douglas county neighborhood stabilization program
TRANSCRIPT
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Douglas County
Neighborhood Stabilization Program
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Federal Allocation to Georgia
• $153,037,451 Total Allocation
• $77,085,125 for State NSP
• $75,952,326 to NSP Entitlements (9)– Atlanta - DeKalb County– Augusta/Richmond Co. - Fulton County– Clayton County - Gwinnett County– Cobb County - Savannah– Columbus/Muscogee Co.
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Public and Private Data by County• Foreclosure Data
– Notices of Default (Number and % of Households)– Notices of Foreclosure Sales* (*Number and % of
Households)– Real Estate Owned Property (Number and % of Households)
• Mortgage Loan Data– % of conventional home mortgages by subprime lenders– Conventional home purchase mortgage loans by subprime
lenders
Sources:• Home Mortgage Disclosure Act (Federal Financial Institutions Examination Council)
http://beta.dataplace.org• www.RealtyTrac.Com
* Noted as “Trust Sales” in RealtyTrac data source
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Public and Private Data by County
• Vacancy Rates• Units vacant 90 days or longer
– USPS
• High Housing Cost Burden–HH’s <50% AMI paying >30% of income
on housing
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DCA Determined Need by Actual Data and Ranks
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Need Determined by Actual Data and Ranks
Formula used to measure need and determine possible direct allocations down to minimum grant size of $500,000
Regional or Joint applications encouraged Remaining funds will be placed in a “flexible
pool” to be administered by the Georgia Housing Finance Agency (GHFA)
Entitlement needs adjusted by offset from previous HUD allocation
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State Action Plan Priorities
• Priority within Low-, Moderate- and Middle-Income Areas
• Each Sub-Recipient must use at least 25% of their funds to assist those at or below 50% of Area Median Income (AMI)…(rental)
For Douglas County this amount is $936,065
• Properties must be purchased at an overall discount of 15% as verified by an appraisal made within 60 days of purchase.
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State Action Plan Priorities
• Continued Affordability – DCA proposes to adopt the HOME program standards to be in compliance with HUD’s affordability standard
• Program income to be managed with existing CDBG Revolving Loan Fund (RLF) policies and local reporting procedures
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Eligible Activities
– Establish financing mechanisms for purchase and redevelopment of foreclosed properties;
• 0% interest soft seconds• Down Payment assistance
– Purchase and rehab residential properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such properties;
– Establish land banks for homes that have been foreclosed upon;
– Demolish blighted structures; and– Redevelop demolished or vacant properties.
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Total Budget: (Include public and private components)
Acquisition
(a) Total NSP Grant Funds $3,744,262
(b) Administration Funds $ 224,655 (this is 6% of the NSP) (for entire program) (c) Break-out of Acquisition Funds (1) 50% or under AMI $ 936,065 (this is 25% of the NSP) (2) 51%-80% of AMI $ 387,531 (this is 10.35% of the NSP) (3) 81%-120% of AMI $2,196,011 (this is 58.65% of the NSP)
$3,519,607
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Georgia Department of Community AffairsNSP Program
Budget Analysis*Staff Proposed Recommendation (For Review Only)
Applicant: ___Douglas County___________________________________________
Original: ___X__ Amendment dated: _____
1NSP
Eligible Use
2Activity
Name/Number
3Itemized Unit Costs
4NSP Funds
5Other Funds
6Source of Other
Funds
7Total Cost
*(A) Down payment
Assistance/H-013-00
Administration/H-21A-00
140± homebuyers assisted at an average
of $25,000 a unit
$224,655
$3,519,607
$224,655
$0
$0
N/A
N/A
$3,519,607
$224,655
8 Subtotal _________ ___$3,744,262______
__$0_______ ____$3,744,262______
9 Grand Total (if final page)
$_________ ___$3,744,262______
__$0_______ ____$3,744,262______
Check here if continued on additional pages: ________ Page ___1__ of __1___ DCA NSP Form H
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Timelines
• Action Plan published 11/13/2008• NOFA was announced December 1, 2008• Applications for Direct Allocation must be
received by January 15, 2009• DCA expects HUD approval of its Plan by
December 31, 2008• DCA announces Direct Allocation awards on or
about February 20, 2009• 18 months (from HUD Plan approval) to “use”
funds
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Direct Allocation Application Rating
• Prioritization of assistance to area(s) of highest and greatest need– Douglas County is 3rd in the State for areas of greatest
need.• Administrative capacity (understanding and
history of successfully completing CDBG and HERA type activities)
• Implementation plan with specific eligible activities, and documentation of ability to implement activities quickly– Application is prepared and ready for submittal
including down payment assistance, purchase & sale of foreclosed homes and demolition of blighted structures.
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Direct Allocation Application Rating• Congruence between DCA’s initial proposed
allocation, funds requested through the local proposal, and the activities chosen to address the needs described
• Adequacy of local proposal to ensure at least
25% of proposed allocation benefit persons below 50% of AMI– Utilization of 0% soft seconds to accomplish
• Clear readiness to proceed with specific activities
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Direct Allocation Application Rating• The efficiency and effectiveness of the proposed
activities
• Demonstrated understanding of applicable laws and regulations
• Description of implementation partnerships (if any) and documentation of partner roles and agreements– Two possible partners for administration of funds; Cobb Housing
Authority and/or Atlanta Neighborhood Development Partners.
• Needed agreements (e.g. options, contracts, leases, etc.) are in place and ready to implement.
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Other Considerations
• 18 months to obligate and spend funds• Local governments can be identifying
potential REO residential units– www.occ.treas.gov/cdd/ServicerContactInform
ation.pdf– www.occ.treas.gov/cdd/MortgageElectronicRe
gistrationSystems.pdf
– www.mers-servicerid.org
• Quarterly reports and monitoring
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Discussion