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NEA _d ci A ab Describe how the areas of greatest need were established and whether a tiered approach is being utilized to determine the distribution of funding. Response: In 2009, Indian River County received $4.6 million in NSP1 funding from the Florida Department of Community Affairs to purchase and rehabilitate residential housing units and sell or rent those housing u nits to income qualified households. The target area for the NSP1 funds included most of the u rbanized mainland portion of the County (west of the Indian River Lagoon). Together with two n onprofit housing partner organizations, the County used a large share of its NSP1 funds to purchase and rehab housing units in the northern and central parts of the County. Most of the housing units acquired with NSP1 funds were relatively new and were large 3 and 4 bedroom homes. The prices of those homes were as high as $159,000. Because newer large homes can be costly and because the County's NSP3 funding allocation is much less than the NSP1 funding allocation, the County feels that it can achieve more with NSP3 funds by focusing on other less costly areas of the County. Further, statistics for the areas where the County has focused much of its NSP1 funding show that, although those areas have been significantly impacted by the housing crisis, the percentage of foreclosures and percentage of homes financed by sub -prime related loans are less within these areas than in areas in the southern portion of the County where NSP3 activities are proposed. Using the HUD Target Area Mapping website, County staff drew several possible target areas in the southern area of the County where a potential NSP3 nonprofit housing partner (Habitat for Humanity) is already investing its own funds to actively acquire, rehabilitate, and sell properties. Data for these potential target areas were analyzed to identify an area of greatest need. An area was ultimately identified around the "Oslo" area, located south of Oslo Road (9th Street SW), east of 27th Avenue, n orth of 25th Street SW, and west of Old Dixie Highway. According to HUD data, the proposed NSP3 target area (area of greatest need) has an NSP3 NEEDS score of 20 (highest possible), has approximately 46.44% of its housing units that received a mortgage between 2004 and 2007 (highest of the areas analyzed by the County), has approximately 31.7% of its housing units that received a high cost (sub -prime) mortgage between 2004 and 2007 (highest of the areas analyzed by the County), and has approximately 19.4% of its housing units 90 or more days delinquent or in foreclosure (highest of the areas analyzed by the County). Because of the percentage of housing units 90 or more days delinquent or in foreclosure, there will likely be a significant rise in the rate of foreclosure in the near future As proposed, the NSP3 target area (area of greatest need) is small e nough to produce an acceptable IMPACT score from the HUD Target Area Mapping website. The selected target area has an IMPACT score of 42 meaning that approximately 42 housing units need to be acquired rehabbed and sold to make a visible "impact" on the neighborhood Because property Appraiser data show that the average sales price for the foreclosed and distressed sales in the proposed target area is 1/3 to 1/2 the price of other potential target areas within the County the County will be able to acquire more housing units than if another target area were chosen. While NSP3 funds alone will not be sufficient to acquire, rehab and sell 42 homes, the County's efforts can be successful because the County s prospective NSP3 non-profit partner, Habitat for Humanity, has already invested in foreclosure acquisition and rehabilitation in the target area and because the County will use both NSP1 and NSP3 program income funds in the target area to purchase, rehab, and resell additional housing units. REVISED NSP3 Abbreviated Action Plan Indian River County — 2 11 117 2 12 Page 2