Assistance for the Redevelopment of Abandoned and Foreclosed Properties City of Atlanta, Georgia

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Merryl Sullivan
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1 Community Development Block Grant Neighborhood Stabilization Program Title III, Section 2301 of the Housing and Economic Recovery Act of 2008 (HR 3221) Assistance for the Redevelopment of Abandoned and Foreclosed Properties City of Atlanta, Georgia

Recovery Act of 2008 (HR 3221) Assistance for the

2 Overview The NSP program will provide emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities. Allocations City of Atlanta was allocated $12.3M. State of Georgia was allocated $153M.

otherwise become sources of abandonment and blight within their communities.

3 % of AMI 2008 Income Limits Adjusted by Household Size Atlanta, Georgia % $24,900 $28,500 $32,050 $35,600 $38,450 $41,300 $44,150 $47,000 80% $39,850 $45,550 $51,250 $56,950 $61,500 $66,050 $70,650 $75, %* $59,800 $68,350 $76,900 $85,450 $92,300 $99,100 $105,950 $112,800 Note: Low/Moderate /Middle Income Housing

$45,550 $51,250 $56,950 $61,500 $66,050 $70,650 $75,200 120%* $59,800 $68,350

4 Atlanta s NSP Targeted Areas City of Atlanta will target only those Census Tracks that received a HUD Foreclosure & Abandonment Risk Score of 8, 9 & 10. HUD s Foreclosure & Abandonment Risk score is based on actual foreclosures, the % of hi cost loans, and the predicted foreclosure rate over the next 18 months. 73 out of the 129 Census Tracks in the City Limits of Atlanta meet this requirement NSP targeted area represents portions of the following zip codes: 30307, 30310, 30311, 30312, 30314, 30315, 30316, 30317, 30318, 30331, &

HUD s Foreclosure & Abandonment Risk score is based on actual foreclosures, the % of hi cost loans, and the predicted foreclosure rate

6 NSP Standards & Affordability Requirements All properties acquired with NSP funds, must be acquired from an REO at discount from the current (60 days or less) appraised value Properties must meet Atlanta Housing Code, City of Atlanta Lead Based Paint & Rehabilitation Standards and include Energy Efficiency Elements upon sale or rent. Properties can not be sold for more than the total development cost or after rehab appraised value, whichever is less. Properties will have a recorded deed restriction, to ensure long term affordability based on the NSP funds invested. Affordability period ranges from 5 years to 20 years based on amount of investment & project type. Rental Rates can not exceed the Atlanta Fair Market Rents, minus utilities, adjusted for bedroom size.

Properties can not be sold for more than the total development cost or after rehab appraised value, whichever is less.

7 NSP Activity #1 Financing Mechanisms Origination Fees for the issuance of Single Family Mortgage Revenue Bonds Down Payment & Closing Cost Assistance Permanent Soft second Loans Project Types: Single Family Homeownership Eligible Participants: Households below 120% AMI Eligible Properties: Foreclosed Properties Eligible Areas: NSP Target Areas

second Loans Project Types: Single Family Homeownership Eligible Participants:

8 NSP Activity #2 Acquisition, Rehabilitation & Disposition Revolving Loan Fund will be made available to Housing Partners to cover costs associated with: Acquisition Temporary Land Banking of Properties (if applicable) Limited or Substantial Rehab & Energy Efficiency Improvements Disposition Eligible Project Types: Rental & Homeownership Eligible Participants: Households below 120% AMI Eligible Properties: Foreclosed & Abandoned Properties Eligible Areas: NSP Target Areas

Substantial Rehab & Energy Efficiency Improvements Disposition Eligible Project Types: Rental & Homeownership Eligible

9 NSP Activity #3 Land Banking Fulton County/City of Atlanta Land Bank Authority will implement this activity NSP funds will cover Acquisition & Maintenance Costs for up to 10 years Project Types: Homeownership & Rental Eligible Participants: Households below 120% AMI Eligible Properties: Foreclosed & Abandoned Properties needed for Future Development Eligible Areas: NSP Target Areas

Types: Homeownership & Rental Eligible Participants: Households below 120% AMI Eligible

10 NSP Activity #4 Demolition Demolish blighted structures in target areas in order to improve neighborhood safety and security Demolished properties will be redeveloped or land banked for future development Eligible Properties: Blighted Residential Structures Eligible Areas: NSP Target Areas

properties will be redeveloped or land banked for future development

11 NSP Activity #5 Redevelopment New Construction of Demolished Properties Rehabilitation of Vacant Properties Project Types: Homeownership, Rental, Public Use Eligible Participants: Households below 120% AMI Eligible Properties: Demolished & Vacant Properties Eligible Areas: NSP Target Areas

Rental, Public Use Eligible Participants: Households below 120% AMI

12 Activity NSP Budget Budget Allocation Financing Mechanisms $1,250, Acquisition, Rehabilitation, Disposition $8,900,000 Land Banking $375, Demolition $159, Redevelopment $400, Planning & Administration $1,231, Total $12,316, City of Atlanta will allocate at least $3,079, to produce housing for those at 50% of AMI and below. City of Atlanta will seek additional NSP funds from the Georgia Department of Community Affairs. Up to $7.9M in additional NSP funds may be available to Atlanta and Fulton County. All program income generated will recycle into the program to create additional units until July 2013.

50 to produce housing for those at 50% of AMI and below. City of Atlanta will seek additional NSP funds from the Georgia Department of Community Affairs. Up to $7.

13 City of Atlanta NSP Timeline Public Notice Advertised...Nov 1, 2008 Departmental Information Meeting..Nov 10, 2008 Public Hearing Meeting.. Nov 12,2008 Seek City Council Approval..Nov 17,2008 NSP Amendment Submitted to HUD Nov 26, 2008 Request for Grantee Proposal...Dec 2008 Jan 2009 Anticipated NSP Award.. Jan/Feb 2009 Obligation of NSP Funds...July 2010 NSP Program Ends....July 2013

. Nov 12,2008 Seek City Council Approval.

14 Contact Information City of Atlanta s Department of Planning and Community Development Evelyn Nu Man, Director City of Atlanta Department of Planning and Community Development Bureau of Housing 68 Mitchell Street Suite 1200 Atlanta, Georgia enuman@atlantaga.gov

aspx Evelyn Nu Man, Director City of Atlanta Department of Planning and Community

The Neighborhood Stabilization Program

The Neighborhood Stabilization Program The Neighborhood Stabilization Program Timothy C. Raffa, Esquire Weissman, Nowack, Curry & Wilco, P.C. timr@wncwlaw.com 404-926-4667 Fax 404-926-4867 www.wncwlaw.com