APPLICATION FOR FUNDS FOR PROJECT TO HELP WASHINGTON HOMEOWNERS AVOID PREVENTABLE FORECLOSURE OR TO AMELIORATE THE EFFECTS OF THE FORECLOSURE CRISIS. I. APPLICANT INFORMATION Organization Name: City of TacomaiTacoma Community Redevelopment Authority The Tacoma Community Redevelopment Authority is a Public Development Authority (PDA); a component ofthe City of Tacoma. Mailing Address: 747 Market Street, Suite 1036 City, State, Zip: Tacoma, WA 98402 County: Pierce If Tribal, Designate: NI A Primary Contact: Ric Teasley, Comm & Econ Develop, Housing Division Mgr Primary Contact Phone: (253) 591-5238 Primary Contact e-mail: [email protected]Secondary Contact: Martha Anderson, Comm & Econ Develop, Interim Director Secondary Contact Phone: (253) 591-5027 Secondary Contact e-mail: [email protected]II. ORGANIZATION TYPE (CHECK APPLICABLE) 501(c) 3 Tribal _)(_ Goverrrrnentagency III. IDENTIFYING INFORMATION Tax Identification Number: 91-1061825 (TCRA); DUNS #928433820 (TCRA) Uniform Business Identifier: 278012338 (City of Tacoma) TCRA does not have its own UBI number. TCRA is a public development authority (PDA); an arm ofthe City of Tacoma. It was organized in 1973 as a conduit for monies coming into the city for housing, community and economic development activities. A. Does your organization currently receive any funding from the AGO? If yes, please identify the date of your last report. 1 39-003
Transcript
APPLICATION FOR FUNDS FOR PROJECT TO HELP WASHINGTON HOMEOWNERS AVOID PREVENTABLE FORECLOSURE OR TO AMELIORATE THE EFFECTS OF
THE FORECLOSURE CRISIS.
I. APPLICANT INFORMATION
Organization Name: City of TacomaiTacoma Community Redevelopment Authority The Tacoma Community Redevelopment Authority is a Public Development Authority (PDA); a component ofthe City of Tacoma.
III. IDENTIFYING INFORMATION Tax Identification Number: 91-1061825 (TCRA); DUNS #928433820 (TCRA) Uniform Business Identifier: 278012338 (City of Tacoma) TCRA does not have its own UBI number. TCRA is a public development authority (PDA); an arm ofthe City of Tacoma. It was organized in 1973 as a conduit for monies coming into the city for housing, community and economic development activities.
A. Does your organization currently receive any funding from the AGO? If yes, please identify the date of your last report.
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B. Does your organization receive any funding from any other governmental agency for housing related projects or foreclosure related assistance? If yes, list the contracts by title, contract number and funding amount for the past 3 years.
Tacoma is a CDBG entitlement city and a HOME Consortium Lead Agency with our consortium partner; the City of Lakewood, Federal funds directed to housing activities in Tacoma for the past three years were:
Fiscal Year CDBG HOME NSP 2009 - 2010 $1,368,789 (B-09-MC-53-0007) $1,538,066 (M09DC-53-0206) $3,555,478 * 2010 - 2011 $1,669,105 (B-10-MC-53-0007) $1,533,196 (M10DC-53-0206) 2011- 2012 $1,360,317 (B-11-MC-53-0007) $1,326,248 (M10DC-53-0206) *Tacoma was awarded NSP fimds (Contract #08-F6401-022) to address the large foreclosure problem faced by the City. Pierce County was awarded about $4.5 million dollars. At the time, Pierce County and Tacoma were #1 and #2 respectively in the number offoreclosures.
The CDBG and HOME monies are used to jitnd our internal programs: down payment assistance for first time homebuyers; emergency home repair for very low income seniors and persons with a disability; and housing rehabilitation programs for low income seniors, persons with a disability and families for health and safety improvements; and to fund our nonprofit affordable housing providers/developers in the community that develop affordable housing and/or maintain their existing housing inventories. The down payment assistance jimds are used primarily to help first-time, income eligible homebuyers purchase vacant, foreclosed homes and become owner/occupants.
C. Is your organization solely owned/operated by a current state employee? If so, please complete the Ethics Certification process at www.ethics.wa.gov _X_No Yes
IV. PROJECT PROPOSAL
A. Project Title: Blight Prevention - Revitalization of Foreclosed, Vacant Houses
B. Requested Amount: $3,860,000
C. Project Summary: In 150 words ofless, concisely describe your project and how it meets the criteria set forth in the settlement. This summary will help the Committee review proposals. Attachments and exhibits are not allowed in this section. Over-length summaries will disqualify application.
The City of Tacoma is requesting funding to reduce blight in several areas of Tacoma. The
areas selected have been impacted by a high level of foreclosures and neighborhoods are
suffering from the impacts of many vacant homes. Tacoma will model this program after
our successful, multi-faceted approach to investing our 2009 Neighborhood Stabilization
Program funds ($3,555,498) now exhausted. This includes down payment assistance to
income eligible, first-time homebuyers to purchase vacant, foreclosed homes in targeted
areas of Tacoma and through an NSP process selecting established experienced partners to 2
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refurbish and re-sell vacant, foreclosed homes. The City proposes to conduct these activities in a cost effective manner to produce the greatest public benefit for each dollar spent using programs that have a demonstrated success rate and low administrative cost. The City will
leverage the settlement funds at a ratio of approximately 3 to 1.
D. Describe how your project meets the criteria set forth in section I and III above, including estimated start and completion dates. Supporting information and exhibits may be included here. Please try to make your submission as concise as possible.
Reduction and prevention of blight Tacoma's program will be modeled after its previous NSP program that was developed to stabilize neighborhoods and eliminate blight caused by foreclosures. All components are in place; marketing, participant selection, guidelines, accounting, target areas, and trained staff. This will make start-up quick and seamless. The City has not received additional funding for this program since 2009 and CDBG and HOME funding have also declined by 35% resulting in a much lower level of service than was provided by the City in the past. According to RealtyTrac, foreclosure activity in Tacoma took a leap in May 2012 to more than double the March level. Approximately 250 homes in Tacoma are currently in foreclosure and this figure appears to be growing with many more previously foreclosed homes remaining vacant. This level of foreclosure is approximately .18 percent or more than double the level for the State of Washington and higher than the National average as Tacoma is a lower income area. According to Census/Community Survey information, incomes in Tacoma are 8% below State and Pierce County levels and substantially below King County. All 2009 funding to address the foreclosure crisis are exhausted with blight a continuing and growing problem in Tacoma neighborhoods.
Programs which have previously demonstrated success Tacoma has been doing Down Payment Assistance loans since 1993; some years making as many as 125 loans. In recent years the bulk of the DPA loans have gone toward the purchase of foreclosed houses but funding for this activity has been substantially reduced with the cuts in CDBG and HOME funding and elimination ofNPS funds. The intent with this grant is to do an extension of our NSP program using the same agencies as partners; Tacoma Housing Authority, Homeownership Center of Tacoma and Habitat for Humanity, and funding the same/similar activities; down payment assistance through the TCRA; and purchase, refurbish and resale of vacant, foreclosed homes in targeted neighborhoods to income eligible first-time homebuyers by our partner agencies. Tacoma is familiar with these activities and partners and has a good record of performance
Neighborhood Stabilization Program (NSP) Summary In 2009, Tacoma received $3,555,478 NSP funds which were spent by the following agencies:
• The City of TacomaiTacoma Community Redevelopment Authority provided down payment Assistance loans up to $20,000 to 39 first-time, income eligible homebuyers to purchase and occupy.
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• The Homeownership Center of Tacoma purchased and refurbished and re-sold Eleven (11) foreclosed, vacant houses in targeted neighborhoods of Tacoma; areas hardest hit by foreclosure. HCT is still revolving these funds to do more houses.
• The Tacoma Housing Authority purchased, refurbished and resold 11 foreclosed, vacant houses in Tacoma's most vulnerable areas and converted them into clean, safe and comfortable housing units for several of its low-income clients. THA is still revolving these funds to do more houses.
• Habitat for Humanity purchased a derelict house on a large site. The house had long been a blight on the neighborhood. Habitat worked with the Fire Department that used it as a practice bum. Once the debris was cleared from the land, this left 13 Habitat home-sights with new houses which are well underway.
Greatest public benefit per dollar spent and low administration The following is an example of funding received in 2009 as described above:
A1(ency Allocation Estimated Levera1(edfunds* Homeownership Center $ 1,202,350 $ 2,000,000
3,555,478 $10,000,000 *2009 NSP funds leveraged at approximately 3 to 1 (Funds generated from private sources)
With the requested settlement funding, we expect to have the DP A funds invested within one year. The other three agency programs will take longer; perhaps as long as two to three years to fully invest their portion of the funds in the best way to meet the needs ofthe community. This includes time to reinvest funds as houses are sold and new foreclosed, vacant properties are purchased. If, after 18 months, any of the agencies have failed to make reasonable progress toward accomplishing their goals, reconsideration will be given to possibly reallocating its funds to an agency that is able to produce better results. The City has a strong track record in the investment of public dollars for the purposes of housing rehabilitation. Each year the City does 10-15 housing rehabilitation projects and more than 30 housing repair projects in addition to approximately 75 down payment assistance projects. In the last three years CDBG and HOME funds have been cut by 35%.
Ifthis grant request is successful the programs described below will support the option/goal in section # 1- 6 -Funding for housing remediation and anti-blight projects.
This funding request also supports the following criteria in # 3 as indicated below: • To reach unserved popUlations • Offering the greatest public benefit potential per dollar spent • Provide a unique or necessary service to consumers
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• Provide geographic diversity • Operate with low administration costs • For programs which have previously. demonstrated success
If funding is received, the Homeownership Center of Tacoma will be able to continue the @HOME (Affordable Tacoma Home Ownership Made Easy) program which currently uses Neighborhood Stabilization Program funding to purchase foreclosed homes, rehab them, and then sell these refurbished homes to first time buyers with household incomes below 120% AMI. In addition, the @HOME program can continue to assist low/moderate income buyers with a second mortgage of up to $40,000 which requires no monthly payment and accrues no interest. The @HOME second mortgage bridges the gap between the amount the buyer is able to borrow from traditional lending sources and the sale price of the home, insuring that the mortgage payment is affordable since it is based on the amount that was borrowed on the first mortgage which is based on the buyers income - not the sale price of the home. Using this model, HCT has purchased, rehabbed, and sold ten homes to income qualified clients with an additional two homes currently under rehabilitation.
With requested funding the Tacoma Housing Authority will identify homes whose owners are headed for certain foreclosure. If foreclosure is not avoidable, THA would purchase the home from the owner, on a short sale ifpossible working with the mortgage lender. THA would then renovate the homes and resell them to eligible buyers. This approach solves several problems with the NSP 1 model. First, it allows the owner to avoid having a foreclosure on his or her credit record. Second, it allows a purchase from the owner rather than from the bank. This can be an advantage because we have often found the banks' sales function to be slow and difficult. Third, it allows for a purchase before the home has sat vacant. This avoids a prolonged vacancy for the neighborhood. It also makes extensive repairs less likely to be necessary and thus purchases and re-sales less costly. THA would purchase vacant, foreclosed-upon homes from the bank, renovate these homes, and resell the homes to eligible buyers. THA will seek to focus both activities on defined geographic areas where foreclosures have been most prevalent and where home ownership investments are most needed. These areas are the Hilltop and East Tacoma.
Tacoma/Pierce County Habitat for Humanity will purchase and rehab 6-8 foreclosed properties in the Hilltop, Eastside and South Tacoma areas of the City of Tacoma for sale to low income families. Habitat will provide construction expertise and labor, pre-purchase home counseling as well as post purchase counseling. Habitat for Humanity will use its standard operating model that includes matching funds. Budget Match:
$15,000 per unit from Shop as land acquisition $25,000 per unit in volunteer hours ($20lhr) $10,000 per unit in skilled volunteer hours $5,000 per unit in donated materials Total estimate: $ 55,000 per unit estimated match
E. Describe the demographics of the consumers you serve. Please provide supporting data or statistics.
Tacoma has a population of approximately 194,000; 76,000 households. The population is very diverse; more so than surrounding communities. Our population is comprised of
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approximately 69% Caucasian, 12% Black/African American, 8% Asian, and 6% of households with two or more races. We also have large Hispanic and Russian communities. Tacoma's median household income continues to be 8% lower than Pierce County and approximately 8% lower than the state.
Three of the four programs (TCRA, HCT and THA) will focus on homebuyers in the 80% to 120% area median income (AMI) group. Focusing on this income level of home buyer insures a higher success ratio of buyers that will be able to stay in the homes they purchase and properly maintain those homes; both inside and out. Habitat will continue to focus on the lower income (50% AMI and below) due to its organizational policies. However, it has a very high success rate with that income demographic due to the policies and procedures specific to Habitat buyers.
F. Describe the geographic scope of your project.
There are three areas of Tacoma that we focused on to invest our NSP funds due to the high foreclosure rate in those areas of the city; the Hilltop, the Eastside and the South Tacoma neighborhoods. See attached map at Exhibit "7." These are still the areas with the highest rates of foreclosure; see RealtyTrac data at Exhibit "2" and Housing and Labor Market Trends at Exhibit "3" Other supporting documentation is contained in NSP Census Tracts at Exhibit "4", low/mod household income by Census Tracts at Exhibit "5", Demographic and Income Profiles at Exhibit "6", and Target Areas for Foreclosure Settlement Funds at Exhibit "7."
G. Identify the total number of consumers you expect to serve during the life of this grant.
We expect to provide down payment assistance to approximately 40 families through the Tacoma Community Redevelopment Authority Down Payment Assistance Program and assist another 30 to 40 families through the three other organizations; THA, HCT and Habitat. So the total number of households served would be about 80, but the total number residents living near those foreclosed, vacant properties would be much greater; double that number, at least. For every vacant home that becomes an owner/occupied home; not only it, but the surrounding homes are typically improved. Lawns are mowed, fences repairs, landscaping cleaned up, roofs washed, siding and trim painted, and windows washed. This has a total revitalizing affect on the surrounding neighborhoods. Everyone. wants to have their property look as good, if not better, than their neighbor's property.
This will also discourage surrounding property owners who may be "under water" with their mortgage debt from walking away from their house. They may reconsider and decide to stay, make improvements to their home and hope the market will return to some level of financial stability so they can regain the equity in their home in the future.
H. If this is not a new project, describe what changes are being made to an existing project.
We learned from NSP 1 that it is very difficult to put restrictions on the purchase of foreclosed homes from lenders. Restrictions such as requiring the house to be purchased for less than the appraised value, was a huge barrier to accomplishing the goal of the program.
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Other challenges to be remedied with our DP A program using the settlement funds will be to make our DPA money compatible with purchase/rehab programs such as the FHA 203(k). Our down payment assistance program funded with these settlement funds will be able to be used to purchase homes at appraised value; not require the purchase price to be less than the appraised value. This was a real challenge of the NSP funding because the lenders did not want to sell the homes even at a 1 % discount; thinking the market was rebounding and they didn't want to miss out on the regained value.
The DP A will be able to be used with a purchase/rehab program such as the FHA 203(k) Purchase Rehab so homebuyerscan purchase homes that need work done to restore them to safe, comfortable abodes. So often, homes that have been foreclosed are in pretty bad condition; either having been damaged by the previous owner out of anger over the loss of their home, or by vandals after the home became vacant. Many times, vandals break into vacant homes to steal the appliances, fixtures, copper wire and plumbing; anything of any value. Allowing homebuyers to purchase these vacant homes with the intent and the financing to make the needed repairs will definitely reduce the blight affect ofthese vacant houses on neighborhoods. We will also require homebuyers to complete both a pre-purchase and a post-purchase homebuyer's class sponsored by the Washington State Housing Finance Commission.
1. Describe how the net benefit or positive outcomes can be measured at the end of the project.
The number of homeowners occupying foreclosed homes will be measured. At the end of this project, it is anticipated that 80 (eighty) new homeowners will be occupying houses that were vacant, magnets for criminal activity and graffiti prior to this opportunity. But even more importantly, the improvement to the surrounding properties will be a testimonial to the affect of improving one home and the impact that has on the neighborhood; resulting in all the neighbors pitching in to clean up their own properties. This is like a "reverse" domino effect. Instead of all the properties deteriorating; the neighbors start making improvements and private investment will exceed the public expenditure. The program will also measure this improvement.
As an "Entitlement Community" for federal funds, every five years the City develops its Consolidated Plan for Housing and Community Development for the Department of Housing and Urban Development (HUD), and each year provides an Annual Action Plan to the Consolidated Plan. These plans are required by HUD in order for the City to receive its portion of the federal funds. The development of the five-year Consolidated Plan goes through a rigorous public outreach process; typically with a consultant team working with the Mayor and City Council, the City Manager, the Planning Commission, the TCRA, the Neighborhood Business Districts, the Neighborhood Councils, the Tacoma/Pierce County Affordable Housing Consortium and other community organizations to identify Tacoma's housing and community needs. The Annual Action Plan, which supports the goals and objectives in the Consolidated Plan, goes through a similar (but less rigorous) community outreach process. It is reviewed by the Neighborhoods and Housing Committee (subcommittee of the City Council), and ultimately approved by the City Council prior to submission to HUD. Included in the Annual Action Plan are goals and objectives that these funds will help us achieve: increasing the availability of affordable, permanent housing in
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standard condition to low and moderate income families; improving the safety and livability of neighborhoods; and eliminating blighting influences and the deterioration of property.
Following the year's activities, the City submits to HUD the Consolidated Annual Performance and Evaluation Report (CAPER) that describes the City's accomplishments for the past year using the CDBG and HOME funds. One ofthe most remarkable features ofthis report each year is the amount of money leveraged. This information is also tracked. This is especially important during this time of declining funding. All ofthese processes will help us measure our accomplishments.
J. Have you applied for an equivalent grant in the past, and if so, which entity and when?
Tacoma received NSP funding in 2009. Tacoma applied for NSP III funds in 2010, however due to the limited NSP III funding available and the focus on existing efforts, Tacoma was not funded. As noted in other sections Tacoma has a long history and experience with CDBG and Home funding.
K. If you intend to collaborate with other organizations, please provide a letter of support from that organization.
We will be collaborating with multiple partners in order to insure that a full array of foreclosure intervention and anti-blight efforts are carried out throughout the City and County. These are the same organizations we partnered with for the NSP funds.
1. Tacoma Housing Authority - Provided assistance to eleven homebuyers of vacant, foreclosed houses with its NSP funds. The NSP funds were loaned and will be repaid to THA over time to be reinvested in similar activities.
2. Homeownership Center of Tacoma - Purchased refurbished and resold vacant, foreclosed homes in targeted neighborhoods to income eligible first-time homebuyers. The repayments go into a revolving loan: fund to be used again for similar activities.
3. Habitat for Humanity - Purchased a blighted, vacant, foreclosed house on a large parcel; used the house for a fire department training burn, and are constructing 13 new Habitat homes on the site.
In addition, we have been working with, and supporting, the following organizations:
1. South Sound Outreach - Mortgage counseling for buyers in serious danger of foreclosure (Certified Mortgage Counselor)
2. PC2 - Mortgage counseling for people with a disability who are in serious danger of foreclosure (Certified Mortgage Counselors)
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3. Pierce County Center for Dispute Resolution - Providing mediation service between the borrower and the mortgage holder in accordance with the Washington State Foreclosure Fairness Act
Tacoma strongly supports the applications for these agencies for more HUD certified counselors and professional mediators. There is such a shortage of counselors and mediators available for an area of the state with the highest level of foreclosure. These organizations need support for more counselors and mediators. We also work closely with Pierce County Housing Programs and Lakewood Housing Programs in our overall efforts to address the housing challenges in each of our jurisdictions. We strongly support their applications for settlement funds as well. We have all been working collaboratively to put together complimentary applications that will result in the best overall impact on the foreclosure situation throughout Pierce County. See letters of support -Exhibit #1.
L. Please provide an organization chart for your organization.
Attached at Exhibit "9"
M. Please provide three references familiar with your organization's activities and their contact information.
Connie Brown - Executive Director, 253 (627-0949 Tacoma/Pierce County Affordable Housing Consortium [email protected] The City of Tacoma/Tacoma Community Redevelopment Authority (TCRA) has been a member of the Consortium for many years.
Craig Nolte, Regional Manager, Community Development Seattle Branch, Federal Reserve Bank of San Francisco 2700 Naches Ave SW Renton, WA 98057 PH: (206) 396-2192 or (800) 227-4133 Ext. 50797 Email: [email protected] Craig has worked with Ric Teasley since 2009; on the 7 Foreclosure Intervention Workshops Tacoma put on as well as other foreclosure panels and committees.
Genny Matteson, Neighborhood Stabilization Program Manager, (360) 725-3093 W A State Department of Commerce [email protected] Genny provided oversight of the NSP program at the Washington State Department of Commerce. She can tell you that we have did a good job of implementing the NSP programs; monitoring the participating agencies; and completing the paperwork such as draw requests and completion data.
V. PROJECT BUDGET
As noted previously, this grant must be used to provide additional services and not merely replace existing services or supplant existing funding. No current salaries or benefits may be
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funded using grants provided by the AGO unless expressly and explicitly granted, in advance and in writing, by the Committee. The Committee reserves the right to request a more detailed budget prior to selection.
• TCRA Down Payment Assistance: (G&S) $818,000 will be used to provide DPA loans to 40 homebuyers • HCT, THA and Habitat will use their G & S funds to purchase, refurbish and re-sell foreclosed, vacant homes
B. What percent of your total budget does this funding represent?
VI.
For FY 2012 - 2013, Tacoma is to receive $3,123,000 of combined federal CDBG and HOME funds which are shared with our local housing providers/development agencies. So $4 million dollars would represent a substantial portion of the up-coming year's budget. These settlement funds will also be leveraged by providing a portion of the down payment on larger, privately funded mortgage loans. Tacoma's Down Payment Assistance funds are declining rapidly with the reduction of federal funds; 35% reduction of CDBG and HOME funds over the past two Fiscal Years. These Settlement Funds will greatly enhance our ability to put owners in vacant, foreclosed houses.
C. If the project will be funded in part from other sources, identify those sources and the funding amounts.
A.
This particular project will be funded solely by the grant. The City will continue to carryon its housing repair and rehabilitation programs for low-income seniors, persons with a disability as well as low-income families. These monies leverage other sources of funds at approximately 3 to 1 ratio. PROJECT ADMINISTRATION Identify within your organization who will be directly responsible for the following project components: (a) administration, (b) fiscal, (c) service delivery. Attach a current resume for the agency director, and the lead project staff person, and a current organization chart.
1. Richard (Ric) Teasley will be responsible for the administration of this project. Ric has more than 33 years in the housing division, the past 17 years as supervisor and manager ofthe division. Each year the City receives more than $3 million federal CDBG and HOME funds for its housing, community and economic development activities and Human Services. Tacoma directs 50% of the CDBG funds and all ofthe HOME funds to its housing programs. The City invests these housing funds through the Tacoma Community Redevelopment Authority (TCRA); a public development authority which was created in 1973 as an arm of the City government. The TCRA is comprised of 10 business professionals with backgrounds in real estate, law, accounting, development and banking. The TCRA Board of Directors provides oversight of the lending activities; much the same as a bank board. The housing division provides direct services in the form of repair and
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rehabilitation assistance loans to qualifying low-income residents; it provides down payment assistance to low-income homebuyers; and contracts with the nonprofit housing developers and providers to build new affordable housing and to maintain their existing housing inventories.
2. The TCRA has an accounting staff of two professional accountants, including one senior accountant with more than 20 years experience with TCRA, who oversee more than 1,200 loans (housing and business loans) with a value of more than $55 million dollars. The TCRA has a flawless accounting record. It is audited by the State Auditor every year as part of the City's overall audit. The TCRA has not had a finding or a Management Letter of Concern in more than 20 years.
3. The housing division has a halftime down payment loan processor. The federal funding for our down payment assistance is running out. If this proposal is funded, the down payment assistance portion will be handled by this half-time person. He has 20 years experience processing down payment assistance loans for the TCRA; typically processing between 75 and 120 DPA loans each year.
4. There is a Contract and Program Auditor in the housing division who oversees all the contracts with our nonprofit housing provider/developer organizations. She also oversaw our previous NSP program; contracting and payments. She will be responsible for the same oversight activities under this proposal. She has more than 20 years experience working with our housing programs, nonprofit housing organizations, and contracts.
5. The three partner organizations; Tacoma Housing Authority, Homeownership Center of Tacoma, and Habitat for Humanity each have their own professional staff who we have worked with for many years; including the organization and implementation of the NSP program.
6. Describe what steps your organization will take to ensure that the project will serve its intended purposes and be completed on time.
Having the experience of not only the NSP program behind us, but also more than 30 years experience of implementing and overseeing federal CDBG and HOME funded housing projects, we have the staff and processes in place to insure that the money is used for its intended purpose and the goals accomplished within the stated timeline.
Once awarded the funding, we will contact our partner organizations and inform them that Tacoma has been funded, including our partnership with each of them. Our Contract and Program Auditor will begin the process of getting the contracts ready based on our previous NSP contracts with these organizations. Once the contracts are signed, the agencies will begin their efforts to start up their programs.
Our staff will do quarterly monitoring of each agencies performance to insure they are on track to accomplish their goals within the time allotted.
7. Describe how you plan to measure and evaluate the success of your project and include samples of evaluation tools if available.
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Success will be measured by multiple techniques. First of all, the number of foreclosed, vacant houses that are reclaimed and occupied by new owner/occupants. Based on the number of houses reclaimed with the Neighborhood Stabilization Program funds, we expect that TCRA will make approximately 40 Down Payment Loans to new homeowners who will occupy the previously vacant, foreclosed homes.
It is expected that the Homeownership Center of Tacoma and Tacoma Housing Authority will purchase, refurbish and resell 10 - 12 foreclosed homes each, and that Habitat for Humanity will account for another 12 to 15 homes being reclaimed from foreclosure and reoccupied by owner/occupants. These accomplishments are pretty easy to measure by the numbers. A more difficult measure is subjective; the impact that getting new owners into foreclosed, vacant houses has on the neighborhood. This will be a judgment call based on before and after evaluation of the appearance of the houses in the immediate surrounding neighborhood.
VII. CERTIFICATION
I certify that I have authority to submit this proposal and that the information in this proposal is true and accurate. If my organization is faith-:-based, I understand that federal and state law prohibit the use of public funds for religious worship, exercise, instruction, or support of any religious establishment.
I understand that my organization will not receive reimbursement for any costs incurred in preparing this proposal. If awarded funding, I understand that our proposal will be incorporated into the final contract.
Printed Name and Title:
Signature
(by entering name here), form is electronically signed):
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Exhibit 1
Exhibit 2
Exhibit 3
Exhibit 4
Exhibit 5
Exhibit 6
Exhibit 7
Exhibit 8
Exhibit 9
Exhibits for City of Tacoma Proposal
Letters of Support
RealtyTrac Summaries as of May 2012
Housing and Labor Market Trends - Fed Res Bank of SF
NSP Census Tracts
Low/Mod Income Households by Census Tract
Demographic and Income Profiles for Tacoma
Target Areas for Foreclosure Settlement Funds
Pierce County Home Values Plummet 28.9% of Mortgage in Pierce County are Underwater
Organization Chart City of Tacoma Community and Economic Development Housing Division
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EXHIBIT 1
Letters of Support for the Settlement Fund Proposals
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City of Tacoma Mayor Marilyn Strickland
June 26, 2012
Rich Zwicker Consumer Protection Division Washington State Attorney General's Office 800 Fifth Avenue, Suite 2000 Seattle, WA 98104-3188
RE: Request for Proposals to Stop or Ameliorate the Effects of the Foreclosure Crisis
Mr. Zwicker:
The City of Tacoma continues to experience a high rate of foreclosure which negatively impact the quality of life and businesses of residents within the city and its surrounding areas. According to foreclosure statistics from RealtyTrac, a foreclosure tracking agency, Tacoma and Pierce County experienced substantial increases in the number of foreclosures in May; resulting in vacant houses that become magnets for graffiti, homeless families, higher dropout rates, and increased crime. It is with grave concern over this situation that we are requesting the State Attorney General's Office favorably consider the applications of Tacoma and its collaborative partners to help ameliorate the challenges resulting from these foreclosures.
In an effort to best address the foreclosure situation throughout Tacoma and the region, a collaborative of nonprofit organizations and jurisdictions have worked jointly this past month to develop individual proposals for portions of the foreclosure settlement funds. Members participating in this effort include: South Sound Outreach, Pierce County Coalition for Developmental Disabiliaties, Pierce County Center for Dispute Resolution, and the jurisdictions of Pierce County, Lakewood and Tacoma.
This letter of support endorses the proposals submitted by the aforementioned agencies and jurisdictions that are applying for funding. Each has substantial successful experience with foreclosures; including counseling, mediation and revitalizing neighborhoods by assisting homeowners in relocating into vacant, foreclosed homes.
RealtyTrac shows that Tacoma has the highest number of foreclosures of any city in the state; Pierce County has the second highest number of foreclosures of any county in the state. Unfortunately, there are limited resources available to local jurisdictions and agencies to address the foreclosure situation. These settlement funds offer a rare opportunity for jurisdictions and agencies to work together to stop preventable foreclosures, and when that is not possible, to ameliorate the effects of foreclosure on neighborhoods by re-establishing owner/occupancy in foreclosed homes. This greatly reduces the negative impact on the immediate surrounding neighborhood and the community.
I respectfully request your funding of these jurisdictions and agencies at the full amount of their requests in order to best address the foreclosure situation throughout Tacoma and the region. We appreciate your support and financial assistance to help achieve our area foreclosure reduction goals.
Sincerely,
Marilyn Strickland Mayor
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Douglas G. Richardson Mayor
Don Anderson Deputy Mayor
Michael D. Brandstetter Councllmember
Mary Moss Council member
Jason Whalen Councilmember
Marie Barth Councilmember
Paul Bocchl Councllmember
Andrew E. Neiditz City Manager
TO: Rich Zwicker Consumer Protection Division Washington State Attorney General's Office 800 Fifth Avenue, Suite 2000 Seattle, WA 98104-3188
June 22, 2012
RE: Request for Proposals - Washington State Attorney General Foreclosure Grant
Dear Mr. Zwicker:
In an effort to mitigate the destructive impacts of the foreclosure crisis here in Pierce County, a collaborative of nonprofit organizations and local jurisdictions have worked jointly to develop a regional approach to your recent request for proposal. This coordinated effort, while allowing each party to develop its own localized proposal addressing the effects of the foreclosure crises, provides for a much greater county-wide impact. Members of this effort include: South Sound Outreach, the Pierce County Coalition for Developmental Disabilities (PC2), the Pierce County Center for Dispute Resolution, and the jurisdictions of Pierce County, Tacoma and Lakewood.
This letter of support endorses all of the proposals submitted by the Pierce County agencies and jurisdictions that are applying for funding. Each has successful experience dealing with foreclosures including counseling, mediation, blight removal and the revitalization of neighborhoods by assisting homeowners with the acquisition of foreclosed properties.
Pierce County continues to experience the foreclosure fallout of the economic recession with the county ranking second among county foreclosure rates and well above the national average. Foreclosures have hit Lakewood hard as well with foreclosure rates above the statewide average~ This appears all the more troubling when comparing Lakewood's existing low homeownership rates as compared to the state and national averages. According to the 2010 U. S. Census, Lakewood's homeownership rate stands at 46.5 percent, far below the statewide average of 63.9 percent or the national average of 65.1 percent. With foreclosure rates predicted to climb, Lakewood's already dismal
6000 Main Street SW • Lakewood, WA 98499-5027 • (253) 589-2489 • Fax: (253) 589-3774 www.cityoflakewood.us
39-019
· ;-: .. -~' '"
Foreclosure Grant Request Page 2
homeownership rate stands to be further reduced, especially among low-income families.
Unfortunately, there are limited resources available to local jurisdictions and agencies to address the foreclosure situation. These settlement funds offer a rare opportunity for jurisdictions and agencies to work together to stop preventable foreclosures, and when that is not pOSSible, to ameliorate the effects of foreclosure on neighborhoods by reestablishing owner/occupancy in foreclosed homes, This greatly reduces the negative impact on the Immediate surrounding neighborhood and throughout the community.
I am writing to urge your funding of these jurisdictions and agencies at the full amount of their requests in order to best address the foreclosure crisis throughout Pierce County. Through this partnership and coordinated regional effort, the realization of a positive county-wide impact is within reach. We appreciate your support and financial assistance to help achieve our area foreclosure reduction goals.
Sincerely,
----..'-
/L./ ~ ~.--"L~-~-~ c~ . Richardson Mayor, City of Lakewood
39-020
t~.~ Pierce County "G:;t. Oifice -;fu;~ou~;~--E-xe-c-u-tl-ve-----
I understand that the Foreclosure Settlement Funds require a strong network of Housing Professionals to carry out the mission of reaching those affected by the foreclosure crisis.
To that end, a group of committed staff from the cities of Tacoma and Lakewood, Pierce County Government and three non-profits agencies; South Sound Outreach Services, PC-2 and The Pierce County Dispute Resolution Center have been meeting to discuss their roles with the target population and how to best provide services.
Pierce County continues to experience extremely high foreclosure filings, much higher than the national average. Awards ofthe Settlement monies to Pierce County entities will provide Counseling, mediation, acquisition and rehabilitation of blighted homes as well as a boost to our local economy.
All Pierce County applicants share a common goal of improving the lives and overall wellbeing of Pierce County residents. I urge the review committee to fund the applicants from Pierce County as the proposed projects will make a lasting difference in our Communities.
Rich Zwicker Consumer Protection Division Washington State Attorney General's Office 800 Fifth Ave., Suite 200 Seattle, WA 98104-3188
Dear Mr. Zwicker,
JOYCE MCDONALD Councilmember, District No.2
On behalf of the Pierce County Council I am writing this letter to support and confirm applications for funding from the jurisdictions of Pierce County, the cities of Tacoma and Lakewood and three local nonprofit agencies in Pierce County for monies available to assist Pierce County residents affected by the foreclosure crisis.
Representatives from the three jurisdictions as well as South Sound Outreach Services, PC2 and the Pierce County Center for Dispute Resolution have been meeting to discuss their applications for funding and the collaboration between each entity to best serve Pierce County residents.
Pierce County continues to experience extremely high foreclosure filings which are much higher than the national average. These settlement dollars offer the opportunity for collaboration of both governmental agencies and non-profits to reach those displaced through foreclosure action.
We realize that working collectively provides us with greater opportunities to reach those most in need and appreciate your favorable review of the applications from the Pierce County community.
Sincerely,
/Jot,v fit tzOmLtL~~ Joyce McDonald Chair of the Pierce County Council
39-022
!/l;11p inn
June 25, 2012
Rich Zwicker Consumer Protection Division Washington State Attorney General's Office 800 5th Avenue, Suite 2000 Seattle, WA 98104-3188
Re: Washington State Attorney General's Office Request for Proposals - Avoid Preventable Foreclosures
or Ameliorate the Effects of the Foreclosure Crisis
Dear Mr. Zwicker:
To best serve clients South Sound Outreach, a 501c3 nonprofit serving Pierce county, received approval
as an independent HUD Housing Counseling Agency in 2010. Since then SSO has provided counseling
and education to 585 Pierce County homeowners. Currently we serve clients in need of foreclosure
prevention counseling but the demand is exceedingly high. Pierce County foreclosures trend higher that
the national average and continue to rank second in foreclosures in Washington. Daily we partner with
agencies and local jurisdictions to try to assist as many clients as possible but we are all limited due to
such a high demand for services.
Partnering nonprofit agencies and local jurisdictions have formed a collaborative to jointly develop a
regional approach to the recent request for proposal (RFP) from your office. Each member is
experienced in dealing with foreclosure prevention including counseling, mediation, blight removal and
revitalization/ameliorating offoreclosure effects. Collaborative members include: The Pierce County
Coalition for Developmental Disabilities (PC2), the Pierce County Center for Dispute Resolution, South
Sound Outreach and the jurisdictions of Pierce County, Tacoma and Lakewood.
This collaborative has developed a comprehensive approach for the RFP which allows each partner to
develop individual and localized proposals that address measures to help alleviate the foreclosure crisis
in Pierce County.
The settlement is an opportunity to proVide additional counseling resources to help address the demand
and to work together to prevent foreclosure. It also provides help in new ways like a discretionary
arrearage reduction fund which is an innovative concept that would provide tools previously unavailable
in Pierce County and down payment assistance for the purchase of already foreclosed properties
thereby rebuilding and stabilizing neighborhoods with empty housing units.
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On behalf of the South Sound Outreach Board of Directors, I respectfully request each collaborative
member receive the full amount of respective funding requests. The collaborative intention is an
ongoing partnership for Pierce County. Full funding would help realize a vast increase in homeowners in
Pierce County that are able to access foreclosure prevention counseling and would allow for tools that
are vita I for ameliorating the effects of the foreclosure crisis.
As a collaborative, we greatly appreciate your support and financial assistance to help lessen the
region's foreclosure crisis and to offer additional assistance to those in need.
Sincerely,
Roberta Marsh
Executive Director
39-024
Board of Directors Dale Golder, Chair
Bob Gee Dr. Alan Gill Tom Pagano
Timothy Williams
Steering Committee Dale Colin
Carolyn Jones Scott Lewis
Michael Raymond
Staff BethAnn Garteiz, Director
Shawna Franklin Diane Larsen Tami McGrath
Jauna Balderston Todd
June 26,2012
Mr. Rich Zwicker
Empowering individuals with developmental disabilitie~ and their familie~ with respect for all perspectives.
Consumer Protection Division Washington State Attorney General's Office
800 5th Avenue, Suite 2000 SeaUle, WA 98104
Dear Mr. Zwicker:
The Pierce County Coalition for Developmental Disabilities (PC2) is pleased to write this leUer in support of the proposals submitted by our Pierce County partners in response to the Attorney General's Office RFP for projects to help Washington homeowners avoid preventable foreclosures and ameliorate the effects of the foreclosure crisis.
The Cities of Tacoma and Lakewood, Pierce County, South Sound Outreach Services, the Fair Housing Center of Washington, the Pierce County Center for Dispute Resolution, and PC2 have partnered in developing this unified approach to the enormous problem of foreclosures in our community. Each of these agencies and jurisdictions have extensive experience addressing the foreclosure and urban blight problems in Pierce County. This county-wide effort will address the complex needs of Pierce County citizens in retaining safe, healthy, appropriate housing. This coordinated effort will result in the greatest public benefit for the dollars spent in Pierce County.
In PC2's continuing efforts to meet the needs of individuals who experience a disability, we have expanded our services. Previously, our services focused on information/educationlreferral. In 2006, we added a Homeownership Program, which provides down payment assistance to individuals who experience a developmental disability or families with a son/daughter who experience a developmental disability. In order to provide needed pre-purchase counseling, we became a HUD-approved housing counseling agency in 2007. In 2009, given the foreclosure crisis, we expanded our Homeownership
3716 Pacific Avenue Suite A. Tacoma, WA 98418 • 253-564-0707 • 1-877-DD-LINKS Fax: 253-564-0702 • E-mail: [email protected] • Website: www.pc2online.org
39-025
Program to include foreclosure counseling. These programs have enabled us to provide foreclosure counseling to 120 households. Additionally, PC2 has provided nearly $1.15 million in down payment assistance to 88 household members in Pierce County. With funding from the AGO Grant, we will be able to expand our program capacity to serve more individuals who experience a disability, and their families, as they work toward housing stability and economic recovery.
On behalf of our Board of Directors and the clients we serve, we thank you for your support, as we all work to assist the most vulnerable of our citizens.
Sincerely,
C \ ~,-, 1)\'~ ~~~~~~(~~ J~\fJ Executive Director
39-026
June 26, 2012
Consumer Protection Division
PIERCE COUNTY CENTER FOR DISPUTE RESOLUTION Helping our community peacefully resolve conflicts
Washington State Attorney General's Office 800 Fifth Avenue, Suite 2000 Seattle, Washington 98104-3188
Attention: Rich Zwicker, Paralegal
Letter of Support for Funding Resolution Washington's Foreclosure Mediation Program
Dear Washington Consumer Foreclosure Remedies Fund Committee:
Please accept this leiter of support for our county-wide collaborative efforts. This letter of support endorses all of the proposals submitted by the following Pierce County not-for-profits and agencies: South Sound Outreach, IJierce County Coalition for Developmental Disabilities (PC2), the jurisdictions of Pierce County, Tacoma and Lakewood, and Pierce County Center for Dispute Resolution (through Resolution Washington).
Our overarching goal is a county-wide comprehensive approach with our local partnerships to allow each partner the ability to develop individual and localized proposals that address measures to help alleviate the foreclosure crisis in Pierce County. Combined efforts will address the such needs as: borrower education, pre-foreclosure options and resources, counseling for pre-through-post foreclosure, mediation education and coaching for both borrowers and beneficiaries, blight removal, neighborhood revitalization, and effOlts to assist future homeowners with acquiring foreclosed properties.
To date, the Pierce County Center for Dispute Resolution has managed over 140 foreclosure cases. About 80% of the borrowers who come to mediation are ill-prepared and without housing advocates. There is also a noticeable lack of minority clients served through our services. Our hope is that the combined efforts of Olir local agencies will address these needs as well as those in the abovementioned paragraph.
Through the Resolution Washington request for proposal, and as an effort to support the needs of Pierce County Residents, we are requesting the extra support necessary to:
• Deliver quality mediation services to homeowncrs and beneficiaries in Washington Statc. • Coach and support parties and their legal representation in preparing for mediation as an
alternative dispute resolution process to maximize collaboration. This often means changing the dynamics of communication from an adversariallitigation mode to a more collaborative problem solving style.
• Train, coach and mentor volunleer foreclosure mediators in identifYing mediation best practices and adjusting to the Cha11ging needs of foreclosure mediation. Create a foreclosure mediation certification that any foreclosure mediator can acquire through DRCs.
• Coordinate our collaborative efforts with county and local government agencies, and not-forprofits; involved in dealing with foreclosure prevention, mediation and mitigation efforts.
738 Broadway, Suite 400· Tacoma, WA 98402 '253.572.3657' Fax: 253.572.3579' ww~,.pccdr.org PCCDR is a 501 (C) 3 llOn-profit org:l1Iization. All donatio11s are tax dcducubJe
39-027
PIERCE COUNTY CENTER FOR DISPUTE RESOLUTION
Helping our community peacefully resolve conflicts
• Support research and policy discussions around foreclosure prevention and mitigation eftorts. • Provide customized aftermath services to low income homeowners who need additional housing
stability SUppOlt with prospective landlords.
Please consider fully funding each of these agencies' requests in order to best address our county-wide efforts to support our local community. Through our multi-agency and multi-step process, we are able to more fully address ollr clients' individual needs and create a more stable community.
S .. inCCJ.!IJ./ II (J~ . ,/l1:HtjfflC1~v'''-'
JVl.aralise Hood Quan Executive Director, Pierce COllnty Center for Dispute Resolution
738 Broadway, Suite 400 . Tacoma, WA 98402·253.572.3657 • Fax: 253.572.3579' www.pccdr.org PCCDR is a 501 (C) 3 non-profit organization. All donations are tax deductible
39-028
June 28, 2012
Rich Zwicker
Consumer Protection Division
Washington State Attorney General's Office
800 Fifth Avenue, Suite 2000
Seattle, WA 98104-3188
RE: Request for Proposals to Stop or Ameliorate the Effects of the Foreclosure Crisis
Mr. Zwicker:
The purpose of this letter is to support the collaborative efforts of Pierce County, Tacoma and Lakewood in
conjunction with service agencies; South Sound Outreach Services and Pierce County Coalition for Developmental
Disabilities. We will develop the context of our endorsement while emphasizing the importance of addressing
causes and motivation for essential comprehensive treatments.
The Tacoma Branch NAACP has supported the City of Tacoma, nonprofit service agencies, lenders, real estate
professionals and volunteers hosting events for lenders and homeowners seeking mortgage modifications. This
consortium has worked diligently to find solutions to a variety of foreclosure related problems. As the foreclosure
crisis began to heavily impact our local economy this group carefully used limited resources to preserve
homeownershlp where possible. Nonetheless, foreclosure has laid bare many systemic and policy issues which
must be addressed if we are to restore healthy levels of homeownershlp in our communities. The proposals
municipalities and service agencies efforts are the essential first steps necessary for developing comprehensive
solutions to this vexing problem.
The complex nature of a financing model, few industry insiders fully understood, has a huge learning curve for
those attempting to intervene. For Instance, hosting homeowners and lenders did not move the process as
expected because a single investor of a securitized investment can, and often did, veto any attempt at mortgage
modification. Lenders had no incentive to renegotiate mortgages as long as foreclosure yielded a better return on
investment-leaving lenders with a greater Incentive to foreclose, sell at a lower price and collect foreclosure
insurance for the principal difference. Thus, many homeowners who met very stringent requirements were
thwarted in their attempt to gain modifications. The result for neighborhoods and communities is deteriorating
homes blight and depreciating tax bases. As the diminutive value of the settlement shows, the priorities of banks
are not consistent with homeowners, communities, neighborhoods and municipalities. These circumstances
expose systems at all levels that do not serve the greater good. Without a comprehensive effort to reform rules,
laws and business practices we risk further blight and value erosion as this process repeats for years to come.
What started as a problem disproportionately impacting communities of color; 8% of African Americans and
Latinos have lost their homes compared to 4.5% of whites and working class families has percolated throughout all
Washington communities forcing businesses to shed more employees further stalling our economy. With this
decline in homeownership nationally African American homeownership has declined to 1960s levels. Many
legitimate homeowners voices were drowned out by those Interested in maintaining the status quo. The
RealtyTrac reports cited in individual proposals should be an unequivocal call for.a comprehensive coordinated
effort to creatively address high levels of foreclosures In our region.
39-029
Thus, we conclude that a coordinated approach such as this is necessary, but in no way sufficient, to adequately
address the persistent problem of elevated numbers of foreclosures.
To be clear, the Tacoma Branch NAACP wholeheartedly supports the'systematic collaborative efforts of Pierce
County, Tacoma and Lakewood in conjunction with service agencies; South Sound Outreach Services and Pierce
County Coalition for Developmental Disabilities. Such collaborative leadership provides an assessment of need
from many perspectives and more complete solution. However, this effort by itself is the minimum initial
treatment for a more complex problem with healing the foreclosure wound. If we liken the foreclosure process to
a second degree burn; after the Initial treatment extremely painful debriding enables near complete healing. We
can ali agree, no matter the success of the treatment, avoiding future burns is more desirable.
In summary, our our choices are clear; provide a coordinated initial treatment, perform the painful debriding and
review and repair our business regulation and policies in light of an enduring economic reality to prevent
unnecessary future foreclosure "burns", This coordinated approach to forming grant proposals creates a more
comprehensive treatment for these muniCipalities, service agencies and community organizations who serve our
community. None have the ability to accurately predict the future, however, this coordinated IIfecycie approach is
informed by the lessons learned, refined strategies and empathy for individuals, families, neighborhoods and
municipalities committed to restoring homeownership as the key to community stability.
Sincerely,
~t?-/~~~oma Branch NAACP
2nd Vice President
39-030
TACOMA / PIERCE COUNTY
I-IOUSING CONSORTIUM
1323 South Yakima Avenue Tacoma WA 98405
June 26, 2012
Rich Zwicker Consumer Protection Division Washington State Attorney General's Office 800 Fifth Avenue - Suite 2000 Seattle WA 98104-3188
SUBJECT: SUPPORT FOR PIERCE COUNTY COLLABORATIVE PROPOSALS TO STOP OR AMELIORATE THE
EFFECTS OF THE FORECLOSURE CRISIS
Dear Mr. Zwicker:
The Tacoma-Pierce County Affordable Housing Consortium is well aware of the foreclosure crisis in Pierce County. The initial data from Local Initiatives Support Corporation [LlSC] from 2008 showed that this county was lithe neediest" in the State with regard to foreclosures, past due mortgage payments, and predatory lending, and that eight of the ten neediest Zip Codes were here as well. More recent data reflect ongoing effects of this situation.
Pierce County is still experiencing the foreclosure fallout of the economic recession. RealtyTrac, a reliable foreclosure tracking agency, shows that in May 2012 Pierce County had the highest ratio of housing units with foreclosure notices [1 in 550] in Washington. Pierce County's foreclosure rate is higher than the national average as well. Unfortunately, there are limited resources available to local jurisdictions and agencies to address the situation.
In an effort to best address the foreclosure situation throughout Pierce County, a collaborative of nonprofit organizations and jurisdictions have worked jointly this past month to develop individual proposals for portions of the foreclosure settlement funds. This collaboration of members met on several occasions to ensure that each application was not only best for their specific service, but it also fits well into the county-wide needs that are being addressed by the members of the collaborative. Members of this effort include: South Sound Outreach, Pierce County Coalition for Developmental Disabilities Pierce County Center for Dispute Resolution, and the jurisdictions of Pierce County, Lakewood and Tacoma.
The Affordable Housing Consortium supports and endorses the proposals submitted by the Pierce County collaboration applying for funding. Each organization has substantial successful experience
39-031
dealing with foreclosures including foreclosure counseling, mediation, and revitalizing neighborhoods by assisting homeowners get into vacant, foreclosed homes.
These settlement funds offer a rare opportunity for jurisdictions and agencies to work together to stop preventable foreclosures, and when that is not possible, to ameliorate the effects of foreclosure on neighborhoods by re-establishing owner occupancy in foreclosed homes. Owner occupancy greatly reduces negative impacts on the immediate surrounding neighborhood and the community.
I am writing to urge your funding of these jurisdictions and agencies at the full amount of their requests in order to best address the foreclosure situation throughout Pierce County. We appreciate your support and financial assistance to help achieve our foreclosure reduction goals.
Sincerely,
C4-~ ___ Connie Brown Executive Director
39-032
June 28, 2012
Mr. Rich Zwicker Consumer Protection Division Washington State Attorney General's Office 800 5th Avenue, Suite 2000 Seattle, WA 98104-3188
United Way of Pierce County
PO Box 2215 Tacoma, WA 98401 (253) 272-4263 (253) 597-7481 fax 'NWW.uwpc.org Dial 2-1-1 for help
RE: letter of Support for Pierce County's Collaborative Proposals to Address the Foreclosure Crisis
Dear Mr. Zwicker et al:
United Way of Pierce County is working in collaboration w.ith 2-1-1 and a number of Pierce County partners to respond to the Attorney General's Office RFP for projects to help Washington homeowners avoid preventable foreclosures and ame/forate the effects of the foreclosure crisis in Pierce County. Although there are individual proposals in front of the Attorney General's Office, Including Pierce County's role in a statewide 2-1~1 referral portal that is submitted by WIN2-1-1, we want to underscore that they are collaborative in nature and are intended to fully address our county-wide need. This is a concerted effort by which each organization focused on the needs of the community and the services they provide to ensure the best outcomes. This collaboration is made up of:
• City of Tacoma,
• City of Lakewood,
• Pierce County, • South Sound Outreach Services, • The Pierce County Center for Dispute Resolution,
• The Fair Housing Center of Washington, and
• PC2 • United Way of Pierce County (not seeking funding in this RFP)
• Pierce County 2-1-1
Each organization focuses on their strengths, While keeping the overall goal of addressing each of the issues of the foreclosure crisis in Pierce County, and are working together to provide a holistic solution to this problem. Together, our community is working together in the spirit of true collaboration in order to achieve the best results possible.
United Way of Pierce County implores you to fully fund the above-mentioned proposals to ensure that Pierce County residents get the help and services they need to keep their homes.
Sincerely,
Maureen Faccia Executive Vice President United Way of Pierce County
39-033
f
39-034
EXHIBIT 2
RealtyTrac Summaries as of May 2012
Tacoma, Lakewood, Pierce County, Washington State
And
National
39-035
Tacoma Foreclosure Rate and Foreclosure Activity Infonnation I RealtyTrac
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Foreclosure Home ~ U.S. • Washington • Pierce County • Tacoma, WA
Tacoma, WA Real Estate Trends 1,154 Foreclosure Homes I $132 ,989 Average Foreclosure Sales Price
Foreclosure Rate Heat Map What are new foreclosures as a percentage of the housing market? More info
1 in every 542 housing units received a foreclosure filing in May 2012
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New Foreclosures What areas have the highest amount of new foreclosure activity? More info
Total New Foreclosure Activity 241
611712012 39-037
Tacoma Foreclosure Rate and Foreclosure Activity lnfonnation I RealtyTrac
Tacoma • Pierce VI/as hi ngior. NationDiI
020 - 0.13%
'" D.15:';
(jj
0.15 -~ £ .~ c
:::J 0. 10 -' '0 O.{JS% (jj ClI
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fl..
0.00 -, Tccoma Pierce
Foreclosure Activity by Month - Tacoma, WA
Pre-Fored osure . Auction REO
200 -
100 -
50 -
Feb-12 p. a~-12
RealtyTrac Community - Discussions and Q&A
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Foreclosure Activity by Month How is each foreclosure stage trending? More info
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Lakewood Foreclosure Rate and Foreclosure Activity Information I RealtyTrac Page 3 of8
Foreclosure Activity and Home Price Index - Lakewood, WA
Data not available at this time.
Th is information is currently unavailable for Lakewood, WA
View trend data for pierce County. WA
Foreclosure Activity and 30-Year Interest Rate - Lakewood, WA
Total FlJrec!os lires . I terest Rate
10 -
80-
Z! . .,. :~
60 -: u cr ~ ::J
'-3
I UI 0 40 -(3 -2 OJ L-0
LL
20 -
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Geographica l Comparison - Lakewood, WA
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Foreclosures and Horne Price Index How do foreclosure activity and horne prices stack up against each other? More info
Foreclosure Activity and Interest Rate What impact do interest rates have on foreclosu re activity? More info
http ://www.realtytrac.com/trendcenter/defauit.aspx?address=Lakewood%2C%20W A %20... 6/ 17/2012 39-042
Lakewood Foreclosure Rate and Foreclosure Activity Infonnation I RealtyTrac Page 4 of8
Lakev.1ood • Pierce N ashin:gtonJ iii National
0.20 - 0.18""4 I
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Foreclosure Activity by Month" Lakewood, WA
Pre-Forecl osure . tillctiol1 REO .
20 -
15 -
10 -
5-
0-Dec-H J an-12 Feb- 12 Mar-12 Apr-u2 May-12
RealtyTrac Community " Discussions and Q&A
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6 Month Trend Rising
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http://www.realtytrac.com/trendcenter/default.aspx?address=Lakewood%2C%20W A %20... 6/17/2012 39-043
Pierce County Foreclosure Rate and Foreclosure Activity Infonnation I RealtyTrac
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Pierce County, WA Real Estate Trends 2,988 Foreclosure Homes I $147,548 Average Foreclosure Sales Price
Foreclosure Rate Heat Map What are new foreclosures as a percentage of the housing market? More info
1 in every 532 housing units received a foreclosure filing in May 201 2
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New Foreclosures What areas have the highest amount of new foreclosure activity? More info
Total New Foreclosure Activity 592
6117/2012 39-045
Pierce County Foreclosure Rate and Foreclosure Activity Infonnation I RealtyTrac Page 4 of8
"" 0.15%
~ 0.15 -< ii' .g} t:
:::J 0.10 -0 1l. 03~;, (JJ Ol
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Foreclosure Activity by Month - Pierce county, WA
Pre·Foreclosure . At.:.'Cti on RED
400 -
200 -
100 -
I ~. Jar..- L 0 -
Apr-12
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Is your area's foreclosure rate as high as state and national averages? More info
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Foreclosure Activity by Month How is each foreclosure stage trending? More info
6 Month Trend Rising
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Month How is each foreclosure stage trending? More info
6 Month Trend Rising
6117/2012 39-051
U.S. Foreclosure Trends and Foreclosure Market Statistics I RealtyTrac
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• Home My RealtyTrac Stats & Trends
• Foreclosure Center • Services • Community
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Foreclosure Home ~ U.S.
National Real Estate Trends 1,416,267 Foreclosure Homes I $198,915 Average Foreclosure Sales Price
Tacoma, WA
Forec losure Tlend ..
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Page 1 of7
.-
Search Trends,
6/1712012 39-052
U.S. Foreclosure Trends and Foreclosure Market Statistics I RealtyTrac
May 2012 Foreclosure Rate Heat Map
IMA
[ RI I
I CT t
lNJ
DC
Foreclosure Action)s to HOLising Units
1 in 300 H Ollsing Unit s
High
Foreclosure Activity Counts · U.S.
SoLrth Carollr1 ll -
10 000 20 000
http: //www.realtytrac.com/trendcenter/
1 in 2 9 , 612 Housing Un its I
Low
2 34 5 6 N e:<t~'"
30.000 40.GOO 50.000
Page 2 of7
Foreclosure Rate Heat Map What are new foreclosures as a percentage of the housing market? More info
1 In every 639 housing units received a foreclosure filing in May 2012
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New Foreclosures What areas have the highest amount of flew foreclosure activity? More info
Total New Foreclosure Activity 205,990
6117/2012 39-053
U.S. Foreclosure Trends and Foreclosure Market Statistics I RealtyTrac
Pre-Foreclosure . il.u:ction:
100 000-1 . I
80.000 -!
40.000 -,
20.000 ,
0 -
REO .
RealtyTrac Community - Discussions and Q&A
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Month How is each foreclosure stage trending? More info
6 Month Trend Falling
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U,S, Foreclosure Trends and Foreclosure Market Statistics I RealtyTrac
Foreclosure Activity and Home Price Index - U,S.
ToOta,l Fmeclosures . Home Price Appreciation (m'(t-rnJ •
250,000-
2DO,OOO
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150,0001 i..L: Cl ..... ::r
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Foreclosure Activity and 30-Year Interest Rate · U.S.
Total F,oreclo'l res . Interest Rate
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Foreclosure Activity by Month - U.S.
http: //www.realtytrac.com/trendcenter/
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Foreclosures and Home Price Index How do foreclosure activity and home prices stack up against each other? More info
Foreclosure Activity and Interest Rate What impact do interest rates have on foreclosure activity? More info
Compare Areas
611 712012 39-055
,
39-056
EXHIBIT 3
Housing and Labor Market Trends:
Washington
Community Development Research
Federal Reserve Bank of San Francisco
39-057
39-058
39-059
39-060
Ca mp
-70%
60% 1-
VI 50% -r s: o
''; u a ~ 40%
17%
sition f d istressed sale s geog r phy
Proportion of Distressed Property Transactions - December 2011
~ t I ~ .,W1 r I . _ . - I r -:; Short Sale
~ 30% .• J. '-i I. II. ~. ". 15% . o Mave-In Ready REO
o _. _ I 15% r--~~ a Damaged REO
~ 20% . u ... Qj
Q.
10%
0%
"1~
cf "Vi--
C O~k
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~ ~ 0,... /(% (.,~
0
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/0/ -1tO "Viz-. ~1c ~O ~
~. (.,~.I': J';t
C/~ 0'1t- O· ;g.
0 ~J';t
Source: Campbell/Inside Mortgage Finance HousingPulse Monthly Survey of Real Estate Market Conditions December 2011
39-061
CIl a. >t->-1: CIl a. o ...
D.. -o -r:: CIl u ... CIl
D..
Neighborhood stabiliza t ion: conce rns over
inve sto r purcha ses of distressed p ropertie s
100% 1 ~-
90% -J I
80% j
50%
40%
30%
20%
10%
0% -:
57%
Damaged REO
Who Is Buying Properties?-December 2011
21%
Move-In Ready REO
29%
J2!'le
Short Sale
14%
S2Gto
Non-Distressed
I
C Investor
• First-Time Homebuyer
Current Homeowner
Source: Campbell/Inside Mortgage Finance HousingPulse Monthly Survey of Real Estate Market Conditions December 2011
39-062
ell r::::: o
".;:: u a ell r::::: a .. ~ Q)
"'tJ Vi .!. Q)
>::)
r::Q
o 11)
In 9 r ~~(I e a s s
Financing for Homebuyers-December 2011
100% -
90% J
18% r-80% '07. I , .
I -28%
7%
I 70% -r-- 5% 12%
I 1 .... ---
60% 19%
50%
40% '0 I: d 741'/0
'E 30% Q) u .. Q)
r::L 20%
10%
0% -,---a.......-- ----
Current Homeowners
11°'8
First-Time Homebuyers Investors
Source : Campbell/Inside Mortgage Finance HousingPulse Monthly Survey of Real Estate Market Conditions December 2011
o All Other Financing
VA
~ Fannie/Freddie
FHA
Cash
39-063
39-064
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Proqrams and !.ntonnatl o r.o
Communtty Reinvestmcmt Ad (CRA) rnfQrm~tlon on tha eRA, It:: Implementing reguldtlons, th e reQulatory ace-nCl es, ;!!nd
other resources to o!ISSI:":t In complYing With end under>;t3ndmg the eRA.
Communtt:., Development I •• ueIII
Events :lind Conferencell P~ rtlap~te m one of the man,. events sponsored b" the Com m unity Deve lopment
Depdrtment
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Map Location City of Tacoma Community 8: Economic Development Department
GIS Analysis 8: Data Services
81
N _ 0 _ ~ g~
w4&.-. ~- oJ F~t I '" ~~. This drawinl ls neither a legally recorded map nor a survey and IS not ~ s intended to be used as one. It 15 to be used for refe rence purposes only.
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EXHIBIT 8
Pierce County Home Values Plummet
And
28.9% of Mortgages in Pierce County are Underwater
39-091
The News Tribune - Pierce County home values plummet (print)
The News Tribune
Pierce County home values plummet
Assessments: Foreclosures likely moved prices down
STEVE MAYNARD LAST UPDATED, JUNE 17TH. 201207;10 AM (PDT)
The value of the average home in Pierce County plunged nearly 12 percent this year, marking the fifth
consecutive year home assessments have dropped.
And this year's decline was the largest based on percentage since the long slide began, according to figures
from the Pierce County Assessor-Treasurer's Office. By comparison, residential values went down more
than 7 percent in 2011 and more than 10 percent in 2010.
Since 2008, the average value of a residential property in Pierce County has plummeted a total of more
than 31 percent - from $277,674 in 2008 to $191,402 as of January, the county reported .
''The 2012 values reflect the continued weakness of the real estate market and an accelerating decline
across the board for all residential property types," the assessor-treasurers office reported in a news
release last week.
The latest assessment notices contain the assessor's valuations as of Jan. 1, 2012. They're based on sales
that occurred in 2011.
Notices for most residential and commercial properties will start going in the mail Friday. Those values will
be used to calculate property taxes for 2013.
The office of Assessor-Treasurer Dale Washam said 95 percent of the notices will show a reduction in value
from 2011.
How much the assessed value of your house has dropped cumulatively in the past five years depends on
where you live.
The areas of DuPont, Steilacoom and Chambers Bay saw the lowest drop at less than 25 percent since
2008. Values for the east end of Tacoma alongside Pacific Avenue have fallen by more than 38 percent in
the same period.
Commercial property owners haven't fared quite as poorly. Average commercial values fell by 3.97 percent
compared with last year. Since 2009, the average value for a commercial property in Pierce County has
dropped by $233,500, a loss of nearly 20 percent.
The other thing that's changed during the slide is the method of estimating how much your property will sell
for.
Before the market started dropping, a home's fair-market value was usually 10 percent to 20 percent more
than the assessed value, said Mike Larson, president of Allen Realtors in Lakewood. That's no longer the
case.
'Very generally speaking, the assessed values are more in line with fair-market value than they've ever
been," said Larson, past president of the Tacoma-Pierce County Association of Realtors.
"When values decline, it's not good," Larson said , causing potential buyers to pull back. But he noted the
latest assessments date back to January and market conditions have improved since then.
Median home prices in Pierce County were essentially flat comparing May 2011 to last month, according to
Northwest Multiple Listing Service data. Prices fell 1.03 percent from $194,000 to $192,000, the combined
single-family residence and condominium data show.
That's a significant improvement from earlier this year when median prices frequently plunged by double
digit margins.
In the year-over-year February period , for example, Pierce County median home prices fell more than 16
