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Foreclosure Recovery Data has shown that the Federal programs available to modify troubled mortgages are less than 50% successful. Tri- Valley residents who have been denied mortgage modifications will need to seek additional Center post - foreclosure or short sale services to find other housing, establish a financial plan, re- establish credit, re -build assets and to connect with other necessary stop -gap emergency services such as local food banks, shelters and career centers to aid in their recovery. The Center provides a connection point for these services and through its family stability program and partnership with Consumer Credit Counseling Services, can offer a path to recovery for families. The local implementation and success of these services is critical to the long -term economic recovery of our communities. Homebuver Counseling: Since inception, Center's mission has been to prepare low and moderate income families for homeownership. The Center continues to educate future homebuyers through its 8 -hour HUD - certified workshops. With Center's programs, homebuyers are better prepared to take advantage of current mortgage rates and home prices which are ideal for first -time homebuyers to enter the market. Center provides a local resource to assist homebuyers in making educated and sustainable home purchases; to get established in the community and to set down roots which stabilize neighborhoods. Through partnerships with Tri - Valley One -Stop Career Center, Bay East Association of Realtors and local City programs such as the City of Dublin, City of Livermore, and City of Pleasanton Down Payment Assistance and Town of Danville Below- Market Housing Opportunity programs, the Center has prepared over 25 low and moderate income homeowners in the Tri - Valley. The Center has recently contracted with Hallmark Community Solutions, a non - profit developer, to provide homebuyer education classes through the City of Livermore and Alameda County Neighborhood Stabilization Programs. While the near -term focus is on these three programs, Center will also conduct outreach to investigate other options for program development. As part of Center's fund development plan, Center will research other partnership options with local businesses relocating to the Tri - Valley whose employees may benefit from Center homebuyer services and workshops or other important needs appropriate for Center to fill. PROGRAM COSTS AND FINANCIALS The Center Board of Directors Finance Committee has conducted a full review of the Center's monthly expenses and reduced operating costs 32 %, from $31,000 to $21,150 (see Attachment 2). However, even with the reduced budget, the Center has an estimated negative cash flow of approximately $10,500 per month. The Board's Building Task Force is currently working with a local broker to sell the commercial portion of TVHOC property to reduce the overall mortgage burden of the agency which would additionally reduce structural /operating costs. In addition, other debt restructuring options are being investigated to furher help reduce monthly expenses. The Board has performed an analysis of program costs for the core services outlined in this proposal. The following table provides a summary of those costs. The Center will develop resources through fundraising and partnership with the Tri - Valley Community Foundation to fund these services. A summary of potential sources to support these programs is noted in the Grants /Fund development section of the Action Plan Attachment. The Center will leverage City dollars provided for restructuring to develop resources to sustain these programs. Number or Program Clicros Cost Per Client 1 ital Program Cost Foreclosure Counseling Foreclosure 100 _ $437 _ $43.700 Foreclosure Recovery 30 $437 $13.110 Homebuyer Education _ Pre - Purchase Counsel 263 $173 $45,499 8 -Hour Workshop 72 _ $180 $12.960 Center Workshops ____ 1 -Hour Orientation 270 $48 $12,960 Financial Education 100 $48 $ 4,800 Total Estimated Stetg Costs to Provide Counseling/Education Annually $133,029 Page 3 of 9