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Comprehensive Plan Housing Element Table 7.18 Foreclosure Activities July 2008 Jurisdiction NOD LIS NTS NFS REO (fore- closed proper- ties owned by a bank) Total 1 of every X number of households received foreclosure filing (rate) State or IRC/ National Average IRC/State Average U.S. 55,601 55,042 57,145 27,088 77,295 272,171 464 N/A N/A Florida 29,708 91 9,818 6,267 45,884 186 IRC [o:= 170 lo= 62 3 235 316 1.47 0.59 Source: Realty Trac, Inc. As indicated in that table, one out of every 464 households nationwide was in some stage of foreclosure during the month of July, 2008. During that same time period, the state's foreclosure rate was one out of every 186 households, while Indian River County's foreclosure rate was one out of every 316 households. According to the Table 7.18 information, the July, 2008 foreclosure filing notice rate for Indian River County was 1.47 times the national rate and 0.59 times the state rate. That indicates that Indian River County's foreclosure filing rate is higher than the national rate, but lower than the state rate. Generally, a high number of foreclosures creates several problems. First, foreclosures create housing affordability problems for those households whose homes are foreclosed on. Second, foreclosed properties often are not maintained, turn into neighborhood eyesores, and adversely affect the value of adjacent houses. Third, foreclosed properties usually sell at lower than the actual value of a house; therefore, foreclosures affect the value of other houses in the neighborhood. Finally, foreclosures also impact banks, often reducing credit provided by banks to individuals. Overall, those 235 properties within the county that are in different stages of foreclosure will negatively impact the owners of those properties as well as the entire community. Since foreclosures became a problem in 2008, the county has obtained CDBG Neighborhood Stabilization Program (NSP) funding to assist the county in addressing the local foreclosure problem. Those funds will be used to purchase foreclosed housing units, rehabilitate those units, and sell or rent the units to low/moderate income households. Going forward, the county's policy should be to continue to participate in the Neighborhood Stabilization Program. Housing Conditions Summary Currently, housing conditions, particularly the relationship between housing cost and household income, are in a state of flux. This applies to the country as a whole, but more so to the State of Florida and Indian River County. Until the housing boom of 2004-2006, housing cost and household income generally grew in sync. Prior 30 Community Development Department Indian River County