Georgia s neighborhood stabilization program grants
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Georgia’s Neighborhood Stabilization Program Grants . Process, Procedures and Timelines. Law and Regulations. Title III, Section 2301 of the Housing and Economic Recovery Act of 2008 (HERA) Federal Register Notice – 10/6/2008

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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/programs/neighborhoodspg/


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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.


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HUD’s 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


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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


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State Action Plan Requirements

  • An amendment to State’s 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


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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.



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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


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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


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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


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Survey and NOFA Processes

  • Survey mailed to all local governments 10/8/08...Response needed for State’s 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


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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


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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.


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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.


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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


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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


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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.pdf

    • www.occ.treas.gov/cdd/MortgageElectronicRegistrationSystems.pdf

    • www.mers-servicerid.org

  • Quarterly reports and monitoring

  • Slow projects to be subject to reallocation by DCA


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Questions

  • Brian Williamson, Assistant Commissioner, 404.679.1587, bwilliam@dca.state.ga.us

  • Glenn Misner, Director, Office of Field Services, 404-679-3138, gmisner@dca.state.ga.us

  • Steed Robinson, Director, Office of Community Development, (404) 679-3168, srobinso@dca.state.ga.us