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Home My WebLink About2009-07-14 - AGENDA REPORTS - NEIGHBORHOOD STABILIZATION PGM (2)i Agenda Item:��!J�' CITY OF SANTA CLARITA JOINT CITY COUNCIL / REDEVELOPMENT AGENCY AGENDA REPORT City Manager Approval: CONSENT CALENDAR Item to be presented by: Armine Chaparyan DATE: July 14, 2009 SUBJECT: ADOPTION OF RESOLUTIONS FOR NEIGHBORHOOD STABILIZATION PROGRAM -2 APPLICATION DEPARTMENT: Community Development RECOMMENDED ACTION City Council adopt a resolution approving an application and designating program activities for Neighborhood Stabilization Program -2 funding. Redevelopment Agency: 1. Adopt a resolution to leverage housing bond proceeds up to $1.5 million with the City's application for Neighborhood Stabilization Program -2 funding. 2. Appropriate funds from the Redevelopment Agency housing fund balance in the amount of $25,000 to Expenditure Account 13401-5201.004. 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 $1.93 billion in funding for the Neighborhood Stabilization Program -2 (NSP -2). The NSP -2 provides competitive grants to state and local governments for the purpose of assisting in the redevelopment of abandoned and foreclosed homes. The NSP -2 allows for the same eligible activities as the State NSP -1 program just approved for grant submission at the June 9, 2009 City Council/Agency meeting. On June 23, 2009 the City Council and Redevelopment Agency approved Resolutions authorizing staff to submit an application for NSP -2 funding. -12 l The City and Redevelopment Agency (Agency) will submit an application to acquire/redevelop demolished or vacant properties and demolish blighted structures in the Newhall Redevelopment Project Area. A requirement of the grant is that 25% of any funds received must be utilized to purchase and redevelop abandoned or foreclosed upon homes or residential properties. To strengthen the City's grant application, staff has identified additional census tracts eligible to receive NSP -2 funding towards this purpose. The census tracts comprising the target geography include 920035; 920036; 920029; 920034; 920028; 920038; 920037; 920031; 920030; 920023; 920013; 920020; 920016; 920015; 920019; 920017; 920109; 920107; 920113; 920112; 920110; 920330; 920329; 920331; 920334; 920335; 920313; 920042; 910807; 910808; and 920312 within the City of Santa Clarita. To further strengthen the City's application staff has identified up to $1.5 million in Redevelopment Agency housing bond proceeds to commit and leverage towards this program. The City of Santa Clarita will also be the lead applicant for funding along with the Agency, a non-profit housing developer, and a for-profit housing developer contributing towards a consortium. The consortium structure will capitalize on each organization's past experience and organizational capacity to carry out the NSP -2 activities. ALTERNATIVE ACTIONS Other action as determined by the City Council or Redevelopment Agency. FISCAL IMPACT There is no local match requirement by NSP -2. The Redevelopment Agency will commit up to $1.5 million in housing bond proceeds to leverage with NSP -2 funds to acquire/redevelop demolished or vacant properties and demolish blighted structures in the Newhall Redevelopment Project Area. Funds totaling $25,000 from the Redevelopment Agency housing fund balance will be appropriated to begin the decertification process involving Caltrans. ATTACHMENTS Resolution - City Council Resolution - Redevelopment Agency FRA RESOLUTION 09- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, APPROVING AN APPLICATION FOR FUNDING, DESIGNATING PROGRAM ACTIVITIES, AND THE EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS THERETO FROM THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT NEIGHBORHOOD STABILIZATION PROGRAM -2 (NSP -2) WHEREAS, on February 17, 2009, President Barack Obama signed into law the American Recovery and Reinvestment Act ("ARRA") of 2009, included $1.93 billion in funding for the Neighborhood Stabilization Program -2 ("NSP -2"); WHEREAS, the U.S. Department of Housing and Urban Development ("HUD") has announced the availability of $1.93 billion in funding available through NSP -2; WHEREAS, the City of Santa Clarita ("City") qualifies to apply for $5 million 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 HUD for NSP -2 funds. SECTION 2. The City Council approves an application and its contents for a minimum of $5 million to be utilized to purchase and redevelop abandoned or foreclosed upon homes or residential properties; redevelop demolished or vacant properties; and for demolition*of blighted structures in the areas of greatest need as identified by HUD. Potential locations include Census Tracts 920035; 920036; 920029; 920034; 920028; 920038; 920037; 920031; 920030; 920023; 920013; 920020; 920016; 920015; 920019; 920017; 920109; 920107; 920113; 920112; 920110; 920330; 920329; 920331; 920334; 920335; 920313; 920042; 910807; 910808; and 920312 within the City of Santa Clarita. SECTION 3. The City Council hereby acknowledges the commitment of Redevelopment Agency housing bond proceeds up to $1.5 million to be used as leverage with the City's application. SECTION 4. The City Council hereby approves the execution of a Consortium Agreement between the City of Santa Clarita and the Redevelopment Agency of the City of Santa Clarita (Agency) as part of the NSP -2 application for the Agency to implement the NSP -2 program. SECTION 5. 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. R SECTION 6. The City Manager and or his designee is authorized to enter into and sign the standard grant agreement, and any subsequent amendments thereto, with HUD for the purposes of this grant. SECTION 7. The City Manager and/or Community Development Director is/are authorized to sign Fund Requests and other required reporting forms. SECTION 8. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED this day of 52009. ATTEST: CITY CLERK MAYOR 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 3 5— 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 52009. Sharon L. Dawson, MMC City Clerk By Susan Caputo, CMC Deputy City Clerk RESOLUTION 09- A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SANTA CLARITA, CALIFORNIA, APPROVING THE LEVERAGE OF UP TO $1.5 MILLION IN HOUSING BOND PROCEEDS TO SUPPORT THE CITY'S APPLICATION FOR NSP -2 FUNDS WHEREAS, on February 17, 2009, President Barack Obama signed into law the American Recovery and Reinvestment Act ("ARRA") of 2009, included $1.93 billion in funding for the Neighborhood Stabilization Program -2 ("NSP -2"); WHEREAS, the US Department of Housing and Urban Development ("HUD") has announced the availability of $1.93 billion in funding available through NSP -2; WHEREAS, the City of Santa Clarita ("City") qualifies to apply for $5 million from this program. NOW, THEREFORE, the Redevelopment Agency of the City of Santa Clarita does hereby resolve as follows: SECTION 1. The Redevelopment Agency approves the execution of a Consortium Agreement with the City of Santa Clarita as part of the NSP -2 application for the Agency to implement the NSP -2 program. SECTION 2. The Redevelopment Agency will be responsible for complying with a scope of service, performance measures, staffing, performance monitoring and meeting all requirements of HUD's NSP -2 program. SECTION 3. The Redevelopment Agency hereby commits Redevelopment Agency housing bond proceeds up to $1.5 million to be used as leverage with the City's application. SECTION 4. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED this day of , 2009. CHAIR ATTEST: SECRETARY STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA) I, Sharon L. Dawson, MMC, Secretary of the Redevelopment Agency 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: 2 SECRETARY STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) CERTIFICATION OF REDEVELOPMENT AGENCY RESOLUTION I, Sharon L. Dawson, Secretary of the Redevelopment Agency 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 Secretary By Susan Caputo, CMC Deputy Secretary 9