HomeMy WebLinkAbout08340ORDINANCE NO. 8340
AN ORDINANCE BUDGETING AND APPROPRIATING FUNDS
IN THE AMOUNT OF $1,460,506 FOR ELIGIBLE PROJECTS,
AND APPROVING AND AUTHORIZING THE EXECUTION OF A
GRANT AGREEMENT BETWEEN THE CITY OF PUEBLO, A
MUNICIPAL CORPORATION AND THE U.S. DEPARTMENT OF
HOUSING AND URBAN DEVELOPMENT (HUD) CONCERNING
THE NEIGHBORHOOD STABILIZATION PROGRAM 3
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Grant Agreement between the U S Department of Housing and Urban Development “HUD”
and the City of Pueblo, a Municipal Corporation which is identified as Grant Number B-11-MN-
08-0005 for the Neighborhood Stabilization Program 3, copies of which are attached hereto, are
hereby approved in all respects.
SECTION 2.
The President of the City Council is hereby authorized and directed to execute said Grant
Agreement in the name of the City and the City Clerk is hereby authorized and directed to affix
the official seal of the City of Pueblo and attest same.
SECTION 3.
The City Manager, or his duly authorized representatives, and other officials of the City are
hereby authorized and directed to do all things required to be done in order to obtain payments
under the Grant Agreement, including, but not limited to, making required certifications,
submitting requests for payment, contracting with persons and organizations in order to carry
out the provisions of the Grant Agreement, filing reports and keeping records relating to fiscal,
performance and evaluation matters, and submitting other materials, as required to HUD.
SECTION 4.
The payments made by the HUD to the City pursuant to and under the Grant Agreement shall
be transmitted to the Finance Department of the City and credited to Special Fund No. 241 for
Community Development Block Grant- Neighborhood Stabilization Program 3.
SECTION 5.
Monies received as program income including principal and interest loan repayments, or other
sources of private receipts by the fund account listed in Section 4 of this Ordinance, shall be
transmitted to the Finance Department of the City and credited to Fund No. 241, and shall be re-
programmed for eligible activities as outlined in the Grant Agreement.
SECTION 6.
The Director of the Department of Housing and Citizen Services is authorized to execute all
documents associated with the Neighborhood Stabilization Program 3 implementation related
with the purchase, rehabilitation and conveyance of abandoned and foreclosed upon properties,
and is further authorized to move funding among NSP 3 activities as required to ensure timely
expenditures.
SECTION 7.
The NSP3 grant in the amount of $1,460,506 is hereby budgeted and appropriated. HOME
funds available in the 251 Fund in the amount of $550,000 are also hereby budgeted, and
projects established, as follows:
NSP301 NSP302 NSP303 NSP304
Housing Acquisition & Land Banking Administration
Redevelopment Rehabilitation
NSP3 $700,000 $460,000 $154,456 $146,050
HOME $350,000 $200,000 $0 $0
$1,050,000 $660,000 $154,456 $146,050
INTRODUCED: April 11, 2011
BY: Larry Atencio
COUNCILPERSON
PASSED AND APPROVED: April 25, 2011 _
Background Paper for Proposed
ORDINANCE
# R-4
DATE: APRIL 11, 2011AGENDA ITEM
DEPARTMENT:
HOUSING AND CITIZEN SERVICES
DIRECTOR – ADA RIVERA CLARK
TITLE
AN ORDINANCE BUDGETING AND APPROPRIATING FUNDS IN THE AMOUNT OF
$1,460,506 FOR ELIGIBLE PROJECTS, AND APPROVING AND AUTHORIZING THE
EXECUTION OF A GRANT AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL
CORPORATION AND THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
(HUD) CONCERNING THE NEIGHBORHOOD STABILIZATION PROGRAM 3
ISSUE
Should the City Council approve the grant agreement, and appropriate and budget funds to
carry out eligible projects under the grant?
RECOMMENDATION
Approval of the Ordinance
BACKGROUND
The City of Pueblo made application for an entitlement grant called Neighborhood Stabilization
Program 3 (NSP3) from the Department of Housing and Urban Development (HUD) in February
of 2011. The City’s allocation is $1,460,506. The City submitted 4 projects to be funded as per
the eligibility criteria established by HUD. Attachment 1 contains the Activity Worksheets
submitted to and approved by HUD. The Grant was approved in March of 2011. The purpose
of the NSP grant is to address the high number of vacant and abandoned properties in
neighborhoods caused by foreclosures. This Ordinance appropriates the grant and budgets for
the listed activities.
FINANCIAL IMPACT
This Ordinance accepts the grant and budgets and appropriates the funding for the projects.
There is no requirement for matching funds, however, some of the projects will require
additional funding to complete, as identified in the Activity Worksheets. The additional funding
needed is $550,000 and is available in the HOME grant in Fund 251.
The City will be reimbursed for project expenditures upon proper completion of each activity
undertaken. The funds will be drawn down through HUD’s IDIS system. The Grant will be set-
up in the 241 Fund.
Attachment 1
Activity Number 1
Activity Name Housing Redevelopment
Select all that apply
❑ Eligible Use A. Financing Mechanisms
E Eligible Use B Acquisition and Rehabilitation
Uses
❑ Eligible Use C. Land Banking
❑ Eligible Use D Demolition
® Eligible Use E Redevelopment
24 CFR 570.201(a) Acquisition,
(b) Disposition,
(c) Public facilities and improvements,
(e) Public services for housing counseling, but only to the extent that
counseling beneficiaries are limited to prospective purchasers or tenants of
the redeveloped properties,
CDBG Activity or (i) Relocation, and
Activities (n) Direct homeownership assistance (as modified below)
24 CFR 570.202 Eligible rehabilitation and preservation activities for
demolished or vacant properties.
24 CFR 570.204 Community based development organizations.
HUD notes that any of the activities listed above may include required
homebuyer counseling as an activity delivery cost.
National Objective Low Moderate Middle Income Housing (LMMH)
The City will redevelop 6 homes to be sold to those clients whose income
does not exceed 120% AMI Once the redevelopment work is completed, the
homes will be marketed for sale
Duration of Assistance Assistance will be regulated by HOME Affordability
Requirements to ensure long -term affordability
Tenure Ownership and rental
Rate of Interest Rate Funding will be provided as a soft second at 0%
interest.
Activity Description
Beneficiaries Properties will be sold to households at 120% or below of the
area median income
The City of Pueblo will give local contractors priority rating on the RFP
Contractors who hire new employees must, to the maximum extent possible,
hire workers who live in the NSP3 program area and contract with small
businesses that are either owned or operated by persons residing in the
vicinity of the project. A provision will be inserted in all contracts
incorporating this requirement.
Location Description Bessemer, Eastside URA, Westside /Downtown
Budget Source of Funding Dollar Amount
Attachment 1
NSP3 $700,000
HOME Investment Partnership Act $350,000
(Other funding source) $0 00
Total Budget for Activity $1,050,000
Performance Measures Six properties will be redeveloped as housing and sold to clients at or below
120% AMI
Projected Start Date 4/1/2011
Projected End Date 4/1/2014
Department of Housing and Citizen
Name
Responsible Services
Organization
Location 2631 E 4 St. Pueblo, CO 81003
Administrator Contact Info Ada Clark, Director
adaclark@pueblo.us, 719 - 553 -2850
Activity Number 2
Purchase and rehabilitate homes and residential properties that have been
Activity Name abandoned or foreclosed upon, in order to sell or rent such homes and
properties
Select all that apply
n Eligible Use A. Financing Mechanisms
® Eligible Use B Acquisition and Rehabilitation
Use ❑ Eligible Use C. Land Banking
❑ Eligible Use D Demolition
❑ Eligible Use E Redevelopment
24 CFR 570.201(a) Acquisition
24 CFR 570.201(b) Disposition
CDBG Activity or 24 CFR 570.201(e) Public services for housing counseling, but only to
Activities the extent that the counseling beneficiaries are limited to prospective
purchasers or tenants of the assisted properties.
24 CFR 570.201(i) Relocation
National Objective Low Moderate Middle Income Housing (LMMH)
DHCS will acquire 5 foreclosed and abandoned properties in the
targeted area for sale or lease to eligible families. The ownership
program will be substantially the same as the NSP1 program now being
administered by DHCS for the City The homes will be sold to eligible
families for the appraised price or the cost of acquisition and
rehabilitation, whichever is less. At the time of sale of the home, the
sales price, less any subsidy needed to make the home affordable to the
Activity Description borrower, will be repaid to the NSP program and used for other NSP3
eligible activities.
The rental program will also be substantially the same as the NSP 1
program being administered by the DHCS Upon completion of the
rental units, the property will be transferred to a local non - profit for
ownership To insure that the rents are affordable, the maximum that
the non ❑profit will be able to charge for rent will be the HOME high
rents. The subsidy will be structured to provide long term affordability
Attachment 1
This activity will address local housing market conditions by rehabilitating
structures in high risk neighborhoods. This target area has many homes that
were built in the earlier part of the century and the systems have become
obsolete, as well as the structure not meeting code The rehabilitation of
these units will allow for safe, decent and sanitary housing to the low to
moderate - income population
Duration of Assistance Assistance will be regulated by HOME Affordability
Requirements to ensure long -term affordability
Tenure Ownership and rental
Rate of Interest Rate Funding will be provided as a soft second at 0%
interest.
Beneficiaries Properties will be sold to households at 120% or below of the
area median income
The City of Pueblo will give local contractors priority rating on the RFP
Contractors who hire new employees must, to the maximum extent possible,
hire workers who live in the NSP3 program area and contract with small
businesses that are either owned or operated by persons residing in the
vicinity of the project. A provision will be inserted in all contracts
incorporating this requirement.
Location Description Bessemer, Eastside URA, Westside /Downtown
Source of Funding Dollar Amount
Budget NSP3 $460,000
HOME Investment Partnership Act $200,000
(Other funding source) $0 00
Total Budget for Activity $660,000
Performance Measures Purchase and Rehabilitation of 5 abandoned or foreclosed properties
Projected Start Date 4/1/2011
Projected End Date 4/1/2014
Department of Housing and Citizen
Name
Responsible Services
Organization
Location 2631 E. 4 St. Pueblo, CO 81003
Administrator Contact Info Ada Clark, Director
adaclarkPpueblo.us, 719 - 553 -2850
Activity Number 3
Activity Name Land Banking
Select all that apply
❑ Eligible Use A. Financing Mechanisms
❑ Eligible Use B Acquisition and Rehabilitation
Use ® Eligible Use C. Land Banking
❑ Eligible Use D Demolition
❑ Eligible Use E Redevelopment
t$
Attachment 1
CDBG Activity or 24 CFR 570.2019(a)Acquisition, and (b)Disposition
Activities
National Objective Low Moderate Middle Income Housing (LMMH)
The City will acquire and dispose of property within 10 years by 1) holding
and maintaining the home in its portfolio for future redevelopment, 2)
demolishing the home if it is blighted and maintain the property in its
portfolio, 3) selling the cleared site to a developer for redevelopment; or 4)
rehabilitating the home and either selling it to an eligible homebuyer or to a
local non - profit partner as a rental property The City will hold properties
within its Vacant Lot Recycle Program
This activity will address local housing market conditions by demolishing and
land banking blighted structures in high risk neighborhoods These lots will
be maintained and redeveloped as the neighborhood is stabilized and
demand for rental or homeownership opportunities returns.
Duration of Assistance Assistance will be regulated by HOME Affordability
Requirements to ensure long -term affordability
Tenure Ownership and rental
Rate of Interest Rate Funding will be provided as a soft second at 0%
interest.
Beneficiaries Properties will be sold to households at 120% or below of the
Activity Description area median income
Benefits The demolition of blighted properties will eliminate health and
safety concerns of existing neighbors, as well, as providing for the immediate
aesthetic improvements that the demolition of such structures provides. In
the long -term it will provide for safe and decent affordable housing for low to
moderate - income families. New homes and gut rehabilitation projects will
also be required to meet the standard for Energy Star Qualified New Homes,
which will provide for continued affordability through savings in energy
consumption
The City of Pueblo will give local contractors priority rating to contractors who
hire, to the maximum extent possible, workers who live in the NSP3 program
area and contract with small businesses that are either owned or operated by
persons residing in the vicinity of the project. A provision will be inserted in all
contracts incorporating this requirement.
Eligible activities are costs directly associated with deconstruction and
demolition (includes utility shut -off and hazardous materials testing and
removal), clearance, removal and disposition of materials, site restoration
(grading, seeding, curb replacement)
Attachment 1
Location Description Bessemer, Eastside URA, Westside /Downtown
Source of Funding Dollar Amount
Budget NSP3 $154,456
$0
(Other funding source) $0
Total Budget for Activity $154,456
Performance Measures Properties acquired estimated at 5
Projected Start Date 4/11/2011
Projected End Date 4/11/2014
Name Department of Housing and Citizen
Responsible Services
Organization Location 2631 E 4 St. Pueblo, CO 81003
Administrator Contact Info Ada Clark, Director
adaclarkPpueblo.us, 719 - 553 -2850
Activity Number 4
Activity Name Administration
Select all that apply
❑ Eligible Use A. Financing Mechanisms
❑ Eligible Use B Acquisition and Rehabilitation
Uses ❑ Eligible Use C. Land Banking
❑ Eligible Use D Demolition
❑ Eligible Use E Redevelopment
CDBG Activity or Administration — General Management and Oversight as allowed under 24
CFR 570 206
Activities
National Objective N/A
Funding will provide for the administration of the NSP 3 program over a 3
Activity Description year - period Staff will develop request for proposals for professional services
and contractors, construction supervision, accounting and reporting to HUD
Location Description Department of Housing and Citizen Services
Source of Funding Dollar Amount
Budget NSP3 $146,050
HOME Investment Partnership Act $0 00
(Other funding source) $0 00
Total Budget for Activity $146,050
Performance Measures N/A
Projected Start Date 4/1/2011
Projected End Date 4/1/2014
Name Department of Housing and Citizen
Services
Responsible Location 2631 E 4 St. Pueblo, CO 81003
Organization
Administrator Contact Info Ada Clark, Director
adaclark @pueblo.us, 719 - 553 -2850
FUNDING APPROVAL AND GRANT AGREEMENT FOR
NEIGHBORHOOD STABILIZATION PROGRAM 3 (NSP3) FUNDS
AS AUTHORIZED AND APPROPRIATED UNDER THE WALL STREET
REFORM AND CONSUMER PROTECTION ACT OF 2010, AMERICAN
RECOVERY AND REINVESTMENT ACT OF 2009 AND THE HOUSING
AND ECONOMIC RECOVERY ACT OF 2008
(PUBLIC LAWS 111 - 203,111 -005 and 110 -289)
NSP3 GRANTEE Pueblo, Colorado
NSP3 GRANT NUMBER: B- 11 -MN -08 -0005
NSP3 GRANT AMOUNT. $1,460,506
NSP3 APPROVAL DATE: March 16, 2011
NSP3 EXPENDITURE DEADLINE (2 YEAR). March 16, 2013
NSP3 EXPENDITURE DEADLINE (3 YEAR). March 16, 2014
GRANTEE DUNS NUMBER. 010620284
1 This Grant Agreement between the U S Department of Housing and Urban Development
(HUD) and Pueblo, Colorado (Grantee) is made pursuant to the authority of section
1497 of the Wall Street Reform and Consumer Protection Act of 2010 (Pub L. 111 -203
(July 21, 2010)) (Dodd -Frank Act) title XII of Division A of the American Recovery and
Reinvestment Act of 2009 (Public Law 111 -5 (February 17, 2009)) (Recovery Act) and
sections 2301 — 2304 of the Housing and Economic Recovery Act of 2008 (Public Law
110 -289 (July 30, 2008)) (HERA) The program established pursuant to section 2301-
2304 of HERA is known as the "Neighborhood Stabilization Program" or "NSP " The
term "NSP2" refers to the second appropriation of NSP funds provided under the
Recovery Act. The additional allocation under the Frank Dodd Act represents the third
round of Neighborhood Stabilization Program funding and is referred to as "NSP3 "
Notice of Formula Allocations and Program Requirements for Neighborhood
Stabilization Program Formula Grants (Docket No FR- 5447 -N -01, October 19, 2010)
(NSP3 Notice), the Dodd -Frank Act; the Recovery Act; HERA, the Grantee s
application for NSP3, the HUD regulations at 24 CFR Part 570 (as modified by the NSP3
Notice as now in effect and as may be amended from time to time) (Regulations), and
this Funding Approval, including any special conditions, constitute part of the Grant
Agreement. In the event of a conflict between a provision of the Grantee's Application
and any provision of this Grant Agreement, the latter shall control.
2
2. The Grantee shall comply with reporting requirements established by HUD and OMB
(including all revisions to such reporting requirements) and the Federal Funding
Accountability and Transparency Act (Pub L 109 -282) (including implementing
guidance).
3 Subject to the provisions of this Grant Agreement, HUD will make NSP3 Grant Funds in
the amount of $1,460,506 available to the Grantee upon execution of this Grant
Agreement by the parties. Of that amount, $365,126 must be used to house individuals or
families whose incomes do not exceed 50 percent of area median income, pursuant to
Dodd -Frank Act. The Grantee shall have 24 months from the date of HUD's execution
of this Grant Agreement to expend half of the NSP3 Grant amount pursuant to the
requirements of this Agreement, the Dodd -Frank Act, the Recovery Act, HERA and the
NSP3 Notice, as amended. The Grantee shall have 36 months from the date of HUD's
execution of this Grant Agreement to expend the total NSP3 Grant amount pursuant to
the requirements of this Agreement, the Dodd -Frank Act, the Recovery Act, HERA and
the NSP3 Notice, as amended. The NSP3 Grant Funds may be used to pay eligible costs
arising from eligible uses incurred after the NSP3 Approval Date provided the activities
to which such costs are related are carried out in compliance with all applicable
requirements. Pre -award planning and general administrative costs may not be paid with
funding assistance except as permitted in the NSP3 Notice, as amended. Other pre -award
costs may not be paid with funding assistance except as permitted by 24 CFR 570.200(h),
for purposes of NSP3, such costs are limited to those incurred on or after the date that the
NSP3 Notice was published by HUD
4 The Grantee agrees to assume all of the responsibilities for environmental review,
decisionmaking, and actions, as specified and required in regulations issued by the
Secretary pursuant to section 104(g) of Title I of the Housing and Community
Development Act, as amended (42 U S C 5304) and published in 24 CFR Part 58
5 The Grantee agrees that it will demolish or convert units using NSP3 funds only to the
extent and scope described in the NSP3 substantial amendment. The Grantee agrees that
under no circumstances will NSP3 funds be used to demolish any public housing (as
defined in section 3 of the United States Housing Act of 1937 (42 U S C 1437a))
6 The Grantee agrees to comply with the Recovery Act provisions concerning tenant
protections applicable to NSP3 acquisitions of foreclosed property The Grantee must
document its efforts to ensure that the initial successor in interest (ISII) in a foreclosed
upon dwelling or residential real property (typically, the initial successor in interest in
property acquired through foreclosure is the lender or trustee for holders of obligations
secured by mortgage hens) has provided bona fide tenants with the notice and other
protections outlined in the Recovery Act. The Grantee will not use NSP3 funds to
finance the acquisition of property from any initial successor in interest that failed to
comply with applicable requirements unless the Grantee assumes the obligations of such
initial successor in interest with respect to bona fide tenants. If the Grantee elects to
assume such obligations, it may only do so if the tenant is still occupying the property
and will provide any tenant displaced as a result of the NSP3 funded acquisition with the
3
assistance outlined in 24 CFR 570 606 If the Grantee knows that the ISII did not comply
with the NSP tenant protection requirements and vacated the property contrary to the
NSP requirements, NSP3 funds cannot be used to acquire such properties.
7 The Grantee further acknowledges its responsibility for adherence to all applicable terms
and conditions of this grant award by sub - recipient entities and contractors, including
obtaining a DUNS number (or updating the existing DUNS record), and registering with
the Central Contractor Registration.
8 This Grant Agreement may be amended only with the prior written approval of HUD In
considering proposed amendments to this Grant Agreement, HUD shall also review,
among other things, whether the amendment is otherwise consistent with the Dodd -Frank
Act, the Recovery Act, HERA, the NSP3 Notice, as amended, and the Regulations.
9 The Grantee may not amend its Grantee Submission other than as described above;
however, such amendments will be subject to the requirements of the NSP3 Notice and
any revisions HUD may make to the NSP3 Notice (or any successor Notice or
regulation)
10 The Grantee must respond in writing to any citizen complaint within 15 working days, if
feasible, and send a copy of the response to HUD The Grantee shall at all times maintain
an up -to -date copy of its Grantee Application, including all amendments approved by
HUD, on its Internet website. Further, the Grantee shall maintain information on all
drawdowns, deposits, and expenditures of grant funds and program income under this
Funding Approval and Grant Agreement and any other records required by 24 CFR
570.506 and the NSP3 Notice, as amended, in its files and shall make such information
available for audit or inspection by duly authorized representatives of HUD, HUD's
Office of the Inspector General, or the Comptroller General of the United States.
11 The Grantee is advised that providing false, fictitious or misleading information with
respect to NSP3 Grant Funds may result in criminal, civil or administrative prosecution
under 18 USC § 1001, 18 USC § 1343, 31 USC § 3729, 31 USC § 3801 or another
applicable statute.
12. Close -out of this grant shall be subject to the provisions of 24 CFR 570.509 or such
close -out instructions as may hereafter be issued by HUD specifically for NSP3 grants.
[Remainder of this page blank]
4
This NSP3 Grant Agreement is binding with respect to HUD in accordance with its terms upon
the execution by HUD in the space provided below, subject to execution on behalf of the
Grantee.
The United States Department of The Grantee
Housing and Urban Development [Insert Grantee Name]
(1< „----.-' ---- '
iit- / ACtikA"
Si ature of Authorized Official Signatur of Authorized Offical
eRoy P. Brown Agui lira
Name of Authorized Official Name of Authorized Official
Director, Community Planning and Development President of City Council
Title of Authorized Official Title of Authorized Official
o/ 6o --U// 4/ /4,1,
Date Sig ature Date of Signature
84 6000 615
Grantee Tax Identification Number