Minutes 08/28/2012 - Laserfiche WebLink

Home Browse Search

August 28, 2012 Ayes: Cherry, Edmonds, Heretick, Moody, Randall, Whitehurst, Wright Nays: None 12 - 345 -Adoption of an ordinance accepting program income in the amount of $640,721.22 from the Neighborhood Stabilization Program and appropriating said amount in the FY 2012-13 Community Planning and Development Program. Vision Principle: Neighborhoods and a Sense of Community. Background: • The Virginia Neighborhood Stabilization Program (NSP) was authorized under the federal Housing and Economic Recovery Act of 2008. • The original grant program was part of the Federal stimulus program and its purpose is to assist in the redevelopment and sale of foreclosed homes. The program is administered by the City on behalf of the Virginia Department of Housing and Community Development. • In 2009, the City of Portsmouth received approximately $2.0 million in initial NSP funds and to date 9 foreclosed upon homes have been purchased, rehabilitated, and sold with those funds. Discussion: - In 2009, DHCD determined that the City of Portsmouth had at least 200 foreclosed properties and/or a foreclosure rate of at least 4.0% and was 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 are 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 can be targeted to the Westhaven Park, Prentis Park, Brighton and Cradock neighborhoods and census tracts. - The primary use of NSP funds is to purchase and rehabilitate residential properties that have been foreclosed upon, with subsequent sale. - NSP benefits 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. - The construction will be completed by Habitat for Humanity and the Southeastern Community Development Corporation, both of which are already approved by DHCD under the NSP program. Financial Impact: • Seven of the 9 homes have been completed and sold which has generated $640,721.22 in program income to date, which needs to be appropriated to the City's FY13 budget. The funds will allow for another 4 foreclosed homes to be purchased, improved and sold. 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 ordinance is recommended. Vision Principle: Neighborhoods and a Sense of Community. Next Steps Following Council Action: - Transmit ordinance to DHCD. Motion by Mr. Heretick, and seconded by Mr. Edmonds, to adopt the following ordinance, and was adopted by the following vote: