FFY2000 INTERIM CONSOLIDATED PLAN OF THE STATE OF GEORGIA Roy E. Barnes Governor PREPARED BY GEORGIA DEPARTMENT OF COMMUNITY AFFAIRS Jim Higdon, Commissioner FFY 2000 INTERIM CONSOLIDATED PLAN OF THE STATE OF GEORGIA Roy E. Barnes Governor Prepared by: Georgia Department of Community Affairs Jim Higdon, Commissioner Contact Persons: Georgia Department of Community Affairs 60 Executive Park South, N.E. Atlanta, GA 30329-2231 www.dca.state.ga.us Carolyn Morgan (404) 679-5293 Don Watt (404) 679-0660 Rick Huber (404) 679-3174 Phillippa Lewis Moss (404) 679-4945 An Equal Opportunity Employer EXECUTIVE SUMMARY STATE OF GEORGIA INTERIM FIVE YEAR CONSOLIDATED PLAN July 1, 2000 - June 30, 2005 Roy E. Barnes Governor Prepared by: Georgia Department of Community Affairs Jim Higdon, Commissioner May 2000 CITIZENS SUMMARY The State of Georgia Consolidated Plan describes how State, local, private and federal resources will be used to increase the supply of affordable housing for low and moderate income Georgians, establish and maintain a suitable living environment, and expand economic opportunities for its citizens. The plan focuses on the use of funds from HUD's four consolidated formula programs - Community Development Block Grant (CDBG), HOME Investment Partnership (HOME), Emergency Shelter Grant (ESG), and Housing Opportunity for Persons with AIDS (HOPWA) - to meet the affordable housing and community development needs of Georgia. The document updates the state's assessment of the housing needs of low and moderate income Georgians; provides a five-year Strategic Plan outlining priorities, objectives and the investment of resources to meet these goals; and includes an Action Plan for use of FFY2000 consolidated formula funds to meet its identified priorities and objectives during SFY2001 (July 1, 2000 June 30, 2001). In anticipation of updated Census 2000 information, this plan is considered an Interim plan and will be updated with new data when available. Citizen participation is an integral part of the consolidated planning process. While preparing the State's updated Consolidated Plan, input on Georgia's housing and community development needs was received at a public hearing held at four locations Atlanta, Savannah, Macon and Albany. In accordance with the State's Citizen Participation Plan, the draft Action Plan was also made available for public review for a thirty-day period beginning April 12, 2000. All public comments received through the citizen participation process have been incorporated into the final Consolidated Plan and are included for review in Appendices C and D of this document. The Georgia Department of Community Affairs will serve as the lead agency in the State's implementation of the Consolidated Plan for SFY2001. STATE PROFILE Estimated Census figures indicate that approximately 7.8 million people reside in Georgia, an increase of 8% since 1995 and 20% since 1990. During the 1980's Georgia's population grew by over one million persons. During the 1990's, the population of Georgia grew by almost 2% every year and the state is one of the fastest growing in the nation. This trend is expected to continue as Georgia is projected to have the fourth largest net increase in population between 1995 and 2025. Georgia's recent growth has been concentrated in the metropolitan areas that experienced a 15.8% increase between 1990 and 1996. In contrast, Georgia's rural areas grew by only 8.9% during the same time. The Atlanta MSA has a growth rate that is nearly two-thirds greater than the other MSAs in Georgia and contains three counties that are ranked among the top ten fastest growing counties in the nation (Forsyth, Henry, and Paulding). Migration from other parts of the country has tapered off somewhat with FFY2000 Consolidated Plan for the State of Georgia: Executive Summary 1 an almost 2% higher share of the population growth in the Atlanta MSA coming from within the state in 1999. HOUSING AND COMMUNITY DEVELOPMENT NEEDS HOUSING MARKET CONDITIONS The housing market, in terms of home sales and homeownership, has been on the rise nationwide for the last several years. In 1999 records were set in both of these areas. HUD reports that the Atlanta area was the "nation's busiest housing market" in 1999. Authorized building permits in the Atlanta area increased 5% from 1998. Building permits for multifamily dwellings in 1999 increased 7% from the prior year. Atlanta's housing market remains relatively affordable compared to the average metropolitan housing market in the nation. Single family units continue to be the most prevalent type of construction for the state of Georgia. In 1997, 63% of the new construction permits issued were for single family units, 16% were for multifamily units, and 21% of the new units were manufactured homes. Compared to census data, the 1997 single family unit percentage is 2% less than the average housing type in Georgia during 1990. However, the same comparison of manufactured housing shows almost twice the share in 1997. Private housing developers in the state's slow growth regions may experience difficulties or lack the necessary financial incentive to construct housing units with conventional financing. In Georgia's growth regions, continued public financial assistance is necessary to help maintain affordable housing. Needed incentives range from housing vouchers for low income tenants to financial subsidies paid directly to developers to construct affordable housing. HOUSING STRUCTURAL CONDITIONS Census figures do not provide information by state on the structural condition of housing units and implementation of such an analysis at the state level is infeasible. Most counties have incorporated a housing element into their state-mandated comprehensive planning effort. As these plans are aggregated into regional plans, the information may lead to a more detailed analysis when the five year Consolidated Plan is revised. The age of a housing structure is often used as a proxy for the condition of an area's housing stock. Recognizing the limitation that no information is provided on the maintenance of the structure, age does provide some measure of housing condition. Approximately 14% of all housing units in Georgia were constructed prior to 1950. The average structure in Georgia was built between 1970 and 1979. Housing in nonmetropolitan areas is generally older than in the state's urban counties. 2 FFY2000 Consolidated Plan for the State of Georgia: Executive Summary HOUSING NEEDS OF GEORGIANS Regardless of tenure, income or household size, the most common problem affecting all households is cost burden. One in every four households pays at least 30% of their income for housing. Approximately 39% of these cost burdened households and 10% of all households are severely cost burdened, devoting at least 50% of their income on housing costs. Renters are more affected by housing problems than homeowners. 41% of all renters, compared to only 22% of all homeowners, have at least one housing problem. 40% of all Georgia households are of low or moderate income. Housing problems affect 75% of all extremely low income households. 63% of all elderly households are of low or moderate income, with the largest concentration in the extremely low income range. 29% of all small family households are of low or moderate income. Cost burden is the most significant problem affecting both elderly and small family households. 40% of all large family households are of low or moderate income. Overcrowding is the most significant concern of this household type. THE NEEDS OF HOMELESS GEORGIANS No universally accepted enumeration of homelessness exists at the national, state or local level. Through the process of developing the State of Georgia's Continuum of Care for the Balance of the State, efforts to estimate homelessness in Georgia indicate that there are approximately 50,000 - 75,000 homeless individuals statewide annually. An estimated 40% of the homeless are found in the Atlanta MSA, 40% in the state's other metropolitan counties, and the remaining 20% located in rural areas. A report released for Research Atlanta estimates the "average night" homeless population in metropolitan Atlanta at approximately 11,000. Important subsets of the homeless population with specific and differing needs include victims of domestic violence, children and youth, substance abusers, persons with AIDS-related diseases, and individuals with severe mental illness. DCA funded programs across the state made available a total of 5,498 beds in 19992000, with approximately 3,299 of these beds located within the Atlanta Metropolitan Statistical Area (MSA). Many bed spaces are targeted for specific groups, further reducing the number of bed spaces available to the entire homeless population. A wide continuum of supportive services is required to effectively facilitate a successful transition from homelessness into permanent and stable housing. BARRIERS TO AFFORDABLE HOUSING Insufficient income is the single largest barrier to affordable housing. Other obstacles include high land and construction costs; rising interest rates; low fair market rents established by HUD; appraisal values on properties that are often lower than FFY2000 Consolidated Plan for the State of Georgia: Executive Summary 3 rehabilitation costs; discriminatory behaviors; and Not In My Back Yard (NIMBY) reactions by citizens and subsequent policies of local governments that discourage and prohibit development of affordable housing opportunities in certain neighborhoods. LEAD-BASED PAINT Estimates based on the age of housing indicate that over 800,000 housing units occupied by low and moderate income families in Georgia may contain lead-based paint. Blood lead levels greater than 10 ug/dl of whole blood was established by the federal Centers for Disease Control (CDC) in 1994 as an intervention level or a point where adverse health effects have been documented. Since 1994, more than 1,000 children have been identified with a confirmed case of lead poisoning. At of the end of 1996, only one Georgia county had over 350 cases, only three counties had over 100, the rest were under 100 cases per county. COMMUNITY DEVELOPMENT NEEDS While predicting the project types to be funded is difficult due to the State's emphasis on meeting locally determined needs, an analysis of the FFY1999 Regular Annual CDBG Competition sheds some light on the state's community development needs. The State received 145 requests totaling $65.9 million for public facility projects and 19 requests totaling $9.9 million for activities including housing rehabilitation, economic development and multi-activities. Project types included water/sewer, drainage and street improvements; centers for the handicapped, child care, senior, health, mental health, or to meet multiple purposes; and projects to improve handicapped accessibility of buildings. Obstacles to meeting these needs include limited funding availability and the lack of local or regional capacity to develop competitive CDBG applications or to administer projects. This need seems especially acute for economic development projects and activities involving the abatement of lead paint hazards. To address this obstacle, the State sets aside CDBG funds for technical assistance activities. HOUSING AND COMMUNITY DEVELOPMENT STRATEGIC PLAN VISION FOR CHANGE Over five years the State anticipates providing assistance to put over 50,000 extremely low, low and moderate income households in affordable housing free of overcrowded, structurally substandard conditions, with supportive services where appropriate for populations with special need. Community Housing Development Organizations (CHDOs) and other nonprofits play an increasingly important role in the development and rehabilitation of affordable housing throughout Georgia. 4 FFY2000 Consolidated Plan for the State of Georgia: Executive Summary STRATEGIC PLAN PRIORITIES The Consolidated Plan divides the State's priorities into two categories based on function: (1) priorities to directly benefit low and moderate income households and (2) priorities to improve the production capacity of Georgia's affordable housing providers. These priorities are not listed in rank order, but are of equal importance to the State. Direct Benefit Priorities: To increase the number of Georgia's low and moderate income households who have obtained affordable, rental housing free of overcrowded and structurally substandard conditions. To increase the number of Georgia's low and moderate income households who have achieved and are maintaining homeownership free of overcrowded and structurally substandard conditions. To increase the access of Georgia's homeless to a continuum of housing and supportive services that address their housing, economic, health, and social needs. To increase the access of Georgia's Special Need populations to a continuum of housing and supportive services which address their housing, economic, health and social needs. To provide assistance to local governments to meet their non-housing community and economic development needs. Production Improvement Priorities: To increase coordination, strengthen linkages and encourage the formation of partnerships between Georgia's private sector housing developers, financial institutions, nonprofit organizations, public sector agencies, foundations and other providers. To increase the capacity and skills of local nonprofit organizations and other providers to offer housing assistance. To improve the responsiveness of state and local policies to affordable housing issues. The State recognizes that its efforts to improve the production of housing and supportive service providers will be reflected in the number of households who directly benefit from their assistance. Therefore, the State has not established separate, quantifiable objectives for its production improvement goals within its Strategic and Action Plans. FFY2000 Consolidated Plan for the State of Georgia: Executive Summary 5 STRATEGIC PLAN FIVE-YEAR OBJECTIVES Based on a review of key economic and demographic indicators, Georgia's housing needs are not likely to change substantially over the next five years. While the absolute number of households will increase, the percentage of households affected by cost burden, overcrowding and physically defective housing should remain constant. The use of federal, state, local, and private resources will help to alleviate but not eliminate these problems. The Strategic Plan estimates, based on resources expected to be available over a five year period, that the State will provide the following benefits for low and moderate income Georgians: Rehabilitate or construct 3,514 affordable rental housing units. Provide rental assistance for 41,839 households. Assist 5,481 households to achieve or maintain homeownership in housing free of overcrowded and structurally substandard conditions. Assist a daily average of 9,600 homeless individuals with housing and supportive services. Assist organizations to provide housing and supportive services to 1,850 Special Need households with housing and supportive services. ELIMINATING BARRIERS TO AFFORDABLE HOUSING Georgia has a strong and growing commitment to making decent affordable housing available to all residents. Over the last fifteen years, governments at both the state and local level have made important strides toward this goal. The State requires each local government to consider affordable housing needs within its mandated comprehensive plan. Several local governments are working to eliminate disincentives associated with tax delinquent properties and gaining clear property title in an effort to encourage affordable housing development and investment in blighted neighborhoods. Other local governments have instituted progressive changes in the levy of property taxes. The State will continue these efforts over the next five years. Actions that will be taken include revising housing programs to facilitate access to available funds, revising and implementing State laws impacting housing affordability, continuing implementation of the Georgia Planning Act requirement for jurisdictions to examine issues related to the provision of affordable and adequate housing, and implementing actions recommended in the Impediments to Fair Housing Choice Analysis. Acknowledging the importance over the next five years of improving the capacity of its institutional structure to deliver affordable housing, the State has established the following priority: to increase the capacity and skills of local nonprofit organizations and other providers to offer housing assistance. 6 FFY2000 Consolidated Plan for the State of Georgia: Executive Summary FAIR HOUSING The State General Assembly established the Commission on Equal Opportunity to administer the State's policy for fair housing throughout the state. All departments and agencies of state government are mandated to administer their programs related to housing and urban development in a manner that affirmatively furthers the State's fair housing policy. HUD formally notified the State Commission on Equal Opportunity in January 1996 that the State's fair housing law and policies to administer the law are substantially equivalent to those created under the federal Fair Housing Act. Based on this certification, HUD will refer to the Georgia Commission on Equal Opportunity all complaints alleging a discriminatory housing practice within the jurisdiction of the State. In cases within the jurisdiction of a local community whose fair housing law and administration has also been found by HUD to be substantially equivalent, the discriminatory complaint will ultimately be referred to the appropriate local agency. The Georgia Department of Community Affairs will also implement all fair housing policies associated with HUD's consolidated formula funds as required by HUD Consolidated Plan regulations issued January 5, 1995; Title VIII of the Civil Rights Act of 1968; and to policy adopted by the State's General Assembly. The State will also continue to contract with Georgia Legal Services to respond to assistance requests regarding tenant/landlord responsibilities and rights. PUBLIC HOUSING AUTHORITIES Public Housing Authorities (PHAs) implement a large portion of Georgia's housing assistance effort. Local governments have created 199 PHAs, providing public housing. As of May 2000, 41,046 Georgia households benefited from Section 8 rental subsidies. There were also 52,393 units of local public housing available across Georgia. PHAs utilize funds from public housing rent receipts, federal subsidies from HUD, and proceeds from bond issues for some development costs. No public housing authorities are operated by the State. Therefore, the State has not developed a plan to encourage public housing residents to become more involved in the public housing management or to become owners of their units. However, the State encourages individual PHAs to develop such a plan with residents. The State also continues to encourage within its programs the transition of public housing residents into private housing living situations. ANTI-POVERTY STRATEGY In 1992, Census statistics indicated that nearly 18% of Georgia's population lived below the poverty line, higher than the national percentage of 15%. According to the most recent estimates (1998), the percent of Georgia's population living in poverty has declined to just over 14%. While this figure is still higher than the national figure of just over 13%, Georgia's figure has fallen faster than the national figure since 1992. FFY2000 Consolidated Plan for the State of Georgia: Executive Summary 7 Some of this change can be attributed to the state's rapid population growth and the growth of the state's economy in terms of the number of new jobs created. The State has established several goals to reduce poverty among its residents: To provide a range of services and activities having a measurable and potentially major impact on conditions of poverty in the community, or those areas of the community where poverty is a particularly acute problem; To provide activities designed to assist low income participants, including the elderly poor, secure and retain meaningful employment; gain an adequate education; make better use of available income; obtain and maintain adequate housing; obtain emergency assistance to meet immediate and urgent individual and family needs, including health services, nutritious food, housing and employment; remove obstacles blocking the achievement of self-sufficiency; and achieve greater participation in the affairs of the community; To provide for the emergency provision of supplies and services, nutritious foodstuffs, and related services necessary to counteract conditions of starvation and malnutrition among the poor; To coordinate and establish linkages between governmental and other social service programs to assure the effective delivery of such services to low income individuals; and, To encourage the private sector to become involved in efforts to ameliorate poverty. HOUSING AND COMMUNITY DEVELOPMENT RESOURCES The State expects to tap a variety of federal resources to address Georgia's housing and community development needs. These resources include the four programs covered by the State's Consolidated Plan: the HOME Investment Partnerships (HOME), Community Development Block Grant (CDBG), Housing Opportunities for Persons with AIDS (HOPWA), and Emergency Shelter Grant (ESG) programs. HUD has notified the State of its eligibility to receive a consolidated formula allocation of FFY2000 funds totaling $65,065,000. These funds are divided between programs as follows: CDBG ($43,583,000); HOME ($18,323,000); ESG ($1,826,000); and HOPWA ($1,333,000). However, the State has agreed to transfer $31,000 of its HOME allocation to Clayton County to enable this locality to meet the federal threshold limit to be awarded HOME funds directly from HUD. As a result, the total amount of HOME funding available to the state for administration is $18,292,000. HUD also will make available additional resources from these four programs directly to individual entitlement or participating jurisdictions to address housing and community development needs within their communities. 8 FFY2000 Consolidated Plan for the State of Georgia: Executive Summary In SFY2001, the State will continue implementation of the Lead Safe Homes Demonstration Program that was established in 1995. Funds will be used for lead abatement and hazard control activities, testing for lead-based paint hazards, risk assessments, and for temporary relocation assistance during construction. The State will also continue its program providing comprehensive housing counseling education to households interested in purchasing a home. The first allocation for this program was received from HUD in 1998. The State anticipates the availability of the following federal program funds or incentives to address Georgia's housing and community development needs during SFY2001. The additional funds will address the following general topic areas: Affordable Housing: Section 8, Rural Housing and Economic Development Program, Low Income Housing Tax Credit, USDA-RD Home Improvement and Repair Loans and Grants, USDA-RD Rural Rental Housing Loans, USAD-RD Rental Assistance, USDA- RD Farm Labor Housing Loans and Grants, USDA-RD Low-Income Housing Preservation program; HUD Fair Housing Organizations Initiatives Homeownership: HUD Self-Help Homeownership (SHOP) Program, USDARD Rural Housing Loans (Homeownership) Public Housing: Comprehensive Grant Programs, Public Housing Development funds, HOPE VI Revitalization and Demolition Programs Homelessness: Surplus Housing for Use to Assist the Homeless, HUD Shelter Plus Care, HUD Supportive Housing program, HUD Section 8 Moderate Rehabilitation for Single Room Occupancy for Homeless Individuals program, Safe Havens Demonstration program, Rural Homelessness Grant program Special Need Housing: USDA-RD Home Improvement Loans and Repair Grants, the Supportive Housing Program, HUD Supportive Housing for the Elderly (Section 202) program, HUD Supportive Housing for Persons with Disabilities (Section 811) Non-Housing Community Development Needs HUD Brownfields Economic Development Initiatives, HUD Economic Development Initiative, USDARD Community Facilities Direct Loans and Loan Guarantees, Rural Utility Service loans and grants; Appalachian Regional Commission Funds; USDARural Business Service (USDA-RBS) Business and Industrial Guaranteed Loans, USDA-RBS Intermediary Relending Program Loans, USDA-RBS Rural Business Enterprise Grants, USDA-RBS Local Technical Assistance and Planning Grants, and USDA-RBS Rural Technology and Cooperative Development Grants FFY2000 Consolidated Plan for the State of Georgia: Executive Summary 9 STRATEGIC PLAN COORDINATION The policy of the State strongly favors the formation and maintenance of cooperative partnerships with the federal government and various State agencies that administer numerous federally funded housing and community development programs at the local level with PHAs and HUD entitlement communities, and with private for-profit and nonprofit providers of housing and supportive services. The State recognizes the importance of these cooperative partnerships to effectively address affordable housing issues and has established a priority within the Consolidated Plan to increase coordination, strengthen linkages and encourage the formation of partnerships between Georgia's private sector housing developers, financial institutions, nonprofit organizations, public sector agencies, foundations and other providers. ACTION PLAN FOR SFY2001 The Action Plan details the State's plan for use of its consolidated formula FFY2000 funding allocation from the U.S. Department of Housing and Urban Development during SFY2001, a time period beginning July 1, 2000 and ending June 30, 2001. This allocation is divided between programs as follows: CDBG ($43,583,000); HOME ($18,292,000); ESG ($1,826,000); and HOPWA ($1,333,000). COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) Non-Housing Quantified Objectives The Table below presents the State's proposed quantified objectives for the nonhousing component of the Community Development Block Grant Program. The proposed objectives are presented to give citizens an idea of the types of projects that may be funded with FFY2000 CDBG funds. NON-HOUSING QUANTIFIED OBJECTIVES: FFY2000 CDBG PROGRAM Program Area Measure Proposed Objective Economic Development (EIP) ...... Number of Businesses Expected to be Assisted .................... 25 Immediate Threat and Danger..... Number of Grants Expected to be Made ................................ 20 Regular Competition ..................... Number of Grants Expected to be Made ................................ 75 Number of Water and/or Sewer Projects............................... 17 Number of Streets and/or Drainage Projects ........................ 15 Number of Multi-purpose Infrastructure Projects ................ 10 Number of Senior Citizen Centers............................................. 3 Number of Mental Health and Centers for the Developmentally Disabled ................................................ 4 Number of Public Health Centers ............................................. 2 Number of Child Day Care and Head Start Centers .............. 2 Number of Multi-Purpose and Other Centers ......................... 6 Number of Learning and Workforce Development Ctrs........ 6 Estimated Number of Beneficiaries.................................. 45,000 10 FFY2000 Consolidated Plan for the State of Georgia: Executive Summary The short-term objective is to make those CDBG funds allocated to the State by Congress on an annual basis available to local units of government to address their locally determined needs. Consistent with the long-term objective, not less than 70% of the CDBG funds received each fiscal year will be used for the support of activities that benefit persons of low and moderate-income. To be funded, local government applicants must give maximum feasible priority to activities which benefit low and moderate-income families, or aid in the prevention or elimination of slums or blight, or which meet urgent community needs. Funds will be awarded in accordance with the Annual Action Plan to those projects that demonstrate the greatest need, feasibility and impact. Depending of the amount of funds actually appropriated by Congress, DCA expects to annually award (including the annual competition, EIP and ITAD) approximately 100 grant awards. Of course, the actual number will be determined by the actual allocation to the State and the type of projects and amount of funds actually applied for by local governments. While predicting the project types to be funded is difficult due to the emphasis given to meeting locally determined needs, an analysis of the most recent (FY 1999) Regular Annual CDBG Competition may shed some light on what may be funded in the future as well as current priorities. In reviewing this information it is interesting to note that the types of public facility projects that communities apply for has changed over time. During the early and mid1990's funding cycles, proposals for senior citizen and health centers predominated the competition for community building projects. As CDBG funds were used to meet this need, other facility needs began to be addressed by local communities. This includes more emphasis on centers to provide adult literacy, workforce development as well as youth centers and shelters for victims of family violence. In terms of public infrastructure applications, the need for water and/or sewer improvements remains high and the need for street and drainage facilities has been increasing. This change over time of project funding illustrates how the established CDBG rating and ranking system is able to respond to locally identified needs. Non-Federal Public Resources The Georgia CDBG program requires a local cash match for all non-housing CDBG projects. The required cash match is based on the amount of CDBG funds received as follows: F 0% for amounts up to $300,000 in CDBG funds, F 5% of amounts from $301,000 to $500,000, and F 10% of amounts over $500,000. FFY2000 Consolidated Plan for the State of Georgia: Executive Summary 11 It is estimated that over $1,200,000 in local CDBG cash match will be provided by local units of government receiving FFY 2000 CDBG funds. This is based on 80 CDBG grants being funded with an average grant size of $457,372. The average grant size is based on the FFY 1999 CDBG awards. The amount of the actual cash match provided will depend on the profile of the grants actually funded during the 2000 Program Year. In addition, all CDBG applications receive up to 30 additional points in the rating system for provision of additional resources. While these are not always cash amounts, usually they are other loans or grants or local government cash and in-kind contributions. The exact amount of "leverage" can not be predicted until applications are received. The FFY 1999 CDBG competition leveraged over $42 million in additional resources. Use of Technical Assistance Funds The Housing and Community Development Act of 1974, as amended, allows up to 1% of each year's CDBG allocation to be used for technical assistance activities. For the upcoming Program Year, DCA is setting aside $150,000 of the total allocation of these activities. Note: this is far less than the allowable amount. These funds have been used to fund various technical assistance workshops as well as staff time devoted to on-site delivery of technical assistance. In the past, DCA has provided a series of well attended economic development training workshops as well as training for historic preservation compliance. For the upcoming year, DCA expects to use the funds as follows: j On-site technical assistance concerning grant administration, compliance and management issues. j Real Estate Finance Course, an intensive 5-day class taught by the National Development Council under contract with DCA. j The Art of Deal Structuring, and intensive 5-day class taught by the National Development Council under contract with DCA. j Housing Rehabilitation Workshop. It is planned to design a class (or series of classes) for CDBG housing rehabilitation professionals. The class will be taught by consultants and DCA staff. The first class will be held in July 2000. EMERGENCY SHELTER GRANT (ESG) DCA will utilize ESG and matching State funds to subsidize approximately 180 agencies with the provision of 800 units of housing (6,500 beds) for homeless persons. 12 FFY2000 Consolidated Plan for the State of Georgia: Executive Summary DCA will utilize ESG and matching State funds to provide housing to approximately 4,800 homeless persons on a daily basis; DCA will utilize State funds only through approximately 75 of the above referenced 180 agencies statewide to deliver additional supportive services on a daily basis to the 4,800 persons referenced plus an additional 4,800 persons. These estimated 9,600 individuals daily are homeless and living in shelters, living in transitional or permanent supportive housing, or who are in danger of becoming homeless. State funded services include child care, comprehensive case management, substance abuse services, HIV services, comprehensive day services, food, furniture, clothing, services to prevent homeless, funds to prevent homelessness, housing and service referrals to homeless persons, funds necessary to procure permanent housing, job training, skills development, transportation, and other services necessary to break the cycle of homelessness; There will be an estimated 2% increase in people serviced for 2000 over 1999 due to State funds allocated by Georgia's State Housing Trust Fund for the Homeless Commission; DCA will utilize state funds to continue with the implementation of its Continuum of Care Plan. Planned actions for 2000 include the continued use of supportive housing through the HUD S+C program to facilitate the enhancement or development of new regional homeless provider networks (regional 'resource fairs' will be conducted), continue to develop and publish (written and web-based) a directory of homeless facilities and services, implementation of a new State Interagency Council; and DCA will utilize State and ESG funds to continue to develop new providers in the unserved or underserved areas of rural Georgia (outside of other ESG entitled areas). DCA projects adding five (5) new communities (locations to be determined) in 2000 and enhancing services in many others. HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS (HOPWA) In 2000 DCA will initiate HOPWA activities in four (4) unserved areas of Georgia (to be determined); Utilize HOPWA funds within approximately eleven (11) agencies to sponsor an estimated 210 units of housing to house approximately 550 low income persons with HIV or members of their families on a nightly basis; Utilize HOPWA funds to provide HOPWA supportive services on a daily basis to 2,400 persons with HIV or members of their families; Enhance HOPWA provider networks on a regional basis in each of the 12 state regions; and FFY2000 Consolidated Plan for the State of Georgia: Executive Summary 13 Conduct a statewide meeting of rural HOPWA providers in 2000. Additional activities planned for SFY2001 to meet the State's housing priorities and objectives include: Rehabilitate or construct affordable rental housing for 703 low or moderate income households. Provide 8,360 low or moderate income households with rental assistance; Assist 1,090 low or moderate income households achieve or maintain homeownership; Make funding awards to organizations that provide the housing and supportive services necessary for 370 special need households to achieve decent, safe and sanitary living conditions. In addition to the federal consolidated formula funds, the State will use the resources of the State Housing Trust Fund for the Homeless, appropriations to the HOME Program by the State General Assembly, and the proceeds of mortgage revenue bonds issued by the Georgia Housing and Finance Authority to further the State affordable housing goals. However, the production levels indicated above only reflect housingrelated production resulting from the State's allocation of consolidated formula funds. 14 FFY2000 Consolidated Plan for the State of Georgia: Executive Summary STATE OF GEORGIA INTERIM FIVE YEAR CONSOLIDATED PLAN July 1, 2000 - June 30, 2005 Roy E. Barnes Governor Prepared by: Georgia Department of Community Affairs Jim Higdon, Commissioner May 2000 TABLE OF CONTENTS Introduction ....................................................................................................................1 Overview of Citizen Participation and Consultation Process .................................2 Housing and Homeless Needs Assessment ...............................................................5 Projected Housing Needs 1996-2010 ..................................................................5 Categories of Persons Affected .........................................................................19 Georgia's Homeless ............................................................................................51 Georgia's Lead-Based Paint Hazards ...............................................................64 Housing Market Analysis ...........................................................................................67 General Characteristics of Georgia's Housing Market ..................................67 Inventory of Georgia's Homeless Facilities and Services..............................76 Inventory of Other Special Need Facilities and Services ..............................83 Barriers to Affordable Housing in Georgia.....................................................88 Five-Year Strategic Plan ..............................................................................................96 Overview of Georgia's Priority Needs.............................................................96 Strategies to Address Georgia's Affordable Housing Needs .....................100 Strategies to Address the Needs of Georgia's Homeless ............................108 Strategies to Address Georgia's Other Special Need Households ............114 Georgia's Non-Housing Community Development Strategies..................120 Strategies to Eliminate Barriers to Affordable Housing..............................125 Strategies to Eliminate Lead-Based Paint Hazards......................................126 Georgia's Anti-Poverty Strategy .....................................................................129 Institutional Structure of Georgia's Housing Delivery System..................131 Georgia's Strategy to Enhance Coordination................................................141 Georgia's Strategy to Coordinate the Low Income Housing Tax Credit with the Development of Affordable Housing .........................142 Public Housing Resident Initiatives ...............................................................143 FFY2000 Consolidated Plan for the State of Georgia i Action Plan..................................................................................................................144 SF-424 ..................................................................................................................145 Federal Resources Available to Georgia........................................................150 Non-Federal Public Resources ........................................................................153 Georgia's Proposed Distribution Method, Geographic Allocation and Program Specific Federal Requirements of HOME funds...........155 Georgia's Proposed Distribution Method, Geographic Allocation and Program Specific Federal Requirements of CDBG Funds ...........167 Georgia's Proposed Distribution Method and Geographic Allocation of ESG Funds ..........................................................................195 Georgia's Proposed Distribution Method and Geographic Allocation of HOPWA Funds ..................................................................198 Georgia's Activities to Meet the State's Housing Priorities and Objectives....................................................................................................200 Georgia's Activities to Address the Needs of the Homeless and Other Special Need Groups .....................................................................209 Other Actions to be Implemented by Georgia..............................................212 Monitoring .........................................................................................................218 Appendix A - Certifications .................................................................................... A-1 Appendix B - Methodology......................................................................................B-1 Appendix C - Summary of Public Hearing Comments....................................... C-1 Appendix D - Summary of Written Comments on the Draft Plan .................... D-1 Appendix E - Methodology for HUD Table 1........................................................E-1 Appendix F - List of Housing Providers to Homeless within Georgia.............. F-1 Appendix G - State Continuum of Care Plan, Summary .................................... G-1 Appendix H - 1999 HUD Median Family Income Limits ................................... H-1 Appendix I - Qualified Allocation Plan ................................................................... I-1 ii FFY2000 Consolidated Plan for the State of Georgia I. INTRODUCTION The Consolidated Plan concept was implemented in Federal Fiscal Year (FFY) 1995 and reflected a new view by the Department of Housing and Urban Development that such submissions should enable States to examine their needs and to design ways to address those needs which are appropriate to the circumstances of the state. The Consolidated Plan combines the planning and application aspects of the Community Development Block Grant (CDBG), HOME Investment Partnership (HOME), Emergency Shelter Grant (ESG), and Housing Opportunities of Persons with AIDS (HOPWA) programs. This update has been prepared for submission per federal regulations requiring the State to revise the entire Consolidated Plan no less frequently than once every five years. The overall goal of the community planning and development programs covered by this document is to develop viable communities by providing decent housing, a suitable living environment, and expanded economic opportunities principally for low and moderate income persons. This Consolidated Plan enables the State of Georgia to examine the housing and community development needs of the State and to develop programs that effectively utilize the scarce resources available to address these concerns and improve the quality of life for its low and moderateincome residents. Georgia's Consolidated Plan includes an assessment of housing and homeless needs, an analysis of the state's housing market, a five-year strategy to address its housing and community development needs, and a one-year Action Plan for the use of consolidated formula funds available to the State. The Action Plan is updated and submitted to HUD on an annual basis. The housing needs identified in the FFY1995 Consolidated Plan relied on information gathered for the State's FFY1994 Comprehensive Housing Affordability Strategy (CHAS), a HUD document that was submitted to HUD on December 17, 1993. Pending the results of the 2000 Census, each dataset has been evaluated independently to most accurately reflect the current housing needs of Georgians. Much of the new data consists of or relies on projections made from the original CHAS data. In anticipation of Census 2000 data, this document is considered an Interim Plan and will be updated with new data when it is available. Descriptions of the state's community development needs represent an assessment of the types of current applications submitted by eligible local governments and, as such, depict the important community development needs as identified by these communities. The program year covered under this updated Plan will begin on July 1, 2000 with the start of State Fiscal Year (SFY) 2001. After verifying that the State of Georgia has met all necessary federal requirements, HUD will make available to the State on this date its consolidated formula allocation, including CDBG, HOME, ESG, and HOPWA funds. FFY2000 Consolidated Plan for the State of Georgia 1 II. OVERVIEW OF THE CITIZEN PARTICIPATION AND CONSULTATION PROCESS During the development of the FFY1995 Consolidated Plan, the State of Georgia followed applicable citizen participation requirements specified in the regulations for the Plan which were issued January 5, 1995. A formal, written Citizen Participation Plan became effective July 1, 1996 and includes all citizen participation requirements specified in the Consolidated Plan regulations. This plan has been followed during each year's Annual Action Plan update and Performance Report, as well as during this five-year update to the Consolidated Plan. CITIZEN PARTICIPATION, CONSULTATION AND THE CONSOLIDATED PLAN The FFY2000 Consolidated Plan for the State of Georgia has been developed through the efforts of the Georgia Department of Community Affairs (DCA) with the cooperation of federal, state and local government agencies; nonprofit organizations; and concerned citizens. DCA, the State's primary agency for community planning and affordable housing and administrator of the State's CDBG, HOME, ESG and HOPWA programs, serves as the lead agency responsible for overseeing the development of this plan. To assist in identifying Georgia's housing and community development needs, the State solicited input from other organizations through several mechanisms. The State directly contacted governmental agencies and other organizations to garner statistics and other information required by the Consolidated Plan regulations. Organizations which provided information include among others the U.S. Census Bureau; the Georgia Department of Human Resources (Division of Mental Health, Mental Retardation and Substance Abuse; Division of Rehabilitation, Division of Family and Children Services, Division of Aging Services); the Administration on Aging; the U.S. Department of Health and Human Services - Public Health Service; AID Atlanta, Inc.; the Housing Assistance Council; the National Coalition for the Homeless; the State Housing Trust Fund for the Homeless; the SOWEGA Council on Aging; the Georgia Office of Planning and Budget; and the Department of Housing and Urban Development. To facilitate the timely availability of funds to the State's housing partners, DCA began its citizen participation process in the Fall of 1999 during the development of the State's Qualified Allocation Plan. This document is included as part of the Consolidated Plan as DCA's method of distribution for its HOME Rental Housing Loan and HOME CHDO Loan programs. A public hearing was held in Atlanta in November to solicit input on the draft Qualified Allocation Plan at the close of a thirty-day public comment period. After reviewing the comments submitted in writing and made at the hearing, DCA incorporated selected comments into the 2 FFY2000 Consolidated Plan for the State of Georgia Qualified Allocation Plan based on DCA's determination of the most efficient and equitable means to provide these resources to meet Georgia's housing needs. DCA continued its citizen participation process in February 2000 by conducting public hearings at four locations across Georgia to solicit input on the State's housing and community development needs. The public hearings were held at the following locations: February 10, 2000 1:30 pm Union Mission, J.C. Lewis Health Center Savannah, Georgia February 15, 2000 1:30 pm The Music Hall of Fame Macon, Georgia February 16, 2000 1:30 pm DCA Board Room Atlanta, Georgia February 24, 2000 1:30 pm Business & Technology Ctr. Albany, Georgia Information announcing these public hearings was published in the Albany Herald, Athens Banner-Herald, Atlanta Journal-Constitution, Augusta Chronicle, Columbus Ledger-Enquirer, Macon Telegraph, Rome News-Tribune, and Savannah News-Press newspapers. The cities of Macon, Savannah, and Albany were specifically chosen to maximize the participation and input of citizens interested in affordable housing and community development issues of non-metropolitan areas. These dates and locations were chosen to occur in conjunction with the ESG/HOPWA application workshops. The public hearings were held in the afternoon in the same location as the morning workshop, making attendance more convenient for attendees and maximizing the participation in the public hearings. Atlanta was chosen in order to provide one location which was centrally located and accessible to local, state and federal agency personnel as well as nonprofit providers. For each annual update, the hearing locations have been and will be moved to other jurisdictions across the state in order to allow for a broader dissemination of program information and to facilitate input on Georgia's housing and community development needs. Furthermore, notices of the public hearing were mailed to 58 regional libraries across Georgia, to 78 branch libraries around the Atlanta area, and to 34 college or university libraries for posting at an accessible location to the general public. Notices were also mailed to all Public Housing Authorities in the state, FFY1999 recipients of the Low Income Housing Tax Credit (LITC), homeless housing and service providers including domestic violence and Emergency Shelter Grant Program recipients, local HUD program administrators, Community Service Regions local boards, Empowerment Zones and Enterprise Communities and members of the Statewide Independent Living Council. Notice was also provided to elected officials and selected administrators of local jurisdictions within Georgia, to each of the Regional Development Centers, the Housing Trust Fund for the Homeless, the Board of Community Affairs and other interested parties. FFY2000 Consolidated Plan for the State of Georgia 3 Information was provided at all of the State workshops for the Continuum of Care applications that were attended by housing and service providers for the homeless. The State announced and provided information concerning the public hearings at the February 2, 2000, meeting of the Atlanta Housing Forum. This meeting is regularly attended by representatives of various federal, state and local government agencies, nonprofit and for-profit housing developers, supportive service providers and other interested individuals interested in affordable housing issues within the Atlanta metropolitan area. Appendix C summarizes the comments received at these public hearings. A comprehensive effort was made to disseminate draft versions of the FFY2000 Consolidated Plan. Over 1,300 notices of availability of the draft document were distributed across the state, including to the DCA Board Members, Georgia Housing Trust Fund for the Homeless Commissioners, all county court commission chairman, the directors of community housing development organizations, various nonprofit housing developers, and interested citizens. The notice included a request that the document be made available to interested citizens for their review. In addition, notices were mailed to the directors of the main branches of public library systems across the state requesting their assistance in publicizing the availability of the draft plan by posting a notice provided by DCA at prominent locations within their library. Additionally, the draft plan was made available for review on the Georgia Department of Community Affairs website in a downloadable format. This site allowed people to e-mail comments on the plan to DCA staff or to request a copy through the mail. A summary of the written comments received in response to the draft version of the Consolidated Plan is provided in Appendix D. 4 FFY2000 Consolidated Plan for the State of Georgia III. HOUSING AND HOMELESS NEEDS ASSESSMENT A. PROJECTED HOUSING NEEDS 1996 - 2010 The most common type of household, claiming just over half of all households in Georgia, is the small family household with two to four people in it with at least one of the members is related to the householder by birth or marriage. When you only consider those households with moderate income or lower (earning 80% or less of the median family income), 31% are elderly households (62 years +). The percentage of elderly households in Georgia will continue to rise as baby boomers age and household size continues to shrink. Another trend worth attention is that of homeownership. Through the end of the 90's, low interest rates encouraged the housing market and homeownership rose to 69% in 1996 with estimates in 1998 of 72%. Tables 1 through 6 and their related Figures describe the variety and characteristics of household types by income and tenure category in Georgia. Until more accurate, up-to-date census information is available, these projections and estimates are based on selected data from sources including the U.S. Census Bureau and the Department of Housing and Urban Development (HUD). The estimates included in these tables draw heavily from the assumption of prior trends and do not take all factors of growth into effect. A complete explanation of methodology is included in Appendix B. Three major assumptions have shaped the overall picture described in this data. The first is that the ratio of homeowners to renters will remain constant from the 1998 estimates. Second, the rate of increase for overall households for the State will mirror that projected for the nation. The third assumption is that the projected ratio of the growth of elderly households that was published in 1996 is still on target. This ratio is expected to accelerate between 2002 and 2005 as the baby boom generation reaches retirement age. Other factors that are not completely accounted for in these projections include consideration that the percentage of large family households is likely to decrease as Americans generally continue to have fewer children per family and as more households move to metropolitan areas where a smaller household size is more common. Additionally, these projections do not account for any economic changes which may affect income, such as the increasing shift to low wage service oriented positions or the increasing use of temporary employees by both the public and private sectors. Based on a review of key economic and demographic indicators, Georgia's housing needs are not likely to change substantially over the next five years. The rates of growth in population, employment and personal income are not anticipated to significantly exceed prior levels. While the absolute number of households will increase, the percentages of households affected by cost burden, overcrowding and physically defective housing should remain constant. No updated projections are FFY2000 Consolidated Plan for the State of Georgia 5 available at this time regarding the issues of cost burden, overcrowding and physically defective housing. However, these factors will be included in future updates of the Plan as they are available. In the interim, the use of federal, state, local and private resources will help to alleviate but not eliminate these problems. The numbers in the following tables and figures represent estimated households based on the income, tenure and type of household reached using methodology briefly described above and detailed in Appendix B. Section IIIB of this plan, "Categories of Persons Affected," provides further discussion of this information in more detail by each category. Tenure estimates reflect homeownership rates estimated for 1996. This percent is expected to rise approximately 3% between 1996 and 2010. 6 FFY2000 Consolidated Plan for the State of Georgia Table 1: PROJECTED Extre m e l y Lo w Incom e H o u s e h o l d Types 0 - 30% o f Median Fa m i l y Inco m e - Ext rem el y L o w Inco m e Household Type 1990 1996 2000 2005 2010 Renter Households Total Eld erly Sm all Fa m ily Large Fam ily 190,624 50,401 73,559 21,646 198,161 52,394 76,467 22,502 198,382 52,433 76,553 22,527 204,456 54,343 78,897 23,217 215,951 58,189 83,332 24,522 Owner Households Total Eld erly Sm all Fa m ily Large Fam ily 126,733 71,990 29,365 7,631 153,065 86,948 35,466 8,890 167,824 95,296 38,886 9,748 178,506 101,934 41,361 10,368 188,542 109,148 43,687 10,951 Total Households Total Eld erly Sm all Fa m ily Large Fam ily 317,357 122,391 102,924 29,277 351,226 139,341 111,934 31,392 366,206 147,729 115,439 32,275 382,962 156,278 120,258 33,585 404,493 167,337 127,019 35,473 FIGURES REFLECT 1996 ESTIMATES Fig u re 1 a : Extre m e l y L o w In com e H o u s e h o lds By H o u s e h o l d T y p e w ith i n In c o m e C ate g o ry 60% 57% 50% 40% 39% 30% 26% 20% 11% 10% 23% 6% 0% Ren ters Eld erly Sm all Fam ily O w n ers Large Fam ily Extremely Low Income Characteristics 4 Small Families comprise 39% of renters in this income category, the largest group of renters. 4 Elderly Households comprise 57% of owner households. 4 Large families make up the smallest group in this income category with 11% of renters and 6% of owner households. Figure 1b: Extre m e l y Lo w Income Tenure 4 Renters make up 56% of all Extremely Low Income Households. 4 Owners account for 44% of all Extremely Low Income Households. Owners 44% Ren ters 56% Renters Owners FFY2000 Consolidated Plan for the State of Georgia 7 Figure 1c: Percentage of Extremely Lo w Income Category Compared to Total Household Type Extremely Low Income Households Compared to All Income Categories 4 26% of all Elderly Households have Extremely Low Incomes. 60% 49% 50% 40% 30% 20% 10% 0% 26% 26% 20% 20% 3% 4% 11% 8% Renters Owners Total Eld erly Small Family Large Fam ily 4 A larger proportion of both Renter and Owner Elderly Households have Extremely Low Incomes accounting for 49% and 20% each of all Elderly Households. 4 Only 3% and 4% of all Small and Larger Families are in the Extremely Low Income Owner Household category. Renter Households Figure 1d: Total 11% Households All Income Categories 19% All Income Cat egories Extremely Low Income 81% Category Extremely Low Income Category 89% Owner Households 8% All Income Categories Extremely Low Income Category 92% 4 11% of all Household types in all Income Categories are classified as having Extremely Low Incomes. 4 Households earning 30% or less of the Median Family Income make up 19% of all renter households. 4 Only 8% of all Owner Households are in the Extremely Low Income category. 8 FFY2000 Consolidated Plan for the State of Georgia Table 2: PROJECTED Low Income Household Types 31 - 50% of Median Family Income - Low Income Household Type 1990 1996 2000 2005 Renter Households Total Elderly Sm a ll Fa m ily Large Fam ily 120,287 22,219 50,772 14,974 125,043 23,097 52,779 15,566 125,183 23,115 52,838 15,583 129,015 23,957 54,456 16,061 Owner Households Total Elderly Sm a ll Fa m ily Large Fam ily 126,785 62,588 39,423 11,442 153,128 75,592 47,614 13,819 167,893 82,851 52,205 15,152 178,579 88,621 55,528 16,116 Total Households Total Elderly Sm a ll Fa m ily Large Fam ily 247,072 84,807 90,195 26,416 278,171 98,690 100,394 29,385 293,076 105,965 105,044 30,735 307,594 112,578 109,984 32,177 2010 136,269 25,652 57,518 16,964 188,619 94,893 58,650 17,022 324,888 120,545 116,168 33,986 FIGURES REFLECT 1996 ESTIMATES Fig u re 2 a : L o w In co m e H ouseholds by H o u sehold T y p e w ith in In co m e C ate g o ry 60% 50% 40% 30% 20% 10% 0% 42% 18% 12% Renters 49% 31% 9% O w ners Low Income Characteristics 4 Small Families comprise 42% of renter households in the Low Income category. 4 Elderly households have the greatest ownership percentage of Low Income households with a 49% share. 4 Large Families continue to be the smallest household type consisting of 12% of E ld erly Sm a ll F a m ily L a r g e F a m ily renters and 9% of owners. 4 Renters make up 45% of Low Income Households. Fi g u re 2 b : Lo w Incom e T e n u re Owners 55% Renters 45% 4 Owner households have the marginal majority with 55%. Renters Owners FFY2000 Consolidated Plan for the State of Georgia 9 Figure 2c: Percentage of Lo w Income Category compared to Total Household Type 25% 22% 20% 18% 18% 19% 15% 14% 10% 5% 7% 5% 10% 7% 0% Renters Owners Total Elderly Small Fam ily Large Fam ily Low Income Households Compared to All Income Categories 4 Elderly households have the largest share in the Low Income category with 19% of all Elderly households. 4 Elderly households have comparable proportions of owner (18%) and renter households (22%) in the Low Income category. 4 14% of all Small Family renters and 5% of all Small Family owners are considered Low Income. 4 18% of all Large Family renters and 7% of all Large Family owners are considered Low Income. Renter Households Figure 2d: Total Households 9% 91% All Income Categories Low Income Category 13% All Income Categories 87% Low Income Category Owner Households 8% All Income Categories 92% Low Income Category 4 9% of all Household types in all Income Categories are classified as having Low Incomes. 4 Households earning between 31% and 50% of the Median Family Income make up 13% of all Renter Households. 4 Only 8% of all Owner Households are in the Low Income 10 FFY2000 Consolidated Plan for the State of Georgia Table 3: PROJECTED M oderate Income Household Types 51 - 80% of Median Family Income - Moderat e Income Household Type 1990 1996 2000 2005 Renter Households Total Eld e r ly Sm a ll Fa m ily Large Fam ily 176,945 14,570 82,648 21,243 183,941 15,146 85,916 22,083 184,147 15,157 86,012 22,108 189,785 15,710 88,645 22,784 Owner Households Total Eld e r ly Sm a ll Fa m ily Large Fam ily 223,538 68,374 99,710 27,410 269,984 82,580 120,427 33,105 296,017 90,510 132,039 36,297 314,857 96,814 140,443 38,607 Total Households Total Eld e r ly Sm a ll Fa m ily Large Fam ily 400,483 82,944 182,358 48,653 453,925 97,727 206,343 55,188 480,163 105,667 218,051 58,405 504,642 112,524 229,089 61,392 FIGURES REFLECT 1996 ESTIMATES 2010 200,455 16,821 93,629 24,065 332,560 103,665 148,340 40,778 533,015 120,487 241,969 64,844 Fig u re 3 a : M o d e ra te In co m e H o u seh o ld s By H o u seh o ld T y p e w ith in In co m e C a te g o ry 50% 45% 47% 45% 40% 35% 30% 31% 25% 20% 15% 12% 10% 8% 12% 5% 0% Renters O w ners E ld e r ly Sm a ll F a m ily L a r g e F a m ily Moderate Income Characteristics 4 Small Families comprise 47% of renter households in the Moderate Income category. 4 Small Families have the larger share of owner households in the Moderate Income category with 45%. 4 Large Families have a 12% share of both renter and owner households in the Moderate Income category. Fi g u re 3 b : M o d e rate Incom e T e n u re 4 Renters make up 41% of Moderate Income Households. 4 59% of Moderate Income households are owner occupied. O w n ers 59% Ren ters 41% Renters Owners FFY2000 Consolidated Plan for the State of Georgia 11 Fi g u re 3c: Perce n tag e o f M o d e rate Income Category Compared to Total Household Type 30% 25% 25% 23% 20% 14% 15% 19% 17% 11% 18% 19% 14% Moderate Income Households Compared to All Income Categories 4 Large Family households have the largest share in the Moderate Income category with 19% of all Large Family households. 4 There is a higher proportion of Elderly owners (19%) than Elderly renters (14%) in the Moderate Income category. 10% 4 23% of all Small Family renters and 5% 11% of all Small Family owners are considered Moderate Income. 0% Renters Owners Total 4 25% of all Large Family renters and Eld e r ly Small Fam ily Large Fam ily 17% of all Large Family owners are considered Moderate Income. 4 14% of all Household types in all Income Categories are classified as having Figure 3d: Total Households Renter Households 18% All Income Categories 14% All Income Categories 82% Moderate Incom e Category Moderate Incom e Category 86% Owner Households 13% All Incom e Categories 87% Moderate Incom e Category Moderate Incomes. 4 Households earning between 51% and 80% of the Median Family Income make up 18% of all Renter Households. 4 13% of all Owner Households are in the Moderate Income category. 12 FFY2000 Consolidated Plan for the State of Georgia Table 4: PROJECTED M iddle Income Household Types 81 - 95% of Median Family Income - Middle Income Household Type 1990 1996 2000 2005 Renter Households Total Elderly Small Family Large Fam ily 73,587 3,876 35,145 7,605 76,496 4,029 36,535 7,906 76,582 4,032 36,575 7,915 78,927 4,179 37,695 8,157 Owner Households Total Elderly Small Family Large Fam ily 123,420 26,867 64,917 16,562 149,064 32,449 78,405 20,003 163,437 35,565 85,965 21,932 173,839 38,042 91,437 23,328 Total Households Total Elderly Small Family Large Fam ily 197,007 30,743 100,062 24,167 225,560 36,479 114,940 27,909 240,019 39,597 122,541 29,846 252,766 42,221 129,132 31,485 2010 83,364 4,475 39,815 8,615 183,613 40,734 96,578 24,639 266,977 45,209 136,392 33,255 FIGURES REFLECT 1996 ESTIMATES Fig u re 4 a : M i d d l e In co m e Households By Household T y p e w ith in In co m e C a te g o ry 60% 53% 50% 48% 40% 30% 20% 10% 0% 10% 5% Renters 22% 13% O w n ers Middle Income Characteristics 4 Small Families comprise 48% of the renter households in the Middle Income category. 4 Small Families have the larger share of owner households in the Middle Income category with 53%. 4 Elderly households account for 5% of renter and 22% of owner households in the Middle Income category. 4 Large Families have a 10% share of renter and a 13% share of owner households. E ld erly Sm a ll F a m ily Large Fam ily 4 Renters make up 34% of Middle Income Households. 4 66% of Middle Income households are owner occupied. Figure 4b: Middle Income Tenure Owners 66% Renters 34% Renters Owners FFY2000 Consolidated Plan for the State of Georgia 13 Fi g u re 4c: Percentage of M i d d l e Incom e Cate g o ry Com p ared to Total Household Type 12% 10% 8% 10% 9% 10% 10% 8% 7% 8% 7% 6% 4% 4% 2% 0% Renters Owners Total Eld erly Small Fam ily Large Fam ily Middle Income Households Compared to All Income Categories 4 Large Families households have the largest share in the Middle Income category with 10% of all Large Family households. 4 There is a higher proportion of Elderly owners (8%) than Elderly renters (4%) in the Middle Income category. 4 10% of all Small Family renters and 7% of all Small Family owners are considered Middle Income. 4 9% of all Large Family renters and 10% of all Large Family owners are considered Middle Income. Figure 4d: Total Households 8% All Income Categories Middle Income Category 92% Renter Households 8% All Income Categories Middle Income Category 92% Owner Households 7% All Income Categories Middle Income Category 93% 4 8% of all Household types in all Income Categories are classified as having Middle Incomes. 4 Households earning between 81% and 95% of the Median Family Income make up 8% of all Renter Households. 4 7% of all Owner Households are in the Middle Income category. 14 FFY2000 Consolidated Plan for the State of Georgia Table 5: PROJECTED H igher Income Household Types 96% o f Median Family Inco m e And O v er - Higher Inco m e Household Type 1990 1996 2000 2005 Renter Households Total Elderly Sm a ll Fa m ily Large Fam ily 242,724 11,019 124,477 18,584 252,320 11,455 129,398 19,319 252,603 11,463 129,543 19,340 260,337 11,881 133,509 19,933 Owner Households Total Elderly Sm a ll Fa m ily Large Fam ily 961,932 122,734 642,498 101,606 1,161,798 148,235 775,994 122,717 1,273,823 162,469 850,818 134,550 1,354,899 173,785 904,970 143,114 Total Households Total Elderly Sm a ll Fa m ily Large Fam ily 1,204,656 133,753 766,975 120,190 1,414,119 159,690 905,392 142,036 1,526,426 173,932 980,361 153,890 1,615,236 185,666 1,038,480 163,046 FIGURES REFLECT 1996 ESTIMATES 2010 274,974 12,722 141,016 21,053 1,431,076 186,083 955,851 151,160 1,706,050 198,805 1,096,867 172,213 Fig u re 5 a : H i g h e r In co m e H ouseholds By H ousehold T y p e w ith in In c o m e C a te g o ry 80% 70% 67% 60% 50% 51% 40% 30% 20% 10% 5% 8% 13% 11% 0% Renters O w n ers E ld e r ly S m a ll F a m ily L a r g e F a m ily Higher Income Characteristics 4 Small Families comprise 51% of the renter households in the Higher Income category. 4 Small Families have the larger share of owner households in the Higher Income category with 67%. 4 Elderly households account for 5% of renter and 13% of owner households in the Higher Income category. 4 Large Families have an 8% share of renter and an 11% share of owner households. 4 Renters make up 18% of Higher Income Households. 4 82% of Higher Income households are owner occupied. Figure 5b: Higher Income Tenure Renters 18% Owners 82% Renters Owners FFY2000 Consolidated Plan for the State of Georgia 15 Fi g u re 5c: Perce n tag e o f H i g h e r Incom e Cate g o ry C o m p are d to Total Household Type 80% 70% 60% 50% 73% 62% 63% 50% 40% 34% 35% 30% 30% 22% 20% 11% 10% 0% Ren ters O w n ers Eld erly Sm all Fam ily Total Large Fam ily Higher Income Households Compared to All Income Categories 4 Small Families have the largest share in the Higher Income category with 63% of all Small Family households. 4 There is a higher proportion of Elderly owners (35%) than Elderly renters (11%) in the Higher Income category. 4 34% of all Small Family renters and 73% of all Small Family owners are considered Higher Income. 4 22% of all Large Family renters and 62% of all Large Family owners are considered Higher Income. Renter Households 23% All Income Categories Figure 5d: Total Households Higher Income Category 34% 77% All Income Categories 66% Higher Income Category Owner Households 38% All Income Categories 62% Higher Income Category 4 34% of all Household types in all Income Categories are classified as having Higher Incomes. 4 Households earning 95% or more of the Median Family Income make up 23% of Renter Households. 4 38% of all Owner Households are in the Higher Income category. 16 FFY2000 Consolidated Plan for the State of Georgia Table 6: PROJECTED - All Household Types 1996 - 2010 All Income Lev els Household Type 1990 1996 2000 2005 Renter Households Total Elderly Sm a ll Fa m ily Large Fam ily 804,167 102,085 366,601 84,052 835,961 106,121 381,095 87,375 836,896 106,201 381,522 87,473 862,520 110,070 393,203 90,151 Owner Households Total Elderly Sm a ll Fa m ily Large Fam ily 1,562,408 352,553 875,913 164,651 1,887,039 425,805 1,057,907 198,535 2,068,994 466,690 1,159,914 217,679 2,200,681 499,197 1,233,740 231,534 Total Households Total 2,366,575 2,723,000 Elderly 454,638 531,926 Sm a ll Fa m ily 1,242,514 1,439,002 Large Fam ily 248,703 285,911 FIGURES REFLECT 1996 ESTIMATES 2,905,890 572,891 1,541,435 305,152 3,063,200 609,267 1,626,942 321,685 2010 911,013 117,859 415,310 95,220 2,324,410 534,523 1,303,105 244,551 3,235,424 652,382 1,718,414 339,771 Characteristics of All Households Figure 6a: Total Households By Household Type 60% 56% 50% 46% 40% 30% 20% 13% 10% 10% 23% 11% 0% Renters Owners 4 Small Families comprise 46% of renter households in all Income Categories. 4 Small Families have the larger share of owner households in all Income categories with 56%. 4 Elderly households account for 13% of renter and 23% of owner households in all Income categories. 4 Large Families have a 10% share of renter and an 11% of owner households. Elderly Small Family Large Family 4 Renters make up 31% of All Income Households. 4 69% of Households in All Income Categories are owner occupied. Figure 6b: Tenure for All Income Categories Ren ters 31% Owners 69% Renters Owners FFY2000 Consolidated Plan for the State of Georgia 17 Comparison of Income Categories 4 The largest share of All Household Types is classified as earning a Higher Income of Figure 6c: Income Levels as a 96% or more of the Median Percentage of Total Households Family Income. 8% 4 13% of all households earn 30% 17% or less of the Median Family Income. 0-30% of MFI 31-50% of MFI 4 Low Income Households (31%- 10% 50% of Median Family Income) 52% 51-80% of MFI 81-95% of MFI make up 10% of all households. 96%+ of MFI 13% 4 Moderate Income Households (51%-80% of Median Family Income) make up 17% of all households. 4 8% of all households earn 81%-95% of the Median Family Income. Figure 6d: All Income Categories by Household Type Other 17% Large Family 10% Elderly 20% Small Family 53% 4 Small Families have the largest share of households in All Income categories with 53%. 4 Elderly: 20% of all households. 4 Large Families: 10% of all households. 4 17% of all households are classified as "Other". This includes, among others, single person households under age 62 and unrelated individuals living together. Affordable Housing Needs Focus Income categories from 0-80% are considered as the focus of the Consolidated Plan related to need. 4 Small Families: 38% 4 Elderly Households: 31% 4 Large Families: 11% 4 Other Households: 20% Figure 6e: Extremely-Low to Moderate Income Categories (0-80% of MFI) Other 20% El d e rl y 31% Large Family 11% Small Family 38% 18 FFY2000 Consolidated Plan for the State of Georgia B. CATEGORIES OF PERSONS AFFECTED This section examines income, tenure, regional variations, housing conditions, and household types in an effort to identify Georgia's housing needs. This analysis only considers certain household types - the elderly, small families, and large families - as required in the Consolidated Planning Guidelines. Excluded categories include, among others, single person households under age 62 and unrelated individuals living together. The housing needs of these two, diverse household types are difficult to pinpoint for lack of available information. As stated in Section A, the estimates and projections used in this section were derived using several 1990 Census based projections by the U.S. Census Bureau and the Department of Housing and Urban Development (HUD). However, the available projections do not include all needed elements. Many trends and proportions found in the 1994 Comprehensive Housing Affordability Strategy (CHAS) were used to complete the projected housing needs picture. As more accurate information is made available following the 2000 census, the State's Housing Needs projections will be more accurately reflected in updated Consolidated Plans. The following analysis examines the housing conditions affecting each household type and each income category. The consolidated planning guidelines require a discussion of the cost burden, severe cost burden, overcrowding and substandard housing conditions for each income category and household group. Because there are no updated projections regarding these issues, information provided in the 1995 Plan has been applied. For the purposes of this discussion, a substandard unit is defined as one where at least one of the following conditions exists: j the unit lacks a complete kitchen (needing either an installed sink with piped water; a range, cook stove, or cook top and microwave or convection oven; or a refrigerator); j the unit lacks complete plumbing (needing either hot and cold piped water, a flush toilet, and a bathtub or shower); j the unit is overcrowded (with more than 1.01 persons per room); or j the household is cost burdened (pays more than 30% of their income for shelter. However, these indicators of a substandard unit do not encompass the majority of housing problems; this data does not capture conditions such as a leaking roof, a sagging porch, a deteriorated foundation, a leaning exterior wall, or unsafe wiring. The U.S. Bureau of the Census stopped gathering more detailed housing quality data after 1970. As a result, analysts often use the age of the housing stock as a proxy for overall housing quality. Approximately 14% of all housing units in Georgia were constructed prior to 1950. This proxy, however, again does not necessarily address the true physical condition of Georgia's housing units. FFY2000 Consolidated Plan for the State of Georgia 19 In order to obtain a broader picture of Georgia's housing conditions, information on the housing problems is presented for all income levels. However, middle and higher income households generally either have the financial resources or access to conventional funding to resolve their housing problems. Therefore, the development of public-sector housing programs to address housing needs for these categories does not meet the scope of the Consolidated Plan's effort to address the State's affordable housing needs. The analysis that follows first briefly examines the status of households in Georgia and evaluated the circumstances of each household category and income group. Data for this analysis is contained in the preceding six tables and their related figures. Concluding this section is a study of the racial or ethnic groups who have a disproportionately greater need than found within any of the income or household categories examined. ALL HOUSEHOLDS HOUSEHOLD CATEGORIES As seen in Figure 6d above, small family households are the largest single household group examined, constituting nearly 53% of all households. This proportion is expected to rise as household size continues to decrease. The next largest group consists of elderly households with 20% of the estimated households in Georgia. This percentage is also expected to rise as baby boomers reach retirement age. The smallest of the groups considered is large family households with 10% of Georgia households. This is a change from projections available for the 1995 plan with a 1% decrease in large family households and a 1% increase in small family households. Detailed explanation of the composition of each group is included later in this section. INCOME GROUPS As seen in Figure 6c above, approximately 40% of all Georgia households have an income ranging between 0% and 80% of the median family income. Of these low or moderate income households, 31% are elderly, 38% are small families, and 11% are large families. However, when all households are compared, regardless of income, only 20% are elderly, 53% are small families, and 10% are large families. These two sets of figures give indication that elderly households are over represented within moderate income levels and lower, and small families underrepresented. Large families appear to be relatively consistent with their percentage of total households. TENURE Due in part to a favorable economy and low interest rates, homeownership rates have grown fairly significantly in the late 90's. According the U.S. Bureau of Census, the homeownership rate in 1998 for Georgia was estimated to be just fewer than 72%. This proportion has been used for projected figures in Section A as well. While homeownership may increase in future years, the growth rate is not expected to be as dramatic as in recent history as interest rates have begun to rise. However, 20 FFY2000 Consolidated Plan for the State of Georgia even with the recent increase, mortgage rates are still comparatively lower than found over the last 30 years. Figure 7 indicates that homeownership in Georgia increases as household income increases. The percentages shown represent the proportion of that household type within the income category and household type and reflect homeownership rates estimated for 1998. Figure 7: Estimated Homeownership by Household Category and Income Level (1998) Percent of Household type who are Homeowners 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0-30% MFI All 31%-50%MFI 51%-80% MFI 81%-95% MFI Income Levels 96% + MFI Elderly Small Family Large Family AVERAGE HOMEOWNERSHIP RATE - 71.2%. As income levels exceed 80% of median family income, the percentage of homeowners is greater than the average homeownership rate for Georgia. This fact indicates that the "other" households, including one person and non-related individuals living together, with middle to high incomes, continue to rent rather than purchase a home. Across all income categories, elderly households have the highest proportion of homeownership related to other households in each income category. Large households, while being relatively consistent when related to total households, have the largest net increase between income categories ranging from 31% to 88%. Small families are in the middle, possessing a homeownership rate ranging from 34% to 87% across income categories. FFY2000 Consolidated Plan for the State of Georgia 21 HOUSING PROBLEMS Regardless of tenure or income, approximately 28% of Georgia households have been estimated as having housing concerns. The most common problem affecting all households is cost burden. One in every four households pays at least 30% of their income for housing. Almost 39% of these cost burdened households and 10% of all households are severely cost burdened and devote at least 50% of their income for housing. Renter households are more severely cost burdened at the extremely low income levels than homeowners; in contrast, homeowners in the three higher income categories are more cost burdened than renters. At any income level, Georgia's renter households are more likely to live in substandard housing than owner households are. Overall, 41% of renters, compared to 22% of homeowners, have at least one housing problem. Overcrowding affects only 4% of all households. Over 61% of the overcrowded households in Georgia are renters and over 67% of overcrowded households have incomes between 0% and 80% of median family income. E GEORGIA'S EXTREMELY LOW INCOME Extremely low income households earn an income within 0% and 30% of the median family income. In Georgia, 11% of all households are considered extremely low income. Only 44% of these households own their own home, and account for only 8% of owner households across all income categories. This income group is also the most affected by housing problems. Three of every four extremely low income households have at least one housing problem. Cost burden is the most common issue, affecting approximately 68% of these households. Over 48% are severely cost burdened. Overcrowding is also the most common in this income group, affecting 7% of all households and 10% of all renters with extremely low incomes. E GEORGIA'S LOW INCOME Low income households earn an income within 31% and 50% of the median family income. Approximately 9% of Georgia's households fall into this category with an ownership rate of 55%. However, homeowners in this income category account for only 8% of all homeowners. Substandard housing is common for both renters and homeowners with low incomes. Nearly three in four renters and one in two homeowners experience at least one housing problem. Cost burden is the largest of the identified problems. Nearly 54% of all low income households are cost burdened. This problem is most apparent in the renter population where almost 67% of the households are cost 22 FFY2000 Consolidated Plan for the State of Georgia burdened. Over 36% of all low income households are severely cost burdened. Overcrowding affects approximately 6% of all low income households. E GEORGIA'S MODERATE INCOME Moderate income households earn an income within 51% and 80% of median family income. In Georgia, 14% of all households are included in this category. Homeownership in this income category increases slightly to 59% and rises to 13% of all owner households in the state. Only 41% of moderate income households rent their housing. Renters in this income category are again more likely to have housing problems. Cost burden continues to be the most recurrent problem, affecting approximately 33% of all households. However, severe cost burden affects a larger portion of homeowners as opposed to renters. E GEORGIA'S MIDDLE INCOME Middle income households earn an income within 81% and 95% of median family income. Just fewer than 8% of Georgia households are included in this income category. Homeownership rates continue to increase in this category, rising to 66%. However the small quantity included in this category give owners only a 7% of homeownership across all income categories. This proportion is relative to the renter household share of just over 8%. Substandard housing continues to be less common at this income level, affecting slightly over one in five households. Cost burden is the most recurrent problem, affecting 18% of all households. Cost burden most affects homeowners. Over 22% of middle income homeowners pay more than 30% of their income on housing. This percentage contrasts sharply with the 11% of renters who are similarly cost burdened. Severe cost burden is not found in any middle income renters; however, almost 12% of the cost burdened homeowners are severely cost burdened. The problem of cost burden may again indicate a lack of affordable housing units in standard condition that are potentially available for ownership by middle income households. E GEORGIA'S HIGHER INCOME Higher income households earn an income of 96% or more of the median family income. Approximately 66% of all households are classified as higher income households. Within this income category, the vast majority of Georgia households, 82%, are homeowners. They also account for 38% of all homeowners statewide. Despite the larger quantity, renter households in this category account for 23% of all renter households. Housing problems affect only 9% of this income group's households. Cost burden is the most common problem, affecting an average 94,000 or 6% of all higher income households. Homeowners are again most affected by this problem. Since most FFY2000 Consolidated Plan for the State of Georgia 23 housing construction targets this income group and most units are physically in standard condition, the continuing cost burden problem is most likely a result of lifestyle and living choices rather than necessity. ELDERLY HOUSEHOLDS Although there is much concern regarding the aging of the "baby boomer" generation and the impact this will have on social issues such as housing, preliminary census estimates indicate that Georgia remains Figure 8: Elderly Households as a Percent the 7th youngest state in the of All Georgia Households nation with a median age of 34. 29% This represents a 2 year increase from 1990 to 1999. However, the percentage of elderly households to all households in Georgia is 28% 27% 26% 25% 24% 1995 1997 1999 2001 2003 2005 2007 2009 projected to rise approximately % Elderly Households 26.0% 25.9% 25.9% 25.9% 26.2% 26.5% 26.9% 27.6% 1.8% from the estimated 1995 portion (see Figure 8). The U.S. Department of Housing and Urban Development (HUD) defines an elderly household as a one or two person household in which the householder or spouse is at least 62 years of age. In 1996, Georgia's elderly households are estimated to constitute 20% of the total households for the state (Figure 6d, above). Elderly households as a group generally have lower incomes when compared to all other household type with just over 63% of all elderly households falling below 80% of the median family income. Table 7: Elderly Households by Income - 1996 Income Category Number of Elderly Households Percentage of Elderly Households within Income Category Percentage of All El d e rl y Households Extremely Low Income (0%-30% MFI) 139,341 40% Low Income (31%-50% MFI) 98,690 35% Moderate Income (51%-80% MFI) 97,727 22% Middle Income (81%-95% MFI) 36,479 16% Higher In come (96% or greater MFI) 159,690 11% TOTAL 531,926 -- 26% 19% 18% 7% 30% 100% F igure 8a: P e rcentage of All Elderly Households H ighe r Income 30% Extremely Low Income 26% M iddle Income 7% Moderate Income 18% Low Income 19% 24 FFY2000 Consolidated Plan for the State of Georgia TENURE Although a much larger percent of elderly households are homeowners, more than half of elderly homeowners have incomes of 80% or less of the median family income. According to 1996 estimates, 80% of elderly households own their home, but 57% of these homeowners are moderate income or lower. Despite the lower incomes, elderly households have a higher homeownership percentage across all income levels, including the average rate for all households for the State of Georgia. Combining this information indicates that while elderly households are rich in possessions - homes, they are income poor and may be unable to maintain their dwelling to standard conditions. Therefore, they would benefit from assistance that would help to make needed repairs and/or upgrades to the house to facilitate continued independence, especially where a physical barrier exists. The following three figures demonstrate the disparity between elderly renters and owners. Almost half of all elderly renter households are in the extremely low income category, while owner household are primarily concentrated in the higher, moderate and extremely low income categories. For this plan, the most significant figures indicate that just under 40% of elderly homeowners are in the lowest two income groups and may be in danger of losing their investments and independence due to the inability to keep their homes safe and accessible. Figure 8b: Al l Elderly Households by Tenure Renters 20% Own e rs 80% Figure 8c: Elderly Renters by Income Category M iddle Income 4% Higher Income 11% M oderate Income 14% Low Income 22% Extremely Low Income 49% Figure 8d: Elderly Owners by Higher Income 35% Income Category Extremely Low Income 20% Middle Income 8% Moderate Income 19% Low Income 18% FFY2000 Consolidated Plan for the State of Georgia 25 REGIONAL VARIATIONS A common trend nationally finds a higher percentage of elderly households in nonmetropolitan areas. This occurs as younger households move into larger, more economically active metropolitan areas seeking job opportunities and advancement. Elderly households are left in the rural areas and become the prevalent household type. This trend is mirrored in Georgia where, according to U.S. Census bureau estimates for 1998, just fewer than 33% of all households reside in non-metropolitan areas. This estimate reflects a 1% increase from the 1990 census information. If the same 1% increase is assumed for elderly households, an estimated 43% of all elderly households live in non-metropolitan areas in Georgia. The overall disproportionate growth between metropolitan and non-metropolitan areas can be seen in 1998 growth estimates by the U.S. Census Bureau for the South Atlantic Region. From 1990 to 1998, a 13% percentage population growth is estimated for the metropolitan areas and only a 9% increase for non-metropolitan areas. HOUSING PROBLEMS Georgia's elderly households experience a very high number of housing problems. The majority of elderly households with substandard housing are also low income. Generally, housing problems decrease as household income increases. Moreover, as shown in Table 8, tenure is a significant factor in the existence of housing problems. Elderly renters are more likely to live in substandard housing than elderly owners, except for elderly owners with extremely low incomes are. As estimated with 1990 Census information in the 1995 Consolidated Plan, approximately 56% of elderly low income renters and 36% of the elderly low income owners have housing problems. These figures compare respectively with 63% and 46% of Georgia's total low income households. Table 8: Substandard Housing by Tenure and Income Level for Elderly Households - 1996 Elderly Renters Elderly Owners Income Category Number Percent Number Percent Extremely Low Income (0%-30% MFI) 31,960 61% 53,908 62% Low Income (31%-50% MFI) 12,704 55% 21,922 29% Moderate Income (51%-80% MFI) 6,361 42% 13,213 16% Mid d le Income (81%-95% MFI) 967 24% 2,920 9% Higher Income (96% or greater MFI) 916 8% 5,929 4% TOTAL 52,908 50% 97,892 23% Source for Percentages indicated: State of Georgia FY 1994 CHAS, as shown in the 1995 Consolidated Plan. These percentages were used on previously estimated households numbers. Cost burden is the most common housing problem experienced by elderly households. Based on 1990 Census data, one of every four elderly households in Georgia is cost burdened, paying more than 30% of their income for shelter. In May 1999, HUD reported that, nationwide, nearly a third of the older population are 26 FFY2000 Consolidated Plan for the State of Georgia paying more than they can afford for housing. This fact contradicts commonly held assumptions that most elderly households have paid off their mortgages before reaching retirement age. In fact, almost 43% of all cost burdened elderly households are estimated to be severely cost burdened, paying at least 50% of their income for shelter. Estimated numbers of affected households are listed in Table 9. Although substandard housing appears to be the largest percentage, this type also includes cost burdened, which is listed separately. Table 9: Type of Housing Problem for Elderly Households - 1996 Housing Problem Type Number Percent Substan d ard H ousing* 154,259 29% Overcrow d ed 213 0.04% Cost Burdened 148,939 28% Severely Cost Burdened 63,831 12% Source for Percentages ind icated : State of Georgia FY 1994 CHAS, as shown in the 1995 Consolidated Plan. These percentages were used on previously estimated households numbers. * This category includes units lacking complete kitchens, lacking complete plumbing, have more than 1.01 persons per room (overcrow d ed), or have more than a 30% cost burden. Housing problems for elderly households differ by tenure and income level. Cost burden affects 59% of the extremely low, 52% of the low income, 40% of the moderate income, and 20% of the middle income renters. However, severe cost burden is only significant to the extremely low and income renters, where 33% and 18% are affected respectively. Units with one or more housing problems have been common for elderly renters across all low, moderate and middle income groups and affect approximately 61% of extremely low, 55% of low income, 42% of moderate income, and 24% of middle income households. The problem of overcrowding of elderly renters has been concentrated only in the low and moderate income household categories. Of the 132 overcrowded elderly rental units in Georgia, 49% (65) are found in the extremely low households, 35% (46) in the low income households, and 16% (21) in the moderate income households. As with elderly renters, the extent of housing problems for elderly homeowners varies across income levels. Cost burden is again the most common problem, affecting 60% of extremely low income, 28% of low income, 15% of moderate income, and 9% of middle income elderly homeowners. Severe cost burden significantly affects only the extremely low (31%) and low (9%) income homeowners. Units with one or more housing problems are spread across all low, moderate and middle income levels, affecting 62% of extremely low, 29% of low, 16% of moderate, and 9% of middle income homeowners. However, unlike elderly renters, FFY2000 Consolidated Plan for the State of Georgia 27 overcrowding is not a significant problem for elderly homeowners at any income level. One program assisting low-income homeowners, particularly elderly and disabled households, is the Christmas in April organization. This is a national organization that uses volunteers and various sources of contributions to assist these homeowners with home maintenance ranging from minor yard clean-up to roof repair and plumbing problems. There are 236 affiliates in all 50 states, and 14 groups in Georgia: Albany, Appling County, Atlanta, Clayton County, Columbus, Davis County, Gwinnett County, Hazlehurst/Jeff Davis County, Macon, Paulding County, Savannah, Warner Robins, and Waycross. In 1999 7,050 homes and nonprofit facilities across the nation were rehabilitated using 220,000 volunteers at a market value of $74,000,000. The national office can be reached at (800) 4-REHAB-9. SMALL FAMILY HOUSEHOLDS It is generally accepted that Americans have continued to have fewer children per family, especially within the metropolitan areas. As more accurate data is collected, this Plan will reflect any existing changes in growth trends. The following information, as that presented in previous tables regarding small and large family households, is based on previously reported proportions based on the State of Georgia FY 1994 CHAS. HUD defines a small family as a household with two to four members with at least one member related to the householder by birth, marriage or adoption. Small families constitute the majority of Georgia households with a 53% share. They also have the dominate share (38%) of households with incomes less that 80% of the median family income and who are considered as having affordable housing needs. Small family households are generally wealthier per household than any other household type. They account for 63% of all household types within the higher income category. This share is higher than the percent of all household types classified as higher income - 52%. The small family household is the dominant Georgia household type in all categories except for the extremely low income category where the elderly household is the largest household type. However, even in this category, there is a significant number of small families, making the number of small family households with below moderate incomes a rather large one. There are 418,670 small family households, or 29% of this household type that are classified as at or below moderate income levels. 28 FFY2000 Consolidated Plan for the State of Georgia Table 10: Small Family Households by Income - 1996 Income Category Extremely Low Income (0%-30% MFI) Low Income (31%-50% MFI) Moderate Income (51%-80% MFI) Middle Income (81%-95% MFI) Higher Income (96% or greater MFI) TOTAL Percentage of Small Number of Small Family Households Family Households within Income Category 111,934 32% 100,394 36% 206,343 45% 114,940 51% 905,392 64% 1,439,002 -- Percentage of All Small Family Households 8% 7% 14% 8% 63% 100% Figure 9: Percentage of All Small Family Households Extremely Low Income 8% Low Income 7% Moderate Income 14% Higher Income 63% Middle Income 8% TENURE The majority of Georgia's small family households (74%) are homeowners. This overall rate is larger than the state as a whole and the rate for small families increases as income increases. However, in the extremely low and low income categories, small family households are less likely to be homeowners. This disproportion may be attributed to the fact that single-parent families are considered in the small family household type and are typically among the lowest in income. Thus, when single-parent and dual-income couple households are in the same category, a large imbalance occurs within the small family household type and significant housing affordability problems will persist at the lowest income levels. Figure 9a: All Small Family Households by Tenure Renters 26% Owners 74% FFY2000 Consolidated Plan for the State of Georgia 29 Figure 9b: Small Family Renters by Income Category Higher Income 33% Extremely Low Income 20% Middle Income 10% Low Income 14% Moderate Income 23% Figure 9c: Small Family Owners by Income Category Extremely Low Income 3% Low Income 5% Moderate Income 11% Higher Income 74% Middle Income 7% Figures 10a and 10b below demonstrate a comparison between small family renters and all small families within the income category, as well as a comparison between all renters with all households within the same income category. The opposite trends for renters and owners become quite obvious in this presentation, as well as the relationship of the small family household with other household types. In the extremely low income category, small family renters have a higher proportion of the total of all household types with just over 68% of the household type. All household types combined are only just over 56%. As the income increases, small family households have less of a percentage of renters. F igure 1 0 a : Renters by Inc o m e for S m a ll F a m ilies and All H o use Types 80% 60% 40% 20% 0% S m a ll F a m ily Households All Household Types 0% 30% 68% 56% 31% 50% 53% 45% 51% 80% 42% 41% 81% 95% 32% 34% 96% + 14% 18% F igure 10b: O w ners by Income for Small F a m ilies and All House T ypes 100% 80% 60% 40% 20% 0% S m a ll F a m ily H o u s e h o lds A ll H o u s e h o ld T y p e s 0% 30% 32% 44% 31% 50% 47% 55% 51% 80% 58% 59% 81% 95% 68% 66% 96% + 86% 82% 30 FFY2000 Consolidated Plan for the State of Georgia REGIONAL VARIATIONS Although the percentage of small family homeowners is slightly lower in metropolitan areas, small families are more likely to be homeowners in both urban and rural areas of Georgia. Approximately 73% of all small families in nonmetropolitan areas and 69% in metropolitan areas are homeowners. These figures are slightly higher than found for all Georgia households: 71% in non-metropolitan and 62% in metropolitan areas. See Table 11 for a breakout by income category. The distribution of housing problems; however, appear to be fairly even between metropolitan and non-metropolitan areas, varying by approximately 1%-2% with the largest disparity occurring in cost burdened households. This category of housing problems accounts for 2% more households within the metropolitan area. HOUSING PROBLEMS Generally, housing problems decrease for both renters and homeowners as income levels increase. Because housing problems are more common for both renters and owners in the extremely low and low income categories. Within these lowest categories renters experience more difficulties. However, above moderate income levels, small family homeowners encounter a larger portion of housing problems. The need for assistance may be indicated either by increased access to affordable housing, or by providing assistance for maintenance or upgrade. Table 11: Substandard Housing by Tenure and Income Level for Small Family Households - 1996 Income Category Small Family Renters Number Percent Small Family Owners Number Percent Extremely Low Income (0%-30% MFI) 59,644 78% 26,954 76% Low Income (31%-50% MFI) 37,473 71% 27,616 58% Moderate Income (51%-80% MFI) 30,930 36% 48,171 40% Middle Income (81%-95% MFI) 4,384 12% 20,385 26% Higher Income (96% or greater MFI) 5,176 4% 62,079 8% TOTAL 137,608 36% 185,206 18% Source for Percentages indicated: State of Georgia FY 1994 CHAS, as shown in the 1995 Consolidated Plan. These percentages were used on previously estimated households numbers. Cost burden, as with elderly households, is the most prevalent housing problem for small family households affecting more than one in five households. Within this category, 36% or 41,443 small family households pay 50% or more of their income on housing. As in other household categories, the extent of housing problems differs by tenure and income level for small families. Cost burden affects a high percentage of both owners and renters at the extremely low, low and moderate income levels. Over 72% of owners and 63% of renters with incomes between 0% and 50% of median family income are cost burdened. These figures decrease slightly to 31% and 38% respectively for small families at the moderate income level. FFY2000 Consolidated Plan for the State of Georgia 31 Table 12: Type of Housing Problem for Small Family Households - 1996 Housing Problem Type Number Percent Substandard Housing* 330,970 23% Overcrow d ed 28,780 2% Cost Burdened 302,190 21% Severely Cost Burdened 115,120 8% Source for Percentages ind icated : State of Georgia FY 1994 CHAS, as shown in the 1995 Consolidated Plan. These percentages were used on previously estimated households numbers. * This category includes units lacking complete kitchens, lacking complete plumbing, have more than 1.01 persons per room (overcrowded), or have more than a 30% cost burden. Except for 12%, just over 9,000 extremely low income renters, overcrowding generally is not a significant housing problem for either renters or owners. LARGE FAMILY HOUSEHOLDS The established trend for household size has indicated that Americans have continued to have fewer children per family, especially within the metropolitan areas. As more accurate data is collected, this Plan will reflect any existing changes in household formation patterns. The following information, as that presented in previous tables regarding small and large family households, is based on previously reported proportions in the State of Georgia FY 1994 CHAS. The U.S. Department of Housing and Urban Development defines a large family as a household consisting of five or more members with at least one person related to the householder by birth, marriage, or adoption. Of the household types considered, large family households constitute the smallest share of total households in Georgia with a relative share of 10%. The portion increases slightly to 11% when only households with 80% median family income or less are considered. As seen in Table 13, the percentage of large family households within a given income category is relatively consistent between income categories with only a 3% range of relative share. Additionally, the wealth distribution of the large family household is fairly representative of that of all household types in Georgia. Figure 11 demonstrates that the relative share of large family households remains within 2% of total households, making the large family household a comparative indicator of household wealth in Georgia. 32 FFY2000 Consolidated Plan for the State of Georgia Table 13:Large Family Households by Income - 1996 Income Category Percentage of Large Percentage of All Number of Large Family Households Large Family Family Households within Income Category Households Extremely Low Income (0%-30% MFI) 31,392 9% Low Income (31%-50% MFI) 29,385 11% Moderate Income (51%-80% MFI) 55,188 12% Middle Income (81%-95% MFI) 27,909 12% Higher Income (96% or greater MFI) 142,036 10% TOTAL 285,911 -- 11% 10% 19% 10% 50% 100% Figure 11: Comparison of Large Family and Total Household Proportions by Income Level 60% 50% 40% 30% 19% 17% 20% 11%13% 10%10% 10%8% 10% 0% 0% - 30% 31% - 50% 51% - 80% 81% - 95% Percentage of Large Family Households Percentage of All Households 50% 52% 96% + TENURE The proportion of large family homeowners is comparable to all households with 69% of each category owning their homes. These figures remain comparable (41% large family and 44% all households) when considering only those households with incomes less than 80% of the median family income. Figure 12: All Large Family Households by Tenure Owners 69% Renters 31% Figure 12a: Homeownership of Incomes 80% and below Median Family Income 44% 44% 42% 41% 40% 38% Large Family All Households FFY2000 Consolidated Plan for the State of Georgia 33 Income is a barrier to homeownership for large families in the lower income categories. However, as illustrated in Figures 13b, as the income level increases, large families are more likely to become homeowners than any other household type. The opposite trend for renters is also evident in Figure 13a. This suggests that there are factors that have a greater affect on homeownership than family size. Once a large family household is able to afford the costs of daily living, homeownership becomes just as possible as for other household types. Figure 13a: Renters by Income for Large Families, Small Families, and All Household Types 80% 60% 40% 20% 0% 0% - 30% Large Family Households 72% Small Family Households 68% All Household Types 56% 31% 50% 53% 53% 45% 51% 80% 40% 42% 41% 81% 95% 28% 32% 34% 96% + 14% 14% 18% Figure 13b: Owners by Income for Large Families, Small Families, and All Household Types 100% 80% 60% 40% 20% 0% 0% - 30% 31% - 50% 51% - 80% 81% - 95% Large Family Households 28% 47% 60% 72% Small Family Households 32% 47% 58% 68% All Household Types 44% 55% 59% 66% 96% + 86% 86% 82% Large family households are concentrated in metropolitan areas. Two of three large families reside in one of Georgia's 42 metropolitan counties. HOUSING PROBLEMS Housing problems are significant for both large family owners and renters. Of all large families at or below moderate income, 75% of the renters and 64% of the owners experience at least one housing problem. These figures contrast significantly with the 63% and 46% found respectively for all of Georgia's low or moderate income households. 34 FFY2000 Consolidated Plan for the State of Georgia Table 14: Substandard Housing by Tenure and Income Level for Large Family Households - 1996 Income Category Small Family Renters Number Percent Small Family Owners Number Percent Extremely Low Income (0%-30% MFI) 19,802 88% 7,557 85% Low Income (31%-50% MFI) 12,608 81% 10,088 73% Moderate Income (51%-80% MFI) 12,587 57% 18,208 55% Middle Income (81%-95% MFI) 3,241 41% 7,001 35% Higher Income (96% or greater MFI) 5,796 30% 20,862 17% TOTAL 54,034 62% 63,716 32% Source for Percentages indicated: State of Georgia FY 1994 CHAS, as shown in the 1995 Consolidated Plan. These percentages were used on previously estimated households numbers. Nearly 70% of all large families at or below middle income level have some housing problem. Overcrowding and cost burden almost equally impact large families at these lowest income levels. One in every four large families experiences overcrowding. Of the household types examined, large families are the only household type to be significantly affected by overcrowding. Cost burden is most severely a problem at the extremely low income level where 71% are cost burdened and nearly 76% of these cost burdened households are severely cost burdened. These trends suggest that a lack of affordable, large housing units in Georgia exists to accommodate these extremely low income families. Table 15: Type of Housing Problem for Large Family Households - 1996 Housing Problem Type Number Percent Substandard Housing* 120,082 42% Overcrow d ed Cost Burdened Severely Cost Burdened 74,337 26% 65,759 23% 25,732 9% Source for Percentages ind icated: State of Georgia FY 1994 CHAS, as shown in the 1995 Consolidated Plan. These percentages w ere used on previously estimated households numbers. * This category includes units lacking com p lete kitchens, lacking com p lete plumbing, have more than 1.01 persons per room (overcrowded), or have more than a 30% cost burden. As is found throughout all household categories in Georgia, the extent of housing problems for large families differs by tenure and income level. Renters are more likely to experience housing problems at all levels of income. Housing problems for all households decrease as income levels increase. Overcrowding is a problem for renters at all income levels, including higher income households where 26% of the large families are estimated as being affected. The extent of this problem across all income levels indicates a short supply of affordable rental units of sufficient size to accommodate large families. FFY2000 Consolidated Plan for the State of Georgia 35 Both owners and renters are equally affected by cost burden at the lowest income levels, where 71% of the extremely low income and 53% of the low income are cost burdened. Interestingly, owners are more affected by cost burden as incomes increase. Over 33% of the moderate income, 17% of the middle income and 7% of the higher income large family homeowners are cost burdened. These statistics contrast with the 18%, 5% and 1% found respectively for large renters. This comparison, coupled with the fact that large family homeowners at these income levels are less likely to be overcrowded than their rental counterparts, suggests that these homeowners may have overstretched their income to purchase larger units that accommodate their family size. REGIONAL VARIATIONS Minor regional variations exist in the housing problems of large families. Approximately 34% of all non-MSA and 32% of MSA large family households are affected by at least one housing problem. Overcrowding is generally more of a problem for non-metropolitan counties. In contrast, cost burden more often affects large families in metropolitan areas. RACIAL/ETHNIC GROUPS OF DISPROPORTIONATE NEED Pending more accurate census estimates, the racial and ethnic composition of Georgia that was determined in 1990 is still considered reflective of current populations. Although Georgia has a very diverse ethnic and racial mixture, the 1990 census data showed evidence of disproportionate need for two groups: black households and Hispanic households. While Georgia's racial and ethnic composition appears to be fairly diverse, black households account for 96% of all minority households. 1990 Census information concerning substandard housing for ethnic groups is limited to Hispanic households. This ethnic group, which may be of any race, makes up 1% of all Georgia households. As defined by HUD, a disproportionate need exists for a specific racial or ethnic group if the percentage of that racial or ethnic group's households within a particular category of need is at least ten percentage points higher than found in the category as a whole. Table 16 portrays the disproportionate need figures of black and Hispanic households by income group and household type. 36 FFY2000 Consolidated Plan for the State of Georgia Table 16: Disporportionate Need of Racial/Ethnic Groups - Substandard Housing Group Total Households Elderly Households Renters 0% - 30% MFI Black H isp a n ic State 76% 69% 82% 60% 74% 61% 31% - 50% MFI Black 71% 52% H isp a n ic 87% 72% State 73% 55% 51% - 80% MFI Black 42% 30% H isp a n ic 56% 64% State 43% 42% 81% - 95% MFI Black 17% 13% H isp a n ic 24% 0% State 17% 24% 96% and Over MFI Black 10% 7% H isp a n ic 18% 7% State 6% 8% O w n e rs 0% - 30% MFI Black H isp a n ic State 72% 66% 84% 83% 68% 62% 31% - 50% MFI Black 52% 36% H isp a n ic 68% 42% State 45% 29% 51% - 80% MFI Black 40% 22% H isp a n ic 57% 38% State 35% 16% 81% - 95% MFI Black 28% 11% H isp a n ic 49% 38% State 25% 9% 96% and Over MFI Black 12% 8% H isp a n ic State 17% 11% 9% 4% Source: CHAS CD-ROM Database, Issued September 1993. Small Family Households 76% 85% 78% 69% 82% 71% 35% 47% 36% 13% 13% 12% 6% 10% 4% 76% 86% 76% 57% 68% 58% 39% 55% 40% 24% 50% 26% 8% 13% <1% Large Family Households 86% 92% 88% 81% 92% 81% 63% 70% 57% 48% 59% 41% 40% 59% 30% 88% 100% 85% 74% 87% 73% 55% 65% 55% 38% 58% 35% 23% 27% 17% FFY2000 Consolidated Plan for the State of Georgia 37 As shown in Table 16, the frequency of substandard housing for blacks closely mirrors the levels found for the state. Only one group - large family renter households with income levels exceeding 95% of Georgia's median family income shows a disproportionate need. Because of their high income level, public programs and assistance to this group are not considered for the purposes of Georgia's Consolidated Plan. These households can readily access financial assistance through traditional sources. On the other hand, these statistics indicate that Hispanic households across nearly all income categories and household types disproportionately experience substandard housing conditions. Specifically, the following Hispanic groups disproportionately have higher frequencies of substandard housing conditions: All low income renter or owner households; All moderate income renter or owner households; All higher income renter households; All extremely low income owner households; All middle income owner households; Elderly low income renter or owner households. Elderly moderate income renter or owner households; Extremely low income, elderly homeowners; Middle income, elderly homeowners; Low income, small family renters; Moderate income, small family renters; Small family homeowners of all incomes; and, Large families of all incomes and tenure except extremely low income renters. These figures indicate a very high need for outreach efforts to increase the participation of Hispanic households in available housing assistance programs. These efforts should be concentrated in Georgia's metropolitan areas, which are estimated to be home to 73% of all Hispanic residents. Nearly 50% of Hispanics live within the twenty county Atlanta Metropolitan Statistical Area (MSA). However, Table 16 may not fully reveal the existence of a disproportionate need of a specific racial or ethnic group. Georgia's income disparity between racial groups is important to recognize. As shown in Figure 14, black households are more likely to possess incomes below 80% of the state's median family income. In the 1990 Census, approximately 62% of black households, compared with 41% of all households, were estimated to have incomes that are extremely low, low or moderate. Additionally, while black households comprise only 24% of the state's total households, this racial group amounts to 37% of Georgia's households with earnings below 80% of median family income. Thus, contrary to the situation portrayed 38 FFY2000 Consolidated Plan for the State of Georgia through Table 16 using HUD's definition of the disproportionate need, the State of Georgia also recognizes that, because of the high concentration of low and moderate income black households, a disproportionate housing need exists for this racial group at these income levels. Figure 14: Income Levels of Black Households Relative to All Households 59% 60% 50% Percent of 40% Households 30% 20% 10% 0% 41% 24% 21% 17% 0% - 50% MFI 51% - 80% MFI 38% >80% MFI Black Households Source: FY 1994 CHAS CD-ROM All Households FFY2000 Consolidated Plan for the State of Georgia 39 GEORGIA'S POPULATION WITH ACQUIRED IMMUNODEFICIENCY SYNDROME (AIDS) POPULATION CHARACTERISTICS The actual number of persons in Georgia testing positive for the Human Immunodeficiency Virus (HIV) is not possible to determine due to the lack of a confidential reporting system. Only 25 states are currently involved in confidential routine HIV infection reporting with the Center for Disease Control. In Georgia, testing is anonymous, and often occurs more than once. However, the State's Department of Human Resources (DHR) estimates that approximately 27,000 Georgians are infected. A person infected with HIV can remain healthy for up to ten years before developing Acquired Immunodeficiency Syndrome (AIDS). People living with AIDS experience bouts of acute illness, interspersed with periods of relatively good health. These individuals progressively get weaker after each episode of severe sickness. These episodes usually necessitate hospitalization. DHR reports that between 1995 and 1997, Georgia ranked 10th in the nation for cases of various sexually transmitted diseases (STDs) including HIV and AIDS. From 1980 to 1999, 21,477 cases of AIDS have been reported for people residing in Georgia at the time of diagnosis, ranking Georgia #8 in the nation. The number of cases reported has increased each year until 1996, with a decrease in 1997. There were 1,716 reported cases of AIDS in Georgia in 1997, or 23 of every 100,000 residents being affected. According to the DHR, the number of persons living with AIDS has increased every year since 1981. In 1997 this number totaled 8,544 cases, and as of December 1999 there were an estimated 9,751 persons living with AIDS in Georgia. Conversely, the number of AIDS-related deaths has been decreasing in recent years. The percent of AIDS cases who passed away in 1997 was 14.3% compared to 19.8% in 1996 and 36.2% in 1995. This trend is attributed to improved antiretroviral medications that delay progression of the disease. Figure 15: Persons Living with AIDS by Year in Georgia 10 8 6 4 Number of 2 Cases (thousands) 0 '90 '91 '92 '93 '94 '95 '96 '97 # Cases 2.475 3.309 4.214 5.282 6.514 7.158 7.906 8.544 Figure 16: Georgia AIDS Case Fatality Rates by Year of Diagnosis (1990 - 1997) 100 80 Case 60 Fatality Rate 40 20 0 '90 '91 '92 '93 '94 '95 '96 '97 % Deceased 81.7 74.4 64.4 55.2 45.1 36.2 19.8 14.8 Source: GA Department of Human Resources, '95-'97 STD/HIV Report 40 FFY2000 Consolidated Plan for the State of Georgia As demonstrated in Figure 17, during the ten year period between 1987 and 1997, the trends of reported AIDS cases among racial and ethnic groups has varied greatly. Hispanic and groups other than non-Hispanic whites and blacks have held a relatively steady share of all reported cases, although the Hispanic population saw an increase in 1997 which doubled their share with 2.9% of all cases reported. Figure 17: AIDS Cases by Race/Ethnicity and Year of Report in Georgia (1987 - 1997) Percent of All Cases 80 70 60 50 40 30 20 10 0 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 White 63 57 54 50 46 38 33 33 35 33 25 Black 36 41 45 49 52 61 65 65 62 65 72 Hispanic 1.7 1.7 1.2 1.2 1.5 1.7 1.6 1.4 2.9 2.2 2.5 Other 0.0 0.2 0.1 0.0 0.2 0.1 0.2 0.2 0.3 0.2 0.3 Source: GA Department of Human Resources, '95-'97 STD/HIV Report In 1990, the share of AIDS cases was relatively equal between non-Hispanic white and non-Hispanic black patients. Prior to this point, the white share had been decreasing from a high of 63% in 1987 and the black percentage had been increasing from a low of 36% in 1987. These trends have continued in this direction through the 1990's. In 1997, the non-Hispanic white population had an all time low 25% of reported AIDS cases in Georgia, while the non-Hispanic black population has reached a peak of 72%. Pediatric AIDS, which include all children under the age of 13, accounted for only 0.5% of all reported cases in Georgia in 1997. This represents a decrease by half from 1993 when pediatric cases were 1% of all reported cases. In 1994 there was a large increase in the number of pediatric cases to 38 for Georgia. Since then there has been an even greater decrease to only 3 reported cases in 1997. This trend is most likely due to newer antiretroviral medications for infected pregnant women that prevent transmission during pregnancy. Unfortunately the trend is back up. According the U.S. Department of Health and Human Services, Public Health Service, HIV/AIDS 1999 Surveillance Report, 14 pediatric cases were reported in Georgia between July 1998 and June 1999. From 1981 to 1997, nearly 87% of all pediatric AIDS cases were children who were at risk by a parent for reason other than transfusion or conditions such as hemophilia. In 1995 it was reported that nearly 75% of these cases were black children. FFY2000 Consolidated Plan for the State of Georgia 41 F igure 18: P e diatric AIDS Cases by Year of Report in Georgia (1990 - 1997) 40 30 20 10 0 '90 '91 '92 '93 '94 '95 '96 '97 # Cases 9 12 22 10 38 29 18 3 Source: GA Department of Human Resources, '95-'97 STD/HIV Report The prevalent category of adult and adolescent cases of AIDS in Georgia continues to be homosexual or bisexual men. However, the percentage for this category has been in a steady decline since 1990 with a small increase in 1995, and totaling 39% of all adult and adolescent cases in 1997. Intravenous drugs users continue to be a factor, accounting for 19% of Georgia's adult and adolescent AIDS cases in 1997. Continued educational efforts, especially within the gay community, have decreased the spread of AIDS. However, the number of cases continues to rise among women, minorities, and heterosexuals, in small cities and particularly rural areas. According to the Georgia Department of Human Resources, the number of AIDS cases reported in Georgia for women has continued to increase dramatically since the early eighties. The 1997 AIDS Surveillance report states that the number of cases for women reached an all time high in 1996 with 451 cases accounting for 19% of all cases reported. The number fell to 355 in 1997, however the percentage rose to 21%. These numbers represent a staggering increase from 1983 when only two cases of AIDS were reported in women. As shown in Table 17, Georgia's metropolitan areas continue to rank higher in the rate of reported AIDS cases. By far the greatest majority of cases are reported from the Fulton County Health District. This area accounted for 48% of the 1,600 cases reported in 1997. This translates into 110 people out of every 100,000 or 1.1 per 1,000 residents reporting AIDS. DeKalb county rated second with 14% of the reported cases and 38 per 100,000 residents affected. Table 17: Top Five AIDS Occurrence Rates within Georgia Health District - 1997 Rank 1 2 3 4 5 Health District Fu lton DeKalb Albany Savannah Columbus # Cases 768 227 74 59 72 Rate per 100,000 Population 110 38 22 22 21 Source: 1995-1997 Georgia AIDS Surveillance Report, Department of Human Resources, Division of Public Health 42 FFY2000 Consolidated Plan for the State of Georgia HOUSING PROBLEMS OF THE POPULATION WITH AIDS In 1995, AID Atlanta reported that approximately 65% of its clients required some form of housing assistance. These are clients that are either in danger of homelessness or are homeless. On a national scale, the National Coalition for the Homeless reported that 36% of people with AIDS have been homeless since learning that they had HIV or AIDS. Additionally, the Coalition reports that up to 50% of persons living with HIV/AIDS are expected to need housing assistance of some kind during their lifetimes. Many AID Atlanta clients were reported to live in independent living facilities in 1995, but remained at high risk of becoming homeless. A large percentage of their clients pay well over 30% of their monthly income on housing. In fact, the average rental for a one-bedroom apartment in Metropolitan Atlanta is approximately 72% 92% of the average income for a person diagnosed with AIDS. Therefore, AID Atlanta reports that clients must often reside in economically depressed or high crime neighborhoods. People living with AIDS face numerous obstacles jeopardizing their housing situation, including: discrimination based on their medical condition, progressions in their illness requiring increasing medical care, and the limitation created by the disease on employment abilities and financial resources. AID Atlanta indicates that affordable single or multifamily units as well as transitional housing are keys to stabilizing the housing problem of their marginally housed clients. In addition, since many people living with AIDS are also substance abusers or have chronic mental health issues, transitional facilities that can offer supportive services are needed. Other marginally housed clients include those who are dependent and are living with family or friends in temporary or unstable situations. These clients may lose their shelter at any time. When their care becomes too stressful or financially burdensome for the householder, the AIDS victim is often asked to leave the home. A needs assessment completed for metropolitan Atlanta and the State of Georgia by the Winfield Group prior to 1995 found that the inability to remain in their current residence was one of the top problems identified by people with HIV and AIDS. Approximately 14% of survey respondents in both metropolitan Atlanta and in the rest of Georgia indicated that getting into their own housing is a specific unmet need that is a major problem. HOUSING NEEDS OF THE POPULATION WITH AIDS According to AID Atlanta, the need for medical, financial, emotional and physical support increases as AIDS progresses. The disruption of employment during hospitalizations and the eventual incapacitation is financially devastating to the patient. Renters can be evicted from their apartments and owners can lose their house due to their inability to pay housing bills. FFY2000 Consolidated Plan for the State of Georgia 43 Housing needs of persons living with AIDS includes short and long-term tenantbased rental assistance, emergency assistance, and with rental and utility deposit assistance. Emergency assistance enables homeless or marginally housed clients who become homeless to access shelter at local hotels and motels. Medical conditions such as tuberculosis and other opportunistic infections often prevent the affected homeless person from entering into shelters. In addition, rental and utility assistance would allow low income people living with AIDS to pay security deposits and first month's rent required even for the most modest housing. AID Atlanta provides housing programs to people with AIDS or HIV. The AID Atlanta Housing program consists of eight different components. The agency owns and operates two transitional housing facilities providing shelter for 10 people living with HIV/AIDS. Residents of these facilities pay 30% of their monthly income as rent and remain in the facility for up to one year with the possibility of extension. Other programs include: a Long Term Rental Assistance program paying 70% of their rent up to $500 each month for a period of one year; Emergency Assistance Fund for those in need of financial assistance for rent/mortgage and utilities (not including phone or cable); a Roommate Referral Program; a Day Sitter Service for those who are not able to stay at home alone; Emergency Shelter / Emergency Lodging; and a program providing public transportation Tokens to assist clients with transportation to and from the agency as well as medical appointments. According to the "Homeless in Metropolitan Atlanta" report by Research Atlanta and published in May 1997, the City of Atlanta has 3 emergency shelter beds and 187 transitional and permanent housing beds dedicated to HIV/AIDS victims. Additionally, There are 20 transitional and 23 permanent housing beds available in DeKalb County. Supportive services needed by people living with AIDS include mental health, substance abuse and support group counseling; employment training, home health nursing, home hospice; personal assistance to locate available affordable housing opportunities; foster care / adoption services; linkage to burial and funeral services; clothing and furniture referrals; food; mortgage and housing counseling and referral; rehabilitation services; credit services; dental and medical referrals; nutritional services; legal services, financial counseling, and access to medication. Estimates on the need for these services are not available; however, indications are that the need is relatively high. According to the Cobb County 1998-2000 Consolidated Plan (published November 1997) Cobb Health workers reported that 146 single individuals and 63 families needed financial assistance and 35 needed supportive housing, including help with daily meal preparation and monthly financial management of bills. High medical bills and their impact on the victim's overall financial stability were cited as the primary problem. Over a two year period, the Cobb/Douglas County Health 44 FFY2000 Consolidated Plan for the State of Georgia District HOPWA program climbed from 301 to 420 clients, and the Health Department has projected that AIDS cases will continue to grow at this rate. The 1998-2002 Consolidated Plan for the City of Albany states that between 1994 and 1996 there was a 35% increase in the number of new patients at the Rural Health Clinic and that 71% of HIV/AIDS persons are living in poverty. There are two facilities for persons with HIV/AIDS with a total of 22 spaces: 10 for final stage care, and 12 for ambulatory patients - each with three meals provided. The Albany Area Primary Health Care operates four clinics in the 14 counties that comprise the Southwest Georgia Health District 8-2. Additionally, Phoebe Putney Memorial Hospital is a 450 bed regional medical center located in Dougherty County, where the majority of HIV/AIDS patients are hospitalized. This facility has agreed to admit these patients without regard to ability to pay and provide ancillary services on the same basis. OTHER SUBPOPULATIONS MIGRANT FARM WORKERS IN GEORGIA During the peak summer season, Georgia's agricultural economy utilizes approximately 200,000 migrant and seasonal farm workers to plant and harvest crops. High concentrations of migrant farm workers exist in the counties of Burke, Colquitt, Decatur, Lowndes, Toombs, and Tattnall. According to the Housing Assistance Council, a National Agricultural Workers Survey was conducted but never published. This survey indicated that in 1993, more than one-third of migrant and seasonal farmworker households nationwide had an annual income under $5,000. Of these households, 46% rented from someone other than their employer and 21% said they or a family member owned the house they were living in on the day they were interviewed. Migrant workers were more likely to get housing from their employers, while non-migrants were more likely to own their home. Therefore, most migrant workers must find housing between jobs or be temporarily homeless. Another comprehensive national survey was performed in 1980. This survey was prepared for the Farmers Home Administration and is the only one of its kind. Findings at the time indicated that there was an unmet need calculated at 76,196 farm labor camp housing units nationwide. Georgia is in the eastern migrant stream that begins in Texas and Florida and moves upward along the coast into New England. Migrant workers are involved in both planting and harvesting of many crops including peaches, tomatoes, onions, melons, and apples. More recent information about housing conditions is sparse and only available for some states, not including Georgia. Telamon Corporation, a private nonprofit organization providing technical assistance to providers of affordable housing to agricultural laborers, has reported that many migrant farm workers have chosen to FFY2000 Consolidated Plan for the State of Georgia 45 settle down in Georgia. Although percentages are not available, Georgia is perceived to contain a very high population of "settled out" farm workers compared to other southeastern states such as North Carolina and South Carolina. In 1995 the State Farm Labor Committee, a group focused on issues of agricultural workers, reported that while some laborers were adequately housed by their employer in units that were regularly inspected by the Department of Labor, most lived in substandard motels and rental units which were not subject to inspection. Both the State Farm Labor Committee and Telamon Corporation estimated that approximately 60% of the migrant farm workers were residing in substandard housing. Telamon estimated that approximately 4-6% of the units that were occupied by farm laborers in Decatur County were overcrowded. It was also estimated in 1995 by the Georgia Legal Services Program Homeless Farmworker Advocacy Project that 10% of shelter residents in Georgia are farmworkers and most have experienced some form of employer exploitation, including inhumane housing conditions. Decent, safe and sanitary short-term housing is needed for single persons, particularly males. Multifamily units are necessary for farm workers who have "settled out" or have families. The U.S. Department of Agriculture (USDA) is the principal source of financing currently in place to meet the housing needs of migrant farm workers. Programs offered include low interest loans, rental assistance, nutritional and other food service programs, and a self-help housing program. In addition to these programs, this population needs supportive services such as education, legal services, health care, job training, and childcare. GEORGIA'S PUBLIC HOUSING RESIDENTS As of May 2000, over 94,822 households received assistance from a total of 199 public housing authorities across the state. Of these households, 52,393 utilize public housing units, 41,046 benefit from Section 8 rental assistance, and 1,383 benefit from modification/rehabilitation assistance. Many public housing authorities have taken steps to encourage residents to assume a more active role in their neighborhoods. Other authorities are focusing on the renovation and modernization of their units to better serve the public. GEORGIA'S ELDERLY AND FRAIL ELDERLY Housing and population characteristics for elderly households are described in the Plan's section entitled "Housing and Homeless Needs Assessment." Preliminary census estimates indicate that Georgia remains the 7th youngest state in the nation and the median age has only increased 2 years to 34 from 1990 to 1999. However, DHR's Division of Aging Services notes that Georgia's population aged 60 and older is expected to increase 52.6 percent between 1990 and 2010, resulting in a population aged 60 and older of over 1.3 million (age 62 and older is considered elderly for this plan). Their research also indicates that Georgia has the fourth fastest growing 46 FFY2000 Consolidated Plan for the State of Georgia elderly population in the United States with those 85 and older being the fastest growing age group; they will increase by 118 percent by 2010. Both the well and frail elderly require a variety of housing and supportive services to facilitate their living conditions. Services such as transportation, outreach, information and referral assistance - as well as health care treatment, health screening and nutritional programs. HUD reports that nationally, nearly 1.5 million older Americans live in housing that needs repair or rehabilitation and over a million have unmet needs for modifications that would improve accessibility. Across the country HUD found a shortage of accessible housing in both owneroccupied and rental properties. Grab bars and handrails are "the only universal design elements that have found their way into the housing market to any significant extent." The U.S Department of Health and Human Services, Administration on Aging (AOA) places responsibility on community planners, the housing industry and consumers to be aware of the importance of exterior and interior accessibility for older people. Considerations should include hills and other outside obstacles as well as placing a room on the first floor that could be used as a bedroom, including provisions for a wheelchair-accessible bathroom with shower. The AOA also states that even those elderly homeowners who no longer have a mortgage payment may have a home that is expensive to maintain or where modifications are needed to insure their safety and improve mobility. Home repair, rehabilitation and modification programs, supported under the Older Americans Act (OAA) and other programs, can help older people maintain their homes, and increase their independence through the installation of grab bars and other modifications. The concept of "universal design" is the concept of designing "housing for a lifetime." It aims to create more functional living environments for everyone. The National Council on Aging (NCOA) as well as other advocates for elders, stress the value of the universal design movement as one strategy to support older people's preference to age in place when aging-related physical and mental frailties compromise their ability to live independently. The home adjusts to the user rather than forcing the residents to relocate, or to stop using parts of the home, or to have to hire help. "Invisible" universal design features can make a house adaptable for a lifetime in addition to adding value and increasing marketability. As the population ages, the problem of abused, neglected or exploited elderly people will also grow. In 1996, approximately 12,000 people over age 60 were helped for one of these conditions by the Department of Family and Children Services Adult Protective Service (APS). Nationally, 5% of people over age 65 are victims of abuse, neglect or exploitation with only an estimated 1 of 14 cases being reported to the authorities. Approximately two-thirds of the abusers are family members and half of the victims are found to be suffering from "self-neglect" meaning they can no longer provide for their own basic needs such as food, shelter or clothing. FFY2000 Consolidated Plan for the State of Georgia 47 The frail elderly also require in-home and adult day care services for assistance to remain in the community while limiting the dependency and loss of dignity that frequently accompanies illness and impairment. In-home services may include a personal care aide to assist in daily activities, a respite care sitter to relieve the primary care taker, a homemaker service to clean and cook, and a home health service to assist in the individual's health care regime. Minimal in-home support prevents the need to institutionalize the elderly person, providing considerable cost savings to both the family and the taxpayer. The Department of Human Resources has estimated that one homemaker can serve approximately twenty clients at the same cost of housing one person for one day in a nursing home. GEORGIANS WITH ALCOHOL AND OTHER DRUG ADDITIONS The Georgia Department of Human Resources, Division of Mental Health, Mental Retardation and Substance Abuse reported serving 154,203 people during SFY1999. These individuals came from all age groups and their ailments included the most severe, long-term problems. Most had no other source of help. Hospitalization of these patients is handled through eight state hospitals and through contracts with private hospitals. Of these hospitals, seven treat people with severe, chronic mental illness and people with alcohol or drug crisis. DHR reports that 1,962 adults were treated in SFY1999 in these state hospitals and 31,756 were treated by community service programs. In total, these programs in Georgia during FY1999 treated 33,718 unduplicated adult clients. This is a 26% reduction from the reported 45,767 treated in SFY1994. However, both figures exclude those treated at private institutions. Residential care is one part of a continuum of essential substance abuse service, ranging from prevention to responding to critical problems, needed to meet the mission of DHR's Division of Mental Health, Mental Retardation and Substance Abuse. Residential care for those with the highest needs includes the following treatment arrangements: j Short-term, intensive inpatient care options with the length of stay dependent on the severity and complexity of the person's problem; j Specialized residential care options for persons with special needs, such as persons with HIV and persons with both mental and addictive illnesses; j Long-term residential care options for persons whose level of impairment requires a length of stay longer than one year; and, j Transitional residential care options, such as halfway houses and recovery residences, with length of stay up to one year. Through DHR, most Georgia communities have prevention activities including preschool programs, parenting programs, teen centers, and mentoring or tutorial programs to help youngsters avoid alcohol and other drugs use. The division also 48 FFY2000 Consolidated Plan for the State of Georgia provides a toll-free helpline to provide prevention information. Approximately 1.5 million people receive some form of prevention services each year. GEORGIANS WITH MENTAL, PHYSICAL AND DEVELOPMENTAL DISABILITIES This population is the most diverse of all groups examined for the plan. The Department of Human Resources, Division of Rehabilitation Services divides its caseload between two categories: the mentally disabled and the physically disabled. The former includes mental retardation, learning disabled, personality disorders, substance abuse, and mental impairments. The latter category includes amputees, orthopedic disabilities, visual impairments, hearing impairments and other physical conditions such as blood disorders and cancer. DHR approximates that 57% of its caseload are mentally disabled and the remaining 43% are physically disabled. DHR reported that 10,230 adults with mental illness received service in FY1999 in state hospital facilities. Other patient groups served include: mental retardation (all ages) - 1,659; and mental illness and substance abuse in children under age-18 1,709. Additionally, 3,020 adults were served in private hospitals for various conditions. DHR's Division of Rehabilitation Services reports that, across several mobility limitation categories, Georgia fares between 2% and 5% worse than the national average. In the category of non-institutionalized persons between ages 16 and 64, 9.1% have a mobility limitation in Georgia compared to 8.9% nationally. Of these individuals, Georgia's employment rate is 2% lower than the national average in the same category. The difference becomes even greater when comparing adults 65 years and older with mobility or self-care limitations. In this subpopulation there is a difference of 4.6% between Georgia (24.7%) and the nation (20.1%). When comparing people with any and severe disabilities over age 16, Georgia continues to compare negatively with the nation as a whole. Georgia has 26.6% of its population over 16 with any disability compared to 23.5% nationally. Of this population, those with severe disabilities make up 13.7% in Georgia compared with 12.5% nationally. Through Vocational Rehabilitation programs administered by the DHR Division of Rehabilitation Services, close to 25,168 Georgians received services in SFY1999. Of these beneficiaries, 3,850 or 15% found employment. Of these newly employed, 90% had severe disabilities. Their average annual income before services was $1,738; their income after services was $11,037. Other vocational efforts included a collaborative agreement with the Department of Education that provided additional counselors to help students with disabilities move from school to jobs. The area of mental retardation appears to be extremely underserved. DHR estimates that there are 88,624 Georgians who are currently eligible for mental retardation services and supports. This number contrasts significantly with those actually receiving services. During SFY1999 1,659 unduplicated individuals FFY2000 Consolidated Plan for the State of Georgia 49 received services through state hospital and 12,008 through community services. These numbers account for only 15% of the estimated population. Additionally, the total estimated persons eligible for services has increased by 30% compared to the estimate reported in the October 1994 strategic plan, Moving Ahead Together, prepared by the Georgia Mental Retardation Strategic Planning Council. It is unclear if this number has actually increased, or if it is related to changes in physicians' diagnosis. The housing needs of Georgia's Special Needs populations vary depending up on the characteristics of the subpopulation. Many of these housing-specific needs include: community-based residential facilities (offering a non-institutional alternative to the mentally ill and retarded); respite homes to provide care for the profoundly disabled when the primary care giver requires time off; retrofitting of existing units to provide access for the physically disabled; new construction of housing units with access for the physically disabled; housing facilities for the physically disabled without age restrictions; and housing choices for the physically disabled integrated within the overall community. Throughout the public hearings for this plan, the concern for both retrofitting modification for elderly and disabled persons and the inclusion of "universal design standards" for new construction which would allow any housing unit to be easily adapted to various types of disabilities was prominently raised. The service needs of Georgia's Special Needs populations vary tremendously depending on the disability, but generally include home medical assistance, respite care, personal care assistance, vocational education, employment assistance, case management, crisis intervention, transportation assistance, residential services, and day treatment. 50 FFY2000 Consolidated Plan for the State of Georgia C. GEORGIA'S HOMELESS NATURE AND EXTENT OF HOMELESSNESS COUNTING THE HOMELESS At this time there are no definitive counts of the homeless population at the local, state or national level. Through the process of developing the State of Georgia's Continuum of Care for the Balance of the State, efforts to estimate homelessness in Georgia indicate approximately 50,000 - 75,000 homeless statewide. A report by Research Atlanta, Georgia State University Policy Research Center, dated May 1997, indicates that the distribution of homeless throughout the state is: Atlanta MSA 40%, Other MSAs - 40%, rural areas - 20%. Based on this distribution, the estimated homeless population of the Atlanta metropolitan area includes up to 30,000 individuals per year. Point-in-time estimates provided in the Research Atlanta report estimate the "average night" homeless population in metropolitan Atlanta at approximately 11,000. By using the percentages above, there are approximately 27,500 homeless individuals in the state of Georgia every night. The National Coalition for the Homeless cites a study by the National Law Center on Homelessness and Poverty (1999). This report estimates the number of homeless on any given night to be over 700,000 nationwide, and up to 2 million people who experience homelessness during one year. During SFY1999 (July 1998 - June 1999), DCA funded homeless programs assisted 50,892 unduplicated individuals and family members with housing and other supportive services. Of this group, 583 individuals and 389 families received shelter and transitional housing. Using the estimated persons per household for 1998 from the U.S. Census Bureau (2.64), a total of 1,610 individuals and family members were served with shelter and transitional housing. While DCA funds are used statewide, many areas, particularly the Atlanta metropolitan area, receive additional funding directly from HUD for homeless programs. GENERAL DESCRIPTION OF THE HOMELESS According to the Stewart B. McKinney Act, 42U.S.C. 11301, et seq (1994), a person is considered homeless if he/she "lacks a fixed, regular, and adequate night-time residence; and... has a primary night-time residency that is: (a) a supervised publicly or privately operated shelter designed to provide temporary living accommodations... (b) an institution that provides a temporary residence for individuals intended to be institutionalized, or (c) a public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings" 42U.S.C. 11302(a). The Term "Homeless individual" does not include any individual imprisoned or otherwise detained pursuant to an Act of Congress or state law. 42 U.S.C. 11032(c). FFY2000 Consolidated Plan for the State of Georgia 51 According to the National Coalition for the Homeless, this definition is usually interpreted to include only those persons who are literally homeless -- that is, on the streets or in shelters -- and persons who face imminent eviction (within a week) from a private dwelling or institution and who have no subsequent residence or resources to obtain housing. The Coalition states that the McKinney definition of homelessness may prove problematic for those persons who are homeless in areas of the country, such as rural areas, where there are few shelters and are more likely to live with relatives in overcrowded or substandard housing (U.S. Department of Agriculture, 1996). Although an exact or even approximate number of homeless is extremely difficult to achieve, a basic picture of the characteristics of the homeless is possible. Figures 19a-c give a general description of the composition of the homeless population of the nation, based on the National Survey of Homeless Assistance Providers (NSHAPC). Figure 19a indicates that, while the majority (66%) of homeless individuals (all ages) are single adults, 23% are under the age of 18 and 11% are their parents. Figure 19a: N ational Composition of Homeless of All Ages (Family v. Single) Families Parents 11% Families Minor Children 23% Singles 66% Source: The National Survey of Homeless Assistance Providers (NSHAPC) When considering homeless adults in the United States, 85% are single and only 15% have families with them. Female-headed families constitute 84% of homeless families. Of the single adults 77% are men. As demonstrated in Figure 19b, Figure 19b: National Race the racial/ethnic breakout of the Composition of Homeless Families homeless family is divided primarily between black (43%) and white (38%) non-Hispanic families. Homeless Black NonHispanic 43% Hispanic 15% Native Hispanic families of any race account for 15% of homeless families. This American 3% distribution roughly mirrors that of single homeless males (50% black White Non- Other 1% non-Hispanic, 41% white nonHispanic, and 10% Hispanic). Hispanic 38% Source: The National Survey of Homeless Assistance Providers (NSHAPC) 52 FFY2000 Consolidated Plan for the State of Georgia GEOGRAPHY OF HOMELESSNESS Homelessness occurs in both urban and rural areas. There are several factors that affect the prevalence of homelessness in different areas including the job market and the availability of affordable housing. Figure 19c shows the national distribution of homelessness found in the 1996 NSHAPC referenced above. Those considered poor in the nation at that time were relatively equally distributed among the central cities (31%), Figure 19c: National Distribution of suburbs/urban fringe areas Homeless Compared to American Poor (46%) and rural areas (23%). The 71% 80% vast majority of homeless 60% 46% individuals were found in the central cities (71%) with some 31% 40% 21% 23% 9% 20% remaining in the suburbs/urban fringe areas (21%), and only a 0% Central Cities Suburbs/ Urban Fringe Rural Areas fraction living in the rural areas H o m e less American Poor 71% 31% 21% 46% 9% 23% of the country (9%). This fact should be considered with the reasons for migrating to these areas. According to the survey, 29% of families and 46% of homeless singles do not live where they originally became homeless. The state's Continuum of Care indicates that, in Georgia, it is common for the rural homeless to be natives of the community in which they find themselves homeless. Typically they have been staying with relatives or friends before become homeless. These individuals and families do not always view themselves as homeless, and the local elected officials, service agencies, and church and business leaders often fail to recognize that homelessness exists in their rural community. The tendency of these areas to want to "take care of (their) own" prevails and there is some reluctance to ask for assistance, rendering the rural homeless "hidden" and for whom providing services is difficult. According to the providers of homeless services in Georgia, rural homelessness is not an isolated phenomenon. Instead, it is a pervasive situation, very complex and very difficult to solve. It is also a situation expected to grow worse with changes in social policy, the disappearance of low-skill jobs, and the dwindling of available resources. CAUSES OF HOMELESSNESS When considering the disparity of geographic locations of the homeless, the question arises as to why people tend to leave an area once they are homeless, as well as why they chose the type of destination that they do. In the national survey, the major reasons given for leaving among all categories were lack of jobs or affordable housing and being evicted from a prior residence. It is a common perception that the larger central cities have a larger and more accessible job market FFY2000 Consolidated Plan for the State of Georgia 53 HOUSING NEEDS OF THE HOMELESS THE AVAILABILITY OF HOUSING FOR THE HOMELESS DCA funded programs across the state made available a total of 5,498 beds in 19992000. The vast majority (60% or 3,299) is located within the Atlanta MSA leaving 2,199 for the balance of the state. The beds available for the state outside of the Atlanta MSA are divided between Emergency Shelter units (1,700) and Transitional Housing (499). These figures increase slightly in the fall and winter months when temporary bed spaces are made available. The state's Continuum of Care Plan estimates that there are anywhere from 50,000 - 75,000 homeless individuals on any given night across the entire state. Assuming this broad range estimate is still on course, the available beds only account for 11% or less of the need. The fact that many bed spaces are reserved for specific groups such as victims of domestic violence, runaway youth, or people with mental or substance abuse problems further accentuates this gap in availability. The Atlanta Task Force for the Homeless estimates that these reserved beds reduce availability by approximately 35% within the Atlanta MSA. In 1998, DCA submitted to HUD the first Georgia Continuum of Care Plan for the "Balance of the State", which allowed organizations in rural communities to compete for HUD SuperNOFA funding. HUD awarded $3.9 million to 6 proposals that year. This plan was updated in 1999 and is attached as Appendix G. The State's Continuum of Care Plan, which covers all but ten of the state's 159 counties, contains a Gaps Analysis. This table shows an estimated need for various services, the current inventory, and the unmet need or gap. According to this analysis, the balance of the state has only 30% of the needed beds/units for homeless individuals, and 18% of the beds/units for persons in families with children. This analysis also indicates great need across the board for all support services and specialized services for subpopulations of Georgia's homeless. THE MOST IMPORTANT NEED - ACCESS TO AFFORDABLE HOUSING The inherent nature of homeless dictates that the solution is to increase access to affordable housing. Based on the current federal minimum wage of $5.15/hour, a household earning a single minimum wage can pay no more than $270 per month for rent before the household becomes cost burdened. Within the Atlanta MSA, this amount only covers 39% of a two-bedroom unit at fair market rent. Affordability varies between different markets. Cost burdened households in Whitfield County could afford 61% of the fair market rent on a two-bedroom unit, 63% in Troup County, or 66% in Calhoun County. Safety is an additional, important consideration to eliminate homelessness. Most housing available at a cost low enough to be affordable is found in neighborhoods affected by violence and crime. Homeless clients have been reported to prefer 54 FFY2000 Consolidated Plan for the State of Georgia staying in shelters rather than living in areas where they or their children's lives may be in danger. Additional programs and incentives are necessary to provide affordable housing opportunities that are dispersed between all of Georgia's communities and accessible to low income families and individuals. More efforts are also needed to prevent new households from becoming homeless and to assist the existing homeless population in securing permanent housing situations. OTHER HOUSING NEEDS Additional bed spaces in emergency shelters, transitional housing facilities, single room occupancy (SROs) and efficiency apartments are necessary across Georgia to serve the existing population. Facilities that do not have time limitations, transitional housing geared specifically to young adults over age 18, and shelters accessible by all household types are some more specific needs noted by homeless providers. Other housing needs identified by providers include: additional housing for homeless men and families; increased access to affordable housing; additional transitional housing; downpayment and first/last month's rent for the homeless and those threatened with homelessness; rental assistance; long-term shelters; additional shelters; and education for the general public on the homeless issue. Additional needs are found with paying past utility bills and new utility deposits; long-term lease or lease purchase arrangements for households leaving transitional housing; and weatherization services. The Cobb Weatherization Program estimates that a 25% reduction in utility costs is achievable by properly weatherizing a housing unit. SUPPORTIVE SERVICE NEEDS Because of the complex nature of homelessness, a wide continuum of supportive services is required to effectively facilitate a successful transition from homelessness into permanent and stable housing. Because of the varying needs of each man, woman and child affected by homelessness, the continuum of required services is wide ranging. A recent survey conducted by DCA of all homeless service providers asked, in their opinion, what was the greatest need in terms of resources to assist their consumers in overcoming obstacles to affordable housing. Of the respondents, the greatest need (47%) was additional case managers; the second greatest need reported was employment training (46%). When asked what types of case management would meet the needs of their clients, more providers indicated the need for general life skills (59%), closely followed by employment training (52%), alcohol/drug treatment (40%), and financial planning (31%). A further breakdown of previously reported supportive assistance needs includes case management, employment training and assistance (job skills, interviewing, community voice-mail, and time management), educational services for children FFY2000 Consolidated Plan for the State of Georgia 55 and adults (G.E.D. classes, reading and writing skills, and after-school tutoring), health care (prescriptions, medical attention including vision, dental and foot care), financial planning (budget management, credit counseling), life skills counseling (parenting education, family planning and management, affordable day and night care services, legal assistance, substance abuse recovery support, transportation assistance, supportive housing programs (locating affordable housing, maintenance programs), and landlord/tenant counseling. A growing concern and barrier to improving their situation for many homeless women and men with children is the lack of available day care. Without this service, many parents are unable to take the time to both look for a job, or a better job, as well as go to work once employment is found. SUBPOPULATIONS OF THE HOMELESS The network of specialized shelter and essential services for homeless individuals and families is most developed in the urbanized core communities. In most communities throughout the State, it is not practical to develop a shelter or service designed specifically for homeless individuals with special needs. However, when a rural provider identifies a client with special needs that they cannot adequately serve, the client is referred to the nearest urban center for acute care needs. Even with these existing gaps, there are gateways into the continuum of care system for subpopulations throughout the state. Some of these special needs and available services are described below. SEVERE MENTAL ILLNESS According to the National Coalition for the Homeless (NCH), homeless people with mental disorders remain homeless for longer periods of time and have less contact with family and friends. However, only 5-7% of homeless persons with mental illness need to be institutionalized; most can live in the community with the appropriate supportive housing options (Federal Task Force on Homelessness and Severe Mental Illness, 1992). NCH also states that findings reveal that persons with mental disorders and persons with addictive disorders share many of the same treatment needs, including carefully designed client engagement and case management, housing options, and long-term follow-up and support services. The State's Continuum of Care reports that, in rural areas, 30% of homeless individuals and 15% of homeless persons in families with children suffer from severe mental illness. NCH cites data from 1996 indicating that approximately 2025% of the single adult homeless population suffers from some form of severe and persistent mental illness. They also state, however, that only 5% of people having a serious mental illness are homeless at any given point in time. The estimated growth in homelessness is not attributable to the release of seriously mentally ill people from institutions, according to NCH. The National Survey of Homeless Assistance Providers and Clients (NSHAPC) found that in 1996 45% of homeless clients reported having mental health problems 56 FFY2000 Consolidated Plan for the State of Georgia with in the past year and 14% reported having mental, alcohol use and illegal drug use problems within the past year. Locally, the May 1997 report "Homeless in Metropolitan Atlanta, prepared by the Georgia State University, estimates that between 12% and 16% and homeless individuals suffer from severe mental illness. The report also estimated that 2% of homeless persons in families are classified as having a serious mental illness. These numbers are based on "point in time" estimates and include those that have other diagnosis such as alcohol or other substance abuse problems. Many long-term treatment participants can access supportive living programs or work with caseworkers for placement in a group home. However, most of these facilities are full, preventing access to these resources for a significant number of this population. The individual stays in an emergency shelter until there is space. Unfortunately, many times they lose their emergency placement when they "act out" in one way or another. When this happens they often lose contact with their case manager and the cycle starts all over. The housing needs of the severely mentally ill homeless include emergency shelter and transitional housing that provides on-site mental health counseling as well as medical services. Once the psychological problems are stabilized, a group home or independent living situation including counseling and medical care services is necessary. ALCOHOL / OTHER SUBSTANCE ABUSE Across the nation, the National Interagency Council on Homelessness, in the 1996 NSHACP states that 46% of the homeless surveyed reported problems with alcohol use in the prior year and 38% reported problems with other substance abuse. Of this population, 12% reported only alcohol problems and 7% reported only other substance use problems. The most recent local estimates are included in the 1997 Georgia State University report, "Homelessness in Metropolitan Atlanta." In this report, substance abuse was estimated as a problem for up to 34% of homeless individuals and up to 20% of homeless persons in families. In Georgia's rural areas, the State's Continuum of Care Plan estimates that 75% of homeless individuals and 35% of homeless persons in families with children are chronic substance abusers. Homeless individuals experiencing problems with alcohol and other drug abuse need emergency shelter and transitional housing that offers chemical dependency counseling and medical services. After the drug problems are stabilized, these individuals benefit from a group home or other independent living situation that facilitates continued counseling and medical care. When substance abuse problems are coupled with mental illness problems, counseling and medical services are necessary to assist with recovery. FFY2000 Consolidated Plan for the State of Georgia 57 DOMESTIC VIOLENCE Lack of affordable housing and long waiting lists for assisted housing are problems nationwide which force many women and their children to choose between abuse at home or the streets. NCH reports that an estimated 32% of requests for shelter by homeless families were denied in 1998 due to a lack of resources. A 1990 Ford Foundation study found that 50% of homeless women and children were fleeing abuse nationwide. The national NHSACP indicates that the quantity of programs related to domestic violence is concentrated in housing programs (28%). Health (14%) and food programs (11%) follow in percentage of available programs nationally. In the Atlanta metropolitan area, it is estimated that 7% of homeless individuals and 39% of homeless persons in families are victims of domestic violence according to the 1997 Georgia State University study. The Georgia Urban County Consortium 1998-2000 Consolidated Plan states that in 1996, the Battered Women's Hotline at the Cobb Battered Women's Shelter received almost 3,000 calls dealing with family violence. They sheltered 493 women with their children, but had to turn away 356. In Georgia's rural areas approximately 25% of homeless individuals and 35% of homeless persons in families with children are victims of domestic violence. According to the Georgia Department of Human Resources, Division of Family and Children Services, the total number of crisis calls received at Family Violence Shelters in 1997 was 51,913. These calls resulted in 3,690 adults and 4,149 children receiving shelter assistance. These numbers represent unduplicated individuals with a total number of nights sheltered of 115,412. Children of battered women are an important subset of this homeless population. As seen in the previous numbers from DHR, over half of the clients served by Georgia family violence shelters in 1997 were children. The Council on Battered Women reports that approximately 66% of the individuals they serve at any given time are children. According to the Georgia Coalition Against Domestic Violence, there are 41 registered domestic violence shelters in the state of Georgia. The Georgia Department of Human Resources (DHR) provides regular training and certification to every shelter in the state. Domestic violence cuts across all cultural, social and economic lines. Battered women reside in all types of housing across all income levels. However, all domestic violence victims who are homeless have a common need for safe, affordable housing when they find they are able to leave the abusive situation. Affordable housing is often not easily available. In some communities, homeless victims must wait three to six months for available public housing. Waiting lists for Section 8 programs often extend from two weeks to twenty-four months. The costs associated with childcare, housing, and basic needs may make victims feel they will not be able to leave their abuser. 58 FFY2000 Consolidated Plan for the State of Georgia As with other homeless subpopulations, transitional housing with supportive services; affordable single and multifamily housing; and rental, utility and security deposit assistance best meet the needs of battered women and their children. The social service needs required by families relocating to safe housing include: support services for both the battered woman and her children, legal advocacy to keep the abuser off the premises, employment training, education, child care services, parenting guidance, and transportation assistance. AIDS RELATED DISEASES Lack of affordable housing is a critical problem for people living with AIDS and other illness caused by the Human Immunodeficiency Virus (HIV). The NCH reports that the prevalence of HIV among homeless people is between 3-20%, with some subgroups having much higher occurrences of the disease. Additionally, 36% of people with AIDS have been homeless since learning that they had HIV or AIDS. It is estimated nationwide that up to 50% of persons living with HIV/AIDS are expected to need housing assistance of some kind during their lifetimes. The national survey by the Interagency Council on the Homeless NSHAPC - reports that approximately 55% of the nation's homeless do not have insurance. This fact amplifies the problem of AIDS in the homeless community. In rural areas of Georgia, the State's Continuum of Care plan estimates that 7% of homeless individuals and 4% of homeless persons in families with children have been diagnosed with AIDS or HIV-related illnesses. Based on the NCH assumption that at some point up to 50% of those living with AIDS are expected to need housing assistance nationwide, the potential demand for homeless services specifically for this population will increase. As an HIV-related disease progresses, the person's need for medical and housing support services grows. The housing needs for victims of HIV/AIDS range on a continuum from independent affordable housing to nursing home care. The Georgia State University report, "Homelessness in Metropolitan Atlanta" indicates that there are only 3 emergency, 207 transitional, and 23 permanent housing/shelter units in the area. During the later stages of the disease, residential hospices and/or nursing homes (end-stage housing) are needed. YOUTH Homeless youth are individuals under the age of eighteen who lack parental, foster, or institutional care. These young people are sometimes referred to as "unaccompanied" youth (National Coalition for the Homeless, April 1999). According to the U.S. Conference of Mayors (1998), unaccompanied youth account for 3% of the urban homeless population. In Georgia, the Georgia State University study reports that unaccompanied youth also account for 3% of all homeless people and 4% of all single homeless in metropolitan Atlanta. The State's Continuum of Care plan estimates that 8% of homeless individuals are unaccompanied youth between 15 and 21 years of age. FFY2000 Consolidated Plan for the State of Georgia 59 Nationally, as reported in the NSHAPC, 93% of homeless school age children attend school regularly, the national proportions of homeless children under 18 are as follows: Ages 0-2: 20% Ages 3-5: 22% Ages 6-8: 20% Ages 9-17: 33% Age unknown: 5% Based on a survey of state funded school districts by the Georgia Department of Education (GADOE), Georgia has approximately 16,649 homeless children (under age 18). GADOE provides funds 24 out of 180 school districts in the state for various programs. Because those districts funded are the larger, more metropolitan areas as well as many small to medium sized districts, this estimate is believed to be fairly accurate. The Atlanta Public Schools alone reported 4,000 homeless students. According to NCH, disruptive family conditions are the principal reason that young people leave home. Some youth become homeless with their families, but are later separated from them by shelter, transitional housing, or child welfare policies. Still other youth become homeless upon discharge from residential or institutional placements -- they are too old for foster care but are discharged with no housing or income support. The NCH reports that the rate of HIV prevalence for homeless youth may be as much as 2 to 10 times higher than the rates reported for other samples of adolescents in the United States. Because of their age, youths are not able to work, therefore, many feel that their only chance for survival is to exchange sex for food, clothing, and shelter. This puts situation them at a much greater risk of contracting AIDS or HIV-related illness. Homeless youth are affected by many different problems and require related services. Previous reports by Georgians for Children note that national research has documented developmental delays in the areas of language development, gross and fine motor skills and personal/social development among homeless preschoolers, and erratic school attendance and academic failure among homeless school age children. Counseling services for both the child and the family are needed to address these issues. For younger children not in school, childcare services are needed to allow the parent to search for and maintain employment. A variety of housing needs exist for homeless youths including emergency shelter and transitional housing. Because of the extreme difficulty in finding foster homes to house adolescents, group homes and independent living programs are necessary for more permanent housing situation. As with other homeless populations, assistance is also needed with finding affordable housing, utility deposits, and other start up costs (furniture, kitchen utensils, and lines). Supportive services are also 60 FFY2000 Consolidated Plan for the State of Georgia needed, such as counseling, educational assistance, transportation assistance, medical and dental service, and job training. PERSONS THREATENED WITH HOMELESSNESS Persons threatened with homelessness include a variety of populations. For the purposes of Georgia's Consolidated Plan, the number of households with incomes below 30% of the median family income and who spend more than 50% of their income on housing is used as a proxy for the number of households threatened with homelessness. This proxy conforms with the statistics indicating that most households immediately prior to becoming homeless spend as much as 70% of their income on housing. Household estimates for 1996 show that Georgia's population threatened with homelessness includes 169,267 households, or just over 6% of the state's total households. Persons threatened with homelessness may also include all of Georgia's population living with AIDS. At any point in time, the disease may limit the person's ability to work and, therefore, threatens the individual's ability to maintain housing. Individuals involved in situations of domestic violence could also find themselves having to make the choice between permanent shelter and escaping a violent situation. Extremely low income households threatened with homelessness require a variety of supportive needs to meet their respective situation, including: rental/mortgage assistance, security deposit assistance, utility assistance, financial management counseling, landlord-tenant counseling, day care, job counseling, substance abuse counseling, and medical services. HOMELESS PREVENTION ACTIVITIES Each year the State of Georgia Department of Community Affairs / State Housing Trust Fund for the Homeless makes funds available through its Consolidated Supportive Housing Application to local governments and nonprofit organizations to coordinate activities or programs designed to prevent the incidence of homelessness. In 1999, there were 28 organizations in Georgia that provided one or more of the following homeless prevention services to homeless individuals and families: j Provide short-term subsidies to defray rent and utility arrangements for families who received eviction or utility termination notices; j Offer security deposits or first month's rent to permit a homeless family to move into its own apartment; j Coordinate programs for landlord-tenant payments to prevent foreclosure on a home; j Make legal services available for indigent tenants in the process of eviction proceedings; j Make payments to prevent foreclosure on a home; and FFY2000 Consolidated Plan for the State of Georgia 61 j Offer innovative programs and activities designed to prevent the incidence of homelessness. The following organizations participated in the program in SFY1999: E Action Ministries, Inc. (Atlanta, Gainesville & Rome) E Albany Outreach Center, Inc. - Albany E Carroll County Emergency Shelter, Inc. - Carrollton E Clayton County Family Care, Inc. - Forest Park E Cobb Family Resources, Inc. - Marietta E CSRA Economic Opportunity Authority, Inc. - Augusta E Decatur Cooperative Ministry, Inc. - Decatur E DeKalb Fulton Housing Counseling Center, Inc. - Atlanta E Enrichment Services Program, Inc. - Columbus E Georgia Law Center on Homelessness and Poverty, Inc. - Atlanta E Georgia Legal Services Program, Inc. (Augusta, Gainesville and Savannah) E Interfaith Hospitality Network of Augusta, Inc., Augusta E Loaves and Fishes Ministry of Macon, Inc. - Macon E Lowndes Associated Ministries to People (LAMP), Inc. - Valdosta E Macon Bibb County Economic Opportunity Council, Inc. - Macon E Metro Atlanta Task Force for the Homeless, Inc. - Atlanta E Midtown Assistance Center, Inc. - Atlanta E S.H.A.R.E. House, Inc. - Douglasville E Saint Vincent de Paul Society, Inc. - Atlanta E Southwest Georgia Community Action Council, Inc. - Moultrie E Sullivan Center, Inc. - Atlanta E Telfair Ministerial Alliance - McRae E Travelers Aid of Metropolitan Atlanta, Inc. - Atlanta E Tri-County Protective Agency, Inc. - Flemington GEORGIA'S HOMELESS POPULATION SUMMARY TABLE As stated earlier, no definitive enumeration exists of Georgia's homeless population because of the dynamic nature of this circumstance. While many homeless individuals may utilize emergency shelters and transitional housing facilities where developing a method of meeting the plan's requirements may be possible, quantifying the extent of Georgia's homeless population who is either unsheltered or staying with family or friends is difficult at best. With this consideration, Part 1 of Table 18 estimates the number of homeless individuals utilizing emergency shelters and transitional housing facilities across the state. These numbers are based on estimates and percentages defined by the Research Atlanta report "Homelessness in Metropolitan Atlanta" and in the State's Continuum of Care plan. Appendix E explains the methodology utilized to adapt these figures for the entire state as well 62 FFY2000 Consolidated Plan for the State of Georgia as the source for estimates in Part II of Table 18. Unduplicated counts of the number of unaccompanied homeless youth, individuals utilizing reception/day centers, and of the unsheltered homeless population are not available. The State of Georgia recognizes that the estimates in this table do not adequately identify the extent of homelessness in Georgia. Table 18: HUD Table 1 - Georgia's Homeless Populations and Subpopulations Part 1: Homeless Population Families with Children 1. Number of Homeless Families 2. Number Persons in Homeless Families Individuals Not in Families 3. You th (17 Years of You n g e r ) 4. Adults (18+ Years of Age) Total (Lines 2+3+4) Total Number Homeless Homeless Unsheltered ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total Number Served By Reception/D ay Emergency Transitional Centers Shelters Housing ----- 7,310 3,133 ----- 23,100 9,900 ----- ----- ----- ----- 29,400 12,600 ----- Part 2: Subpopulations Homeless Persons with Service Needs Related to: Percent of Total Homeless Persons with Service Needs Related to: Percent of Total 1. Severe Mental Illness (SMI) only 13% 4. Domestic Violence 6% 2. Alcohol/ Other Drug Abuse only 30% 5. AIDS/ Related Diseases 11% 3. SMI and Alcohol/ Other Drug Abuse 20% 6. Fam ilies w ith Children 25% Sources: See Appendix E. FFY2000 Consolidated Plan for the State of Georgia 63 D.GEORGIA'S LEAD-BASED PAINT HAZARDS OVERVIEW According to the Georgia Division of Public Health, lead has virtually been eliminated from gasoline, food cans, and post-1978 residential paint in the last two decades. This has contributed to reductions in blood lead levels among children and adults in the nation's population. However, pre-1978 deteriorating lead-based paint, lead-based paint in homes undergoing renovation or repair, lead-contaminated dusts and soils, and lead taken home by parents from a lead-related industry remain important sources of childhood lead exposure. As indicated on the table below, poor, minority children living in large metropolitan areas or living in older housing are at a disproportionately high risk, in Georgia and nationwide. Table 19: Percentage of Children Aged 1 - 5 Years with Blood Lead Levels (BLL) Exceeding 10ug/dL, by Year Housing Built and Selected Characteristics, and Geometric Mean Blood Lead Levels (GMBLL), by Selected Characteristics Characteristic Race/Ethnicity Black Mexican Amer. White Income Low Medium High Urban Status Pop > 1 million Pop < 1 million Total Year Housing Built Before 1946 - After 1946 1973 1973 % % % 21.9 13.7 3.4 13.0 2.3 1.6 5.6 1.4 1.5 16.4 7.3 4.3 4.1 2.0 0.4 0.9 2.7 <0.01 11.5 5.8 0.8 5.8 3.1 2.5 8.6 4.6 1.6 Total All Housing GMBLL (ug/dL) % 11.2 4.3 4.0 3.1 2.3 2.3 8.0 3.8 1.9 2.3 1.0 1.9 5.4 2.8 3.3 2.7 4.4 2.7 Source: NHANS: 1997 The Federal Centers for Disease Control (CDC) states that lead-based paint is the most serious environmental health hazard to children. When lead enters the blood stream of a child, this poison can cause serious physiological damage. High levels of blood poisoning may result in severe mental retardation, kidney impairment and reproductive damage. Low levels of exposure can result in learning and reading disabilities. 64 FFY2000 Consolidated Plan for the State of Georgia In 1994, blood lead levels greater than 10 ug/dl were made a notifiable condition in Georgia. The CDC has established an intervention level of 10 ug/dL of whole blood, a point at which adverse health effects have been documented. Since 1994, more than 1,000 children have been identified with a confirmed case Figure 20: Confirmed Lead Poisoning Cases in of lead poisoning. As of the end Children, Georgia 1995-1997 of 1996, only one county in Georgia, Chatham, had over 350 1000 cases, only three counties had 800 Number of Children over 100 cases, the rest were 600 under 100 cases per county. However, the Division of Public Health believes that this number 400 200 0 1995 1996 1997 is underreported. # of Children 604 774 801 It was once commonly believed that the most common exposure to lead-based paint resulted from the chipping or peeling of improperly maintained painted surfaces or from chewing on a window sill or door frame covered with lead-based paint. However, lead dust is now considered an equally common and dangerous source of exposure in children. Friction surfaces (doors, windows and stair treads) covered with lead-based paint generate lead dust. This dust can coat a child's fingers and toys and subsequently be ingested by the child. However, the mere presence of lead-based paint does not mean that lead poisoning will occur. The condition of the painted surfaces, their location and the maintenance practices of the household all determine whether the lead-based paint presents an immediate threat. If surfaces covered with lead-based paint are not defective (chipping or peeling), are out of reach of children (over five feet from the floor), and are well maintained (been consistently washed with high-phosphate detergent and periodically vacuumed with a high efficiency particulate air system), the lead-based paint does not constitute a hazard or an immediate threat to the health of the occupants. GEORGIA'S LEAD-BASED PAINT SITUATION Many residential properties built before 1979 contain lead-based paint. However, because the manufacturing and sale of lead-based paint was slowly reduced in the US over a long period of time, and was not ended until 1979, and because no houseto-house paint inspection has been taken, it is difficult to measure the exact number of housing units with lead-based paint hazards. It is possible to estimate the number of units based on the age of the housing stock. Previously, HUD has estimated based on a national survey that 90% of the homes built before 1940, 80% of the homes built between 1940 and 1959, and 62% of the units built between 1960 FFY2000 Consolidated Plan for the State of Georgia 65 and 1979 contain lead-based paint. By using these percentages when assessing the situation in Georgia, over 1,000,000 housing units are estimated to be contaminated with lead-based paint. Table 20: Estimated Total Housing Units in Georgia with Lead-Based Paint Year House Built Total Units Number of Units with Lead-Based Paint Pre-1940 186,990 168,291 1940 - 1959 151,731 121,384 1960 - 1979 924,780 790,812 TOTAL 1,263,501 1,080,487 SOURCE: 1990 Census of Population and Housing; HUD User Estimates, 1991. The Georgia counties with the highest number of pre-1979 housing units are those most likely to have lead paint hazards and lead poisoning problems. The following table identifies the ten counties having the largest stocks of pre-1970 housing. Table 21: Counties with Largest Stock of Pre-1970 Housing COUNTY PRE-1970 UNITS PRE-1940 UNITS Fulton 171,777 35,363 DeKalb 113,332 10,619 Chatham 52,446 12,299 Cobb 52,089 3,543 Muscogee 43,939 5,771 Richmond 39,967 7,656 Bibb 37,670 7,372 Clayton 24,669 Not in Top 10 Dougherty 20,578 Not in Top 10 SOURCE: State of Georgia FY 1994 CHAS. Low and moderate-income households are least able to afford well-maintained housing and therefore are often at greater risk of lead poisoning. Over 800,000 housing units occupied by low and moderate-income families are believed to have lead-based paint hazards. This problem equally impacts owners and renters with low and moderate incomes. Nearly 55% of all lead contaminated, low and moderate-income units are occupied by owners and the remaining 45% are occupied by renters. 66 FFY2000 Consolidated Plan for the State of Georgia IV. HOUSING MARKET ANALYSIS A. GENERAL CHARACTERISTICS OF GEORGIA'S HOUSING MARKET HOUSING MARKET TRENDS IN THE 1980'S Three factors contributed to the housing market growth in the 1980's: population growth, small household sizes, and the movement of the baby boom generation into the housing market. The population growth during the 80's occurred in the state's metropolitan areas rather than its rural communities. Additionally, the 1990 Census indicated that over 800,000 Georgians over five years of age resided in a different state in 1987. The reduction in household size, coupled with the increase in population, increased the demand for housing units as well. Trends such as women in the work force, the increased divorce rate, and Georgians over 65 living alone contribute to the increased housing needs as well. During the 1980's the baby boom generation's youngest set moved into the stage of life where new households are formed and housing units are purchased and/or rented. HOUSING MARKET TRENDS IN THE 1990'S During the 1990's, Georgia has continued to increase in population by almost 2% every year (Figure 21). The state remains one of the fastest growing in the nation, having the 4th largest projected net increase in population between 1995 and 2025. Between 1990 and 1996, Georgia's metropolitan areas grew by 15.8% and accounted for 68.5% of the state population in 1996. By Figure 21: State Population Growth contrast, the rural areas of (thousands) the state grew by only 8000 8.9% during the same 7000 period and held 31.5% of 6000 the population in 1996. In 5000 the 1990's, the Atlanta 4000 MSA led the way with a 3000 26.6% increase between 1990 and 1998. In 2000 1000 addition, three Atlanta 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 P o pulatio n 6507 6621 6759 6894 7046 7189 7332 7486 7637 7788 MSA counties (Forsyth, % Increas e 0.44% 1.76% 2.09% 1.99% 2.20% 2.02% 2.00% 2.10% 2.01% 1.99% Henry, and Paulding) rank among the top ten fastest growing counties in the nation. The Atlanta MSA's rate of increase matches that seen in the 1980's, and is nearly two-thirds greater than any other MSA in the state. The only MSA to actually decrease in population was the Albany MSA with a 4.7% reduction in population. This continued growth, FFY2000 Consolidated Plan for the State of Georgia 67 combined with increasingly smaller household sizes and record low mortgage rates, has spurred tremendous growth in the housing market for Georgia as well as for the nation. Figure 21a: Estimated Georgia Population: 1998 NonMSA 31% MSA 69% Figure 21b: Estimated MSA Population: 1998 6% 6% 4% 3% 6% 75% Atlanta, GA MSA Augusta-Aiken, GA-SC MSA * Chattanooga MSA (GA only) Columbus MSA (GA only) Macon, GA MSA Savannah, GA MSA Source: U.S Census Bureau Unlike the 1980's, migration into Georgia from other parts of the country has leveled off. In 1992 the U.S. Census Bureau reports a dramatic 36% net domestic migration rate, or 36% of the population increase coming from areas outside of the state rather than the growth of current Georgia population. In 1999 the balance was fairly even with an almost 2% higher share of the population growth coming from within the state. Another factor affecting the housing market in the state is the continuing decline of the household size. In 1980 the average household consisted of 2.84 people. In 1990 the number dropped to 2.66, and fell again in 1996 to 2.64. As in the 1980's, factors contributing to declining household size include high divorce rates, lower instances of re-marriage or first-marriages, fewer children per family, the children of the baby boom generation moving out and starting their own households, and the increasing population aged 65 and older. 68 FFY2000 Consolidated Plan for the State of Georgia Table 22: Changes in Key Housing Indicators: 1990 - 1998 Category 1990 Number (Georgia) Total Housing Units 2,638,418 Occupancy Total Occupied H ousing Units Percent Total Vacant Housing Units Percent Tenure Owner Occu p ied H ousing Units Percent Renter Occu p ied H ousing Units Percent Housing Costs Med ian Home Value Med ian Gross Rent 2,366,615 90% 271,803 10% 1,536,829 65% 829,786 35% $71,300 $344 SOURCE: U.S. Census Bureau , 1998 Estimates 1998 Number (Georgia) 3,184,000 Percentage Change 1990 - 1998 (Georgia) 21% 2,843,000 20% 89% 341,000 25% 11% 2,267,008 48% 71% 916,992 11% 29% $117,470 65% $573 67% As shown in Table 22 above, the number of occupied housing units increased approximately 20%, just slightly lower than the 21% increase in total housing units for the state. Increased homeownership rates and rising number of households are factors in the larger growth rate for owner occupied housing units when compared to renter occupied units. This trend is also reflected in the change in percent of total units for each tenure category. Homeownership rates in Georgia grew between 1990 and 1998 despite the median home value increasing by 65% during that time. The Median Gross Rent indicated in the above table represents the median rent for a two-bedroom unit in Georgia. With a 67% increase since 1990, lower income households are having an increasingly difficult time finding affordable housing. According to the National Low Income Housing Coalition (NLIHC), an extremely low income households can afford monthly rent of no more than $330 - only 58% of the state's median rent. A minimum wage earner, earning $10,712 annually, can afford monthly rent of no more than $267.80 without becoming cost burdened. A minimum wager earner in Georgia would have to work 86 hours per week to afford the two-bedroom unit without becoming cost burdened and 44% of renters in Georgia (367,823 households) are unable to afford Fair Market Rent for a twobedroom unit. HOUSING MARKET IN 1999 The housing market, in terms of home sales and homeownership, has been on the rise nationwide for the last several years. In 1999 records were set in both of these areas. According to the Real Estate Outlook, a publication by the National Association of Realtors, the quality of homes has also been on the rise, surpassing that of homes considered as "luxury" only a few decades ago. In terms of size, homes in 1990 averaged 5.2 rooms per unit. With the removal of older housing stock and the higher number of rooms in newly built homes, today's units average 5.9 rooms per unit and will continue to increase in the years ahead. Today's homes FFY2000 Consolidated Plan for the State of Georgia 69 are also larger, averaging 44% more square footage in 1998 than in 1970. Currently a little less than 5% of U.S. households are crowded (>1 person per room), with southern states showing a rate of crowding less than the national average. HUD reports that the Atlanta metropolitan area was the "Nation's busiest housing market" in 1999. Authorized building permits in the area totaled 60,477 representing a 5% increase from 1998. Both single-family and multifamily activity fared well showing 5% and 7% increases respectively. The median sales price for existing homes have increased more than 7% from 1998 to $123,700, compared to a 42% increase from 1990. HUD also indicates that the rental housing market in the area remains relatively strong; however, concerns are increasing related to potential overbuilding. Absorption of new rental units remains mixed, with some submarkets leasing up immediately after opening while other units take up to two years to lease up. A recent apartment survey reported that rent reductions were available for more than 40% of units on the market. The conversion of up to 5,000 units to condominiums has helped to reduce the market competition. Despite the growth in the housing stock in metro Atlanta, Georgia's low and moderate income households have not necessarily realized the benefits of this growth. According to Housing Secretary Andrew Cuomo, "the economy is driving up rents, rents are going up and those on fixed or low incomes can't keep up with the rent increases." Locally, metro Atlanta's booming housing market has had a devastating effect on the availability of affordable rental property. The Atlanta Journal-Constitution (AJC) reported in March 2000 that approximately 4,000 apartments in the lower rent category have been demolished in three years, and that 3,000 of them were replaced with complexes with higher rents. Rents overall rose 4.7% last year, while rents for lower grade apartments increased by 4.8%, according to the AJC article. Although interest rates are rising again, the U.S. Bureau of the Census reports that the homeownership rate in 1998 for Georgia was just below than 72%. Despite the recent increase and with only three exceptions, mortgage rates are still at their lowest point in 30 years. The rate for a 30-year fixed rate mortgage nationwide as of April 3, 2000 is 8.23%. On that date, Georgia came in just under the nation with 8.15%. Atlanta's housing market remains relatively affordable compared to the average metropolitan housing market nationwide. For 1999 the National Association of Homebuilders (NAHB) calculated the Housing Opportunity Index (HOI) for the Atlanta MSA as 74.8. This score is a decrease from the 1994 score of 79.6 and indicates that just below 75% percent of the homes on the market can be purchased by a household of median income, which for Atlanta is $59,900. The national average was 63.4 ranging from a high of 89.6 in the Springfield, IL MSA where housing is most affordable, to a low of 11.9 in the San Francisco, CA PSMA where less than 12% of the homes on the market are available to households with a median 70 FFY2000 Consolidated Plan for the State of Georgia income for the area. The NAHB study did not include figures for other Georgia metropolitan areas or for the state as a whole. CONDITION OF GEORGIA'S HOUSING STOCK Census data does not provide information on the structural condition of housing units and the state has not conducted a systematic inventory of housing conditions within Georgia. Without this systematic inventory, housing researchers often use the age of a housing structure as a proxy for the condition of an area's housing stock. This substitute has obvious limitations: no information is provided on the actual structural condition and the remaining older structures may be the most wellconstructed of all housing. However, this statistic does provide some measure of housing condition in that newer housing includes kitchen facilities and indoor plumbing, lacks lead-based paint, and has had fewer years to deteriorate from lack of maintenance. Until data from the 2000 Census is available, the most current statistics come from the 1990 Census of Population and Housing. As shown in Table 23 the average structure in Georgia was built between 1970 and 1979. The Atlanta MSA contains the newest housing stock. Over 37% of its structures were built after 1980. The Savannah MSA's housing stock is oldest. Nearly 24% of Savannah's structures were built prior to 1950. Housing in the state's non-metropolitan areas is generally older than housing found in Georgia as a whole. FFY2000 Consolidated Plan for the State of Georgia 71 Table 23: Year Housing Structure Built by Jurisdiction AREA State Total Albany MSA Prior to 1940 8.1% 4.4% YEAR STRUCTURE BUILT 1940 - 1949 1950 - 1959 1960 - 1969 1970 - 1979 6.4% 7.3% 11.7% 17.3% 17.2% 21.6% 24.5% 28.5% Athens MSA Atlanta MSA 9.9% 5.7% 6.6% 4.9% 18.9% 10.2% 14.5% 17.5% 23.2% 24.3% 1980 - 1990 32.1% 20.9% 27.1% 37.3% Augusta MSA Chattanooga MSA * Columbus MSA * 8.0% 8.5% 8.5% 6.6% 8.7% 10.0% 12.0% 14.3% 19.0% 17.4% 19.1% 24.1% 25.9% 25.1% 20.6% 30.1% 24.4% 17.7% Macon MSA 8.3% 8.0% 15.5% 20.3% 23.5% 24.4% Savannah MSA Non-MSA Areas 12.9% 9.7% 11.0% 6.6% 17.0% 18.9% 14.4% 14.5% 19.9% 23.2% 24.9% 27.1% The figures for the Chattanooga and Columbus MSAs include only those areas located in Georgia. SOURCE: 1990 Census of Population and Housing. Further discussion of the condition of Georgia's housing stock according to HUD definition is included in Section III, Housing and Homeless Needs Assessment. REGIONAL VARIATIONS IN HOUSING MARKET CONDITIONS The condition of housing markets varies between regions within the state due to differences in population growth, employment growth and personal income growth. Table 24 portrays the regional differences in these factors through estimates for the period of 1990 to 1997. The regional boundaries are based on trade and traffic patterns determined by the University of Georgia's Selig Center for Economic Growth as published in Georgia Trend magazine's 1994 Economic Yearbook issue. Table 24: Regional Growth Rate Projections: 1990 - 1997 Region Population Annual Gro w th Rate Employment Annual Gro w th Rate Total Personal Income Annual Gro w th Rate Atlanta 2.8% 3.4% 8.3% Central Coastal 1.0% 1.7% 1.6% 2.2% 5.6% 6.3% East Central Northeast Northw est Sou theast Southw est West Central STATE 1.0% 2.0% 1.5% 1.3% 0.8% 0.5% 1.9% 0.8% 2.8% 1.9% 2.2% 2.0% 1.7% 2.7% 4.7% 7.7% 6.4% 6.4% 6.0% 6.0% 7.3% SOURCE: University of Georgia Selig Center for Economic Growth (em p loyment, p ersonal in com e); Georgia Tech State Data and Research Center (popu lation ). 72 FFY2000 Consolidated Plan for the State of Georgia Counties by Region: Atlanta Barrow, Butts, Carroll, Cherokee, Clayton, Cobb, Coweta, DeKalb, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Spalding, and Walton. Central Baldwin, Ben Hill, Bibb, Bleckley, Crawford, Dodge, Dooly, Houston, Irwin, Jasper, Jones, Lamar, Laurens, Macon, Monroe, Montgomery, Peach, Pike, Pulaski, Putnam, Taylor, Telfair, Treutlen, Twiggs, Upson, Wheeler, Wilcox, and Wilkinson. Coastal Brantley, Bryan, Camden, Chatham, Effingham, Glynn, Liberty, and McIntosh. East Central Burke, Columbia, Emanuel, Galscock, Greene, Hancock, Jefferson, Jenkins, Johnson, Lincoln, McDuffie, Richmond, Taliaferro, Warren, Washington, and Wilkes. Northeast Banks, Clarke, Dawson, Elbert, Fannin, Franklin, Habersham, Hall, Hart, Jackson, Lumpkin, Madison, Morgan, Oconee, Oglethorpe, Rabun, Stephens, Towns, Union, and White. Northwest Bartow, Catoosa, Chattooga, Dade, Floyd, Gilmer, Gordon, Haralson, Murray, Polk, Walker, and Whitfield. Southeast Appling, Atkinson, Bacon, Bulloch, Candler, Charlton, Clinch, Coffee, Evans, Jeff Davis, Long, Pierce, Screven, Tattnall, Toombs, Ware, and Wayne. Southwest Baker, Berrien, Brooks, Calhoun, Clay, Colquitt, Cook, Crisp, Decatur, Dougherty, Early, Echols, Grady, Lanier, Lee Lowndes, Miller, Mitchell, Quitman, Randolph, Schley, Seminole, Sumter, Terrell, Thomas, Tift, Turner, and Worth. West Central Chattahoochee, Harris, Heard, Marion, Meriwether, Muscogee, Stewart, Talbot, Troup, and Webster. During the development of the FFY1995 Consolidated Plan, forecasters had projected that the Atlanta and Northeast regions would lead the state in terms of population, employment and personal income growth. As the above estimated indicate, they were on target. Atlanta led the state in all three factors, with the Northeast region accounting for the second largest increases in all categories. The slower growth rate regions were: Population - West Central, Employment - East Central, and Personal Income - East Central. The housing markets in these areas tend to be significantly affected by these trends. Private housing developers in the state's slow growth regions may experience difficulties or lack the necessary financial incentive to construct housing units using only conventional financing. Thus, in order to provide needed affordable housing, public incentives may be needed to financially solidity projects. In Georgia's growth regions, continued public financial assistance may be necessary to help maintain affordable housing for low and moderate income households who may not benefit from the expected growth in personal income. Incentives may range from housing vouchers for low income tenants to financial subsidies paid directly to developers to construct affordable housing. FFY2000 Consolidated Plan for the State of Georgia 73 Based on the FFY1994 CHAS data, Table 25 shows regional differences that exist in the concentration of households below 80% of median family income. In the most prosperous region, Atlanta, less than 38% of the households are estimated to be of low or moderate income. Conversely, in the state's poorest region, the Southeast, almost 47% of all households are of low or moderate income. Figures at the county level range from a low of 23% in Fayette County to a high of 64% in Clay County. On average, nearly 41% of the state's households are at or below moderate income. These large disparities indicate a substantial need differential between counties and between regions. Table 25: Regional Concentrations of Low and Moderate Income Households Region Percentage of Low and Moderate Income Households Atlanta Central Coastal East Central Northeast Northwest Southeast Southwest West Central STATE Section 8 Counties * 37.8% 43.4% 40.4% 44.4% 42.8% 41.4% 46.9% 46.3% 41.3% 40.8% 41.4% SOURCE: FY 1994 CHAS CD-ROM. Section 8 counties include all Georgia counties EXCEPT: Cobb, DeKalb, Fulton, Clayton, Bibb, Miscogee, Sumter, Richmond, Chatham and Glynn. This disparity between counties is particularly important when you consider that counties within generally affluent regions may still have a high percentage of low and moderate income households. The most notable example is Butts County within the Atlanta region where over 62% of its households have incomes below 80% of the median family income. The relationship between economic conditions and the housing market can be seen in the prevalence of housing by type. As shown in Table 26 below, 1997 construction of single family units was prevalent statewide with a 63% share of the housing market. Compared to census data, this percentage is 2% less than the average housing type in Georgia during 1990. However, the same comparison of manufactured housing shows almost twice of share. Regional variations of these trends are key in determining the factors involved. The Atlanta region, the most urban of all areas, claims the lowest percentage of manufactured homes delivered in the state during 1997. On the other end of the scale, the Southeast region, the only area that does not contain at least one MSA, contains not only the highest percentage of manufactured homes, but also the lowest 74 FFY2000 Consolidated Plan for the State of Georgia percentage of single family housing permits for the same period. These trends show that, while single family housing continues to dominate the housing market, an increasing number of households are turning to manufactured housing. This trend may be due to a combination of several factors: j The lack of available skilled trades people in rural areas to construct housing; j Faster and easier access to financing for a manufactured home than for improved real estate loans; and j Manufactured homes provide housing more quickly than newly constructed units. Table 26: N e w Construction by Housing Type and Region: 1997 Region Single Family Multi Family M a n u f a c t u re d Units Units Home Units Atlanta 73% 22% 5% Central 42% 10% 48% Coastal 62% 10% 28% East Central 42% 4% 53% Northeast 65% 9% 26% Northwest 62% 12% 26% Sou theast 20% 4% 76% Sou thw est 36% 9% 55% West Central 56% 22% 22% STATE 63% 16% 21% Source: Univ. of Georgia Selig Center for Econom ic Growth (single & m u lti fam ily); 1998 Georgia County Gu ide (manufactured homes) Nationally, the Manufactured Housing Institute (MHI) reports that in 1996 the median household income for those living in manufactured housing was $24,500, a slight increase from 1993. Their survey also indicated that manufactured housing is attractive to people at all life stages with different household types comprising relatively equal portions. Reported households with the highest percentage were parents with children at home. Their household size remains steady with twoperson households and 38% of those surveyed had completed high school, 46% had attended college. MHI reported that, in 1997, manufactured housing represented 24% of new single family housing starts, and 31% of new single family homes sold. FFY2000 Consolidated Plan for the State of Georgia 75 B. INVENTORY OF GEORGIA'S HOMELESS FACILITIES & SERVICES OVERVIEW In response to the growth in homelessness and the availability of increased funding sources, the network of organizations that assist homeless individuals has increased substantially since 1980. Several formal organizations have been incorporated to serve the needs of Georgia's homeless either directly or indirectly through coalitions, task forces and other networks. The oldest community homeless service network is the Atlanta Task Force for the Homeless. Initially formed in 1981, the Task Force coordinates services, shelters, and advocacy efforts within the Atlanta metropolitan area. The Task Force also coordinates monthly networking and informational meetings among shelter providers and service agencies, directing each session to specific issues. There are other Task Force organizations in Augusta, Valdosta and Columbus. These organizations are all individually incorporated and exist to provide direct services to homeless persons and to coordinate efforts with other providers and groups. New to the Atlanta Metropolitan region is Homeward Inc. This organization is a collaborative partnership developed to assist organizations in the Atlanta region as they work to meet the needs of people who are homeless or at risk of becoming homeless. The organization's mission is to enhance the work of government and other organizations in the region as they seek to decrease and prevent homelessness. The Homeward Inc. collaboration consists of over 300 representatives from government agencies, service providers, foundations, and business community as well as individuals from the homeless community. On a statewide level there is the Georgia Coalition to End Homelessness. The Coalition is a statewide network of service providers, advocates and homeless individuals who are committed to ending homelessness in a humane fashion. The coalition has member organizations in Albany, Athens, Atlanta, Augusta, Cobb, Columbus, Macon, Savannah and Valdosta. The Coalition holds monthly meetings to share information, plans training sessions for members, and develops policy recommendations for the General Assembly. Also operating on a state level is the Georgia Transitional Housing Coalition. This organization was created in 1993 and provides a statewide network for approximately 100 transitional housing providers to share information on issues specific to these organizations. There are many other community-based homeless networks active in Albany, Atlanta, Athens, Augusta, Cobb County, Columbus, Gainesville, Gwinnett County, Habersham County, Gainsville, Macon, Rockdale County, Rome, Savannah, Statesboro, Valdosta and Waycross. These organizations provide a variety of 76 FFY2000 Consolidated Plan for the State of Georgia services, including collaborated case management, shared database management and several other advocacy and coordination functions. In order to provide financial assistance to sponsors of housing and service programs designed to mitigate homelessness, the General Assembly created in 1989 the State Housing Trust Fund for the Homeless. The Georgia Department of Community Affairs coordinates activities of the Trust Fund and a nine-member commission sets its policy. The Trust Fund provides financial assistance as low interest loans and grants to eligible nonprofit organizations and local governments. Since 1998, the Trust Fund has also developed an annual Continuum of Care for the Balance of the State that allows organizations in non-entitlement communities to compete for U.S. Department of Housing and Urban Development (HUD) homeless assistance funds. The State Housing Trust Fund also receives formula entitlement homeless assistance funds annually from HUD and receives an annual appropriation from the Georgia General Assembly. Altogether the Trust Fund is able to make resources available funds for emergency shelter and transitional housing operations, supportive services, acquisition and development, nonprofit technical assistance, prevention and technical assistance. Since 1989, the Trust Fund has awarded $28.8 million to local governments and private nonprofit organizations to address homeless issues. Created by Congress in 1987 and administered by DCA, the McKinney Emergency Shelter Grant Program (ESG) provides financial assistance to shelters and homeless service providers in meeting the emergency shelter needs of homeless individuals and families. The ESG program supports local governments and nonprofit organizations in opening emergency shelters and transitional facilities and in providing social services to homeless persons. Eligible activities under this program include the rehabilitation or conversion of buildings for use as emergency shelters, the payment of certain operating and social service expenses, and homelessness prevention activities. The Housing Trust Fund matches every federal ESG program dollar with money from the Georgia General Assembly. Between 1989 and 1999, $4.6 million were awarded for ESG programs. DCA administers this program in Georgia. FACILITIES EMERGENCY SHELTERS AND TRANSITIONAL HOUSING While most facilities are concentrated in the State's urban areas, emergency shelters and transitional housing are located throughout Georgia. According to program records, the state contains approximately 186 emergency shelters with an estimated total bed capacity of 5,850. Table 27 identifies the locations of SFY1999 Emergency Shelter and Transitional Housing Grant recipients by region. Appendix F identifies all SFY1999 ESG program participants. FFY2000 Consolidated Plan for the State of Georgia 77 Table 27: Locations of SFY1999 Emergency Shelter and Transitional Housing Grant Recipients by Region LOCATION NUMBER OF LOCATION NUMBER OF FACILITIES FACILITIES Atlanta West Central Atlanta 27 Columbus 7 Carrollton 1 LaGrange 1 Clarkston 1 Talbot 1 Clayton 1 East Central Cobb 1 Augusta 6 College Park 2 Northeast Conyers 1 Athens 3 Decatur 2 Blue Ridge 1 DeKalb 3 Cornelia 1 Doraville 1 Cumming 2 Douglasville 3 Clarksville 3 Forest Park 1 Dahlonega 1 Griffin 1 Gainesville 1 Hapeville 1 Northwest Marrietta 4 Canton 1 Monroe 1 Cartersville 3 Morrow 1 Dallas 1 Norcross 1 Dalton 2 Roswell 1 Lafayette 1 Winder 2 Rome 1 Central Southeast Dublin 1 Waycross 1 Macon 4 Southwest Warner Robbins 2 Albany 5 Coastal Lebanon 1 Brunswick 2 Quitman 1 Hinesville 1 Thomasville 1 Saint Mary's 1 Valdosta 2 Savannah 7 Statesboro 1 TOTAL 122 NOTE: Figures include emergency shelter and transitional housing awards made during SFY1999. SOURCE: Georgia Department of Community Affairs. SUPPORTIVE SERVICES If the first key to helping homeless persons is providing them with housing, then the second key is to provide a range of supportive services designed to assist them in reaching the highest level of self-sufficiency possible. What follows is a list of organizations in Georgia that provided supportive services in the SFY1999 and were funded by the Trust Fund. The services includes such things as case management, substance abuse treatment, mental health counseling, meals, clothing, security deposits and other activities designed to move people towards self-sufficiency. 78 FFY2000 Consolidated Plan for the State of Georgia Table 28: SFY1999 Supportive Services Location Number Of Location Facilities Adel 1 Douglasville Albany 3 Forest Park Athens-Clarke 3 Gainesville Atlanta 22 Hinesville Augusta 8 Macon Austell 1 Marietta Carrolton 1 McRae Columbus 2 Moultrie Dalton 1 Rome Decatur 1 Savannah DeKalb 2 Valdosta TOTAL SOURCE: Georgia Department of Community Affairs. Number Of Facilities 3 1 1 1 3 2 1 1 1 6 1 66 FAMILY VIOLENCE SHELTERS The Department of Human Resources has 41 certified family violence shelters and programs throughout Georgia covering all 159 counties. Core services include 24hour crisis line, shelter, support groups, children's program, legal advocacy, crisis intervention, comprehensive case management, community resources and referrals. The DRH Family Violence Program staff can be reached at (404) 463-0192. SERVICES COMMUNITY KITCHENS, DAY SHELTERS AND OTHER SERVICES Approximately 174 organizations provide day shelter, 5 facilities are community kitchens, 13 shelters are affiliated with the salvation army, 6 centers provide legal assistance, 10 shelters offer alcohol and addiction recovery assistance, and 29 shelters are oriented to youth services. These facilities and organizations are located throughout Georgia. FFY2000 Consolidated Plan for the State of Georgia 79 COUNSELING SERVICES AVAILABLE THROUGH ESG FACILITIES: According to the State's "Profiles of Homelessness in Georgia" report completed in January 1994, a vast majority of ESG homeless facilities offer counseling to homeless families and individuals. The ESG program funding allocation formula provides increased funding incentives for facilities that offer services and counseling to guests beyond basic shelter and food. Table 34 below indicates the number of organizations that were reported as providing counseling and services in addition to shelter in 1994: Table 29: Counseling Services offered by ESG Program Participants Counseling Service Number Percentage Of ESG Recipients Employment Counseling 111 70% Health Counseling 104 65% Welfare Benefits 100 62% Counseling Housing Counseling 117 73% Clothing Assistance 115 72% Children Day Care 43 27% SOURCE: "Profiles of Homelessness in Georgia," January 1994, DCA. HOMELESS PROGRAMS SUPPORTED OR OFFERED THROUGH GEORGIA DEPARTMENT OF HUMAN RESOURCES The Department of Human Resources supports the programs outlined in Table 30 to support and assists homeless families and individuals. Table 30: Homeless Programs Supported by DHR Program/Service Counties Served Type of Assistance Available Metro Columbus Taskforce for the Homeless Statewide Training and Technical Assistance to Homeless Coalition. ACTION, Inc. CSRA, Inc. Barrow, Clarke, Elbert, Green, Jackson, Madison, Morgan, Oconee, Oglethorpe and Walton Burke, Columbia, Emanuel, Glascock, Jefferson, Jenkins, Lincoln Congregate feeding: FEMA resettlement; referral; Day Services center Homeless Prevention (DCA) Richmond State ESG - Transitional Housing; City ESG Transitional Housing; City ESG - Prescription for the Homeless; Next Step; Church of the Good Shepherd. 80 FFY2000 Consolidated Plan for the State of Georgia Program/Service Concerted Services, Inc. EOA SavannahChatham County, Inc. Macon-Bibb County EOC, Inc. Ninth District Opportunity, Inc. North Georgia Community Action, Inc. Southwest Georgia CAC, Inc. Tallatoona EOA, Inc. Counties Served Appling, Atkinson, Bacon, Brantley, Bulloch, Candler, Charlton, Clinch, Coffee, Effingham, Evans, Jeff Davis, Long, Pierce, Tattnall, Toombs, Ware, Wayne Chatham Bibb Banks, Dawson, Forsyth, Franklin, Habersham, Hall, Hart, Lumpkin, Rabun, Stephens Catoosa, Chatooga, Cherokee, Dade, Fannin, Gilmer, Murray, Pickens, Walker, Whitfield Baker, Calhoun, Colquitt, Decatur, Dougherty, Early, Grady, Lee, Miller, Mitchell, Seminole, Terrell, Thomas, Worth Gordon, Haralson, Polk Type of Assistance Available Housing Assistance; Employment Support Services; Mental Health and Medical Referrals; Transportation Assistance; Substance Abuse Referrals and Counseling. Transitional Housing and Supportive Services Homeless Supportive Housing (DCA); Next Step Housing Case Management, Resettlement Activities; Temporary or Permanent Housing/Cash Assistance and Referral, Money Management, Crisis Intervention. Emergency Assistance, referrals. Emergency assistance, referral and coordination with shelter and supportive social services agencies, case management. Transitional Housing Douglas Transportation SOURCE: Georgia Department of Human Resources. DHR also directly administers many programs available statewide to homeless families and individuals. These programs include: Medicaid: Provides payments for medical assistance to qualified indigent people over age 65, members of families with dependent children, pregnant women, and physically or mentally disabled individuals. Food Stamps: Are available to all applicants who qualify based on income and other criteria. Prevention of Unnecessary Placement (PUP) Program: Provides family preservation services to families with children at risk for placement out of the home or ready for reunification. FFY2000 Consolidated Plan for the State of Georgia 81 Low Income Home Energy Assistance Program (LIHEAP): Provides financial assistance to low income eligible households to meet home energy costs and emergency assistance to meet energy emergencies. Projects for Assistance in Transition from Homelessness (PATH): Provides funding to public agencies and private nonprofit organizations to implement eligible services for the mentally ill homeless. These services include outreach services, screening, diagnostic and treatment services, staff training, case management services, residential supervision and support, referrals for primary health services, job training, educational services, and relevant housing services. Programs receiving funding are located in Fulton and DeKalb counties. Georgia Nurses Foundation Clinic for the Homeless at St. Luke's: Provides early treatment of acute infections or complications of chronic disease and links homeless clients with appropriate providers to meet their health and social needs. Homeless Outreach Services Team (HOST): Provides services at seven sites within the Savannah area, including basic primary health care, health information and referral, counseling and crisis intervention, case management, emergency assistance, housing assistance, transportation, and referral for employment and training. 82 FFY2000 Consolidated Plan for the State of Georgia C. INVENTORY OF OTHER SPECIAL NEED FACILITIES AND SERVICES The following sections highlight some of the facilities and services available to assist the elderly, persons with AIDS, the mentally disabled, and substance abusers. ELDERLY DHR's Division of Aging Services administers a statewide system of services for older Georgians that are offered through 17 Area Agencies on Aging. The boundaries of the Area Agencies are aligned with the boundaries of the State Regional Development Centers. The following is a partial listing of services offered through Area Agencies on Aging. The availability of specific services varies widely depending upon community resources, local needs and geographic region. Transportation assistance to obtain required health, social or rehabilitative services; Information, referral and follow-up on community resources; Outreach services to locate and identify isolated and hard-to-reach older persons and assist in accessing needed services; Alzheimer family support group services; Assessment and case management for functionally impaired clients; Home health services under medical supervision to individuals who can be cared for at home; Personal care services to provide assistance with bathing, dressing, feeding, and other activities of daily living; Respite care for individuals who serve as primary caregivers of older or disabled people; Recreation activities; Nutrition services including congregate meals, home delivered meals, and nutrition education; In-home services including chore services, emergency response systems, friendly visiting and telephone reassurance services, trained and supervised homemakers, reading and writing assistance; Legal assistance services; Continuing education, training, and employment services; Adult day health services to functionally impaired persons; and, Adult day care services, including personal care, in a protective setting outside the home. In addition to the services offered through DHR, the following facilities have been identified as community based nonprofit nursing homes, retirement housing, continuing care retirement communities and community service programs for the aging. Each facility is a member of the Georgia Association of Homes and Services for the Aging. Listed below are 71 facilities located across 25 counties in Georgia. FFY2000 Consolidated Plan for the State of Georgia 83 Baldwin: Barrow: Bibb: Brooks: Chatham: Clarke: Cobb: Columbia: Coweta: DeKalb: Emanuel: Floyd: Forsyth: Fulton: Glynn: Gwinnett: Jackson: Lowndes: Oconee: Richmond: Spalding: Troup: Union: Whitfield: Dogwood Retirement Apartments; Winding Hollow; Carlyle Place, Magnolia Manor of Macon, St. Paul Apartments, St. Paul Village, Vineville Christian Towers; Peach State Presbyterian Homes, The Presbyterian Home; Chatham Nursing Home, Rose of Sharon, Thomas Francis Williams Court Apartments of the Georgia Infirmary; Athena Gardens, Lanier Gardens; Atherton Place, Barrington Square, Henderson Arms, Presbyterian Village, Smyrna Towers; Brandon Wilde; Wesley Woods of Newton-Peachtree City; Branan Towers, Briarcliff Oaks, Budd Terrace, Christian Towers-Decatur, Clairmont Oaks, King's Bridge, Harvest Heights, Louis Kahn Group Home, Philips Presbyterian Tower, Senior Connections of DeKalb, Wesley Woods Towers; Swainsboro Presbyterian Apartments; The Villas; Good Sheperd Place; Asbury Harris Epworth Towers, Calvin Court Apartments, Campbell-Stone Apartments, Campbell-Stone North Apartments, Canterbury Court, Cathedral Towers, Christian City Convalescent Center, Crestview Health and Rehabilitation Center, Garden Terrace, The Hellenic Tower, The Jewish Tower, Lakewood Christian Manor, Larry Moore Manor, Lenbrook Square Foundation, Lutheran Towers, Miller Manor, Sadie G. Mays Health and Rehabilitation Center, Saint Anne's Terrace, Sparks Manor, Trinity Towers, William Breman Jewish Home; St. Mark's Towers; Gwinnett Christian Terrace; Northminster Presbyterian Retirement Village; Langdale Place; Family Life Enrichment; St. John Towers; St. George's Court; Florence Hand Home, Harrison Manor, Twin Fountains Home, Vernon Woods; Branan Lodge, Wesley Mountain Village; and Royal Oaks Community. 84 FFY2000 Consolidated Plan for the State of Georgia PERSONS WITH AIDS The DHR Division of Public Health, Epidemiology and Prevention Services Branch coordinates the state's response and information collection activities related to persons living with AIDS. DHR also conducts an on-going community planning process for HIV and sexually transmitted disease (STD) prevention through a formal state-level committee established during the summer of 1994. In addition, DHR publishes monthly its "AIDS Surveillance Report," providing updated statistics of AIDS. The following services and facilities are available at the local level to assist people living with AIDS: Georgia Legal Services offers civil legal services to people living with AIDS at locations throughout Georgia; Friendship Ministries provides transitional housing in Macon for families and individuals living with AIDS; AID Atlanta provides case management, housing services, education and outreach, advocacy, and early intervention health care for persons with HIV or AIDS in metropolitan Atlanta; Atlanta Legal Aid Society offers legal services, outreach, training and education to homeless persons with HIV or AIDS; Jerusalem House offers permanent housing for up to 23 people with AIDS in Atlanta and provides coordinated social and health services, counseling support, recreational activities, home health and hospice services, and delivered meals; Trinity Community Ministries provides housing counseling at its Living Room facility in Atlanta for people with AIDS; Sister Love, Inc., provides support and assistance to HIV positive women in locating permanent housing in Atlanta; St. Stephen's Ministry of Augusta, Inc., provides housing for people with AIDS; Our Common Welfare offers transitional housing for up to 20 low income substance abusers with HIV or AIDS in Decatur and provides support services, community education, meals, and counseling; and, Phoenix Place provides permanent supportive housing for up to 20 HIV and AIDS infected adults in Savannah. MENTALLY DISABLED HOMELESS DHR provides services to people with mental illness through seven regional psychiatric hospitals and thirteen regional MHMRSA boards. The regional boards contract with a variety of providers, both public and private, to offer a range of community-based mental health services. Each regional board commits a portion of their services to people who are mentally ill and also homeless. Residential services are needed for many people with disabilities to serve those who are homeless and to FFY2000 Consolidated Plan for the State of Georgia 85 prevent homelessness. State resources for residential services support an array of options from group homes and SROs, to more independent living in apartments and other settings with appropriate supports. Some specific services for homeless individuals with mental illness in different regions include: O'Hearn House, a 75 bed SRO for homeless people with mental illness, funded through a contract from the Fulton Regional Board (Region 5); Phoenix House, an apartment complex comprised of single and shared apartments, serving homeless persons with mental illness in Fulton County and funded through a contract with the Region 5 MHMRSA board. St. Theresa, Inc., a 15-bed residential program for homeless people with mental illness, operated by the Fulton Community Service Board (CSB) through a contract with the Region 5 MHMRSA board; St. Joseph's Mercy Care Corporation operates mobile health screening and treatment teams that visit Atlanta area shelters and other locations to help people who are homeless access health and mental health services. This program is also funded in part by a contract from the Region 5 MHMRSA board; Hall County Family Initiative Resources (FIT) in Gainesville operates a six bed group home for people who are homeless and mentally ill through a contract with the Georgia Mountains CSB, which is a contractor with the Northeast Regional MHMRSA board (Region 3); New Horizons CSB in Columbus operates two six-bed group homes, developed originally through HUD funding, to serve homeless individuals with mental illness. It is part of the services included in the contract between the CSB and the Region 9 MHMRSA board; The Homeless Authority in Chatham contracts with the Southeast Coastal Regional MHMRSA board (Region 13) to provide 19 beds for individuals who are mentally ill and homeless. These services are located in a variety of settings in the Savannah area. SUBSTANCE ABUSERS The Department of Human Resources provides substance abuse services statewide through thirteen regional mental health, mental retardation and substance abuse boards. The regional boards assess the substance abuse treatment needs of the regions as part of an ongoing planning process. Regional boards address the identified needs by contracting with private and public providers to offer an array of community-based services to citizens of the region with substance abuse problems. These community-based substance abuse services are designed to reflect current best practices in the field. Substance abuse treatment services in all DHRMHMRSA Regions of the state are available to people who are homeless. DHR's substance abuse residential programs are typically therapeutic in nature. The level of need of consumers dictates not only the appropriate treatment, but also 86 FFY2000 Consolidated Plan for the State of Georgia the best environment in which that treatment takes place. Substance Abuse residential treatment facilities are the most appropriate and least restrictive environment appropriate to the level of need of some consumers. DHR contracts with St. Judes, Inc. (Atlanta) to manage a revolving loan fund. This loan fund provides financial assistance through loans to recovering substance abusers to establish half-way houses. Other facilities or services offering substance recovery assistance include the Houston Drug Action Council, which provides temporary housing for mothers and pregnant women who have recently completed substance abuse treatment; and a help line to provide confidential telephone crisis intervention and referral information to any individual in Georgia with drug and alcohol problems. The crisis line number is (800) 338-6745; for additional information regarding services call Donna Bowman, Program Director at (912) 953-5675. The Atlanta Union Mission / Men's Division Recovery Program also offers recovery assistance for men with alcohol and drug problems. They can be reached at (404) 588-4000. FFY2000 Consolidated Plan for the State of Georgia 87 D. BARRIERS TO AFFORDABLE HOUSING IN GEORGIA OVERVIEW The housing market is a function of consumer demand and the ability of housing providers to profitably meet this need. Throughout United States history, governments at all levels have been partners with private industry in stimulating this market and assisting households of all incomes secure housing. While private actions principally drive the housing market, public policies at the federal, state and local levels significantly impact the market's ability to provide affordable housing units. Federal Reserve Bank changes in the interest rate are the most notable of these public policies that affect all aspects of the housing market. Government programs and policies often directly create or enhance affordable housing alternatives for low income households and special populations. However, the effects of other public policies enacted to serve an identified social purpose often create other affordable housing barriers. Thus, while governments at all levels provide direct affordable housing assistance and preservation, other governmental policies often inhibit attaining this goal. Governmental barriers to affordable housing are often a side effect of policies regarding essentially unrelated areas, such as transportation and the environment. However, social attitudes and the desire of individuals to protect financial investments frequently result in a "Not In My Back Yard" (NIMBY) syndrome where protectionist actions work to limit housing and resident diversity. As a result, many neighborhoods and municipalities in Georgia and throughout the United States both directly and indirectly inhibit the growth of affordable housing alternatives. To understand the effect of regulatory barriers on affordable housing, it is important to understand what types of regulations affect housing costs: Limitations on the level of intensity of development, including subdivision controls and zoning; Stringent design and performance standards for lots and buildings enacted through subdivision controls and zoning; Shifting of costs from the public sector to the development project, including the use of adequate public facilities ordinances, exactions and impact fees, and administration fees for application review and processing; Reductions in the supply of developable land and/or restrictions on where development is permitted, using zoning, urban growth boundaries, greenbelts, and agricultural reserves; and, Reduction in the amount of growth that is permitted, either overall or per unit of time, through population caps, square footage or housing unit caps, and annual unit caps. 88 FFY2000 Consolidated Plan for the State of Georgia The following descriptions outline various policies at the federal, state and local level that either place or remove barriers to affordable housing opportunities in Georgia. FEDERAL POLICIES Federal policies related to employment, interest rates, income, and real estate taxes significantly impact housing supply and demand for households of all income levels. The housing market regularly reacts based on federal policies and information. Since the New Deal era, federal policies significantly shaped the housing industry. Federal transportation and housing policies spurred the decentralization of America's urban areas, enabled middle and higher income households to move away from city life, and provided increased homeownership opportunities to many Americans. As a result, most new housing development today occurs in outlying suburban areas rather than near the traditional urban core. More recent federal requirements related to protecting environmentally sensitive areas and improving air quality will help to guide future development patterns. In addition, federal programs offering direct housing subsidies, income transfer payments or tax incentives for developers provide affordable housing opportunities for households not adequately served by the private housing market. Federal policies also break down discriminatory housing inequities, opening housing access for all households. Interest in the impact of regulations on the affordability of housing dates back to at least the late 1970's and has been the subject of many research studies since then. STATE AND LOCAL POLICIES State and local policies also influence the housing market. As with federal regulations, state and local actions may either enhance or limit the availability of affordable housing. State and local residential construction controls and regulations are important tools to protect the health, safety, quality of life, and financial investments of Georgia's households. State and local governments must balance these important issues with the impact of associated regulations on housing costs. A general discussion follows on the State and local regulations that impact the provision of affordable housing in Georgia. Although the impact of regulation on housing has been examined theoretically, the reason and extent of the price increases are not well established. According to the 1998 Georgia Housing Needs Assessment, prepared by Lockwood Research Associates for DCA, some estimates indicate as much as a 25% increase on the cost of a new home as a result of regulation. However, this is difficult at best to quantify. According to the study, development costs are raised through impact fees, higher standards, mitigation measures, required background studies, and the time delays introduced into the construction process. FFY2000 Consolidated Plan for the State of Georgia 89 THE GEORGIA PLANNING ACT OF 1989 The Georgia Planning Act of 1989 mandates coordinated, comprehensive planning by all city and county governments within Georgia. The Act seeks to enhance the ability of local leaders to make informed, guided decisions on community issues. The plans include five topical areas: economic development, natural and historic resources, community facilities, housing, and land use. The Georgia Department of Community Affairs manages compliance with the Act. Both the housing and land use elements of the plan direct local governments to examine issues related to providing adequate and affordable housing. The Act requires communities to inventory the local housing stock and consider available housing options to house adequately and affordably the community's existing and projected population. UNIFORM CONSTRUCTION CODES ACT OF 1988 The Uniform Construction Codes Act of 1988 (effective October 1, 1991) identifies the fourteen "state minimum standard codes." Each of these separate codes typically consist of a base code (e.g. The Standard Building Code as published by the Southern Building Code Congress International) and a set of Georgia amendments to the base code. Georgia law further dictates that eight of these codes are "mandatory" (that is, are applicable to all construction whether or not they are locally enforced) and six are "permissive" (only applicable when a local government chooses to adopt and enforce one or more of these codes). These codes are as follows: Mandatory Codes: ; Standard Building Code; ; National Electric Code; ; Standard Gas Code; ; Standard Mechanical Code; ; Standard Plumbing Code; ; Council of America Building Officials One- and Two- Family Dwelling Code; ; Georgia State Energy Code for Buildings; and ; Standard Fire Prevention Code. Permissive Codes: V Standard Housing Code; V Standard Amusement Device Code; V Excavation and Grading Code; V Standard Existing Buildings Code; V Standard Swimming Pool Code; and, V Standard Unsafe Building Code. 90 FFY2000 Consolidated Plan for the State of Georgia As noted above, the building, electrical, gas, mechanical, plumbing, CABO one and two-family dwelling, energy and fire codes are mandatory codes, meaning that under Georgia law, any structure built in Georgia must comply with these codes, whether or not the local government chooses to locally enforce these codes. In addition, since Georgia law gives the enumerated codes statewide applicability, local governments do not have to (and, in fact, should not) adopt the mandatory codes in order to enforce them. The remaining codes are referred to as permissive codes. Unlike the mandatory codes, in order for a local government to enforce one or more of these permissive codes, that code or codes must be adopted, either by ordinance or resolution, by the local jurisdiction. The Uniform Codes Act does not require that local jurisdictions enforce the state minimum standard codes for construction. If a local government chooses to locally enforce any of these codes, it must enforce the latest editions and the amendments adopted by DCA. In addition, the Uniform Codes Act provides that local governments may, under certain conditions, adopt local amendments to the state minimum standard codes. However, these local amendments cannot be less stringent than the codes themselves. As of April 2000, 332 cities and 110 counties enforce construction codes. As to repairs, alterations or rehabilitation to existing buildings, the Georgia amendment to the 1994 Standard Building Code states in part: Alterations, repairs or rehabilitation work may be made to any existing building, structure, electrical, gas, mechanical or plumbing system without requiring the building structure, plumbing, electrical, mechanical or gas system to comply with all the requirements of the state minimum standard codes, provided that the alteration, repair or rehabilitation work conforms to the requirements of the State Minimum Standard Codes for new construction. The extent to which the existing system shall be made to conform to the requirements of the State Minimum Standard Codes for new construction shall be as follows: 1. When the estimated cost of the new work is less than fifty percent (50%) of the replacement cost of the existing system, the new work shall be brought into conformance with the requirements of the State Minimum Standard Codes for new construction. 2. When the estimated cost of the new work is equal to or greater than fifty percent (50%) of the replacement cost of the existing system, the entire system shall be made to conform to the requirements of the State Minimum Standard Codes for new construction. FFY2000 Consolidated Plan for the State of Georgia 91 ZONING The State's passage of general planning and zoning enabling legislation in 1954 allowed local governments in Georgia to adopt and enforce zoning ordinances. The 1954 Act was substantially amended in the State's Constitutional edit of 1978; however, local governments still possess the legal authority to prepare plans and administer land use controls within their jurisdictions. The Georgia State Constitution, as limited in 1986 by the Zoning Procedures Act, today guarantees the right of local governments to adopt, modify and enforce zoning ordinances. Local governments must provide public notice and hold hearings open to all citizens when considering individual rezoning cases or changes in zoning ordinances. Zoning laws and subdivision controls are intended to protect the quality of life and financial interests vested by private individuals in their property. However, exclusionary zoning practices resulting from NIMBY attitudes can effectively prohibit the residence of some groups from certain neighborhoods. These practices most often affect low income households. Minimum lot or house size standards and the exclusion of multifamily housing from a large portion (or the entirety) of a jurisdiction are ways in which a community can use its land use controls to result in exclusionary practices. In addition, many communities now require developers to provide offsite amenities such as parks and playgrounds. The costs associated with these mandates are then passed on to homebuyers through higher housing costs. The need to comply with zoning and subdivision requirements requires developers to increase personnel, adding both salary and application processing costs. In addition, the developer must often halt or slow construction until planning and zoning departments review submitted applications. This delay increases the costs associated with both new housing development and existing housing rehabilitation. Efforts by local governments to streamline this application process will reduce costs and increase access to affordable housing. Thus, while zoning offers an opportunity to provide orderly compatible growth, excessive restrictions, stipulations and provisions may in the end be a detriment to affordable housing development. GEORGIA DEVELOPMENT IMPACT FEE ACT The Georgia Development Impact Fee Act allows all municipalities and counties with adopted comprehensive plans that contain a capital improvement element to impose development impact fees. The local government uses this assessment to finance necessary public facilities serving the new growth and development. The statute places certain restrictions on the calculations of these fees and provides that a "municipality or county development impact fee ordinance may exempt all or part of particular development projects from the development impact fees if...such projects are determined to create...affordable housing." Exemptions may be granted provided that the public policy to create affordable housing is stated in the jurisdiction's comprehensive plan. 92 FFY2000 Consolidated Plan for the State of Georgia OTHER FEES Other development fees significantly impact housing in Georgia. As with housing regulation, balancing the jurisdiction's need for revenue against the impact of these fees is a constant consideration of state legislators, county commissioners, city council members and school board members. Other fees levied related to housing production and provided for in the Official Code of Georgia include: All new dwellings and dwelling units located in counties or municipalities with adopted building codes must contain an approved, listed smoke detector; In an effort to promote efficiency in water use and to preserve water, the State places restrictions on the type of showerheads, toilets and faucets installed as a part of the construction, repair or renovation of all residential or commercial buildings; All counties with a population of more than 100,000 or municipalities with a population of more than 45,000 must adopt minimum fire safety standards. The county or municipal governments must review plans and issue a certificate of occupancy for buildings being constructed or undergoing renovations and which constitute a special hazard as defined in the statute. Fees are associated with both the plan review and issuance of a certificate of occupancy. The Georgia Fire Safety Commissioner annually inspects builders of manufactured housing to ensure that newly constructed units meet the construction standards promulgated by the Commissioner. Inspection fees are assessed based on the size of the unit. Although each regulation serves a valid public purpose, the fees and other costs associated with meeting these regulations add to the cost of housing. REAL ESTATE TAXATION Residential real estate taxes serve as a major funding source for Georgia's local governments and boards of education. At the same time, however, these taxes increased the cost of all housing, whether through increased rents or through a homeowners payment of taxes on the owned housing unit. The Georgia Tax Code takes several steps to mitigate the negative impact of property taxation on housing affordability for low and moderate income households. These measures include the State's approach to property valuation; a law governing the establishment of local millage rates; as well as various exemptions, abatements, credits, and deferrals. In 1989 the Georgia Department of Revenue established procedures to equalize county property tax digests between and within counties. This action requires county tax assessors to adjust their property valuation procedures to ensure uniformity and equity. This tax equalization process reduces valuation disparities FFY2000 Consolidated Plan for the State of Georgia 93 between low and high income areas. State officials believe this adjustment corrects the valuation inequities that previously favored high income areas. Various exemptions, abatements, credits and deferrals provide property taxation relief and improve housing affordability. These measures include: The Standard Homestead Exemption of $2,000 of assessed value of homes occupied and used as the primary residence of the owner. This exemption provides greater tax relief as income decreases, thereby increasing the housing unit's affordability. The Double Homestead Exemption of $4,000 of assessed value of homes occupied and used as the primary residence of the owner if the homeowners over the age of 65 whose net income is less than $10,000. Income from retirement sources, pension, and disability income is excluded from this qualifying calculation up to the maximum amount that can be paid to an individual and spouse under the federal Social Security Act. Homeowner Tax Relief Credit reduces the tax burden of a homeowner who has filed a homestead tax exemption and who pays county, state, or school property taxes. The credit amount is equal to $2,000 multiplied by the millage rate for certain county, state and school taxes. This amount is directly deducted from the property tax bill. School Tax Exemption: Individuals age 62 years of age and older that are residents of each independent school district and of each county school district may claim an additional exemption from all ad valorem taxes for educational purposes and to retire school bond indebtedness if the income of all members of the family living in the house does exceed $10,000 per year. This exemption may not exceed $10,000 of the homestead's assessed value. Floating Inflation-Proof Exemption: Individuals 62 years of age and older may obtain this exemption, except for taxes to pay interest on and to retire bonded indebtedness, based on natural increases in the homestead's value. If the appraised value of the home has increased by more than $10,000, the owner may benefit from this exemption. Total household income of all occupants of the home cannot exceed $30,000. This exemption does not affect any municipal or educational taxes and is meant to be used in the place of any other state and county homestead exemption. Homestead Exemption for Disabled Veterans: Any qualifying disabled veteran may be granted an exemption of $38,000 from paying property taxes for state, county, municipal, and school purposes. The value of the property in excess of this exemption remains taxable. This exemption is extended to the unremarried surviving spouse or minor children. Property tax deferral on up to $50,000 of the assessed value of owner occupied single family homes is available to homeowners over age 62 whose incomes are less than $15,000 and the total debt on the property is less than 85% of the fair market value. 94 FFY2000 Consolidated Plan for the State of Georgia The Residential Transitional Property Assessment allows owner occupants of homes to be assessed at its current use value, rather than fair market value, when it is used for residential purposes, but located in an area that is changing to, or being developed for, a use other than residential. The State legislature may enact special property tax exemptions that apply only to specified jurisdictions. Exemptions are in place in various communities throughout Georgia. STATE INCOME TAX DEDUCTIONS The state tax code allows homeowners who pay their state income tax two residential deductions from their income. These abatements, which parallel those provided for in the federal tax code, include: the amount of interest paid on a home mortgage and the amount of local real estate tax paid on a home. FFY2000 Consolidated Plan for the State of Georgia 95 V. FIVE-YEAR STRATEGIC PLAN A. OVERVIEW OF GEORGIA'S HOUSING AND COMMUNITY DEVELOPMENT PRIORITY NEEDS The strategic plan sets forth the State's priority areas and five-year objectives to meet the housing and community development needs of Georgia's extremely low, low and moderate income households. Table 32 outlines Georgia's priority needs in accordance with the table prescribed by HUD. Georgia's priority needs were determined based on an examination of the data presented in the previous sections of this plan. Generally in Georgia, the needs of both renters and homeowners of all household types increase as incomes decrease. Households earning incomes 50% or less of the state's median family income have the most difficulty in overcoming a housing problem without outside assistance. The State places a high priority on addressing the needs of these extremely low and low income households. In addition, the State recognizes that Georgia's severely cost burdened, moderate income households are also threatened with homelessness. Thus, the State also places a high priority on assisting these households in order to prevent future situations of homelessness. Table 31: Housing Problems of Moderate Income Households by Type Household Type Small Family Renters Large Family Renters Elderly Renters Total Renters Total Owners Cost Burden > 30% 31% 18% 40% 36% 31% Cost Burden > 50% 2% 1% 6% 2% 7% Overcrowding 4% 36% 0% 6% 2% Substandard Housing 36% 57% 42% 43% 35% NOTE: The figures reflect the percentage of moderate income households of that household type affected by the particular housing problem. Thus, 31% of moderate income small family renters are affected by cost burden. Figures for all renters are shown for comparison purposes. SOURCE: FY1994 CHAS CD-Rom. Other moderate income households generally have a slightly better ability to address housing problems. However, because a preponderance of problems affects certain moderate income households, the State has made reducing the extent of these conditions a high priority. Table 31 shows the percentage of moderate income households by household type that are affected by each housing problem. Figures shown in italics indicate issues designated as a high priority by the State because of the high percentage of households affected by the problem. The State has designated the other moderate income households with lower concentrations of housing problems as a medium priority. 96 FFY2000 Consolidated Plan for the State of Georgia Table 32: Priority Needs Summary (HUD Table 2) Priority Housing Needs (Households) Small Related Cost Burden > 30% Cost Burden > 50% Substandard Overcrowded Renter Large Related Cost Burden > 30% Cost Burden > 50% Substandard Overcrowded Elderly Cost Burden > 30% Cost Burden > 50% Substandard Overcrowded Owner Cost Burden > 30% Cost Burden > 50% Substandard Overcrowded Priority Homeless Needs Assessment/Outreach Emergency Shelter Transitional Housing Permanent Supportive Housing Permanent Housing Priority Need Level 0 %- 30% 31% - 50% 51 % - 80% H H H Units 65,066 H H H 54,957 H H H 8,189 H H M 13,329 H H M 14,654 H H H 13,589 H H H 16,679 H H H 29,558 H H H 26,208 H H H 22,589 H H H 2,180 H H M 132 H H H 118,720 H H H 89,853 H H H 19,289 H H M 20,987 Priority Need Level Families H Families H Families H Families H Families H Individuals H Individuals H Individuals H Individuals H Individuals H Persons With Needs H Persons With Needs H Persons With Needs H Persons With Needs H Persons With Needs H Plan Dollars To Address $620 million $524 million $78 million $127 million $140 million $130 million $159 million $282 million $250 million $215 million $21 million $1.2 million $8.2 billion $6.2 billion $1.3 billion $1.4 billion Dollars To Address $26 million $17 million $18 million $10 million $54 million FFY2000 Consolidated Plan for the State of Georgia 97 Georgia places a high priority on meeting the housing and supportive service needs of its homeless population. Virtually all of these individuals are low income or in a financial position where the threat of continuous homelessness exists. Therefore, placing a high priority on the needs of the homeless is consistent with Georgia's priority of aiding those lower income households which have more difficulty overcoming a housing problem without the aid of outside assistance. In establishing these priorities, Georgia will be able to address housing issues without restricting the type of assistance provided to any one area of the state or to any one particular group of low or moderate income households. Thus, Georgia will be able to work toward eliminating the housing problems of all low income households without neglecting the needs of its moderate income families and individuals. The following general statements of priority need have been established to address Georgia's housing and community development needs. For the purposes of this plan, the State divided its priorities into two categories based on function: priorities targeted to directly benefit low and moderate income households and priorities aimed at improving the production capacity of Georgia's affordable housing providers. The following listing is not reflective of any ranking. The State recognizes an equally high weight to the importance of each statement. DIRECT BENEFIT PRIORITIES 3 To increase the number of Georgia's low and moderate income households who have obtained affordable, rental housing which is free of overcrowded and structurally substandard conditions. 3 To increase the number of Georgia's low and moderate income households who have achieved and are maintaining homeownership in housing free of overcrowded and structurally substandard conditions. 3 To increase the access of Georgia's homeless to a continuum of housing and supportive services which address their housing, economic, health and social needs. 3 To increase the access of Georgia's Special Needs populations to a continuum of housing and supportive services which address their housing, economic, health, and social needs. 3 To provide assistance to local governments to meet their non-housing community and economic development needs. 98 FFY2000 Consolidated Plan for the State of Georgia PRODUCTION IMPROVEMENT PRIORITIES 3 To increase coordination, strengthen linkages and encourage the formation of partnerships between Georgia's private sector housing developers, financial institutions, nonprofit organizations, public sector agencies, foundations and other providers. 3 To increase the capacity and skills of local nonprofit organizations and other providers to offer housing assistance. 3 To improve the responsiveness of state and local policies to affordable housing issues. The State recognizes that its efforts to improve the production of housing and supportive service providers will be reflected in the number of households which directly benefit from their assistance. Therefore, the State has not established separate, quantifiable objectives for its production improvement goals within its Strategic or Action Plans. The following sections outline Georgia's five-year Strategic Plan to address its housing and community development priorities, objectives, activities and investment plan by program area. FFY2000 Consolidated Plan for the State of Georgia 99 B. STRATEGIES TO ADDRESS GEORGIA'S AFFORDABLE HOUSING NEEDS SUMMARY OF GEORGIA'S AFFORDABLE HOUSING NEEDS AND MARKET ANALYSIS Georgia's housing stock has remained relatively affordable when compared to many other areas of the nation. However, the affordability of housing in the state has been reduced as seen by the Housing Opportunity Index (HOI) as reported by the National Association of Homebuilders (NAHB). The HOI for the Atlanta Metropolitan area fell almost 5% indicating that, in 1999, just under 75% of the homes on the market could be purchased by a household of median income. Both the costs of the average home and of the average rent payment far exceeded income gains of the average Georgian. This trend most significantly affects low income households where cost burden is most significant, affecting 68% of Georgia's extremely low, 54% of its low, and 33% of its moderate income households. Households earning less than 80% of the state's median family income represent approximately 40% of all households in Georgia, and they experience at least one housing problem and, therefore, live in substandard housing. Georgia's elderly households are the poorest of all household categories examined within this consolidated plan. Nearly 63% of all elderly households are of moderate income or below. As with all household groups, housing problems generally decrease for elderly households as their incomes increase. Approximately 56% of elderly low income renters and 36% of elderly low income owners live in substandard housing. Cost burden is the most common problem, affecting 28% of all elderly households, placing them in danger of losing their independence and making it increasing likely that they will not be able to keep their homes safe and accessible. Georgia's small families are its largest household category and are generally its most wealthy. Higher income small families account for 63% of all higher income households. However, approximately 29% of Georgia's small families are of extremely low, low or moderate income. The large quantity of small families in the state gives small families the largest number of households with incomes below 80% of the state's median family income. Over 400,000 small family households are at or below moderate income. Housing problems are a major issue for both small family renters and homeowners. Almost 78% of all extremely low and 71% of all low income small family renters, and nearly 76% of small family owner households with extremely low incomes have housing problems. Cost burden is by far the most recurrent issue. Georgia's large families constitute only 10% of all households within the state, and 11% of those with incomes 80% or less of the median family income. Approximately 42% of large family households are of low or moderate income. Large families have more difficulty achieving homeownership than all households do generally. Less 100 FFY2000 Consolidated Plan for the State of Georgia than 41% of Georgia's large families of low or moderate income are homeowners compared with 44% of all Georgia households within this income group. Overcrowding and cost burden are the most significant issues affecting large families. Almost 70% of all large families with moderate, low or extremely low incomes experience at least one housing problem. In addition to the variances in need between Georgia's households, the housing stock of regions within the state differ in terms of the age and type of housing unit and their expected population growth rates. The housing stock in Georgia's rural areas is generally older than the state's urban regions. In addition, the Savannah MSA contains by far the oldest housing stock, with 24% of its structures built prior to 1950. On the other hand, the Atlanta MSA possesses the newest housing stock, with over 61% of its structures built after 1970. While a relatively equal percentage of single family homes exists between regions, the occurrence of multifamily units and mobile homes differs depending upon the existence of urban areas within a region. For instance, the Atlanta region, the most urban of all areas, contains a substantially lower percentage of mobile homes than the other eight regions. On the other hand, the Southeast region, the only area that does not contain at least one MSA, has the highest percentage of mobile homes. According to 1990 census information, fairly significant differences exist between regions in the percentage of households below 80% of the median family income. In the most prosperous region, Atlanta, less than 38% of the households are of low or moderate income. On the other hand, in the state's poorest region, the Southeast, almost 47% of all households are of low or moderate income. Figures at the county level range from a low of 23% in Fayette County to a high of 64% in Clay County. On average, nearly 41% of the state's households were at or below moderate income. These large disparities indicate a substantial need differential between counties and between regions. This disparity between counties is particularly important; in that, counties within generally affluent regions may still have a high percentage of low and moderate income households. Personal income growth is often an indicator of economic growth within a region as more individuals are employed. The University of Georgia's Selig Center for Economic Growth estimates that the personal income growth of the Atlanta region by 8.3%, significantly exceeds the state's overall growth figure of 7.3% between 1990 and 1997. Conversely, Georgia's Central, West Central, East Central, and Central regions are anticipated to have income growth of 6.0% or less. The Northwest and Southeast regions are only slightly higher with an estimated 6.4% growth in personal income during the same period. Moreover, each of these regions has concentrations of low and moderate income households higher than the state figure. Thus, these projections reflect the continued significant need to assist low and moderate income households obtain affordable housing in the central and southern interior areas. FFY2000 Consolidated Plan for the State of Georgia 101 Georgia's Hispanic households across nearly all income levels and household categories disproportionately experience substandard housing conditions. Moreover, because nearly 37% of all low or moderate income households are also black and this racial group only comprises 24% of the state's population, the State recognizes that a disproportionate need also exists for black households with incomes below 80% of the median family income. OBSTACLES TO MEETING UNDERSERVED HOUSING NEEDS Many obstacles exist to meeting Georgia's affordable housing needs. The following points highlight some of these issues, however, because of the complex nature of housing issues, many other circumstances may exist which prevent the market from adequately providing affordable housing. Therefore, this list cannot be considered exhaustive but outlines some of the important obstacles to providing affordable housing in Georgia. High land and construction costs in certain areas decrease the ability of housing providers to build affordable housing for low and moderate income householders. Rising interest rates decrease the ability of low and moderate income householders to access structurally standard housing meeting the income and size requirements of the household. Low fair market rents established by HUD are often too low in many of the state's rural areas to make new construction of affordable, multifamily housing financially viable. The rents frequently are well below the cost to construct and maintain a unit and, thus, prohibitive to constructing new multifamily housing. Appraisal values on properties are often lower than rehabilitation costs, making some projects financially infeasible. Not In My Back Yard (NIMBY) reactions by citizens and subsequent policies of local governments discourage and prohibit development of affordable housing opportunities in certain neighborhoods and communities. Discriminatory behaviors discourage development of affordable housing. Unwillingness of substandard property owners to maintain and improve housing conditions to levels determined to be decent, safe and sanitary. Existing liens for back taxes and special assessments and the inability to obtain clear title to a property prevent housing development in many innercity neighborhoods, causing further blight and decline. Reluctance of some households, particularly the elderly, to assume additional debt and further encumbrance in order to rehabilitate their house. The cost of housing and other necessities are often too high in comparison with the earnings of a low income family to enable these households to obtain and maintain safe and sanitary housing. 102 FFY2000 Consolidated Plan for the State of Georgia Limited technical capacity and financial homeownership resources of nonprofit housing providers constrains their ability to meet affordable housing needs. Difficulty in securing subcontractors impedes the development of affordable housing opportunities. Competition with college students for housing in "college towns" decreases the amount of affordable housing available to low and moderate income households. Multiple levels of financing packages for construction/permanent loans and closings increase the complexity of affordable housing development. Purchase Price Limits required under federal IRS guidelines for the State's use of tax exempt bond financing are too low, particularly in rural areas of Georgia. Currently, the maximum purchase price limit for an existing single family unit is $74,393. This amount is frequently too low for potential home buyers to locate an available unit. Lack of adequate and suitable funding sources prohibits the financing of accessibility modifications for elderly and disabled households. Federal regulations require entities to bring the entire unit up to specified rehabilitation standards and other standard codes in order to provide accessibility modifications. ALLOCATION OF HOUSING FUNDS BASED ON GEOGRAPHY AND MARKET CONDITIONS While the geographic allocation of funds based on market conditions is an important consideration, Georgia's program resources designed to preserve and expand the supply of affordable housing alternatives for low and moderate income households are awarded competitively. CONSOLIDATED FORMULA FUNDS DCA administers the State's CDBG program only within non-entitlement communities. Georgia's entitlement communities receive a direct allocation of CDBG funds from HUD. DCA competitively awards its CDBG funds and, therefore, the nature and quality of the application is the major funding determinant. Although participating jurisdictions receive a direct allocation of HOME funds from HUD, DCA administers all but two of its HOME funded programs (HOME Rental Housing Loan Program and the Community HOME Investment program) throughout the state. In order to encourage the development of affordable housing opportunities within certain areas, some HOME-funded programs operated by DCA enhance the competitiveness of applications for projects located within designated rural or urban revitalization areas. Despite this enhancement, the nature and quality of the entire application, remains each program's major funding determinant. FFY2000 Consolidated Plan for the State of Georgia 103 OTHER AVAILABLE FUNDS The Low Income Housing Tax Credit is competitively allocated state-wide. While the nature and quality of the application remains the major funding determinant, projects that are located in a county having the greatest need for affordable rental housing, as determined by DCA and as stated in Georgia's Qualified Allocation Plan, receive a higher Project Locational Characteristics score. DCA administers the State's allocation of Section 8 Rental Assistance program in 149 of Georgia's 159 counties. In the remaining counties, local public housing authorities administer the program. The State's Single Family Home Buyer program sets aside a minimum of 20% of its program funds for use in Areas of Chronic Economic Distress (ACEDs) which are designated by the State of Georgia and approved by HUD and the U.S. Internal Revenue Service (IRS). Currently, 81 counties are designated as ACEDs: Appling Atkinson Bleckley Brooks Bulloch Burke Calhoun Charlton Chattooga Clay Clinch Coffee Colquitt Cook Coweta Crawford Crisp Decatur Dodge Dooly Early Echols Elbert Emanuel Evans Fannin Grady Greene Hancock Haralson Heard Irwin Jasper Jefferson Jenkins Johnson Lamar Laurens Lincoln Long Macon Marion McDuffie McIntosh Meriwether Miller Mitchell Montgomery Morgan Newton Oglethorpe Peach Polk Pulaski Quitman Randolph Schley Screven Stewart Sumter Talbot Taliaferro Tattnall Taylor Telfair Terrell Thomas Treutlen Turner Twiggs Upson Ware Warren Washington Wayne Webster Wheeler Wilcox Wilkes Wilkinson Worth 104 FFY2000 Consolidated Plan for the State of Georgia GEORGIA'S FIVE-YEAR AFFORDABLE HOUSING PRIORITIES, OBJECTIVES, AND INVESTMENT PLAN In light of the housing needs and market conditions identified through the consolidated planning process, Georgia has established the following five-year priorities, objectives, and investment plan in an effort to promote the affordable housing opportunities available for its low and moderate income households. The Georgia Department of Community Affairs (DCA) will distribute CDBG, ESG, HOME and HOPWA funds according to the State's annual Action Plan contained within this Consolidated Plan. (NOTE: The following description of priorities and objectives includes only those State Affordable Housing priorities which directly benefit low and moderate income households and for which quantitative objectives can be determined. The State's priorities associated with improving production that have not been quantitatively objectified are described in other sections of the Strategic Plan. In addition, the figures provided to quantify the State's objectives include projections only for the programs funded by HUD for which the State administers directly. Therefore, only estimates for programs funded by HOME, CDBG, ESG, HOPWA, HUD Housing Counseling and Section 8 Rental Assistance are incorporated into the State's quantified objective. The State anticipates providing additional assistance through other funding sources to low and moderate income households or organizations serving this population). PRIORITY: To increase the number of Georgia's low and moderate income households who have obtained affordable, rental housing which is free of overcrowded, structurally substandard conditions. Objective #1: Rehabilitate or construct affordable, rental housing units for 861 extremely low, 1,758 low, and 895 moderate income households by June 30, 2005. Investment Plan: Federal Funds (Primary): HOME Low Income Housing Tax Credit Federal Funds (Secondary): Community Development Block Grant (CDBG) program; HUD HOPE VI Public Housing Revitalization and Demolition Programs; HUD Section 8 Moderate Rehabilitation program for Single Room Occupancy (SRO) Units; USDA-RD Rural Rental Housing Loans USDA-RD Farm Labor Housing Loans and Grants FFY2000 Consolidated Plan for the State of Georgia 105 Supportive Housing for the Elderly (Section 202) program; Supportive Housing for Persons with Disabilities (Section 815) program; and, Housing Opportunities for People with AIDS. State Funds: Georgia Housing Tax Credit; State HOME Program Matching Funds; and, Georgia Housing Trust Fund for the Homeless. Private: Federal Home Loan Bank's Affordable Housing program; Fannie Mae; Freddie Mac; Enterprise Foundation; Ford Foundation; Robert Wood Johnson Foundation; and, Various financial institutions and private companies. Objective #2: Provide 25,080 extremely low, 13,906 low, and 2,853 moderate income households with rental assistance by June 30, 2005. Investment Plan: Federal Funds (Primary): Section 8 Voucher and Certificate programs. Federal Funds (Secondary): Supportive Housing for the Elderly (Section 202) program; Supportive Housing for Persons with Disabilities (Section 815) program; USDA-RD Rental Assistance Shelter Plus Care program; Rural Homelessness Grant program; and, SRO Moderate Rehabilitation Program. State Funds: Housing Trust Fund for the Homeless Next Step Program. Private: Various nonprofit and for-profit developers 106 FFY2000 Consolidated Plan for the State of Georgia PRIORITY: To increase the number of low and moderate income households in Georgia who have achieved and are maintaining homeownership in housing free of overcrowded and structurally substandard conditions. Objective #3: Assist 366 extremely low, 2,241 low, and 2,874 moderate income households by June 30, 2005, to achieve or maintain homeownership in housing free of overcrowded and structurally substandard conditions. Investment Plan: Federal Funds (Primary): HOME; and Community Development Block Grant (CDBG) program. Federal Funds (Secondary): HUD Rural Housing and Economic Development Program; HUD Housing Counseling Funds; USDA-RD Rural Housing Loan Program; and, USDA-RD Home Improvement Loans and Repair Loans and Grants. State Funds: Tax Exempt Mortgage Revenue Bonds; and, Housing Trust Fund for the Homeless. Private Funds: Federal Home Loan Bank Affordable Housing program; Resolution Trust Corporation; Fannie Mae; Freddie Mac; and Various financial institutions, foundations, nonprofit organizations and private companies. FFY2000 Consolidated Plan for the State of Georgia 107 C. STRATEGIES TO ADDRESS THE NEEDS OF GEORGIA'S HOMELESS SUMMARY OF GEORGIA'S HOMELESS POPULATION AND NEEDS No universally accepted enumeration of the homeless population exists at the local, state or national level. Efforts to estimate homelessness through the state's Continuum of Care process indicate approximately 50,000 75,000 homeless individuals per year statewide. A 1997 report by Research Atlanta, Georgia State University Policy Research Center, indicates that the statewide distribution of homeless is Atlanta MSA 40%; Other MSAs 40%; and rural areas 20%. This distribution estimates that the metropolitan Atlanta area contains up to 30,000 homeless individuals per year. The same report estimates an "average night" in the metropolitan Atlanta area finds 11,000 individuals homeless. The estimated number of individuals and family members served by DCA funded housing and support services from July 1998 to June 1999 was 50,892. Of this group, approximately 1,610 individuals and family members received shelter or transitional housing. These programs served individuals statewide and are not the only source of funding for combating homelessness. Nationally, the National Coalition for the Homeless reports that the number of homeless on any given night to be over 700,000. Up to 2 million people are thought to experience homelessness during one year. Although enumerating the homeless population is difficult at best, a basic picture of the characteristics of the homeless is possible. Nationally, approximately 23% of all homeless individuals are children under the age of 18, 11% are their parents, and the majority of homeless individuals are single adults. Of the single adults, 77% are men. When considering homeless families nationwide, 84% are female-headed families. The racial/ethnic breakout of the homeless family is divided primarily between black 43% and white 38% non-Hispanic families. Hispanic families account for 15% of homeless families. Geographically, homelessness is more prevalent in the central cities when compared to those considered poor nationwide. The National Survey of Homeless Assistance Providers and Clients (NSHAPC), found that fewer homeless people live in the rural areas where a higher percentage of poor Americans reside. This could be attributed to the promise of a better job market and the availability of affordable housing in the metropolitan areas. Identifying and addressing the causes of homelessness are important to prevent this living situation for those threatened with homelessness and to assist those households currently homeless. The NSHAPC survey indicated that the major reason given for leaving an area once homeless, reasons included lack of jobs or affordable housing and being evicted from a prior residence. An estimated 5,498 beds were served with DCA funds in Georgia in 1999. Of those served, 60% are located within the Atlanta MSA leaving 2,199 for the balance of the 108 FFY2000 Consolidated Plan for the State of Georgia state. According to the state's Continuum of Care plan, the balance of the state has only 30% of the needed beds/units for homeless individuals and 18% of those needed for persons in families with children. Access to affordable housing is a central key to assisting homeless. Based on the federal minimum wage of $5.15/hour, a household earning minimum wage can pay no more than $270 per month for rent before becoming cost burdened. The level of availability of affordable housing varies throughout the state. In the Atlanta metropolitan area, this amount covers only 39% of a typical two-bedroom unit. Unfortunately, in most areas, housing available at a cost low enough to be affordable is found in neighborhoods affected by violence and crime. Other housing needs include additional spaces in emergency shelters and other housing, especially in facilities that do not have time limitations; transitional housing geared specifically to young adults over age 18, and shelters accessible by all household types. Additional needs are found with rental deposit assistance, utility bill payment and deposits, and long-term lease or lease purchase arrangements for households leaving transitional housing. Because of the complex and varied nature of homeless, a wide continuum of supportive services is required to prevent and move away from homelessness. A survey conducted by DCA of all homeless service providers indicated that the greatest need was the addition of case managers, followed by employment training for their clients. The need of case management for general life skill was the greatest indicated need, followed by employment training, alcohol/drug treatment, and financial planning. Various subpopulations of the homeless exist which require special housing needs and supportive services. The state's Continuum of Care reports that, in rural areas, 30% of homeless individuals and 15% of homeless persons in families with children suffer from severe mental illness. The May 1997 report "Homeless in Metropolitan Atlanta" estimated that between 12% and 16% of the homeless in the metropolitan Atlanta area suffer from severe mental illness. The same reports estimate that the homeless population in rural areas contain 75% of individuals and 35% of persons in families with children who are chronic substance abusers compared with 34% and 20% in metropolitan Atlanta. Other predominant subpopulations of homeless include victims of domestic violence, those living with HIV/AIDS, and youth. Persons threatened with homelessness are found across a wide variety of populations. In this category, the Consolidated Plan focuses primarily on those with incomes less than 30% of the median family income and those who spend more than 50% of their income on housing. Persons living with AIDS are included in this category, as are those involved in situations of domestic violence. Each year DCA makes funds available to local governments and nonprofit organizations to prevent FFY2000 Consolidated Plan for the State of Georgia 109 the incidence of homelessness. In 1999 there were 28 organizations that received these funds. GEORGIA'S STRATEGY TO MEET THE NEEDS OF THE HOMELESS The State of Georgia places a high priority on addressing the needs of today's homeless population and preventing other families and individuals from becoming homeless. The creation of the State Housing Trust Fund for the Homeless was one of the recommendations made in 1987 by the Special Study Committee on the Problems of Homelessness in Georgia. The Governor appointed the first Trust Fund Commission in 1990 and the General Assembly authorized its first appropriation of $5 million for State Fiscal Year 1991. The Trust Fund continues to receive support each year from the Governor and the Legislature. The Trust Fund provides matching funds for the ESG program and offers financial support through other State programs. Two separate state entities conduct state-funded homeless assistance programs. Activities funded by the State Housing Trust Fund for the Homeless and administered by the Georgia Department of Community Affairs (DCA) focus on housing and shelter needs while the Georgia Department of Human Resources (DHR) principally provides health and human services. The Special Study Committee recognized this division of responsibilities as superior to the creation of any administrative agent with the single purpose of addressing homeless needs outside of existing programs. The Georgia Interagency Council on the Homeless, which will be re-established in the near future, will ensure coordination between all State agency assisting the homeless. The State will continue to further its coordinated assistance efforts to the homeless by providing support to emergency and transitional housing facilities and by offering supportive services needed to obtain permanent housing and reach the highest attainable level of self-sufficiency. Through the administration of federal and State funded programs specifically targeted to the homeless population or to low and moderate income households, the State will help low income families avoid becoming homeless, reach out to homeless persons and assess their individual needs, address the emergency shelter and transitional housing needs of homeless persons, and help homeless persons make the transition from permanent housing to independent living. OBSTACLES TO MEETING THE NEEDS OF THE HOMELESS Many obstacles exist to meeting the needs of Georgia's homeless. The following points highlight some of these issues, however, because of the complex nature of homeless issues, many other circumstances may exist which make it difficult for the system of providers to adequately meet the needs of the homeless. Therefore, this list cannot be considered exhaustive but outlines some of the important obstacles to providing assistance to the homeless in Georgia. 110 FFY2000 Consolidated Plan for the State of Georgia Lack of resources (both financial and other) available to meet the needs of the homeless. Competitive allocation process at the federal level to fund projects outside of the ESG program hinders continuous access to these funds. Red tape involved for the homeless person to access needed programs and services. Efforts are needed to streamline the intake process that gives homeless persons access to available services. Lack of unrestricted shelters available that do not only serve one particular segment of the homeless population. Lack of comprehensive and complete data available to quantify and describe the homeless as required by federal program applications and planning documents. Lack of coordination at each level of government makes it challenging for service providers to obtain and maintain consistent levels of funding and to provide services from one year to the next. GEOGRAPHIC ALLOCATION OF HOUSING ASSISTANCE FUNDS FOR THE HOMELESS The geographic allocation of funding to provide housing assistance for the homeless depends on the funding source; however, most funds are competitively available statewide. CONSOLIDATED FORMULA FUNDS DCA makes ESG program funds available statewide to all local governments and nonprofit organizations that provide emergency shelter and services to Georgia's homeless population and that apply for assistance. No geographic allocation is utilized. HOPWA program funds are available to all qualified local governments and nonprofit organizations operating and developing housing in the State of Georgia for persons impacted by HIV/AIDS. As of 1998, DCA restricted HOPWA funding to counties outside of the Atlanta MSA. DCA administers the State's CDBG program only within non-entitlement communities. Georgia's entitlement communities receive a direct allocation of CDBG funds from HUD. DCA competitively awards its CDBG funds and, therefore, the nature and quality of the application is the major funding determinant. Although participating jurisdictions receive a direct allocation of HOME funds from HUD, DCA administers all but two of its HOME funded programs (HOME Rental Housing Loan Program and the Community HOME Investment program) throughout the state. In order to encourage the development of affordable housing opportunities within certain areas, some HOME-funded programs operated by DCA enhance the competitiveness of applications for projects located within designated rural or urban revitalization areas. Despite this enhancement, the nature and FFY2000 Consolidated Plan for the State of Georgia 111 quality of the entire application, remains each program's major funding determinant. OTHER AVAILABLE FUNDS The Low Income Housing Tax Credit is competitively allocated state-wide. While the nature and quality of the application remains the major funding determinant, projects that are located in a county having the greatest need for affordable rental housing, as determined by DCA and as stated in Georgia's Qualified Allocation Plan, receive a higher Project Locational Characteristics score. DCA administers the State's allocation of Section 8 Rental Assistance program in 149 of Georgia's 159 counties. In the remaining counties, local public housing authorities administer the program. State program funds available from the Housing Trust Fund for the Homeless are available statewide. No geographic allocation is utilized. GEORGIA'S FIVE-YEAR PRIORITY, OBJECTIVES AND INVESTMENT PLAN TO ASSIST THE HOMELESS In light of the needs of its homeless and those threatened with homelessness, Georgia has established the following five-year priority, objective, and investment plan in an effort to assist individuals and families break the cycle of homelessness and to prevent other individuals and families from experiencing this living condition. The Georgia Department of Community Affairs (DCA) will distribute funds for the HOME, CDBG, ESG and HOPWA according to the State's annual Action Plan contained within this Consolidated Plan. (NOTE: The following priority and objective description only includes the State priority which directly benefits homeless households and for which a quantitative objective has been determined. The State's other priorities that may indirectly relate to assisting the homeless are described in other sections of the Strategic Plan. In addition, the figures provided to quantify the State's objectives include projections based only on the use of HOME, CDBG, ESG, HOPWA, Section 8, and State match funds for the ESG program. The State anticipates providing additional assistance through other funding sources to low and moderate income households or organizations serving this population). 112 FFY2000 Consolidated Plan for the State of Georgia PRIORITY: To increase the access of Georgia's homeless to a continuum of housing and supportive services which address their housing, economic, health and social needs. Objective #4: Provide housing and supportive services necessary for Georgia's homeless to break the cycle of homelessness to a daily average of 9,600 individuals through June 30, 2005. Investment Plan: Federal Funds (Primary): Emergency Shelter Grant program; Housing Opportunities for People with AIDS (HOPWA) program; Federal Funds (Secondary): HOME Investment Partnership; Low Income Housing Tax Credit program; and, Community Development Block Grant (CDBG) program. HUD Special Needs Assistance (Permanent Housing, Shelter Plus Care, and SRO Moderate Rehabilitation programs); Safe Havens Demonstration program; and, Rural Homelessness Grant program. State Funds: Georgia Housing Trust Fund for the Homeless. Private Funds: Resolution Trust Corporation; Fannie Mae; Freddie Mac; and Various foundations, financial institutions, and nonprofit organizations. FFY2000 Consolidated Plan for the State of Georgia 113 D. STRATEGIES TO ADDRESS GEORGIA'S OTHER SPECIAL NEED HOUSEHOLDS SUMMARY OF THE HOUSING AND SUPPORTIVE SERVICE NEEDS OF GEORGIA'S NONHOMELESS HOUSEHOLDS REQUIRING SUPPORTIVE HOUSING The following sections summarize the housing and supportive service needs of Georgia's non-homeless households that require supportive housing. ELDERLY/FRAIL ELDERLY According to the Department of Human Resources (DHR), Division of Aging Services, Georgia's population aged 60 and older is expected to increase 52.6 percent between 1990 and 2010. Also their reports indicate that Georgia has the fourth fastest growing elderly population in the United States. Both the well and frail elderly require various housing and supportive services to facilitate their living conditions. These services include among others: transportation, outreach, information and referral assistance, health care treatment, health screening, nutritional programs, emergency response systems and health monitoring services. Renovation of existing low rent housing facilities to enhance their appeal and service to aging adults is also a high need. In addition, many older homeowners urgently need home repair services. Major rehabilitation of their home is often necessary to ensure safety; others need minor repair work on their home to prevent further deterioration. The frail elderly also require in-home and adult day care services to assist these persons to remain in the community while limiting the dependency and loss of dignity, which frequently accompanies illness and impairment. In-home services may include a personal care aide to assist in daily activities, a respite care sitter to relieve the primary care taker, a homemaker service to clean and cook, and a home health service to assist in the individual's health care regime. Minimal in-home support prevents the need to institutionalize the elderly person, providing considerable cost savings to both the family and taxpayer. The Department of Human Resources estimates that one homemaker can serve approximately twenty clients at the same cost of housing one person for one day in a nursing home. GEORGIANS WITH SUBSTANCE ABUSE PROBLEMS Residential care is one part of a continuum of essential substance abuse services, ranging from prevention to responding to critical problems, needed to meet the mission of DHR's Division of Substance Abuse. Residential care for those with the highest needs includes the following treatment arrangements: V Short-term, intensive inpatient care options with the length of stay dependent on the severity and complexity of the person's problem; V Specialized residential care options for persons with special needs, such as persons with HIV and persons with both mental and addictive illnesses; 114 FFY2000 Consolidated Plan for the State of Georgia V Long-term residential care options for persons whose level of impairment requires a length of stay longer than one year; and, V Transitional residential care options, such as halfway houses and recovery residences, with length of stay up to one year. GEORGIANS WITH MENTAL, PHYSICAL AND DEVELOPMENTAL DISABILITIES This population is the most diverse of all groups examined for the plan. DHR's Division of Rehabilitation Services categorizes its caseload into two groups, the mentally and the physically disabled. The former includes mental retardation, learning disabled, personality disorders, substance abuse, and mental impairments and accounts for 57% of the caseload. The latter category includes amputees, orthopedic disabilities, visual impairments, hearing impairments and other physical conditions such as blood disorders and cancer and accounts for 43% of the caseload. DHR's Division of Rehabilitation Services reports that 9.1% of Georgians between 16 and 64 have a mobility limitation compared to 8.9% nationally, and that the employment rate for this same category is 2% lower than the national average. Georgia also has a higher percentage of is population over the age of 16 with any disability than the rest of the nation. The housing needs of the disabled include community-based residential facilities which offer a non-institutional alternative to the mentally ill and retarded, respite homes to provide care for the profoundly disabled when the primary care giver requires time off, housing retrofitting to provide access for the physically disabled; new construction of housing units with access for the physically disabled; housing facilities for the physically disabled without age restrictions; and housing choices for the physically disabled integrated within the overall community. The service needs of the disabled vary tremendously depending on the disability, but generally include home medical assistance, respite care, personal care assistance, vocational education, case management, transportation assistance, crisis intervention, residential services, and day treatment. GEORGIANS LIVING WITH AIDS DHR estimates that there are approximately 27,000 Georgians infected with HIV. Between 1980 and 1999, 21,477 cases of AIDS have been reported for people residing in Georgia at the time of diagnosis. In 1997 there were 1,716 reported cases in Georgia, or 23 of every 100,000 residents being affected. This number represents a 30% drop in reported cases. DHR reports that the number of people living with AIDS is going up, while the AIDS cases who passed away appears to be going down. This may be attributed to improved antiretrovial medications that delay the progression of the disease. Since 1990, the distribution of AIDS cases among racial and ethnic groups has changed in Georgia. After 1990, the share of cases decreased for the white population, while a larger percentage of all cases were reported in both black and FFY2000 Consolidated Plan for the State of Georgia 115 Hispanic populations. Although Georgia saw a large increase in the number of pediatric (children under the age of 13) AIDS cases in 1994 to 38, the number has decreased each year and there were only 3 reported cases in 1997. This is most likely due to newer antiretroviral medications for infected pregnant women to prevent transmission during pregnancy. Between 1981 and 1997, nearly 87% of pediatric AIDS cases were children at risk from a parent for reason other than transfusion or medical conditions such as hemophilia. In 1995 it was reported that nearly 75% of these cases were black children. According to DHR, the number of AIDS cases reported in women is continuing to rise in Georgia. In 1997, women accounted for 21% of AIDS cases reported in Georgia. This is a significant increase from 1983 when only two cases of AIDS were reported for women. The metropolitan communities continue to rank higher in the rate of reported AIDS cases with the vast majority coming from Fulton County Health District. This area accounted for 48% of the 1,600 cases reported in 1997 for the state. Housing needs of persons living with AIDS include short and long-term tenantbased rental assistance, emergency assistance, and downpayment assistance. In addition, congregate living arrangements for individuals who are terminally ill and need 24-hour support and medical services are necessary. The varied supportive service needs of people living with AIDS include but are not limited to the following: mental health, substance abuse and support group counseling; personal assistance to locate available housing opportunities; legal services; financial services, housing counseling; and nutritional services. OBSTACLES TO MEETING GEORGIA'S NON-HOMELESS SUPPORTIVE HOUSING NEEDS The State has identified the following obstacles to meet its non-homeless supportive housing needs: Public fears and Not In My Back Yard (NIMBY) reactions to having outpatient group homes and supportive facilities located within their neighborhoods. Restrictive and exclusionary zoning practices which limit existence of facilities in certain residential areas; Knowledge and experience lag associated with Georgia's transfer of authority to provide substance abuse services from the State to regional boards without providing adequate training and technical assistance. Lack of public resources available to provide housing and supportive service assistance. 116 FFY2000 Consolidated Plan for the State of Georgia GEOGRAPHIC ALLOCATION OF FUNDS TO ADDRESS GEORGIA'S NON-HOMELESS SUPPORTIVE HOUSING NEEDS The geographic allocation of funding to provide housing assistance for Georgia's Special Needs populations depends on the funding source; however, most funds are competitively available statewide. CONSOLIDATED FORMULA FUNDS The Housing Trust Fund for the Homeless makes ESG program funds available statewide to all local governments and nonprofit organizations that provide emergency shelter and services to Georgia's homeless population. No geographic allocation is currently utilized. HOPWA program funds are available to all qualified local governments and nonprofit organizations operating and developing housing in the State of Georgia for persons living with AIDS. As of 1998, DCA restricted HOPWA funding to counties outside of the 20-county Atlanta MSA. DCA administers the State's CDBG program only within non-entitlement communities. Georgia's entitlement communities receive a direct allocation of CDBG funds from HUD. DCA competitively awards its CDBG funds and, therefore, the nature and quality of the application is the major funding determinant. Although participating jurisdictions receive a direct allocation of HOME funds from HUD, DCA administers all but two of its HOME funded programs (HOME Rental Housing Loan Program and the Community HOME Investment program) throughout the state. In order to encourage the development of affordable housing opportunities within certain areas, some HOME-funded programs operated by DCA enhance the competitiveness of applications for projects located within designated rural or urban revitalization areas. Despite this enhancement, the nature and quality of the entire application, remains each program's major funding determinant. OTHER AVAILABLE FUNDS The Low Income Housing Tax Credit is competitively allocated state-wide. While the nature and quality of the application remains the major funding determinant, projects that are located in a county having the greatest need for affordable rental housing, as determined by DCA and as stated in Georgia's Qualified Allocation Plan, receive a higher Project Locational Characteristics score. DCA administers the State's allocation of Section 8 Rental Assistance program in 149 of Georgia's 159 counties. In the remaining counties, local public housing authorities administer the program. The Housing Trust Fund for the Homeless allocates its funds statewide. No geographic allocation is utilized. FFY2000 Consolidated Plan for the State of Georgia 117 GEORGIA'S FIVE-YEAR NON-HOMELESS SUPPORTIVE HOUSING PRIORITIES, OBJECTIVES AND INVESTMENT PLAN In light of its non-homeless supportive housing needs, Georgia has established the following five-year priority, objective, and investment plan in an effort to provide supportive services to the state's Special Need populations. The Georgia Department of Community Affairs distributes funds for the CDBG, HOME, ESG and HOPWA programs according to the State's annual Action Plan contained within this Consolidated Plan. (NOTE: The following priority and objective description includes only the State priority which directly benefits Special Need households and for which quantitative objectives have been determined. The State's other priorities that may indirectly relate to assisting the special needs of Georgia's non-homeless population are described in other sections of the Strategic Plan. In addition, the figures provided to quantify the State's objectives include projections only for the programs funded by HUD for which the State administers directly. Therefore, only estimates for programs funded by HOME, CDBG, ESG, HOPWA, Housing Counseling, and Section 8 Rental Housing Assistance are incorporated into the State's quantified objective. The State anticipates providing additional assistance through other funding sources to low and moderate income households or organizations serving this population). 118 FFY2000 Consolidated Plan for the State of Georgia PRIORITY: To increase the access of Georgia's Special Needs populations to a continuum of housing and supportive services which address their housing, economic, health, and social needs. Objective #5: Make funding awards to organizations or households that assist 1,850 Special Need households with the housing and supportive services necessary to achieve decent, safe and sanitary living conditions. Investment Plan: Federal Funds (Primary): HOME; Housing Opportunities for People with AIDS; Emergency Shelter Grant (ESG) program; and, Community Development Block Grant (CDBG) program. Federal Funds (Secondary): HUD Special Needs Assistance (Permanent Housing, Shelter Plus Care, and SRO Moderate Rehabilitation programs); Safe Havens Demonstration program; USDA-RD Home Improvement Loans and Grants; HUD Supportive Housing for the Elderly (Section 202) program; HUD Supportive Housing for Persons with Disabilities (Section 811) program; and, Rural Homelessness Grant program. State Funds: Housing Trust Fund for the Homeless; State HOME Matching Funds; and, Georgia Housing Tax Credit. Private Funds: Various nonprofit and for-profit providers. FFY2000 Consolidated Plan for the State of Georgia 119 E. NON-HOUSING COMMUNITY DEVELOPMENT STRATEGIES INTRODUCTION AND NEEDS ASSESSMENT The State recognizes the importance of using CDBG resources to assist in meeting the state's non-housing community and economic development needs. This is reflected in the establishment of the following general priority objective for CDBG funds available through the Consolidated Plan: To provide assistance to local governments to meet their non-housing community and economic development needs. This section contains a description of the State's non-housing community development needs and the objectives of the CDBG Program. Non-housing community development needs were determined through a number of different methods including an analysis of CDBG applications submitted to the State over the past eighteen (18) years, comments received at public hearings for this Plan, consultation processes held in conjunction with the annual Action Plan, and a review of local Comprehensive Plans submitted to the State in response to the State Planning Act. Note that this legislation requires all local governments to prepare annual plans in accordance with DCA guidelines. Communities without an approved Plan are not eligible for State assistance. The State is strongly committed to the concept that locally identified needs must drive State plans. The State does not plan for local units of government, but will incorporate their locally identified needs and plans into State plans. This "bottomup" planning process is firmly woven into the state planning legislation and the method of distribution of CDBG funds. The following list of non-housing community development needs therefore should not be interpreted to be a priority list for funding nor is it meant to be exhaustive. The selection of activities to propose for funding are based on determinations made by local governments in consultation with their citizens, following a local citizen participation plan. As detailed later in the Action Plan, the State has set aside funds for several categories or types of projects in an effort to be more responsive to local needs that often are not conducive to an annual competition. Specifically, funds are set aside for: (1) an economic development program (the EIP program) which accepts applications at any time and (2) the Immediate Threat and Danger Program which responds to urgent need situations. In addition, local governments can make application at any time for a Section 108 CDBG Loan Guarantee. These set aside programs are further detailed in the Action Plan section. Priorities are set by local governments through their citizen participation process and consideration of local needs and are reflected in the actual applications for 120 FFY2000 Consolidated Plan for the State of Georgia CDBG assistance submitted to the State. DCA fully expects to receive and may fund housing and community development projects not included on this list if such projects are competitive in the rating and ranking system described in the Action Plan. HUD regulations for this Plan ask that these needs be quantified as much as possible. Due to a lack of detailed information, this needs list is impossible to "quantify" in terms of dollars, needed feet of sewers, etc, but the dollar value of all these needs may reasonable be assumed to be in the billions of dollars. Given the presently expanding population, changing demographics and an evolving economy, these needs and their relative priority can be expected to change over time. The Consolidated Plan regulation also states that the non-housing community development priority needs must be described by CDBG eligibility category. Because HUD's regulations for the State CDBG program do not list eligible activities, the State must refer to the authorization law of the program: the Housing and Community Development Act of 1974, as amended. Section 105(a) of this Act lists 25 separate eligible activities. All of the activities on the following list are eligible under Section 105(a) and are reflective of locally stated needs: NON-HOUSING COMMUNITY DEVELOPMENT NEEDS Flood and Drainage Facilities Economic Development Assistance For-Profit Entities Public Infrastructure to Promote Economic Development Private Environmental Infrastructure to Serve Businesses Homeowner and Tenant Relocation Assistance Demolition of Dilapidated Structures Street Improvements Pedestrian Walkways Sewer Facilities (New and Replacement Lines, Tap-on Assistance) Water Facilities (New and Replacement Lines, Tap-on Assistance) Senior Citizen Facilities Head Start Centers Other Childhood Education and Day Care Facilities Community Service (Multi-purpose) Centers Public Health (Physical and Mental) Facilities Workforce Development and Adult Learning Centers Park and Recreation Facilities Family Violence Shelters Education & Work Facilities for Persons with Developmental Disabilities Removal of Architectural Barriers Local CDBG Administration Technical Assistance and Training for Local Administrators FFY2000 Consolidated Plan for the State of Georgia 121 Neighborhood Redevelopment Spot slum and blight removal Environmental and brown-field clean-up and redevelopment Land Acquisition for Public Facilities or Redevelopment PRIMARY LONG TERM OBJECTIVE The State has adopted as a specific primary objective for its CDBG program the same objective as the CDBG authorization act, the Housing and Community Development Act of 1974, as amended. This primary objective is to develop viable communities by providing decent housing and a suitable living environment and expanding economic opportunities, principally for low income and moderateincome persons. The primary mechanism for meeting this long-term objective will be the State's Annual CDBG funding program. SHORT TERM OBJECTIVE The short-term objective is to make those CDBG funds allocated to the State by Congress on an annual basis available to local units of government to address their locally determined needs. Consistent with the long-term objective, not less than 70% of the CDBG funds received each fiscal year will be used for the support of activities that benefit persons of low and moderate-income. To be funded, local government applicants must give maximum feasible priority to activities which benefit low and moderate-income families, or aid in the prevention or elimination of slums or blight, or which meet urgent community needs. Funds will be awarded in accordance with the Annual Action Plan to those projects that demonstrate the greatest need, feasibility and impact. Depending of the amount of funds actually appropriated by Congress, DCA expects to annually award (including the annual competition, EIP and ITAD) approximately 100 grant awards. Of course, the actual number will be determined by the actual allocation to the State and the type of projects and amount of funds actually applied for by local governments. While predicting the project types to be funded is difficult due to the emphasis given to meeting locally determined needs, an analysis of the most recent (FY 1999) Regular Annual CDBG Competition may shed some light on what may be funded in the future as well as current priorities. 122 FFY2000 Consolidated Plan for the State of Georgia Table 33: Type of Grants Funded through the FY1999 CDBG Competition. Type Of Project Housing Rehabilitation Public Facilities Economic Development Multi-Activity (includes housing activities) Number Requested 5 145 10 4 Number Awarded 2 67 7 3 Amount Requested $2,168,263 $65,925,681 $4,999,810 $2,776,674 TOTAL 164 79 $ 75,870,428 Note: EIP and CHIP (HOME funded housing grants) are not included. Amount Awarded $804,170 $31,707,404 $3,500,000 $2,276,674 $ 38,288,248 Table 34: Type of Public Facility Projects Funded through the FY1999 Competition Type Water/Sewer Drainage Street Improvements MultiInfrastructure Mental Health and Handicap Centers Adult Learning Center Recreation Facility Number Requested 53 4 25 24 6 2 1 Number Funded 18 3 11 11 Type Supportive Housing Senior Center Health Center Youth Center 3 Multi- Purpose Center 2 Head Start/Day Care 0 Family Violence Shelter Number Requested 1 7 3 2 11 3 5 Number Funded 1 4 2 1 6 2 4 In reviewing this information it is interesting to note that the types of public facility projects that communities apply for has changed over time. During the early and mid-1990's funding cycles, proposals for senior citizen and health centers predominated the competition for community building projects. As CDBG funds were used to meet this need, other facility needs began to be addressed by local communities. This includes more emphasis on centers to provide adult literacy, workforce development as well as youth centers and shelters for victims of family violence. In terms of public infrastructure applications, the need for water and/or sewer improvements remains high and the need for street and drainage facilities has been increasing. FFY2000 Consolidated Plan for the State of Georgia 123 This change over time of project funding illustrates how the established CDBG rating and ranking system is able to respond to locally identified needs. OBSTACLES TO MEETING UNDER SERVED NEEDS The State has identified the following obstacles to meeting under served needs: First and foremost is a lack of sufficient funds to address all the non-housing needs existing in this state. This problem is illustrated by the large number of fundable CDBG projects with high needs that cannot be funded due to a lack of available CDBG funds. Each year DCA receives nearly 200 applications (for all funding categories) but has enough funds available to make only about 100 grant awards. While this problem is dramatic, through creative financing arrangements (such as leverage of other federal grant and loan programs and the injection of state or local "in-kind" assistance or funds), the State hopes to make an impact on under served needs. The rating and ranking system for the "regular annual CDBG competition" as described in the Annual Action Plan, rewards additional points to those applicants which "leverage" additional resources. Through this method, additional persons are served. A second obstacle is a lack of capacity at the local or regional level to develop competitive CDBG applications or to administer projects once funding decisions are made. This need seems especially acute for economic development projects and projects involving the abatement of lead paint hazards. To address this need the State will make available technical assistance funds through a set-aside of CDBG funds. 124 FFY2000 Consolidated Plan for the State of Georgia F. STRATEGIES TO ELIMINATE BARRIERS TO AFFORDABLE HOUSING Georgia recognizes the importance of eliminating barriers to affordable housing. Through its consolidated planning process, the State has established the following priority statement: To improve the responsiveness of State and local policies to affordable housing issues. Georgia has a strong and growing commitment to decent affordable housing for all its citizens. Over the past fifteen years, a wide variety of policy and program initiatives have been instituted to move toward this goal. Governments at both the state and local levels have made important strides in the areas of planning and standardization of construction codes and impact fees. The State has required each local government to consider affordable housing needs within its mandated comprehensive plan. Several local governments are also working to eliminate disincentives associated with tax delinquent properties and gaining clear property title in an effort to encourage affordable housing development and investment in blighted neighborhoods. Other local governments have instituted progressive changes in the levy of property taxes. Over the next five years the State will continue to examine methods to eliminate barriers to obtaining affordable housing. These actions will include among others: Reviewing and revising the structure and administration of housing programs and their related regulations to facilitate access to available funds; Examining, revising and implementing State laws which impact housing affordability; Continuing implementation of the Georgia Planning Act of 1989 which through the State's Minimum Planning Standards requires each jurisdiction to examine issue related to the provision of adequate and affordable housing; and, Implementing actions recommended in the Impediments to Fair Housing Choice Analysis. FFY2000 Consolidated Plan for the State of Georgia 125 G. STRATEGIES TO ELIMINATE LEAD-BASED PAINT HAZARDS This section is an outline of the actions proposed or being taken to evaluate and reduce lead-based paint hazards, and a description of how lead-based paint hazard reduction will be integrated into housing policies and programs. Note that the nature and extent of the state's lead-based paint hazard situation is estimated in Sub Part D of Part III -- Housing and Homeless Needs Assessment. Three State agencies are involved in a strategy to address the lead hazards identified in the needs assessment. These agencies are (1) the Georgia Department of Human Resources (DHR) through their proposed Childhood Lead Poisoning Prevention Program, (2) the Georgia Department of Natural Resources (DNR) which is responsible for implementation of the state's "Lead Poisoning Prevention Act of 1994", and (3) the Georgia Department of Community Affairs (DCA) which manages many housing programs including a HUD Demonstration Program to address the reduction of lead-based paint hazards in priority affordable housing. The Childhood Lead Poisoning Prevention Program at DHR was discontinued in 1997 when the CDC funding expired. DHR has recently reapplied to CDC for additional funding and has established the following goals: * Expand the screening of children for lead poisoning; * Identify the sources of exposure; * Provide for medical case management and treatment through local health departments of children identified with elevated blood lead levels; * Maintenance of the proficiency and quality of reporting of the state's laboratory in Albany; * Abate lead hazards where they are identified; * Provide for public and professional information and education relating to the lead hazard issue; * Coordinate and collaborate with other public and private entities addressing the lead problem; and, * Develop, implement and maintain a laboratory based lead surveillance system. The Department of Natural Resources has implemented the "Lead Poisoning Prevention Act of 1994". This comprehensive law provides for the training, licensing and certification of persons performing lead hazard detection and reduction activities, approval of training providers, and standards for lead hazard reduction activities. The Department of Community Affairs is implementing the HUD grant for the Georgia Lead Safe Homes Demonstration Program. 126 FFY2000 Consolidated Plan for the State of Georgia The Department has received $5,732,461 from HUD's Lead Hazard Reduction Grant Program. The Program will match this amount with state Community Development Block Grant and other funds. The bulk of the funds will be used for lead abatement and hazard control activities, testing for LBP hazards, risk assessments and for temporary relocation assistance during construction. The following objectives are identified for the Demonstration Program: (1) To evaluate and reduce the hazards of lead-based paint in housing units occupied by low and moderate income persons; (2) To promote job training and employment and to stimulate the participation of small and disadvantaged contractors, especially those located in lower income project neighborhoods, in lead abatement work and to assist them in becoming state certified; (3) To educate the low income community as to the hazards of childhood lead poisoning; (4) To collect and analyze epidemiological data on housing types associated with elevated blood-lead levels and the existence of lead paint hazards; and (5) To identify cases of childhood lead poisoning and obtain appropriate medical and case management. It is anticipated that lead hazards will be abated in up to 475 affordable housing units. The Department of Community Affairs has solicited proposals for lead testing and abatement from units of local government participating in CDBG or other low and moderate-income affordable housing rehabilitation programs. Blood testing, medical case management, temporary relocation and community education are important components of the Program. Funds have been awarded to the following communities for lead hazard evaluation and control: DeKalb County Fulton County City of East Point Ware County Jasper County Cobb County Gwinnett County City of Americus Evans County City of Twin City In addition, the City of Savannah has operated its own lead hazard control program with direct funding from HUD as well as local and state funds. Target housing units for the DCA Program are drawn from two primary sources: (1) Low and moderate income, affordable units being rehabilitated through the state or federal CDBG funded housing rehabilitation program; and (2) low income, affordable units with children having elevated blood-lead levels identified by Georgia's Childhood Lead Poisoning Prevention Project (GCLPPP) or local Public Health Agencies when no other abatement financing resource is available. FFY2000 Consolidated Plan for the State of Georgia 127 The lead abatement and hazard control strategy will focus on identifying and reducing or abating the following hazards: Lead contaminated dust; Lead contaminated soil; Deteriorated lead-based paint which is chipping or flaking; Lead-based paint accessible to children that can be chewed; Lead-based paint present in friction surfaces; Lead-based paint present in impact surfaces; and, Lead-based paint on any surface disturbed as a result of rehabilitation activity. While an individual hazard control or abatement plan will be developed for each house, it is anticipated that in most cases the hazardous materials will be removed and properly disposed at a permitted disposal site. Low and moderate-income homeowners will receive deferred payment, forgivable loans or grants to finance the abatement cost. All abatement contractors will be certified and their workers properly trained. Residents of affected units will receive educational materials on safe maintenance practices. To encourage participation by low and moderate income, small or disadvantaged businesses, the Department encourages local governments to use CDBG funds to pay for contractor and worker training and certification costs. The Department of Community Affairs will also serve on the Advisory Committee of the Georgia Childhood Lead Poisoning Prevention Program if this group is reactivated. Through this Advisory Committee, plus contacts with other involved state and federal agencies, DCA serves as a point of coordination for the integration of lead hazard reduction into housing policies and programs. Finally, the 2000 session of the General Assembly passed a bill to reduce the liability of rental property owners who identify and control lead hazards in accordance with recommended practices. This new program will be implemented during the upcoming Program Year. 128 FFY2000 Consolidated Plan for the State of Georgia H. GEORGIA'S ANTI-POVERTY STRATEGY OVERVIEW OF POVERTY IN GEORGIA At the time the first Consolidated Plan was prepared (based on 1992 Census estimates), 17.8% of Georgia's population lived below the poverty level, higher than the national percentage of 14.5%. Only nine states possessed poverty rates equal to or higher than Georgia's figure. These states include Mississippi (24.5%), Louisiana (24.2%), West Virginia (22.3%), New Mexico (21.0%), the District of Columbia (20.3%), Kentucky (19.7%), South Carolina (18.9%), Oklahoma (18.4%), and Texas (17.8%). In addition, the percentage of Georgians living below the poverty level had increased each year between 1990 and 1992, from 15.8% to 17.8%. The number of Georgians living below the poverty level also increased over this period, from 1,001,000 in 1990 to 1,151,000 in 1992. According to the most recent estimates (1998), the percent of Georgia's population living in poverty has declined to 14.3%. This figure is still higher than the national figure of 13.2% but has fallen faster than the national figure since 1992. Some of this change can be attributed to the state's rapid population growth and the growth of the state's economy in terms of the number of new jobs created. Since the 1990 Census, Georgia's population has increased by to an estimated 7,788,240 people and the number of new jobs created has led the nation. On a county level, poverty statistics from the 1990 Census reveal that in some counties over one-third of the households live below the poverty level. The five counties with the highest percentages of persons living below the poverty level in 1990 are Randolph (35.9%), Clay (35.7%), Quitman (33.0%), Dooly (32.9%), and Warren (32.6%). Four of these counties are located in Georgia's southwest corner. Household types most affected by poverty include female-headed households (34.3%), black households (30.3%), and the elderly (20.4%). GOALS, PROGRAMS AND POLICIES TO REDUCE POVERTY The State of Georgia has established several goals relating to the reduction of poverty among its residents, including: To provide a range of services and activities having a measurable and potentially major impact on conditions of poverty in the community, or those areas of the community where poverty is a particularly acute problem; To provide activities designed to assist low income participants, including the elderly poor, secure and retain meaningful employment; attain an adequate education; make better use of available income; obtain and maintain adequate housing; obtain emergency assistance to meet immediate and urgent individual and family needs, including health FFY2000 Consolidated Plan for the State of Georgia 129 services, nutritious food, housing and employment; remove obstacles blocking the achievement of self-sufficiency; and achieve greater participation in the affairs of the community; To provide for the emergency provision of supplies and services, nutritious foodstuffs, and related services necessary to counteract conditions of starvation and malnutrition among the poor; To coordinate and establish linkages between governmental and other social service programs to assure the effective delivery of such services to low income individuals; and, To encourage the private sector of the community to become involved in efforts to ameliorate poverty. The State has adopted numerous policies and administers many programs designed to assist in the elimination of poverty conditions. DCA, the Department of Labor, the Department of Adult and Technical Education and the Georgia Department of Human Resources (DHR) will continue to work closely and coordinate their efforts to address issues related to poverty, such as lead-based paint abatement, homelessness, job training and the on-going reform of the welfare system. Additionally, the 2000 session of the Georgia General Assembly passed into law the creation of the OneGeorgia Authority. This Authority will have extensive financial capability to address stagnating economic growth in the state's rural counties hopefully leading to a reduction in the poverty levels in these counties. In addition to the housing, community development, and social service programs previously described, which utilize a combination of federal and state financing resources, the State will continue to administer other programs specifically targeted to reducing conditions of poverty. The Community Services Block Grant (CSBG) program, for example, administered by DHR is an important component to this effort. This program assists poor families by providing services related to employability, transportation, the elderly, housing, alcohol and drugs, children, emergency assistance, and the prevention and elimination of homelessness. The State anticipates that the efforts of each of its housing, economic and community development and social service programs will assist in reducing the percentage of households with incomes below the poverty line and address the regional disparities in poverty and economic growth. 130 FFY2000 Consolidated Plan for the State of Georgia I. INSTITUTIONAL STRUCTURE OF GEORGIA'S HOUSING DELIVERY SYSTEM OVERVIEW The housing industry functions as a result of actions by private sector individuals and companies interested nonprofit organizations, and all three levels of government - federal, state and local. The actions of each entity influence the other's subsequent actions and the overall ability of the market to meet the housing needs of Georgia's consumers. This section outlines the responsibilities and programs of the various institutions and organizations responsible for implementing Georgia's housing and community development plan. These organizations are divided into three groups: Public Institutions, Nonprofit Organizations, and Private Industry. While the role of the Department of Housing and Urban Development (HUD) is significant in Georgia's housing delivery assistance system, its role is generally described below as part of initiatives conducted at the State and local government level since these jurisdictions principally implement HUD funds. While most private firms, State agencies and large units of local government have the financial, personnel and administrative capability to undertake housing assistance programs, many nonprofit organizations and small units of local governments lack these necessary resources. As common providers of affordable housing opportunities, particularly for the homeless and other special need populations, nonprofit organizations require assistance to build their capacity. The State of Georgia recognizes the importance of this need and has established the following priority as part of its affordable housing needs: To increase the capacity and skills of local nonprofit organizations and other providers to offer housing assistance. PUBLIC INSTITUTIONS - FEDERAL LEVEL DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT The Department of Housing and Urban Development (HUD) serves as the principal federal agency for housing and community development programs and issues. HUD administers among others the four funding programs- HOME, CDBG, ESG, and HOPWA- covered by this Consolidated Plan. In addition, HUD offers other programs described elsewhere in this document that are available to the state to address its housing and community development needs. The HUD Section 8 program offers rental assistance for low and moderate income households. A complete program description is included with the narrative on the Georgia Department of Community Affairs, which administers the program in 149 counties within the state. The remaining ten counties of Bibb, Chatham, Clayton, Cobb, DeKalb, Fulton, Glynn, Muscogee, Richmond and Sumter as well as various FFY2000 Consolidated Plan for the State of Georgia 131 public housing authorities receive Section 8 funds directly from HUD to administer this program. DEPARTMENT OF VETERANS AFFAIRS Since the end of World War II, the Department of Veterans Affairs (VA) has been authorized to guarantee loans to eligible military veteran. These loans can have loan to value ratios as high as 100%. Insurance costs are financed in the mortgage, making VA loans one of the most affordable means to homeownership. RURAL DEVELOPMENT Formerly known as the Farmers Home Administration (FmHA), the Rural Development office of the USDA provides housing assistance to farm families and to low and moderate income households living in the nation's rural areas, including cities of up to 20,000 residents. Various programs include: Section 502 Direct Loans: Offers loans to individuals or families for the purchase of an existing home or new home construction. Most households are of low or moderate income. Section 502 Guaranteed Rural Housing Loans: Provides a guarantee for loans made by private lenders. An individual or family may borrow up to 100% of the appraised value of the home, eliminating the need for downpayment. Section 504 Home Improvement and Repair Loans and Grants: Offers loans and grants for renovations and to make a home accessible for people with disabilities. Homeowners 62 years and older are eligible for home improvement grants. Other low income families and individuals may receive loans at a 1% interest rate. Section 514 Farm Labor Housing Program: Low interest loans and grants are available to public and nonprofit entities (or farmers) for the construction of farm labor housing. Funds may be used to buy, build, improve or repair housing for farm laborers. Eligible activities also include purchasing a site or a leasehold interest in a site; constructing housing, day care centers or community rooms; paying fees to purchase durable household furnishings; and paying construction loan interest. Section 521 Rental Assistance Program: Provides rent subsidies to low income, elderly and disabled residents of multifamily housing complexes built under either the Rural Rental Housing Program (Section 515) or the Farm Labor Housing Program (Section 514). Section 515 Rural Rental Housing Loans: Provides direct loans to developers of affordable rural multifamily housing. Interest rates may be subsidized to as low as 1%. Funds can be used to construct new rental housing complexes or to repair and rehabilitate existing units. 132 FFY2000 Consolidated Plan for the State of Georgia Section 523 and 524 Rural Housing Site Loans: Provide loans for the purchase and development of affordable housing sites in rural areas for low and moderate income families. Loans are made to acquire and develop sites for housing to be constructed by the self-help method, or for site development to build a home for any low or moderate income family. Eligible organizations include nonprofits, public bodies and federally recognized Indian groups. Section 533 Housing Preservation Grant Program: Makes grants to nonprofit organizations, local governments and Native American tribes to renovate existing low income multifamily rental units. Funds may also be used by recipients to help individuals make repairs to private homes. Section 538 Rural Rental Housing Guaranteed Loan Program: Funds the construction of multifamily housing units to be occupied by low income families. Rural Development guarantees up to 90% of the amount of a loan from a private lender to a housing developer to be used for the construction of low income multifamily housing. Occupants of the housing must be very low to moderate income households; or elderly, handicapped, or disabled persons with income not in excess of 115% of the median income of the surrounding area. Rural Community Development Initiative: Provides funds to be used solely to develop the capacity and ability of private, nonprofit, community-based housing and community development organizations, and low income rural communities to under take projects to improve housing, community facilities, as well as community and economic development projects in rural areas. FEDERAL NATIONAL MORTGAGE ASSOCIATION (FANNIE MAE) Created in 1968, the Federal National Mortgage Association (Fannie Mae) is a federally chartered organization created to help families achieve homeownership. Fannie Mae acquires mortgages from mortgage bankers, savings and loan associations, commercial banks, credit unions and state and local housing finance agencies under a mandate to increase the flow of funds to finance home mortgages. In addition, to provide liquidity and flexibility to the rental housing market, Fannie Mae provides financing options on rental housing of 5 or more units or apartments through a network of lenders. FEDERAL HOME LOAN MORTGAGE CORPORATION (FREDDIE MAC) The Federal Home Loan Mortgage Corporation (Freddie Mac) is a federally chartered corporation that purchases mortgages from lenders on a cash basis or swaps the mortgages for mortgage-back securities. Lenders keep the origination fee and earn servicing income on the loans. Through its affordable housing programs, Freddie Mac participates in a broad range of community lending initiatives for low and moderate income home buyers. FFY2000 Consolidated Plan for the State of Georgia 133 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GINNIE MAE) The Government National Mortgage Association (Ginnie Mae) is an agency of the federal government within the Department of Housing and Urban Development. Created in 1968, Ginnie Mae's primary role is to guarantee the timely payment of principal and interest on mortgage-backed securities composed of FHA-insured, VA guaranteed or FmHA mortgages. FEDERAL HOME LOAN BANK Congress created the Federal Home Loan Bank (FHLB) during the depression of the 1930's to provide a central credit facility for institutions engaging in home finance activities. FHLB established the Affordable Housing Program in accordance with Section 721 of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) of 1989. Under FHLB's Affordable Housing Program subsidies are provided to member institutions engaged in lending for long-term low and moderate income owner and rental housing at subsidized interest rates. PUBLIC INSTITUTIONS: - STATE LEVEL GEORGIA HOUSING AND FINANCE AUTHORITY Created in 1974 as the Georgia Residential Finance Authority, the Georgia Housing and Finance Authority (GHFA) provides financing for the creation of housing for low and moderate income families and persons. Since 1996, the programs of GHFA have been administered by the Georgia Department of Community Affairs. GEORGIA DEPARTMENT OF COMMUNITY AFFAIRS The Georgia Department of Community Affairs (DCA) is the State's lead agency for housing, community planning and development. Initially created as the Bureau of State Planning and Community Affairs in 1970, the agency received its current name and status as a separate department of government in 1977. In 1996, DCA assumed responsibility for administering the programs of the Georgia Housing and Finance Authority (GHFA). DCA is the principal administrative agent for the State's allocation of federal Community Development Block Grant (CDBG), HOME, Low Income Housing Tax Credits, Section 8 Rental Assistance, Emergency Shelter Grant (ESG), and Housing Opportunities for People with Aids (HOPWA) funds. DCA also utilizes the proceeds from GHFA's issuance of mortgage revenue bonds to further affordable housing opportunities in Georgia. In addition, DCA administers all programs funded by the State Housing Trust Fund for the Homeless. Descriptions of the programs currently administered by DCA may be found in the Annual Action Plan section of this document. 134 FFY2000 Consolidated Plan for the State of Georgia STATE HOUSING TRUST FUND FOR THE HOMELESS The State Housing Trust Fund for the Homeless was established by the General Assembly in 1989. Today, the Trust Fund is administered by the Georgia Department of Community Affairs and is guided by a nine-member commission. The Trust Fund is responsible for administering grants and loans to local governments and private nonprofit organizations to assist low-income and homeless persons. As a result of the Trust Fund's work, several hundred organizations acquire and rehabilitate buildings, provide supportive services such as food and counseling, and emergency, transitional, supportive and permanent housing available to persons in need. Additionally, the organization provides a variety of technical assistance programs designed to enhance the way organizations deliver services to benefit low-income and homeless persons. Each year, the Trust Fund receives funding from the Georgia General Assembly and HUD to provide those facilities and services described under Georgia's Continuum of Care. Funds from HUD pay for Housing Opportunities for Persons with AIDS and the Emergency Shelter Grant Program (ESG). Funds from the Georgia General Assembly (typically $3.375 million) provides matching dollars for ESG and makes additional money available for the balance of projects operated by the Trust Fund. Since 1989, the State Housing Trust Fund for the Homeless has awarded $28.8 million to local governments and private nonprofit organizations to make facilities and services available to homeless persons. In SFY98-99, the Trust Fund awarded $13.5 million for Emergency Shelter, Supportive Housing Development, Nonprofit Technical Assistance, Affordable Housing, Supportive Facilities and Administration. PUBLIC INSTITUTIONS - LOCAL COUNTY AND MUNICIPAL GOVERNMENTS Many of Georgia's county and municipal governments play an active role in providing affordable housing opportunities within their jurisdictions utilizing combinations of federal, state and local funds for this effort. The capacity of local governments to implement housing assistance projects and initiatives varies widely. Although many larger cities and counties have staffing to implement such activities, many local governments provide housing assistance using the aid of State agencies, regional development centers and private consultants. Several cities and urban counties receive federal HOME funds directly from HUD. These participating jurisdictions include the cities of Albany, Atlanta, Macon, and Savannah as well as the counties of Clayton, Cobb, DeKalb, Fulton, and Gwinnett. Three consolidated governmental units, Athens-Clark County, Augusta-Richmond County, and Columbus-Muscogee County also receive HOME funds directly from HUD. With the addition of the city of Warner Robbins, these jurisdictions are also entitlements for the CDBG program and, therefore, directly receive CDBG funds annually from HUD. FFY2000 Consolidated Plan for the State of Georgia 135 Under the Georgia Planning Act of 1989, each county must develop comprehensive plans, which in addition to other areas, must examine issues related to the provision of adequate and affordable housing. The Georgia Planning Act requires these plans to include an inventory of the local housing stock and consider the various housing options available to adequately and affordably house the county's existing and projected population. URBAN RESIDENTIAL FINANCE AUTHORITY In 1979, the Georgia General Assembly authorized the creation of urban residential finance authorities within municipalities with populations of 350,000 or more to address the shortage of the shortage of affordable, decent, safe, and sanitary housing. Only the City of Atlanta meets the established population threshold and, therefore, only one Urban Residential Finance Authority exists within Georgia. The Urban Residential Finance Authority (URFA) in Atlanta operates the Atlanta Home Buyers program that provides affordable financing for prospective, qualified home buyers seeking to purchase a home in the City of Atlanta. The loans are available from the proceeds of tax exempt bonds issued by URFA. These loans are available to qualified applicants by local lenders. Although the program is available city-wide, URFA provides special consideration for certain neighborhoods by eliminating the first time home buyer requirement and raising income level limits for homes purchased in these target areas. LOCAL LAND BANK AUTHORITIES In 1990, the Georgia General Assembly authorized the creation of land bank authorities with power to acquire tax delinquent property, extinguish the taxes owed on that property and convey the property to a responsible developer. The legislation enables local governments with overlapping jurisdiction (cities and the counties they lie within) to enter into cooperative agreements for the purpose of returning property that is not generating revenue or producing taxes to "effective utilization status in order to provide housing, new industry and jobs for the citizens of the county." The land bank authority mechanism allows for the public recycling of blighted property in cities where unpaid taxes, fines and other public obligations exceed the value of the property. The land bank authority may acquire property in several ways: the property may be either purchased by the land bank authority, donated by the property owner, or conveyed by the local government in connection with a tax foreclosure sale. Without this mechanism, properties with these outstanding obligations are unmarketable and unlikely to be improved and, thereby, contribute further to neighborhood decline. Land bank authorities have been established in two urban areas: Atlanta-Fulton County and Savannah-Chatham County. 136 FFY2000 Consolidated Plan for the State of Georgia LOCAL EMPOWERMENT ZONES/ENTERPRISE COMMUNITIES HUD designated in December 1994 certain neighborhoods within the City of Atlanta as a federal empowerment zone. The federal government will provide up to $100 million in funds, offer tax incentives, provide technical assistance, and ease federal regulations in an effort to assist the community spur the social, economic and physical redevelopment of these inner-city Atlanta neighborhoods. This community driven process is a partnership developed between residents, government officials, nonprofit organizations and private industry. The U.S. Department of Agriculture (USDA) has designated Crisp and Dooly counties as a Rural Empowerment Zone, one of the few such designations in the country. USDA will make up to $20 million available to the EZ over a ten year period for economic, community and housing development activities. In addition, HUD has designated one urban enterprise community which includes areas within the city of Albany and the USDA has designated the Central Savannah River Area (including Burke, Hancock, Jefferson, McDuffie, Taliaferro, and Warren Counties) as a rural enterprise community. While the concept is similar to the empowerment zone program, enterprise communities will receive up to $3 million in funding assistance as well as technical assistance, tax incentives and regulatory relief from the federal government. Creation of affordable housing opportunities and the redevelopment of housing within these neighborhoods is a key component of strategies developed within the plans of Georgia's enterprise communities and empowerment zones. The success of these local communities in achieving the Enterprise Community and Empowerment Zone designations demonstrates the ability and commitment of Georgians to effectively develop cooperative partnerships between public, private and nonprofit sectors to address social, economic and community development issues. NONPROFIT ORGANIZATIONS PUBLIC HOUSING AUTHORITIES Public Housing Authorities (PHAs) carry out a large portion of Georgia's housing assistance effort. In 1937 the Georgia General Assembly enabled each county and city to establish functioning public housing authorities within their jurisdiction upon a declaration of need. Local governments have created 199 public housing authorities in Georgia with a total of 52,584 units under their collective administration. PHAs utilize funds from public housing rent receipts, federal subsidies from HUD, and proceeds from bond issues for some development costs. Public Housing Authorities are expanding beyond their traditional role to help preserve affordable housing opportunities in the state. The Atlanta Housing Authority and the Macon Housing Authority currently serve as Participating FFY2000 Consolidated Plan for the State of Georgia 137 Administrative Entities to provide services in the restructuring of loans for expiring properties in the HUD Section 8 Program. In addition, a consortium of 10 local public housing authorities (Americus, Athens, Atlanta, Augusta, Brunswick, Columbus, Decatur/DeKalb, Hinesville, Macon, and Marietta) have teamed with GHFA to create Georgia HAP Administrators (GHA), Inc., to provide Section 8 Contract Administration services to HUD. Moreover, housing authorities, such as the Flint Area Housing Authority and the Calhoun Housing Authority, have begun to develop affordable single family and multifamily housing opportunities in their communities. PRIVATE NONPROFIT ORGANIZATIONS AND COMMUNITY HOUSING DEVELOPMENT ORGANIZATIONS Nonprofit organizations and Community Housing Development Organizations (CHDOs) play an increasing and important role in the development and rehabilitation of affordable housing throughout Georgia. Each group differs in their mission, size, funding and organizational characteristics. Some groups exist in only one locality while others function as part of a nationwide network. PRIVATE INDUSTRY HOUSING DEVELOPERS Georgia's rapid growth during the 1980's and 1990's produced the emergence of a large, widely diversified housing development industry. The Home Builders Association of Georgia approximates that 2,250 builders, remodelers, and developers are actively involved in residential development within the state. Most of these developers are located in Georgia's urban areas. In addition, organizations such as the Council for Rural Housing Development enhance communication and represent the interests of developers using USDA-Rural Development programs. Private housing developers actively participate in affordable housing programs, such as Section 8 and Low Income Housing Tax Credits. DCA actively seeks input from developers to better understand practical problems facing the industry and to help design affordable housing programs. The Georgia Affordable Housing Coalition consists of over 100 members of the affordable housing development community. DCA regularly meets with coalition representatives to discuss pertinent housing program issues and participates as presenters at the coalition's fall and spring meetings. FINANCIAL INSTITUTIONS Participation by private financial institutions in providing affordable housing assistance occurs through compliance with the Community Reinvestment Act, and participation in programs and partnerships with state and local governments. First, financial institutions must comply with the Community Reinvestment Act that requires these organizations to publish available forms of credit within its selfdefined community and maintain for public inspection written comments regarding 138 FFY2000 Consolidated Plan for the State of Georgia CRA compliance. The CRA requirements follow the Home Mortgage Disclosure Act of 1975 which addresses the issue of redlining by requiring mortgage lenders to disclose the geographic locations of their loan distributions. Second, financial institutions increasingly participate in partnerships with state and local governments to further access to affordable housing. For instance, DCA's Single Family Loan programs currently operate using the expertise and resources of over 50 participating lenders. STRENGTHS & GAPS OF THE HOUSING AND COMMUNITY DEVELOPMENT DELIVERY SYSTEM STRENGTHS The system to deliver housing and community development is both diverse and strong. While the previous section highlights many of these strengths, the following points briefly summarizes some of these strengths: The General Assembly has committed to addressing the problem of homelessness in Georgia through the creation of the Housing Trust Fund for the Homeless and the continued increase of financial resources available to implement programs to address this issue. The General Assembly passed legislation during its 2000 session creating the Georgia Housing Tax Credit that will expand financing available to create affordable housing opportunities, particularly in rural areas. All projects receiving the federal low income housing tax credit and placed in service after January 1, 2001 will be eligible to receive the Georgia Tax Credit. The General Assembly passed legislation during its 2000 session to create the OneGeorgia Authority that will promote economic and community development activities in the state's rural communities. The consolidation of the state's housing and community development programs under one agency, the Georgia Department of Community Affairs, has enabled the State to better coordinate the implementation of the various programs and has enhanced the resources available to address these needs. Many private institutions have formed partnerships with local governments and various nonprofit organizations to assist in addressing Georgia's housing and community development issues. Both a formal and informal network of communication exists between providers to match programs and projects with funding sources and to keep the players in Georgia's affordable housing industry updated on important issues. FFY2000 Consolidated Plan for the State of Georgia 139 GAPS While many strengths exist in Georgia's system for delivering housing and community development programs to its low and moderate income residents, gaps in this structure exist which hinders fully addressing this need. These gaps may be summarized as follows: Local governments and nonprofit organizations often lack the capacity to administer housing and community development programs. Additional nonprofit providers need to be created to insure adequate coverage of the state by these organizations. Program providers frequently have different funding cycles and/or program timelines that increase the difficulty in accessing the resources of various programs simultaneously. Requirements of various federal programs often directly conflict and/or drive up the costs to provide affordable housing opportunities. Competitiveness aspect of various federal programs hinders the ability of state and local governments and other providers to annually implement programs. Local governments may be unwilling or unfamiliar with the need to address affordable housing, homelessness and special needs issues. GEORGIA'S STRATEGY TO OVERCOME GAPS IN ITS INSTITUTIONAL STRUCTURE The State acknowledges the importance over the next five years of improving the capacity of its institutional structure to deliver affordable housing. As part of this recognition, the State has established the following priority: To increase the capacity and skills of local nonprofit organizations and other providers to offer housing assistance. The State will continue to focus on improving the capacity of local governments to even participate in meeting local housing needs, building the capacity of local nonprofit organizations to increase their effectiveness and to encourage the creation of additional nonprofit providers so that each community in Georgia is sufficiently served. 140 FFY2000 Consolidated Plan for the State of Georgia J. GEORGIA'S STRATEGY TO ENHANCE COORDINATION The policy of the State of Georgia strongly favors the formation and maintenance of cooperative partnerships with the federal government. Through this cooperation, various State agencies administer numerous federally funded housing and community development programs. Many partnerships with federal agencies also exist at the local level with public housing authorities and HUD entitlement communities. The State of Georgia also recognizes the importance of cooperative partnerships between State agencies and all housing industry players in effectively addressing affordable housing issues. Many examples of partnerships and efforts to coordinate Georgia's response to its housing and community development exist, including: GHFA has partnered with ten local public housing authorities to create Georgia HAP Administrators, Inc., to provide Section 8 HAP Contract Administration services to HUD. DCA has partnered with local public housing authorities to create Georgia M2M, Inc., to assist the Macon Housing Authority in its role as Participating Administrative Entity under the HUD's Mark-to-Market Program. Through its Work Force Housing Initiative, DCA is working with local governments across the State to increase the supply of single family housing in rural Georgia. DCA's Housing Counseling program operates in partnership with Consumer Credit Counseling Agencies in Georgia to provide one-on-one housing counseling services to households interested in purchasing their first home. DCA has collaborated with homeless providers from across the State to develop a Continuum of Care Plan for the balance of the state. DCA also maintains a strong working relationship with the Georgia Municipal Association (GMA), the Association of County Commissioners of Georgia (ACCG), the Georgia Association of Housing Redevelopment Agencies (GAHRA). As recognition of the importance of this issue over the next five years, the State established the following priority: To increase coordination, strengthen linkages and encourage the formation of partnerships between Georgia's private sector housing developers, financial institutions, nonprofit organizations, public sector agencies, foundations and other providers. The State will continue to further its efforts to enhance coordination with the providers of affordable housing and community development activities that benefit Georgia's low and moderate income households. The State will continue to examine and implements ways to address the following issues: FFY2000 Consolidated Plan for the State of Georgia 141 Identifying areas of service delivery and regulation that have a high potential for improvement through enhanced coordination; Developing formal and informal mechanisms within and between agencies and other organizations to effect coordination among all parties; Undertaking efforts to coordinate the timing of various program application cycles to facilitate simultaneous access to these funds; and, Evaluating methods of sharing program, activity and needs information among housing and community development providers. K. GEORGIA'S STRATEGIES TO COORDINATE THE LOW INCOME HOUSING TAX CREDIT WITH THE DEVELOPMENT OF AFFORDABLE HOUSING USE OF THE LOW INCOME HOUSING TAX CREDIT IN GEORGIA Administered by DCA on behalf of the Georgia Housing Finance Authority (GHFA), the State's Low Income Housing Tax Credit program was created in accordance with provisions of the Tax Reform Act of 1986. This program promotes the development of low income rental housing through tax incentives rather than direct subsidies. In exchange, tax credit recipients must maintain rent levels affordable to low income households. The tax credit is a direct dollar-for-dollar credit against a taxpayer's federal income tax liability on ordinary income (salaries, wages, and other business expenses). The tax credit may be taken annually over a ten year period subject to passive loss limitations. The tax credit may equal up to 9% annually the depreciable cost of the low income units if the units are financed conventionally or up to 4% if financed with tax-exempt bonds or through other federal subsidies. Georgia's federally determined statewide credit authority is $1.25 per capita. From its annual authority, DCA allocates its credits based on the strength of the projects submitted and evaluated based on the State's Qualified Allocation Plan. The full text to Georgia's most current Qualified Allocation Plan may be found in Appendix I. GEORGIA'S EFFORTS TO COORDINATE THE LOW INCOME HOUSING TAX CREDIT WITH OTHER AFFORDABLE HOUSING INITIATIVES To facilitate access to various funding sources available to finance affordable rental housing developments, DCA offers its Low Income Housing Tax Credit allocation through a single, annual application process with its available HOME resources. During SFY2001, DCA will integrate the administration of the federal Low Income Housing Tax Credit with the recently created Georgia Housing Tax Credit. This new funding source will expand the financing available for affordable rental housing developments, particularly in rural areas of Georgia. 142 FFY2000 Consolidated Plan for the State of Georgia L. PUBLIC HOUSING RESIDENT INITIATIVES No public housing authorities are operated by the Georgia Housing and Finance Authority, the Department of Community Affairs or any other state agency. Therefore, the State has not developed a plan to encourage public housing residents to become more involved in the management of public housing or to become owners of their public housing units. However, the State encourages each individual public housing authority to develop such a plan. As the State entity responsible for the development of the Consolidated Plan, DCA annually reviews the Public Housing Agency Plans prepared by local public housing authorities outside of the state's local entitlement jurisdictions. Since the fall of 1999, DCA has reviewed and approved 126 such plans, many of which contain provisions to encourage public housing resident involvement in the administration and management of the units. FFY2000 Consolidated Plan for the State of Georgia 143 VI. ACTION PLAN A. INTRODUCTION This document details the State's plan for use of its consolidated formula FFY2000 funding allocation from the U.S. Department of Housing and Urban Development during SFY2001, (July 1, 2000 through June 30, 2001). The State's allocation of HOME, ESG and HOPWA funds and activities during SFY2001 are under the full authority of the Georgia Department of Community Affairs (DCA) The State's Action Plan for SFY2001 reflects the FFY2000 consolidated program funding amounts for which the State is eligible to receive from HUD. This allocation is divided between programs as follows: CDBG ($43,583,000); HOME ($18,292,000); ESG ($1,826,000); and HOPWA ($1,333,000). Activities planned for SFY2001 to meet the State's housing priorities and objectives include: Rehabilitate or construct 703 affordable rental housing units for low or moderate income households. Provide 8,360 low or moderate income households with rental assistance; Assist 1,090 low or moderate income households achieve or maintain homeownership. Make funding awards to organizations that provide housing and supportive services necessary to break the cycle of homelessness assisting an estimated 9,600 homeless persons daily. Make funding awards to organizations that provide the housing and supportive services necessary for 370 special need households to achieve decent, safe and sanitary living conditions. In addition to the federal consolidated formula funds, the State will draw upon the resources of the State Housing Trust Fund for the Homeless, the federal Low Income Housing Tax Credit, the Georgia Housing Tax Credit, and the proceeds of mortgage revenue bonds issued by the Georgia Housing and Finance Authority. Production levels indicated above, however, reflect only housing-related production resulting from the State's allocation of consolidated formula funds and other HUD assistance. The exception to this is the inclusion of the State match for ESG which is included in the homelessness production figure. The Georgia Department of Community Affairs will serve as the lead agency in the State's implementation of the Consolidated Plan for SFY2001. 144 FFY2000 Consolidated Plan for the State of Georgia B. SF - 424 The State of Georgia's completed SF-424 for the Community Development Block Grant (CDBG), HOME Investment Partnership (HOME), Emergency Shelter Grant (ESG), and Housing Opportunities for People with AIDS (HOPWA) programs are provided on the following four pages. FFY2000 Consolidated Plan for the State of Georgia 145 Application form SF-424 for the CDBG program will be inserted on this page in the final Action Plan document. 146 FFY2000 Consolidated Plan for the State of Georgia Application form SF-424 for the HOME program will be inserted on this page in the final Action Plan document. FFY2000 Consolidated Plan for the State of Georgia 147 Application form SF-424 for the ESG program will be inserted on this page in the final Action Plan document. 148 FFY2000 Consolidated Plan for the State of Georgia Application form SF-424 for the HOPWA program will be inserted on this page in the final Action Plan document. FFY2000 Consolidated Plan for the State of Georgia 149 C. FEDERAL RESOURCES AVAILABLE TO GEORGIA OVERVIEW OF FFY2000 FEDERAL RESOURCES The State expects to tap a variety of federal resources to address Georgia's housing and community development needs. These resources include the four programs covered by the State's Consolidated Plan: the HOME Investment Partnerships (HOME), Community Development Block Grant (CDBG), Housing Opportunities for People with AIDS (HOPWA), and Emergency Shelter Grant (ESG) programs. HUD has notified the State of Georgia of its eligibility for a consolidated FFY2000 formula allocation of $65,065,000. These funds are divided between programs as follows: CDBG: HOME: ESG: HOPWA: $43,583,000 $18,323,000 $ 1,826,000 $ 1,333,000 In addition, the State has agreed to transfer $31,000 of its total allocation to Clayton County in order to enable this locality to meet the federal threshold limit to be awarded funds directly from HUD. Clayton County will assume total responsibility for the proper administration of these shortfall funds according to all HOME Program regulations and requirements. As a result, the total amount of HOME funding available to the state for administration is $18,292,000. HUD also will make available additional resources from these four programs directly to individual entitlement or participating jurisdictions to address housing and community development needs within their communities. Participating jurisdictions under the HOME program include the cities of Albany, Atlanta, Macon, and Savannah as well as the counties of Clayton, Cobb, DeKalb, Fulton, and Gwinnett. Three consolidated governmental units, Athens-Clarke County, Augusta-Richmond County and Columbus-Muscogee County also receive HOME funds directly from HUD. With the addition of the city of Warner Robbins, all of these jurisdictions are also entitlements for the CDBG program and, therefore, directly receive CDBG funds annually from HUD. Each of these communities is required to submit a Consolidated Plan to reflect its respective housing and community development needs and strategies. Thus, the State's Consolidated Plan does not govern use of entitlement funds in these communities. In 1995, the State received $5,732,461 from HUD to implement a Lead Safes Homes Demonstration Program. The program will match this amount with state Community Development Block Grant funds. During SFY2001, DCA will continue implementation of this demonstration program, using most funds for lead abatement and hazard control activities, testing for lead-based paint hazards, risk assessments, and for temporary relocation assistance during construction. In 1998, the Georgia Housing and Finance Authority received its first allocation of HUD Housing Counseling funds to implement comprehensive housing counseling education 150 FFY2000 Consolidated Plan for the State of Georgia to households interested in purchasing a home. The State will continue this program at the onset of SFY2001 using a second allocation of funds received for FFY2000. GHFA will make application to HUD for a third funding cycle to keep this program available through the entirety of SFY2001. In addition, the State anticipates the availability of the following federal program funds or incentives to address Georgia's housing and community development needs during SFY2001. Funds are listed by general topic areas: Affordable Housing: Section 8 Rental Certificates and Vouchers, Rural Housing and Economic Development Program, Low Income Housing Tax Credit, United States Department of Agriculture-Rural Development (USDA-RD) Home Improvement and Repair Loans and Grants, USDA-RD Rural Rental Housing Loans, USDA-RD Rental Assistance, USDA-RD Farm Labor Housing Loans and Grants, and the USDA-RD Low-Income Housing Preservation program; HUD Fair Housing Organizations Initiatives. Homeownership: HUD Self-Help Homeownership (SHOP) Program, USDA-RD Rural Housing Loans (Homeownership). Public Housing: Comprehensive Grant program, Public Housing Development funds, HOPE VI Revitalization and Demolition Programs. Homeless: Surplus Housing for Use to Assist the Homeless, HUD Shelter Plus Care, HUD Supportive Housing program, HUD Section 8 Moderate Rehabilitation for Single Room Occupancy for Homeless Individuals program, Safe Havens Demonstration program, Rural Homelessness Grant program. Special Needs Housing: USDA-RD Home Improvement Loans and Repair Grants, the Supportive Housing Program, HUD Supportive Housing for the Elderly (Section 202) program, HUD Supportive Housing for Persons with Disabilities (Section 811). Non-Housing Community Development Needs: HUD Brownfields Economic Development Initiatives, HUD Economic Development Initiative, USDA-RD Community Facilities Direct Loans and Loan Guarantees; Rural Utility Service loans and grants; Appalachian Regional Commission Funds; USDARural Business Service (USDA-RBS) Business and Industrial Guaranteed Loans, USDA-RBS Intermediary Relending Program Loans, USDA-RBS Rural Business Enterprise Grants, USDA-RBS Rural Economic Development Loans and Grants, USDA-RBS Local Technical Assistance and Planning Grants, and USDA-RBS Rural Technology and Cooperative Development Grants. The federal government has also designated certain neighborhoods within the City of Atlanta as a federal empowerment zone, providing up to $100 million in funds, offering tax incentives, providing technical assistance, and easing federal regulations in an effort to spur the social, economic and physical redevelopment of these inner-city FFY2000 Consolidated Plan for the State of Georgia 151 neighborhoods. In addition, the federal government has designated as enterprise communities areas within the City of Albany and within the Central Savannah River Area. While the concept is similar to the empowerment zone program, enterprise communities will receive up to $3 million in funding as well as technical assistance, tax incentives and federal regulatory relief. The Crisp-Dooly Partnership has been designated by USDA as a rural empowerment zone, one out of five nationwide, and will receive $20 million in federal funding over the next ten years to address community and economic development needs. The State also is working to leverage funds from the U.S. Department of Health and Human Services wherever allowable to match HUD funding. HHS program funds are considered allowable match for HUD Supportive Housing Programs. This type of leveraging enables the State to maximize resources for homeless and at-risk families throughout Georgia. 152 FFY2000 Consolidated Plan for the State of Georgia D. NON-FEDERAL PUBLIC RESOURCES The State of Georgia expects to use funds from six major non-federal resources to address its housing and community development needs. STATE APPROPRIATION TO THE HOME PROGRAM The State General Assembly annually appropriates funds towards the State's contribution to meet its 25% match obligation required by the federal HOME program regulations. Funds are annually awarded to eligible projects funded through the State HOME Rental Housing Loan program and carry all requirements of the federal HOME dollars. BOND PROCEEDS The State uses the proceeds from mortgage revenue bonds issued by the Georgia Housing and Finance Authority (GHFA) to fund its Single Family Home Buyer program. This program offers first mortgage loans below the prevailing market interest rate to qualified low to moderate-income home buyers seeking to purchase a principal residence. The Georgia Department of Community Affairs administers the Single Family Home Buyer program on behalf of GHFA. GEORGIA HOUSING TAX CREDIT During its 2000 session, the General Assembly passed legislation to create a Georgia Housing Tax Credit for qualified projects placed in service after January 1, 2001. This Credit will be provided to a project in an amount equal to the federal housing tax credit allowed. To be eligible to receive the Georgia Housing Tax Credit, the project must meet the qualifications for the federal Low Income Housing Tax Credit defined in Section 42 of the Internal Revenue Code of 1986. The State will begin implementation of this program in SFY2001. GEORGIA HOUSING TRUST FUND FOR THE HOMELESS The Georgia Housing Trust Fund for the Homeless (HTF) plans to fund affordable housing programs in SFY2001 through its allocation of funds from the General Assembly. All programs are administered by DCA on behalf of the HTF. The first activity, the State Emergency Shelter Grant program, provides shelter and essential services to homeless persons throughout Georgia by making funds available to nonprofit organizations and local government entities operating homeless shelters and/or providing services to the homeless. This program provides the 50% match required for receipt of the federal ESG funding. The State currently administers several shelter and transitional housing programs. Currently, the largest and most successful is the Next Step program. This second activity is designed to provide rental assistance to homeless individuals and families in FFY2000 Consolidated Plan for the State of Georgia 153 an effort to help such persons significantly reduce or eliminate their dependency on private and public forms of assistance and move towards a self-sufficient lifestyle. Eligible applicants include units of general local government and 501(c)3 private nonprofit organizations with experience working with persons who are homeless. The selected grant recipients will make supportive services and rental assistance available to persons who are homeless. Grant recipients may receive funding for up to three years during which time they may provide assistance to individual households for a period not to exceed two years. Third, the State Housing Trust Fund will provide 50% of the total program funding for the Permanent Supportive Housing Program that will provide financial assistance to nonprofit developers of permanent housing for special need households. The remaining 50% of the program funding will be made available through the HOME program. This program will provide construction and permanent financing for the cost of constructing or rehabilitating rental housing for non-elderly special need tenants as defined by the State's Qualified Allocation Plan. The dwelling units must be affordable to low-income households and at least 50% of the total units must be available to the non-elderly special need tenants. Supportive services must be provided that are applicable to the needs of the targeted special need population. SETTLEMENT FUNDS The State entered into a settlement agreement with a mortgage lender as a result of a State investigation into the lending practices of that lender. As part of that settlement, the State received $60 million. The State used nearly all of these funds for the implementation of its Home Advantage Program over the last several program years. During SFY2001, any remaining funds will be utilized for the State's OwnHome Program for the Disabled that makes loans of up to $15,000 to qualified disabled borrowers to cover downpayment costs and for principal reduction. LOCAL MATCH TO THE CDBG PROGRAM The Georgia CDBG program requires a local cash match for all non-housing CDBG projects. The required cash match is based on the amount of CDBG funds received as follows: 0% for amounts up to $300,000 in CDBG funds, 5% of amounts from $301,000 to $500,000, and 10% of amounts over $500,000. DCA estimates that over $1,200,000 in local CDBG match will be provided by local units of government receiving FFY2000 CDBG funds. This approximation is based on 80 CDBG grants being funded with an average grant size of $457,372. The average grant size is based on the FFY1999 CDBG awards. The actual cash match provided will depend on the profile of grants actually funded during SFY2001. 154 FFY2000 Consolidated Plan for the State of Georgia E. GEORGIA'S PROPOSED DISTRIBUTION METHOD, GEOGRAPHIC ALLOCATION AND PROGRAM SPECIFIC FEDERAL REQUIREMENTS OF HOME FUNDS The Georgia Department of Community Affairs (DCA) is the Participating Jurisdiction (PJ) and recipient of the State of Georgia's allocation of funds from the federal HOME Investment Partnerships (HOME) program. HUD has notified the Governor that Georgia is eligible to receive $18,323,000 in FFY2000 HOME funds to address housing needs. The State has agreed to transfer $31,000 of its total allocation to Clayton County in order to enable this locality to meet the federal threshold limit to be awarded funds directly from HUD. Clayton County will assume total responsibility for the proper administration of these shortfall funds according to all HOME Program regulations and requirements. As a result, the total amount of HOME funding available to the State for administration is $18,292,000. With this remaining allocation, the State proposes to operate the following nine programs using its FFY2000HOME allocation: HOME Rental Housing Loan Program provides construction and permanent loans for the construction or rehabilitation of affordable rental housing. The proposed housing must be at a location outside of one of the State's participating jurisdictions for the HOME program unless the proposed project will serve a Special Need population and received points from DCA as a Special Need project during the application review process. HOME CHDO Loan Program expands the financing available to Statedesignated nonprofit community housing development organizations (CHDOs) to develop and manage decent, affordable low-income housing. Construction and permanent financing is available to construct or rehabilitate rental housing that is located in any jurisdiction across Georgia. HOME CHDO Pre-Development Loan Program provides interest-free loans to qualified nonprofit organizations for the preparation of complete and comprehensive applications for financing low to moderate income housing developments using DCA's HOME CHDO program. Permanent Supportive Housing Program provides financial assistance to nonprofit developers of permanent housing for special need households. Construction and permanent financing will be available for the cost of constructing or rehabilitating rental housing for non-elderly special need tenants as defined by the State's Qualified Allocation Plan. The dwelling units must be affordable to low-income households and at least 50% of the total units must be available to the non-elderly special need tenants. Supportive services must be provided that are applicable to the needs of the targeted special need population. To implement this program, the State will use a portion of its HOME CHDO set- FFY2000 Consolidated Plan for the State of Georgia 155 aside in conjunction with an allocation of funds through the State Housing Trust Fund for the Homeless. OwnHOME Program offers deferred payment second mortgages to cover a portion of down payment, closing costs and prepaid expenses for low-income home buyers. Loans may be used in conjunction with the State's Home Buyer program. Rural Development OwnHOME Program offers deferred payment second mortgages to cover a portion of down payment, closing cost and prepaid expenses for low income home buyers receiving first mortgage loans through the USDA-Rural Development Direct 502 Loan program. Development-Based OwnHOME Program offers deferred payment second mortgages of up to $7,500 in selected developments in rural Georgia to cover down payment, closing cost and prepaid items. The balance of funds remaining after payment of these costs may be used for principal reduction. OwnHOME Program for the Disabled provides loans of up to $15,000 to qualified disabled borrowers to cover down payment costs and for principal reduction. Community HOME Investment Program (CHIP) provides funds for local governments to implement any approved, HOME eligible housing activity. HOME funds may be used in conjunction with State CDBG resources that are available jointly through a single application process. DISTRIBUTION METHOD GENERAL The State anticipates that approximately 74% of its FFY2000 HOME allocation will be made available by DCA on a competitive basis in the form of grants, interest bearing or non-interest bearing loans or advances, equity investments, interest subsidies or deferred payment loans. The State will set-aside a minimum of 15% of its allocation for competitive distribution to community housing development organizations (CHDOs). An estimated 16% of the FFY2000 HOME allocation will be available as deferred payment loans on a first-come, first-served basis to qualified home buyers through DCA's OwnHOME program. The remaining 10% will be reserved for program administrative fees. A summary of the HOME distribution method is provided in Table 35 below. Table 35: Proposed Distribution Method of HOME Funding Proposed Distribution Method Percentage Available Available Competitively 74% - Reserved for CHDOs 15% Available First-Come, First-Served 16% Program Administration 10% SOURCE: DCA. 156 FFY2000 Consolidated Plan for the State of Georgia DCA intends to distribute its allocation of FFY2000 HOME funds by program as shown in Table 36; however, DCA reserves the right to redistribute this funding allocation during the course of the SFY2001 program year. Table 36: Proposed Distribution of FFY2000 HOME Funds Program Proposed Allocation HOME Rental Housing Loan Program $7,204,900 HOME CHDO Loan, HOME CHDO PreDevelopment Loan, and Permanent Supportive Housing Programs $2,757,900 OwnHOME, OwnHOME for Disaster Areas, OwnHOME for the Disabled and Rural Development OwnHOME; and DevelopmentBased OwnHOME programs $3,000,000 Community HOME Investment Program (CHIP) $3,500,000 Administration $1,829,200 SOURCE: DCA DCA will directly administer the OwnHOME Program, the OwnHOME Program for Disaster Areas, the OwnHOME Program for the Disabled, and the Development-Based OwnHOME Program through a state-wide network of participating lenders. The Rural Development OwnHOME program will be administered by DCA through USDA-RD. Applications will be reviewed following standard underwriting criteria and funded on a first-come, first-served basis based on criteria established for each set-aside. DCA will also administer its HOME Rental Housing Loan, Permanent Supportive Housing, HOME CHDO Loan, and HOME CHDO Predevelopment Loan programs through its Office of Affordable Housing (OAH). All complete applications to these programs will be evaluated and competitively ranked according to criteria outlined in the State's Qualified Allocation Plan provided in Appendix I. With the remaining competitive allocation of HOME program funds, DCA expects to fund applications by eligible local governments to its CHIP program for implementation of HOME eligible housing activities within their community. CDBG funds will also be available to implement complementary activities eligible under the CDBG program. Both funding sources will be available from DCA through a single application process. Successful applicants will administer HOME funds within their community on behalf of the State according to applicable federal and State program guidelines. GENERAL APPLICATION GUIDELINES Every application must meet certain minimum program requirements as outlined below to be considered for funding: All applications must be eligible entities; All activities undertaken with HOME funds must be eligible; FFY2000 Consolidated Plan for the State of Georgia 157 The minimum amount of HOME funds that can be invested in a project involving rental housing or homeownership is $1,000 per unit; The minimum amount of HOME funds that can be invested in a project involving tenant assistance is an average of $1,000 per household per funding year; The proposed project must be economically feasible; The maximum award per project varies by program, ranging between $5,000 and $2.0 million; All proposals must meet all HUD regulations for the HOME program as published in the Federal Register under 24 CFR Part 92 as amended; Local governments and counties applying for HOME funding must demonstrate maintenance of their level of commitment to housing through the use of other programs. A proposed budget that indicates a level of funding consistent with assistance provided to housing over the last three years will be considered evidence of maintenance of effort; and, New construction must meet all applicable HUD standards. Within each of the State's HOME funded programs, every application must follow established, program-specific application guidelines to be considered for funding. HOME RENTAL HOUSING LOAN AND HOME CHDO LOAN PROGRAMS These project financing resources made available through DCA's Office of Affordable Housing will be distributed through a competitive selection process and evaluated based on standards established by the State's approved Qualified Allocation Plan. Applications submitted by the deadline will be evaluated as follows: A. Completeness Review Formal Applications will be reviewed for completeness as set forth in the OAH Application Manual, including: 1. Organization of the application; 2. Inclusion of all required application forms; and, 3. Submission of all required supporting documents All complete projects will be reviewed to determine if the project meets the mandatory Threshold requirements as defined in the State's Qualified Allocation Plan. Only complete applications that meet the Threshold requirements will be scored against the Project Selection Criteria set forth in the Qualified Allocation Plan. Generally, modification of the content of any Threshold or Scoring Criteria documentation will not be allowed after the Application submission deadline. However, applicants that fail to meet Threshold requirements will be notified in writing of the specific requirement(s) that the application does not meet. If an applicant believes the Threshold requirement(s) were met, the Applicant must 158 FFY2000 Consolidated Plan for the State of Georgia respond in writing within fifteen (15) business days from the date of the DCA notification letter. The Applicant must provide a clear and specific explanation of why the Applicant believes that DCA's initial determination was incorrect. DCA will review the response and, if DCA decides that the initial determination was incorrect, the Application will be scored against the Project Selection Criteria. B. Project Selection Process Only complete Formal Applications that pass the Threshold Analysis will be scored against the Project Selection criteria set forth in the Qualified Allocation Plan included in Appendix I. Scored Formal Applications will be ranked in descending order by total point score. The State will provide written notification to each applicant of their respective award status. HOME CHDO PRE-DEVELOPMENT LOAN PROGRAM DCA will accept applications to the CHDO Pre-Development Loan Program before the application deadline established in the State's Qualified Allocation Plan. Applications will be reviewed on a first come, first-served basis. Applications will be evaluated based on all Threshold requirements established by the State's Qualified Allocation Plan, including but not limited to market and financial feasibility, income and rent restrictions, and site and location characteristics. PERMANENT SUPPORTIVE HOUSING PROGRAM DCA will solicit applications to the Permanent Supportive Housing Program by means of a Notice of Funding Availability that will be mailed to CHDOs and other interested parties. Applications will be evaluated in accordance with minimum threshold requirements, competitive selection criteria, and policies described in the State's Qualified Allocation Plan, including but not limited to market and financial feasibility, income and rent restrictions, site and location characteristics, proposed development characteristics, and compliance history. Only those applications that meet threshold requirements, are economically feasible in the proposed market area, and are ranked among the highest scored applications will be considered for further financing. Notification of ranking does not guarantee approval of a loan. Loan commitments will only be made upon the endorsement of a loan application by DCA in its sole and absolute discretion. OWNHOME PROGRAM, DEVELOPMENT-BASED OWNHOME PROGRAM, OWNHOME PROGRAM FOR THE DISABLED AND OWNHOME PROGRAM FOR DISASTER AREAS A first-time home buyer must apply for any of these deferred payment loans through one of DCA's participating lenders located across Georgia. A borrower must have a sales contract to purchase a home before the application can be made. However, a borrower is encouraged to contact a participating lender prior to signing a sales contract to review the borrower's credit history and to determine an affordable home price range. Once received, the participating lender and DCA will review the application FFY2000 Consolidated Plan for the State of Georgia 159 according to lending industry standards and DCA guidelines established for each funding type. All borrowers are required to receive home buyer education prior to loan closing from one of the nonprofit housing counseling agencies to which DCA provides financial support or from another nonprofit or for-profit source meeting DCA's requirements. RURAL DEVELOPMENT OWNHOME PROGRAM First-time home buyers are also able to apply for a Rural Development OwnHOME loan through the application process for a USDA-RD Rural Direct 502 Loans. Once received, the USDA-RD and DCA will review the Rural Development OwnHOME application according to USDA-RD and DCA standards. All Rural Development OwnHOME borrowers receive home buyer counseling prior to loan closing from USDA-RD. COMMUNITY HOME INVESTMENT PROGRAM (CHIP) Local governments seeking HOME funding assistance through CHIP must apply directly to DCA in conjunction with the annual application process for CDBG funds available to the State's non-entitlement communities. Only local governments not designated as a participating jurisdiction by HUD are eligible to apply for assistance. Applicants are evaluated based on the Rating and Ranking Criteria outlined for the CDBG Regular Annual Competition. HOME AND CHDOS A Community Housing Development Organization (CHDO) is a nonprofit housing development organization that meets the definition outlined in Section 92.2 of the Final HOME Rule. A minimum of 15% of the State's HOME funds are reserved to fund housing projects proposed by organizations that meet the CHDO definition. During each calendar year, the State pre-qualifies any interested nonprofits meeting the HUD requirements to become a CHDO. The pre-certification process only occurs if nonprofits are interested in participating in any of the State's programs set-aside for CHDOs. An organization must complete the CHDO pre-qualification process prior to making application to these programs. The State pre-qualified 42 nonprofits as CHDOs during the calendar year of 1999. During SFY2001, the State will make funds available to CHDOs to develop and manage decent, affordable low-income housing. Construction and/or permanent financing will be available to construct or rehabilitate rental housing that is located in any jurisdiction across Georgia. Interest-free pre-development loans are also available for the preparation of complete and comprehensive applications for financing low to moderate income housing developments using DCA's HOME CHDO Loan program. Additionally, the State will make funds available to CHDOs through the Permanent Supportive Housing Program that will provide construction and permanent financing 160 FFY2000 Consolidated Plan for the State of Georgia for the construction or rehabilitation of rental housing for non-elderly special need tenants as defined by the State's Qualified Allocation Plan. MATCHING REQUIREMENTS FOR THE HOME PROGRAM The HOME program requires that the State make contributions to affordable housing which total at least 25% of the HOME funds drawn down within a fiscal year. The State will utilize funds appropriated by the State General Assembly and from the proceeds of mortgage revenue bonds issued by GHFA to meet the State's HOME program match requirements. These funds will be loaned to applicants in accordance with HOME program guidelines and the repayments of these dollars will be used as HOME funds. Other forms of match will be contributed as available on a project by project basis. GEOGRAPHIC ALLOCATION OF HOME FUNDS In general, the competitive allocation or "first-come, first-served" nature of the State's HOME funded programs prohibits any geographic predetermination for the use of HOME funds. As reported its Annual HOME Performance Report for SFY1999 (July 1, 1998 through June 30, 1999), the State spent a slight majority of its funds in rural counties. Slightly over $4.2 million (48%) in HOME funds were spent on affordable housing located in urban areas; while $4.6 million (52%) of its funds were used in rural areas. However, the report also noted that 1,077 units (80%) were created in urban areas, while 263 units (20%) were located in rural communities. To help increase the expenditure of HOME funds in the State's rural counties, the following policies will be implemented during SFY2001: Applications for funding to the HOME Rental Housing Loan program will only be awarded if the proposed project is located outside the political boundaries of any entity designated as a local Participating Jurisdiction (PJ) by HUD. The only exception to this location requirement is for developments that will serve a Special Need population and received points as a Special Need project during DCA's evaluation of applications submitted to the program. This requirement will decrease the likelihood of funding developments in eleven of the largest MSA counties of the state. The State will continue implementation of its Rural Development OwnHOME program to offer deferred payment second mortgages to cover down payment, closing cost and prepaid expenses for low income home buyers receiving first mortgages through the USDA-Rural Development Direct 502 Loan program. The State has expanded its homeownership marketing efforts in rural areas by increasing to three the number of full-time staff working with lenders, local officials, and other community leaders to increase the rate of homeownership in their area. The three marketing staff members spend the majority of their time working outside of metropolitan Atlanta. FFY2000 Consolidated Plan for the State of Georgia 161 Further, the interest rate of the Home Buyer Program loans used in conjunction with OwnHOME loans is set lower for homes located in mostly rural, targeted areas of Georgia. The WorkForce Housing Initiative will continue to coordinate linkages between DCA, local private lenders, developers, and builders in order to address workforce housing related needs of the particular community. The State will continue implementation of its Housing Counseling program that is designed to educate potential homebuyers on the home buying process. The program offers individualized pre-purchase counseling and post-purchase follow-up services through a network of Consumer Credit Counseling Service (CCCS) organizations across Georgia. In addition, the State will hold Consumer Education Seminars in cooperation with local organizations to promote the general advantages and responsibilities of homeownership. The State will continue to work with the Rural Development agency to coordinate and to implement programs that serve rural Georgia. The use of Automated Underwriting will enable small banks in rural areas to participate. The State will also develop linkages with outsourcing companies that the smaller banks can utilize in the processing of loans. In an effort to spur the new construction of housing in rural Georgia, DCA will begin implementation of its Development-based OwnHOME program that, through a competitive application round, will link an enhanced version of the OwnHOME loan to targeted single family developments. This enhanced assistance will provide up to $7,500 for principal reduction down payment, closing costs, and prepaid items. This link will enable a builder to advertise the availability of OwnHOME loan assistance during the marketing of the subdivision and expand the pool of buyers eligible to purchase the home by effectively reducing their first mortgage costs. PROGRAM SPECIFIC REQUIREMENTS GUIDELINES FOR RECAPTURE OF HOME FUNDS USED FOR HOME BUYERS As previously discussed, the State proposes to continue operation of a first-time home buyers program utilizing HOME funds. The OwnHOME program will provide assistance to moderate and low income families and individuals who are first-time home buyers, to cover a portion of down payment, closing costs, prepaid expenses associated with their home purchase. DCA will follow the guidelines indicated below both during and after the affordability period associated with the HOME assistance. Insufficient Proceeds from Sale or Transfer: In the event that the OwnHOME borrower has insufficient proceeds from the sale or transfer of the mortgaged property after repaying (or transferring the interest through an assumption) the first lien holder (and any other higher priority liens), 162 FFY2000 Consolidated Plan for the State of Georgia DCA will accept the remaining funds available based on the Settlement Statement and write-off the remaining balance, and will apply only the remaining funds received to the Local HOME Account. DCA will satisfy the security deed and will not pursue any further collection efforts. Assumption of the First Mortgage: DCA will allow an assumption of the OwnHOME loan by an income eligible borrower who is assuming the first mortgage. DCA will charge the borrower a processing fee of $125 to cover the administrative cost of underwriting an assumption. Foreclosure of the First Mortgage: In the event of a foreclosure of the first mortgage, the OwnHOME second mortgage interest will be extinguished. DCA will not pursue any collection efforts, and will not apply any funds to the Local HOME Account. Subordination of the OwnHOME loan: DCA will subordinate the OwnHOME loan to a refinanced first mortgage if the borrower is receiving a lower interest rate or other improved loan terms with no cash out and no increase in the first mortgage loan amount (unless the increase in the first mortgage amount reflects refinancing costs and there is a decrease in the monthly payment). If a borrower refinances to an adjustable rate mortgage, the new adjustable rate mortgage must include a provision such that the maximum annual interest rate on the new mortgage during the first six years does not exceed the interest rate on the old mortgage by a margin of 1%. Further, the term of the new adjustable rate mortgage must be equal to the term of the old mortgage. DCA will review the HUD-1 to verify the cash available to the borrower and the terms of the first mortgage. DCA will charge the borrower a processing fee of $125 to cover the administrative cost of the subordination. DCA will review distress situations that require a borrower to refinance under different circumstances on a case-by-case basis. TENANT-BASED RENTAL ASSISTANCE The State does not propose to provide tenant based rental assistance through any of its HOME funded programs during SFY2001. The State will notify HUD as appropriate if the State opts to provide tenant based rental assistance at some point during the program year. If this occurs, any tenant-based rental assistance program will be implemented in accordance with applicable HUD regulations found at 24 CFR 92.20992.211. OTHER FORMS OF ASSISTANCE The State does not anticipate investing HOME funds in other forms than described in 24 CFR Section 92.205(b) of the HOME Investment Partnership Final Rule regulations FFY2000 Consolidated Plan for the State of Georgia 163 effective October 1, 1996. The State will notify HUD as appropriate if any changes are proposed. AFFIRMATIVE MARKETING General: The State's affirmative marketing goal for the HOME program is to ensure that persons of all racial, ethnic and gender groups have the opportunity to rent or own a HOME assisted unit. The State will carry out this policy through the affirmative marketing procedures established in accordance with the Final HOME Rule. These procedures are intended to further the objectives of Title VI of the Civil Rights Act of 1964, the Fair Housing Act, the Age Discrimination Act of 1975, Section 504 of the Rehabilitation Act of 1973, Section 3 of the Housing and Urban Development Act of 1968, and Executive Orders #11063 (as amended by Executive Order #12259) and #11246. The State's affirmative marketing procedures do not apply to HOME assisted projects containing less than five housing units, families with housing assistance provided by a public housing authority, or families with tenant-based rental assistance provided with HOME funds. Affirmative Marketing Procedures: Informing the Public, Owners and Potential Tenants about the Affirmative Marketing and Fair Housing Laws As indicated below, the State will inform the public, owners, and potential tenants about state and federal fair housing laws and the State's affirmative marketing program. In addition, the State will require the same of State recipients, subrecipients, CHDOs, prime contractors, and owners of HOME assisted housing. 1. The State will incorporate information on fair housing and affirmative marketing into all appropriate HOME program meetings open to the general public or to potential participants. The State will conduct public meetings for potential participants in geographically distributed areas of the State, and will require that all state recipients and subrecipients in the HOME programs conduct a public meeting for potential participants as well. Advertisements for the meetings must be published in the local media, and state that the HOME programs are equal housing opportunity programs. 2. All appropriate printed materials dealing with the HOME programs and distributed to the public will contain the equal housing opportunity logo. The State will require recipients, subrecipients, CHDOs, prime contractors, and owners of HOME assisted housing to include the equal housing opportunity logo in any of its printed materials distributed to the public. 3. The State will provide to all current tenants of any existing building being considered for assistance through the HOME programs a briefing and a 164 FFY2000 Consolidated Plan for the State of Georgia written description of the tenant's rights as guaranteed through the HOME programs as related to federal fair housing laws and the State's affirmative marketing program. 4. The State will develop and maintain a solicitation list of potential participants in the HOME programs, and will require that state recipients and subrecipients develop and maintain a solicitation list of potential participants in the HOME program. Informing Potential Tenants of the Availability of HOME Assisted Housing The State will take actions to attract eligible persons from all racial, ethnic and gender groups in the housing market area to the available HOME assisted housing in said area. 1. The State requires that state recipients, subrecipients, CHDOs, prime contractors, and owners of HOME assisted housing inform and solicit applications from persons in the housing market area who are not likely to apply for housing without special outreach by posting and/or distributing information (flyers and/or brochures) in such places as community organization facilities, places of worship, employment centers, fair housing organizations, or housing counseling agencies. 2. The State recommends that all owners of HOME assisted housing contact the appropriate DCA regional office to advise the State of any anticipated vacancies in HOME assisted units. DCA will use the HUD approved procedure for informing families on the Section 8 waiting list of the availability of the particular unit. Special Outreach Procedures 1. The State requires that, to the greatest extent feasible, state recipients, subrecipients, CHDOs, prime contractors, and owners of HOME assisted housing provide opportunities for training and employment of low-income persons residing within the housing market area of the HOME assisted housing. 2. Furthermore, the State requires that, to the greatest extent feasible, projectrelated contracts for work on HOME assisted housing be awarded to business concerns which are located in or owned in substantial part by persons residing in the housing market area where the HOME assisted housing is located. Compliance 1. The State requires that the state recipients, subrecipients, CHDOs, prime contractors, and owners of HOME assisted housing comply with the State's affirmative marketing plan as a condition of assistance. This requirement is included as a legal covenant in the appropriate performance agreement. FFY2000 Consolidated Plan for the State of Georgia 165 Recordkeeping Procedures 1. The State will maintain records that will describe affirmative marketing activities undertaken and will require state recipients, subrecipients, CHDOs, prime contractors, and owners of HOME assisted housing to maintain records and submit annual reports on their affirmative marketing activities to the State as a condition of receipt of HOME funds. In addition, the State maintains a record of all published notices and newspaper articles concerning the HOME programs. Affirmative Marketing Activity Assessment and Corrective Actions 1. The State will review annually the success of its affirmative marketing activities associated with the HOME program and will take corrective action to strengthen any weaknesses in its affirmative marketing activities. This assessment will also be completed for each state recipient, subrecipient, CHDO, prime contractor, and owner of HOME assisted housing over four units (smaller housing projects will be assessed every two years). Each will be required to take corrective action to strengthen any weakness. Failure to do so may result in the pursuit of remedies by the State. 166 FFY2000 Consolidated Plan for the State of Georgia F. GEORGIA'S PROPOSED DISTRIBUTION METHOD, GEOGRAPHIC ALLOCATION, AND PROGRAM SPECIFIC FEDERAL REQUIREMENTS OF CDBG FUNDS This section describes the proposed method for distributing funds to local governments making application for the State's CDBG Program. DCA is the administrative agent of the state for distribution of federal CDBG funds to "non-entitlement" local units of government. HUD has notified the state of its eligibility to receive $43,583,000 for FFY2000 to address housing and community development needs under the CDBG Program. METHOD OF DISTRIBUTION ELIGIBLE APPLICANTS Eligible applicants are units of general purpose local government, excluding those cities and counties eligible to participate in the urban counties or metropolitan cities "CDBG Entitlement Program" of HUD. GEOGRAPHIC ALLOCATION The State does not intend to impose any geographic restrictions or incentives in the method of distribution. TYPES OF GRANTS During the FFY2000 program year, the Georgia CDBG program is divided into four separate components: (1) The Regular Annual Competition, (2) The Immediate Threat and Danger Grant Program, (3) The Employment Incentive Program (EIP) and (4) The Redevelopment Fund. A) Applications under the Regular Annual Competition must be for either a single activity or a multi-activity grant: 1) Single activity grant applications must be structured to address problems within one of the following three areas: (a) housing, (b) public facilities, or (c) economic development. 2) Multi-activity grant applications must involve two or more activities that address community development needs in a comprehensive manner. This funding component requires an applicant to address problems within more than one of the areas listed above. B) Immediate Threat and Danger (ITAD) applications must address an event or situation that has a particular urgency and uniqueness which adversely affects or impacts a community and its citizens and where other financial resources are not available to meet such needs. Through submittal of this Plan, the State is certifying that this activity is designed to meet other community development needs having a FFY2000 Consolidated Plan for the State of Georgia 167 particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community and other financial resources are not available. C) Employment Incentive Program (EIP) applications must provide for the creation and/or retention of jobs, or job training, principally for persons who are low and moderate income. Typically this includes loans to private for profit entities or the provision of infrastructure improvements. D) The Redevelopment Fund applications should generally be targeted to projects that will leverage private sector investments in blighted downtown commercial and industrial areas. Projects that meet HUD's "slum and blight" national objective and will result in employment opportunities for low and moderate income persons are encouraged. MAXIMUM GRANT AMOUNTS Regular Annual Competition: Single Activity Regular Annual Competition: Multi Activity Immediate Threat and Danger Program Employment Incentive Program The Redevelopment Fund $ 500,000 $ 800,000 $ 50,000 $ 500,000 $ 250,000 Note that the maximum grant amount for the EIP, or the ITAD Program may be increased. See specific program descriptions for details. RESTRICTIONS ON ELIGIBILITY FOR COMPETITION A) Only one single or multi-activity application per general purpose local government, whether individually or jointly submitted, shall be eligible for competition under the Regular Annual Competition. B) Only one single or multi-activity award under the Regular Annual Competition may be received by any general-purpose local government. C) No recipient of a single or multi-activity award under the Regular Annual Competition shall be eligible to compete for or receive another single or multiactivity award from the next fiscal year's Regular Annual Competition allocation. This restriction does not apply to the Immediate Threat and Danger Program, the Employment Incentive Program, any community designated as an Enterprise Community, CDBG Loan Guarantee Program, or the Redevelopment Fund. D) Applications for the Immediate Threat and Danger Program, CDBG Loan Guarantee Program, the Employment Incentive Program, or the Redevelopment Fund may be submitted notwithstanding the submission of an application under the Regular Annual Competition. 168 FFY2000 Consolidated Plan for the State of Georgia E) Recipients of prior CDBG funding must resolve all outstanding audit, monitoring findings and/or other program exceptions which involve a violation of federal, state or local law or regulation prior to award of or submission of any application to DCA. In addition, recipients who fail to substantially meet their proposed accomplishments in their current CDBG project may be penalized by a reduction in the subsequent year's total score for the regular competition. F) Paragraph C shall not apply in the case of two or more counties applying together to carry out a project of regional impact. Such applications, however, which are not actually regional in nature (which could have been submitted by only one county) will be rejected. ELIGIBLE ACTIVITIES The eligible activities under Georgia's CDBG program are those activities identified in the Housing and Community Development Act of 1974, as amended. However, to be eligible for competition and/or award, the State has determined that each activity must be eligible under the Act and not less than 70% of its CDBG cost must benefit low and moderate income persons. (This provision does not apply to the Immediate Threat and Danger Grant Program, CDBG Loan Guarantee Program, or the Employment Incentive Program, or the Redevelopment Fund). REGULAR ANNUAL COMPETITION Rating and Ranking System for the Regular Annual Competition Single and Multi-Activity applications will be rated separately to assign points for feasibility and strategy. Demographic scores will be calculated separately for cities and counties. For purposes of calculating the demographic score, joint or regional applications that include a county will be included in the county group and those including only cities will be included in the city group. Applications will be rated and scored against each of the following factors, using any additional and/or supplemental information, data, analyses, documentation, commitments, assurances, etc. as may be required or requested by DCA for purposes of evaluating, rating, and selecting applicants under this program. The maximum score is 450 points. Demographic Need - absolute number in poverty Demographic Need - percent of poverty persons Demographic Need - per capita income Program Feasibility Program Strategy Leverage of Additional Resources Maximum Total Points Maximum Points 40 40 40 150 150 30 450 FFY2000 Consolidated Plan for the State of Georgia 169 A) Demographic Need - absolute number of people in poverty: Applicants will be compared in terms of the number of persons whose incomes are below the poverty level. Scores will be obtained by dividing each applicant's number of persons in poverty by the greatest number of persons in poverty of any applicant in the group and multiplying by 40. B) Demographic Need - percent of people in poverty: Applicants will be compared in terms of the percentage of population below the poverty level. Scores will be obtained by dividing each applicant's percentage of persons in poverty by the highest percentage of persons in poverty of any applicant in the group and multiplying by 40. C) Demographic Need - per capita income: Applicants will be compared in terms of their per capita income. Scores will be obtained by dividing each applicant's per capita income into the lowest per capita income of any applicant in the group and multiplying by 40. D) Program Feasibility: Applicants will be compared in terms of project feasibility. The following factors are considered: an analysis of such items as reasonableness of cost, compliance with applicable state and federal laws, project timetables, and confirmation of required resources. Points for feasibility will be awarded by a review panel, in accordance with the levels below, based on how well each applicant, compared to others, addresses the feasibility factors. Level One (Poor) 0 Level Two (Less than Fair) 30 Level Three (Fair) 60 Level Four (Good) 90 Level Five (Very Good) 120 Level Six (Excellent) 150 E) Program Strategy: Applicants will be compared in terms of program strategy. The following factors are considered: an analysis of the severity of documented need, alternative solutions to the identified problems, the number of persons benefiting, the impact of the project on identified problems, conformance with the approved comprehensive plan submitted to DCA under the State Planning Act, and the extent of benefit to persons of low and moderate income. In addition, multi-activity applications will also be compared in terms of the projects' support of comprehensive community or neighborhood conservation, stabilization and/or revitalization. 170 FFY2000 Consolidated Plan for the State of Georgia Points will be awarded, in accordance with the levels below, by a review panel based on how well the applicant, compared to others, addresses the strategy factors. Level One (Poor) 0 Level Two (Less than Fair) 30 Level Three (Fair) 60 Level Four (Good) 90 Level Five (Very Good) 120 Level Six (Excellent) 150 F) Leverage of Additional Resources: Leverage includes additional resources committed to and directly related to the project, including cash above the required minimum cash match amount, the purchase of equipment and furnishings with non-CDBG funds, and additional grants and loans from other sources. Only items that would not otherwise have been provided will be counted. A "reasonable" value must be assigned to donated and "in-kind" items. The leverage score will be calculated as follows: first, the total dollar value of leverage for each applicant will be calculated and then divided by the total population of the applicant in order to obtain a per capita leverage figure reflective of each applicant's relative effort. Second, applications will be assigned to one of five groups: a) MultiActivity; b) Housing; c) Economic Development; d) Water and/or Sewer; or e) all other Public Facilities. The applications will then be ranked within these groups, based on per capita leverage amounts, and points assigned based on the ranking. Applications with no leverage will receive no points. Up to 30 points can be assigned for leverage of additional resources. Final Ranking and Grant Selection: The Regular Annual Competition The points received by each applicant on the rating factors will be totaled and the total scores ranked accordingly. Grant awards will be based on this final ranking to the extent funds are available. In case of ties, the applicant with the highest percentage of funds benefiting low and moderate income person will be given priority. Matching Requirements for the Regular Annual Competition All awards under the regular annual competition (except for single activity housing grants) have the following minimum match requirements. 0% for amounts up to $300,000 in CDBG funds 5% of amounts from $300,001 to $500,000, and 10% of amounts over $500,000. The match amount must be cash (not "in-kind") and can be from any public or nonpublic source. FFY2000 Consolidated Plan for the State of Georgia 171 EMPLOYMENT INCENTIVE PROGRAM Special Provisions for the Employment Incentive Program The Employment Incentive Program (EIP) is intended to facilitate and enhance job creation and/or retention, principally for low and moderate income persons, by providing a flexible and expedient funding cycle that is responsive to expanding economic opportunities at the local level. Activities identified in Section 105 of the Housing and Community Development Act of 1974 as amended are eligible. For purposes of the Employment Incentive Program, activities are eligible only to the extent that the funded activity creates tangible employment principally for low and moderate income persons. In addition, proposed activities must be based on firm written commitments from eligible subrecipients. The proposed activity may not be speculative in nature. NOTE: For purposes of the EIP program, the term "subrecipient" should generally be interpreted as "business." However, in some cases where EIP funds are to be passed through a local development authority, the development authority itself would also be a "sub-recipient" subject to the same rules and regulations as the benefiting business. Examples of eligible activities which may be funded include, but are not limited to, the following: 1. Activities carried out by units of general local government or public or private non-profit subrecipients including: a.) acquisition of real property; b) acquisition, construction, reconstruction, rehabilitation, or installation of (except for buildings for the general conduct of government) public facilities, site improvements, and utilities, and c) commercial or industrial buildings, structures and other real property improvements. 2. Provision of direct assistance to private for-profit entities, when the assistance is appropriate to carry out an economic development project. However, such assistance may not be in the form of outright grants, guarantees, or technical assistance. In addition, financial assistance to private for-profit entities must be made contingent upon firm commitments of financial participation from other private sources such as banks or the private for-profit entities themselves. Such assistance must also create or retain permanent jobs principally for low and moderate income persons. 3. Provision of assistance to local development entities and other local non-profit corporations to fund facilities that assist low and moderate income persons to acquire employment, the employment skills, and/or basic educational training to become more effective participants in the local economy. Eligibility for such activities will be limited to "new" activities that have not previously been undertaken by the unit of general local government or local development entity. For each activity funded under the Employment Incentive Program, at least 51% of all jobs to be created or retained as a result of the EIP project must be documented to be 172 FFY2000 Consolidated Plan for the State of Georgia created for and able to be "taken by" or retained by persons defined as low and moderate income by DCA. Prior to project close-out, at least 51% of all jobs created must be documented to have been "taken by" persons defined as low and moderate income. For an activity or project that retains jobs, the unit of local government and proposed subrecipient(s) must document that jobs would actually be lost without the EIP assistance and that at least 51% of the total existing jobs are currently held by low and moderate income persons. For employment skill enhancement and/or basic educational training activities/ services, at least 51% of the recipients of such services must be documented to have been low and moderate income persons at the time such services were provided. Grant amounts under this program will generally not exceed $500,000 per award. The maximum grant amount may be increased if warranted by extraordinary public benefit to be achieved by a particular project. Administrative and closing costs paid with EIP funds shall be limited to 6% of the grant award amount. The 5% administrative cost limitation is applicable whether costs are paid directly to the recipient or financed as a portion of an EIP subrecipient loan. In cases of loan foreclosure, DCA may, on a case by case basis, allow additional administrative and legal expenses to be paid out of loan and/ or foreclosure proceeds. Funds set-aside for the EIP Program Five (5) million dollars or eleven percent (11%) (whichever is greater) from the FFY2000 allocation to the State for the CDBG Program will be set-aside for this program. Funds remaining in the set-aside at the end of the fiscal year may be returned to an "active status" and may be used to fund EIP applications under a subsequent fiscal year or transferred to any of the other funding categories or for State Administration, subject to the limitations of the Housing and Community Development Act. EIP Application Procedures The application procedure for the Employment Incentive Program includes a preapplication and final application phase. Final applications may only be submitted following a written invitation from DCA. The purpose of the pre-application will be to evaluate and rank a proposed project to determine if the proposed project meets the funding threshold as outlined below. Local governments may submit pre-applications for consideration at any time. Pre-Applications and Applications may be submitted individually by one unit of general purpose local government, or jointly, by two (2) or more units of general purpose local government. Joint submissions must contain a copy of the Cooperating FFY2000 Consolidated Plan for the State of Georgia 173 Agreement entered into by the cooperating units of government. The Agreement should designate the unit of local government that will serve as lead applicant. Pre-Applications and Applications for the EIP program must be submitted in conformance with the format and applicable instructions specified by DCA. Rating and Review Procedures for the EIP Program Upon receipt of a Pre-Application under this program, staff will review the preapplication for completeness and for evaluation against the various rating and selection factors. The rating and selection factors shall be those specified below, using any additional and/or supplemental information, data, analyses, documentation, commitments, assurances, etc. as may be required or requested by DCA for purposes of evaluating, rating, and selecting applicants under this program. Pre-applications that contain insufficient information or documentation to be evaluated and rated may be returned to the locality without further review. The staff may conduct site visits and hold discussions with applicants and proposed subrecipients for the purposes of confirming and evaluating information contained in the pre-application or application. Staff may also consult with other appropriate government and private entities in the course of reviewing and evaluating information contained in pre-applications and applications. The scores obtained for the various selection factors will be totaled and pre-applicants with scores of at least 300 points will be invited to submit a final application. EIP pre-applications will be rated and scored against each of the following factors. Review Factor Maximum Points Available Demographic Need 120 points Program Feasibility 110 points Program Impact 110 points Program Strategy 110 points Bonus (for Return of RLF Assets) 25 points Total Available Points 475 points 1) Demographic Need (120 points) a.) Absolute Number of People in Poverty (40 points) All eligible local governments will be compared in terms of the absolute number of people whose incomes are below the poverty level. Individual scores will be obtained by dividing each government's absolute number of persons in poverty by the greatest number of persons in poverty of any eligible local government and multiplying by 40. 174 FFY2000 Consolidated Plan for the State of Georgia b.) Percent of People in Poverty (40 points) All eligible local governments will be compared in terms of the percentage of people whose incomes are below the poverty level. Individual scores will be obtained by dividing each government's percentage of persons in poverty by the highest percentage of persons in poverty of any eligible local government and multiplying by 40. c.) Per Capita Income (40 points) All eligible local governments will be compared in terms of their per capita income. Individual scores will be obtained by dividing each government's per capita income into the lowest per capita income of any eligible local government and multiplying by 40. Demographic scores will be based on the latest available data, consistent as of the same point in time for each factor. Scores will be based on county data. 2) Program Feasibility (110 points) The following factors will be considered: a.) Severity of the locality's and business' need for assistance; b.) Organizational status of the business (is it properly organized to do business within Georgia?); c.) The business' past credit history; d.) The business product's market potential; e.) The business' marketing strategy; f.) The business' historical sales and financial performance; g.) The reasonableness of the business' financial projections; h.) An assessment of the business management team's ability to carry out the project as proposed; i.) The proposed project's compliance with the federal appropriate requirements (For direct loans this requires the complete disclosure of subrecipients' financial situation); j.) Verification of project costs; k.) Verification of project financing sources; l.) Adequacy and reasonableness of the job commitment; m.)Completeness of any needed engineering plans and specifications; n.) Documentation that the project can be carried out in accordance with federal, state, and local laws, regulations, and permitting requirements; and, o.) Verification of control of any required property. FFY2000 Consolidated Plan for the State of Georgia 175 Points for feasibility will be awarded by a staff review panel, in accordance with the levels below, based on how well the applicant addresses the feasibility factors. Level One: Poor 0 Level Two: Below Average 27.5 Level Three: Average 55 Level Four: Good 82.5 Level Five: Excellent 110 3) Program Impact (110 points) The following factors will be considered: a.) Number of jobs created and/or retained; b.) EIP cost per job; c.) Availability of jobs to low and moderate income persons; d.) Quality of jobs and employee benefits; and e.) Project's impact on local unemployment rates. A staff review panel will award points for impact, in accordance with the levels below, based on how well the applicant addresses the impact factors. Level One: Poor 0 Level Two: Below Average 27.5 Level Three: Average 55 Level Four: Good 82.5 Level Five: Excellent 110 4) Program Strategy (110 points) The following factors will be considered: a.) The ratio of private funds to EIP funds (To receive maximum points a minimum ratio of at least 1 to 1 is generally required); b.) Documentation that the public benefits to be achieved is reasonable and to the extent practicable EIP funds will not substitute for other available funds; c.) Adequacy of financing strategy (adequacy of equity injection, collateral, and loan terms); d.) Relationship between the subrecipient's infrastructure needs and the size and capacity of any infrastructure to be provided; e.) Validity of subrecipient's commitment to fulfill hiring and investment commitments (has subrecipient agreed to provide a letter of credit or other surety to "bond" its performance); f.) Project's conformance to local planning and development strategy and compliance with the Georgia Planning Act; g.) Project's conformance to federal, state, and local laws and regulations; and 176 FFY2000 Consolidated Plan for the State of Georgia h.) Relationship to overall objectives of the EIP and CDBG Program, including the extent of benefit to persons of low and moderate income. A staff review panel will award points, in accordance with the levels below, based on how well the applicant addresses the strategy factors. Level One: Poor 0 Level Two: Below Average 27.5 Level Three: Average 55 Level Four: Good 82.5 Level Five: Excellent 110 5) Bonus for Return of RLF Assets (25 points) Localities which have a local Revolving Loan fund (RLF) or loan receivable capitalized with EIP or CDBG proceeds may, at their discretion, return the RLF assets to the State in exchange for greater consideration and access to future EIP financing for eligible projects. The consideration will consist of an extra 25 points for use in any one EIP funding decision. In order to receive the points, a locality must return all RLF assets to the state to remove itself from the administrative requirements of the RLF program. This will generally require that a locality "sell" its loan receivable and return all cash on hand to DCA. For projects that would otherwise not score sufficient points to be funded, bonus points may be awarded at the discretion of the EIP application review panel. Any assets returned to the state will be added to the state's existing CDBG allocation, or used to capitalize a statewide revolving loan fund and used to fund additional economic development projects. 6) Invitation to Submit a Final EIP Application The points received by a pre-applicant on the rating factors will be totaled. In order to receive an invitation to submit a final application, a pre-application must receive at least 300 points. In cases where fundable pre-applications exceed available funds, the preapplicant with the highest number of jobs benefiting low and moderate income persons will be given priority. 7) Final EIP Application Funding Determination a.) Final applications are invited only for those projects that meet the preapplication threshold requirements; b.) The locality submitting the EIP final application must hold a public hearing in accordance with the requirements of Georgia's CDBG Program Regulations. c.) Final applications for the EIP program must be submitted in conformance with the format and applicable instructions specified by DCA; FFY2000 Consolidated Plan for the State of Georgia 177 d.) The final application review will ensure that all appropriate funding criteria have been considered, and that the project conforms to the objectives of Title I of the Housing and Community Development Act of 1974, as amended. e.) Grant awards will be made to those final applications that receive a funding recommendation until all available funds are exhausted. Special Provisions for EIP Capitalized Local Revolving Loan Funds DCA may permit localities which have or will receive revenue (principal, interest or other payments) from EIP or other CDBG loans or leases to retain that revenue so long as it is used for the same activity that generated the revenue and also used in accordance with the requirements of this regulation and any other applicable federal, state, or local law, regulation, contract, guidance manual or memoranda. For localities that will retain program revenue, DCA will require that such revenue be deposited into a separate revolving loan fund (RLF) account that bears the local government's name and used only to carry out specific Title I eligible activities. The RLF must be created by a local resolution and implemented by local policies and procedures approved by DCA. Localities allowed to retain program revenue must ensure that the RLF is adequately managed. DCA will categorize the RLF as being adequately managed so long as the following responsibilities are being met: a.) maintenance of an accounting and financial management system that complies with generally accepted accounting principals and DCA's guidelines for RLF financial management systems; b.) compliance with DCA's reporting requirements for local RLFs; c.) operation of the local RLF in accordance with DCA approved policies, procedures, and federal, state, and local law, regulation, contracts, guidance manuals and memoranda; d.) maintenance of a loan review and selection committee which has the capacity to review and analyze loan requests and determine whether such requests represent prudent investments as defined by generally accepted underwriting criteria; e.) maintenance of a loan packaging and structuring capacity that meets appropriate underwriting standards for security and documentation; f.) maintenance of a loan servicing and monitoring capacity which ensures that loan payments are collected, that loan covenants are enforced, and that loan security is maintained; g.) maintenance of a loan portfolio which represents investments in businesses engaged in sound business purposes that have demonstrated tangible employment of low and moderate income persons as defined by DCA; and h.) attendance at DCA sponsored training workshops that will be held periodically for purposes of training local RLF administrators. 178 FFY2000 Consolidated Plan for the State of Georgia To assist with the financing of a local RLF program's administrative cost, DCA will allow (on an annual basis) the greatest of 3% or $1,000 of interest earned by the RLF to be used for administration and audit costs. In certain foreclosure and/or hardship situations, DCA may allow additional amounts to be expended for administrative, audit, or legal costs. Localities allowed to retain program revenue must also ensure that the RLF is utilized in a timely and efficient manner. DCA will categorize a RLF as being adequately utilized so long as the following criteria are met: a.) The RLF is used to continue the same activity which generated the program revenue; and b.) The RLF's cash balance shall not exceed $125,000 or 30% of total RLF assets, whichever is greater. Should a locality be unable to utilize the RLF in accordance with items a and b above, the locality may request DCA to waive the provisions. DCA may grant waivers when it is determined that sufficient future activity is probable or the locality is taking steps to ensure future activity. However, in general, a locality may not retain unused assets any longer than the full term of the original EIP loan, or five (5) years, whichever is shorter. THE GEORGIA REDEVELOPMENT FUND General The Redevelopment Fund provides flexible financial assistance to local governments to assist them in implementing challenging economic and community development projects that cannot be undertaken with existing public sector grant and loan programs. The Redevelopment Fund will reward locally initiated public/private partnerships by providing financing to leverage private sector investments in commercial, downtown and industrial redevelopment and revitalization projects that need Redevelopment Fund investment to proceed. While all CDBG funded projects that create jobs must meet applicable low and moderate-income criteria, the Redevelopment Fund will allow projects to be approved using an "eliminating slums or blight" national objective. The "slum or blight" emphasis will allow smaller scale projects (in downtowns, blighted industrial areas, etc.) to be competitive for Redevelopment Fund financing. The Redevelopment Fund may support and extend DCA's existing CDBG programs in order to allow redevelopment projects with "challenging economics" to be made competitive for DCA, private and other public funding investments. Applicable Law and Regulation Title I of the Housing and Community Development Act of 1974, as amended; the federal implementing regulations applicable to the State Community Development FFY2000 Consolidated Plan for the State of Georgia 179 Block Grant Program (24 CFR Part 570); and DCA's Program Regulations and guidelines for the Georgia State Community Development Block Grant (CDBG) Program and the Redevelopment Fund, as amended. Eligible Activities Eligible activities under the Redevelopment Fund are those identified in Title I of the Housing and Community Development Act of 1974, as amended; and all eligible activities under DCA's EIP, CDBG, and CDBG Loan Guarantee (Section 108) program. Activities are eligible to the extent that the funded activity meets the slum or blight national objective. When justified by benefits or need, the Commissioner of DCA may approve projects on a case by case basis based on any CDBG program national objective. Proposed activities must be based on firm written commitments from local governments and eligible subrecipients. NOTE: For the Redevelopment Fund, the term "sub-recipient" may generally be interpreted as a business or corporation. However, in cases where Redevelopment Funds are to be loaned to or passed through a local development authority, the development authority itself would also be a "sub-recipient" subject to the same rules and regulations as a benefiting business or corporation. Funding $500,000 or one percent (1%) (whichever is greater) from each federal fiscal year's allocation to the Department of Community Affairs for the Community Development Block Grant Program will be set-aside for this program. Funds remaining in the set-aside at the end of the fiscal year may be returned to an "active status" and may be used to fund Redevelopment Fund applications under a subsequent fiscal year or transferred to any of the other funding categories or for state administration, subject to the limitations of the Housing and Community Development Act. Certain Redevelopment Fund activities may generate program income that may be returned to the Department in accordance with the provisions contained in 24 CFR Part 570.489(e) and (f). Any Redevelopment Fund program income returned to the Department will be held in a separate state revolving loan fund account that will be established to support Redevelopment Fund activities. The state revolving loan fund's administrative and eligibility requirements are identical in all respects to those for the Redevelopment Fund set-aside; however, any program income in the revolving fund will be disbursed before and prior to any funds from the Redevelopment set-aside. Grant Amount The grant amount is up to $250,000. In cases of projects with exceptional public benefits or need, the Commissioner of DCA may raise the allowable grant amount. 180 FFY2000 Consolidated Plan for the State of Georgia Application Procedures Local governments may submit applications for consideration at any time. Applications may be submitted individually by one unit of general-purpose local government, or jointly, by two (2) or more units of general-purpose local government. Joint applications must contain a copy of the Cooperating Agreement entered into by the cooperating units of government. The Agreement should designate the unit of local government that will serve as lead applicant. Applications for the Redevelopment Fund must be submitted in conformance with the format and applicable instructions specified by DCA. Rating and Review Procedure Applications will rated and points awarded based on the following point system: FACTOR 1. Demographic Need 2. Project Feasibility 3. Project Strategy and Innovation 4. Leverage of Additional Resources TOTAL MAXIMUM POINTS MAXIMUM POINTS 120 210 240 30 600 In order to be funded, an application must achieve a minimum score of 475. Rating and Review Criteria Redevelopment Fund applications will be rated and scored against each of the following factors: Factor 1: Demographic Need Demographic Need points will be calculated by DCA based on three factors: 1) Absolute number of people in poverty: Applicants will be compared in terms of the number of persons whose incomes are below the poverty level. Scores will be obtained by dividing each applicant's number of persons in poverty by the greatest number of persons in poverty of any applicant and multiplying by 40. 2) Percent of people in poverty: Applicants will be compared in terms of the percentage of population below the poverty level. Scores will be obtained by dividing each applicant's percentage of persons in poverty by the highest percentage of persons in poverty of any applicant and multiplying by 40. 3) Per capita income: Applicants will be compared in terms of their per capita income. Scores will be obtained by dividing each applicant's per capita FFY2000 Consolidated Plan for the State of Georgia 181 income into the lowest per capita income of any applicant and multiplying by 40. Submission of data with respect to "Demographic Need" is not required. The number and percentage of persons in poverty will be based on the most recent Census data that is consistent as of the same point of time for all applicants. Per capita income will be based on the most recent available data that is consistent as of the same point of time for all applicants. For purposes of comparing data, applicants shall be divided into two groups: Cities and Counties. Joint applicants comprised of all cities shall be assigned to the city group and joint applicants including one or more counties shall be assigned to the county group. Factor 2: Feasibility Feasibility points will be based on an analysis of how each application addresses the following factors: eligibility of proposed activity; reasonableness of cost; compliance with applicable state and federal laws; project timetables; confirmation of all required resources; completeness of proposed plans and specifications; reasonableness of any sub-recipient's proposed business plan(s) and financial projections; reasonableness of any site clean-up proposal and plan; and conformance with applicable underwriting and review requirements contained in 24 CFR Part 570. Points for feasibility will be awarded by a DCA staff review panel as follows: Level One (Poor) Level Two (Fair) Level Three (Good) Level Four (Very Good) Level Five (Excellent) -052.5 105.0 157.5 210.0 Factor 3: Strategy Strategy points will be based on the following factors: an analysis of the severity of need; documentation that a project's public benefits will exceed project costs; documentation that the proposed strategy meets the eligibility criteria and the national objectives of the CDBG program; documentation that the project complies with all local ordinances, state law and state regulation. Points will be awarded by a DCA staff review panel as follows: Level One (Poor) Level Two (Fair) Level Three (Good) Level Four (Very Good) Level Five (Excellent) -060.0 120.0 180.0 240.0 182 FFY2000 Consolidated Plan for the State of Georgia Factor 4: Leverage Leverage points will be awarded based on a firm commitment of additional resources directly related to the project, including capital costs and new funds for operation of any proposed program(s). The "leverage ratio" of other private or public funds will be the criterion considered. A minimum leverage ratio of 1 to 1 must be documented in order to receive points under this criterion. A "reasonable" value must be assigned to donated and "in-kind" items. The leverage score will be calculated based on the total value of leverage for each applicant. Applications with no leverage will receive no points. Points will be awarded by a DCA staff review panel as follows: Level One (Poor) -0- Level Two (Fair) 7.5 Level Three (Good) 15.0 Level Four (Very Good) 22.5 Level Five (Excellent) 30.0 THE IMMEDIATE THREAT AND DANGER PROGRAM The Immediate Threat and Danger Program is intended to respond to events or situations which have a particular urgency and uniqueness which adversely affect or impact the health or welfare of the community and its citizens and where other financial resources are not available to meet such need. To be considered, the event or situation must have a sense of urgency and be of recent origin or have recently become urgent. Recent origin is defined as a condition that has developed or become critical generally within 18 months of application. Ample description of the cause of the threat and probable ramifications must be provided. Grant amounts under this program generally cannot exceed $50,000. Generally, a grant awarded under this program cannot be more than 50% of the project cost. The applicant (local government) must provide at least 10% of the project cost. This requirement may be waived in the case of a housing related Immediate Threat and Danger situation. In case of a "major disaster," the Commissioner will determine the extent of DCA involvement. The Commissioner may waive the maximum grant amount and other requirements in case of a "major disaster." In addition, DCA is reserving an additional $1,000,000 of FFY2000 CDBG funds under the Immediate Threat and Danger set-aside to aid in the recovery from the severe weather events of February 14, 2000. Affected local governments in the counties of Mitchell, Lee, Grady and Tift are eligible to apply to DCA for funds to assist in the meeting of housing and community needs resulting from the event. Unobligated funds under this special set-aside will be transferred to the regular competition for award. FFY2000 Consolidated Plan for the State of Georgia 183 Immediate Threat and Danger Application and Review Procedures Applications can be submitted at any time and funds will be awarded to eligible applicants who meet the threshold described above, as long as funds remain in the setaside amount. Applications must include a certification that other financial resources are not available to meet the identified need, the situation poses a serious and immediate threat, and identify the other sources of project funding. Upon receipt of a request for assistance, DCA staff will review the application for completeness and degree of urgency. Staff may visit the locality to inspect the problem cited by the applicant and may consult with other appropriate state, federal or local agencies to determine the extent of the threat prior to funding decisions. After staff recommendations, the Commissioner, using the same criteria and based on staff recommendations, will approve or deny the request and transmit the decision to the local government. CDBG PROGRAM INCOME POLICY Locally generated program income is generally retained at the local level and must be utilized to continue the same activity from which they were derived, in accordance with the Housing and Community Development Act, as amended and HUD regulations. The section above describing the Special Provisions for the Employment Incentive Program discusses situations in which local RLF assets created by the EIP Program may be returned to the state. Any assets so returned will be added to the state's existing CDBG allocation for the regular competition, used for CDBG Loan Guarantee Program, used for the Redevelopment Fund, or used to capitalize a statewide RLF used to fund additional economic and community development projects. HUD REALLOCATED AND STATE RECAPTURED FUNDS HUD reallocated funds are those funds that HUD has recaptured from direct HUD funded grantees and reallocated to the State. State recaptured funds are funds the State receives back from a State CDBG Recipient because of a CDBG deobligation or termination. Any such funds received by the State will be distributed by the State in the same manner as regular CDBG funds. At the discretion of the Commissioner they may be used to fund additional regular competition projects, for any of the set-aside programs, for the CDBG Loan Guarantee Program, or for State Administration, subject to the limitations set of the Housing and Community Development Act, as amended and this Plan. 184 FFY2000 Consolidated Plan for the State of Georgia REALLOCATION OF REMAINING FUNDS In the event 2000 Program Year Funds set-aside for the Regular Competition, the Redevelopment Fund, the Employment Incentive Program (EIP), or the Immediate Threat and Danger Program are not awarded by the end of the fiscal year, they may be utilized for funding additional regular competition grants, Redevelopment Fund, EIP grants, the Immediate Threat and Danger grants, or for State Administration, subject to the limitations of the Housing and Community Development Act, as amended. PROPOSED ALLOCATION OF CDBG FUNDS: 2000 PROGRAM YEAR The table below presents the proposed allocation of FFY2000 CDBG funds. The table is based on the latest available information from HUD. In the event funds received are different, or if additional funds are received after the initial allocation, the State will first adjust the amount set aside for state administration (2% of allocation less $100,000) and the Employment Incentive Program (the greater of $5,000,000 or 11% of the allocation) and the remainder of the difference will be deducted from or added to the amount available for the Regular Competition. The set-aside amounts for the Immediate Threat and Danger Grant Program and for Technical Assistance will remain the same. In addition, should funds from the $1,000,000 set-aside under the Immediate Threat and Danger Program for recovery from the severe weather disaster not be obligated by the time awards under the regular annual competition, unobligated severe weather disaster set-aside funds will be transferred to regular competition. FEDERAL FISCAL YEAR 2000 ANTICIPATED FUNDING and ALLOCATION OF CDBG FUNDS Award From HUD: Less Set-Aside For: Remainder: State Administration Immediate Threat and Danger Program Set-aside for Severe Weather Recovery The Redevelopment Fund Employment Incentive Program Technical Assistance Available for Regular Competition $43,583,000 $771,660 $500,000 $1,000,000 $500,000 $5,000,000 $150,000 $35,661,340 CDBG LOAN GUARANTEE PROGRAM (SECTION 108 PROGRAM) The CDBG Loan Guarantee Program (Section 108 Program) is an economic and community development-financing tool authorized under Section 108 of Title I of the Housing and Community Development Act of 1974, as amended. The program is a method of assisting non-entitlement local governments with certain unique and largescale economic development projects that cannot proceed without the loan guarantee. In order to be eligible a project must meet all applicable CDBG requirements and result in significant employment and/or benefit for low and moderate income persons. FFY2000 Consolidated Plan for the State of Georgia 185 Projects that are eligible for financing under existing federal, state, regional or local programs will generally not be considered for guarantee assistance unless the programs would fail to fully meet a project's need. Unlike the traditional CDBG or EIP Program, the Section 108 Program does not operate through assistance from the Department of Community Affairs (DCA). Rather, funds are raised through DCA's "Pledge of Grants" to the U.S. Department of Housing and Urban Development (HUD) in order to obtain a federal guarantee of notes issued by the local government. The federally guaranteed notes are sold into private markets through public offerings conducted by HUD. By approving the project, a State pledges its future CDBG funds as the ultimate repayment source should a Section 108 loan default. The State's participation in the Section 108 program does not involve a pledge of Georgia's full faith and credit nor does it commit any funding to the local government. HUD makes the ultimate approval or denial of the federal guarantee. Since CDBG funds are an essential and critical resource for Georgia's non-entitlement local governments, DCA will use conservative rating, selection and underwriting criteria in evaluating requests for the State's concurrence and Pledge of Grants. Only those projects that DCA determines can generate sufficient revenue from project resources to debt service all obligations will be competitive under the State's Section 108 rating and selection system. Maximum Loan Guarantee Amount: $5,000,000 (In the interest of limiting exposure and promoting a diversified portfolio, DCA reserves the right to limit the amounts "pledged" to any one unit of local government or business interest). Total Funds Available DCA may set-aside a multi-year, cumulative total of up to twenty percent (20%) of its current and future CDBG allocations plus any CDBG program income for Pledge of Grants that will be used as security for notes and other obligations issued by units of non-entitlement local government pursuant to Section 108 of the Housing and Community Development Act of 1974, as amended. For certain projects that would provide extraordinary public benefit, job creation, and private investment, the DCA Board of Directors may approve allocation and loan amounts that exceed the twenty percent (20%) set-aside and/or maximum loan guarantee amounts. However, in no event may the amounts pledged exceed the limits contained in CFR Part 570.705(a) or up to five (5) times the amount of its last CDBG grant less the amounts of any unpaid balances previously guaranteed. These Pledge of Grants do not immediately reduce the State's non-entitlement CDBG allocations, but rather create an obligation on the part of the State to use its CDBG funds to make payments on behalf of local governments that default on their loan payments to note holders. For any notes backed by the State's Pledges, DCA will require 186 FFY2000 Consolidated Plan for the State of Georgia appropriate covenants that transfer an appropriate share of the risk to the local government and sub-recipient business. Soft Costs and Fees Local governments interested in obtaining 108 financing must cover their own application preparation and administration costs in order to be competitive. Certain underwriting and issuance costs required by HUD in order to participate in the program are allowable and will not affect an application's competitiveness; however, all "soft costs" not necessary to cover HUD required underwriting and issuance costs are not eligible for inclusion under Section 108 financing and must be paid from nonSection 108 sources. Limited technical assistance will be available from DCA on the preparation of a pre-application and application. Eligible Activities Eligible activities under the Section 108 program are those identified in 24 CFR Part 570.703 which include (but are not limited to): (a) Acquisition of improved or unimproved real property in fee or by long-term lease, including acquisition for economic development purposes; (b) Rehabilitation of real property owned or acquired by the public entity or its designated public agency; (c) Payment of interest on obligations guaranteed under the 108 program; (d) Clearance, demolition and removal, including movement of structures to other sites, of buildings and improvements on real property acquired or rehabilitated pursuant to paragraphs (a) and (b) of this section; (e) Site preparation, including construction, reconstruction, or installation of public and other site improvements, utilities, or facilities (other than buildings), which is related to the redevelopment or use of the real property acquired or rehabilitated pursuant to activities a and b of this section, or for an economic development purpose; (f) Payment of issuance, underwriting, servicing, trust administration and other costs associated with private sector financing of debt obligations under the 108 program; (g) The acquisition, construction, reconstruction, rehabilitation or installation of commercial or industrial buildings, structures, and other real property equipment and improvements, including railroad spurs or similar extensions. Such activities may be carried out by the recipient or public or private nonprofit sub-recipients; (h) The provision of assistance to a private for-profit business, including, but not limited to, grants, loans, loan guarantees, interest supplements, technical assistance, and other forms of support, for any activity where the assistance is appropriate to carry out an economic development project, excluding those described as ineligible in CFR Part 570.207(a). In selecting businesses to assist under this authority, the recipient shall minimize, to the extent practicable, displacement of existing businesses and jobs in neighborhoods. (i) A debt service reserve to be used in accordance with requirements specified in the contract entered into pursuant to CFR Part 570.705(b)(1); and (j) Acquisition, construction, reconstruction, rehabilitation, or installation of public facilities (except for buildings for the general conduct of government), public streets, sidewalks, and other site improvements and public utilities. FFY2000 Consolidated Plan for the State of Georgia 187 For each activity funded under the 108 Program, at least seventy percent (70%) of all proposed beneficiaries and/or jobs to be created or retained as a result of the 108 project must be documented to be created for and able to be "taken by" or retained by persons defined as low and moderate income by DCA. Before project closeout, at least 70% of all jobs created must be documented to have been "taken by" persons defined as low and moderate income. For certain projects that would provide extraordinary public benefit, job creation, and private investment, the Department may approve a slightly reduced low and moderate income benefit threshold. However, in no event may a specific project's low and moderate income benefit level fall below fifty-one (51%) or a level that the Department determines could cause the State to fall below the mandated program-wide low and moderate income benefit levels contained at CFR Part 570.484 Application Procedures Local governments interested in applying to HUD for a loan guarantee must first apply to DCA in order to obtain the State's concurrence and Pledge of Grants. The application procedure for the Section 108 Program includes a pre-application and final application phase. Final applications may only be submitted following a written invitation from DCA. The purpose of the pre-application will be to underwrite, evaluate and score a proposed project to determine if the proposed project meets the requirements for the State's concurrence and Pledge of Grants. The purpose of the final application will be for DCA to approve the final form of the local government's application to HUD and negotiate any local certifications, credit enhancements and other understandings required as a condition of the State's Pledge of Grants approval. Local governments may submit pre-applications for consideration at any time. Preapplications and Applications may be submitted individually by one unit of generalpurpose local government, or jointly, by two (2) or more units of general-purpose local government. Joint submissions must contain a copy of the Cooperating Agreement entered into by the cooperating units of government. The Agreement should designate the unit of local government that will serve as lead applicant. Pre-applications and applications for the 108 program must be submitted in conformance with the format and applicable instructions specified by DCA Section 108 pre-application and application manuals. Rating and Selection Process a) Upon receipt of a pre-application under this program, staff will review the pre-application for completeness and for evaluation against the various rating and selection factors. b) For purposes of this program, the rating and selection factors shall be those specified in this section and any additional and/or supplemental 188 FFY2000 Consolidated Plan for the State of Georgia information, data, analyses, documentation, commitments, assurances, etc. as may be required or requested by DCA for purposes of evaluating, rating, and selecting applicants under this program. Applications that contain insufficient information or documentation to be evaluated may be returned to the locality without further review. c) The staff may conduct site visits and hold discussions with applicants and proposed sub-recipients for the purposes of confirming and evaluating information contained in the pre-application or application. The staff may consult with other appropriate government and private entities in the course of reviewing and evaluating information contained in preapplications and applications. d) The scores obtained for the various selection factors will be totaled and only those applicants with scores of at least 325 points will be considered for a Pledge of Grants. Selection System for Section 108 Applications Section 108 Applications will be rated and scored against each of the following factors: Review Factors Maximum Points Available Demographic Need 90 points Program Feasibility 120 points Program Impact 120 points Program Strategy 120 points Bonus (for Credit Enhancement) 25 points Total Available Points 475 points a) Demographic Need ( 90 points) 1) Absolute Number of People in Poverty (30 points) All eligible local governments will be compared in terms of the absolute number of people whose incomes are below the poverty level. Individual scores will be obtained by dividing each government's absolute number of persons in poverty by the greatest number of persons in poverty of any eligible local government and multiplying by 30. 2) Percent of People in Poverty (30 points) All eligible local governments will be compared in terms of the percentage of people whose incomes are below the poverty level. Individual scores will be obtained by dividing each government's percentage of persons in poverty by the highest percentage of persons in poverty of any eligible local government and multiplying by 30. FFY2000 Consolidated Plan for the State of Georgia 189 3) Per Capita Income (30 points) All eligible local governments will be compared in terms of their per capita income. Individual scores will be obtained by dividing each government's per capita income into the lowest per capita income of any eligible local government and multiplying by 30. Demographic scores will be based on the latest available data, consistent as of the same point in time for each factor. Scores will be based on county data. b) Program Feasibility (120 points) The following factors will be considered: 1) Local government's financial condition? 2) Local social-economic conditions and need? 3) Organizational status of development agency or sub-recipient business? i) Reputable history for business and all related entities? ii) Credit History? iii) Litigation? iv) Government Findings / Sanctions?, etc. 4) Is the proposed business or development concept/product/service proven or does the proposal represent an untried business model? 5) Does the proposed Section 108 investment/purpose contain the basis for its repayment? 6) Is the development agency's or sub-recipient business' historical performance and standing secure in the following areas: capital management, debt capacity, management character & experience, collateral value, economic and market conditions? 7) Is the development agency's or sub-recipient business' proposed development or business plan reasonable and does it use reasonable assumptions in the following areas: capital investment; debt service capacity, management ability, collateral value, industry analysis, response to future economic and market conditions? 8) (realestate projects) Does the proposed development team have a successful record of accomplishment? Developer? Contractor? Architect? Leasing Agent? Property Manager? Syndicator? Construction Manager? Interim and Permanent Lenders? 9) Does the proposed project comply with the CDBG regulations and guidelines for "appropriateness", underwriting, and public benefit? 10) Are all project costs verified through either original source documents, architectural and engineering reports, or a MAI or other certified appraisal acceptable to DCA? 190 FFY2000 Consolidated Plan for the State of Georgia 11) Is the balance of all financing sources verified and committed? 12) Is all required real-estate available, have clear title, and under proper option? 13) Is the development agency's or sub-recipient's investment and job commitment letter in the proper format? 14) Are all needed architectural plans, engineering reports, plans, and specifications completed and approved by appropriate authorities? 15) Can the project be carried out in accordance with all applicable federal, state, and local law, regulation and permitting requirements? Feasibility points will be awarded by a DCA staff review panel, in accordance with the levels below, based on how well the applicant addresses the impact factors: Level One (poor) Level Two (below average) Level Three (average) Level Four (good) Level Five (excellent) 00.0 30.0 60.0 90.0 120.0 c) Program Impact (120 points) The following factors will be considered: 1) Number of jobs created and/or retained; 2) Section 108 cost per job; 3) Availability of jobs to low/mod income persons; 4) Quality of jobs and employee benefits (health, retirement, leave, etc.); and 5) Project's impact on local unemployment rates. 6) (if applicable) Project's impact on blighting conditions that threaten public health and safety or impede economic development. Points for impact will be awarded by a staff review panel, in accordance with the levels below, based on how well the applicant addresses the impact factors: Level One (poor) Level Two (below average) Level Three (average) Level Four (good) Level Five (excellent) 00.0 30.0 60.0 90.0 120.0 FFY2000 Consolidated Plan for the State of Georgia 191 d) Program Strategy (120 points) The following factors will be considered: 1) Documentation that the proposed project is not eligible under existing federal, state, regional or local economic development financing programs or else the programs would fail to fully meet the project's need? 2) Documentation that the proposed project represents a unique, largescale project that will further the objectives of Title I of the Housing and Community Development Act. 3) Documentation that the local government will assign certain responsibilities under 108 to the State to insure efficient credit monitoring, sub-recipient loan servicing and 108 loan payments. 4) The ratio of private equity and investment to Section 108 funds? 5) Documentation that the sub-recipient business or development agency will generate sufficient revenue and that sufficient credit enhancements are in place to reasonably insure that the Section 108 loan can be amortized without any risk to future CDBG allocations? 6) Documentation that the public benefits to be achieved are reasonable and to the extent practicable Section 108 funds will not substitute for other available funds? 7) Adequacy of financing strategy? Repayment ability? Rate? Term (maximum consideration for terms less than 10 years)? Type (maximum consideration for permanent financing. Users that provide their own construction financing will be most competitive). Collateral and Security? 8) Validity of sub-recipient's commitment to fulfill hiring and investment commitments? 9) Project's conformance to: i) local and regional plans; ii) service delivery strategy and iii) the Georgia Planning Act; 10) Project's conformance to federal, state, and local laws and regulations; and 11) Relationship to overall objectives of the Section 108 and CDBG Program, including the extent of benefit to persons of low and moderate income. 192 FFY2000 Consolidated Plan for the State of Georgia Strategy points will be awarded by a staff review panel, in accordance with the levels below, based on how well the applicant addresses the strategy factors: Level One (poor) Level Two (below average) Level Three (average) Level Four (good) Level Five (excellent) 00.0 30.0 60.0 90.0 120.0 e) Bonus for Pledge of Assets and/or Credit Enhancement (25 points) Localities which have a local Revolving Loan fund (RLF) capitalized with EIP or CDBG proceeds, federal Economic Development Initiative (EDI) or Brownfield (BEDI) grants or other assets may, at their discretion, pledge those assets as a "loan loss reserve" or other security or credit enhancement in order to boost the competitiveness of their 108 application. Likewise, borrowers may also receive bonus points for agreeing to provide other credit enhancements such as stand-by letters of credit, guarantees or other recourse instruments. The consideration will consist of a maximum of an extra 25 points for use in the State's Section 108 "Pledge of Grants" decision. Invitation to Submit a Final Application The points received by a pre-applicant on the rating factors will be totaled. In order to receive an invitation to submit a final application, a pre-application must receive at least 325 points. In cases where fundable pre-applications exceed available funds, the preapplicant with the highest number of jobs benefiting low and moderate income persons will be given priority. Final Application Funding Determination a) Final applications are invited only for those projects that meet the preapplication threshold requirements; b) The locality submitting the Section 108 final application must hold public hearing(s) in accordance with the requirements of HUD and Georgia's CDBG program; c) Final applications for the Section 108 program must be submitted in conformance with CFR Part 570.704 and the format and applicable instructions specified by DCA and HUD; d) The final application review will ensure that all appropriate funding criteria have been considered, and the overall benefits to be achieved warrant the State's concurrence, acceptance of the responsibilities outlined in CFR Part 570.710 and "Pledge of Grants"; e) Upon approval by DCA, the Final Application will be placed in its final form by the applicant local government and submitted to HUD for their review with assistance from DCA. It should be noted, that DCA reserves the right to ask local FFY2000 Consolidated Plan for the State of Georgia 193 governments to submit their applications without the State's Pledge of Grants in cases where the final security requirements or other issues are unknown. In such cases, the State's Pledge of Grants would be forthcoming to HUD upon the successful negotiation of a security arrangement and repayment schedule acceptable to the State. CDBG Loan Guarantee Performance Thresholds Recipients of prior CDBG funding with outstanding audit, monitoring findings and/or other program exceptions which involve a violation of federal, state or local law or regulation and/or have failed to substantially meet their proposed accomplishments in their current CDBG or EIP projects are ineligible for 108 consideration. Local governments and businesses that default on a loan payment under the 108 program shall be sanctioned and immediately become ineligible to compete for or receive any DCA grant or loan until the State is "made whole" in regards to its CDBG loss. In addition, applicants must be in compliance with their reporting under the Georgia Planning Act, the Service Delivery Strategy Law (H.B. 489), the Georgia Solid Waste Management Act, the Local Governments Audit Act and the DCA Local Government Finance Report requirements. 194 FFY2000 Consolidated Plan for the State of Georgia G. GEORGIA'S PROPOSED DISTRIBUTION METHOD AND GEOGRAPHIC ALLOCATION OF ESG FUNDS PROPOSED DISTRIBUTION METHOD PROGRAM STRUCTURE HUD has notified the State of Georgia of its eligibility to receive $1,826,000 in FFY2000 Emergency Shelter Grant (ESG) program funds. The Housing Trust Fund for the Homeless will provide the State's 50% non-federal funding match required by the ESG program regulations. The Georgia Department of Community Affairs is the recipient of the State's ESG allocation. The purpose of the ESG program is to provide shelter and essential services to homeless persons throughout Georgia by providing direct subsidies of federal and State funds to nonprofit organizations and local government entities operating homeless housing facilities and/or providing services to this special needs population. Any private, nonprofit organization or local government entity may apply for ESG funding assistance. If the applicant's community is covered by a local Consolidated Plan approved by HUD, the application must contain a Certificate of Consistency with the community's current plan. In addition to showing consistency with the local plan, this certificate must indicate that the applicant is a participant in one or more local homeless provider groups and is active in the local continuum of care planning process. Grant assistance is awarded on an annual basis. Applicants are eligible to use federal ESG or state matching funds for the following four activities: Operation of one or more emergency shelter or transitional facility reserved exclusively for homeless persons; Provision of essential services to the homeless, including homelessness prevention; and, Acquisition, rehabilitation and/or development of facilities dedicated to homeless housing and/or services. Technical assistance that will encompass organizational development, sharing of "Best Practices" with other organizations, and activities--including professional planning and engineering. All federally funded activities must be conducted in full compliance with HUD program regulations as published at 24 CFR Part 576. General funding limits are as follows: Operations $60,000 per facility Transitional Housing Operations - $30,000 per facility Essential Services/Homeless Prevention - $30,000 per activity FFY2000 Consolidated Plan for the State of Georgia 195 Homeless Prevention- $15,000 per program Technical Assistance-$10,000 per organization Development $100,000 per organization. Note* No single organization may receive more than $250,000 in total funding. These limits may be waived for organizations with state-wide, or regional facilities. Recognizing that a single annual allocation process may limit the ability of the State to adequately respond to homeless assistance needs, $200,000 of the State funds authorized will be reserved for applications submitted after the NOFA application deadline which are determined to meet urgent homeless needs. Such needs may include funding necessary and appropriate to allow an essential project to proceed where all other funds are insufficient and the project will likely fail without the additional assistance, or funding necessary to meet a critical, unmet need within an identified service area. Operations and service funding decisions and funding amounts will be based upon the following factors: Extent to which the proposal meets priorities (high/medium/low) outlined in the State's Continuum of Care Plan (if applicable); Level of service (numbers of persons, hours of service, etc.); Standard costs for housing and services; Relative quality of housing or standards for services to be provided; Amount of funds requested; Value of applicant's contributions (cash and in-kind); and, Other federal and state assistance available to applicant. Development funding decisions (i.e. acquisition, new construction, and rehabilitation) and funding amounts will be based upon the following factors: Level of service (number of persons, hours of service, etc...); Project strategy and feasibility (short and long-term); Amount of funds requested; Value of applicant's contributions (cash and in-kind); and, Other federal and state assistance available to applicant. Applications under the Urgent Need reservation or for activities that have not previously received ESG funds shall be reviewed according to the above factors, but shall also be evaluated on the basis of the relative need for the activity, measured in part by the local government and/or the local continuum of care planning organization. Funding decisions for nonprofit agencies shall also be based upon the following factors: the complexity or nature of the request, organizational development and capacity; the 196 FFY2000 Consolidated Plan for the State of Georgia extent to which the organization operates under the authority of a volunteer community-based board of directors, professional management; the consistency of the organization's identity or its mission to the provision of homeless services; the extent to which the organization uses networks to avoid duplication of housing and services; participation in a continuum of care (if applicable); financial stability; and board diversification and involvement. The unit of general local government in which each activity is to be undertaken must indicate its approval of the activity. Documentation of the approval must be included in the application. THE APPLICATION PROCESS Applications will be solicited by means of a direct mailing to all known homeless service providers, provider coalitions, local governments and other interested parties. DCA will conduct 14 regional workshops throughout the state to obtain input from providers and citizens in order to: (1) update its Continuum of Care Plan; and (2) brief potential applicants on application requirements. Upon their receipt by DCA, applications will be reviewed for completeness, including compliance with the applicable local Consolidated Plan. For applications from nonentitlement communities, the certification verifies consistency with the State Consolidated Plan. Incomplete applications may be returned by DCA. During the review process, DCA may conduct site visits to verify application data. In addition, environmental reviews will be conducted in cooperation with HUD staff. The Commissioner of the Georgia Department of Community Affairs or staff designated by the Commissioner shall have the authority to make awards from funds allocated by HUD or reserved by the HTF Commission. GEOGRAPHIC ALLOCATION The State does not anticipate any funding set-asides for specific geographic areas of Georgia. FFY2000 Consolidated Plan for the State of Georgia 197 H. GEORGIA'S PROPOSED DISTRIBUTION METHOD AND GEOGRAPHIC ALLOCATION OF HOPWA FUNDS PROPOSED DISTRIBUTION METHOD PROGRAM STRUCTURE HUD has notified the State of Georgia of its eligibility to receive $1,333,000 in FFY2000 Housing Opportunities for People with AIDS (HOPWA) program funds. The Georgia Department of Community Affairs will be the recipient of the State's HOPWA allocation. The purpose of the HOPWA program is to provide housing and supportive services to low income persons with HIV-related needs, principally in the State's HUD entitled area (outside Atlanta metro area) by passing through HOPWA funds to HIV housing and service organizations Private, nonprofit organizations and local government entities are eligible to apply for funding. Eligible activities are those included in current HUD regulations for the HOPWA program. These activities include, but are not limited to housing, housing or fair housing information, acquisition, rehabilitation, limited new construction, rental assistance (included shared housing), homelessness prevention, supportive services (health, mental health assessment, drug and alcohol, day care, personal assistance, nutritional services, etc...), general case management, housing operating subsidies, technical assistance, and administration (limited to 7%). Funding terms for the HOPWA program will vary by activity as follows: For operation and service activities, funding shall be limited to $100,000 per organization. For acquisition and/or rehabilitation activities, assistance is generally limited to $100,000 per project per organization. Subject to need or availability of funds, limits may be waived at the discretion of the Commissioner of the Georgia Department of Community Affairs. THE APPLICATION PROCESS Applications for funding under the HOPWA program will be solicited through a direct mailing of a notice of funding availability to all known HIV/AIDS service and housing providers, local governments, and other interested parties. Applications must be submitted on forms provided by DCA. The applicant must provide required certifications and provide all supporting documentation requested by DCA. Each applicant must demonstrate to the satisfaction of DCA that it is in 198 FFY2000 Consolidated Plan for the State of Georgia compliance with federal, state, and local laws and regulations, and that it is capable of carrying out applicable programs. Ineligible applications will be returned unprocessed. Applications will be processed based on local need, conformance to local plans, and (if applicable) service delivery strategy. Operations and service funding decisions and funding amounts will be based upon the following factors: Relative need for activity; The availability of other HOPWA providers within the service area; Relative quality of housing or services to be provided; Amount of funds requested; Value of applicant's contributions (cash and in-kind); Numbers of persons to benefit from activity; Standard costs for housing and services; and, Other federal or state assistance available to applicant. Acquisition and rehabilitation funding decisions and funding amounts will be based upon the following factors: Relative need for activity; Amount of funds requested; Value of applicant's contributions (cash and in-kind); Other federal or state assistance available to applicant; Number of persons to benefit from activity; Project strategy and feasibility. Applications received from inside the Atlanta HOPWA entitled (20 county) area will not be considered for assistance. The Atlanta HOPWA Service Area includes: Fulton, DeKalb, Cobb, Gwinnett, Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Coweta, Douglas, Fayette, Forsyth, Henry, Newton, Paulding, Rockdale, Spalding, and Walton counties. Staff recommendations will be submitted to the Commissioner of the Georgia Department of Community Affairs for final approval. GEOGRAPHIC ALLOCATION Funding through the HOPWA program is competitively available to all qualified nonprofit organizations and local governments in Georgia that operate or develop housing and associated supportive services within the State of Georgia for persons affected by HIV/AIDS. FFY2000 Consolidated Plan for the State of Georgia 199 I. GEORGIA'S ACTIVITIES TO MEET THE STATE'S HOUSING PRIORITIES AND OBJECTIVES This section outlines the activities that the State will undertake during SFY2000 to address Georgia's priority housing and community development needs and their related objectives. The list of actions includes programs that receive either consolidated formula program funds, other HUD assistance, other federal incentives, State moneys, or bond revenue. Consolidated formula program funds include: the HOME Investment Partnership (HOME), Community Development Block Grants (CDBG), Housing Opportunities for People with AIDS (HOPWA), and Emergency Shelter Grants (ESG) programs. The figures provided to quantify the State's objectives include projections based only on the use of HOME, CDBG, ESG, HOPWA, Section 8, and State match funds for the ESG program. PRIORITY: To increase the number of Georgia's low and moderate income households who have obtained affordable, rental housing which is free of overcrowded and structurally substandard conditions. Objective #1: Rehabilitate or construct affordable, rental housing units for 172 extremely low, 352 low, and 179 moderate income households. Activity #1(A): Implement Georgia's HOME CHDO Loan program to expand the financing available to State designated community housing development organizations to develop and manage decent, affordable low-income housing. Investment: FFY2000 HOME funds. Activity #1(B): Implement Georgia's HOME Rental Housing Loan program to provide loans to for-profit and nonprofit housing sponsors to construct or rehabilitate existing rental housing. Investment: FFY2000 HOME funds. Activity #1(C): Implement Georgia's Permanent Supportive Housing Program to provide construction and permanent financing to qualified CHDOs for the construction or rehabilitation of rental housing for non-elderly special need tenants. Investment: FFY2000 HOME funds; SFY2000 State Housing Trust Fund for the Homeless funds. 200 FFY2000 Consolidated Plan for the State of Georgia Activity #1(D): Implement Georgia's Low-Income Housing Tax Credit program which provides federal and state tax credits to owners of qualified rental properties who reserve all or a portion of their units for occupancy by low income tenants. Investments: FFY2000 IRS Low Income Housing Tax Credit allocation; SFY2001 Georgia Housing Tax Credit. Activity #1(E): Implement Georgia's Regular Annual CDBG Competition which assists local units of government to implement rental housing rehabilitation programs to benefit households of low and moderate income. Investment: FFY2000 CDBG funds. Activity #1(F): Implement Georgia's Community HOME Investment Program (CHIP) which assists local units of government to implement approved, HOME eligible housing programs within their community. Investment: FFY2000 HOME funds. Objective #2: Provide 5,010 extremely low, 2,780 low income, and 570 moderate income households with rental assistance. Activity #2(A): Implement Georgia's Section 8 Rental Assistance program which provides rent subsidies on behalf of lowincome families and individuals to participating landlords who agree to maintain their rental properties to the required Housing Quality Standards. Investment: Section 8 Certificates and Vouchers. Activity #2(B): Implement Georgia's Next Step program to provide grant assistance to local government and nonprofit organizations that will make supportive services and rental assistance available to persons who are homeless. Investment: SFY2001 State Housing Trust Fund for the Homeless allocation. FFY2000 Consolidated Plan for the State of Georgia 201 PRIORITY: To increase the number of Georgia's low and moderate income households who have achieved and are maintaining homeownership in housing free of overcrowded and structurally substandard conditions. Objective #3: Assist 70 extremely low, 450 low, and 570 moderate income households to achieve or maintain homeownership in housing free of overcrowded and structurally substandard conditions. Activity #3(A): Implement Georgia's OwnHOME program to offer deferred payment second mortgages to cover down payment, closing costs and prepaid expenses for low income home buyers. Investment: FFY2000 HOME funds. Activity #3(B): Implement Georgia's Rural Development OwnHOME program to offer deferred payment second mortgages to cover down payment, closing cost and prepaid expenses for low income home buyers receiving first mortgages through the USDA-Rural Development Direct 502 Loan program. Investment: FFY2000 HOME funds. Activity #3(C): Implement Georgia's Development-based OwnHOME program to offer deferred payment second mortgages to cover down payment, closing cost and prepaid expenses for low income home buyers that purchase homes in homes in rural Georgia that were constructed by builders competitively selected by DCA. Funds remaining after paying for the above costs may also be used towards principal reduction of the first mortgage. Investment: FFY2000 HOME funds. Activity #3(D): Implement Georgia's OwnHOME program for Disaster Areas to offer deferred payment second mortgages to cover down payment, closing cost and prepaid expenses for low income home buyers that purchase homes in areas of Georgia that have been declared disaster areas as a result of natural events. Funds remaining after paying for the above costs may also be used towards principal reduction of the first mortgage. 202 FFY2000 Consolidated Plan for the State of Georgia Investment: FFY2000 HOME funds. Activity #3(E): Implement Georgia's OwnHOME Program for the Disabled that makes up to $15,000 down payment and principal reduction loans available to qualified disabled borrowers. Investment: Settlement funds between the State of Georgia and a mortgage lender; FFY2000 HOME funds. Activity #3(F): Implement Georgia's Community HOME Investment Program (CHIP) which assists local units of government to implement approved, HOME eligible housing programs within their community. Investment: FFY2000 HOME funds. Activity #3(G): Implement Georgia's Regular Annual CDBG Competition which assists local units of government to implement housing rehabilitation and/or down payment assistance programs to benefit homeowners and potential homeowners of low and moderate income. Investment: FFY2000 CDBG funds. Activity #3(H): Implement Georgia's Single Family Home Buyer Program which offers fixed rate mortgage loans to qualified low to moderate income home buyers at below market interest rates. Investment: Proceeds from mortgage revenue bond issues. Activity #3(I): Implement Georgia's Rural Development Leveraged Loan Program that combines a first mortgage using Bond Program funds with a second mortgage that is a Rural Development Direct 502 interest subsidized loan (can be as low as 1%). The overall interest rate to the borrower, therefore, is below even the Bond Program. The first mortgage is between 20% and 80% of the amount needed and the second mortgage is the remainder of the financing. The exact split between the two is determined FFY2000 Consolidated Plan for the State of Georgia 203 by Rural Development staff to ensure that the property is affordable to low income families. Investment: Proceeds from mortgage revenue bonds and USDA/RD Rural Development Direct 502 program funds Activity #3(J): Provide Housing Information to Georgians interested in purchasing their first home. The information will involve Consumer Education Seminars geared to promoting a general awareness of the advantages and responsibilities of homeownership; Pre-Purchase Housing Counseling; and Post-Purchase Follow-up Sessions at 3, 6 and 12 months after closing a mortgage loan. Investment: HUD Housing Counseling Program Funds; Georgia Housing and Finance Authority Funds. Activity #3(K): Implement Georgia's proposed Community Housing Development Fund that will provide funds to rural communities for the acquisition of land, site development and the construction of model homes (pending HUD approval). Investment: HUD Rural Housing and Economic Development funds (application pending). PRIORITY: To increase the access of Georgia's homeless to a continuum of housing and supportive services which address their housing, economic, health and social needs. Objective #4: Provide housing and supportive services necessary for Georgia's homeless to break the cycle of homelessness to a daily average of 9,600 individuals. Activity #4(A): Implement Georgia's Emergency Shelter Grant program which provides financial assistance to nonprofits and local governments that offer shelter and services to meet the emergency needs of homeless individuals and families. Investment: 50% of funds through FFY2000 ESG allocation, 50% of funds through SFY2001 State Housing Trust Fund for the Homeless allocation. 204 FFY2000 Consolidated Plan for the State of Georgia Activity #4(B): Implement Georgia's Next Step Program to provide grant assistance to local government and nonprofit organizations that will make supportive services and rental assistance available to persons who are homeless. Investment: SFY2001 State Housing Trust Fund for the Homeless allocation. Activity #4(C): Implement Georgia's Transitional Supportive Housing Program to provide grants to nonprofit organizations to provide transitional housing in combination with supportive services for homeless individuals and families to enable their transition to independent self-sufficient housing. Investment: SFY2001 State Housing Trust Fund for the Homeless allocation. Activity #4(D): Implement Georgia's Housing Opportunities for People with AIDS (HOPWA) program which provides financing to providers of housing and supportive services for people living with AIDS. Investment: FFY2000 HOPWA funds. Activity #4(E): Implement Georgia's HOME CHDO Loan program to expand the financing available to State designated community housing development organizations to develop and manage decent, affordable low-income housing. Investment: FFY2000 HOME funds. Activity #4(F): Implement Georgia's Permanent Supportive Housing Program to provide construction and permanent financing to qualified CHDOs for the construction or rehabilitation of rental housing for non-elderly special need tenants. Investment: FFY2000 HOME funds; SFY2000 State Housing Trust Fund for the Homeless funds. FFY2000 Consolidated Plan for the State of Georgia 205 Activity #4(G): Implement Georgia's HOME Rental Housing Loan program to provide loans to for-profit and nonprofit housing sponsors to construct or rehabilitate existing rental housing. Investment: FFY2000 HOME funds. Activity #4(H): Implement Georgia's Regular Annual CDBG Competition that assists local units of government to implement programs that benefit Georgia's homeless. Investment: FFY2000 CDBG funds. PRIORITY: To increase the access of Georgia's Special Need populations to a continuum of housing and supportive services which address their housing, economic health and social needs. Objective #5: Make funding awards to organizations or households that assist 370 Special Need households with the housing and supportive services necessary to achieve decent, safe and sanitary living conditions. Activity #5(A): Implement Georgia's Housing Opportunities for People with AIDS (HOPWA) program which provides assistance to providers of housing and supportive services for people living with AIDS. Investment: FFY2000 HOPWA funds. Activity #5(B): Implement Georgia's Transitional Supportive Housing Program to provide grants to nonprofit organizations to provide transitional housing in combination with supportive services for homeless individuals and families to enable their transition to independent self-sufficient housing. Investment: SFY2001 State Housing Trust Fund for the Homeless allocation. Activity #5(C): Implement Georgia's HOME CHDO Loan program to expand the financing available to State designated community housing development organizations to develop and manage decent, affordable low-income housing. 206 FFY2000 Consolidated Plan for the State of Georgia Investment: FFY2000 HOME funds. Activity #5(D): Implement Georgia's HOME Rental Housing Loan program to provide loans to for-profit and nonprofit housing sponsors to construct or rehabilitate existing rental housing. Investment: FFY2000 HOME funds. Activity #5(E): Implement Georgia's Permanent Supportive Housing Program to provide construction and permanent financing to qualified CHDOs for the construction or rehabilitation of rental housing for non-elderly special need tenants. Investment: FFY2000 HOME funds; SFY2000 State Housing Trust Fund for the Homeless funds. Activity #5(F): Implement Georgia's Regular Annual CDBG Competition which assists local units of government to implement housing programs to benefit special need households of low and moderate income. Investment: FFY2000 CDBG funds. Activity #5(G): Implement Georgia's Single Family Home Buyer program which offers fixed rate mortgage loans to qualified low to moderate income home buyers at below market interest rates. Investment: Proceeds from single family bond issues. Activity #5(H): Implement Georgia's OwnHOME program to offer deferred payment second mortgages to cover down payment, closing costs and prepaid expenses for low income home buyers. Investment: FFY2000 HOME funds. Activity #5(I): Implement Georgia's Section 8 Rental Assistance program which provides rent subsidies on behalf of low income families and individuals to participating landlords who agree to maintain their rental properties to the required Housing Quality Standards. Investment: Section 8 Certificates and Vouchers FFY2000 Consolidated Plan for the State of Georgia 207 Activity #5(J): Implement Georgia's Community HOME Investment Program (CHIP) which assists local units of government to implement approved, HOME eligible housing programs within their community. Investment: FFY2000 HOME funds. Activity #5(K): Implement Georgia's Rural Development OwnHOME program to offer deferred payment second mortgages to cover down payment, closing cost and prepaid expenses for low income home buyers receiving first mortgages through the USDA-Rural Development Direct 502 Loan program. Investment: FFY2000 HOME funds. Activity #5(L): Implement Georgia's OwnHOME Program for the Disabled that makes up to $15,000 down payment and principal reduction loans available to qualified disabled borrowers. Investment: Settlement funds between the State of Georgia and a mortgage lender; FFY2000 HOME funds. 208 FFY2000 Consolidated Plan for the State of Georgia J. GEORGIA'S ACTIVITIES TO ADDRESS THE NEEDS OF THE HOMELESS AND OTHER SPECIAL NEED GROUPS As previously noted, the State will undertake programmatic activities to address the needs of the homeless and other special need groups. Each program will accomplish one or more of the following actions: Address the emergency and transitional housing needs of homeless individuals and families (including subpopulations); Prevent low income individuals and families with children (especially those of extremely low income) from becoming homeless; Help homeless persons make the transition to permanent housing and independent living; or Address the special needs of persons who are not homeless. GEORGIA DEPARTMENT OF COMMUNITY AFFAIRS PROGRAMS AND SERVICES DCA, through both federal and state resources, will implement the following programs during SFY2001 specifically targeted to benefit the homeless and other special need groups: Implement Georgia's Emergency Shelter Grant Program (ESG) to provide financial assistance to nonprofits and local governments that offer shelter and service to meet the emergency needs of homeless individuals and families. Incorporation of Georgia's Next Step program to offer grant assistance to local government and nonprofit organizations that will make supportive services and rental assistance available to persons who are homeless. Implement Georgia's Transitional Supportive Housing Program to provide grants to nonprofit organizations to provide transitional housing in combination with supportive services for homeless individuals and families to enable their transition to independent self-sufficient housing. Implement Georgia's Housing Opportunities for People with AIDS (HOPWA) program to offer assistance to providers of housing and supportive services for people living with AIDS. In addition, the State has instituted scoring criteria in the allocation of its HOME Rental Housing Loan Funds and HOME CHDO Loan funds to encourage the development of rental housing units that will benefit special need populations including the homeless. Applications that will benefit this group will receive additional points during the project evaluation stage, enhancing their likelihood of funding from this competitive process. For instance, projects receive points if the applicant agrees to hold and rent at least 50% of the total project dwelling units to Special Need households or if the project will develop housing exclusively for elderly households. FFY2000 Consolidated Plan for the State of Georgia 209 Furthermore, the State will allow HOME Rental Housing Loan applications for projects located in a community that has been designated as a local participating jurisdiction by HUD if the project will benefit special need households as defined in the State's Qualified Allocation Plan and the project receives the scoring points for this element during the evaluation process. Also during SFY2001, the State will continue implementation of its Continuum of Care Plan that outlines a delivery system to meet the affordable housing and service needs of the state's homeless population. This plan also will enable providers from across Georgia to access funding through HUD's SuperNOFA process and will guide the state's future efforts to serve the needs of homeless Georgians. The State will continue discussions with organizations in Georgia regarding a financing option that will efficiently and effectively use State and other resources to produce supportive housing for people with special needs. During SFY2001, the State will also implement its OwnHOME Program for the Disabled. This program makes loans to qualified disabled borrowers of up to $15,000 to cover downpayment costs and for principal reduction. The exact amount of this loan will be based on household income. DCA has joined with the state chapter of the Home of Your Own Alliance to reach out to local nonprofit organizations around the state working with the disabled. These nonprofits counsel potential borrowers, assess their housing needs and seek appropriate assistance, including where applicable, the OwnHOME Loan for the Disabled. Typically, the first mortgage is a low-interest Home Buyer loan, but other first mortgage loans are used as well. Unlike the traditional OwnHOME program, this program is financed using both HOME funds as well as funds received by the State as part of a settlement agreement between the State of Georgia and a mortgage lender as result of the state's investigation into that lender's lending practices. During SFY2001, DCA will also begin implementation of its Permanent Supportive Housing Program that is designed to encourage the production of affordable rental housing with accompanying supportive services for non-elderly special need tenants. This program will offer construction and permanent financing for the construction or rehabilitation of housing for this targeted population. To apply for this financing, applicants must be a State-certified CHDO. Financing for this program will be made available from the State Housing Trust Fund for the Homeless and the State's allocation of federal HOME funds. GEORGIA DEPARTMENT OF HUMAN RESOURCES In addition to the housing programs administered by DCA, the State's Department of Human Resources (DHR) anticipates administering the following service programs available to the homeless: 210 FFY2000 Consolidated Plan for the State of Georgia Medicaid: provides payments for medical assistance to qualified indigent people over age 65, members of families with dependent children, pregnant women, and physically or mentally disabled individuals. Community Services Block Grant (CSBG): provides assistance and services specific to low income households through twenty community action agencies and local governments. Food Stamps: provide nutritional assistance to all applicants who qualify based on income and other criteria. Prevention of Unnecessary Placement (PUP): provides family preservation services to families with children at risk for placement out of the home or ready for reunification. Projects for Assistance in Transition from Homelessness (PATH): provides funding to public agencies and private nonprofit organizations to implement eligible services for the mentally ill homeless. Technical Assistance: for the operation of supportive service programs funded through the FFY2000 HOPWA program. Georgia Coalition to End Homelessness: provides for coordination of shelter and direct services to homeless individuals. The program is also responsible for building the capacity of providers and technical assistance. Temporary Assistance for Needy Families (TANF): provides temporary cash assistance to eligible families and assistance with job preparation, work opportunities, enforcement of child support and assistance in obtaining and maintaining employment. FFY2000 Consolidated Plan for the State of Georgia 211 K. OTHER ACTIONS TO BE IMPLEMENTED BY GEORGIA ACTIONS TO ADDRESS OBSTACLES TO MEETING UNDERSERVED HOUSING NEEDS ADDRESSING THE OBSTACLES The State recognizes that many obstacles connected to affordable housing issues relate to public perceptions and market factors. However, the State can take action to address issues pertinent to its regulatory control. These responses include: Implementing federal fair housing requirements; Providing housing information to Georgians interested in purchasing their first home, including: Consumer Education Seminars geared to promoting a general awareness of the advantages and responsibilities of homeownership; Pre-Purchase Housing Counseling; and Post-Purchase Follow-up Sessions at 3, 6 and 12 months after closing a mortgage loan. Carrying out activities identified in the revised Analysis of Impediments to Fair Housing Choice submitted to HUD on August 31, 1998. Providing information on tenant/landlord laws; Offering technical assistance and financial resources to nonprofit housing providers to increase the administrative capacity of these organizations; Pursuing federal regulatory changes that will enable the State to more efficiently provide assistance; and Examining other State measures which may remove obstacles to the provision of affordable housing opportunities for low and moderate income Georgians. Implementing the Continuum of Care plan that serves the needs of rural Georgia, including the homeless population. Using the Work Force Housing Initiative to coordinate linkages between DCA, local private lenders, developers, and builders in order to address work-force housing related needs of the particular community. ACTIONS TO FOSTER AND MAINTAIN AFFORDABLE HOUSING All of the programs administered using Georgia's FFY2000 allocation of consolidated formula funds will seek to foster and maintain affordable housing opportunities within Georgia. As stated in the Strategic Plan, the State will continue to coordinate its use of proceeds from its issuance of mortgage revenue bonds, its use of the federal Low Income Housing Tax Credit, Georgia Housing Tax Credit, and the state's allocation of HOME program matching funds to further this effort. In addition, the Housing Trust Fund for the Homeless will use dedicated State funding to continue the efforts of service providers to assist the homeless. 212 FFY2000 Consolidated Plan for the State of Georgia ACTIONS TO REMOVE BARRIERS TO AFFORDABLE HOUSING In addition to the implementation of its affordable housing programs during SFY2001, DCA will take several steps to eliminate the barriers to affordable housing for several identified groups: The Office of Single Family Housing within DCA will use a brochure written in Spanish that will describe the programs available to potential low-income home buyers. DCA will continue its collaboration with the Georgia Chapter of the Home of Your Own Alliance that will help to eliminate the barriers to purchasing a home by qualified, disabled Georgians. The DCA Office of Single Family Housing will continue to promote an awareness of homeownership to Georgians interested in purchasing their first home. This information will include Consumer Education Seminars geared to promoting a general awareness of the advantages and responsibilities of homeownership; Pre-Purchase Housing Counseling; and Post-Purchase Followup Sessions at 3, 6 and 12 months after closing a mortgage loan. During both the Consumer Education Seminars and the Pre-Purchase Housing Counseling sessions households will be made aware of federal fair housing laws. In addition, the seminars will be targeted to underserved groups identified in the State's Consolidated Plan. Last, DCA's homebuyer education workbook "A Home of Your Own" has been translated into Spanish for use by Georgia's Hispanic population. DCA plans to make this workbook also available in Braille during SFY2001. During SFY2001, the State will continue to implement its OwnHOME Program for the Disabled. This program makes loans to qualified disabled borrowers of up to $15,000 to cover downpayment costs and for principal reduction. The exact amount of this loan will be based on household income. DCA has joined with the state chapter of the Home of Your Own Alliance to reach out to local nonprofit organizations around the state working with the disabled. These nonprofits counsel potential borrowers, assess their housing needs and seek appropriate assistance, including where applicable, the OwnHOME Loan for the Disabled. Typically, the first mortgage is a low-interest Home Buyer loan, but other first mortgage loans are used as well. Unlike the traditional OwnHOME program, this program is financed using both HOME funds as well as funds received by the State as part of a settlement agreement between the State of Georgia and a mortgage lender as result of the state's investigation into that lender's lending practices. The State will also implement its Development-based OwnHOME Program to offer deferred payment second mortgages to cover down payment, closing cost and prepaid expenses for low income home buyers that purchase homes in homes in rural Georgia that were constructed by builders competitively selected FFY2000 Consolidated Plan for the State of Georgia 213 by DCA. Funds remaining after paying for the above costs may also be used towards principal reduction of the first mortgage. The State also plans to implement its Community Housing Development Fund that will provide funds to rural communities for the development of single family subdivisions. Funds will be available to cover costs associated with land acquisition, site development and construction of model homes. The State plans to implement this pilot program during SFY2001 in the City of Waynesboro. As funds are repaid, additional communities will be selected in future program years. Implementation of this program is subject to the State's successful application under HUD's Rural Housing and Economic Development Program. Also during SFY2001, the State will continue implementation of its Continuum of Care Plan to provide a delivery system to meet the affordable housing and service needs of the state's homeless population. This plan also will enable providers from across Georgia to access funding through HUD's SuperNOFA process. DCA will carry out activities identified in its revised Analysis of Impediments to Fair Housing Choice submitted to HUD on August 31, 1998. DCA will also continue participation in Georgia M2M, Inc., a nonprofit organization created in 1999 to assist the Macon Housing Authority in its role as a Participating Administrative Entity to restructure loans for properties in Georgia with expiring contracts under HUD's Section 8 program. This role will help to preserve the availability of decent, safe and sanitary housing at financially viable properties. A consortium of 10 local public housing authorities (Americus, Athens, Atlanta, Augusta, Brunswick, Columbus, Decatur/DeKalb, Hinesville, Macon and Marietta) have teamed with GHFA to create Georgia HAP Administrators (GHA), Inc. to provide Section 8 Contract Administration services to HUD. ACTIONS TO EVALUATE AND REDUCE LEAD-BASED PAINT HAZARDS This section outlines the actions the State plans during SFY2001 to evaluate and reduce lead-based paint hazards. As described in Part V of the Consolidated Plan, three State agencies are working to reduce lead paint hazards. The Georgia Department of Natural Resources (DNR) has issued final state regulations to implement the "Georgia Lead Poisoning Prevention Act of 1994." This law requires the certification of lead abatement contractors and establishes minimum post-abatement lead dust clearance levels. DNR will continue to certify workers, contractors and risk assessors. This action by DNR has enabled DCA to implement the federally funded (through a separate HUD grant of over $5 million) Lead Safe Homes Demonstration Program. 214 FFY2000 Consolidated Plan for the State of Georgia DCA will continue this program working with existing grantees to speed-up production. DCA will also train all CDBG and CHIP housing recipients in the new lead hazard reduction regulations. ACTIONS TO REDUCE THE NUMBER OF POVERTY LEVEL FAMILIES Part V of the Consolidated Plan describes the nature and extent of poverty in Georgia. While a solution to assisting the significant number of Georgians living in poverty is beyond the scope of the four HUD formula programs covered by the Consolidated Plan, the implementation of the housing and community development programs as described in this Action Plan will assist in the alleviation of some of the conditions of poverty manifested in poor or overcrowded housing, lack of jobs and deteriorated neighborhoods. The grants the State will make to local governments and nonprofit service providers will help persons and families in poverty. DCA has set-aside $5,000,000 in FFY2000 CDBG funds for the Employment Incentive Program. This program will result in new jobs for lower income persons as well as job training possibilities. The additional income generated by these persons should help lift them above the poverty level. DCA's Office of Economic Development which manages the EIP Program and several other state funded economic development programs, is actively coordinating with the Department of Family and Children Services in the implementation of welfare reform efforts as well as the Department of Adult and Technical Education for job training. The Department of Human Resources, the Department of Education and the Department of Children and Youth Services will continue to implement and expand the Georgia Initiative for Families and Children. This innovative program seeks to enhance service delivery and break the "cycle of poverty" by concentrating services for young families and their children. DCA has coordinated several CDBG projects with this initiative and will consider additional funding requests when presented by eligible units of local government. ACTIONS TO DEVELOP THE INSTITUTIONAL STRUCTURE The State will continue its efforts to overcome identified gaps in its institutional structure and to fulfill its related priority: to increase the capacity of local nonprofit organizations and other providers to offer housing assistance. The State will undertake efforts to create and to increase the capacity of community-based nonprofit housing sponsors, such as CHDOs. Further training, technical assistance activities, and financial support will be important aspects of this effort. One important step toward this goal has been the continued implementation of the HOME CHDO Predevelopment Loan program implemented by DCA. This program provides interest-free loans to qualified nonprofit organizations to prepare complete and comprehensive applications for financing low to moderate income housing developments using Georgia's HOME CHDO program. FFY2000 Consolidated Plan for the State of Georgia 215 Furthermore, DCA has designated one full-time Nonprofit & Special Programs Coordinator to assist nonprofits to implement housing activities in Georgia. Also, the State will investigate and implement initiatives to increase the free flow of information, resources, and data between federal, state and local agencies, nonprofit housing developers, for-profit housing developers and advocacy groups. ACTIONS TO ENHANCE COORDINATION The State of Georgia will continue to take steps over the next year to meet its established priority: To increase coordination, strengthen linkages and encourage the formation of partnerships between Georgia's private sector housing developers, financial institutions, nonprofit organizations, public sector agencies, foundations, and other providers. The State's efforts to enhance coordination between these partners will include: The merger of the DCA and GHFA organizations into one agency has been a significant step forward in coordinating the implementation of housing and community development programs that benefit low and moderate income households across all of Georgia. Over the course of SFY2001, DCA will continue to evaluate and reorganize existing administrative and programmatic systems to provide the most efficient assistance to its participating partners. Steps will also be taken to strengthen existing linkages and form new partnerships with interested participants including private sector housing developers, financial institutions, nonprofit organizations, academic institutions, and local governments. DCA will continue the Community HOME Investment Program (CHIP) which will provide local governments access to both CDBG and HOME funds through a single, coordinated application process for the implementation of approved and eligible housing activities within their jurisdictions. DCA will continue to participate in various forums and networks from across the state which address affordable housing, homelessness or the housing issues of special need groups. DCA will continue its efforts to coordinate state assistance to Empowerment Zone/Enterprise Community designates in Georgia through the EZ/EC Interagency Task Force. The State established 12 state development regions that created (1) common regional boundaries for community and economic development; (2) a decentralization of state government (planning, community and economic development) to areas outside of Atlanta; (3) an enhancement of state rural development efforts; and (4) increased interagency and state/local cooperation. Together, DCA and the Department of Industry, Trade and Tourism (DITT) established offices and co-located staff in each of the 11 non-Atlanta regions. DCA has placed a regional manager and resource coordinator in each regional 216 FFY2000 Consolidated Plan for the State of Georgia office to concentrate on assisting communities in the areas of housing and community development. DCA staff will also help facilitate multi-jurisdictional efforts and provide technical assistance to local governments with plan implementation activities. DITT has also placed 2-3 staff members in each region to provide support to established industry, help enhance tourism potential, and coordinate workforce development resources. The new offices became operational July 1, 1998. During SFY2001, the regional offices and staff will be involved with conducting multi-day training programs of the Georgia Academy for Economic Development, various affordable housing initiatives, Year 2000 Census tracking, Y2K compliance, and the Business Retention and Expansion process survey. The State will implement Georgia's Transitional Supportive Housing Program to provide grants to nonprofit organizations that provide transitional housing in combination with supportive services for homeless individuals and families impacted by mental illness and/or substance abuse issues. The State Housing Trust Fund for the Homeless will provide assistance to cover costs associated with shelter and operation expenses associated with the transitional housing program. The Department of Human Resources Mental Health/Mental Retardation/Substance Abuse Regional Boards will partner in this program to fund appropriate supportive services for program beneficiaries. The State also will continue its informal efforts to work with other governmental agencies, nonprofit organizations, housing developers, financial institutions, foundations and other providers to create effective solutions to the housing and community development needs of Georgia. DCA will also maintain and expand its Internet web site to increase access to information on Georgia's affordable housing and community development needs and to promote the availability of its programs with its current and future partners. DCA will continue community-focused outreach activities through the HomeBuyer Education Grant and the WorkForce Housing Initiative. DCA will also continue participation in Georgia M2M, Inc., a nonprofit organization created in 1999 to assist the Macon Housing Authority in its role as a Participating Administrative Entity to restructure loans for properties in Georgia with expiring contracts under HUD's Section 8 program. This role will help to preserve the availability of decent, safe and sanitary housing at financially viable properties. Collaborating with DCA and the Macon Housing Authority in this effort are also the Athens Housing Authority, Augusta Housing Authority, Brunswick Housing Authority, Decatur/DeKalb Housing Authority, and the Marietta Housing Authority. GHFA will also continue its Membership in Georgia HAP Administrators (GHA), Inc., a nonprofit organization awarded a contract with HUD to provide FFY2000 Consolidated Plan for the State of Georgia 217 Section 8 HAP contract administration services to HUD for project-based Section 8 assisted properties in Georgia. GHA is currently scheduled to assume this role on August 1, 2000. Other Members in this organization include: Americus Housing Authority, Athens Housing Authority, Atlanta Housing Authority, Augusta Housing Authority, Brunswick Housing Authority, Columbus Housing Authority, Decatur/DeKalb Housing Authority, Hinesville Housing Authority, Macon Housing Authority, and the Marietta Housing Authority. L. MONITORING COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) DCA will provide CDBG funds to units of local government in accordance with the Annual Action Plan (Part VI, Section F). The selected governments will implement their selected activities, which will be carried out in furtherance of this plan. To insure that each recipient of CDBG funds operates in compliance with applicable federal laws and regulations, DCA implements a monitoring strategy that closely reviews government activities and provides extensive technical assistance to prevent compliance problems. Pre-funding site visits are made to each potential grant recipient to check that conditions are as described in the funding application submitted to DCA. Once grants are awarded, staff conduct an initial "start-up" visit to assess the capacity and needs of each recipient. In addition, all recipients are required to attend a workshop that provides extensive technical assistance and a guidance manual for use in implementing the project. Each and every grant recipient is monitored several times each year by trained DCA staff. A monitoring report is completed for the following compliance areas: Environmental; Eligibility; Fair Housing; Civil Rights; Financial and Audit; Federal Labor Standards; Acquisition and Relocation, Section 104(d); Interim and Final Audit; Final Benefit Count; Housing Rehabilitation Standards and Policies; Lead Based Paint Hazard Reduction Regulations, and Citizen Participation. 218 FFY2000 Consolidated Plan for the State of Georgia In the event that DCA staff identify compliance problems, the Chief Elected Official is notified and a deadline is set for a response. DCA maintains a monitoring status system to insure timely resolution of findings. Prior to formal close-out of each grant, a final check is made to be sure all monitoring has been completed and any finding is resolved satisfactorily. HOME INVESTMENT PARTNERSHIP (HOME) The Georgia Department of Community Affairs is the Participating Jurisdiction (PJ) and recipient of the State of Georgia's allocation of funds from the federal HOME Investment Partnerships (HOME) program. As a result, DCA is responsible for compliance monitoring of all projects funded through this HUD program. The State has developed and implemented compliance monitoring procedures to ensure proper implementation of all HOME regulations. To facilitate this monitoring process, the State sponsors a compliance seminar for HOME program participants, including such topics as: tenant applications, income limits, rent limits/utility allowance, income verifications, annual income and assets, income certifications/recertifications, leases, occupancy status reports, annual reports, and the responsibilities of property owners. The State conducts site visits annually for multifamily properties with 26 or more units and biannually for multifamily properties with 25 or fewer units. Properties are inspected for conformance with HUD's minimum Housing Quality Standards. In addition, DCA monitors each property for compliance with its executed land use restriction agreement. EMERGENCY SHELTER GRANT (ESG) The Georgia Department of Community Affairs is the recipient of the State's allocation of ESG funds. With the assistance of HUD, DCA will be responsible for compliance monitoring of all projects funded through this HUD program. The State provides written certifications to HUD regarding compliance of each project with appropriate environmental regulations. In addition, the State monitors randomly selected participating shelters each year. Annual site visits of each project are not mandatory. Among other items, the monitoring visit reviews such areas as financial record systems, program benefits, and other program rules. HOUSING OPPORTUNITIES FOR PEOPLE WITH AIDS (HOPWA) The Georgia Department of Community Affairs is the recipient of the State's allocation of HOPWA funds. DCA will be responsible for compliance monitoring of all projects funded through the HOPWA program in accordance with HUD program regulations found at 24 CFR Part 574. FFY2000 Consolidated Plan for the State of Georgia 219 SECTION 8 RENTAL ASSISTANCE PROGRAM The Georgia Department of Community Affairs will continue to administer the Section 8 Rental Assistance program in Georgia's 149 counties. This program provides rental subsidies to participating landlords on behalf of very low-income families and individuals. Monitoring procedures of this program include annual inspections of units to ensure compliance with HUD Housing Quality Standards (HQS) and a separate program audit that monitors compliance with federal regulations. A financial audit of the program is also conducted annually. LOW-INCOME HOUSING TAX CREDITS Compliance with federal and state regulations is necessary to maintain the State's eligibility to receive federal Low Income Housing Tax Credits. The Georgia Housing and Finance Authority (GHFA) operates this program on behalf of the State. GHFA will contract with the Georgia Department of Community Affairs for the administration of this program, including implementation of all monitoring requirements. Once a tax credit allocation is received, the State monitors the recipient's compliance with federal and state regulations and procedures. Representatives of each rental project receiving a tax credit allocation must annually participate in or submit the following items: Compliance Training Seminar: Within 45 days of either the receipt of a tax credit or the date the rental project is placed in service, whichever is earlier, the owner or developer and the authorized representative must meet with a DCA staff member or attend a DCA compliance training seminar to review program requirements and the owner's responsibilities, including such areas as: * Federal regulations to determine eligibility of low-income tenants; * Specific information necessary in tenant applications for continued LIHTC program compliance; * Income limits; * Rent limits; * Income verifications; * Annual income and assets; * Income Certifications; * Leases; * Quarterly Occupancy Status Reports; * Annual Owners Certifications; * Owner responsibilities to notify the State of changes in management or ownership and to comply with annual certification requirements; and, * Non-Compliance issues. 220 FFY2000 Consolidated Plan for the State of Georgia Occupancy Status Reports: Starting on the date the building is placed in service, Occupancy Status Reports are due quarterly and must be accompanied by Income Certifications for tenants who have moved into the development and for those tenants who were recertified during the report period. Site Visit/Management Review: To ensure compliance with Section 42 of the Internal Revenue Code, DCA periodically schedules a site visit to inspect the conditions of the apartments, randomly select tenant files for review, and interview tenants. In particular, DCA verifies that all sources of tenant income are documented in accordance with DCA program guidelines and monitors rent restrictions under Section 42(g) of the Internal Revenue Code. FFY2000 Consolidated Plan for the State of Georgia 221 Appendix A GENERAL CERTIFICATIONS AFFIRMATIVELY FURTHER FAIR HOUSING The State hereby certifies that it will affirmatively further fair housing in Georgia. The State will assume the responsibility of fair housing planning by: 1) Conducting an analysis to identify impediments to fair housing choice within the State; 2) Taking appropriate actions to overcome the effects of any impediments identified through that analysis; 3) Maintaining records reflecting the analysis and related actions; and, 4) Assuring that units of local government funded by the State comply with their certifications to affirmatively further fair housing. ANTI-DISPLACEMENT AND RELOCATION PLAN The State hereby certifies that it has in effect and is following a residential antidisplacement and relocation assistance plan that, in the case of any such displacement in connection with any activity assisted with funds provided under the HOME or CDBG programs, requires the same actions and provides the same rights as required and provided under Section 104(d) of the Housing and Community Development Act of 1974 in the event of displacement in connection with any activity assisted with funding under the CDBG or HOME programs. DRUG-FREE WORKPLACE The State hereby authorizes that it will continue to provide for a drug-free workplace by: 1) Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the State's workplace and specifying the actions that will be taken against employees for violation of such prohibition; 2) Establishing an on-going drug-free awareness program to inform employees about: (a) The danger of drug abuse in the workplace; (b) The State's policy of maintaining a drug-free workplace; (c) Any available drug counseling, rehabilitation and employee assistance programs; and, (d) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; FFY2000 Consolidated Plan for the State of Georgia A-1 3) Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph 1; 4) Notifying the employee in the statement required by paragraph 1 that, as a condition of employment under the grant, the employee will (a) Abide by the terms of the statement; and, (b) Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such convictions; 5) Notifying the agency in writing, within ten calendar days after receiving notice under subparagraph 4(b) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to every grant officer or other designee on whose grant activity the convicted employee was working, unless the Federal agency has designated a central point for the receipt of such notices. Notice shall include the identification number(s) of each affected grant; 6) Taking one of the following actions, within 30 calendar days of receiving notice under subparagraph 4(b), with respect to any employee who is so convicted (a) Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or (b) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; 7) Making a good faith effort to continue to maintain a drug-free workplace through implementation of paragraphs 1, 2, 3, 4, 5 and 6. 8) The State has provided below the site(s) for the performance of the work done in connection with the specific grants: Georgia Department of Community Affairs, 60 Executive Park South, Atlanta, Georgia 30329-2231 (DeKalb County). Check if there are workplaces on file that are not identified here. ANTI-LOBBYING To the best of the State's knowledge and belief: 1) No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, A-2 FFY2000 Consolidated Plan for the State of Georgia continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; 2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; 3) It will require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly; and, 4) The State is in compliance with restrictions on lobbying required by 24 CFR part 87, together with disclosure forms, if required by that part. AUTHORITY OF STATE The State hereby certifies that it possesses the legal authority under State law to make grant submissions and to execute community development and housing programs and the jurisdiction possesses the legal authority to carry out the programs for which it is seeking funding, in accordance with HUD applicable regulations. CONSISTENCY WITH PLAN The State hereby certifies that the housing activities to be undertaken with CDBG, HOME, ESG, and HOPWA funds are consistent with the strategic plan. ACQUISITION AND RELOCATION The State hereby certifies that it will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and implementing regulations at 49 CFR part 24. COMPLIANCE WITH SECTION 3 OF HUD ACT OF 1968 The State hereby certifies that it will comply with Section 3 of the Housing and Community Development Act of 1968 (12 U.S.C.) 1701u and implementing regulations at 24 CFR part 135 titled Employment Opportunities for Businesses and Lower Income Persons in Connection with Assisted Projects. SIGNATURE OF AUTHORIZED OFFICIAL Jim Higdon Commissioner, Georgia Department of Community Affairs FFY2000 Consolidated Plan for the State of Georgia A-3 EMERGENCY SHELTER GRANTS (ESG) PROGRAM CERTIFICATION The State hereby certifies that it will ensure compliance by units of general local government and nonprofit organizations to which it distributes funds under the Emergency Shelter Grants program with: 1) In the case of assistance involving major rehabilitation or conversion, the recipient will maintain any building for which assistance is used under the ESG program as a shelter for homeless individuals and families for not less than a ten (10) year period; 2) In the case of assistance involving rehabilitation less than that covered under paragraph (1), the recipient will maintain any building for which assistance is used under the ESG program as a shelter for homeless individuals and families for not less than a three (3) year period; 3) In the case of assistance involving essential services (including but not limited to employment, health, drug abuse, or education) or maintenance, operation, insurance, utilities and furnishings, the recipient will provide services or shelter to homeless individuals and families for the period during which the ESG assistance is provided, without regard to a particular site or structure as long as the same general population is served; 4) Any renovation carried out with ESG assistance shall be sufficient to ensure that the building involved is safe and sanitary; 5) The recipient will assist homeless individuals in obtaining appropriate supportive services, including permanent housing, medical and mental health treatment, counseling, supervision, and other services essential for achieving independent living and other Federal, State, local, and private assistance available for such individuals; 6) The recipient will obtain the matching amounts required under 24 CFR Section 576.71; 7) The recipient will develop and implement procedures to ensure the confidentiality of records pertaining to any individual provided family violence prevention or treatment services under any project assisted under the ESG program, including protection against the release of the address or location of any family violence shelter project except with the written authorization of the person responsible for the operation of that shelter; 8) To the maximum extent practicable, the recipient will involve through employment, volunteer services or otherwise, homeless individuals and families in constructing, renovating, maintaining and operating facilities assisted under the program, and in providing services for occupants of facilities assisted under the program; and A-4 FFY2000 Consolidated Plan for the State of Georgia 9) The recipient is following a current HUD-approved consolidated plan. SIGNATURE OF AUTHORIZED OFFICIAL Jim Higdon, Commissioner Georgia Department of Community Affairs HOME INVESTMENT PARTNERSHIP (HOME) PROGRAM CERTIFICATION The State hereby certifies that 1) Tenant-based rental assistance is an essential element of the State's consolidated plan for expanding the supply, affordability, and availability of decent, safe, sanitary and affordable housing; 2) It is using and will use HOME funds for eligible activities and costs, as described in 24 CFR Section 92.205 through Section 92.209 and that it is not using and will not use HOME funds for prohibited activities, as described in 24 CFR Section 92.214; and, 3) Before committing funds to a project, the State or its recipients will evaluate the project in accordance with guidelines that it adopts for this purpose and will not invest any more HOME funds in combination with other federal assistance than is necessary to provide affordable housing. SIGNATURE OF AUTHORIZED OFFICIAL Jim Higdon, Commissioner Georgia Department of Community Affairs FFY2000 Consolidated Plan for the State of Georgia A-5 HOUSING OPPORTUNITIES FOR PEOPLE WITH AIDS (HOPWA) CERTIFICATION The State hereby certifies that: 1) Activities funded under this program will meet urgent needs that are not being met by available public and private sources; 2) Any building or structure purchased, leased, rehabilitated, renovated, or converted with assistance under the HOPWA program shall be maintained as a facility to assist eligible persons for a period of not less than ten (10) years; and, 3) Any case involving non-substantial rehabilitation or repair of a building or structure with assistance under the HOPWA program shall be maintained as a facility to assist eligible persons for a period of not less than three (3) years. SIGNATURE OF AUTHORIZED OFFICIAL Jim Higdon, Commissioner Georgia Department of Community Affairs A-6 FFY2000 Consolidated Plan for the State of Georgia CERTIFICATIONS FOR COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM The State certifies that: CITIZEN PARTICIPATION - It is in full compliance and following a detailed citizen participation plan that satisfies the requirements of 24 CFR Section 91.115 and each unit of general local government that receives assistance from the State is or will be following a detailed citizen participation plan that satisfies the requirements of 24 CFR Section 570.486. CONSULTATION WITH LOCAL GOVERNMENTS - It has or will comply with the following: 1) It has consulted with affected units of local government in the non-entitlement area of the State in determining the method of distribution of funding; 2) It engages in or will engage in planning for community development activities; 3) It provides or will provide technical assistance to units of local government in connection with community development programs; and, 4) It will not refuse to distribute funds to any unit of general local government on the basis of the particular eligible activity selected by the unit of general local government to meet its community development needs, except that a State is not prevented from establishing priorities in distributing funding on the basis of the activities selected. LOCAL NEEDS IDENTIFICATION - It will require each unit of general local government to be funded to identify its community development and housing needs, including the needs of low income and moderate income families, and the activities to be undertaken to meet those needs. COMMUNITY DEVELOPMENT PLAN - Its consolidated housing and community development plan identifies community development and housing needs and specifies both short-term and long-term community development objectives that have been developed in accordance with the primary objectives of Title 1 of the Housing and Community Development Act of 1974, as amended (See 24 CFR 570.2 and 24 CFR part 570). USE OF FUNDS - It has complied with the following criteria: 1) Maximum Feasible Priority - With respect to activities expected to be assisted with CDBG funds, it certifies that it has developed its Action Plan so as to give maximum feasible priority to activities which benefit low and moderate income families or aid in the prevention or elimination of slums or blight. The Action Plan may also include activities which the grantee certifies are designed to meet other community development needs having a particular urgency because FFY2000 Consolidated Plan for the State of Georgia A-7 existing conditions pose a serious and immediate threat to the health or welfare of the community, and other financial resources are not available; 2) Overall Benefit - The aggregate use of CDBG funds including Section 108 guaranteed loans during program year 1998 shall principally benefit persons of low and moderate income in a manner that ensures that at least 70 percent of the amount is expended for activities that benefit such persons during the designated period; 3) Special Assessments - The State will require units of general local government that receive CDBG funds to certify to the following: It 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 CDBG funds are used to pay the proportion of a fee or assessment that relates to the capital costs of public improvements (assisted in part with CDBG 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. It will not attempt to recover any capital costs of public improvements assisted with CDBG funds, including Section 108, unless CDBG funds are used to pay the proportion of fee or assessment attributable to the capital costs of public improvements financed from other revenue sources. In this case, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. Also, in the case of properties owned and occupied by moderate income (not low income) families, an assessment or charge may be made against the property for public improvements financed by a source other than CDBG funds if the jurisdiction certifies that it lacks CDBG funds to cover the assessment. EXCESSIVE FORCE - It will require units of general local government that receive CDBG funds to certify that they have adopted and are 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 which is the subject of such nonviolent civil rights demonstrations within its jurisdictions. A-8 FFY2000 Consolidated Plan for the State of Georgia COMPLIANCE WITH ANTI-DISCRIMINATION LAWS - The grant will be conducted and administered in conformity with Title VI of the Civil Rights Act of 1964 (42 (USC 2000d), the Fair Housing Act (42 USC 3601-3619), and implementing regulations. COMPLIANCE WITH LAWS - It will comply with applicable laws. SIGNATURE OF AUTHORIZED OFFICIAL Jim Higdon, Commissioner Georgia Department of Community Affairs FFY2000 Consolidated Plan for the State of Georgia A-9 Appendix B METHODOLOGY USED TO DETERMINE HOUSEHOLD COUNT AND CHARACTERISTICS DATA ELEMENTS USED: 1) Estimated number of Households for Georgia in 1996 of 2,723,000. Source: US Bureau of Census, March 1999 Current Population Survey. 2) Estimated Homeownership rate for 1998 of 71.2%. This estimate was used to project homeowner households through 2010. Source: US Bureau of Census, Statistical Abstract. 3) Based on the assumption that "household inequity" has not changed, the distributions among income categories and between households types found from 1990 Census data is still applicable. Source: US Bureau of Census, March 1999 Current Population Survey. 4) Growth rate of elderly households nationwide was used to estimate and project the growth within the state of Georgia. Source: US Bureau of Census, Current Population Reports, Projections of Number of Households and Families in the United States, 1995-2010. 5) The projected growth rate for all households nationwide was used to calculate the growth rate for Georgia households. Source: US Bureau of Census, Current Population Reports, Projections of Number of Households and Families in the United States, 1995-2010. 6) Updated CHAS projection of Total Households for Georgia in 2002 was factored into the growth rate for the state based on the previously stated national growth rate projection (5). The US Bureau of Census had two documents that listed estimated number of households for the State of Georgia (1). The estimated number of households is 2,723,000 in 1996 and 2,843,000 in 1998. The 1998 figure accounted for approximately 2.74% of the nation's estimated households. The national growth rate by year for the nation was included as a factor in the 1998 projection. This was done by projecting the number of the households nationwide and multiplying the total by .0274 to estimate the number of Georgia households. This method accounted for 2,905,890 households in 2000. For 2002, the CHAS projections became available and the number was reset at 2,996,975 households for the state. This FFY2000 Consolidated Plan for the State of Georgia B-1 new data increased the state's share of households to 2.76% of the nation and this number was used for the remaining projected years. Once the number of households for each year was determined, the distribution between owner and renter households was determined by year (2). The estimates of homeownership came from the Statistical Abstract of the United States, published by the US Bureau of Census. The estimates went only to 1998, when 71.2% of Georgians were estimates to own their homes. This percentage was used for 2000, 2005, and 2010. Based on the US Bureau of Census' statement that "household inequity" had not changed significantly since 1993, DCA uses the assumption that the distribution among income categories and household types in Georgia has not changed significantly. Therefore, the percentage of distribution reflected in the SFY1994 CHAS dataset was used to distribute the calculated owner and renter occupied households among income categories. The distribution of household types also reflected the CHAS data with one exception. The US Bureau of Census projected number of households by household type for the nation. From this information, the rate of increase of the percentage of elderly households was determined for each year. This growth rate was added to the percentage found in the SFY1994 CHAS data for elderly households only. Small and large family households are assumed to have kept the same distribution patterns for all projected years. The increase in elderly households reduces the share of "other" households consisting of single person households under age 62 and unrelated individuals living together. Combining the projected number of households by year with the projected distribution by year among income categories and household types produced the numbers found in Tables 1-6 in Section I of this document. B-2 FFY2000 Consolidated Plan for the State of Georgia Appendix C SUMMARY OF COMMENTS RECEIVED AT PUBLIC HEARING HELD TO GAIN INPUT ON THE HOUSING AND COMMUNITY DEVELOPMENT NEEDS OF GEORGIA (FEBRUARY 10-24, 2000) The Georgia Department of Community Affairs held a public hearing at four locations across Georgia to gain input on the State's housing and community development needs. The following is a summary of the comments received at each location. Responses by the State as necessary are provided in parentheses and in small type immediately following the respective comment. More information concerning the citizen participation process utilized in preparing the Consolidated Plan is included in Section II of this document. THURSDAY, FEBRUARY 10, 2000 SAVANNAH / UNION MISSION Attendees: 20 COMMENTER #1: QUESTIONED if lenders/banks that practice redlining receiving money to provide loans to areas where the bank has no record of lending in a particular area. He also recommended that the loss of subsidized housing should be looked into and noted that too many programs make the process too complicated for the average person. COMMENTER #2: Housing opportunities for those with special needs/disabilities should have increased quantity and variety. The citizen also inquired as to any provision for renovations to an existing home when the tenant/owner is suddenly disabled from an accident or illness. COMMENTER #3: Inquired if there is any agency or division that is keeping track of trends in the loss of affordable housing as Section 8 options begin to expire and what programs might be used to ensure that these opportunities are replaced? COMMENTER #4: There is a need for programs to help with coordination between programs. There seems to be a gap between available services that put the client in a cycle that keeps them from success. OTHER COMMENTS: Other discussion included the following topics: V Greater need for supportive services; V Need for programs to supply funds to help form CHDO's; V Question on the validity of projects and what measure are taken to ensure that CDBG projects are not just the "pet project" of the local official. FFY2000 Consolidated Plan for the State of Georgia C-1 (STATE RESPONSE) This was answered by explanation of the review process and comment that the public review process at the local level is designed to ensure that the project selected is a valid one. V Add the web page address to report covers and other official documents. (STATE RESPONSE) In response to this comment, the web page address has been added to this report. TUESDAY, FEBRUARY 15, 2000 MACON / MUSIC HALL OF FAME Attendees: 20 COMMENTER #1: Housing needs are very high for self care for the disabled, access into homes with ramps, apartments need to be constructed to the disabled needs such as raised commodes in the older houses already built. COMMENTER #2: Need affordable housing for very low, low, moderate-income individuals, both home ownership and rental. Rent or mortgage needs to be subsidized. Old dilapidated homes need to be torn down and vacant land used for home construction. We need both single family and multifamily housing units filled with mixed-income households from very low to high incomes. We need transitional housing and/or lease purchase options for individuals who may have credit problems. We need technical assistance for CHDO's and start-up funding for its development. We need local governments, housing authorities, communitybased organizations, and individuals to work together along with state and federal agencies to pool resources to make dollars stretch and work more efficiently and avoid duplication of services. We need to expand the Section 8 program and make it more accessible to citizens by way of a wider advertising campaign. We need more housing for our growing Hispanic population and elderly. COMMENTER #3: Walton Options assists consumers throughout 16 counties in GA who have disabilities. The following are areas we often have difficulty in serving: 1) Efficient rental housing for people with significant physical impairments (i.e. accessible housing / affordable - more needed like that provided by sister co. Walton Community Services. There are long waiting lists for this service apartments fill up quickly. 2) Extremely long waiting list for people needing home modifications in order to remain in their own home (i.e. ramps, bathroom mods, grab bars, etc.) We have over 170 people on our waiting list - it grows weekly and includes people in all of our area served. It would take $87,000 to clear our waiting list. 3) Assistance in acquiring homes / restructuring them for accessibility for people with significant disabilities who want to live in their own home/community. C-2 FFY2000 Consolidated Plan for the State of Georgia COMMENTER #4: More funds are needed to be in place for more housing opportunities and needs. Need for them to be available in convenient locations for people (housing). COMMENTER #5: Inquired about the accessibility issued for existing facilities and what if any requirements there were regarding accessibility for rehabilitation. Rehabilitation for existing structures to allow for use by the disabled (ramps, etc.) is a very fast growing problem. Many people are forced out of their homes and into nursing homes or other facilities because they need a ramp on their house. COMMENTER #6: Areas that receive HUD HOPWA funds directly should be excluded from receiving funds through the state. Many areas are "double dipping" and this depletes the available funds for the balance of the state. The increase in available funds (if these entitled areas for HUD were excluded) would be valuable in providing expanded services such as rental assistance, etc. (STATE RESPONSE) DCA no longer receives applications for programs to be located form within the City of Atlanta's 20-county HOPWA Entitlement area. COMMENTER #7: In Dooly County the Hispanic population has almost doubled since '90 and is now up to 10%. Significant housing needs. COMMENTER #8: Population has shifted and they are now mostly comprised of elderly and youth. Both groups have significant needs and not much support for lack of a middle-age population / workforce. OTHER COMMENTS: Other discussion included the following topics: V The lack of coordination between programs and agencies was discussed at length. Many resources would be better utilized if groups would work together and approach problems as a whole instead of in pieces. V Attention was brought to the disparity of funding for housing as compared to other State agencies. The example used was the amount that is allocated to the Department of Transportation as compared to that allocated to HUD. V Instances were cited of groups receiving letter and/or surveys from city and state agencies as well as HUD that had a threatening tone if the survey was not completed or the hearing was not attended. The tone was perceived as threatening because mention was made of the addressee not being eligible for future funding as a result. (STATE RESPONSE) Surveys sent from DCA do not contain any such ultimatum. Should this occur in the future, concerns should be addressed to the individual agency soliciting the information. FFY2000 Consolidated Plan for the State of Georgia C-3 WEDNESDAY, FEBRUARY 16, 2000 ATLANTA / DCA BOARD ROOM Attendees: 26 COMMENTER #1: Can "inaccessible" be included in how DCA defines "substandard property"? This should be included especially when seniors or people with disabilities are occupants. Add to the definition of "homeless" - people with disabilities who are living in nursing facilities who want to return to their home communities. COMMENTER #2: There is a critical shortage of subsidized apartments in Gainesville for people with disabilities, senior citizens, and people with low income. COMMENTER #3: There are waiting lists everywhere for affordable, accessible housing for people with disabilities. Our public housing office only takes applications once a year, from April 17-20 and only in person. If we succeed in getting people out of institutions (Unlock the Waiting List Campaign) into homes of their own with home and community based services, we need affordable, accessible housing for them. Many people with disabilities are still living with their parents, because there is not place else to go, despite their desire to become independent and have a life of their own. The commenter felt that all housing units should be built according to universal design standards, so that people with disabilities can not only live where they choose, but can visit who they choose, not just visit the people who live on the 1st floor. Builders, contractors, architects, designers must all be taught the value of building accessible housing for an aging population, wherein more and more people will have a disability. COMMENTER #4: Reminding DCA of responsibility to serve the special needs populations. 1% of those with disabilities versus 64% of able-bodies people own their own homes. The majority of disabled have set incomes. More downpayment assistance and similar programs are needed. COMMENTER #5: There needs to be more of a focus on modification for those with disabilities. There has been a dramatic increase in the number of requests for this type of rehabilitation. In the State of Georgia there are approximately 118,000 individuals over 16 with impairments. 26% of those with significant disabilities are employed. During the last year 315 modifications at approximately $720 each were performed using mostly volunteer labor. There are currently 315 applications for disabled home modifications. As the population ages, the growing numbers of elderly will make the situation more urgent. The incorporation of basic access needs to be encouraged in developments. C-4 FFY2000 Consolidated Plan for the State of Georgia Need for more portable vouchers. The OwnHOME program should have more enhancements for the disabled. 45 individuals were assisted with the OwnHOME program last year. The state of Massachusetts issued $48 million in bonds for accessibility modifications. Georgia spent $7.65 billion on institutionalized long-term care in 1996. Request to add "inaccessible" to the definition of substandard housing and include those in institutions who want to return home in the definition of "homeless". COMMENTER #6: Approximately 1/4 of the calls received are regarding housing availability. The apartments built since 1991 have to have readily accessible units, but they are all high income - none are considered affordable. The accessibility issues for visually impaired people are different in that they don't necessarily include interior modifications, but they must have accessibility to transportation systems. Recently three calls were received for assistance in housing and NO apartments in Atlanta could be found that were accessible and had access to MARTA. There is a great need for communication of availability - a "Housing Clearinghouse". COMMENTER #7: There is a need for cross training within DCA. When going through the process of securing funds from more than one source there are frequent miscommunications and misunderstandings of the requirements between programs which has resulted in funding not going through. For example - 15% of the mental disability and substance abuse population also have AIDS. When trying to receive HOPWA funds in conjunction with tax credits there have been problems. COMMENTER #8: Affordability of housing - HOME/Tax Credit linkage. The bar should be lowered and there should be a set aside subsidy for people who fall below the 30% of AMI level. There is an issue of the constraint caused by Fair Market Rent. The maximum that they can pay for rent is lower in rural areas than the FMRs for areas near Atlanta. The transition from homeless to self-sufficient is an issue of Money, not Housing. There is a need for funding for education, job training, childcare (24-hour) and transportation. On occasion the State and Federal definitions clash and preclude the use of funds. "One-Stop Shopping" regarding funding is a required part of the Department of Labor on both the federal and state levels (mandated on the federal). COMMENTER #9: There is a need for coordination between agencies at the State (DCA, Labor, DHR) and federal level. The funding stream is so specific that it dilutes the power of the program and creates duplication with other programs. (STATE RESPONSE) The Interagency Homelessness Trust Fund is being reestablished. FFY2000 Consolidated Plan for the State of Georgia C-5 COMMENTER #10: There is a great need for day and evening child care. They have educational programs available but are under-utilized due to lack of childcare. Veterans should be included as a specific special needs population to be served under the Consolidated Plan. COMMENTER #11: Funds were available 3-4 years ago for housing cooperatives but are not longer allowed. This is a disservice and should be corrected. OTHER COMMENTS: V Groups working with HIV/AIDS populations have very little clout and are trying to build by networking with other groups that do not have the same high level of stigma associated with them. There is a migration trend from the rural areas into Atlanta with people hoping to find services more available, and then they are disappointed. WRITTEN COMMENTS: Received from the Statewide Independent Living Council of Georgia, Inc.: WHAT IS NEEDED? People with disabilities need affordable, accessible housing. WHY IS THIS THE CASE? In general, people with disabilities are poorer than their nondisabled peers. Forty percent (40%) of those with mobility limitations report an annual income of $8,500 or less and 58% report an annual income of less than $13,600. The rate of employment is often needed because Georgians with disabilities are too impoverished to afford market rate housing. Many people with mobility impairments need a dwelling that is accessible to wheelchair users. According to the Georgia County Guide, there are 118,042 Georgians age 16 and up with mobility impairments. This group of people often experiences a "double barrier" of unaffordable and inaccessible properties. WHAT IS THE STATEWIDE INDEPENDENT LIVING COUNCIL DOING TO ADDRESS THIS PROBLEM? The mission of the SILC is the full participation of people with disabilities in their communities. Central to this mission is the removal of barriers to independence and inaccessible housing is an example of a significant barrier. Therefore, the SILC uses some of its resources for accessibility modifications by contracting with local, non-profit disability organizations to construct wheelchair ramps, widen doorways and modify bathrooms so that people can get in and out of their homes and use the bathroom independently. In Federal Fiscal Year '99, our contractors modified 315 homes at a total cost of $226,800 (The average cost is about $720 because most of our contractors secure volunteer labor whenever possible.) At the present time, these programs report 315 people who have applied for and are waiting for home accessibility modifications. (Reported by Disability Connections in Macon, Walton Options for Independent Living in Augusta, Bainbridge Advocacy Independence Network in Bainbridge, Living Independence for Everyone in Savannah and Friends of Disabled Adults and Children in Stone Mountain.) C-6 FFY2000 Consolidated Plan for the State of Georgia The SILC is also a partner with DCA and the Governor's Council on Developmental Disabilities in the Home of Your Own Program, a task group that has worked together to promote home ownership among the disability community. HOW CAN THE DCA CONSOLIDATED PLAN HELP? There are four approaches that will help. 1) Make home accessibility modifications a priority in the next Consolidated Plan. Explore ways to expand the dollars available for this activity. For example, some states issue bonds in order to infuse new dollars into home accessibility modification programs. 2) Request as many Section 8 rent vouchers as possible. Encourage local jurisdictions to do the same. This enables people to secure needed rent subsidies and to live in locations of their choosing. 3) Encourage all participants of DCA programs and services to construct all properties with basic access features-one zero step entrance, 32 inch interior doors especially the bathroom door and electrical outlets at reachable height. Support state legislation that requires these features in homes that are constructed with public funds. 4) Continue and enhance the OwnHOME Loan program for disabled borrowers. In the past few years, this program has enabled 45 low income Georgians with disabilities to become homeowners. WHY SHOULD DCA CONSIDER THESE SUGGESTIONS? Accessibility makes sense from an economic viewpoint. Georgia's population is aging and the incidence of mobility impairment increases with age. When one's home (especially the bathroom) is inaccessible, a person with a disability cannot easily and safely perform daily living activities. Accessible environments decrease the likelihood of falls or other accidents that could cause injury. In addition, when people with disabilities need personal assistance, most get this assistance from family members. Accessible environments make it easier to help someone get into the bathroom, bathe or use the toilet. Accessible environments help people avoid institutional care, a significant cost to the taxpayer. Our state spent $765.1 million on institutional Long Term Care (nursing homes) in Fiscal Year '96, an increase of $35 million from the previous year. THURSDAY, FEBRUARY 24, 2000 ALBANY / BUSINESS AND TECHNOLOGY CENTER Attendees: 29 COMMENTER #1: Single Room Occupancy needs to be considered as the calls from single men and single women w/out children. (They) seemingly fall through the cracks under the current emergency shelters, as well as other types of housing. These other types of programs systematically serve families and/or at least women w/ children. There is a significant rise in fathers with children as well. Please take under consideration who does not fit our current and/or existing programs. The varied factors which include this trend are a graying society, baby-boomers turning 50, medical conditions, the transfer of jobs leaving area and going abroad, education, etc. Economic opportunities for church(s) and not-for-profit FFY2000 Consolidated Plan for the State of Georgia C-7 organizations for job creations, etc. It's purchase, build and/or franchise acquire "for profit" business. The current economic development opportunities are only extended to for-profit organizations. However, with the requirements placed upon churches and non-profits as far as financial statements, audits, etc. which are now being treated no differently than a for-profit business, etc. COMMENTER #2: In Nichols, GA there are severe problems with the handling of CDBG funds and projects. People are going to the city and applying and not receiving funds. Public hearings have been advertised and when they showed up the door was locked and nobody seemed to know anything about it. He has been in touch with the GBI and FBI to investigate mismanagement of funds but has not received any word from them in three months. (STATE RESPONSE) A list of CDBG funds and projects received by the city will be sent to him with this information. COMMENTER #3: How can we make local governments responsible for identifying community priorities? COMMENTER #4: In Cordele there are large amounts of underserved populations. The concern is that the local authorities are both misappropriating funds and not able to administer the programs effectively. (STATE RESPONSE) Response to Commenters #3 and #4 included discussion concerning community involvement, the requirement of a Citizen Participation Plan, and the need for legal action on that level. If they can determine that some illegal or other activity that does not follow HUD regulations, these concerns should be referred to HUD. COMMENTER #5: Would it be possible to consider provisions under existing or new programs that would allow for similar assistance for Rental Housing consumers that is available for homebuyers with funds for deposit and other utility related expenses? He says that in Albany, many people would qualify for the rental assistance programs, but cannot gather enough upfront cash for the deposit, utility deposits, first and last months rent, etc. Therefore, they remain homeless or at risk for being homeless. OTHER COMMENTS: There is an imbalance in the way that public authorities (Albany) conduct public outreach. If it is an issue they support there is extensive advertising and "fancy pamphlets". But if it is not something that they are excited about, nobody hears about it and then they can say that nobody is interested. There should be a mechanism to monitor the whole process. (STATE RESPONSE) The response and conversation that followed conveyed the fact that if an authority is following the established minimum guidelines, then the State can not force the locality to do more than the minimum federal regulations. C-8 FFY2000 Consolidated Plan for the State of Georgia Appendix D SUMMARY OF WRITTEN COMMENTS SUBMITTED ON THE STATE'S DRAFT FFY2000 CONSOLIDATED PLAN Written public comments were accepted on the Draft Consolidated Plan from April 12, 2000 until May 12, 2000. One comment was received and is included below with a response from the state. SUMMARY OF APPALACHIAN HOUSING INITIATIVE 2000 (FROM MARK DUMAS / PACES FOUNDATION) On March 8, 2000, the Paces Foundation submitted a proposal to the Georgia Department of Community Affairs seeking the creation of the Appalachian Housing Initiative 2000 that establishes a set-aside of multifamily HOME funds for Georgia's eight poorest Appalachian counties. This suggested initiative would establish a priority distribution of HOME funds as follows: "The first 33.33% of HOME funds ($6,067,380) to be allocated for multifamily projects in the year 2000 will go to the poorest Appalachian Counties: Elbert, Rabun, Union, Towns, Fannin, Gilmer, Chattooga or Heard." (Emphasis shown is as stated in the Paces Foundation request). The proposal indicates that if sufficient applications were not available to use the full set-aside, the remaining funds would be made available for projects located in other areas of Georgia. The proposal is based on the premise that, after eliminating the state's metropolitan statistical areas, there are 24 rural (non-metro) Appalachian counties. Of these counties, the eight poorest represent one-third of this total. The targeted counties were selected since their median income is less than the state average of $37,500. Additionally the Appalachian Region's land area is approximately one-third of the state's total land area. Requesting the first one-third of the State's FFY2000 HOME allocation makes it less likely that any proposed project located in these counties would be displaced in scoring under the state's Qualified Allocation Plan (QAP). In addition, the proposal states that this initiative would be in accord with the spirit of a nationally recognized federal initiative to stabilize the Appalachian region. The PACES Foundation further justified its proposed initiative by indicating that three professional market studies and one appraisal have been commissioned by its organization in the Hwy. 76 corridor of north Georgia and all have supported the need for additional affordable housing. The Paces Foundation indicates that only one of these FFY2000 Consolidated Plan for the State of Georgia D-1 properties in the past four years has received funding through the State's competitive affordable housing funding process. According to the proposal, this property achieved 100% occupancy in seven months, thus demonstrating demand. The proposal further states that the existence of overcrowded housing conditions is demonstrated by the fact that the eight four-bedroom units of this property leased up in two weeks. The proposal also cites evidence of substandard housing in the fact that older mobile homes, 30+ year old apartments, and some pre- and post-WWII houses with greatly deferred maintenance are the few housing options for large low income families. The projected rents for projects under this initiative are at 74-78% of the market, providing an affordable alternative to existing rental housing. Since 1997 the PACES Foundation has received grant awards from the Federal Home Loan Bank (FHLB) Affordable Housing Program which dramatically reduce the amount of financing needed from DCA to develop several projects. However, these AHP grant funds are in jeopardy as the time limit for their use has been reached. The FHLB is considering extending this deadline. The Paces Foundation further indicates that applications to DCA under its CHDO program were denied due to DCA's inability to process the necessary development documents in time for a tax credit application submittal to DCA. DCA RESPONSE: The State appreciates the input provided by the Paces Foundation that seeks to improve the housing conditions affecting Georgia's Appalachian communities. However, the State has opted to not establish a set-aside of its FFY2000 HOME funds targeted to the eight counties proposed in this initiative. This decision is based on several factors. First, a set-aside of one-third ($6,067,380) of the State's total allocation of HOME funds ($18,292,000) for eight north Georgia counties to implement only multifamily initiatives is a disproportionate set-aside for a small area of Georgia, given that 151 counties would have access only to the remaining balance of funds. In addition, this amount represents over 40% of the total federal and state funds set-aside by DCA to implement multifamily rental housing activities across all of Georgia. Second, poverty indicators in many other communities across rural Georgia are as high or higher than in the counties proposed for this initiative. Furthermore, it is the State's philosophy under its competitive HOME-funded programs not to establish geographic set-asides but to encourage the development of the most complete and competitive applications to its programs using the rating and ranking systems established after considerable citizen input. This approach helps to ensure that the State uses its scarce HOME resources to fund the best proposals and those most likely to succeed in creating long-term affordable housing opportunities for needy Georgians. Using its FFY2000 funds, DCA will make available over $15 million in funding during SFY2001 to fund affordable multifamily housing developments across the state. This funding includes $2,757,900 in federal HOME CHDO Funds; $7,204,900 in federal HOME funds allocated to the HOME Rental Housing Loan program; $2,717,047 in funds appropriated by the General D-2 FFY2000 Consolidated Plan for the State of Georgia Assembly as match to the HOME program and allocated by DCA to the HOME Rental Housing Loan program; and $2,384,595 in expected repayments of older loans made under DCA's HOME funded programs. All of these funds will be made available to fund projects using the scoring criteria proposed in the State's Qualified Allocation Plan included as an Appendix to this Consolidated Plan. In addition, the State will make available $3,500,000 through its CHIP Program to local governments in Georgia's non-entitlement communities to fund affordable housing initiatives. While applicants to this program must be units of general local government, these funds are available for the activities proposed under the Appalachian Housing Initiative. Therefore, by establishing a partnership with a local government, additional HOME funds can be accessed to fund the proposed developments. As a result, DCA has declined to establish a set-aside of its FFY2000 HOME funds for the identified eight counties. During SFY2001, over $18.5 million will be made available to fund the best and most competitive proposals for housing development from across Georgia. DCA encourages the Paces Foundation and all of DCA's other housing partners to submit competitive applications for these funds. FFY2000 Consolidated Plan for the State of Georgia D-3 Appendix E METHODOLOGY FOR HUD TABLE 1 PART I - HOMELESS POPULATION For the purposes of this plan and this table, the estimated annual number of homeless in the state is 75,000. This estimate is consistent with the State's Continuum of Care Plan for homeless services. The Task Force for the Homeless estimates that 40% of the homeless population resided in the Atlanta metropolitan area, 40% in other metropolitan areas, and the remaining 20% in Georgia's rural areas. Based on the 75,000 statewide homeless individuals estimated above, all metropolitan areas combined account for approximately 60,000 homeless individuals and rural areas account for approximately 15,000 homeless individuals. The State's Continuum of Care states that in Georgia's rural areas approximately 60% of homeless individuals are in families with children, and 40% are single individuals. The 1997 Research Atlanta Report "Homelessness in Metropolitan Atlanta" estimated the distribution to be 40% of homeless individuals were in families and 60% were single individuals. Based on these percentages the following annual estimates were generated: Rural Areas All Metropolitan Areas Individuals 6,000 36,000 In Families with Children 9,000 24,000 The Task Force for the Homeless indicated that the average family size of those requesting shelter in 1993 was 3.16 persons. This figure was used to determine the number of families. Based on this family size and an estimated 75,000 total homeless individuals, there are approximately 2,848 rural and 7,595 metropolitan homeless families each year. In order to divide these figures between the transitional housing and emergency shelter categories for the purposes of this HUD table, the State assumes that the ratio of individuals staying in these types of facilities as identified at the local level by the City of Augusta, DeKalb County and the Georgia Urban Consortium (Cobb, Fulton, and Gwinnett Counties) within their respective FY 1995 Consolidated Plans equals the percentage found for the state. The State found that 70% of homeless utilized emergency shelters in these areas and 30% utilized transitional housing facilities. The State recognizes that these figures are limited on their applicability since the State as a whole may not have the type of facilities in the same proportion as existing in these urban areas. However, in order to provide some breakout between these facility types, FFY2000 Consolidated Plan for the State of Georgia E-1 this proportion represents the best figures available. The State applied this 70%/30% ratio to each of the homeless categories identified to calculate the numbers in the table. Unduplicated counts of homeless individuals who are unsheltered or youths are not available. The State does not have adequate information to project these categories of homelessness as specified by HUD. PART 2 - SUBPOPULATIONS LINE 1 - SEVERE MENTAL ILLNESS (SMI) ONLY: The 1992 Annual Report of the Georgia Interagency Council on the Homeless indicates that approximately one-third (33%) of the homeless suffer from severe mental illness. The State subtracted from this figure the estimate of the homeless with both severe mental illness and alcohol/other drug abuse problems identified on line 3 of this table to derive the 13% figure shown on line 1. LINE 2 - ALCOHOL / OTHER DRUG ABUSE ONLY: The 1992 Annual Report of the Georgia Interagency Council on Homeless indicates that approximately one-half (50%) of the homeless suffer from alcohol/other drug abuse problems. The State subtracted from this figure the estimate of the homeless with both severe mental illness and alcohol/other drug abuse problems identified on line 3 of this table to derive the 30% figure shown on line 2. LINE 3 - SEVERE MENTAL ILLNESS (SMI) AND ALCOHOL/OTHER DRUG ABUSE: Research Design Associates, a research organization on public policy issues, identifies in the document "An Assessment of the Residential, Service, and Employment Needs of Atlanta's Homeless Mentally Ill: Final Report" for the Atlanta-based nonprofit organization Project Interconnections, Inc., that national estimates indicate that "around one-fifth (20%) of homeless people have both a mental health and substance abuse disorder (including both drugs and alcohol)." (Final Report, page 6.) LINE 4 - DOMESTIC VIOLENCE: The Council on Battered Women indicated in their submission for the State's 1995 Consolidated Plan that approximately 38% of homeless women cited domestic violence as the cause of their homelessness. A 1993 homeless count undertaken by the Chatham-Savannah Task Force for the Homeless shows that 17% of the homeless are women. Based on these figures, the State calculated that 6% of all homeless individuals (both men and women) are victims of domestic violence. LINE 5 - AIDS / RELATED DISEASES: The Atlanta Task Force for the Homeless estimates that 11% of Georgia's homeless population are HIV positive. LINE 6 - CHILDREN AND YOUTH UNDER AGE 17: The 1993 homeless count conducted by the Chatham-Savannah Task Force for the Homeless calculated that 25% of all homeless individuals were children under the age of 17. The State assumes that this percentage reflects the existence of homeless children and youth throughout Georgia. E-2 FFY2000 Consolidated Plan for the State of Georgia Appendix F LIST OF HOUSING PROVIDERS TO HOMELESS WITHIN GEORGIA For information on the attached list, please contact Phillippa Lewis Moss of the Georgia Department of Community Affairs at (404) 679-4945. FFY2000 Consolidated Plan for the State of Georgia F-1 Inventory of Georgia Programs That Offer Housing and/or Services as of 5/1/00 Jurisdiction Organization Adel Adel Alamo Albany Albany Albany Albany Albany Albany Albany Albany Albany Albany Albany Albany Albany Americus Americus Athens Athens Athens Athens Athens Athens Athens Athens Athens Athens Athens Athens Athens Athens Athens Athens Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Brothers of Holy Cross Mission of Mercy Kitchen, Inc. Community Network Albany Area Community Service Board Albany Outreach Center Albany Salvation Army Faith Community Outreach Center, Inc. Georgia Legal Services Program HIV-AIDS Volunteer Network, Inc. Liberty House of Albany, Inc. Light of Hope Ministries, Inc. Martin Luther King Outreach Mission, Inc. Mildred's Beginners Resource Mission Outreach Centers, Inc. Open Arms, Inc. SOWEGA Council on Aging Koinonia Partners, Inc. Middle Flint behavioral HealthCare (CSB) Action, Inc. AIDS Coalition of Northeast Georgia Athens area Habitat for Humanity Athens Area Homeless Shelter Athens Nurses Clinic for the Homeless Athens Regional Attention Home, Inc. Athens-Clarke Co. Human & Economic Development Department Athens Salvation Army Community Connection / Family Connection Community Resource Council of NE Georgia, Inc. Food Bank of Northeast Georgia, Inc. Georgia Homeless Coalition to End Homelessness Healing Place of Athens Northeast Georgia Homeless Coalition Project Safe Shelter Strong Day, Inc. 187 Edgewood Abner Place Abundant Life Ministries, Inc. Achor Center, Inc. Action Ministries, Inc. (d/b/a Atlanta Urban Ministry) Africa's Childrens Fund AGAPE House Ministry, Inc. AIDS Education & Services for Minorities (AESM), Inc. AID Atlanta, Inc. AIDS Care Coordinated All Saints Covenant Community Alternate Life Paths Program Anize, Inc. Antioch Urban Ministries, Inc. Atlanta Baptist Rescue Mission (Kitchen) Atlanta Children's Shelter, Inc. (Day Care) Atlanta Community food Bank, Inc. Atlanta Day Shelter for Women Atlanta Enterprise Center, Inc. Atlanta Legal Aid Society, Inc. Atlanta Recovery Center Atlanta Salvation Army-Men's Lodge Atlanta Salvation Army-Women & Children's Lodge Atlanta Task Force for the Homeless Atlanta Union Mission Atonement, Inc. Beacon of Hope, Inc. Bell Hall Big Bethel AME Church (Kitchen) Born Again Christian Center Boulevard House Housing Services Shelter Trans. Perm. Sup. HOPWA x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Note: There may be other organizations that provide homeless assistance that are not included in this list. FFY2000 Consolidated Plan for the State of Georgia Source: Georgia Department of Community Affairs F-1 Inventory of Georgia Programs That Offer Housing and/or Services as of 5/1/00 Jurisdiction Organization Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Bright Beginnings Butler Street Breakfast (Kitchen) Cabbagetown Soup Kitchen Caf 458 Transition House (Kitchen) Calvary Men's Shelter Capitol United Methodist Church Cathedral of Faith Men's Shelter Catholic Housing Initiatives, Inc. Central Presbyterian Night Shelter Child Service & Family Counseling Center, Inc. Christian Emergency Help Centers Clifton Presbyterian Church Night Shelter Coming Out of Homelessness, Inc. Community Advanced Practice Nurses Clinic, Inc. Community Concerns, Inc. Community Friendship, Inc. Community Housing Resource Center, Inc. Community of Hospitality, Inc. (Kitchen) Community Unity Council on Battered Women - Atlanta Council on Battered Women - Gwinnett Covenant Community, Inc. Crisis Resource Center, Inc. Crossroads Community Ministries, Inc. Druid Hills Presbyterian Church Shelter Dunbar Overflow Center Eagle's Nest Ministry, Inc. Evangelical Lutheran Church of the Redeemer Fair Haven Inn Faith Emergency Night Shelter Faith for Miracles, Inc. Families Access, Inc. Families First/FDC Families Together First Presbyterian Church Fulton County Community Service Board (CSB) Fulton County Mental Health Services Genesis Shelter Georgia Assoc. for Prevention & Treatment of Substance Abuse Georgia Council on Abused Women Georgia Justice Project Georgia Providers for Nonprofits, Inc. God's Favorite People Good News Mission Outreach, Inc. Guest House II Hardwick Hood Home House of Ruth, Inc. Institute of the Christian World Jefferson Place Jericho Road Ministry, Inc. Jerusalem House, Inc. Jewish Family Services, Inc. Joey's Shelter Lake Claire Community Apts., Inc. Legal Clinic for the Homeless Life in Christ Christian Ministries Living Room, Inc. Loveforce, Inc. Lutheran Church of the Redeemer (Kitchen) Maranatha Dorcas Community Shelter Matthew's Place Memorial Baptist Center and Shelter Mental Health Association Mercy Mobile Health Care Program Metro Atlanta Furniture Bank Housing Services Shelter Trans. Perm. Sup. HOPWA x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Note: There may be other organizations that provide homeless assistance that are not included in this list. FFY2000 Consolidated Plan for the State of Georgia Source: Georgia Department of Community Affairs F-2 Inventory of Georgia Programs That Offer Housing and/or Services as of 5/1/00 Jurisdiction Organization Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Atlanta Metro Atlanta Resource Center, Inc. Metro Atlanta Task Force for the Homeless Midtown Assistance Center, Inc. Midtown Congregations Assistance Milton Avenue Service Center Mount Pleasant Baptist Church My Place of Restoration Night Shelter My Sister's Place New Dimension Crisis & Treatment Center, Inc. New Start Substance Abuse Program Nicholas House, Inc. Nonprofit Resource Center O'Hearn House (formerly People's Place) Open Door Open Door Community Kitchen Operation Hope Night Shelter Our Lady of Lourdes Catholic (Kitchen) Outreach, Inc. Partnership Against Domestic Violence, Inc. Pathways, Inc. Phoenix House Pitts Home Ponce Manor Project Assist Project Community Connections, Inc. Project Open Hand/Atlanta, Inc. Pyramid Recovery Center, Inc. Reach Ministries, Inc. Resting Place, Inc. Saint Anthony's (Kitchen) Saint Francis' Table (Kitchen) Saint Hilda's Supportive Housing Program Saint John's Lutheran Church (Kitchen) Saint Joseph's Mercy care Services, Inc. Saint Judes Recovery Center Saint Mark Methodist Church Night Shelter Saint Peter's Baptist Church Saint Vincent de Paul Society, Inc. Salvation Army - Atlanta Samaritan House of Atlanta, Inc. Sanctuary Family Night Shelter Santa Fe Villas Senior Care, Inc. Shearith Israel Night Shelter for Women Shrine of the Immaculate Conception Sisters Action Team Southside Community Residence Sister Love, Inc. Spirited United, Inc. (Kitchen) Teen Challenge, Inc. Temple Zaban Night Shelter The Bridge The House of Love and Hope, Inc. The Temple Zaban Night Shelter Hebrew Benevolent Congregation Transition House Travelers Aid of Metropolitan Atlanta, Inc. Trinity Community Ministries United Way 211 Veterans Opportunity & Resource Center, Inc. Victory House Vineyard Missions, Inc. Visions Alternative Housing West Hills Presbyterian Church (Kitchen) William Holmes Borders, Sr Transitional Home William Stark House Housing Services Shelter Trans. Perm. Sup. HOPWA x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Note: There may be other organizations that provide homeless assistance that are not included in this list. FFY2000 Consolidated Plan for the State of Georgia Source: Georgia Department of Community Affairs F-3 Inventory of Georgia Programs That Offer Housing and/or Services as of 5/1/00 Jurisdiction Organization Atlanta Atlanta Atlanta Atlanta Augusta Augusta Augusta Augusta Augusta Augusta Augusta Augusta Augusta Augusta Augusta Augusta Augusta Augusta Augusta Augusta Augusta Augusta Augusta Augusta Augusta Augusta Augusta Augusta Augusta Augusta Augusta Austell Austell Barnesville Blairsville Blairsville Blairsville Blue Ridge Bremen Brunswick Brunswick Brunswick Brunswick Brunswick Brunswick Buchanan Butler Calhoun Calhoun Canton Carrollton Carrollton Carrollton Cartersville Cartersville Cartersville Cartersville Cartersville Cedartown Cedartown Centerville Chamblee Clarkesville Clarkesville World Youth alliance Young Adult Guidance Center, Inc. YWCA of Greater Atlanta YWCA Transition House Action Ministries, Inc. (d/b/a Augusta Urban Ministries) Augusta Rescue Mission Augusta-Richmond County Augusta-Richmond County Fire Rescue Augusta-Richmond Opportunities Center, Inc. Augusta Salvation Army Augusta Task Force for the Homeless Beulah Grove Community Resource Center, Inc. Catholic Social Services Coastal Regional Health Consultant, Inc. Central Savannah River Area (CSRA) EOA Community Mental Health Center Coordinated Health services, Inc. Crisis Pregnancy Center Georgia Legal Services Program, Inc. Golden Harvest Food Bank, Inc. Good Hope Baptist Goodwill Industries Hale Foundation, Inc. Hope House, Inc. Interfaith Hospitality Network of Augusta, Inc. New Hope Community Center Professional Services Enterprise Inc. d/b/a Deborah Home for Homeless Veterans Safe Homes of Augusta, Inc. St. Stephen's Ministry of Augusta, Inc. St. Vincent de Paul Health Center Word of Life Apolestolic Church, Inc. Sweetwater Valley Community Action Turning Point Enterprises, Inc. Action Ministries, Inc. Immanuel House Christian Worship Center, Inc. Project New Hope S.A.F.E., Inc. North Georgia Mountain Crisis Network, Inc. Haralson County Center for MHMRSA (CSB) Amity House Brunswick Salvation Army Coastal Area Support Team, Inc. (CAST) Coastal Georgia CAA, Inc. Gateway Community Service Board (CSB) SAFE Harbor Children's Shelter, Inc. Tallatoona Haralson HRDC Golden Rule, Inc. Calhoun/Gordon Council Alliance for Children, Inc. Tallatoona Gordon HRDC Cherokee Family Violence Center, Inc. Bremen Transitional Housing Carroll County Child Abuse Council Carroll County Emergency Shelter, Inc. Advocates for Bartow's Children, Inc. Bartow County Alliance for Children, Inc. Christian League for Battered Women, Inc. Tallatoona EOA, Inc. Tranquility House Three Rivers Behavioral Health Services (CSB) Polk Tallatoona HRDC Houston Drug Action Council (HODAC), Inc. Children's Restoration Network Habersham Circle of Hope Habersham Soup Kitchen, Inc. Housing Services Shelter Trans. Perm. Sup. HOPWA x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Note: There may be other organizations that provide homeless assistance that are not included in this list. FFY2000 Consolidated Plan for the State of Georgia Source: Georgia Department of Community Affairs F-4 Inventory of Georgia Programs That Offer Housing and/or Services as of 5/1/00 Jurisdiction Organization Clarkesville Clayton Cleveland College Park College Park College Park College Park College Park College Park College Park College Park Columbus Columbus Columbus Columbus Columbus Columbus Columbus Columbus Columbus Columbus Columbus Columbus Columbus Columbus Columbus Columbus Columbus Columbus Columbus Columbus Columbus Columbus Columbus Columbus Columbus Columbus Columbus Columbus Columbus Conley Conyers Conyers Conyers Cornelia Crawford Crescent Cumming Dahlonega Dallas Dalton Dalton Dalton Dalton Dalton Dalton Darien Darien Decatur Decatur Decatur Decatur Decatur Decatur Decatur Refuge Ministries, Inc. Fight Abuse in the Home, Inc (F.A.I.T.H. in Rabun County, Inc.) Caring Hands Ministries/Gainesville-Hall Co. Homeless Christ Miracle Temple, Inc. Clark's Life Center, Inc. Mattie House, Inc. Metro Community Family Life center, Inc. Restoration Community resources, Inc. Stepping Stone Rehabilitation Center, Inc. Tapestry Youth Ministries Women's Crisis Center, Inc. Anne Elizabeth Shepard Home Baptist Children's Shelter Brighter Day Outreach Center, Inc. Columbus Alliance for Battered Women Columbus Salvation Army Columbus Task Force for the Homeless Community Connection & Intervention, Inc. Enrichment Services Program, Inc. Faith Home for Girls, Inc. Fort Benning Army Community Service Fourth Street Baptist Church Georgia Legal Services Program Glenwood Arms Greater Columbus Transitional Housing for the Homeless Holy Family Church (Kitchen) House of Mercy House of T.I.M.E., Inc. Metro Columbus Task Force for the Homeless Metro Columbus Urban League New Horizon Community Service Board (CSB) Open Door Community House, Inc. Rediscovery, Inc. Saint Anne's Outreach (Kitchen) South Columbus Mission (Kitchen) Stewart Community Home Tec Housing and supportive Services, Inc. Valley Rescue Mission Veteran's Life Action Center, Inc. Wynnton Neighborhood Network (Kitchen) Safe Haven Transitional, Inc. Beginning Anew, Inc. Project ReNewal Domestic Violence Intervention Program, Inc. Rockdale Co. Emergency Relief Fund, Inc. Georgia Mtn Women's Center, Inc. (d/b/a Circle of Hope) Rural Outreach Center, Inc. Sams Memorial Community Econ Devel Inc. Forsyth County Family Haven, Inc. N.O.A.'s Ark Shepherd's Rest Ministries, Inc. Georgia Highlands Community Service Board (CSB) Harvest Outreach Centers/Women & Children Harvest Outreach Centers, Inc. Men's Shelter Northwest Georgia Family Crisis Center Northwest Georgia Girls Home Open Door Mission Coastal Area Support Team, Inc. Genesis House Agape Youth/Homelesss Ministry Circuit, Inc. Amanda Flipper A.M.E. Church Breakthru House, Inc, Changed Living Recovery Residence, Inc. Comprehen. Addic. Rehab. Program of GA, Inc. Decatur Cooperative Ministry, Inc. Dekalb Community Service Board (CSB) Housing Services Shelter Trans. Perm. Sup. HOPWA x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Note: There may be other organizations that provide homeless assistance that are not included in this list. FFY2000 Consolidated Plan for the State of Georgia Source: Georgia Department of Community Affairs F-5 Inventory of Georgia Programs That Offer Housing and/or Services as of 5/1/00 Jurisdiction Organization Decatur Decatur Decatur Decatur Decatur Decatur Decatur Decatur Decatur Decatur Decatur Decatur Decatur Decatur Decatur Decatur Decatur Decatur Doraville Doraville Douglas Douglas Douglasville Douglasville Douglasville Douglasville Dublin Dublin East Point East Point East Point Ellenwood Fairburn Fayetteville Fitzgerald Forest Park Forest Park Forest Park Gainesville Gainesville Gainesville Gainesville Gainesville Gainesville Gainesville Gainesville Greensboro Greensboro Griffin Griffin Guyton Hapeville Hiawassee Hinesville Hinesville Homerville Jackson Jackson Jeffersonville Jesup Jesup Jonesboro Jonesboro LaFayette Dekalb County Community Development Department Dekalb-Fulton Housing Counseling Center, Inc. Greater Hope, Inc. Guardian Care Facility Incorporated Initiative for Affordable Housing/Dekalb, Inc. Junior League of Dekalb County, Inc. P.B.P. Empowerment Center, Inc. Oakhurst Baptist Church Hospitality House Our Common Welfare, Inc. Our House, Inc. Piece-By-Piece & Viewpoint of Metro Atlanta Prison Ministries with Women, Inc. Re-Bond, Inc. St. James Spiritual Church Stepping Beyond, Inc. The Connector, Inc. Transition House, Inc. Women's Resource Center of Dekalb, Inc. Interfaith Outreach Home, Inc. Korean Community Service Center, Inc. Christian Faith Outreach Wellness Center Douglas County Food Bank, Inc. Douglas County Shelter Love That Child, Inc. S.H.A.R.E. House, Inc. Community Mental Health Center of Middle GA Women in Need of God's Shelter Family Life Ministries Reach of Love Missionary Baptist church Viewpoint of Metro Atlanta, Inc. Ministry Gifts in Action From Concepts to Reality, Inc. Fayette County Council on Battered Women Ben Hill Co. Policy Council for Families & Children, Inc. Calvary Refuge, Inc. Clayton County Family Care, Inc. Paradise Night Shelter Gainesville Action Ministries (Urban Ministry) Gainesville-Hall Co. Neighborhood Revitalization Gainesville-Hall Co. Community Services Center Gainesville Salvation Army GA Mtns Community Service Board (CSB) Gateway House Georgia Legal Services Program Ninth District Opportunity Ebenezer African Methodist Episcopal Church Greene County Family Violence Council, Inc. Griffin Salvation Army McIntosh Trail MH/MR/SA CSB The Resource Center, Inc. The Hope Shelter, Inc. Wings of Hope The Heart of Christ, Inc. Tri-County Protective Agency Bridges of Hope Charitable Trust Action Ministries, Inc. Under My Wings of Care, Inc. Good Life Shelter Comprehensive AIDS Resource Encounter, Inc. Fair Haven (Wayne Co. Protective Agency) Clayton County Community Service Board Clayton County Housing & CD Program Family Crisis Center of Walker, Dade, Catoosa & Chattooga Counties, Inc. Housing Services Shelter Trans. Perm. Sup. HOPWA x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Note: There may be other organizations that provide homeless assistance that are not included in this list. FFY2000 Consolidated Plan for the State of Georgia Source: Georgia Department of Community Affairs F-6 Inventory of Georgia Programs That Offer Housing and/or Services as of 5/1/00 Jurisdiction Organization LaFayette LaGrange LaGrange LaGrange LaGrange LaGrange Lawrenceville Lawrenceville Lawrenceville Lawrenceville Lawrenceville Lawrenceville Lawrenceville Lebanon Lithonia Lithonia Lithonia Macon Macon Macon Macon Macon Macon Macon Macon Macon Macon Macon Macon Macon Marietta Marietta Marietta Marietta Marietta Marietta Marietta Marietta Marietta Marietta Marietta Marietta Marietta Marietta Marietta Marietta Martinez McDonough McDonough McDonough McRae Milledgeville Milledgeville Milledgeville Monroe Morrow Morven Moultrie Moultrie Norcross Norcross Oakwood Pembroke Perry Pine Lake Lookout Mtn Community Services (CSB) Community Action for Improvement, Inc. (CAFI) Pathways Cntr for Behav. & Devel. Growth (CSB) Project L.O.V.E., Inc. St. Vincent de Paul Troup Haven House By Faith Outreach Ministries, Inc. Christ Episcopal Church Excelling Eagles GRN Community Service Board (CSB), Inc. Gwinnett Co. Battered Women's Shelter, Inc. Gwinnett Co. Children's Shelter, Inc. Quinn House Cherokee Family Violence Shelter A Better Chance Females, Inc. Changed Living Recovery Residence Greater Lithonia Christian Council, Inc. Central City AIDS Network, Inc. Dismas Charities, Inc. Friendship Ministries Georgia Legal Services - Macon Lighthouse Missions, Inc. Loaves and Fishes Ministry, Inc. Macon Bibb Co. Economic Opportunity Council, Inc. Macon Coalition to End Homelessness Macon Innercity Ministry, Inc. Macon Outreach at Mulberry Macon Salvation Army River Edge Behavioral Health Center (CSB) River Edge Project Connection CAMP Emergency Shelter Cobb County Board of Health Cobb County Children's Shelter Cobb County Community Service Board Cobb County Emer. Mental Health Hotline Cobb Co/Marietta City Schools Homeless Children & Youth Program Cobb Family Resources Cobb Human Services Coalition, Inc. Cobb Street Ministries Douglas County Community Services Board Extension, Inc. Ministries United for Service & Training, Inc. Travelers Aid of Cobb County YWCA of Cobb County - Children's Place YWCA Sheltering Hands YWCA Transition House God's Love Mission, Inc. Associa.for Prevention of Domestic Violence Flint Circuit Council on Family Violence, Inc. Liberty International Ministries Telfair Ministerial Alliance Milledgeville/Baldwin Co. Rape Crisis Center Oconee CSB - Oconee Center Zion Outreach Center Ministry for Econ Development The Alcove, Inc. Association of Battered Women of Clayton County Genesis Homes New Standard Ministries Southwest GA Community Action Council, Inc. Gwinnett Housing Resource Partnership, Inc. Rainbow Village, Inc. Surrender to Win, Inc. Wilson Ministries Genesis House for the Homeless, Inc. Edwina's House, Inc. Housing Services Shelter Trans. Perm. Sup. HOPWA x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Note: There may be other organizations that provide homeless assistance that are not included in this list. FFY2000 Consolidated Plan for the State of Georgia Source: Georgia Department of Community Affairs F-7 Inventory of Georgia Programs That Offer Housing and/or Services as of 5/1/00 Jurisdiction Organization Quitman Hawthorne House Charitable Trust Riverdale Restoration Community Resources, Inc. Rome Action Ministries, Inc. (Rome Urban Ministries) Rome Hospitality House for Women, Inc. Rome Three Rivers Behavioral Health Services (CSB) Roswell Housing Initiative of North Fulton Roswell We Help Those Who Help Themselves, Inc. St. Marys Camden House St. Marys Our Daily Bread, Inc. Savannah Chatham-Savannah Authority for the Homeless Savannah Economic Opportunity Auth.-Housing Counseling Savannah Emmaus House of Savannah Savannah First Baptist Church Savannah Georgia Legal Services-Homeless Advocacy Project Savannah Goodwill Baptist Church (Food) Savannah Greenbriar Children's Center Savannah Holy Spirit Lutheran Church (Kitchen) Savannah Hope House of Savannah, Inc. Savannah Horizon House Savannah Houston House Savannah Independence Center Savannah Inner City Night Shelter, Inc. Savannah Lutheran Ministries of Georgia, Inc. Savannah Magdalene Project Savannah Marshlands Foundation, Inc. Savannah Midtown Community Center Savannah Oxford House Savannah Phoenix Place (I & II) of Union Mission, Inc. Savannah Potter's Place of Union Mission, Inc. Savannah Project AZUKA, Inc. Savannah Saint Thomas Episcopal Church Savannah Savannah Area Family Emergency Shelter Savannah Savannah Salvation Army Savannah Second Harvest Food Bank of Coastal GA Savannah Social Apostolate of Savannah (Kitchen) Savannah St. Peter's Episcopal Church of Skidaway Island, Inc. Savannah St. Thomas Episcopal Church, Isle of Hope, Savannah, Inc. Savannah Union Mission, Inc. (Savannah) Savannah United Ministries of Savannah, Inc. Savannah Wesley Community Centers of Savannah, Inc. Savannah Wilmington Island Presbyterian Church Smyrna St. Vincent de Paul Statesboro Amethyst Project, Inc. Statesboro Pineland MHMRSA CSB Statesboro Citizens Against Violence, Inc. Stockbridge Higher Plains Ministries, Inc. Stone Mountain Family Initiatives Residences, Inc. Stone Mountain Mission Corps International, Inc. Stone Mountain New Life Outreach Stone Mountain Phoenix Alliance, Inc. Swainsboro Ogeechee Behavioral Health Services (CSB) Swainsboro Sumshine House/Emanuel Co. Child Abuse Prevention Center Sylvester A Home for Little Children, Inc. Thomasville Anchor Services, Inc. Thomasville GA Pines Community MHMRSA Services (CSB) Thomasville Halcyon Home Thomasville Safe Haven, Inc. Thomasville Thomasville Salvation Army Tifton Georgia Legal Services Program - Tifton Tifton Luther's House Toccoa Toccoa Soup Kitchen Tucker Griffin Economic Development Valdosta Battered Women's Shelter, Inc. Valdosta Brother's Two Valdosta Helping Others to Manage Efficiently, Inc. Housing Services Shelter Trans. Perm. Sup. HOPWA x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Note: There may be other organizations that provide homeless assistance that are not included in this list. FFY2000 Consolidated Plan for the State of Georgia Source: Georgia Department of Community Affairs F-8 Inventory of Georgia Programs That Offer Housing and/or Services as of 5/1/00 Jurisdiction Organization Valdosta Lowndes Associated Ministries to People Valdosta South Georgia Coalition to End Homelessness Valdosta South Georgia CSB (d/b/a Behavioral Health services of South GA) Valdosta Valdodsta Salvation Army Valdosta Valdosta Task Force for the Homeless Vidalia Pinelands MHMRSA CSB Warner Robins Community Outreach Service Center Warner Robins Houston Drug Action Council, Inc. (HODAC) Warner Robins Phoenix Center Behavioral Health Services (CSB) Warner Robins Warner Robins Salvation Army Waycross Brighter Day Ministries, Inc. Waycross Concerted Services, Inc. Waycross Waycross Salvation Army Winder Peace Place, Inc. Winder Project ADAM Community Assistance Center, Inc. Housing Services Shelter Trans. Perm. Sup. HOPWA x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Note: There may be other organizations that provide homeless assistance that are not included in this list. FFY2000 Consolidated Plan for the State of Georgia Source: Georgia Department of Community Affairs F-9 Appendix G STATE CONTINUUM OF CARE PLAN The attached is a copy of the State's Continuum of Care Plan for the "Balance of the State". The document was final May 31, 2000. For more information please contact the Georgia Department of Community Affairs at (404) 679-4940. The contact person for this project is Phillippa Lewis Moss Appendix H 2000 HUD MEDIAN FAMILY INCOME LIMITS In response to requests made at the public hearings, the State has included a listing of the FFY2000 Median Family Income (MFI) Limits issued by HUD. The MFI figures provided are for a family of four persons by MSA/PMSA, Area County, and Nonmetropolitan Area County. Generally, the receipt of consolidated formula program funds requires an income no higher than 80% of the median family income as adjusted for family size. These income limits are effective no later than April 21, 2000. The area definitions utilized by HUD generally are the same as those contained in OMB Bulletin 93-17 that was released on June 30, 1993. The following list identifies the counties included within each MSA/PMSA, area counties, and the nonmetropolitan counties in Georgia. PMSA/MSA AREAS Albany: Dougherty, Lee Athens: Clarke, Madison, Oconee Atlanta: Barrow, Bartow, Carroll, Cherokee, Clayton, Cobb, Coweta, DeKalb, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Spalding, Walton Augusta-Aiken: Columbia, McDuffie, Richmond Chattanooga: Catoosa, Dade, Walker Columbus: Chattahoochee, Harris, Muscogee Macon: Bibb, Houston, Jones, Peach, Twiggs Savannah: Bryan, Chatham, Effingham NONMETROPOLITAN AREAS: Appling, Atkinson, Bacon, Baker, Baldwin, Banks, Ben Hill, Berrien, Bleckley, Brantley, Brooks, Bulloch, Burke, Butts, Calhoun, Camden, Candler, Charlton, Chattooga, Clay, Clinch, Coffee, Colquitt, Cook, Crawford, Crisp, Dawson, Decatur, Dodge, Dooly, Early, Echols, Elbert, Emanuel, Evans, Fannin, Floyd, Franklin, Gilmer, Glascock, Glynn, Gordon, Grady, Greene, Habersham, Hall, Hancock, Haralson, Hart, Heard, Irwin, Jackson, Jasper, Jeff Davis, Jefferson, Jenkins, Johnson, Lamar, Lanier, Laurens, Liberty, Lincoln, Long, Lowndes, Lumpkin, McIntosh, Macon, Marion, Meriwether, Miller, Mitchell, Monroe, Montgomery, Morgan, Murray, Meriwether, Miller, Mitchell, Monroe, Montgomery, Morgan, Murray, Oglethorpe, Pierce, Pike, Polk, Pulaski, Putnam, Quitman, Rabun, Randolph, Schley, Screven, Seminole, Stephens, Stewart, Sumter, Talbot, Taliaferro, Tattnall, Taylor, Telfair, Terrell, Thomas, Tift, Toombs, Towns, Treutlen, Troup, Turner, Union, Upson, Ware, Warren, Washington, Wayne, Webster, Wheeler, White, Whitfield, Wilcox, Wilkes, Wilkinson, and Worth. FFY2000 Consolidated Plan for the State of Georgia H-1 Please note that the analysis included within the FFY2000 Consolidated Plan is not based on the MFI values shown in this appendix. The MFI values used within the analysis were based on the same period of time and the same metropolitan area definitions as were used for the 1990 Census. The MFI figures shown within this appendix are the most recent figures issued by HUD effective for the beginning of the State's Program Year, July 1, 2000, and are provided for informational purposes only. H-2 FFY2000 Consolidated Plan for the State of Georgia FFY2000 HUD MEDIAN FAMILY INCOME FIGURES FOR A FAMILY OF 4 - GEORGIA Jurisdiction MFI Jurisdiction MFI Jurisdiction MFI MSA/PMSA Albany $42,400 Augusta $46,600 Macon $47,300 Athens Atlanta $45,400 $63,100 Chattanooga Columbus $48,000 $41,700 Savannah --- $45,200 --- NONMETROPOLITAN AREAS Appling Atkinson $38,200 $31,700 Glascock Glynn $41,000 $48,300 Polk Pulaski $40,500 $47,400 Bacon Baker $36,400 $33,500 Gordon Grady $42,500 $34,200 Putnam Quitman $42,700 $25,800 Baldwin Banks $41,800 $50,400 Greene Habersham $36,100 $43,000 Rabun Randolph $37,300 $27,600 Ben Hill $32,300 Hall $50,300 Schley $39,300 Berrien $35,100 Hancock $35,300 Screven $36,100 Bleckley $43,200 Haralson $40,400 Seminole $33,500 Brantley Brooks $35,600 $34,200 Hart Heard $40,200 $35,700 Stephens Stewart $40,500 $29,200 Bulloch $38,600 Irwin $33,400 Sumter $36,900 Burke Butts $28,500 $43,700 Jackson Jasper $44,900 $41,300 Talbot Taliaferro $35,500 $25,300 Calhoun Camden $29,200 $42,300 Jeff Davis Jefferson $33,400 $32,000 Tattnall Taylor $31,900 $31,100 Candler Charlton $34,500 $39,200 Jenkins Johnson $31,800 $38,300 Telfair Terrell $30,500 $35,200 Chattooga $36,600 Lamar $40,300 Thomas $38,500 Clay $25,700 Lanier $31,300 Tift $38,900 Clinch $29,800 Laurens $37,200 Toombs $34,300 Coffee Colquitt $37,400 $33,800 Liberty Lincoln $32,100 $38,900 Towns Treutlen $34,500 $34,200 Cook Crawford Crisp $33,500 $46,700 $35,600 Long Lowndes Lumpkin $25,200 $39,600 $45,900 Troup Turner Union $44,000 $34,400 $38,300 Dawson $40,700 McIntosh $32,600 Upson $40,100 Decatur $33,600 Macon $29,900 Ware $37,300 Dodge Dooly $37,300 $32,400 Marion Meriwether $30,400 $33,800 Warren Washington $36,600 $39,100 Early $27,700 Miller $38,600 Wayne $38,900 Echols $27,300 Mitchell $32,500 Webster $34,300 Elbert $35,400 Monroe $50,400 Wheeler $33,200 Emanuel Evans $34,000 $36,500 Montgomery Morgan $38,900 $46,300 White Whitfield $45,100 $47,900 Fannin Floyd $34,500 $43,900 Murray Oglethorpe $41,300 $41,000 Wilcox Wilkes $33,500 $36,000 Franklin $43,000 Pierce $37,900 Wilkinson $42,300 Gilmer $34,000 Pike $48,400 Worth $36,700 FFY2000 Consolidated Plan for the State of Georgia H-3 Appendix I STATE OF GEORGIA 2000 QUALIFIED ALLOCATION PLAN FOR LOW INCOME HOUSING TAX CREDITS AND AFFORDABLE HOUSING RESOURCES The Combined Qualified Allocation Plan is prepared as a requirement of the Internal Revenue Service to receive Low Income Housing Tax Credits. The Georgia Department of Community Affairs has chosen to use this plan as a means to describe the allocation process for Tax Credits, HOME funds and State resources which are jointly available through DCA's Office of Affordable Housing. The plan provided in this appendix was adopted by DCA in December 1999. Questions regarding the Qualified Allocation Plan should be directed to DCA's Office of Affordable Housing message line (404) 679-0670. The most appropriate staff member will return reply to the message. FFY2000 Consolidated Plan for the State of Georgia I-1 2000 Georgia Qualified Allocation Plan December 1999 State of Georgia 2000 Qualified Allocation Plan for Low Income Housing Tax Credit and Affordable Housing Resources ________________________________________________________________ Georgia's 2000 Qualified Allocation Plan (Plan) sets forth: a) a description of federal and State resources available from the Georgia Department of Community Affairs (DCA) for financing rental housing affordable by low and very low income households; b) the legislative requirements for distributing these financing resources; c) the State's requirements for the location of such housing; d) the State's preferences for the type of rental housing to be developed; e) the process of evaluating funding requests and awarding of these resources; and f) program compliance requirements and procedures. The Plan is administered by the DCA through the Office of Affordable Housing (OAH). DCA is committed to making quality affordable housing available for low-income Georgians. Accordingly, the OAH will direct Low Income Housing Tax Credit (Credit), HOME, and other State resources to those projects that best address Georgia's affordable housing needs. DCA has identified areas in Georgia for targeting affordable housing resources toward both elderly and family populations based on in-depth demographic analysis. The results of this study are discussed under Project Locational Characteristics within the Project Scoring Criteria portion (Section 18) of this Plan. DCA will promote the development of affordable housing that meets DCA quality levels and that can be maintained for the Period of Affordability required by all program regulations. The 2000 Threshold analysis and project scoring criteria are designed to encourage such housing development. DCA will review each project based on economic feasibility and competitiveness. Accordingly, DCA will underwrite each project that passes Threshold and may require more documentation than the minimum established criteria. In addition, project assumptions may be adjusted to reflect characteristics more representative of the project or economic environment. In all cases, DCA will apply reasonable and customary affordable housing industry standards in the review process. DCA will determine whether an application is economically feasible in its sole and absolute discretion and DCA's determinations will be final. SECTION 1 FINANCING RESOURCES Low-Income Housing Tax Credit The annual Credit dollar amount allocated to the State of Georgia equals $1.25 multiplied by the federal government's estimate of Georgia's population. The amount of Credit available for the 2000 funding cycle will be comprised of the State's 2000 Credit allocation, returned Credit, and any national pool Credit available to the State less any Credit forward committed. The total estimated amount of Credit available for 2000 will be set forth in the 2000 Notice of Funds Available (NOFA). Owners of tax-exempt bond financed developments may be eligible for Credit in addition to the State's annual Credit ceiling. I-2 FFY2000 Consolidated Plan for the State of Georgia 2000 Georgia Qualified Allocation Plan December 1999 HOME Investment Partnerships Program (HOME) HOME funds are allocated to states annually by the U.S. Department of Housing and Urban Development (HUD) using a formula that takes into consideration the existence of substandard housing conditions and poverty levels within each state. The amount of HOME funds available to the OAH for State Fiscal Year (SFY) 2001 will be comprised of a part of the State's Federal allocation of HOME funds and state funds appropriated as a match. The Federal Fiscal Year (FFY) 2000 HOME allocation will be available to the State on July 1, 2000, following approval of the Annual Action Plan for FFY2000 Consolidated Funds (Annual Action Plan). The 2000 NOFA will set forth the approximate amount of HOME funds available to the OAH. State Housing Trust Fund for the Homeless In 1989, the General Assembly created the State Housing Trust Fund for the Homeless (HTF) to finance homeless assistance and homeless prevention programs. The OAH administers the Affordable Supportive Housing Program (ASHP) on behalf of the HTF. The approximate amount of ASHP funding and a full program description will be set forth in the 2000 NOFA. SECTION 2 LEGISLATIVE REQUIREMENTS Low Income Housing Tax Credit Program The Official Code of Georgia Annotated Title 50-26-8(a)32 gives the Georgia Housing and Finance Authority (GHFA) certain powers and authority. As the agency managing the affairs of GHFA, DCA is authorized to: "... allocate and issue low-income housing credit under Section 42 of the Internal Revenue Code of 1986, as amended, and to take all other actions and impose all other conditions which are required by federal law or which in the opinion of the agency are necessary or convenient to ensure the complete, effective, efficient and lawful allocation of and utilization of the low-income housing credit program. Such conditions may include barring applicants from participation in the tax credit program due to abuses of the tax credit program and imposing more stringent conditions for receipt of the credit than are required by Section 42 of the Internal Revenue Code..." Section 42 of the Internal Revenue Code (IRC) mandates that each state adopt an annual plan for Credit allocation. A draft version of the plan is made available for public comment and the final version is approved by the Governor. The plan applies to (1) projects awarded Credit from the states' annual allocation, and (2) projects financed by tax-exempt bonds and awarded Credit outside of the annual Credit allocation. IRC Section 42(m)(1) requires that each state: A. Set forth the project selection criteria appropriate to local conditions; B. Give preference in allocating Credit to projects that 1. serve the lowest income tenants 2. obligate to serve qualified tenants for the longest time periods; C. Establish procedures to monitor projects receiving Credit for compliance with program provisions, and to notify the Internal Revenue Service of any noncompliance issues; and, D. Consider the following in allocating Credit 1. project location 2. housing needs characteristics FFY2000 Consolidated Plan for the State of Georgia I-3 2000 Georgia Qualified Allocation Plan December 1999 3. project characteristics 4. applicant characteristics 5. participation of local tax-exempt organizations 6. tenant populations with special housing needs; and 7. public housing waiting lists. HOME Investment Partnerships Program The HOME Investment Partnerships Program regulations (24 CFR Part 92) require that each Participating Jurisdiction (PJ) distribute its HOME resources in accordance with the priorities and objectives outlined in its most current approved Annual Action Plan prepared in accordance with established HUD regulations (24 CFR Part 91). The State's Annual Action Plan for FFY2000 Consolidated Funds identifies the proposed distribution method, geographic allocation, and guidelines for meeting other federal requirements for all HOME funded programs of the State. The Annual Action Plan incorporates the Qualified Allocation Plan as the established policy and procedures for the State's review and evaluation of applications to DCA for its HOME Rental Housing Loan, HOME CHDO Loan, and HOME CHDO Predevelopment Loan programs. HTF Supportive Housing Program In 1989, the General Assembly created the HTF. The ASHP is administered by the OAH on behalf of HTF, and provides financial assistance to nonprofit developers of permanent housing for special needs households. The assistance is usually in the form of long term loans. These loans have requirements related to the continued affordability of the rents and the provision of adequate supportive social services for the residents. SECTION 3 AFFORDABLE RENTAL HOUSING NEEDS The State's Annual Action Plan identifies the housing needs of low and moderate income Georgians. Issues of cost burden, overcrowding, and substandard housing affect many households with incomes less than 60% of Area Median Income (AMI). In addition to this general population of low income households, HUD and the State consider certain other subpopulations as "Special Needs" households, including: the homeless, elderly households (EH), persons with disabilities (mental, physical, developmental), abused spouses and their children, persons with alcohol or other drug addiction, and persons living with HIV/AIDS. The State has also added migrant farm workers to this definition of Special Needs households. Applicants are referred to the State's Annual Action Plan for complete information regarding Georgia's housing need. For purposes of the competitive selection process, EH projects will be considered separately from the Special Needs projects. SECTION 4 AFFORDABLE RENTAL HOUSING OBJECTIVES The traditional approaches communities and states have used to encourage growth and development have often led to a number of undesirable consequences, including urban sprawl, decline of older neighborhoods, and degradation of critical natural resources. The traditional approaches to community development are being rewritten with new `smart growth' concepts that focus on maintenance of quality of life, management of the impact of growth, protection of the environment and a return to the more traditional, less automobile-dependent, development patterns. The 2000 Plan points scoring system is designed to reflect these concepts. Site Review scoring categories addressing terrain, floodplain/wetland protection, and neighborhood characteristics and services have been included to encourage resource protection, land conservation, open space planning techniques and smart growth principles. Project I-4 FFY2000 Consolidated Plan for the State of Georgia 2000 Georgia Qualified Allocation Plan December 1999 Characteristics scoring categories of energy efficiency project design and site design encourage sustainable building techniques and protection of existing resources. The State's Annual Action Plan establishes priorities and objectives to improve affordable housing and community development opportunities across Georgia. A major State priority established in the Annual Action Plan is to increase the number of Georgia's low and moderate income households who have obtained affordable, rental housing that is free of overcrowded and structurally substandard conditions. The mandate of the OAH is to encourage the development of quality rental housing to fulfill this priority need. To achieve this mandate, DCA makes federal and State resources available to applicants that support either of the following purposes: Provide quality affordable rental housing, designed to last at least through the Period of Affordability in those areas of Georgia having the greatest need. ? Make available quality affordable rental housing that incorporates supportive programs for Special Needs households, including the homeless, elderly households, persons with disabilities (mental, physical, developmental), abused spouses and their children, persons with alcohol or other drug addiction, persons with HIV/AIDS, and migrant farm workers. Within these broad priorities, DCA will rank all projects that meet Threshold requirements based on the following competitive scoring criteria: Project Locational Characteristics Tenancy Characteristics Special Needs Characteristics Local Government Support and Financing Assistance Project Characteristics Project Readiness to Proceed, and Compliance Status SECTION 5 NONPROFIT PROJECT OWNERSHIP SET-ASIDE Ten percent of the State's Credit is set aside for financing affordable rental housing owned, in part, by qualified Nonprofit organizations that materially participate in the project (within the meaning of Section 469(h) of the Internal Revenue Code) and meet all requirements set forth in IRC Section 42(h)(5). Nonprofits submitting Applications scoring high enough to be funded in the regular competition will not be funded from the nonprofit set-aside. SECTION 6 HOME SET-ASIDES Fifteen percent (15%) of the State's FFY2000 HOME allocation will be set aside for projects owned by Nonprofits which have been prequalified by DCA as CHDOs. CHDO's submitting Applications scoring high enough to be funded in the regular competition will not be funded from the CHDO set-aside. SECTION 7 OAH PROJECT FUNDING AVAILABILITY AND RESTRICTIONS Maximum Credit Award* No project will be awarded more than Seven Hundred Twenty Five Thousand and No/100 Dollars ($725,000) of Georgia's annual Credit authority. FFY2000 Consolidated Plan for the State of Georgia I-5 2000 Georgia Qualified Allocation Plan December 1999 Applicants will be limited to ownership interest in a maximum of three projects, of which the total Credit from the 2000 competitive funding round cannot exceed $1,450,000. Note that there is an exception to this limitation discussed in the next paragraph. This limitation applies to ownership interests of all proposed project participants, except syndicators. Any Application proposing ownership interest by a participant having proposed ownership interests in three other projects that score higher will be deemed ineligible for funding. And, Applications proposing ownership interest by a participant having proposed ownership interests in other projects scoring higher will be deemed ineligible if the additional Credit, combined with the other projects scoring higher, exceeds the $1,450,000 limitation. The one exception to the three-project/$1,450,000 limit is an Application in which a for-profit developer partners with an inexperienced Nonprofit developer. If the Nonprofit developer does not meet the owner/developer experience requirement (Section 17, Application Threshold Requirements), it can partner through a contractual agreement with a for-profit developer that does meet the experience requirement. For such Nonprofit/for-profit arrangements, none of the Credit associated with the project will count toward the for-profit's three-project/$1,450,000 limit. Maximum HOME Award The maximum DCA HOME loan will be $2,000,000 per project. Also, applicants will be limited to ownership interest in a maximum of three projects, of which the total HOME funding cannot exceed 30% of the annual HOME loan authority stated in the NOFA. This limitation applies to ownership interests of all proposed Project Participants, except syndicators. Any Application proposing ownership interest by a Participant having proposed ownership interests in three other projects that score higher will be deemed ineligible for HOME funding. Applications proposing ownership interest by a participant having proposed ownership interests in other projects scoring higher will be deemed ineligible if the additional HOME funding, (combined with the other projects scoring higher) exceeds 30% of the annual HOME loan authority. Credit Recapture: Failure to Complete Work Scope Owners of projects receiving Credit for the rehabilitation of an existing property must perform 100% of the rehabilitation work scope in accordance with the original Physical Needs Assessment submitted with the Application. Owners of properties receiving Credit for new construction must perform 100% of the work scope as set forth in the DCA approved construction drawings and specifications. DCA will inspect projects requesting IRS Form(s) 8609 to ensure that all work has been completed prior to issuing Form(s) 8609. If a lesser percentage is completed, DCA reserves the right to recapture all Credit allocated. At its sole and absolute discretion, DCA may approve requested modifications to the proposed work scope. Credit Recapture: Failure to Commence Construction/Rehabilitation* Owners of projects receiving Credit for new construction or rehabilitation in the 2000 round must commence construction or rehabilitation in accordance with their respective schedule, but in any event, no later than December 31, 2001. Failure to commence construction as scheduled will cause an automatic recapture of the Credit. DCA will closely monitor construction start dates. To certify the commencement of construction and/or rehabilitation, the project owner will be required to provide DCA with copies of project building permits, construction drawings, specifications, project construction schedule, schedule of values, and a copy of the Project Owner's Notice to Proceed to the project's general contractor. In * Not applicable to Tax Exempt Bond financed projects. I-6 FFY2000 Consolidated Plan for the State of Georgia 2000 Georgia Qualified Allocation Plan December 1999 reviewing the commencement and completion schedules, DCA, in its sole and absolute discretion, reserves the right to grant waivers on written requests. Credit Recapture: Failure to Commence work on 1998 Credit Allocations Any property which received Credit in 1998, and is applying for additional Credit in 2000 for the same 1998 project, must have completed (as of the 2000 Application submission deadline) at least 50% of that 1998 project work scope as defined in the construction documentation submitted in the 1998 Application. The construction documentation shall include drawings, specifications, written work scope, and physical needs assessments as applicable for new construction or rehabilitation projects. Credit Recapture: Failure to Pay Compliance Monitoring Fee All Compliance Monitoring Fees must be paid before final Credit allocation (IRS Form 8609) will be issued. Disqualification: Continuing Non-Compliance Principals of projects awarded Credit in previous award cycles must remain materially in compliance with Credit and HOME Program requirements (if applicable) to remain eligible to compete for future Credit awards or HOME loans. Material noncompliance status exists when, in the judgment of DCA, an applicant exhibits a continual pattern of noncompliance or when an applicant demonstrates an inability or an unwillingness to resolve noncompliance matters in a timely manner. DCA will have sole and absolute discretion to determine those parties ineligible to participate in the 2000 OAH funding competition due to noncompliance status. Disqualification: Failure to Use Previously Awarded Credit An applicant, including principals or officers of the ownership entity, awarded or allocated Credit in a previous year, which went unused for reasons other than for acts of God or the exercise of the power of eminent domain by a governmental body, will be ineligible to apply for Credit for a period of one year. An owner will be permanently barred from reapplying for Credit for the specific project for which Credit went unused and Carryover Allocation was allowed to expire. In its sole and absolute discretion, DCA may allow an Applicant who returned Credit allocated in a previous year to apply for Credit on the condition that if the Application is approved, the owner will pay a reservation fee equal to 17% of the annual allocation amount. SECTION 8 TAX-EXEMPT FINANCED PROJECTS/4% CREDIT To be eligible for an allocation of 4% Credit, tax-exempt bond financed projects must satisfy the Threshold requirements set forth in this Plan. In addition, tax-exempt bond financed projects must comply with the requirements contained in the Section 7 (OAH Funding Restrictions) of this Plan, except as noted. IRC Section 42 states that the tax-exempt bond issuer is directly responsible for determining whether or not the project meets the Plan requirements. In cases where the issuer requests assistance in making this determination, DCA will issue its opinion as to the project's 4% Credit eligibility. The project must comply with the Plan in effect at the time that the tax-exempt obligations are issued. In any case, no IRS Form(s) 8609 will be issued until DCA makes its own determination of eligibility. If owners apply for DCA's opinion, they must do so before bond closing. In making application for the opinion letter, an owner must complete the standard Application, as well as provide all supporting documentation necessary FFY2000 Consolidated Plan for the State of Georgia I-7 2000 Georgia Qualified Allocation Plan December 1999 to meet all applicable Threshold requirements and pay a $500 opinion letter fee. DCA will provide its opinion within 45 days of the receipt of a complete Application. After being placed in service, tax-exempt bond financed projects must apply for IRS Form(s) 8609 by completing a Final Allocation Application. The amount of Bond/4% Credit IRS Form 8609 Fee will be calculated as 2% of the annual credit amount and will be payable at the time of issuance of IRS Form 8609. DCA's Application review will include a physical inspection of the property to ensure the quality of construction, and a compliance review to ensure adherence to state and federal requirements relating to the Credit. DCA will make the final determination of the Credit amount. DCA will not issue a favorable opinion or 8609's when an applicant exhibits a continual pattern of noncompliance, or when the applicant demonstrates an inability or an unwillingness to resolve noncompliance matters in a timely manner. SECTION 9 DCA POLICY GUIDE The DCA Policy Guide is attached and included by reference in this Plan. This Policy Guide contains certain basic policies that must be adhered to by all applicants. Generally, a proposed project must: Meet housing and community development needs set forth in Section 3 of the Plan and be supported by market demand as determined by DCA; Meet DCA feasibility and viability standards; Meet DCA site and construction quality standards; Demonstrate readiness to proceed to loan closing and commencement of construction (with funds available to cover project costs during construction) and lease-up; Evidence lack of local government opposition, consistency with local development plans, and proper zoning and infrastructure; Identify sources of funds to pay for any amenities or services proposed; and, Consist of an ownership, development, and management team without a history of significant noncompliance problems. In awarding Credit, HOME loans, and HTF loans, DCA will, in its sole and absolute discretion, take the necessary measures to ensure that no geographic area of the State receives an undue share of the projects in any Application round. SECTION 10 2000 APPLICATION SUBMISSION DEADLINE DCA will conduct one Application cycle for OAH funds during 2000. There will be no Pre-Application process in the 2000 funding cycle. The Application must be delivered by the deadline to: Georgia Department of Community Affairs Housing Finance Division 60 Executive Park South, N.E. Atlanta, Georgia 30329-2231 The use of a third party or common carrier to deliver the Application does not relieve the applicant of its responsibility for meeting the deadline. Consequently, there will be no exceptions to this deadline. In addition, no assemblage, packaging, or other form of Application preparation will be permitted at any time on DCA premises. I-8 FFY2000 Consolidated Plan for the State of Georgia 2000 Georgia Qualified Allocation Plan December 1999 The Application is due at DCA by 5:00 p.m. on March 31, 2000. A complete Application must include one original and two copies. Additionally, applicants must pay a fee which includes the cost of a market study to be commissioned by DCA. Applicants must pay this fee at the time of Application submission (see Section 14 for additional information). The resulting market study is the sole property of DCA. However, after the competitive round is complete and reservations have been announced, each applicant will be entitled to receive one copy of their respective project's market study, upon written request to DCA. Applicants must submit complete Applications according to the directions and format prescribed in the 2000 OAH Application Manual (Manual). SECTION 11 PROJECT RECONFIGURATION/APPLICATION MODIFICATION Applicants will not be allowed to make any changes to the Application after submission to DCA without a written request and prior written approval from DCA. This provision applies to any changes proposed after Application submission, and if an award is made, throughout the project's Compliance Period. Applicants' written requests must clearly establish the importance of the change, and why it is necessary to ensure the project's long-term financial feasibility and economic viability. DCA will determine, in its sole and absolute discretion, whether or not a requested change will be authorized. The prohibition against changing any part of the Application without the prior written approval of DCA includes transfers of direct or indirect general partner's or developer's interest. Failure to abide by this provision will adversely affect the applicant's eligibility to receive future OAH funding. SECTION 12 CONFORMANCE WITH APPLICATION INSTRUCTIONS Applications must conform with all of the instructions set forth in the Manual. No additional documentation will be accepted after the Application deadline. SECTION 13 MAXIMUM NUMBER OF APPLICATIONS Applicants will be permitted to submit a maximum of five Applications for Credit and/or other OAH resources from the 2000 competitive funding round. This limitation applies to ownership interests of all proposed project participants, except syndicators. Ownership interests of all participants proposed in the applications will be reviewed, and any application proposing ownership interest by a participant having proposed ownership interests in five applications with lower project numbers, will be deemed ineligible and will not be evaluated. DCA will assign sequential Project numbers to all Applications in the order they are received, and prior to any form of Application review. SECTION 14 2000 APPLICATION PROCESSING FEES The Application processing fees indicated on pages 10 and 11 will be charged based on the legal status of the applicants. All fees must be paid by check or money order made payable to the Georgia Department of Community Affairs. FFY2000 Consolidated Plan for the State of Georgia I-9 2000 Georgia Qualified Allocation Plan FEE SCHEDULE For-Profit and For-Profit/Nonprofit Joint Ventures December 1999 2000 Tax Credit Application Fee 2000 HOME Application Fee 2000 ASHP Application Fee Waiver Review Fee (per unit cost limitation) Credit Reservation Fee Credit Compliance Monitoring Fee Credit Compliance Monitoring Fee for USDA projects or URFA issued bond issues Bond/4% Credit Eligibility Opinion Letter Fees $6,000 $500 $500 $100 Special Needs $500 - Others 7% of annual allocation $600 per low income unit $150 per low income unit $500 Bond/4% Credit IRS Form 8609 Fee Bond/4% Compliance Monitoring Fee 2% of Annual Credit Amount $600 per low income unit Probationary Participation Application Fee $1,000 Probationary Participation Compliance Fee $2,500 Due Date 3/31/00 3/31/00 3/31/00 By 2/14/00 At time reservation sent in Prior to issuance of 8609 Prior to issuance of 8609 At time of submission of Application Prior to issuance of IRS Form 8609 Prior to issuance of IRS Form 8609 At time Probationary Application is submitted At time reservation is sent in I-10 FFY2000 Consolidated Plan for the State of Georgia 2000 Georgia Qualified Allocation Plan December 1999 FEE SCHEDULE Nonprofit Sole General Partner 2000 Tax Credit Application Fee 2000 HOME Application Fee 2000 ASHP Application Fee Waiver Review Fee (per unit cost limitation) Credit Reservation Fee Fees $5,000 $250 $250 $50 Special Needs $500 - Others 7% of annual allocation Credit Compliance Monitoring Fee Credit Compliance Monitoring Fee for USDA projects or URFA issued bond issues Bond/4% Credit Eligibility Opinion Letter $600 per low income unit $150 per low income unit $500 Bond/4% Credit IRS Form 8609 Fee Bond/4% Compliance Monitoring Fee 2% of Annual Credit Amount $600 per low income unit Probationary Participation Application Fee $1,000 Probationary Participation Compliance Fee $2,500 Due Date 3/31/00 3/31/00 3/31/00 By 2/14/00 At time of reservation or when credit are syndicated Prior to issuance of 8609 Prior to issuance of 8609 At time of submission of Application Prior to issuance of IRS Form 8609 Prior to issuance of IRS Form 8609 At time Probationary Application is submitted At time reservation is sent in FFY2000 Consolidated Plan for the State of Georgia I-11 2000 Georgia Qualified Allocation Plan December 1999 SECTION 15 EVALUATION OF APPLICATIONS I. Completeness Review The 2000 OAH funding will be made available to projects through a competitive selection process. Applications received by DCA will be reviewed for completeness, as set forth in the Manual, including: Organization of the Application; Inclusion of all required Application forms; and Submission of all required supporting documents. All complete Applications will be reviewed to determine if the project meets the mandatory Threshold requirements. Generally, modification of the content of any Threshold or Scoring Criteria documentation will not be allowed after the Application submission deadline. However, those applicants failing to meet Threshold requirements will be notified in writing of the specific requirement(s) that the Application did not meet. If an applicant believes the Threshold requirement(s) was met, the Applicant must respond in writing within 15 business days from the date of the DCA notification letter. The response must provide a clear and specific explanation of why the Applicant believes DCA's initial determination was incorrect. DCA will review the response and if DCA decides that the initial determination was incorrect, the Application will be scored against the Project Selection Criteria. Additionally, DCA may allow owners to correct deficiencies in the Application if DCA does not approve a sufficient number of Applications to use all the credit authority available in an application cycle and it receives Applications that are acceptable except for minor deficiencies that the applicant can address within a reasonable amount of time (generally not to exceed 10 business days). II. Project Selection Process Only complete Applications that meet the Threshold requirements will be scored against the Project Selection Criteria set forth below. Scored Applications will be ranked in descending order by total point score. DCA will provide written notification to each applicant of the results of DCA's review. SECTION 16 DETERMINATIONS FINAL Any decision DCA makes, and any action or inaction by DCA in administering, managing, and operating the system shall be final and conclusive and shall not be subject to any review, whether judicial, administrative or otherwise, and shall not be covered by, subject to, or required to comply with or satisfy any provisions of Chapter 13 of Title 50 of the Official Code of Georgia Annotated, the "Georgia Administrative Procedure Act." I-12 FFY2000 Consolidated Plan for the State of Georgia 2000 Georgia Qualified Allocation Plan December 1999 SECTION 17 APPLICATION THRESHOLD REQUIREMENTS To be considered for OAH financing, applications must meet the following Threshold requirements: 17.1 Project Feasibility, Viability Analysis, and Conformance with DCA Policy Guide In analyzing project economic forecasts, applicants must use DCA's project economic pro forma assumptions and abide by DCA Policy Guide. These economic pro forma assumptions are set forth in the Manual and the attached Policy Guide. The proposed project must achieve a blended debt service coverage ratio of no less than 1.10 during the 15-year initial Credit Compliance Period, the full term of the HOME Loan, the HTF loan, or the Period of Affordability whichever is longer. The annual income, vacancy rate, operating cost, and replacement reserve forecasting assumptions set forth in the Manual and/or the Policy Guide must be applied in determining the debt service coverage ratio. The outstanding balance on balloon loans at loan maturity must not exceed the original loan balance, and the projected appraised value of the subject property at maturity must exceed the outstanding loan balance. With the exception of Special Needs or 100% EH projects, balloon loans will be considered for projects located only in counties with area median incomes that are equal to or below non-metro average incomes. The map on page 14 depicts these counties. Applications proposing balloon loans will be considered for Special Needs or 100% EH projects that are eligible for points under the Special Needs or EH section of the detailed Project Scoring Criteria. Applications will be reviewed to confirm project financial feasibility and economic viability. As part of this process, the type of construction and associated hard construction costs will be examined. For example, a rehabilitation work scope will be compared to the cost of new construction for the same project, the Compliance Period of the project, and the unrestricted appraised value of the completed project. Applications will not be funded if the rehabilitation of a substandard property, in the opinion of DCA, will not result in improved, safe and decent long-term housing, or if new construction would be more appropriate. A similar review of project financial feasibility and economic viability will be conducted for all Applications proposing new construction to ensure that each project's construction hard costs will produce high quality housing for the targeted tenant market. The review standards for both rehabilitation and new construction projects are as follows: The expected life of the completed property must exceed by five years the greater of the 15-year initial Credit Compliance Period, the full term of the HOME/HTF Loan, or the Period of Affordability, which ever is longer; and All construction must meet the requirements set forth in the Manual. Rehabilitation projects will be considered for funding only if the average per unit rehabilitation hard costs equal or exceed $10,000. In addition, the total hard cost of any rehabilitation project must not exceed 90% of the as-completed unrestricted appraised value of the property. The appraisal will be commissioned by DCA and will be based on market rents. Note that the cost of the appraisal will be paid by the applicant. FFY2000 Consolidated Plan for the State of Georgia I-13 2000 Counties Eligible for HOME Balloon Loans Dade Catoosa Whitfield Walker Murray Fannin Gilmer Towns Union Rabun White Habersham Ineligible Eligible Chattooga Gordon Pickens Cherokee Lumpkin Dawson Hall Forsyth Stephens Banks Franklin Hart Floyd Bartow Fulton Jackson Madison Elbert Polk Haralson Paulding Cobb Douglas Carroll Fulton Gwinnett Barrow DeKalb Walton Clarke Oconee Oglethorpe Wilkes Clayton Rockdale Newton Morgan Greene Taliaferro Lincoln Columbia Heard Coweta Fayette Henry Spalding Butts Jasper Putnam McDuffie Warren Hancock Glascock Richmond Troup Meriwether Pike Lamar Monroe Baldwin Jones Washington Jefferson Burke Harris Upson Talbot Bibb Crawford Wilkinson Johnson Jenkins Screven Muscogee Taylor Peach Twiggs Emanuel Marion Chattahoochee Macon Houston Bleckley Laurens Treutlen Candler Bulloch Effingham Schley Stewart Webster Sumter Quitman Randolph Terrell Lee Pulaski Dooly Crisp Wilcox Turner Dodge Ben Hill Montgomery Wheeler Toombs Evans Telfair Tattnall Jeff Davis Appling Long Bryan Liberty Chatham Clay Calhoun Dougherty Worth Irwin Coffee Bacon Wayne McIntosh Early Baker Miller Mitchell Tift Berrien Atkinson Colquitt Cook Lanier Pierce Ware Brantley Glynn Seminole Decatur Grady Thomas Brooks Lowndes Clinch Charlton Camden Echols N Source: Georgia Department of Community Affairs 2000 Georgia Qualified Allocation Plan December 1999 17.2 IRC Section 42 and/or 24 CFR Part 92 Gross Rent Restrictions Dwelling unit rents must conform to U.S. IRC Section 42 and/or HOME 24 CFR Part 92 gross rent (contract rent and tenant utility allowances) restrictions. Tenant utility allowances must conform to the requirements set forth in the Manual. In the event Credit, HOME, or HTF funds are requested, the most restrictive gross rents will govern. 17.3 Mandatory Maximum Rents for Projects Located in the Atlanta MSA* For low-income units included in a Credit project in the Atlanta MSA, the maximum gross rents may not exceed 30% of 54% of the effective AMI tables for the duration of the Credit Compliance Period. Applicants should assume 1.5 persons per bedroom. Applicants will be required to execute restrictive covenants to this effect. In the event an applicant seeks both HOME funds and Credit, 40% of the units must be income and rent-restricted to 50% of AMI, and the remaining units must be income restricted to 60% of AMI, or rent-restricted to 54% of AMI, if in the Atlanta MSA. Applicants should assume 1.5 persons per bedroom. 17.4 Unit Cost Limitations Per unit costs must not exceed the following: Unit Type Efficiency 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom + Cost Limit $53,000 $61,000 $74,000 $92,500 $98,500 Applicants may request cost limit Waivers if they believe extenuating circumstances exist that justify such a Waiver. However, the decision to grant such a waiver is solely DCA's, and DCA's decision will be final. Waiver requests must be submitted to DCA as early as possible, but no later than February 14, 2000, and must be accompanied by the appropriate Waiver Review Fee. DCA will respond to Waiver requests within 10 business days of receipt. When requesting a Waiver, applicants must use the Per Unit Cost Waiver Form provided by DCA. An approved Waiver must be included in the Application as evidence of DCA's approval of higher cost limits. 17.5 Site Control Site control must be in the form of (1) a Warranty Deed or a legally binding contract to purchase the proposed project site in the name of the ownership entity, or (2) a binding long-term ground lease or an option for a binding long-term ground lease, with a minimum term of forty-five (45) years. Contracts must be executed prior to Application deadline and provide legal control of the site to the proposed ownership entity at least through September 1, 2000. In the event the contract provides the ownership entity with the ability to renew the contract for specific periods of time, the ownership entity must include in the Application verifiable documentation which demonstrates that the ownership entity met the time period extensions through September 1, 2000. A copy of a recorded * Not applicable to Tax Exempt Bond financed projects. FFY2000 Consolidated Plan for the State of Georgia I-15 2000 Georgia Qualified Allocation Plan December 1999 Warranty Deed or a fully executed original contract must be submitted with the Application. Contracts must meet the specifications set forth in the Manual. 17.6 Environmental Requirements A. Environmental Study A Phase 1 Environmental Study prepared in accordance with the Environmental Review Guide contained in the Manual must be included in the Application. This Environmental Study should fully address all recommendations of the Consulting Environmental Engineer, and all such recommendations, including Phase II Environmental Studies or any additional testing, must be completed at the time of the Application. The Phase 1 Environmental Study must have been conducted within six (6) months of the Application submission date. If an Environmental Study was completed prior to this six-month period, a copy of this Study must be included with the application along with an updated Study. The updated Study must meet all requirements set forth in the Environmental Review Guide located in the Manual, in addition, to (1) details of the new reconnaissance with updated photos; (2) an update of all regulatory reviews including federal and State lists; (3) all original material and updates; and (4) a professional opinion, provided by the engineer completing the update, addressing any changed conditions to the site. B. Site Owner's Environmental Questionnaire The owner of record of the proposed development site must complete a Site Owner's Environmental Questionnaire (Questionnaire) and the applicant must include the completed original Questionnaire in the Application. The Questionnaire must be signed and notarized in the spaces provided no earlier than 30 days prior to the Application submission deadline. 17.7 Site Zoning Zoning must be in place on or before the Application submission deadline. Zoning of the development site must conform to the site development plan and must be confirmed, in writing, by the authorized Local Government Official. An original letter from the authorized Local Government Official must be included in the Application. The letter must include the zoning and land use classification of the property along with a clear explanation of the requirements of these zoning and land use classifications. If the governmental jurisdiction does not have or enforce a zoning ordinance, the Applicant must include either a site development permit, or a site development plan accompanied by an adopted resolution of the local governing body which states that the local governing body approves the site development plan. The Applicant must provide documentation that demonstrates that the site layout conforms to any moratoriums, density, setbacks, or other imposed requirements of the local government. It is the responsibility of the applicant to ensure that all issues and questions surrounding the zoning and land use classification of a proposed site are clearly defined prior to the time of Application. Any unclear or unresolved issues of zoning and land use could result in rejection of the Application by DCA. 17.8 Operating Utilities Required project operating utilities (gas and electric service), as applicable, must be available to the proposed development site as of the Application submission date. The appropriate utility company I-16 FFY2000 Consolidated Plan for the State of Georgia 2000 Georgia Qualified Allocation Plan December 1999 must confirm in writing the availability and capacity of operating utilities at the proposed development site. The original letters bearing original signatures from the appropriate utility companies must be included in the Application. Any charges for the off-site extension of utility services are not eligible for funding as project costs under OAH programs. Operating utilities cannot be contingent on annexation of the property, improvement of infrastructure or funding to the utility provider from an outside source. Verification of the annexation and improvements must be submitted with the Application. 17.9 Public Water/ Sanitary Sewer/Storm Sewer Public water and sewer service must be available at the proposed development site as of the Application submission date. The availability and capacity of public water and sewer service to the site must be documented by letter(s) from the local public water and sewer authorities. The original letters from the appropriate public water and sewer authorities must be included in the Application. Any charges for the extension of off-site services are not eligible for funding as project costs under OAH programs. Public water and/or sewer systems cannot be contingent on annexation of the property, improvement of infrastructure or funding to the utility provider from an outside source. Verification of the annexation and improvements must be submitted with the Application. 17.10 Market Feasibility* DCA will commission a market study for each Application, prepared in accordance with DCA policies. The resulting study must conclude that the proposed project is, in fact, feasible considering targeted tenancy and associated rent level requirements. An applicant may submit an independent market study; however, the DCA-commissioned market study will take precedence. The costs associated with both the DCA-commissioned market study and a market study commissioned by the applicant will be allowable development costs and will be includable in Credit basis. DCA will evaluate the impact of proposed projects on existing subsidized housing located in the geographic/market area. The market study must demonstrate that sufficient demand for rental housing exists in the proposed geographic/market area to support the proposed project. DCA reserves the right, in its sole and absolute discretion, to independently evaluate the demand for additional affordable rental housing in the geographic/market area. DCA's judgement will be the final determination. Applicants are encouraged to, submit any market information with the Application that they believe may be helpful in determining the market feasibility of their proposal. This information will be given to DCA's market analysts. By submitting this information, applicants are afforded the opportunity to provide input that may be important in the determination of market feasibility. For only those applicants who submitted market information with their Application, DCA will participate in a conference call between the Applicant and the Market Study firm, if the study concludes that the project is not feasible. DCA's determinations subsequent to such calls will be final. 17.11 Physical Needs Assessment (Rehabilitation Projects Only) For rehabilitation projects only, a Physical Needs Assessment must be included in the Application, and prepared in accordance with instructions set forth in the Manual. The assessment must be completed no more than ninety (90) days prior to the Application submission deadline. * Not applicable to Tax Exempt Bond financed projects. FFY2000 Consolidated Plan for the State of Georgia I-17 2000 Georgia Qualified Allocation Plan December 1999 17.12 Conceptual Design and Schematic Documents Conceptual design and schematic documents prepared in accordance with the instructions set forth in the Manual must be included in each Application. In addition, location maps, photographs, a description of the surroundings, and the physical address of the site, if available, must also be included in the Application. All Applications (original and copies) must have color photographs or color copies of the photographs. Black and white photographs do not meet DCA requirements. 17.13 Accessibility Requirement It is DCA's intent that all properties funded under this Plan will meet the most stringent Federal accessibility standards. Projects funded under this Plan must meet the following DCA accessibility standards by the placed-in-service date: At least 5% of the total units (but no fewer than one unit) must be equipped for the mobility disabled, including wheelchair restricted residents; At least an additional 2% of the total units (but no fewer than one unit) must be equipped for hearing and sight impaired residents; and all first floor units and all community facilities including parking lots must be accessible to the disabled in accordance with federal law. Applicants must submit in the Application a letter from the project architect or a statement must appear on the drawings indicating that the above criteria will be met. These requirements must be applied proportionally among subsidized and "market rate" units. 17.14 Preliminary Financing, Limited Partner Equity, and Other Financing Commitments* Original preliminary commitments for the types of financing listed below must be submitted with the Application: Construction financing; Non-OAH permanent financing; Equity bridge loans, if required; Any grants or other forms of assistance included in the construction period or permanent financing sources and uses statement; and Developer or general partner equity (financial statements to substantiate such equity must be included with application). The preliminary commitments must disclose, at minimum, the following: Purpose Property Address Amount of Equity Contribution (if applicable) Loan Amount (if applicable) Interest Rate Terms Fees * Not applicable to Tax Exempt Bond financed projects. I-18 FFY2000 Consolidated Plan for the State of Georgia 2000 Georgia Qualified Allocation Plan December 1999 Formal firm commitments for equity and non-DCA debt must be submitted to DCA within 75 days of DCA's announcement of awards. A project that requires some project-based rental assistance for feasibility must include in the Application a letter or notice of commitment from the administering agencies for the amount of rental assistance that will be provided, the number of units assisted, its duration, and any qualifying terms and/or conditions. Any financing source for which the applicable federal rate of interest applies must be clearly noted. DCA, in its sole and absolute discretion, reserves the right to determine the adequacy of all preliminary financing commitments submitted in the Application. 17.15 Owner/Developer Experience and Capacity (Also see the Compliance Scoring Criteria) The owner/developer (individual, corporation, or in the case of a limited partnership, the general partner(s) of a proposed development must submit documentation that demonstrates its ownership experience beginning with the development phase, through project lease-up, and extending for a period of at least three years thereafter, for at least two rental housing projects of similar size and type (in terms of the number of dwelling units and physical configuration) within the last five years. In cases where the owner is also developer of the proposed development, it must also submit documentation that demonstrates its development experience of at least two rental housing projects of similar size and type for at least three years within the last five years (in most cases, but not always, the owner/developer of the proposed project would demonstrate experience in which it was the developer of the previous projects that it also owned). The organizational entity as well as the principal staff person must meet these experience requirements. The owner/developer must submit a detailed summary of its housing development experience, including information on the role(s) played in each development, the number of units in each development, and the length of the entity's participation in every development listed in the summary. The owner/developer may include a principal's experience gained as a principal in another firm, but not as an employee of another firm. The owner/developer may not include an employee's experience with another firm. Community Housing Development Organizations (CHDOs) and Nonprofits applying for a CHDO Loan or Credit Nonprofit Set-Aside without the requisite experience may meet the Owner/Developer Experience requirement in one of two ways: (1) by submitting a partnership or contractual agreement with a for-profit developer who has the required experience as described above, or (2) by providing an executed contract with a consultant (which can be a nonprofit intermediary) who has the required experience. The partnership or contractual agreement must remain in place through project lease-up and stabilization, and must provide for the training of the inexperienced nonprofit in the housing development process by the consultant/partner as described further in the Application Manual, Consultant/Partnership Agreement Guide. All communication between DCA and the ownership entity must be through the CHDO or Nonprofit. Also, the following conditions must be met: the CHDO/Nonprofit must be eligible and compete for funding under the CHDO Loan Program or Credit Nonprofit Set-Aside; the application must include an executed agreement between the CHDO/Nonprofit and a consultant/partner describing the responsibilities of each party to the agreement for the development of the project; FFY2000 Consolidated Plan for the State of Georgia I-19 2000 Georgia Qualified Allocation Plan December 1999 the agreement must include the implementation of a housing development training plan, providing for the training of the CHDO/Nonprofit by the consultant/partner; the training plan must specify that the training services to the CHDO/nonprofit will be provided through construction, lease-up, and permanent loan conversion, and include timetables, milestones, and training hours per week; the plan must be attached to the agreement as an exhibit; and the plan must be approved by DCA at its sole and absolute discretion. DCA will monitor CHDO/Nonprofit owner/developer compliance training in accordance with the Consultant/Partnership Agreement Guide. DCA reserves the right to determine, in its sole and absolute discretion, whether a proposed owner/developer meets this criterion and whether the applicant has the capacity to successfully complete the proposed development with regard to projects in progress, prior performance in meeting construction commencement and completion deadlines as well as the number of outstanding incomplete DCA-funded developments. Grandfather Clause Owner/Developer Experience An owner/developer or an affordable housing intermediary that has previous experience with DCA, but does not meet the time requirements as prescribed in this section of the Plan may, in certain circumstances, be "grandfathered" with respect to these time requirements. This provision is subject to DCA's sole and absolute discretion. A written request must be submitted to DCA by January 31, 2000. The owner/developer must be materially in compliance on all existing and previously owned or managed properties with the Credit and HOME program requirements. Material noncompliance exists when an owner or manager exhibits either a continual pattern of noncompliance or demonstrates an inability or unwillingness to resolve noncompliance matters in a timely manner. DCA reserves the right to perform a full criminal, employment, and credit investigation of all Project Participants, excluding the syndicator (developers, owners/general partners, and management companies). 17.16 Nonowner/Developer's Experience and Capacity (Also see Compliance Scoring criteria) The criteria in this Section apply if the developer is not also the owner or a partner in the ownership structure, or does not have an identity of interest with the owner: The developer of a proposed development, if unrelated to the owner, must submit documentation that demonstrates its experience of development of at least two rental housing projects of similar size and type for at least three years within the last five years. The developer must submit a detailed summary of its housing development experience, including information on the role(s) played in each development, the number of units in each development, and the length of the entity's participation in every development listed in the summary. The developer may include a principal's experience gained as a principal in another firm, but not as an employee of another firm. Nor may the developer include an employee's experience in another firm. CHDOs and Nonprofits applying for a CHDO Loan or Credit Nonprofit Set-Aside without the requisite experience may meet the developer experience and capacity requirement in one of two ways: by (1) providing a partnership or contractual agreement with a for-profit developer who has the required experience as described above, or by (2) providing an executed contract with a I-20 FFY2000 Consolidated Plan for the State of Georgia 2000 Georgia Qualified Allocation Plan December 1999 consultant (which can be a nonprofit intermediary) who has the required experience. The partnership or contractual agreement must remain in place through project lease-up and stabilization, and must provide for the training of the inexperienced nonprofit in the housing development process by the for-profit or consultant/partner as described further in the Manual, Consultant/Partnership Agreement Guide. All communication between DCA and the ownership entity must be through the CHDO or Nonprofit. Also the following conditions must be met: the CHDO/Nonprofit must be eligible and competing for funding under the CHDO Loan Program or Credit Nonprofit Set-Aside; the application must include an executed agreement between the CHDO/Nonprofit and a consultant/partner describing the responsibilities of each party to the agreement for the development of the project; the agreement must include the implementation of a housing development training plan, providing for the training of the CHDO/Nonprofit by the consultant/partner; the training plan must specify that the training services to the CHDO/Nonprofit will be provided through construction, lease-up, and permanent loan conversion, and include timetables, milestones, and training hours per week; the plan must be attached to the agreement as an exhibit; and the plan must be approved by DCA at its sole and absolute discretion. DCA will monitor CHDO/Nonprofit owner/developer training compliance with the Consultant/Partnership Agreement Guide (available in the Manual). DCA reserves the right to determine, in its sole and absolute discretion, whether a proposed developer meets this criterion and whether the applicant has the capacity to successfully complete the proposed development with regard to projects in progress, prior performance in meeting construction commencement and completion deadlines, as well as the number of outstanding incomplete DCA-funded developments. Grandfather Clause Developer Experience A developer or affordable housing intermediary that has previous experience with DCA, but does not meet the time requirements as prescribed in this section of the 2000 Plan may, in certain circumstances, be "grandfathered" with respect to these time requirements. This provision is subject to DCA's sole and absolute discretion. A written request must be submitted to DCA by January 31, 2000. The developer must be materially in compliance on all existing and previously owned or managed properties with the Credit and HOME program requirements. Material noncompliance exists when an owner or manager exhibits either a continual pattern of noncompliance or demonstrates an inability or unwillingness to resolve noncompliance matters in a timely manner. DCA reserves the right to perform a full criminal, employment, and credit investigation of all Project Participants, excluding the syndicator (developers, owners/general partners, and management companies). 17.17 Management Company's Experience (Also see Compliance Scoring Criteria) The proposed property management company of a proposed development must submit documentation that demonstrates its management experience beginning with the development leaseup phase and extending for a period of at least three years thereafter, for at least one rental housing project of similar size and type (in terms of the number of dwelling units and physical configuration) within the last five years. The proposed management company must submit, with the application, a FFY2000 Consolidated Plan for the State of Georgia I-21 2000 Georgia Qualified Allocation Plan December 1999 detailed summary of its housing management experience, including information on the role(s) played in each development, the number of units in each development, and the length of the entity's participation in every development listed in the summary. DCA will determine whether a proposed property management company meets this criterion in its sole and absolute discretion, and its determinations will be final. Grandfather Clause Management Company Experience A management company that has previous experience with DCA, but does not meet the time requirements as prescribed in this section of the 2000 Plan may, in certain circumstances, be "grandfathered" with respect to these time requirements. This provision is subject to DCA's sole and absolute discretion. A written request must be submitted to DCA by.January 31, 2000. The management company must be materially in compliance on all existing and previously owned or managed properties with the Credit and HOME program requirements. Material noncompliance exists when an owner or manager exhibits either a continual pattern of noncompliance or demonstrates an inability or unwillingness to resolve noncompliance matters in a timely manner. DCA reserves the right to perform a full criminal, employment, and credit investigation of all Project Participants, excluding the syndicator (developer, owners/general partners, and management companies). 17.18 Eligibility for Credit under the Nonprofit Set-Aside To be eligible for Credit under the Nonprofit Set-Aside: The organization must be a qualified Nonprofit, defined as a 501(c)(3) or 501(c)(4) organization, which is not affiliated with or controlled by a for-profit organization and has included the fostering of low-income housing as one of its tax-exempt purposes. The Nonprofit may be the sole general partner of the ownership entity or a general partner with another qualified organization meeting the experience requirements set forth above and must materially participate in the project as described in IRC Section 42(h)(5)(B). The Nonprofit must be the managing general partner of the ownership entity. If the Nonprofit is a general partner with another entity, the Nonprofit must have at least 51% of the ownership of the general partnership interest (or wholly-owned and controlled affiliate). The Nonprofit must receive a percentage of the developer's fee greater than or equal to the percentage of the ownership interest. A copy of the general partnership joint venture agreement which indicates the Nonprofit's general partnership interest and developer's fee amount must be included in the Application; and, Nonprofit organizations applying for Credit under the Nonprofit Set-Aside must include in the Application an opinion of an attorney who specializes in tax law on the Nonprofit's current federal tax exempt qualification status in accordance with the prescribed format contained in the Manual. If such an opinion has been previously obtained, this requirement may be satisfied by submitting the opinion with documentation demonstrating that the Nonprofit's bylaws have not changed since the legal opinion was issued. 17.19 Eligibility for HOME Loans under the CHDO Set-Aside Any Nonprofit applying for HOME funds under the CHDO Set-Aside must be pre-qualified by DCA as a 2000 State CHDO as of the Application submission deadline. Also, the Nonprofit must be either the sole general partner of the ownership entity or a general partner with another entity. The CHDO must be the managing general partner of an ownership entity. In the event the CHDO is a general partner with a for-profit or Nonprofit general partner, the CHDO must own at least 51% of the I-22 FFY2000 Consolidated Plan for the State of Georgia 2000 Georgia Qualified Allocation Plan December 1999 general partnership interest. The CHDO (or a wholly-owned or controlled affiliate) must receive a percentage of the developer's fee greater than or equal to the percentage of ownership interest. All DCA communication with the ownership entity will be with the CHDO managing general partner. A copy of the general partnership/joint venture agreement indicating the CHDO's general partnership interest and its share (or the share of the wholly-owned and controlled affiliate) of the developer's fee must be included in the Application. A copy of the State CHDO pre-qualification letter must also be included in the Application. 17.20 Local Government Understanding Considering the impact affordable housing developments potentially have on local planning efforts, DCA recognizes the value of involving respective local governments in preparing affordable housing development proposals. DCA will encourage such involvement by requiring that, minimally, local governments not be opposed to proposed affordable housing developments, and by offering scoring points for proposals that are actively supported by the respective local government (see Section 14, part IV for discussion of this Project Scoring Criterion). The demonstration of local government non-opposition is a Threshold requirement. Applicants must notify the respective local government of the proposed project and should obtain from the local government's controlling elected body or official (as specified in the government's respective charter) a letter in the form provided by DCA in the Application indicating that it understands the nature of the proposed project and does not oppose the project. This letter should acknowledge awareness of the project type, number of units, and specific location, and should clearly express the local government's lack of opposition to the project. This original letter and attached resolution or documentation authorizing the signer of the letter to represent the local government's views should be included in the Application. Although DCA strongly prefers a statement of non-opposition, DCA also recognizes that some local governments may elect not to comment. In the event a local government chooses not to comment on the project proposal, the applicant must document its efforts to obtain local government comment and submit this documentation in the Application. Documentation of attempts to obtain local government non-opposition, in lieu of a non-opposition letter, must be submitted in the form of a copy of correspondence to the local government seeking non-opposition or support, along with certified mail receipt, UPS or Federal Express tracing form, or other evidence of ground carrier delivery. DCA will assume that local governments that do not express a position on a proposed project are not opposed to that project. In addition to this requirement, DCA will notify the chief elected official of the local jurisdiction where the proposed project is to be located that the project is being considered and provide the chief elected official with project details (as required in Section 42(m)(1)(A)(ii) of the Internal Revenue Code). DCA will allow the local jurisdiction 30 days to respond to this notification. It is important that applicants communicate with local officials about the project and recognize that a local jurisdiction may establish or change its position at any time. Written letters of opposition received in response to DCA's notice within this 30-day comment period will supercede any prior agreement, implication, or statement of non-opposition. 17.21 HOME-Funded Project Location Applicants will be awarded HOME funds only if the proposed project is located outside of the political boundaries of any entity designated as a local Participating Jurisdiction (PJ) by HUD. These local PJs include the cities of Albany, Atlanta, Macon, and Savannah; DeKalb and Gwinnett FFY2000 Consolidated Plan for the State of Georgia I-23 2000 Georgia Qualified Allocation Plan December 1999 Counties; the consolidated governmental units of Athens-Clarke County, Augusta-Richmond County, Clayton County, and Columbus-Muscogee County; and the counties and cities comprising the Georgia Urban County Consortium (Cobb, Marietta, Cherokee, Canton) and the Fulton County Consortium (Fulton, Roswell). Two exceptions to the non-PJ location requirement are those organizations applying to the CHDO Loan Program, and those applicants whose project will serve a Special Need population and received points as a Special Needs Project (does not include EH projects). 17.22 Federally Debarred & Suspended Entities Any person (individual, corporation, partnership, association), principal (officer, director, owner, partner, key employee, or person who has critical influence), or agent for a Project Participant that is under debarment, proposed debarment, or suspension by a federal agency is ineligible to participate in the 2000 competitive round. Such Applications will be rejected. Each applicant must also include in the Application a statement concerning all criminal convictions, indictments, and pending criminal investigations of all general partners, and provide dates and details of each circumstance, unless otherwise prohibited by court order, statute or regulation. DCA reserves the right to perform a full criminal, employment, and credit investigation of all parties (developer, owner, and management company) identified above. SECTION 18 PROJECT SCORING CRITERIA The 2000 Project Scoring System is summarized on the table below, and is detailed on the following pages. The maximum total score possible for the 2000 funding round is 200 points. However, project applications must score a minimum of 100 points to be eligible for OAH funding. Projects that score less than 100 points will not be considered for funding awards, irrespective of funding availability. The Project Scoring Criteria are intended to direct applicants toward developing housing located in the State's areas of greatest need, that are positioned on sites having the most attractive characteristics, and for which local support exists and proper planning has been performed. If two or more projects with equal scores ("tie") otherwise qualify for Credit (and/or other OAH funding) but sufficient resources are not available to fund all such projects, DCA, at its sole discretion, will determine which project(s) will be funded with available resources. If a project which met the minimum score does not receive a reservation because the amount of Credit available has been exhausted, that project, subject to DCA approval, will be placed on the waiting list for that year's Credit ceiling. Projects for which no reservation was made may compete again in a subsequent year. I-24 FFY2000 Consolidated Plan for the State of Georgia 2000 Georgia Qualified Allocation Plan December 1999 PROJECT SCORING SUMMARY 18.1 APPLICATION COMPLETENESS/ORGANIZATION A. Complete Application B. Organization 18.2 PROJECT LOCATIONAL CHARACTERISTICS A. Project Need B. Site Review 18.3 TENANCY CHARACTERISTICS A. Development or Tenant Support Program B. Special Needs C. Very Low Income Tenancy Exceeding Requirements D. Mixed Income E. Extended Use Period 18.4 GOVERNMENT SUPPORT AND FINANCING ASSISTANCE 18.5 PROJECT CHARACTERISTICS A. Neighborhood Redevelopment B. Energy Efficiency Requirements C. Project Design D. Project Amenities . E. Ownneerrship Makeup 18.6 READINESS TO PROCEED 18.7 COMPLIANCE STATUS TOTAL POSSIBLE SCORE Total Score Value 3 2 45 40 15 8 8 8 2 15 12 4 9 15 2 2 -20 to +10 200 FFY2000 Consolidated Plan for the State of Georgia I-25 2000 Georgia Qualified Allocation Plan PROJECT SCORING CRITERIA December 1999 18.1 APPLICATION COMPLETENESS/ORGANIZATION A. Completeness Scoring Value: 3 points All required Application forms and supporting documentation are included and complete at the time of original submission. For each missing or incomplete document, one point will be deducted up to a total of three points; B. Organization Scoring Value: 2 points The Application is organized in the format prescribed by DCA in the Manual. 18.2 PROJECT LOCATIONAL CHARACTERISTICS A. Project Need Scoring Value: 45 points DCA has completed two multifamily locational scoring models designed to identify those areas in Georgia having the greatest need for affordable multifamily housing. The first model is based on both total and relative unmet need by households with incomes between 30% and 60% of area median income (AMI). The second model addresses total unmet need for affordable housing for elderly (age 62+) citizens with incomes between 30% and 60% of AMI. Both models have total possible scores of 45 points, but only one model will apply to each application. As defined by this Plan, EH projects must be 100% EH. Such proposals should refer to the Elderly Households Multifamily Locational Map on Page 27 of this Plan to determine the scoring values for EH projects, those projects proposed for families including less than 100% EH units, should use the General Multifamily Locational Map on Page 28 of this Plan. The data used to develop this Plan's locational scoring maps are based upon an in-depth study that balanced Georgia's demand for affordable housing with the existing supply. The first model includes all residents of each county with incomes between 30% and 60% of AMI, and assumes that elderly individuals may wish to live in a housing complex where younger families may also reside. Total unmet need is the difference between the estimated number of households with incomes between 30% and 60% of AMI and the supply of rental units affordable to those households (e.g., units that would require an expenditure of 30% of monthly household income or less for rent). Counties with total unmet need of less than 30 units were excluded from the ranking, in recognition of the difficulty of supporting an affordable housing site in such counties. Relative unmet need is a ratio calculation that allows DCA to take into account the needs of smaller counties. In these counties, the actual number of units needed may be much lower than in larger counties, but may represent a relatively high level of affordable housing need for these smaller counties. The ratio is calculated by dividing the number of households with incomes between 30% and 60% of AMI by the number of affordable rental units available in that county. I-26 FFY2000 Consolidated Plan for the State of Georgia 2000 Georgia Qualified Allocation Plan Map December 1999 FFY2000 Consolidated Plan for the State of Georgia I-27 2000 Georgia Qualified Allocation Plan Map December 1999 I-28 FFY2000 Consolidated Plan for the State of Georgia 2000 Georgia Qualified Allocation Plan December 1999 Total and relative unmet need calculations for each county were then weighted to create an overall ranking for each county. Total unmet need was given a weight of .75, and relative unmet need was given a weight of .25. Once the overall rankings were created, locational scoring points were assigned. Counties with the greatest need as demonstrated by their overall ranking were assigned 45 points. Counties with the least need as demonstrated by their overall ranking received no points. The General Multifamily Locational Map illustrates the points assigned to Georgia's 159 counties, for family developments. The need for EH rental housing was addressed through a model that used total unmet need for households headed by persons 62 years of age or older. The demand for affordable multifamily housing for EH was determined through an estimate of the number of those households in each county with incomes falling between 30% and 60% of AMI. The supply data were obtained from DCA, the Department of Housing and Urban Development, and the U. S. Department of Agriculture. Since some properties may not have been identified as elderly in existing sources of information, the actual supply of affordable housing may be somewhat greater than shown by these calculations. Both the General Multifamily Locational Map and the EH Multifamily Locational Maps are intended as general guidance only, and should not be considered a guarantee that there is necessarily an adequate market demand for projects proposed in high-scoring counties. Although a county may have an overall need for affordable housing, a specific market for rental units at or approaching program maximums may not exist. Therefore, DCA will rely on the project specific market study in assessing the market demand for each project proposal. The total unmet need for EH housing was then scored for each county. Counties with a total unmet need of less than 30 units were excluded from the ranking, in recognition of the difficulty of supporting an EH affordable housing site in those counties. A maximum of 45 points will be awarded for the location of proposed EH affordable housing. The EH Multifamily Locational Map illustrates the results of the points assigned to Georgia's 159 counties for EH projects. B. Site Review Scoring Value: 40 points DCA will inspect all proposed development sites during the Application review process. DCA will consider some activities and/or land uses (commercial, residential or industrial) that occur within proximity of the development to be undesirable. All sites presented for development must have all access roads in place at the time of application. Any property that is located in an undeveloped area where access roads do not exist is not eligible for consideration. This restriction does not include private driveways to the site from an adjacent access road. (See categories below for more information). No funding will be available for off-site development including, but not limited to, road development and access to utilities. DCA will determine, at its sole and absolute discretion, sites that are not suitable for the proposed development. Points under this category will be awarded based on the following characteristics: 1. Terrain Characteristics: A desirable site is one that is relatively flat or has existing slopes less than 15% for at least 80% of the property. The site shall not have bodies of water within the boundaries unless the cost of the project includes a plan for managing that body of water and the plan FFY2000 Consolidated Plan for the State of Georgia I-29 2000 Georgia Qualified Allocation Plan December 1999 must be included in the Application. Little or no regarding or fill would be required to obtain optimum drainage patterns. If the site has an existing slope of 10% or less for at least 80% of the area, 10 points will be awarded. If the site has an existing slope between 10% and 15%, for at least 80% of the area, five points will be awarded. 2. Undesirable Site Characteristics DCA considers the following site characteristics undesirable. Ten points will be deducted for each of the following characteristics. DCA reserves the right to determine whether or not a site characteristic or feature is undesirable. The characteristics that will result in a points deduction in this category are: A site where the combined area of any easements and/or other building limitations on the property exceed 20% of the area of the site. (Note this deduction does not apply to excess areas of steep configuration, wetlands and 100 year floodplains. Refer to parts 1 and 5 of this Section). A site that has a steep access slope (either up or down) in excess of 15%, even if this sloped area does not exceed 20% of the site area. This steep slope area will result in a points deduction only if it is an area that must be developed for the proposal to be viable, i.e. access to property or to meet the density requirement below. (DCA does not allow development of 100-year floodplain areas or wetlands in excess of minimum Army Corps of Engineers national limit.) A site where the density is less than 5 units per acre. A site surrounded by, adjacent to (on two or more sides) unpaved roads, or if the property is not accessible by paved roads. 3. Neighborhood Characteristic A. Residential development is adjacent to site. This residential use is adjacent to one side of the site as a minimum, or directly opposite the site and across the main access road, and the housing is part of a stable, occupied neighborhood. The proposed site is not adjacent to or surrounded by uses that are "undesirable" (as addressed under Neighborhood Services) for residential development. Six points will be awarded if these criteria are met. B. The site is a cleared piece of 'infill' property, or an 'infill' property containing existing buildings proposed for rehabilitation. The site is within a stable, established neighborhood or community and will maximize the use of existing transportation, utilities, and infrastructure. Applications that would require the demolition of entire improvements existing on the site will be eligible for these points if the project's cost remains within cost limitations set forth in this Plan. Five points will be awarded if these criteria are met. 4. Neighborhood Services Points will be awarded for each desirable activity and points will be deducted for each undesirable activity. I-30 FFY2000 Consolidated Plan for the State of Georgia 2000 Georgia Qualified Allocation Plan December 1999 A desirable site is one located within a one-mile (1/4 mile for infill sites) walking distance along all-weather or paved sidewalks, to activities suitable for the proposed tenant base. Desirable activities are defined as but not limited to retail, recreation, libraries, schools, day care, hospital, employment centers, and civic centers. Undesirable activities are located within mile of the proposed site and are defined as, but not limited to: junk yards; liquor store; hazardous or chemical activities; sources of noise, odor, or other nuisance pollution; and locations identified by local law enforcement officials as gathering places for criminal activity. It should be noted that for projects located in urban areas, certain activities ordinarily considered undesirable will be evaluated relative to overall project type and value to the community Documentation must be provided in the form of a map indicating location of all desirable and undesirable activities along with a key for the map indicating the type of activity. This map may be combined with the location map provided all information is clearly represented. The map should be presented with both photographs of the site and the surrounding neighborhood. All photographs are to be either color originals or color copies. Black and white photographs are not acceptable. The map shall include as a minimum: Location of site including an indication of major access roads; Indication of distances in 1/2 mile and one mile increments; Areas of residential development adjacent to or near the site; Indication of any major industrial or commercial development that would impact the site in a positive or negative manner; and, Services such as retail, schools, day care, parks, employment areas, hospitals, etc. A maximum of five points will be awarded. A negative total will be awarded zero points. 5. Wetlands and Flood Plains The allowable areas of wetland and/or flood plain on the property must not exceed 20% of the total site area. If this criterion is met, nine points will be awarded. Note, however, that under no circumstances can wetlands be disturbed in excess of the limits set by Army Corps of Engineers during the construction phase or during the Period of Affordability. (NOTE: Applications that propose construction of buildings in flood plain areas will fail to pass this Plan's Threshold Criteria.) Maps are required to document the existence or absence of these areas, and to illustrate the delineation of both the wetlands and floodplain areas on the site. Maps can be obtained from the Local Authorities, US Geological Survey, Army Corps of Engineers, or the Federal Emergency Management Agency. 6. Visibility/Accessibility If a site is visible from the primary road with a frontage of at least 100-ft. from the road to the nearest building location, three points will be awarded. If a site has easy vehicular and pedestrian access to adjacent streets and is within 1/2 mile of public transportation or a primary road, two additional points will be awarded. FFY2000 Consolidated Plan for the State of Georgia I-31 2000 Georgia Qualified Allocation Plan December 1999 18.3 TENANCY CHARACTERISTICS A. Development or Tenant Support Program Scoring Value: 15 points The proposed project is a component of the Local Public Housing Agency's (PHA) tenant initiative program (including the PHA's development program or project), as evidenced by: (1) the PHA's investment in the project's physical plant and/or contribution to the long-term economic feasibility of the project via operating cost contributions or tenant rent subsidies for a minimum period of five years; and (2) an executed agreement between the PHA and the project ownership entity setting forth the project ownership entity's responsibility to rent dwelling units to public housing tenants. The PHA's investment must come from a source independent of the project. Developer fees earned or deferred by the PHA on the subject project, a loan (or any other form of debt) from a PHA, funds from any non-PHA general partner, limited partner, or other development team member will not be considered a PHA investment in the project. To be eligible for scoring points under this criterion, the applicant must include in the Application a copy of the executed agreement between the ownership entity and the PHA. The executed agreement must set forth the type, term and amount of the PHA's equity investment to the proposed project and/or the PHA's long-term equity contribution to the long-term (at least five years) economic feasibility of the project via operating cost contributions and/or tenant rent subsidies as well as the number and type of rental units the proposed owner will hold and rent to public housing tenants. "Hold and rent" means that the applicant agrees to rent the designated units exclusively to public housing tenants or households currently on a PHA waiting list. Scoring points under this criterion will be awarded as follows: Rental Assistance and/or Equity Investment 10% of units reserved and rented to public housing tenants 20% of units reserved and rented to public housing tenants 30% of units reserved and rented to public housing tenants (5 points) (10 points) (15 points) These points will not be available to units that are also eligible for points under Section 18.3 (C), "Very Low Income Tenancy Exceeding Mandatory Requirements." B. Special Needs Scoring Value: 8 points Special Needs (excluding elderly households) The applicant agrees to hold and rent at least 50% of the total project dwelling units to Special Needs households as defined in Section 3 (excluding EH), Affordable Rental Housing Needs. The applicant must provide the supportive services applicable to the designated Special Needs tenants, and must demonstrate that the project can be self-supporting with available resources, including rent subsidies as necessary. Applicants must satisfy the following requirements to qualify for the scoring points: 1. Submit a detailed letter of intent to provide rental assistance from the Georgia Department of Human Resources, U.S. Department of Housing and Urban Development, or another federal or State rental assistance provider. A final binding contract for the rental subsidy must be submitted before HOME construction loan closing or Credit carryover, I-32 FFY2000 Consolidated Plan for the State of Georgia 2000 Georgia Qualified Allocation Plan December 1999 whichever is earlier. If the market study substantiates sufficient demand among Special Needs households who can pay HOME and/or Credit rents without the use of subsidies, the project will qualify for points under this criterion; and 2. Submit a detailed letter of intent from an experienced, licensed provider for the appropriate services. A final, binding contract for the proposed services must be submitted before HOME construction loan closing or Credit Carryover, whichever is earlier. Any proposed changes of supportive services providers from those proposed in the initial Application must be approved by DCA prior to contracting with that service provider. Owners will be required to submit annual certifications and documentation regarding the ongoing provision of the Supportive Services. Elderly Households Affordable housing for EHs (head of household or spouse aged 62 years or older) is identified as a housing need in the State of Georgia. Applicants proposing to develop housing exclusively for EHs will be awarded 8 points if all of the following conditions are met: 1. Amenities 100% of the units will be accessible and adaptable (as defined by the HUD Fair Housing, the Americans with Disabilities Act, and Section 504). All units will have an installed monitoring call system, including a buzzer and light to the exterior. For one-story projects, all units will have sheltered exterior areas such as porches or patios. In buildings that are not garden style, lobbies and corridors must have small gathering areas in several locations. All properties must include community spaces or a community building. The site will have sheltered exterior gathering areas such as a gazebo located in a central area or large covered porch at the community building. Amenities must be appropriate to the resident age group, and include physical improvements on the site such as attractively fenced community gardens, equipped walking path with exercise stations or sitting areas, and equipped picnic areas. Elevators must be provided for access to units above the ground floor. Applicants must submit, in the Application, a letter and drawings from the project architect, and the drawings must indicate that the above criteria are met. 2. Supportive Services Supportive services including transportation services, recreational activities, and wellness/healthcare activities (exercise, seminars, and screenings) must be provided. These services may be provided at a charge sufficient to cover the cost of the supportive services only, but the services must be clearly optional to the tenants. An activities manager will be allowed in the operating budget only for those properties that are 150 units or more in size; temporary staffing during lease-up to handle activities set-up and sign-up will be considered on a case-by-case basis. Evidence must be provided in the form of executed conditional contracts with experienced, licensed service providers for the supportive services proposed in the FFY2000 Consolidated Plan for the State of Georgia I-33 2000 Georgia Qualified Allocation Plan December 1999 Application. A final, binding contract for the proposed supportive services must be submitted before the HOME loan closing or Credit Carryover, whichever is earlier. Any proposed changes in the supportive services providers from the initial application submission must be approved by DCA prior to entering into a contract with that service provider. Owners will be required to submit annual certifications and documentation regarding the ongoing provision of the supportive services. C. Very Low Income Tenancy Exceeding Requirements Scoring Value: 8 points Applicants reserving and renting dwelling units with rents affordable by very low income households, those earning annual gross incomes of 50% or less of the area median income, serve a very pressing housing need in Georgia. Projects that reserve and rent more than the minimum number of dwelling units to lower-income households than is required by the appropriate program will be awarded additional scoring points. Owners will be required to execute restrictive covenants stipulating the number of dwelling units to be reserved and rented to very-low income households for the term of the Credit Compliance Period or the term of the HOME loan, whichever has the longest duration. Points will be awarded as follows: Percentage of units beyond program minimum 5-20 21-40 41+ (6 points) (7 points) (8 points) These points will not be available for developments that are also eligible for points under Section 18.3 (A), "Development or Tenant Support Program" unless the applicable units are in addition to the public housing units. In scoring points for these criteria, DCA will round down to the nearest percentage point. D. Mixed Income Projects Scoring Value: 8 points Projects designed for both low-income and market-rate tenants are eligible to receive points if 40% to 80% of project units are designated for low-income and/or very low income tenants. E. Extended Use Period Scoring Value: 2 points These points are not available to projects requesting HOME funds. Section 42 of the Internal Revenue Code requires that all low-income units in a project receiving Credit remain rentrestricted and income-restricted for the 15-year Compliance Period and for 15 years after the close of the Compliance Period. However, owners have an option to request DCA's assistance in procuring a qualified contract for acquisition of the building(s) after the 14th year of the Compliance Period. If DCA is unable to present such a contract within a one-year period, the owner may terminate the extended use agreement. Owners willing to forgo this "cancellation option" for at least five years after the close of the Compliance Period will be eligible for two points. Agreement to forgo this option will be included in the Land Use Restrictive Covenants as part of the Terms of Agreements. I-34 FFY2000 Consolidated Plan for the State of Georgia 2000 Georgia Qualified Allocation Plan December 1999 18.4 GOVERNMENT SUPPORT AND FINANCIAL ASSISTANCE Scoring Value: 15 points DCA encourages all low-income housing development teams to coordinate project developments with respective local governments. Applicants who obtain Local Governments support for their proposed project will be awarded three points. And, if financial assistance is obtained in accordance with the criteria outlined below, additional points (maximum of 12) will be awarded. A. Local Government Support Three points will be awarded if the controlling elected governing body of the local jurisdiction (as defined in its Charter) in which the property is located at the time of Application (e.g., city council if within the city limits, or county commission if in an unincorporated area), adopts a resolution of support for the proposed project. The resolution must clearly indicate that the local government understands the nature of the proposed project by identifying at a minimum, the type of project, the number of anticipated units, and the specific project location. Additionally, the resolution must clearly express the local government's support of the proposed project, as opposed to merely expressing indifference. If the local jurisdiction is governed by only one elected official (as specified in its Charter), a letter from the elected official outlining all the information required in the governing body resolution will be accepted in lieu of a resolution. An original letter in the form provided by DCA, with an attached certified copy of the resolution (or letter if the jurisdiction is governed by only one elected official in accordance with its Charter) must be included in the application. B. Government Financial Assistance Up to 12 points will be awarded if the respective local government reduces project development costs, if the jurisdiction in which the project is located funds the project with HOME or CDBG funds, or if USDA funding is obtained. Local governments must reduce total project development costs through: waiver of water and sewer tap fees; waiver of building permit fees; foregoing real property taxes during construction; contribution of land for project development; providing below market rate construction and/or permanent financing; providing an abatement of Real Estate taxes; providing other project operational cost subsidies, and/or; other contributions. USDA, CDBG, and HOME funding must be obtained in the form of loans, rental assistance, or both. Points under this scoring category will be calculated based on the percentage reduction in total project cost and/or project operating cost subsidies, as follows: 3% total project cost and/or annual operating cost reduction - (6 points) 7% total project cost and/or annual operation cost reduction - (12 points) USDA Financing - (12 points) FFY2000 Consolidated Plan for the State of Georgia I-35 2000 Georgia Qualified Allocation Plan December 1999 Documentation from the Local Government clearly showing the types, amounts, and terms and conditions, along with a letter from the chief executive officer of the local government certifying the local government's contribution to the proposed project's development and/or operation must be included in the Application. PHA assistance does not qualify for points in this section. In the case of USDA funding, documentation in the form of a USDA "notification of award" letter must be included in the Application. In the case of CDBG and HOME funds contributed by a participating jurisdiction, a firm financing commitment must be included in the Application. 18.5 PROJECT CHARACTERISTICS A. Neighborhood Redevelopment Scoring Value: 12 points Twelve points will be awarded to project proposals that specifically address neighborhood revitalization as part of an organized community commitment. This commitment must be reflected in the following ways: Project ownership must include a community-based non-profit organization, in existence for a minimum of 12 months prior to the Application deadline for Credit and Home Loan funding, that can demonstrate ongoing revitalization efforts in the community in which the project is proposed. The Non-profit must materially participate within the meaning of IRC 469(h) in the development and ongoing management of the project. The non-profit organization must have a Board of Directors which includes community leaders, and must have bylaws that indicate that the non-profit has as a primary objective the revitalization of a defined community area that includes the location of the proposed project. The Application for funding must include documentation that provides evidence of revitalization activities that have occurred in the targeted area or that are included in a formal plan adopted by the non-profit organization's Board or by the respective local government. DCA will determine in its sole and absolute discretion those Applications that qualify for Neighborhood Redevelopment points. Applications that DCA determines qualify as Neighborhood Redevelopment projects may receive special consideration with regard to undesirable characteristics. If the Applicant includes in its Application a plan, acceptable to DCA, for mitigating existing undesirable characteristics associated with the project proposal, then points will not be deducted for these undesirable characteristics under the Neighborhood Services sections of the scoring criteria. It should be noted that although a community-based non-profit entity (as defined above) is required for qualification under this section of the Plan, for-profit organizations will be permitted to partner with such nonprofit entities on Neighborhood Redevelopment projects. In such instances, funding for these projects will not be counted toward the for-profit's funding cap. However, the nonprofit must have at least 51% ownership of the general partnership interest (or wholly-owned and controlled affiliate), and must receive a percentage of the developer's fee greater than or equal to the percentage of ownership interest. B. Energy Efficiency Requirements Scoring Value: 4 points To receive these points, projects must exceed the Georgia Energy Code, and the applicant must provide an original letter from the registered architect or engineer of record for the I-36 FFY2000 Consolidated Plan for the State of Georgia 2000 Georgia Qualified Allocation Plan December 1999 project. The letter must clearly state that the entire construction exceeds (not "meet or exceeds") the Georgia Energy Code. This letter must also include the following: Statement of insulation envelope elements, including the R-value for all components and the type of insulation proposed; Statement of the type and R-value for all windows/glazing and doors proposed; Statement of capacity of heating and cooling systems including the type of system and fuel source. This statement is to include HVAC and water heating; and a Statement of the type and R-value for all pipe and duct insulation. C. Project Design Scoring Value: 9 points DCA encourages the construction of multifamily projects that reflect the character of the community in which they are located. The marketability of the property and appearance of the site are important components in the final product. Longevity and low maintenance are to be considered in the design of the property. The allocation of these points will be at the discretion of DCA and the interpretation of the appropriateness of the proposed features and materials by DCA will be final. These points are intended to encourage the integration of new construction/rehabilitation into the existing community, and to promote sustainable design and the protection of resources. Points will be awarded in the following categories: 1. Exterior Material and Trim Low maintenance and durability of exterior materials will extend the life of the property. Buildings shall have exterior material finishes such as brick or stone, in excess of 40% of the total wall surface of each exterior face of the building. The exterior wall finish shall include breezeways, exterior stairwells and rear elevations. Three points will be awarded if this criterion is met. Attractive exterior features will assist marketability of the complex. If the decorative items such as shutters, decorative exterior patio/porch railings and other additional trim on all exterior elevations including the sides and rear of the buildings are proposed, one additional point will be awarded. 2. Landscaping/Site Design A site design that shall include features from at least two of the following categories will be awarded two points. The preservation of existing trees and the integration of existing vegetation with new plantings clearly delineated on the site plan. These areas shall be designed to create spaces such as seating areas or shading for playground and/or other recreation areas. Freestanding shelters in appropriate locations such as the mail center, recreation areas or transportation stops. Upgraded streetscape at front entry with trees and other plantings; features such as berms, fencing, additional lighting and signage. FFY2000 Consolidated Plan for the State of Georgia I-37 2000 Georgia Qualified Allocation Plan December 1999 3. Historic/Community Features The property shall exhibit design features of prominent, neighborhood or community structures. To obtain these points the applicant must document with a location map, photographs, and written descriptions of the structures that serve as the influence on the property design. These design features may include: covered porches or patios, roof profiles such as gables, hips or other decorative features such as cupolas, featured window profiles and building entry delineation. The use of appropriate exterior finish materials, existing site features, and configurations are also part of this point consideration. DCA shall, in its sole and absolute discretion, assess the appropriateness and desirability of the features selected for point consideration. Three points will be awarded if this criterion is met. D. Project Amenities Scoring Value: 15 points All properties must include as basic: HVAC systems, refrigerators, stoves, an on-site laundry (1 washer and 1 dryer per every 25 units) and one equipped recreation area suitable for the proposed tenant base. If washers and dryers are installed and maintained in every unit at no additional cost to tenants, an on-site laundry is not required. All properties in urban locations must be fenced on the sides and rear of the property or secured in an alternative manner acceptable to DCA. All amenities, with the exception of the on-site laundry, must be available to the tenants at no additional charge. Applicants that do not include these items will not be considered for funding. Architectural documents included in the Application will be reviewed to verify all proposed amenities, and if they are not indicated either graphically or noted on the documents, the points will be disallowed. All the amenities will be verified by DCA at the time of the final construction inspection. The appropriateness and adequacy of the proposed amenities for the purposes of point scoring will be determined at the sole discretion of DCA. No reduction or adjustment in amenities will be allowed after submission of the Application. Points will be allocated as follows: Washer/dryer hookups in all units in addition to required central laundry or washers and dryers are installed and maintained in every unit at no additional cost to tenants. (5 points) Additional equipped recreational area (1 point per area to a maximum of 3 points) (i.e. picnic area, pool, weight room, basketball, etc.) Community facility, to include leasing office and community spaces (3 points) Complete, monitored built-in fire sprinkler system (2 points) Dishwasher and disposal (both must be supplied) (1 Point) Complete site landscaping sprinkler system (1 Point) E. Ownership Makeup Scoring Value: 2 points Ownership entities comprised of 100% nonprofit organizations will receive two points. These points will also be awarded if a for profit entity partners with a nonprofit that materially participates within the meaning of IRC 469(h) in the development and ongoing management of the project. I-38 FFY2000 Consolidated Plan for the State of Georgia 2000 Georgia Qualified Allocation Plan December 1999 18.6 READINESS TO PROCEED Scoring Value: 2 points To obtain these points the applicant must apply for all land disturbance and building permits as required by the local governing jurisdiction. To qualify for the points the applicant must supply: A copy of the building permit obtained, dated appropriately to allow construction to commence within a time frame that allows for completion in accordance with DCA requirements; and, An original letter from the local governing jurisdiction indicating that all documentation has been received and all fees have been paid to allow construction to commence as indicated on the permits. The letter must also reference the project name, address and number of units. 18.7 COMPLIANCE STATUS Scoring Value: 20 to + 10 points General This section is designed to consider prior compliance experience and administrative performance with HOME, HTF, FDIC, and Credit properties as part of the overall scoring process. Project Participants (developers, owners/general partners, management companies and syndicators) with no prior experience in Georgia or a contiguous state will have no positive or negative impact on the final compliance score. Project Participants with experience will be scored in accordance with the compliance evaluation process discussed below. The scores for the Project Participants with experience will be weighted along with the neutral scores of those Project Participants with no experience to arrive at an overall development team compliance score. The final compliance score may result in an addition of up to 10 points or a reduction of as many as 20 points to/from the overall Application score. Project proposals with compliance scores falling below negative twenty (-20) points, or with one or more Project Participants' (excluding syndicators) compliance score(s) falling below -20 points, will not be eligible for funding in the 2000 competitive round. Although syndicators will be scored applying the same criteria used for scoring other Project Participants, their specific scores will not be used in the calculation of the overall development team score. They will be scored on a pass/fail basis, and those syndicators scoring a -20 points or less will not be eligible to participate in projects funded from Credit awarded from the 2000 competitive round. If a proposed syndicator is deemed ineligible to participate, the applicant may select another syndicator. The required Experience Summary documentation for the new syndicator must be submitted within 30 days of the date the 2000 reservations are announced. Project Participants that have been ineligible to participate for the last two competitive rounds, and remain ineligible in the 2000 competitive round, may apply for probationary participation. DCA, at its sole discretion, may approve participation based upon further review of the circumstances that resulted in the determination of ineligibility and of corrective actions taken. However, negative twenty points will apply to the project participant for compliance scoring purposes (or a Compliance Factor of 42). Procedures for applying for probationary participation, and the requirements for such participation, will be outlined in the 2000 Application Manual. FFY2000 Consolidated Plan for the State of Georgia I-39 2000 Georgia Qualified Allocation Plan December 1999 Required Documentation The following information must be attached to each Project Participant's Experience Summary: A completed Project Participant Self-Scoring Worksheet (with supporting documentation attached). The applicant must include all projects applicable to the compliance scoring requirements specified in this section of the 2000 Plan. If a proposed Project Participant was a participant in a project at the time of any DCA HOME, HTF, FDIC, or Credit audit within three (3) years of the Application deadline, the project must be included. Copies of all DCA HOME, FDIC, and Credit notices of noncompliance (i.e. 8823's, letters, reports, findings, etc.) issued by DCA within three (3) years of the Application deadline (attached to the selfscoring sheet). This documentation should include all noncompliance notices for all projects in which the Project Participant was a participant at the time of the audit. Also, the number of units included in each audit must be stated. Any Project Participant having had no DCA/GHFA audits of HOME, HTF, FDIC or Credit properties within the past three (3) year period, but having been audited by similar agencies in Florida, Alabama, Tennessee, North Carolina, or South Carolina, must submit copies of all HOME, HTF, FDIC, and Credit notices of noncompliance (i.e. 8823's, letters, reports, etc.) issued by these agencies within the three-year period. This submission must include all noncompliance notices for all projects for which the Project Participant was a participant at the time of the audit. Also, the number of units included in each audit must be stated. Internal Revenue Service Form 8821, Tax Information Authorization, must be completed and submitted for all projects listed on each Project Participant's Experience Summary. Five fully executed copies of the Compliance Information Release Form (included in the Application) must be submitted. Project syndicators might not be known at the time of application. Applicants must submit to DCA the required compliance documentation regarding the syndicator at the time applicants notify DCA of the proposed equity providers selected (which must occur within 30 days of the date 2000 reservations are announced). Note that syndicators will not be required to submit Self-Scoring Worksheets. Compliance Evaluation Process Overview of Preliminary Compliance Scoring A numerical value will be applied for each instance of noncompliance (see table VIII.a). The total number of units audited for each Project Participant designated in the Application will be divided by the total of the numerical values to determine a Participant Compliance Factor (see table VIII. b). Project Participants with no experience/audits in Georgia, or one of the five contiguous states, within the threeyear period will receive a neutral Participant Compliance Factor. The Overall Compliance Factor will be the combined Compliance Factors of the basic categories of Participants (excluding the syndicator). An Application's preliminary compliance score can then be determined from the Compliance Scoring Table included in this Section (see table VIII.c). To score individual participants, multiply the individual Participant Compliance Factor by three (3) and refer to the Compliance Scoring Table. Note that a syndicator's compliance score will not affect the proposed project compliance score, but to be eligible to participate, the syndicator must score -20 or higher. I-40 FFY2000 Consolidated Plan for the State of Georgia 2000 Georgia Qualified Allocation Plan December 1999 Examples of Major and Minor Instances of Noncompliance The following examples are intended to provide general guidance to determine whether a particular instance of noncompliance will be treated by DCA as major or minor for scoring purposes. This list of examples does not include every possible category of noncompliance and is not intended to be allinclusive. DCA will make the final determination on a case by case basis. Based on this general guidance, applicants must use their own judgement for self-scoring purposes. Major Noncompliance Rent charged to tenants that exceeds the applicable property rent limits Failure to follow the Available Unit Rule Numerous or repetitive instances of administrative noncompliance (failing to execute the policies and procedures stated in DCA Program Manuals, Land Use Restrictive Covenants, Land Use Restrictive Agreements, Loan Documents and Federal Rules and Regulations) Significant Health and Safety Violations generally affecting more than one unit (structural problems, severe water damage, fire hazards, infestations) Down units (not suitable for occupancy for extended periods of time, generally more than 90 days) Failure to maintain or provide tenant income certification and documentation Failure to provide items listed on the Application (amenities, support services, architectural elements) Minor Noncompliance Isolated instances of administrative noncompliance (failing to execute the policies and procedures stated in DCA Program Manuals, Land Use Restrictive Covenants, Land Use Restrictive Agreements, Loan Documents, and Federal Rules and Regulations) Less critical or isolated instances of Health and Safety Violations (loose handrails, inoperable stove burner, minor leaks) Overview of Secondary Compliance Scoring The secondary scoring criteria will address compliance and administrative deficiencies not related to audits of specific properties. No points can be earned for secondary scoring issues, but points can be lost. Points in this area will be assessed in absolute terms with no compliance factors or other formula considerations. The points will be deducted directly from the preliminary compliance score to determine the final compliance score. Minor compliance and administrative deficiencies corrected prior to February 1, 2000 will not be considered for secondary compliance scoring purposes. Major issues occurring anytime within the three-year Compliance Period will be considered for the determination of the final compliance score. Generally, a notice of noncompliance or failure to meet certain administrative requirements will be sent to the property owner of record. However, lack of such notice from DCA will not necessarily exclude known compliance or administrative deficiencies from scoring consideration. Compliance or administrative deficiencies that will be considered for secondary compliance scoring purposes may result from failure to comply with State or federal rules and regulations, or with requirements specified in binding loan or Tax Credit documents, including, but not limited to, project applications, Land Use Restriction Agreements/Covenants, and loan agreements. Examples of secondary compliance scoring issues include, but are not limited to the following: Any compliance issue that would normally be addressed in a scheduled compliance audit that comes to DCA's attention and is addressed outside the scope of a regularly scheduled audit FFY2000 Consolidated Plan for the State of Georgia I-41 2000 Georgia Qualified Allocation Plan December 1999 Unused Credit resulting from failure to meet the 10% carryover requirement or not placing a project in service within 24 months of the carryover Failure to notify DCA of disposition/sale of property Failure to meet Project reporting requirements (e.g., Annual owners' certification and report, project completion reports submitted within 120 days of the final draw, etc.) Failure to meet Carryover deadlines Failure to maintain required reserve levels, or failure to provide, on a timely basis, required proof of insurance on HOME loan properties Failure to provide necessary underwriting documentation in a timely manner When self-scoring, Applicants must consider the relative importance of the secondary compliance and/or administrative issues. The noncompliance examples from Table VII.a (Table) on the following page provide the general guidelines for this consideration. The Table illustrates Numerical Values instead of absolute point reductions. However, it will aid in estimating the relative importance of the issues. For example, minor isolated instances of noncompliance will result in no point loss, while issues such as failing to meet the 10% carryover requirement, or major project-wide instances of noncompliance, could result in the loss of three or more points (taken directly from the preliminary compliance score). The maximum loss of points will be dependent upon the applicant's responsiveness in curing the issues (when curable), and actions taken to prevent future occurrences of noncompliance or administrative deficiencies. I-42 FFY2000 Consolidated Plan for the State of Georgia Table 18.7 a NONCOMPLIANCE CATEGORIES NUMERICAL VALUES Minor Noncompliance Per Unit Project-Wide Major Noncompliance Per Unit Project-Wide Isolated instances of noncompliance resolved during the DCA 0 0 2 3 assigned cure period Isolated instances of noncompliance resolved after the DCA 1 2 3 4 assigned cure period Other instances of noncompliance resolved during the DCA 2 3 4 5 assigned cure period Other instances of noncompliance resolved after the DCA 3 4 5 6 assigned cure period Incurable instances of noncompliance measures taken to 1 2 5 6 prevent further instances of noncompliance Curable instances of noncompliance left uncured 6 10 Applicable participant Ineligible to participate Incurable instances of noncompliance no measures taken to 6 prevent further instances of noncompliance 10 Applicable participant Ineligible to participate Default of DCA HOME Loan Applicable participant Ineligible to participate Submission of fraudulent information or equivalent acts Debarred from participation in similar programs in any of the contiguous States at the Application deadline date Debarred from participation in similar programs by any Federal agency at the Application deadline date Applicable participant Ineligible to participate Applicable participant Ineligible to participate Applicable participant Ineligible to participate FFY2000 Consolidated Plan for the State of Georgia I-43 Table 18.7 b EXAMPLES OF COMPLIANCE SCORING PROCESS Example 1 assumes all three participants have been audited within the three-year period Number of Units Participant Project Participants Audited Within Compliance = Three-Year Period Numerical Value Developer 330 5 Owner/ General Partner (see note 1) 45 0 Management Company (see note 1) 120 1 Overall Compliance Factor Preliminary Compliance Score From Compliance Scoring Table Participant Compliance Factor 66.0 100.0 100.0 266 7 Example 2 assumes two of the three Participants have been audited within the three-year period, and that Co-Developers are participating. Number of Units Participant Participant Audited Within Compliance = Compliance Participants Three-Year Period Numerical Value Factor Co-Developer # 1 Co-Developer # 2 330 5 66.0 45 0 100.0 Co-Developers' Average Compliance Factor (see note 3) 83 Owner/General Partner (see note 2) 0 0 65 Management Company 120 1 100.0 Overall Compliance Factor 248 Preliminary Compliance Score From Compliance Scoring 5 Table Note 1 The maximum participant compliance factor is 100. Note 2 An unaudited participant will receive a participant compliance factor of 65, which will have no Positive or negative impact on the final compliance score. Note 3 Co Participants To arrive at the Co-Developer Average Compliance Factor, first determine the Factor for each Co-Developer, and average the Compliance Factors. FFY2000 Consolidated Plan for the State of Georgia I-1 December 1999 2000 Georgia Qualified Allocation Plan Table 18.7 c Overall Compliance Factor 290 300 280 289 270 279 260 269 250 259 240 249 230 239 220 229 210 219 200 209 190 199 185 189 180 184 175 179 170 174 165 169 160 164 155 159 150 154 145 149 140 144 135 -139 130 134 125 129 124 OR LESS COMPLIANCE SCORING TABLE Example 1 Example 2 Preliminary Compliance Score 10 9 8 7 6 5 4 3 2 1 0 -1 -2 -3 -4 -5 -6 -7 -8 -9 -10 -11 -12 -20 Ineligible Project FFY2000 Consolidated Plan for the State of Georgia I-45 2000 Georgia Qualified Allocation Plan December 1999 SECTION 19 MONITORING AND COMPLIANCE The applicant's compliance responsibilities begin with the award of the HOME funds and/or the Credit and will continue through the end of the Compliance Period, the Period of Affordability, or the term of the loan, whichever is longer. Applicants are advised that DCA is required to monitor projects for compliance with the requirements of IRC Section 42, the HOME regulations at 24 CFR Part 92, the representations set forth in the Application, the requirements stated in this Plan, and the requirements set forth in the respective program manuals. DCA's plan for compliance monitoring described below outlines the overall requirements, offers explanations for individual program regulations, and sets forth the requirements for properties participating in multiple programs. Required Training for Owners (Tax-exempt Bond Properties must also meet this requirement). The owner/general partner is required to successfully complete a compliance-training seminar provided by or sponsored by DCA. The owner of a HOME-funded property will be required to submit the Certificate of Successful Completion prior to leasing the first unit. Limited partners are strongly encouraged to attend these training seminars, but may elect to have property managers serve as the limited partner's representative. Seminars for HOME, Credit, and HOME/Credit properties will be available on an individual property basis. Certification testing is required and certificates are awarded upon successful completion of the training. The owner of a Credit property will be required to submit to DCA the Certificate of Successful Completion for the Credit training prior to placing the first building in service. Georgia HOME and Tax Credit Compliance Manuals will be distributed at the training sessions. DCA will hold the applicant/owner responsible for all representations made in the approved Application. The applicant/owner also is responsible for ensuring that the property abides by the rules, regulations, and restrictions specified in the Plan, the Land Use Restriction Agreement or Covenant, the Georgia HOME and Tax Credit Manuals, the HOME Final Rule (as amended), and in Section 42 of the IRS Code. Although DCA is responsible for monitoring the owners' compliance with these rules, regulations, and restrictions, this responsibility does not make DCA liable for an owners' noncompliance. Property and Record Compliance A. For purposes of determining initial or ongoing eligibility and compliance with property maintenance requirements, DCA asserts the right to conduct on-site inspections of any project receiving Credit, HOME, or both Credit and HOME funding at any time through the end of the compliance period or the term of the loan, whichever is longer. DCA will provide prompt written notice to the owner of noncompliance findings and will assign an appropriate cure period. B. DCA asserts the right to perform an on-site inspection of tenant records on any project receiving Credit, HOME, or both Credit and HOME funding at any time through the end of the compliance period or the term of the loan, whichever is longer. DCA will provide prompt written notice to the owner of any noncompliance finding and will assign an appropriate cure period. C. In the Credit Program, DCA is required to report all items of possible noncompliance to the IRS on IRS Form 8823. This form(s) will be issued to the owner/general partner of the project. If the noncompliance can be and has been corrected by the end of the cure period, the correction will be noted on Form 8823. DCA and the IRS consider Form 8823 to be a confidential tax document I-46 FFY2000 Consolidated Plan for the State of Georgia December 1999 2000 Georgia Qualified Allocation Plan and, as such, Form 8823 will not be provided to parties not having an ownership interest in the project. Reports to be provided to DCA A. Project owners receiving HOME loans are required to submit Quarterly Occupancy Reports in a format prescribed in the DCA HOME Manual, together with copies of Tenant Income Certifications for rental units leased during the quarter (beginning with initial lease-up date), until the property has reached one hundred percent (100%) initial occupancy. After one hundred percent (100%) occupancy is achieved and the property is determined by DCA to be in compliance with the HOME regulations and with all DCA requirements, the property will then be required to report on an annual basis throughout the term of the loan. Project Owners are also required to submit an Annual Owners Certification and Annual Owner's Report in a format prescribed by DCA. B. Project owners receiving Credit are required to submit Quarterly Occupancy Reports with tenant income certifications for rental units leased that quarter, beginning with the first building placed in service forward, until the project reaches one hundred percent (100%) initial occupancy. After one hundred percent (100%) occupancy has been achieved and the property is found to be in compliance with Credit regulations and all DCA requirements, the property will then report on an annual basis through the end of the project's compliance period. Project owners are also required to submit an Annual Owners Certification and Annual Owner's Report in a format prescribed by DCA. C. Project owners receiving HOME loans and Credit are required to submit Quarterly Occupancy Reports from the initial lease-up date forward until the project has reached one hundred percent (100%) occupancy. If the property is determined to be in compliance with the HOME regulations, with Section 42 of the IRC, and with all DCA requirements, the property will then report on an annual basis in a format prescribed by DCA through the term of the loan or the compliance period, whichever is longer. Project owners are also required to submit an Annual Owners Certification and Annual Owner's Report in a format prescribed by DCA. D. Project owners who received Credit and are financed under the Section 515 program of the U.S. Department of Agriculture will not be required to submit monthly or quarterly reports. These properties are required to submit the Annual Owner's Certification and Annual Owner's Report prescribed by DCA in the Tax Credit Manual, on an annual basis through the end of the project compliance period. E. Owners of projects that received Credit and are also financed with proceeds from tax-exempt bonds will be required to submit Quarterly Occupancy Reports beginning with the first building placed in service until the property has reached one hundred percent (100%) occupancy. If the property is determined to be in compliance with Credit regulations and all DCA requirements, the property will then report on an annual basis throughout the compliance period. Failure to report as required will be considered noncompliance. Record Keeping and Record Retention A. Project owners awarded HOME loans must keep records for each assisted building as stipulated in the final HOME regulations (as amended) and as stated in the Georgia HOME Compliance Manual. FFY2000 Consolidated Plan for the State of Georgia I-47 2000 Georgia Qualified Allocation Plan December 1999 B. Project owners allocated Credit must keep records for each building as stipulated in Section 42 of the IRS Code Section 1.42-5(b) and in the Georgia Low Income Housing Tax Credit Manual. C. Project owners receiving HOME loans and Credit must follow the most stringent requirements of the two programs. Properties with Multiple Sources of DCA Funding Projects receiving more than one source of DCA funding (e.g., HOME and Credit) are required to comply with the monitoring provisions of each of the individual funding sources and with the Land Use Restriction Agreements/Covenants. In the event of inconsistencies between the funding program requirements, agreements, or covenants, the most restrictive requirements will always govern. Compliance Standards A. Assessment of Noncompliance Principals of projects awarded Credit in previous award cycles must remain materially in compliance with Credit and HOME Program requirements (if applicable) to remain eligible to compete for future Credit awards or HOME loans. Material noncompliance status exists when a party exhibits a continual pattern of noncompliance, or when a party demonstrates an inability or an unwillingness to resolve noncompliance matters in a timely manner. DCA will have sole and absolute discretion in determining those parties ineligible to participate in the OAH financing competition due to noncompliance status. B. Cure Period Standards DCA will notify the owner in writing of any possible findings of noncompliance. Each item of noncompliance will have an assigned cure period. The cure periods will typically range from thirty (30) to a maximum of ninety (90) days. Examples of noncompliance matters and typical cure periods are as follows: Noncompliance Items Health and Safety Any issue Administrative Noncompliance Incomplete or incorrect tenant income certifications Tenant income certifications not notarized Failure to report on a quarterly or annual basis Project-wide Noncompliance Incorrect utility allowances Violations of 40/50 rule Rent overages Incurable Instances of Noncompliance Submission of fraudulent information to DCA Typical Cure Periods 48 hours 30 days 30 days 30 days 60 days 60 days 60 days No cure Federal regulations require that all noncompliance, whether or not corrected, must be reported to the IRS. Federal Regulations also authorize DCA to extend the cure period for up to six (6) months, but only if DCA determines that such extension is justified. I-48 FFY2000 Consolidated Plan for the State of Georgia December 1999 2000 Georgia Qualified Allocation Plan Monitoring Fees A. DCA charges a monitoring fee for all Credit developments containing five or more low-income units. Credit recipients will be required to pay the entire fee covering the 15-year Compliance Period prior to the issuance of the project's IRS Forms 8609. See Section 14 of this Plan for fee schedules. B. Developments financed by the U.S. Department of Agriculture under the Section 515 program are charged a reduced compliance fee. Recipients will be required to pay the entire fee covering the 15 year Credit Compliance Period prior to the issuance of the project's IRS Forms 8609. See Section 14 of this Plan for fee schedules. Compliance Monitoring Responsibilities A. DCA may choose to delegate all or a portion of its compliance monitoring responsibilities to an agent or other private contractor. This option, if chosen, does not relieve DCA of its obligation to notify HUD or the IRS of noncompliance instances. DCA may also delegate some or all of its compliance monitoring responsibilities to another State agency. This delegation may include the responsibility of notifying the IRS of noncompliance. B. Applicants must inform DCA of all conditions or extenuating circumstances at each project that may impact compliance monitoring duties. Any questions regarding compliance with the Credit or HOME programs should be addressed in writing and faxed to DCA's Compliance Monitoring Section at (404) 327-6849. SECTION 20 MODIFICATION OF PLAN Without limiting the generality of DCA's power and authority to administer, operate, and manage the allocation of Credit according to federal law, federal procedures, and this Plan, DCA shall make such determinations and decisions, publish administrative rules, require the use of such forms, establish such procedures, and otherwise administer, operate, and manage allocations of Credit in such respects as may be, in DCA's determination, necessary, desirable, or incident to its responsibilities as the administrator, operator, and manager of allocations of credit. The Governor recognizes and acknowledges that DCA will encounter situations which have not been foreseen or provided for in this Plan and expressly delegates to DCA the power to amend this Plan, after the public has had the opportunity to comment through the public hearing process, and to administer, operate, and manage allocations of Credit in all situations and circumstances, both foreseen and unforeseen, including, without limiting the generality of the foregoing, the power and authority to control and establish procedures for controlling any misuse or abuses of the Credit allocation system and the power and authority to resolve conflicts, inconsistencies, or ambiguities, if any, in this Plan or which may arise in administering, operating, or managing Credit allocations pursuant to this Plan. The Governor further expressly delegates to DCA the authority to amend this Plan to ensure compliance with federal law and regulations as such federal law may be amended and as federal regulations are promulgated governing Credit. FFY2000 Consolidated Plan for the State of Georgia I-49