Get to Know Woodbury

Get to Know Woodbury
December 13, 2012
Karl Batalden
Housing & Redevelopment Coordinator
Community Development:
A 3-Legged Stool
1.Jobs
2.Housing
3.Infrastructure
Leg #2: Housing
1.
2.
3.
4.
Where are we now?
Where are we going? what is being developed?
Demographic change/stability
What are we doing/improvements to quality of life
What’s Going on With Sales?
Some YTD Trends (first 11 months of the year)
• New listings down 3.2%
• 1,349 vs. 1,393
• Closed sales up 12.0%
• 1,049 vs. 937
• Average sales price up 9.7%
• $258,719 vs. $235,790
• Days on market until sale down 22.5%
• 105 vs. 136
• Months supply of inventory down 40.4%
• 2.8 vs. 4.7
Mirrored at the National Level
Sheriff’s Sales: 2003 - 2012
421
450
400
335
333
350
Number of Sales
300
225
250
231
198
200
150
103
100
50
61
30
38
0
2003
2004
2005
2006
2007
2008
Year
2009
2010
2011
As of
Nov. 30,
2012
New Units Continue to Come Online
Permits Issued for New Construction Units
1400
1287
1200
981
1000
713
800
600
522
491
432
356
342
400
286
255
200
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
As of Dec.
11, 2012
Phase 2A: “Fields of Woodbury”
Urban Village Master Plan
Woodbury’s Residents
Continued Population Growth
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
• 2010 Population: 61,961
• 2020 Projection: 73,500
• 2030 Projection: 84,000
• Average household size is
declining as population is
growing and aging
Demographic Update
• Sources: 2010 Census
2009-2011 American Community Survey
• Total population: 61,961
• Median age: 36.0
• Over 65: 5,164 (8.3%)
• Self-identifies as “white-alone”: 81.3%
• Down from 90.0% according to the 2000 Census
• Asian: 9.7%
• Black/African American: 6.8%
• Self-identifies as Hispanic or Latino: 4.3%
• Language other than English spoken at home: 14.4%
• US rate is 20.8%
Demographic Update, cont’d
• Median household income: $91,174
• Mean travel time to work: 24.6 minutes
• Population >25 with a HS diploma: 97.7%
• US rate is 85.9%
• Population >25 with a bachelor’s degree: 56.3%
• US rate is 28.5%
• Individuals below the poverty rate: 3.8%
• Up locally from 1.7% in 2000
• Current US rate is 15.9%
• Individuals without health insurance coverage: 4.1%
• US rate is 15.1%
Zoning Code Revisions
Revisions to Zoning Code
How Do Changes Affect Real Estate?
• Mostly technical for streamlining purposes
• Web usability
• Internal reference
• Shoreland and Riparian Districts on the map
• Previously contained in different section of the City Code
• Incentive-based sustainability and density goals
• Increased rear-yard setbacks from 25’ to 35’
• Decks are an allowable encroachment—up to 10’
Distressed Properties
Woodbury Sheriff’s Sales: 2003 - 2012
421
450
400
335
333
350
Number of Sales
300
225
250
231
198
200
150
103
100
50
61
30
38
0
2003
2004
2005
2006
2007
2008
Year
2009
2010
2011
As of
Nov. 30,
2012
Foreclosure Update
Sheriff's Sale Data is Current Through November 30, 2012
2012 YTD
% of Total
2011 YTD
% of Total
2011 Total
% of Total
Homestead
162
81.82
170
81.73
187
80.95
Non-Homestead
29
14.65
35
16.83
39
16.88
Lot
0
0.00
1
0.48
1
0.43
Builder-owned
0
0.00
0
0.00
0
0
Non-Residential
7
3.54
2
0.96
4
1.73
We’ve worked through the foreclosed lots and now the vast
majority of sheriff’s sales are homesteaded residential properties.
Linking Job Loss with Delinquency, FRMC
Type of Hardship Leading to Delinquency in Freddie Mac Loans
Unemployment or curtailment of income
Excessive obligation
Illness or death in the family
Marital difficulties
Inability to sell or rent property
Employment transfer or military
Property problem or casualty loss
Extreme hardship
All other reasons
Source: Office of the Chief Economist, Freddie Mac
55.3%
21.4%
7.9%
3.7%
1.9%
1.1%
0.4%
0.1%
8.3%
Employment is Key
Distressed Sales
Underwater Homes—40% vs. 15%
2008-2012 Foreclosures, Residential Only
2008 Foreclosures, Residential Only
2009 Foreclosures, Residential Only
2010 Foreclosures, Residential Only
2011 Foreclosures, Residential Only
YTD 2012 Foreclosures, Residential Only
2008-2012 foreclosures, residential only
What is the City Doing?
• Foreclosures in the low 200s in 2012, back to the 2007 range.
• An improvement but still uncomfortable
• Delinquencies are down, but short sales are up
• Inspection Services Division inspects every sheriff’s sale
property in the City to determine vacancy
• No formal registration process
• No fee
• Please call us with questions—(651) 414-3438
What About Freezeups?
• All abandoned properties have their water turned off
at the curb stop.
• If you are showing a property and you want the water
to be turned on, please call the Utilities Division at
(651) 714-3720.
• If you notice a problem, please call.
Housing and Redevelopment
Home Ownership Loan Funds
• Woodbury First-time Homeownership Program
• Encourage homeownership by providing gap funds to low- and
moderate-income first-time purchasers
• Woodbury Foreclosure Purchase Program
• Encourage the purchase and rehabilitation of vacant, foreclosed
properties
• Program Guidelines:
• $25,000 maximum loan—3% interest, principal deferred
• $256,500 max sales price
• Max income of 80% of AMI ($65,000 for HH of 4)
• 115% for Foreclosure Purchase Program (capped at $90,000)
Underwriting and Financial Advantages
• 5% borrower contribution is more conservative than
FHA
• Not a down payment program (DPA)
Advantages
1. 3.00% interest rate
2. Interest-only
3. Access to conventional financing
4. Avoid/reduce impact of PMI
5. Exempt from MRT
HRA Lending Partners
• 74 HRA homebuyer loans since 2009
• 29 lenders in first position
•
•
•
•
•
•
•
11: PHH
8: Advisors Mortgage
7: Edina, Prime Mortgage, Wells Fargo
4: Bremer
3: Summit Mortgage
2: BOA, Bell, LendSmart, MidCountry Bank, Pulte Mortgage
1: Affinity Plus FCU, American Investors Bank, AmTrust,
Bank Mutual, Cornerstone Mortgage, Gabriel Financial,
Heartland HL, Lake Area Mortgage, LendSource, BMO Harris,
Marketplace Home Mortgage, Postal FCU, Provident Funding,
Spire FCU, US Bank, Waterstone
• FHA authorization in place
What about Home Improvement?
• Woodbury Home Improvement Fund
•
•
•
•
•
Encourage home renovation and increase home values; remove blight
$25,000 maximum loan
$256,500 max property value
Max income of 80% of AMI ($65,000 for HH of 4)
4 loans closed
• Woodbury Goes Green
•
•
•
•
•
Encourage sustainable and energy-efficient green building practices
$5,000 maximum loan
$256,500 max property value
Max income of 115% of AMI (capped at $90,000)
3 loans closed
• Willing to try a municipal version of a 203(k)
Where is the HRA Lending?
Questions?
Karl Batalden
Housing and Redevelopment Coordinator
(651) 414-3438
[email protected]