To

Mayor and Council

Subject

Neighborhood Stabilization Program 1 & 3 Amendment

Initiator

Community Reinvestment

Recommendation

Approve the Amendment to the Neighborhood Stabilization Program 1&3 to allow \n \n for new development of single family rental housing. Authorize the City \n \n Manager to negotiate the Developer's Agreement and execute all require \n \n contracts and documents.

Approval

Pending

Background

The NSP1&3 programs are nearing completion. There is approximately $140,000 in

NSP3 funds and $1.4 million in program income remaining. Neighborworks has

agreed to donate the value of their property located in the Winterfield

neighborhood to construct new single family rental housing. This change in

direction for the program requires that an amendment to the plans be

completed. The amendment was advertised in the Ledger-Enquirer on January __,

2014 which began a 30 day public comment period. The 30 day period ends on

February __, 2014. To date ___ comments were received. A public hearing was

also held on February 6, 2014. ____ people attended the meeting. The

following comments were received:



By utilizing the remaining NSP funds in this way, it will eliminate the need

for continued monitoring and reinvestment of NSP funds in perpetuity. With a

shrinking Community Reinvestment staff, administrative functions must be

minimized wherever possible. ___ homes will be made available to income

qualified households. In addition, an area of disinvestment will experience a

new development.

Analysis

The project meets the NSP requirements and will expend the funds in a compliant

and responsible manner.

Financial Considerations

No general funds are allocated to the project.

Projected Annual Fiscal Impact Statement

None.

Legal Considerations

Council must approve the amendment to the plan prior to submittal to HUD.

Recommendations/ Actions

Approve the Amendment to the Neighborhood Stabilization Program 1&3 to allow

for new development of single family rental housing. Authorize the City

Manager to negotiate the Developer's Agreement and execute all require

contracts and documents.

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