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Home My WebLink About2011 Ordinance No. 003ORDINANCE NO. ,2__ SERIES OF 2011 BY AUTHORITY COUNCIL BILL NO. 3 INTRODUCED BY COUNCIL MEMBER GILLIT AN ORDINANCE AlTTHORIZING TI!E PURCHASE OF TWO ADDITIONAL UNIDENTIFIED SINGLE-FAMILY , VA CANT, FORECLOSED PROPER TIES LOCATED IN 11{E CITY OF ENGLEWOOD, COLORADO TO FULFILL THE AMENDED NEIGHBORHOOD ST ADIL!ZA TION PROGRAM CONTRACT BETWEEN THE COLORADO DEPARTMENT OF LOCAL AFFAIRS AND THE CITY OF ENGLEWOOD, COLOR\DO. WHEREAS, the City Council oftbe City of Englewood, Colorado autl1orizc:<l au application 10 the Colorado Department of Local .AJfairs, Colorado Division of Housing, for a portion of Arapahoe County·s all,1calions ot'tbe federal Neighborhood Stabilization Program funds (NSPI) for funding Project Rebuild by the passage of Resolution No . 34, Series 2009; and WHEREAS, tl1e City of Englewood Project Rebuild was awarded 51,253,379 to purchase, rehabilitate , and sell single-family vacant, fo reclosed properties in elig,blc census tracts lo cated in the City of Englewood: and WHEREAS . the City Council of the City ofEn~lewood, Colorado authorized the execution of an intergove!1111tcntal contract for Neighborhood Stabilization Program grant funding between the Colorado Department of Local Affairs and the City of Englewoorl . Colorado which allowed the purchase of IO qualifying and then tbree additional properties for rehabitation under this program; and WHEREAS, generally, when real estate is owned by lenders and government holding agencies (e .g. FHA. VA, FNMA, etc.) they require closing dates to be set within 30 days of their acceptance of an offer to purchase or bid. With this shurl Lime frame it would be impossible to gain City Council approval for acquisition of individual s;_:e-specific properties given the 45-60 day ordin ance approval timeframe ; and WHEREAS , Section 72 of the Englewood Home Ruic Charter requ11es that real property may be sold, but only by ordinance, not using the emergency provision ; and WHEREAS. each property acquired for Project Rebuild will be brought before City Council as soon as possible 10 receive approval to sell each property to eligible buyers ; and WHEREAS, it is anticipated Council will approve a second ameodmelll to the NSPI Grant which will allow the City to retain the NSPI Grant Program Income funds until the program ends in 2013; and WHEREAS, Staff requests the City Council authorize the purchase of two (2) additional cuncntly w1idcnt ified qualifying houses with those retained funds . NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNC[L or THE CITY or ENGLEWOOD, COLOllADO , AS FOLLOWS: 9 b iii Sect ion I. The City Cowie ii or the City of Englewood, Colorndo hereby authorizes the purchuse of two (2) additional unidentified single-family, vacant, foreclosed propenic, located in the eli gible census tracts throughout the City of Englewood as a part of the NSPI contract with the Colo ra do Department of Local Affairs funded through the Neighborhood Stabil :zation Program <irn,:t (NSP1 Cirnnt). l:11roduecd; read in full, :md pa,;sed 011 first reading on the ~th day of hnu:iry , 2~11 . Published by tillc in the City'5 official newspnperon the 14th dny of fanuury, 2011 Published as a Bill for an Ordinance on th e City 's oflicial website beginning on the 5th day of January 2011 for thirty(30) days . Read by title and pas sed on final reading on the IS'" day of January, 2011. l'ubli shed hy title in the City's official ncwspapcras Ordinance No . i_, Series of 20 I I, nn 11·.e 2 I" clay of fanuory, 20 11. Publi shed by tillc on the Ci ty•~ oflici nl web.site hci;inn ing on 1hc I 1i 1 du y o f January, 201 I for 1hiny (JO ) day s. ~ 12 I' U Jc °'""''--Jill \Vi son. Mayor Pro Tcm I, Luucrishia A. Ellis , City Clerk of the City of En~lewood, Colorado , hereby certify that the above and foregoing is !true copy of the Ordinance passed on final reading and published by titl e as O rdinance No . .,L,_, Serie s of 201 I . / COUNCIL COMMt;NICATION Date: Agenda Item: Subject: January 4, 2011 11 a ii An Ordinance Authorizing the Purchase of two additional Single Family Houses Funded through the Neighborhood Stabilization Program Grant and the Program Income Reuse Plan Initiated By: Staff Source: Community Development Department Janet Grimmett, Housing Finance Specialist Harold J. Stitt, Senior Planner COUNCIL GOAL ANO PREVIOUS COUNCIL ACTION City Council approved Resolution 34, Series oi 2009 on March 23, 2009 authorizing the Cc,:nmunity Developme nt Deµart rnent tu file an ,µµliLdlion for Federal funding through th e Neighborhood Stab ilizati on Pr og ram (NS Pl); Ordinance 37, Series of 2009, approve d on September 21, 2009, authorizing the Neighborhood Stabilization Program (NSPl I Grant Agreement; and Ordinance 49, Series of 2009, approved on November 2, 2009, authorizing the purcha se oi ten houses in fulfillment oi the NSPl conlracl; Resolution 35, Series of 2010, approved a transfer and supplemen:al appropriation of long term asset reserve funds (LTARI to fund improvements relat ed to th e Feci eral Neighborhood Stab ilization Program (NSPl) projec.; an d Ordinance 27, Series of 2010, amended the NSPl budget to add $500,000 to the grant amount and authorizing the purc~ase of up to three additional for eclosed single-family homes . RECOMMENDED ACTION Staff re co mmends that Council approve a bill for an ordinance authorizing the purchase of up to two additional unidentified bank-owned foreclosed single-family residences located in the eligible census t racts through o ut the City of Englewood to fuliill the NSPl contract with the Colorado Department oi Local Affairs. BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED In 2008, the Federal govem111ent pa,sed th e I l ousing and [conomic Recovery Act (HERA), the first new legislation in a gene ,ati on for housing and economic development. HERA appropriated $3.92 billion for the Neighborhood Stabilization Program (NS Pl) to support the acquisition, rehabilitation, or demolition of foreclosed and abandoned properties. The State of Colorado rece ived a t otal of $53 million in NSPl fund s of w hich $37.9 is directly .dministe red by the State. On March 30, 2009, the Community Development Department submitted an application to th e Colorado Department of Loc al Affairs, Division 'lf Housing for NSPl funding for Project Rebuild. Project Rebui .d will rurchase and rehabilitate ten (10) ahandoned or foreclosed single-family properties in the City 's ten eligible census tracts . The State /-lousing Board approved the Project Rebuild NS?l apµlicatiun 011 July 14, 2009. The Board aw,1r1.h.:d the City $1,253,379. DOH committed iln additional $!jQ0,000 for property at:4uisilio11, This amo unt CO\'ered the co st of purchasing thr ee more bank owned foreclosed humes. The Colo,ado Division of Housing (DOH) requested that Community Development /-lousing staff provide a Pr ogram In come Reuse Plan lo permit tl1c reuse ~f projected program income derived fr om the sa le or NSP units for the acquisition, rehab, and sale or ;,clditional units by /Yarch 10. 2012 . To date, ProJect Reb11ild has acquired ele v..n (11) sinnle-farnil y vacant foredo<Pd prnp,·•rti ns lnrat erl in thu eligibl e census tracts . Th o current NSPl project calls for the acqu isiti on, rehab, ,md sale of thirteen (13) foreclosea sinele -family prnpertiP.s. With the approval of the 1'SP1 Program Income Reuse Plan, it i; anticipated tha t two (2) additional unidentified properties could be purchased. T:i is would bring th e t otal o f purchased properties lo fifteen 11 S). Generally, Real Estate Owned (REO) lend ers and governmenl holding agencies (e.g. FHA, VA, FNMA, etc.), r0 quire closing dates to be set within 30 d,1ys of th ei r acceptance oi an offer t o purchase or bid. Given tbs short time frame to close on a pr3perty, it w~uld be impossible ior stafi 1<, gai n Cou ncil approva l for acquisition of individ1.al site-speci fi c properties giver. the 45.;;o day ord inan ce approval tim eframe. Section n of the Home Ru le Chart er requires that real property may be sold, bul u 11ly by ordbance, no t using the emergency provision . Each property acquired lor Project Rebuild will be brought before Council as soon as possible to receive approval to sell ea c:1 property to eligible buyers. This w11I max11n 1ze the mark eting efforts . This process will expedite ch e subsequent sale and closing o f the property. FINANCIAL IMPACT [xisting Co,nmunity Developmer.: staff has the required cxputi!>c to acquire fo reclosed properties, provide rehabilitation , and sell the properties to eligible buyers . All acquisition and rehab expenses will be covered by the NSP I grant. LIST OF ATTACHMENTS PropnsPrl Rill fnr an Ordinance