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HomeMy WebLinkAboutSummary FormAGENDA ITEM SUMMARY FORM FILE ID: 14-00565 Date: 06/06/2014 Commission Meeting Date: 07/24/2014 Requesting Department: Community & Economic Development District Impacted: 1,2,3,4, 5 Type: ® Resolution Ordinance n Emergency Ordinance Discussion Item n Other Subject: ALLOCATION OF NEIGHBORHOOD STABILIZATION PROGRAM 1 PROGRAM INCOME FUNDS Purpose of Item: A RESOLUTION OF THE MIAMI CITY COMMISSION AUTHORIZING THE ALLOCATION OF NEIGHBORHOOD STABILIZATION PROGRAM 1 ("NSP1"), PROGRAM INCOME IN THE TOTAL AMOUNT OF $501,337, ALLOCATING SAID FUNDS, TO DEPARTMENT OF COMMUNITY & ECONOMIC DEVELOPMENT FOR THE ADMINISTRATION OF THE NSP1 PROGRAM IN THE AMOUNT OF $50,134 AND UP TO THE AMOUNT OF $451,203 FOR THE CONSTRUCTION OF NEW AFFORDABLE HOMES AT THE CITY OF MIAMI OWNED SITES ; AUTHORIZING THE CITY MANAGER TO EXECUTE ALL NECESSARY DOCUMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, FOR SAID PURPOSE. Background Information: Please see attached Budget Impact Analysis NO Is this item related to revenue? YES Is this item an expenditure? If so, please identify funding source below. General Account No: Special Revenue Account No: TO BE DETERMINED CIP Project No: NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds? Start Up Capital Cost: Maintenance Cost: Total Fiscal Impact: $501,337 Final Approvals (SIGN AND DATE) CIP Budge If using or receiving capital funds Grants Purchasing Chief 6 r /eCity Manager Risk Management Dept. Director 6///74 Page 1 of 1 AGENDA ITEM SUMMARY FORM CONTINUED Background Information: On July 30, 2008, the President of the United States signed the Housing Economic Recovery Act of 2008 ("HERA"), which included the NSP, administered by HUD. The NSP provides targeted emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities. On September 26, 2008, the City was awarded $12,063,702 for the implementation of the NSP which provided emergency assistance to the City to acquire foreclosed properties that might otherwise become sources of abandonment and blight and rehabilitate, resell, or redevelop the properties to stabilize neighborhoods and stem the decline of house values of neighboring homes. Pursuant to Resolution No. 13-0489, adopted on December 12, 2013 the City Commission approved the allocation of NSP1 program income funds in the amount of $300,000 for the construction of new affordable homes at the City owned sites located at 1477 Northwest 60th Street, 1336 Northwest 60th Street, 5852 Northwest 13th Avenue, and 1497 Northwest 60th Street a/k/a 6005 Northwest 15th Avenue, Miami, Florida. An additional property located at 1544 NW 58 Terrace, Miami, Florida has been added to the Single Family Infill Program. The additional property was added at the request of Commissioner Hardemon at the December 12, 2013 meeting. In total, the Department will be constructing a total of fifteen (15) single family homes for an approximate amount of $2,948,147. These amounts have been more than anticipated because of the substantial security cost incurred during construction and the difficulty of attracting qualified buyers for some of the properties. Eight (8) homes have been sold so far and the remaining homes under construction are all under contract. The City has received additional "NSP1" program income for a total amount of $501,337. The City Administration recommends the allocation of Neighborhood Stabilization Program 1 ("NSP1") program income in the amount of $501,337 allocating said funds, to Department of Community & Economic Development to administer the NSP program in the amount of $50,134 and up to the amount of $451,203 for the construction of new affordable homes at the City of Miami owned sites.