Minutes 02/24/2009 - Laserfiche WebLink

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February 24. 2009 Background: . The Virginia Neighborhood Stabilization Program (NSP) was authorized under the federal Housing and Economic Recovery Act of 2008. The grant program is part of the Federal stimulus program and its purpose is to assist in the redevelopment and sale of foreclosed homes. Discussion: . DHCD has determined that the City of Portsmouth has at least 200 foreclosed properties and/or a foreclosure rate of at least 4.0% and is therefore eligible for NSP funding. . NSP is aimed at addressing neighborhoods that have been hardest hit by the mortgage foreclosure crisis. DHCD requires use of funds in a concentrated area where approximately 10% of the housing units or more are in foreclosure. NSP is not for those areas that have negative conditions brought about by events pre-dating the foreclosure crisis and is not for use on a community-wide basis. . NSP funds will be targeted to areas that demonstrate significant need and where use of the funds have the ability to significantly impact and stabilize the proposed project area. Emphasis is placed on projects that retain the fabric of the existing neighborhood. . Based on foreclosure data, NSP funds will be targeted to the Westhaven Park, Prentis Park, and Cradock neighborhoods. The NSP process limits a locality to three neighborhoods only. . The primary use of NSP funds is to purchase and rehabilitate residential properties that have been foreclosed upon, with subsequent sale. . NSP will benefit households at or below 120% of area median income. Per the program requirements, at least 25% of all NSP funds shall benefit households at or below 50% of area median income. Financial Impact: . The City is directly requesting $2 million of NSP funds. No local match is required. The improved properties will support increased property values through the elimination of vacant foreclosed properties. Recommended Action: . Adoption of the resolution is recommended. Neighborhoods and a Sense of Community. Vision Principle: Thriving Next Steps Following Council Action: . Transmit resolution and NSP application to DHCD. Motion by Ms. Psimas, and seconded by Mr. Smith, to adopt the following resolution, and was adopted by the following vote: "RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AND SUBMIT A PROPOSAL TO THE VIRGINIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR NEIGHBORHOOD STABILIZATION PROGRAM GRANT FUNDS. WHEREAS , the Virginia Neighborhood Stabilization Program (NSP) was authorized under the federal Housing and Economic Recovery Act of 2008 and is part of the Federal stimulus program; and WHEREAS, NSP funds are be targeted to areas that demonstrate significant need and where use of the funds have the ability to significantly impact and stabilize a proposed project area; and WHEREAS, the primary use of NSP funds is to purchase and rehabilitate residential properties that have been foreclosed upon, with subsequent sale; and