Pompano Beach, Florida

Spotlight on the Housing Market in Miami-Fort Lauderdale-Pompano Beach, Florida

The Obama Administration's Efforts to Stabilize the Housing Market and Help American Homeowners - July 2012 The Miami-‐Fort Lauderdale-‐Pompano Beach, FL Metropolitan StaEsEcal Area (Miami) is located along the southeastern coast of Florida and includes 3 counEes: Broward, Miami-‐Dade (includes City of Miami) and Palm Beach. The challenges in the Miami housing market, as in other parts of Florida, have been more severe than those in most areas of the naEon. Miami U.S Department of Housing and Urban Development currently ranks first in the naEon for the share of mortgages at risk of foreclosure -‐ those 90 or more days delinquent or in the foreclosure process. ContribuEng to the high share of distressed mortgages is a long foreclosure processing Eme in Florida (the third longest among states), as lender processing delays and a backlog in the courts contribute to a high share U.S. Department of the Treasury of mortgages remaining in the foreclosure pipeline. During the early part of the last decade, local home prices rose at nearly double the pace of naEonal average. As a result, home prices in Miami have since fallen more steeply than in most parts of the country. Reduced property values and the extent of underwater mortgages in the current market were partly fueled by investor speculaEon and excess housing construcEon in the years prior to the housing crisis, but mainly by rising defaults, driven first by unsustainable subprime mortgages beginning in 2007, then by the economic downturn and climbing unemployment. Economic condiEons in Miami are improving, but the local housing market remains fragile -‐ with high concentraEons of distressed mortgages, large numbers of vacancies, and 48 percent of home mortgages underwater. Access to available credit also remains a barrier for potenEal and exisEng homeowners. However, the AdministraEon’s broad approach to stabilize the housing market has been a real help to homeowners in Miami and surrounding ciEes. This addendum to the Obama AdministraEon’s Housing Scorecard provides a summary of trends and condiEons in the local economy and the impact of AdministraEon’s efforts to CoreLogic revised their methodology for stabilize the housing market and help local homeowners. estimating underwater borrowers recently.

The updated national data is available for 2012 Q1; Miami data for 2012 Q1 will hopefully available soon. Updated data for 2011 Q4 for Miami is included in Spotlight on the Housing the text. Population Growth, Employment, and Housing Market: Miami Housing Unit Growth Outpaced Population and Household Growth MarketWith a populaEon in of 5.56 Miami-Fort million people according to the most recent Census, the Lauderdale-During the Past Decade Miami MSA is the 8th largest in the naEon. From 2000 to 2010, populaEon growth was Date of Census 4/1/00 4/1/10 moderate, increasing at an average rate of 1.1 percent per year. MigraEon accounted Miami Population 5,007,956 5,564,635 for nearly 57 percent of the increase during this Eme period, with the most rapid Annual Growth Rate -‐ 1.1% Spotlight on the Housing Market in Miami-Fort Lauderdale-Pompano Beach,migraEon Florida occurring between 2000 and 2005. In Miami-‐Dade County, where the City of Pompano Beach, Florida Miami Households Miami is located, the populaEon increased by an average of 24,250 people, or 1.1 1,905,394 2,097,626 Annual Growth Rate -‐ 1.0% percent, annually from 2000 to 2010. The Obama Administration's Efforts to Stabilize the Housing Market and Help American Homeowners - July 2012 Miami Housing Units 2,149,749 2,464,417 The Miami-‐Fort Lauderdale-‐Pompano Beach, FL Metropolitan StaEsEcal Area (Miami) is located along the southeastern coast of Florida and includes 3 counEes: Broward, Miami-‐Dade Annual Growth Rate -‐ 1.5% (includes City of Miami) and Palm Beach. The challenges in the Miami housing market, as in other parts of Florida, have been more severe than those in most areas of the naEon. Miami Source: Census Bureau (2000 and 2010 Decennial) currently ranks first in the naEon for the share of mortgages at risk of foreclosure -‐ those 90 or more days delinquent or in the foreclosure process. ContribuEng to the high share of distressed mortgages is a long foreclosure processing Eme in Florida (the third longest among states), as lender processing delays and a backlog in the courts contribute to a high share of mortgages remaining in the foreclosure pipeline. During the early part of the last decade, local home prices rose at nearly double the pace of the naEonal average. As a result, home prices in Miami have since fallen more steeply than in most parts of the country. U.S . Reduced Depa r property tment values of Ho us and ing During a the nd U the extent rba n decade of De v underwater e spanned lopme n by mortgages t | in the current market were partly the Off i Census, ce of P new olicy housing Develo producEon pment a exceeded nd Res household earch growth in the Miami MSA; net annual housing unit growth at 1.5 percent was greater fueled by investor speculaEon and excess housing construcEon in the years prior to the housing crisis, but mainly than by the rising corresponding defaults, driven populaEon first by unsustainable subprime mortgages and household growth rates of 1.1 and 1.0 percent, respecEvely. Although Miami normally has a relaEvely larger stock of housing units that beginning in 2007, then by the economic downturn e Obama and climbing Administration’s unemployment. Economic Eff orts condiEons toare Stabilize in held Miami for are the seasonal Housing improving, use but compared Market the local housing market remains fragile -‐ with high to other and areas, Help this American intercensal growth Homeowners in the housing | July stock 2012 indicates excess construcEon contributed to an oversupply of housing and may concentraEons of distressed mortgages, large numbers of vacancies, and 48 percent of home mortgages underwater. Access have to led available to steeper credit price also declines remains a barrier for potenEal and aher 2006. According to the Census Bureau, the number of vacant units in Miami increased by an average of 12,250 units, or 5.0 percent, exisEng homeowners. However, the AdministraEon’s The Miami-Fort broad approach Lauderdale-Pompano to stabilize the Beach, housing market FL Metropolitanannually has been during Statistical a the real 2000s, Area help to homeowners in Miami and surrounding ciEes. This higher (Miami) than is located the naEonal along rate the of southeastern 4.4 percent coast during of the Florida same and period. includes Investor three speculaEon was a major cause of overbuilding in Miami the years addendum to the Obama AdministraEon’s Housing Scorecard provides a summary of trends and condiEons leading into in the the crisis, local with economy and the impact of AdministraEon’s efforts to investor home purchases represenEng a larger share of total purchases than in the naEon. Specifically, from 2000 to 2006, home sales investors in counties: Broward, Miami-Dade (includes City of Miami) and Palm Beach. The challengesCoreLogic in the revised Miami their housingmethodology market, for as in other parts of Florida, have stabilize the housing market and help local homeowners. the Miami-‐Miami Beach-‐Kendall Metropolitan Division rose from 8 to 19 percent of all sales, while the corresponding increase for the naEon was 8 to 15 percent. Another cause estimating underwater borrowers recently. been more severe than those in most areas of the nation.of overbuilding Miami currently in Miami ranks prior to fi rst the in the crisis nation was for speculaEve the share construcEon of mortgages of inner at risk city of condominium foreclosure units - those which did not sell to owner occupants or investors. According Condo 90 or more days delinquent or in the foreclosure process.Vultures® Contributing LLC, greater to downtown the high Miami share The added of updated distressed approximately national mortgages data is 22,250 available condominium is for the 2012 third Q1; units longest during foreclosure the boom processing that began in 2003. As of the fourth quarter 2011, approximately 56 percent of downtown condominium units Miami data were for renter-‐occupied, 2012 Q1 will hopefully according available soon. to the Miami Downtown Development Authority. time among states, as lender processing delays and a backlog in the courts contribute toUpdated a high data share for 2011 of Q4 mortgages for Miami is included extending in the foreclosure pipeline. During the early part of the last decade, local home prices rose at nearly double the pacethe text.of the national average. Since that time, home prices in Miami Population Growth, Employment, and Housinghave Market: fallen more steeply than in most parts of the country. Reduced property values and the extent of underwater mortgages in the current market were partly fueled by investor speculationMiami Housing and Unit excess Growth housing Outpaced construction Population in and the Household Growth years prior to the housing crisis, but were also driven by rising defaults due to With a populaEon of 5.56 million people according to the most recent Census, the During the Past Decade Miami MSA is the 8th largest in the unsustainable naEon. From subprime 2000 to 2010, populaEon growth was mortgages beginning in 2007, then by the economic downturn and climbing unemployment. Economic conditions in Miami are Date of Census 4/1/00A modest economic 4/1/10 recovery is underway in Miami. The local economy expanded by an average of 60,800 jobs, or 2.8 percent, per year, from the third quarter of 2003 through second moderate, increasing at an average rate improving, of 1.1 percent but the per local year. MigraEon accounted housing market remains fragile – with high concentrations of distressed mortgages, large numbers of vacancies, and 45 percent of Miami Population 5,007,956quarter of 2007. 5,564,635 As a result of the recent recession, significant job losses occurred, averaging 108,400 jobs, or 4.5 percent, per year, beginning the third quarter of 2007 through first for nearly 57 percent of the increase during this Eme period, with the most rapid Annual Growth Rate quarter -‐ of 2010. 1.1% The local economy has made modest gains in the years since, with an average of 30,300 jobs, or 1.4 percent, added each year. The educaEon and health services, Miami unemployment rate and payroll data for migraEon occurring between 2000 and 2005. home In mortgages Miami-‐Dade underwater. County, where the City of In addition, lack of access to credit remains a barrier for potential and existing homeowners. However, the Administration’s Miami Households professional and business services, and retail trade declines, mainly in the construcEon and government sectors, parEally offset the above gains during the same period by a combined June will be available Friday, July 20. The text Miami is located, the populaEon increased broad by an approach average of 24,250 people, or 1.1 to stabilize the housing market has1,905,394 been a real help2,097,626 to homeowners in Miami and surrounding cities. This addendum to the Obama Annual Growth Rate average -‐ of 8,500 1.0% jobs per year. The naEonal unemployment rate peaked in October 2009 at 10.0 and fell to 8.2 percent by June 2012. The unemployment rate for the Miami MSA has and two charts on employment can be updated percent, annually from 2000 to 2010. Administration’s HousingMiami Scorecard Housing Unitsprovides a summary2,149,749followed of a trends similar 2,464,417 and trend, conditions improving in from the local a high economy of 11.4 in September 2010 to 8.6 and percent the impact in May 2012. of the Administration’s efforts to then. stabilize the housing market and Annual help Growth Rate local homeowners. -‐ 1.5% Source: Census Bureau (2000 and 2010 Decennial)

During the decade spanned by the Census, new housing producEon exceeded household growth in the Miami MSA; net annual housing unit growth at 1.5 percent was greater Unemployment Rate Remains High, But Shows Improvement than the corresponding populaEon and household growth rates of 1.1 and 1.0 percent, respecEvely. Although Miami normally has a relaEvely larger stock of housing units that Monthly Unemployment Rate (Percent) Job Market Conditions Improving for Miami and Nation are held for seasonal use compared to Population other areas, this intercensal Growth, growth in the Employment, housing stock indicates excess construcEon contributed to an oversupply of housing and may Quarterly Nonfarm Employment have led to steeper price declines aher 2006. According to the Census Bureau, the number of vacant units in Miami increased by an average of 12,250 units, or 5.0 percent, annually during the 2000s, higher than the naEonal rate of 4.4 percent during the same period. Investor speculaEon was a major cause of overbuilding in Miami the years 12 and Housing Market: 2,500 148 leading into the crisis, with investor home purchases represenEng a larger share of total purchases than in the naEon. Speciﬁcally, from 2000 to 2006, home sales investors in With a population of 5.56 million people according to the 2,450 10 the Miami-‐Miami Beach-‐Kendall Metropolitan Division rose from 8 to 19 percent of all sales, while the corresponding increase for the naEon was 8 to 15 percent. Another cause 143 of overbuilding in Miami prior to the crisis was speculaEve construcEon of inner city condominium units which did not sell to owner occupants 2,400 or investors. According to Condo most recent Census, the Miami MSA is the 8th largest in 8 Vultures® LLC, greater downtown Miami added approximately 22,250 condominium units during the boom that began in 2003. 2,350 As of the fourth quarter 2011, approximately 138 56 percent of downtown condominium units the nation. were renter-‐occupied, From 2000 to according 2010, population to the Miami growth Downtown Development Authority. was 2,300 6 moderate, increasing at an average rate of 1.1 percent per 2,250 133 4

2,200 Millions year. In Miami-Dade County, where the City of Miami is Thousands 2,150 128 located, the population increased by an average of 24,250 2 2,100 123 2,050 people, or 1.1 percent, annually from 2000 to 2010. During 0 2,000 118 A modest economic recovery is underway in Miami. the The decade local economy spanned expanded by the by Census, an average new of housing 60,800 production jobs, or 2.8 percent, per year, from the third quarter of 2003 through second quarter of 2007. As a result of the exceeded recent recession, household significant growth job in losses the Miami occurred, MSA; averaging net 108,400 annual jobs, or 4.5 percent, per year, beginning the third quarter of 2007 through first quarter of 2010. The local economy has made modest gains in the years since, with an average of 30,300 jobs, or 1.4 percent, added each year. The educaEon and health services, Miami unemployment rate and payroll data for professional and business services, and retail trade declines, mainly in the construcEon and government sectors, parEally offset the above gains during the same period by a combined June will be available Friday, July 20. The text housing unit growth at 1.5 percent was greater than the Miami MSA NaEon and two charts on employmentYear and can Quarter be updated average of 8,500 jobs per year. The corresponding naEonal unemployment population rate peaked and in household October 2009 growth at rates 10.0 of and fell to 8.2 percent by June 2012. The unemployment rate for the Miami MSA has followed a similar trend, improving from a high of 11.4 in September 2010 to 8.6 percent in May 2012. then.Miami MSA NaEon (right axis) Seasonally Adjusted Data 1.1 and 1.0 percent, respectively. Although Miami normally Seasonally Adjusted Data Source: Bureau of Labor StaEsEcs has a relatively larger stock of housing units that are held Source: Bureau of Labor StaEsEcs

for seasonal use compared to other areas, the growth in the housing stock between Census counts indicates excess Unemployment Rate Remains High, But Shows Improvement construction contributed to an oversupply of housing and may Monthly Unemployment Rate (Percent) Job Market Conditions Improving for Miami and Nation have led Quarterly to steeper Nonfarm price declines Employment after 2006. According to the Census Bureau, the number of vacant units in Miami 12 2,500 148 2,450 increased by an average of 12,250 units, or 5.0 percent, 10 2,400 annually during the 2000s, higher than the national rate143 of 8 2,350 138 2,300 Miami Housing Unit Growth Outpaced Populati on and 6 2,250 133 Household Growth During the Past Decade 4

2,200 Millions Thousands 2,150 Date of Census 4/1/2000 4/1/2010128 2 2,100 Miami Populati on 5,007,956 5,564,635123 2,050 0 2,000 Annual Growth Rate - 1.1%118 Miami Households 1,905,394 2,097,626 Annual Growth Rate - 1.0% Year and Quarter Miami MSA NaEon Miami Housing Units 2,149,749 2,464,417 Miami MSA NaEon (right axis) Seasonally Adjusted Data Seasonally Adjusted Data Annual Growth Rate - 1.5% Source: Bureau of Labor StaEsEcs Source: Bureau of Source: Labor StaEsEcs Census Bureau (2000 and 2010 Decennial)

Spotlight on Miami MSA | Page 1 U.S Department of Housing and Urban Development U.S. Department of the Treasury

U.S. Department of Housing and Urban Development | Office of Policy Development and Research e Obama Administration’s Eﬀ orts to Stabilize the Housing Market and Help American Homeowners | July 2012

Home sales in the Miami MSA have improved since 2008. ExisRng home sales began a steep decline in 2006 but have increased steadily 4.4 since percent 2008. during New home the same sales period. fell from Investor 2007 speculation through 2009 and have remained at was historically low levels. Sales of bank-‐owned properRes and short sales remain high at 25 percent of exisRng Home sales in the Miami a major MSA have cause improved since 2008. of ExisRng overbuilding home sales in Miami began in a the steep years decline in 2006 leading New and Existing Home Sales: Miami Compared to the Nation home sales in the Miami market, the same as the naRonal rate, and contribute to weakness in home prices. Annual Home Sales (thousands) but The have CoreLogic increased repeat-‐sales steadily into house since the price crisis, 2008. index New with (HPI) shows that the home investor rise sales in home home fell purchases prices from 2007 in representing the Miami-‐Miami through 2009 and have remained at a historically low levels. Sales of bank-‐owned properRes and short sales remain high at 25 percent of exisRng Home Beach-‐Kendall sales in Metropolitan the Miami Division larger MSA share was have nearly of improved since 2008. total ExisRng double purchases home the sales than naRonal began in the pace a nation. steep between 2000 and mid-‐2006. decline in 2006 Specifi cally, 400 New and Existing Home Sales: Miami Compared to the Nation 8,000 home Investor sales speculaRon in the helped Miami fuel market, the rise the in same as the naRonal rate, and house contribute prices -‐-‐ to weakness home sales in home prices. to investors averaged 18 percent in Annual Home Sales (thousands) The but CoreLogic have increased repeat-‐sales steadily house from since 2000 price 2008. to index New 2006, (HPI) shows that the home rise home sales in sales home fell to prices investors from 2007 in in the Miami-‐Miami through 2009 and have remained at the Miami- Miami between 2003 and 2006 -‐-‐ much higher than the 14 percent share for the naRon. Home prices in Miami 350 7,000 Beach-‐Kendall historically low Metropolitan levels. Sales of Division bank-‐owned was nearly properRes double and the short naRonal sales remain high at 25 percent pace of exisRng between 2000 and mid-‐2006. May data on distressed sales for both the U.S. home fell much sales farther in the from Miami their Miami market, peak Beach-Kendall in the 2006 same as the naRonal rate, and than Metropolitan contribute did average to Division prices weakness for rose in home prices. the naRon -‐-‐ Miami prices were down 49 from 8 to 19 400 New and Existing Home Sales: Miami Compared to the Nation 8,000 Investor speculaRon helped fuel the rise in house prices -‐-‐ home sales to investors averaged 18 percent in 300 Annual Home Sales (thousands) 6,000 and Miami are likely to be available sometime The percent CoreLogic as of repeat-‐sales November 2009, house nearly price two-‐thirds index (HPI) shows that the rise more in than home prices the 31 in percent naRonal peak-‐to-‐low decline . the Miami-‐Miami Miami between 2003 and percent 2006 -‐-‐ of all much sales, higher than the 14 percent share while for the the corresponding naRon. Home increase prices in Miami for the 350 7,000 between July 20 and 25. Home prices in Miami have fluctuated since the end of the house price bubble but have been rising since early May data on distressed sales for both the U.S. fell Beach-‐Kendall much farther Metropolitan from their Division nation peak was was in 8 nearly 2006 to 15 than double percent. did the average Another naRonal prices cause pace for of between 2000 and mid-‐2006. overbuilding the naRon -‐-‐ Miami prices were down 49 in 400 250 8,000 5,000 Investor 2011 and speculaRon are currently helped 5 fuel percent the rise higher in than their 2009 low. house prices -‐-‐ home sales to investors averaged 18 percent in 300 6,000 and Miami are likely to be available sometime percent as of November 2009, nearly two-‐thirds more than the 31 percent naRonal peak-‐to-‐low decline . Home Miami prices between in 2003 Miami and have Miami 2006 fluctuated -‐-‐ prior since much to the the higher crisis than the 14 percent share end was for of speculative the the naRon. house construction price Home bubble prices but have been rising since early in Miami of inner 350 200 7,000 4,000 between July 20 and 25. Despite excess construcDon the Miami rental housing market is doing well, with vacancy rates falling since 250 5,000 May data on distressed sales for both the U.S. 2011 fell much and are farther currently from their 5 city percent peak condominium higher in 2006 than their 2009 low. units than did which average did not prices sell to for owner the naRon -‐-‐ Miami prices were down 49 occupants percent 2009. According as of to November MPF Research, 2009, nearly the two-‐thirds overall apartment more than vacancy rate the in 31 percent naRonal peak-‐to-‐low decline . Miami was 4.5 percent in the first 300 150 6,000 3,000 and Miami are likely to be available sometime quarter of 2012, down from 5.1 percent a year earlier, compared with ® the decline in the naRonal vacancy rate 200 4,000 between July 20 and 25. Home prices in Miami have or investors. fluctuated since According the end to Condo of the Vultures house price LLC, bubble greater but have been rising since early 100 2,000 Despite to 5.1 excess from 6.3 construcDon percent. the During Miami the rental first quarter housing market is doing of well, 2012, with vacancy average rates rents falling since in Miami increased by 4 percent from a 250 5,000 2011 and are currently 5 percent higher than their 2009 low. 150 3,000 2009year . ago According to $1,146. to MPF The Research, downtown average the rent Miami overall naRonwide added apartment also approximately increased vacancy rate by 22,250 in 4 percent to $1,061 during the same Miami was 4.5 percent in the first condominium quarter of 2012, down from 5.1 percent a year earlier, compared with the decline in the naRonal vacancy rate 200 50 4,000 1,000 period. units during the boom that began in 2003. As of the fourth 100 2,000 to Despite 5.1 excess from 6.3 construcDon percent. During the Miami the rental first quarter housing market is doing of well, 2012, with average vacancy rents rates falling since in Miami increased by 4 percent from a 150 0 3,000 0 year 2009. ago According to $1,146. to MPF The Research, quarter average the of rent 2011, overall naRonwide approximately apartment also increased vacancy 56 percent rate by 4 in percent to $1,061 during the same of Miami was 4.5 percent in the first downtown quarter of 2012, down from 5.1 percent a year earlier, compared with the decline in the naRonal vacancy rate 50 2003 2004 2005 2006 2007 2008 2009 2010 2011 1,000 period. condominium units were renter-occupied, according to the 100 2,000 to 5.1 from 6.3 percent. During the first quarter of 2012, average rents in Miami increased by 4 percent from a 0 0 year ago to $1,146. The Miami average Downtown rent naRonwide Development also increased Authority. by 4 percent to $1,061 during the same 50 NaRon: 2003 ExisRng 2004 Sales (right 2005 axis) NaRon: 2006 New Sales 2007 (right axis) 2008 Miami MSA: 2009 ExisRng 2010 Sales Miami 2011 MSA: 1,000 New Sales period. 0 0 Sources: CoreLogic, HUD/Census Bureau, and NaRonal AssociaRon of Realtors A modest economic recovery is underway in Miami. NaRon: 2003 ExisRng Sales 2004 (right axis) 2005 NaRon: 2006 New Sales 2007 (right axis) 2008 Miami MSA: 2009 ExisRng 2010 Sales Miami 2011 MSA: New Sales The local economy expanded by an average of 60,800 Sources: CoreLogic, HUD/Census Bureau, and NaRonal AssociaRon of Realtors jobs, or 2.8 percent, per year, from the third quarter of 2003 NaRon: ExisRng Sales (right axis) NaRon: New Sales (right axis) Miami MSA: ExisRng Sales Miami MSA: New Sales through the second quarter of 2007. As a result of the recent Miami Home Prices Decline Sharply After Steep Rise Sources: CoreLogic, HUD/Census Bureau, Market and Is NaRonal Improving AssociaRon of Realtors recession, signifi cant job losses occurred, averaging 108,400 Repeat-‐Sales House Price Index (Jan 2000 = 100) Trends in Mortgage Delinquenciesjobs, and or Foreclosures:4.5 percent, per year, beginning the third quarter of Miami Home Prices Decline Sharply After Steep Rise 330 Market Is Improving 2007 through the fi rst quarter of 2010. The local economy Repeat-‐Sales House Price Index (Jan 2000 = 100) Miami homeowners conRnue to struggle with high rates of mortgage delinquency and foreclosure. As of May Miami Home Prices Decline Sharply After Steep Rise Trends2012, Miami in Mortgage placed 1st out Delinquencies of 366 has metropolitan andmade Foreclosures: modest areas gains ranked in by the share years of since, mortgages with at risk of foreclosure (90 or an average of 330 280 Market Is Improving more days delinquent or in 30,300 the foreclosure jobs, or process) 1.4 percent, according added to each LPS Applied year. The AnalyRcs. However, the foreclosure education Repeat-‐Sales House Price Index (Jan 2000 = 100) Miami situaRon homeowners in Miami conRnue is improving. to struggle LPS with data high show that mortgages at risk rates of foreclosure of mortgage decreased delinquency and foreclosure. As of May by 6.2 percent 2012, Trends Miami in Mortgage placed 1st out Delinquencies of 366 and metropolitan andhealth Foreclosures: services, areas ranked professional by share of mortgages at risk and of business foreclosure (90 or services, and during the past year, from 164,400 in May 2011 to 154,200 in May 2012, compared with a naRonal decline of 1.0 280 330 230 more percent days during delinquent the same or in period. retail the CoreLogic foreclosure trade sectors data process) according to since 2000 show that LPS have the Applied been rate AnalyRcs. the of major mortgages However, contributors at risk the foreclosure of foreclosure to job situaRon Miami homeowners in Miami is conRnue improving. to struggle LPS data with show high that mortgages at risk rates of foreclosure of mortgage decreased delinquency by 6.2 percent and foreclosure. As of May in the Miami st MSA had been consistent with the naRonal rate through the end of 2006, but rose sharply during the during 2012, the Miami past placed 1 year, out of from 366 growth 164,400 metropolitan since in May areas the recovery 2011 ranked to by began, 154,200 share of mortgages at risk increasing of in foreclosure May 2012, by (90 or compared with a naRonal decline of 1.0 a combined 230 280 180 more foreclosure days crisis. delinquent In the or first in the years foreclosure of the crisis when single-‐family process) according to LPS foreclosures Applied AnalyRcs. were largely However, associated with the foreclosure percent unaffordable during loan the products, same period. mortgages total CoreLogic of at 27,800 risk data of since 2000 show that jobs foreclosure the per rate year. rose of Employment rapidly mortgages in at declines, Miami risk -‐ from 1.3 to 12.7 percent of of foreclosure mainly in situaRon the in Miami Miami MSA is had improving. been consistent LPS data with show that mortgages at risk the of naRonal foreclosure rate through decreased the by 6.2 percent end of 2006, but rose sharply during the acRve mortgages during 2007 and 2008. The comparable rise for the naRon was 1.6 to 4.4 percent. According to 180 230 130 foreclosure during the crisis. past In year, the from first in years 164,400 the construction of in the crisis when single-‐family May 2011 and foreclosures to government 154,200 were largely sectors, in May associated partially 2012, with compared with a naRonal decline of 1.0 offset the percent the Florida during Housing the same Data period. Clearinghouse, CoreLogic Home data since 2000 show that Mortgage the Disclosure rate of Act mortgages data at indicate risk that high-‐cost or subprime of foreclosure unaffordable loans accounted loan products, for nearly mortgages above 53 at percent gains risk during of total loans in the Miami foreclosure MSA the same in rose 2006. period rapidly Beginning by a in combined in Miami -‐ from 1.3 to 12.7 percent of 2009, foreclosures average acRve in the mortgages Miami during MSA had 2007 been and consistent 2008. The with comparable rise for the the naRon naRonal was rate 1.6 through to 4.4 the percent. end According to of 2006, but rose sharply during the 130 180 80 foreclosure were increasingly crisis. In associated the first with of years 8,500 prime of jobs loans the crisis when single-‐family per and were triggered year. by foreclosures loss The of national were income, largely unemployment unemployment, associated with and negaRve rate the equity Florida according Housing to Data research Clearinghouse, by the Federal Home Reserve Bank of Chicago. Mortgage During Disclosure this Act Rme, data the indicate share of severely that high-‐cost or subprime loans unaffordable accounted loan products, for nearly mortgages peaked 53 at percent in risk October of of total foreclosure 2009 loans at rose 10.0 in rapidly the and Miami fell in to MSA Miami 8.2 -‐ from 1.3 to 12.7 percent of in 2006. Beginning 2009, foreclosures percent by delinquent mortgages in Miami rose to a high of 23.1 percent in early 2010, but has declined since to 19.6 percent. 130 80 were acRve increasingly mortgages associated during 2007 with and prime 2008. loans The and were triggered comparable rise for the by naRon loss of was income, 1.6 to 4.4 unemployment, percent. According to and negaRve the Severely Florida delinquent Housing mortgages Data Clearinghouse, rose June 2012. less dramaRcally Home The unemployment for the naRon, Mortgage peaking Disclosure at rate 7.9 Act percent for data the indicate Miami in early that high-‐cost or subprime 2010, and have MSA has Miami Metropolitan Division NaRon equity since according declined to to 6.4 research percent. by the Federal Reserve Bank of Chicago. During this Rme, the share of severely delinquent loans accounted mortgages for in nearly Miami followed rose 53 to percent a a similar high of of trend, total 23.1 loans improving percent in in the from early Miami a high 2010, MSA in 2006. Beginning 2009, foreclosures of but has declined since to 19.6 percent. 11.4 in 80 were increasingly associated with prime loans and were triggered by loss of income, unemployment, and negaRve Source: CoreLogic. Miami-‐Miami Beach-‐Kendall Metropolitan Division HPI Severely A parRal delinquent explanaRon mortgages for the rose September high less level dramaRcally 2010 of mortgages for the naRon, to peaking 8.6 at percent at risk 7.9 in of percent May foreclosure 2012. in early in 2010, and have Miami is the Rme it takes to complete Miami Metropolitan Division NaRon since equity declined according to to 6.4 research percent. by the Federal Reserve Bank of Chicago. During this Rme, the share of severely delinquent a foreclosure mortgages in Florida. in Miami According rose to to Realty a high Trac, of the 23.1 average percent foreclosure in early processing Rme in Florida, which 2010, but has declined since to 19.6 percent. employs the judicial foreclosure process, was 861 days in the second quarter of 2012 (third longest among states) Source: CoreLogic. Miami-‐Miami Beach-‐Kendall Metropolitan Division HPI A Severely parRal delinquent explanaRon mortgages for the rose Home high less level sales dramaRcally of in mortgages for the naRon, the peaking Miami at at risk MSA 7.9 of percent foreclosure have in improved early in Miami is the Rme it takes to complete 2010, and have since Miami Metropolitan Division NaRon since compared declined with to the 6.4 naRonal percent. rate of 378 days. The longer processing Rme tends to increase the number of a foreclosures foreclosure in in the Florida. pipeline According and 2008. delay to Existing Realty completed Trac, home foreclosures. the sales average began foreclosure Lengthy a steep processing decline processing Rme in Florida, which Rmes notwithstanding, the in 2006 but employs the judicial foreclosure process, was 861 days in the second quarter of 2012 (third longest among states) Source: CoreLogic. Miami-‐Miami Rental Vacancy Beach-‐Kendall Rates Lower Metropolitan  Division HPI an the Nation A foreclosure parRal explanaRon compleRon for rate the since have high April increased level 2009 of in mortgages steadily the at Miami since risk MSA, 2008. of at foreclosure New 4.1 home percent, in is nearly double the naRonal rate sales Miami is the Rme it takes to complete fell from Quarterly Apartment Rental Vacancy Rates (Percent) compared of 2.2 percent. with the Foreclosure naRonal rate compleRons of 378 have days. been The trending longer processing downward in Rme tends to increase the number of the Miami MSA and naRonally. For the foreclosures a foreclosure in in the Florida. pipeline According and 2007 delay to through Realty completed 2009 Trac, foreclosures. and the have average remained Lengthy foreclosure processing at historically processing Rme in Florida, which Rmes notwithstanding, the low employs first quarter the judicial of 2012, foreclosure completed process, foreclosures was 861 in Miami days in are the 30 second percent quarter below of the previous quarter and 54 percent 2012 (third longest among states) Rental Vacancy Rates Lower an the Nation foreclosure below their compleRon peak, while rate since completed April foreclosures 2009 in in the the Miami naRon MSA, are at down 4.1 percent, 13 percent is nearly double the naRonal rate from the previous quarter and 9 Quarterly Apartment Rental Vacancy Rates (Percent) of compared 2.2 percent. with the Foreclosure naRonal rate compleRons levels. of Sales 378 have of days. bank-owned been trending downward The in longer the properties processing Miami MSA and Rme and tends to increase the number of short naRonally. For the sales remain foreclosures 44 percent in below the their pipeline peak. and high Both delay at 27 peaks completed percent occurred in the third quarter foreclosures. of of existing 2010. home However, Lengthy sales lender processing in the Rmes notwithstanding, the process Miami reviews market, 8 first and quarter court backlogs of 2012, conRnue completed to foreclosures affect foreclosure in Miami compleRons. are 30 CoreLogic reports that 48.1 percent percent of below mortgages the previous quarter and 54 percent Rental Vacancy Rates Lower an the Nation below foreclosure their compleRon peak, while rate completed since April foreclosures 2009 in in the the Miami naRon MSA, are at down 4.1 13 percent, percent is nearly double the naRonal rate from the previous quarter and 9 7 Quarterly Apartment Rental Vacancy Rates (Percent) of in 2.2 the percent. Miami-‐Miami Foreclosure Beach-‐Kendall compleRons slightly Metropolitan higher have than been trending downward Division the in national the were Miami underwater rate of MSA 24 at percent. and the naRonally. For the end of 2011– compared to 25.2 The high 44 percent percent naRonally below -‐-‐ their peak. represenRng Both peaks addiRonal occurred homeowners in potenRally the at risk. third quarter of 2010. However, lender process reviews 8 6 and first court quarter backlogs of 2012, conRnue completed to proportion affect foreclosures foreclosure of distressed in compleRons. CoreLogic Miami reports sales are that 48.1 contributes 30 percent percent of to below mortgages weakness the previous quarter and 54 percent in home 9 in below the their Miami-‐Miami peak, while Beach-‐Kendall completed foreclosures Metropolitan in Division the were naRon underwater are down at 13 the percent end of 2011– compared to 25.2 from the previous quarter and 7 5 44 percent below their peak. prices. Both The peaks CoreLogic occurred in repeat-sales the third house quarter price of index 2010. However, lender process reviews (HPI) percent naRonally -‐-‐ represenRng addiRonal homeowners potenRally at risk. 6 8 4 and court backlogs conRnue to shows affect that foreclosure the rise compleRons. CoreLogic in home reports prices that 48.1 in percent the of Miami-Miami mortgages Beach- 5 7 in the Miami-‐Miami Beach-‐Kendall Kendall Metropolitan Metropolitan Division Division were was underwater nearly double at the end of 2011– compared to 25.2 the national 3 percent naRonally -‐-‐ represenRng addiRonal homeowners potenRally at risk. 4 6 2 pace between 2000 and mid-2006. Investor speculation The share of underwater borrowers for Miami as of the end 3 5 helped fuel the rise in house prices -- home sales to investors 1 of the first quarter of 2012 is not yet available. 2 4 averaged 18 percent in Miami between 2003 and 2006 – The share of underwater borrowers for Miami as of the end 3 1 of the first quarter of 2012 is not yet available. much higher than the 14 percent share for the nation. Home Year and Quarter 2 prices in Miami fell much farther from their peak in 2006 than The share of underwater borrowers for Miami as of the end 1 of the first quarter of 2012 is not yet available. did average prices for the nation – Miami prices were down Miami Metro Year Area and Quarter NaRon Source: MPF Research Foreclosure Completion 49 percent Rates as in of November the Miami MSA 2009, nearly two-thirds more than the 31 percent national peak-to-low decline. Home prices in Miami Metro Year Area and Quarter NaRon Second Quarter 2012 Since April 1, 2009 Source: MPF Research Foreclosure Completion Miami have Rates fl in uctuated the Miami MSA since the end of the house price bubble Area Foreclosure Foreclosure Foreclosure Rate Foreclosure Rate Miami Metro Area NaRon Completions but have beenCompletions rising since early 2011 and are currently 5 Second Quarter 2012 Since April 1, 2009 Source: MPF Research Miami MSA Foreclosure Completion 6,000 percent0.2% higher Rates in than the Miami MSA their 101,900 20094.1% low. Area Foreclosure Foreclosure Share of Distressed Mortgages Substantially Higher an the Nation Nation 160,500 Foreclosure 0.1% Rate 2,853,800 Foreclosure 2.2% Rate Mortgages 90+ Days Delinquent (Percent of All AcRve Mortgages) Completions Completions Note: Foreclosure Rates Second as Percent Quarter 2012 of All Housing Units; Since April 1, 2009 Miami MSA 6,000 0.2% 101,900 4.1% Area Foreclosure Data through June 2012 for Foreclosures since April 2009 Foreclosure Share of Distressed Mortgages Substantially Higher an the Nation Nation 160,500 Foreclosure 0.1% Rate 2,853,800 Foreclosure 2.2% Rate Mortgages 90+ Days Delinquent (Percent of All AcRve Mortgages) Source: Realty Trac Completions and Census Bureau Completions 25 Note: Foreclosure Rates as Percent of All Housing Units; Miami MSA 6,000 0.2% 101,900 4.1% Data through June 2012 for Foreclosures since April 2009 Share of Distressed Mortgages Substantially Higher an the Nation Nation 160,500 0.1% 2,853,800 2.2% Mortgages 90+ Days Delinquent (Percent of All AcRve Mortgages) Source: Realty Trac and Census Bureau 25 20 Note: Foreclosure Rates as Percent of All Housing Units; Spotlight on Miami MSA | Page 2 Data through June 2012 for Foreclosures since April 2009 Source: Realty Trac and Census Bureau 20 25 15

15 20 10

10 15 5

10 5 0

0 5 Miami MSA NaRon 0 Source: CoreLogic Miami MSA NaRon Source: CoreLogic Miami MSA NaRon Source: CoreLogic Home sales in the Miami MSA have improved since 2008. ExisRng home sales began a steep decline in 2006 but have increased steadily since 2008. New home sales fell from 2007 through 2009 and have remained at historically low levels. Sales of bank-‐owned properRes and short sales remain high at 25 percent of exisRng New and Existing Home Sales: Miami Compared to the Nation home sales in the Miami market, the same as the naRonal rate, and contribute to weakness in home prices. Annual Home Sales (thousands) The CoreLogic repeat-‐sales house price index (HPI) shows that the rise in home prices in the Miami-‐Miami Beach-‐Kendall Metropolitan Division was nearly double the naRonal pace between 2000 and mid-‐2006. 400 8,000 Investor speculaRon helped fuel the rise in house prices -‐-‐ home sales to investors averaged 18 percent in Miami between 2003 and 2006 -‐-‐ much higher than the 14 percent share for the naRon. Home prices in Miami 350 7,000 fell much farther from their peak in 2006 than did average prices for the naRon -‐-‐ Miami prices were down 49 May data on distressed sales for both the U.S. percent as of November 2009, nearly two-‐thirds more than the 31 percent naRonal peak-‐to-‐low decline . 300 6,000 and Miami are likely to be available sometime Home prices in Miami have fluctuated since the end of the house price bubble but have been rising since early between July 20 and 25. 250 5,000 2011 and are currently 5 percent higher than their 2009 low. 200 4,000 Despite excess construcDon the Miami rental housing market is doing well, with vacancy rates falling since 2009. According to MPF Research, the overall apartment vacancy rate in Miami was 4.5 percent in the first 150 3,000 quarter of 2012, down from 5.1 percent a year earlier, compared with the decline in the naRonal vacancy rate 100 2,000 to 5.1 from 6.3 percent. During the first quarter of 2012, average rents in Miami increased by 4 percent from a year ago to $1,146. The average rent naRonwide also increased by 4 percent to $1,061 during the same 50 1,000 period. 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011

NaRon: ExisRng Sales (right axis) NaRon: New Sales (right axis) Miami MSA: ExisRng Sales Miami MSA: New Sales

Sources: CoreLogic, HUD/Census Bureau, and NaRonal AssociaRon of Realtors

Miami Home Prices Decline Sharply After Steep Rise Market Is Improving Repeat-‐Sales House Price Index (Jan 2000 = 100) Trends in Mortgage Delinquencies and Foreclosures: 330 Miami homeowners conRnue to struggle with high rates of mortgage delinquency and foreclosure. As of May st 2012, Miami placed 1 out of 366 metropolitan areas ranked by share of mortgages at risk of foreclosure (90 or 280 more days delinquent or in the foreclosure process) according to LPS Applied AnalyRcs. However, the foreclosure situaRon in Miami is improving. LPS data show that mortgages at risk of foreclosure decreased by 6.2 percent during the past year, from 164,400 in May 2011 to 154,200 in May 2012, compared with a naRonal decline of 1.0 230 percent during the same period. CoreLogic data since 2000 show that the rate of mortgages at risk foreclosure in the Miami MSA had been consistent with the naRonal rate through the end of 2006, but rose sharply during the 180 foreclosure crisis. In the first years of the crisis when single-‐family foreclosures were largely associated with unaffordable loan products, mortgages at risk of foreclosure rose rapidly in Miami -‐ from 1.3 to 12.7 percent of acRve mortgages during 2007 and 2008. The comparable rise for the naRon was 1.6 to 4.4 percent. According to 130 the Florida Housing Data Clearinghouse, Home Mortgage Disclosure Act data indicate that high-‐cost or subprime loans accounted for nearly 53 percent of total loans in the Miami MSA in 2006. Beginning in 2009, foreclosures 80 were increasingly associated with prime loans and were triggered by loss of income, unemployment, and negaRve equity according to research by the Federal Reserve Bank of Chicago. During this Rme, the share of severely delinquent mortgages in Miami rose to a high of 23.1 percent in early 2010, but has declined since to 19.6 percent. Severely delinquent mortgages rose less dramaRcally for the naRon, peaking at 7.9 percent in early 2010, and have Miami Metropolitan Division NaRon since declined to 6.4 percent. Source: CoreLogic. Miami-‐Miami Beach-‐Kendall Metropolitan Division HPI A parRal explanaRon for the high level of mortgages at risk of foreclosure in Miami is the Rme it takes to complete a foreclosure in Florida. According to Realty Trac, the average foreclosure processing Rme in Florida, which employs the judicial foreclosure process, was 861 days in the second quarter of 2012 (third longest among states) compared with the naRonal rate of 378 days. The longer processing Rme tends to increase the number of foreclosures in the pipeline and delay completed foreclosures. Lengthy processing Rmes notwithstanding, the Rental Vacancy Rates Lower an the Nation foreclosure compleRon rate since April 2009 in the Miami MSA, at 4.1 percent, is nearly double the naRonal rate Quarterly Apartment Rental Vacancy Rates (Percent) of 2.2 percent. Foreclosure compleRons have been trending downward in the Miami MSA and naRonally. For the first quarter of 2012, completed foreclosures in Miami are 30 percent below the previous quarter and 54 percent below their peak, while completed foreclosures in the naRon are down 13 percent from the previous quarter and 9 44 percent below their peak. Both peaks occurred in the third quarter of 2010. However, lender process reviews 8 and court backlogs conRnue to affect foreclosure compleRons. CoreLogic reports that 48.1 percent of mortgages in the Miami-‐Miami Beach-‐Kendall Metropolitan Division were underwater at the end of 2011– compared to 25.2 7 percent naRonally U.S -‐-‐ Department represenRng of addiRonal Housing and homeowners Urban potenRally at risk. Development 6 5 U.S. Department of the Treasury 4 3 2 The share of underwater borrowers for Miami as of the end 1 of the first quarter of 2012 is not yet available.

U.S. Department of Housing and Urban Development | Office of Policy DevelYear opm and ent Quarter a nd Research

e Obama Administration’s Eﬀ orts to Stabilize the Housing Market and Miami Help Metro American Area HomeownersNaRon | July 2012 Source: MPF Research Foreclosure Completion Rates in the Miami MSA

Second Quarter 2012 Since April 1, 2009 Area Foreclosure Foreclosure Foreclosure Rate Foreclosure Rate CompletionsDespite excess constructionCompletions the Miami rental Miami MSA housing 6,000 0.2%market is doing 101,900 well,4.1% with vacancy rates Share of Distressed Mortgages Substantially Higher an the Nation Nation 160,500 0.1% 2,853,800 2.2% Mortgages 90+ Days Delinquent (Percent of All AcRve Mortgages) Note: Foreclosure Rates falling as Percent since of All Housing Units; 2009. According to MPF Research, the overall apartment Data through vacancy June 2012 for Foreclosures since April 2009 rate in Miami was 4.5 percent in the 25 Source: Realty Trac and ﬁ rst Census Bureau quarter of 2012, down from 5.1 percent a year earlier,

compared with the decline in the national vacancy rate to 5.1 20 from 6.3 percent. During the ﬁ rst quarter of 2012, average rents in Miami increased by 4 percent from a year ago to 15 $1,146. The average rent nationwide also increased by 4 percent to $1,061 during the same period. 10

Trends in Mortgage 0 Delinquencies and Foreclosures: Miami homeowners continue to struggle with high rates of Miami MSA NaRon mortgage delinquency and foreclosure. As of May 2012, Source: CoreLogic Miami placed 1st out of 366 metropolitan areas ranked by share of mortgages at risk of foreclosure (90 or more days A partial explanation for the high level of mortgages at risk of foreclosure in delinquent or in the foreclosure process) according to LPS Miami is the time it takes to complete a foreclosure in Florida. According to Applied Analytics. However, the foreclosure situation in Realty Trac, the average foreclosure processing time in Florida, which employs Miami is improving. LPS data show that mortgages at risk of the judicial foreclosure process, was 861 days in the second quarter of 2012 foreclosure decreased by 6.2 percent during the past year, (third longest among states) – more than twice the national rate of 378 days. The from 164,400 in May 2011 to 154,200 in May 2012, longer processing time tends to increase the number of foreclosures in the pipeline compared with a national decline of 1.0 percent during the and delay completed foreclosures. Lengthy processing times notwithstanding, the same period. CoreLogic data since 2000 show that the rate foreclosure completion rate since April 2009 in the Miami MSA, at 4.1 percent, of mortgages at risk of foreclosure in the Miami MSA had is nearly double the national rate of 2.2 percent. Foreclosure completions have been consistent with the national rate through the end of been trending downward in the Miami MSA and nationally. For the fi rst quarter of 2006, but rose sharply during the foreclosure crisis. In the 2012, completed foreclosures in Miami are 30 percent below the previous quarter fi rst years of the crisis when single-family foreclosures were and 54 percent below their peak, while completed foreclosures in the nation are largely associated with unaffordable loan products, mortgages down 13 percent from the previous quarter and 44 percent below their peak. Both at risk of foreclosure rose rapidly in Miami – from 1.3 to peaks occurred in the third quarter of 2010. However, lender process reviews 12.7 percent of active mortgages during 2007 and 2008. and court backlogs continue to affect foreclosure completions. CoreLogic reports The comparable rise for the nation was 1.6 to 4.4 percent. that 44.7 percent of mortgages in the Miami-Miami Beach-Kendall Metropolitan According to the Florida Housing Data Clearinghouse, Division were underwater in the fi rst quarter of 2012 – compared to 23.7 percent Home Mortgage Disclosure Act data indicate that high-cost nationally – representing additional homeowners potentially at risk. or subprime loans accounted for nearly 53 percent of total loans in the Miami MSA in 2006. Beginning in 2009, more prime loans went into foreclosure, triggered by loss of income, unemployment, and negative equity according to research by e Administration’s Eff orts to Stabilize the the Federal Reserve Bank of Chicago. During this time, the Miami Housing Market: share of severely delinquent mortgages in Miami rose to a From the launch of the Administration’s assistance programs in April 2009 through high of 23.1 percent in early 2010, but has since declined to the end of May 2012, nearly 147,500 homeowners received mortgage assistance 19.6 percent. The rise in severely delinquent mortgages was in the Miami metropolitan area. Nearly 66,900 interventions were started through less steep in the rest of the nation, peaking at 7.9 percent in the Home Affordable Modifi cation Program (HAMP) and the Federal Housing early 2010 and declining since that time to 6.4 percent. Administration (FHA) loss mitigation and early delinquency intervention programs. An estimated additional 80,600 proprietary mortgage modifi cations have been Foreclosure Completi on Rates in the Miami MSA made through HOPE Now Alliance servicers. While some homeowners may Second Quarter 2012 Since April 1, 2009 have received help from more than one program, the number of times assistance has been provided in the Miami MSA is nearly 50 percent higher than the Foreclosure Foreclosure Foreclosure Foreclosure Area Completi ons Rate Completi ons Rate number of foreclosures completed during this period (100,000). In addition, more than 287,000 Miami homeowners stand to benefi t from the $8.5 billion Miami MSA 6,000 0.2% 101,900 4.1% in relief provided to the state under the landmark Mortgage Servicing Settlement announced in February 2012. Nationwide, the settlement will provide more Nati on 160,500 0.1% 2,853,800 2.2% than $37.8 billion in benefi ts that include payments to the participating states, Note: Foreclosure Rates as Percent of All Housing Units; Data through payments to borrowers, refi nance funding, fee reductions and homeowner June 2012 for Foreclosures since April 2009 benefi ts. Nearly 1.7 million Americans will benefi t from the mortgage settlement. Source: Realty Trac and Census Bureau

Spotlight on Miami MSA | Page 3 U.S Department of Housing and Urban Development U.S. Department of the Treasury

Spotlight on the Housing Market in Miami-Fort Lauderdale-Pompano Beach, Florida

The Administration’s Efforts to Stabilize the Miami Housing Market:

From the launch of the AdministraHon’s assistance programs in April 2009 through the end of May 2012, nearly 147,500 homeowners received mortgage assistance in the Miami metropolitan area. Nearly 66,900 intervenHons were started through the Home Affordable ModificaHon Program (HAMP) U.S. and De p the Federal Housing a r AdministraHon tment of H (FHA) ou s loss ing a miHgaHon nd U r and ban early delinquency Development | Office of Policy Development and Research intervenHon programs. e An Obama esHmated addiHonal Administration’s 80,600 proprietary Eff mortgage orts to modificaHons Stabilize have been made through HOPE Now the Housing Market and Help American Homeowners | July 2012 Alliance servicers. While some homeowners may have received help from more than one program, the number of Hmes assistance has been provided in the Miami MSA is nearly 50 percent higher than the number of foreclosures completed during this period (100,000). In addiHon, the AdministraHon’s Neighborhood StabilizaHon Program (NSP) and Hardest Hit Fund have helped to stabilize Together, the Administration’s Neighborhood Stabilization Program (NSP) and Hardest Hit Fund programs, as well as the Mortgage Aid Provided More an 147,000 Times to Mitigate Rising Foreclosures provisions of the mortgage servicing settlement, are helping to Miami MSA: CumulaHve Offers of Aid by Source Compared with Foreclosures Since April 1, 2009 (Thousands) stabilize the Miami housing market. Mortgage Aid Offers in Miami MSA from April 2009 through May 2012: 147,500 160 Foreclosure CompleHons Over Same Period: 100,000 140 Given over three rounds, the Neighborhood Stabilization 120 Program has invested $7 billion nationwide to help 100 localities work with non-profi ts and community development 80 corporations to turn tens of thousands of abandoned 60 and foreclosed homes that lower property values into 40 homeownership opportunities and the affordable rental 20 0 housing that communities need.

NSP1 funds were granted to all states and selected local FHA Loss MiHgaHon HAMP Permanent ModificaHons EsHmated Hope Now ModificaHons Foreclosure CompleHons governments on a formula basis under Division B, Title III of Note: Data on HOPE Now proprietary mortgage modificaHons are not available at the metropolitan area level. However, HOPE Now Alliance reports 214,400 non-‐HAMP modificaHons since April 1, 2009 in Florida of which 38 percent are esHmated by HUD to have occurred in the the Housing and Economic Recovery Act (HERA) of 2008; Miami MSA. This chart excludes HAMP trial modificaHons not made permanent.

NSP2 funds authorized under the American Recovery and Sources: Departments of HUD and Treasury, HOPE Now Alliance, and Realty Trac. Reinvestment Act (the Recovery Act) of 2009 provided grants to states, local governments, nonprofi ts and a consortium of nonprofi t entities on a competitive basis; and NSP3 funds authorized under the Dodd–Frank Wall Street Reform and Miami MSA NSP Acti vity (Housing Units) Projected Completed Given over three Consumer rounds, the Neighborhood Protection StabilizaLon Act Program ofhas 2010 invested provided $7 billion neighborhood naHonwide to help localiHes work with stabilization non-‐profits grants and community to all states development corporaHons and to turn select tens governments of thousands of on• The a City of Miami was awarded a total of $16.6 million in NSP1 and NSP3 funds. A porHon of these funds abandoned and foreclosed homes that lower property values into homeownership opportuniHes and the has gone towards NSP1 rehabilitaHng Total the Camacho Building, a foreclosed unfinished building in the heart of 1833 701 affordable rental formula housing that basis. communiHes need. Lifle Havana neighborhood. With the City’s assistance, a local developer purchased the property and finished the development. Clearance The building’s and demoliti 24 on one-‐bedroom rental units are presently being leased to 101 67 NSP1 funds were granted to all states and selected local governments on a formula basis under Division B, Title elderly residents at or below 50% of area median income. The Miami Beach Community Development III of the Housing In addition and Economic to stabilizing Recovery Act neighborhoods (HERA) of 2008; and NSP2 providing funds authorized under the American CorporaHon, a non-‐profit Constructi organizaHon on of new that housing has worked to revitalize neighborhoods and enhance the 691 113 Recovery and Reinvestment Act (the Recovery Act) of 2009 provided grants to states, local governments, quality of community life, will own and operate the building. Another Miami NSP project, Vista Mar, nonprofits and a affordable consorHum housing, of nonprofit NSP enHHes funds on a compeHHve basis; and have NSP3 helped funds save authorized jobs. under the leveraged NSP funds Homeownership with low income assistance housing tax to low-and credits to moderate turn income a vacant lot into a housing development 266 238 Dodd–Frank Wall Each Street home Reform purchased, and Consumer rehabilitated ProtecHon Act of 2010 provided and neighborhood sold stabilizaHon through thewith one-‐, two-‐ and three-‐ bedroom units, a six-‐story parking garage and green features. grants to all states and select governments on a formula basis. Rehabilitati on/reconstructi on of residenti al structures 775 283 NSP program is the result of the efforts of 35 to 50 local• The City of Hialeah, also in Miami-‐Dade County, was awarded a total of $7.6 million in NSP1 and NSP3 In addiHon to stabilizing neighborhoods and providing affordable housing, NSP funds have helped save jobs. Each funds. The City is NSP2 creaHvely Total combining a porHon of these funds with local funds and in-‐kind services to 2619 24 home purchased, employees. rehabilitated and sold through the NSP program is the result of the efforts 35 to 50 local develop city-‐owned and operated projects. One such project is Villa Teresita, a 33-‐unit complex of employees. affordable rental housing Clearance for elderly and demoliti families. on On January 20, 2012, the City of Hialeah was recognized for Overall, a total of $426.8 million has been awarded to 26 NSP grantees in the Miami MSA: 20 ciHes, including its exemplary use of NSP1 funds by receiving the Audrey Nelson Community Development Achievement 10 0 the principal ciHes Overall, of Miami, a total Fort of Lauderdale, $426.8 million Pompano has Beach, been West awarded Palm Beach, Miami Beach, Deerfield toAward. 26 Constructi on of new housing 667 0 Boyton Beach, and NSP Homestead; grantees all in three the Miami counHes MSA: in the 20 MSA; cities, and including two consorHa, the Lake-‐Worth Community the Redevelopment Agency and the Neighborhood Housing Services of South Florida. The government jurisdicHons • Lake Worth Community Homeownership Redevelopment , Agency assistance a 22-‐member to low-and consorHum moderate in income Palm Beach County, has 108 11 received a total principal of $191.1 cities million of in Miami, NSP1 funds, Fort Lauderdale, 50 million in Pompano NSP2 funds, and $72.1 million in NSP3 funds, Beach,been instrumental in building cooperaHve relaHonships among local agencies, law enforcement personnel, the consorHa received a total of $112.6 million in NSP2 funds. Approximately 740 households have already neighborhood associaHons, Rehabilitati and cultural on/reconstructi and educaHonal on of organizaHons. residenti al With structures a $23.2 million NSP2 grant, benefited from NSP, West and Palm acHviHes Beach, funded Miami by Beach, the program Deerfi are eld expected Beach, to Boynton provide assistance to an addiHonal Lake Worth has worked to stem a “free fall” in property values in targeted areas and to reconnect 1834 13 4,243 owner-‐occupied and renter households. Examples of how these funds have been put to use are provided neighborhoods by removing destabilizing influences and promoHng green, pedestrian and bicycle-‐friendly below. Beach, and Homestead; all three counties in the MSA; andcommuniHes. The NSP3 consorHum Total has acquired and rehabilitated foreclosed and abandoned properHes as well 531 15 two consortia, the Lake-Worth Community Redevelopmentas arranged for the provision of social services by non-‐profit partners who have a long history of assisHng individuals and families Clearance in need. and So demoliti far, the on consorHum has generated 200 contracts with small, local firms, 39 4 Agency and the Neighborhood Housing Services of SouthaccounHng for about 20% of their NSP funds. Constructi on of new housing 270 0 Florida. The government jurisdictions received a total of • Palm Beach County received grants from all three NSP programs totaling $89.0 million. The County Homeownership assistance to low-and moderate income $191.1 million in NSP1 funds, 50 million in NSP2 funds,uHlized and $20 million to provide first and second mortgage financing to income eligible homebuyers for the 101 11 acquisiHon and rehabilitaHon of foreclosed properHes. The income generated from these mortgage $72.1 million in NSP3 funds, and the consortia receivedprograms a is reinvested Rehabilitati to finance on/reconstructi addiHonal mortgages, on of both residenti sustaining al structures the program and increasing the 121 0 public benefit generated by the NSP dollars. To date, the County's Department of Economic Sustainability total of $112.6 million in NSP2 funds. Approximately 740has used $23 million of NSP funds to acquire 132 foreclosed homes in the community's hardest hit Miami MSA NSP Activity households (Housing Units) have already benefi tedProjected fromCompleted NSP, and activitiesneighborhoods and has overseen the restoraHon of these homes through homebuyer programs. Palm NSP1 Total 1833 701 Beach County has also used NSP funds to aid in developing vacant commercial property by building a Clearance and demolitionfunded by the program are expected101 to provide67 assistancehomeless to resource center, a three a key block element area. to the In Brownsville, County’s Ten NHS Year Plan has to End Homelessness. The Phillip teamed up with a for-profi t Construction of new housing 691 113 D. Lewis Center opened in June 2012, and is now offering a beacon of hope to homeless individuals and Homeownership assistance to low-‐and moderate income 266 238 developer of affordable housing to tear down an apartment complex that an additional 4,243 owner-occupied and renter households.families throughout the community. Rehabilitation/reconstruction of residential structures 775 283

NSP2 Total Examples of how these funds have 2619been put24 to use are has been a pocket of crime and drug abuse and replace it with a three-story • The City of Tamarac, in Broward County, has received a total of $6.2 million in NSP1 and NSP3 funding. Clearance and demolition 10 0 The City used the NSP1 garden grant style to purchase apartment and rehabilitate complex with foreclosed 100 units. or abandoned properHes, benefiHng Construction of provided new housing below. 667 0 53 households. With NSP3 funds, the City developed a new strategy to allocate funds for acquisiHon, Homeownership assistance to low-‐and moderate income 108 11 rehabilitaHon, and disposiHon so that income could be generated and reused within the program. The City Rehabilitation/reconstruction of residential structures 1834 13 also partnered with Home Depot City of for Miami the donaHon of landscaping products to encourage homeowners near NSP3 Total • The Neighborhood Housing531 Services15 of South • The was awarded a total of $16.6 million in NSP1 and NSP3 acquired homes to improve their properHes. A coordinated effort from numerous city departments Clearance and demolition Florida (NHS), a consortium of39 six non-profi4 t members, NSP3 funds. A portion of these funds has gone towards rehabilitating the Construction of new housing 270 0 has fostered a comprehensive approach to neighborhood stabilizaHon in both NSP programs.

Homeownership assistance has to focused low-‐and moderate income its $89 million NSP2101 grant11 on the north Camacho Building, a foreclosed unfi nished building in the heart of the Rehabilitation/reconstruction of residential structures 121 0 central part of Miami-Dade County where the housing Little Havana neighborhood. With the City’s assistance, a local developer stock is aging and there has been a long term trend purchased the property and fi nished the development. The building’s 24 • The Neighborhood Housing Services of South , Florida (NHS) a consorHum of six non-‐profit members, has focused its $89 million of middle-class NSP2 grant fl on ight the to north the suburbs. central part NHS of is Miami-‐Dade County where the housing targeting one-bedroom rental units are presently being leased to elderly residents stock is old and there has been a long term trend of middle-‐class flight to the suburbs. NHS is targeHng at or below 50% of area median income. The Miami Beach Community NSP funds to areas where NSP their funds investments to areas can where have their a substanHal investments impact on neighborhoods. Within a 12 can have block area in the Overtown a substantial neighborhood, impact NHS is on rehabilitaHng neighborhoods. five foreclosed mulHfamily apartment Within a 12 Development Corporation, a non-profi t organization that has worked to buildings encompassing a total of 100 units. In the former high-‐crime Triangle neighborhood, NHS is renovaHng four mulHfamily block buildings area with in the 40 residenHal Overtown units neighborhood, within a three block area. In Brownsville, NHS is revitalize neighborhoods and enhance the quality of community life, will own NHS has teamed up with a for-‐profit developer of affordable housing to tear down an apartment complex and operate the building. Another Miami NSP project, Vista Mar, leveraged that has been a pocket rehabilitating of crime and fi ve drug foreclosed abuse, and multifamily replace it with apartment a three-‐story garden style apartment complex with 100 units. buildings encompassing a total of 100 units. In the former NSP funds with low income housing tax credits to turn a vacant lot into a

high-crime Triangle neighborhood, NHS is renovating housing development with one-, two- and three- bedroom units, a six-story parking garage and green features. four multifamily buildings with 40 residential units within

Spotlight on Miami MSA | Page 4 U.S Department of Housing and Urban Development U.S. Department of the Treasury

• The City of Hialeah, also in Miami-Dade County, was awarded a total of $7.6 million in NSP1 and NSP3 funds. The City is creatively combining a portion of these funds with local funds and in-kind services to develop city-owned and operated projects. One such project is Villa Teresita, a 33-unit complex of affordable rental housing for elderly families. On January 20, 2012, the City of Hialeah was recognized for its exemplary use of NSP1 funds by receiving the Audrey Nelson Community Development Achievement Award.

• Lake Worth Community Redevelopment Agency, a 22-member consortium in Palm Beach County, has been instrumental in building cooperative relationships among local agencies, law enforcement personnel, neighborhood associations, and cultural and educational organizations. With a $23.2 million NSP2 grant, Lake Worth has worked to stem a “free fall” in property values in targeted areas and to reconnect neighborhoods by removing destabilizing infl uences and promoting green, pedestrian and bicycle-friendly communities. The consortium has acquired and rehabilitated foreclosed and abandoned properties as well as arranged for the provision of social services by non-profi t partners who have a long history of assisting individuals and families in need. So far, the consortium has generated 200 Section 3 contracts with small, local fi rms, accounting for about 20% of all subcontracted dollars. Section 3 refers to the Department’s program for providing preference to low- and very low-income residents of the community where grant funds are spent and the businesses that substantially employ these persons.

• Palm Beach County received grants from all three NSP programs totaling $89.0 million. The County utilized $20 million to provide fi rst and second mortgage fi nancing to income eligible homebuyers for the acquisition and rehabilitation of foreclosed properties. The income generated from these mortgage programs is reinvested to fi nance additional mortgages, both sustaining the program and increasing the public benefi t generated by the NSP dollars. To date, the County’s Department of Economic Sustainability has used $23 million of NSP funds to acquire 132 foreclosed homes in the community’s hardest hit neighborhoods and has overseen the restoration of these homes through homebuyer programs. Palm Beach County has also used NSP funds to aid in developing vacant commercial property by building a homeless resource center, a key element to the County’s Ten Year Plan to End Homelessness. The Phillip D. Lewis Center opened in June 2012, and is now offering a beacon of hope to homeless individuals and families throughout the community.

• The City of Tamarac, in Broward County, has received a total of $6.2 million in NSP1 and NSP3 funding. The City used the NSP1 grant to purchase and rehabilitate foreclosed or abandoned properties, beneﬁ ting 53 households. With NSP3 funds, the City developed a new strategy to allocate funds for acquisition, rehabilitation, and disposition so that income could be generated and reused within the program. The City also partnered with Home Depot for the donation of landscaping products to encourage homeowners near NSP3 acquired homes to improve their properties. A coordinated effort from numerous city departments has fostered a comprehensive approach to neighborhood stabilization in both NSP programs.

As part of the State of Florida’s housing recovery efforts, the Florida Hardest-Hit Fund was launched on April 18, 2011 to help Florida homeowners who have experienced a substantial decrease in income due to job loss or underemployment by providing a mortgage payment bridge while they seek new or better employment. The Florida Hardest-Hit Fund is funded by $1.06 billion from the Administration’s Hardest Hit Fund and administered by the Florida Housing Finance Corporation. Program eligibility was recently modiﬁ ed to reach more homeowners with steeper assistance. Assistance is provided in one of two ways:

• Unemployment Mortgage Assistance Program (UMAP) provides up to twelve months of payments (with a cap of $24,000) to the mortgage lender to assist unemployed/underemployed borrowers with their ﬁ rst mortgage until they can resume full payments on their own.

• Mortgage Loan Reinstatement Payment (MLRP) Program is used to bring a delinquent mortgage current (up to $25,000) for a homeowner who has returned to work or recovered from underemployment.

The homeowner’s household income is reviewed to determine the level of assistance needed and the minimum mortgage payment that may be contributed by the borrower. Eligible homeowners close on a 0-percent interest subordinate loan similar to a home equity line of credit. The ﬁ rst 20 percent of the loan will be forgiven eighteen months after the loan closing, and the balance will be forgiven at a rate of 20 percent per year thereafter. Homeowners must have a documented hardship due to unemployment or underemployment through no fault of their own.

Florida homeowners who believe they may be eligible for these programs should visit www.FLHardestHitHelp.org. Florida has these funds available until 2017 or until all funds are expended to help struggling homeowners and prevent avoidable foreclosures.

Spotlight on Miami MSA | Page 5