Neighborhood Stabilization Program March 4, 2009

Neighborhood Stabilization Program

March 4, 2009

Georgia’s Neighborhood Georgia’s Neighborhood Stabilization Program (NSP I)Stabilization Program (NSP I)

Georgia Department of Georgia Department of Community Affairs Community Affairs

Georgia Foreclosure TrendGeorgia Foreclosure Trend

Georgia Total

0

2,000

4,000

6,000

8,000

10,000

Notices of Trustee Sale 8556 6034 6870 7137 6057 5326 6487 5699 6468 5642 5533 4995 7112

Real Estate Ow ned 2091 1556 4130 2329 4525 3348 3498 2963 2781 4195 4444 4987 2794

Jan'08 Feb'08 Mar'08 Apr'08 May'08 Jun'08 Jul'08 Aug'08 Sep'08 Oct'08 Nov'08 Dec'08 Jan'09

Georgia Foreclosure TrendGeorgia Foreclosure Trend

-

20,000

40,000

60,000

80,000

Georgia Total

NTS 55,624 75,196 74,804

REO 19,808 24,263 40,847

2006 2007 2008

Federal NSP(1) Allocation to Federal NSP(1) Allocation to GeorgiaGeorgia

• $153,037,451 Total Allocation$153,037,451 Total Allocation• $77,085,125 for State NSP$77,085,125 for State NSP• 75,952,326 to NSP Entitlements (9)75,952,326 to NSP Entitlements (9)

– AtlantaAtlanta - DeKalb County - DeKalb County– Augusta/Richmond Co. - Fulton CountyAugusta/Richmond Co. - Fulton County– Clayton CountyClayton County - Gwinnett County - Gwinnett County– Cobb CountyCobb County - Savannah - Savannah– Columbus/Muscogee Co.Columbus/Muscogee Co.

State Action Plan ApprovedState Action Plan Approved

• Formula Allocations and Flexible PoolFormula Allocations and Flexible Pool– $54,440,358 (formula) and $19,561,362 $54,440,358 (formula) and $19,561,362

(flex)(flex)

• Federal Grant Agreement Expected SoonFederal Grant Agreement Expected Soon– Formula Grants to start thereafterFormula Grants to start thereafter

• Grant Agreements to Local Govts with Grant Agreements to Local Govts with General and Special ConditionsGeneral and Special Conditions

$54M in Formula $54M in Formula ApplicationsApplications

City of Atlanta $3,988,317Bibb County $4,151,543Carroll County $2,622,059Cherokee County $3,210,980City of Albany & Dougherty County $ 801,214Cobb County $1,693,221Coosa Valley RDC Regional App* $6,526,830City of Covington $ 428,070Coweta County & City of Newnan $2,124,021Douglas County $3,809,526Fayette County $1,178,544

City of Fitzgerald Regional Application** $ 635,201Fulton County &City of Roswell $3,025,000Garden City & Chatham County $ 926,308Gwinnett County $3,004,227Hall County $2,263,680Henry County $6,251,265Houston County $ 622,359Newton County $1,742,760Richmond County $ 23,039Rockdale County $2,700,020Spalding County $1,475,702Whitfield County Regional $1,236,472

Nature of Formula ApplicationsNature of Formula Applications

• General in nature and most were not too General in nature and most were not too specific on areas of operation or activitiesspecific on areas of operation or activities

• Local governments are relying on partners Local governments are relying on partners to develop projectsto develop projects

• Note Awards will carry General and Special Note Awards will carry General and Special Conditions that will require the details of Conditions that will require the details of particular programs to be developed prior particular programs to be developed prior to undertaking local programs to undertaking local programs

Typical Special ConditionsTypical Special Conditions

• Approval of agreements with Sub Recipients Approval of agreements with Sub Recipients that spell out administrative responsibilities that spell out administrative responsibilities AND transaction detailsAND transaction details

• Approval of legal documents (loan Approval of legal documents (loan documents, rehabilitation contracts, documents, rehabilitation contracts, procurement processes, etc.)procurement processes, etc.)

• Approval of CDBG administrative frameworks Approval of CDBG administrative frameworks (Revolving Loan Funds for program income, (Revolving Loan Funds for program income, rehabilitation policies, etc.)rehabilitation policies, etc.)

Typical Special ConditionsTypical Special Conditions

• Agreement for activities to take place Agreement for activities to take place in areas of greatest foreclosure needin areas of greatest foreclosure need

• Agreement to adopt standards for Agreement to adopt standards for counseling, maintaining affordability, counseling, maintaining affordability, building codes, etc.building codes, etc.

• Agreement to follow federal Agreement to follow federal procurement requirements for procurement requirements for contractorscontractors

Reconciling NSP I with NSP IIReconciling NSP I with NSP II

• American Recovery and Reinvestment American Recovery and Reinvestment Act of 2009 makes amendments to Act of 2009 makes amendments to HERAHERA– What’s Retroactive to NSP I and What’s Not?What’s Retroactive to NSP I and What’s Not?

•Eligible activities modifiedEligible activities modified

•HERA reinvestment clause repealed to be HERA reinvestment clause repealed to be replaced by CDBG program income rulereplaced by CDBG program income rule

•No demolition of public housingNo demolition of public housing

– NSP II funding to be competitive NSP II funding to be competitive

Flexible PoolFlexible Pool

• $19,561,362*$19,561,362*• NSP funds awarded in flexible pool NSP funds awarded in flexible pool

must be used in conjunction with must be used in conjunction with these programs:these programs:– Low Income Housing Tax Credit ProgramLow Income Housing Tax Credit Program– Permanent Supportive Housing ProgramPermanent Supportive Housing Program– Georgia Dream/NSP Purchase ProgramGeorgia Dream/NSP Purchase Program– RFP to DCA by COB March 27, 2009RFP to DCA by COB March 27, 2009

* allocation is approximate and subject to change

State NSP “Recipients State NSP “Recipients Workshop”Workshop”

• Asking Formula Applicants to hold April Asking Formula Applicants to hold April 44thth

– Discussion of Special and General ConditionsDiscussion of Special and General Conditions– Drawdown ProtocolsDrawdown Protocols– Update on HUD GuidanceUpdate on HUD Guidance– Partner Roundtable and Q&APartner Roundtable and Q&A

• Tentative Location – The Loudermilk Tentative Location – The Loudermilk CenterCenter

QuestionsQuestions

  nsp.questions@dca.ga.gov

• Brian Williamson, Assistant CommissionerBrian Williamson, Assistant Commissioner

• Glenn Misner, Director, Office of Field Glenn Misner, Director, Office of Field Services, Services,

• Steed Robinson, Director, Office of Steed Robinson, Director, Office of Community Development, Community Development,

• Cassandra Knight, Legal Affairs ManagerCassandra Knight, Legal Affairs Manager

Cobb County

City of Atlanta

Douglas County

Fulton County

Hall County

Newnan-Coweta County

City of Covington