HomeMy WebLinkAbout2009-06-09 - AGENDA REPORTS - NEIGHBORHOOD STABILIZATION (2)i
Agenda Item:
CITY OF SANTA CLARITA
JOINT CITY COUNCIL / REDEVELOPMENT AGENCY
AGENDA REPORT
City Manager Approval:
PUBLIC HEARING Item to be presented by: Armine Chaparyan
DATE: June 9, 2009
SUBJECT: CITY COUNCIL AND REDEVELOPMENT AGENCY JOINT
PUBLIC HEARING AND ADOPTION OF RESOLUTIONS
APPROVING THE NEIGHBORHOOD STABILIZATION GRANT
APPLICATION FUNDED THROUGH THE HOUSING AND
ECONOMIC RECOVERY ACT
DEPARTMENT: Community Development
RECOMMENDED ACTION
City Council: Conduct a public hearing and adopt a resolution approving an application for
Neighborhood Stabilization Program Funding.
Redevelopment Agency: Conduct a public hearing and adopt a resolution to execute a
Sub -Recipient Agreement to implement the NSP program and leverage approximately $5 million
in Redevelopment housing bond -proceeds with the City's application for Neighborhood
Stabilization Program Funding.
BACKGROUND
On February 17, 2009, President Barack Obama signed into law the American Recovery and
Reinvestment Act (ARRA) of 2009. This national stimulus package included $2.0 billion in
funding for the Neighborhood Stabilization Program (NSP). The NSP provides grants to state
and local governments to acquire and rehabilitate foreclosed/abandoned homes, and resell them
as affordable housing. The State of California Department of Housing and Community
Development (HCD) has announced the availability of $99,641,218 in funding available through
NSP. As part of a formula allocation, the City of Santa Clarita qualifies to apply for $1,187,003
from this program.
Adopted: O -Y O
The purpose of NSP is to assist in the redevelopment of abandoned and foreclosed homes and the
following activities may be performed under this program:
• Establish financing mechanisms for purchase and redevelopment of foreclosed -upon
homes and residential properties, including such mechanisms as soft -second, loan loss
reserves, and shared -equity loans for low -and -moderate -income homebuyers;
• Purchase and rehabilitate homes and residential properties that have been abandoned or
foreclosed upon, in order to sell, rent, or redevelop such homes and properties;
• Establish land banks for homes that have been foreclosed upon;
• Demolish blighted structures; and
• Redevelop demolished or vacant properties (also includes using funds for site
acquisition).
While NSP funds can be used to acquire and rehabilitate foreclosed or abandoned homes, the use
of NSP funds for redevelopment and demolition meets State program requirements for project
readiness and expenditure of funds in the area of greatest need. The City's application for NSP
funds is strengthened by designating program activities that can meet these strict guidelines. The
City of Santa Clarita is submitting an application for the NSP funds to be utilized to
acquire/redevelop demolished or vacant properties and demolish blighted structures in Old Town
Newhall, as part of the long-term implementation of the Downtown Newhall Specific Plan,
adopted by the City Council in December, 2005.
As part of the application process for NSP, a Sub -Recipient Agreement will need to be executed
between the City of Santa Clarita and the Redevelopment Agency. The Sub -Recipient
Agreement will allow the Agency to implement the NSP program.
The application for funding is due to HCD by June 15, 2009. There will be a second round of
NSP funds allocated through a competitive federal funding process. The City and Redevelopment
Agency are currently exploring potential projects/activities that may qualify for funding and also
be competitive at the federal level. The minimum threshold for applications is $5 million.
On April 28, 2009, the City Council unanimously approved the 21 -Point Business Plan for
Progress, a broad -reaching economic development stimulus program to strengthen our local
economy for both the short and long-term. The 21 -Point Business Plan for Progress will enhance
local business partnerships, encourage quality job creation in the area through business retention,
expansion and attraction, as well as bolster retail spending and attract external dollars to the
community. This Neighborhood Stabilization Program is one component of the 21 -Point
Business Plan for Progress which will help stabilize neighborhoods affected by the housing and
foreclosure crisis.
ALTERNATIVE ACTIONS
Other action as determined by the City Council.
FISCAL IMPACT
There is no local match requirement by NSP. The Redevelopment Agency will commit
approximately $5 million in housing bond -proceeds to leverage with NSP funds to
acquire/redevelop demolished or vacant properties and demolish blighted structures in Old Town
Newhall.
ATTACHMENTS
Resolution - City Council
Resolution - Redevelopment Agency
Notice of Public Hearing
RESOLUTION 09-
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA CLARITA, CALIFORNIA, APPROVING AN APPLICATION FOR
FUNDING AND THE EXECUTION OF A GRANT AGREEMENT AND ANY
AMENDMENTS THERETO FROM THE STATE OF CALIFORNIA NEIGHBORHOOD
STABILIZATION PROGRAM (NSP)
WHEREAS, on February 17, 2009, President Barack Obama signed into law the
American Recovery and Reinvestment Act ("ARRA") of 2009, included $2.0 billion in funding
for the Neighborhood Stabilization Program ("NSP");
WHEREAS, the State of California Department of Housing and Community
Development ("HCD") has announced the availability of $99,641,218 in funding available
through NSP;
WHEREAS, the City of Santa Clarita ("City") qualifies to apply for $1,187,003 from this
program.
NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby
resolve as follows:
SECTION 1. The City Council authorizes submission of an application to the State of
California Department of Housing and Community Development for the Neighborhood
Stabilization Program.
SECTION 2. The City Council approves an application and its contents for up to
$1,187,003 to be utilized to acquire/redevelop demolished or vacant properties and demolish
blighted structures in the areas of greatest need as identified by the Department of Housing and
Urban Development (HUD). Potential locations include Census Tracts 920038, 920035, 920029,
920023, or 920335 within the City of Santa Clarita.
If any additional NSP funding becomes available at a later date, the City of Santa Clarita is
authorized to apply for, and/or accept funding, up to $2,000,000. Any additional NSP funding
will be used in accordance with funding requirements established by the State of California
Neighborhood Stabilization Program.
SECTION 3. The City Council has determined that federal Citizen Participation
requirements were met during the development of this application.
SECTION 4. The City Council hereby acknowledges the commitment of Redevelopment
Agency housing bond proceeds approximately in the amount of $5,000,000 to be used as
leverage with the City's application.
SECTION 5. The City Council hereby approves the execution of a Sub -Recipient
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Agreement between the City of Santa Clarita and the Redevelopment Agency of the City of Santa
Clarita (Agency) as part of the NSP application for the Agency to implement the NSP program.
SECTION 6. The City Manager and or his designee is hereby authorized and directed to
act on the City's behalf in all matters pertaining to this application.
SECTION 7. If the application is approved, the City Manager and or his designee is
authorized to enter into and sign the standard grant agreement, and any subsequent amendments
thereto, with the State of California for the purposes of this grant.
SECTION 8. If the application is approved, the City Manager and/or Community
Development Director is/are authorized to sign Fund Requests and other required reporting
forms.
SECTION 9. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this day of , 2009.
ATTEST:
CITY CLERK
2
MAYOR
S
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA)
I, Sharon L. Dawson, MMC, City Clerk of the City of Santa Clarita, do hereby certify that
the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a
regular meeting thereof, held on the day of , 2009, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
CITY CLERK
'rI
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
CERTIFICATION OF
CITY COUNCIL RESOLUTION
I, Sharon L. Dawson, City Clerk of the City of Santa Clarita, do hereby certify that this is a true
and correct copy of the original Resolution 09- adopted by the City Council of the City of
Santa Clarita, California on , 2009, which is now on file in my office.
Witness my hand and seal of the City of Santa Clarita, California, this day of
12009.
Sharon L. Dawson, MMC
City Clerk
By
Susan Caputo, CMC
Deputy City Clerk
El
%I
0
RESOLUTION 09-
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE
CITY OF SANTA CLARITA, CALIFORNIA, APPROVING THE EXECUTION OF A
SUB -RECIPIENT AGREEMENT TO IMPLEMENT THE NEIGHBORHOOD
STABILIZATION PROGRAM (NSP) AND LEVERAGE $5 MILLION IN HOUSING BOND
PROCEEDS TO SUPPORT THE CITY'S APPLICATION FOR NSP FUNDS
WHEREAS, on February 17, 2009, President Barack Obama signed into law the
American Recovery and Reinvestment Act ("ARRA") of 2009, included $2.0 billion in funding
for the Neighborhood Stabilization Program ("NSP");
WHEREAS, the State of California Department of Housing and Community
Development ("HCD") has announced the availability of $99,641,218 in funding available
through NSP;
WHEREAS, the City of Santa Clarita ("City") qualifies to apply for $1,187,003 from this
program.
NOW, THEREFORE, the Redevelopment Agency of the City of Santa Clarita does
hereby resolve as follows:
SECTION 1. The Redevelopment Agency agrees to be the Sub -Recipient responsible
for administration of the City of Santa Clarita's NSP grant once approved by the State of
California Department of Housing and Community Development.
SECTION 2. The Redevelopment Agency approves the execution of a Sub -Recipient
Agreement with the City of Santa Clarita as part of the NSP application for the Agency to
implement the NSP program.
If any additional NSP funding becomes available at a later date to the City of Santa Clarita, the
Redevelopment Agency agrees to be the Sub -Recipient for those funds as well. Any additional
NSP funding will be used in accordance with funding requirements established by the State of
California Neighborhood Stabilization Program.
SECTION 3. The Redevelopment Agency will be responsible for complying with a
scope of service, performance measures, staffing, performance monitoring and meeting all
requirements of the State of California Neighborhood Stabilization Program.
SECTION 4. The Redevelopment Agency hereby commits Redevelopment Agency
housing bond proceeds approximately in the amount of $5,000,000 to be used as leverage with
the City's application.
SECTION 5. The Agency Secretary shall certify to the adoption of this Resolution.
•
PASSED, APPROVED, AND ADOPTED this day of , 2009.
BOARD CHAIR
ATTEST:
AGENCY SECRETARY
rA
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA)
I, Sharon L. Dawson, MMC, City Clerk of the City of Santa Clarita, do hereby certify that
the foregoing Resolution was duly adopted by the Redevelopment Agency of the City of Santa
Clarita at a regular meeting thereof, held on the day of , 2009, by the following
vote:
AYES: AGENCYMEMBERS:
NOES: AGENCYMEMBERS:
ABSENT: AGENCYMEMBERS:
AGENCY SECRETARY
/o
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
CERTIFICATION OF
REDEVELOPMENT AGENCY RESOLUTION
I, Sharon L. Dawson, City Clerk of the City of Santa Clarita, do hereby certify that this is a true
and correct copy of the original Resolution 09- adopted by the Redevelopment Agency of the
City of Santa Clarita, California on , 2009, which is now on file in my office.
Witness my hand and seal of the City of Santa Clarita, California, this _ day of
, 2009.
Sharon L. Dawson, MMC
City Clerk
By
Susan Caputo, CMC
Deputy City Clerk
2
Notice of Public Hearing to Apply for
Neighborhood Stabilization Program (NSP) Funding
The City Council of the City of Santa Clarita will conduct a public hearing on June 9,
2009 at 6 p.m. in the Santa Clarita City Hall Council Chambers, 23920 Valencia Blvd.,
Santa Clarita, CA 91355 to discuss the opportunities for NSP funding from the State of
California.
The City of Santa Clarita is applying for a grant amount of up to $1,187,003 under the
NSP Allocation for the acquisition of properties to be utilized for future redevelopment
activities. If additional monies become available, the City of Santa Clarita will apply for
the maximum available under the NSP Allocation. Additional NSP monies will be used
for eligible activities which may include; the establishment of financing mechanisms for
the purchase and redevelopment of foreclosed upon homes, the purchase and
rehabilitation of abandoned or foreclosed upon homes, establishment of land banks for
homes that have been foreclosed upon, demolition of blighted structures, or the
redevelopment of demolished or vacant properties.
All activities described above will take place in the areas of greatest need as identified by
the Department of Housing and Urban Development (HUD). Potential locations include
Census Tracts 920038, 920035, 920029, 920023, or 920335.
If you are unable to attend the public hearing, you may direct written comments prior to
the date of the hearing to the City of Santa Clarita, Community Development
Department, Redevelopment Division, 23920 Valencia Blvd., Suite 302, Santa Clarita,
CA 91355. Information may be obtained, or a public file on NSP activities may be
reviewed, at the above address between the hours of 8:00 a.m. and 5:00 p.m. on
weekdays. The Redevelopment Division can be contacted at 661.286.4141 or by email at
redevelopment(a)santa-clarita. com.
If you plan on attending the public hearing and need a special accommodation because of
a sensory or mobility impairment/disability, or have a need for an interpreter, please
contact the Redevelopment Division at 661.286.4141 to arrange for those
accommodations to be made. Notification 48 hours prior to the meeting will enable the
City to make reasonable accommodations to assure accessibility at the meeting.
The City of Santa Clarita promotes fair housing and makes all programs available to low -
and moderate -income families regardless of age, race, color, religion, sex, national origin,
sexual preference, marital status, or disability.
Para mas informacion, o si necesita asistencia para atender las reuniones comunitarias,
pregunte por Maggie Sanchez, (661) 255-4330.
Published on: Monday, June 1, 2009
Published in: The Signal