Application Overview/Program Summary

Transcription

1. Rating Factor 1: Need/Extent of the Problem
1.a. Target geography.
Habitat For Humanity International (HFHI) has identified seven target communities. In each
community, after an intensive review process, HFHI selected a local Habitat affiliate to conduct NSP2
activities. These activities will be the central focus of Habitat’s community development and
revitalization work to stem and reverse the negative effects of foreclosed, abandoned and vacant
properties. In each target area, Habitat affiliates will build on existing community development efforts.
They have sufficient staff and resources in place to launch proposed activities immediately.
1.
2.
3.
4.
5.
Collier County (Naples), FL - Habitat for Humanity Collier County
Pensacola, FL - Pensacola Habitat for Humanity
Miami, FL - Habitat for Humanity of Greater Miami
Dallas, TX - Dallas Area Habitat for Humanity
Metro Los Angeles, CA (cities of Lynwood and South Gate) - Habitat for Humanity of Greater
Los Angeles
6. Brooklyn, NY - Habitat for Humanity - New York City
7. Milwaukee, WI - Milwaukee Habitat for Humanity
Combined with HFHI’s extensive experience managing federal funds, as well as providing resources
and technical assistance to its local affiliates, this dynamic team has a record of accomplishment and
production capacity to make a powerful and positive impact in each of their target areas.
This combination of cities represents a cross-section of the struggles that different communities across
the country face in response to the foreclosure crisis – from the overheated markets of Florida and
California, to the persistent struggles of low- to moderate-income households in Texas; and from the
perpetually expensive market of New York City to the industrial decline in the city of Milwaukee. With
an average high neighborhood stabilization index (NSI) of 18.71, HFHI has identified high-risk census
tracts in these seven cities as its target geography. Attachment 1 lists the target census tracts and zip
codes, as well as the three required HUD risk index scores.
HFHI as the grantee will engage each affiliate as a developer to complete all of the NSP2 projects
located within its respective community. Each affiliate has committed in writing to undertake this work,
subject to receipt by HFHI of an NSP2 award. HFHI and each of the seven affiliates (the Habitat NSP2
team) will enter into formal, binding contractual agreements upon receipt of such an award.
1.b. Market conditions and demand factors
Even though the proposed target areas face similar issues – high crime rates, foreclosed and vacant
properties, high unemployment and affordability issues – each faces unique challenges. Those
challenges are described in detail below in target area summaries. Market Absorption Rates are
calculated as the total # of foreclosed inventory / absorption rates (sales over last 6 months) = total
months inventory. This number is a projection of the absorption rate without NSP2 intervention.
Naples, Florida (Collier County)
1.b.(1) Market absorption rates
Market Absorption Rates: Total months inventory1 = 22
1.b.(2) Most critical factors
Since 2005, over-valuation of housing and predatory lending practices have severely affected the real
estate market in Naples, Florida. In 2006, Naples, with an average house price of $383,000 was
1
Sunshine MLS and RealtyTrac.com
Habitat for Humanity International - NSP2 Application # 375053185
1
considered to be over-valued by 102.6%.2 Many low- to moderate-income families have become
victims of predatory lending practices. Easy access to credit allowed these families to take out second
mortgages and refinance based on inflated house values. Subprime loans and ballooning house equity
lines were underwritten in record numbers. Subprime mortgages comprised 31% of house loans in
recent years.3 This resulted in a glut of foreclosures and a 33% drop in house values.4 Half of all
foreclosures are in low- to moderate-income, working class neighborhoods5 like the proposed NSP2
target areas of Naples Manor, Trail Acres and Airport Road. As of June 2009, the average sale price of
a foreclosed property was still out of the affordability range for nearly 40% of the population of these
areas.
1.b.(3) Income characteristics
In the proposed target areas, 20% of the residents between 81% and 120% AMI; 19% of residents
between 80% and 51% AMI; and, 18% of residents at or below 50% AMI are cost burdened.6
1.b.(4) Other relevant factors
A rising unemployment rate (currently 9.2%) has disproportionately affected these communities.7 The
Naples economy, driven by the construction, tourism, retail and banking industries, has significantly
slowed since 2007, exacerbating the housing crisis. Collier County has the highest cost of living in the
state of Florida - 6.5% higher than the average for other counties.8
1.b.(5) Activities most likely to stabilize the target area
To address the high foreclosure rates and affordability issues in Naples, Habitat Collier County will use
NSP2 funds to purchase and rehabilitate 90 foreclosed houses. In addition, ten new houses will be
constructed following the demolition of older, dilapidated houses. This will contribute significantly to
the stability of the proposed target areas by reducing the number of foreclosed or abandoned properties
and by quickly increasing the levels of stable homeowners to the community.
Pensacola, Florida
Pensacola Habitat’s proposed work targets eight contiguous tracts, which constitute the western urban
core of Pensacola. In South Santa Rosa County, an area with a large income disparity, Pensacola
Habitat will target two adjacent tracts to serve the low- to moderate-income population in the area.
Following the major storms Hurricanes Ivan in (2004) and Dennis (2005) and some smaller more recent
storms, some owner-occupied units in the targeted tracts utilized FEMA dollars to help with post-storm
repairs and weatherization; however, it was insufficient. The remaining 33-year old housing stock was
left unrepaired and continued to decline due to high rates of abandonment (8%), and a predominantly
low- to moderate-income population who had insufficient income to make the repairs on their own.
2
2006 study by Global Insight and National City Corporation titled House Prices in America
RealtyTrak, June 2009
4
5
Naples Area Board of Realtors
6
Schimberg Center for Affordable Housing, University of Florida (2010 projections)
7
Collier County Economic Development Council, 2009
8
2007, University of Florida Bureau of Economic and Business Research annual study on the cost of
living in Florida
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3
2
This has resulted in 2,332 vacant properties.10 High rates of subprime mortgages (48%) sold to low- to
moderate-income families during the housing boom exacerbated the crisis in the area.11
11% of residents between 81% and 120% AMI; 23% of residents between 51% and 80% AMI; and,
59% of residents at or below 50% AMI are cost burdened.12
The area also suffers from an unemployment rate of more than 9.2% in Escambia County and 8.6% in
Santa Rosa County, as of June 2009.13 All targeted areas have been impacted by a high rate of
abandoned houses and lots, which have become hosts for drug use and other criminal activity. Coupled
with the increased crime rates, blighted structures have rendered these neighborhoods undesirable
further depressing property value. Foreclosure and abandonment have caused families to move
frequently, which detracts from stable neighborhoods.
To address the high rates of blighted and abandoned properties, the high rates of foreclosures and the
growing number of houses falling into a state of disrepair, Pensacola Habitat will use NSP2 funds to
purchase and demolish 195 dilapidated properties damaged by storms and replace them with 195 new
houses built on the cleared lots. Additionally, Pensacola Habitat will purchase, rehabilitate and sell 45
properties. This intervention will contribute significantly to the stability of the proposed target areas by
reducing the number of blighted, foreclosed or abandoned properties in the target areas and by quickly
increasing the levels of stable homeowners to the community.
Miami, Florida
The target geography in Miami is a group of contiguous census tracts in a historically AfricanAmerican, single-family neighborhood, Liberty City, in Miami-Dade County’s urban core. Miami-Dade
County has been severely affected by the over-valuation of housing - a “bubble” now burst - which, in
combination with the ready availability of subprime mortgages, is the most critical factor causing the
high rate of abandonment and foreclosures in the target geography (9%)15 and foreclosures (33%)16 in
the target geography. On average, the percentage of subprime loans in these census tracts is over 51%.17
There are 705 vacant properties in target areas. Additionally, a high number of properties damaged by
previous storms have contributed to much of the blight in the target areas.
10
HUD User Data Sets - USPS Vacancy Data
HUD User Data Sets - NSP Foreclosure Need Data Download, data on percent of all loans made
between 2004 and 2006 that are high cost
12
Florida Housing Data Clearinghouse
13
U.S. Dept. of Labor, Bureau of Labor Stats, Pensacola MSA; Haas Center for Business Research and
Economic Development (University of West Florida)
14
Trulia.com, June 2009
15
TRF Policy Map, March 2009
16
huduser.org, November 17, 2008
17
TRF Policy Map, 2007
11
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In target areas, 46% of residents between 81% and 120% AMI; 51% between 51% and 80% AMI; and,
72% of residents at or below 50% AMI are cost burdened.18
The proposed target area continues to have one of the highest crime rates in the county, underperforming
schools and high unemployment rates (9.6%).19 In the last ten years, the Liberty City neighborhood has
also lost 850 units of public housing. The displacement of these low- to moderate-income families has
added to the problems of an already economically unstable area.
To address the high rate of foreclosures, Habitat Miami will use NSP2 funds to acquire and rehab 70
foreclosed properties. Of this number, 48 will be torn down to the foundation and rebuilt to meet current
code and the remaining 22 will be rehabbed. Additionally, 90 new houses will be built on currently
vacant sites. This intervention will contribute significantly to the stability of the proposed target areas
by reducing the number of foreclosed or abandoned properties in the target areas; increasing the
available affordable housing stock; removing blighted and vacant properties; and quickly increasing the
levels of stable homeowners to the community.
Dallas, Texas
Market Absorption Rates: Total months inventory of houses20= 3; total months inventory of vacant
lots21 = 78
Dallas Area Habitat will create owner-occupied infill housing in four existing neighborhoods of Dallas:
Fair Park, Rochester Park, Exeter and West Dallas. Southeast Dallas target areas have 1,123 vacant
properties and an estimated 78-month inventory of vacant, developed lots. Overbuilding of subdivisions
in the mid 2000’s created a glut of developed lots in the outer, more suburban target areas. In the
proposed in-fill areas, which are closer to downtown and therefore more urban, abandonment has been
caused by loss of employment opportunities, lack of economic development, lack of amenities,
commercial development and high crime. The target areas are severely and detrimentally impacted by
the condition of the derelict properties, as evidenced by the fact that in a recent four-month period there
were 3,775 code violations in the target areas.22
In the proposed target areas, 7% of residents between 120% and 80% AMI; 25% of residents between
51% and 80% AMI; and, 58% of residents at or below 50% AMI are housing-cost burdened.23
Large swaths of underused and undervalued land, minimal commercial development, high
unemployment (14.7%)24, poor schools, high crime rates and a history of racial tension and segregation
exacerbating the crisis.
18
TRF Policy Map, 2000
LAUS - Bureau of Labor Statistics
20
Standard & Poors Case/Shiller Monthly Index for Ist Quarter 2009 as reported in The Dallas
Morning News
21
“Lot Supply Hits 100,000 in D-FW,” Dallas Business Journal, (August 15, 2008).
22
City of Dallas Department of Code Compliance, June 2009
23
CHAS Data book found at www.huduser.org, based on 2000 census numbers for the City of Dallas
19
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The Dallas target areas have an unusually high number of vacant lots that contribute to the high rate of
blight. To address this issue, Dallas Area Habitat will use NSP2 funds to build 250 new houses on
vacant lots and sell the houses to low- to moderate-income families. Its efforts will significantly
contribute to the stability of the community by eliminating vacant lots that contribute to blight and
criminal activity, as well as by quickly increasing the number of stable homeowners, who contribute and
are connected to the local economy. NSP efforts will be coordinated with local and regional job and
economic development initiatives to help the target areas stabilize and emerge from the crisis.
Metro Los Angeles, California (Cities of Lynwood and South Gate)
Habitat LA proposes to work in two adjacent communities: the cities of Lynwood and South Gate,
located about 12 miles southeast of downtown Los Angeles. In Lynwood and South Gate,
unemployment has historically been higher than the Los Angeles County average and has recently
increased to 14.5% in South Gate and 17.89% in Lynwood.26 In the proposed target areas,
overvaluation and sub-prime lending, coupled with low incomes for even multiple-income families
(averaging only 60% of the County AMI) 27 have been major factors in the decline of the area. In
addition, high population density coupled with aging and overcrowded housing stock further contribute
to the housing need.
In proposed target areas, 18% of residents between 80% and 120% AMI; 27% of residents between 51%
and 80% AMI; and, 40% of residents at or below 50% AMI are cost burdened.28
In the target areas, the increasing cost of housing has far outpaced the rise in wages and salaries, making
it difficult for working people and even multiple-income families to purchase a house or pay market
rents. The crisis impacts all segments of the housing market, but is particularly dire for those with
limited job skills, lack of financial literacy, limited English proficiency and overcrowded housing
conditions. Overcrowding in existing housing is prevalent. Population density is over seven times
greater that of Los Angeles County as a whole.29 The aging housing stock (average 61 years old) leads
to a growing need for housing rehabilitation.
Habitat LA is the only nonprofit homebuilder providing homeownership opportunities for families at or
below 50% of AMI in the target areas. To address the issues of affordability, overcrowding and the high
rates of foreclosures, Habitat LA will use NSP2 funding to provide 15 soft second mortgages; acquire,
rehabilitate and sell 60 foreclosed properties; build and sell 10 new houses and 3 condominium units on
vacant lots; and, convert a foreclosed church into 20 new housing units. This intervention will
contribute significantly to the stability of the proposed target areas by reducing the number of foreclosed
or abandoned properties in the target areas; increasing the available affordable housing stock; quickly
24
Dallas Federal Reserve Bank, http://www.dallasfed.org/data/region.html
RealtyTrac.com
26
California State Employment Development Department, www.labormarketinfo.edd.ca.gov
27
www.GeoLytics.com
28
www.labormaeketinfo.edd.ca.gov
29
Nielsen-Claritas 2008
25
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increasing the levels of stable homeowners to the community and removing blighted and vacant
properties.
Brooklyn, New York
The proposed target areas are located five miles east of downtown Manhattan in the Ocean Hill and
Bedford Stuyvesant neighborhoods of Brooklyn. These are economically distressed areas that have been
hit hard by the economic downturn. The already high cost of housing has been further exacerbated by
increased unemployment. The steady rise in the unemployment rate – the most recent figure places it at
8.7%31 – has weakened local businesses and destabilized the economic base. Subprime mortgages
make up nearly half of all mortgages issued in 2007 in the targeted areas.32 The foreclosure rate
averages one foreclosure out of every five houses. Over-valuation of housing and high concentration of
unsustainable subprime loans constitutes some of the critical factors causing the foreclosure problem. A
high number of vacant properties (612) also plagues the target areas, contributing to high crime and
blight. Due to past disinvestment, much of the area’s aging housing stock has been demolished in recent
years and left undeveloped.
In Ocean Hill, 68% of households at or below 50% of AMI are cost burdened. In Bedford Stuyvesant,
61% of households at or below 50% of AMI are cost burdened.33 7% between 51% and 80% AMI are
cost burdened.34 5% of residents between 81% and 120% AMI are cost burdened.
In the target areas, major crime complaints have also increased in the target areas by 4.5% this year.35
This high crime rate has hindered stabilization of the housing market.36
To help stabilize the economy, address the issue of blight caused by the vacant lots and the high
foreclosure rates, Habitat-NYC will use NSP2 funds to acquire, rehabilitate and sell 70 foreclosed or
abandoned properties. In addition, Habitat-NYC will construct 30 new condominium units on tax
foreclosed, currently vacant lots. Habitat efforts will be instrumental in stabilizing the economic
foundation of the target areas by increasing the number of stable, contributing homeowners; reducing
the number of foreclosed or abandoned properties; increasing the available affordable housing stock;
and, removing blighted and vacant properties.
30
RealtyTrac.com
NYC Dept of Labor Report, May 2009
32
PolicyMap.com, 2007 data
33
American Community Survey, 2007
34
www.policymap.com/map, 2000
35
Brooklyn 73rd Precinct CompStat Volume 16, Number 19. 5/10/2009
36
HUD USER, June 2009, http://www.huduser.org/nspgis/excel/NSP2-NY.xls
31
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Milwaukee, Wisconsin
Habitat Milwaukee will work in the Amani, Washington Park and Harambee neighborhoods of
Milwaukee’s inner city. The target areas suffer from low homeownership rates (only 35%)38, a high
number of vacant lots (340)39 left from years of disinvestment, causing increased blight and rising crime
rates. The City of Milwaukee's poverty rate is ranked seventh worst among large cities in the US. 40
Proposed target areas have also been affected by high rates of subprime loans (75% of recent
mortgages), 41 and predatory lending practices. Milwaukee also currently has an unemployment rate of
8.9%, with much higher rates (15% and higher) in the proposed target areas.42 Most residents in these
areas who are employed work primarily in the manufacturing and the service sectors, which offer only
low-paying jobs and have suffered greatly from the economic downturn.
In the proposed target areas, 4% of residents between 80% and 120% AMI; 8% between 51% and 80%
AMI; and 16% of households at or below 50% of AMI are cost burdened.43
The age of the housing stock also poses a problem. It is, on average, 58 years old and deteriorating
rapidly.44 Even though there is a high number of foreclosed properties in the target areas (937), Habitat
Milwaukee has found that often these properties are in such a state of disrepair that the costs of
rehabilitating these older, larger houses are far greater than those of building new houses on vacant lots
next door. Moreover, low- to moderate-income residents have difficulty affording regular maintenance
and the utilities on such large properties.
Milwaukee Habitat is the only nonprofit provider of homeownership opportunities for families at or
below 50% AMI in Milwaukee. To address the glut of vacant lots, Habitat Milwaukee will use NSP2
funds to build and sell 100 new houses on vacant lots. This intervention will remove vacant properties
in the target areas; increase the levels of stable homeowners to the community; and provide families
with affordable, easily manageable and energy efficient houses.
2. Rating Factor 2: Demonstrated Capacity of the Applicant and Relevant Organizational
Staff
a. Past Experience of the applicant.
In 2008, Habitat was the nation’s sixth largest homebuilder, with local operations in all 50 states and in
1,500 communities across the US. 45 Since inception, Habitat has built and rehabilitated over 70,000
37
RealtyTrac.com
US Census Bureau, 2000
39
The number of vacant lots is expected to increase because of demolition activities under NSP 1 by
the City of Milwaukee.
40
2007 American Community Survey
41
According to a study done by the University of Wisconsin-Milwaukee
42
Compass Statistical Data, City of Milwaukee
43
TRF Policy Map
44
Federal Financial Institutions Examination Council, 2008
45
National Housing Conference
38
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houses in the US. Habitat works with communities to respond to local housing problems, providing a
range of affordable housing solutions including new house construction, rehabilitation of existing
houses, disaster response and recovery, housing mortgage finance and energy conservation, and exterior
repair and maintenance.
Habitat For Humanity International (HFHI) is the parent organization in a federated organization
model. It leverages significant resources to strengthen the capacity of its 1,500 local affiliates to create
more community-based solutions to help ensure homeowner, organizational and neighborhood
sustainability. HFHI offers affiliates multiple layers of support and specialized services. They can
access technical expertise, capacity building and organizational development assistance, as well as
training and funding opportunities. Affiliates are locally run, grassroots, nonprofit affordable housing
organizations who mobilize physical, financial and social capital at the local level to achieve Habitat’s
mission.
HFHI affirms that the NSP2 team (HFHI and the seven Habitat affiliates) has the ability to expend an
NSP2 grant for the proposed scope of work within statutory deadlines. Collectively, it has carried out
and completed activities eligible under this notice involving at least 75 units of housing including
housing counseling, construction of new housing, acquisition and disposition of housing and
rehabilitation of housing and community development. In the last 24 months, in total, Habitat’s NSP2
team affiliates have rehabilitated or constructed 795 houses.
Below are just a few examples from the last 24 months of the NSP2 team’s experience and success in
implementing community development and neighborhood stabilization related activities throughout the
country:
Habitat for Humanity International experience
Grant administration
HFHI has gained valuable experience from both successes and challenges over the years. Periodic reevaluation of existing monitoring and administrative controls positions HFHI to aggressively plan and
implement NSP2 funding. HFHI has a well-trained and experienced staff and substantial experience
meeting federal grant requirements. The grant department was formalized in 1996 with a $25 million
grant from HUD. Over the years, the department has grown and expanded to managing and disbursing
lending resources. This department administers a wide range of funding opportunities for Habitat
affiliates. Donor partnerships range from $6 million to $135 million. To date, HFHI has received in
excess of $650 million in grant funding. This includes federal grants such as HUD SHOP ($148M),
HUD Capacity Building ($50M) and CNCS AmeriCorps ($90M). HFHI currently has more than 1,000
open grant accounts with affiliates. HFHI completes an OMB-A133 audit annually with no findings to
date. Additionally, we have completed multiple on-site reviews by HUD with no findings.
Self-help Homeownership Opportunity Program (SHOP)
HFHI has managed its SHOP program since 1996. To date HFHI is the largest recipient of SHOP
funding in the nation. More than 12,700 families now have houses due to this partnership with HUD. In
the last 24 months, HFHI has disbursed to affiliates and administered $21,654,670 from HUD’s SHOP
program in subgrants. These funds were sub-granted to Habitat affiliates across the nation for land
acquisition and infrastructure improvements to complete 1,271 units. SHOP has received an “effective”
rating in the OMB PART Assessment, which is the highest rating a program may receive.
Section 4 - Capacity Building for Community Development and Affordable Housing
HFHI has received Section 4 funding since 1998. Within the last 24 months, HFHI has been awarded
over $6.3 million in funding. These funds are used to increase the capacity of Habitat affiliates.
Habitat’s program has been highly successful in achieving HUD’s goal of increasing the capacity of
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community-based organizations. On average, Habitat affiliates participating in the program increased
their capacity by 40%.
Sustainable Building
HFHI has been promoting energy efficient building standards for more than ten years. HFHI was one of
the first national homebuilders to promote and encourage ENERGY STAR standards, and to train its
local affiliates to meet this level of construction. In recognition of these efforts and Habitat’s
commitment to the “LEED for Homes” program, HFHI was awarded the US Green Building Council’s
“Outstanding Program Contribution Award” in 2008.
The pursuit of higher green building standards by Habitat affiliates is the focus of a $30 million fiveyear partnership between the House Depot Foundation and HFHI, called “Partners in Sustainable
Building” (PSB). Launched in 2007, the goal of this partnership is to support Habitat affiliates in the
production of at least 5,000 Habitat houses, which are built to ENERGY STAR green building
standards, or higher.
Working productively with other organizations
During the past 24 months, Thrivent Financial has worked with HFHI to build more than 1,000 houses
worldwide, raise more than $60 million and contribute more than 350,000 volunteer hours. HFHI’s
range of national partners in the US includes other corporations and organizations. Among HFHI’s
current list of over 50 corporate partners are Home Depot, Lowes, Citi, Delta, Dow Chemical, State
Farm, Weyerhaeuser, Valspar and Whirlpool. Additional partnerships include The Salvation Army, the
National Association of Realtors and the National Association of Homebuilders.
Habitat NSP2 team affiliate experience
a.(1) City and regional planning
Over the last 24 months, the NSP2 team affiliates have worked closely and in conjunction with
neighborhoods, city, county and regional planning authorities in devising the Consolidated Housing
Action Plans that municipalities submit to HUD. They also have worked with government planning and
zoning staff to develop land use and zoning revisions appropriate for neighborhood development. Below
are some examples from each Habitat NSP2 team affiliate:
Habitat Collier County has a strong partnership with the municipal government in planning,
zoning and permitting both in-fill housing and the construction of complete subdivisions in
Collier County. Habitat Collier County works collaboratively with Collier County to coordinate
development activities and effectively leverage the resources available to the entire county.
Pensacola Habitat works with local government poverty solutions teams to examine all poverty
issues and advises on affordable housing issues. It serves on the state mandated Evaluation and
Appraisal Report Committee, which reviews how successful a community has been in addressing
major community land use planning issues through implementation of its comprehensive plan.
Additionally, Pensacola Habitat has advised local government on NSP1 action plans, serves on
city/county affordable housing committees and on “Unite Escambia County” poverty solution
teams.
Habitat Miami participates in charrettes and public hearings for county/city consolidated plans
and action plans and works with government planning and zoning staff to develop land use and
zoning revisions appropriate for neighborhood development. Habitat Miami sits on the Miami
Gardens Affordable Housing Committee and South Florida Workforce Board.
Dallas Area Habitat serves on the Mayor’s Affordable Housing Task Force, Southern Dallas
Task Force, the West Dallas Chamber of Commerce and the Dallas Development Fund (an entity
reviewing new market tax credits on behalf of the City of Dallas). They are also a premiere
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member of the Dallas Sustainable Skyline Initiative, which is a joint effort of the EPA, the City
of Dallas and the North Texas Council of Government to improve air quality.
Habitat LA co-sponsors the annual Mayoral Housing Summit, which brings together community
leaders to address the regions housing needs. Habitat LA also participated in the development
and execution of the LA County Housing Scorecard that compared the regions housing needs
between cities and contrasted housing policies and deficiencies to other areas of California.
Habitat-NYC has significant experience with city and regional planning, having partnered with
New York City’s urban renewal implementing agency and the Department of Housing
Preservation and Development (HPD) for more than 20 years. Over 75% of the total homes
built by Habitat-NYC have involved community and neighborhood planning, having been built
in urban renewal areas, including the 41 completed in the last 24 months. The organization’s
abilities and skills in planning, construction and bringing families to these communities assisted
the City in meeting its stabilization goals. Habitat-NYC was selected by the City as a key nonprofit to provide guidance on the City’s NSP1 efforts. In addition, Habitat-NYC’s NSP2 target
area was selected in consultation with HPD to address the City’s Neighborhood Wide
Redevelopment goals.
Milwaukee Habitat actively participates in a coalition of community stakeholders including,
residents, the City of Milwaukee and other nonprofits, and has developed an extensive, long-term
neighborhood action plan that complements Milwaukee’s citywide community development
plan. Milwaukee Habitat has also been an active participant in the city’s planning process for the
proposed target areas.
a.(2) Acquisition and disposition of foreclosed real estate
The NSP2 team affiliates are experienced in a wide variety of real property purchases – including vacant
and abandoned foreclosed houses; single lots and development tracts; and, purchases from private
parties, bank REO portfolios, and city and county housing authorities. Over the last 24 months, they
have developed 129 foreclosed properties that have been acquired and rehabilitated as mentioned in
section (a)(2). The seven affiliates have purchased and prepared the sites, secured project funding,
constructed or rehabilitated the houses, recruited and qualified the homeowners, sold the houses, carried
and serviced the mortgages and provided support to families throughout the tenure of the mortgage.
They have extensive experience in performing loan underwriting analyses, establishing loan documents
and settlement statements, preparing closings and establishing escrow accounts, and assuring initial
affordability of the mortgage loan for low- to moderate-income first-time homebuyers.
a.(3) Rehabilitation of housing
In the past 24 months, the NSP2 team affiliates have built or rehabilitated 318 housing units, relying on
expert knowledge of the contextualization of housing solutions; developing and ensuring adherence to
construction standards; and, energy efficiency construction standards.
a.(4) Redevelopment of vacant property
In the past 24 months, the NSP2 team affiliates have constructed 477 new houses, relying on expert
knowledge of the contextualization of housing solutions; developing and ensuring adherence to
construction standards; and, energy efficiency construction standards. This activity involves purchasing
the property, demolishing existing structures and building new houses on the vacant lots.
Additionally, the Habitat NSP2 team affiliates possess significant experience in sustainable building
practices. They routinely build to high green standards, such as a LEED for Homes. In the past 24
months, Habitat NSP2 team affiliates have built 600 houses that meet or exceed ENERGY STAR
standards.
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a.(5) Program marketing and management of waiting lists for potential residents
Habitat’s brand ranks as the seventh most valuable among charities in the world. The Habitat NSP2
team affiliates will leverage this strength to develop strategic partnerships, beneficiaries, funding and
other resources to support the NSP2 program. These affiliates have extensive expertise in affirmatively
marketing their programs at the local level to low- to moderate-income and underserved populations
using a variety of methods, including print materials, press releases, e-newsletters, broadcast media,
social media and face-to-face engagement of community stakeholders.
Typically, Habitat affiliates do not manage waiting lists. In any given year, far more households apply
for Habitat houses than there are houses available. For every house built, there is a pre-qualified family
ready to assume ownership. In the last 24 months, the Habitat NSP2 team affiliates have pre-qualified
1,200 low- to moderate-income families for Habitat houses but only 795 houses were available for these
families.
a.(6) Accessing operating and investment capital
The NSP2 team has extensive experience in accessing operating and investment capital. The last
audited financial statements for the eight members of the NSP2 team recorded net assets in excess of
$383,000,000 and total revenues of $343,000,000. This large capital and revenue base provides a strong
financial underpinning for the NSP2 team.
a.(7) Working productively with other organizations
Developing meaningful and impactful strategic partnerships are critical to the success of the Habitat
NSP2 team’s holistic and comprehensive approach to community development. Partnerships provide
opportunities for shared resources, coordinated service delivery and deeper impact in the community.
Collectively, the NSP2 team affiliates have over 1,000 strategic partnerships in place and 326 were
developed over the last 24 months. Below are a few of those:
Habitat Collier County has partnered with the Christ Child Society to provide beds and
bedding for Habitat children. Literacy Volunteers of America teaches English to Habitat
homeowners. Additionally, through Florida’s Community Contribution Tax Credit
Program, 35 local businesses have formed a strategic partnership with Habitat Collier
County to build houses.
Pensacola Habitat is helping to combat high unemployment rates through a partnership
with George Stone Vocational School and Pensacola Junior College Construction
Workforce Program. They have also partnered with Unite Escambia – a community-wide
collaborative effort. Additionally, they have been working with Community Action of NW
Florida to coordinate revitalization activities.
Habitat Miami has partnered with the D. A. Dorsey Educational Center, part of MiamiDade County public schools, to provide the “classroom” setting for students studying
construction. Additional partners include Greater Miami Service Corps and the local
YWCA.
Dallas Area Habitat works with the Dallas County Home Loan Counseling Center Agency
to recruit and qualify potential homeowners. Dallas Neighborhood Homes markets and
helps sell Habitat houses to income-eligible buyers.
Habitat LA has formed a partnership with the One Economy Foundation – an organization
that connects homeowners to technological resources by providing computers and internet
access in every Habitat house built. Another nonprofit, GRID Alternatives provides solar
systems for eligible Habitat houses.
Habitat-NYC is a member of the REO in NYC Working Group, a coalition of representatives
from New York City, New York State, and non-profit housing counseling agencies, technical
assistance providers and affordable housing developers such as LISC and Enterprise. This
11
group has been working collaboratively over the last several months to address issues of the
foreclosure crisis and weakened economy.
Milwaukee Habitat has coordinated with Allied Churches Teaching Self-Empowerment
(ACTS), a community-based housing organization. ACTS helps about 80 low- to
moderate-income families each year purchase and rehabilitate foreclosed and abandoned
properties. Milwaukee Habitat has also coordinated with the Dominican Center in the
Amani neighborhood to do similar work.
b. Management structure
b(1) Management structure and organizational chart
The * indicates positions “to be hired”; Positions in the organizational chart not described in the
narrative below will support the NSP2 program but will be covered under indirect costs.
International
Board of
Directors
Internal Audit
CEO –
Jonathan
Reckford
CFO – Ed
Quibell
Govt Affairs –
SVP Liz Blake
Legal Counsel
Real Estate Sue Henderson
Community development
specialist
Green building specialist
Gen. Counsel Hillary Harp
ControllerKen Beers
US/Canada Area
- Larry Gluth, VP
Grants/Donor
Compliance &
Reporting
US/Canada Area
- Mark Andrews,
Sr. Director
Operations
Grant
Accounting
Manager
Government
Grants &
Lending
Resources
Senior Grant
Accountant*
Grant
Coordinator*
Construction/rehab
specialist
State Relations
- John Snook
Property acquisition
specialist
Advisory
Committee
for NSP
NSP2 Compliance
Training Officers (3)*
NSP2 Program Manager*
NSP2
Senior Grant Officer*
NSP2
Associate Manager*
NSP2
Grant Officers (3)*
Grant Accounting
Officer
Roles and Responsibilities for the Day-to-Day Management of the NSP2 Grant
NSP2 Advisory Committee
An advisory group will be established with a cross-section of skills from several departments such as
legal, finance, program and government relations. This group will assist with high-level decisions, as
needed.
NSP2 Program Department
The day-to-day management will be the role of HFHI’s government grant and lending resources
department.
12
Director of government grants and lending resources – Donna Golden: Responsible for approval of all
disbursements and HUD reports; supervise program manager and compliance/training officers; oversees
on-site monitoring compliance program and affiliate training. Ms. Golden has 12 years’ experience
working with government grants such as SHOP and Section 4.
NSP2 program manager - to be hired: Responsible for day-to-day grant administration; affiliate and
program grant compliance; implementation of procedures; proper A-133 documentation requirements;
approval of disbursements; statistical and narrative HUD reports; HFHI’s liaison with HUD’s NSP2
grant administrator; communication and relationships with participating affiliates; supervises the NSP2
associate manager and senior grant officer.
NSP2 associate manager – to be hired: Responsible for supervising NSP2 grant officers; program daily
operations; program reports; environmental review documentation; oversee award amendments; monitor
contracts and grants; compliance monitoring.
NSP2 senior grant officer – to be hired: Responsible for high level review and verification of eligible
expenses based on disbursement request; monitoring affiliate benchmarks; and grant technical support
to affiliates.
3 NSP2 grant officers – to be hired: Responsible for grant technical assistance to affiliates; monitoring
affiliate progress; recordkeeping.
3 NSP2 compliance/training officers- to be hired: Responsible for assuring affiliates are in compliance
with all federal and program requirements through on-site monitoring.
Grant accounting coordinator- to be hired: Responsible for reviewing, coding and preparing
administrative expenses for approval; NSP2 surveys; updates for the NSP2 online course and reference
manual; and, NSP Employee’s Procedures Manual.
Finance Grant Compliance Department
Director of grant compliance and donor reporting –Mesfin Amanew: Responsible for grants financial
management, compliance with grantors’ financial requirements including financial reports and annual
A-133 external audit. Mr. Amanew has over 22 years of federal grants management experience.
Grant accounting manager – Robert Herrera: Responsible for HUD grants financial management and
compliance including financial reporting. Mr. Herrera has over 15 years of financial management with
government grants.
Senior grant accountant – to be hired: Responsible for NSP2 grant financial management and
compliance including financial monitoring.
Grant accounting officer – Leslie Stewart: Responsible for preparing payment requests, draw requests;
tracking revenue; costs transfers; variance analysis; financial reports; general journal and ensuring
financial compliance. Ms. Stewart has 4 years of experience with HFHI, of which 2.5 years have been
under her current role, which includes HUD related grants.
HFHI program support
In addition to the grants administration and monitoring activities, HFHI will provide training and
technical assistance to Habitat affiliates in related NSP2 activity areas including community
development, sustainable building and construction technologies. The following staff members will
coordinate technical assistance delivery.
13
Martha Collier is a Community Development Consultant for HFHI. She has spent over 25 years
working in the community development field, with expertise in community collaboration evaluation;
strategic partnership development; community organizing; and, community coalition building.
Kevin Gobble is a Green Building Specialist for HFHI. He has over 14 years in residential construction,
specifically the construction of energy efficient, higher performing houses. He has industry certifications
from Earthcraft Builder, NARI Certified Remodeler, NAHB Certified Green Professional, RESNET
Certified Green Rater, BPI Building Analyst and LEED AP.
Russ Griffith is a Construction/Rehabilitation Specialist with HFHI. He has over 12 years experience in
construction project management; and, construction training including project management, volunteer
management, leadership and cost and quality control.
HFHI will hire an NSP Property Acquisition Specialist. This staff position will provide support and
technical assistance to the participating affiliates as they acquire foreclosed and abandoned properties to
develop in accordance with their NSP2 eligible activities; and assure that the acquisition of such
properties complies with all applicable NSP2 requirements and regulations.
Affiliate management staff
Each affiliate has also assembled a NSP2 management team, which includes the affiliate senior
leadership, a NSP2 program manager and a construction manager. Senior leadership will be responsible
for strategic planning, partnership development and program oversight. The NSP Program Manager will
be responsible for program supervision and reporting. The Construction Manager will oversee
rehabilitation and construction activities.
Position
Senior leadership
CC
Sam Durso
Program manager Cheryl
Malone
Construction/real Nick
estate manager
Kouloheras
Pen
Miami
Hal Major Anne
Manning
Natalie
Luis Azan
Stolfi
Rick
Jerry Bass
Evans
Financial/internal Denise
Dianne
David
audit
Damianakes McMaster Bennett
Dallas
Bill Hall
LA
Erin Rank
Kristen
Schulz
Mike
Haigh
Steve
Sferrino
Mark Van
Lue
Ann Floyd Gia Stokes
NYC
Rachel
Hyman
Mike
Gilliard
Mike
Campbell
Neeraj
Nagpal
MW
Sara
Kierzek
Peter
Nestingen
Adam
HeltBaldwin
Cescilly
Owens
b.(2)References
HFHI: (1) Louise D. Thompson; HUD, Community Planning & Development; 451 7th Street,
SW, Suite 7168; Washington, DC 20410; (202) 402-4594; Louise.D.Thompson@hud.gov; (2)
Clifford Taffet; HUD, Office of Affordable Housing Programs; 451 7th Street, SW, Suite 7162,
Washington, DC; (202) 708- 2684; Clifford.taffet@hud.gov
Habitat Collier County: Frank Ramsey, Manager; Housing Development; Collier County
Housing & Human Services; 3301 E. Tamiami Trail; Naples, FL; 34112; (239) 252-2273;
frankramsey@colliergov.net
Pensacola Habitat: Janice Boone; Housing Program Manager; Santa Rosa County Housing;
6051 Old Bagdad Hwy; Milton, FL; 32583; (850) 981-7076; janiceb@santarosa.fl.gov
14
Habitat Miami: Cynthia W. Curry; Senior Advisor, County Manager’s Office; Miami-Dade
County;111 NW 1st Street; Miami FL; 33128; (305) 375-4126; cwcurry@miamidade.gov
Dallas Area Habitat: Bernadette Mitchell; Assistant Director of Housing; City of Dallas; City
Hall, Room 6CN, 1500 Marilla Street; Dallas, Texas; 75201; (214) 670-3619;
Bernadette.mitchell@dallascityhall.com
Habitat LA: Olivia Segura, Deputy Director of Redevelopment City of Lynwood; 11330 Bullis
Road; Lynwood, CA; 90262; 310-603-0220; osegura@lynwood.ca.us
Habitat - NYC: Michal L. Aronson, Director, New Construction Special Initiatives; NYC
Department of Housing Preservation & Development;100 Gold Street, Rm 9I-7; New York, New
York; 10038; (212) 863-6277; aronsonm@hpd.nyc.gov
Milwaukee Habitat: Leo Reis, Executive Director; Milwaukee LISC; 660 East Mason Street;
Milwaukee, WI; 53202; 404-273-1815; lries@lisc.org
3. Rating Factor 3: Soundness of approach
a. Proposed Activities
a.(1)Brief description of overall neighborhood stabilization program.
The Habitat model
Since its inception in 1976, Habitat for Humanity has grown to become the largest private homebuilder
(the 6th largest overall)46 in the US and is the nation’s leading producer of modest, affordable houses for
low- to moderate-income families. What sets Habitat apart from other homebuilders is its focus on the
long-term success and sustainability of the nation’s low- to moderate-income families at or below 80%
AMI. Unlike any other builder, Habitat mobilizes thousands of congregations, businesses, local
government partners, foundations, building supply manufacturers and distributors and nearly 1,000,000
volunteers annually to build and rehabilitate houses for and with 6,500 low- to moderate-income
families each year. After the houses are built, they are sold to pre-qualified families who have
contributed hundreds of hours of “sweat equity” to the building of their house. Based on Habitat’s
historic 1 to 2% default rate, these families will be successful homeowners and these properties will not
be subject to re-foreclosure.
Habitat’s financial model relies on contributed resources (labor, materials and funds) to construct our
projects, cutting down on the total costs. This model allows the local affiliate to assure long-term
affordability to the home buying family through the offering of affordable mortgages. Habitat affiliates
offer 20-30 year, 0% interest mortgages. Unlike the subprime loans that sparked the current economic
crisis, Habitat loans are fixed rate for the full term of the loan, with minimal closing costs.
With its ability to mobilize considerable resources, Habitat’s program helps revitalize communities by
injecting new, “non-traditional” housing resources into communities across the country. Each year
Habitat homeowners reside in their house (an estimated 80% of Habitat homeowners are still in their
houses), they provide strength and stability to their neighborhoods. Finally, since Habitat’s housing
development work is carried out by more than 1,500 local affiliates, the Habitat approach combines its
nationally coordinated program and administrative support with highly contextualized local affordable
housing solutions.
NSP2 program
Habitat For Humanity International (HFHI) has identified the following seven communities served by a
corresponding Habitat affiliate, to carry out the activities of this proposal:
46
National Housing Conference
15
1.
2.
3.
4.
5.
Collier County (Naples), FL - Habitat for Humanity Collier County
Pensacola, FL - Pensacola Habitat for Humanity
Miami, FL - Habitat for Humanity of Greater Miami
Dallas, TX - Dallas Area Habitat for Humanity
Metro Los Angeles, CA (cities of Lynwood and South Gate) - Habitat for Humanity of Greater
Los Angeles
6. Brooklyn, NY - Habitat for Humanity - New York City
7. Milwaukee, WI - Milwaukee Habitat for Humanity
HFHI, as the grantee, will engage each affiliate as a developer to complete all of the NSP2 projects
located within its respective community. In each of the seven target areas, the NSP2 team (HFHI and
each of the seven affiliates) will provide at least 100 units of housing resulting in a minimum of $14
million in total development costs per area. In total, the Habitat NSP2 team will provide 1,088 units of
affordable housing and invest nearly $205 million dollars in the proposed target areas.
Habitat affiliates will build on existing community development efforts. They have sufficient staff and
resources in place to launch proposed activities immediately. Each affiliate has agreed in writing to
undertake this work, subject to receipt by HFHI of an NSP2 award. The NSP2 team will enter into a
definitive, final contractual agreement upon receipt of such an award.
Goals and Objectives
The Habitat NSP2 team’s long-term goal in each target area is to build a more sustainable community.
The proposed NSP2 program will achieve this goal by coordinating efforts with local community
partners and focusing on housing solutions within Habitat’s areas of expertise to achieve the following
objectives:
Increase the affordable housing stock by purchasing, rehabilitating and returning houses to
occupancy, where appropriate
Increase the affordable housing stock by purchasing, demolishing and rebuilding affordable
houses, where appropriate
Build new infill housing on vacant lots, where appropriate
Offer appropriate mortgage products to low- to moderate-income families
Incorporate energy efficient technologies and sustainable building practices in all activities
Provide critical housing support services to low- to moderate-income families
Mobilize community volunteers and greater resources to the target areas
Strengthen existing strategic partnerships and generate new ones to holistically address
community challenges
Engage a broad collection of key neighborhood stakeholders, including local government,
businesses and, most importantly, residents in creating and implementing solutions
Collect and analyze data to provide information to community leaders and the public
Outcomes
The Habitat NSP2 team is committed to conducting comprehensive evaluations of all its programs. As
part of the evaluation plan for the proposed NSP2 program, the Habitat NSP2 team will measure
progress toward the outcomes listed below, relying on community-based qualitative and quantitative
research, using web-based technology, GIS mapping tools, current local data, comprehensive
information tracking systems, community surveys, and input from community stakeholders. In each of
the proposed target areas, the Habitat NSP2 team will realize the following outcomes, aligned with the
outcomes discussed in the NSP2 NOFA:
16
Short term (1-3 years):
Arrested decline in house values based on average sales price by converting lower-priced
assisted REO purchases to future higher-priced private market sales.
Maintain and enhance house values by providing high quality maintenance and by making
capital improvements
Maintain house values by inducing long-term homeownership with financial incentives
Reduction or elimination of vacant and abandoned residential property- by acquiring and
returning these to the housing market
Target and purchase the most distressed or blighted properties –improve and return to the
market
Increased private-market sales as a percent of all sales by reducing the number REO sales of
residential properties in targeted neighborhoods
Increase sales to qualified homebuyers with the use of Habitat down payment assistance
Increased energy efficiency (and reduce utility costs) of NSP properties
Provide a direct and indirect economic boost to local and regional economies by spending on
construction, lending, brokerage and related services
Long term (3-5 years):
Increased median market values of real estate in target neighborhoods
Increased neighborhood security resulting from homeownership
Extend the longevity of the assisted housing stock by means of high quality rehabilitation and
capital replacements and enhancements
NSP2 Program Activities
As discussed in further detail in section 3.a.(2)(b) Proposed activities on page 21, in each community,
the proposed activities will expand the Habitat affiliate’s existing efforts, build on existing NSP 1
activities and strategically complement other NSP2 activities, primarily because the Habitat NSP2 team
serves the lower income levels of the NSP required income range. In each target area, the Habitat NSP2
team has developed appropriate responses to the crisis based on the proven Habitat model.
Property acquisition
NSP2 funds will be used to acquire foreclosed or abandoned houses, vacant structures and vacant lots in
appropriate target areas for rehabilitation. All properties purchased under this activity will meet the
required minimum Fair Market Value (FMV) purchase discount of at least 1% below current market
appraised value. Actual FMV discounts will be verified by third-party appraisal. Prior to purchase, the
Habitat NSP2 team will ensure an environmental review in accordance with 24CFR Part 50 is approved
by HUD, clear title, conduct thorough inspections to assess rehabilitation and other costs and
aggressively negotiate to obtain the lowest possible purchase price. The Habitat NSP2 team will not use
NSP funds to purchase occupied houses, and as such, will not encounter the need to arrange for
relocation of families. Should the need arise HFHI has highly qualified staff to assure compliance with
the URA. The Habitat NSP2 team will identify eligible properties from the following sources:
National Community Stabilization Trust (NCST): The NCST, HFHI and its local affiliates and
state support organizations have been in regular dialogue since release of the NSP1 regulations in
2008. As prospective purchasers of NSP properties, members of the Habitat network are ideal
users of the REO coordination services provided by the Trust. Both organizations are committed
to working in coordinated ways that expand the ability of communities to respond to the
problems caused by the large and growing number of foreclosed and abandoned residential
properties. NCST and HFHI intend to continue to consult and coordinate on NSP 1 activities
17
and, to the extent that either or both organizations receive funding awards from HUD, these
efforts will continue for NSP2.
Local municipalities: As part of the NSP2 program, the Habitat NSP2 team will work with local
government to identify and purchase properties for the program. Three affiliates (Dallas, NYC
and Miami) have already received donated or purchased deeply discounted properties from city
and county agencies.
REO (Real Estate Owned) properties acquisition: In addition to working with the NCST, the
Habitat NSP2 team has established partnerships and agreements with Citi, Wells Fargo, Bank of
America and JPMorgan Chase & Co. to work together in the proposed target areas to identify
and purchase suitable REO properties to implement NSP2 activities.
Local brokers: The Habitat NSP2 team will train and utilize local brokers with regard to NSP
program requirements such as location, occupancy, pricing, buyer qualifications, approved loan
types, etc.
Foreclosure Databases: Affiliates will establish databases, collect, and track information on preforeclosures, properties to be auctioned, and lender REO’s for acquisition and market monitoring
purposes.
House construction and rehabilitation
Under NSP2 Eligible Activity B, the Habitat NSP2 team will rehabilitate acquired foreclosed and
abandoned properties. Prior to the start of any NSP2 activities, environmental reviews will be
conducted that meet NSP2 statutory requirements. Each Habitat NSP2 team affiliate will work with the
local HUD office to conduct all environmental reviews. Each property will be brought up to current
code using the latest rehabilitation methods and the rehabilitation standards attached to this application.
Where lots have been cleared by the Habitat NSP2 team or a partner, or on existing vacant lots, the
Habitat NSP2 team will build new houses. All new construction houses and gut-rehabs will exceed
ENERY STAR standards. Affiliates in Florida will comply with state and county hurricane damage
mitigation rehab and construction standards.
Property disposition
The Habitat NSP2 team will sell all rehabilitated and new houses to low- to moderate-income families at
or below 80% AMI. Because of the overwhelming need for affordable housing in each of the target
areas, the demand for Habitat houses is high and continues to grow. Potential applicants are identified
from the local communities via referrals, walk-ins and local partnerships with other housing, churches
and social service organizations, purchase of local renter databases and public and public awareness
raising events conducted by the NSP2 team.
Homebuyer selection
The Habitat NSP2 team will use HUD’s 2009 Income Limits Chart to determine income eligibility. A
homeowner’s ability to pay is based on four factors:
The family has a reliable source of income, verified by acceptable documentation
The family’s annual income is not less than 30%of AMI
The family’s income is adequate to make the monthly principal, tax and insurance payments
while also meeting their other debt and living expenses.
The family has a credit history that would support their ability to sign a mortgage and they
have a demonstrated history of making payments on time
In addition, qualified homebuyers for the Habitat NSP2 program are selected based on the following
criteria:
Need: Sufficient need is determined when a family
18
o Does not qualify for homeownership through conventional financing or any other
special purpose loan program
o Has an annual income that is not more than 80% of AMI
o Has one or more of the following need-related factors:
 the family is extremely “cost-burdened” (defined as spending 50 percent or
more of their income for housing) and does not have the down payment for a
house
 the family is not currently cost-burdened as defined above only because they
are receiving temporary, non-sustainable financial support
 their current housing has defective physical conditions
 their current housing is overcrowded
 the family is living in temporary housing g, such as a tentative living
arrangement with relatives , or living in a transitional housing facility
Willingness to partner: Qualified homeowners are committed to being a full partner in the
construction of their house. The homeowner understands Habitat’s “sweat-equity”
requirement and is willing to fulfill it and to participate in pre-purchase counseling.
Housing finance
Households who are selected to purchase a Habitat house will be provided with a 20-30 year, 0%
interest mortgage from their local Habitat affiliate to finance the purchase of that house. In Brooklyn,
New York only, 2% mortgages with the loan principal discounted to a level that matches a 0% mortgage
at full price will be offered by approved banks with State of NY mortgage insurance. The program
structure meets all NSP2 statutory and regulatory requirements. Furthermore, in the event that the
Habitat NSP2 team affiliate needs to write down the principal amount of its first mortgages to an amount
less than the market value to achieve affordability, the affiliate will place a deferred and forgivable
second mortgage on the property for the difference between the value of the first mortgage and the
house’s appraised value at sale. The combination of the first and second mortgages will be equal to the
appraised value of the house at time of sale.
Supplemental Activities
As described below in more detail, the Habitat NSP2 affiliates in each community will conduct a range
of supplemental, non-NSP2 funded activities designed to support NSP2 activities and to connect
residents of target areas with resources to enhance their quality of life. HFHI is currently in discussions
with JPMorgan Chase & Co. to secure funding for the repair and weatherization programs described
below. If such funding is received, it would allow this work to be done on thousands of owner-occupied
houses in the target areas. See Appendix 3 (Exhibit F). The two programs are as follows:
A Brush With Kindness (ABWK)
Through ABWK, the Habitat NSP2 team affiliates organize volunteers and materials to perform external
repairs and maintenance on owner-occupied houses of low-to-moderate income families surrounding
redevelopment activities in the targeted areas. Families and neighborhoods both benefit from increased
housing quality and pride after repairs. The improved appearance of houses buttresses the values of
surrounding properties. Currently, five of the seven affiliates included in this proposal will be
conducting ABWK activities. These activities will not be funded with NSP2 funding and will be
conducted on houses not being rehabilitated or constructed by Habitat NSP2 team, but on other homes in
the same community.
Weatherization
Reducing the cost of energy for struggling families is critical to sustainability. The Habitat NSP2 team
affiliates, or a Habitat partner organization, will promote weatherization services and in some cases,
deliver services to families in target areas. The Habitat NSP2 team will encourage and assist, where
19
needed, families to apply for weatherization funding through the Department of Energy or through their
local Community Action Agencies. These activities will not be funded with NSP2 funding and will be
conducted on houses not being rehabilitated or constructed by Habitat NSP2 team, but on other homes in
the same community.
3.a.(2) Uses of funds and firm commitments
3.a.(2)(a)Use of funds allocation by activity
NSP Eligible
Correlated Eligible Responsible
Activity
Activities From the Entities
CDBG Entitlement
Regulations
A- A - Establish
24 CFR 5701.201 (a) Habitat LA
financing
acquisition; 24 CFR
mechanisms for
570.202
purchase and
rehabilitation; 24
redevelopment of
CFR 570.2012 (n)
foreclosed upon
direct homeowner
houses and
assistance
residential properties
B - Purchase and
24 CFR 570.201(a) Habitat Collier
rehabilitate houses acquisition; (b)
County
and residential
disposition; (n)
Pensacola
properties that have direct
Habitat
been abandoned or homeownership
Habitat Miami
foreclosed upon, to assistance; 570.202 Habitat LA
sell such houses and eligible rehabilitation Habitat-NYC
properties. Includes and preservation
direct
activities for houses
homeownership
and other residential
assistance and
properties
counseling
C – Establish land
24 CFR 570.201(a)
banks
Acquisition and (b)
Disposition
D - Demolish
24 CFR 570.201(d)
blighted structures clearance for
blighted structures
E – Acquire and
24 CFR 570.201(a) Habitat Collier
redevelop
acquisition,
County
demolished or vacant (b) disposition, (e)
Pensacola
properties as
housing counseling Habitat
housing, includes
(i) relocation, and
Habitat Miami
direct
(n) direct
Dallas Habitat
homeownership
homeownership
Habitat LA
assistance and
assistance; 24 CFR Habitat-NYC
counseling.
570.202
Milwaukee
rehabilitation and
Habitat
preservation
activities for
demolished or
vacant properties; 24
# of
units
Proposed
Total Project
NSP Funding Costs
Allocation
15
$1,219,362
$1,388,112
560
$81,241,508
$116,259,057
0
$0
$0
0
$0
$0
513
$56,560,666
$85,003,563
20
CFR 570.204
community based
development
organizations.
Pre-award project
costs
Totals
1,088
$2,067,899
$2,067,899
$141,089,435 $204,718,631
3.a.(2)(b) Proposed activities
Collier County (Naples), Florida
Responsible entity: Habitat for Humanity Collier County
Need
Target areas in Collier County have recently suffered from a glut of foreclosed houses due to subprime
lending and overbuilding. Despite the current market decline, house prices in Naples are unaffordable to
the average working class family and the need for affordable workforce housing is great.
Existing Efforts
Habitat Collier County is the only nonprofit affordable housing developer in the area providing
homeownership opportunities for families at or below 50% AMI and has a long history of working in
the proposed neighborhoods. It is coordinating with the county to help achieve Collier County’s
Growth Management Plan goal of 1,000 workforce-housing units per year. Prior to the recent crisis,
Habitat Collier County played a key role in stabilizing the once run-down and crime-ridden Naples
Manor target area, and has built more than 225 houses in the target areas and purchased 46 additional
houses for rehabilitation. However, the recent crisis has threatened to undo all of this progress.
Proposed Stabilization Activities
Eligible Activity B: Acquire, rehabilitate and sell 90 foreclosed or abandoned properties;
Acquire 10 dilapidated foreclosed or abandoned properties, demolish and replace them with 10
new houses
Expected Results
During the three-year grant period, these efforts will guarantee long-term affordable homeownership for
100 low- to moderate-income families. This intervention will contribute significantly to the stability of
the proposed target areas by reducing the number of foreclosed or abandoned properties, increase the
percentage of owner occupied houses, and improve the energy efficiency of the community. Habitat
houses will be clustered to increase the strength of residents’ social networks and shared neighborhood
pride.
As part of Habitat’s comprehensive community development plan, Habitat Collier County will work
with the Collier County Department of Housing and Human Services, and the Collier Extension
Services to provide homeowner education and credit classes. Local banks will provide free and
reduced-fee services to as well as teach budgeting classes. Other support services will vary but include
free income tax preparation, free and low cost medical care and dental, low-cost summer camp and
after-school programs for children, free diaper distribution to qualifying families, law-enforcement
sponsored activities and clean-up days. Habitat Collier County will connect all homeowners to
neighborhood associations or community collaboratives and local Crime Watch programs. Additionally,
21
because of the high number of Hispanics in the area, Habitat Collier County will offer free ESL classes
to homeowners. Supplemental activities will not be funded with NSP2 funding.
Pensacola, Florida
Responsible entity: Pensacola Habitat for Humanity
Need
High subprime mortgage rates, high unemployment and major storms have all contributed to a large
number of blighted and abandoned properties in the Pensacola target areas, designated as Community
Redevelopment Areas by the Escambia Community Development Agency.
Existing Efforts
Pensacola Habitat has been working in the target areas for several years and is coordinating with local
government to stabilize the neighborhoods. Since 2007, Pensacola Habitat has built 116 new houses
after demolition and rehabilitated an additional 36.
Acquire 195 dilapidated foreclosed or abandoned properties, demolish them and replace them
with 195 new houses
Expected Results
During the three-year grant period, these efforts will guarantee long-term affordable homeownership for
240 low- to moderate-income families. This intervention will contribute significantly to the stability of
the proposed target areas by reducing the number of blighted, foreclosed or abandoned properties in the
target areas. Habitat houses will be clustered to increase the strength of residents’ social networks and
shared neighborhood pride.
As part of Habitat’s comprehensive community development plan, Pensacola Habitat will use nine
AmeriCorps members to assist in NSP2 efforts, including construction of houses and providing family
support services. In addition, Pensacola Habitat will provide weatherization services through a
partnership with a local service provider and access to Department of Energy funds for non-NSP2
families.
Pensacola Habitat partners will provide education and life management skills support classes to
homeowners. Families will attend regularly scheduled workshops on home maintenance, cooking and
nutrition, GED and postsecondary education options, health and other “life skills” topics. Every
family in the Habitat program will be assigned a family support advocate from the affiliate’s Family
Support Committee. The advocate works one-on-one with families to ensure they are completing
required sweat equity and attending all necessary educational workshops.
Staff and family advocates will work together to help families connect with community resources that
the they may need, ranging from dental care to income tax return preparation assistance. Pensacola
Habitat will connect all homeowners to neighborhood associations or community collaboratives and
local Crime Watch programs. Supplemental activities will not be funded with NSP2 funding.
22
Miami, Florida
Responsible entity: Habitat for Humanity of Greater Miami
Need
High levels of subprime mortgages, limited supply of affordable housing, damage from recent storms
and an aging housing stock have contributed to the instability of the Miami target areas.
Existing Efforts
Habitat Miami is Miami-Dade’s primary developer of scattered, infill lots located in the urban core.
Proposed census tracts contain a HOPE VI extended target area, in which Habitat Miami has already
completed 57 houses. Vacant lots will be donated by Miami-Dade County in the expanded HOPE VI
area. Habitat Miami will carry out NSP2 activities in the same target geography identified by the county
for its NSP1 activities.
Acquire 48 dilapidated foreclosed or abandoned properties, demolish them and replace them
with 48 new houses
Eligible Activity E: Build 90 new houses on vacant lots
Expected Results
During the three year grant period, this intervention will contribute significantly to the stability of the
proposed target areas by reducing the number of foreclosed or abandoned properties in the target areas,
and increasing the stock of affordable, owner-occupied housing. Their efforts will guarantee long-term
affordable homeownership for 160 low- to moderate-income families.
As part of Habitat’s comprehensive community development plan, Habitat Miami will use 60
AmeriCorps members to assist in the NSP2 efforts, including construction of houses and providing
family support services. It’s ABWK program will improve the physical condition of 20 houses
surrounding the NSP2 developments.
Habitat Miami will offer down payment assistance to purchase Habitat properties through a partnership
with Partners for Self Employment, formerly known as Micro-Business USA. MBUSA will provide a
$2 for $1 match to homebuyers. At closing, each purchaser will receive up to $2,000 match per
applicant’s down payment contribution of first $1,000. Habitat Miami will also makes facilitated
referrals to a host of partner organizations for the following services: credit counseling, financial
counseling, employment assistance, family counseling, preparation of wills, and government assistance
with utility payments, among others. Habitat Miami will connect all homeowners to neighborhood
associations or community collaboratives and local Crime Watch programs. Supplemental activities
will not be funded with NSP2 funding.
23
Dallas, Texas
Responsible entity: Dallas Area Habitat for Humanity
Need
Overbuilding has created a glut of developed lots in the target areas, located in the outskirts of Dallas.
Excessive abandonment caused by loss of employment opportunities, lack of economic development,
lack of amenities and commercial development and high crime are key factors in the continued decline
of the urban target areas.
Existing Efforts
Dallas Area Habitat is the second-largest single-family builder in the City of Dallas. It’s Dream Dallas
comprehensive campaign focuses on revitalizing neighborhoods that welcome its presence and have
active neighborhood associations. As part of the campaign, it has already built nearly 300 houses and a
community center in the target areas and owns 248 vacant lots that are ready for new construction using
NSP2 funds. The City of Dallas has identified several target areas as Neighborhood Investment
Program (NIP) target Areas. Dallas Area Habitat was awarded 44 additional tax-foreclosed lots from
the City of Dallas’ Land Bank program to assist in the stabilization of the community.
Eligible Activity E: Build and sell 250 new houses on vacant lots
Expected Results
During the three-year grant period, it will guarantee long-term affordable homeownership for 250 lowto moderate-income families. These efforts will significantly contribute to the stability of the
community by increasing the number of stable homeowners, who will contribute and will be connected
to the local economy.
As part of Habitat’s comprehensive community development plan, Dallas Area Habitat will use 36
AmeriCorps members to assist in the NSP2 efforts, including construction of houses and providing
family support services. It’s ABWK program will improve the physical condition of 90 houses
surrounding the NSP2 developments. And, Dallas Area Habitat will refer non-NSP2 homeowners to
the Dallas County Weatherization Program and the City of Dallas is using some of it stimulus funding
to offer a weatherization program in the NIP areas in the City of Dallas. Dallas Area Habitat will also
connect families to the City of Dallas’ mortgage assistance program. Dallas Area Habitat will connect
all homeowners to neighborhood associations or community collaboratives and local Crime Watch
programs.
Responsible entity: Habitat for Humanity of Greater Los Angeles
Need
In the proposed target areas, the cost of housing has far outpaced the rise in wages and salaries, making
it difficult for working people and even multiple-income families to purchase a home or pay market rent.
The crisis impacts all segments of the housing market, but is particularly dire for those with low
incomes, limited English, and those with special needs. In the past decade, the median price of a home
tripled, from $174,000 in 1997 to $525,000 in 2007.
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Existing Efforts
Over the past two years, Habitat LA has built and rehabilitated 116 houses in the target areas and is
currently developing 13 more. Habitat LA’s efforts are an important part of the cities’ strategies to
increase the availability of affordable housing for low- to moderate-income families. Habitat LA is
coordinating with the cities of Lynwood and South Gate who have identified the target areas for
revitalization in their area community redevelopment plans.
Eligible Activity A: Provide 15 soft second mortgages loans (no-interest, silent, deferred
payment) loans to low- to moderate-income families seeking to purchase and rehabilitate
foreclosed properties
Acquire, rehabilitate and sell 20 affordable housing condominium units
Eligible Activity E: Build 10 new houses and 3 condominium units on vacant lots
Expected Results
During the three-year grant period, Habitat LA will guarantee long-term affordable homeownership for
108 low-income families at or below 80% AMI. This intervention will contribute significantly to the
stability of the proposed target areas by reducing the number of foreclosed or abandoned properties in
the target areas; increasing the available affordable housing stock; and by removing blighted and vacant
properties.
As part of Habitat’s comprehensive community development plan, Habitat LA will use 30 AmeriCorps
members to assist in the NSP2 efforts, including construction of houses and providing family support
services. It’s ABWK program will improve the physical condition of 120 houses surrounding the
NSP2 developments. And, Habitat LA will provide weatherization services through a partnership with
a local service provider to 90 non-NSP2 homeowners, as well as access to Department of Energy funds
for non-NSP2 families.
Through their partnership with the One Economy Foundation, Habitat LA will provide internet access
and computers in every NSP2 house. GRID Alternatives provides solar systems for eligible Habitat
houses. It will also offer support services including access to down payment assistance, income tax
preparation, low-cost summer camp and after-school programs for children. Habitat LA will connect
all homeowners to neighborhood associations or community collaboratives and local Crime Watch
programs. Additionally, because of the high number of Hispanics in the area, Habitat LA will offer
access to ESL classes to homeowners. Supplemental activities will not be funded with NSP2 funding.
Brooklyn, New York
Responsible entity: Habitat for Humanity – New York City
Need
The proposed target areas have been destabilized primarily by overvaluation of property and a high rate
of subprime mortgages. A high rate of vacant lots in the target areas is also a major contributing factor
to community blight.
Existing Efforts
25
Habitat-NYC is working closely with the City of New York to expand its efforts to stabilize proposed
target areas. The city has and will provide tax-foreclosed lots for new construction and down payment
assistance to Habitat homeowners. Habitat-NYC has constructed 41 houses in the Bedford Stuyvesant
target area and will begin construction on 16 additional non-NSP funded houses in July 2009. In Ocean
Hill, Habitat-NYC is completing a 41-unit affordable housing project this year.
Eligible Activity B: Purchase, rehabilitate and sell 70 houses to low income families
Eligible Activity E: Build 30 new houses on vacant lots and sold to low- to moderate-income
families
Expected Results
During the three-year grant period, Habitat-NYC will guarantee long-term affordable homeownership
for 100 low- to moderate-income families. This intervention will be instrumental in stabilizing the
economic foundation of the target areas by increasing the number of stable, contributing homeowners to
the target areas.
Habitat-NYC will use 50 AmeriCorps members to assist in the NSP2 efforts, including construction of
houses, ABWK projects and family support services. It’s ABWK program will improve the physical
condition of a to be determined number of houses surrounding the NSP2 developments. In addition,
Habitat-NYC will provide families access to the City of NY’s down payment and closing cost
assistance programs. Habitat-NYC will also connect all homeowners to neighborhood organizations,
local Crime Watch programs and non-profits providing financial literacy training.
Supplemental activities will not be funded with NSP2 funding.
Responsible entity: Milwaukee Habitat for Humanity
Need
The Washington Park target area suffers from an excessive number of vacant lots (over 340) due to a
declining economy that resulted in a host of discontinued construction projects. It has become a high
crime, blighted area and threatens the stability of the surrounding target areas.
Existing Efforts
Because of the work of Milwaukee Habitat and other community stakeholders, the Harambee and
Amani target areas are gradually approaching stabilization, although high rates of subprime loans and
growing incidents of blight have threatened progress made in the last few years. Milwaukee Habitat has
created extensive partnerships with the City of Milwaukee in each of the target areas, which the city
have been targeted in its “Great Neighborhoods” initiative. The city will make lots available for
purchase at $1 per lot. Milwaukee Habitat is an active member in neighborhood planning and steering
groups – the Harambee Great Neighborhood Steering Committee and the Washington Park Partners.
Milwaukee Habitat is also working with the Dominican Center for Women in the Amani Neighborhood
to create a community planning group. Milwaukee Habitat has built 300 houses in surrounding
neighborhoods. In the target areas, 15 new houses on vacant lots are currently under construction and
40 more will be completed by the end of the year.
26
In these target areas, Milwaukee Habitat homeowners play leadership roles in the local community
coalitions - the Harambee Great Neighborhood Steering Committee and the Washington Park Partners.
The strong social networks lead to greater economic opportunities for the families and an increase in
neighborhood pride and sense of ownership.
Eligible Activity E: Build 100 new houses on vacant lots
Expected Results
During the three-year grant period, Milwaukee Habitat will guarantee long-term affordable
homeownership for 100 low- to moderate-income families. This intervention will remove blighted and
vacant properties in the target areas and provide low- to moderate-income families with affordable,
easily manageable and energy efficient houses. NSP2 funds will be critical in stabilizing Washington
Park and will prevent further destabilization in the Harambee and Amani target areas. Milwaukee
Habitat houses will be clustered to increase the strength of residents’ social networks and shared
neighborhood pride.
Milwaukee Habitat will use 18 AmeriCorps members to assist in the NSP2 efforts, including
construction of houses and providing family support services. It’s ABWK program will improve the
physical condition of 150 houses surrounding the NSP2 developments. And, Milwaukee Habitat will
partner with SDC (Social Development Commission) to refer non-NSP2 homeowners to that
organization for weatherization services.
Milwaukee Habitat will also connect homeowners to neighborhood associations or community
collaboratives and local Crime Watch programs. Milwaukee Habitat will also make facilitated
referrals to a host of partner organizations for the following services: credit counseling, financial
counseling, employment assistance, family counseling, preparation of wills, and government assistance
with utility payments, among others. Supplemental activities will not be funded with NSP2 funding.
3.a.(2)(c) Other committed funds.
In this proposal the difference between the total project costs of $204,718,632 and the funding
provided by NSP2 of $141,098,436 is fully committed as described in Factor 4, and Appendix 3 in the
amount of $63,629,196. HFHI has committed to funding of $18,919,424; the Habitat NSP2 Team
affiliates have committed $38,070,093; and other sources have provided commitments for $ 6,639,679.
There is not a for-profit partner included in this application.
3.a.(2)(d) Demolition and preservation.
3.a.(2)(d)(i) and 3.a.(2)(d)(ii)
While demolition is an eligible activity under NSP regulations, HFHI does not believe that demolition of
housing units is an acceptable stand-alone strategy for any of the seven communities that are part of this
application. Instead, the blighted units that the Habitat NSP2 team will tear down will be replaced
immediately on those same lots with new structures that will be put into service right away. HFHI
believes strongly that the best way to stabilize these seven communities is to invest in the creation of
quality, energy-efficient houses, which can be sold to qualified families who are provided with mortgage
financing that assures long-term affordability.
3.a.(2)(d)(iii) The Habitat NSP2 team will not exceed the 10% limitation on demolition.
27
3.b. Project completion schedule.
The following schedule summarizes activities in all target areas. HFHI certifies that it will expend 50%
of NSP2 funds ($70,544,718) within two years of the award date and 100% of NSP2 funds
($141,089,436) within 3 years of the award date. HFHI will submit quarterly reports beginning in
month 4 and ending in month 33. Monthly reports will be submitted beginning in month 23 and will
continue until at least 50% of NSP2 funds have been spent, resuming in month 33 and ending in month
36.
Months
1-3 4-6
7-9
10-12 13-15
Key Tasks
Environmental impacts conducted 54 161 161 161 161
54 161 161 161
Properties acquired
107 107 107
Construction completed
54 107 107 107
Homebuyers selected and trained
107 107
Title transferred
16-18 19-21 22-24 25-27 28-30 31-33 33-36
161
161
107
107
107
215
161
107
107
107
161
215
161
107
54
161
215
161
107
107
161
54
161
54
3.c. Income targeting for 120 percent and 50 percent of median.
In this proposal, the Habitat NSP2 team proposes to use 100% of NSP2 funds to provide
homeownership opportunities for families at or below 80% AMI in target areas, and will assure
compliance with the NSP “deep targeting” requirement - no less than 25% of the funds awarded will be
used to serve families whose incomes do not exceed 50% of AMI.
NSP Eligible Activity
B- A - Establish financing mechanisms for
purchase and redevelopment of foreclosed upon
houses and residential properties
B - Purchase and rehabilitate houses and
residential properties that have been abandoned
or foreclosed upon, to sell such houses and
properties. Includes direct homeownership
assistance and counseling
C – Establish land banks
D - Demolish blighted structures
50% AMI
80% AMI
Total
$928,125
120%
AMI
$0
$309,375
$20,612,487
$61,837,462
$0
$82,449,949
$0
$0
$0
$0
$0
$0
$0
$0
$43,051,490
$0
$57,401,987
E – Acquire and redevelop demolished or
$14,350,497
vacant properties as housing, includes direct
homeownership assistance and counseling.
Totals $35,272,359
$105,817,077 $0
$1,237,500
$141,089,436
3.d. Continued affordability
Through this program, the Habitat NSP2 team proposes to serve the population at or below 80% AMI.
Habitat certifies that a minimum of 25% of the NSP2 grant will be used for the purchase and
redeveloped of abandoned or foreclosed upon houses or for residential properties that will be used to
house individuals or families whose incomes do not exceed 50% AMI. To attain initial affordability
and to ensure long-term success for homebuyers, the Habitat NSP2 team affiliates included in this
application will provide below market rate affordable mortgage products, including Habitat’s
traditional 20-30 year 0% interest mortgages. In Brooklyn, New York only, 2% mortgages with the
loan principal discounted to a level that matches a 0% mortgage at full price, which are offered by
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approved banks with State of NY mortgage insurance. These are straight-term full amortization loans
with no rate adjustments or scheduled reset terms.
To assure long-term affordability for those with incomes who do not exceed 120 percent of AMI and
50 percent of AMI, as applicable, the Habitat NSP2 team affiliates will adopt and apply the HOME
program standards at 24 CFR 92.254 (i.e., those HOME program standards applicable to
homeownership) by imposing either resale or recapture requirements for a period of no less than the
applicable period specified in 25 CFR 92.254(a)(4).
Habitat NSP2 team affiliates will also use the following methods for assuring continued affordability,
as appropriate:
Discounted principal of first mortgages as necessary to assure the initial monthly housing
payment (including principal, taxes and insurance) does not exceed 30% of household income
Right of re-purchase provisions built into the mortgage, granting the Habitat NSP2 team
affiliate the first option to purchase the house if the initial buyer chooses to sell the house
before the completion of the term of the first mortgage, and then re-sell the house to another
low-to-moderate income household
Deferred (“soft”) second mortgages will be used to cover the gap in value in the event the
principal amount of the first mortgage is discounted below the appraised value at time of sale –
and will be used as a mechanism to “secure” the right of re-purchase and deed restriction, and
is forgivable over time, as well as protect against predatory lending practices by unscrupulous
lenders in the future.
All the Habitat NSP2 team affiliates included in this application will provide homebuyers with 20+
hours of training in foreclosure and delinquency prevention, family budgeting, house maintenance, good
neighbor practices, consumer debt management and access to community resources. To supplement the
Habitat NSP2 team family support services, the seven affiliates included in this application will
collaborate with local HUD-certified housing counseling agencies:
Affiliate
Habitat Collier County
Pensacola Habitat
Habitat Miami
Dallas Area Habitat
Habitat LA
Habitat NYC
Milwaukee Habitat
HUD-certified housing counseling agency
Collier County Housing Development Corporation
FDIC Money Smart
Neighborhood Housing Services of S. Florida
Dallas County House Loan Counseling Center
Los Angeles Neighborhood Housing Services
Neighborhood Housing Services of NYC
CYD and Select Milwaukee
3.e. Consultation, outreach, communications
3.e.(1) Consultations with units of local government.
Each Habitat NSP2 team affiliate has actively consulted with local governments with jurisdiction over
the target areas in NSP1 activities and in the preparation of this proposal. In each case, the cities 47 have
received NSP 1 funding and have prioritized the target areas for stabilization. Ongoing contact between
local agencies will be maintained through regular progress updates in the form of meetings, emails,
newsletters and site visits, where appropriate. Relationships and level of contact will be maintained
throughout the entire three-year grant period. Affiliates have consulted local governments on the
development of the NSP2 program in the following ways:
47
The City of Los Angeles received NSP 1 funding and has identified priority areas bordering
Habitat’s proposed NSP2 target areas in the cities of Lynwood and South Gate.
29
In Collier County, the Board of Commissioners and Department of Housing and Human Services
has provided support for Habitat Collier County historically through CDBG grants, SHIP funds,
and impact waivers and deferrals.
Pensacola Habitat has met with the Neighborhood Enterprises Foundation, City of Pensacola and
discussed extensively the affiliate’s plan for NSP2 activities. The proposed activities are
consistent with NSP1 activities and target areas. All of the proposed census tracts for the
affiliate’s NSP2 application are in the priority 1 area of the NSP1 application.
Habitat Miami participated in developer meetings convened by the City of Miami and MiamiDade County’s NSP 1 planning staff, and is in communication with the NSP coordinators for
both entities. Miami-Dade County is using a portion of its NSP1 funds to produce mixedincome, multi-family rental units in the HOPE VI area. Habitat Miami will complement the
County effort with building out vacant lots in the HOPE VI expanded target area. The County
has donated 100 lots to Habitat Miami for this effort; former public housing residents will
receive priority in purchasing houses.
In Dallas, the city was instrumental in determining the best use for NSP2 funds within the City of
Dallas and eligible tax-foreclosed Land Bank lots in the target areas.
In Los Angeles, each NSP target city has provided letters of financial and programmatic support
for the proposed NSP activities. The cities have worked hand in hand with Habitat LA to
identify target census tracts and develop this application. Both cities have Council approval for
this application. Additionally both cities have ongoing housing developments with Habitat,
demonstrating an excellent working relationship and track record from prior and current housing
partnerships.
In Brooklyn, Habitat-NYC has had several meetings with the City of New York’s Department of
Housing Preservation and Development to discuss the NSP2 stabilization strategy. In addition,
Habitat-NYC has met with the Restored Houses Housing Development Fund Corporation, a
local nonprofit organization, created by the City of New York that executes the NSP 1 program
in conjunction with HPD. Habitat-NYC has also had discussions with the Center for New York
City Neighborhoods, which was created by the City of New York to coordinate and expand
services to New York City residents at risk of losing their houses to foreclosure.
Milwaukee Habitat has an excellent working relationship with the local government, and has
consulted with the Department of City Development regarding this application. This partnership
includes site determination, house design, targeting neighborhoods and the donation of land.
3.e.(2) Proposed outreach and affirmative marketing actions.
Typically, there are five times more applicants for Habitat houses than there are houses available.
Consequently, each Habitat NSP2 team affiliate has a ready pool of pre-qualified applicants from which
to draw. To continue to market its programs, each Habitat NSP2 team affiliate included in this proposal
will use a variety of program outreach methods, depending on local community needs and opportunities.
The Habitat NSP2 team will adopt and follow procedures and requirements to affirmatively market the
NSP2 program without regard to race, color, national origin, sex, religion, familial status or disability.
Outreach methods will include the following where appropriate:
Referrals from partner organizations, realtors and other community members
Public service announcements on English- and foreign-language television and radio
News articles serving the target populations
Display materials at congregations serving the target areas
Display materials at governmental social services agencies serving the target populations
Workshops at community social services centers serving the target populations
30
Use of Equal Housing Opportunity logo and/or clause on homebuyer application forms
Printed materials about Habitat homeownership (e.g., orientation packets, brochures, flyers,
newsletters, etc.)
Affiliate websites
Social network systems
Informational materials placed on public buses and at bus stops, area businesses, schools, Head
Start programs, housing coalitions, faith- and community-based partners, veterans’ associations,
county fairs, cultural fairs, women’s shelters, adult day care centers, clinics, grocery stores and
laundromats, among others.
In communities with large populations of Spanish speakers, the Habitat NSP2 team affiliates will use
homebuyer applications and informational materials in Spanish. For languages other than English or
Spanish, the Habitat NSP2 team will either partner with organizations that serve the specific population
or develop applications and other materials in the required language. If the Habitat NSP2 team affiliate
does not have staff, volunteers or homeowners who speak the particular language, it will secure local
translation and interpreter services.
For potential homebuyers with language, vision or hearing impairments, where appropriate, the Habitat
NSP2 team affiliates will provide an accessible design feature on websites that allows viewers to enlarge
the font size; or, websites and informational materials to invite hearing- or speech-impaired applicants to
use TTY/TTD/TTT equipment to communicate with the Habitat NSP2 team affiliates. To communicate
with applicants who experience mental illness or developmental disorders, the Habitat NSP2 team
affiliates will partner with, wherever possible, the applicants' caseworkers, friends, relatives and other
support networks. To communicate with applicants with vision or hearing impairments, the Habitat
NSP2 team affiliates will partner, wherever possible, with public agencies (such as the blind/deaf section
of the department of rehabilitation services, schools for the blind and schools for the deaf), community
organizations and the applicants' friends, relatives and other support networks.
3.e.(3) Communication of program design, progress, opportunities and results; process any
complaints in a timely manner; and, ensure that local citizens and other interested parties are
informed about program policies.
The Habitat NSP2 team affiliates actively solicit community involvement in all programs, and will
continue to update progress in target areas through affiliate websites, newsletters and marketing
materials as well as through communications with donors, volunteers, families, partner organizations
and potential buyers. The Habitat NSP2 team affiliates commit to respond to any complaints within 15
working days. The Habitat NSP2 team affiliates will also rely on their strong relationships with local
media. The work of Habitat is frequently reported to the community through newspaper articles,
editorials and advertisements, radio and television interviews and PSAs. The Habitat NSP2 team
affiliates will also, where appropriate, conduct regularly scheduled public meetings at various locations
to inform the community of housing availability and the application process.
3.f. Performance and monitoring
3.f.(1)Monitoring plan
HFHI embraces high standards of ethics, management and accountability for both the staff
administering NSP2 funds and affiliates receiving the funding. Utilizing previous experience gained
from monitoring other HUD grant programs, HFHI has developed a performance and monitoring
process which will also address the review of NSP2 funds. HFHI has developed a customized
database to facilitate the organization’s ability to monitor benchmarks for HUD funded programs.
Using the database, the grant officers generate customized reports to track affiliate activities from the
submission of the affiliate award acceptance letter to the submission of the affiliate final close-out
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report. The manager and associate manager generate customized reports to review the progress of each
participating affiliate in weekly meetings with the grant officers. In addition, after completing a
monitoring visit, the compliance/training officers issue their findings to affiliates, record them into the
database and generate customized reports to track the affiliate’s progress in correcting deficiencies
addressed in the findings. HFHI will continue to use this type of database and customize it specifically
for the NSP2 grant. Throughout the grant term, the database will be regularly upgraded and enhanced
to meet ongoing changes in federal requirements.
HFHI’s Plan for Overseeing Affiliates’ Performance
Before the seven affiliates were selected, they were required to demonstrate they have signed Habitat’s
US Affiliation Agreement. If awarded NSP2 funding, each affiliate will be required to sign a
contractual agreement. This legal document holds the affiliate accountable for the commitments that
they made in their applications. It allows HFHI to stop funding if specified conditions are not met and,
if necessary, to require affiliates to return any funds that had been disbursed to the affiliates thus far.
HFHI’s current review of affiliates’ management of federal grants consists of the following; we will
supplement it with procedures specific to the NSP2 grant.
1. Program management (including, but not limited to, copies of affiliate sub-grant agreement and
award amendments; lists of board members and affiliate staff; affiliates’ lobbying and
debarment certification; affiliates’ Code of Conduct)
2. Reporting (including, but not limited to, monthly; annual; final close-out; leveraging of funds;
homebuyer mortgage documents; Section 3; certification in Energy Star or green building. A
review of Davis-Bacon reports will be added for NSP2.)
3. Non-discrimination (including, but not limited to, homebuyer selection criteria; procedures for
communicating with homebuyer applicants with special needs (e.g., foreign language,
impairments affecting vision, hearing, speech); procedures for marketing of and compliance
with federal fair housing laws; use of Equal Housing Opportunity clause and/or logo;
procedures for program outreach to potential homebuyers in target areas; compliance with
Equal Employment Opportunity Order; homebuyer deed incorporating a covenant running with
the land assuring non-discrimination)
4. Drug-free Workplace Act compliance
5. Lead-based Paint Poisoning Prevent Act compliance
6. Compliance with federal procurement requirements (including, but not limited to, OMB A-110
procurement standards; contractors’ Code of Conduct; documentation of the procurement
process for the grant; contractors’ lobbying and debarment certification and their compliance
with federal regulations).
7. Accounting policies and procedures (including, but not limited to, income and expenses
statements; independent certified financial audits, including A-133 if appropriate; separate
interest-bearing bank account for affiliate’s NSP2 funds; regular reconciliation of affiliate’s
NSP2 bank account)
8. Property management and disbursement of NSP2 funds (including, but not limited to,
compliance with Uniform Relocation Assistance and Real Property Acquisition Policies Act of
1970; compliance with National Environmental Policy Act of 1970; documentation in support
of NSP2 draw requests and eligibility of expenses; bank statements, general ledger and other
documentation detailing affiliate’s NSP2 bank account’s debits and credits).
Affiliate Monitoring by NSP2 Grant Officers
Habitat for Humanity’s NSP2 program is structured such that each participating affiliate is assigned to
a particular grant officer. The grant officer’s role is to advise and guide the affiliates throughout the
program so that they may achieve their stated goals. The grant officer is in regular contact with the
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affiliate throughout the term of the grant. The programmatic benchmarks provide a guide for the grant
officer to monitor the affiliate's progress, identify potential challenges and assist the affiliate in
creating an action plan to take mitigating steps.
Affiliate Monitoring by NSP2 Compliance/Training Officers
Within the first 6 months of the grant term, HFHI will begin on-site reviews of the affiliates’ overall
compliance with the terms of the contract, financial controls and building progress. However, should a
concern arise before the 6th month or at any time during the grant term about a particular affiliate,
HFHI will schedule an on-site visit to assess the affiliate's progress, identify potential challenges and,
if necessary, require the affiliate to take corrective action within a specified time-frame. HFHI will
continue site visiting affiliates every 6 months until the affiliate has submitted its final close-out report.
Financial Monitoring by Grant Compliance and Donor Reporting group (GCDR) in Finance
HFHI’s Grant Compliance and Donor Reporting group (GCDR) in Finance is responsible to ensure
HFHI’s financial compliance with all grantors including US Federal agencies and state, individuals,
foundations, corporations and foreign government agencies.
Grant Compliance and Donor Reporting group (GCDR) in Finance:
Performs due diligence to evaluate whether adequate systems, policies, procedures and
processes exist before contracts are entered;
Performs financial monitoring and contract implementation through site visits and remote
financial reviews;
Reviews and approves allowable expenses, submitted by program departments, to the award
before payment is made to the vendor. This includes review of payment requests, travel
expenses reimbursement requests through ExpenseWatch and general journals for charging
grants;
Tests and analyzes expenses charged to grantors’ funds to ensure compliance;
Ensures compliance with federal rules and regulations pertinent to grants;
Provides timely and accurate grantor financial reports;
Reviews, approves and draws down grant funds as per the signed Grant agreement;
Reviews and approves grant close out reports before submission to the grantors.
Coordinates and supports HFHI’s annual single audit required by federal regulations
3.f.(2) Internal audit requirement.
HFHI’s internal controls department has established policies and procedures to ensure that federal
grants are administered and monitored properly. Internal audit will monitor the grant department to
make sure these policies and procedures are implemented.
HFHI’s internal audit department (IAD) is responsible for conducting internal audit within HFHI, its
subrecipients and HFH Organizations. IAD plans and performs internal audit. On top of financial and
program monitoring that must be performed by NSP2 program and Grant compliance and donor
reporting team, IAD may also perform internal audit of NSP2 grant implementation. When IAD
performs an audit on NSP2, a high level over-view of IAD’s approach would be the following:
Compliance with federal and agency grant requirements (Office of Management and Budget
(OMB) Circular A-133).
Provide reasonable assurance that internal controls exist, are effective and efficient as listed
above under program monitoring and financial monitoring
33
HFHI’s external auditor conducts an OMB A-133 audit annually as required by federal rules and
regulations. HFHI has had clean audits in the past.
4. Rating Factor 4: Leveraging other funds, or removal of substantial negative effects
4.a. Leverage
Relying on its extensive network of sponsors, and the existing capacity of the participating affiliates, the
Habitat NSP2 team has firm commitments totaling $63,629,196, which will serve as leverage to this
overall application. The leverage ratio represented by these firm commitments is 45%. Please see the
appendix 5 for a breakdown of this support, and the letters, which serve as evidence of these firm
commitments.
4.b. Value of destabilizing influences.
The Habitat NSP2 Team will acquire and rehab (Eligible use B) 560 houses in our target area. Total
vacant houses per USPS huduser.org/datasets/usps.html in the target area are 6,467. The Rubric gives a
score of .12989. The appendix showing the census tracts and the vacancies are in Appendix 1. The
Habitat NSP2 Team total house production (Eligible use B and E) of 1088, gives a score of .252358.
5. Rating Factor 5: Energy efficiency improvement and sustainable development factors
5.a. Transit accessibility.
All proposed target areas are in urban areas and are transit accessible.
Buses service each of the target areas and run in 30-minute or less intervals. During rush hour,
intervals average 15 minutes, and as frequent as 10 minutes in Miami and New York.
Miami target areas contain light rail stations; two Dallas target areas will receive access to light
rail by the end of 2009.
In New York, all target areas are serviced by subway and rail (Long Island Railroad).
Public transportation provides sufficient access to local job markets in all target areas. Some
areas are as close as ¼ mile to major employment centers others are within 5-10 miles but easily
accessible by public transportation.
5.b. Green building standards.
HFHI certifies that, for all moderate rehabilitation and energy retrofits, all new and replacement
appliances and products will be ENERGY STAR. HFHI certifies that all Habitat NSP2 team affiliates
included in this application will use one or more of the following green building standards for all “gut”
rehab and new construction, all of which exceed ENERGY STAR standards.
Green Building Standards
Source
Florida Green Building Coalition www.floridagreenbuilding.org
standards
LEED for Homes
www.usgbc.org/
Wisconsin Environmental
http://wi-ei.org/greenbuilt/
Initiative – Green Built Program
California Green Point Rated
www.builditgreen.org/greenpoint-rated
Affiliate
Habitat Miami
Habitat Collier County
Pensacola Habitat
Dallas Area Habitat
Habitat LA
Habitat-NYC
Milwaukee Habitat
Habitat LA
34
5.c. Re-use of cleared sites.
HFHI certifies that all cleared sites will be re-used within the grant period. New houses will be built on
every new site. In the event that a house is not built on that site, the Habitat NSP2 team will repurpose
that site for public use such as a playground, or a public garden.
5.d. Deconstruction.
HFHI certifies that deconstruction practices will be used for all demolition projects. To the extent
possible, materials will be recycled or donated to Habitat ReStores (Habitat stores that sell reclaimed
building materials at discounted prices to community residents).
5.e. Other sustainable development practices
The four green building programs described under Factor 5(b) above are advanced programs which
incorporate many of HUD’s recommended green building practices. In addition to these practices, we
note that, pursuant to longstanding HFHI policy, all Habitat houses (including houses to be constructed
or rehabilitated pursuant to NSP2) are subject to size limitations – a critical component of sustainable
building. In addition, all Habitat homebuyers receive extensive classroom training in house
maintenance, including a final “walk through” of the completed house for the sole purpose of hands on
instruction as to operation of systems and appliances. Increasingly, these trainings focus on energy
efficient operation of the house. Finally, although there are unlimited options available for energy
efficient design and construction, not all are cost effective. Based on its vast experience in affordable
green building, the Habitat NSP Team’s general approach will be to incorporate features, which are
cost effective and affordable, both at installation and over the life of the house.
6. Rating Factor 6: Neighborhood transformation and economic opportunity
6.(1)Consistency with comprehensive plans
HFHI certifies that the proposed NSP activities are part of or consistent with established comprehensive
and consolidated plans from the state, county and local governments, as well as local neighborhood
action plans. These plans are described below under Factor 6.(2).
6.(2) Relation to and support for established plans
Collier County (Naples), Florida
The goal of the housing element of the Collier County Growth Management Plan is to create an
adequate supply of decent, safe, sanitary and affordable housing for all residents of Collier County.
The county’s expensive housing stock drives the development of private housing in Collier County,
which effectively excludes low- to moderate-income, working class families. There is a need for the
county to find ways to encourage the provision of affordable-workforce housing for these families.
Habitat Collier County will continue to address the affordable-workforce housing deficit by working
collaboratively with Collier County to coordinate activities and effectively leverage the resources
available to the entire county. www.colliergov.net/Index.aspx?page=96
Habitat Collier County has long been the main provider of single-family, homeownership opportunities
for low and very-low income families in the County, producing an average of 125 houses in each of the
past five years. Going forward, NSP2 funded rehabs of foreclosed properties will decrease and prevent
blight and criminal activity in the target geographies, which are predominantly low- to moderate-income
neighborhoods most susceptible to the foreclosure crisis and ensuing negative consequences. With few
other private agencies contributing to the supply of housing for low and very-low income families, the
burden becomes even greater on Habitat to increase it’s production.
35
Pensacola, Florida
Pensacola Habitat has become an integral part of affordable housing solutions for Escambia and Santa
Rosa Counties. In the local consortium’s five-year strategic plan48, (see Escambia Co. Neighborhood
Redevelopment), Pensacola Habitat is named specifically as a partner in housing. The local
consortium’s five-year plan, identifies the following objective related to the overall goal of providing
affordable homeownership opportunity for low income families: “new construction and rehabilitation of
houses to be made available to families <80%AMI”. All proposed NSP2 activities are consistent with
the consortium’s five-year plan. www.co.escambia.fl.us/Bureaus/CommunityServices
The Escambia Community Redevelopment Agency (CRA) is tasked with enhancing the quality of life
within the five redevelopment areas. Pensacola Habitat’s proposed activities target three of the five
neighborhoods named by CRA plans: Englewood, Warrington and Brownsville. CRA active projects in
the target areas include matching grants for owner-occupied residential rehab and commercial façade
improvements; regularly scheduled neighborhood “Clean Sweep” projects; decorative lighting on
Warrington corridor bridge; and sewer expansion in Brownsville and Englewood; upgrading street
lighting, resurfacing roads and installing sidewalks are ongoing in all three neighborhoods. Pensacola
Habitat will aid CRA efforts to revitalize these urban areas by redevelopment and rehabilitation of
blighted and abandoned residential properties.
Santa Rosa County EAR based amendments (section 5, Housing Element) focus on local need for
homeownership opportunity for families with incomes at or equal to 50%AMI. Pensacola Habitat is the
only organization in the area that offers homeownership to the VLI income niche. By request of the
county housing program manager Pensacola Habitat advised on the Santa Rosa County Housing
Authority NSP1 activities, which includes rehabilitation of units for sale to VLI families to be carried
out by Pensacola Habitat.
Miami, Florida
Habitat Miami and the Miami-Dade County government have been collaborators on numerous projects
for a number of years. Habitat Miami’s proposal is consistent with and increases the effectiveness of the
Miami-Dade County Comprehensive Development Master Plan; the Strategic Regional Policy Plan for
South Florida; and, the Miami-Dade County NSP Implementation Order.
The Miami-Dade County Comprehensive Development Master Plan (“CDMP”)) requires that
affordable housing benefit “an appropriate percentage (about 42%) of extremely low, very low, low,
and moderate-income households”. Based on the county’s definition of extremely low, very low, and
low- to moderate-income households, 100% of the housing, rehabilitated or new construction, under
HFHI’s proposal will benefit these households. Additional requirements under the CDMP are
“fostering a diversity of affordable housing types to include single-family detached, single-family
attached, and multi-family housing” which feature “design and development alternatives that are
aesthetically pleasing, encourage energy efficiency and enhance the overall health, safety and general
welfare of County residents”. HFHI anticipates building both single family detached and single family
attached houses. Habitat houses surpass ENERGY STAR standards, and all include a front porch which
allows for resident’s “eyes on the street”, promoting greater safety and the general welfare of the
community. www.miamidade.gov/planzone/CDMP.asp
Miami-Dade County NSP Implementation Order includes utilizing 21% ($13 million) of its NSP 1 funds
to build out the rental units of the Scott-Carver HOPE VI project.
(www.miamidade.gov/ced/library/NSP/NSP_Implementation_Order_R_312_09.pdf) Habitat Miami
completed the homeownership phase of the HOPE VI with the completion of 57 houses in 2008. The
48
Santa Rosa and Escambia Counties are both members of the local consortium.
36
HOPE VI extended target area is within the census tracts included in this proposal. Thus, Habitat Miami
will carry out its NSP2-funded activities in the same target geography identified by the county for its
NSP1 activities.
Dallas, Texas
Dallas Area Habitat’s proposed NSP2 activities relate to and increase the effectiveness of local plans
and activities in the following ways:
ForwardDallas
The City of Dallas has determined that homeownership is the key to neighborhood stabilization.
“Encouraging owner-occupied redevelopment and infill housing and conversion of existing rental units
to owner-occupied housing will help stabilize existing neighborhoods in Dallas.”49 Dallas has
determined that it contains a disproportionately high amount of rental housing and must “concentrate on
providing more ownership housing while working toward a regional balance of affordable rental
housing.”50 Dallas Habitat is requesting NSP2 funding to create owner-occupied infill housing in four
existing neighborhoods of Dallas: Fair Park, Rochester Park, Exeter and West Dallas, thereby aligning
with Dallas’ comprehensive plan as well as creating ownership affordable opportunities in two mixedincome subdivisions: Cedar Creek Ranch and Hickory Creek. www.forwarddallas.org
Land Bank
The City of Dallas’ Urban Land Bank’s objective is “to acquire unproductive, vacant and developable
lots and lots improved with abandoned, vacant and uninhabitable houses to be “banked” for affordable
housing development. By using NSP2 funds to purchase tax-foreclosed lots through Dallas’ Land Bank
and build affordable, green, owner-occupied housing, Dallas Area Habitat contributes to the success of
the land bank program. www.dallascityhall.com/housing/land_acquisition.html.
City of Dallas Neighborhood Investment Program:
The City of Dallas Housing Department has decided to invest 60% to 80% of its resources in 5 targeted
areas through the Neighborhood Investment Program (“NIP”). The NIP areas were chosen because they
show signs of distress such as high numbers of vacant lots, aging housing and code compliance
complaints. Dallas Area Habitat’s NSP2 target areas are in four of the five NIP areas selected by the
City: Fair Park (census tracts 27.01 & 27.02), Rochester Park (census tracts 115 and 39.02), Exeter
(87.01), and West Dallas (101.01). Dallas Area Habitat intends to use NSP2 funding to purchase taxforeclosed properties in these areas and build new, LEED-certified, affordable houses to transform these
communities.www.dallascityhall.com/housing/neighborhood_investment.html
Dallas Housing Authority
Dallas Area Habitat’s purchase of Land Bank lots in Rochester Park (census tracts 39.02 and 115) will
complement Dallas Housing Authority’s initiative to revitalize public housing. Dallas Housing
Authority is tearing down two aging, high-crime public-housing projects, Turner Courts and Rhoades
Terrace, and plans to replace them with single-family houses and less dense apartments.
www.dhadal.com
West Kleborg Village Community Plan
The West Kleborg Village Community Plan determined that affordable housing should be a focal point
for this community.51 “An analysis of the housing stock and conditions shows that there is a high
49
ForwardDallas! Policy 3.1.3 (emphasis added).
Id. at 3.3 (emphasis added).
51
West Kleborg Community Plan, prepared by City of Dallas Development Services Dept., Long
Range Planning division (April 25, 2007) at 3-21.
50
37
priority need in the availability and affordability of housing.”52 The Hickory Creek Subdivision (census
tract 170.01) is specifically named in the Plan and Dallas Area Habitat has requested NSP2 funding to
build 50 affordable houses in this subdivision, to achieve the Community Plan’s affordable housing
goals.
www.southerndallas.org/documents/planning/2%20Far%20SE%20Dallas/West%20Kleberg%20Commu
nity%20Plan%202007.pdf
Habitat LA has engaged the City of Lynwood and the City of South Gate , the local governments with
jurisdiction over the proposed census tracts in Habitat LA’s NSP2 program, and has received their
formal support for this proposal. This partnership ensures consistency with local housing, community
development, redevelopment and transportation plans already in place. Habitat LA’s proposal
contributes to the effectiveness and enhances the above plans in various ways, including:
Southern California Association of Governments –Regional Compass Blueprint Plan
The above cities are located within the “Compass Blueprint Plan” designated Southern California 2%
urban areas. The NSP2 programs is consistent with the regional plan in terms of locating housing near
transit, promoting revitalization of older/blighted houses, providing housing to meet the needs of various
income levels, focusing development in existing urban areas (maximizing existing infrastructure), and
using “green” development techniques. www.compassblueprint.org
Area Community Redevelopment Plans
Community redevelopment plans have the overall objective of reducing blight. Habitat LA’s proposed
NSP2 program will help reduce incidents of blight by providing financing and facilitating high-quality
housing rehabilitation and new construction of vacant sites, as well as providing responsible lending to
prevent future foreclosures. http://www.lacdc.org/resources/library/index.htm
Five-Year Redevelopment Housing Implementation Plans
Local redevelopment plans require that no less than 20% of each jurisdictions total tax increment
revenues be used for the benefit of housing that serves low- and moderate-income households. Since the
target areas are located within the redevelopment project areas, the cities will use funds to supplement
proposed NSP2 activities. The parties will leverage and combine available redevelopment housing setaside funds and NSP2 funds to meet mutual affordable housing development objectives.
www.sogate.org/sgcms/media/.../substantial_amendment_for_hprp.pdf
www.sogate.org/index.cfm/fuseaction/DetailGroup/navid/79/cid/30
www.lynwood.ca.us/cityDept/cityDept_redevelopment.htm
FY 2005-2010 Consolidated Plan and 2008-2009 Action Plans
The proposed NSP2 program will be consistent with and help further the aims of the CDBG
Consolidated Plans of each City, including meeting the needs of the minority population, providing
decent housing through restoration and preservation of existing housing stock, helping resolve issues
related to lead-based paint hazards, addressing poverty by reducing mortgage payments to an affordable
level thereby generating more disposable income for health, education and other consumer needs, and
providing housing at affordable prices.
The proposed NSP2 program is also consistent with the State of California Annual Plan 205-2010
consolidated plan. In addition to the above elements with which Habitat is consistent, Habitat is also
consistent with the State’s goals under NSP 1 program. http://www.hcd.ca.gov/hpd/hrc/rep/fed
52
Id. at 3-22.
38
NSP 1 Program
Both partner cities have allocations of NSP 1 funds and other affordable housing assistance funds. All
partners will work together to leverage resources to maximize the impacts of NSP2 and other local
housing resources.
Brooklyn, New York
Habitat - NYC is working in collaboration with a number of organizations formed specifically by the
City of New York to address the high rates of foreclosure – the Center for New York City
Neighborhoods and Restored Houses, as well as city agencies and initiatives that are dedicated to the
creation and preservation of affordable housing.
Habitat-NYC’s NSP2 approach complements New York City’s NSP1 strategy of using NSP funds to
purchase and rehabilitate REO houses. With the utilization of NSP2 funds for similar purposes in
Habitat-NYC’s targeted geography, Habitat-NYC will be able to further decrease the concentration of
foreclosed and abandoned houses. Over the past 10 years, Habitat-NYC partnered with more than 10
churches, 7 non-profits and CDCs, and the local community boards – 16 and 3.
Additionally, Habitat-NYC has been working closely with the City of New York on its NSP2 strategy.
NSP2 funds used for foreclosed houses will be able to benefit from down payment assistance funds
provided by the City of New York, allowing the Habitat houses to be that much more affordable. The
Habitat-NYC plan will be consistent with the following:
Mayor Bloomberg’s 10-Year New Housing Marketplace Plan
Habitat-NYC’s NSP program will contribute to the mayor’s housing goals of producing of affordable
houses for low and very-low income households. www.nyc.gov
The Department of Housing Preservation and Development (HPD): Neighborhood -Wide
Redevelopment (Urban Renewal)
As New York City's urban renewal agency, HPD acquires property through condemnation and other
means; sells properties for the purpose of redevelopment; and coordinates redevelopment of the area.
Habitat-NYC’s NSP program will complement the urban renewal planning for both community districts
that Habitat-NYC anticipates targeting. www.nyc.gov/html/hpd/html/developers/urban-renewal.shtml
The Center for New York City Neighborhoods
As a recipient of NSP 1, CNYCN is a critical player in the purchase of foreclosed houses. Habitat-NYC
will work closely with CNYCN to ensure that efforts are consistent. http://www.cnycn.org
Restored Houses HDFC
Restored Houses acquires real estate owned properties soon after a failed foreclosure sale (at auction).
Habitat-NYC’s program will work closely with the Restored Houses program, to ensure that efforts are
consistent. www.neighborhoodrestore.com/index_nr.html
Economic Development Plans
Habitat-NYC’s recent 41-unit Atlantic Avenue project generated $2 million to businesses in the Ocean
Hill community. This development will generate approximately $34.5 million in economic activity over
the next 40 years. Habitat-NYC’s NSP2 project will more than double the above mentioned economic
impact. These positive impacts will be consistent with local and regional economic development plans.
www.nyc.gov/html/dcp/html/pub/conpln2009.shtml
39
Milwaukee Habitat is a founding member of the Harambee Great Neighborhoods Steering Committee,
and Milwaukee Habitat’s house construction efforts (35 houses in the past three years for families at 60
of AMI or below) are part of an overall strategy for increasing homeownership in this neighborhood,
which also includes new construction and rehab projects completed by other non-profits and for-profit
developers for families under 80% of AMI and also market-rate sales. The plan includes a multipronged
approach to revitalization, including community beautification projects, employment and educational
training, the arts, etc. to raise perceptions of the neighborhood and make it more marketable to
homeowners and renters. Milwaukee Habitat plans to continue building 10-15 houses each year in
Harambee during the 3 year NSP period, and also received $50,000 from Thrivent Financial (who
contributed $1,000,000 in leverage money total) for A Brush with Kindness Projects and another
$50,000 from Chase bank to do small rehab projects on houses in the same neighborhoods where
Milwaukee Habitat is building houses. harambeegreatneighborhood.blogspot.com
Another targeted area for NSP2 activities is the Amani neighborhood of Milwaukee. Milwaukee Habitat
is currently working to bring together all interested parties to discuss a collaborative approach to the
revitalization of this neighborhood. Milwaukee Habitat has currently constructed 15 houses in the
Amani neighborhood, with an additional 10 planned for this year. This is a neighborhood that has
several strong agencies working in it, including two that are doing rehabs of houses for low-income
families, and Milwaukee Habitat has worked collaboratively with both for a number of years.
Milwaukee Habitat is currently working with Common Ground and several of the area churches to
create a comprehensive plan for new construction, rehab and ABWK work in the neighborhood, and
plans to build 10-15 houses there each of the 3 NSP funding years.
www.ci.mil.wi.us/display/router.asp?docid=310
Milwaukee Habitat is also one of the founding members of the Washington Park Partners Coalition, a
LISC-sponsored Great Neighborhoods project. Milwaukee Habitat has been in Washington Park for
over 6 years and has built or rehabbed nearly 50 houses there. Milwaukee Habitat’s construction
projects are a part of the Washington Park Partners strategic plan, and plans call for building 10-15
houses there each of the three NSP program years.
www.lisc.org/milwaukee/about_us/publications_2378/index.shtml;
www.lisc.org/milwaukee/programs/washington_6494.shtml
Milwaukee Habitat is also collaborating with the City of Milwaukee and a deconstruction firm to sell
recycled building materials from demo projects funded through the City’s NSP-1 funding. In addition,
Milwaukee Habitat is working with the city this year on projects in Harambee and Amani that will make
use of NSP funding for house production.
city.milwaukee.gov/display/displayFile.asp?docid=5605&filename=/User/jsteve/conplan.pdf
40

Application Overview/Program Summary

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