Grantee: Grant: Southfield, MI B-11-MN-26-0011 April 1, 2014 thru June 30, 2014 Performance Report 1
Grant Number: B-11-MN-26-0011 Grantee Name: Southfield, MI Grant Award Amount: $1,084,254.00 LOCCS Authorized Amount: $1,084,254.00 Total Budget: $1,559,254.00 Obligation Date: Contract End Date: 03/08/2014 Grant Status: Active Estimated PI/RL Funds: $475,000.00 Award Date: Review by HUD: Reviewed and Approved QPR Contact: No QPR Contact Found Disasters: Declaration Number NSP Narratives Summary of Distribution and Uses of NSP Funds: For the purpose of selecting targeted neighborhoods, HUD established guidelines for communities. HUD is funding the Neighborhood Stabilization Program Three (NSP3) to revitalize neighborhoods across the country using the existing housing stock by rehabilitating vacant foreclosed homes. The NSP3 Targeted Neighborhood begins at the northeastern corner of the city at Greenfield and Thirteen Mile. From there it follows Greenfield south all the way to the city&rsquos southern border at Eight Mile which it follows west to Lahser. It follows Lahser North up to Ten Mile which it travels along until it turns north at a point directly south of The Lodge and Civic Center Drive, which it meets. It then follows Civic Center Drive across the Civic Center to Lincoln, the southern border of Lathrup Village, which it follows along to the eastern border where it tracks along north. The border then meets Twelve Mile it briefly follows west to Southfield, where ittracks north to Thirteen Mile. Finally, the border stretches east along Thirteen Mile to meet its beginning at Greenfield. This neighborhood has good public transportation, local retailing and large employment centers. It also includes the business districts along Greenfield; Southfield; Evergreen; Lahser; The Lodge (US 10); Eight, Nine, Ten, Eleven, Twelve, and Thirteen Mile Roads; and the entire Cornerstone District. The NSP3 Targeted Neighborhood Score (as scored by HUD) within the is: Neighborhood NSP3 Score: 19.4 State Minimum Threshold NSP3 Score: 17 Total Housing Units in Neighborhood: 14586 How Fund Use Addresses Market Conditions: NSP3 funds were allocated by a formula based on the number of foreclosures and vacancies in the 20% of U.S. neighborhoods (Census Tracts) with the highest rates of homes which were financed by a subprime mortgage, are delinquent, or are in foreclosure. The net result is that these funds are highly targeted to communities with the most severe neighborhood problems associated with the foreclosure crisis. Southfield's focus is to acquire and sell renovated homes to mortgage ready clients. In the event that these homebuyers cannot be immediately financed they will have the option to lease to own or in some cases buy through land contract. Ensuring Continued Affordability: Low Income Upon residing in the home for a period of not less than 15 years the interest free loan may be forgiven providing that the family&rsquos household income is at less than 50% of the AMI. Low-To-Moderate Income Upon residing in the home for a period of not less than 15 years, 50% of the interest free loanmay be forgiven providing that the family&rsquos household income is at or greater than 50% of the AMI but less than 80% of the AMI. Moderate-To-Middle Income Upon residing in the home for a period of not less than 15 years, 0% of the interest free loan may be forgiven providing that the family&rsquos household income is at or greater than 80% of the AMI. 2
Definition of Blighted Structure: Blighted Structure &ndash A structure is blighted when it exhibits objectively determinable signs of deterioration sufficient to constitute a threat to human health, safety, and public welfare. Per Code a blighted structure is defined in Ordinance 1198 per SECTIONS 8.141, 8.142, 8.143 and 8.144 of CHAPTER 100 OF TITLE VIII OF THE CODE OF THE CITY OF SOUTHFIELD. In addition, the estimated cost to rehabilitate the structure in compliance with the City&rsquos Property Maintenance Code must be greater than 50% of the estimated cost to replace the structure. Definition of Affordable Rents: No more than 30% of adjusted monthly income Housing Rehabilitation/New Construction Standards: All homes assisted under activity # 2 - Acquisition, Rehabilitation and resale of foreclosed properties will be brought into compliance with the City&rsquos Property Maintenance Code. In addition, all work completed will comply with the City&rsquos Building Code. Environmental hazardous conditions, e.g. lead based paint hazards will also be addressed as required by HUD. Vicinity Hiring: will adhere to Section 3 of the Housing and Urban Development Act of 1968, described in 24CFR Part 135. Procedures for Preferences for Affordable Rental Dev.: Possible preferences have not yet been developed nor have properties been identified as of yet. However, may work with area non profits who might have preferences i.e. veterans Southfield will follow all relevant fair housing laws and will seek guidance from HUD concerning procedures for preferences. Southfield will be exploring a partnership with the Southfield Housing Commission on the feasibility of a project based Section 8 voucher progrqam which would follow its current waiting list preference for southfield residents. Grantee Contact Information: Jurisdiction:, Michigan Jurisdiction web address: Cityofsouthfield.com NSP Contact name: Erica Williams, Housing Specialist NSP Contact address: 26000 Evergreen Road Southfield, MI 48037 Telephone: (248) 796-4174 Fax: (248) 796-5135 Email: ewilliams@cityofsouthfield.co m Overall Total Projected Budget from All Sources Total Budget Total Obligated Total Funds Drawdown Program Funds Drawdown Program Income Drawdown Program Income Received Total Funds Expended Match Contributed This Report Period To Date N/A $1,559,254.00 $398,303.20 $1,559,254.00 ($45,668.57) $1,113,662.35 $275,336.17 $974,392.35 $275,336.17 $897,695.55 $76,696.80 $76,696.80 $567,219.73 $1,333,675.80 3
Progress Toward Required Numeric Targets Requirement Required Overall Benefit Percentage (Projected) Overall Benefit Percentage (Actual) Minimum Non-Federal Match Limit on Public Services $162,638.10 Limit on Admin/Planning $108,425.40 Limit on State Admin To Date 0.00% 0.00% $114,474.80 $114,474.80 Progress Toward Activity Type Targets Activity Type Target Actual Administration $108,425.40 $155,925.00 Progress Toward National Objective Targets National Objective Target Actual NSP Only - LH - 25% Set-Aside $271,063.50 $615,000.00 Overall Progress Narrative: Two (2) properties were sold during this QPR reporting period (Apr-June 2014). Address 28501 Brentwood, Activity #1 (Acquisition/Rehab/Resell) aided in satisfying the HUD National Objective of 25% set aside. There are five (5) more properties that have been designated for the 25% set aside. One of the five properties will be closing in the next QPR period. Address 18131 Melrose was sold as an Activity #2 (Acquisition/Rehab/Resell). When Program Income Receipts are created, an allocation of 25% will go to Activity #1 and 10% to Activity #4- Admin. All contract rehabilitation work is in its final stages for all properties remaining in the NSP-3 inventory. All properties will be appraised when rehabilitation is completed. This provides an amount to gauge what the listing price could be. The two (2) realty companies contracted in March 2013 have been diligent in showing the homes we already have listed for sale and educating their fellow realtors about HUD household income qualifications for the NSP program. Project Summary Project #, Project Title This Report Period To Date Program Funds Drawdown Project Funds Budgeted Program Funds Drawdown 1, LI- Acq/Rehab $20,523.11 $615,000.00 $229,839.96 2, Housing Acq/rehab $248,763.26 $649,329.00 $543,380.79 3, DHA (Direct Homeownership Assistance $139,000.00 $10,000.00 4, Adminstration $6,049.80 $155,925.00 $114,474.80 4
Activities Project # / Title: 1 / LI- Acq/Rehab Grantee Activity Number: Activity Title: 1 LI- Acq/Rehab Activitiy Category: Rehabilitation/reconstruction of residential structures Project Number: 1 Projected Start Date: 07/01/2011 Benefit Type: Direct ( HouseHold ) National Objective: NSP Only - LH - 25% Set-Aside Activity Status: Under Way Project Title: LI- Acq/Rehab Projected End Date: 03/31/2014 Completed Activity Actual End Date: Responsible Organization: Overall Total Projected Budget from All Sources Total Budget Total Obligated Total Funds Drawdown $308,193.24 To Date $615,000.00 $615,000.00 $306,806.76 $306,536.76 Program Funds Drawdown $20,523.11 $229,839.96 Program Income Drawdown $76,696.80 Program Income Received Total Funds Expended Apr 1 thru Jun 30, 2014 N/A $20,523.11 $236,406.41 $236,406.41 $569,343.18 $569,343.18 Match Contributed Activity Description: Acquisition, rehabilitation of rental units or may be lease to own for families that are at or below 50% of the area median income. Location Description: The NSP3 Targeted Neighborhood begins at the northeastern corner of the city at Greenfield and Thirteen Mile. From there it follows Greenfield south all the way to the city&rsquos southern border at Eight Mile which it follows west to Lahser. It follows Lahser North up to Ten Mile which it travels along until it turns north at a point directly south of The Lodge and Civic Center Drive, which it meets. It then follows Civic Center Drive across the Civic Center to Lincoln, the southern border of Lathrup Village, which it follows along to the eastern border where it tracks along north. The border then meets Twelve Mile it briefly follows west to Southfield, where it tracks north to Thirteen Mile. Finally, the border stretches east along Thirteen Mile to meet its 5
beginning at Greenfield. This neighborhood has good public transportation, local retailing and large employment centers. It also includes the business districts along Greenfield; Southfield; Evergreen; Lahser; The Lodge (US 10); Eight, Nine, Ten, Eleven, Twelve, and Thirteen Mile Roads; and the entire Cornerstone District. The NSP3 Targeted Neighborhood Score (as scored by HUD) within the is: Neighborhood NSP3 Score: 19.4 State Minimum Threshold NSP3 Score: 17 Total Housing Units in Neighborhood: 14586 Activity Progress Narrative: There was one (1) single family property sale (28501 Brentwood). This property was sold to a 30%-50% Area Median Income family. This sale aided in meeting HUD's National Objective. Expenditures covered maintenance and rehabilitation for properties. It is anticipated that all rehabilitation work will be completed and final payments will be made to contractors by the end of the next QPR reporting period. Accomplishments Performance Measures No Accomplishments Performance Measures found. Beneficiaries Performance Measures This Report Period Cumulative Actual Total / Expected Low Mod Total Low Mod Total Low/Mod% # of Households 0 0 0 0/0 0/0 0/3 0 # Owner Households 0 0 0 0/0 0/0 0/1 0 # Renter Households 0 0 0 0/0 0/0 0/2 0 Activity Locations Address City County State Zip Status / Accept 28501 Brentwood Southfield Michigan 48076 Match / N Address Support Information 6
Address: 28501 Brentwood, Southfield, Michigan 48076 Property Status: Affordability Start Date: Completed 05/05/2014 Description of Affordability Strategy: Affordability End Date: 05/06/2029 Resale Activity Type for End Use: Acquisition - general National Objective for End Use: NSP Only - LH - 25% Set-Aside Description of End Use: Projected Disposition Date: Date National Objective is met: 05/05/2014 Actual Disposition Date: Deadline Date: 05/06/2029 Other Funding Sources Budgeted - Detail No Other Match Funding Sources Found Other Funding Sources No Other Funding Sources Found Total Other Funding Sources Amount Project # / Title: 2 / Housing Acq/rehab Grantee Activity Number: Activity Title: 2 Acq/Rehab Activitiy Category: Rehabilitation/reconstruction of residential structures Project Number: 2 Projected Start Date: 07/01/2011 Benefit Type: Direct ( HouseHold ) National Objective: NSP Only - LMMI Activity Status: Under Way Project Title: Housing Acq/rehab Projected End Date: 03/31/2014 Completed Activity Actual End Date: Responsible Organization: Overall Apr 1 thru Jun 30, 2014 To Date Total Projected Budget from All Sources N/A $649,329.00 Total Budget $113,406.64 $649,329.00 Total Obligated $17,458.43 $553,380.79 7
Total Funds Drawdown $248,763.26 Program Funds Drawdown $248,763.26 $543,380.79 Program Income Drawdown Program Income Received Total Funds Expended $210,671.17 $543,380.79 $76,696.80 $628,466.20 $210,671.17 $628,466.20 Match Contributed Activity Description: Acquisition, rehabilitation and sale of foreclosed properties in target areas. Location Description: The NSP3 Targeted Neighborhood begins at the northeastern corner of the city at Greenfield and Thirteen Mile. From there it follows Greenfield south all the way to the city&rsquos southern border at Eight Mile which it follows west to Lahser. It follows Lahser North up to Ten Mile which it travels along until it turns north at a point directly south of The Lodge and Civic Center Drive, which it meets. It then follows Civic Center Drive across the Civic Center to Lincoln, the southern border of Lathrup Village, which it follows along to the eastern border where it tracks along north. The border then meets Twelve Mile it briefly follows west to Southfield, where it tracks north to Thirteen Mile. Finally, the border stretches east along Thirteen Mile to meet its beginning at Greenfield. Activity Progress Narrative: One (1) property was sold this quarter (18131 Melrose) to an 80%-120% Area Median Income family. Expenses incurred were for maintenance and rehabilitation of properties. Property rehabilitation and payments to contractors are expected to be completed in the next QPR reporting period. Accomplishments Performance Measures No Accomplishments Performance Measures found. Beneficiaries Performance Measures This Report Period Cumulative Actual Total / Expected Low Mod Total Low Mod Total Low/Mod% # of Households 0 0 0 0/0 0/0 0/2 0 # Owner Households 0 0 0 0/0 0/0 0/2 0 Activity Locations Address City County State Zip Status / Accept 18131 Melrose Southfield Michigan 48075 Match / N 18712 Addison Southfield Michigan 48075 Match / N 8
Address Support Information Address: 18131 Melrose, Southfield, Michigan 48075 Property Status: Affordability Start Date: Completed 04/21/2014 Description of Affordability Strategy: Affordability End Date: 04/23/2029 Resale Activity Type for End Use: Projected Disposition Date: Homeownership Assistance to low- and moderate-income 04/21/2014 National Objective for End Use: Date National Objective is met: NSP Only - LMMI 04/21/2014 Description of End Use: Actual Disposition Date: 04/22/2029 Deadline Date: 04/23/2029 Rehabilitate/Resale single family home. Address: 18712 Addison, Southfield, Michigan 48075 Property Status: Affordability Start Date: Completed 08/30/2013 Description of Affordability Strategy: Affordability End Date: 08/31/2028 Resale Activity Type for End Use: Projected Disposition Date: Homeownership Assistance to low- and moderate-income 08/30/2013 National Objective for End Use: Date National Objective is met: NSP Only - LMMI 08/30/2013 Description of End Use: Actual Disposition Date: 08/31/2028 Deadline Date: 08/31/2028 Rehabilitate/Resale single family home. Other Funding Sources Budgeted - Detail No Other Match Funding Sources Found Other Funding Sources No Other Funding Sources Found Total Other Funding Sources Amount Project # / Title: 3 / DHA (Direct Homeownership Assistance Grantee Activity Number: Activity Title: 3 DHA - Direct Homeownership Assistance Activitiy Category: Homeownership Assistance to low- and moderate-income Activity Status: Under Way 9
Project Number: 3 Projected Start Date: 07/01/2011 Benefit Type: Direct ( HouseHold ) National Objective: NSP Only - LMMI Project Title: DHA (Direct Homeownership Assistance Projected End Date: 03/31/2014 Completed Activity Actual End Date: Responsible Organization: Overall Total Projected Budget from All Sources Total Budget Total Obligated Total Funds Drawdown ($63,127.00) To Date $139,000.00 $139,000.00 $139,000.00 $10,000.00 Program Funds Drawdown $10,000.00 Program Income Drawdown Program Income Received Total Funds Expended Apr 1 thru Jun 30, 2014 N/A ($63,127.00) $8,595.34 $8,595.34 $18,595.34 $18,595.34 Match Contributed Activity Description: a) Down payment and/or closing cost not to exceed $5,000.00 (b) General modernization of home, e.g., new roof, siding, interior repairs, new floor coverings, bathroom and kitchen upgrades, abatement of hazardous environmental conditions when necessary to complete a particular modernization improvement, etc. The general modernization cannot exceed $20,000.00 (c) Purchase of energy efficiency appliances not to exceed $6,000.00 (d) Weatherization of the home, e.g., installation of insulation, new windows, new doors, HVAC systems, environmental abatement services associated with a particular weatherization improvement, etc, not to exceed $15,000.00, Michigan NSP3 Draft February 7, 2011 Page 7 (e) Abatement of hazardous environmental conditions abatement (separate from the above), e.g., removal of septic system, installation of new sewer line, installation of waterline, lead paint abatement, asbestos abatement, mold remediation, etc. The abatement of hazardous environmental conditions cannot exceed $15,000.00. The total aggregate of the Direct Homeownership Assistance (DHA) will not exceed 49.5% of the property&rsquos purchase price or the appraised value whichever is greater. Location Description: 10
The NSP3 Targeted Neighborhood begins at the northeastern corner of the city at Greenfield and Thirteen Mile. From there it follows Greenfield south all the way to the city&rsquos southern border at Eight Mile which it follows west to Lahser. It follows Lahser North up to Ten Mile which it travels along until it turns north at a point directly south of The Lodge and Civic Center Drive, which it meets. It then follows Civic Center Drive across the Civic Center to Lincoln, the southern border of Lathrup Village, which it follows along to the eastern border where it tracks along north. The border then meets Twelve Mile it briefly follows west to Southfield, where it tracks north to Thirteen Mile. Finally, the border stretches east along Thirteen Mile to meet its beginning at Greenfield. Activity Progress Narrative: Direct Homeownership Assistance was provided for two (2) property sales. The 25% set aside property (28501 Brentwood) was eligible to expend up to $20,000 and Activity #2 property (18131 Melrose) was eligible to expend up to $10,000.00. Accomplishments Performance Measures No Accomplishments Performance Measures found. Beneficiaries Performance Measures No Beneficiaries Performance Measures found. Activity Locations No Activity Locations found. Other Funding Sources Budgeted - Detail No Other Match Funding Sources Found Other Funding Sources No Other Funding Sources Found Total Other Funding Sources Amount Project # / Title: 4 / Adminstration Grantee Activity Number: Activity Title: Activitiy Category: Administration Project Number: 4 Projected Start Date: 07/01/2011 4 Administration Activity Status: Under Way Project Title: Adminstration Projected End Date: 03/31/2014 11
Benefit Type: ( ) National Objective: N/A Completed Activity Actual End Date: Responsible Organization: Overall Total Projected Budget from All Sources Total Budget Total Obligated Total Funds Drawdown $39,830.32 To Date $155,925.00 $155,925.00 $114,474.80 $114,474.80 Program Funds Drawdown $6,049.80 $114,474.80 Program Income Drawdown Program Income Received Total Funds Expended Apr 1 thru Jun 30, 2014 N/A $6,049.80 $111,546.81 $111,546.81 $117,271.08 $117,271.08 Match Contributed Activity Description: Program administration for NSP 3 program. Location Description: 26000 Evergreen Road - Municipal offices Activity Progress Narrative: Expenses incurred covered staff payroll, delivery costs for two single family property closings (28501 Brentwood, 18131 Melrose). Accomplishments Performance Measures No Accomplishments Performance Measures found. Beneficiaries Performance Measures No Beneficiaries Performance Measures found. Activity Locations No Activity Locations found. Other Funding Sources Budgeted - Detail No Other Match Funding Sources Found 12
Other Funding Sources No Other Funding Sources Found Total Other Funding Sources Amount 13