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Foreclosure Ordinance by jolinmilioncherie

VIEWS: 6 PAGES: 19

									Indio Foreclosure
     Program
          Brad Ramos
         Chief of Police

        Jason Anderson
    Code Enforcement Officer

          Jesus Gomez
    Housing Programs Manager




                               1
          The City of Indio
Elected City Council/City Manager Form of
Government

General Law City

Population of 81,512

29 Square Miles

California has a non-judicial foreclosure process

                                                    2
        Problems We Face
Not all foreclosures are the same.
– Traditional home loans were a thing of the past
– Home loans are sold between banks and sold as
  mortgage backed securities (bonds).
– Banks are often just “servicers” for mortgage backed
  securities.
– Increase in investment properties
– 10,000 new homes were built between 2002-2007.
  (40% of housing stock)

Blighted vacant homes lead to an increase in
crime. (Broken Window)

                                                         3
        Problems We Faced
In January 2008, we had approximately 1,400 homes
in foreclosure and pre-foreclosure (4% of housing
stock).

In January 2009, we have approximately 2,800 homes
in foreclosure and pre-foreclosure (8% of housing
stock).

In January 2009, we have approximately 1,000 vacant
foreclosures (36% of all foreclosures)

Banks are unwilling to maintain properties

                                                      4
Foreclosure Trend




                    5
      Solving this Problem
Indio created a 3-prong solution

• Created an ordinance that requires banks to
  register and maintain properties as soon as they
  become vacant

• Utilize Code Enforcement to enforce this
  ordinance

• Created a Housing Resource Center providing
  foreclosure-prevention services—keeping families
  in their homes
                                                     6
Part 1 – Foreclosure Ordinance
Ordinance requires banks to register all
unoccupied properties with the police department.

Ordinance requires banks to fully maintain
properties.

Ordinance requires banks to actively monitor and
maintain all unoccupied properties.


                                                   7
Part 2 - Enforcement
            12 member Code Enforcement
            team

            $1.5 Million dollar total Budget.
            About 6% of police budget

            $41,000 in registrations fees
            have been collected.

            $30,000 in fines have been
            issued.

            Bank are beginning to pro-
            actively maintain properties
                                            8
         Enforcement Results
                              500 foreclosures have
                              been identified and have
                              active cases.
                              50% of all identified
                              vacant homes are in
                              compliance.




Realtors have become the
key to property compliance.
Foreclosures are becoming
less apparent as properties
are being maintained.

                                                         9
Part 3 – Foreclosure Prevention

Created a Housing Resource Center

Provide foreclosure-prevention counseling

Work with homeowners and banks to agree
on alternatives to foreclosure


                                            10
 Housing Resource Center (HRC)
Established in August
2008

City of Indio—First in
the Coachella Valley to
establish a City-
sponsored
Facility/Program

Overall Purpose: To
prevent foreclosures
and assist families to
keep their homes
        Operations/Staffing
Operated by: Inland Fair Housing and
Mediation Board (IFHMB)
-IFHMB is a HUD-approved housing counseling agency


Staffed with: two (2) Housing Counselors
– Completed HUD-certified training program
– Prior real estate/housing experience
– Bilingual (English/Spanish)
Foreclosure Prevention Assistance
Explain foreclosure process and alternatives
to homeowners
Facilitate discussions between homeowner and
lenders/banks
Lenders recognize role of Housing Counselors

Alternatives to foreclosure include:
– Loan Modifications (change terms)
– Monthly partial repayment of delinquency
– Suspend payment until homeowner is able to pay
        Level of Assistance
                 (as of 1/9/09)


Phone Calls:              467
Walk-ins:                 218
Counseling Sessions:      140


Families who have remained in their homes: 139
      If nothing was done
We would have a 25% increase in the
number of vacant homes.
Crime and blight would increase (Broken
Window)
More families would be displaced from the
community



                                        15
                        Conclusion

This program provides residents the
opportunity and resources to help
them stay in their homes.

The Foreclosure Ordinance provides
the tools to hold lenders accountable
for the conditions of their properties.

This Foreclosure Ordinance is only
one tool used in the city’s
comprehensive approach to code
enforcement designed to reduce crime
and blight.




                                          16
            Recommendations
Develop a comprehensive municipal code enforcement program
based out of your police agency.

Adopt a comprehensive abandoned property registration and
maintenance ordinance.

Adopt a comprehensive Public Nuisance and Property Maintenance
Ordinance.

Develop relationships with your local realtors, realty associations
and property management companies and work with them to help
solve these problems.

Conduct workshops and open resource centers focused on keeping
people in their homes.


                                                                      17
Contact Info
         Brad Ramos
         Indio Police Department
         46800 Jackson St.
         Indio, CA 92201
         (760) 391-4035
         bramos@indiopd.org

         Jason Anderson
         Indio Police Department
         46800 Jackson St.
         Indio, CA 92201
         (760) 391-4123
         janderson@indiopd.org

         Jesus Gomez
         City of Indio
         100 Civic Center Mall
         Indio, CA 92201
         (760) 541-2460
         jgomez@indio.org
                                   18
Thank You!

QUESTIONS?


             19

								
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