09-103Council Tiie #_���p,�_
GreenSheet# 3D/�lofTS
RESO�UTION
CIT�1(,OF SAINT PAUL, MINNESOTA
Presented by
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t SUBM{SSION OF APPLICATION TO MINNESOTA HOUSING UNDER THE
2 HOUS{NG AND ECONOMIC REC�VERY ACT OF 2008 (HERA} �OR THE
3 NEIGNBORHOOD STABILIZATION PROGRAM
4
5 WHEREAS, the Neighborhood Stabilization Program (NSP} is an emergency assistance
6 fund authorized under Title III of Division B, section 2301 of the Housing and Economic Recovery
7 Act of 2008 (HERA) that is being provided for the redevelopment of abandoned and foreclosed
8 homes and residential properties for the purpose of stabilizing neighborhoods, this funding is
9 considered a grant and a special Community Development Block Grant (CDBG) allocation; and
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11 WHEREAS, Minnesota Housing is a grantee for the State of Minnesota NSP funds in the
12 amount of $38.8 million of which program funds are targeted to areas of greatest need
13 determined through Minnesota Housing's funding formula and which NSP funds will be
14 subgranted to eligible local units of government with experience administering CDBG funds; and
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16 WHfREAS, Minnesota Housing's funding formula has designated $4,559,780 to St. Paul
17 for spending in areas of greatest need (requires 25.4% of the total be used for families at 50%.or
l8 less of inedian income) and provides an opportunity to apply for additional funding over the next
l9 12 month period of any unused NSP funds; and
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21 WHEREAS, Minnesota Housing's NSP funds are in addition to the direct allocation of NSP
22 funds under HERA to the City of Saint Paul as an entitlement city; and
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24 WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul (HRA)
25 had submitted two CRV Single Family funding applications totaling $1.4 million to Minnesota
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Housing in July, 2008, Minnesota Housing approved the funding in October, 2008, and identified
additional NSP funds for these activities; and
WHEREAS, Twin C+ties Habitat for Humanity also submitted a CRV Single Family funding
application for $390,000 to assist with the acquisition of vacant lots, foreclosed a�d abandoned
properties for either demolition or rehab, and new construction for which Minnesota Housing
approved the $390,000 in October, 2008 and assigned NSP funds for this activity which requires
NSP funds be disbursed through the local jurisdiction and in addition to the $4.5 million identified
above; and
WHEREAS, the Council of the City of Saint Paul did approve the FY2008 Consolidated Plan to
the U. S. Department of Housing & Urban Development (HUD) on April 2, 2008 and
subsequentiy amended the Consolidation Plan in order to received Neighborhood Stabilization
Program (NSP) funds being allocated to the City to address abandoned and foreclosed homes;
and
Ov iv.3
43 NOW THEREFORE BE IT RESOLVED, that Mayor Chris Coleman, as Chief Executive
44 Officer of the City of Saint Paul or his designated representatives, is hereby authorized and
45 directed to submit the Neighborhood Stabilization Program Funding Request to Minnesota
46 Housing in such form as prescribed by the application process of said Minnesota Housing and
47 that PED Grants Management staff, are further authorized to submit to Minnesota Housing any
48 assurances, certifications, technical changes or additional information that may be required by
49 said Minnesota Housing during their review of the City's NSP submission; and be it
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51 FURTHER RESOLVED, that upon notification of approval of the City of Saint Paul's 2008
52 NSP submission to Minnesota Housing, the Council does hereby authorize the proper City
53 officials to execute the grant agreements and contracts between Minnesota Housing and the City
54 of Saint Paul; and be it
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56 FURTHER RESOLVED, that all activities identified and approved under the NSP
>7 submission wili be carried out by the Housing and Redevelopment Authority of the City of Saint
58 Paul (HRA); and be it
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60 FINALLY RESOLVED, that the proposed financing for the Neighborhood Stabilization
61 Program is utilized in the following manner:
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63 Funds from Minnesota Housinq NSP Proqram:
64 NSP Program Administration $ 402,446.18
65 NSP Program Activities: 4,157,333.82
66 . Establish Financing Mechanism
67 . Acquisition and Rehabilitation, Homeownership
68 . Acquisition and Rehabilitation, Rental
69 . Land Bank
70 . Demolish Blighted Structures
71 . Redevelop Demolished or Vacant Structures
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73 (Note: $1,158,184.12 must be used for families at 5Q% of less
74 of inedian income)
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77 CRV Proqrams funded bv Minnesota Housina NSP Proqram:
78 Program Administration $ 52,956
79 Financing Mechanisms 547,044
80 . Down payment
81 • Closing Costs
82 . Rehab Gap Assistance
83 ($152,400 must be used for families at 50% of less of
84 Median income)
85 •
86 CRV Programs funded bv Minnesota Housinq NSP Proqram:
87 Program Administration 7�,6Q8
88 Acquisition, Rehabilitation, Clearance, Redevelopment
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• Think Healthy and Green Marketability
• Strategic Acquisition
($203,200 must be used for families at 50% or less of
Median income)
CRV Proqrams funded bv Minnesota Housinq NSP Proqram:
Twin Cities Habitat for Humanity $
• Acquisition
• Rehabilitation
• Clearance
• Redevelopment
Total
$
273,522
455, 870
390,000
6,349,780
Adopted by Council: Date ��f�f,�j�jJG
Adoption Certified by Council Secretary
BY �! (� ,2
Approved yo : Date Z�j p
B �
Re uested b De artment of.
Plannin & Econo 'c evel ment
By:
Form Approv d, i A� e��
� �
By:
Form Approved by Mayor for Subm�ssion to Council
B �_ � � /��0�6�
Approved by the pffice of Financial Services
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� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
DepartmenVOfficelCouncil: ' Datelnitiated: Green Sheet NO: 306 I��
PE - Planning & Economic �� 20.JAN-09
Contact Person & Phone:
Tom Sanchez
266-6617
Must Be on Council Agenda by (Date):
28-JAN-09
Doc. Type: �THER (DOESNT FIT ANY
CATEGORY)
E-Document Required: N
Document Contact:
Contact Phone:
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Total # of Sig Pages _(Clip All L oca ti ons f or Sign
Action Requested:
Appcoval of the attached Resolution which authorizes the City to submit Neighboxhood Stabilization Pmgram Appl�cat�on to
Minnesota Housing.
� Recommendations: Approve (A) or Reject (R)
' Planning Commission
CIB Committee
Civil Serv�ce Commission
Personal Service Contrects Must Answer the Following Questions:
1. Has this person/firm ever worked under a contract for this department?
Yes No
2. Has this person�rm ever been a city employee?
Yes No
3. Dces this personlfirm possess a skill not normally possessed by any
current city employee?
Yes No
F�[plain all yes answers on separate sheet and attach to green sheet.
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Initiating Problem, Issues, OppoRunity (Who, What, When, Where, Why}:
! Minnesota Housing received an allocation of Neighborhood Stabilization Rogram (NSP) funds to address abandoned tind foreclosed
i propemes. A portion of this funding is assigned to the Ctiy of St. Paul snbject to submitting application for fundmg.
' Advanfages If Approved:
�, The Ciry will receive the NSP funding after Minnesota Housing appioves the funding application.
'� Oisadva�tages tf Approved:
None. �
��, DisadvanWges If Not Approved:
i The City will not receive the NSP funding.
Total Amount of $0.0�
Transaction:
Fundin9 source: Neighborhood Stabilization
Program
' Financial information:
(EXplain}
CosVRevenue Budgeted: Y
Activity Number.
January 20, 2009 2:09 PM Page 1