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 firstname.lastname@example.org.