Georgia Department of Community Affairs

1. Georgia Department of Community Affairs Mike Beatty, Commissioner www.dca.ga.gov

2. State of Georgia Neighborhood Stabilization Program Recipient Workshop April 14, 2009

3. State of Georgia Neighborhood Stabilization Program Federal NSP Funds Awarded March 6, 2009 18 Month Obligation “Clock” Expires September 5, 2010

4. NSP Eligible Activities

5. Relevant Definition: Foreclosed upon. A property “has been foreclosed upon” at the point that, under state or local law, the mortgage or tax foreclosure is complete. HUD generally will not consider a foreclosure to be complete until after the title for the property has been transferred from the former homeowner under some type of foreclosure proceeding or transfer in lieu of foreclosure, in accordance with state or local law.

6. Eligible Activities

7. Relevant Definitions: Abandoned. A home is abandoned when mortgage or tax foreclosure proceedings have been initiated for that property, no mortgage or tax payments have been made by the property owner for at least 90 days, AND the property has been vacant for at least 90 days.

8. Eligible Activities

9. Eligible Activities

10. Eligible Activities

11. Eligible Activities

12. Ineligible Activities • Foreclosure Prevention • Demolition of non-blighted structures

13. Meeting the “25% Rule” Relevant Definitions: HERA (Section 2301(f)(3)(A)(ii) states: "not less than 25 percent of the funds appropriated or otherwise made available under NSP shall be used for the purchase and redevelopment of abandoned or foreclosed upon homes or residential properties that will be used to house individuals or families whose incomes do not exceed 50 percent of area median income".

14. Meeting the “25% Rule” Relevant Definitions: What is “ Housing?” CDBG Definition of Housing prevails CDBG Statute defines these as Public Facilities: • Shelters • Convalescent homes • Nursing Homes • Battered Spouse Shelters

15. Meeting the “25% Rule” Relevant Definitions: CDBG Statute defines these as Public Facilities: • Halfway Houses • Group homes for persons with mental retardation • Temporary housing for disaster victims

16. Meeting the “25% Rule” Relevant Definitions: Project types listed are not housing, however, • Can be undertaken under NSP Activity E • DO NOT COUNT toward the “25% Rule” regardless of NSP eligibility category • Awaiting HUD clarification on policy for other types of housing • transitional with affordable rents & lease • Other type group homes with rent and lease

17. Meeting the “25% Rule”

18. QUIZ TIME

19. Is it Eligible? Does it Count? • Use NSP to demolish a vacant blighted school and build new rental units for very low income tenants? • Is it Eligible? • Does it Count?

20. Is it Eligible? Does it Count? • Use NSP to purchase REO property and rehab then provide down-payment and/or soft second mortgage assistance to sell to households <50% AMI? • Is it Eligible? • Does it Count?

21. Is it Eligible? Does it Count? • Use NSP to acquire dilapidated buildings and demolish in order to remove blighting influence on neighborhood? • Is it Eligible? • Does it Count?

22. Project Delivery Costs (PDC’s)Allowable performance based fees for NSP Activities – Single Family (1- 4 units)

23. Project Delivery Costs Do not include activity based items that are paid out of the activity budget • Legal fees • Appraisals • Closing costs • Surveys • Etc.

24. Questions?