Indio Foreclosure Program

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Indio Foreclosure Program
Brad Ramos Chief of Police Jason Anderson
Code Enforcement Officer Jesus Gomez Housing
Programs Manager
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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

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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)

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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

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Foreclosure Trend
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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 serviceskeeping families
  in their homes

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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.

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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

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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.

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Part 3 Foreclosure Prevention

• Created a Housing Resource Center
• Provide foreclosure-prevention counseling
• Work with homeowners and banks to agree on
  alternatives to foreclosure

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Housing Resource Center (HRC)

• Established in August 2008
• City of IndioFirst in the Coachella Valley to
  establish a City-sponsored Facility/Program
• Overall Purpose To prevent foreclosures and
  assist families to keep their homes

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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)

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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

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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

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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

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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 citys comprehensive approach to code
  enforcement designed to reduce crime and blight.

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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.

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Contact Info
Brad Ramos Indio Police Department 46800 Jackson
St. Indio, CA 92201 [phone] bramos_at_indiopd.
org Jason Anderson Indio Police Department 46800
Jackson St. Indio, CA 92201 (760)
391-4123 janderson_at_indiopd.org Jesus Gomez City
of Indio 100 Civic Center Mall Indio, CA
92201 [phone] jgomez_at_indio.org
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• Thank You!
• QUESTIONS?