Hardest Hit Analysis: Cost Per Household Up by 37% for All Programs, 150% for Unemployed Mortgage Payment Assistance Program.

I recently discovered that there has been an apparent 3rd amendment to the Hardest Hit Oregon/Treasury contract that included new allocation amounts for the different programs and new numbers of expected households. 

This amendment has different program allocations and projected households than those found on the Treasury website and the recent October TARP Special IG report.

Assuming Treasury has or will approve this third amendment , I did an analysis that shows a breakout of costs and expected households for each of the 4 programs, as well as a cost per household estimate. The comparison is between the initial approved Treasury plan and the latest apparent 3rd amendment. That analysis is HERE.

Some observations:

1. Per household costs for all programs went up by 37%, from $11,892 to $16,318 per household.
2. Cost for the (unemployed) Mortgage Assistance Payment Program went up by 150% from $8,000 to $20,000 per household. 
3. Total dollars increased by 150% ($88,000,000 to $220,042,786) while expected households helped increase by 82% (7,400 to 13,485).
4. Permitted expenses/admin expense per household declined by 14% from $1,682 to $1,446. 
5. The terms of the Mortgage Assistance program changed from an initial limitation of $1,400 for 6 months and a maximum of $8,400 to the latest "12 months of mortgage payment assistance or $20,000, whichever is used first".
6. I have consolidated the term sheets for all 4 programs in this third amendment, including the Mortgage Payment Assistance program, into a single PDF file HERE.

Originally created and posted on the Oregon Housing Blog.