Georgias Neighborhood Stabilization Program Grants

1
Georgias Neighborhood Stabilization Program
Grants

• Process, Procedures and Timelines

2
Law and Regulations

• Title III, Section 2301 of the Housing and
  Economic Recovery Act of 2008 (HERA)
• Federal Register Notice 10/6/2008
• www.hud.gov/offices/cpd/communitydevelopment/progr
  ams/neighborhoodspg/

3
Eligible Activities

• Establish financing mechanisms for purchase and
  redevelopment of foreclosed upon homes and
  residential properties, including such mechanisms
  as soft-seconds, loan loss reserves, and
  shared-equity loans for LMI homebuyers
• Purchase and rehabilitate homes and residential
  properties that have been abandoned or foreclosed
  upon, in order to sell, rent, or redevelop such
  homes and properties
• Establish land banks for homes that have been
  foreclosed upon
• Demolish blighted structures and
• Redevelop demolished or vacant properties.

4
HUDs National Allocation Formula

• Georgia -- Entitlements allocation of 75.9MM
  State Non-Entitlement allocation of 77MM
• State and Entitlements are Drafting Action
  Plans for submission to HUD
• 18 months for states and locals to use the
  funds
• Allocated to states local governments with
  modified entitlement and non-entitlement
  definitions

5
Allocation Amounts

• ATLANTA 12,316,082
• AUGUSTA 2,473,064
• CLAYTON COUNTY 9,732,126
• COBB COUNTY 6,889,134
• COLUMBUS-MUSCOGEE 3,117,039
• DE KALB COUNTY 18,545,013
• FULTON COUNTY 10,333,410
• GWINNETT COUNTY 10,507,827
• SAVANNAH 2,038,631
• GEORGIA STATE PROGRAM 77,085,125

6
State Action Plan Requirements

• An amendment to States FFY 2008 Consolidated
  Plan
• Must be submitted to HUD no later than 12/1/2008
  (requires mid November publishing for public
  comment)
• Submitted using DRGR System

7
State Distribution Formula Requirements

• Priority emphasis and consideration to ALL
  jurisdictions including those metropolitan areas,
  cities, urban areas, rural areas, low- and
  moderate-income areas, and other areas with the
  greatest need, including those
• (A) with the greatest percentage of home
  foreclosures
• (B) with the highest percentage of homes financed
  by a subprime mortgage related loan and
• (C) identified by the State as likely to face a
  significant rise in the rate of home foreclosures.

8
DCA to Determine Need by Actual Data and Ranks
9
State Formula Private Data Sources

• Foreclosure Data by County Activity Data
• Notices of Foreclosure Sales
• Number and of Households
• Real Estate Owned Property
• Number of Households
• www.RealtyTrac.Com

Noted as Trust Sales in RealtyTrac data source
10
State Formula Public Data Sources

• Home Mortgage Disclosure Act (Federal Financial
  Institutions Examination Council)
• of conventional home mortgages by subprime
  lenders by County (2005)
• Conventional home purchase mortgage loans by
  subprime lenders by County (2005)
• http//beta.dataplace.org

Noted as Trust Sales in RealtyTrac data source
11
Need Determined by Actual Data and Ranks

• Formula to be used to measure need and determine
  possible allocations down to minimum grant size
• After minimum grant size is no longer allocated,
  funds will be placed in a flexible pool
  administered by GHFA for competition among those
  who desire funding but had insufficient need for
  a formula allocation

12
Survey and NOFA Processes

• Survey mailed to all local governments
  10/8/08...Response needed for States Action Plan
  ASAP
• Action Plan published for comment 11/15/2008
  /- with submission to HUD by 12/1/2008
• Concurrent with a DCA NOFA Process and Receipt of
  Local RFPs

13
Threshold Criteria for All Local Proposals

• Documentation of capacity
• Identified low- and moderate income areas of need
• Identified need, project and LMMI activities
• Including how recipient will meet the requirement
  to insure 25 of their grant will benefit persons
  at or below 50 of Area Median Income
• Readiness to proceed
• Efficiency ( of units)
• Understanding of applicable law/regulation, and
• Agreements in place

14
State Action Plan Priorities

• State must describe specifics on activities to be
  undertaken
• 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.

15
State Action Plan Priorities

• Priority within Low-, Moderate- and Middle-Income
  Areas (see map)
• Each Recipient must use at least 25 of their
  funds to assist those at or below 50 of Area
  Median Income (AMI)(rental)
• Applicant to know which specific properties are
  to be addressed and be ready to implement
  (options, etc)
• Properties must be purchased at an overall
  discount of 15 as verified by an appraisal made
  within 60 days of purchase.

16
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 HUDs affordability standard
• Program income to be managed with existing CDBG
  Revolving Loan Fund (RLF) policies and local
  reporting procedures

17
Timelines

• Action Plan to be published by 11/15/2008
• NOFAs and Applications to be distributed to Local
  Governments late November
• Formula Amount or
• Flexible Pool Competitor
• DCA expects HUD approval of its Plan in December
• DCA hopes to approve its allocations shortly
  thereafter

18
Performance will be key

• 18 months to obligate and spend funds
• Local governments should be identifying potential
  REO residential units
• www.occ.treas.gov/cdd/ServicerContactInformation.p
  df
• www.occ.treas.gov/cdd/MortgageElectronicRegistrati
  onSystems.pdf
• www.mers-servicerid.org
• Quarterly reports and monitoring
• Slow projects to be subject to reallocation by
  DCA

19
Questions

• Brian Williamson, Assistant Commissioner,
  404.679.1587, bwilliam_at_dca.state.ga.us
• Glenn Misner, Director, Office of Field Services,
  404-679-3138, gmisner_at_dca.state.ga.us
• Steed Robinson, Director, Office of Community
  Development, [phone], srobinso_at_dca.state.ga
  .us