Transcript 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.

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
Action Plan Requirements
• Title III, Section 2301 of the Housing and
Economic Recovery Act of 2008 (HERA)
• An amendment to State’s FFY 2008 Action
Plan
• Must be submitted to HUD no later than
12/1/2008
• Federal Register Notice – 10/6/2008
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 (see map)
• Each Sub-Recipient must use at least 25% of
their funds to assist those at or below 50% of
Area Median Income (AMI)…(rental)
• 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 at 24
CFR 92.252(a), (c), (e) and (f), and 92.254 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;
– 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.
Timelines
• Action Plan published 11/13/2008
• NOFA to be 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
• 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
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
• 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
• Needed agreements (e.g. options, contracts,
leases, etc.) are in place and ready to
implement.
Flexible Pool
• $15,303,743*
• NSP funds awarded in flexible pool must
be used in conjunction with these
programs:
– Low Income Housing Tax Credit Program
– Permanent Supportive Housing Program
– GHFA/NSP Blight Program
• RFP to award funds to be issued in
January 2009
* Initial allocation is approximate and subject to change
Other Considerations
• 18 months to obligate and spend funds
• Local governments should 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
Reallocations
• State Direct Allocation jurisdictions that do
not apply for their initial allocations
• Slow projects to be subject to reallocation
by DCA
• ALL jurisdictions (both NSP entitlement
and non-entitlement) are eligible for State
re-allocations…If they submit a letter of
interest and copy of Action Plan
Other Considerations
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Definitions
Sustainable affordability
Rehabilitation Standards
25% of funds to <50% AMI
Relocation/URA Requirements
Discussion
Questions
[email protected]
• Brian Williamson, Assistant Commissioner
• Glenn Misner, Director, Office of Field Services,
• Steed Robinson, Director, Office of Community
Development,
• Cassandra Knight, Legal Affairs Manager