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Date
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August 24, 2009
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Agenda
Item No. 31 Roll
Call No. 09-
Communication No.
09-599 Submitted by: Larry Hulse, Community Development
Director |
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AGENDA
HEADING:
Approve forms of agreements and support documents for
the Community Development Neighborhood Conservation Services Division
Neighborhood Stabilization Program (NSP).
SYNOPSIS:
The
Neighborhood Conservation Services (NCS) Division of the Community Development
Department administers numerous housing programs funded by the City's Home
Investment Partnerships (HOME) and Community Development Block Grant (CDBG)
entitlement funds. Along with these
programs, the NCS Division will administer the NSP.
Community
Development Department staff has prepared updated drafts of the contracts and security exhibits that have been previously utilized and
approved for the HOME and CDBG program and have modified them for use with the
NSP. This Council action will approve the form of these documents to be
utilized for the daily operations of this program.
FISCAL
IMPACT: NONE
Amount: N/A
Funding Source: N/A
ADDITIONAL
INFORMATION:
At the June 8th, 2009 meeting, the City
Council approved the contract with the Iowa Department of Economic Development
to allocate $3.9 million of Neighborhood Stabilization Funds (Roll Call No.
09-996). The plan calls for the City to
work with a coalition of housing agencies to purchase and redevelop
approximately 90 foreclosed and abandoned housing units over the next four
years. The coalition of housing agencies
purchasing foreclosed properties currently includes: Greater Des Moines Habitat
for Humanity, Community Housing Development Corporation, Home Opportunities
Made Easy Inc., (HOME Inc.), and the Neighborhood Finance Corporation. The coalition also includes the following for
profit construction companies; Double D Construction, MJM Homes, and JRW &
Associates.
The
NSP has very specific regulatory requirements for the use of these funds.
Specifically, all properties must be purchased at a maximum of 99% of their
current appraised value. The income
limit for the NSP is 120% Area Median Income (AMI), while other U.S. Department
of Housing and Urban Development Programs (HUD) cap income at 80% AMI. NSP funds can only be used in the approved
project area, and 26% of all funds must be allocated for individuals who earn
less than 50% AMI.
Because
of these unique regulations, it is necessary to create new program
documents. This action will approve all
standard documentation required for the implementation of this program, which
has incorporated changes necessary to conform to changes in the HUD and NSP guidelines,
as well as NCS standard operating procedures. This action will be completed
yearly to ensure an annual review of all standard documentation by the legal
department staff, as well as incorporate statutory changes as required by HUD.
PREVIOUS
COUNCIL ACTION(S):
Date:
June 8, 2009
Roll Call Number: 09-997
Action: Memoranda of
Understanding with designated local housing agencies to implement the
Neighborhood Stabilization Program. (Council Communication No. 09-386) Moved by Vlassis to
adopt. Motion Carried 7-0.
Date:
June 8, 2009
Roll Call Number: 09-996
Action: Neighborhood
Stabilization Program Contract with the Iowa Department of Economic Development
(IDED).
Moved by Vlassis to adopt. Motion Carried 7-0.
Date:
February 23, 2009
Roll Call Number: 09-341
Action: On the City’s
plan to spend CDBG Neighborhood Stabilization Program Funds. (Council Communication No. 09-105) Moved by Coleman to
adopt. Motion carried 7-0.
BOARD/COMMISSION
ACTION(S): NONE
ANTICIPATED
ACTIONS AND FUTURE COMMITMENTS: NONE
For more information on this and other agenda items,
please call the City Clerk’s Office at 515-283-4209 or visit the Clerk’s Office
on the second floor of City Hall, 400 Robert D. Ray Drive. Council agendas are available to the public
at the City Clerk’s Office on Thursday afternoon preceding Monday’s Council
meeting. Citizens can also request to receive meeting notices and agendas by
email by calling the Clerk’s Office or sending their request via email to
cityclerk@dmgov.org.