Foreclosures in San Jose: Impacts and Solutions League of Cities Conference San Jose, CA September 16, 2009 What is the Housing Trust?
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League of Cities Conference
San Jose, CA
September 16, 2009
A nonprofit community lender formed in 1999 by the County Board of Supervisors, Silicon Valley Leadership Group, the SCC Collaborative on Affordable Housing and Homelessness, and the Housing Action Coalition.
501(c)(3) public benefit corporation
Since 1999, HTSCC has raised over $38,000,000 in voluntary contributions from the public and private sector for the development of affordable housing and provision of loans to first-time low and moderate income homebuyers.
Public-private partnership makes us unique
First Time Homebuyers
Closing Cost Assistance Loans ($6500, 3% loan)
MAP - $35,000 second mortgage
ESCO (Equity Share Co-investments)
DAP - $15,000 deferred second loan with NHSSV
Affordable Rental Development
Acquisition, Construction, Permanent loans to Nonprofit Affordable Housing Developers
Family, workforce, senior, special needs, supportive housing
Emphasis on permanent, but allow transitional
Emergency Homeless Prevention Grants
Grants to preserve safety net and rehab of existing housing
Equal priority to Homeless housing, First-time Homebuyer Assistance, Multifamily Rental investment
FTHB – over 2070 loans made to homebuyers
Multifamily – over 2700 new units developed
Homeless Housing – over 2700 households assisted
Total – over 7500 Affordable Housing Opportunities
NSP1 Grant – HERA Funds
ARRA Funds for Foreclosure Counselors – NHSSV
Average Sales Price Condos/Townhomes in Target Geographies
Lender is 42% better off than in foreclosure scenario
Investor IRR = 7.5%
Homebuyer recovers original equity invested
Note: Assumes original LTV at 85% and subsequent 25% decline in home value. New loan refinances old one with a
fixed-rate amortizing 30-year loan; 3% annual Home Price Appreciation, 6% cost of sale. Lender forgives 17% of
original loan principal; another17% of original loan principal refinanced with ESCO.
NSP2 – Strategies
Home Again, LLC proposal