HomeMy WebLinkAboutRes 2010-48/574 - NSP Funding CITY OF PALM DESERT/PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: ADOPT CITY COUNCIL RESOLUTION N0. 2010-48AND AGENCY
RESOLUTION NO. 5�4 AUTHORIZING A REQUEST TO THE
CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY
DEVELOPMENT TO AMEND THE CONTRACT USE OF CALIFORNIA
NEIGHBORHOOD STABILIZATION PROGRAM (NSP) FUNDING AND
EXECUTION OF THE RELATED AGREEMENT AND ANY
AMENDMENTS THERETO
SUBMITTED BY: Janet Moore, Director of Housing
DATE: June 24, 2010
CONTENTS: Resolution No. 2010-48
Resolution No.574
Recommendation
That the City Council/Agency Board open the joint public hearing and following
testimony, take the following action:
Waive further reading and adopt:
1. Resolution No2010-48 a resolution of the City Council of the City of Palm
Desert authorizing a request to amend the contract use of California
Neighborhood Stabilization Program (NSP) funding and execution of the
relative agreement and any amendments thereto;
2. Resolution No. 574, a resolution of the Palm Desert Redevelopment Agency
authorizing a request to amend the contract use of California Neighborhood
Stabilization Program (NSP) funding and execution of the relative agreement
and any amendments thereto; and
3. Authorization for the City Manager/Executive Director or the Director of
Housing to sign Funds Requests and other required reporting forms.
Executive Summary
Approval of staff's recommendation will allow staff to submit its request for amendment to the
State to acquire abandoned or vacant foreclosed properties from the affected residential
property within the target areas pursuant to milestone requirements set forth by the Department
of Housing and Community Development's (HCD) Neighborhood Stabilization Program. Due to
a change in staff at HCD; the amendment, although originally not required, is now necessary to
ensure expenditures and efforts of the City to carry out the NSP program are eligible for
reimbursement.
Backqround
The City of Palm Desert, along with the County of Riverside, Cities of Coachella and Palm
Springs applied for Neighborhood Stabilization Program (NSP1) funding and was approved for
its share totaling $326,784. NSP1 can be used to acquire foreclosed properties in areas
Staff Report
Resolution No Zol�-�, nd 574 Neighborhood Stabilization Program Amendment
Page 2 of 2
June 24, 2010
showing the largest number of foreclosure activity in order to stabilize these neighborhoods.
The final approval and standard agreement from HCD were received on February 14, 2010.
Although funding is not required to be spent until June 30, 2011, the City is required to meet
immediate milestones. By June 30, 2010, the City must have obligated 100 percent of the
allocation. In order to be considered "obligated," a signed purchase contract must be delivered
to HCD.
While our program was designed to provide "financing mechanisms" to qualified buyers, HCD
provided an option for the City to secure the obligation by acquiring the foreclosed homes
directly, following the requirements set forth by the program, in anticipation of then selling them
to qualified buyers. This option did not initially require any additional formal adoption by the
governing board or State, per HCD staff. Over the past several months, the City Council has
approved three lists of properties located within the target areas for acquisition. Several offers
have been made and are currently in negotiations.
With a change in staff at HCD, the State has since determined that the change in activities must
be. noticed to the public and approved by the governing board in order to qualify for
reimbursement from NSP. The resolution provides for an amendment to the original activities
approved by the State in the Standard Agreement dated February 14, 2010. The resolution
does not guarantee reimbursement; however, permits the request to amend the agreement in
order to be reimbursed. HCD will not be able to provide any reimbursement until the contract
amendment is fully executed by State officials.
Staff recommends approval of Resolution No's.2010-48 and 574 in order to request an
amendment to the Standard Agreement and the originally planned NSP activities. The
amendment would provide the permission to use NSP funding to acquire foreclosed homes
within the designated target areas in order to assist with the stabilization of these
neighborhoods that have seen the greatest impact from foreclosures.
Fiscal Analvsis �
The immediate impact will be to the Acquisition, Rehabilitation, and Resale account in the �
Housing Set-Aside fund. However, if the amendment is approved, the monies spent to acquire �
properties up to $326,784, will be reimbursed from HCD's Neighborhood Stabilization Program �
grant. � � U
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Q�' � �
Submitted By: Department Head: � � U
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Jane Moo , Director of Housing stin McCarthy, ACM f evelopme �`s Q o
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COUNCILAC,T'ION z
Paul . Gibson, Director of Flnance APPROVED � DENiED ,.,,__,,.0 > O
ItECEIVED OTHER.dC�'���
Approval: f S l�c� ��oic•S�'u�x�l.5��{
MEETING DATE "�` • ��✓ �
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John M o muth, City Manager/Executi,���,r�qtor /����_ __ _+
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VCRIFIED BY: �`��� ����
G:\rda\Veronica Tapia\NSP ProgramlAcquisition Activity DocumentslSR-NS�r�g�na�'on�iYe wi�U�<.�� lerk's Office
RESOLUTION NO. Zoio-4s
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM DESERT, CALIFORNIA, AUTHORIZING A REQUEST
TO THE CALIFORNIA DEPARTMENT OF HOUSING AND
COMMUNITY DEVELOPMENT TO AMEND THE
CONTRACT USE OF CALIFORNIA NEIGHBORHOOD
STABILIZATION PROGRAM (NSP) FUNDING
The City Council of the City of Palm Desert, California (hereinafter referred to as the
"City Council") does resolve as follows:
WHEREAS, the County of Riverside ("County") and the City of Palm Desert
("City") executed a Cooperation Agreement for the use of Neighborhood Stabilization
Program Funds ("Cooperation Agreement"), dated 22 December 2009, whereby the City
elected to participate with the County in a joint effort to apply for, receive and use
Neighborhood Stabilization Program ("NSP" or the "Program") funds from the State of
California to assist and undertake essential neighborhood stabilization and housing
assistance activities pursuant to the Housing and Economic Recovery Act of 2008
("HERA"), and the subsequent program regulations promulgated by the United States
Department of Housing and Urban Development ("HUD"); and
WHEREAS, the California Department of Housing and Community Development
("HCD") administers NSP funds for the State of California; and
WHEREAS, the City, in cooperation with the Palm Desert Redevelopment
Agency, established a 2009-10 NSP Action Plan (the "Plan") for the participation of very
low, low and moderate income residents in the Program within the City, approved by the
City Council on May 26, 2009; and
WHEREAS, the County and the City desire to seek authorization from HCD to
amend the contract use of California NSP funding consistent with HUD and HCD
regulations and rules.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT
DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:
Section 1. The City Council has reviewed and hereby approves and consents to
the County and the City seeking authorization from HCD to amend the contract use of
California NSP funding consistent with HUD and HCD regulations and rules, for the
following activities:
Proposed amended use of funds
i) The City's use of the its allocation of NSP funds of $326,784 shall
include acquisition, rehabilitation, and resale, as well as homebuyer
assistance in the form of silent second loans for the purchase of
eligible foreclosed and/or abandoned bank-owned single family
homes within the City.
RM P U B\LWAD E\316530.3
6/15/10
Resolution No. 2010-48
ii) Homebuyer assistance shall include silent second loans in direct
homeownership assistance to home buyers who purchase and
occupy eligible singte family homes within the City.
iii) The proposed acquisition, repair, remarketing and resale activities
may be accomplished in partnership with and by an independent
private or public third party with a loan of NSP funds.
iv) The City's Program will be available within the established NSP
eligible target areas as identified on target area maps located at
htt�;/tv�r�r�.cityc�fpalmd���rt.orgllnc�ex.aspx?pac�e-'I 02.
Section 2. In the event that additional NSP funding becomes available at a later
date, the City is authorized to apply for, and/or accept such additional NSP funding, up
to the amount eligible under any revised or reissued notice of funding availability. Any
additional NSP funding will be used in accordance with funding requirements
established by HUD and/or HCD.
Section 3. The City Council hereby authorizes and directs the City Manager, with
concurrence with City Attorney, to take such further actions and execute such other
agreements as may be necessary or appropriate in administering the actions authorized
by this Resolution.
Section 4. The City Council hereby authorizes, the City Manager to sign Program
funds requests and other reporting forms that are required by the Program.
PASSED, APPROVED AND ADOPTED this day of ,
2010 by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
CINDY FINERTY, Mayor
ATTEST:
RACHELLE D. KLASSEN, City Clerk
City of Palm Desert, California
RM P U B\LWADE\316530.3
6/15/10
RESOLUTION NO. 574
A RESOLUTION OF THE PALM DESERT REDEVELOPMENT
AGENCY AUTHORIZING A REQUEST TO THE CALIFORNIA
DEPARTMENT OF HOUSING AND COMMUNITY
DEVELOPMENT TO AMEND THE CONTRACT USE OF
CALIFORNIA NEIGHBORHOOD STABILIZATION PROGRAM
(NSP) FUNDING
The Palm Desert Redevelopment Agency (hereinafter referred to as the "Agency") does
resolve as follows:
WHEREAS, the County of Riverside ("County") and the City of Palm Desert ("City")
executed a Cooperation Agreement for the use of Neighborhood Stabilization Program
Funds ("Cooperation AgreemenY'), dated 22 December 2009, whereby the City elected to
participate with the County in a joint effort to apply for, receive and use Neighborhood
Stabilization Program ("NSP" or the "Program") funds from the State of California to assist
and undertake essential neighborhood stabilization and housing assistance activities
pursuant to the Housing and Economic Recovery Act of 2008 ("HERA"), and the
subsequent program regulations promulgated by the United States Department of Housing
and Urban Development ("HUD"); and
WHEREAS, the California Department of Housing and Community Development
("HCD") administers NSP funds for the State of California; and
WHEREAS, the City, in cooperation with the Agency, established a 2009-10 NSP
Action Plan (the "Plan") for the participation of very low, low and moderate income residents
in the Program within the City, approved by the City Council on May 26, 2009; and
WHEREAS, the County and the City desire to seek authorization from HCD to
amend the contract use of California NSP funding consistent with HUD and HCD
regulations and rules.
NOW, THEREFORE, THE PALM DESERT REDEVELOPMENT AGENCY BOARD
DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:
Section 1. The Agency Board has reviewed and hereby approves and consents to
the County and the City seeking authorization from HCD to amend the contract use of
California NSP funding consistent with HUD and HCD regulations and rules, for the
following activities:
Proposed amended use of funds
i) The City's use of the its allocation of NSP funds of $326,784 shall
include acquisition, rehabilitation, and resale, as well as homebuyer
assistance in the form of silent second loans for the purchase of
eligible foreclosed and/or abandoned bank-owned single family homes
within the City. •
RMPUB\LWADE\316530.3
6/15/10
Resolution No. 574
ii) Homebuyer assistance shall include silent second loans in direct
homeownership assistance to home buyers who purchase and occupy
eligible single family homes within the City.
iii) The proposed acquisition, repair, remarketing and resale activities
may be accomplished in partnership with and by an independent
private or public third party with a loan of NSP funds.
iv) The City's Program will be available within the established NSP
eligible target areas as identified on target area maps located at
http://www.cityofpalmdesert.org/Index.aspx?page=102.
Section 2. In the event that additional NSP funding becomes available at a later
date, the City is authorized to apply for, and/or accept such additional NSP funding, up to
the amount eligible under any revised or reissued notice of funding availability. Any
additional NSP funding will be used in accordance with funding requirements established by
HUD and/or HCD.
Section 3. The Agency Board hereby authorizes and directs the Executive Director,
with concurrence with Agency Counsel, to take such further actions and execute such other
agreements as may be necessary or appropriate in administering the actions authorized by
this Resolution.
Section 4. The Agency Board hereby authorizes, the Executive Director to sign
Program funds requests and other reporting forms that are required by the Program.
PASSED, APPROVED AND ADOPTED this day of , 2010
by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
CINDY FINERTY, Chairman
ATTEST:
RACHELLE D. KLASSEN, Secretary
RMPUB\LWADE\316530.3
6/15/10
NOTICE OF PUBLIC HEARING
Notice of Public Hearing to Amend the Use of Neighborhood
Stabilization Program Funds from the California State
Department of Housing and Community Development
NOTICE IS HEREBY GIVEN that the City of Palm Desert will conduct a public hearing at a
regular meeting of the City Council on June 24, 2010, at 4:00 p.m. The meeting will be held at
73-510 Fred Waring Drive, Palm Desert, CA to inform the public of an amendment to the
proposed uses of Neighborhood Stabilization Program funds applied for with the California State
Department of Housing and Community Development. The City of Patm Desert, as a joint
applicant with the County of Riverside, City of Coachella, and City of Palm Springs, was
approved with an allocation of $326,784. The City of Palm Desert desires to amend its
previously designated use of funds. The following describes the proposed amended use.
The City of Palm Desert originally proposed to use its full allocation of $326,784 to offer
silent second loans in direct homeownership assistance to eligible first time home buyers
who will purchase and occupy eligible foreclosed or abandoned bank owned single
family homes.
The City of Palm Desert wishes to amend its original proposed use of the full allocation
of $326,784, to include acquisition, rehabilitation, and resale as well as homebuyer
assistance in the form of silent second loans for eligible foreclosed or abandoned bank
owned single family homes within the City of Palm Desert. Homebuyer assistance offers
silent second loans in direct homeownership assistance to income eligible home buyers
who purchase and occupy eligible single family homes. The proposed acquisition, repair,
remarketing and resale activity may be accomplished in partnership with and by an
independent private or public third party with a loan of the herein described
Neighborhood Stabilization Program funds.
If you are unable to attend the public hearing, you may direct written comments prior to the date
of the hearing to: City of Palm Desert, Housing Department, 73-510 Fred Waring Drive, Palm
Desert, CA 92260 by Wednesday, June 23, 2010. Information may be obtained or a public file
on NSP activities may be reviewed, at the above address befinreen the hours of 8:00 a.m. and
5:00 p.m. on weekdays. The program manager can be contacted at 760.346.0611 ext. 344 or by
email at vtapia@ci.palm-desert.ca.us.
If you plan on attending the public hearing and need a special accommodation because of a
sensory or mobility impairment/disability, or have a need for an interpreter, please contact the
program manager at 760.346.0611 ext. 344 to arrange for those accommodations to be made.
Notification 48 hours prior to the meeting will enable the City to make reasonable
accommodations to assure accessibility at the meeting.
The City of Palm Desert promotes fair housing and makes all programs available to low- and
moderate-income families regardless of age, race, color, religion, sex, national origin, sexual
preference, marital status, or disability.
Dated this 10`" day of June, 2010.
�. �- ���� ,���_�
RA HELLE D. KLASSEN, CITY CLERK
CITY (�F PALM DESERT, CALIFORNIA
Martinez, Gloria
From: Moeller, Charlene[CMOELLER@palmspri.gannett.com�
Sent: Thursday, June 10, 2010 3:14 PM
To: Martinez, Gioria
Subject: RE: Legal Notice- PH 06/24/10 Amnd the Use of NSP Funds
Attachments: image001.gif
Ad received and will publish on date(s) requested.
Charlrne Moetler
Public Notice Customer Service Rep.
The Desert Sun Newspaper
750 N. Geae Autry Trail, Palm Springs, CA 92262
(760)778-4578, Fax(760)778-4731
Desert Sun legals@thedesertsun.com
&Desert Post Weekly dpwleqalsCa�thedesertsun.com
The Coachella Valley's#t Source in News 8 Advertising!Visit us at mydeseri.com
NOTE: Starting on March 29th,there will be a$10 affidavit processing fee added to the cost of each Public Notice
From: gmartinez@cityofpalmdesert.org [mailto:gmartinez@cityofpalmdesert.org]
Sent: Thursday, )une 10, 2010 2:54 PM
To: tds-legals
Ce: mloredo@cityofpalmdesert.org; pleon@cityofpalmdesert.org; vtapia@cityofpalmdesert.org
Subject: Legal Notice - PH 06/24/10 Amnd the Use of NSP Funds
PLEASE PUBLISH THE FOLLOWING:
NOTICE OF PUBLIC HEAR/NG
Notice of Public Hearing to Amend the Use of Neighborhood Stabilization Program Funds From the
California State Department of Housing and Community Development.
ONCE IN THE DESERT SUN
Sunday,June 13, 2010
If you have any questions or require additional information, please give me a call.
?'j?.�o�.r:a �'j?a2�'i,,,r.s,
v
Records Technician
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, California 92260
(760) 346-0611 Ext. 354
gmartinez cit r�ofpalmdesert�o�
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