Transcript Douglas County Neighborhood Stabilization Program Federal Allocation to Georgia • $153,037,451 Total Allocation • $77,085,125 for State NSP • $75,952,326 to NSP Entitlements (9) – Atlanta –

Douglas County
Neighborhood Stabilization
Program
Federal Allocation to Georgia
• $153,037,451 Total Allocation
• $77,085,125 for State NSP
• $75,952,326 to NSP Entitlements (9)
– Atlanta
– Augusta/Richmond Co.
– Clayton County
– Cobb County
– Columbus/Muscogee Co.
- DeKalb County
- Fulton County
- Gwinnett County
- Savannah
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
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
DCA Determined Need by Actual
Data and Ranks
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
State Action Plan Priorities
• Priority within Low-, Moderate- and MiddleIncome 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.
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
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.
Total Budget: (Include public and private components)
Acquisition
(a) Total NSP Grant Funds
$3,744,262
(b) Administration Funds
(for entire program)
$ 224,655 (this is 6% of the NSP)
(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
Georgia Department of Community Affairs
NSP Program
Budget Analysis
*Staff Proposed Recommendation (For Review Only)
Applicant: ___Douglas County___________________________________________
Original: ___X__
1
NSP
Eligible
Use
*(A)
Amendment dated: _____
2
Activity
Name/Numbe
r
3
Itemized Unit Costs
Down
payment
Assistance/H013-00
140± homebuyers
assisted at an average
of $25,000 a unit
Administratio
n/H-21A-00
$224,655
4
NSP Funds
5
Other Funds
6
Source of Other
Funds
7
Total Cost
$3,519,607
$0
N/A
$3,519,607
$224,655
$0
N/A
$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: ________
DCA NSP Form H
Page ___1__ of __1___
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
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.
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
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.
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
Discussion