nsp final document to hud - dekalb county, georgiansp grant submission template & checklist...

NSP GRANT SUBMISSION TEMPLATE & CHECKLIST

(UPDATED 10.21.08)

NSP grant allocations can be requested by submitting a paper NSP Substantial Amendment or a form under the Disaster Recovery Grant Reporting (DRGR) system. This template sets forth the suggested format for grantees under the NSP Program. A complete submission contains the information requested below, including:

(1) The NSP Substantial Amendment (attached below) (2) Signed and Dated Certifications (attached below)

(3) Signed and Dated SF-424.

Grantees should also attach a completed NSP Substantial Amendment Checklist

to ensure completeness and efficiency of review (attached below).

TABLE OF CONTENTS

I. Application A. Areas of Greatest Needs B. Distribution and Uses of Funds C. Definitions and Descriptions D. Low Income Targeting E. Acquisition and Relocation F. Public Comment G. Specific Activity Information, Including Total Budget and Performance

Measures • Activity A – Financing Mechanisms for the Purchase and Redevelopment

of Foreclosed Upon Homes and Residential Properties • Activity B – Purchase and Rehabilitate Homes and Residential Properties • Activity C – Land Banks • Activity D – Demolition of Blighted Structures • Activity E – Redevelop Demolished or Vacant Properties

II. Appendix A. NSP Standard Specification for Residential Rehabilitation B. Definition of LMMI for NSP C. Glossary D. Public Information Meeting Summary (10-21-2008) E. Written Comments from Public Information Meeting F. Summary of Citizen Comments (During 15 Days Public Comment Period) G. Written Comments During 15 Days Public Comment Period

III. Certifications IV. NSP Substantial Amendment Check List

DeKalb NSP Substantial Amendment Page 2 of 47

THE NEIGHBORHOOD STABILIZATION PROGRAM SUBSTANTIAL AMENDMENT TO THE

2008 – 2012 CONSOLIDATED PLAN INCLUDING THE 2008 ANNUAL ACTION PLAN

Jurisdiction(s): _DeKalb County_______ (identify lead entity in case of joint agreements) Jurisdiction Web Address: www.co.dekalb.ga.us (URL where NSP Substantial Amendment materials are posted)

NSP Contact Person: Chris H. Morris Address: 1807 Candler Road Decatur, GA 30032 Telephone: 404-286-3308 Fax: 404-286-3337 Email: [email protected]

+ A. AREAS OF GREATEST NEED Provide summary needs data identifying the geographic areas of greatest need in the grantee’s jurisdiction. Note: An NSP substantial amendment must include the needs of the entire jurisdiction(s) covered by the program; states must include the needs of communities receiving their own NSP allocation. To include the needs of an entitlement community, the State may either incorporate an entitlement jurisdiction’s consolidated plan and NSP needs by reference and hyperlink on the Internet, or state the needs for that jurisdiction in the State’s own plan. The lead entity for a joint program may likewise incorporate the consolidated plan and needs of other participating entitlement jurisdictions’ consolidated plans by reference and hyperlink or state the needs for each jurisdiction in the lead entity’s own plan. HUD has developed a foreclosure and abandonment risk score to assist grantees in targeting the areas of greatest need within their jurisdictions. Grantees may wish to consult this data, in developing this section of the Substantial Amendment. Response DeKalb County has been documenting the areas of greatest needs based on local data for the last 15 years. By subscribing to the Atlanta Foreclosure Report, we have sorted the advertised foreclosures by zip code and sales price on a monthly basis since 1993. Just for the years 2001 through October 2008, there have been more than 55,000 advertised foreclosures in DeKalb. Documentation shows that 84.1% of the advertised foreclosures in the entire County are located in 10 zip codes.


During this same time period, the next ten zip codes have a combined total of 8,436 advertised foreclosures. The top 20 zip codes account for 96.8% of the advertised foreclosures in DeKalb. If we can address the foreclosures in the top 20 zip codes, we will have addressed almost 97% of the problems!

DeKalb Zip Codes-Advertised Foreclosures

(Top 10 Zip Codes)

Zip Codes 2001 2002 2003 2004 2005 2006 2007 2008 TOTAL30058 712 1,009 1,185 1,230 1,208 1,350 1,680 1,651 10,02530032 532 617 808 796 819 1,005 1,278 1,210 7,06530034 509 721 772 830 877 932 1,138 1,054 6,83330038 349 529 689 730 774 869 1,020 1,122 6,08230083 477 611 737 698 693 822 910 896 5,84430088 463 607 687 686 619 753 796 794 5,40530087 449 557 594 587 581 662 746 792 4,96830316 272 335 443 393 447 487 549 554 3,48030294 180 296 345 374 385 482 575 638 3,27530035 229 293 361 366 361 421 502 440 2,973

Sub Total 4,172 5,575 6,621 6,690 6,764 7,783 9,194 9,151 55,950

DeKalb Zip Codes - Advertised Foreclosures (The next 10 Zip Codes)

Zip Codes 2001 2002 2003 2004 2005 2006 2007 2008 TOTAL

30317 149 245 343 296 258 298 313 413 2,31530084 50 81 106 92 137 109 176 196 94730030 83 85 115 100 89 103 134 143 85230021 74 188 101 93 83 83 93 117 83230319 37 80 74 76 88 73 112 153 69330340 52 67 84 86 74 93 71 103 63030288 21 68 66 76 73 84 100 105 59330033 35 50 83 83 64 72 93 103 58330341 37 52 56 63 71 71 72 111 53330307 32 45 71 52 49 56 70 83 458

Sub Total 570 961 1,099 1,017 986 1,042 1,234 1,527 8,436


DeKalb Zip Codes-Advertised Foreclosures (The Remaining Zip Codes in DeKalb County)

Zip Codes 2001 2002 2003 2004 2005 2006 2007 2008 TOTAL30338 21 31 39 25 42 49 64 59 33030360 15 33 23 19 35 29 48 70 27230079 15 23 30 29 17 34 66 55 26930345 13 19 28 40 27 27 48 51 25330329 8 10 28 17 18 25 39 33 17830002 14 10 23 18 14 26 32 38 17530324 8 13 15 9 9 15 16 35 12030039 0 9 18 14 12 15 15 32 11530306 8 8 7 13 10 10 22 16 9430072 2 4 11 7 6 12 12 8 6230049 16 8 5 7 4 5 7 0 52

No Zip 8 4 6 3 3 4 7 9 4430027 8 6 3 3 3 1 2 0 2630086 0 1 1 1 0 10 1 0 1430349 1 1 1 5 2 2 0 1 1330346 0 0 0 0 0 0 2 7 930318 1 0 1 1 0 3 2 0 830094 0 2 1 2 0 0 1 1 730310 0 0 0 0 2 2 1 1 630328 0 0 0 0 0 5 1 0 630303 2 2 0 1 0 0 1 0 630059 0 2 0 0 1 2 0 0 530350 0 0 2 0 0 2 1 0 530031 0 0 0 0 0 3 1 0 430046 0 0 0 0 0 0 0 3 330315 0 0 0 0 0 0 3 0 330068 2 1 0 0 0 0 0 0 330098 1 1 1 0 0 0 0 0 330309 0 0 0 0 0 1 1 0 230278 1 0 0 0 0 0 1 0 230301 0 1 0 0 0 1 0 0 230074 0 1 1 0 0 0 0 0 230312 0 1 0 0 0 0 0 1 230078 0 0 1 0 0 1 0 0 230017 0 0 0 1 0 1 0 0 230314 0 0 0 0 0 0 0 2 230037 0 0 0 0 0 2 0 0 230331 1 0 0 0 0 0 0 0 130339 1 0 0 0 0 0 0 0 130227 0 1 0 0 0 0 0 0 1


DeKalb Zip Codes-Advertised Foreclosures (The Remaining Zip Codes in DeKalb County continued)

Zip Codes 2001 2002 2003 2004 2005 2006 2007 2008 TOTAL30322 0 1 0 0 0 0 0 0 130244 0 0 1 0 0 0 0 0 130093 0 0 0 0 0 1 0 0 130305 0 0 0 0 0 1 0 0 130238 0 0 0 0 0 0 0 1 130043 0 0 0 0 0 0 0 1 130344 0 0 0 0 0 0 1 0 130518 0 0 0 0 0 1 0 0 130296 0 0 0 0 0 0 0 1 130356 0 0 0 0 0 0 0 1 130028 0 0 0 0 0 0 0 0 030318 0 0 0 0 0 0 0 0 0

Sub Total 146 193 246 215 203 290 395 426 2,116

Grand Total 4,888 6,729 7,966 7,922 7,955 9,115 10,823 11,104 66,502 After great deliberation, we concluded that it was best to utilize the data provided by HUD as the core foundation for determining the areas of greatest needs. The previously referenced local data, along with other data (Realty Trac, Tax Commissioner’s information, Atlanta foreclosure data), will be supplementary in nature and will greatly enable us to focus more clearly on smaller neighborhoods. By way of introduction, HUD’s data for allocating funds and providing the suggested areas of greatest need used three funding allocation criteria with associated scores to enable assessment of neighborhoods as defined in the federal regulations. Displayed below is an explanation of the methodology used and is the basis of our DeKalb County analysis:

1. The number and percentage of foreclosures for census block groups received a relative score, based on the degree of severity, from 10 points as the maximum to a low of 1 point. In essence, a score of 10 is the worst condition based on HUD’s formula. This is reflected by a weight of 70% assigned to this area.

2. The number and percentage of subprime loans in a census block group received a score of 66% as the highest in DeKalb showing the greatest severity, to a low of 2.7% at the least level of severity in DeKalb.

3. The number and percentage of defaults and delinquencies in a census block group received a score in DeKalb of 12.17% as the highest, indicating the greatest problems to .69% as the lowest in DeKalb.

Please see the maps (pages 6, 7, and 8 of this document) showing these areas of greatest need and the individual components.


The next step in our analysis of the data and maps was to establish priority tiers to enable better Neighborhood Stabilization planning. The data and map showing the number and percentage of foreclosures will be our base map because it had accounted for 70% of our allocation. The data from each of the three funding allocation criteria areas was grouped into five categories for ranking and then divided into FIVE PRIORITY TIERS as displayed below.

PRIORITY TIERS

Allocation Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 Criteria: Scores Scores Scores Scores Scores

CONSOLIDATION OF CRITERIA

5.0 – 4.2 4.1- 3.4 3.3 – 2.6 2.5 – 1.8 1.7 – 1.0

Based on our analysis of the five tiers, we have concluded that the areas of greatest needs in DeKalb are those areas located in Tiers 1 through Tier 4. We will consider foreclosed properties in Tier 5 only if they are located within the top 20 zip codes of advertised foreclosures and have a severely negative impact on the neighborhood due to the condition of the property, environmental conditions, safety/crime issues or other factors that have prohibited the communities from stabilizing their neighborhoods. In many cases, the demolition of foreclosed property may be the best solution for neighborhood stabilization. We clearly anticipate that most all of the funds will be expended in the top four tiers on a priority basis, but we need to be able to consider the negative impact in the top 20 zip codes. We will also use local information from our Tax Commissioner’s Office, RealtyTrac, and the Atlanta Foreclosure Report to supplement existing HUD data. Unfortunately, it is also important to note that the State of Georgia (including DeKalb County) is not only among the top ten states for foreclosures, but also mortgage fraud. Documentation shows that many middle and upper income subdivisions were targeted for mortgage flipping. Additionally, our research shows that a high number of foreclosures have occurred in areas going through gentrification and areas that have a large number senior citizens as homeowners. These factors underscore the importance of DeKalb’s approach of identifying the areas of greatest need as the top four tiers, while still addressing foreclosures in the top 20 zip codes on a limited basis.


Areas of Greatest Need – Tier 1 Priority 1 = Pink

Areas of Greatest Need – Tier 2 Priority 2 = Yellow

Areas of Greatest Need – Tier 3 Priority 3 = Green

Areas of Greatest Need – Tier 4 Priority 4 = Blue


B. DISTRIBUTION AND USES OF FUNDS Provide 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. Note: The grantee’s narrative must address these three stipulated need categories in the NSP statute, but the grantee may also consider other need categories. Response All of the funds will be distributed and used in the areas of greatest needs based on the approach described in the response to Question A, Areas of Greatest Need. Even though we are not allocating a particular dollar amount to each tier, we will analyze the housing in each tier and develop strategies that are best suited for each tier. This approach will enable us to identify any existing multifamily rental units, condominiums, town houses and other appropriate housing opportunities to meet the needs of persons that are 50% or less of the area median family income. Based on the existing available information from a broad level, the County will use NSP funds primarily for acquiring and redeveloping single-family foreclosed properties, and establishing financing mechanisms that will allow us to do the same in the Areas of Greatest Need covered in the response to Question A. We will identify subrecipients and partnering agencies to work with the County to achieve the major objectives of the NSP Plan of Action through RFP, open application, and/or other processes as described in 24 CFR 85.36. The County will ensure that all selected partners demonstrate the capacity to manage and implement the extensive NSP regulations and requirements. It is important to note that the County plans to use 25% to 30% of the NSP allocation, plus 25% to 30% of program income, to address the long term housing needs of persons and families at 50% of the family median income. For the metro Atlanta area, the maximum income for a family of four is $35,600. Our Consolidated Plan documents that a large majority of renters are paying a disproportionate share of their income for rent. Our Continuum of Care Plan also documents that low income families cannot afford the average rents and many end up homeless or living in unacceptable housing conditions. We will use NSP funds to address the affordable housing needs of this population as opportunities exist in all of the tiers.


Finally, the County recognizes that an effective strategy should ensure that NSP funds be used to stabilize neighborhoods by acquiring and redeveloping vacant foreclosed properties. We identified the following additional factors that will help ensure that we achieve the program objectives.

1. The presence of an active community/neighborhood group that is already working to improve the area.

2. The existence of an overlay zone or Livable Center Initiative area. 3. The concentration of senior citizens or youth in the area via a school or senior

facility. 4. The crime rate in the area where the foreclosed property is located. 5. The presence of a major employment center near the area. 6. The impact of special needs populations on the area.

All of these factors could increase the sustainability of the community and assist the County in leveraging financial and community resources. The funds will be distributed and used for all eligible activities in these areas that assist in achieving the objectives. As funds are leveraged and program income is used to continue the programs, we will ensure that the priority tiers receive special consideration. Flexibility in using the funds among the various eligible uses is essential in achieving our objectives. It is also essential that DeKalb County receive a waiver from HUD to retain program income or any other NSP revenue generated on or after July 30, 2013 to be used for NSP eligible purposes. Other core values that DeKalb will use are set forth below:

1. Strengthen and empower neighborhood organizations in order to stabilize and sustain neighborhoods.

2. Promote quality affordable housing for the families that are within the workforce housing definition.

3. Utilize the expertise of citizens that live and/or work in the DeKalb Community. 4. Coordinate with the Purchasing and Contracting Department and the Economic

Development Department to ensure that DeKalb businesses are apprised of business opportunities related to the Neighborhood Stabilization Program. We want our subrecipients to utilize DeKalb businesses when they are the most responsive bidder.

5. Partner with the State and other metropolitan jurisdictions to ensure that we employ the most effective strategies to achieve the NSP objectives.

6. Work with the DeKalb Board of Realtors and the Empire Board of Realists to help ensure that we have the best information on foreclosed properties in DeKalb.

7. In order to acquire properties at the lowest possible price, we will pursue foreclosed properties available from FHA, VA, Fannie Mae, and Freddie Mac. This does not exclude opportunities to acquire other properties that meet the NSP regulations and that are consistent with the neighborhood stabilization objectives.

8. Foreclosed property acquisition and disposition will occur in a manner that does not negatively impact property tax revenue in DeKalb County.


DeKalb County anticipates no problem in expending all NSP project funds within the 18 month time period because of the strategies that we will employ.

1. We will initiate the homebuyers’ education process no later than February 21, 2009. This will help ensure that we have trained and credit worthy buyers.

2. The County will work on different major program components simultaneously by collaborating with multiple highly skilled subrecipients. For example, we envision that one major subrecipient will work with municipalities in DeKalb on NSP activities, while other subrecipients work on other aspects of the program. Potential properties have already been identified.

3. Several potential multi-family properties have already been identified that will help address the affordable rental needs of households at 50% or less of the area median income.

4. Several Continuum of Care partners have already identified properties and strategies to help meet the affordable housing needs of special populations.

5. We have begun the process of analyzing VA, FHA, Freddie Mac, and Fannie Mae foreclosed property locations. The chart below provides details on foreclosures in the County’s Areas of Greatest Need.

Number of Agency Foreclosures by Tier

Tier 1 Tier 2 Tier 3 Tier 4 Total FHA 264 39 16 3 322 Fannie Mae 371 46 0 0 417 Freddie Mac 64 7 0 0 71 VA 39 6 0 0 45 Total 738 98 16 3 855

a. We have analyzed the FHA foreclosures in DeKalb and have identified

approximately 322 single family properties that are within our Areas of Greatest Need.

b. We have talked with representatives from Fannie Mae and learned that they have approximately 417 foreclosed properties in DeKalb.

c. Freddie Mac has approximately 71 foreclosed properties in DeKalb. We look forward to working with them in the acquisition process.

6. Several homeowners associations and neighborhood organizations have volunteered to actively work with the Neighborhood Stabilization Program and have held neighborhood meetings to identify specific roles that they want to play. The roles include identifying foreclosed properties, marketing their neighborhoods, and helping to secure the properties until they are occupied.


Summary of Next Steps

Action

Date

I. Finalize the Implementation Plan

Dec. 15, 2008

II. Meet with HUD approved housing counseling agencies and lenders to develop plans to prepare potential homebuyers for home ownership. Focus on regulatory requirements for counseling and avoidance of subprime loans

Dec. 1- Dec.31, 2008

III. Meet with local civic organizations and affordable housing providers to clarify processes, program guidelines, and identification of specific properties within neighborhoods

Dec. 15, 2008 – Jan. 31, 2009

IV. RFP Process Initiation/Partner Selection

Jan. – Feb. 2009

V. Projected NSP Program Start Date

March 1, 2009


Proposed NSP Budget Summary

NSP Item

Activity Proposed Funding

Activity 25% for 50% of

AMI

Private Funding

A Establish Funding Mechanisms for the purchase and redevelopment of foreclosed upon homes and residential properties

$7,500,020 $2,950,000 $8,050,0001

$12,800,0002

B Purchase and Rehab Abandoned or Foreclosed Homes

$7,690,492 $1,750,000 $6,536,918

C Establish Land Banks for Foreclosed Homes

$500,000 Private funds will not be used in this

activity D Demo Blighted Structures $500,000 Private funds

will not be used in this

activity E Redevelop Demolished or

Vacant Properties $500,000 Private funds


activity Administration $1,854,501 Private funds


activity TOTAL $18,545,013 $4,700,000

(25.34%) (Included in

Totals)

Private funds will not be used in this

activity Note: Budget adjustments may be necessary to satisfy the NSP requirements on targeting timeliness of expenditures, and/or other program objectives. The NSP budgeted amounts and the associated projected numbers of units are based on current market conditions, housing inventories, and pricing. Budgets may change at implementation due to changes in these factors.

1 This amount represents private funding for multi-family properties. 2 The amount represents private funding for single family properties.


Proposed NSP Subrecipients

NSP Item

Activity Potential Subrecipients

A Establish Funding Mechanisms for the purchase and redevelopment of foreclosed upon homes and residential properties

B Purchase and Rehab Abandoned or Foreclosed Homes

C Establish Land Banks for Foreclosed Homes

D Demo Blighted Structures E Redevelop Demolished or Vacant

Properties

The County will identify subrecipients and other partnering agencies through RFP, open application, and/or other processes as described in 24 CFR 85.36. All selected subrecipients and/or partnering agencies will have the capacity to manage and implement the extensive NSP regulations and requirements

One of DeKalb’s core values is to work with local civic associations, neighborhood organizations, affordable housing providers, and partners during the NSP implementation. The details identifying the process and opportunities for other partners will be set forth by January 31, 2009.


C. DEFINITIONS AND DESCRIPTIONS (1) Definition of “blighted structure” in context of state or local law. Response The local code defines a blighted structure as shown below:

1. An abandoned or vacant structure that constitutes a hazard to the health or safety of persons who may come on or near the property on which the structure is located and which is not fenced in or otherwise protected to reasonable prohibit public access thereto.

2. A structure that is severely damaged by fire, storm or other natural or manmade

causes which has remained in such damaged condition for a period of six (6) months or more and which constitutes a hazard to the health or safety of persons who may come on or near the property on which it is located.

3. A structure that is in a condition of being partially constructed and construction

thereon has ceased for a period of twelve (12) months or more and which constitutes a hazard to the health or safety of persons who may come on or near the property on which it is located.

4. Any combination of the foregoing that would constitute a hazard to the safety and

welfare of any person living on property located adjacent thereto. This definition is consistent with the HUD definition shown in the HUD “Notice of Allocations under the Housing and Economic Recovery Act, 2008”. (2) Definition of “affordable rents.” Note: Grantees may use the definition they have adopted for their CDBG program but should review their existing definition to ensure compliance with NSP program –specific requirements such as continued affordability. Response The County will use the HOME Program Rents including the 30% Area Median Income Rents (AMI) published annually by HUD as the affordable rents for DeKalb County. Based on the needs documented by our Continuum of Care, we will develop a process to use the 30% Area Median Income Rents for no more than 10% of the units in a multifamily project. This number may increase if the project receives Project Based Rental Assistance. The County will work with the DeKalb Housing Authority to seek rental assistance.


2008 HOME Program Rents

Metro Atlanta/DeKalb

Efficiency 1 BR 2BR 3BR

Low HOME rent $622 $667 $801 $925 High HOME rent $684 $741 $824 $1,003 Fair market rent $684 $741 $824 $1,003 50% rent limit $622 $667 $801 $925 65% rent limit $790 $848 $1,019 $1,170 (3) Describe how the grantee will ensure continued affordability for NSP assisted housing. Response: The County will adopt a dual focused approach to ensure continued affordability for NSP assisted housing:

• Affordability at the citizen level in the use of housing obtained with NSP Funds.

• Monitoring of HOME regulation requirements to maintain long term affordability.

Steps to ensure this affordability are shown below: Affordability at the citizen level

Acquisition & Sale • Purchase all property at the lowest possible price. • Negotiate with FHA, VA, Fannie Mae, Freddie Mac, and other lenders willing

to work with the County, to purchase property at the best possible price. • In selecting property, give priority to property that requires less extensive

rehabilitation, while remaining cognizant of the neighborhood stabilization goal.

• Ensure that the mortgage amount does not exceed 2.5 - 3 times the purchaser’s annual gross income.

• Sell property for an amount less than the total NSP investment. The amount will be determined based on the neighborhood. We need to remain cognizant of the goals of affordability and stabilization. Prior to NSP implementation, the County will engage subject matter experts to assist in developing policies and guidelines in this process.

• To avoid decreasing neighborhood value and maintain affordable mortgage payments, provide second mortgages to cover the difference between the appraised value and the buyer’s first mortgage. The purchaser must qualify for a mortgage amount equal to 80% of the appraised value. Prior to NSP implementation and no later than January 31, 2009, the County will engage subject matter experts to assist in refining policies and guidelines in this process.


Buyer Selection • Give priority to buyers qualifying under the County’s Workforce Force

Housing definition. This definition includes public and private sector employees whose incomes are between 61% and 120% of the County’s median family income. (Note that the ordinance states 125% but NSP has a cap of 120% of median family income.)

• Require eight (8) hours of mandatory homeownership and financial management training. At least two (2) hours of the eight (8) hours will be one-on-one face to face counseling. The curriculum of the Housing Choice Voucher Program should be reviewed.

• Prequalify all individuals as required by NSP regulations. • Examine consumers’ debt to income ratio and ensure that buyers do not have

excessive debt. Prior to NSP implementation, the County will engage subject matter experts to assist in refining policies and guidelines in this process.

• We will consult with HUD approved counseling agencies to finalize the requirements.

Resale & Recapture If circumstances require the sale of NSP assisted property, the County will ensure that buyers retain at least a portion of their investment (if net revenues exist) while maintaining affordability. To preserve affordability of NSP assisted property, the County may place resale or recapture restrictions on property acquired with NSP funds. During the NSP implementation phase, the County will establish policy and guidelines governing the deployment of these options. Affordability periods, as shown in 24 CFR 92.254 will apply to NSP assisted property. The County may acquire NSP assisted property that is in jeopardy of foreclosure through right of first refusal or other preemptive right before foreclosure, acquire the housing at the foreclosure sale, undertake necessary rehabilitation, and provide assistance to another buyer, in accordance with the HOME guidelines shown in 24 CFR 92.254 (a)(ii)(9).

Rental The County will use the HOME Program Rents including the 30% Area Median Income Rents (AMI) published annually by HUD as the affordable rents for DeKalb County. Based on our Continuum of Care we will develop a process to use the 30% Area Median Income Rents for no more than 10% of the units in a multifamily project. This number may increase if the project receives Project Based Rental Assistance. The County will work with the DeKalb Housing Authority to seek rental assistance. Additionally, households between 80% and 120% AMI will pay 30% of their adjusted income for rent and utilities. Their rent may not exceed the market rent for comparable, unassisted units in the neighborhood.


Affordability through Monitoring HOME Regulation Requirements The County will adopt the HOME regulations specified in the 24 CFR 92.252 and other HOME regulations as determined by the Community Development Director as the minimum program standards. The County has extensive HOME program monitoring experience. The monitoring methodology that we will implement for NSP funds used is documented in our 2008 – 2012 Consolidated Plan. NSP assisted units must satisfy the affordability requirements for not less than the applicable period specified in the chart below. The affordability requirements apply without regard to the term of any loan or mortgage or the transfer of ownership. Affordability period will be imposed by deed restrictions and covenants.

Affordability Period Table for Homeownership Homeownership Assistance HOME Amount

Per Unit Minimum Period Of Affordability In Years

Under $15,000 5 $15,000 to $40,000 10 Over $40,000 15

Affordability Period Table for Rental Housing

Rental Housing Activity Minimum Period Of Affordability In Years Rehabilitation or acquisition of existing housing per unit of Home funds under $15,000

5

$15,000 - $40,000 10 Over $40,000 or rehabilitation involving refinancing

15

New Construction or acquisition of newly constructed housing

20

(4) Describe housing rehabilitation standards that will apply to NSP assisted activities. Response The DeKalb County local codes will determine the minimum housing rehabilitation standards for NSP assisted activities. However, The County may exceed those standards, depending upon the age and condition of the property. (See Appendix, “Standard Specifications For Residential Rehabilitation”).


D. LOW INCOME TARGETING Identify the estimated amount of funds appropriated or otherwise made available under the NSP to 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 percent of area median income: $69,200. Note: At least 25% of funds must be used for housing individuals and families whose incomes do not exceed 50 percent of area median income. Response DeKalb will appropriate at least 25% of the NSP funds ($4.7 million) and any received Program Income to assist individuals and families whose incomes do not exceed 50 percent of area median income. The project initiatives and activities will be ancillary to our DeKalb County Homeless Continuum of Care (CoC) Plans. Our Homeless Advisory Council and community leaders have previously documented the various gaps in our CoC. Of special note is our focus on women with children, veterans, and at-risk homeless families in hotels. We will use the referenced 25.34% of NSP funds ($4.7 million) and any received Program Income principally to generate rental units; preferably, in multifamily properties. The County plans to allocate $2.8 million to finance properties with multi-family units targeted at households at or below 50%AMI. The County anticipates that the aggregate private funding for theses properties will equal $11 million to $15 million. The number of 50% AMI level units in each property will be in proportion to the NSP funds invested (for 50%AMI) in comparison to the total project cost. The County plans to allocate $1,750,000 for the purchase and rehabilitation of abandoned or foreclosed homes. This property will be used for households at or below 50% AMI. We will deploy the following activities to accomplish our goals for individuals in this target area, 50% AMI:

• Purchase abandoned/ foreclosed residential properties • Purchase and rehabilitation abandoned/ foreclosed residential properties

E. ACQUISITIONS & RELOCATION Indicate whether grantee intends to demolish or convert any low- and moderate-income dwelling units (i.e., ≤ 80% of area median income).


If so, 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.

• 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).

• The number of dwelling units reasonably expected to be made available for households whose income does not exceed 50 percent of area median income.

Response DeKalb County will consider using NSP funds for demolition only if the property is blighted, vacant and demolition will assist in stabilizing the neighborhood. In lieu of rebuilding, the County will consider converting property to neighborhood green space or developing mini-parks. The County anticipates demolishing 28 units within the ≤ 80% area of median income. At this time, the County does not plan to develop new units as a result of demolition. However, using NSP funds to leverage other funds may enable the County to serve considerably more households by converting or rebuilding. The County may reconsider its position on demolition and rebuilding at final NSP implementation. F. PUBLIC COMMENT Provide a summary of public comments received to the proposed NSP Substantial Amendment. Note: proposed NSP Substantial Amendment must be published via the usual methods and posted on the jurisdiction’s website for no less than 15 calendar days for public comment. Response On October 21, 2008, a number of public comments and questions were taken at a public information meeting held at the Maloof Auditorium in downtown Decatur. The meeting was held to provide information to the public on the Neighborhood Stabilization Plan. The summary of this meeting and comments can be viewed in the Appendix Section. On October 30, 2008, the County advertised the proposed NSP Substantial Amendment in the local legal organ. In this ad, the public was invited to review the Plan of Action for the Neighborhood Stabilization Program on the County’s website and at various placement sites in the County. The County also invited citizens to mail, fax or e-mail comments on the NSP Plan to the Community Development Department by November 14, 2008. The summary of comments can be viewed in the Appendix Section.


G. NSP INFORMATION BY ACTIVITY (1) Activity Name: Financing Mechanisms (A) (2) Activity Type:

NSP Eligible Use Correlated Eligible Activity from the CDBG Entitlement Regulations

(A) Establish financing mechanisms for the 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- moderate and middle-income homebuyers.

• As a part of an activity delivery cost for an eligible activity as defined in 24CFR 570.206

• Also, the eligible activities listed below to the extent financing mechanisms are used to carry them out.

o Acquisition o Disposition o Relocation o Direct homeownership

assistance (3) National Objective: (Must be a national objective benefiting low, moderate and middle income persons, as defined in the NSP Notice—i.e., ≤ 120% of area median income). Response Serve limited clientele with incomes at or below 120% of Area Median Income (Low-Moderate-Middle-Income Clientele) (4) Activity Description: Include a narrative describing the area of greatest need that the activity addresses; the expected benefit to income-qualified persons; and whether funds used for this activity will be used to meet the low income housing requirement for those below 50% of area median income. Response Through this activity, funds may be distributed in all “Areas of Greatest Need” in DeKalb County, as described in Question A of this Substantial Amendment. By providing mechanisms to finance foreclosed or abandoned units, the County can facilitate neighborhood stabilization while providing a means for households to acquire affordable housing. The Consolidated Plan documents that more than 15,000 DeKalb renters who are at or below 50% Area Median Income (AMI) demonstrate “housing needs” (renters


are cost burdened or housing is substandard). Our Continuum of Care Plan also documents that low income families cannot afford area average rents and many end up homeless or living in unacceptable housing conditions. The County plans to use 25%-30% of the NSP allocation, plus 25%-30% of program income, to address the long term housing needs of households at or below 50% of AMI.

To foster affordable housing in DeKalb for households at 50% to 120% of AMI, the County will work with strategic partners to provide financing mechanisms for the purchase of single family and multi-family property in the priority areas of greatest need. Specifically, DeKalb County will collaborate with the State and local partners to develop financing mechanisms that will increase the inventory of available housing units. The financing options include the following:

a) Mortgage i) First Mortgage ii) Second Mortgage (soft, hard, gap financing)

b) Developer Loans c) Rehabilitation Loans

d) Land Banking Loans

e) Shared Equity Loans - Shared equity loans for low-and moderate middle-

income homebuyers provide special advantages. These advantages are listed below: i) Expand access to homeownership - Shared equity housing helps low-and

moderate-income people become homeowners, especially in communities where market rate homeownership is elusive, not only for the poor, but also for those who earn modest wages, such as school teachers, nurses, and police officers.

ii) Preserve access to homeownership – Shared equity housing is a way to maintain affordability for many years. In communities where the investment of public dollars has expanded homeownership for persons excluded from the market, these models can ensure that the next generation of low-income homebuyers will have access to the same opportunities available to the present generation.

iii) Stabilize residential neighborhoods – Shared equity housing stabilizes

property values, protects homeownership gains and prevents the displacement of lower-income households in neighborhoods experiencing gentrification. In neighborhoods where governmental action has instigated changes, these models can protect some residential properties from the negative effects of public investment and disruptive fluctuations of private investment.


iv) Expand civic engagement - Shared equity housing can expand the participation of local residents, not only in the operation of their own housing, but in activities of block clubs, watch groups and other civic associations in the surrounding neighborhoods.

v) Promote development and diversity – Finally, these models may be a means of improving neighborhoods where the poor are concentrated or diversifying neighborhoods where the poor are excluded. Shared equity housing, in the first instance, becomes one component of a comprehensive strategy for community development. In the second, it becomes one component of a regional ”fair share” strategy, a tool for opening up suburban enclaves to people with lower incomes.

To facilitate neighborhood stabilization, while fostering continued affordability, the County will focus on adherence to affordability guidelines at the household level and adherence to HOME regulations. Specifics of this approach are listed in Activity B, “Purchase and Rehabilitate Homes and Residential Properties”. (5) Location Description: (Description may include specific addresses, blocks or neighborhoods to the extent known.) Response As noted above, all NSP activities will take place in the “Areas of Greatest Need” as described in Question A of this document. The anticipated benefit of this activity is the stabilization of communities in DeKalb County through new construction of demolished or vacant properties. (6) Performance Measures: (e.g., units of housing to be acquired, rehabilitated, or demolished for the income levels of households that are 50 percent of area median income and below, 51-80 percent, and 81-120 percent). Response Performance measurements were developed based on the budget assumptions shown in Question 7, below. Displayed below is a summary of the matrix that we will use for tracking the activities delineated under the activity, Financing Mechanisms.

Financing Mechanisms Performance Measurement # of Single Family Loans for <50%

AMI

# of Loans for 50% - 80%

AMI

# of Loans for 81%-120% AMI

# of Multi-family Loans

0 32 Loans 96 Loans 13

3 The County will evaluate multi-family project alternatives and implement the best alternative. Multiple properties may be financed.


(7) Total Budget: (Include public and private components) Response See Question B, Page 14, for the “Proposed NSP Budget Summary”.

Financing Mechanism for the Purchase and Redevelopment of

Foreclosed Properties

Total Activity Budget

Allocation for < 50% of AMI

Allocation for <120% of AMI

$7,500,020

$2,950,000

$4,550,020

Assumptions: Allocation for < 50%of the Area Median Income (AMI) =$2,950,000 The total budget for Financing Mechanism is $7,500,020 NSP funds. The County plans to allocate $2.95 million to finance properties with multi-family units targeted at households at 50%AMI. It is very likely that moderate or substantial rehabilitation (rehab) will be needed. The funding source for the required rehabilitation will be leveraged funds. The funding mechanism will be a developer loan with the repayment terms palatable enough to maintain affordable rents for persons with low income, moderate income, and middle income. The rehab will be managed by the developer with HOME affordability periods consistent with NSP required affordability periods. The County anticipates that the aggregate private funding for theses properties will equal $11 million to $15 million. The number of 50% AMI level units in each property will be in proportion to the NSP funds invested (for 50%AMI) in comparison to the total project cost. Assumption: Allocation for < 120 % of Area Median Income (AMI) = $4,550,020 Our strategy for funding mechanisms related to the allocation of funds for income eligible individuals greater (>) than 50% of AMI up to a maximum of 120% is as follows: • Assist a significant number of families in the purchase of single-family foreclosed

homes with down payment assistance and closing cost. • Identify at least 128 families that have been certified by a HUD approved counseling

agency. • Provide second mortgages with deferred payments to allow eligible individuals to

obtain mortgages from lending institutions at 80% of sales price. • Use $125,000 as the average discounted sales price for providing the second

mortgages. Five thousand dollars will be the maximum closing cost coverage per loan.

• Details for funding mechanisms to purchase and redevelop foreclosed properties will be established no later than January 31, 2009.


• The anticipated private funds leveraged for this activity when buyers get mortgages will generate approximately $100,000 per single family home for a total of $12,800,000.

• NSP funds in this category may be used to develop properties that serve households with incomes 50%>120% AMI. The County may adjust the budget accordingly, if necessary.

(8) Responsible Organization: (Describe the responsible organization that will

implement the NSP activity, including its name, location, and administrator contact information)

Response DeKalb County Community Development, located at 1807 Candler Road, Decatur, GA 30032, will serve as the lead organization for this activity. Administrator Contact: Chris H. Morris, Director (404) 286-3308. The County will identify other partnering agencies and/or subrecipients through RFP, open application, and/or other processes as described in 24 CFR 85.36. All selected subrecipients and/or partnering agencies will have the capacity to manage and implement the extensive NSP regulations and requirements. One of DeKalb’s core values is to work with local civic associations, neighborhood organizations, affordable housing providers and partners during the NSP implementation. The details identifying the process and opportunities for these partners will be set forth by January 31, 2009. (9) Projected Start Date: March 1, 2009 (10) Projected End Date: September 30, 2013 (may be continued) (11) Specific Activity Requirements: For acquisition activities, include:

• discount rate Response Not applicable for this activity. For financing activities, include:

• range of interest rates


Response The rates and terms for NSP loans to assist in financing multifamily projects will be negotiated on a case-by-case basis, based upon an evaluation of the population to be served, subsidy levels, rents to be charged, the projected financial strength of the project, the financial capacity of the applicant, and the applicant’s history of completing projects in DeKalb County and the metro Atlanta area. The term of the loan shall be no greater than the period of affordability as required by HOME regulations. The Community Development Director will provide final approval for all negotiated rates and terms.

NSP loans provided to homebuyers shall be at an interest rate of 0-3% and for a term no greater than the period of affordability as required by HOME regulations. For housing related activities, include:

• duration or term of assistance; • tenure of beneficiaries--rental or homeownership; • a description of how the design of the activity will ensure continued affordability

Response The Financing Mechanism activity may be used to finance single family homes and multi-family rental properties. Homeowners are eligible to participate in the NSP Homeownership program only once. Property acquired by homeowners in the NSP program is subject to the HOME affordability periods (as stated in 24 CFR 92.254) and recapture or resale controls. Households renting units in properties developed with NSP funds are eligible to rent units in those properties during the HOME affordability period (as stated in 24 CFR 92.252) for the property and as long as the household remains income eligible. To facilitate neighborhood stabilization, while ensuring continued affordability, the County will focus on adherence to affordability guidelines at the household level and adherence to HOME regulations. Specifics of this two-pronged approach can be found in Activity B, “Purchase and Rehabilitate Homes and Residential Properties” of this substantial amendment.


G. NSP INFORMATION BY ACTIVITY (COMPLETE FOR EACH ACTIVITY) (1) Activity Name: Purchase and Rehabilitate Homes and Residential Properties (B) (2) Activity Type: (include NSP eligible use & CDBG eligible activity)

NSP-Eligible Uses Correlated Eligible Activities from the CDBG Entitlement Regulations

(B) Purchase and Rehabilitate homes and residential properties that have been abandoned or foreclosed upon in order to sell, rent, redevelop such homes and properties

• 24 CFR 570.201 (a) Acquisition, (b) Disposition, (i) Relocation, and (n) Direct homeownership assistance (as modified below);

• 570.202 eligible rehabilitation and preservation activities for homes and others residential properties (HUD notes that rehabilitation may include counseling for those seeking to take part in the activity).

(3) National Objective: (Must be a national objective benefiting low, moderate and middle income persons, as defined in the NSP Notice—i.e., ≤ 120% of area median income). Response Provide or improve permanent residential structures that will be occupied by households with incomes at or below 120% of Area Median Income (Low Moderate Middle- Income Households). (4) Activity Description: Include a narrative describing the area of greatest need that the activity addresses; the expected benefit to income-qualified persons; and whether funds used for this activity will be used to meet the low income housing requirement for those below 50% of area median income. Response Through this activity, funds may be distributed in all “Areas of Greatest Need” in DeKalb County. By purchasing, rehabilitating and re-selling or renting foreclosed or abandoned units to households at or below 120% of Area Median Income (AMI), the County can facilitate neighborhood stabilization, while providing a means for households to acquire affordable housing. Through the use of NSP funds, the


County will strategically incorporate modern, green building and energy-efficiency improvements in all NSP activities. The Consolidated Plan documents that more than 15,000 DeKalb renters who are at or below 50% AMI demonstrate “housing needs” (renters are cost burdened or housing is substandard). Our Continuum of Care Plan also documents that low income families cannot afford area average rents and many end up homeless or living in unacceptable housing conditions. Twenty-five percent (25%) to thirty percent (30%) of NSP funds will be used to provide affordable housing to households at or below 50% of AMI. Through collaboration with its strategic partners, the County will acquire and rehabilitate foreclosed and/or abandoned property in the “Areas of Greatest Need”. In order to make safe, decent, and affordable housing available, DeKalb County plans to collaborate with strategic partners (as identified through RFP, open application, or other processes as described in 24 CFR 85.36). (5) Location Description: (Description may include specific addresses, blocks or neighborhoods to the extent known.) Response All NSP activities will occur in the “Areas of Greatest Need” as described in Question A of this Substantial Amendment. (6) Performance Measures (e.g., units of housing to be acquired, rehabilitated, or demolished for the income levels of households that are 50 percent of area median income and below, 51-80 percent, and 81-120 percent). Response Performance measurements were developed under the assumption that the County will invest an average of $137,330 per single-family unit for the purpose of purchase/ rehabilitation. The matrix below displays the objectives for this activity.

Purchase and Rehab Homes and Residential Properties Performance Measurement

# of Homes for <50% AMI # of Homes for 50% - 80%

AMI # of Homes for 81%-120%

AMI

15 Homes 19 Homes 19 Homes


(7) Total Budget: (Include public and private components) Response See Question B, Page 14, for the “Proposed NSP Budget Summary”

Purchase and Rehab Homes and Residential Properties

Total Activity Budget

Allocation for < 50% of AMI

Allocation for <120% AMI

$7,690,492

$1,750,000

5,940,492

Assumption: Allocation for < 50% of the Area Median Income (AMI) = $1,750,000 The total budget for Purchase and Rehabilitation for Homes and Residential Properties is $7,690,492 NSP funds. The estimated amount of private funds that will be leveraged for this activity is $6,536,918, based on buyers receiving mortgages for 80% of the amount of NSP funds invested. This revenue will be reused for eligible NSP projects in this activity. DeKalb County is requesting that HUD grant a waiver to allow the County to continue using program income and other revenue beyond June 30, 2013. Our strategy is to purse a limited number of homes at a lower affordable price point to accommodate this income group, < 50% of the Area Median Income (AMI). Whereas the preponderance of the allocated funds to accommodate and comply with the NSP regulations is in rental housing, the inclusion of a limited number of purchase/ rehab and subsequent selling of properties was deemed as a balanced methodology. It is estimated that the County will commit at least $1,750,000 in this area with an associated purchase quantity of at least fifteen (15) properties in high priority areas. Assumption: Allocation for <120% of the Area Median Income = $5,940,492 Our strategy for Purchase and Rehabilitation of properties related to the allocation of funds for income eligible individuals greater (>) than 50% of AMI up to a maximum of 120% is as follows: • Assist a significant number of families in the purchase/ rehab and subsequent

selling of single-family foreclosed homes. • Identify at least 38 families that have been certified by a HUD approved

counseling agency. • The appraised value of each property is equal to the amount invested in the

property. • Sell all properties at a 15% average discount below the appraisal values.


• For planning purposes, the average discounted sale price is $116,730. • All eligible buyers will obtain private financing and will be represented by

reputable real estate brokers. (8) Responsible Organization: (Describe the responsible organization that will implement the NSP activity, including its name, location, and administrator contact information) Response DeKalb County Community Development, located at 1807 Candler Road, Decatur, GA 30032, will serve as the lead organization for this activity. The County will identify other partnering agencies and/or subrecipients through RFP, open application, and/or other processes as described in 24 CFR 85.36. All selected subrecipients and/or partnering agencies will have the capacity to manage and implement the extensive NSP regulations and requirements. Administrator Contact: Chris H. Morris, Director (404) 286-3308. One of DeKalb’s core values is to work with local civic associations, neighborhood organizations, affordable housing providers and partners during the NSP implementation. The details identifying the process and opportunities for these partners will be set forth by January 31, 2009. (9) Projected Start Date: March 1, 2009 (10) Projected End Date: September 30, 2010 (11) Specific Activity Requirements: For acquisition activities, include:

• discount rate Response Discount Rate a) Any purchase of a foreclosed home or residential property shall be at a discount

from the current market appraised value of the home or property, taking into account its current condition. Such discount shall ensure that purchasers are paying below-market value for the home or property.

b) In recognition of the need for flexibility in administering the purchase discount requirement, HUD has adopted an approach that requires a minimum discount of 5% for each residential property purchased with NSP funds during the 18-month use period.

c) The program must achieve an overall average discount of either 10% or 15% for all properties purchased during the 18-month obligation period.


For financing activities, include:

• range of interest rates Response Not applicable for this activity Response For housing related activities, include:


Response To facilitate neighborhood stabilization, while fostering continued affordability, the County will focus on adherence to affordability guidelines at the household level and adherence to HOME regulations. Specifics of this two-pronged approach are listed below: a) Affordability at the Household Level

i) Tenure of Benefits – Funds may be used to acquire single family homes aimed at homeownership and multi-family property for rental purposes. (1) Homeowners are eligible to participate in the NSP Homeownership

program only once. Property acquired by homeowners in the NSP program is subject to the affordability periods and recapture or resale controls.

(2) Households renting units in properties developed with NSP funds are eligible to rent units in those properties during the affordability period for the property and as long as the household remains income eligible.

ii) Acquisition

(1) All property will be purchased at the lowest possible price. (2) The County will negotiate with FHA, VA, Fannie Mae, Freddie Mac,

and other lenders willing to collaborate with the County to purchase property at the best possible price.

(3) In the property selection process, the County will give highest acquisition priority to property that requires less extensive rehabilitation (while remaining cognizant of the neighborhood stabilization goal).

(4) To ensure neighborhood stabilization, the County will consider the following additional factors when acquiring property:

(5) The presence of an active community/neighborhood group that is already working to improve the area.

(6) The existence of an overlay zone or Livable Center Initiative area.


(7) The concentration of senior citizens or youth in the area via a school or senior facility.

(8) The crime rate in the area where the foreclosed property is located. (9) The presence of a major employment center near the area. (10) The impact of special needs populations on the area. (11) The presence of a multi-family development that threatens the

stability of the area. (12) The County will only consider acquiring property where clear title

for all property is evident.

iii) Buyer Selection (1) The County may give priority to buyers qualifying for Workforce

Housing under the County’s Workforce Housing Ordinance. (2) The County will require eight hours of mandatory homeownership

and financial management training (training curriculum to be equivalent to the Housing Choice Voucher Program curriculum).

(3) All households must be program eligible, as required by NSP regulations.

(4) The County will require the examination of households’ debt to income ratio. Buyers may not have excessive debt. (The mortgage may not exceed 2.5-3 times their annual income).

iv) Sale

The County will sell property for less than the appraised value; but no more than the amount required by NSP regulations. To avoid decreasing neighborhood value, the County may provide a soft second mortgage to cover the difference between the appraised valued and the amount of the purchaser’s first mortgage. The purchaser must qualify for 80% of the appraised value of the property being purchased. The County will provide specific details on the sale of property during the NSP implementation phase.

v) Rental

The County will use the HOME Program Rents including the 30% Area Median Income Rents (AMI) published annually by HUD as the affordable rents for DeKalb County. Based on our Continuum of Care we will develop a process to use the 30% Area Median Income Rents for no more than 10% of the units in a multifamily project. This number may increase if the project receives Project Based Rental Assistance. The County will work with the DeKalb Housing Authority to seek rental assistance.


b) Affordability through Adherence to HOME Regulations i) To ensure continued affordability, DeKalb County will exercise the

resale/recapture options. During the NSP implementation phase, the County will establish policies and guidelines governing the deployment of these options.

ii) The affordability period will conform to 24 CFR 92.254, “Homeowner Affordability Requirements”.

Affordability Period Table for Homeownership

iii) The NSP assisted rental units must meet the affordability requirements

for not less than the applicable period specified in the chart below. The affordability requirements apply without regard to the term of any loan or mortgage or the transfer of ownership.

iv) Affordability period will be imposed by deed restrictions and covenants running with the land. Additional affordability requirements as seen in 24 CFR 92.252 may apply.

Affordability Period Table for Rental Housing

Rental Housing Activity Minimum Period of Affordability in

Years Rehabilitation or acquisition of

existing housing per unit of HOME funds Under $15,000

5

$15,000 - $40,000 10 Over $40,000 or rehabilitation

involving refinancing 15

New construction or acquisition of newly constructed housing 20

Homeownership Assistance HOME Amount Per Unit

Minimum Period of Affordability in Years

Under $15,000 5 $15,000 to $40,000 10 Over $40,000 15


G. NSP INFORMATION BY ACTIVITY (COMPLETE FOR EACH ACTIVITY) (1) Activity Name: Land Banks (C) Response Relevant Definition: A land bank is a governmental or nongovernmental nonprofit entity established, at least in part, to assemble, temporarily manage, and dispose of vacant land for the purpose of stabilizing neighborhoods and encouraging re-use or redevelopment of urban property. For the purposes of the NSP, a land bank will operate in a specific, defined geographic area. It will purchase properties that have been abandoned or foreclosed upon and maintain, assemble, redevelop, market, and dispose of the land-banked properties. If the land bank is a governmental entity, it may also maintain abandoned or foreclosed property that it does not own, provided it charges the owner of the property the full cost of the service or places a lien on the property for the full cost of the service. (2) Activity Type: (include NSP eligible use & CDBG eligible activity) Response


(C) Establish land banks for homes that have been foreclosed upon

• 24 CFR 570.201 (a) Acquisition, (b) Disposition.

(3) National Objective: (Must be a national objective benefiting low, moderate and middle income persons, as defined in the NSP Notice—i.e., ≤ 120% of area median income). Response Provide or improve permanent residential structures that will be occupied by households with incomes at or below 120% of Area Median Income (Low Moderate Middle-Income Household) (4) Activity Description: Include a narrative describing the area of greatest need that the activity addresses; the expected benefit to income-qualified persons; and whether funds used for this activity will be used to meet the low income housing requirement for those below 50% of area median income.


Response DeKalb County will identify a partnering agency to acquire foreclosed homes at the lowest possible price in the “Areas of Greatest Need”, as identified in Question A of this Substantial Amendment. The partnering agency will hold the properties for future development and use. The partnering agency will maintain, assemble, redevelop, market and dispose of land banked properties. A specific plan for land banked properties will be developed to ensure that future development will benefit the appropriate percentages of persons (as outlined in the NSP regulations) that are at or below 50% of AMI, 51-80%, and 81 -120% of the AMI. Land banked properties will not be held for more than ten years without obligation of the property for a specific, eligible redevelopment in accordance with NSP requirements.

a) Acquisition i) Any purchase of a foreclosed upon home or residential property 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.

ii) In recognition of the need for flexibility in administering the purchase

discount requirement, HUD has adopted an approach that requires a minimum discount of 5% for each residential property purchased with NSP funds over the 18-month use period. The program must achieve an overall average discount of either 10% or 15% for all properties purchased during the 18-month obligation period.

b) Other Housing Related Activities

i) Tenure of beneficiaries – DeKalb County will determine if properties are to be rented or sold to potential homeowners.

ii) Duration or term of assistance- A land bank may not hold a property for more than ten years without obligating the property for a specific, eligible redevelopment in accordance with NSP requirements.

c) Continued Affordability

i) To ensure continued affordability, DeKalb County will exercise the resale/recapture options. During the NSP implementation phase, the County will establish policies and guidelines governing the deployment of these options.

The affordability period will conform to 24 CFR 92.254, “Homeowner Affordability Requirements”.


(5) Location Description: (Description may include specific addresses, blocks or neighborhoods to the extent known.) Response All NSP activities will take place in the “Area of Greatest Need” as described in Question A and the Appendix of the Substantial Amendment. (6) Performance Measures (e.g., units of housing to be acquired, rehabilitated, or demolished for the income levels of households that are 50 percent of area median income and below, 51-80 percent, and 81-120 percent). Response The performance measures were developed using the assumption that the County will invest an average of $125,000 per unit for the acquisition activity. (7) Total Budget: (Include public and private components) Response See Question B, Page 14, for the “Proposed NSP Budget Summary”. The total budget for Land Banks is $500,000 NSP funds. There are no private funds in this activity.

Land Bank Activity Budget $500,0000 (8) Responsible Organization: (Describe the responsible organization that will implement the NSP activity, including its name, location, and administrator contact information) Response DeKalb County Community Development, located at 1807 Candler Road, Decatur, GA 30032, will serve as the lead organization for this activity. Administrator Contact: Chris H. Morris, Director (404) 286-3308. The County will identify other partnering agencies and/or subrecipients through RFP, open application, and/or other processes as described in 24 CFR 85.36. All selected subrecipients and/or

Land Bank Activity Performance Measurements

Number of Properties Purchased with Allocated Funding

4 Units


partnering agencies will have the capacity to manage and implement the extensive NSP regulations and requirements. One of DeKalb’s core values is to work with local civic associations, neighborhood organizations, affordable housing providers and partners during the NSP implementation. The details identifying the process and opportunities for these partners will be set forth by January 31, 2009. (9) Projected Start Date: March 1, 2009 (10) Projected End Date: September 30, 2010 (11) Specific Activity Requirements: For acquisition activities, include:

• discount rate Response (a) Any purchase of a foreclosed home or residential property shall be at a discount

from the current market appraised value of the home or property, taking into account its current condition. Such discount shall ensure that purchasers are paying below-market value for the home or property.

(b) In recognition of the need for flexibility in administering the purchase discount requirement, HUD has adopted an approach that requires a minimum discount of 5% for each residential property purchased with NSP funds during the 18-month use period.

(c) The program must achieve an overall average discount of either 10% or 15% for all properties purchased during the 18-month obligation period.


• range of interest rates Response Not applicable for this activity For housing related activities, include:


Response Not applicable for this activity


G. NSP INFORMATION BY ACTIVITY (COMPLETE FOR EACH ACTIVITY) (1) Activity Name: Demolition of Blighted Structures (D) (2) Activity Type: (include NSP eligible use & CDBG eligible activity)

NSP – Eligible Uses Correlated Eligible Activities from the CDBG Entitlement Regulations

(D) Demolish Blighted Structures

• 24 CFR 570.201(d) Clearance for blighted structures only

(3) National Objective: (Must be a national objective benefiting low, moderate and middle income persons, as defined in the NSP Notice—i.e., ≤ 120% of area median income). Response Provide or improve permanent residential structures that will be occupied by households with incomes at or below 120% of Area Median Income (Low Moderate Middle Income Household) (4) Activity Description: Include a narrative describing the area of greatest need that the activity addresses; the expected benefit to income-qualified persons; and whether funds used for this activity will be used to meet the low income housing requirement for those below 50% of area median income. Response Relevant definition: Blighted structure. A structure is blighted when it exhibits objectively determinable signs of deterioration sufficient to constitute a threat to human health, safety and public welfare. Priority emphasis is placed on the “Areas of Greatest Need” as described in Question A of this Substantial Amendment. DeKalb County will contract with a partnering agency to clear, demolish, and remove buildings and improvements. Consideration will be given to buildings that pose safety concerns and violate environmental standards in the neighborhoods. This activity may also include the movement of structures to other sites. Demolition will only be used in areas where stabilization is needed. DeKalb County will consider combining this activity with other NSP activities to achieve the goal of creating safer neighborhoods and enhancing the overall appearance; thereby, increasing property value. Funds used under this activity will assist the County in creating safer neighborhoods for households below 50%AMI, as well as neighborhoods with households at or below 120% AMI.


(5) Location Description: (Description may include specific addresses, blocks or neighborhoods to the extent known.) Response All NSP activities will take place in the “Area of Greatest Need” as described in Question A of this Substantial Amendment. (6) Performance Measures (e.g., units of housing to be acquired, rehabilitated, or demolished for the income levels of households that are 50 percent of area median income and below, 51-80 percent, and 81-120 percent). Response The performance measures have been developed using the assumption that the County may best serve the community through the demolition of blighted homes that it acquired through Activity B, Purchase and Rehabilitation of Abandoned or Foreclosed Homes. The County also assumes that the demolition cost for single family will average $17,500. This dollar amount includes site plans, inspections and contingencies. Based on those assumptions the following chart outlines our performance measurements for this activity.

Demolish Blighted Structures Activity Performance Measurements Number of Properties Demolished with Allocated Funding

28 Units

(7) Total Budget: (Include public and private components) Response See Question B, Page 14, for the “Proposed NSP Budget Summary”.

The total budget for the Demo Blighted Structures activity is $500,000 NSP funds. There are no private funds in this activity.

Demo Blighted Structures Activity $500,0000

(8) Responsible Organization: (Describe the responsible organization that will implement the NSP activity, including its name, location, and administrator contact information) Response DeKalb County Community Development, located at 1807 Candler Road, Decatur, GA 30032, will serve as the lead organization for this activity. Administrator


Contact: Chris H. Morris, Director (404) 286-3308 The County will identify other partnering agencies and/or subrecipients through RFP, open application, and/or other processes as described in 24 CFR 85.36. All selected subrecipients and/or partnering agencies will have the capacity to manage and implement the extensive NSP regulations and requirements.

One of DeKalb’s core values is to work with local civic associations, neighborhood organizations, affordable housing providers and partners during the NSP implementation. The details identifying the process and opportunities for these partners will be set forth by January 31, 2009. (9) Projected Start Date: March 1, 2009 (10) Projected End Date: September 30, 2010 (11) Specific Activity Requirements: For acquisition activities, include:

• discount rate Response Not Applicable for this activity For financing activities, include:

• range of interest rates Response Not Applicable for this activity For housing related activities, include:


Response Not Applicable for this activity


G. NSP INFORMATION BY ACTIVITY (COMPLETE FOR EACH ACTIVITY) (1) Activity Name: Redevelop Demolished or Vacant Properties (E) (2) Activity Type: (include NSP eligible use & CDBG eligible activity)


(E) Redevelop demolished or vacant properties

• 24 CFR 570.201 (a) Acquisition, (b) Disposition

(c) Public facilities and improvements, (e) Public services for housing counseling, but only to the extent that counseling beneficiaries are limited to prospective purchasers or tenants of the redeveloped properties, (i) Relocation, and (n) Direct homeownership assistance (as modified below). • 204 Community based

development organizations. (3) National Objective: (Must be a national objective benefiting low, moderate and middle income persons, as defined in the NSP Notice—i.e., ≤ 120% of area median income). Response Provide or improve permanent residential structures that will be occupied by households with incomes at or below 120% of Area Median Income (Low- Moderate Middle-Income Household) (4) Activity Description: Include a narrative describing the area of greatest need that the activity addresses; the expected benefit to income-qualified persons; and whether funds used for this activity will be used to meet the low income housing requirement for those below 50% of area median income. Response All NSP activities will take place in the “Areas of Greatest Need”. The anticipated benefit of this activity is the stabilization of communities in DeKalb County through redevelopment of demolished or vacant properties. The County will collaborate with strategic partners that work to provide affordable housing to families that are 50%


and below AMI. Additionally, the County may leverage its strong relationship with the Housing Authorities and other strategic partners in redevelopment activities using the NSP funding.

Also, the County recognizes that housing cooperatives are an economical path to home ownership and financial independence. They offer home ownership with cost savings, tax advantages and equity growth opportunities for their residents. With this awareness the County may bring on other partners who are well suited to create affordable housing cooperative with NSP funds.

Shown below are some of the areas of consideration under this activity:

a) Factors That Impact Objective Obtainment - In order to ensure neighborhood stabilization, the County identified the following additional factors that will facilitate the achievement of the primary objectives: i) The presence of an active community/neighborhood group that is already

working to improve the area. ii) The existence of an overlay zone or Livable Communities Initiative area. iii) The concentration of senior citizens or youth in the area via a school or

senior facility. iv) The crime rate in the area where the foreclosed property is located. v) The presence of a major employment center near the area. vi) The impact of special needs populations on the area. vii) The presence of a multi-family development that threatens the stability of

the area.

b) Buyer Selection i) Give priority to buyers qualifying for Workforce Housing under the

County’s Workforce Housing Ordinance. ii) Require 8 hours of mandatory homeownership and financial

management training (training curriculum should be the equivalent of the Housing Choice Voucher Program curriculum).

iii) Pre-qualify all individuals as required by NSP regulations. iv) Examine households’ debt to income ratios and ensure that buyers do not

have excessive debt. c) Sale

i) The County will sell property for less than the appraised value; but no more than the amount required by NSP regulations. To avoid decreasing neighborhood value, the County may provide a soft second mortgage to cover the difference between the appraised valued and the amount of the purchaser’s first mortgage. The purchaser must qualify for 80% of the appraised value of the property being purchased. The County will provide specific details on the sale of property during the NSP implementation phase.


ii) To avoid decreasing neighborhood value, the County may provide a soft second mortgage to cover the difference between the appraised valued and the amount of the purchaser’s first mortgage. The purchaser must qualify for 80% of the appraised value of the property being purchased. The County will provide specific details on the sale of property during the NSP implementation phase.

d) Continued Affordability

i) To ensure continued affordability, DeKalb will exercise the resale/recapture restrictions. During the NSP implementation phase, the county will establish policies and guidelines governing deployment of these restrictions.

ii) The affordability period will conform to 24 CFR 92.254. e) Tenure of Benefits

i) Homeowners are eligible to participate in the NSP Homeownership Program only once. Property acquired by homeowners in the NSP program is subject to the affordability periods and resale provisions.

ii) Households renting units in properties developed with NSP funds are eligible to rent units in those properties during the affordability period for the property and as long as the household remains income eligible.

(5) Location Description: (Description may include specific addresses, blocks or neighborhoods to the extent known.) Response All NSP Activities will take place in the “Areas of Greatest Need” as described in Question A of this Substantial Amendment. (6) Performance Measures (e.g., units of housing to be acquired, rehabilitated, or demolished for the income levels of households that are 50 percent of area median income and below, 51-80 percent, and 81-120 percent). Response The performance measures were developed with the assumption that the County will invest an average of $125,000 per unit for the purchase and rehabilitation of each unit. Based on those assumptions, the following chart outlines our performance measurements for this activity.

Redevelop Demolished or Vacant Properties Performance Measurement

Number of Redeveloped Properties with allocated funding

4 Units


Using NSP funds to leverage other funds may enable the County to serve considerably more households depending on the activity type (new construction of single family homes or redevelopment of multifamily properties). (7) Total Budget: (Include public and private components) Response See Question B, Page 14, for the “Proposed NSP Budget Summary”.

Redevelop Demolished or Vacant Properties $500,000

(8) Responsible Organization: (Describe the responsible organization that will implement the NSP activity, including its name, location, and administrator contact information) Response DeKalb County Community Development, located at 1807 Candler Road, Decatur, Ga. 30032 is the responsible organization. Contact Person: Chris H. Morris, Director (404) 286-3308. DeKalb County Community Development, located at 1807 Candler Road, Decatur, GA 30032, will serve as the lead organization for this activity. The County will identify other partnering agencies and/or subrecipients through RFP, open application, and/or other processes as described in 24 CFR 85.36. All selected subrecipients and/or partnering agencies will have the capacity to manage and implement the extensive NSP regulations and requirements. One of DeKalb’s core values is to work with local civic associations, neighborhood organizations, affordable housing providers and partners during the NSP implementation. The details identifying the process and opportunities for these partners will be set forth by January 31, 2009. (9) Projected Start Date: March 1, 2009 (10) Projected End Date: September 30, 2010 (11) Specific Activity Requirements: For acquisition activities, include:

• discount rate Response Not Applicable for this activity



• range of interest rates Response Not Applicable for this activity For housing related activities, include:


Response Not Applicable for this activity

DeKalb NSP Application Appendix

A. NSP Standard Specification for Residential Rehabilitation B. Definition of LMMI for NSP

C. Glossary

D. Public Information Meeting Summary (10-21-2008)

E. Written Comments From Public Information Meeting

F. Summary of Citizen Comments ( 15 Days Public Comment Period)

G. Written Comments during 15 days Public Comments Period

APPENDIX A

STANDARD SPECIFICATIONS FOR

RESIDENTIAL REHABILITATION

INDEX PAGE SECTION I GENERAL CONDITIONS 1 SECTION II DEMOLITION 2 SECTION III CONCRETE WORK 2 SECTION IV MASONRY 3 SECTION V CARPENTRY 4 SECTION VI STUCCO-PLASTERING- WALLBOARD 7 SECTION VII GLASS AND GLAZING 9 SECTION VIII ROOFING AND SHEETMETAL 9 SECTION IX CAULKING 10 SECTION X PAINTING AND DECORATING 10 SECTION XI FLOORS 11 SECTION XII PLUMBING 11 SECTION XIII HEATING 12 SECTION XIV ELECTRICAL 13 SECTION XV LANDSCAPING 13 SECTION XVI TILE-CARPET-TERMITE TREATMENT 14 SECTION XVII EQUAL EMPLOYMENT OPPORTUNITY 15

DeKalb NSP Application - Appendix A A-Page 1 of 20

STANDARD SPECIFICATIONS FOR

RESIDENTIAL REHABILITATION

SECTION I

GENERAL 1. SCOPE of work shall include all labor, materials, equipment, drawings, and services necessary for the

Proper completion of the rehabilitation of the property identified in the work write-up. 2. THE WORK WRITE-UP shall take precedence over the basic specifications and when in conflict, the material, equipment, workmanship, etc., called for in the work write-up will be required. 3. THE CONTRACTOR is responsible for all permits and applicable fees. The contractor shall provide and

maintain for the duration of the work, temporary toilet facilities for the use of workmen. The contractor shall be responsible for the acts and omissions of his employees and sub-contractors and shall employ only qualified persons, skilled in the job which is assigned to 1dm.

4. THE OWNER shall provide utilities as necessary at no cost to the contractor when the property is occupied during the performance of the work.

5. THE DRAWING of floor plans are for diagram and illustrations only and are not to scale nor do they show all of the work required, exact dimensions or construction details.

6. CHANGES in work, including substitutions of material and changes in the scope of workmanship will not be made unless it is found to be necessary or desirable. Any changes proposed by either the contractor or the owner shall be in writing, stating the cost change, and agreed to by the contractor, the owner and the LPA, before any change in work is started.

7. MATERIALS shall be new, in good condition and of the grade required by the work write-up or specifications unless otherwise agreed to. Materials damaged in shipment or prior to owners acceptance shall be replaced at the contractor’s expense.

8. WORKMANSHIP shall be done in accordance with the trades standards as “Workmanlike Manner” or “Acceptable Standards of Workmanship.”

9. REPAIRS shall be made to all surfaces damaged by the contractor resulting from his work under this contract at no additional cost to the owner. Where “repair” of an existing item is called for in the work write-up, the item or feature (wall, floor, door, etc.,) is to be placed in “Equal to New Condition” either by patching or replacing. (Taking into consideration the fact that existing structures cannot be “Restored as New,” and that some lines and surfaces cannot be level, plumb, true and without slight irregularities). All damaged, decayed, missing, or rotted parts shall be replaced and loose parts shall be secured or replaced so that the finished work shall match the adjacent work in design and dimension. Such patching or replacement shall be made to blend with existing work so that the patch or replacement is inconspicuous.

10. INSPECTION of the work by authorized inspectors shall be facilitated by the contractor during normal

working hours. All work performed shall be subject to the inspectors approval and acceptance.

11. SUBCONTRACTORS shall be bound by the terms and conditions of this contract insofar as it applies to their work, but this shall not relieve the General Contractor from the full responsibility to the owner for the proper completion of all work to be performed under this agreement. The General Contractor shall not be released from his responsibility by a sub contractual agreement he may make with others nor shall anything contained in the contract documents create any contractual relation between any subcontractor and the owner.


SECTION I continued

12. BIDS OR PROPOSALS will be submitted at the bidders risk and the owner reserves the right to reject any

or all bids or proposals.

13. CODES All work performed shall be in accordance with applicable local codes and subject to their regulations. Where no local codes have been adopted, all work shall conform to the Georgia State Construction Codes.

14. TRADE NAMES are used in the Basic Specifications to establish quality and type of material required; exact material to be used on a specific property may be described in the work write-up for that specific

property thereby overriding the specifications.

15. WHEN ADJACENT PROPERTY is affected by any work done under the contract, it shall be the contractors responsibility to take whatever safeguards or precautions necessary for the projection to the adjacent property and to notify the owner thereof of such actions.

16. CLEAN UP and removal of all debris and materials resulting from his work, shall be the responsibility of the contractor who will, upon completion of his work, leave the premises in broom clean condition.

17. COMPLY with HUD’S “Lead-Base Paint Poisoning” Prevention Act.

SECTION II

DEMOLITION a. The contractor shall Complete demolition work as indicated on the drawings or in the work write- up. b. All debris resulting from demolition operations shall be removed as it accumulates and not

allowed to be stored on site.

c. Debris shall not be burned on the site.

d. Demolition shall be conducted in a safe and workmanlike manner.

e. Portions or parts of the structure or property not to be demolished, and intended to remain intact, shall be repaired or replaced.

f. All surplus materials to be removed shall become the property of the contractor and shall be removed from the premises unless otherwise directed.

SECTION III CONCRETE WORK

1. The concrete mix shall be one part Portland cement, 2 parts clean washed sand, and 5 parts clean

gravel by volume. The water shall not exceed 8 gallons per bag of cement, and shall be potable.

2. No concrete shall be poured when the temperature of the surrounding air is below forty degrees F without taking protective measures from freezing.


SECTION III continued

3. Concrete in footing shall have an ultimate compressive strength of not less than 2500 pounds per square inch at 28 days.

4. Yard pavement shall be 4” thick with a float and broom finish.

5. Floors shall be 4” thick with a steel trowel finish poured of no less than a 3,000 pound concrete mix.

6. Footings shall be a minimum of 8” thick and not less than 1 1/2 times the pier or foundation projection and shall be on virgin soil.

7. All concrete shall meet ACI Standard 301-72.

SECTION IV A. MASONRY

1. Tuck Pointing

Cracks in masonry shall be tuck pointed as follows: Cut away defective mortar to a depth of 1/2” with hand or power tools. Remove all loose material. Pre-hydrate mortar by mixing all ingredients dry, then mix again adding only enough water to produce a damp unworkable mix which will retain its form when pressed into a ball. After one to two hours, add sufficient water to bring it to the proper consistency; that is, somewhat drier than conventional masonry mortar. To insure a good bond, wet the mortar joints thoroughly before applying fresh mortar.

B. MORTAR TYPE

1. 1rpe N = 1 part Portland cement, 1 part type S hydrated lime and 6 parts sand, proportioned by volume. 2. Pack mortar tightly in thin layers until joint is filled, then tool to a smooth concave finish to match existing mortar work. 3. All areas are to be left clean and free from deleterious substances. 4. Color may be added to match existing mortar. Retempering of mortar shall not be allowed. Use of lime or shrinkage inducing lignins shall not be allowed.

C. WALL MASONRY, including foundations, chimneys and piers as described on the work write-up shall

include the following: 1. Wall masonry shall match existing. 2. Items built into masonry walls to include joint reinforcement, anchors into adjoining surfaces, and other items shown or required by the work.


SECTION IV continued

3. Rework existing chimneys by rebuilding from roof up or tuck pointing chimney and repairing fireplace including damper if fireplace is to be used, or, unused and deteriorated, chimney shall be removed to within 2 feet of the roof line and properly capped. All interior openings shall be sealed with masonry material. 4. Wall ties shall be 22 gauge, installed at each bearing point, a maximum of 24” O.C. 5. Foundations, masonry piers and curtain walls shall include the installation of a concrete footing as detailed in Section III. 6. Proper tooling of all joints. 7. Clean up and protection of adjoining and surrounding surfaces. 8. Provide weep holes maximum of 4’ O.C. 9. Provide full head and bed joints.

D. GENERAL 1. All work will conform to best masonry trade practices and in accordance with code requirements for type wall. 2. No masonry shall be installed or repaired when the temperature is below 4O F without taking protective measures from freezing. 3. Installation shall be plumb, true to line, with level and accurately spaced courses. Mortar joints shall not exceed 1/2” unless existing work requires larger joints to match. 4. Cleaning shall be accomplished by the use of stiff brushes. 5. Acids or other cleaning agents shall not be used without explicit consent of the LPA and only as recommended by the manufacturer.

E. PIERS

Concrete Block Piers shall be a minimum of 3” x 16” on proper footings. Maximum height of piers shall be 4 times the least dimension of block (plus cap block) for hollow block and 10 times the least dimension of block (plus cap block) for solid block.

SECTION V A. CARPENTRY

Framing lumber shall be grade marked; Douglas Fir. Const. grade or better; of Southern Pine, stud grade or better, of adequate size and dimension to meet span tables as specified in the SPIB lumber table. 1. Bearing partition stud walls shall not be less than 2” x 4” studs, set with long dimension perpendicular to the wall, a maximum of 16” on center.


SECTION V continued 2. All openings shall have double studs. Headers shall be constructed of two pieces of framing material set on edge. Corners will be constructed of three full length studs. 3. Double top plates shall be installed on walls and bearing partitions. Framing shall be constructed so as to accommodate the proper installation of trim, cabinets, plumbing, heating ducts and other attached work. Single plates are permitted where trusses are used provided trusses rest directly over stud. 4. Framing shall fit closely; set to line and level indicated and fastened in place rigidly. Framing members shall not be cut, notched, or bored more that 1/4 of their depth without adequate approved reinforcing. Boring shall be in the middle 1/3 of the member. Floor joists shall not be cut, notched or bored more than 1/6 of their depth and shall not exceed 2” in diameter and shall be in the end 1/3 of span only. 5. Floor joist spacing shall be no more than 16” on center when applying 25/32” flooring directly to the joist. Joists may be spaced 24” O.C. provided minimum of 5/8” subfloor is used.

B. SUBFLOOR shall be plywood or common boards.

1. A minimum of 5/8 plywood sub-floor shall be used for areas that are to be covered in resilient tile, linoleum or carpet. 2. Boards not exceeding 8” width or less than 3/4” thickness may be used for subfloor. Boards shall be nailed with 8D common or 6D threaded nails. 3. Allow 1/2” clearance at walls on all subfloor. Apply with outer plies at right angles to joists. Stagger end joints of adjacent panels and locate end joints over center line of supports. Plywood panels to be continuous over two or more spans. Fifteen pound felt shall be installed between the sub-floor and underlayment or finish flooring.

C. UNDERLAYMENT shall be grade stamped Underlayment Grade.

1. A minimum 3/8” underlayment may be installed over existing floor and/or subfloor. Underlayment Grade plywood shall be used in kitchens, baths and laundry areas. 2. All joints shall be staggered with respect to panel joints in subfloor. Provide approximately 1/32” spacing at joints where panels butt. Nail with 6D common shank nails 6” C.O. at all edges and

8” O.C. over bearings. All floor joints (sub-floor and underlayment) shall meet and be secured over joists.

3. Underlayment shall be level, smooth, free from defects and suitable for the finish floor covering. 4. Plywood Wall Sheathing shall be applied vertically with the ends extended to top plate and sills. Nailing schedule same as underlayment. 5. Roof Sheathing. Repairing of roof includes replacing deteriorated, inadequate and missing components of the roof structure including roof decking, rafters gable studs, collar beam, ridge board or any other inadequate member.


SECTION V continued 6. If new sheathing is required, it shall be 1/2” plywood or 3/8” plywood with clips, with exterior glue,

provided the rafters are no more than 24” O.C. or 3/4” boards to match existing sheathing. All sheathing shall be securely nailed, even, sound and thoroughly clean and dry. Rafters shall be properly braced before roofing is applied.

7. Leveling of floors as specified in the work write up shall be accomplished to the extent feasible and

practicable. In no case shall the variation in the floor exceed 314” in 12 feet. The contractor shall repair all damage to the structure that may occur as a result of leveling.

8. Adequate backing and deadwood shall be installed to accommodate the proper fastening of gypsum

drywall, bath accessories and fixtures, etc. 9. Material shall be stored and protected on site in a manner which prevents warping, absorption of moisture or damage to the material. 10. Framing material in direct contact with slab or masonry or within 8” of the soil or otherwise subject to moisture, shall be pressure treated and shall be grade stamped as such. 11. Girders within 12” of the soil and joists within 18” of the soil shall be pressure treated lumber. (If these members are to be replaced during rehabilitation of the structure.) 12. Shop drawings shall be furnished as required in the work write-up.

D. FINISH CARPENTRY AND MILLWORK

1. Finish lumber shall be of a species suitable for its intended use, kiln dried B, or better, of adequate

dimension, free from tool marks and objectionable defects. Approved factory made finger joints are permitted for painted finish but not allowed for natural finish. Interior trim shall match existing, adjacent or adjoining work in design and dimension unless specifically stated otherwise. Nails shall be set and puttied.

2. . Wood Doors where replacement is called for in the work write-up shall be: Exterior: 1 3/4” solid core of stock size and design unless work write-up specifies that they match

existing doors or openings, and shall meet requirements of Georgia State Energy Code for Buildings. Replacement includes: damaged or worn door jambs, door stops, thresholds, casings, hardware and weather-stripping when existing components cannot be restored to normal conditions by repairing. Doors shall be plumb with 1/8” clearance at head, jamb and threshold and adjusted to open, close and lock properly.

3. Screen doors shall be of wood or aluminum as specified, complete with aluminum screen wire, closer, hinges and latch, fitted to existing opening, of better grade residential quality. 4. Interior: 1 3/8” minimum thickness, paint grade unless work write-up specifies “match existing

doors,” or where doors are to be stained of finished natural. Replacement includes all components when existing components cannot be restored to normal condition by repairing. Doors shall be plumb with 1/8” clearance at head, jamb and threshold, etc.

5. Repair Existing Door: Make repairs necessary to existing door and its components to restore to normal condition as above. (Interior, exterior and screen door repair).


SECTION V continued E. HARDWARE shall be repaired or replaced as follows:

1. Interior doors shall be installed with tow butt hinges, 3 1/2” x 3 1/2” and privacy locks or passage locks, properly mortised. Bath room doors shall be provided with privacy locks sets, chrome one side and closet doors hall be provided with closet lock sets. 2. All exterior doors shall be hung on 3-3 1/2” x 3 1/2” butt hinges and provided with entrance lock set

or dead bolt set. 3. Screen or storm doors shall have a safety door check. Widows shall have positive sash locks and lifts.

F. WINDOWS

1. Furnish and install new windows as specified on work write-up complete with sash locks and lifts. New windows shall comply with Georgia State Energy Code. 2. Repair or replace any interior and exterior areas affected by the installation of the new window. 3. Repair existing window shall include replacing all damaged, decayed or broken components, including sash, glass, hardware, putty, sash cord and weather stripping.

G. NEW WINDOW SCREENS

Wood or aluminum as specified, complete with aluminum wire hooks and hangers, properly fitted to opening. Repair existing window screen. Rescreen existing frame using aluminum screen wire. Replace or repair damaged components as necessary.

H. WEATHER STRIPPING AND THRESHOLD

1. Weather stripping shall be installed on all exterior doors. 2. Thresholds shall be installed at all exterior doors, set in caulking compound, firmly secured with counter-sunk screws and shall be weather tight.

I. EXTERIOR SIDING

1. Repair all cracked, decayed or deteriorated siding. Material shall be of a species suitable for its

intended use, kiln dried, free from tool marks and other objectionable defects and shall match existing siding, butt joints and adjacent runs shall be staggered. New work shall be primed upon installation.

2. Exterior coverings including factory prefinished materials, shall be commercially produced material, recommended by its manufacturer for covering exterior surfaces of exterior walls and supplied with

instructions for water tight application. Install in accordance with mfgs. instructions and provide written warranty.

3. CORNICES to be repaired shall include replacing all rotted and other deteriorated parts with new

parts matching existing original work. This includes fascia, soffit, frieze and rake mold. New material shall be primed upon installation.


SECTION V continued J. CLOSETS

1. Linen Closets shall be a minimum of 14” in depth and 18” in width. A minimum of four shelves spaced no closer that 12” apart, bottom shelf 18” to 24” above floor and topmost shelf not more that 74” above floor. 2. Clothes Closets shall have a minimum dimension of 2’ in depth and 3’ in width. Doors shall be installed with all hardware as required under “Doors”. Bifold doors are subject to approval of the

City. The hanging space shall be a minimum of 5’ and the shelf shall not be over 74” above the floor. There shall be 2” clearance between rod and shelf.

3. Rod and Shelf: Each clothes closet shall contain a minimum of one rod and one shelf of suitable material and design provided that the finished product meets the following standards: The shelf shall support a uniformly distributed load of 30 lbs. per sq. ft. with vertical deflection not to exceed 1/4”. The rod shall support 10 lbs. per liner foot with vertical deflection of not more than 1/4”. Not more than one intermediate support may be provided for rods and shelves for 4 to 8 feet in length. Shelving material shall be 3/4” Pine, 8 or better, of 3/4” plywood - edge with screen mold.

K. PANELING

1. Paneling to be installed as specified in the work write-up shall be a minimum of 1/4” in thickness and shall include the paneling, trim, furring, setting and puttying nails, clean up and protection. Paneling shall be class 1 or 2 decorative hardboard or labeled hardwood plywood showing grade, species and finish.

2. Installation shall be in accordance with the mfgs. Recommendations and in a workmanlike manner.

L. INSULATION 1. Insulation indicated in the work write-up shall include: insulation, preparation of existing areas to receive insulation, cleanup and protection of work and certification of material. 2. Insulation material may be “Insulite”, blown rock wool, blown fiber glass, rock wool batts and fiber glass batts: John Manville or equal. Batts shall be full-thick and blown wool shall be a minimum thickness to provide an R-19 rating. Provide minimum 1” airspace between roof decking and insulation baffle around perimeter of attic. 3. All insulation shall be installed as per mfg. recommendations and shall comply with Georgia State Energy Code.

M. DAMPPROOFING AND WATERPROOFING that is specifically indicated in the work write-up shall

include, but not be limited to the following: 1. Sealing interior/exterior foundation walls to prevent the penetration of moisture and water. 2. Installation of drain tile where necessary. 3. Installation of vapor barrier under slab. 4. Concrete and brick sealers on exterior walls.


SECTION V continued 5. Installation of sump pumps in basement and crawl spaces where positive drainage cannot otherwise be obtained. 6. Materials used for waterproofing must be one that is manufactured specifically for that use, installed per mfg. recommendations and approved by the City prior to application. 7. Below grade coating must comply with Federal Spec. SS-A701. Below grad slab vapor barrier shall meet ASTM C173-69 standard. 8. Surfaces subject to coatings shall be completely dry and clean prior to application of coating. The application shall be in accordance with the manufacturers recommendations, using an approved applicator. 9. Adjoining or adjacent areas shall be protected. 10. To provide positive drainage the installation of sump pumps shall be mandatory where gravity flow positive drainage in a basement or crawl space cannot be obtained. Installation of a sump pump shall include: Grading crawl space to provide drainage to a low area where a concrete well shall be built. This well shall accommodate an automatic sump pump of adequate capacity A 110 volt outlet and discharge line to the exterior of the building is considered part of the installation.

SECTION VI

STUCCO, PLASTERING AND WALLBOARD A. STUCCO

1. Exterior stucco work indicated on work write-up shall comply with ANSI “Standard Specifications for Portland Cement Stucco and Portland Cement Plastering.”A42.2 71. 2. Metal lath shall weigh not less than 1.8 lbs. per sq. yd. and openings not in excess of 4 sq. inches

shall be used. Felt shall be 15# type. Metal reinforcement with attached paper backing may be used provided it meets specifications for mesh and backing and is made especially for plastering.

3. Expansion joints shall be zinc sheet, US Gypsum or equal. 4. Wood framing and sheathing to receive stucco shall be properly constructed to provide a non- yielding structure. 5. Flashings shall be acceptable installed prior to beginning of plaster work, i.e., at tops and sides of all openings where projecting trim occurs and at all points where flashing can be used to prevent water from getting behind stucco. 6. Surfaces to be stuccoed shall be covered with 1.8 metal lath lapped at ends and sides a minimum of 1” and nailed 16” O.C. vertically and 6” O.C. horizontally. Wood surfaces shall be covered with 15# felt with 3” laps prior to installation of metal lath. Mesh shall be fured not less than 1/4” with galv. furring nails. 7. Apply two coats on masonry to a minimum thickness of 5/8”. Apply three coats over wood surfaces to a minimum thickness of 7/8”.


SECTION VI continued

8. Mortar for all coats shall be a mixture by volume of 1 part Portland Cement to not less than 3, nor more than 5 parts of damp loose aggregate. Finish coat color and texture to be approved by the owner before starting application.

B. PLASTERING materials shall be standard commercial brands.

1. Application and mix shall be in accordance with American Standard Specifications for Gypsum Plastering ASTM C28-68. Apply plaster in 3 coats or 2 coats double up work, minimum thickness 1/2”. 2. Gypsum lath shall be applied with long dimensions across supports and with end joints staggered. 3. Nail lath with 12 or 13 gauge lath nails having approximately 3/8” heads with nails spaced not more than 4” O.C. Minimum of 4 nails each lath, 6 nails for 24” wide lath. Nails shall penetrate horizontal supports at least 1” and vertical supports 3/4”. 4. Portland Cement Plaster shall not be applied over gypsum lath. Existing wood lath shall be securely nailed and wetted down prior to applying plaster. 5. Metal lath shall be applied in accordance with mfg. recommendations. 6. Wall board shall be U.S. Gypsum wall board or equal, carefully fitted and sized prior to nailing in place. 7. Installation shall be performed in accordance with mfg. recommendation. 8. 1/2” Wallboard shall be used unless otherwise specified. 9. M/R Moisture - resistant 1/2” sheetrock shall be used on bath room walls. 10. Joint cement, fasteners, tape and corner bead shall be as recommended by wallboard mfg. and shall be applied as recommended.

C. ONE HOUR FIRE RESISTIVE CONSTRUCTION

Where required by Georgia State Building Code. 1. Partitions shall be at least 2 x 4 studs, spaced 16” O.C. covered with 5/8” type X gypsum board or 1/2” XXX gypsum. 2. The wall board shall be applied to both sides of the party wall and shall extend from floor to ceiling. 3. Ceiling shall be the same material as the walls and installed in accordance with mfg.

recommendations. See Georgia State Building Code for exception.

SECTION VII

A. GLASS AND GLAZING 1. Windows shall be glazed or reglazed where required, with single strength clear glass, grade B.


SECTION VII continued 2. Door Lites and side lite glass shall be glazed with safety glass or tempered glass. 3. Putty shall be DAP or equal. 4. Glass shall be bedded in putty secured with glazing points and face puttied. All excess putty shall be removed and the glass left clean. 5. Mirrors shall be polished plate grade No. 1.

SECTION VIII

A. ROOFING AND SHEETMETAL 1. Repairing the roof shall include the replacement of decayed or missing components including decking, rafters, studs, ridge board, flashing, etc., and meet requirements of Georgia State Energy Code for Buildings. 2. Replacement of existing roof shall include the removal of all old roofing material, including felt, the repair, and if necessary, replacement of any roofing components, securely nailing the roof decking, installation of felt, flashings and roofing shingles. 3. Roofing shingles shall be Celotex 240# self sealing shingles or equal. 4. Asphalt shingles shall be installed in exact accordance with mfg. directions and shall have a written 15 year warranty. 5. Built up roofing when called for shall be installed in exact accordance with the mfg. directions and shall have a 10 year warranty. 6. Raised metal seams shall be flattened prior to installation of any new roofing. 7. Where “recoating” of existing roof is called for in the work write-up, all flashing shall be made water tight, bubbles shall be cut out and repaired, and at least one coat of tar and 1 ply of 30# felt added. Plys which are cut to remove bubbles, shall be replaced and a coat of tar applied between each ply.

B. FLASHING 1. Upon installation of roofing shingles, all flashings shall be replaced; including chimneys, valleys, eaves drips and any other critical areas. 2. Flashing or counter flashing material shall be a minimum of 26 gauge galvanized or 28 gauge aluminum. 3. All vents and stacks projecting through roof shall have approved flashing.


SECTION VIII continued C. GUTTERS AND DOWNSPOUTS 1. Gutters and downspouts shall be no less than 26 gauge galvanized or aluminum. Gutter shall be 5” O.G. unless otherwise stated. The pitch shall be not less than 1/16” per ft. The downspouts shall be 3” and extend to within 4” of the finish grade, and securely fastened. The splash-block shall be concrete. Minimum size 12”x 24”.

SECTION IX A. CAULKING

1. “Exterior joints around windows and door frames; openings between wall panels; openings at penetrations of utility services through walls, floors and roofs; and all other such openings in the building envelope shall be caulked, gasketed, weather-stripped or otherwise sealed in an approved manner.” 2. Caulking material used shall be the proper material as recommended and installed in accordance with the mfg. instructions. 3. Caulking shall be a smooth bead, uniform, straight, clean, and crisp.

SECTION X

A. PAINTING AND DECORATING

1. All paint and other finish materials shall be of a good quality, manufactured by a nationally recognized mfg., i.e., Glidden, Sherwin Williams, Pittsburg or approved equal.

B. PREPARATION OF SURFACE

1. Plaster or wall board shall be sound, smooth and free from holes, cracks and irregularities. All old wall paper shall be removed entirely unless otherwise specifically noted in the work write-up; in any case, all loose wall paper shall be removed and the remaining edges “feathered.” 2. Wood surfaces to be painted shall be cleaned to remove loose and scaling paint and rough spots. Where previous coats have chipped and peeled, the edges shall be sanded to a feather edge before new paint is applied. Puttying and caulking shall be done prior to the finish coat of paint. 3. All colors shall be approved by the owner prior to commencing painting. 4. All materials shall be delivered to the job in the mfg. sealed containers, containing labels giving mfg. name, type of paint, color, etc. 5. Application shall be by brush or roller and shall be applied uniformly, smooth and free from runs, sags, foreign matter, defective brushing or rolling. Edges of paint adjoining other material or colors shall be straight, sharp and clean. 6. Exterior paint will not be applied in damp rainy weather or when the temperature is below 40○ F. Materials to be painted shall be clean and dry Paint application shall be as per the work write-up.


SECTION X continued

7. On previously painted surfaces one coat application may suffice, provided it covers the previous finish. 8. On new work, one coat of primer and 2 coats finish material will be applied. The sides and all edges of exterior doors shall be primed within 3 days after being hung. 9. All paint application shall be in accordance with the mfg. recommendations. GENERAL “Paint” shall also mean varnish, lacquer, shellac, urethane finish or other material as specified on the work write-up. All paint shall be that which is intended for the purpose used, i.e., masonry paint on masonry, porch and deck enamel on steps and porches, rust-inhibitor paint on wrought iron, exterior, non chalking paint on wood trim, etc. Surfaces not scheduled for paint shall be protected, i.e., shrubbery, hardware, floors, roofing, screens, glass, etc.

Mold and mildew shall be removed and neutralized by washing with a solution of 2 oz. trisodium phosphate, 8 oz. sodium hypochloride (clorox) to 1 gal. of warm water. Rinse with clear water and allow to dry thoroughly before painting.

SECTION Xl FLOORS

A. HARDWOOD FLOORS

1. All broken, damaged or deteriorated flooring shall be replaced with lumber that matches the species, size and color of the adjacent flooring. The joints shall be staggered. Floors shall be sanded to a smooth surface, with the grain, and filled with filler recommended by the mfg. 2. Renail existing flooring as necessary to provide a sound floor. Apply one coat of sanding sealer and two coats of finish as called for on the work write-up. The finish may be gym finish varnish, polyurethane or other suitable finish. 3. All finish material shall be applied in accordance with mfg. instructions.

B. RESILIENT FLOORING

1. Linoleum shall be Armstrong or equal. Tile shall be vinyl, vinyl asbestos or rubber with a minimum thickness of 3/32”, and shall meet Federal specifications SS-T-312. 2. The color shall be selected by the owner. 3. Installation of all floor covering, including adhesive shall be in accordance with the mfg. recommendations. 4. Material shall be stored in original containers at not less than 70 degrees F for at least 24 hours immediately prior to installation. Maintain room temperature between 70 degrees F and 90 degrees F for 24 hours prior to installation and 48 hours after installation.


SECTION Xl continued 5. Border tile or linoleum shall fit within 1/16”of abutting surfaces. 6. Clean and wax as recommended by the mfg.

SECTION XII PLUMBING

A. PLUMBING FIXTURES, equipment and material shall comply with and be installed in accordance with current applicable plumbing code or the Georgia State Plumbing Code.

1. All vents protruding through the roof shall be properly flashed. 2. Valves shall be 150# brass with ends similar to fittings. Valves shall be provided at each fixture or each piece of equipment.

3. Unions shall be provided to permit removal of equipment without cutting pipe. 4. Gas pipe shall be black steel pipe installed in accordance with NFPA Standard No. 54. 5. Provide 125# brass gas stops where required.

B. WATER HEATER shall meet requirements of the Georgia State Energy Code, and be equal to the American Standard “Acroglass” standard, glass lined, complete with all controls and with a written 10 year tank warranty. The type (gas or electricity) and capacity will be given on the work write-up, or replacement will be with size and type required by number of bedrooms and baths.

1. An approved pressure-temperature relief valve with a 3/4” discharge line shall be provided.

C. PLUMBING FIXTURES which exist and are to remain shall be placed in good working order. 1. Missing or defective parts shall be replaced. 2. Fixtures shall be left in clean sanitary condition. 3. Fittings shall be chrome plated and supplies to each fixture shall be equipped with stop valves.

D. BATHROOM FIXTURES called for in the work write-up shall be: 1. Water closet, vitreous china, free standing, close coupled, closet combination with reverse trap, suspended rear shelf, tank cover, china or porcelain stud caps, complete tank fittings and supply stop valve and designed to use a maximum of 3,5 gal. per flush. 2. Lavatory, enameled cast iron, front overflow, acid resisting, complete with hanger, supply lines, P trap and trim. 3. Bath tub 5’ long, enameled steel with over rim bath filler, or fiberglass tub enclosure with shower rod. 4. New shower heads shall be designed to use a maximum of 3.0 gallons per min. @ 60 p.s.i.


SECTION XII continued

E. GENERAL PLUMBING system including sewers shall operate free of fouling and clogging and not have cross connections which permit contamination of water supply or back siphonage between fixtures. Waste lines shall be tied-in to an approved sewer system. Bath accessories shall include:

1. Medicine cabinet, minimum size, 12” x 18” with plate glass mirror (1) or plate glass mirror over 30” vanity. 2. Soap and Grab (1) 3. Toilet Paper Holder (1) 4. 18” Towel Bar (1) 5. 24” Towel Bar (1)

SECTION XIII

HEATING SYSTEM New heating system shall be Bryant, Luxaire or equivalent meeting requirements of Georgia State Energy Code. A 1 year warranty shall be provided. Installation shall be in accordance with City code requirements. The heating system shall be adequate to heat all rooms to a temperature of 70 degree F 3 feet above the floor when the outside temperature is 10 degrees F. Space heaters, floor furnaces and all other gas-fired fixtures shall be properly vented. “All work shall conform to requirements of Georgia State Energy and Heating & Air Conditioning Codes.”

SECTION XIV

ELECTRICAL

A. The minimum distribution service panel shall be 60 amps. For demands in excess of 20 kilowatts, a service panel in excess of 100 amps shall be installed.

1. All Electrical panels, wiring, fixtures and equipment shall be installed within the requirements of the National Electrical code (or City code). 2. Existing wiring, equipment or fixtures not to be used shall be disconnected and/or removed. Existing electrical devices and material in good condition and meeting code requirements may be left in service.

B. Light fixtures shall be installed by the contractor as required. The work write-up shall indicate which fixtures are to be replaced and shall stipulate the allowance for fixtures. The owner shall select the fixtures and shall pay any additional cost above the allowance.


SECTION XIV continued C. NOTE: It shall be the contractor’s responsibility to determine the additional wiring, outlets, panel size, etc., to conform to City code and his bid price shall include these costs:

1. The bathroom fixtures shall be controlled by a wall switch not readily accessible from the tub or shower. 2. Every habitable room shall have one overhead light fixture and two separate wall outlets, or three wall outlets, one of which is controlled by a wall switch.

SECTION XV

LANDSCAPING 1. ROUGH GRADING: - Fill material shall be free of debris or other detrimental material. All fill shall be compacted to a density that will avoid damaging settlement. Fill shall be placed when ground is frost free and weather is favorable. 2. TOP SOIL: shall be a minimum of 4 inches (compacted depth). Free of stones, debris, and other material detrimental to plants. The surface soil shall be compacted lightly to minimize settlement. Top soil shall be placed when ground is frost free and weather is favorable.

3. SEEDING: Seed quality shall be a minimum purity of 85%, minimum germination of 80% and weed content not exceeding a maximum of 1/2%. Seed mixture shall be not less that 85% (by weight) permanent grass and 15% (by weight) annual grass.

a. Application -- Rate of spread as recommended by the producer but not less than 4 pounds per 1,000 square feet. Roll with a light roller and water thoroughly with a fine spray, avoiding erosion of seed bed. Seeding shall be done when the ground is frost free and weather is favorable.

4. SODDING: Sod shall be fresh cut, taken from a thick stand of permanent lawn grass, reasonably free from weeds and coarse grass. It shall be at least one inch thick, uniform in thickness and cut in strips.

a. Application -- Lay sod in strips avoiding wide joints. Sodding shall be done when ground is frost free and weather is favorable.

5. FINISH GRADE: Minimum fall of protective slope around buildings shall be 2% for a minimum of 4 feet. Grades from 3 to 1 to 2 to 1 shall be sodded. Maximum slope shall be 2 to 1. Grading shall be accomplished to allow drainage of surface water away from buildings and off site.


SECTION XVI

TILE A. Ceramic wall tile shall be Mosaic standard grade or equal, 4 1/4” x 4 1/4” glazed with matching trim and accessories, unless otherwise specified. B. Floor tile shall be Mosaic or equal, 1” x 1/4” unglazed, Hexagon floor tile, or 4 1/4” x 4 1/4” unglazed floor tile unless otherwise specified. C. Tile shall be installed in accordance with mfg. recommendations including bedding agents, adhesives and grout.

1. Wall tile shall be installed in mortar or on water resistant wall board in accordance with mfg. instructions. 2. Ceramic tile floors installed on slab shall be with cement mortar according to ANSI A108.3. Ceramic tile floors installed on plywood base shall conform to ANSI A108.4. 3. Align joints in walls and follow horizontally and vertically throughout entire job. Layout work to minimize cut tile. “Average” out work throughout entire dimension. 4. Align joints in floor tile at right angle to each other and parallel to walls. 5. Provide all trim pieces required. 6. All surfaces shall be true, straight, flush and free from defective or discolored tile. 7. Grout, polish and clean tile according to mfg. instructions. Use of acid is not permitted. CARPET

A. All carpet and pad shall meet HUD FHA requirements and a written mfg. certification shall be submitted, or carpet shall be labeled per U.M. 44C.

1. Colors shall be selected and approved by the owner prior to installation. 2. Carpet shall not be installed until all interior work is completed. TERMITE TREATMENT

A. Where infestation of termites, borers or powder post beetles is determined, such infestation shall be eliminated by treating in accordance with the requirements of the State of Georgia, Pest Control Commission and damage shall be repaired. B. A certification by the exterminator shall include: The property is clear of all vermin infestation; should infestation occur within 1 year from the date of treatment, the premises shall be retreated at no cost to the owner; furthermore, should damage occur as a result of infestation during this period, the exterminator shall repair such damage at no cost to the owner.


EXHIBIT D

EQUAL EMPLOYMENT OPPORTUNITY

Federally assisted construction contracts, including contracts for demolition, alteration, extension, and repair, are required to include an equal employment opportunity clause under which the contractor agrees not to discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin; to make his nondiscrimination policy known to employees and applicants; and to include the prescribed equal. employment opportunity clause in certain subcontracts. A contract for an amount over $10,000 is subject to Executive Order 11246, and to the regulations of the Department of Labor and requires the inclusion of additional contract terms relating to the maintenance of records and the submission of reports that may be required.

Contracts subject to Executive Order 11246 includes the following Language: During the performance of this Contract, The Contractor agrees as follows: (a). The Contractor will not discriminate against any employee or applicant for employment because of race, creed, color, or national origin, and after October 13, 1968, because of race, color, religion, sex or national origin. The Contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, creed, color or national origin, and after October 13, 1968, without regard to race, color, religion, sex or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the Local Public Agency setting forth the provisions of this nondiscrimination clause. (b). The Contractor will, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, creed, color or national origin, and after October 13, 1968, without regard to race, color, religion, sex or national origin. (c). The Contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract for understanding, a notice, to be provided, advising the labor union or workers’ representative of the Contractor’s commitments under Section 202 of Executive Order 11246 of September 24, 1965; and shall post copies of the notice in conspicuous places available to all employees and applicants for employment. (d). The Contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. (e). The Contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor or the Secretary of Housing and Urban Development pursuant thereto and will permit access to his books, records, and accounts by the local Public Agency, the Secretary of Housing and Urban Development, and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.


EXHIBIT D

EQUAL EMPLOYMENT OPPORTUNITY continued

(f). In the event of the Contractor’s noncompliance with the nondiscrimination clauses of this Contract or with any of such rules, regulations, or orders, this Contract may be cancelled, terminated, or suspended in whole or in part and the Contractor may be declared ineligible for further Government Contracts or federally assisted construction contracts in accordance with procedures authorized in Executive order 11246 of September 24, 1965, or by rules, regulation, or order of the Secretary of Labor, or as otherwise provided by law. (g) The Contractor will include the provisions of paragraphs, A through G in every subcontractor purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The Contractor will take such action with respect to any subcontract or purchase order as the Local Public Agency or the Department of Housing and Urban Development may direct as a means of enforcing such provisions, including sanctions for noncompliance: Provided. However, that in the event the Contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the Local Public Agency or the Department of Housing and Urban Development, the Contractor may request the United States to enter into such litigation to protect the interests of the United States.


B. Definition LMMI for NSP: HUD will characterize aggregated households whose incomes do not exceed 120% of AMI as ‘‘low-, moderate-, and middle-income households,’’ abbreviated as LMMH. For the purposes of NSP CDBG only, an activity may meet the HERA low- and moderate-income national objective if the assisted activity: • Serves a limited clientele whose incomes are at or below 120% of AMI

(LMMC). • Provides or improves permanent residential structures that will be occupied

by a household whose income is at or below 120% of AMI (abbreviated as LMMH);

• Serves an area in which at least 51% of the residents have incomes at or below 120 percent of AMI (LMMA);

• Creates or retains jobs for persons whose household incomes are at or below 120% of AMI (LMMJ); or

2008 HUD Income Limits for Neighborhood Stabilization Program Atlanta Area Median Income (AMI) is $69,200

Family Size Very Low-Income

(50% of Median) Low Moderate Middle

Income(LMMI) (120% of Media)

1 Person Household $24,900

$59,800

2 Persons Household $28,500

$68,350


$76,900


$85,450


$92,300


$99,100


$105,950


$112,800

DeKalb NSP Application – Appendix B B-Page 1 of 4

Meeting the National Objective: Housing Activities: Providing or improving permanent residential structures that will be occupied by a household whose income is at or below 120% AMI (LMMH).

• Acquisition, Rehabilitation, Rental, Sale, Conversion, Construction of Housing Units

• Homeownership Assistance • Infrastructure for housing as part of redevelopment • All Units must be occupied by those meeting the low- and moderate-

income requirement. Limited Clientele Activities: Serving a limited clientele whose incomes are at or below 120 % of AMI (LMMC).

• Housing counseling for prospective purchasers/tenants • Public facilities such as emergency shelters, group homes

Area Benefit Activities: Benefiting all the residents of a primarily residential area in which at least 51% of the residents have incomes at or below 120% of AMI (LMMA).

• Grantees must identify the service area of each NSP-funded activity. • HUD will provide data on the percentage of low-, moderate- and middle

income persons, by census tracts and block groups. See http://www.huduser.org/publications/commdevl/nsp.html • Demolition, Acquisition, Lank Banks if maintenance and demolition also

take place • No use of the “upper quartile” provision for exception criteria communities.

Meeting the 50% of Area Median Income Requirement:

• 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


Definition from NSP Regulations

1. Abandoned. A home is abandoned when mortgage or tax foreclosure proceedings have been initiated for that property, no mortgage or tax payments have been made by the property owner for at least 90 days, AND the property has been vacant for at least 90 days.

2. Blighted structure. A structure is blighted when it exhibits objectively

determinable signs of deterioration sufficient to constitute a threat to human health, safety, and public welfare.

3. CDBG funds. CDBG funds means, in addition to the definition at 24 CFR

570.3, grant funds distributed under this notice.

4. Current market appraised value. The current market appraised value means the value of a foreclosed upon home or residential property that is established through an appraisal made in conformity with the appraisal requirements of the URA at 49 CFR 24.103 and completed within 60 days prior to an offer made for the property by a grantee, subrecipient, developer, or individual homebuyer.

5. Foreclosed. A property ‘‘has been foreclosed upon’’ at the point that,

under state or local law, the mortgage or tax foreclosure is complete. HUD generally will not consider a foreclosure to be complete until after the title for the property has been transferred from the former homeowner under some type of foreclosure proceeding or transfer in lieu of foreclosure, in accordance with state or local law.

6. Land bank. A land bank is governmental or nongovernmental nonprofit

entity established, at least in part, to assemble, temporarily manage, and dispose of vacant land for the purpose of stabilizing neighborhoods and encouraging re-use or redevelopment of urban property. For the purposes of the NSP program, a land bank will operate in a specific, defined geographic area. It will purchase properties that have been abandoned or foreclosed upon and maintain, assemble, facilitate redevelopment of, market, and dispose of the land-banked properties. If the land bank is a governmental entity, it may also maintain abandoned or foreclosed property that it does not own, provided it charges the owner of the property the full cost of the service or places a lien on the property for the full cost of the service.

7. Revenue for the purposes of section 2301(d)(4). Revenue has the

same meaning as program income, as defined at 24 CFR 570.500(a) with the modifications in this notice. Subrecipient. Subrecipient shall have the same meaning as at the first sentence of 24 CFR 570.500(c). This


includes any nonprofit organization (including a unit of general local government) that a state awards funds to.

8. Use for the purposes of section 2301(c)(1). Funds are used when they

are obligated by a state, unit of general local government, or any subrecipient thereof, for a specific NSP activity; for example, for acquisition of a specific property. Funds are obligated for an activity when orders are placed, contracts are awarded, services are received, and similar transactions have occurred that require payment by the state, unit of general local government, or subrecipient during the same or a future period. Note that funds are not obligated for an activity when subawards (e.g., grants to subrecipients or to units of local government) are made.


APPENDIX C - Glossary

Terms & Definitions: 1. Adjusted Monthly Income – Adjusted Monthly Income is a person’s annual

income less allowable HUD deductions. 2. Area Median Income (AMI) –The U.S. Department of Housing and Urban

Development Regional Economist calculates and publishes this median income data annually in the Federal Register. The median divides the income distribution into two equal parts: one-half of the cases falling below the median income and one-half above the median. The midpoint family income from a metropolitan area or non-metropolitan area county is calculated each year by the U.S. Department of Housing and Urban Development for use in determining eligibility for housing programs. Adjustments are made for family size and areas with usually high or low income-to-housing-cost relationships.

3. Continuum of Care – The DeKalb Continuum of Care is comprised of

community volunteers, agencies, and organizations that collaborate to organize and deliver housing and services to meet the specific needs of people who are homeless or “at risk” as they move to stable housing and maximum self-sufficiency. Its primary objective is to prevent and end homelessness.

4. DeKalb Enterprise Business Corporation (DEBCO) – DEBCO is a 501 (c)

3 Non-Profit Corporation governed by a volunteer board of directors that reflect the makeup of business development interests in our market area. They prioritize services to businesses owned by minorities and women; and to businesses located in selected economic revitalization corridors. DEBCO receives funding from DeKalb County Government, U.S. Department of Housing and Urban Development, U.S. Small Business Administration and the United Way of Metro-Atlanta. They provide the following services:

a. Assist in providing working capital b. Provide intermediate to long term financing c. Negotiate flexible interest rates d. Provide management and technical assistance

5. Disaster Recovery Grant Reporting System (DRGR) – The Disaster

Recovery Grant Reporting System was developed by HUD for grantees to identify activities, budgets and performance goals funded under their Action Plans and Amendments. Once an Action Plan is submitted and approved, grantees can submit quarterly reports summarizing obligations, expenditures, drawdowns, and accomplishments for all their activities on this system. For more information, please visit the HUD DRGR Website at:

DeKalb NSP Application –C C-Page 1 of 3

http://www.hud.gov/offices/cpd/communitydevelopment/programs/drsi/drgrs.cfm

6. Housing and Economic Recovery Act (HERA) – The Housing and Economic Recovery Act of 2008 (Pub.L. 110-289, 122 Stat. 2654, enacted July 30, 2008) designed primarily to address the subprime mortgage crisis, was passed by the United States Congress on July 24, 2008 and signed by President George W. Bush on July 30, 2008. It authorizes the Federal Housing Administration to guarantee up to $300 billion in new 30-year fixed rate mortgages for subprime borrowers if lenders write-down principal loan balances to 90 percent of current appraisal value. It's intended to restore confidence in Fannie Mae and Freddie Mac by strengthening regulations and injecting capital into the two large U.S. suppliers of mortgage funding. States will be authorized to refinance subprime loans using mortgage revenue bonds. It also establishes the Federal Housing Finance Agency (FHFA) out of the Federal Housing Finance Board (FHFB) and Office of Federal Housing Enterprise Oversight (OFHEO).

7. HOME Investment Partnership Program (Not a traditional acronym)

Provides formula grants to states and localities that communities use, often in partnership with local nonprofit groups to fund a wide range of activities. These activities consist of building, buying and rehabilitating affordable housing for rent or homeownership, or to provide direct rental assistance to low-income people.

8. Housing Choice Voucher – This is the federal government’s major

program for assisting very low- income families, the elderly and disabled to afford decent, safe and sanitary housing in the private market. Since housing assistance is provided on behalf of the individual or family, participants are able to find their own housing, including single family homes, town houses and apartments. The participant is free to choose any housing that meets the requirements of the program and is not limited to units located in subsidized housing projects. Housing Choice Vouchers are administered locally by public housing agencies (PHAs). The PHAs receive federal funds from the U.S. Department of Housing and Urban Development (HUD) to administer the voucher.

9. Land Bank – The purchase of land by a local agency for use or resale at

a later date. Banked lands have been used for the development of low-moderate-income housing, expansion or parks and the development of industrial and commercial centers.

10. Livable Centers Initiative (LCI) – A program offered by the Atlanta

Region Commission that encourages local jurisdictions to plan and




http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_public_laws&docid=f:publ289.110

http://en.wikipedia.org/wiki/United_States_Statutes_at_Large

http://en.wikipedia.org/wiki/Subprime_mortgage_crisis

http://en.wikipedia.org/wiki/Subprime_mortgage_crisis

http://en.wikipedia.org/wiki/United_States_Congress

http://en.wikipedia.org/wiki/July_24

http://en.wikipedia.org/wiki/2008

http://en.wikipedia.org/wiki/President_George_W._Bush

http://en.wikipedia.org/wiki/July_30

http://en.wikipedia.org/wiki/2008

http://en.wikipedia.org/wiki/Federal_Housing_Administration

http://en.wikipedia.org/wiki/Subprime

http://en.wikipedia.org/wiki/Fannie_Mae

http://en.wikipedia.org/wiki/Freddie_Mac

http://en.wikipedia.org/wiki/Federal_Housing_Finance_Agency

http://en.wikipedia.org/wiki/Federal_Housing_Finance_Board

http://en.wikipedia.org/wiki/Office_of_Federal_Housing_Enterprise_Oversight

http://en.wikipedia.org/wiki/Office_of_Federal_Housing_Enterprise_Oversight

implement strategies that link transportation improvements with land use development strategies to create sustainable, livable communities consistent with regional development policies.

11. Neighborhood Stabilization Program (NSP) - HUD’s new Neighborhood

Stabilization 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. The Neighborhood Stabilization Program (NSP) provides grants to every state and certain local communities to purchase foreclosed or abandoned homes and to rehabilitate, resell, or redevelop these homes in order to stabilize neighborhoods and stem the decline of house values of neighboring homes. The program is authorized under Title III of the Housing and Economic Recovery Act of 2008.

12. SuperNofa – Super Notice of Funding Availability. Each year, the U.S.

Department of Housing and Urban Development (HUD) issues a super Notice of Funding Availability (NOFA) for the Department’s Housing, Community Development, and Empowerment programs. This SuperNOFA announces the availability of HUD program funds covering 32 grant programs, including the Supportive Housing, Shelter Plus Care, and Section 8 Moderate Rehabilitation Single Room Occupancy programs; the Housing Opportunities for Homeless Persons with AIDS (HOPWA); Section 202 Supportive Housing for the Elderly; and Section 811 Supportive Housing for persons with Disabilities.


http://www.hud.gov/utilities/intercept.cfm?/offices/cpd/communitydevelopment/programs/neighborhoodspg/hera2008.pdf

http://www.hud.gov/utilities/intercept.cfm?/offices/cpd/communitydevelopment/programs/neighborhoodspg/hera2008.pdf

APPENDIX D - PUBLIC INFORMATION MEETING SUMMARY

NEIGHBORHOOD STABILIZATION PROGRAM (NSP) DeKalb County Community Development Department

October 21, 2008 6:30 P.M.

Maloof Auditorium

Facilitator Chris H. Morris, Director, Community Development Department.

Literature/Handouts The following items were provided as handouts and literature to the Public Information Meeting participants; 1) NSP Timeline 2) NSP Program Overview 3) NSP Frequently Asked Questions 4) Public Comment Form 5) Flyer for Georgia REO Forum for Industry & Homebuyer Sessions

Attendees Approximately 81 DeKalb County Citizens and Staff Members attended the meeting (Attendance Sheets attached).

Introduction & Purpose of the Public Hearing Chris Morris, Director of the DeKalb County Community Development Department, opened the meeting with a welcome. Chris explained that DeKalb County has been allocated by the U.S. Department of Housing and Urban Development (HUD) appx. $18.5 million to address the foreclosure problem that the County is currently experiencing. Within the State of Georgia, DeKalb County has the largest allocation of local governments because of the magnitude of the foreclosure problem in our County. The funds have to be spent in the areas of greatest need. Chris shared with the group the maps that outline the areas of greatest need are based on three variables: the greatest percentage of home foreclosures; the highest percentage of homes financed by subprime mortgage related loans; and the areas that have high mortgage default or delinquencies. Chris also explained that there are other neighborhood factors that will impact the local allocation of funds to the areas of greatest needs. Chris continued with an overview of the purpose of the Neighborhood Stabilization Program. She emphasized that the purpose of the program is to “Stabilize Neighborhoods” by purchasing, selling and renovating blighted and foreclosed properties. She also pointed out that these funds cannot be used to help pay the mortgage for persons who are about to be foreclosed on. She said that there has been talk in Washington to help people who are in those situations with other initiatives. Chris also emphasized that the Office of the Inspector General and the FBI have already announced that they plan to investigate

DeKalb NSP Application Appendix D D-Page 1 of 4

governmental entities that receive funds thorough this program to ensure that no fraud or abuse takes place. Chris explained that the County has until December 1, 2008 to submit a plan to HUD on how we will use the allocation. Once the plan has been approved, the County will have 18 months to spend the funds. Chris reiterated that we will work with our partners that have capacity to administer many aspects of this program for us. Some of the partners include but are not limited to the following: Atlanta Neighborhood Development Partnership, Inc., Habitat for Humanity-DeKalb, DeKalb Housing Authority, and Decatur Housing Authority in conjunction with local municipalities, DEBCO, and Atlanta Development Authority. Due to the complexity of the HUD regulations, this program must be administered by non-profits that have the capacity to handle all the paperwork and documentation requirements. Public Comments Chris Morris facilitated the Public Comment Session of the meeting and encouraged the attendees to orally present their comments and/or complete the Public Comment Forms that were provided at the meeting. Below are the comments that were received.

1) Who will pay for compliance of the NSP regulations (with a 15 year affordability requirement)?

2) Does the State Housing Programs cover DeKalb County?

3) The County would benefit from more demolitions due to the fact that

vacant and dilapidated homes attract crime, squatters, blight and deteriorating home values. FHA requirements add to the problem because FHA homes can not be sold unless the improvements have been made. In addition, the banks are not willing to do the repairs and the banks are not organized enough to handle volume of foreclosures.

4) Some attendees agreed they would like to see more money in

demolition. Others expressed the need for more renovation versus more demolition.

5) Many homes sold are fixer-uppers and they all do not need to be torn

down. $30k - $40k may be all some homes need invested to make them sellable.

6) The program should focus on houses that do not need major

rehabilitation. The repairs that are made should be reasonable.

7) Who are the potential buyers?


8) We need to look at impact on the community. We need to look at implementing demolition in areas that it will have a greater impact (i.e., large abandoned apartment building and commercial sites).

9) Look to see if people in homeless shelters can be a part of the NSP

program.

10) Will the 203-K program come into place? Why not allow 3% sweat equity before purchasing FHA homes?

11) Look at single and multi-family redevelopment for a greater impact.

12) Have we established contact with the State to leverage NSP funds that

they will receive? Should the public contact their State Representatives to lobby for these funds?

13) Can we look at installing parks, green space or common areas for

housing sites that have been demolished? Once a property is demolished we may not need to rebuild.

14) How will we make sure the houses are occupied by real homeowners

and not just purchased to be flipped?

15) There are over 200 vacant homes in the Eastlake community. Will this be an area you will start in first?

16) How will the rental component of the program be implemented? How

will renters be screened? 17) Will buyers be allowed to get their own lenders? 8 hours of counseling

is troubling considering the problem. There should be more counseling.

18) Is there a cap on the amount a home can be purchased?

19) Central St. Louis, Mo. has a best practice example of a program where

people are able to purchase a home from the City for $1 with a soft lean placed on it for 10 years and the buyer is required to put in $10,000 of sweat equity in the property. When people have something invested in the property they will appreciate it more. Home values in this area have increased substantially.

20) Is there a way for homeowners associations to have input with the non-

profits we partner with in implementing programs?


21) Can homeowners associations earn any of the 10% administrative funds allocated for this program?

22) Is there a way that communities can market their neighborhoods for

the Neighborhood Stabilization Program?

23) There is a problem with flipping. Are there restrictions in place to manage realtors to make sure they do the right thing?

24) We are concerned about people that have already lost their homes.

What are we doing to help those people? I would like to see some of this money to help people who have already lost their home in a Second Chance or Exchange Program.

25) How do you determine the level of quality for rehabilitation? Will the

rehab be substantial rehab or just regular rehab in the property? How much money will be put into a home for repairs?

26) What will you do about a house that may be overpriced for the market

after the rehabilitation is complete?

27) Who can apply for grants? Are there set-asides for CHDOs? Will this program coincide with the Tax Credit deadlines?

28) Will we consider purchasing pre-foreclosures on a short-sale basis?

29) Is there a consideration for lease-purchase of foreclosed properties?

Ms. Morris responded to many of the questions as they were asked. She encouraged everyone to submit the written comments and let us know if they are part of an active neighborhood association that wanted to be involved with the program.

Written Comments Written comments received at the meeting are attached. Chris Morris concluded the Public Hearing at approximately 8:15 PM by thanking all the attendees for coming and reminded them to look for the Plan of Action that will be on the County’s website from October 30 through November 14. NOTE: Names and addresses were removed for privacy protection.


Appendix F - Summary of Citizen Comments On October 30th the County published a public notice to inform the public that the County is proposing a substantial amendment to the 2008-2012 Consolidated Plan that will include the Neighborhood Stabilization Program Action Plan. The notice invited the public to review the Plan of Action for the Neighborhood Stabilization Program from October 30, 2008 – November 14, 2008 on the DeKalb County website, the County Regional library, and at the Community Development Office. Comments were encouraged to be emailed or faxed to the Community Development Office by November 14th. The following are a summary of the written comments that were received either by e-mail, or mail.

• The East Lake Terrace Neighborhood Association (ELTNA) located in unincorporated DeKalb County is a very diverse community that has had a problem over the past seven years with mortgage fraud and flipping that has left many homes vacant or abandoned. This had brought a large number of squatters to move in the homes and create a dangerous environment. The ELTNA was organized in 2002 for the purpose to help clean up the problems. The neighborhood is located in the zip code identified in the NSP with the highest level of problems. The ELTNA would like to work with DeKalb County to improve the neighborhood and assist in the implementation of the NSP. We have provided a list of abandoned and foreclosed homes for your consideration.

• The Hidden Hills Civic Association would like to be involved in the

implementation of the NSP Plan. Resources and funds should be allocated for neighborhood associations to be involved. Suggestions include hire a person who will work with the neighborhood associations. Allocate administrative funds to neighborhoods that meet the criteria outlined to enhance project success. Include association representatives on a board or panel to monitor the progress of the program.

• As a real estate company and resident of DeKalb County Trinity Realty, LLC

would like to be a part of the team to find solutions for the foreclosure problem. Our agents know the distressed properties and the feelings of buyers and agents.

• Pleas consider allocating funds to help those who have already foreclosed. • Does DeKalb County plan to include energy –efficiency and green building

requirements in the plan? • How can citizens bid on the projects for new construction or qualify for the

program to purchase and renovate properties?

DeKalb NSP Application - Appendix F F-Page 1of 2

• The number of vacant and foreclosed homes in Belvedere neighborhood jeopardizes the neighborhood’s integrity and most importantly a threat to the security of families in the community. Especially unsettling is the number of vacant and unsecured homes that directly border Knollwood Elementary School. This poses a direct hazard to the school and specifically the children who walk to and from school.

• The Windsor-Mede Neighborhood Association located near Thompson Mill

Road and Miller Road in Lithonia, is excited about working with the DeKalb County Community Development Department (Neighborhood Stabilization Program) on issues related to burned properties and foreclosed properties in and near the community.

DeKalb NSP Application - Appendix F F-Page 2of 2

CERTIFICATIONS (1) Affirmatively furthering fair housing. The jurisdiction will affirmatively further fair housing, which means that it will conduct an analysis to identify impediments to fair housing choice within the jurisdiction, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting the analysis and actions in this regard. (2) Anti-lobbying. The jurisdiction will comply with restrictions on lobbying required by 24 CFR part 87, together with disclosure forms, if required by that part. (3) Authority of Jurisdiction. The jurisdiction possesses the legal authority to carry out the programs for which it is seeking funding, in accordance with applicable HUD regulations and other program requirements. (4) Consistency with Plan. The housing activities to be undertaken with NSP funds are consistent with its consolidated plan, which means that NSP funds will be used to meet the congressionally identified needs of abandoned and foreclosed homes in the targeted area set forth in the grantee’s substantial amendment. (5) Acquisition and relocation. The jurisdiction will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (42 U.S.C. 4601), and implementing regulations at 49 CFR part 24, except as those provisions are modified by the Notice for the NSP program published by HUD. (6) Section 3. The jurisdiction will comply with section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u), and implementing regulations at 24 CFR part 135. (7) Citizen Participation. The jurisdiction is in full compliance and following a detailed citizen participation plan that satisfies the requirements of Sections 24 CFR 91.105 or 91.115, as modified by NSP requirements. (8) Following Plan. The jurisdiction is following a current consolidated plan (or Comprehensive Housing Affordability Strategy) that has been approved by HUD. (9) Use of funds in 18 months. The jurisdiction will comply with Title III of Division B of the Housing and Economic Recovery Act of 2008 by using, as defined in the NSP Notice, all of its grant funds within 18 months of receipt of the grant. (10) Use NSP funds ≤ 120 of AMI. The jurisdiction will comply with the requirement that all of the NSP funds made available to it will be used with respect to individuals and families whose incomes do not exceed 120 percent of area median income. (11) Assessments. The jurisdiction will not attempt to recover any capital costs of public improvements assisted with CDBG funds, including Section 108 loan guaranteed funds, by

assessing any amount against properties owned and occupied by persons of low- and moderate-income, including any fee charged or assessment made as a condition of obtaining access to such public improvements. However, if NSP funds are used to pay the proportion of a fee or assessment attributable to the capital costs of public improvements (assisted in part with NSP funds) financed from other revenue sources, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. In addition, with respect to properties owned and occupied by moderate-income (but not low-income) families, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than NSP funds if the jurisdiction certifies that it lacks NSP or CDBG funds to cover the assessment. (12) Excessive Force. The jurisdiction certifies that it has adopted and is enforcing: (1) a policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations; and (2) a policy of enforcing applicable State and local laws against physically barring entrance to or exit from, a facility or location that is the subject of such non-violent civil rights demonstrations within its jurisdiction.

(13) Compliance with anti-discrimination laws. The NSP grant will be conducted and administered in conformity with title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d), the Fair Housing Act (42 U.S.C. 3601-3619), and implementing regulations. (14) Compliance with lead-based paint procedures. The activities concerning lead-based paint will comply with the requirements of part 35, subparts A, B, J, K, and R of this title. (15) Compliance with laws. The jurisdiction will comply with applicable laws. _________________________________ _____________ Signature/Authorized Official Date ___________________ Title

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): DeKalb County_______ Lead Agency: Dekalb County Jurisdiction Web Address: www.co.dekalb.ga.us (URL where NSP Substantial Amendment materials are posted)

NSP Contact Person: Chris H. Morris Address: 1807 Candler Road Decatur, GA 30032 Telephone: 404-286-3308 Fax: 404-286-3337 Email: [email protected]

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 2-10. 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 11-16. 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 17_.

• a definition of “affordable rents,” Yes No . Verification found on page 17-18_.

• a description of how the grantee will ensure continued affordability for NSP assisted housing, Yes No . Verification found on page 18-20_.

• a description of housing rehabilitation standards that will apply to NSP assisted

activities? Yes No . Verification found on page 20 and Appendix A.

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 21_.

• 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 21_.

Amount budgeted = $4,700,000

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 22__.

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 22__.

• 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 22 _.

• 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 22_.

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 22_.

Is there a summary of citizen comments included in the final amendment? Yes No Verification found on page 22 and Appendix

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 page 23, 29, 36, 40, 43.

• correlated eligible activity under CDBG,

Yes No . Verification found on page 23, 29, 36, 40, 43.

• the areas of greatest need addressed by the activity or activities, Yes No . Verification found on page 2–10, 23, 29, 37, 40, 43-45.

• expected benefit to income-qualified persons or households or areas,

Yes No . Verification found on page 23, 29, 36, 40, 43. • 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 page 15, 26, 31, 34. • appropriate performance measures for the activity,

Yes No . Verification found on page 25, 30, 38, 41, 45. • amount of funds budgeted for the activity,

Yes No . Verification found on page 15, 26, 31, 38, 41, 46.

• the name, location and contact information for the entity that will carry out the activity, Yes No . Verification found on page 27, 32, 38, 41, 46.

• expected start and end dates of the activity?

Yes No . Verification found on page 27,32, 39, 42, 46.

• If the activity includes acquisition of real property, the discount required for acquisition of foreclosed upon properties, Yes No . Verification found on page 32, 39.

• If the activity provides financing, the range of interest rates (if any), Yes No . Verification found on page 28_.

• If the activity provides housing, duration or term of assistance, Yes No . Verification found on page 28, 33_.

• tenure of beneficiaries (e.g., rental or homeownership),

Yes No . Verification found on page 28, 33.

• does it ensure continued affordability? Yes No . Verification found on page 28, 33-35.

H. CERTIFICATIONS The following certifications are complete and accurate: (1) Affirmatively furthering fair housing Yes No (2) Anti-lobbying Yes No (3) Authority of Jurisdiction Yes No (4) Consistency with Plan Yes No (5) Acquisition and relocation Yes No (6) Section 3 Yes No (7) Citizen Participation Yes No (8) Following Plan Yes No (9) 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

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