Federal Allocation to Georgia

2. Federal Allocation to Georgia • $153,037,451 Total Allocation • $77,085,125 for State NSP • 75,952,326 to NSP Entitlements (9) • Atlanta - DeKalb County • Augusta/Richmond Co. - Fulton County • Clayton County - Gwinnett County • Cobb County - Savannah • Columbus/Muscogee Co.

3. 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

4. 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

5. 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

6. DCA Determined Need by Actual Data and Ranks

7. 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

8. State Action Plan Priorities • Priority within Low-, Moderate- and Middle-Income 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.

9. 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

10. 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.

11. 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

12. 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

13. 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

14. 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.

15. 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

16. Other Considerations • 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

17. 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

18. Other Considerations • Definitions • Sustainable affordability • Rehabilitation Standards • 25% of funds to <50% AMI • Relocation/URA Requirements

19. Discussion

20. Questionsnsp.questions@dca.ga.gov • Brian Williamson, Assistant Commissioner • Glenn Misner, Director, Office of Field Services, • Steed Robinson, Director, Office of Community Development, • Cassandra Knight, Legal Affairs Manager