Transcript The Vermont Neighborhood Stabilization Program (NSP)
Vermont Neighborhood Stabilization Program (VT NSP) Approved Plan
Agency of Commerce and Community Development Department of Housing and Community Affairs
Agenda
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Approved VT NSP Plan
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NSP Regulations
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VT Foreclosure Process
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Application Review
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Short Break
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Questions & Answers
Vermont Neighborhood Stabilization Program (VT NSP) Approved Plan Goals
Acquire, renovate and sell/rent foreclosed or abandoned residential housing to households at or below 120% of area median income;
Allow municipalities to locally address the residential foreclosure problem of their community;
Provide an opportunity for- profit and non-profit entities to reutilize foreclosed properties;
Vermont Neighborhood Stabilization Program (VT NSP) Approved Plan Goals
Preserve foreclosed upon assisted housing;
Ensure long-term affordability;
Alleviate blighted and abandoned buildings; and
Support and enhance designated downtowns, villages, new neighborhoods and growth centers.
Vermont Neighborhood Stabilization Program (VT NSP) Approved Plan Three-Prong Approach I.
Homeownership Acquisition and Rehabilitation Program (HARP) - $7 million II.
Municipal Program - $5.5 million III.
Project-Specific Program - $6.5 million
I. Homeownership Acquisition and Rehabilitation Program (HARP) Funding to the Vermont Housing and Finance Agency (VHFA)
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Purchase and rehab abandoned or foreclosed upon residential properties to sell, rent, or redevelop
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Establish land banks for foreclosed upon homes
I. Homeownership Acquisition and Rehabilitation Program (HARP)
Acquire, rehab and sell properties
Transfer or sell properties to housing organizations All to be
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sold to income eligible homeowners rented to income eligible households
I. Homeownership Acquisition and Rehabilitation Program (HARP)
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Targeted Counties Essex Orleans Caledonia Orange Rutland Windham Southern Windsor
I. Homeownership Acquisition and Rehabilitation Program (HARP) Estimated Benefit
55 Households – at or below 120% of area median income
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Homeownership Acquisition and Rehabilitation Program (HARP) VHFA Overview
II. Municipal Program
Locally address residential foreclosure problem in Vermont communities
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Municipal applicants
II. Municipal Program
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Eligible Uses
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Establish financing mechanisms purchase and redevelopment of foreclosed upon homes and residential properties Purchase and rehabilitate abandoned or foreclosed upon homes and residential
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properties sell, rent, or redevelop Establish land banks Demolish blighted structures Redevelop demolished or vacant properties
II. Municipal Program
Acquire, rehab and sell properties Transfer or sell properties to housing organizations All to be
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sold to income eligible homeowners rented to income eligible households
II. Municipal Program
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Targeted Communities City and Town of Barre Town of Bennington City of Burlington Town of Hardwick City and Town of Newport City and Town of Rutland Town of St. Johnsbury Town of Springfield
The above are encouraged to work with contiguous communities with similar foreclosure problems.
II. Municipal Program
Estimated Benefit
50 homeownership and rental units
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13 Households – 120% - 81% of area median income 12 Households – 80% - 51% AMI 25 Households – 50% or below AMI
III. Project-Specific Program
Address projects more than 4 units per
structure or properties smaller than 4 units but together comprise more than four units
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For-profit or non-profit applicants
III. Project-Specific Program
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Eligible Uses
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Establish financing mechanisms purchase and redevelopment of foreclosed upon homes and residential properties Purchase and rehabilitate abandoned or foreclosed upon homes and residential
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properties sell, rent, or redevelop Establish land banks Demolish blighted structures Redevelop demolished or vacant properties
III. Project-Specific Program
Targeted Communities
III. Project-Specific Program
Estimated Benefit
50 rental and homeownership units
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13 Households – 120% - 81% of area median income 12 Households – 80% - 51% AMI 25 Households – 50% or below AMI
VT NSP Requirements
Serve Low, Moderate, and Middle Income (LMMI)
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Low Moderate Middle < 50% Area Median Income < 80% Area Median Income <120% Area Median Income
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Housing Public Facilities
VT NSP Requirements
At minimum 25% of the VT Grant ($4.9 million) must be used for the:
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purchase & redevelopment of abandoned or foreclosed upon residential properties to
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serving less than 50% Area Median Income BLIGHT DOES NOT COUNT!!!
VT NSP Requirements
Acquisition cost
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no more than 90% the appraised value
VT NSP Requirements
Sale price
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low as 50% total cost of acquisition, discharge of liens, rehab and transaction costs
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no more than the total of those costs, less 10%
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no profit earned on the sale if abandoned or foreclosed-upon residential property sold to an individual as a primary residence
VT NSP Requirements
Rehabilitate to comply with:
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Vermont Department Fire and Public Safety CDBG Lead Paint regulations Local building codes, and/or Zoning permit requirements
Incorporate green & energy efficient built environments
VT NSP Requirements
If a home assisted is sold:
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Sold to homeowners at or below 120% AMI
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occupied as primary residence
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receive at least 8 hours of HUD certified, home ownership counseling,
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secure financing that is not subprime, and
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agree to a continued affordability agreement
VT NSP Requirements
If a home assisted is rented:
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Rented to households at or below 120% AMI
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Occupied as primary residence
VT NSP Requirements
Affordability, at a minimum:
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15-year term - rehab properties
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20-year term - new construction
VT NSP Requirements
Community Development Block Grant (CDBG) Federal Regulations – generally apply to NSP funds
VT NSP Requirements
Uniform Relocation Act (URA)
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Appraisal required to establish statutory purchase discount
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All acquisitions must be voluntary
VT NSP Requirements
Uniform Relocation Act (URA)
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One to One replacement waived
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Only applies to LMI units that are demolished or converted using NSP funds
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Any reduction in units must be tracked just as the production of units is tracked
VT NSP Requirements
Uniform Relocation Act (URA)
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Relocation assistance remains the same
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Must follow a residential anti displacement and relocation plan
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Municipal Plan
VT NSP Requirements
Environmental Review
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Release of environmental conditions must be obtained
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3 Levels of Review
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Exempt Categorically Excluded Assessment
VT NSP Requirements
Environmental Review
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Acquisition is Exempt
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If purchase and sales contract executed prior to application for federal assistance
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Complete environmental review must still be conducted
VT NSP Requirements
Environmental Review
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Generally rehabilitation activities for single-family owner-occupied homes
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Categorically excluded
VT NSP Requirements
Environmental Review
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Substantial rehabilitation –
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Assessment Rehabilitation expenditures consist of greater than 75 % of the appraised value
VT NSP Requirements
Environmental Review
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Historic structures of 50 years or older must be reviewed by an “Authorized Historic Preservationist”
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See list on website
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http://www.dhca.state.vt.us/VCDP/Grants%20Man agement/HP%20Consultants.pdf
VT NSP Requirements
Environmental Review
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Demolition activities
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Historic structures Archaeologically sensitive
VT NSP Requirements
Labor Standards
Davis Bacon
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Not applicable to single-family owner occupied
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Applicable to Single-family rental homes
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8 or more units, commonly owned
VT NSP Requirements
Davis Bacon
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Applicable to 8 or more units of multi family rental housing
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Same or contiguous parcel
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Wage Rates must be obtained
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http://www.gpo.gov/davisbacon/
VT NSP Requirements
Procurement Non-Profits
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Must follow 24 CFR §85 Open and competitive process
VT NSP Requirements
Procurement For-Profits
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Exempt from any Regulations for Procurement
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Employ prudent practices when using public funds
VT NSP Requirements
Contracts
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Must establish a written contract for any work to be paid for with federal funds
VT NSP Requirements
Contracts
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Bonding Requirements
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Bid Guarantee – 5% of bid price Performance Bond – 100% of contract price
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Ensure fulfillment of contract obligations Payment Bond – 100% of contract price
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Ensure payment to subcontractors
VT NSP Requirements
Program Income
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Income generated as a result of the use of the NSP funds, by public and private entities
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Sale Rental Redevelopment Rehabilitation
VT NSP Requirements
Program Income
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Within the 18 month window of obligation, income generated must reduce any new requisitions of NSP funds
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August 2010
VT NSP Requirements
Program Income
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Received prior to July 30, 2013
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May be retained, if treated as CDBG funds
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Income received by a private entity must always be returned
VT NSP Requirements
Program Income
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Received on or after July 30, 2013
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Return to U.S Treasury Including the income from the Sale of rental housing – after that date
VT NSP Requirements
Program Income
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Received on or after July 30, 2013
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May be retained with approval from HUD
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Income in excess of the cost to acquire, rehabilitate – abandoned or foreclosed upon home or residential property
VT NSP Requirements
Obligate funds
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August 2010 GRANTEE or SUB-GRANTEE, NOT VERMONT
Expend funds & meet benefit
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February 2013
VT Foreclosure Process Vermont Foreclosure Process
Application Selection & Review Process 1 Round - Rolling Acceptance
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January - May 2009 http://www.dhca.state.vt.us/VCDP/NSP.html
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Scored and ranked with recommendation CD Board Decision 45-days from application submittal Grant Agreement 35 days from decision
Application Selection & Review Process
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Competitive Factors Need met Readiness Plan to encumber funds by August, 2010 Capacity to undertake project on time and on budget Ratio of units serving households at or below 50% AMI
Application Selection & Review Process
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Competitive Factors Preservation of existing public subsidy Longevity of benefit and affordability Incorporation of energy efficiency and conservation Location in designated downtown, village, new neighborhood or growth center
Application Selection & Review Process
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Competitive Factors Elimination of health or safety issues Sustainability Cost effectiveness and leverage of NSP funds Meeting other Consolidated Plan Priorities
Application Selection & Review Process Tiers A.
Eligible – Targeted - At or below 50% AMI B.
Eligible – Targeted - Not at or below 50% AMI C.
Eligible – Not Targeted - At or below 50% AMI D.
Eligible – Not Targeted - Not at or below 50% AMI
Feasible yet unsuccessful applications will be ranked and maintained for future consideration should a successful application(s) fail to proceed toward fruition.
Vermont Neighborhood Stabilization Program (VT NSP) Approved Plan