Board of Supervisors Meeting Date: 

Chester W. Stribling, Lee District Supervisor

January 8, 2009

Staff Lead:


Anthony I. Hooper, Deputy County Administrator

County Administration


A Resolution to Authorize the Submission of a Planning Grant to Develop a Plan to Address Housing Foreclosures as Provided Through the Neighborhood Stabilization Program


Topic Description:

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.   


Program Purpose:  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.

Virginia Allocation: $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.

Eligible Properties: Abandoned/foreclosed/blighted properties vacant at least 90 days in a neighborhood impacted by the foreclosure crisis.

Project Beneficiaries: 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

Grant Application Evaluation: Applications will be evaluated on the basis of need, impact, readiness, capacity and leveraging.

Open Submission and Competitive Applications:

·         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.

 Planning Grants:

·         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 planning grants.

·         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.


Requested Action of the Board of Supervisors: 

Consider adoption of the attached resolution.

Financial Impacts Analysis:

Federal and State funds are requested to support this planning and future program activity.  The County will provide in-kind services in the form of staff assistance.


Identify any other Departments, Organizations or Individuals that would be affected by this request:

Department of Community Development


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