Laserfiche WebLink
<br />R-13-14 <br /> <br />A RESOLUTION REQUESTING A REDUCTION OF $313,032.16 IN THE CITY OF <br />PORTSMOUTH'S FY 2013-14 (FFY 13) U.S. DEPARTMENT OF HOUSING AND <br />URBAN DEVELOPMENT HOME INVESTMENT PARTNERSHIPS GRANT. <br /> <br />WHEREAS, the City of Portsmouth receives an annual HOME Investment Partnerships <br />Program entitlement from the US Department of Housing and Urban Development (HUD) under <br />the Cranston - Gonzalez National Affordable Housing Act of 1992, as amended, ("Act"), to <br />provide assistance with housing to low-income households; and <br /> <br />WHEREAS, the City of Portsmouth provided $313,032.16 of HOME funds to the Center <br />for Community Development, Inc. (CCDI), a certified Community Housing Development <br />Organization (CHDO), which were to used by CCDI to assist with acquisition and partial <br />rehabilitation of2231 Elm Ave., 1029 Ann St., and 2309 Peach St.; and <br /> <br />WHEREAS, CCDI did not complete the rehabilitation of three projects or sell them to <br />low-income households in agreement with the HOME regulations, and the properties have now <br />gone into foreclosure; and <br /> <br />WHEREAS, the City investigated all possibilities to salvage the three projects to avoid <br />foreclosure and auction by the lender but found that it made no financial or economic sense; and <br /> <br />WHEREAS, HUD has terminated the projects due to lack of compliance with the <br />HOME regulations and is requesting repayment of the $313,032.16; and <br /> <br />WHEREAS, the City has determined that due to financial hardship it does not have the <br />resources to repay HUD the requested $313,032.16 from its general revenue without sacrificing <br />other critical programs; and <br /> <br />NOW THEREFORE, BE IT RESOLVED by the Council of the City of Portsmouth, <br />Virginia, that the City request HUD to reduce its FFY 13 HOME grant by $313,032.16 to repay <br />the funds expended on the terminated projects and, if the FFY 13 entitlement funds are not <br />sufficient to cover the expense of the three terminated projects, the City requests that HUD <br />reduce future years HOME entitlement funds. <br /> <br />ADOPTED by the Council of the City of Portsmouth, Virginia, at a meeting held on <br />March 26, 2013. <br /> <br />Teste: <br /> <br />City Clerk <br />