HomeMy WebLinkAbout2010 Resolution No. 092• RESOLUT ION NO 92
SE RlES OF 20 10
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A RESOLUTION SPECIFY ING AIIJ TO OTHER AGF CIES FOR 20 11 BY TH E ITV OF
ENGLEWO OD. CO LORADO.
WHEREAS . Ci1 y ouncil of 1hc Ci1 y of Englewood. Co lora do di sc us;cd 1he appro primions
for aid 10 01her agen cies 1 r 1he year 201 1 al 1h c 1udy cssio n n Dece mber 6, 20 IO;
OW , T HEREFOR E, Bf IT RESOLVE D BY TH E CITY COUN C'IL OF TH E ITV OF
EN LEWOOD , C LORADO , THAT :
ect ion I . Th e fo ll owi ng designation s <1'."e hereby made to the app ropri:\ti ons in th e 20 1 I
Bu dget of the Cil y of En glewood , Co lorailu for aid to other agen c ies;
SOURCE OF FUN DS :
To1a l 20 11 Bud gel fo r Aid 10 ol hcr Agen cies S24 ,974.00
DES IGNAT IONS FO R USE:
t\ilctrop oli tan Mayors and
Co mmi ss ioners Yo uth Award $ 425.00
Ara pah oe Philh ann oni c $ 213 .00
Arapa hoe Sama Claus Shop s 425 .00
Beacon Ccn1cr $ 2 13.00
Co rn crSl l,/IC Fre e Method ist Church $ 1.445 .00
Doc tor's Care $ 850.00
Englewood Cu llum ! Art s Ccnlc r Assoc. s 425 .00
EHS Aficr Prom $ 383.00
Foo d Bank of 1hc Rock ies $ 1.14 8.0 0
Freedo m Sc1vicc Dogs $ 85 0.00
Ga teway Batte red Women's Shelter $ 850.00
Hosp ice of Denver $ 765 .00
l111 cr-Fai1h Ta sk Force $10,200 .00
Living Bra nch Com muni ty Fel low ship $ m .oo
M ca Is on Wheel s $ I 700.00
Spec ial Olympi cs Progrnm $ "1.(1()
Up lose and Mu sica l $ 2,1:).00
Di scrct ionnrv S 2,0 0''QQ
Tnlal S24,9 71 •'0
ADOPT ED AND APPR OVE D AS AIViEN DEI 1hi s 20 1h da y of Dece mbe r, 20 10.
') ,, k 12-)., ......... J.,..,.J. --=='
.l ames K. Wood,Vn rd . t'i.1layo r
(/ Loucrishi a A. Ell is. C'il y Clerk
I, Lou nshin A. Ellis , Ci ty 'lcr ·fort h it y of En glewood. Col"'1!do. hereby certify the
abovcis a 1mccopyofRcsolution 1 o. ~Scri esof20:¼/~~ d~
Loucrishin A. Ellis , CHy !erk
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COUNCIL COMMUNICATION
Date: Agenda Item: Subject:
April 19 , 201 0 1 ·JC iii Res o lution for a Supp lemental App ro priati o n and
Trans fer of Long Term Asse t Reserve Funds (LT AR )
to fund impro v ements r elated to th e NSP1 project
Initiated By: Staff Source :
Fin a nce c1 nd Ad ministra ti ve Servi ces Frank G ry glewic7, Director
COUNCIL GOAL ANr> PREVIOUS COUNCIL ACTION
C ity Counci l approved Reso lution 34 Series of 200 9 au th o riz ing staff to app ly t o th e Departm ent of
Local Affa irs, Colo rad o Div isi o n o f Housing, fo r a portion of Arapahoe Coun ty s allo cati o n of th e
Federal Neighborh o o d Stabi li z ation Pro giam fund s (NSP1 ).
C ity C o uncil app rov e d Ordin an ce 3 7, Series of 20l)9 au thoriz in g th e execution o f a co ntract for
i'leighborhoo d Stabili za ti o n Progr.:im grant fund ing betwee n th e Stat e o f Co l o rad o D e partme n t o f
Lo ca l Affai rs and the City o f En gle w ood .
C ity Co un cil approve d Ordin anc e 49, Serie s of 2 0 09 auth o ri zing th e p urchas e of te ri uni den tifi ed
singl e-fa mil y va cant fo reclos ed pro pe rti es located in th e e li gibl e census trac ts thro~6i ,out th e C ity o f
Eng lewoo d t o fu lfi ll th e NSP 1 co ntract w ith th e Co lo rado Departm ent o f Local Affairs .
At th e stu d y se ssion o n A p ri l 12, 2 0 10, City Co uncil dis c ussed th e us e o f G e n e ral Fu nd m o ni es
(Lo n g Term Ass et Reserve ) to b e us e d to fund the cos ts o f rehabili tatin g th e acq ui red foreclo sed
p ro p erti es fo r th e NS P1 proj ect.
RECOMMENDED ACTION
3 taff recom m ncis th a t Council aprrove a rr-so luti o n auth o rizin g the us e oi $750,000 of th e Lon
T erm Asse t Reserve (LTAR ) to ass ist w ith th e, fundin g of l h e ac quisitio n and r e h ab il ita tio n co st<
as ocia ted wi th th e N SP1 co ntra c t wi th th e Co lo rado D e pa rtm e nt o f Loe.al Affa irs .
BACKGROUND, ANALYSIS, AND ALTERNATIVE~ IDENTIFIED
In Jul y 2008, th e Fed eral govern m e nt p asse d the H o usin g and Economic Recovery A c t (H ERA ).
H ERA ,i pp ro pri at ed $3 .9 2 b illi on na ti ona ll y for th e Neighb orhood Sta b ili za tion Progr·a m (NSP1 ) to
supp o rt th e ac quis iti o n, reh abilitati o n, o r d em o liti o r, v f fo reclosed and aband o ned pro perti es . Th e
Colorad o D partm e nt of L. cal Affa i rs thro ugh th e Co lo rado Div isio n o f H o u sin g ( DOH ) received
a to tal $37.9 mi lli o n in N SP I fun d s .
In March 2009, th e Community D evelopm ent D ep drtm ent subm itt ed an app lica ti o n to C D H)o r
NS P1 fu r,d in g fo r Pr o jec t Re b u ild. Proj c t Re build was award e d $1,253 ,379 b y the State H o u sin g
Board in July 2009 t o purchase, re habilitate, and se ll ten foreclosed si ngl e-1ami ly properties in
eli gible ce nsus trac ts ;oca te d th ro u gho ut the C ity of Englewood. In Sept ember 2009, Council
app roved e ntering in to an inte r governmental agreeme nt w ith th e Sta t e for NSPl funding a nd in
October 2009, Counc il appro ed purchasing ten unidentifi d sing le-family acan t foreclosed
properti es t o fult,II the NS Pl co ntract.
The approved acq u is ition budge t for th e ten foreclosed pro perties was a co mbinatio n of $909,000
NSPl funding w ith th e balance from th e Ci iy as th developer. It was proposed th at at leas t six
hous es co uld be purc hase d w ith th e NSPl funds and used as coll ate ra l to borrow an add i tional
$450,000 from a local bank fo r th e acq uisiti o n of th e r em ainin g four h ouses n eeded to co mplete
the IGA wi th CDOH. To date, staff has bee n ab le to ac tua ll y pu rc has e fo ur h o us es with co ntracts
and t o purch ase an additional three houses using o nly NSPl funds. Th ere is approx imately
$100,000 of NS Fl funds remaining in th e budget towa rds th e acquis iti o n of an eighth hou se .
Fu nd in g is n eeded t o acq ui re two more ho use s and t o p oss ibly comp lete the purc ha se of the eigh th
h ouse.
M ill enniu m Bank has ex pressed an in te rest in providing a loan of approximately $400,000 to th e
City usin g th e acquired NSPl properties as coll a teral a t a fifty perc e nt l oan-t o-va lu e. Th e ge n era l
term dis c ussed wou ld be a loa n for one yea r at a seve n percen t int e rest rat e w ith interes t only
paymenL made quar te rl y. Th is would kee p the loa n compliant with TABOR . The princ ip al wo uld
b e repaid t o th e Bank at th e tim e of sa le of each property to a qualified eli g ib le bu )'e r.
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Fund in g for the req ui re d r ehab il i tation f the prope rti es was initial!>' pr posed to be b o rr owed fr o m
US Bank through ex istin g g ui da n ce lin e of c r edit (L C) fo r th e Hou sin g Re h abilitation Fund. Using •
th LOC posed to b e a n addi ti o nal accountin g prob l m for staff. It was th e n prop osed, and
subseq u e ntly approved, t o use th e General Fund to c omple te th e ,ehabili ta ti o n of all houses. Th ere
is approx i mately $300,000 r es rved in the G en e ra l Fu nd fo r th e reh abi lita ti on of th e t n units.
It has be e n sugg es ted t hat th Lo ng T erm Asset Rese rve (LTAR ) fund co uld be an appr priate
v ehi cle to u se to fu n d Pr o j ect Rebu il d instead o f borrowing funds fro m the Bank and us in g th e
G nera l Fu nd t o suppo rt Pro j ect Rebuild. A maximum o f $750,000 w o uld be ne ded to~nd th e
a quisitio n of a n add iti o n al tv\l o fo reclosed h ouses p lus ti ,e rehabi l ita ti o n of all ten house M onies
Twould b e r e pa id to th LTAR upon th e sa le of ea c h property to a , ualifie d e lig ib le b uye r.
By usi11g th LTAI~ fund, it vo uld:
·1. S;:ive th e proj c t b etw n $2 0,000 t o $25,000 in financin g cos ts c1:~d accru ed inte res t plu s
th tim e to co mpl e te th e requir e>d pape ·w o rk and approv al s n e cessa ry to finan c e the
proj ec t.
A ll ow th e rep , yment sc h edul P to ex t nd b eyond o n e year if n ec essa ry.
3. !'Jo t redu ce th e Gen eral Fund 's 1mr s 0 rved/undes ignat ed f unrl ba la n ce
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GENERAL FUND (FUND 02j_;_
SOURCE OF FUNDS :
Lo n g Term Asset Reser ve
U SE OF FUNDS : Transfe r t o th e Nei ghbo rh ood St abi liza ti o n Fu nd
NE IGHBORHOOD STABILIZATION FUND FUND 11 :
SOURCE OF FUNDS: T ransfe r In Fro m G enera l Fund (Lo ng T er m Asse t Reserve)
USE OF FUNDS: A c quisiti o n o{ Two H o uses and Re h abi litation of T en H ou ses
$750,000
$750,000
$750,000
$750,000
FI NA NCIAL IMPACT
Exis tin g Community D evelopment staff adm in isters th e SPl project. N o addition al monies w ill be
req ui re d for acqui siti on, rehab ilitati o n, sale or ad m inistra ti o n of the project. This action w ill
tempo ra ril y red uce the LTAR ba lan ce b ut it wi ll b e repaid as h o us es are sold and funds are repai d
to t h e Lo n g Te rm Asse t Rese rve .
UST OF ATTACHMENTS
Pro p o sed Resolu ti o n