Document Augustaga_doc_94c69e8582

HERA – NEIGHBORHOOD STABILIZATION PROGRAM (NSP GRANT SUBMISSION& CHECKLIST) REVISED SUBMITTED BY: AUGUSTA – RICHMOND COUNTY HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT CHESTER A. WHEELER, III 925 LANEY WALKER BLVD, (2 ND FLOOR) AUGUSTA, GA 30901 (706) 821-1797 (OFFICE) (706) 821-1784 (FAX) WWW.AUGUSTAGA.GOV ---PAGE BREAK--- 2 I P a g e THE NSP SUBSTANTIAL AMENDMENT Jurisdiction(s): Augusta-Richmond County Jurisdiction Web Address: www.augustaga.gov NSP Contact Person: Hawthorne Welcher, Jr. - Assistant Director - Housing Address: 925 Laney Walker Blvd Telephone: (706) 821-1797 Fax: (706) 821-1784 Email: hwelcher @augustaga.gov A. AREAS OF GREATEST NEED Response: The Laney Walker and Bethlehem neighborhood in the City of Augusta has experienced a particularly high number of foreclosures, and an even higher number of vacant and abandoned properties. The results are due to the actions of investors who have purchased properties in these aging neighborhoods, and withdrew the equity out of the properties through subprime loans before abandonment. The analysis used to determine our Areas of Greatest Need is based on HUD’s Risk and Abandonment Matrix, demographic data, and a recent windshield survey conducted in the first quarter of 2008. This data has been mapped on the basis of census tracts, block groups, and zip codes. Demographic Characteristics The City of Augusta’s Laney Walker and Bethlehem neighborhoods has over 800 vacant and abandoned housing units that are in severe stages of disrepair and are located in the high-risk census track areas according to the 2000 census data (See Table 1 below). These Census Tracts and Block Groups represent a large segment of the City’s ―Area of Greatest Need‖ on the basis of the HUD foreclosure and abandonment risk score ranging from 7 thru 10. Map shown on page 3, illustrates the Census Tracts and Blocks Groups within Augusta with a Risk Score or 10. High Risk Census Tract Matrix Census Tract Block Group(s) 000700 1,2,3 000900 1,2,3,4 001400 1,2,3,4 001500 1,2,3 010300 1,2,3,4,5 010400 1,2,3,4,5,6,7 010504 1,2 010505 1,2,3 010511 1,2 010703 1 ---PAGE BREAK--- 3 I P a g e Map 1: Of the 2,775 housing units in the Laney Walker Neighborhood, 430 of them were vacant in 1990. This represented over 15% of the total housing units. (See Chart Below). By the year 2000, the number of vacant and abandoned units increased to 437. However, this number of vacant and abandoned houses increased to 507 by the year 2007, representing 22.4% of the total housing units. ---PAGE BREAK--- 4 I P a g e Of the 1,922 housing units in the Bethlehem Neighborhood, 335 of them were vacant and abandoned in 1990. This represented 17.4% of the total housing units. (See Chart Below) By the year 2000, the number of vacant units decreased because of the extensive list of houses due to demolition. However by 2007 of the remaining 1,465 housing units in the Bethlehem neighborhood 323 were vacant and abandoned representing 22% of the total housing units. The highest areas of concentration of vacant and abandoned housing are illustrated on Map 5, shown below. ---PAGE BREAK--- 5 I P a g e Map 5: The high concentration of vacant and abandoned properties have been a destabilizing factor in the Laney Walker and Bethlehem neighborhoods in Augusta for a number of years. The more recent increase in foreclosed homes occurring in the same census tracks and block groups represents part of the City’s Area of greatest Need based on HUD’s abandonment risk score matrix. The area represented in Map #5 above, not only has the City highest concentration of vacant and abandoned property it also has an abandonment risk score of 10. ---PAGE BREAK--- 6 I P a g e Sub Prime Lending Augusta has a very high sub-prime lending rate for a city of its size. This data is supported by the high percent of first mortgages originated for owner-occupied single- family homes that were subprime. Research has shown that subprime lending can result in delinquency and foreclosure rates of up to 10 times the rates associated with prime lending. It is our concern that we will see an increase in foreclosures as interest rates are adjusted. The City of Augusta utilized Home Mortgage Disclosure Act (HMDA) data provided by the United States Department of Housing and Urban Development (HUD) to determine the areas that contained the highest percentage of homes financed by a subprime mortgage loan. For the purposes of meeting §2301(c)(2), the census tracts with the highest incidence of High Cost Loan Rate in excess of 50% (as highlighted on Map 1, page 3 ) will be targeted for the largest percentage of program resources. Areas at Risk The identification of the areas of greatest needs was greatly enhanced by the use of information prepared by HUD that scored at risk census tracts and block group information. For the purposes of meeting §2301(c) the census tracts with the highest foreclosure abandonment risk scores will be targeted for the largest percentage of program resources. Map 1 on page 3, identified the census tract and block groups with a risk score of 10, and Maps, and #4 on pages 6, 7 and 8, indicates the same census tracts and block groups with a risk score of 10, but also identifies zip codes located within the high risk area with the highest concentrations of pre-foreclosed and foreclosed properties as of January 2009. ---PAGE BREAK--- 7 I P a g e Map 2: Map 2 Illustrates concentrations of foreclosures and pre-foreclosures properties located within five targeted zip codes (30901, 30904, 30906, 30909 and 30815). This map also includes Census Tract and Block Group designations that were used to determine HUD foreclosure and abandonment risk score. The score is based on foreclosure filings, foreclosure listings, high-cost sub- prime loan rate, and predicted foreclosure rates. High risk scores of 7 thru 10 were used to determine the City’s Areas of Greatest. Augusta High Risk Score. Based on information from HUD within the Census Tract and Block Groups outlined in Map had a Risk Score of “10”. ---PAGE BREAK--- 8 I P a g e Map 3: Map #3 Illustrates how the High Risk Area relates within the targeted zip codes (30901, 30904, 30906, 30909 and 30815) within High Risk Census Tracts and Block Groups. The High Risk Area is quite spread out but does not cover the entire Augusta area. The Census Block and Census Tract define the City’s Areas of High Risk and Greatest Need. ---PAGE BREAK--- 9 I P a g e Map 4: Map #4 Illustrates the entire Augusta area within targeted zip codes (30901, 30904, 30906, 30909 and 30815) with existing foreclosures and pre-foreclosures within Census Tracts and Block Groups Through our process of analysis and mapping we have identified the areas of greatest need and have established a foundation for developing a strategic approach to stabilizing neighborhoods within the City of Augusta that are most at risk and leading candidates for Neighborhood Stabilization Program intervention. Understanding the housing market will play a major role in creating the conditions for a successful recovery of destabilized neighborhoods. It will also be an important tool on how to think strategically in developing approaches to bring about neighborhood recovery. Understanding market conditions will, help set the framework for making rational decisions about which properties to acquire, which to rehab, demolish, and most importantly how to market the homes to new homeowners or renters ---PAGE BREAK--- 10 I P a g e B. DISTRIBUTION AND USES OF FUNDS Response: The requirements of Section 2301(c)(2) shall be met through the distribution and use of NSP funds for the areas of greatest need as defined within Section A above. Furthermore, the City of Augusta anticipates expending the U.S. Department of Housing and Urban Development’s (HUD) resources as follows: Activity Description 50% and # of 51-120% # of Below Units Units Total Administration - - - - $247,306.40 Financing Mechanism - - $200,000 10 $200,000.00 Purchase & Rehabilitation $681,266 12 - - $618,216.00 Land Banking - - $400,000 8 $400,000.00 Redevelopment - - $1,007.491.60 13 $1,007,491.60 TOTAL $681,266 $1,607,491.60 $2,473,014.00 The City of Augusta plans to utilize other funding sources including, but not limited to: federal, state, and local funding in the targeted areas to maximize the impact of the Neighborhood Stabilization Program. Through the various combined activities proposed, it is anticipated that the targeted areas will be impacted in many different was that will ultimately stabilize the community through the reduction of vacant or abandoned units. Many areas of expected impact are:  Decrease the deterioration of targeted neighborhoods;  Decrease of crime in targeted neighborhoods;  Increase in property values for targeted neighborhoods; and  Stabilize the tax base in the targeted neighborhoods. Furthermore, the Augusta Housing and Community Development Department is truly acceptant of these Neighborhood Stabilization Funds in a time that our nation is facing the greatest foreclosure crisis since the Great Depression. Because of this funding, we are truly committed to providing foreclosure stability, relief, and affordable revitalization efforts to the areas of Augusta-Richmond County that display the greatest percentage of home foreclosures, with the highest percentage of homes financed by a subprime mortgage related loan, and that have been identified as likely to face a significant rise in the rate of home foreclosures. To date, the local foreclosure rate isn't as severe as the national rate, which rose 75 percent last year, but based on statistical data compiled from the Augusta-Richmond County NSP Needs Assessment, formulated by Western Economic Services, LLC, we expect the numbers to rise as Augusta catches up with the trend. AHCDD has devised a five point ACTION PLAN utilizing the Neighborhood Stabilization Funds in the Augusta-Richmond County. This ACTION PLAN can be viewed as being diverse in scope, but collective in nature. ---PAGE BREAK--- 11 I P a g e Augusta-Richmond County was awarded a total of $2,473,064 in NSP Funds due to a local foreclosure rate of 6.8% (2nd highest in the state) and being seen as an area with a HIGH abandonment risk. Furthermore, compared to the state foreclosure rate of 5.2%, we are greatly in a state of emergency. The ACTION PLAN was purposely devised to promote affordability for persons whether very low, low to moderate, or low, moderate and middle income. Therefore, please find below a synopsis of how our USES OF FUNDS in South Augusta most notably 30815 and the 30906 zip codes will create sustainability and renew hope and homeownership simultaneously! FUNDING USE ADMINISTRATIVE ($247,306.40) AHCDD will utilize its entire ten percent (10%) administrative allocation to provide the following: SALARIES - temp/permanent job positions for three people. Seen as follows:  HERA Manager - Primarily responsible for the administration and management of the Housing and Economic Recovery Act (HERA) program. Works with agency, CHDOS, governmental agencies, etc. to stabilize neighborhoods and communities impacted by foreclosures.  Administrative Assistant III - Provides Neighborhood Stabilization Program administrative, secretarial and clerical support within the guidelines of supervisory instructions, county and departmental regulations, ordinances, and policies and procedures.  Housing Inspector I - Conducts on-site inspections of residential and commercial properties within the guidelines of local, state, and federal regulations. Determines what repairs to the property are needed and prepares work write-ups and specifications to be used in bidding and construction. Reports to the HERA Manager or other designated personnel and works with homeowners, contractors, engineers, fire officials, attorneys, zoning officials, insurance adjuster’s architects, and the public to ensure quality and safety in construction. The Housing Inspector I is primarily responsible for all duties and responsibilities associated with the Housing and Economic Recovery Act (HERA). TRAVEL – reimbursement for trainings previously attended (below) and future trainings:  HERA – NSP Training (Washington, D.C.)  HERA – NSP Training (Atlanta, GA)  HERA – NSP Training (Orlando, FL)  Future HERA Trainings  Future Developer Trainings EQUIPMENT – necessary to create a conducive working environment for new staff  Computers, Monitors and Setup (3 sets total)  Desk Phones (3 total)  Desk and Chair (2 sets total) ---PAGE BREAK--- 12 I P a g e  Cell Phones (2 total – HERA Manager and Inspector) SUPPLIES – necessary to create a conducive working environment for new staff  Office supplies (pens, highlighters, folders, file cabinet(s), etc.) OTHER-MISCELLANEOUS  Mileage Reimbursement  Contingency FUNDING USE SOFT SECOND MORTGAGES ($200,000.00) AHCDD will reward eligible potential homeowners (household income does not exceed 120% of AMI) whom have worked to obtain the financial commitment from a local financial institution, but still have a financial gap to make homeownership a reality. This financing mechanism coupled with additional soft funding (DCA, Federal Home Loan Bank, etc.), or as a stand- alone will go to fill the financial gap if necessary, and as equally as important, will serve to buy down the sales price of the home, thus creating affordability for the qualified buyer. This second mortgage ($20,000 – maximum) will be provided to the homeowner at 0% interest using the minimum affordability period of the federal HOME Investment Partnership Program, to include:  24 CFR 92.252 – Periods of Affordability (listed below); o Up to $15,000 = 5 Years o $15,000 - $40,000 = 10 Years o Over $40,000 = 15 Years o New Construction 20 Years As it relates to homeownership activities, the affordability mechanism used will clearly state that the Housing Developer on any particular project, must sell an acquired home to an eligible homeowner as an affordable unit within twelve (12) months. The City of Augusta will also ensure long term affordability through the use of mortgages, liens, and promissory notes for homeownership type activities. Also, it is important to notate that if the resale of the property is completed prior to the end of the affordability period the principal amount of the loan is immediately due and payable to the City of Augusta. Recaptured funds will be returned to the NSP Trust as ―program income‖ and will be used for additional NSP related activities in accordance with the NSP Program as agreed upon by the Director, and Assistant Director-Housing. Likewise, if an owner of a single family unit ceases to occupy the property as their primary residence, or if the home is rented, sold, or title is transferred before the affordability period expires, the funds provided by the City of Augusta will be subject to recapture immediately. ---PAGE BREAK--- 13 I P a g e Furthermore, the City of Augusta’s Housing and Community Development’s – Housing/HOME Departmental Sector will monitor homeownership units for compliance with the terms of the recorded mortgage or other security mechanism for the entire affordability period. FUNDING USE RENTAL HOUSING ($618,266.00) AHCDD will meet its 25% set aside obligation by providing affordable rental housing to very low income persons (50% and below the AMI). We seek to obtain interest from Housing Developer’s (individual nonprofits/public agencies, for profits, public/private and public/public partnerships) whose focus is providing targeted improvement to the area of greatest need. The funding provided for each project can be used to purchase (all/any properties purchased, are to be purchased at a fifteen percent (15%) discount price below the appraised and/or market value and rehabilitate (see NOTATION #1 below) abandoned and/or foreclosed upon homes in the targeted area of greatest need. All Housing Developer’s will be given a period of 60 days to rehabilitate a single-family dwelling and up to 210 days (will vary) for the rehabilitation of a multi-family dwelling, depending on the total number of units. Additionally, the Neighborhood Stabilization Program fund will fund no more than seventy-five percent (75%) of the total development costs of a single project, up to $51,522.17 per project at 0% interest using the minimum affordability period of the federal HOME Investment Partnership Program, to include:  24 CFR 92.252 – Qualification as affordable housing: Rental,  24 CFR 92.252 – Rent Limitation;  24 CFR 92.252 – Initial Rent Schedule and Utility Allowance;  24 CFR 92.252 – Periods of Affordability (listed below); o Up to $15,000 = 5 Years o $15,000 - $40,000 = 10 Years o Over $40,000 = 15 Years o New Construction 20 Years  24 CFR 92.252 – Subsequent Rents during the Affordability Period;  24 CFR 92.254 – Qualification as Affordable Housing: Homeownership The City of Augusta will also ensure long term affordability through the use of mortgages, land use restrictions, and promissory notes for multi-family activities. If a home is rented, sold, or title is transferred prior to the end of the affordability period, the principal amount of the loan is immediately due and payable to the City of Augusta. Recaptured funds will be returned to the NSP Trust as ―program income‖ and be used for additional NSP related activities in accordance with the NSP Program and as agreed upon by the Director, and Assistant Director-Housing. The City of Augusta’s Housing and Community Development’s – Housing/HOME Departmental Sector will monitor the multifamily rental developments annually during ---PAGE BREAK--- 14 I P a g e the affordability period to ensure that the specified units continue to maintain tenant affordability, tenant income eligibility and that the property(s) continue to meet the MINIMUM PROPERTY STANDARDS established by the U.S. Department of Housing and Urban Development (HUD) for decent, safe, and sanitary conditions. As previously stated, the maximum amount of NSP funds to be committed to any one project is $51,522.17, which will allow the NSP fund to subsidize approximately twelve (12) single family rental units for persons/families considered very low income on average. Because up to 75% of the total development costs is being put into each project, the developer will have minimal debt service, thus allowing for each rent to be truly affordable and in some cases massaged instead of being mandated. NOTATION ACCEPTABLE HOUSING REHABILITATION STANDARDS The specific Housing Rehabilitation Standards that will be applied to NSP rehabilitation, is the same that is applied via our current Emergency and Owner Occupied Rehabilitation Programs respectively. Housing that will be assisted with NSP funds, as a minimum, must meet the MINIMUM PROPERTY STANDARDS established by the U.S. Department of Housing and Urban Development (HUD) for decent, safe, and sanitary conditions. These MINIMUM PROPERTY STANDARDS are outlined in 24 CFR 200.925 and 200.926. In addition, housing that is newly constructed or substantially rehabilitated with NSP funds, must meet the Council of American Building Officials (CABO) one or two family building code, as adopted by Augusta-Richmond County, Augusta Housing and Community Development Department rehabilitation standards, and Augusta zoning ordinances. MINIMUM PROPERTY STANDARDS address these major areas: the site; the building exterior; the building systems; the dwelling units; the commons areas; and health and safety considerations. See Complete Housing Rehabilitation Standards Summary under G3 Performance Measures – pg. and #11 Specific Activity Requirements – pg. FUNDING USE LAND BANK ($400,000.00) AHCDD will utilize our Augusta-Georgia Land Bank Authority (AGLBA) to acquire abandoned or foreclosed upon properties that have been identified as potential redevelopment properties before a developer has been chosen. AHCDD will utilize two Property Area Tracking Sheets (see Attachment that are different in essence but similar in scope. Primary Project Area Spreadsheet will provide a weekly status update to also include the next step and estimated completion date as two key components of its project area breakdown. Likewise the Preliminary Property Survey Spreadsheet will track site control issues (ex. Liens), if any, for each property we have identified as key for our developmental success. The AGLBA will also maintain, assemble, facilitate redevelopment of, market, and dispose of the land banked properties in accordance with relationships (public/private and/or public/public) approved of by the AHCDD. In no case will the property be held in excess of ten (10) years without obligating it to an eligible NSP use. Furthermore, we ---PAGE BREAK--- 15 I P a g e seek to dispose of these acquired properties to nonprofits/public agencies/for profits after a strategic developmental course of direction has been agreed upon to redevelop, rehabilitate, market, and sell to a qualified homeowner. The Augusta Georgia Land Bank Authority’s staff, will comply with the HERA regulations to be sure that all/any properties purchased, are purchased at a fifteen percent (15%) discount below the appraised and/or market value. Additionally, our strategy shall be to work with Housing Developers to purchase properties that are zoned appropriately and have suitable infrastructure. However, it is important to note that if a property does not meet the listed criteria but is located adjacent to a property that does meet the criteria it may be added to the land bank. Also, all contractual agreements will outline the services being procured, maximum amount of indebtedness, regulatory requirements, and performance schedules and will allow for the de-obligation of the contract amount in the event the housing developer fails to follow contractual provisions. All Housing Developers will be monitored quarterly for compliance using the equivalent to our HOME Tracking Log of which will be renamed the NSP Tracking Log Form. Finally, upon sale or transfer of the property from the AGLBA, recaptured funds will be returned to the NSP Trust as ―program income‖ and be used for additional activities in accordance with the NSP Program and as approved by the Director and Assistant Director – Housing. Through research, we anticipate the average cost of each dwelling shall be $50,000, thus enabling our department to acquire approximately eighteen (18) single-family dwellings in the South Augusta area (area of highest concentration), most notably the 30815 and 30906 zip codes for persons low, moderate and middle income (LMMI). Acquisition funding committed under this action plan provided to each applicant (nonprofit/public agency/for profit) shall be given at 0% interest using the minimum affordability period of the federal HOME Investment Partnership Program, to include:  24 CFR 92.252 – Qualification as affordable housing: Rental,  24 CFR 92.252 – Rent Limitation;  24 CFR 92.252 – Initial Rent Schedule and Utility Allowance;  24 CFR 92.252 – Periods of Affordability (listed below); o Up to $15,000 = 5 Years o $15,000 - $40,000 = 10 Years o Over $40,000 = 15 Years o New Construction 20 Years  24 CFR 92.252 – Subsequent Rents during the Affordability Period;  24 CFR 92.254 – Qualification as Affordable Housing: Homeownership The City of Augusta will also ensure long term affordability through the use of mortgages, land use restrictions, and promissory notes for land banking activities. ---PAGE BREAK--- 16 I P a g e It is also important to notate that when NSP funds are used to finance a homebuyer program, properties must remain affordable in accordance with the ―affordability – deferred forgivable‖ guidelines set forth for the applicable number of years from the date of initial purchase. If the resale of the property is completed prior to the end of the affordability period, the principal amount of the loan is immediately due and payable to the City of Augusta. Recaptured funds will be returned to the NSP Trust as ―program income‖ and be used for additional NSP related activities in accordance with the NSP Program and as agreed upon by the Director, Assistant Director-Housing and the NSP Manager. If an owner of a single family unit ceases to occupy the property as their primary residence, or if the home is rented, sold, or title is transferred before the affordability period expires, the funds provided by the City of Augusta will be subject to recapture immediately. The City of Augusta’s Housing and Community Development’s – Housing/HOME Departmental Sector will monitor the multifamily rental developments annually during the affordability period to ensure that the specified units continue to maintain tenant affordability, tenant income eligibility and that the property(s) continue to meet the minimum local housing property quality standards. Also, this same department will monitor homeownership units for compliance with the terms of the recorded mortgage or other security mechanism for the entire affordability period. FUNDING USE REDEVELOPMENT FUNDS ($1,007,491.60) AHCDD will work with nonprofits/public agencies/for profits to leverage these NSP funds with public/private financing for homeownership and rental housing or single and multi-family residential housing. Eligible activities include: acquisition (all/any properties purchased, are to be purchased at a fifteen percent (15%) discount price below the appraised and/or market value), construction or rehabilitation (see NOTATION #2 below) and project related soft costs. Additionally, the Neighborhood Stabilization Program fund will fund no more than fifty percent (50%) of the total development costs of a single project, up to $75,000.00 per project at 0% interest, using the minimum affordability period of the federal HOME Investment Partnership Program, to include:  24 CFR 92.252 – Qualification as affordable housing: Rental,  24 CFR 92.252 – Rent Limitation;  24 CFR 92.252 – Initial Rent Schedule and Utility Allowance;  24 CFR 92.252 – Periods of Affordability (listed below); o Up to $15,000 = 5 Years o $15,000 - $40,000 = 10 Years o Over $40,000 = 15 Years o New Construction 20 Years  24 CFR 92.252 – Subsequent Rents during the Affordability Period;  24 CFR 92.254 – Qualification as Affordable Housing: Homeownership ---PAGE BREAK--- 17 I P a g e As it relates to homeownership, the affordability mechanism used will clearly state that the Housing Developer on any particular project, must sell an acquired home to an eligible homeowner as an affordable unit within twelve (12) months. If the property is not sold within 12 months of availability then the property may be converted into rental unit(s). The City of Augusta will also ensure long term affordability through the use of mortgages, liens, and promissory notes for homeownership type activities as well as mortgages, land use restrictions, and promissory notes for multi-family and land banking activities. It is also important to notate that when NSP funds are used to finance a homebuyer program, properties must remain affordable in accordance with the ―affordability – deferred forgivable‖ guidelines set forth below for the applicable number of years from the date of initial purchase. If the resale of the property is completed prior to the end of the affordability period, the principal amount of the loan is immediately due and payable to the City of Augusta. Recaptured funds will be returned to the NSP Trust as ―program income‖ and be used for additional NSP related activities in accordance with the NSP Program and as agreed upon by the Director, Assistant Director-Housing and the NSP Manager. If an owner of a single family unit ceases to occupy the property as their primary residence, or if the home is rented, sold, or title is transferred before the affordability period expires, the funds provided by the City of Augusta will be subject to recapture immediately. The City of Augusta’s Housing and Community Development’s – Housing/HOME Departmental Sector will monitor the multifamily rental developments annually during the affordability period to ensure that the specified units continue to maintain tenant affordability, tenant income eligibility and that the property(s) continue to meet the minimum local housing property quality standards. Also, this same department will monitor homeownership units for compliance with the terms of the recorded mortgage or other security mechanism for the entire affordability period. As it relates to homeownership, the affordability mechanism used will clearly state that the Housing Developer on any particular project, must sell an acquired home to an eligible homeowner as an affordable unit within twelve (12) months. If the property is not sold within 12 months of availability then the property may be converted into rental unit(s). NOTATION ACCEPTABLE HOUSING REHABILITATION STANDARDS The specific Housing Rehabilitation Standards that will be applied to NSP rehabilitation is the same that is applied via our current Emergency and Owner Occupied Rehabilitation Programs respectively. Housing that will be assisted with NSP funds, as a minimum, must meet the MINIMUM PROPERTY STANDARDS established by the U.S. Department of Housing and Urban Development (HUD) for decent, safe, and sanitary ---PAGE BREAK--- 18 I P a g e conditions. These MINIMUM PROPERTY STANDARDS are outlined in 24 CFR 200.925 and 200.926. In addition, housing that is newly constructed or substantially rehabilitated with NSP funds, must meet the Council of American Building Officials (CABO) one or two family building code, as adopted by Augusta-Richmond County, Augusta Housing and Community Development Department rehabilitation standards, and Augusta zoning ordinances. MINIMUM PROPERTY STANDARDS address these major areas: the site; the building exterior; the building systems; the dwelling units; the commons areas; and health and safety considerations. See Complete Housing Rehabilitation Standards Summary under G3 Performance Measures #11 Specific Activity Requirements) Finally, it should be noted that an analysis will be conducted on every transaction to insure that property is purchased at the aforementioned discount The discount, regardless of amount will be passed on to the purchaser of the property and reflected in their purchase price. All potential homebuyers will be required to complete 8 hours of homebuyer counseling from a selected HUD-approved certified counseling agency before obtaining a mortgage loan. C. DEFINITIONS AND DESCRIPTIONS Definition of “blighted structure” in context of state or local law. Response: The definition of a blighted structure in the Code of Augusta-Richmond County requires that an area is a slum and blighted area and that it is detrimental and a menace to the safety, health and welfare of the inhabitants and users thereof and of the locality at large, because of general dilapidation of structures, narrow sub-standard streets, inadequate community facilities, and the members of the governing body are fully aware of these facts and conditions. While each circumstance will present different factors to consider, staff will generally consider a structure as blighted if one of the following criteria is met: 1) The structure is open, cannot be secured against entry, and is unsafe or unfit for human occupancy; 2) The unsafe structure is secured against public entry, but it presents a threat to a neighboring property or public way (such as a road or sidewalk) because of a potential collapse or other threat; 3) The structure is determined to harbor rodents or other nuisances which may negatively impact a neighboring property; or 4) The unsafe structure is secured against entry and does not threaten a neighboring property or public way, but its present state of disrepair threatens the general welfare of the public by: reducing the real or perceived value of an adjacent property; presenting a visual blight due to collapse, fire damage, or other unrepaired damage; lying in a state of incomplete construction, resulting in a ---PAGE BREAK--- 19 I P a g e negative view of the surrounding properties; or other similar conditions. Definition of “affordable rents.” Response: Rental housing for which the tenant(s) is/are paying no more than 30 percent (front end ratio) of his or her income for gross housing rents/costs, including utilities. Describe how the grantee will ensure continued affordability for NSP assisted housing. Response: To ensure affordability for NSP assisted housing (rental housing), applicants (non-profits; Public Housing Authorities; and for profits) must ensure that one hundred percent (100%) of the Augusta-NSP units are income and rent restricted. Rents are limited based on beneficiary income, county and number of bedrooms in the unit as provided by the local Low HOME Investment Partnership rents. Beneficiaries must meet income limits for fifty percent (50%) of the area median income households. Applicants are to target the incomes to determine the initial rent structure and requirements for providing the financial projections for income and expenses. Furthermore, one hundred percent (100%) of the units, a part of the Rental Housing Program, must serve beneficiaries at or below fifty percent (50%) of area median income and will be subject to the low HOME rent limit restrictions. For special needs populations in which nonprofits are using deferred forgivable loans only, applicants must demonstrate that they are targeting beneficiaries with incomes below 50% of the area median income. The City of Augusta will also ensure long term affordability through the use of mortgages, liens, and promissory notes for homeownership type activities as well as mortgages, land use restrictions, and promissory notes for multi-family and land banking activities. It is also important to notate that when NSP funds are used to finance a homebuyer program, properties must remain affordable in accordance with the affordability guidelines set forth for the applicable number of years from the date of initial purchase. If the resale of the property is completed prior to the end of the affordability period, the principal amount of the loan is immediately due and payable to the City of Augusta. Recaptured funds will be returned to the NSP Trust as ―program income‖ and be used for additional NSP related activities in accordance with the NSP Program and as agreed upon by the Director, and Assistant Director-Housing. If an owner of a single family unit ceases to occupy the property as their primary residence, or if the home is rented, sold, or title is transferred before the affordability period expires, the funds provided by the City of Augusta will be subject to recapture immediately. ---PAGE BREAK--- 20 I P a g e The City of Augusta’s Housing and Community Development’s – Housing/HOME Departmental Sector will monitor the multifamily rental developments annually during the affordability period to ensure that the specified units continue to maintain tenant affordability, tenant income eligibility and that the property(s) continue to meet the minimum local housing property quality standards. Also, this same department will monitor homeownership units for compliance with the terms of the recorded mortgage or other security mechanism for the entire affordability period. The City of Augusta will use the minimum affordability period of the federal HOME Investment Partnership Program, to include:  24 CFR 92.252 – Qualification as affordable housing: Rental,  24 CFR 92.252 – Rent Limitation;  24 CFR 92.252 – Initial Rent Schedule and Utility Allowance;  24 CFR 92.252 – Periods of Affordability (listed below); o Up to $15,000 = 5 Years o $15,000 - $40,000 = 10 Years o Over $40,000 = 15 Years o New Construction 20 Years  24 CFR 92.252 – Subsequent Rents during the Affordability Period;  24 CFR 92.254 – Qualification as Affordable Housing: Homeownership As it relates to homeownership, the affordability mechanism used will clearly state that the Housing Developer on any particular project, must sell an acquired home to an eligible homeowner as an affordable unit within twelve (12) months. If the property is not sold within 12 months of availability then the property may be converted into rental unit(s). The intent of this Rental Housing Program is to provide heavy subsidy in an effort to minimize the projects debt service, thus make the rents truly affordable! Describe housing rehabilitation standards that will apply to NSP assisted activities. Response: Applicants must adhere to all written standards developed by the Augusta Housing and Community Development Department (AHCDD) and to all local standards in order to utilize NSP Funds for any activity. Those standards are:  All work performed, whether specified or not, shall be performed and completed in a manner supportable by the manufacturer’s specifications, standard construction practices, and/or recognized building codes;  All materials shall be new, in good condition, and of standard grade;  All Work performed shall be ―finished‖ work whether expressed or not; ---PAGE BREAK--- 21 I P a g e  The Applicant is required to provide a detailed work-write up from the contractor regarding rehabilitation. Accurate, detailed work write-ups must be provided for the work to be performed;  The Applicant must solicit and procure a licensed general contractor when applying for individual beneficiaries;  A physical on-site repair assessment must be performed prior to the submission of an application;  The Applicant must contact the Augusta-Richmond County code enforcement agency and have the agency’s building inspector review the work write-ups or plans and specifications prior to submission of the application to insure that the Applicant has met locality requirements.  The Applicant is required to provide a preliminary work-write up from the contractor regarding rehabilitation. Accurate, detailed work-write up must be provided for the work to be performed.  All work regarding handicapped accessibility must meet the requirements of Section 504.  All work must be in compliance with the International Code Series for residential, plumbing, mechanical, fuel gas, energy conservation, fire, and electrical does. In addition all work must meet any local code restrictions. Allocation Construction Costs HARD COSTS – actual construction:  Costs to meet AHCDD’s construction standards and local code construction standards;  General property improvements that are non-luxury improvements;  Repair/Replacement of major housing systems in danger of failure;  Improvements for handicapped personnel;  Essential improvements;  Electrical, plumbing, structural-related improvements Note: DEMOLITION – no funding has been placed in the budget for demolition purposes. AHCDD seeks to strategically work with reputable developer’s to acquire properties in thriving neighborhoods in which the structural integrity of the majority of the properties have not been compromised. If demolition is a part of any one particular project, NSP funding will not be used for this developmental activity. COVERSION As it relates to homeownership (Redevelopment Activity), the affordability mechanism used will clearly state that the Housing Developer on any particular project, must sell an acquired home to an eligible homeowner as an affordable unit within twelve (12) months. If the property is not sold within 12 months of availability then the property must be CONVERTED into rental unit(s). ---PAGE BREAK--- 22 I P a g e SOFT COSTS – necessary costs:  Building Inspection Fees;  Building Permit Fees;  Professional Fees to include related services to prepare work-write ups (services must be performed by a 3rd party);  Developer Fees (standard maximum of 16% for all RENTAL AND REDVELOPMENT projects) PROHIBITED COSTS –  Additions to an existing structure;  Administrative Costs D. LOW INCOME TARGETING Response: The Augusta Housing and Community Development Department (AHCDD) has budgeted twenty-five percent (25%) or $618,266.00 of its total funding appropriation to be used through a Rental Housing Program to purchase and redevelop abandoned or foreclosed upon homes or residential properties for housing individuals or families whose incomes don’t exceed 50% of the area median income ($54,300.00). Only one rental housing award will be committed to each project. Likewise, the Neighborhood Stabilization Program fund will fund no more than seventy-five percent (75%) of the total development costs of a single project, up to a maximum of $51,522.17 guided by the HOME Investment Partnership program’s minimum affordability period as defined by 24 CFR 92.252 and 24 CFR 92.254 (See Section C above for the complete Ensuring Continued Affordability Breakdown). Additionally, the focus of the Rental Housing Program, for the very low income family, is to work with non-profits, public housing authorities, and/or for profits to serve as developer’s and property managers. However, the major focus is to provide heavy subsidy in an effort to minimize each project’s debt service, thus making the rents to be charged truly affordable for our targeted population. E. ACQUISITIONS & RELOCATION Response: The Augusta Housing and Community Development Department is budgeting $1,007,491.60 for Redevelopment to be committed to non-profits, private developers/for profits as leverage funding. Eligible activities of these funds include acquisition (all/any properties purchased, are to be purchased at a fifteen percent (15%) discount price below the appraised and/or market value), construction, rehabilitation, developer’s fee, and project related soft costs. The NSP Fund will fund no more than fifty percent (50%) of the total development costs of a single project, up to $75,000.00 per project guided by the HOME Investment Partnership program’s minimum affordability period as defined by 24 ---PAGE BREAK--- 23 I P a g e CFR 92.252 and 24 CFR 92.254 (See Section C above for the complete Ensuring Continued Affordability Breakdown). These funds shall be used for the redevelopment of abandoned/foreclosed upon structures to be sold to persons/families whose income does not exceed 120% of the Area Median Income. The buyer, whether a nonprofit entity, public agency, and/or for profit entity acting as a sub-recipient of NSP funds, must be dedicated to documenting that it paid less than what would be considered fair market value. While the majority of public acquisitions are a fair market value, Section 2301(d) 1 of the HERA Act specifies that: Any purchase of a foreclosed upon home or residential property under this section shall be at a discount from the current market appraised value of the home or property, taking into account its current condition, and such discount shall ensure that purchasers are paying below-market value for the home or property Furthermore, while utilizing these NSP funds strategically is of the utter most importance, we (AHCDD) do know that alone, the NSP funds will not be enough to achieve sustainable neighborhood stabilization. Therefore, to capitalize and provide the best leveraging mechanism, we will stress the importance to non-profits/public agencies/for profits of leveraging NSP funds with other funds from public and private sources to include Department of Community Affairs, HOME Investment Partnership, Housing Trust Fund, Community Development Block Grant, private funding and/or loan capital. It is a must that we give more credence to applications that involve partnerships geared at promoting targeting improvement to neighborhoods with a significant market weakness and that are currently severely distressed with a focus of eliminating blighted problem properties, and providing restoration through habitable, decent, safe, and sanitary affordable housing for rent and sell. We are ultimately pursuing public/private and/or public/public partnerships that promote leverage to our targeted area of greatest need (South Augusta – 30815 and 30906) where we truly believe we can achieve sustainable neighborhood stabilization. F. PUBLIC COMMENT Response: The Augusta Housing and Community Development’s NSP Substantial Amendment was published on our consolidated municipality’s website (www.augustaga.gov) on Friday, November 7th thru Friday, November 21st (15 calendar days). Furthermore, the Public Meeting was held on Tuesday, November 11th (6:00 pm) in the Commission Chambers (530 Greene Street, Augusta, GA 30901). Please find below direction as to where a summary of public comments received during the 15 day comment period and our public meeting can be found: ---PAGE BREAK--- 24 I P a g e PLEASE REVIEW ALL PUBLIC COMMENTS UNDER TAB 8 – AHCDD NSP PUBLICITY AND PUBLIC COMMENTS G1. NSP INFORMATION BY ACTIVITY (ACTIVITY Activity Name: HERA ACTIVITY NAME: ADMINISTRATION AND PLANNING COSTS AHCDD ACTIVITY NAME: ADMINISTRATION AND PLANNING COSTS Activity Type:  HERA 2008 §2301(c)(3) – Administration and Planning Costs  24 CFR 570.205 and 206 - General administration and Planning Activities  24 CFR 570.489(h) – Pre Award Costs National Objective: Not Applicable Activity Description: Not Applicable Location Description: All Administrative Activities will be carried out at the office of the Augusta Housing and Community Development, which is located at 925 Laney Walker Blvd (2nd floor), Augusta, GA 30901. Each staff person will be equipped with office space to include a computer, with access to a printer, copier, facsimile, etc. Additionally, the Housing Inspector I will be equipped with a digital camera for inspections which will occur in South Augusta (area of greatest need) most notably the 30815 and 30906 area codes. Performance Measures: N/A Total Budget: $247,306.40 – NSP Funds Note Non-Profits / Public Agencies / For Profits will be required to leverage NSP Funds with other funds from the public/private sector Responsible Organization: ---PAGE BREAK--- 25 I P a g e Augusta Housing and Community Development Department Administrator Contact: Hawthorne Welcher, Jr. – Assistant Director - Housing 925 Laney Walker Blvd (2nd Floor) Augusta, GA 30901 (706) 821-1797 (office) (706) 821-1784 (fax) Email: hwelcher @augustaga.gov Note: A HERA Manager will be hired to run the day to day operations; however Mr. Welcher will remain the administrator contact. Projected Start Date: September 29, 2008 (10) Projected End Date: February 15, 2013 (11) Specific Activity Requirements: Special Activity Requirements include:  N/A G2. NSP INFORMATION BY ACTIVITY (ACTIVITY Activity Name: HERA ACTIVITY NAME: FINANCING MECHANISMS AHCDD ACTIVITY NAME: SOFT SECOND MORTGAGES Activity Type:  HERA 2008 §2301(c) – Establish financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties, including such mechanisms as soft-seconds, loan loss reserves, and shared equity loans for low and moderate income homebuyers.  24 CFR 570.201(n) Direct Homeownership Assistance National Objective: To benefit Low, Moderate and Middle Income Household(s) (LMMH) under 24 CFR 570.208(a)(3) – Housing Activities ---PAGE BREAK--- 26 I P a g e To provide permanent affordable residential structures for persons/families whose income does not exceed 120% of the Area Median Income of $54,300.00 (Low, Moderate, and Middle Income – LMMI) Activity Description: Area of Greatest Need for Activity: See Area of Greatest Need Summary Above however most notably zip codes 30901, 30904, 30906, 30909 and 30815. Location Description: • Zip Code 30901 • Zip Code 30904 • Zip Code 30906 • Zip Code 30909 • Zip Code 30815 Performance Measures: Any contractual agreements will outline the services being procured, maximum amount of indebtedness, regulatory requirements, and performance schedules and will allow for the de-obligation of the contract amount in the event that the partner fails to follow the contractual provisions. All Housing Developer’s/Partners will be monitored quarterly for compliance. (Performance Measure Estimate) $20,000 (maximum subsidy amount per project) x 10 homeownership projects = $200,000.00 Uses: Financing Mechanism – persons at or below 120% of AMI Note: $20,000 is the maximum amount of subsidy that can be provided per project, however homeowner’s will receive the actual amount needed based on their mortgage loan amount (See Section C above for the complete Ensuring Continued Affordability Breakdown) . Total Budget: $200,000.00 – NSP Funds Note Non-Profits / Public Agencies / For Profits can leverage the NSP Funds with other financing mechanisms (Federal Home Loan Bank, Department of Community Affairs, HOME Investment Partnership, Seller concessions, etc.) or use as a stand- alone to provide direct subsidy/down payment/closing costs assistance to ---PAGE BREAK--- 27 I P a g e persons at or below 120% of the Area Median Income for the purpose of homeownership. Responsible Organization: Augusta Housing and Community Development Department Administrator Contact: Hawthorne Welcher, Jr. – Assistant Director - Housing 925 Laney Walker Blvd (2nd Floor) Augusta, GA 30901 (706) 821-1797 (office) (706) 821-1784 (fax) Email: hwelcher @augustaga.gov Note: A HERA Manager will be hired to run the day to day operations; however Mr. Welcher will remain the administrator contact. Projected Start Date: February 15, 2009 (10) Projected End Date: February 15, 2013 (11) Specific Activity Requirements: Special Activity Requirements include:  Funding will be provided in the form of a 0% interest using the minimum affordability period of the federal HOME Investment Partnership Program, to include 24 CFR 92.252 and 24 CFR 92.254 as defined above.  As it relates to homeownership, the affordability mechanism used will clearly state that the Housing Developer on any particular project, must sell an acquired home to an eligible homeowner as an affordable unit within twelve (12) months. If the property is not sold within 12 months of availability then the property may be converted into rental unit(s).  Secured by a mortgage and promissory note, that shall be due and payable should the property cease to be the primary resident of the borrower, or if the home is rented, sold, or title is transferred.  Funding may be used to reduce mortgage principal amounts, provide second mortgage and pay for the purchaser’s closing costs.  As long as the borrower/owner maintains his/her residence for the entire affordability period, the loan will remain deferred.  Any recaptured funds will be returned to the NSP Trust as “program income” and used for additional activities in accordance with our NSP Program. ---PAGE BREAK--- 28 I P a g e G3. NSP INFORMATION BY ACTIVITY (ACTIVITY Activity Name: HERA ACTIVITY NAME: PURCHASE AND REHABILITATION AHCDD ACTIVITY NAME: RENTAL HOUSING Activity Type:  HERA 2008 §2301(c)(3)(B) purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and properties;  24 CFR 570.201 Acquisition Disposition  24 CFR 570.202 - Eligible rehabilitation and preservation activities for homes and other residential properties. Note that rehabilitation may include counseling for those seeking to take part in the activity.  24 CFR 570.204 - Activities by Community Based Development Organizations National Objective: To benefit Low, Moderate and Middle Income Household(s) (LMMH) under 24 CFR 570.208(a)(3) – Housing Activities To provide affordable multi-family housing for persons/families whose income does not exceed 50% of the Area Median Income of $54,300.00 (Very Low Income – 25% Set Aside) Activity Description: Area of Greatest Need for Activity: See Area of Greatest Need Summary Above however most notably zip codes 30901, 30904, 30906, 30909 and 30815. Non-Profits / Public Agencies / For Profits will utilize the NSP funds as a leveraging tool to obtain gap financing from a financial institution at the best rate and term. The idea here is that the infusion of heavy subsidy into each project will greatly minimize each project’s debt service, thus making the rents to be charged truly affordable for our targeted population (persons/families at or below 50% of the Area Median Income). ---PAGE BREAK--- 29 I P a g e Location Description: • Zip Code 30901 • Zip Code 30904 • Zip Code 30906 • Zip Code 30909 • Zip Code 30815 Performance Measures: The specific Housing Rehabilitation Standards that will be applied to NSP rehabilitation, is the same that is applied via our current Emergency and Owner Occupied Rehabilitation Programs respectively. Housing that will be assisted with NSP funds, as a minimum, must meet the MINIMUM PROPERTY STANDARDS established by the U.S. Department of Housing and Urban Development (HUD) for decent, safe, and sanitary conditions. These MINIMUM PROPERTY STANDARDS are outlined in 24 CFR 200.925 and 200.926. In addition, housing that is newly constructed or substantially rehabilitated with NSP funds, must meet the Council of American Building Officials (CABO) one or two family building code, as adopted by Augusta-Richmond County, Augusta Housing and Community Development Department rehabilitation standards, and Augusta zoning ordinances. MINIMUM PROPERTY STANDARDS address these major areas: the site; the building exterior; the building systems; the dwelling units; the commons areas; and health and safety considerations. A. Site. The site components, such as fencing and retaining walls, grounds, lighting, mailboxes/project signs, parking lots/driveway, play areas and equipment, refuse disposal, roads, storm drainage and walkways must be free of health and safety hazards and be in good repair. The site must not be subject to material adverse conditions, such as abandoned vehicles, dangerous walks or steps, poor drainage, septic tank back-ups, sewer hazards, excess accumulations of trash, vermin or rodent infestation of fire hazards. B. Building Exterior. Each building on the site must be structurally sound, secure, habitable, and in good repair. Each building’s doors, fire escapes, foundations, lighting, roofs, walls, and windows, where applicable, must be free of health and safety hazards, operable, and in good repair. C. Building Systems. Each building’s domestic water, electrical system, elevators, emergency power, fire protection, HVAC, and sanitary system must be free of health and safety hazards, functionally adequate, operable, and in good repair. D. Dwelling Units. ---PAGE BREAK--- 30 I P a g e 1. Each dwelling unit within a building must be structurally sound, habitable, and in good repair. All areas and aspects of the dwelling unit (for example, the unit’s bathroom, call-for-aid (if applicable), ceiling doors, electrical systems, floors, hot water heater, HVAC (where individual units are provided), kitchen, lighting, outlets/switches, patio/porch/balcony, smoke detectors, stairs, walls, and windows) must be free of health and safety hazards, functionally adequate, operable, and in good repair. 2. Where applicable, the dwelling unit must have hot and cold running water, including an adequate source of potable water (note for example that single room occupancy units need not contain water facilities). 3. If the dwelling unit includes its own sanitary facility, it must be in proper operating condition, usable in privacy, and adequate for personal hygiene and the disposal of human waste. 4. The dwelling unit must include at least one battery-operated or hard wired smoke detector, in proper working conditions, on each level of the unit. E. Common Areas. The common areas must be structurally sound, secure, and functionally adequate for the purposes intended. The basement/garage/carport, restrooms, closets, utility, mechanical, community rooms, day care, halls/corridors, stairs, kitchens, laundry rooms, office, porch, patio, balcony, and trash collection areas, if applicable, must be free of health and safety hazards, operable, and in good repair. All common area ceilings, doors, floors, HVAC, lighting, outlets/switches, smoke detectors, stairs, walls, and windows, to the extent applicable, must be free of health and safety hazards, operable, and in good repair. These standards for common areas apply, to a varying extent, to all HUD/NSP housing, but will be particularly relevant to congregate housing, independent group homes/residences, and single room occupancy units, in which the individual dwelling units (sleeping areas) do not contain kitchen and/or bathroom facilities. F. Health and Safety Concerns. All areas and components of the housing must be free of health and safety hazards. These areas include, but are not limited to , air quality, electrical hazards, elevator, emergency/fire exits, flammable materials, garbage and debris, handrail hazards, infestation, and lead-based paint. For example, the buildings must have fire exits that are not blocked and have handrails that are undamaged and have no other observable deficiencies. The housing must have no evidence of infestation by rats, mice, or other vermin, or of garbage and debris. The housing must have no evidence of electrical hazards, natural hazards, or fire hazards. The dwelling units and common areas must have proper ventilation and be free of mold, ---PAGE BREAK--- 31 I P a g e odor (ex. Propane, natural gas, methane gas), or other observable deficiencies. The housing must comply with all requirements related to the evaluation and reductions of lead-based paint hazards and have available proper certifications of such (see 24 CFR part 35). Note: The construction standards applied above do not supersede or preempt State and local codes for building and maintenance with which HUD/NSP housing must comply. HUD/NSP housing must continue to adhere to these codes. The City of Augusta will ensure that all housing assisted with HUD/NSP funds within Augusta-Richmond County will meet MINIMUM PROPERTY STANDARDS established by HUD. The following below states performance and acceptability criteria for what the Augusta Housing and Community Development Department considers these key aspects of housing quality: 1. Sanitary facilities; 2. Food preparation and refuse disposal; 3. Space and security; 4. Thermal environment; 5. Illumination and electricity; 6. Structure and materials; 7. Interior air quality; 8. Water supply; 9. Lead-based paint; 10. Access; 11. Site and neighborhood; 12. Sanitary conditions; and 13. Smoke and carbon monoxide detectors. (Performance Measure Estimate) $51,522.17 (maximum subsidy amount per project) x 12 rental projects = $618,266.00 Uses: Acquisition and Rehabilitation – persons at or below 50% of AMI Note $51,522.17 is the maximum amount of subsidy that can be provided per project. Note The NSP Fund (Rental Housing Program) will fund no more than 75% of the Total Development Costs for any single project. Total Budget: $618,266.00 – NSP Funds (25% SET ASIDE) ---PAGE BREAK--- 32 I P a g e Note Maximum amount of NSP funds to be committed to any one project is $51,522.17, which will allow the NSP fund to subsidize approximately twelve (12) single family rental units for persons/families considered very low income. Responsible Organization: Augusta Housing and Community Development Department Administrator Contact: Hawthorne Welcher, Jr. – Assistant Director - Housing 925 Laney Walker Blvd (2nd Floor) Augusta, GA 30901 (706) 821-1797 (office) (706) 821-1784 (fax) Email: hwelcher @augustaga.gov Note: A HERA Manager will be hired to run the day to day operations; however Mr. Welcher will remain the administrator contact. Projected Start Date: February 15, 2009 (10) Projected End Date: February 15, 2013 (11) Specific Activity Requirements: Special Activity Requirements include:  The Augusta Georgia Land Bank Authority’s staff, will comply with the HERA regulations to be sure that all/any properties purchased, are purchased at least at a fifteen percent (15%) discount below the appraised and/or market value (acquisition activity);  Funding will be provided at 0% interest using the minimum affordability period of the federal HOME Investment Partnership Program, to include 24 CFR 92.252 and 24 CFR 92.254 as defined above. (See Section C for the Ensuring Affordability Period Breakdown)  The developer is responsible for providing the unit to a person/family at or below 50% of the Area Median Income for the entire period of affordability; Beneficiaries: Renters;  Providing 75% of the Total Development Costs to a developer for rental projects, allows for a heavy non-repayable loan to buy down the cost of banking funds needed to make the deal work, thus allowing for affordable rents to be created for persons/families 50% and below the area median income (financing related activity) G4. NSP INFORMATION BY ACTIVITY (ACTIVITY ---PAGE BREAK--- 33 I P a g e Activity Name: HERA ACTIVITY NAME: LAND BANKING AHCDD ACTIVITY NAME: LAND BANKING Activity Type:  HERA §2301(c)(3)(C) - Establish land banks for homes that have been foreclosed upon  24 CFR 570.201: o Acquisition o Disposition (maintenance included) National Objective: To benefit Low, Moderate and Middle Income Household(s) (LMMH) under 24 CFR 570.208(a)(3) – Housing Activities To provide permanent affordable residential structures for persons/families whose income does not exceed 120% of the Area Median Income of $54,300.00 (Low, Moderate, and Middle Income – LMMI) Activity Description: Area of Greatest Need for Activity: See Area of Greatest Need Summary Above however most notably zip codes 30901, 30904, 30906, 30909 and 30815. The Augusta Housing and Community Development Department will purchase properties that have been abandoned and foreclosed upon through its already existing Augusta Georgia Land Bank Authority (AGLBA). The AGLBA will also maintain, assemble, facilitate redevelopment of, market, and dispose of the land banked properties in accordance with relationships (public/private and/or public/public) approved of by the AHCDD. In no case will the property be held in excess of ten (10) years without obligating it to an eligible NSP use. Furthermore, we seek to dispose of these acquired properties to nonprofits/public agencies/for profits after a strategic developmental course of direction has been agreed upon to redevelop, rehabilitate, market, and sell to a qualified homeowner. The Augusta Georgia Land Bank Authority’s staff, will comply with the HERA regulations to be sure that all/any properties purchased, are purchased at a fifteen percent (15%) discount below the appraised and/or market value. Our strategy shall be to work with Housing Developers to purchase properties that are zoned appropriately and have suitable infrastructure. However, it is important ---PAGE BREAK--- 34 I P a g e to note that if a property does not meet the listed criteria but is located adjacent to a property that does meet the criteria it may be added to the land bank. Through research, we anticipate the average cost of each dwelling shall be $50,000, thus enabling our department to acquire eighteen (18) single-family dwellings in the South Augusta area (area of highest concentration), most notably the 30815 and 30906 zip codes for persons low, moderate and middle income (LMMI).  Acquisition funding committed under this action plan provided to each applicant (nonprofit/public agency/for profit) shall be given at 0% interest using the minimum affordability period of the federal HOME Investment Partnership Program, to include 24 CFR 92.252 and 24 CFR 92.254 as defined above. (See Section C for the Ensuring Affordability Period Breakdown) Location Description: • Zip Code 30901 • Zip Code 30904 • Zip Code 30906 • Zip Code 30909 • Zip Code 30815 Performance Measures: Number of units acquired/rehabilitated and made affordable Any contractual agreements will outline the services being procured, maximum amount of indebtedness, regulatory requirements, and performance schedules and will allow for the de-obligation of the contract amount in the event the housing developer fails to follow contractual provisions. All Housing Developers will be monitored quarterly for compliance using the equivalent to our HOME Tracking Log of which will be renamed the NSP Tracking Log Form. (Performance Measure Estimate) $50,000.00 (average acquisition amount per property) x 8 properties = $400,000.00 Uses: Acquisition – persons at or below 120% of AMI Note: Average estimated cost of units to be acquired is $50,000.00 however discretion will be utilized by AHCDD’s staff to acquire properties below and/or above $50,000. Total Budget: ---PAGE BREAK--- 35 I P a g e $400,000.00 – NSP Funds Note NSP Funds under this category are to be used for Acquisition and Acquisition related activities only Responsible Organization: Augusta Housing and Community Development Department Administrator Contact: Hawthorne Welcher, Jr. – Assistant Director - Housing 925 Laney Walker Blvd (2nd Floor) Augusta, GA 30901 (706) 821-1797 (office) (706) 821-1784 (fax) Email: hwelcher @augustaga.gov Note: A HERA Manager will be hired to run the day to day operations; however Mr. Welcher will remain the administrator contact. Projected Start Date: February 15, 2009 (10) Projected End Date: February 15, 2013 (11) Specific Activity Requirements:  Upon sale or transfer of the property from the AGLBA, recaptured funds will be returned to the NSP Trust as “program income” and be used for additional activities in accordance with the NSP Program and as approved by the Director and Assistant Director – Housing.  The Augusta Georgia Land Bank Authority’s staff, will comply with the HERA regulations to be sure that all/any properties purchased, are purchased at a fifteen percent (15%) discount price below the appraised and/or market value (acquisition activity) G5. NSP INFORMATION BY ACTIVITY (ACTIVITY Activity Name: HERA ACTIVITY NAME: REDEVELOPMENT AHCDD ACTIVITY NAME: REDEVELOPMENT ---PAGE BREAK--- 36 I P a g e Activity Type:  HERA 2008 §2301(c)(3)(B) purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and properties;  HERA 2008 §2301(c)(3)(E) – Redevelop demolished or vacant properties  24 CFR 570.201 Acquisition Disposition Public Services – Homeownership Counseling Direct Homeownership Assistance  24 CFR 570.204 - Activities by Community Based Development Organizations National Objective: To benefit Low, Moderate and Middle Income Household(s) (LMMH) under 24 CFR 570.208(a)(3) – Housing Activities To provide permanent affordable residential structures for persons/families whose income does not exceed 120% of the Area Median Income of $54,300.00 (Low, Moderate, and Middle Income – LMMI) Activity Description: Area of Greatest Need for Activity: See Area of Greatest Need Summary Above however most notably zip codes 30901, 30904, 30906, 30909 and 30815.  AHCDD will work with nonprofits/public agencies/for profits to leverage these NSP funds with public/private financing for homeownership and rental housing. Eligible activities include: construction, rehabilitation and project related soft costs. Furthermore, through this NSP activity, the NSP fund will fund up to $75,000 per project at 0% interest using the minimum affordability period of the federal HOME Investment Partnership Program, to include 24 CFR 92.252 and 24 CFR 92.254 as defined above. (See Section C for the Ensuring Affordability Period Breakdown). The comprehensive focus of the redevelopment fund is to redevelop abandoned/foreclosed upon structures to be sold and/or rented to persons whose income does not exceed 120% of the Area Median Income. Location Description: • Zip Code 30901 • Zip Code 30904 • Zip Code 30906 • Zip Code 30909 ---PAGE BREAK--- 37 I P a g e • Zip Code 30815 Performance Measures: Number of units rehabilitated/reconstructed and made affordable The specific Housing Rehabilitation Standards that will be applied to NSP rehabilitation, is the same that is applied via our current Emergency and Owner Occupied Rehabilitation Programs respectively. Housing that will be assisted with NSP funds, as a minimum, must meet the MINIMUM PROPERTY STANDARDS established by the U.S. Department of Housing and Urban Development (HUD) for decent, safe, and sanitary conditions. These MINIMUM PROPERTY STANDARDS are outlined in 24 CFR 200.925 and 200.926. In addition, housing that is newly constructed or substantially rehabilitated with NSP funds, must meet the Council of American Building Officials (CABO) one or two family building code, as adopted by Augusta-Richmond County, Augusta Housing and Community Development Department rehabilitation standards, and Augusta zoning ordinances. MINIMUM PROPERTY STANDARDS address these major areas: the site; the building exterior; the building systems; the dwelling units; the commons areas; and health and safety considerations. G. Site. The site components, such as fencing and retaining walls, grounds, lighting, mailboxes/project signs, parking lots/driveway, play areas and equipment, refuse disposal, roads, storm drainage and walkways must be free of health and safety hazards and be in good repair. The site must not be subject to material adverse conditions, such as abandoned vehicles, dangerous walks or steps, poor drainage, septic tank back-ups, sewer hazards, excess accumulations of trash, vermin or rodent infestation of fire hazards. H. Building Exterior. Each building on the site must be structurally sound, secure, habitable, and in good repair. Each building’s doors, fire escapes, foundations, lighting, roofs, walls, and windows, where applicable, must be free of health and safety hazards, operable, and in good repair. I. Building Systems. Each building’s domestic water, electrical system, elevators, emergency power, fire protection, HVAC, and sanitary system must be free of health and safety hazards, functionally adequate, operable, and in good repair. J. Dwelling Units. 5. Each dwelling unit within a building must be structurally sound, habitable, and in good repair. All areas and aspects of the dwelling unit (for example, the unit’s bathroom, call-for-aid (if applicable), ceiling doors, electrical systems, floors, hot water heater, HVAC (where ---PAGE BREAK--- 38 I P a g e individual units are provided), kitchen, lighting, outlets/switches, patio/porch/balcony, smoke detectors, stairs, walls, and windows) must be free of health and safety hazards, functionally adequate, operable, and in good repair. 6. Where applicable, the dwelling unit must have hot and cold running water, including an adequate source of potable water (note for example that single room occupancy units need not contain water facilities). 7. If the dwelling unit includes its own sanitary facility, it must be in proper operating condition, usable in privacy, and adequate for personal hygiene and the disposal of human waste. 8. The dwelling unit must include at least one battery-operated or hard wired smoke detector, in proper working conditions, on each level of the unit. K. Common Areas. The common areas must be structurally sound, secure, and functionally adequate for the purposes intended. The basement/garage/carport, restrooms, closets, utility, mechanical, community rooms, day care, halls/corridors, stairs, kitchens, laundry rooms, office, porch, patio, balcony, and trash collection areas, if applicable, must be free of health and safety hazards, operable, and in good repair. All common area ceilings, doors, floors, HVAC, lighting, outlets/switches, smoke detectors, stairs, walls, and windows, to the extent applicable, must be free of health and safety hazards, operable, and in good repair. These standards for common areas apply, to a varying extent, to all HUD/NSP housing, but will be particularly relevant to congregate housing, independent group homes/residences, and single room occupancy units, in which the individual dwelling units (sleeping areas) do not contain kitchen and/or bathroom facilities. L. Health and Safety Concerns. All areas and components of the housing must be free of health and safety hazards. These areas include, but are not limited to , air quality, electrical hazards, elevator, emergency/fire exits, flammable materials, garbage and debris, handrail hazards, infestation, and lead-based paint. For example, the buildings must have fire exits that are not blocked and have handrails that are undamaged and have no other observable deficiencies. The housing must have no evidence of infestation by rats, mice, or other vermin, or of garbage and debris. The housing must have no evidence of electrical hazards, natural hazards, or fire hazards. The dwelling units and common areas must have proper ventilation and be free of mold, odor (ex. Propane, natural gas, methane gas), or other observable deficiencies. The housing must comply with all requirements related to the evaluation and reductions of lead-based paint hazards and have available proper certifications of such (see 24 CFR part 35). ---PAGE BREAK--- 39 I P a g e Note: The construction standards applied above do not supersede or preempt State and local codes for building and maintenance with which HUD/NSP housing must comply. HUD/NSP housing must continue to adhere to these codes. The City of Augusta will ensure that all housing assisted with HUD/NSP funds within Augusta-Richmond County will meet MINIMUM PROPERTY STANDARDS established by HUD. The following below states performance and acceptability criteria for what the Augusta Housing and Community Development Department considers these key aspects of housing quality: 1. Sanitary facilities; 2. Food preparation and refuse disposal; 3. Space and security; 4. Thermal environment; 5. Illumination and electricity; 6. Structure and materials; 7. Interior air quality; 8. Water supply; 9. Lead-based paint; 10. Access; 11. Site and neighborhood; 12. Sanitary conditions; and 13. Smoke and carbon monoxide detectors (Performance Measure Estimate) $75,000.00 (maximum subsidy amount per project) x 13.43 projects = $1,007,491.60 Uses: Rehabilitation and Reconstruction – persons at or below 120% of AMI Note $75,000.00 is the maximum amount of subsidy that can be provided per project, however we seek to diversify and leverage this funding as far as we can! Note The NSP Fund (Redevelopment Program) will fund no more than 50% of the Total Development Costs for any single project. Total Budget: $1,007,491.60 – NSP Funds Note NSP Funds under this category are to be used for Redevelopment activities only to include acquisition, construction, rehabilitation, and project related soft costs (architectural/engineering, surveys, developer’s fee, legal, etc.) ---PAGE BREAK--- 40 I P a g e Responsible Organization: Augusta Housing and Community Development Department Administrator Contact: Hawthorne Welcher, Jr. – Assistant Director - Housing 925 Laney Walker Blvd (2nd Floor) Augusta, GA 30901 (706) 821-1797 (office) (706) 821-1784 (fax) Email: hwelcher @augustaga.gov Note: A HERA Manager will be hired to run the day to day operations; however Mr. Welcher will remain the administrator contact. Projected Start Date: February 15, 2009 (10) Projected End Date: February 15, 2013 (11) Specific Activity Requirements: Special Activity Requirements include:  It should be noted that an analysis will be conducted on every transaction to insure that property is purchased at the aforementioned discount The discount, regardless of amount will be passed on to the purchaser of the property and reflected in their purchase price. All potential homebuyers will be required to complete 8 hours of homebuyer counseling from a selected HUD-approved certified counseling agency before obtaining a mortgage loan. Beneficiaries: Renters and Homeowners;  Providing redevelopment funding using the HOME Investment Partnership Program via 24 CFR 92.252 and 24 CFR 92.254 defrays the need for the entire loan to be repaid to our department if a sale occurs. ---PAGE BREAK--- 41 I P a g e NSP Substantial Amendment Checklist For the purposes of expediting review, HUD asks that applicants submit the following checklist along with the NSP Substantial Amendment and SF-424. Contents of an NSP Action Plan Substantial Amendment Jurisdiction(s): Augusta-Richmond County Jurisdiction Web Address: www.augustaga.gov NSP Contact Person: Hawthorne Welcher, Jr. - Assistant Director - Housing Address: 925 Laney Walker Blvd Telephone: (706) 821-1797 Fax: (706) 821-1784 Email: hwelcher @augustaga.gov The elements in the substantial amendment required for the Neighborhood Stabilization Program are: A. AREAS OF GREATEST NEED Does the submission include summary needs data identifying the geographic areas of greatest need in the grantee’s jurisdiction? Yes No . Verification found on page B. DISTRIBUTION AND USES OF FUNDS Does the submission contain a narrative describing how the distribution and uses of the grantee’s NSP funds will meet the requirements of Section 2301(c)(2) of HERA that funds be distributed to the areas of greatest need, including those with the greatest percentage of home foreclosures, with the highest percentage of homes financed by a subprime mortgage related loan, and identified by the grantee as likely to face a significant rise in the rate of home foreclosures? Yes No . Verification found on page Note: The grantee’s narrative must address the three stipulated need categories in the NSP statute, but the grantee may also consider other need categories. C. DEFINITIONS AND DESCRIPTIONS For the purposes of the NSP, do the narratives include:  a definition of ―blighted structure‖ in the context of state or local law, Yes No . Verification found on page  a definition of ―affordable rents,‖ Yes No . Verification found on page  a description of how the grantee will ensure continued affordability for NSP assisted housing, ---PAGE BREAK--- 42 I P a g e Yes No . Verification found on page  a description of housing rehabilitation standards that will apply to NSP assisted activities? Yes No . Verification found on page D. LOW INCOME TARGETING  Has the grantee described how it will meet the statutory requirement that at least 25% of funds must be used to purchase and redevelop abandoned or foreclosed upon homes or residential properties for housing individuals and families whose incomes do not exceed 50% of area median income? Yes No . Verification found on page  Has the grantee identified how the estimated amount of funds appropriated or otherwise made available will be used to purchase and redevelop abandoned or foreclosed upon homes or residential properties for housing individuals or families whose incomes do not exceed 50% of area median income? Yes No . Verification found on page Amount budgeted = $618,266.00. E. ACQUISITIONS & RELOCATION Does grantee plan to demolish or convert any low- and moderate-income dwelling units? Yes No . (If no, continue to next heading) Verification found on page If so, does the substantial amendment include:  The number of low- and moderate-income dwelling units—i.e., ≤ 80% of area median income—reasonably expected to be demolished or converted as a direct result of NSP-assisted activities? Yes No . Verification found on page  The number of NSP affordable housing units made available to low- , moderate-, and middle-income households—i.e., ≤ 120% of area median income— reasonably expected to be produced by activity and income level as provided for in DRGR, by each NSP activity providing such housing (including a proposed time schedule for commencement and completion)? Yes No . Verification found on page  The number of dwelling units reasonably expected to be made available for households whose income does not exceed 50 percent of area median income? Yes No . Verification found on page F. PUBLIC COMMENT PERIOD Was the proposed action plan amendment published via the grantee jurisdiction’s usual methods and on the Internet for no less than 15 calendar days of public comment? Yes No . Verification found on page ---PAGE BREAK--- 43 I P a g e Is there a summary of citizen comments included in the final amendment? Yes No Verification found on page _TAB G. INFORMATION BY ACTIVITY Does the submission contain information by activity describing how the grantee will use the funds, identifying:  eligible use of funds under NSP, Yes No . Verification found on pages  correlated eligible activity under CDBG, Yes No . Verification found on pages  the areas of greatest need addressed by the activity or activities, Yes No . Verification found on pages  expected benefit to income-qualified persons or households or areas, Yes No . Verification found on pages  does the applicant indicate which activities will count toward the statutory requirement that at least 25% of funds must be used to purchase and redevelop abandoned or foreclosed upon homes or residential properties for housing individuals and families whose incomes do not exceed 50% of area median income? Yes No . Verification found on pages  appropriate performance measures for the activity, Yes No . Verification found on pages  amount of funds budgeted for the activity, Yes No . Verification found on pages  the name, location and contact information for the entity that will carry out the activity, Yes No . Verification found on pages  expected start and end dates of the activity? Yes No . Verification found on pages  If the activity includes acquisition of real property, the discount required for acquisition of foreclosed upon properties, Yes No . Verification found on page  If the activity provides financing, the range of interest rates (if any), Yes No . Verification found on page ---PAGE BREAK--- 44 I P a g e  If the activity provides housing, duration or term of assistance, Yes No . Verification found on page  tenure of beneficiaries rental or homeownership), Yes No . Verification found on page  does it ensure continued affordability? Yes No . Verification found on page H. CERTIFICATIONS The following certifications are complete and accurate: Affirmatively furthering fair housing Yes No Anti-lobbying Yes No Authority of Jurisdiction Yes No Consistency with Plan Yes No Acquisition and relocation Yes No Section 3 Yes No Citizen Participation Yes No Following Plan Yes No Use of funds in 18 months Yes No (10) Use NSP funds ≤ 120 of AMI Yes No (11) No recovery of capital costs thru special assessments Yes No (12) Excessive Force Yes No (13) Compliance with anti-discrimination laws Yes No (14) Compliance with lead-based paint procedures Yes No (15) Compliance with laws Yes No