Wednesday, August 26, 2009

DOLA Announces State's plan for the $8 million in homeslessness prevention and rapid re-housing funds approved by HUD.

DOLA Announces State's plan for the $8 million in homeslessness prevention and rapid re-housing funds approved by HUD.

DENVER -- Susan Kirkpatrick, Executive Director of the Colorado Department of Local Affairs, has announced the state's plan for administering more than $8M through the Homelessness Prevention and Rapid Re-Housing Program (HPRP) has been approved by the U.S. Department of Housing and Urban Development (HUD). With approval from HUD, Colorado can proceed with allocating $8,154,036 for state competitive grants.

"These funds will help lead Colorado forward through vital housing and rental assistance," Kirkpatrick said. "This is an important supplement to our efforts to assist Coloradans in need of short and medium-term rental assistance during these challenging times."

The HPRP funds, administered by the Colorado Department of Local Affairs (DOLA), will be awarded to one administrator (subcontractor) in each of the three Continua of Care (CoC) regions in the state. Those three Continua of Care regions are Denver Metro, Pikes Peak and the remainder of the state.

Kikrpatrick added, "Helping Coloradans with access to affordable, decent housing is a goal of our department. These HPRP dollars can make a difference in the lives of people facing some very urgent circumstances in their housing situation. We're pleased to be charged with administering these funds to help strengthen Colorado.

The subcontractors selected to administer the funds will work in their respective Continuum of Care region to design and implement a process that networks homeless service providers, housing authorities and other nonprofit agencies to implement HPRP.

These local nonprofit entities will be under the management of the designated CoC subcontractor and will use these dollars to target HPRP resources to homeless or at-risk households for:

(1) financial assistance (including short-term rental assistance, medium-term rental assistance, security deposits, utility deposits, utility payments, moving cost assistance, and motel or hotel vouchers); or, (2) housing relocation and stabilization services (including case management, outreach, housing search and placement, legal services, mediation, and credit repair).

For program information, contact:

Lynn Shine, Division of Housing
303-866-2046
lynn.shine@state.co.us

Shannon Picaso, Division of Housing
303-866-5306
shannon.picaso@state.co.us

Funding Partners Announces NCST Coordinator Contract

Fort Collins, CO, August 26th, 2009 – Funding Partners (FP), a not-for-profit financial institution, has been awarded a contract with the Colorado Department of Local Affairs’ Division of Housing to act as the lead contact in coordinating the acquisition and transfer of foreclosed properties available through the National Community Stabilization Trust (NCST) “First Look” Program and “Targeted Bulk Purchase” Program.

The Neighborhood Stabilization Program (NSP) is a new $37.9 million program created through the Housing and Economic Recovery Act (2008) that provides for the acquisition of foreclosed properties for rehabilitation, sale, or rental. These activities facilitate the return of the foreclosed properties to rental and ownership housing for low to moderate income families. As the coordinator for the partnership between the State of Colorado and NCST, Funding Partners acts as a central hub of information between the NCST and the Division of Housing. FP will also serve as the purchasing entity on behalf of up to eleven of Colorado’s participating local jurisdictions for the transfer of foreclosed properties from the selling bank to the local entities working directly in the state’s hardest-hit communities.

“With the Funding Partners partnership now in place, our local partners can move quickly toward purchasing and rehabbing foreclosed and abandoned properties,” said Susan Kirkpatrick, Executive Director the Colorado Department of Local Affairs.

Funding Partners currently offers services statewide, including down payment assistance through the House to Home Ownership (H2O)® Program and project financing for affordable housing through the Mammel Affordable Housing Loan Fund (MAHLF). Having proven effective frameworks in place, FP is in a unique position to aid in the acquisition and transfer of Real Estate Owned (REO) properties to multiple jurisdictions statewide.

For further information regarding Funding Partners or the NCST Coordinator Award, please contact:

Joe Rowan, Funding Partners Executive Director, (970) 494-2021 or by email joe@fundingpartners.org

Thursday, August 20, 2009

Vacancies in rental houses rise to highest levels since ‘06

Click here for full report.

Vacancies in for-rent condos, single-family homes, and other small properties across metro Denver rose year-over-year to 5.2 percent during 2009’s second quarter. The vacancy rate was 4.2 percent during the same period last year, and was 3.6 percent during this year’s first quarter. According to a report released Thursday by the Colorado Department of Local Affairs’ Division of Housing, vacancies across metro Denver rose to levels not seen since 2006 when vacancies throughout the region generally topped five percent.

The smallest overall vacancy rates were found in Douglas County and Arapahoe County with rates of 3.5 percent and 4.4 percent respectively. The highest vacancy rates were in Adams County which reported an overall rate of 8.3 percent.

All counties reported increases in the vacancy rate from the first quarter to the second quarter of this year, and all areas reported higher vacancies during the second quarter of this year when compared to the same period last year.

Vacancy rates for all counties surveyed were: Adams, 8.3 percent; Arapahoe, 4.4 percent; Boulder/Broomfield, 5.9 percent; Denver, 5.2 percent; Douglas, 3.5 percent; and Jefferson, 5.3 percent.

In general, a vacancy rate of 5 percent is considered the “equilibrium” rate, and vacancy rates below 3 percent indicate a tight market.

Compared to multifamily vacancy rates, vacancies in single-family homes and condos remain relatively low. The metro Denver overall vacancy rate during the second quarter, measured in a separate survey, was 9.0 percent. Single-family homes, meanwhile reported a vacancy rate of 5.2 percent, and condos reported a rate of 5.4 percent.

According to the report, the metro-wide average rent increased to $1016.35 during the second quarter, up from $993.61 during the same period a year earlier. Since the first quarter of this year, rents have risen from an average of $1004.44.

Rents were highest in the Boulder/Broomfield area at $1550.79, and lowest in Denver County at $940.96. Comparing 2009’s second quarter rents to the same period last year, average rents increased in all areas except Jefferson and Douglas Counties. Comparing the first quarter to the second quarter of this year, average rents went down in Adams, Arapahoe and Jefferson Counties, and increased in Denver County, Douglas County, and in the Boulder/Broomfield area.

Average rents for all counties were: Adams, $1046.89; Arapahoe, $995.11; Boulder/Broomfield, $1550.79; Denver, $940.96; Douglas, $1388.62; and Jefferson, $978.55.

Days on the market increased from 43.4 days during the second quarter last year, to 54.7 days during the second quarter this year. During the first quarter of this year, the overall time on the market was 53.8 days. During the second quarter, single-family homes were on the market 41.8 days and condos were on the market 77.8 days.

The Colorado Statewide Vacancy and Rent Study is released each quarter by the Colorado Division of Housing. The Report is available online at the Division of Housing web site: http://dola.colorado.gov/cdh
The Colorado Vacancy and Rent Survey reports averages and, as a result, there are often differences in rental and vacancy rates by size, location, age of building, and apartment type.

Wednesday, August 19, 2009

Recent media coverage of the Division of Housing's research

Last week, the Division of Housing released quite a bit of new report data. We released the Colorado Springs vacancy and rent survey on Monday, and the Statewide vacancy and rent survey on Tuesday. You may have noticed the Denver Post's front page article on vacancies.

If you're not receiving our daily housing news digests, be sure to sign up here.

Our Youtube video on short sales was featured Monday morning on 9News. We released the 2nd Quarter statewide foreclosure report on Thursday, and our foreclosure report was featured on morning, noon, and evening broadcasts of 9News. Here's a link to Google's news summary on the topic.

Statewide and Colo. Springs reports at permanent location

There's often a bit of a delay between the release of new reports and their posting at the permanent location. We always provide a temporary link to new reports on the blog, so be sure to search the blog if you're having trouble finding new reports.

The statewide vacancy and rent survey and the Colorado Springs survey are both now at their permanent locations.

GEO seeks documented quotes for financial consulting services

Request for Documented Quotes Posted:
Financial Consulting for Revolving Loans

The Governor's Energy Office (GEO) has posted a request for documented quotes on the Colorado state procurement system. The solicitation can be found by clicking here.

The GEO seeks documented quotes for financial consulting services to develop a revolving loan program with funds provided by the American Recovery and Reinvestment Act (ARRA) of 2009.

Please note that GEO staff cannot discuss this solicitation with any entity that intends to submit a response. Refer to the solcitation for information about how to communicate with the GEO about this opportunity.

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Thursday, August 13, 2009

New foreclosure filings increase in Colorado

Click here for full report.

New foreclosure filings in Colorado topped 12,000 during the second quarter, while both new foreclosure filings and completed foreclosures grew 15 percent above first quarter totals. According to a report released Thursday by the Colorado Department of Local Affairs’ Division of Housing, new foreclosure filings reached 12,135 during the second quarter for a mid-year total of 22,644. Completed foreclosures during the second quarter reached 4,999, for a mid-year total of 9,353.

During 2008, there were 39,333 total foreclosure filings and 21,301 total completed foreclosures.

While the second quarter showed renewed growth in foreclosure activity when compared to the first quarter, year-over-year comparisons showed more mixed results. When comparing the first half of 2009 to the same period last year, foreclosure filings increased 0.3 percent while completed foreclosures fell 5 percent.

Changes in foreclosure activity varied by region. Comparing the first half of 2009 to the first half of last year, the report notes that Adams, Arapahoe, and Denver Counties all experienced significant declines in total numbers of completed foreclosures. Denver’s completed foreclosure totals fell 30 percent while Adams County and Arapahoe County fell 19 percent and 16 percent respectively.

The largest increases were found in counties outside of metro Denver. For the first half of the year, El Paso County reported an increase of 30 percent over the same period last year, while Mesa County reported an increase of 143 percent. Pueblo County and Weld County, which have been among counties with the highest foreclosure rates in recent years, reported slight declines in completed foreclosures of 2 percent and 0.4 percent respectively.

The report noted that an increase in foreclosure activity as compared to the first quarter of this year had been expected. Many lenders and investors had enacted both formal and informal moratoria on foreclosures which slowed down the foreclosure process for many. As these moratoria were phased out, officials expected to see an increase in the number of new foreclosures. However, while new foreclosure filings are showing notable growth, the number of completed foreclosures has still not returned to the levels experienced during 2007 and 2008.

“Completed foreclosures are showing restrained growth,” said Ryan McMaken, a spokesperson with the Division of Housing. “Although new filings are showing a bit of growth in some areas, we don’t expect substantial growth in completed foreclosures this year as compared to last year. That may be due to the fact that so many foreclosure prevention initiatives like the Foreclosure Hotline have really expanded services in recent years.”

New foreclosure filings, which begin the foreclosure process, increased for the third time in three quarters as foreclosure filings climbed 15 percent to 12,135 from the first quarter’s total of 10,509.Completed foreclosures increased for the first time in three quarters as foreclosure sales climbed 15 percent to 4,999 from the first quarter’s total of 4,354. Quarterly totals of 6,000 to 7,000 were common during 2007 and 2008.

Foreclosure rates also vary considerably from county to county. The highest rate in a metropolitan county was found in Adams County where there was 1 completed foreclosure for every 117 households. In Weld County, there was 1 for every 120 households, and 1 for every 169 households in Denver County.

The latest data reinforces past claims that high foreclosure rates are somewhat restricted to the Front Range and eastern Colorado. Counties in western Colorado experienced much lower foreclosure rates. Mesa County reported 1 completed foreclosure for every 544 households and Garfield County reported 1 for every 1,451 households.

Tuesday, August 11, 2009

Apartment vacancies jump across Colorado

Apartment vacancies jump across Colorado
Colorado Springs the only metro area with falling rates

Click here for survey

The Colorado statewide apartment vacancy rate for 2009’s second quarter increased to 9.1 percent, rising from 2008’s second quarter rate of 6.7 percent. According to a report released Tuesday by the Department of Local Affairs’ Division of Housing, all metropolitan areas of the state other than Colorado Springs reported increases in vacancy compared to the same period last year.

On the Front Range, Fort Collins and Colorado Springs reported the highest vacancies at 9.9 and 9.8 percent respectively. The lowest metropolitan vacancy rate was found in Grand Junction where the rate was 4.5 percent.

In general, a vacancy rate of 5 percent is considered to be the “equilibrium rate.”

“The economy continues to dampen demand for multifamily rentals statewide,” said Gordon Von Stroh, professor of business at the University of Denver, and the report author. “An increase in troops moving to Colorado Springs is keeping rates down there, but most other areas saw increases of two to three percentage points.”

Comparing year over year, the vacancy rate in Colorado Springs during the second quarter fell to 9.8 percent from 10.2 percent, but Greeley’s vacancy rate climbed from 6.1 percent to 9.1 percent. Pueblo’s rate rose from 6.4 percent to 8.5 percent, and in Grand Junction, where vacancies hit a record low of 1.6 percent last year, the rate rebounded to 4.5 percent during the second quarter of this year.

Nevertheless, while vacancy rates have climbed quickly, they have yet to return to the 10 percent to 12 percent rates commonly seen from 2003 to 2005.

As expected, the survey showed little rent growth in metropolitan areas of the state.

“There’s been remarkably little rent growth in Colorado for two to three years,” said Ryan McMaken, a researcher with the Colorado Division of Housing. “With the exception of Loveland, those areas that have seen rent growth since the second quarter of last year are up by about five to ten dollars. All other areas saw falling rents.”

The largest increase in average rent was found in Loveland where average rents increased from $853.75 during the second quarter of 2008, to $870.63 during the second quarter of this year. More typical was Colorado Springs where rents increased from $706.51 to $717.25 during the same period. By comparison, average rents in metro Denver fell from $886.14 to $870.37 year over year.

The Vacancy and Rent Surveys are a service provided by the Colorado Division of Housing to renters and the multi-family housing industry on a quarterly basis. The Colorado Vacancy and Rent Survey reports averages and, as a result, there are often differences in rental and vacancy rates by size, location, age of building, and apartment type. The Report is available online at the Division of Housing web site: http://dola.colorado.gov/cdh.

Monday, August 10, 2009

Colorado Springs area vacancies fall to 9.8 percent

Colorado Springs area vacancies fall to 9.8 percent

click here for full report

August 10, 2009

Apartment vacancy rates in the Colorado Springs area fell to 9.8 percent during the second quarter of 2009, but were buoyed by a 17.5 vacancy rate in smaller buildings and projects with 9 to 50 units. According to a report released today by the Apartment Association of Southern Colorado and the Colorado Division of Housing, the rate is down slightly from 10.2 percent as reported during the second quarter last year, and it is down from this year’s first quarter rate of 11.7 percent.

The area with the highest vacancies in the Colorado Springs metro area was the “Southeast” region with a vacancy rate of 17.8 percent. The Security/Widefield/Foundation region reported the second-highest vacancy rate of 16.2 percent.

The areas with the lowest vacancy rates were the “Southwest” region and “Far northeast” regions with vacancy rates of 6.8 percent and 7.7 percent respectively.

Colorado Springs vacancy rates have remained stable as rates across the rest of the Front Range have risen. Metro Denver’s vacancy rate, reported recently in a separate survey, was 9.0 percent during the second quarter, and rates in Greeley and Pueblo have also recently risen above 8 percent. Nevertheless, Colorado Springs vacancy rates remain among the highest in the state.

In general, a vacancy rate of 5 percent is considered an “equilibrium rate.”

Long-awaited arrivals of troops have helped bring vacancy rates down from highs of 11 to 12 percent that have been common in recent years.

“We’re cautiously optimistic,” said Ken Greene, a broker for Apartment Realty Advisors who specializes in the Colorado Springs market. “Many troops have already arrived, and we’re seeing both vacancies and concessions coming down.”

Perhaps due to several years of high vacancy rates, rent growth in Colorado Springs has been very limited. However, expected declines in vacancies due to troop movements likely helped push second quarter average rents to a new high of $717.65. The average rent was $693.46 during the first quarter of this year and was $706.51 during the second quarter of 2008.

The area that reported the highest average rents was the “Far northeast” region with an average rent of $849.00, and the areas with the lowest average rent was the “Central” region with an average rent of $577.04.

The Vacancy and Rent Surveys are a service provided by the Colorado Department of Local Affairs’ Colorado Division of Housing and the Apartment Association of Southern Colorado to renters and the multi-family housing industry on a quarterly basis. The Colorado Springs Area Vacancy and Rent Survey reports averages and, as a result, there are often differences in rental and vacancy rates by size, location, age of building, and apartment type. For more information, please contact the Apartment Association of Metro Denver at http://www.aacshq.org ; or please visit the Colorado Division of Housing web site: http://dola.colorado.gov/cdh/

Short Sale Series - Part 1 now available

We've produced a series of short videos to address common questions we receive from the public about short sales. Here is part 1:



See our YouTube page for all the videos.