Settlement $18,500,000 92% -- Rental Income: $2,500,000 8% Total: $21,000, % Assumptions: All costs are based on the actual, average cost of the existing Neighborhood Stabilization Program. The project budget for the NMS Program uses the following assumptions: The NMS Program will last for five years. Contracted services represents costs during the first two years of the program. Program income from the sale or repurchase of homes will occur at the end of five-years; and, therefore, it is not represented in the proposed budget. Rental income uses an average rent of $600 per month. Approximately 60% of rental income will be used to manage and maintain the units. Salaries & Benefits will average $86,000 per FTE. Administrative Overhead is based on Commerce's current rate of 35% of personnel costs The NMS Program will recover and lease approximately 100 properties at an average cost of $142,000 per housing unit. Approximately half of the recovered properties will need some type of repair at an average cost of $25,000 per property. Transactions costs include closing fees, attorney fees and utilities

10 Department of Commerce Page 9 National Mortgage Settlement Proposal B. What percent of your total project budget does this funding request represent? If awarded the proposed NMS Lease-Purchase Program, Commerce will use the funds to increase the total NSP budget. Presently NSP has approximately 2.50 FTE designated to manage it. The NMS Lease-Purchase Program will require an additional 1.00 FTE. In order to expedite the delivery of the program, Commerce would assign program administration to the existing NSP staff. The allocation of staff time will change to reflect the additional duties to implement the NMS Lease-Purchase Program. NSP s total FTE will increase from 2.50 FTE to 3.50 FTE. NMS funding would pay for the additional 1.00 FTE. The following table summarizes the NSP Program Budget. The budget for NSP represents the program since its inception. Total Program Budget with Proposed NMS Funding (2009 to June 15, 2012) NSP-1 Program Admin % Total Budget Disbursed Balance (Contract # B-08-DN ) Budget -- Program Administration 1,407, , , % -- Grants to Local Jurisdictions 26,751,331 25,764, , % NSP-3 Program Admin (Contract # B-11-DN ) Subtotal: NSP1 28,159,295 26,579,250 1,580, % -- Program Administration 164, , % -- Grants to Local Jurisdictions 4,835,500 1,708,984 3,126, % National Mortgage Settlement Program Subtotal: NSP3 5,000,000 1,708,984 3,291, % Total: NSP 33,159,295 28,288,234 4,871, % -- Program Administration 1,942,750 1,942, % -- Grants to Local Jurisdictions 16,557,250 16,557, % Total: NMS 18,500,000 18,500, % Total budget: NSP & NMS Programs -- Program Administration 3,515, ,480 2,700, % -- Grants to Local Jurisdictions 48,144,081 27,473,753 20,670, % Total Budget: All Programs 51,659,295 28,288,234 23,371, %

11 Department of Commerce Page 10 National Mortgage Settlement Proposal C. If the project will be funded in part from other sources, identify those sources and the funding amounts. The NMS Lease-Purchase Program represents a new product or activity for the Neighborhood Stabilization Program. No NSP funds will pay for NMS activities and vice versa -- no NMS funds will pay for NSP activities. VI. PROJECT ADMINISTRATION A. Identify within your organization who will be directly responsible for the following project components: (a) Administration: F.W. Bill Mandeville, AICP, serves as the Lead Manager of the Neighborhood Stabilization Program. Mr. Mandeville is a professional urban planner and a member of the American Institute of Certified Planners (AICP). He has over thirty years of experience in state and local government. He was the administrator of CDBG programs for an entitlement community prior to working for the State of Washington. Mr. Mandeville has successfully completed several dozen housing and community development projects. He developed Washington s Neighborhood Stabilization Program in 2009 and managed it ever since. (b) Fiscal: Genny Matteson serves as the NSP s Fiscal Manager. She began working in NSP in February She has over ten years of experience working with various state and federal grant and loan programs. Genny has a Masters in Business Administration with a concentration in finance and marketing. (c) Service Delivery: Corina Grigoras serves as NSP s Contracts Manager. She has over ten years of experience in both the public and private sectors in contract management. Corina leads the unit in the development and implementation of its performance based contracts. She is very adept at drafting, negotiating and implementing contracts of all types and sizes. Corina has a Bachelor of Arts in Business Administration. * Attached are current resumes for the agency director and the lead project staff. Also attached is the agency s current organizational chart. B. Describe what steps your organization will take to ensure that the project will serve its intended purposes and completed on time. By adding the proposed NMS Lease-Purchase Program to the existing Neighborhood Stabilization Program, Commerce can quickly develop and implement the program. Commerce will solicit proposals from its NSP jurisdictions and non-profit housing providers. Since the NSP jurisdictions have experience in these types of programs, they can develop and submit a proposal within thirty days. They understand Commerce s performance based contracts. Commerce will have executed contracts within three months after grant award. The NSP jurisdictions and non-profit housing providers currently collaborate and work with their local lending institutions. They can quickly identify REOs and obtain lists of homeowners

12 Department of Commerce Page 11 National Mortgage Settlement Proposal currently going through foreclosure remediation. Within six months, they should have individual properties identified and a process in place to offer remediation loans. Participants may need to repair or remodel some recovered property. In any event, tenants will take residency of the recover homes within six to nine months after property acquisition. The proposed NMS Lease-Purchase Program will span five years. During the first two years, the program will focus on property acquisition, foreclosure remediation and occupancy. During the second and third years, the program will focus on developing and implementing revolving loan funds and helping tenants purchase the NMS properties. During the remaining years, the program will focus on capitalizing and recirculating the revolving loan funds. NMS Lease-Purchase Program Projected Timeline Program Startup Develop an RFP Solicit Proposals & Award Contracts Implement Marketing Plan Outreach to Local Banks Outreach to Local Realtors Acquire and Repair Properties Acquire properities Make necessary repairs Occupancy Finalize short sale agreements Execute lease agreemetns Solicit tenants for remaining units Disposition of Properties Establish Revolving Loan Funds Provide Homeownership Classes Help tenants purchase properties Recirculate Revolving Loan Funds Repeat all of the above Year 1 Year 2 Year 3 Year 4 Year 5 C. Describe how you plan to measure, evaluate the success of your project, and include samples of evaluation tools if available. Program staff will prepare quarterly reports. These reports will track the number, type and disposition of recovered properties. It will provide detailed financial statements. The report will include a summary of activities in each target area. The following link provides access to the quarterly progress reports currently prepared for the Neighborhood Stabilization Program

13 Department of Connnerce Page 12 National Mortgage Settlement Proposal VII. CERTIFICATION I certify that I have the authority to submit this proposal, and that the information in this proposal is true and accurate. If my organization is faith-based, I understand that federal and state law prohibit the use of public funds for religious worship, exercise, instruction or support of any religious establishment. I understand that my organization will not receive reimbursement for any costs incurred in preparing this proposal. If awarded funding, I understand that our proposal will be incorporated into the final contract. Karen J. LarK!, istant Local Govennne t and In Date:

14 ATTACHMENT 1 INFORMATION REGARDING OTHER HOUSING RELATED PROJECTS AND FORECLOSURE ASSISTANCE PROGRAMS OFFERED BY THE DEPARTMENT OF COMMERCE Source: 2012 Commerce Resource Book Link:

15 Commerce Federal Program Summary Community Services and Housing Division Justice o Violence Against Women Formula Grants o Justice Assistance Grants o Grants to Encourage Arrest Policies and Enforcement of Protection Orders o Victims of Crime Act; and Victim Witness Academy o Safe and Drug-Free Schools and Communities State Grants Health and Human Services o Community Services Block Grant o Low-Income Home Energy Assistance Housing and Urban Development o HOME Program o American Dream Downpayment Initiative o Tenant Based Rental Assistance o Bonneville Power Administration o Emergency Shelter Grants Program o Housing Opportunities for Persons with AIDS o Lead Hazard Control Grant o Supportive Housing Program Energy o Weatherization Assistance for Low-Income Persons o Energy Efficiency and Renewable Energy Information Dissemination, Outreach, Training and Technical Analysis/Assistance Health and Human Services o Low-Income Home Energy Assistance Innovation and Policy Priorities Division Energy o State Energy Program o USDOE Master Agreement Local Government Infrastructure Division Housing and Urban Development o Community Development Block Grants/State s Program o Small Communities Initiative o Neighborhood Stabilization Program EPA o Puget Sound Regional Council Transfer of Development Rights o Brownfields Assessment and Cleanup Cooperative Agreements Administrative Services Division Cost Allocation Indirect Collection Commerce Budget Office As of November 1,

16 Community Services and Housing Division by Unit and Program Office of Crime Victims Advocacy (OCVA) Victim Witness Stop Grant Grants to Encourage Arrests Domestic Violence Legal Advocacy Prostitution Prevention/Intervention Victims of Crime Act ARRA-VOCA Admin FFY09 Sexual Assault Formula Grant Smart Grant Community Economic Opportunities Family Prosperity Account Community Services Block Grant MSC Legislative Mandate Community Voic Long Term Care Ombudsman Adult Family Home-LTCO Reemployment Support Centers Retired Senior Volunteer Program Low Income Energy Assistance Program Workfirst IAG Community Jobs Individual Development Account WA New Americans Program Public Safety Safe & Drug Free Schools Community Mobilization Community Mobilization-Private Local Financial Fraud & Identity Theft State Drug Task Force Justice Assistance Grants Project Safe Neighborhoods Forensic Science Improvement ARRA-Justice Assistance Grant Dispute Resolution Centers Foreclosure Mediation CSHD Operations Community Services & Housing Operations Housing Finance Housing Trust Fund Loan Repayment Resource Allocation & Contract Management Asset Management & Compliance Admin and Monitoring Fee Activities Operations & Maintenance MaCarthur Foundation Grant Mortgage & Rental Assistance Grant IAG DSHS Traumatic Brain Injury Farmworker Housing Support Housing Improvements and Preservation Low Income Energy Assistance Program Department of Energy AOP Regional Department of Energy Weatherization Bonneville Power Administration Matchmaker Lead Base Paint Lead Hazard Control Weatherization Match Manufactured Housing Program Housing Assistance Supportive Housing Program Homeless Family Shelters Trans Housing Operating/Rental Emergency Shelter Homelessness Prevention Program Emergency Shelter Grant Program Homeless Housing Independent Youth Housing Program ARRA 09 Homeless Prevention Fund Homeless Assistance Reach FFY11 Housing and Essential Needs Housing Opportunity for Persons with AIDS Housing Assistance for Mental Illness Tentative Based Rental Assistance Home Invest Partnership Program Home Commerce Admin Capital Program On Farm Housing Matchmakers Non Taxable Bonds Housing Trust Fund ARRA Department of Energy Weatherization Taxable Bonds Special Projects Child Care Facility Admin Belfair Sewer Improvements Proviso Reappropriations Building for the Arts Youth Recreational Facilities Local and Community Projects Community Development Community Schools Program Building Communities Longview Regional Water Treatment Plant Quincy Water Treatment System Jobs Act K-12 Public Schools/Higher Education Contracts Admin Unit Commerce Budget Office As of November 1,

17 Asset Building Encouraging long-term saving and investment leading to financial independence Purpose Since 2006, Commerce has worked with an array of private, public, and non-profit organizations to improve financial skills for low- and moderate-income families that lead to greater financial independence. Commerce supports those efforts by contracting with local Assert Building Coalitions to provide Earned Income Tax Credit (EITC) outreach and marketing, free tax preparation, foreclosure prevention services, credit counseling, small business training, financial literacy classes, and banking products. Strategic Goal Mobilize and enhance local assets that strengthen a community s ability to meet the economic and social needs of Washington s families, workers, and employers. Fast Facts State funds allow financial institutions, community action and social service agencies, microenterprise, housing, United Ways, and local government agencies to work together to achieve financial independence for working low-income families. Results and Achievements The 2011 EITC outreach and free tax preparation campaign resulted in more than $847 million in federal EITC credits for Washington residents. More than 75,000 tax returns were prepared for free at 235 sites Contact Information Diane Fay Program Manager diane.fay@commerce.wa.gov across Washington. Several counties launched successful Bank On initiatives which resulted in 12,324 new checking and savings accounts. In addition, Bank On Washington was formed to coordinate local efforts. Foreclosure prevention events in King, Pierce, and Snohomish counties helped more than 2,000 families. Services EITC promotion and voluntary tax filing assistance Financial education, marketing, training, and coordination Lowering the costs of financial services and products, and improving bank account and savings rates for low-income households Developing microenterprise programs Updated November

18 Emergency Shelter and Homeless Prevention Program Supporting Washington s homeless shelters and support services Purpose The Emergency Shelter and Homeless Prevention (ESHP) Program provides funding to counties to support the operating costs of emergency shelters; and homelessness prevention and case management services to individuals and families who are homeless or at risk of becoming homeless. Beginning in 2012, funding for this program will become part of the new Consolidated Homeless Grant, which combines state homeless resources into a single grant opportunity. The Consolidated Homeless Grant is designed to support an integrated system of housing assistance to prevent homelessness and quickly re-house households who are unsheltered. Strategic Goal Mobilize and enhance local assets that strengthen community ability to meet the economic and social needs of Washington s families, workers and employers. Results and Achievements During state fiscal year 2011, organizations receiving ESHP funds: Served 36,178 individuals and families with emergency shelter and services. Provided more than 1,285,182 bed nights of shelter. Services ESHP funds can be used for: Fast Facts The program provides shelter and case management to more than 26,912 households annually. State funds are primarily targeted to Washington s rural and medium-sized communities. Statutory Authority ESHP funded by the Homelessness Housing and Assistance Act (43.185C RCW) and by federal Emergency Shelter Grant funds authorized under the provisions of the Stewart B. McKinney Vento Homeless Assistance Act (42 U.S.C ) Contact Information Bruce Yasutake Program Manager bruce.yasutake@commerce.wa.gov Shelter operations and case management for residents. Operations include utilities, maintenance and supplies. Prevention assistance and case management for individuals and families at risk. Assistance includes rent or mortgage subsidies, security deposits, screening fees, landlord mediation, and utility payments. Updated November

19 Farmworker Housing Supporting Washington s agricultural economy through safe housing options for workers Purpose The Farmworker Housing set-aside within the Housing Trust Fund provides loans and grants for the development of community-based housing for migrant and seasonal farmworkers. Strategic Goal Mobilize and enhance local assets that strengthen community ability to meet the economic and social needs of Washington s families, workers and employers. Results and Achievements Since 1999, Commerce has committed $98.4 million in state and federal resources to farmworker housing. Investments in multi-family housing, homeownership assistance, seasonal camps, and on-farm housing have resulted in: 1,332 units of year-round housing 9,133 seasonal beds 12,059 bed nights of emergency shelter for homeless migrant workers Fast Facts The state s $42 billion food/agriculture industry employs 160,000 people and contributes 13 percent to the state s economy. (Washington State Department of Agriculture, 2009) The average income for a farmworker family is $17,000/year. This is only 35 percent of the state median income. (Washington State Farmworker Housing Trust) Services The Farmworker Housing Program provides loans and grants to local governments and nonprofit organizations for: Capital investments in permanent (year-round) housing Capital and operating investments in seasonally-occupied housing Emergency assistance for homeless migrant workers The program also provides technical assistance to growers, local governments, and nonprofit organizations on the development of seasonal housing for migrant workers. Statutory Authority RCW and (A) The Farmworker Housing setaside was established through a legislative proviso to the Housing Assistance, Weatherization, and Affordable Housing, Housing Trust Fund portion of the capital budget in Contact Information Janet Masella Housing Trust Fund Unit janet.masella@commerce.wa.gov Updated November

20 Foreclosure Fairness Program Reducing residential, owner-occupied foreclosures in Washington State Purpose The Foreclosure Fairness Program addresses the unprecedented rise in foreclosure rates by strengthening communication between lenders and homeowners to avoid foreclosure whenever possible. The program provides foreclosure counseling to homeowners and offers mediation when counseling is not successful. Strategic Goal Mobilize and enhance local assets that strengthen community ability to meet the economic and social needs of Washington s families, workers and employers. Results and Achievements The Foreclosure Fairness Act became law July 22, As of October 20, 2011: The number of housing counselors in Washington State has doubled from 45 to 90. More than 200 foreclosure mediators have been trained. More than 600 homeowners have been referred to mediation. Services Foreclosure Fairness Program Funds provide: Fast Facts Funding is provided by a $250 fee from lenders for every Notice of Default. More than half of the foreclosure mediators are volunteers or employees of Dispute Resolution Centers. Statutory Authority RCW Relating to protecting and assisting homeowners from unnecessary foreclosures Contact Information Valerie Grigg Devis Program Manager valerie.griggdevis@commerce.wa.gov Legal assistance to low-income homeowners. Free foreclosure counseling. Pre-purchase and post-purchase homeowner education. Updated November

21 HOME-General Purpose Program Creating and preserving safe, decent and affordable housing Purpose The federal HOME General Purpose Program supports the construction and acquisition or rehabilitation of affordable housing units. Strategic Goal Mobilize and enhance local assets that strengthen community ability to meet the economic and social needs of Washington s families, workers and employers. Results and Achievements These funds have preserved or increased the stock of affordable housing in Washington from 1992 to July 2011 by 3,566 units with more than $92 million. This investment has leveraged more than $300 million in private and public sector support. Services Key program elements include: Creating and preserving affordable rental housing projects categorized as permanent, transitional, manufactured housing communities and/or supportive housing projects that serve people who are homeless or have special needs and have incomes at or below 50 percent of the local average median income (AMI). Serving households that include families, at-risk youth and children, senior citizens, farmworkers, and people with chronic mental illness. Helping communities by preserving valuable investments in housing stock through rehabilitation of existing structures. Preventing dislocation of low-income households by preserving properties losing their federal subsidies. Enhancing programs and services of the Department of Social and Health Services and the Department of Health by creating housing for populations that receive their services. Fast Facts The HOME portfolio includes more than 142 low-income rental housing properties statewide. HOME Program resources are used for tenant-based rental assistance acquisition, new construction and rehabilitation of affordable housing units, manufactured housing community preservation and development. Statutory Authority The HOME General Purpose Program is funded through the HOME Investment Partnerships Program authorized under Title II of the Cranston-Gonzalez National Affordable Housing Act, as amended. HOME is administered by the U.S. Department of Housing and Urban Development (HUD). Program regulations are at 24 CFR Part 92. Contact Information Doug Hunter Program Manager doug.hunter@commerce.wa.gov Updated November

22 Home-Tenant Based Rental Assistance Program Providing rental assistance to the most vulnerable and low-income families Purpose The Home-Tenant Based Rental Assistance (TBRA) program provides rental assistance funding to non-profits, local governments, and housing authorities so that people who are homeless or have very low incomes are able to live in a neighborhood of their choosing, at a price they can afford. Strategic Goal Mobilize and enhance local assets that strengthen community ability to meet the economic and social needs of Washington s families, workers and employers. Results and Achievements During state fiscal year 2011: 1,130 households with 2,172 individuals were provided with housing assistance. 67 percent of those assisted (755) were homeless households representing some of the most vulnerable populations in need of affordable housing. 346 households were able to procure permanent housing with the assistance of TBRA. Rent subsidies ensure that a family does not spend more than 30 percent of their income for housing, making them less vulnerable to homelessness. The federal Section 8 voucher program provides similar rental subsidies to low-income households; however, demand often exceeds the supply of vouchers. Many low-income people on long waiting lists for Section 8 are assisted first by the TBRA program. Services People served by TBRA can receive: Fast Facts Currently administered in 22 counties in the state. 217 households received deposit assistance enabling them to procure permanent housing. Statutory Authority TBRA is one of the programs funded through the HOME Investment Partnerships Program authorized under Title II of the Cranston-Gonzalez National Affordable Housing Act, as amended. Funds are provided to the State by the U.S. Department of Housing and Urban Development (HUD). Program regulations: 24 CFR Part 92. Contact Information Mollie Gaspar Program Manager mollie.gaspar@commerce.wa.gov Rent assistance Security deposits Utility deposits Updated November

23 Housing and Essential Needs Housing and other support for individuals who are homeless or at risk of homelessness Purpose Housing and Essential Needs is designed to prevent homelessness for currently housed eligible people by assisting with rent/utility payments, and to house eligible homeless clients. Housing and Essential Needs provides rental assistance, utility assistance and essential needs for eligible individuals who are Medical Care Service recipients. The Department of Social and Health Services determines Medical Care Service eligibility. Rent or utilities are paid directly to landlords or utility providers. This is one of three new programs created in HB 2082 (2011) which terminated the Disability Lifeline program. Strategic Goal Mobilize and enhance local assets that strengthen community ability to meet the economic and social needs of Washington s families, workers and employers. Results and Achievements Fast Facts The program provides rent and utility payments on behalf of eligible homeless and at-risk clients. Assistance may also include personal hygiene items, cleaning supplies and bus passes. Housing and Essential Needs assistance is provided by an existing statewide network of homeless and housing providers. During the state fiscal year 2012, organizations receiving Housing and Essential Needs funds anticipate serving 9,900 individuals with rent and utility payments. Statutory Authority RCW C Services Housing and Essential Needs funds can be used for: rent, utilities, (limited to electricity, natural gas, sewer, water and garbage services), security and utility deposits. Assistance may also include personal health and hygiene items, cleaning supplies and bus passes. Contact Information Kathy Kinard Program Manager kathy.kinard@commerce.wa.gov Updated November

24 Housing Assistance for Persons with Mental Illness Supporting permanent housing for mentally ill people in Pierce county Purpose The Housing Assistance for Persons with Mental Illness (HAPMI) program provides operating assistance to projects that provide housing for mentally ill persons in Pierce county to ensure that housing is safe and affordable and services are easily accessible. The fund also pays for security or utility deposits so that mentally ill persons are able to move to semi-independent or independent living, greatly improving their quality of life. Strategic Goal Mobilize and enhance local assets that strengthen community ability to meet the economic and social needs of Washington s families, workers and employers. Results and Achievements During state fiscal year 2011, organizations receiving funds: Filled the operating and maintenance gaps of 26 units in the county, ensuring the ongoing availability of affordable housing for people recovering from mental illness. Assisted 158 low-income persons. Services Fast Facts Persons with Section 8 vouchers are not able to easily access housing if they don t have the resources to pay for damage, security or utility deposits. HAPMI helps fill this gap. The program provides funding to four organizations in Pierce county. Statutory Authority RCW (5) Requires the state Department of Revenue to make 12 annual transfers of a portion of the Pierce County Metropolitan Park District s Sales and Use Tax to Commerce HAPMI funds provide: Contact Information Security, damage and utility deposits for clients needing housing. Operating support, including the cost of property management, Mollie Gaspar Program Manager mollie.gaspar@commerce.wa.gov maintenance, janitorial, security, repairs, heat, electricity, water and sewer, garbage, furnishings, and insurance for projects that house mentally ill persons. Updated November

25 Housing Opportunities for People with AIDS Providing housing assistance to persons with HIV/AIDS and their families Purpose The Housing Opportunities for Persons with AIDS (HOPWA) program provides housing assistance and support services to low-income people with HIV/AIDS and related diseases, and their families (except in King and Snohomish counties, who have their own programs). This support helps prevent homelessness, stabilizes current housing situations, and assists people in accessing healthcare and other support. Strategic Goal Mobilize and enhance local assets that strengthen community ability to meet the economic and social needs of Washington s families, workers and employers. Results and Achievements During state fiscal year 2011, organizations receiving funds: Provided housing assistance to 379 eligible individuals. Assisted 377 persons to have contact with a primary health care provider. Services Fast Facts Once housing is secure, clients are able to follow through on their health care treatment plans. Assists 154 households with long-term rent assistance annually. Statutory Authority HOPWA is a federally funded program from the U.S. Department of Housing and Urban Development (HUD) authorized under the provisions of the AIDS Housing Opportunity Act, 42 USC Sec et.seq. and HUD Grant WAH Contact Information Mollie Gaspar HOPWA funds can be used for: Program Manager Housing, rental assistance, supportive services and program planning and development costs. mollie.gaspar@commerce.wa.gov Acquiring, rehabilitating or constructing community residences and Single Room Occupancy units. Operating and maintaining facilities and community residences; and short-term payments to prevent homelessness. Updated November

26 Housing Trust Fund Asset Management and Compliance Creating and preserving safe, decent and affordable housing Purpose To achieve project affordability and sustainability for the entire period of the Housing Trust Fund (HTF) agreement, even as local market conditions change, and to build organizational capacity of HTF project sponsors so they can be strong, long-term partners with the Housing Trust Fund. Strategic Goal To mobilize and enhance local assets that strengthen community ability to meet the economic and social needs of Washington s families, workers and employers. Results and Achievements Fast Facts Asset managers currently oversee about 1,200 multi-family and home ownership projects. Annual report review analysis resulted in technical assistance designed to increase portfolio performance. Made enhancements to the new Web-Based Annual Reporting System and continued to train contractors on its use. In 2010, 98 percent of contractors entered the required comprehensive rent roll data, Statutory Authority demographics, project income and expense numbers, along RCW and A with debt payments and reserve balances. Housing Assistance Programs Completed 40 project workouts in 2010, and 19 during the first nine months of Services Loan and grant servicing and workout activities through the 40-year compliance period in coordination with other public funders. Assessment of contractor capacity and performance through annual financial reviews and review and analysis of annual report data. Contact Information Janet Masella Housing Finance Unit janet.masella@commerce.wa.gov Dan Riebli Housing Finance Unit dan.riebli@commerce.wa.gov One-on-one technical assistance to contractors on annual report data entry and on issues noted during annual report reviews. Direct technical assistance to contractors to address asset and property management issues. Facilitation of transfer and sale of properties. Property inspections and client data monitoring to ensure properties are properly managed and maintained, provide healthy and safe living environments, and comply with contract terms. Updated November

27 Housing Trust Fund Operating and Maintenance Fund Support sustainable housing facilities for extremely low-income residents Purpose The purpose of the funds is to support operating and maintenance costs of housing projects, or units within housing projects, that are affordable to extremely low-income persons with incomes at or below 30 percent of the area median income and which require a supplement to rent revenue to cover ongoing operating expenses. Strategic Goal Mobilize and enhance local assets that strengthen community ability to meet the economic and social needs of Washington s families, workers and employers. Results and Achievements Preserved 2,013 units to date in the Housing Trust Fund portfolio as safe, decent and affordable units. Through the five-year Rent Buy-Down Program, 494 units were bought-down from a higher rent level, increasing the availability of units to extremely low-income households. Supported housing projects in nearly every county across the state, helping to stabilize approximately 4.5 percent of the Housing Trust Fund units available to low-income households. Services Funds are provided to assist Housing Trust Fund projects cover operating expenses, including the cost of: Property management Maintenance Janitorial Security Repairs Utilities Administrative expenses Insurance Advertising Capital needs assessment Operating reserves Replacement reserves Fast Facts Revenue is generated through a $10 surcharge on document recording fees. Operating subsidies currently support 106 projects across the state: o 13 shelters o 23 transitional projects o 2 farmworker projects o 1 mobile home park o 67 multi-family projects Statutory Authority RCW County auditors retain five percent of the revenue collected from a document recording fee. Of the remaining amount, 60 percent is used in the county for low-income housing activities and 40 percent is sent to the state treasurer for the O&M program. Contact Information Janet Masella Housing Finance Unit janet.masella@commerce.wa.gov Updated November

28 Housing Trust Fund Resource Allocation and Contracting Creating and preserving safe, decent and affordable housing Purpose The Housing Trust Fund (HTF) supports community efforts to ensure the availability of safe, decent and affordable housing by providing loans and grants for construction, acquisition and rehabilitation of low-income multifamily and single-family housing. Strategic Goal Mobilize and enhance local assets that strengthen community ability to meet the economic and social needs of Washington s families, workers and employers. Results and Achievements Since 1989, the Housing Trust Fund has: Invested approximately $900 million in new and improved housing. Leveraged more than $3 billion in private and public sector support. Improved or increased the stock of affordable housing in Washington by approximately 38,000 units. Services Key program elements include: Creating rental and homeownership opportunities in every region of the state for people with incomes of 80 percent of median income and below. Serving households that include families, at-risk youth and children, senior citizens, farmworkers, and people with chronic mental illness. Fast Facts Current demand for Housing Trust Fund dollars is approximately four times available funds. The HTF portfolio includes more than 1,200 low-income housing properties statewide. The Housing Trust Fund has invested in projects in 38 of 39 Washington counties. Statutory Authority RCW and A Housing Assistance Programs Contact Information Janet Masella Housing Trust Fund Unit janet.masella@commerce.wa.gov Enhancing programs and services of the Department of Social and Health Services, Department of Corrections, and Department of Veterans Affairs by creating housing for populations that receive their services. Assisting low-income homebuyers with down payments to purchase their first homes. Helping communities by preserving valuable investments in housing stock through rehabilitation of existing structures; and preventing dislocation of low-income households by preserving properties losing their federal subsidies. Updated November

29 Independent Youth Housing Program Moving foster youth to permanent housing and sustainability Purpose The Independent Youth Housing Program (IYHP) provides rental assistance and case management to eligible youth who have aged out of the state dependency system. The program assists in meeting the state goal of ensuring that these youth avoid homelessness by having access to decent, appropriate, and affordable housing. Strategic Goal Mobilize and enhance local assets that strengthen community ability to meet the economic and social needs of Washington s families, workers and employers. Results and Achievements Fast Facts Five local grantees serve eligible youth in Benton, Franklin, Lewis, King, Pierce, Spokane, Thurston, and Yakima counties. Statutory Authority RCW 43.63A.305 During state fiscal year 2011: Contact Information Cheryl Bayle Program Manager 126 youth received housing assistance percent of 32 youth exiting the program exited to permanent cheryl.bayle@commerce.wa.gov housing; 89 percent of those were to unsubsidized permanent housing. Of exiting youth, 34 percent experienced an increase in income from entry to exit. 60 percent of participating youth were either enrolled in educational programs at entry or were enrolled during program participation. Six of the 76 youth enrolled in educational program obtained a degree while in the program. Services Eligible youth ages 18 to 23 served by IYHP can receive: Rent assistance Security and/or utility deposits Case management services Youth exiting from the state dependency program are particularly vulnerable to homelessness. IYHP provides the stability of assured, decent housing while making services available that help young people gain skills for economic independence and self-sufficiency so that they are better able to overcome the challenges of living on their own. Updated November

30 Individual Development Accounts A matched savings program for low income families to invest in their economic security Purpose The Individual Development Account program (IDA) helps low-income Washington residents invest in home ownership, a small business, education, a computer, a car, home improvements, and assistive technology by creating matched savings accounts. Strategic Goal Mobilize and enhance local assets that strengthen a community s ability to meet the economic and social needs of Washington s families, workers, and employers. Results and Achievements The IDA successfully used state funds to leverage additional private and federal funds. The IDA funded two successful pilot programs serving people with disabilities and foster teens. Services Commerce contracts with four local service providers to administer the IDA program in Spokane, Grant, Adams, Lincoln, Kittitas, Chelan, Douglas, Cowlitz, Clark, Lewis, and Pierce counties. Fast Facts State funds allow a 1:1 match rate of up to $4,000 of earned income for qualified assets. Participants are allowed up to four years to save and purchase an asset. Statutory Authority RCW SEED Act Contact Information Diane Fay Program Manager diane.fay@commerce.wa.gov Service providers recruit eligible account holders, train and counsel them on financial literacy, approve purchases, and ensure performance outcomes and policy compliance. Updated November