California Department of Housing and Community Development

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Californias Road to Recovery July 23, 2009

• California Department of Housing and Community
  Development
• Chris Westlake, Deputy Director, Division of
  Financial Assistance

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American Recovery and Reinvestment Act of 2009

• Community Development Block Grant Program
• Homelessness Prevention Fund
• Neighborhood Stabilization Program
• Tax Credit Assistance Program
• Public Capital Housing Capital Fund
• Lead Hazard Reduction Grants
• Project Based Rental Assistance
• Native American and Native Hawaiian Housing Grants

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Community Development Block Grant Program (CDBG-R)

• 1 Billion Nationwide
• 123.3 Million California
• 10.6 Million - HCD

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CDBG-R

• The CDBG program allows local governments to
  undertake a wide range of activities intended to
  create suitable living environments, provide
  decent affordable housing and create economic
  opportunities. Priority will be given to
  projects that can award contracts based on bids
  within 120 days of the grant agreement.

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CDBG-R

• Deadline to spend funds is 9/30/12
• Avoid projects w/unpredictable timelines
• Shovel ready as a requirement might be moot but
  still a good idea
• Dont co-mingle CDBG-R and CDBG
• Use of IDIS Quarterly reports required
• No Program Income

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Homelessness Prevention Fund

• 1.5 Billion Nationwide
• 189.1 Million California
• 44.4 Million - HCD

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Homelessness Prevention Fund

• The Homelessness Prevention Fund will provide
  financial assistance and services to prevent
  individuals and families from becoming homeless
  and help those who are experiencing homelessness
  to be quickly re-housed and stabilized.

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Eligible HPRP Activities

• Financial assistance
• Housing relocation stabilization services
• Data collection evaluation

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What HPRP Does Not Allow

• No mortgage assistance
• No legal/other fees associated with retaining
  homeowners housing
• Social/supportive services not related to housing
  are not eligible - ineligible

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HPRP Financial Assistance

• Short term 3 months
• Med-term 4 -18
• gt3 mos 1/4ly evaluation
• Portion of/100/graduatedlt oer time
• 18 mos max assistance
• Assist renters or homeowners about to become
  homeless
• Utilities, moving costs, deposits, rent in a new
  unit, storage fees

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HPRP Housing Relocation Stabilization

• Case management
• Outreach engagement
• Housing search placement
• Legal services
• Credit repair

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HPRP Data Collection Evaluation

• Data collection evaluation
• HMIS system or equivalent
• Cannot supplement existing HMIS systems

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Deadlines for HPRP

• Must be obligated by 9-30-09
• Expenditure
• 60 within 2 years from signed HUD agreement
• 100 within 3 years of signed agreement

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HCD NOFA for HPRP

• Released on July 11, 2009
• Approximately 42 Million
• Due August 6, 2009
• Documents for Exhibits A, B, C and L due no later
  than August 27, 2009
• Staff Contact
• 916-445-0845 or homeless_at_hcd.ca.gov

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HPRP Major Point Categories
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Top 4 Categories

• A. Applicant Capability (90 Points)
• Years serving the Homeless and at Risk Population
• Currently providing Homeless Prevention
  activities
• Service area is well defined
• Certificate(s) of Local Approval
• Aligned with 10-year Plan and/or Continuum of
  Care
• HMIS or comparable data collection system
• Experience operating a rental assistance program
• B. Services (75 Points)
• Number of services provided
• Financial Assistance
• Housing Relocation and Stabilization
• Data Collection and Evaluation
• Homeless Prevention Program
• Rapid Re-Housing Program

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Top 4 Categories cont.

• C. Outreach and Marketing (100 Points)
• Identified Local Need
• Outreach Plan
• HUD Targeting 50 or less of Area Median Income
• State Targeting 10 - 30 Area Median Income
• Marketing Plan
• Utilization of CalWORKS homeless assistance
• General Assistance caseload
• Identification of homeless count
• Utilization of waiting lists for subsidized
  housing emergency shelters
• D. Fiscal Management (60 Points)
• EHAP grant management (within past 3 years)
• FESG grant management (within past 3 years)
• Other State or Federal grant management
• No Audit Findings
• Identifiable Estimated Drawdown Schedule
• Individualized Housing and Service Plan
• Positive Net Worth
• Working Capital

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Eligible Activities in HCD NOFA

• A. Financial Assistance - Limited to 56 of
  total grant amount
• Short term rent
• Medium term rent
• Security deposits
• Utility deposits
• Utility payments
• Moving costs
• Credit repair
• Motel/hotel vouchers
• B. Housing Relocation and Stabilization Services
  - Limited to 32 of total grant amount
• Case management
• Outreach and engagement
• Legal services
• Credit repair
• C. Data Collection/Evaluation - Limited to 11
  of total grant amount
• D. Grant Administration - Limited to 1 of the
  grant amount

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Neighborhood Stabilization Program

• 2 Billion Nationwide
• ???? Million California
• 21.7 Million HCD (Applied)

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NSP2

• Round two of NSP is competitive grants to address
  home foreclosure and abandonment and for the
  provision of capacity building and support for
  NSP grantees. NSP grantees can be States,
  Localities, Non-Profits and combinations of
  Non-Profits and For-Profit.

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Eligible Use
Eligible Activities

• As an activity delivery cost for an eligible
  activity (designing setting it up)
• Financing of an NSP eligible activity, to carry
  out that activity, is eligible as part of that
  activity

1. Establish financing mechanisms for purchase
redevelopment of foreclosed upon homes
residential properties
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Eligible Use
Eligible Activities

• Acquisition
• Disposition
• Relocation
• Direct homeownership assistance
• Eligible rehabilitation and preservation
  activities for homes and other residential
  properties
• Housing counseling for those seeking to take part
  in the activity

2. Purchase and rehabilitate homes and
residential properties that have been abandoned
or foreclosed upon, in order to sell, rent, or
redevelop such homes and properties
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Eligible Use
Eligible Activities

• Acquisition
• Disposition (includes maintenance)

3. Establish land banks for homes that have been
foreclosed upon
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Eligible Use
Eligible Activities
Clearance, for blighted structures only
4. Demolish blighted structures
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Eligible Activities
Eligible Use

• Acquisition
• Disposition
• Public facilities and improvements
• Housing Counseling Public Services (limited to
  prospective purchasers or tenants of redeveloped
  properties)
• Relocation
• New housing construction
• Direct homeownership assistance

5. Redevelop demolished or vacant properties
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NSP2

• You must have capacity
• 75 units worth of eligible activities
• Need foreclosure or foreclosure/vacancy
• Index in notice
• Online NSP Need Calculation Tool
• Looks at either of foreclosures OR
  combination of estimated foreclosure rate with
  vacancy rate
• Challenging criteria for many SOCAL grantees

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NSP2 Contd.

• The Six Factors w/o sub-factors
• Need/extent of problem 40 pts
• Capacity/relevant staff 40 pts
• Soundness of Approach 45 points
• Leveraging 10 points
• Energy efficiency/sustainability 10 pts
• Neighborhood transformation 5 pts

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NSP Challenges

• Wont assist individuals in foreclosure
• obligated within 18 months
• Spent within 4 years
• 75 to those at or below 120 AMI
• 25 of total allocation must go to those at or
  below 50 AMI
• 10 available for administration
• Properties must be bought at discount of CMAV
  1
• Relocation (URA) applies vacant properties a
  plus
• Advance notice of OIG interest/scrutiny
• FBI real estate fraud unit

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NSP 1 HUD Direct

• Jurisdiction NSP Allocation
• CALIFORNIA STATE PROGRAM 145,071,506
• ALAMEDA COUNTY 2,126,927
• ANTIOCH 4,049,228
• CONTRA COSTA COUNTY 6,019,051
• OAKLAND 8,250,668
• RICHMOND 3,346,105
• SAN JOSE 5,628,283
• VALLEJO 2,657,861
• BAY AREA Subtotal 32,078,123
• TOTAL CA 529,601,773

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NSP 1 HCD SubGrantees

• Jurisdiction HCD/NSP Allocation
• Fairfield City, Solano County 2,371,335
• Pittsburg City, Contra Costa County 1,718,486
• Hayward City, Alameda County 1,554,489
• Concord City, Contra Costa County 1,159,124
• Vacaville City, Solano County 1,101,157
• BAY AREA Subtotal 7,904,591
• TOTAL ALLOCATION Tier 1 44,621,263

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NSP 1 HCD SubGrantees

• Jurisdiction HCD/NSP Allocation
• Alameda County (6) 2,344,060
• Santa Clara County (4) 1,023,100
• Solano County (5) 1,902,442
• Sonoma County (3) 1,865,047
• BAY AREA Subtotal 7,134,649
• TOTAL ALLOCATION Tier 2 55,019,955

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NSP 1 Rental NOFA

• Approximately 36 million
• Released next week
• Eligible jurisdictions

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Tax Credit Assistance Program

• 2.25 Billion Nationwide
• 325.8 Million California

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Tax Credit Assistance Program

• Gap financing for projects awarded low income
  housing tax credits in federal fiscal years 2007,
  2008, or 2009 are eligible for funding, but must
  give priority to projects that are expected to be
  completed by February 2012.

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Transparency Accountability

• http//recovery.ca.gov/

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For More Information

• Department of Housing and
• Community Development
• www.hcd.ca.gov
• cwestlake_at_hcd.ca.gov
• [phone]