TITLE
Recommendation to approve the amendment to the Fiscal Year
2010 - 2011 Action Plan incorporating the Neighborhood Stabilization Program 3 (NSP3); authorize City Manager to execute all necessary documents with the United States Department of Housing and Urban Development (HUD) to receive NSP3 funds in the amount of $1,567,935, and all documents for the City related to acceptance of the grant award, NSP3 purchase/sale agreements, loan documents and all related documents for NSP3 funded transactions; and increase appropriations in the Community Development Grants Fund (SR 150) in the Department of Development Services (DS) by $1,567,935. (Citywide)
DISCUSSION
In order to receive Community Development Block Grant (CDBG) funding from HUD, the City of Long Beach prepares an annual Action Plan that describes how funding for low- and moderate-income residents will be used. On July 13, 2010, the City Council approved the Fiscal Year 2011 (FY 11) Action Plan. This FY 11 Action Plan is the fifth annual implementation plan under the seven-year 2005-2012 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- and moderate-income Long Beach residents.
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 provided an additional $1 billion for the Neighborhood Stabilization Program (NSP) that was originally established under the Housing and Economic Recovery Act of 2008. A third round of NSP funding, the additional entitlement provided by the Dodd-Frank Act, is known as NSP3. A summary of NSP3 regulations is provided (Attachment A). Pursuant to the Act, the City is eligible to receive an additional $1,567,935 of federal funds allocated to NSP3. Because this is a new entitlement, the City must amend the FY 11 Action Plan in order to participate in NSP3.
NSP3 is intended to expand upon the activities of NSP1 and ...
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