Transcript Foreclosures - New Hampshire Housing Finance Authority

Dean J. Christon
Executive Director
New Hampshire Housing Finance Authority
• Established by State Legislature under RSA 204-C
• Independent Self Sustaining public corporation
– An “Instrumentality of the State” not a department
• Mission
– To help create housing which is affordable to low and
moderate income people
– Continuum of Services from Rental Assistance for very low
income households to Home Ownership Programs for low to
moderate income households
• NH Housing does not oversee local housing authorities
• But, not your usual state housing finance agency
New Hampshire Housing
Programs
• Home Ownership
– Single Family Mortgages
– 700 -1000 loans/year: $120 Million year
– Total: 39,200 Mortgages or $3.4 Billion
• Multi-Family Housing Development
– 300+ units financed/year
– Total: 14,200 units
– NH Housing finances multi-family housing construction, it does
not develop or own housing.
– NH Housing depends on developers to find opportunities to
build or rehabilitate housing.
• For Profit and Non-profit
• Multi-Family Compliance
–
Oversee 15,000 units on behalf of HUD, IRS and ourselves
New Hampshire Housing
Programs
• Tenant Assistance
– 3,000+ units of Tenant Based rental assistance
– 5,000+ units of Project Based rental assistance
• Service Coordination/Self Sufficiency
• Housing Research/Planning/Technical Assistance/
Grant Administration
www.nhhfa.org
www.GoNewHampshireHousing.com
Healthy Homes and New Hampshire Housing
Long history of making homes safe
RSA 204-C Declaration of findings and necessity
“The development of safe and sanitary
dwellings for elderly persons and for
persons of low income will have a
beneficial effect upon the health, safety
and welfare of the citizens of the state…”
New Hampshire Housing
Healthy Homes Commitment
• Lead Paint Abatement
• Single-Family Home Rehabilitation Program
• Multi-Family Construction Standards
• Asset Management/Property Standards
• Supportive Service Programs
New Hampshire Housing
Healthy Homes Commitment
• Lead Based Paint Hazard Abatement
– Over 14 years of abatement activities
• First Lead Grant in 1998 – 319 units abated
– Helped to grow capacity in the state
• Second in 2008 – 369 units abated
– Continued to provide training to inspectors and contractors
• Third in 2012 – 200 units to be abated
– Abatement as part of recapitalization of existing
assisted housing (preservation projects)
• 4,400 units in MF Preservation, Greener Homes, HOME
Rehab and Mod-Rehab/Rent Rehab Programs
New Hampshire Housing Lead Hazard Control Program
2008 Grant
746 People Trained in
Lead Safe Work Practices
369 Lead Safe Housing Units
Berlin
1 Unit(s)
1 to 4 Units
5 to 10 Units
11 to 20 Units
More than 20 Units
Tamworth
1 Unit(s)
Tilton
9 Unit(s)
Claremont
2 Unit(s)
Newport
4 Unit(s)
Rochester
9 Unit(s)
Laconia
7 Unit(s)
Belmont
1 Unit(s)
Franklin
14 Unit(s)
Somersworth
1 Unit(s)
Rollinsford
1 Unit(s)
Northfield
5 Unit(s)
Dover
1 Unit(s)
Concord
17 Unit(s)
N. Walpole
13 Unit(s)
Walpole
13 Unit(s)
Deering
1 Unit(s)
Portsmouth
99 Unit(s)
Allenstown
5 Unit(s)
Bennington
1 Unit(s)
New Boston
1 Unit(s)
Hinsdale
13 Unit(s)
Raymond
1 Unit(s)
Newmarket
2 Unit(s)
Exeter
2 Unit(s)
Plaistow
Salem 4 Unit(s)
1 Unit(s)
Temple
7 Unit(s)
Milford
11 Unit(s)
Manchester
98 Unit(s)
New Hampshire Housing
Healthy Homes Commitment
• Single-Family Rehabilitation
– Over 15 years of rehabilitation
• Addressed health and safety
issues in 712 homes ($18.6 M)
• Used Federal HOME Investment
Partnership dollars
– Shrinking resource
New Hampshire Housing
Healthy Homes Commitment
• Multi-Family Finance
– Quality Construction
Standards
• Good quality
heating/insulation and
ventilation (less mold,
radiation, VOCs)
– Leader in discouraging
carpeting (dust and
mold, VOCs) and
encouraging smoke free
buildings
New Hampshire Housing
Healthy Homes Commitment
• Asset Management/Property Standards
– Annual/Regular Inspections
• 20,000 units
• Lead
• Mold
• Life Safety
New Hampshire Housing
Healthy Homes Commitment
• Supportive Service Programs
– With partners
• REAP: Referral, Education, Assistance and Prevention
Program
• Sponsorship of Resident Service Coordinators
– Elderly
– Family
– Help owners recognize that the health of clients is
critical to the success of housing programs
Do housing markets affect health?
•
•
•
Health is affected by property condition.
Housing is a commodity.
Property condition is affected by investment
decisions.
–
–
Capital investment and maintenance
Owner occupied and renter occupied
Do housing markets affect health?
•
The cost of housing drives household decisions.
–
–
–
•
Distance to work
Doubling up
Discretionary expenditures
•
Quality food
•
Heat source
•
Education
What happens when a households largest
investment looses its value?
Housing Market Conditions
Peak Sales 2,561
Homeownership
Market
August Sales 1,581
A significant (40% +/-) decline in sales volume.
The effect of the Federal tax credit.
Cumulative sales for 2012 from January through
August are now nearly 20% ahead of sales volume
during the same period in 2011.
Homeownership
Market
August Sales 1,581
Peak Inventory 17 mos.
13.9
months
A slight improvement in sales pace
A slight improvement in Inventory
Peak Sale Prices $254K to $258K
August Median
Price $204,000
Median MLS sale prices dropped by 20% since 2007.
Monthly median MLS sale prices suggest prices are stabilizing.
August median in 2012 is identical to the August median in 2011.
Home Ownership
• Prices have declined about 20% but seem to be
stabilizing
– Sales volume is low but improving
– Inventory is high and includes distressed properties
• It is a “Buyers Market”; but,
• Affordability is still a problem
– Especially for 1st time buyers
• Tighter loan requirements
• Buyers entering the market need an income well above the
median for renter households
– Buyers want confidence that their income is
sustainable
– High rents prevent savings for down payments
Home Ownership
• Foreclosures continue to have a negative affect
– As prices drop more households are exposed to
potential foreclosure.
– If there is any disruption to income some households
cannot sell for more than what they owe.
Foreclosures
New Hampshire Foreclosures
By Year
2005..……………………..462
2006…………………….1,057
2007…………………….2,071
2008…………………….3,563
2009…………………….3,467
2010…………………….3,953
2011………………….....3,863
Four Year Sum……….14,846
Average………….….3,712/yr.
New Hampshire Foreclosures
Average foreclosures per year………….….3,712
2010 Census
New Hampshire Households
518,973
0.7% or 1:140 Households
Owner Households
368,316
1.0% or 1:100 Owner Hh
Owner Households with a Mortgage
266,988
1.4% or 1:72 Hh with Mtg.
US .96%
NH .83%
NE .80%
Foreclosure initiation rates have declined from their peaks,
but are still at very elevated levels.
New Hampshire Delinquency Rate
Foreclosures are not only a problem of purchase mortgages.
Between 2007 and 2011 54% of foreclosures were on refinances.
3,860
3,744
Projection
2,659
2,580
2012 foreclosures are projected to be 3% less than 2011.
Foreclosure
• Foreclosure activity continues to have a
negative effect on the real estate market.
• Delinquency/foreclosure rates are tied directly to
unemployment/income loss.
• There are indicators of improvement but the
economy must continue to improve.
• These households become renters : 15,000 from
2008 to 2011 + another 3,700 in 2012
Rental Market
NHHFA Residential Rental Cost Survey
Rents are increasing again after several years of little change.
The median 2-bedroom rent increased by 3.3% from 2011 to 2012
NHHFA Residential Rental Cost Survey
And the vacancy rate is down again, from 3.5% in 2011 to 3.2%
in 2012 for 2-bedroom units.
2012 Residential Rental
Cost Survey
Preliminary
Statewide Median Gross Rent for
2-Bedroom Units - $1,085
Percent of State Renter Occupied Housing
34.2%
Hillsborough
17.7%
Rockingham
Merrimack
10.9%
Strafford
10.5%
7.6%
Grafton
6.0%
Cheshire
Belknap
4.1%
Sullivan
3.3%
Carroll
2.9%
Coos
2.7%
Rents are highest in the Southern Counties of
the state, closest to the Boston labor market.
Most of the rental units in the state (73%) are
located in Hillsborough, Rockingham,
Merrimack and Strafford Counties.
Median Renter Income* = $35,965
* ACS 2010 5-year estimate
Rental Market
• Former owners are back in the rental
market ( +/-18,000 in the last 5 years).
• Vacancy rates have declined (3.2% this year).
• Rents are increasing again (up 3.3% this year)
after several years of little change.
• Rental affordability remains a problem and
saving for a down payment is harder.
• Households with the lowest incomes are
forced into the least desirable, and likely,
least healthy units.
Housing Market Summary
• Home Ownership Market - recover slowly as long as there
is stability in the economy, the mortgage industry and
consumer confidence.
• Foreclosures – indicators point toward an improving
picture, but it depends on the economy and how many
foreclosures remain in the system to be processed.
• The Rental Market - continue to see an imbalance due to
a short supply of quality units. Increasing rental costs as a
result of high demand and lower vacancy rates.
• Fewer renter households are able to save enough to move into
ownership housing, despite reasonable interest rates and a
surplus of discounted property for sale.
New Hampshire Housing
www.nhhfa.org
www.GoNewHampshireHousing.com