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.