The Board of Supervisors held
a work session on this topic at the November 13, 2008 Board
meeting. At that time there was interest in obtaining
additional information about the program and perhaps making
application for funding if this were possible without a
commitment of local funds. Since the work session, the
staff has learned more about the program guidelines and
visited neighborhoods with a clustering of foreclosed
properties. Neighborhoods in Warrenton, Bealeton and
Remington appear to be potential target areas. If the
County wishes to pursue this funding then it is recommended
that authorization to submit a planning grant be provided.
This will provide funding to better define the target area
and program guidelines. It is believed that a program can
be crafted without the input of County dollars other than
the staff time that would be entailed in supporting the
planning activities. Below is additional information about
the program. It should be noted that if funding for a
planning grant is accepted then there is an obligation to
submit a full grant application.
Authorized under Title III of the Housing and Economic
Recovery Act of 2008, the program offers targeted emergency
assistance to state and local governments to acquire and
redevelop foreclosed properties that might otherwise become
sources of abandonment and blight within their communities.
$38.7 million to be administered statewide by The Department
of Housing and Community Development (DHCD), plus separate
allocations to Fairfax and Prince William Counties
Fauquier County Need:
DHCD has identified Fauquier County as having a high level
of need based on the number of bank-owned properties – 228
as of October 2008 (14th highest in the state);
the number of foreclosures in an 18-month period ending June
2008 (19th highest); and the number of subprime
mortgages issued in 2004-2006 (21st in the
state). The highest concentrations of foreclosed properties
appear to be in Warrenton, Remington and the Bealeton area.
Abandoned/foreclosed/blighted properties vacant at least 90
days in a neighborhood impacted by the foreclosure crisis.
Project must benefit low- to moderate-income individuals and
households: 100% of project expenditures must benefit
households earning 120% or less of median income; 25% of
project funds must benefit households earning 50% or less of
median income, classified by HUD as ‘very-low income’. The
25% ‘very-low income’ requirement may best be met by working
with nonprofits that provide supportive housing.
Eligible Project Activities:
1) Establish financing mechanisms for purchase and
redevelopment of foreclosed homes and residential
properties; 2) purchase and rehabilitate homes and
residential properties abandoned or foreclosed; 3) establish
land banks for foreclosed homes; 4) demolish blighted
structures; 5) redevelop demolished or vacant properties
Evaluation: Applications will be evaluated on the basis
of need, impact, readiness, capacity and leveraging.
Open Submission and
Open Submission applications will be
accepted on a rolling basis beginning January 30, 2009
through April 3, 2009, or until all funds have been
expended. DRPT has reserved up to $20 million of NSP funds
for this program.
Competitive Applications will be
accepted, with a deadline of June 1, 2009. DRPT has reserved
up to $10 million of NSP funds for this program.
Both Open Submission and Competitive
Applications may request up to $2 million for a
single-locality project. Not more than three neighborhoods
may be served.
A limited number of Planning Grants, up to
$25,000 for a single locality, will be available. For a
multiple locality projects, Planning Grants up to $40,000
may be awarded.
These are intended to assist with:
identification of properties and determination of ownership;
prioritization of neighborhoods; securing the participation
of owners and negotiating discounts; identification and
development of qualified homebuyers who are interested in
living in the targeted neighborhood; development of criteria
for eligible home buyers; identification of a strategy for
delivery of homeownership training/counseling.
$250,000 statewide has been set aside for
Applications will be accepted on a rolling
basis beginning January 15, 2009 until February 20, 2009 or
until all funds have been committed.
Applicants have up to three months to complete
required activities and must submit a Competitive
Application by June 1, 2009.