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<br /> Agreements for Federal NSP 1 and NSP 2 <br /> March 1, 2010 <br /> Page 2 <br /> COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION ACTION <br /> At its regular meeting on February 16, 2010, by a vote of 4:0, (Bist absent), the Community <br /> Redevelopment and Housing Commission recommended that the City Council approve and <br /> authorize the City Manager and Clerk of the Council to execute agreements regarding NSP 1 and <br /> NSP 2 as noted above. <br /> DISCUSSION <br /> On May 4, 2009, the U. S. Department of Housing and Urban Development (HUD) issued a Notice <br /> of Funding Availability (NOFA) for Neighborhood Stabilization Program 2 Funds. In July 2009, the <br /> City submitted an application for $10 million. On January 14, 2009, HUD notified the City that they <br /> were awarded the full amount as requested in the application. There were over 480 applicants and <br /> only 56 awardees nationwide. Of these, only 15 are local governments. <br /> As with NSP 1, funds may be used to benefit households with incomes up to 120 percent of area <br /> median income, with a minimum of 25 percent of these funds spent on activities benefitting very <br /> low-income households (50 percent AMI). The NSP programs, budgets and target goals are listed <br /> below and will be implemented in the target area (Exhibit 1) as required by HUD. <br /> Prog. Program Budget Goal <br /> No. # of Homes <br /> 1 Down a ment Assistance Pro ram $400,000 10 <br /> 2 Acquisition and Rehabilitation - <br /> Sin le Famil Homes $6,100,000 60 <br /> 3 Acquisition and Rehabilitation - Rental <br /> Housin $2,500,000 30 <br /> 4 Admin $1,000,000 n/a <br /> Total NSP Grant $10,000,000 <br /> Under NSP 2 requirements, 50 percent of the funds must be spent within 24 months and 100 <br /> percent in 36 months from the date of the execution of the contract. HUD is mandated to have <br /> contracts executed by February 17, 2010. Because of these short timeframes to expend the funds <br /> and the successful implementation of NSP 1 with our partners, staff is recommending that ANR <br /> Homes, Inc. (ANR) and Orange Housing Development Corporation (OHDC) and C & C <br /> Development continue implementing the Single Family and Rental Housing components, <br /> respectively, for NSP 2. <br /> 25K-2 <br /> <br />