3A Public Hearing 2009 0406 - Laserfiche WebLink

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Joint Agreement for the Neighborhood Stabilization Program 2 Apri16, 2009 allocation because of less severe foreclosure needs. The NSP funding formula provides direct funding to counties and cities with the highest foreclosure rates, sub-prime mortgage activities, and probability of increased foreclosures. In general, counties and cities were divided into two funding categories: Tier 1 (local governments receiving over $ l million under the NSP funding formula) or Tier 2 (receiving less than $1 million). In Alameda County, the cities of Oakland and Hayward were designated as Tier 1 along with the County itself, while the cities of Alameda, Berkeley, Fremont, Livermore, San Leandro, and Union City were designated as Tier 2 as shown in the table below. San Leandro's formula share is about $559,000, but the city cannot access these funds without the joint agreement and application submittal to HCD. State Funded NSP-Eligible Tier 2 Cities Alameda $113,566 Berkele $177,3 3 5 Fremont $638,964 Livermore $3 56,115 San Leandro $559,007 Union City $499,074 Tier 2 totals: $2,344,060 DISCUSSION In order to apply to HCD for NSP funds, Tier 2 cities within the same county must enter into a joint agreement to reach the minimum threshold of $1 million in NSP funds. If approved, the City will then enter into a joint agreement with the cities of Alameda, Berkeley, Fremont, Livermore, and Union City. Along with San Leandro, the other five cities are taking the joint agreement (see Attachment A) before their City Councils for approval in March and April. After approval of the joint agreement, the City of Livermore will submit an application to the State for NSP funds on behalf of San Leandro and the other remaining participating cities. The City of Livermore will act as the lead entity for the joint agreement because it has the staffing capacity and to streamline administration among the participating cities. If HCD approves the joint application, Livermore will become the direct NSP grant recipient while the other cities including San Leandro will become subrecipients to the City of Livermore through the joint agreement. Consistent with HUD regulations, Livermore must assume responsibility for administering the State NSP grant on behalf of all entities in the joint agreement and to comply with applicable program requirements. As the grant recipient, Livermore will apply to the State on behalf of the participating cities through a Notice of Funding Availability (NOFA) application. It is anticipated that the State will release its NOFA in late April to early May. The State requires that NSP funds be made available, as mandated by HUD, to address the problem of abandoned and foreclosed homes and be targeted to areas based on greatest need, including those with the greatest percentage of home foreclosures, highest percentage of homes financed by a