3A Public Hearing 2009 0406 - Laserfiche WebLink

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Joint Agreement for the Neighborhood Stabilization Program 3 April 6, 2009 subprime mortgage related loan, and areas identified by the State as likely to face a significant rise in the rate of home foreclosures. NSP funds must target individuals and families whose incomes do not exceed 120 percent of area median income. San Leandro will work with the other cities participating in the joint agreement to decide how to best use the NSP funds in each city. The activities that maybe undertaken using NSP grant funds include: 1. The establishment of financing mechanisms for the purchase and redevelopment of foreclosed homes and residential properties, including such mechanisms assort-seconds, loan loss reserves, and shared-equity loans for low-, moderate- and middle-income homebuyers; 2. The purchase and rehabilitation of homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and properties; 3. The establishment of land banks for homes that have been foreclosed upon; 4. The demolishment of blighted structures; and 5. The redevelopment of demolished or vacant properties. Because of the high cost of land and housing in Alameda County and the small Tier 2 formula allocations for each of the five cities, it maybe challenging for each city to have substantial impact in addressing foreclosed properties in their communities. Staff from each city have discussed pooling the $23 million in NSP funds (if HCD approves the joint application) and making permanent affordable rental housing proposals that further the Alameda County Everyone. Home Plan goals and objectives a priority funding criteria. All five cities have formally endorsed the county-wide Everyone Home Plan to end chronic homelessness. Key reasons for furthering the Everyone Home Plan with NSP funds include: 1) both NSP and Everyone Home Plan reflect strong regional cooperative efforts and 2) pooling funds to acquire a larger multifamily building or piece of vacant land would have a more positively noticeable neighborhood impact. Citizen Participation Process HCD has developed a modified citizen participation plan (based on its HUD Consolidated Plan version) that governs the process for determining public input for the Neighborhood Stabilization Program (NSP) activities. The goal of the plan is to inform citizens about the opportunity for Tier 2 cities to jointly apply for federal funding and to obtain public input on what NSP eligible activities as well as local priorities should be included in the joint funding application to HCD. Each Tier 2 city that is participating in a joint agreement must hold a first public hearing to review the program design phase, including which eligible NSP projects or activities to apply. A second public hearing will also be required to review the joint application submittal and will be held after the application is prepared and before it is submitted to HCD. The City of Livermore is currently awaiting determination from HCD as to whether it (as lead entity of the joint agreement) must hold a second public hearing or if all the participating cities in the joint agreement must each hold a second public hearing to review and approve the joint application. Current City Council Policy N/A Previous City Council Action(s) N/A