Laurel Hart

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Laurel Hart Director Office of Affordable
Housing Georgia Department of Community Affairs
Todays Challenges and Tomorrow's Opportunities
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DCA Initiatives

• Accept the challenges so that you can feel the
  exhilaration of victory.
• -- George S. Patton
• Laurel L. Hart
• Director
• Office of Affordable Housing
• Georgia DCA
• 404-679-0580
• lhart_at_dca.state.ga.us

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RECESSION LINGO

• SHOVEL READY
• BAILOUT
• STIMULUS
• AMERICAN MADE
• TARP
• HERA
• ECONOMIC RECOVERY ACT

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RESOURCES

• CDBG
• HOME PARTNERSHIP
• NEIGHBORHOOD STABILIZATION
• CHIPS
• GEORGIA DREAM
• LOW INCOME HOUSING TAX CREDITS
• STATE HOUSING TRUST FUND

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CDBG

• Eligible activities include
• housing improvement projects,
• public facilities such as water and sewer lines,
• buildings such as local health center
• economic development projects.
• All projects must substantially benefit low and
  moderate income persons.
• The total funding level
• 43 million with approximately 36 million
  available for the annual competition.

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HOME PARTNERSHIP PROGRAM

• MULTIFAMILY REHAB/NEW CONSTRUCTION
• GEORGIA DREAM DOWNPAYMENT ASSISTANCE
• PERMANENT SUPPORTIVE HOUSING

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Neighborhood Stabilization

• The Housing and Economic Recovery Act of 2008
• FOCUSED ON AREAS OF GREATEST NEED
• FUNDED UNDER THE CDBG
• ENTITLEMENTS/DEVELOPERS
• BROAD RANGE OF USES
• MAXIMUM DEFERENCE

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NSP Purpose

• Purpose NSP is about stabilizing neighborhoods
  which have deteriorated as a result of the
  current economic crises

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NSP Targeting

• 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 or unit of
  general local government as likely to face a
  significant rise in the rate of home foreclosures.

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GOOD NEWS
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BAD NEWS

• LOTS OF STRINGS
• COMPLEX ELIGIBLE USES
• FEDERAL REQUIREMENTS
• STRICT OVERSIGHT
• RISK IF NOT USED CORRECTLY

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PENDING DCA APPLICATIONGENERAL POOL

• 54 MILLION
• Coweta County / City of Newnan 2,124,021
• Fayette County 1,178,544
• Henry County 6,251,265
• Bibb County 4,151,543

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FLEX POOL

• 19 MILLION
• APPLICATIONS OUT THIS WEEK

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Implementing NSP

• Target areas which are destabilized or at risk of
  destabilization from vacant and foreclosed
  properties.
• Utilized NSP in ways which reflect individual
  markets in each neighborhood.
• Sustainable neighborhood stabilization should
  include strategies which combine NSP funds with
  other available resources.
• Different strategies are necessary depending upon
  the needs of the individual targeted area.

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Developing a Strategy

• Acquire property
• Rehab or demolish
• Hold or reuse properties
• Sell or rent properties

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Meeting the 50

• The requirement applies to each grant, not to the
  NSP program as a whole, nor each project or
  activity, nor each subrecipient.
• Compliance based on dollars, not number of units
• Principal way to comply will be through rental
  housing
• New construction or conversion
• Acquisition
• Rehabilitation

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Implementing 50 AMI

• Calculating AMI
• Realistic assessment of costs of Homeownership
• Poor credit history of 50 AMI
• Structuring the deal
• Increased homeownership costs

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Leveraging DCA Resources

• Tax Credits
• Georgia Dream Programs
• Downpayment Assistance
• PBRA
• HUD Programs
• USDA 538
• FHA
• AHP

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Targeting 50 AMI

• Elderly
• Special Needs
• Rental

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Barriers to Implementation

• Short time frame for both planning and
  implementation
• Limited capacity to manage process
• Bureaucratic barriers
• Marketing properties

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Importance of utilizing existing programs

• Habitat for Humanity
• Tax Credit Program
• Professional Non profits
• Using it as a supplement to increase
  sustainability of revitalizaiton areas

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The American Recovery and Investment Act

• Funds are distributed whenever possible through
  existing formulas and programs that have proven
  track records and accountability measures already
  in place.
• Bill provides for expedited but effective
  obligation of funds so that dollars are invested
  in the economy quickly

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The American Recovery and Investment Act

• INFRASTRUCTURE
• EDUCATION
• SOCIAL PROGRAMS
• HOME PARTNERSHIP
• HOMELESSNESS
• NSP
• SHOVEL READY