HomeMy WebLinkAbout11618RESOLUTION NO. 11618
A RESOLUTION APPROVING AN AGREEMENT BETWEEN
THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND
THE NATIONAL COMMUNITY STABILIZATION TRUST, FOR
THE PURPOSE OF PROVIDING AN EFFICIENT AND COST
EFFECTIVE MECHANISM FOR TRANSFERRING VACANT AND
FORECLOSED PROPERTIES TO BE USED UNDER THE
NEIGHBORHOOD STABILIZATION PROGRAM, AND
AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO
EXECUTE SAME
WHEREAS, the City of Pueblo applied for and received a grant for the purchase
and rehabilitation of foreclosed properties under the Neighborhood Stabilization
Program, from the State's Division of Housing; and
WHEREAS, the Neighborhood Stabilization Program requires that the properties
purchase d under the program provide for a 15% discount from market value in the
aggregate; and
WHEREAS, the funds must be expended in a timely manner and within all the
federal regulations; NOW THEREFORE
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, that:
SECTION 1.
The Agreement between the National Community Stabilization Trust, and the
City of Pueblo, dated May 26, 2009, is hereby approved in substantial form with such
minor changes therein as shall be approved by the President of City Council and the
City Attorney.
SFrTinN 9
The President of City Council is hereby authorized to execute and deliver the
Agreement in the name of and on behalf of the City of Pueblo, a Municipal Corporation,
and the City Clerk shall affix the Seal of the City thereto and attest same.
INTRODUCED: May 26, 2009
F-W
Judy Weaver
COUNCILPERSON
APPR D' } �-
PRESIDENTaf Cfty Council
A77TSTFD DY:
CITY CLERK
[Po:! D D
ED
Background Paper for Proposed
RESOLUTION
AGENDA ITEM # 3
DATE: MAY 26, 2009
DEPARTMENT: HOUSING AND CITIZEN SERVICES / ADA RIVERA CLARK
TITLE
A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE CITY OF PUEBLO, A
MUNICIPAL CORPORATION, AND THE NATIONAL COMMUNITY STABILIZATION
TRUST, FOR THE PURPOSE OF PROVIDING AN EFFICIENT AND COST EFFECTIVE
MECHANISM FOR TRANSFERRING VACANT AND FORECLOSED PROPERTIES TO BE
USED UNDER THE NEIGHBORHOOD STABILIZATION PROGRAM, AND
AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME
ISSUE
Should the City Council approve an Agreement with National Community Stabilization Trust
(NCST) to act as an intermediary on the transference of foreclosed properties from the financial
institutions to the City?
RECOMMENDATION
Approval of the Resolution.
BACKGROUND
In July 2008, President Bush signed the Housing and Economic Recovery Act of 2008 (HERA).
HERA provided for the Neighborhood Stabilization Program (NSP). The City applied for
funding from the State and received an allocation. In order to comply with the federal
regulations the City must purchase properties at a 15% discount from market value. In an effort
to facilitate the meeting of these requirements four national non - profits joined forces to facilitate
the transfer of property to municipalities.
The City's Department of Housing and Citizen Services is acting as the pilot program for
Colorado. The City Attorney's Office has reviewed the purchase contracts with the participating
lenders (Chase, Countrywide, Wells Fargo, as well as others) to ensure compliance with local
and state laws. At this time we are finalizing contracts and are ready to enter into a
memorandum of understanding (MOU) with NCST. Attached as Exhibit A is the MOU with
NCST and the corresponding guidelines.
FINANCIAL IMPACT
Entering into an agreement with NCST has no financial impact. The services are provided at no
cost through the partners of the NCST.