City of Mobile

NSP2 – Consortium Application

July 13, 2009
Applicant No. 732122582

FACTOR 1: NEED/EXTENT OF THE PROBLEM (40 POINTS)

a. Target geography. (10 points; also a threshold factor)

HUD’s NSP data indicate the following for the City of Mobile:
 a foreclosure rate of 5.0%;
 4,526 total HDMI high cost loans and 36.6% estimated high
cost loan rate;
 5,762 total 90-day vacant resident addresses and 6.8% estimated
90-day vacancy rate; and
 a 4.3% residential vacancy local high cost rate and a 5.6%
unemployment rate

Based on HUD-provided data, information on foreclosures gathered from various

websites, the State of Alabama’s tax-foreclosed property roster, the City of Mobile (“City” or
“Mobile”), in conjunction with area non-profits, has identified three inner-city, historic and
traditional neighborhoods for NSP funding. All proposed activities will be concentrated to
make the greatest impact on these neighborhoods, as well provide equal housing
opportunities to both current and potential residents.

The City will use NSP2 funding to:

 acquire residential vacant properties that have been abandoned or
foreclosed upon;
 rehabilitate residential properties that have been abandoned or
foreclosed upon;
 land bank properties for rehabilitation or redevelopment;
 create financing mechanisms to make homeownership possible ;
 redevelop/construct residential units on demolished or vacant
properties.

The City chose the three Target Neighborhoods for the HUD-Neighborhood
Stabilization Program, based on the following factors:

 scores of 18 or above for both vacancy and/or foreclosure risk

according to HUD data;
 the presence of a concentrated number of tax-foreclosed properties;
 the presence of ongoing public and private efforts to revitalize these
communities;
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 the need for more affordable housing in close proximity to downtown
Mobile;
 stabilization projects in these neighborhoods are consistent with the
New Plan for Mobile;
 environmental factors, such as the age of the structures and traditional
nature of the urban landscape, which allow for the promotion of
preservation and sustainability practices.

The City of Mobile’s Target Neighborhoods are as follows:

1. THE CAMPGROUND/BOTTOM
2. OAKDALE/MAYSVILLE
3. TRINITY GARDENS

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 HUD DATA: VACANCY AND FORECLOSURE RISK SCORES

Neighborhood Census Tract Foreclosure Risk Vacancy Risk

Bottom / Campground 4.01 15 20

5.0 18 20
10.01 12 18

Oakdale / Maysville 9.03 15 18

10.02 9 9
12.00 19 20
13.02 19 19
14.00 18 20
15.01 20 19
15.02 19 19

Trinity Gardens 39.01 19 20

39.02 17 20

In addition to the above-described foreclosures, Mobile is plagued by tax-foreclosed

properties, which now number over 1,100 [1] . Almost 40% of the foreclosures (405) are in
our Target Neighborhoods. Yet these neighborhoods represent only 20% of the City of
Mobile’s total land area. See map below.

[1] Mobile County Revenue Commission

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 City of Mobile
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 NEIGHBORHOOD I: THE BOTTOM/CAMPGROUND

Both the Bottom/Campground and Oakdale/ Maysville are historic neighborhoods,

platted and settled as early as the 1850s. The Bottom /Campground has an extremely high
concentration of abandoned and dilapidated properties due, in large part, to federal policies
of urban renewal and integration during the sixties and seventies. By the late 1960’s, the
community had seen its better days, and as urban renewal, integration and suburban sprawl
progressed, more and more businesses closed their doors, leaving behind the poorest
residents. The community continued its decline until the early 1990s. The neighborhood is
predominantly African-American (99.48% minority population) and low-to-moderate
income (2008 estimated tract median family income was $14,696).

The Bottom/Campground is located within U.S. CT 4.01, 5.00, and 10.01. It is

situated just north of Mobile’s historic city core. The area is bound on the north by wetlands
and Three Mile Creek, on the east by Interstate-165 and Beauregard Street, on the south by
Dauphin Street, Ann Street and St. Stephens Road and on the west by St. Stephens Road
and Three Mile Creek.

The Bottom/Campground exceeds the minimal threshold score for foreclosure and
vacancy risk, with an NSP2 average score of 19. There are a significant number of
abandoned and blighted properties within this target area. In addition to bank foreclosures,
there are 191 tax-foreclosed properties. Of 2,424 residential properties in the
neighborhood, 293 are vacant. (City of Mobile GIS Department statistics). There are also 29
blighted structures, eight of which are also tax foreclosures, which have been officially
declared nuisances by the City of Mobile and are scheduled for demolition. Eight of these
structures are also tax-foreclosed properties. The correlation between the vacant parcels, tax-
foreclosed properties and nuisance properties can be seen in the map below.

The Bottom and Campground neighborhoods feature a cross-section of Mobile

vernacular architecture dating from the 1870s, including cross-gabled Victorians, indigenous
shotguns, pyramidal-roofed workers’ cottages and bungalows. The Campground National
Register District, which includes 200 historic homes, was listed on the National Register of
Historic Places in 2005. The Bottom is adjacent to the Mobile Housing Board’s HOPE VI
Downtown Renaissance redevelopment project, which will be an asset to both
neighborhoods. The area’s prolific trees, hilly terrain and proximity to Three Mile Creek
make it one of Mobile’s most distinguishable neighborhoods and worthy of stabilization and
rehabilitation.

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 City of Mobile
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NEIGHBORHOOD II: OAKDALE / MAYSVILLE

The Oakdale/Maysville neighborhoods are experiencing an average foreclosure rate

of 9% and average HMDA high cost loan rate of 64.51%. The predicted eighteen month
foreclosure rate is 8.51%. As such, theses census tracts (9.03, 10.02, 12.00, 13.02, 14.00,
15.01, 15.02) scored an average of 19 for foreclosure and vacancy risk.

In addition to bank foreclosures in this target area, there are 148 tax-foreclosed and
abandoned properties and 187 vacant, unimproved parcels (out of a total of 4,160 residential
structures). Fourteen blighted properties, six of which are tax foreclosures, have been
declared nuisances and are scheduled for demolition. All tracts are low-to-moderate income
communities.

The Oakdale/Maysville neighborhoods feature gridded streets and raised one- to

two-story wooden homes constructed from 1850s to 1930s. During fall 2009, Oakdale will
be surveyed for inclusion on the National Register of Historic Places. The homes are
characterized by wide front porches, original Victorian and Craftsman detailing, and
windows and doors suited for Mobile’s subtropical climate. Several neighborhood public
schools are located in the area. The streets are tree-lined and the sidewalks encourage
community interaction as well as pedestrian traffic.

Oakdale/Maysville’s critical location –near the City’s inner core -- and the role it has
historically played in the City – providing comfortable, traditional housing for the City’s
working force make this neighborhood worthy of stabilization and preservation. With
stabilization, Oakdale can continue to serve that role today and into the future.

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 City of Mobile
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 NEIGHBORHOOD III: TRINITY GARDENS

According to the Trinity Gardens Revitalization Plan, approximately 80 percent of

the community is located within the City of Mobile (1.4 square miles), and 20 percent
located in the City of Prichard (0.3 square miles) (Census Tract’s 39.01 and 39.02). The area
occupies 1.7 square miles (1,088 acres) and is bounded by Interstate 65 (north and west),
Saint Stephens Road/US Highway 45 (east) and the Donald Street Extension, Prichard
Avenue West, Mobile Street (south).

Currently, Trinity Gardens is experiencing a 10.74 % foreclosure rate for CT 39.01

and a 8.08% foreclosure rate for CT 39.02. The estimated HDMA high cost loan rate is
78.57% in CT 39.01 and 56.76% in CT 39.02. The predicted eighteen month foreclosure rate
is 10.4% in CT 39.01 and 7.51% in CT 39.02. The unemployment rate is 5.6%. Trinity
Gardens scored an average NSP2 score of 20 for vacancy and foreclosure risk.

In addition to the bank foreclosed property, there are 66 tax-foreclosed and

abandoned properties in Trinity Gardens. There are 195 vacant, unimproved parcels within
Trinity Gardens. Forty-nine of the tax-foreclosed properties are also identified as vacant
parcels. There are a total of 1428 residential properties. There are 13 nuisance properties.
The map below reveals the correlation between tax-foreclosed properties, the vacant parcels,
and the nuisance properties.

Locally, Trinity Gardens is known as the “Holy Land” because it embraces 45

churches on 29 streets. The neighborhood is characterized by small, one story cottages,
most of which date from the mid 1940s and are emblematic of the post World War II
housing boom.

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 City of Mobile
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b. Market conditions and demand factors (30 points)

Market Conditions

Although our Target Neighborhoods experience a significant number of bank

foreclosures, these neighborhoods have been decimated by tax foreclosures. Out of a total
of 1109 tax-foreclosed properties [2] within Mobile, 37% (405) are within our three Target
Neighborhoods. Yet, these neighborhoods represent roughly 20% of the Mobile’s total land
area.

Tax foreclosures have dragged down these neighborhoods for many years. Under
Alabama law, properties are not tax-foreclosed until property taxes have not been paid for
three consecutive years. Foreclosures included in this application have been abandoned
since at least 2005. Others, may have been unoccupied for as many as 20 years. In addition,
potential purchasers of tax sale property must wait 3-6 years, for the owner’s redemption
rights to expire, prior to obtaining a clear title.

The inability to acquire tax-foreclosed properties has been a major stumbling block to
the revitalization of Mobile’s inner-city neighborhoods. When you drive through our Target
Neighborhoods and see abandoned buildings falling apart and empty lots where houses once
stood, you are seeing the effects of tax foreclosures. In our Target Neighborhoods, the
stock of tax foreclosures outnumbers properties listed for sale by realtors by a two to one margin. [3]
This amounts to the following: for every “for sale” sign posted in our Target
Neighborhoods – which would include bank foreclosures - there are two abandoned
properties with invisible “for sale” signs.

The effects of the recent economic downturn and the Target Neighborhoods’
predisposition for high cost loans and bank foreclosures are, therefore, exasperated by the
cloud on the title of tax-foreclosed properties. The concentration of these vacant,
languishing properties has sent the neighborhoods into a downward spiral. The absorption
rate of tax foreclosures has been nearly zero, given Alabama’s redemption laws and the
inability to access clear title to the properties. As such, to date, Alabama law has encouraged
westward growth, sprawl and inner-city disinvestment by not providing for the
redevelopment of inner city neighborhoods.

However, in June 2009, the State Legislature, encouraged by the Alabama

Department of Economic and Community Affairs and in anticipation of NSP2, passed a new
statute, which forecloses on the property owner’s unreasonably lengthy rights of redemption.
Under the new law, for the first time in Alabama history, tax foreclosures will pass to the
newly created Alabama Land Bank Authority.

We calculated the average number of properties on the market per month in our Target Neighborhoods and then
[3]

compared those numbers to the total amount of tax-foreclosed properties which persist in the neighborhood. See
http://www.southalabama.edu/mcob/realestate/mobilemarketwatch.shtml.
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 The Alabama Land Bank Authority will be a statewide land bank, operated in
conjunction with municipalities, to identify eligible tax foreclosed property for
redevelopment by individuals, non-profit and private developers. The Alabama Land Bank
Authority has the authority to foreclose redemption rights and free up property so that it can
be sold with clear titles. The Legislature has, in essence, found a way to put tax foreclosures
back on the market. And, not just any market: rehabilitated tax foreclosures will constitute a
new market for low-moderate-middle income families

Demand Factors

In Mobile, affordable housing in close proximity to employment centers and

educational opportunities is in demand. Our Target Neighborhoods are positioned to meet
this demand because they are near employment centers, both secondary and higher
institutions of education, and social services. Both the Campground/Bottom and
Oakdale/Maysville are within 1-2 miles of downtown Mobile and the Port of Mobile, which
employs 600 people. The shipping industry in Mobile, as a whole, employs approximately
20,000 and is a growing industry for our city. The Port of Mobile is the tenth largest in the
US in total volume. The Alabama State Port Authority is expanding its container yard and
will use $25 million in ARRA funds to complete a new turning basin. All of this activity will
yield new jobs and housing near the port.

Mobile is also experiencing economic growth and job creation in the field of aviation
and manufacturing, especially at its Brookley Complex. The Oakdale/ Maysville
neighborhoods border the Brookley Complex. Covering 1,700 acres, the Brookley Complex
is home to more than 100 businesses employing approximately 3,700 people in 4.6 million
square feet of industrial space. In addition, Brookley has been identified by the Air Force as
one of the two national locations for construction of its air force tanker. Future economic
development in this area of town will drive the need for affordable housing within the
Oakdale / Maysville neighborhoods. Two major north-south thoroughfares of the
Oakdale/Maysville neighborhoods, Michigan Avenue and Broad Street, dead end at the
Brookley Complex.

Private developers have been reluctant to invest in our Target Neighborhoods, where
homes are needed, because these areas have been in decline for so long. NSP2 funding will
concentrate redevelopment, stabilize the neighborhoods, and make such a dramatic, visual
difference that private developers will want to reinvest in these revitalized neighborhoods.

(2) The extent to which over-building of housing units, over-valuation of housing, or

loss of employment is a critical factor, or the most critical factor, causing
abandonment and foreclosure in the target geography.

The two critical factors which have caused destabilization of our Target
Neighborhoods are 1) the persistent presence of tax-foreclosed, vacant properties and 2)
extended economic decline. The persistence of tax-foreclosed vacant properties reinforces
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the economic decline, thereby instituting a cyclical pattern. The economic decline encourages
further abandonment and dispels any positive and potential reinvestment.

Until the tax-foreclosed properties are rehabilitated and put back on the market, these
neighborhoods will be immune to either 1) over-building or 2) over-valuation.

(3) The income characteristics of households in your target geography and

information on housing cost burden for households at the 50 percent, 80 percent, and
120 percent of area median income levels.

Income Characteristics

Neighborhood Percent Less

than 120% AMI
1) Bottom / 85.4%
Campground
2) Oakdale / Maysville 80.9%

3) Trinity Gardens 83.9%

Housing Costs Burden (price per month)

Efficiency 1BR 2BR 3BR 4BR 5BR 6BR

FAIR MARKET
RENT $556 $595 $671 $879 $1037 $1193 $1348
50% AMI RENT
LIMIT $433 $464 $557 $643 $717 $791 $866
65% AMI RENT
LIMIT $544 $584 $703 $804 $876 $949 $1021

Family of Four 50% 80% 120%

Income Limits $24,750 $39,600 $59,400

HUD Housing Cost $8,250 / year or $13,200 /yr or $17,820 /yr or

Burden $687/month $1100/month $1485/month
(= 33-1/3% income)

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(4) Any relevant social, governmental, educational, or economic factors contributing
to local market conditions and contributing to neighborhood decline or instability
within the target geography.

Relevant Factors: Neighborhood 1: Campground / Bottom

Throughout the Bottom/ Campground, several signs of economic disinvestment

exist, including an aging, poorly maintained housing stock, vacant parcels, cited nuisance
properties and persistent code evaluations. As discussed above, there are 191 tax-foreclosed
properties within this particular neighborhood. Until recently, neither the public nor private
sector were in a position to access these properties under Alabama law. The persistence and
sheer number of these properties has a worked a detriment on this neighborhood, which is
further exasperated by the mortgage crisis. Future disinvestment and further decline is
inevitable unless the public sector is able to capture and resell the tax foreclosed properties.

Relevant Factors: Neighborhood 2: Oakdale / Maysville

As with the Bottom/ Campground, the Oakdale/Maysville neighborhood has an

inordinate amount of tax-foreclosed property. The Oakdale/Maysville neighborhood also
has a greater density of high-cost loans and experiences the most bank foreclosures within
the City. Loss of employment is driving this trend; however, as discussed in paragraph (1)(b),
we expect this area to experience further economic development as the Brookley Complex
grows, provided the economy rebounds. The neighborhood’s stabilization, therefore, is
imperative.

Relevant Factors: Neighborhood 3: Trinity Gardens

The Trinity Gardens community has continued to experience a decline in population

since the 1980’s. From 1970 to 1990, as migration to the outer suburbs and suburban
incorporation peaked in Mobile County, Trinity Gardens lost 1.7 percent, to total 4,241
residents in the year 2000. This number represents a loss of 73 residents since 1990.

The decreasing number of residents moving away from Trinity Gardens translates
into fewer households. The number of households also decreased to 1,356 by the year 2000,
a decrease of 3.4 percent (47 households) from 1990. Such decline will have a direct impact
on housing demand. Housing demand and housing prices-generally-decrease as the
population decreases. Consequently, a lower housing demand and lower prices have an
effect on the status of vacant land (i.e. length of time vacant, cost of land).

(5) A narrative describing which NSP2 activity categories are most likely to stabilize
the target geography and why, based on the information in the above paragraphs.

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 Consortium Members will be acquiring, rehabilitating and redeveloping 156
properties within the Target Neighborhoods. The ability to acquire tax-foreclosed
properties from the Alabama Land Bank Authority by the Consortium Partners within
these target neighborhoods will 1) decrease potential sources of blight; 2) protect the
surrounding owners’ property values; 3) decrease potential safety hazards and crime
opportunities; 4) provide employment opportunities for the area’s citizens and, most
importantly, 5) provide accessibility to new or rehabilitated affordable housing.

The rehabilitation of foreclosed and abandoned structures for 1) resale to first time
home buyers and low-moderate-middle income buyers, at reasonably-discounted purchase
rates and/or 2) the rehabilitation of homes for lease purchase or 3) transitional housing /
rental property will provide alternative housing options for those who may be forced to rent
substandard property or cannot get financing for homeownership.

The redevelopment of abandoned and vacant, tax foreclosed property within these
neighborhoods will bolster the local economy; return density to the neighborhood, thereby
discouraging further abandonment, and provide opportunity for low to moderate income
homeownership. Subsidized home financing in the form of “soft seconds” will provide
homeowners or tenants with alternatives to high-cost loans. Where potential homeowners
have diminished credit, credit and homeownership counseling will offer educational tools
to the clients.

FACTOR 2: DEMONSTRATED CAPACITY OF THE APPLICANT AND RELEVANT

ORGANIZATIONAL STAFF (40 POINTS)

a. Past Experience of the applicant. (30 points)

Consortium Applicants:

1. City of Mobile –

The City of Mobile, a HUD-entitlement community, is the lead applicant.

Consortium Members include:

2. Mobile Housing Board (MHB)

The Mobile Housing Board has more than 70 years of experience serving low-income
families through housing assistance programs.
 MHB is a property manager, developer, HUD-approved local housing
counseling agency

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 MHB is a community builder that designs and coordinates accessible
programming and services that improve quality of life and remove barriers to
affordable housing and housing self-sufficiency.
 MHB administers the City’s HUD funds and HOME and ESG grants,
 MHB has successfully engaged in large-scale property acquisition, demolition,
relocation, disposition and new construction, the same activities proposed in
this application.
 MHB has directly administered homeowner and rental rehabilitation
programs utilizing CDBG and HOME funds, and performed lead hazard
reduction related to historic preservation, and rehabilitation.
 MHB administers HUD funding for many non-profits, including our NSP2
partners. (Others include Independent Living Center, World Changers, and
Habitat for Humanity.)
 MHB reviews CHDO and CBDO applications submitted by nonprofits,
provides ongoing technical assistance for affordable housing productions, and
monitors expenditure of the City’s CDBG and HOME funds by nonprofits.
 MHB also brings in the table its extensive, successful experience in planning,
implementing and managing physical development, financing, leveraging, and
partnership activities..
 MHB has manage med more than 3,200 public housing units
 MHB administers more than 3,500 Housing Choice Vouchers, 16 tenant-
based vouchers, and an Affordable Homes Program.
 MHB has developed and implemented the following projects within the last
two years: a 25,000 square foot Commercial/Retail Building; cost $2.9 million
(new construction); a 54 single-family homes under 5(h) Homeownership at a
cost of $3.5 million (acquisition, new construction); a 16-unit multi-family under
the HOME program at a cost of $1.3 million (acquisition, new construction)
 MHB is currently developing the first affordable 43-bed assisted living facility
in the State of Alabama, with a $4,700,000 HOPE VI Elderly Revitalization
grant . This project also includes 60 accessible units, a full-service dining
facility, walking trails, lighted tennis courts, an exercise facility, and an on-site
health clinic. (relocation, rehabilitation, new construction)
 The MHB recently was awarded a $20 million HOPE VI Revitalization grant
to replace aging public housing units adjacent to the
Bottom/Campground. The HOPE VI project includes the construction of
162 homes (of which 131 will be affordable homes) and two rental
developments (an 88-unit multi-family targeting elderly and an 87-unit multi-
family). The HOPE VI project included relocation of 613 families, demolition
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 of 787 dwelling units and 2 community buildings. Phase I of the HOPE VI
Revitalization Project, consisting of the development by MHB of 12 off-site
homes (six affordable and six market-rate) is under construction. Downtown
Renaissance (DR), a new-construction, 88-unit multi-family three-story rental
project for the elderly, will follow. MHB, who was awarded tax credits for DR,
will be the developer of this phase. (relocation, demolition, new construction). “The
Renaissance,” a new-construction, 87-unit multi-family townhouse project,
will be the second on-site phase.(acquisition, relocation, demolition, new construction)

 MHB is also developing, Hampton Park, a subdivision of 19 newly-

constructed affordable homes located on a seven-acre site in West
Mobile. (acquisition, new construction).

 MHB is also developing 15 town homes in Josephine Allen Homes, a public

housing community, a aimed at increasing homeownership of mixed income-
level buyers (new construction).

 The MHB was awarded grants from the Federal Home Loan Bank of
Atlanta’s Affordable Housing Program. These grants include $120,000 down
payment assistance for Hampton Park, $60,000 down payment assistance for
Church Street East, and $440,000 in construction funds for Downtown
Renaissance (elderly multi-family).

2. Volunteers of America Southeast (VOASE)

Over its 100 years, VOA has grown from the operation of a single program in a single
city to one of the largest social service organizations in the United States. The combined
assets of VOA affiliates/subordinate organizations total more than $800 million. In 2002,
Volunteers of America was featured in Worth Magazine, a periodical of the Wall Street
Journal, as one of America’s best managed charities.

Although national in structure, VOA develops and operates programs in response to

local community needs and interests. Volunteers of America of South Alabama, Inc.
(VOASA) began serving the South Alabama community in 1980 through the operation of
three group homes for people with developmental disabilities. In 1985 VOASE received a
Charter from the national office signifying that it met the standards required of VOA
affiliates. By March of 1999, Volunteers of America Southeast incorporated to more
accurately reflect the States served by the organization. The a new entity, Volunteers of
America Southeast, Inc. was incorporated, providing services for the southern half of the
State of Alabama, the State of Georgia and the State of Mississippi.

Since 1980, our services have changed and expanded to meet the changing and
increasing needs of the community. Volunteers of America Southeast VOASE has an

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operating budget of $58 million and engages 700 staff to provide services in the
community. The corporate office is located in Mobile,

Today, VOASE has developed 1,100 units of multifamily housing, 550 rehabilitations
of single family homes and the acquisition, rehabilitation, and constructed 15 new homes.
VOASE also manages 959 units of subsidized housing through Section 8 and PRAC
contracts. As a non-profit developer, VOASE has extensive experience working with both
federal and private funding sources and also with private groups seeking specialized
housing.

FUNDED PROJECTS CURRENTLY UNDER DEVELOPMENT

BY VOLUNTEERS OF AMERICA SOUTHEAST

Corporation/Property Name Type Units Cost

Cody Road VOA Housing, Inc. 811 15 $1,960,800
Mobile, AL
Middle Georgia VOA Housing, Inc. 811 10 $1,198,146
Lafayette, GA
Bay Minette VOA Housing, Inc. 811 15 $1,620,100
Bay Minette, AL.
Bayou La Batre VOA Housing, Inc. 202 20 $1,556,000
Bayou La Batre, AL.
Transitional Housing for Homeless Veterans VA 36 $400,000
Mobile, AL
Sophia’s Landing Tax Credit 60 $7,000,000
Mobile, AL.
Addison Way Tax Credit 120 $12,000,000
Selma, AL.
Ballington Place, Single Family Gated Com. Private 38 $4,940,000
Clanton, AL Funding
TOTAL 314 $25,735,046

VOASE has proven experience using the following financing incentives, including,
but not limited to the following projects: Tax exempt 501 (c) (3) bonds for $1,600,000 for
Day Training Facilities; $2,675,000 Special Care Facilities; $1,200,000 development of 9
group homes; $1,700,000 development Special Care Facilities; 9% LIHTC for a 60 unit
Elderly Complex in Mobile, Alabama, $7,000,000; 4% LIHTC for a 120 unit multifamily
complex in Selma, Alabama, $12,000,000; Section 202 (14 communities funded by 202 for a
total of 480 units. In addition, VOASE is currently completing feasibility of a 47 unit 202
elderly development in the Savannah area and are looking for possible sites.

Other creative financial and funding products

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  HOME funds, City of Mobile, $520,000, 14 single family homes, down payment
assistance, and rehabilitation.
 HOME funds, City of Montgomery, $130,000, group home
 Veterans Administration Capital $400,000 grant to create 36 units of housing for
veterans who are homeless and/or precariously housed.
 Rural Housing Economic Development, $300,000, to acquire land for single family
development in rural Mobile County.
 Supportive Services Block Grant, $8,500,000, to rehabilitate homes in hurricane
impacted areas (completed).
 SSBG $13 million underway awarded March 2009
 USDA, $50,000, staff technical assistance position in Katrina impacted area of South
Mobile County.
 Federal Home Loan Bank EDGE Program, $1,000,000, seed funds for Economic
Development Activities, Southeast Steel Framing.
 McArthur Foundation, $1,000,000, PRI seed funds, Southeast Steel Framing.
 Section 811 (HUD) funding for housing persons with disabilities, we currently have
330 units in operation and another 45 units that have been funded and are under
development. Each 811 complex also has supportive service funding that go along
with each unit.
 Federal Home Loan Bank, assorted layering in projects including $279,000 in
rehabilitation funds to update 202, $218,000 layered on Selma Tax Credit
 Emergency Capital Repairs Grant, HUD, $240,000, repair of 202
 Georgia Department Mental Health, $365,000, substance abuse services
 TANF, $1,765,000, substance abuse services

3. MLK Area Redevelopment Corporation (MLK ARC)

Since 1993, the MLK Avenue Redevelopment Corporation (MLKARC) and its
partners have begun and/or completed an impressive array of community projects,
jumpstarting revitalization efforts in the MLK corridor area. This area includes the
Campground National Register District, the Bottom and St. Stephens Road. These efforts
include: the Affordable Homes Program, small business financial assistance, the MLK
Streetscape Project, the Downtown Mobile Façade Grant Program, Lincoln Square Retail
Center and the Freedom School & Financial Literacy Programs. A brief description of each
of these initiatives is discussed below.

Affordable Homes Program. Since its inception, MLKARC has invested roughly $8
million to constructed 110 affordable housing units for low- and moderate-income families
in the MLK and Trinity Gardens communities. There are currently three homes under
contract for construction within the next ten days.

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Small Business Assistance. As an investment partner in the Greater Mobile Development
Corporation, a consortium of nine local banks, MLKARC provided start-up and/or
expansion capital to four small businesses in the MLK community.

MLK Streetscape Project. This project included placement of better lighting along
Mobile’s Martin Luther King corridor, sidewalk repair and replacement corridor and
landscaping. Each of these tasks involved close collaboration among MLKARC and other
organizations in the community, including Alabama Power, Keep Mobile Beautiful, the City
of Mobile Traffic Engineering Division and the Master Gardeners Society of Mobile.

Downtown Mobile Façade Grant Program. MLKARC successfully lobbied to have

historic commercial buildings in the MLK area become eligible to participate in the Façade
Grant Program of the Mobile Historic Development Commission. This eligibility followed
the incorporation of MLKARC’s revitalization plans into the comprehensive redevelopment
plan for downtown Mobile., referenced in this Application. Additionally, MLKARC
received a $25,000 grant from the J.L. Bedsole Foundation to establish matching funds for
area merchants who were not eligible to receive city façade grants. MLKARC provided
matching funds up to $5,000 toward the total cost of the approved façade project.

Proposed Broad Street Retail Center. MLKARC is currently developing the Broad
Street Retail Center (BSRC), which will be an attractive, well landscaped and well maintained
38,807 square-foot retail facility that will serve residents of the MLK and downtown
communities, including our NSP2 Target Neighborhoods. This retail center, a feature in the
New Plan for Mobile, will provide basic products and nearby services for local residents
moving into NSP2 properties. The estimated budget for this project, scheduled for
completion in December 2001, is $6.9 million budget

4. Housing First

Housing First, Inc. is the grantee and management organization for twelve HUD
Supportive Housing projects that provide 161 scattered-site transitional and permanent
housing units for homeless citizens and formerly homeless citizens in Mobile and Baldwin
Counties. The total annual HUD funding for these projects is $2,023,453. All HUD SHP
projects have been implemented within six months of grant agreement execution.

Housing First, Inc. is ready to implement an NSP project immediately. The

organization is the recipient of a two-year New Voices grant (Ford Foundation) that
provides a staff member as a transitional housing manager for citizens who are homeless as a
result of personal circumstances or natural disasters. The grant continues through April
2010 and is projected to be extended for an additional year. The goal is to have income
from a transitional housing program that allows continuing the position indefinitely as
needed.

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 Housing First, Inc. through its subsidiary division, the Homeless Coalition, has been
the recipient of several CDBG grants since 1997 for conducting homeless needs
assessments, rehabilitation of the homeless day center in downtown Mobile, and for the past
four years annual CDBG grants in support of the federally mandated Homeless
Management Information System (HMIS). Active CDBG grants for HMIS are with The
City of Mobile and Mobile County.

Housing First, Inc. serves as the lead organization for the HUD required Continuum
of Care (CoC) for the homeless in Mobile and Baldwin County jurisdictions, federal CoC #
AL501. An established CoC network of project sponsors, service providers and churches is
readily available to facilitate the development of transitional housing for homeless citizens.
All of the partnering organizations for this proposal are active members of the CoC. The
citizens to be served by this project would be referred by these partners.

5. Bay Area Women’s Coalition

Bay Area Women Coalition, Inc. (“BAWC”)is a non-profit, 501 (c)(3) recognized by
the City of Mobile and HUD as a Community Housing Development Organization
(CHDO). Its mission is to serve the Trinity Gardens community by providing decent
housing, affordable housing, safer urban communities, and consistent community support
through educational and cultural programs.

BAWC’s efforts mirror the City of Mobile’s Consolidated Plan, as well as its New
Plan for Mobile, which places priorities on the elimination of blight and slums in
neighborhoods. Key to its success is the partnerships BAWC has formed with public
agencies and private companies. A significant partner has been the Mitchell Company, a
premier local real estate developer known for its entrepreneurship and philanthropy. The
Senior Vice President of the Mitchell Company serves as a consultant to BAWC in its
housing projects and has helped remodel, rehabilitate abandoned, blighted houses in Trinity
Gardens, an NSP1 target neighborhood. A firm commitment letter from the Mitchell
Company to its partnership with the BAWC has been included in this application.

The impact on this community will depend on the number of affordable units produced
in a short period of time. BAWC waiting lists consists of more than ten potential
homebuyers with extremely low income jobs such as seasonal jobs – income tax preparer’s,
roofers, construction, field hands, hotel workers, and the food service industry. BAWC
has formed partnerships with Whitney Bank and Compass Bank to fund new construction
and rehabilitated structures. This has increased community awareness, desires for a new
home, and participation in sales.

BAWC projects include:

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  Phase II of the “Planting 1,000 Crepe Myrtles and Live Oaks Tree Planting Project”
for First Avenue, Ruby, Berkley, Bank, Wellington streets in Trinity Gardens by
planting; Timeline: 2 years
 Rehabilitation of four (4) charity homes, organizing skilled and unskilled volunteers
for the work Timeline: 3 months
 Restored and rehabilitated 20 houses in Trinity Gardens working with World
Changers: Timeline 6 months
 Began a new initiative of the 21-Affordable Homes project, working in collaboration
with the MLK Redevelopment Corporation. Timeline 4 years
 Completed rehabilitation of two houses within the Trinity Gardens community.
Timeline 2 years
 Assisted the City of Mobile’s Planning Department with rehabilitation of the Michael
C. Dow Amphitheatre for the Performing Arts. Timeline 2 years
 Worked with community partners to rehabilitate the roofs of more than 80 homes
hit by Hurricane Katrina Timeline 2 years

6. Mobile Historic Development Commission Revolving Funds – Oakleigh Venture

and Restore Mobile (MHDC)

The Mobile Historic Development Commission (MHDC) was founded by City

Ordinance in 1962. The MHDC is comprised of both a non-profit corporation and a City
government entity. Through the years, the non-profit arm of the Commission has applied
for and implemented numerous grants for the purposes of historic property rehabilitation
and maintenance. In 1992, the Mobile Revolving Fund for Historic Properties was created
as a committee of the MHDC. Its purpose is to acquire, renovate and sell blighted
properties within Mobile’s eight National Register Districts. Now called Restore Mobile, the
committee has done numerous projects, including single family houses (its major focus), a
fourplex and commercial properties. In 2003, the MHDC began the Oakleigh Venture
Revolving Fund with a similar mission as Restore Mobile. It was formed to take advantage
of several Federal loan and grants programs. During its short history it has completed over
two dozen projects. The operations of both groups take acquired funds and after the sell of
properties, reinvest those funds for future projects. Thus far, the two groups have revolved
over $4 million in more approximately 40 buildings.

7. Center for Fair Housing

In 2004, CFH began providing housing counseling services for Mobile County and
Southwest Alabama. CFH became a HUD Certified housing counseling agency in 2006 and
its counselors are trained and certified through Alabama Homeownership Consortium and
NeighborWorks America, a nationally recognized nonprofit organization created by
Congress to provide financial support, technical assistance, and training for community-
based revitalization efforts. CFH has worked successfully with financial institutions and with
borrowers considering homeownership and those facing default, delinquency, and
foreclosure.
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 CFH takes a hand on approach to helping community members realize their dreams
of homeownership and financial stability. Ours is a multi-pronged approach that meets the
individual at their place of need and develops an individualized service plan specifically
tailored to their needs. Through this holistic approach we are able to assist community
members in determining how and what tools will be used to prepare them to be Willing
Ready and Able for homeownership. CFH contributes it success to real life responses for
real life occurrences.

CFH will provide counseling services in-house with two housing counselors. In
situations where more intensive services are needed, especially legal services, CFH will refer
clients to the housing/foreclosure counselor at Legal Services of Alabama, who is also an
attorney. CFH client receive the following counseling services:

• Intake/Assessment and Action Plan

• Budgeting
• Credit and Credit Repair
• Debt Reduction
• Follow-Up
• Mortgage Finance
• Pre and Post Purchase
• Insurance
• Fair Housing
• Financial Literacy

In addition, to the above Consortium Members, the City of Mobile reserves the right
to pursue partnerships with for-profit developers dependent on the need for funding and
future capacity to ensure that the NSP2 program directives are met in a timely fashion.

b. Management structure (10 points)

1. City of Mobile

All grant activities will be administered and monitored by the City of Mobile. Don
McKnight, will serve as the NSP2 Grant Coordinator. Rebecca Christian is the City’s Grant
Accountant.

2. Mobile Housing Board (MHB)

MHB’s Community Development Division will be directly responsible grant project

management and administration, with assistance from the Finance Division. The Finance
Division, along with Partner program managers, will be responsible for insuring that all
NSP2 expenditures comply with OMB Circular A-87: Cost Principles for State, Local and
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Indian Tribal Governments as well as specific grant requirements. MHB has its own staff of
highly skilled professionals and the organizational resources necessary to successfully
implement our NSP2 activities. MHB also has an architectural and engineering firm under
contract for additional needed service or guidance.
3. Volunteers of America Southeast (VOASE)

 Planning VOASE staff, Wallace T. Davis PhD, John Terry Bartlett MBA, Sherry
Atchison MSW, John Roper BS.
 Architecture, Alan Carr AIA, Christian & Associates
 Engineering, Alan Carr AIA
 Financing, Linda Alvarez MBA, Terry Mount, Southern Community Builders (Tax
Credit Consultant)
 Property Management, Volunteers of America Southeast, see Section E above
 Resident Services, Volunteers of America Southeast, Inc.

VOASE References
a. Terry Mount, Development Services Inc., 210 Lenwood Road SE, Decatur, AL
35603, 256-306-0666
b. Cindy Yarbrough, U.S. Department of HUD, Alabama State office, 950 22nd Street
North, Suite 900, Birmingham, AL 35203; 205-731-2630

4. MLK Area Redevelopment Corporation (MLK ARC)

MLK ARC is a 501(c)(3) and registered CHDO. Michael Pierce is the Executive
Director of MLK ARC. He is assisted by a Housing/Administrative Assistant and a
volunteer Board of Directors. Mr. Pierce, working with his Board of Directors and area
contractors, will fulfill the requirements of this grant.

MLK ARC References

a. Tyrone Fenderson, Commonwealth Bank, 2214 St. Stephens Road, Mobile, AL
36617, 251-476-5938; fax 251-476-5946
b. Stephen Kohrman, Mobile Housing Board, 151 S Claiborne St, Mobile - (251)
434-2200

5. Housing First

Housing First has employed a Housing Developer/Manager, Fred South, who is also a
licensed contractor. Mr. South had ten years’ experience as a private housing contractor
prior to becoming the developer/manager for the Housing Now program. He has seven
months’ experience managing transitional housing for Housing First and is currently
implementing NSP I sub-grantee contract obligations with the City of Mobile.

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 Dan A. Williams is the Executive Director and Chief Professional Officer (CPO) for
Housing First. He is also the Administrator for the Job Train and Housing Now programs
and includes corporate, legal and fiduciary responsibilities for all related activities including
NSP1. Mr. Williams has a master of social work degree from Tulane University and has
forty years’ profession experience that includes thirty-one years in community development
and program administration. Over the past ten years, he has secured and administered $23.5
million in federal and foundation grants to address homelessness in Mobile and Baldwin
Counties, Alabama. The grant portfolio for 2009 is $5.5 million and includes, in addition to
HUD homeless grants, NSP I and Homeless Prevention and Rapid Re-Housing Program
(HPRP) / Recovery Act funds through the City and County of Mobile.

Housing First References

a. Larry Moons, ProInvestment Solutions, 6000 Grelot Road, Mobile, AL 36695,
251.343-8483
b. Vanessa Shoots, Attorney at Law, 605 St. Francis Street, Mobile, AL 36602,
251.432.8343

6. Bay Area Womens Coalition (BAWC)

Leevones Dubose, a retired educator, is the Director of BAWC and manages its staff.
Chuck Stefan and Donald Denham, employed by the Mitchell Company, are her consultants
and project managers.

BAWC References
a. Chuck Stefan, Senior VP The Mitchell Company; The Mitchell Company ; P.O. Box
160306, Mobile, Al 36616; 251-345-1247(office); 251-510-5785(cell)
b. Merceria Ludgood, Mobile County Commissioner, District #1, 205 Government
Street, Mobile, Alabama 36644

7. Mobile Historic Development Commission (MHDC)

The MHDC is directed by an Executive Committee. The Mobile Historic Development

Commission oversees the operations of two preservation revolving funds: Restore Mobile
and the Oakleigh Venture Revolving Fund. Both funds are operated by self governing
committees which can react quickly to changing market conditions. It is through the funds
that the Commission has successfully preserved over 40 buildings. Staff members at the
commission manage projects and oversee the acquisition of the properties.

MHDC References
a. Frank White, 468 South Perry Street, P. O. Box 300900, Montgomery, AL
36130-0900, 334-230-2690
b. Ann S. Bedsole, Sybil Smith Charitable Trust, 6 St. Joseph St., Mobile, AL
36602, 251-432-0208
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8. Center for Fair Housing

The Center for Fair Housing is a non-profit corporation with a Board of Directors and
Executive Director, Theresa Bettis. Ms. Bettis together with her counseling staff
performs the day to day operations and works with the clients.

Center for Fair Housing References

a. Shirley A. Sessions, Vice President, Community Affairs Manager, Regions Bank
11 North Water Street, 27th Floor, Mobile, AL 36602, (251) 434 3162 (Office )
b. Courtney Rouse, Habitat for Humanity, PO Box 16422, Mobile, AL 36616
251-476-7171

FACTOR 3: SOUNDNESS OF APPROACH (45 POINTS)

a. Proposed Activities (15 points)

(1) Overall Program

As a historic city, Mobile has experienced significant abandonment of the inner city
neighborhoods over time. In addition, within our Target Neighborhoods, in order to
eradicate blight, many structures have been foreclosed on taxes and/or demolished due to
blight. As a recipient of NSP2 funds, in conjunction with the Alabama Land Bank Authority,
the City of Mobile and its Consortium Members intends to focus on the rehabilitation or
redevelopment of tax-foreclosed properties.

The NSP2 Target Neighborhoods are traditional in nature. These Neighborhoods

feature old growth landscape and solidly constructed homes with materials that should be
maintained and preserved. As such, they embody many of the principles that sustainable
communities seek to emulate. The neighborhoods are near downtown Mobile. Their
location affords potential homeowners proximity to 1) employment centers; 2) higher
education opportunities; 3) social services and 4) public transportation. Stabilization efforts
in these neighborhoods provide an excellent opportunity for the redevelopment of
affordable housing that can also be green and energy-efficient. Finally, the City of Mobile
sees this as an excellent opportunity to promote sustainable growth principles and bring
density back to its inner city, thereby, offsetting sprawl.

The City’s NSP2 application expands existing affordable housing creation and
rehabilitation efforts in these Neighborhoods. The Consortium Members include local non-
profits with proven track records in housing development. All three Target Neighborhoods
are identified within the City of Mobile’s Consolidated Plan as areas of greatest need. Prior
to the creation of the Alabama Land Bank Authority, tax-foreclosed properties were
unavailable for rehabilitation and redevelopment. The presence of these abandoned

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properties has created an obstacle to the CHDO’s success, despite on going efforts to
provide affordable housing.

(2) Uses of funds and firm commitments – NSP2 Budget

NSP Eligible Use NSP Funds Other Funds Responsible Entity

Land Banking -0- $2500 per property Alabama Land Bank
(approx $300,000) Authority; City of Mobile
Acquisition $1,686,000
Demolition $140,000
Relocation $55,000

Rehabilitation $5,870,000 $650,000 Mobile Community Action

($6500 per house:
WAP Funds)

$717,902 (CDBG) Mobile Housing Board

Redevelopment $11,470,000 $6,600,000 (Hope Mobile Housing Board
VI)
$92,940 (CDBG)

Counseling $170,145

Financing $2,100,000

Other: Property $160,000

Management
Other: Professional $250,000 $70,643 Auburn University
Services $50,000 Alagasco
(a/e and legal)
Subtotal $21,901,145

Administration $2,190,114

TOTAL $24,091,259 $8,481,485

(b) Briefly describe the proposed activities in a narrative:

Activity I: Land Banking

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 The City of Mobile, in conjunction with the Alabama Land Bank Authority will
continue to work with the NSP2 sub recipients to identify eligible tax foreclosed property
for the purposes of rehabilitation and/or new construction, utilizing NSP2 funds. The City
of Mobile Land Bank is currently holding sixteen properties that two of our consortium
members (MLK ARC and BAWC) have already identified for redevelopment. The City of
Mobile Land Bank, together with the Alabama Land Bank Authority will acquire tax-
foreclosed properties, maintain them, and perform legal costs to the potential purchases of
the property for a limited cost of $1000 per property. In other words, transactional costs for
the acquisition of the property will be paid from the NSP2 grant to either the City of Mobile
Land Bank or the Alabama Land Bank Authority based on how many properties the sub-
recipients purchase from either Land Bank. Neither the City of Mobile Land Bank nor the
Alabama Land Bank Authority are officially asking for administrative costs from this grant
or to be considered as a sub recipient, thus they are only identified as potential partners, not
consortium members.

Activity II: Acquisition

Members of the Consortium will acquire bank-foreclosed properties by working with

1) real estate agents; 2) correspondence with local and national lenders; 3) discounted bulk
purchases from HUD, Fannie Mae or Freddie Mac. The City of Mobile NSP Project
Manager will assist Consortium members with identifying and negotiating with HUD,
Fannie Mae or Freddie Mac for bulk purchases. The NSP Grant Manager will continue to
forge relationships with local lenders in order to access information regarding foreclosed
properties. The City believes centralizing this coordination will facilitate several of the
Consortium Members working within one target neighborhood. Likewise, under NSP I, the
NSP Grant Manager has operated as a resource to its sub recipients by identify properties
within one target neighborhood.

Members of the Consortium will acquire tax-foreclosed properties from the

Alabama Land Bank Authority specifically within the targeted neighborhoods. As
demonstrated by the attached maps, the City of Mobile GIS department, in collaboration
with the Alabama Land Bank Authority and the NSP Grant Manager, tracts these properties.
The City has determined which parcels are vacant, as well as which parcels contain
structures. The NSP Grant Manager provides a much needed resource to the sub recipients
as they seek to identify these properties and choose where to concentrate their efforts within
their respective neighborhoods.

The City anticipates the acquisition of approximately 156 residential parcels. The
funds requested for this activity total $1,686,000.

Activity III: Demolition

The City of Mobile’s NSP2 consortium members do not anticipate allocating more
than 5% of the NSP2 grant to demolition, well below the 10% threshold. Our goal is to
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preserve the existing building stock, rather than demolish. Consortium Members will only
demolish structures incapable of rehabilitation if those properties are critical infill required
for stabilization purposes. In addition, many of the tax-foreclosed properties do not have
buildings. The Mobile Housing Board, has identified two four-plex multi-family structures
for demolition. The City has allocated $40,000 for this demolition. The City has allocated an
additional $100,000 for demolition as necessary (this amount assumes $2500 per demolition).
This totals $140,000.

Activity IV: Relocation

Relocation is a minor activity. The funds requested for this activity total $55,000.

Activity V: Rehabilitation

Members will rehabilitate structures up to City Code standards, using energy-efficient

and green building techniques. Costs will be contained so that housing will be affordable to
low-moderate income buyers or renter

The City anticipates the rehabilitation of 70 foreclosed properties. Due to the large
number of vacant lots within Trinity Gardens and the Bottom/ Campground, most of the
rehabilitations will occur in Oakdale/Maysville. The City anticipates rehabilitating 40-50
bank-foreclosed properties in this Neighborhood. Ten to twenty properties in the
Bottom/Campground have been identified for redevelopment. Given the foreclosure rate in
Trinity Gardens, the City anticipates the redevelopment of 10 bank-foreclosed properties
within Trinity Gardens.

Housing First has formed a partnership with Bishop State Technical College. See
attached letter in Appendix IV. The partnership will concentrate on placing homeless
citizens and those at-risk of becoming homeless who are evaluated as able and in need of
income enrolled in a contingency jobs program. On the job training will be available on
rehabilitation projects as part of the building trades certification programs at Bishop. All
enrollees would agree to ‘work-related evaluation’ for education and training programs that
would lead to income stability and self-sufficiency.

The funds requested for this activity total $5,870,000, an average of $83,857 per
unit.

Activity V: Redevelopment

The Consortium members propose to redevelop vacant and abandoned properties.

The City anticipates the construction of 86 new housing units.

Specifically, the MHB proposes the redevelopment of 30 new single family homes
within the Bottom /Campground. Thirty homes will be constructed near the HOPE VI site
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and their design has already been completed. The homes will range in size from 1,375 to
1,627 square feet. Construction costs range from approximately $145,000 to $155,000. All
units will be single-family homes and include the following design features: spacious, open
floor plans, two full bathrooms, energy efficient appliances, private driveways, porches and
private yards.

In addition to the MHB’s projects, MLK ARC, VOASE and MHDC will be
identifying parcels for redevelopment within Bottom/ Campground. These Consortium
Members will collaborate with Auburn University to design sustainable homes for targeted
sections of this Neighborhood.

BAWC will undertake the redevelopment of ten parcels within Trinity Gardens.

Housing First, MHDC and VOASE will work with Auburn University to design
appropriate in fill construction for 25 lots within Oakdale/Maysville

Total funds requested for these activities equals $11,470,000, or an average of

$134,000 per unit.

Activity VI: Counseling

The following Consortium Members: Center for Fair Housing, BAWC and MHB will
provide HUD qualified homeownership counseling. The Consortium Members have
determined 16 hours of counseling is necessary, rather than the eight hours required. In
addition, the City of Mobile also intends to work with the Center for Fair Housing, Bishop
State, Auburn University and the Mobile Historic Development Commission in creating a
homeownership certificate workshop relating to the maintenance and of care of owning
home. This workshop will be required, in addition to the counseling, for each and every
single family participant

Funds requested for these activities total: $170,145.

Activity VII: Financing

Soft second mortgages in the amount of $20,000 will be made available to eligible
homebuyers. The soft seconds will have 10 year tenure, with a forgiveness rate of 10% per
year. The City anticipates the following range of interest rates for our buyers: 5.0 – 6.5%.
The City anticipates down payment assistance and closing costs to be subsidized at $2000
per property. The City is requesting funds for a 100 soft seconds and 50 subsidized closings.
Total funding requested equals $2,100,000.

Activity VII: Other

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 Approximately, 33% of the funded properties will be lease-purchase or rental
properties. Soft seconds have not been requested to subsidize this housing. The City
requests assistance for property management services in the amount of $130,000. In order to
comply with the sustainability initiatives and incorporate green technologies, the City
requests $250,000 to cover professional services, including architectural and engineering
services.

(c) Identify whether the other funds are firmly committed (legally obligated to
a specific activity or under your control and budgeted for a specific activity) or
not.

The Target Neighborhoods have been identified as areas of greatest need within the City’s
Consolidated Plan. The following funds are legally obligated to projects within these Target
Neighborhoods:

Existing Efforts: Bottom / Campground

 MHB’s Hope VI Downtown Renaissance Project: $6.6 million HOME/CDBG funds
 MLK ARC redevelopment of scattered site affordable homes
o Recipient of FY08-09 CDBG and HOME funds: $75,000
o Recipient of FY07-08 CDBG/HOME funds: $412,500

Existing Efforts: Oakdale / Maysville

 FY08-09 CDBG funds allocated for a neighborhood revolving fund: $500,000
 NSP I funds are allocated for this area: $900,000

Existing Efforts: Trinity Gardens

 BAWC redevelopment of scattered site affordable homes
1. Recipient of FY08-09 CDBG funds: $286,842
2. Recipient of FY07-08 HUD funds totaled: $206,700
 NSP I funds are allocated for this area: $450,000

The above funds are controlled by the City of Mobile. The funds are legally-obligated for
CDBG-eligible activities within the specified target areas. Weatherization Assistance
Program funds are eligible to be used in concert with NSP funds. Maximum funds per
house are $6500. The City intends to work with Mobile Community Action to access these
funds for a 100 units. Mobile Community Action is the area sub-recipient to the State’s
WAP entitlement.

(d) Demolition and preservation.

Not applicable. The City of Mobile does not anticipate any large scale demolition
activities.

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b. Project completion schedule. (5 points)

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NSP Activity Beginning 1st Milestone: 12 2nd Milestone 18 3rd Milestone: 24 End Date
Date months out months out months out
Acquisition 0-24 months 55 properties 90 135 24-30 months
(156)
Demolition 0-180 days 15 N/A 30 12 months
(30+/-)
Rehabilitation 0-60 days 25 properties 45 60 30-36 months
(70) complete
Redevelopment 30-90 days 20 28 55 32 months
(86)
Counseling 30-90 days 25 families every 30 months
(225+/- clients) 120 days
Land Banking Ongoing Ongoing
Financing (100) 60 days from 32 months
date of
contract

Administration Ongoing

c. Income targeting for 120 percent and 50 percent of median (5 points)

On average, 85% of the population of the Target Neighborhoods population is at or

below 120% AMI. As such, it is not difficult to find potential homeowners below the 120%
AMI threshold. In addition, the Consortium Members have ties to the area communities.
These ties provide them with ample opportunity to identify families within the income
target.
The rent limits for the City of Mobile are set as follows:

2009 HOME RENT LIMITS for Mobile, Alabama

2
PROGRAM EFFICIENCY 1 BR BR 3BR 4BR 5BR 6BR

LOW HOME RENT

LIMIT 433 464 557 643 717 791 866
HIGH HOME RENT
LIMIT 544 584 671 804 876 949 1021
For Information Only:
FAIR MARKET RENT 556 595 671 879 1037 1193 1348
50% RENT LIMIT 433 464 557 643 717 791 866
65% RENT LIMIT 544 584 703 804 876 949 1021

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 Our partners offer lease/purchase financing options, rent subsidies for those in need
of transitional housing, financing through partnership banks for buyers with good credit and
soft second mortgages for those who need supplemental help. The Consortium Members
will create affordable housing which remains affordable over time by implementing the
following programs:
 Accessing Weatherization Assistance Program funds for rehabilitation
projects, which will defray up to $6500 of the costs;
 Creating energy efficient projects, which will decrease energy costs for the
homeowner;
 Ensuring access to maintenance grants and offering education and training on
home maintenance.

Several Consortium Members, including but not limited to, the MHB, MLK ARC
and BAWC will be implementing lease-to-purchase programs. These programs are
specifically geared for families with minimal credit challenges who are interested in home
ownership. A majority of these families fall below the 50% AMI threshold. Of the units
proposed, 25% of these will be available for lease-purchase.

In addition, Housing First has submitted a proposal for transitional housing. This
housing will specifically for working individuals or families transitioning from homelessness.
Housing First will cap rents at 30% of the participant’s demonstrated income, regardless of
what the fair market rent should be. Thus, an occupant’s rent is dictated by their own
income, not the cost of the project.

Given the above, the City certifies 25%of the grant (and potentially much more) will
be used to house individuals or families whose incomes do not exceed 50%.

d. Continued affordability (5 points)

The City of Mobile adopts the HOME program standards found at 24 CFR 92.252.
All NSP-2 assisted properties will be designated as such and affordability covenants will run
with the property. Sale proceeds will be required to be shared with the City if the original
purchaser sells within the first 10 years.

e. Consultation, outreach, communications (5 points)

(1) Describe how you have consulted with units of local government and states
with jurisdiction over your target geography, especially those that received
NSP1 funding.

The City has been in steady contact with the Alabama Department of Economic and
Community Affairs (ADECA), the state agency through which its NSP1 grant was awarded.
ADECA provided us advice and direction for the preparation of this Application and will
continue to be a resource during its implementation. In addition, the City of Mobile has
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been in constant communication with the Acting Director of the Alabama Land Bank
Authority, which will be housed in ADECA, to discuss the Authority’s role in conveying tax
foreclosure properties to our Consortium Members. We will be working closely with the
Authority to identify and process individual parcels in our Target Neighborhoods. We have
also communicated with the Alabama Land Commissioner who will transfer title to the
Authority for land banking purposes. We do not anticipate further communication with the
Land Commissioner, given that the Authority will assume this responsibility.

(2) Describe your proposed outreach and affirmative marketing actions and
how you will ensure that you have qualified families available as NSP2-
assisted units become available.

Our Consortium Members are experienced in working with their clients to identify
credit issues, income qualifications, and housing needs (both transitional and permanent) to
make sure that qualified families know about the availability and affordability of NSP2
housing. In addition, the CHDOs operate in minority neighborhoods which have suffered
from disinvestment for several decades. Marketing efforts to expand the outreach to
underserved groups would include advertising in newspapers and publications that have a
predominately white readership. A few local examples include The Mobile Press, The
Citronelle Call, and Lagniappe. Additionally, several community organizations have been
identified and contacted to obtain referrals of currently underserved groups. Volunteers of
America, Dumas Wesley Community Center, and Catholic Social Services are just a few of
the organizations which will assist in our efforts to find potential homeowners.

In order to maximize stability efforts, the Consortium Members will be required to

seek community collaboration from the outset. The Consortium Members, together with
private or other non-profit partners and the City of Mobile, will be required to hold a
community meeting prior to the acquisition of new parcels of properties. These will include
a cross section of the community and will include potential residents, social service
providers, government officials and business persons. This community meeting will be held
to solicit community input on where, precisely, within the specific neighborhood, the
residents would like to see the stabilization efforts targeted. Community members will
provide valuable information on what the community values, as well as problem areas.

During the project development phase, will conduct at least two community meetings
in each Target Neighborhood to gauge interest and feedback on sustainability plans,
proposed design and services needed. Once the acquisition of properties is underway, this
second meeting will revolve around the sustainability initiatives and design process for both
new and existing buildings. Once preliminary plans are completed, Consortium Members
will hold at least one focus group to acquire feedback and any desired changes and amenities.

(3) Describe how you will continually communicate program design, progress,
opportunities and results; process any complaints in a timely manner (respond
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 within 15 working days, if feasible); and ensure that local citizens and other
interested parties are informed about program policies.

The City of Mobile will construct a website for NSP2 related activities, including
photo documentation. The NSP2 Grant Manager will be responsible for making sure
information on this website is updated and informative. An email address will be provided
for comments and suggestions. In addition, the NSP2 Grant Manager will solicit complaints
and questions through the City’s established 311 telephone hotline. (By calling 311, anyone
can lodge a complaint or ask a question, and the City’s goal is to investigate within 72 hours).
We also anticipate that our Consortium project managers will be onsite frequently, if not
daily, and will be prepared to respond to anyone with questions, issued in person or by
telephone, about the ongoing project.

f. Performance and monitoring (10 points)

The City of Mobile will monitor the NSP2 grant through its internal audit
department. The City’s internal auditor, Celia Sapp, will be authorized, under the terms of
the contracts with the sub recipients, to examine any and all program expenditures
associated with the grant on a quarterly basis and issue quarterly reports on the results
thereof, including identification of risky management practices and ineffective internal
controls and recommendations for improving the same. Ms. Sapp with coordinate her audits
with Don McKnight, NSP Grant Manager.

Our Consortium Members have identified the following professionals who will
monitor individual projects: MHB’s internal auditor is Marci Zajac; Housing First, Inc.’s
consulting accountant is Ray Hunter, CPA, and its independent auditor is Kim Enikieiff,
CPA, conducts the annual review and single audit as required by federal regulations; MLK
ARC’s CPA is Matt Lursen with Smith, Dukes & Buckalew; BAWC’s accountant will be an
employee of the Mitchell Company.

FACTOR 4: LEVERAGING OTHER FUNDS, OR REMOVAL OF

SUBSTANTIAL NEGATIVE EFFECTS (10 POINTS)

a. Leverage

The Auburn School of Architecture will be providing design assistance for several
prototypes for energy efficient, single family homes, suitable for infill in these historic
districts or traditional neighborhoods. Auburn will also be present at the community
meetings to gauge what designs will be acceptable to potential residents. Additionally,
Auburn’s landscape architecture professors and students will provide services for sustainable
community planning and site design. The total in kind contribution is $70,643.

The City of Mobile and the Alabama Land Bank Authority will be providing in house
legal work to aid consortium members as they identify and seek tax foreclosed properties.
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 Alagasco has promised Consortium Member BAWC free gas hook ups to new
homes. The total in-kind contribution is $50,000.

b. Removal of Negative Effects.

Consortium members intend to purchase tax-foreclosed and nuisance

properties. Currently, there are 405 tax-foreclosed properties within the Target
Neighborhoods. Of these, 27 are City-Council declared nuisances. However, this number is
not representative of the true extent of the blight in our Target Neighborhoods because
Mobile’s code enforcement is complaint driven. Code enforcement officers only investigate
and cite those properties which are called into the 311 system. Many, many properties are
not called in. We will survey our Target Neighborhoods and identify all potential
acquisitions. Given the information we have, we have calculated the rubric is as follows:

The table below illustrates the number of vacant properties as compared to

residential parcels within our Target Neighborhoods.

Target Neighborhood Total Vacant Vacancy Tax Tax

Parcels Rate Foreclosed Foreclosed &
(unimproved) Vacant
(unimproved)
parcels

Bottom/Campground 293 19.15% 191 52

Oakdale/ Maysville 187 12% 148 66
Trinity Gardens 195 14.76% 66 49
Totals 675 405 137

Consortium Members have determined that 70 vacant properties can be acquired and
rehabilitated. Eighty-six vacant, unimproved tax-foreclosed lots will be acquired, requiring
new construction.

Thus 1.5(70) + 86 or 191/675 = 28% of vacant properties

Please note the high level of vacancy rates in our targeted neighborhoods.

See Appendix II for documentation of factors (a) and (b) above.

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FACTOR 5: ENERGY EFFICIENCY IMPROVEMENT AND SUSTAINABLE
DEVELOPMENT FACTORS (10 POINTS)

Describe how you will incorporate specific energy efficient, environmentally friendly or
other sustainable or green elements in some or all of your NSP2 activities.

a. Transit accessibility.

As demonstrated by the map below, all of target areas are accessible by city bus. The
City of Mobile does not have subways or light rail. However, the neighborhoods are in close
proximity to downtown Mobile, which is the employment hub of the area.

b. Green building standards.

The City will require its consortium members to comply with the Alabama
Homebuilders Association Green Energy Key program. Plans for new construction will
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be drafted to these standards. Alabama’s Green Energy Key program exceeds the Energy
Star standard and is HERS accredited. The program was developed in collaboration with the
Southface Energy Institute. The Energy Key standard can be found at:
http://energykeyhome.com/.

Rehabilitation projects will comply with the Energy Star standard. Within historic
districts, historic regulations may hinder the consortium member’s ability to comply with the
Energy Key program when renovating a structure. Furthermore, funding assistance from
the Weatherization Assistance Program will be secured for rehabilitation projects, thereby
decreasing the costs to the potential homeowner.

As necessary, energy audits will be performed to ensure compliance with this policy.

c. Re-use of cleared sites.

As discussed in the activity narrative section, the City of Mobile anticipated minimal
demolition activities given the pre-existing number of vacant lots within these targeted
neighborhoods. The City certifies that the one site (a multi-family structure) which the MHB
has identified for demolition will be redeveloped into single family homes within the grant
period. MHB has completed plans for these homes and does not anticipate any hindrances
to moving forward.

In the chance that a vacant and abandoned property will have to be demolished
because of its highly deteriorated state, the City further certifies that the parcel will be
redeveloped into a single-family home.

d. Deconstruction.

The City of Mobile does not anticipate any significant demolition activities; however,
the City will strongly encourage the salvaging of materials if demolition is unavoidable.
Salvaged materials will be stored and processed by one of our MHDC Revolving Funds,
which operates a warehouse for salvaged building materials. These materials will be recycled
by other Consortium Members or stored for future use and made available to nonprofits.

e. Other sustainable development practices.

The Auburn School of Landscape Architecture has committed to working with the
City of Mobile to ensure that site planning for these projects, particularly in the
Campground/ Bottom neighborhood, will utilize low impact development techniques. The
Campground/ Bottom neighborhood is part of an impaired watershed. Funding is being
sought from the Alabama Department of Environmental Management to implement best
practices for water quality management in this area.

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 Specifically, Auburn proposes developing site plans that will control erosion and
minimize soil compaction by planning access and parking down yard of construction site;
save all native topsoil that is removed to be reused on site; provide protective fencing for
native trees saved on site; remove invasive plant species; minimize paving and impervious
surfaces to alleviate the amount of stormwater entering the storm sewer system; manage
stormwater at the lot level to maximize water infiltration and protect adjacent streams;
minimize tree removal & plant “native” trees that will provide summer shade for the house
and streets.
In regards to water efficiency, Auburn proposes collecting rainwater from roofs and
transfer to rain barrel and/or cistern systems for possible irrigation use or use for flushing
water closets (toilets); and, collecting gray water from lavatories/ showers and laundry for
reuse in irrigation systems.

In addition, Auburn University is already collaborating with the City of Mobile for
the development of innovative planning and design techniques addressing issues related to
the challenge of stormwater management within the highly urbanized core of Downtown
Mobile while also encouraging aesthetic enhancement by engaging “Green Streets”
methodologies pioneered by the City of Portland, Oregon. The intent is to develop leading-
edge methodologies that serve multiple benefits to the City of Mobile in terms of:
 Cost Savings: regarding maintenance and systems for stormwater management
Environmental Sustainability: rainwater capture and reuse
 Flood Mitigation and Resiliency: following peak rainfall events typical to Mobile
 “Green Streets” concepts for Downtown Mobile: impacting desirability markers that
enhance tourism, and residential occupancy
 Publication of the Project as a best practices framework benefitting coastal cities
across the United States while promoting the City of Mobile for its leading-edge
vision.

FACTOR 6: NEIGHBORHOOD TRANSFORMATION AND ECONOMIC

OPPORTUNITY (5 POINTS)

The City of Mobile and its Consortium Members certify that the foregoing NSP2
strategy is in concert with the City of Mobile Consolidated Plan and the New Plan for
Mobile, which focuses on economic revitalization and sustainable development within
Mobile’s traditional, inner-city neighborhoods.

The City of Mobile New Plan can be found at:

http://newmobileplan.com/newsDetail.php?detail=1&cat=General&news_id=105

The New Plan for Mobile was commissioned as an update to its 1996 master plan
just before the current U.S. housing crisis and recession. At the heart of that plan is the key
role that Mobile’s downtown and adjacent, older residential neighborhoods must play in
order for Mobile’s economic strategies to prevail. After extensive analysis, the authors of
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the New Plan concluded that 1) substandard housing in need of rehabilitation and 2) vacant,
abandoned and empty lots were a chronic, insidious and major stumbling block to Mobile’s
plans to attract business and industry.

This conclusion was reached before the recent economic down turn, which has increased
the number of abandoned, vacant properties beyond those noted in the Plan’s surveys. The
City now has an added sense of urgency to quickly acquire, rehabilitate and convey problem
properties where they are concentrated – as identified in the new strategic plan and in this
application as our Target Neighborhoods. The City will use NSP2 funds to make changes to
these neighborhoods that are immediately apparent and dramatic, drawing back the
families who left them and enticing new residents who want affordable homes near their
jobs and local commercial centers. We intend to help jumpstart our economy, suffering
from revenue shortfalls, by stimulating local housing and related industries. Success builds
success.

The New Plan’s Priority and Secondary Initiatives for the Bottom/ Campground
Neighborhoods can be seen in the below illustration. The third and fourth priorities are
Neighborhood Revitalization. The City of Mobile’s NSP2 strategy addresses and works in
concert with this initiative. See the map below. For better viewing of the map below, visit:
http://newmobileplan.com/newsDetail.php?detail=1&cat=General&news_id=105.

The New Plan’s Priority and Secondary Initiatives for the Oakdale / Maysville
Neighborhoods can be seen in the below illustration. The third priority is the creation of a
conservation district and neighborhood revitaliv zation within Oakdale/Maysville. The City
of Mobile’s NSP2 strategy addresses and works in concert with this initiative.

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 Finally, Trinity Gardens, as well as Oakdale/Maysville and Bottom/Campground are
listed as neighborhood identified for affordable housing within the City of Mobile’s 2009
HUD Action Plan/ Consolidated Plan. In addition, all Consortium Partners are recognized
within the Consolidated Plan. For instance, the Affordable Homes initiative, reads as
follows: “The City supports new housing construction under a partnership with Community
Housing Development Organizations (CHDOs) such as the MLK Avenue Redevelopment
Corporation, Inc, and Bay Area Women Coalition, Inc. The Housing Board will continue its
program of new home construction with an emphasis on sales to public housing residents.
Both programs utilize local bank participation in supplying first mortgage money.”

The City of Mobile’s 2009 HUD Action Plan / Consolidated Plan is located at:
http://www.cityofmobile.org/announcement_files/20092010_actionplan.pdf

The City of Mobile’s 2008 HUD Action Plan / Consolidated Plan is located at:
http://cityofmobile.org/pdf/FinalConPLan_08.pdf

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