HomeMy WebLinkAbout2011 Ordinance No. 034ORDINANCE NO . 3+
SEIUES OF 20 1 I -
BY AUTHORJTY
CO UN CLL BU.L NO . 37
INTRODU CE D OY COUNC IL
MEMBER WILSON
AK ORDIK ANCE AU TH ORIZING TH E PURC HASE OF FIVE ADDIT IONAL
VN IDENTIF I.ED SL\JG LE-FAMlL Y, VACANT, FOREC LOSED PR OP ERlTES LOC ATED IN
T HE C ITY O F ENGL EWOO D, CO LORADO TO FULFU.L THE AME'-fDED
NE IGHBOR.HOO D ST ABI.LIZ/\TION PROGRAM CONTllJ\CT BETWEE N THE
CO LORA DO DE PARTMEKT O F LO CAL A FFAIRS <\ND T HE c n·y OF EN GL F.WOOD ,
C LOR.ADO .
W I IERE AS, th e City Co un c il of the City o f Englewoo d, Co lora do au thori zed an ap :,lica ti on IO
lh c Cu lun.1 1.lu DqH1rtr11 L.:11l vf Luc ;:1( i\ ffo irs. Co\0 1ado D 1vi !i io11 of Housi.n g, fo r a po rt1 'J n of
Ara pahoe Co un ty's ,ll oca uons o f the Fede ra l Neigh borh oo d Stabi lizatio n Progra m f<:nds (NSP I)
for fund ing Projec t RcbLi lcl by th e pa ssage o f Reso lut io n No . 34. Se rie s 2009 ; and
WHER EA S, the Ci ty of Englewood Project Rebu ild wa s awarded $1.253 ,379 to pu rci.ase,
rc hab1l 11a1c, an d sell sin gle .fami ly \·ac ant. fo rc:;!os cd pro pc n ies in eli gib le cen sus tra cls loc.:.te d in
th e Ci ty of Englewood ; and
\V t LEREA S, the Cit y Co unc il of the Ci ty o f Englewood , Colorad n nu tho ri zcd the ex ecuti o n o f
an intergovernm en tal co mrac t for Ne ighborhood S1abiEu1tion Program grant fundi ng be tw ee n the
Colorado Depanmcnt o f Loca l Affair s anc the City of Englewood, Co lora do wh ich all owed th e
purd rn.sc of IO <]\l:lhfying :mrl th en 1hree :lcid itionr1 I pro pert ies for re lrnbit ati on und er this program;
and
WHEREAS, p_cnera ll y, whe n rea l estate is owned by lende rs and ,1ovcmmcn: holdin g agencies
(e.~. FHA, VA, FNMA, etc.) the y requi re closing date s 10 be se: wit ltin 30 days of their ac cept ance
o f an o ffer to purchase or bi d. \\lith thi s sho n time fnun c it w ould be imp ossib le to gain Ci 1y
Co un ci l ap prova l fo r ac qui sitio n of indi vid ual si te-spec ific prope-r11e s gi ven the 45 -60 day
ordinan ce ;1 pproval tim efra me; and
WHE REA S, Section 72 of th e Englew oo d .-Jome Ruic Chancr rcqtJirc s that rea l propcnv ·,,ay
be so ld , but on ly by orclinan cc, not using th e cn11.:rg cn cy pru vi:;i1.>11 , uml
WHERl:i\S. each propcny acquired for l'roJCC I Rclnn ld wil l be bro ugh t before City Coun c il as
soon as po ssib le to recei ve app ro val to s ell ench propert y to c li g ; le buyers: and
WHEREAS. Coun c il app,o veJ a secon d ,,,-.·ndm cnt !O the N~P I Gran t that allowed the C 11 y to
rc t.im 1lw NS P I Cfr :::nl Pro gra m Income fun c.;, ,:i :,1 ii 1h e prngram end s in 20 13: and
Wl·IEREAS , Cit y Coun ci. Autho ri ze<! •he purchase of two adtli uu 1rnl 111udc nll ricd Singk-
Fami l;. Vacant , Forecl os ed prope rties loc at ed in Eng lewood w ith th e passage of Ordi nan ce No. 3,
20 1 I ; and
9 bi
WHE I< E.1\S , the City ha s purchased I 11 hom,c!. anJ has ano th er under i:o ntrn ct fo : a tota l o l 15,
4 li:wc hc.:n sold . co1nrar.t!i arc pcn d.ng fo r 2 mor e ( Jne 1s sch edu led to close Jul ) I )th, and t h::
nthc 1 is sc hccl ulc\.l to cl ose Aur,"Js t llu'); therefor..: 10 homes arc curren tl y in inventory . and
\\I H ER.E A , t:,ff re111 :rc.1-. •li p fi1y f'mmc•I .i 111h,1ri1,e the pu n.:h:isc of li ve I 5) ncid1 111 1112 !
cun cnl ly u11idcntificd qun li f'y in g houses wit h those rc::1incd f:mcl s
NOW, TIIEREI OR f , BE IT O IW 1\INEC iJ\' TII E C ITY CO U NC IL OF 'I H E 'IT \' O F
EN GLEWUOD, COLOR ADO , 1\S 0 0 1..L(;\\'S.
S.:!c 11on I. I he City Co unc 1'. o t the Caty of En glewood, Co lorado herch y uuthor izc:• 1l1e
pmc]1:1 sc nf five (5) addi tional umdcn tJl i cd smgl::-lamily, vacant. foreclo sed pro pen 1. · luca tctl in
!h e ehJ.,:ib le t:cn sus tract,;; througho ut the Cit)' of En glewood as a part of the NSP1 coi ,.racl w11 h
1h1.: o lo radv Dc partm :::nt of Loca l Affairs fund ed throug h th e Nc1gh borlmod Stnb1 l11·11 1011
Prog ram Gra nt (NSP l Grnn li .
l111 ro duc cd 1 ren d in 1·u1I, ::md pa s!;t:d Lill fir st rc~1dmg on th e I 8th tl:i y :>f Ju ly, 201 1.
Pu hli !J li cd J1 y T ull: a~ ii 13 111 rm ,111 0 1d111=tm:.c Ill 1hc ·•i ty's 0fficrnl 11 cw-.pJpc1 ..,n 1hc ~2nd dny of
Ju ly. 20 11 .
Publi shed as J llill fo r illl O ~du 1;111 i.;c on the Cit y's official wcbs11c bcgm 11111 g nn the 20th da y of
July, W I I for 1h111 y (30 ) cloy s.
Re:id by titl e and pm:s c<l on fin;,! reading on the I st day of Auv ust. ~U 1 1.
Publi~hi.::d by title in the Ci1 y's o:'fi crn l ncws papn a1, Ordin,111ce. No li:, Se n e,; of 2011. on
the 5th <la)· o f /\ugu st. "0 11 .
Pub\i...,,Jn.:d by tit le o n the C1 1y's ofli c ial web site begi nning on thc Jrd da y of
Augus t, 20: ; fo r thiny (30) da ys
~>=' ~~r" ~g,.5-.::)
.ff ·cs·, , . //t'-(\ '"'" K wooa ,.,ro M,,o,
~"."'t'""'·c~
I, i.,c,ucrislt ia A Ell is, ity Clerk or the Ci:y or Eng \ewuod, Cu lora<lu , he, d,y c,,iti fy tlirtt the
above :.rn ! laregomg IS ~.,tru e co py l)f thc Urdman cc pass <XI on n n:1\ rcJding and published by
title as O di nonce No . :ir, Se rie, or 20 11 . _1P '--
~
COUN CIL COMMUN ICATION
Date: Agenda Item: Subject:
Jul y IR , 201 1 9 a I An Ordinance au thorizing the
purc hase of u~ to five addi 1i onal si ngle
fami ly h o uses funded through th e
N eighborhood Sta b 1hrnti on Pro gram
Grant and Prog ram In co me Re use Plan
Initiated By: Staff Source:
Comm unity D eve lopme nt Depa rt me nt lan et Grimmett, Housi ng Finance Specialis t
Har...1kl J Stitt, Se nio r r.lanne r
COUNCI L GOAL ANO PR EVIOUS CO U NCIL ACll (,.\J
City Co un c;I approved Reso lutio,, 34, Serie s o f 2009 on March 23 , 2009 au tho ri zing the Co mmunity
De,el opmen t Department to file ,,n applic ati on fo r r edera l fun din g thr o ugh t11e ,•.erghborhood
Stab iliza ti on Pr o gra m ('JS Pl); Ord:nan ce 3 i , Series o f 2009, arr,rovcd o n Seate mber 21, 2009,
au thorizi ng the Neighborhood Stab'lizatio n Pr ogra m (NS Pl ) Grant Agr eem ent ; and Orrlinan ce 49, Se rie s
of 20 09, ap proved o n -..J ove rn be r 2 200~, au thorizing the p ur ·h ase of ten h vu,es in ful fi ll ment o f th e
NSP I contra c t; Reso lu tion 35, Se ri es of 20 I 0 , app rc ved a t ra nsfe r and sc ppleme nta l appropriati on o f long
term asset res erve funds (LTAR ', to fund improvements re lated to th e Federa l Ne ighbo rh o od Stabilizatio n
Pr<.:g ram (NSPI) projec t; O,dinan ce 27, ene, of 20 10, amen c ed th e SPl budge t to add $500,000 to
the gra nt am ou nt and autho ri zi ng th e purcha se o f up to three additio nal fo reclosed single-fam ily ho me ,;
Ordinance 2, Se ri es of 2011 auth onz ing th e re tentio n and reuse o f mo nies co ll ected fr o m the sa le o t 'ISP
pr operties; anu O«'i n211ce J, Seri es o f 20 11 authorizing the purchase o f two addit iona l sinel e fami ly
homes .
REC OMMENDED ACTION
StJff recom m end s th at Cou ncil apprn v<" ;'\ hill fo1 i\11 ordinance aut horizinA the r.,urchase of up to five
additio nal u nidentifie d ban k-owned ioreclosed si n gle-fam il y res 1de·1ccs loca t d in the eli gible ce nsu s trac ts \
thr o:.igh ou t th e t.1ty o f Englewo1.. d to icliill th e NS Pl c.:u rll1dll dn l.! the Program In co me Rcu5e Pl~1 n with )
the Cnlo rado r>epa rtm ent o f Loca l Affair s.
BAC KGROUND, ANALYSIS, AND ALTERNATIV F.S IDENTI FI ED ·'}
In 2008, lh~ Federa l gove rnm en t passed th e Housing and Eco nomic Recove ry Ar t (HFRA), :he firs t new
legisla tion in a genera ti o n fo r ho usi ng and economic developme,t. H ERA approp riat ed SJ .92 bi lli o n for
the Neigh t o rhood StabiLation Pr og ram (N SP I ) to support th e acqu,s111 o n, rehab il1t ati on, o r demolitio n o
fore cl osed and abandon ed pro p ertie s. TI,e State oi Colorad o receive d a to tal $53 million in NSPl fu nds
of which $3 7.9 is directl y adm ini stered by th e State.
On March JO, 2009, the Community Deve lnpment D epartme nt su bmitt ed an applica tion to th e Co lorado
Depa rtm en t o f Loca l Affairs, Divisio n of H ou sing for NSPl iunding for l'roje :t Rebuild . Projec t Rebu i'd
will p •;rchase and rehab 1l1ta te ten (1 U) ,1bannon ed or foredos~<l ,i11g le-farnil v prope r.ie s •n thP City's ten
el ic}b le cPn(,u, tr;i.r t5
Th e Srn te Hous,ng Board ap :iroved th e Pr ojec t Rebu ild N SP I ,,pphcati on o n Ju ly 1,1, 2009. Th e Boa rd
,iwarcl ed th e C11y $1,253,379. D OH cornrn i l l ed an addi ti o n al S500,000 for properly acq ui,1 1ion. Th is
;irnrnmt rnvPr Pd tlw rns t o f r11 rr h ai.1nr, thr Pe more b ank owned forecl oseo homes Th e Colo ra do
Divi :;io n o f H o using (DO H) rcqu stc d th ot Community D eve lopm ent H o using s taff provide a Pro gram
In co me Reu se Pl an to pe rmit th e rel.'~e of pr ojec ted prog ram in co me denv e:I from 1h e Sil le of N SP un its
fo r the ac qu1 s11 ion, rehab, and s,1l e o f ,1 d d111o na l units by March 10. 20 12.
To d al e, P,ojcct Reb ui ld hJ s Jcqu irc tl or has urdcr c o ntr,,c t fi ft c!':n ( i 5) sin gle (,1,--nily wH.:,mt :o rcclo~,cd
1;1up~11i c::, lo< ..it ed in Ill e e!igiUl e c.e n:,u:, tr rt ch . 'vVi th tl1 e i!pp ruv 11I of tlie 1,1SP l Pr ~gra m In come Re use
Pla n, it 1s an11 cip .1t ecl tha t fi ve (5 ) ad dit io nal un ide r111 fi ed pro;->eni es co uld be p11 rcl1ti '>~d. Tl11s wo uld br ing
th l0la l 0 ( purchased p roperties 10 1wen1y (20).
G en era ll y, Rea l [sl at e Own ed (REO) lend e,s and goveI nmcn 1 holding dge ncies (e.g FH A, VA, f NM/,,
etc.), req111re cl os ing date s 10 b e se t w 1lh1n JU da ys o f th eir accep lance of an offs r l o p urchase or b id.
G ive ·, th is sh o rt tim e ira m e 10 close o n a properly, it would be 11n poss ible for staff 10 ga111 Cou n c il
approva l for acquisi ti o n o f in d iv idua l site speci fic pro per ties given the 45.60 day o rdinan ce approval
11rn e fra m e.
SeCll o r 72 of 1h e Horn e Ru le Cha 11e r requires th at ,·eal pIopeI 1v may b e so ld. bu t onlv by o rr!inance. no t
11c.h e th P 0 ff1e rr,r,ncy prnvic.i-"ln r ac h r rop;;,,:y .:'I Cql1irPO (M Pro jPrt Rebu 1!rl will b~ hroueh t hefore Coun cil as
:,oon as po:;5 1ble 10 receive <1p p ro vt1 I lO se ll each propc ity 10 elig ibl e b uye rs. This wil l m ax imi ze th e m ar keting
effons . Thi:. p roces s will expedite th e sub~equem sJ le and cl osi ng of th e pro pe rt y.
FI NANC IAL IM PACT
Ex isti ng Comm u n1ly D evelopment staff ha s the req11 1reo expertise to acqu 1re forec lose cf propert ies,
provide rehabili 1a1i on, and sell th e pmper11 .s 10 eli gibl e b uyers . All acqu·s11i on ,nd reha b expe n ses w ill be
covered by th e N SP l grant.
LI ST OF ATTACHMENTS
Pr opose d Bill fo r an Ordinun cc