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REVISED NSP3 Abbreviated Action Plan Indian River County — 2 11 117 2 12 Page 3 In the year since the county initiated NSP3 activities, the foreclosure situation in the county has had changed significantly. As a result of that change, the county's NSP3 non-profit partner, Habitat For Humanity (Habitat), has purchased far fewer foreclosed housing units in the NSP3 target area than been forecast. While Habitat purchased ten foreclosed houses in the 15 months prior to its past year. participation in the NSP3 program, it has acquired only 2 units since then. in the According to Habitat, the availability of foreclosed properties has declined dramatically That observation is validated by data from the County Property Appraisers Office. According to that data, there were 582 foreclosure sales in the county during the first five months of 2011, but only 291 sales during the first five months of 2012. The situation was similar in the county's NSP3 target area, but only 17 in the first four months of 2012. with 29 foreclosure sales in the first four months of 2011, Most likely, the reduction in foreclosure activity from 2011 to 2012 can be attributed primarily to the in the robo-signing problems with foreclosing banks and their law firms, rather than an improvement housing industry. With those problems subsiding, foreclosure activity can be expected to increase in the future In fact data from the National Community Stabilization Trust (NCST) show number of default notices filed throughout the county in the March, that April, there and proposes S.W. have been May 2012 to on the 3 substantial period. lower number of foreclosed properties the target available for purchase, the county area boundaries will be 25th street To address the expand its target area. With that expansion, south HUD 43'd Avenue on the west, 4th Street on the nortLand Old Dixie Highway on the east. According to data, the expanded target area has an NSP3NEED score of 19 28, only slightly less than NSP3NEED score of 17. the original for the target area score of 20 and significantly higher than the minimum In this case the ex anded tar et area will .rovide a lar_er universe of foreclosed .ro.erties county s NSP3 non-profit partner, Habitat For Humanity, to acquire. Since Property Appraisers data show that the number of foreclosure sales in the expanded target area for 2012 was 64% higher 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. is also validated by This NCST data that show that notices of default for March through May of 2012 were 82% higher for the expanded target area than for the original target area. target area such that their dollars will have For NSP3, HUD encourages grantees to have a small enough 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 foreclosure activity reduced the number of acceptable units available for acquisition. be more foreclosed units available for acquisition. According With the expanded target area, there will to HUD data, however, the number of properties needed to make an impact in the target area increases from 42 for the original target area to 104 for the expanded target area. numbers, however, are Those based on raw data from June of 2010 and earlier. Given the recent downturn in foreclosure activity, it is highly probable that those impact numbers are too high. Regardless, the expanded target area is needed for the county's NSP3 program to succeed. REVISED NSP3 Abbreviated Action Plan Indian River County — 2 11 117 2 12 Page 3