State of Georgia consolidated plan annual performance report (excerpts illustrating CDBG and CHIP performance), July 1, 2007 - June 30, 2008

STATE OF GEORGIA CONSOLIDATED PLAN ANNUAL PERFORMANCE
REPORT (Excerpts Illustrating CDBG and CHIP
Performance)
JULY 1, 2007 - JUNE 30, 2008
Sonny Perdue Governor
Prepared By:
Georgia Department of Community Affairs Mike Beatty, Commissioner
September 2008

During SFY2008, 105 CDBG grants totaling $43,203,202 were awarded to units of local government (State of Georgia Consolidated Plan Annual Performance Report, September 2008, Page 11)

Table 4: Geographic Distribution of Units/Grants/Loans (Ibid, Page 20)

Urban

Rural

Program

Amount Percentage

Percentage

Amount

HOME Total

1,171 units 1 loans

70% 20%

496 units 4 loans

30% 80%

Georgia Dream Second Mortgage (*)

283 units 79%

Georgia Dream: Rural Development

16 units 38%

Georgia Dream: HONORS

0 units

0%

Georgia Dream: Welcome Home

2 units 67%

Georgia Dream: Choice

66 units 61%

Georgia Dream: EV

0 units

0%

Georgia Dream: PEN

180 units 81%

Georgia Dream: Homeownership

0 units

0%

Voucher

Georgia Dream: Signature

1 unit 33%

Community

Georgia Dream Single Family

1 unit 14%

Development

HOME Rental Housing Loan

456 units 75%

HOME Rental Preservation Loan

0 units

0%

Permanent Supportive Housing Loan

28 units 100%

Rural Rental Housing Development

0 units

0%

Fund

HOME CHDO Predevelopment

1 loan 20%

Loan

HOME CHDO Operating Assistance CHIP

1 grant 100%

165 units1

54%

CDBG

30 grants 29%

ESG

29 grants 60%

HOPWA

7 grants 78%

* represents the Traditional Georgia Dream Second Mortgage Program

77 units 26 units
0 units 1 unit 43 units 1 unit 42 units 0 units
2 units
6 units
155 units 0 units 0 units 0 units
4 loans
0 grants 143 units 75 grants 19 grants 2 grants

21% 62%
0% 33% 39% 100% 19% 0%
67%
86%
25% 0% 0% 0%
80%
0% 46% 71% 40% 22%

1 Note CHIP generally receives less than 10% of the annual HOME allocation made available to DCA

Table 5: Geographic Distribution of Funding (Ibid, Page 21)

Urban

Program

Amount Percentage

HOME Total

$13,909,087 60%

Rural
Percentage Amount

$9,312,669

40%

Georgia Dream Second Mortgage (*)

$1,415,000

79%

Georgia Dream: Rural Development

$160,000

38%

Georgia Dream: Welcome Home

$20,000

67%

Georgia Dream: HONORS

$0

0%

Georgia Dream: Choice

$955,000

60%

Georgia Dream: EV

$0

0%

Georgia Dream: PEN

$1,350,000

81%

Georgia Dream: Homeownership

$0

0%

Voucher

Georgia Dream: Signature Community

$7,500

33%

Georgia Dream Single Family

$19,234

14%

Development Program

HOME Rental Housing Loan

$5,463,000

52%

HOME Rental Preservation Loan

$0

0%

Permanent Supportive Housing Loan

$2,899,556 100%

Rural Rental Housing Development

$0

0%

Fund

HOME CHDO Predevelopment Loan

$30,000

20%

HOME CHDO Operating Assistance

$25,000 100%

CHIP

$1,564,797

40%

CDBG

$13,163,202

30%

ESG

$4,326,100

96%

HOPWA

$1,069,000

81%

* represents the Traditional Georgia Dream Second Mortgage Program

$385,000 $260,000
$10,000 $0
$650,000 $7,500
$315,000 $0
$15,000 $114,804
$5,106,698 $0 $0 $0
$120,000 $0
$2,328,667 $30,040,000
$180,300 $247,000

21% 62% 33%
0% 40% 100% 19% 0%
67% 86%
48% 0% 0% 0%
80% 0%
60% 70%
4% 19%

y Leverage (Ibid, Page 23)
CDBG: For the annual CDBG competition, DCA requires a local cash match for all nonhousing CDBG projects. The required cash match is based on the amount of CDBG funds received as follows:
y 0% for amounts up to $300,000 in CDBG funds, y 5% for amounts from $301,000 to $500,000, and y 10% of amounts from $500,001 to $800,000 in CDBG funds.
Note that the EIP, Immediate Threat and Danger, and Redevelopment Fund CDBG setasides do not require a match. During FFY2007, $632,674 in local CDBG cash match was provided by local units of government that received CDBG funds. In addition, all competitive 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, grants or local government cash and in-kind contributions. The FFY2007 CDBG competition leveraged $18,342,811 in additional private and public resources resources.

y SFY2008 Investment and Assistance by HUD Funded Program: (Ibid, Page 30)

Program

Investment

Assistance

Georgia Dream Second Mortgage (*)

$1,800,000

360 households

Georgia Dream: Rural Development

$420,000

42 households

Georgia Dream: Choice

$1,605,000

109 households

Georgia Dream: PEN

$1,665,000

222 households

Georgia Dream: EV

$7,500

1 household

Georgia Dream: HONORS

$0

0 households

Georgia Dream: Homeownership

$0

0 households

Voucher

Georgia Dream: Signature Community

$22,500

3 households

Georgia Dream: Welcome Home

$30,000

3 households

Georgia Dream Program Single Family

$134,038

7 households

Development

CHIP

$1,087,507

232 households

CDBG

$1,038,035

43 households

HUD Counseling Grant

$391,453 awarded to

7,556 individuals

Agencies providing

assisted

home buyer education

and counseling

Agencies and

* This figure represents the Traditional Georgia Dream Second Mortgage Program

y Table 10: Analysis of CDBG Annual Competition for Program Year 2007 (7/1/07 -
6/30/08) (Ibid, Page 39)

Type of Projects
Multi Activity Housing Improvements Public Facilities: Neighborhood Buildings Drainage and Streets Health Center
Learning Center Mental Health Center Multi Infrastructure Senior Center Sewer Improvements Water Improvements Water and Sewer Improvements

Projects
2 5

Award
$1,600,000 $2,488,102

People
138 177

LM People
127 177

LM %
92% 100%

Units
5 85

3

$1,337,008 486 467 96%

14

$6,188,683 1,562 1,369 88%

3

$1,500,000 17,251 16,854 98%

1

$500,000 160 155 97%

4

$2,000,000 404 395 98%

9

$4,028,908 1,101 966 88%

2

$999,775 907 907 100%

13

$6,482,613 3,548 3,325 94%

8

$3,626,462 6,865 5,735 84%

7

$3,496,694 1,857 1,585 85%

y Jobs Made Available To But Not Taken by Low and Moderate-income Persons
(Ibid, Page 41) All jobs created by CDBG economic development activities are made available to low and moderate-income persons, but not all jobs are taken by low and moderate-income persons. Data included in the PER indicates that overall nearly 76% of jobs created were taken by low and moderate-income persons. All businesses assisted with CDBG funds must sign a contract that a minimum of 51% of jobs created will be filled by low and moderate-income persons or funds must be repaid to the State. DCA and the assisted businesses work with a number of other programs, such as the Georgia Department of Labor, to ensure this goal is met.
y Evaluation of Progress in Meeting Georgia's Community Development Objective
(Ibid, Page 102)
The primary long-term objective of the State of Georgia's CDBG Program, as stated in the FFY2007 Consolidated Plan, is to develop viable communities by providing decent housing, a suitable living environment and expanding economic opportunities, principally for low income and moderate-income persons.
In general, our evaluation is that the State is making significant progress in meeting this objective. This conclusion is based on the number and type of grants awarded and the numbers of persons benefiting from these projects.
During the program year covered by this report, 105 awards to local units of government were made with CDBG funds. Table 10: Analysis of CDBG Awards & Accomplishments for Program Year 2007 (7/1/07 6/30/08) presents the number of persons benefiting from these CDBG funds, currently and previously awarded. Included are all CDBG funding categories, including the Annual Competition, Redevelopment Fund, Immediate Threat and danger Program, and Employment Incentive program. More than 90% of the persons benefiting are low and moderateincome persons.
One major challenge in meeting the objective is the reduction is the amount of CDBG funds available to the State through Congressional appropriations. At the national level, the appropriations have declined every year since 2003. Since 2003, Georgia's share of these funds has declined from $48,000,000 to approximately $40,000,000. The steady increase in construction costs, especially since the Katrina disaster, has adversely influenced the effective "buying power" of the funds available.
y Community HOME Investment Program (CHIP) (Ibid, Page 9)
This program offered funds to local governments for implementation of any approved, HOME eligible housing activity; except tenant based rental assistance. CHIP funds can only be used for activities that result in the production, acquisition, or rehabilitation of decent, safe, and sanitary single-family and rental housing units. Funds were made available in conjunction with DCA's CDBG program to enable communities to have

access to funds for both housing and community development activities. Eligible CHIP applicants include those units of general purpose local government who have not been designated by HUD as a Participating Jurisdiction for the HOME program. During SFY2008, funds were competitively awarded to non-entitlement local governments across Georgia. Twenty-eight local governments in Georgia were awarded $7,509,259 in project funding and $335,474 in administrative funding to implement local housing programs in their communities. This program completed 308 affordable housing units in these and other previously funded communities, totaling $3,893,464 in funds during SFY2008. Of this amount, 232 new home buyer units were assisted using $2,065,400 in funding and the remaining 76 units used $1,828,064 for the rehabilitation and reconstruction of private properties, acquisition and for housing construction.