Presentation on theme: "Neighborhood Stabilization Program"— Presentation transcript:
1 Neighborhood Stabilization Program Douglas CountyNeighborhood Stabilization Program
2 Federal Allocation to Georgia $153,037,451 Total Allocation$77,085,125 for State NSP$75,952,326 to NSP Entitlements (9)Atlanta DeKalb CountyAugusta/Richmond Co Fulton CountyClayton County Gwinnett CountyCobb County SavannahColumbus/Muscogee Co.
3 Public and Private Data by County Foreclosure DataNotices 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 lendersConventional home purchase mortgage loans by subprime lendersSources:Home Mortgage Disclosure Act (Federal Financial Institutions Examination Council)* Noted as “Trust Sales” in RealtyTrac data source
4 Public and Private Data by County Vacancy RatesUnits vacant 90 days or longerUSPSHigh Housing Cost BurdenHH’s <50% AMI paying >30% of income on housing
6 Need Determined by Actual Data and Ranks Formula used to measure need and determine possible direct allocations down to minimum grant size of $500,000Regional or Joint applications encouragedRemaining 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
7 State Action Plan Priorities Priority within Low-, Moderate- and Middle-Income AreasEach 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 $936,065Properties must be purchased at an overall discount of 15% as verified by an appraisal made within 60 days of purchase.
8 State Action Plan Priorities Continued Affordability – DCA proposes to adopt the HOME program standards to be in compliance with HUD’s affordability standardProgram income to be managed with existing CDBG Revolving Loan Fund (RLF) policies and local reporting procedures
9 Eligible ActivitiesEstablish financing mechanisms for purchase and redevelopment of foreclosed properties;0% interest soft secondsDown Payment assistancePurchase 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; andRedevelop demolished or vacant properties.
10 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
11 Georgia Department of Community Affairs NSP Program Budget Analysis *Staff Proposed Recommendation (For Review Only)Applicant: ___Douglas County___________________________________________Original: ___X__ Amendment dated: _____1NSP Eligible Use2Activity Name/Number3Itemized Unit Costs4NSP Funds5Other Funds6Source of Other Funds7Total Cost*(A)Down payment Assistance/H-013-00Administration/H-21A-00140± homebuyers assisted at an average of $25,000 a unit$224,655$3,519,607$0N/A8 Subtotal____________$3,744,262________$0___________$3,744,262______9 Grand Total (if final page)$_________Check here if continued on additional pages: ________ Page ___1__ of __1___ DCA NSP Form H
12 Timelines Action Plan published 11/13/2008 NOFA was announced December 1, 2008Applications for Direct Allocation must be received by January 15, 2009DCA expects HUD approval of its Plan by December 31, 2008DCA announces Direct Allocation awards on or about February 20, 200918 months (from HUD Plan approval) to “use” funds
13 Direct Allocation Application Rating Prioritization of assistance to area(s) of highest and greatest needDouglas 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 quicklyApplication is prepared and ready for submittal including down payment assistance, purchase & sale of foreclosed homes and demolition of blighted structures.
14 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 describedAdequacy of local proposal to ensure at least 25% of proposed allocation benefit persons below 50% of AMIUtilization of 0% soft seconds to accomplishClear readiness to proceed with specific activities
15 Direct Allocation Application Rating The efficiency and effectiveness of the proposed activitiesDemonstrated understanding of applicable laws and regulationsDescription of implementation partnerships (if any) and documentation of partner roles and agreementsTwo 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.
16 Other Considerations 18 months to obligate and spend funds Local governments can be identifying potential REO residential unitsQuarterly reports and monitoring