This thread is part of a four-part webinar series intended to provide practical information on key areas that have proven to be challenging for those attempting to implement neighborhood stabilization plans. Sessions in the series will be useful to NSP grantees and partners as well as others who are working on this issue. Click here to learn more about the series.
Where and how should communities focus their neighborhood stabilization efforts to achieve the best results? What variables should be considered when making these decisions?
Join us on Tuesday, September 15 from 2 - 4:00 p.m. EDT to learn more about how to optimize the impact of a neighborhood stabilization program, including concentrated targeting, strategic property selection, and innovative public-private partnerships. Best practices will be shared.
Part 1: Webinar – This two-part event begins at 2:00 p.m. EDT (11 a.m. PDT) with a 1-hour webinar featuring Alan Mallach from the Brookings Institution and Bill Goldsmith from Chicago Neighborhood Stabilization Corporation. Click here to register for the webinar.
Part 2: Interact with the speakers - Immediately following the webinar, from 3 - 4:00 p.m. EDT, the speakers will be on the Forum to answer your questions. All questions should be posted to this thread, and you are welcome to post at any time leading up to or during the event. Questions will be answered on a first-come, first-served basis until time runs out, so post early to be sure yours is addressed.
Thank you to all who participated in this webinar. Audio from the conference call can be accessed here, and the slides from the presentation can be accessed here.
The 'Making it Work' series is a collaboration between Enterprise Community Partners, Local Initiatives Support Corporation, the National Housing Conference, the National Community Stabilization Trust and NeighborWorks America.
More expertise than dollars, beginning with the ability to understand the market, and moving through the ability to acquire, rehab, market, sell or rent - as well as the managerial capacity to pull together the other pieces that an effective stabilization strategy calls for. There are never enough dollars, but the more capacity one has in this sense, the more one can get out of the available money.
Could you explain in a little more detail what types of shared equity mechanisms you use for residential REO properties that have been acquired through your local program.
Also, are there certain criteria for using these mechanisms for acquired residential properties -- for instance, must there be certain amount invested in a property (for acquisition/rehab) in order to implement shared equity requirements?
Ryan: Although we are explopring Shared Equity models with NCB and Mary Reilly, we have not deigned a Shared Equity model as of yet. We have been thinking about Shared Equity for preserving affordability and an incentive to buyer to lower PITI. What are your thoughts?
I think shared equity requirements - in the sense of limiting appreciation down the road - may be a good idea where you have relatively strong market conditions, and you see creating a long-term affordable housing stock as a priority. In some areas, I'd be concerned that it would dampen market demand for the houses I'm creating - or require additional subsidy to make the house competitive with those on the private market.
Alan: We share your concern but are open to a shared equity model if: 1) it is less complicated than a land trust model for preserving affordability (which I suspect it is); and 2) if we can use it in the context of a lower PITI (20% AGI) but, of course, that means more subsidy.
I am also intrigue by the idea of use Shared Equity to attract higher income families but still <120% AMI to destablized markets.
Bill - are you talking about shared equity in the sense of an equity-sharing mortgage or in the sense of long-term affordability through deed restrictions or the like. If the latter, how would it attract higher income families?
I am emailing on part of a regional consortium. We're interested in acquiring REO properties across our metro region. We've partnered with NCST and have created a revolving loan fund to assist with the acq/rehab of REO properties.
We've prepared a developer solicitation in order to request developers to acquire the properties on our behalf. Other NSP recipients have used redevelopment authorities to acquire properties for them. The properties are then sold to developers for rehab.
Our model is different in that developers may acquire properties on behalf of our consortium. The major challenge, however, is figuring out whether a developer should sell to another developer to rehab the properties.
We're not inclined to allow our acquisition partner (developer) rehab the properties b/c we want to ensure we obtain competitive rehab proposals from interested developers. Are there any thoughts about this model? We, unfortunately, are a MPO and can't acquire properties on our own.