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Quarterly Report for Housing Division Projects and Activities <br />June 20, 2011 <br />Page 4 <br />Development Projects <br />NSP 1 Program <br />The federal Neighborhood Stabilization Program (NSP) is intended to target and stabilize <br />communities hardest hit with foreclosures. To date, the City has received three NSP awards. The <br />first award (NSP 1) came through a noncompetitive process in the amount of $5,795,155. Under <br />its terms, all grant funds must be obligated by September 5, 2010, and expended by March 26, <br />2013. In addition, NSP grantees must expend at least 25% of the funds on households who are <br />very low-income. However, the City has exceeded this requirement by obligating $2.45 million or <br />42% of its grant to very low-income households. Currently, the City has expended $2.3 million or <br />33% of its funds dedicated to projects to serve very low-income households. As of the end of the <br />third quarter, the City had obligated all of its NSP 1 funds in August 2010 and had expended more <br />than $6.2 million or 107.3% of its grant amount, which includes program income generated by <br />sales. This exceeded HUD's timeline requirement for grant expenditure. Currently the Program is <br />only operating with program income, and these funds will diminish over time. <br />NSP 1 includes the following four programs: Down Payment Assistance Program, Single-Family <br />Acquisition-Rehabilitation Program, Historic/Condominium Acquisition-Rehabilitation Program and <br />a Multifamily Acquisition-Rehabilitation Program. ANR Industries, the intermediary selected to <br />implement homeownership programs including the Single-Family and Historic/Condominium, is <br />responsible for the acquisition, rehabilitation, and resale of the foreclosed units. These homes are <br />sold to families with incomes up to 120% of the area median (AMI). As of the end of the third <br />quarter, ANR had used NSP 1 funds to acquire 34 single-family homes for rehabilitation and resale <br />to qualifying families. ANR has spent more than $3.3 million in NSP 1 funds and has leveraged an <br />additional $4.5 million in private funds to make these affordable units available. Chart 3 shows the <br />status of all properties purchased with NSP 1 funds as of the end of the third quarter. Tables 3 <br />and 4 provide additional detail. <br />35 <br />30 <br />25 <br />20 <br />15 <br />10 <br />5 <br />0 <br />Chart 3: NSP 1- Status of All Single Familv Properties <br />19C-4 <br />Acquisition Under Resale Sold <br />Rehabilitation