HomeMy Public PortalAbout09-7484 Neighborhood Stabilization Program 2 Grant Sponsored by: City Manager
RESOLUTION NO. 0 9-7 4 8 4
A RESOLUTION OF THE CITY COMMISSION OF THE
CITY OF OPA-LOCKA, FLORIDA, AUTHORIZING THE
CITY MANAGER TO APPLY FOR A NEIGHBORHOOD
STABILIZATION PROGRAM 2 GRANT WITH THE
UNITED STATES DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT (HUD)
WHEREAS, the City of Opa-locka("City")has been facing an increasing number of
homes entering foreclosure; and
WHEREAS,under Title III of the Housing and Economic Recovery Act of 2009, the
Neighborhood Stabilization Program offers targeted emergency assistance to state and local
governments so that they can acquire, redevelop and re-sell foreclosed properties that might
otherwise become sources of abandonment and blight within their communities; and
WHEREAS,the City is eligible to participate in the United States Department of
Housing and Urban Development's Neighborhood Stabilization Program 2 ("NSP 2"); and
WHEREAS,the City Manager is requesting authorization from the City Commission of
the City of Opa-locka("City Commission") to submit an NSP 2 grant funding application to
HUD in order to address the foreclosure crisis within the City.
NOW,THEREFORE,BE IT DULY RESOLVED BY THE CITY COMMISSION
OF THE CITY OF OPA-LOCKA, FLORIDA:
Section 1. The recitals to the preamble are hereby incorporated by reference.
Section 2. The City Commission of the City of Opa-locka hereby authorizes the City
Manager to apply for a Neighborhood Stabilization Program 2 Grant with the United States
Resolution No. 0 9-7 4
Department of Housing and Urban Development in order to address the foreclosure crisis within
the City.
Section 3. This resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED this 2 4 day of JUNE , 2009.
JOSE' LLEY
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Attest: Approved as to form and legal su ficiency:
Deborah S. Irby Burnadette Norris-Weeks
City Clerk City Attorney
Moved by: JOHNSON
Seconded by: HOLMES
Commission Vote: 5-0
Commissioner Holmes: YES
Commissioner Johnson: YES
Commissioner Tydus: YES
Vice-Mayor Taylor: YES
Mayor Kelley: YES
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Memorandum
TO: Mayor Joseph L. Kelley
Vice Mayor Myra L. Taylor
Commissioner Timothy Holmes
Commissioner Dorothy Johnson
Commissioner Rose Tydus
FROM: Bryan K. Finnie,Interim City Manager
DATE: June 24,2009
RE: Resolution declaring intent to submit funding application to the U.S.
Department of Housing & Urban Development"Neighborhood Stabilization
Program 2"
Request: A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
OPA-LOCKA, FLORIDA, DIRECTING THE CITY MANAGER TO
SUBMIT A FUNDING APPLICATION TO THE U.S.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
NEIGHBORHOOD STABLIZATION PROGRAM 2.
Description: Authorized under Title III of the Housing and Economic Recovery Act of
2009, the Neighborhood Stabilization Program offers targeted emergency
assistance to state and local governments to acquire, redevelop, and re-sell
foreclosed properties that might otherwise become sources of
abandonment and blight within their communities. The City of Opa-locka
is eligible to participate under the U.S. Department of Housing and Urban
Development (HUD) Neighborhood Stabilization Program 2 (NSP 2),
therefore staff is requesting the City Commission to authorize the
submission of a funding application to address the foreclose crisis.
Financial Impact: Federal and County funds are requested to support this planning and future
program activity. The City will provide in-kind services in the form of
staff assistance.
Implementation Time Line: Three years after the receipt of NSP 2 HUD funding.
Legislative History: None
Recommendation(s): Staff is recommending the approval of the Resolution directing the
City Manager to submit a funding application to U.S. HUD
Neighborhood Stabilization Program 2.
Analysis:
Funds made available to the City of Opa-locka through the Neighborhood Stabilization Program
2 will be used to implement activities that meet eligible uses such as: (A) establish financing
mechanisms for purchase and redevelopment of foreclosed homes and residential properties,
including such mechanisms as soft-seconds, loan loss reserves, and shared-equity loans for low-
and moderate- income homebuyers; (B) purchase and rehabilitate homes and residential
properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such
homes and properties; (C) establish land banks for homes that have been foreclosed upon; (D)
demolish blighted structures; and (E) redevelop demolished or vacant properties. The
aforementioned activities will be performed under contractual agreements with qualified
residential developers and financial mortgage companies. Additionally, the City will work in a
collaborative partnership with HUD approved counseling agencies to meet the prescribed
requisite for housing counseling services to future homeowners.
The grant requires program funds to be targeted to neighborhoods with high foreclosure rates.
Additionally, the use of the NSP 2 funds must meet the low and moderate-income national
objective under the HUD Community Development Block Grant. The entire City of Opa-locka is
recognized by the HUD census tract information as having high foreclosure scores eligible for
the NSP 2 funding. Due to the sizeable volume of foreclosed properties, the City of Opa-locka
targeted approach will impact neighborhoods throughout the entire city. Our NSP 2 approach
will be used for maximum impact, giving emphasis to areas of greatest need. The NSP 2
activities will be implemented in five geographic zones which is now part of the City's
Neighborhood Improvement Plan. Each of those zones contains neighborhoods with high
foreclosure density areas meeting the criteria of"areas of greatest need".
ATTACHMENT(S): Copy of U.S. Department of Housing &Urban Development NSP
2 grant announcement summary
PREPARED BY: Octavien Spanner