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HomeMy WebLinkAbout2009-010 CRARESOLUTION 2009-010 6!30!09 les A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING THE OPERATION OF THE NEIGHBORHOOD STABILIZATION DOWN PAYMENT ASSISTANCE PROGRAM BY THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA BOTH WITHIN AND OUTSIDE THE MERGED REDEVELOPMENT PROJECT AREA OF THE AGENCY, BUT WITHIN CITY BOUNDARIES AND A COMMITMENT OF FUNDS BE IT RESOLVED BY THE MEMBERS OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, AS FOLLOWS: Section 1. The Community Redevelopment Agency of the City of Santa Ana finds, determines and declares as follows: A. On May 4, 2009, the U.S. Department of Housing and Urban Development (HUD) issued a Notice of Fund Availability (NOFA) for $1.93 billion of Neighborhood Stabilization Program funds (NSP-2) and the City is eligible to apply. B. Grant funds under NSP-2 must be used for activities that will reduce the numbers of foreclosed and abandoned residences in census tracts with a high concentration of foreclosures according to HUD data. The City is preparing an application for $10 million in NSP-2 funds. C. Staff is recommending adoption of a Neighborhood Stabilization Downpayment Assistance Program (Program) to be available for bank-owned properties and also short sales as NSP-2 funds are limited to properties that are foreclosed and/or abandoned and bank-owned. This Program will complement the other existing City and Agency programs. D. Priority will be given to properties that are in the City's NSP priority areas as shown on the map (seen in Exhibit 1), however funds will also be available citywide. Also, the Program will be operated both within the merged redevelopment project area of the Agency and outside such area, but still within the boundaries of the City of Santa Ana. E. The Program will allow households with incomes up to 120% of the area median income to participate. Maximum loan amounts will be $40,000 or 10% of the purchase price, whichever is lower. The loans will have no interest rate and will be deferred for forty-five (45) years. Participants need not be first time homebuyers. Resolution No. CRA 2009-010 Page 1 of 3 F. This Program will assist the Redevelopment Agency to meet its affordable housing obligations as well as providing a permanent mechanism through which the issue of foreclosed or abandoned residences may be addressed. G. Approval of this Program will also improve the competitiveness of the City's NSP- 2 application. NSP-2 funding decisions will be made on a competitive basis. Applicants will receive additional points if they can demonstrate firm commitments for additional non-NSP, non-CDBG, and non-federal leveraging funds for investment in its NSP-2 Program from state, local, private nonprofit, or private for-profit sources. H. The Agency finds and declares that such expenditures will be of benefit to the entire merged redevelopment project area, and to all residents of the City. This finding is made pursuant to Health & Safety Code § 33334.2(8)(1). NOW, THEREFORE, BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, AS FOLLOWS: Section 2. The Community Redevelopment Agency finds that each of the foregoing recitals is true and correct. Section 3. The Community Redevelopment Agency hereby commits $800,000.00 in leveraging funds from the Low and Moderate Income Housing Fund for the Neighborhood Stabilization Downpayment Assistance Program. Section 4. The Community Redevelopment Agency hereby finds and determines that the merged redevelopment project area of the Agency will benefit by the operation of the Program both within and outside the merged redevelopment project area, but within the boundaries of the City. Section 5. This Resolution shall take effect immediately upon its adoption by the Community Redevelopment Agency, and the Recording Secretary shall certify the vote adopting this Resolution. Resolution No. CRA 2009-010 Page 2 of 3 ADOPTED this 6~" day of Jam, 2009. APPROVED AS TO FORM: Joseph W. Fletcher, General Counsel Lisa E. Storck Assistant Counsel annmo m~ AYES: Boardmembers: Alvarez Benavides Bustamante Martinez, Tinaiero Pulido (6) NOES: Boardmembers: None (0) ABSTAIN: Boardmembers: None (0) NOT PRESENT: Boardmembers: Sarmiento (1Z CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Recording Secretary for the Community Redevelopment Agency, do hereby attest to and certify the attached Resolution No. 2009-009 to be the original resolution adopted by the Community Redevelopment Agency of the City of Santa Ana on Julv 6, 2009. r I ~/,~ ~ ~ ~,~ Date: ~ l.~ l.~X.NI/4~"lr Recording Secret ry Community Redevelopment Agency Resolution No. CRA 2009-010 Page 3 of 3