Agenda Item # 2
Columbus Consolidated Government
Council Meeting
February 22, 2011
Agenda Report # 601
TO: Mayor and Councilors
SUBJECT: Neighborhood Stabilization Program 3 (NSP3)
INITIATED BY: Department of Community Reinvestment
Recommendation: Approval is requested for the filing of a substantial
amendment to the FY2010 Annual Action Plan for entitlement funding from the
Neighborhood Stabilization Program 3 (NSP3) from the Department of Housing and
Urban Development (HUD).
Background: The Housing and Economic Recovery Act (HERA) 2008 created the
Neighborhood Stabilization Program (NSP). The funding provided emergency
assistance for the redevelopment of abandoned and/or foreclosed homes. HERA
provided $3.92 billion to states and localities to assist in redevelopment
efforts. The City of Columbus was allocated $3,117,039 in the first round of
NSP funding. Through our partner agencies Neighborworks and the Housing
Authority of Columbus, Georgia the original NSP program successfully acquired
and refurbished 30 of foreclosed homes to be placed on the market for
low/moderate income housing.
The Wall Street Reform and Economic Recovery Act of 2010 provides for $970
million in additional funds for the new NSP 3 program. In order to receive
additional funding, the City must submit a substantial amendment to its FY2010
Annual Action Plan. The Annual Action Plan is a document required by the
Department of Housing and Urban Development (HUD) illustrating to HUD and the
citizens of Columbus, Georgia how our entitlement funds will be expended. A
public hearing on the amendment was conducting on February 11, 2011. The
notice of public hearing was advertised in the local newspaper and was placed
on the City's website. There was a 15 day public comment period following the
public hearing. The public comment period will expire on February 25, 2011.
After adopting the amendment to the Annual Action Plan, the City will contract
with housing providers through sub-recipient agreements to acquire and
rehabilitate up to eight abandon/foreclosed homes. The program will also
provide down payment assistance for income qualified individuals.
Analysis: The City of Columbus received an allocation of $1,128,174 for the
NSP3 Program. The City has identified areas of greatest need where these funds
will be distributed to provide homeownership opportunities for individuals and
families whose incomes do not exceed 120% of area median income.
The City of Columbus, Georgia, through sub recipient agreements, will allocate
funds from its NSP3 award as follows:
Housing Authority of Columbus, Georgia and NeighborWorks Columbus to purchase 8
single family residential properties that are foreclosed and/or abandoned and
are in the identified targeted areas.
These properties will be rehabilitated and sold to individuals and families who
will receive homeownership assistance for the purchase of such homes and whose
income does not exceed 120% of area median income.
The City will take a second mortgage position for the amount of the NSP grant
funds contributed to the loan through down payment assistance to insure
continued affordability.
Financial Considerations: The City will receive an entitlement of $1,128,174
from the Neighborhood Stabilization Program 3 (NSP3). These funds will be
expended through sub-recipient agreements with Neighborworks and the Columbus
Housing Authority. All funds must be allocated within 36 months of the award
of the funding to the City.
Legal Considerations: Council must approve the substantial amendment to
receive funding.
Projected Annual Fiscal Impact Statement: No City funds will be expended.
Recommendations: Approve the resolution authorizing the filing of a
substantial amendment to the Annual Action Plan for the receipt of Neighborhood
Stabilization Program 3 (NSP3) funding from the Department of Housing and Urban
Development (HUD).
A RESOLUTION
NO. _____
A RESOLUTION AUTHORIZING THE FILING OF A SUBSTANTIAL AMENDMENT TO THE
FY2010 ANNUAL ACTION PLAN FOR ENTITLEMENT FUNDING UNDER THE NEIGHBORHOOD
STABILIZATION PROGRAM 3 (NSP3) FROM THE DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT (HUD), AND TO ACCEPT AN ENTITLEMENT AWARD OF $1,128,174, OR AS
OTHERWISE AWARDED, AND AMEND THE NSP FUND (FUND 231) BY THE AMOUNT AWARDED.
WHEREAS, the Housing and Economic Recovery Act (HERA), 2008 created the
Neighborhood Stabilization Program (NSP) and provided $3.92 billion to states
and localities to assist in redevelopment efforts of abandoned and foreclosed
homes and The Wall Street Reform and Economic Recovery Act of 2010 provides for
$970 million in additional NSP funds; and,
WHEREAS, a Substantial Amendment to the FY2010 Annual Action Plan for the
Consolidated Government of Columbus, Georgia has been developed as prescribed
by the Federal Regulations of the Department of Housing and Urban Development
(HUD); and,
WHEREAS, the Consolidated Government of Columbus, Georgia will receive an
entitlement of $1,128,174 under the Neighborhood Stabilization Program 3
(NSP3); and,
WHEREAS, the City has identified areas of greatest need where these funds will
be distributed to provide homeownership opportunities for individuals and
families whose incomes do not exceed 120% of area median income.
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA, HEREBY RESOLVES AS FOLLOWS:
That the Substantial Amendment to the Annual Action Plan for Neighborhood
Stabilization Program 3 (NSP3) is hereby approved for filing with the
Department of Housing and Urban Development (HUD). We further authorize the
City Manager and/or his designee to execute all contracts, agreements and
understandings related to Neighborhood Stabilization Program 3 (NSP3).
Introduced at a regular meeting of the Council of Columbus, Georgia,
held the _________day of _____________, 2011 and adopted at said meeting by the
affirmative vote of ____________members of said Council.
Councilor Allen voting __________.
Councilor Baker voting __________.
Councilor Barnes voting __________.
Councilor Davis voting __________.
Councilor Henderson voting __________.
Councilor Huff voting __________.
Councilor McDaniel voting __________.
Councilor Thomas voting __________.
Councilor Turner Pugh voting __________.
Councilor Woodson voting __________.
_______________________________ ___________________________
Tiny B. Washington, Clerk of Council Teresa Pike Tomlinson, Mayor
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