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In the year since tt7e counter iinitiated NSP3 activitiesx the fareelosure situatian in the caunty has changed significantly. As a result of that change the county's NSP3 non-profit partner Habitat For Hurr�anity (Habitat}, has purchased far fewer foreclosed pausing units in the NSP3 target area than had been forecast. While Habitat purchased ten fareclosed pauses in the 15 months priar to its partici patian in the NSP3 prosxrarn it has acquired anly 2 units since then. According to Habitat the availability of foreclosed properties has declined dramaticall in the ast ear. That observation is validated by data from the Count Pro ert A raisers Office. Accordin to that data there were 582 foreclosure sales in the court Burin the first five months of 2011 but only 291 sales Burin the first five rrronnths of 2012. The situation was similar in the county's NSP3 target area, with 29 foreclosure sales in the first four months of 2011 but only 17.(n the first four months of 2012. Most likely, the reduction in foreclosure activit fram 2011 to 2012 can be attributed rimaril to the robo-signingroblems with foreclosing banks and their law firms rather than an improvement in the pausing industry. With those problems subsiding, foreclosure activity can be expected to it}crease in the future. in fact data from the National Community Stabilization Trust (NCST) show that there have been a substantial number of default notices filed, throughout the county in the March, April and May 2012 To address the lower number of foreclosed properties available for purchase, the count proposes. to expand its target area. With that expansion, the target area boundaries will be 25'" street S.W_. on the south 43"' Avenue on the west, 4`h Street on the north and Old Dixie Highway on the east. According to HUD data, the expanded target area has an NSP3NEED score of 19.28, only slight) less ess than the original target area score of 20 and significantly higher than the minimurn NSP3NEED score of 17. In this case the expanded target area will provide a larger universe of foreclosed properties for the count 's NSP3 non- rofit artner Habitat For Humanit to ac uire. Since Pro ert A raisers data show that the number of foreclosure sales in the expanded target area for 2012 was 64% hi her than sales in the original target area and that foreclosure sales in the expanded target area for 2011 was 90% higher than sales in the original target area there is a strong probability that the expanded target area will allow Habitat to meet its NSP3 foreclosed property acquisition objective. This is also validated by NCST data that show that notices of default for March through Mav of 2012 were 82% higher for the expanded target area than for the original target area. For NSP3, HUD encourages grantees to have a small enough target area such that their dollars will have a visible impact on the neighborhood. While the original target area met that objective, the small size of the target area became problematic when declining fareclasure activity reduced the number of acceptable units available for acquisition. With the expanded target area, there will be more foreclosed units available for acquisition. According to HUD data however, the number of praperties needed to make an impact in the target area increases from 42 for the original target area to 104 for the expanded target area. Those numbers, however, are based on raw data from June of 2010 and earlier. Given the recent downturn in foreclosure activity, it is t7ighly prabable that Chase irr7pact numbers are too hi tg �. Regardless, the expanded target area is needed fort county's NSP3 program to succeed. REVISED NSP3 Abbreviated Action Plan Indian River County—�7-2-12 Page 3