The Community Coordinator participates with
the Stabilization Trust as an agent of the Stabilization
Trust to coordinate training, acquisition program
development and capacity building of certain Non-profit
and/or governmental agency entities to participate as
“Qualified Buyers” in the REO Acquisition Program, outlined
more completely in the REO Acquisition Program Guidelines.
As a Community Coordinator with the
Stabilization Trust, the role of The Fulton County/ City of
Atlanta Land Bank Authority is as follows:
• Community
Coordinator is the single point of communication with the
Stabilization Trust and instructs Community Partners to
communicate primarily through the Fulton County/ City of
Atlanta Land Bank Authority (LBA).
• Community Coordinator ensures that all
timelines set forth in the Program Guidelines are met by the
Community Partners that purchase qualified properties
through the LBA.
• Community Coordinator qualifies all
Community Partners in the manner described for qualification
as a “Qualified Buyer” under the Acquisition Program
Guidelines.
• Community Coordinator administers legal
documents that must be signed by the Community Partners
prior to acquiring any qualified property. These include
binding agreements with the LBA and memorandums of
understanding with the Stabilization Trust.
• Community
Coordinator participates in inspection and due diligence
efforts as necessary and may delegate the inspection and due
diligence roles to the Community Partners. Community
Partners will hold Community Coordinator and the
Stabilization Trust harmless with respect to claims or
liability caused by their inspection and due diligence
activities.
• Community Coordinator has the authority
to make binding decisions on behalf of its Community
Partners.
• Under the NCST guidelines, if a
Community Partner fails to purchase any qualified property,
other than as a result of exercise of an approved
contingency, such as the appraised value of the qualified
property not meeting the appraised value required under the
NSP rules, the Community Coordinator must acquire such
qualified property on its own behalf.
WHAT IS THE REO ACQUISITION PROGRAM?
The purpose of the Acquisition Program is to
provide an efficient and cost effective mechanism for
transferring vacant and foreclosed properties from lenders,
servicers, investors and GSEs qualified under the terms of
the Acquisition Program Guidelines (the “Sellers”), to
potential purchasers qualified under the terms of the
Acquisition Program Guidelines (the “Buyers”), who may be
acting on behalf of a local
collaborative effort including local or state
community development corporations or other non‐profit
entities, local government agencies (municipalities,
counties and states) , for-profit developers and
individuals, as appropriate working to
stabilize targeted communities (the “Local Programs”). By
creating a “Single Source” structure for the transfer of
property, the Stabilization Trust provides a pipeline of
properties based on criteria provided by the Buyers on
behalf of their Local Programs.
The Acquisition Program provides eligible
buyers with either (a) a right of first offer to purchase
REO properties on an ongoing basis located in targeted
communities from Sellers prior to their being listed through
traditional REO sale procedures (the “First Look Program”)
or (b) a bulk purchase program for purchasing significant
numbers of currently‐listed properties located in
communities heavily affected by the foreclosure crisis (the
“Targeted Bulk Purchase Program”).
HOW DO I WORK WITH THE STABILIZATION TRUST?
Whether you’re seeking properties through the
First Look Program or the Targeted Bulk Purchase
Program, the Community Coordinator will be your single
point of communication with the Stabilization Trust. The
role of the Community Coordinator (CC) is to act as a
liaison and facilitator between the counterparties in order
to provide expedited dispositions of Qualified REO
Properties. Additionally, the “Single-Buyer” system keeps
the Seller’s cost contained and allows properties to be
acquired at highly discounted rates, so it’s actually the
Community Coordinator/ LBA who will act as “Buyer” in the
transaction. A separate and simultaneous closing will convey
the property from the LBA to the Community Development
Corporation (CDC).
WHAT ARE THE EXPECTATIONS FOR THE BUYER?
Buyers will be required to implement the
Acquisition Program with the Stabilization Trust and be
responsible for the following activities to successfully
implement the Acquisition Program within their Local Program
covering the applicable targeted communities:
•
Ensure to the Stabilization Trust (and develop where
necessary) the infrastructure for the management of a large
volume of properties, including rehabilitation plans,
disposition strategies for the sale, marketing and asset
management of the properties.
•
Demonstrate the ability to (a) conduct property inspections
and property valuations and (b) schedule and complete the
transfer of the properties pursuant to the Acquisition
Program buyer purchase agreements.
• Maintain
and demonstrate on an on‐going basis (a) the knowledge of
the local housing markets, (b) the ability to act promptly
to offers from Sellers (i.e., the same day or next business
day) with an acceptance, counteroffer or declination, (c)
the commitment to use a standardized valuation procedure
developed by the Stabilization Trust to promote quick and
efficient transactions, (d) the ability to purchase property
on an all cash basis and (e) provide transaction process
updates to the Stabilization Trust on a periodic basis.
WHAT ARE THE BENEFITS OF THE ACQUISITION
PROGRAM TO THE BUYER?
Buyers will have the opportunity to purchase
foreclosed / REO properties before they are listed for sale
through traditional mechanisms and immediately after the
completion of the foreclosure process at a purchase price
that reflects savings on expenses associated with prolonged
holding periods and other Seller expenses. This also allows
Buyers greater control of stabilization efforts within their
targeted areas. The Stabilization Trust and its sponsors
also provide various forms of technical assistance and
sharing of best‐practices.
WHO ARE ELIGIBLE BUYERS?
Buyers will be required to be prequalified by
the Stabilization Trust and its sponsor organizations to
participate in the program. Eligible Buyers will typically
be located in targeted communities particularly hard hit by
the foreclosure crisis, will have sufficient capacity to
handle the acquisition of portfolios of REO properties, and
will have the ability to track market pricing.
WHAT IS THE MEMORANDUM OF UNDERSTANDING
BETWEEN THE STABILIZATION TRUST AND BUYER?
The purpose of the Memorandum of
Understanding (“MOU”) and related Acquisition Program
Guidelines is to clearly set forth the Acquisition Program’s
expectations for the Buyer. They describe the standardized
transfer mechanism for offering, selling and closing on
vacant REO properties provided by the Stabilization Trust,
including accepted procedures, timeframes and documents
needed for such transfers. Additionally, they describe the
responsibilities and roles of the Stabilization Trust and
Buyers in such transactions.
For more information about the National
Community Stabilization Trust REO Acquisition Program please
contact Roan Yarn, Program Manager/Community Coordinator at
ryarn@fccalandbank.org.
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