TITLE
Recommendation to approve the amendment to Fiscal Year 2008 - 2009 Action Plan incorporating the Neighborhood Stabilization Program (NSP); authorize City Manager to execute all necessary documents with the U.S. Department of Housing and Urban Development (HUD) and other entities necessary to receive NSP funds; increase appropriations in the Community Development Grants Fund (SR 150) in the Department of Community Development (CD) by $5,070,310; and acquire and dispose of properties related to the NSP. (Citywide)
DISCUSSION
To receive Community Development Block Grant (CDBG) funding from HUD, the City of Long Beach prepares an annual Action Plan that describes how the funding for lowincome residents will be used. On July 15, 2008, the City Council approved the Fiscal Year 2009 (FY 09) Action Plan. This FY 09 Action Plan is the fourth annual implementation plan under the five-year 2005 - 2010 Consolidated Plan. The Plan is required to assess community needs and to prioritize the use of HUD grant funds received by the City to address identified needs by principally benefiting low income Long Beach residents.
Pursuant to Title III of the Housing and Economic Recovery Act of 2008 (HERA), HUD has established a new program called the Neighborhood Stabilization Program (NSP).
The City is eligible to receive an additional $5,070,310 of federal funds allocated to the NSP. A summary of the HERA and the NSP regulations is provided. (Attachment A) Because this is a new program, the City must amend the FY 09 Action Plan in order to participate in the NSP. (Attachment B)
The NSP is intended to stabilize neighborhoods and stem the decline of housing values.
The program calls for recipient cities and states to purchase and rehabilitate foreclosed or abandoned homes.' Once these properties are rehabilitated, the City can sell them to qualified buyers that earn 120 percent or less of the average median income (AMI), or choose to demolish the property and use for public b...
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