With federal funding, Cobb County officials will build 90 affordable rental units for senior citizens at 50 percent or below area median income.
The proposed project will be called Legacy Heights Phase II at 190 Roberts Trail in Marietta.
Cole Street Development Corp. and Walton Community will develop these rental units for nearly $400,000.
The Cobb County Board of Commissioners amended on Sept. 24 Cobb’s Neighborhood Stabilization Program 3 Action Plan to expand target areas and undertake this redevelopment of vacant land.
In September 2010, the U.S. Department of Housing and Urban Development (HUD) awarded an additional $1 billion in funding for the Neighborhood Stabilization Program 3 (NSP3) that was established under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Under the allocation formula developed by HUD, Cobb received $2,415,784 to acquire and redevelop foreclosed single-family properties in high-foreclosure areas.
The core of Cobb’s NSP3 grant included acquiring, renovating and selling foreclosed property in HUD-specified target areas.
Through Cobb’s NSP3 grant, 26 units were acquired and renovated of which 18 were sold to NSP-eligible homebuyers and eight were maintained as rental for very low-income households at 50 percent or below area median income
A total of $4,314,452 in NSP3 grant and program income funds has been expended to date with only $397,644 in unexpended funding remaining, according to Cobb Community Development Director Jessica Guinn.
Cobb’s NSP3 program has not fully met the HUD NSP obligation to set aside 25 percent of NSP funds for housing for low-income households to successfully close out the program.
As such, Guinn said the Community Development Block Grant (CDBG) Program Office is recommending an amendment for the NSP3 grant to move toward closeout and spend the remaining funds of $397,644 by Nov. 30.
To meet this requirement, the CDBG Program Office is recommending an expansion of the current NSP3 target area by adding more census tract block groups in the NSP3 neighborhoods in Marietta.
The transfer of these funds is permitted under HUD guidelines, Guinn added.
There will be no impact to the county’s General Fund.
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