2013-14 ALLOCATION OF FUNDS Presented By: Kelly Gallatin Federal Funds Manager.
Federal Allocation to Georgia
description
Transcript of Federal Allocation to Georgia
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.
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 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.
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
• 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