HomeMy WebLinkAbout2009 Ordinance No. 049•
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RDIN AN CE NO . __ff_
SE RIES OF 2009
BY AUTH ORIT Y
COG NC IL BILL NO . 50
INTR ODU CED BY COUN CIL
MEMB ER McCASLIN
AN ORDINAN CE AUTHORI ZrNG THE PUR CHASE OF TEN UNIDENTIFIED S[NGLE-
F AMU, Y. VA CANT, FORECLOSED PROPERTIES LOCATED rN THE CITY OF
ENGLEWOOD, COLORADO TO FULFD.,L THE NE IGHBORHOOD ST ABD.,IZA TION
PROGRAM CONTRACT BETWEEN THE COLORADO DEPARTMENT OF LOCAL
AFFAIRS AND THE CITY OF ENGLEWOOD , COLORADO .
WI-IEREAS , th e City Coun cil of the Cit y of Engl ewood, Colorad o authorized an appli ca tion to
the Col orado Department of Loca l Affairs, Colorado Division of Housing, for a portion of
Arapahoe County's allocations of the Federal Neighborhood Stabili zati on Program fund s (NSPI)
for funding Project Rebuild by the pass age of Reso lution No . 34, Seri es 2009; and
WHEREAS, the City of Englewood Proj ect Rebuild was awarded $1 ,253 ,3i 9 to purchas e,
reh abilitate, and sell single-family vacant , forec losed properties in eligible cen sss tract s located in
the City of Englewood ; and
WHEREAS, tl1e City Council of the Cit y of Eng lewond , Colorado authorized the execution of
an intergov ernment al contract for Neighborhood Stabilization Program grant funding betw een the
Colorad o Department of Loca l Affairs and the City of Englewood, Co lorado by th e pas sage of
Ordinance No . 37 , Series of200 9; and
WHEREAS , :he NSPI Grant requires the purcha se, rehabilitati on and resa le often (10) singl e-
fomily, v~r.!!ilt , forecl os ed properties ; and
WHEREAS , generall y, when real estat e is owned by lenders and government hol ding agenc ies
(e.g. FHA, VA , FNMA , etc.) they require closing dates to be set wi thin 30 days of their accept ance
of an offer to purchase or bid . With thi s short time fram e it wou ld be impossible to gain City
Counci l approval for acquisiti on of indiv,dual sit e-spec ifi c properties given th e 45-60 day
ordi11an ce approva l timefram e; and
Wl·IEREAS , to acco mmodat e this com pressed process and schedule , staff requests th at Cit y
Council auth ori ze the purchase of ten (I 0) currently unidentified qualifying single-famil y va ca nt ,
fo rec los ed properti es located throu ghout th e Cit y to fulfi ll th e NSPI contract with the Co lora do
De partment of Local Affai rs ; and
WHEREAS , Section 72 of th e Englewood Hom e Ruic Charter requires that real pro perty may
be sold , bul onl y by ordinance, not usin g th e emergency provi sion; and
WHEREAS , each propert y acqu ired for Project Rebuild will be brought before City Council as
soon as poss ibl e to receive approval to sell each property to eligible buyers; and
WH ERE AS, exi sting Communit y Devel opment st aff has the required exp erti se to acquire
for ec losed properti es, prov ide rehabilitati on, a"d sell th e pro pert ies to eligible bu yers. All
ex pen ses will be covered by the NSPI Gran t.
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NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUN CIL OF THE CIT Y OF
ENGLEWOOD, COLORADO , AS FOLLOWS :
Section I. The Ci ty Council of the City of Englewood, _;o Jorado hereby authorizes the
purchase often (IO) uniJentified singl e-famil y, vacant , foreclosed properties loca ted in th e
eligible census tracts throughout the City of Englewood to fulfill the NSP I co ntract with th e
Co lorad o Department of Local Affairs funded through the Neighborhood Stabilization Program
Grant (NSP I Grant).
Introduced , read in full, and pa ssed on fir st reading on the 19th da y of October, 2009.
Publi shed as a Bill for an Ordinance in the City 's official newsp aper on th e 23"' day of October,
2009.
Publi shed as a Bill for an Ordinance on the City's official website beginning on the 21st day of
October, 2009 for thirty (30) days.
Read by title and passed on final reading on the 2nd day of November, 2009 .
Pcblished by title in the City's official newspaper as Ordinance No. !If, Series of 2009 , on
the 6th day of November, 2009.
Published by title on the City's official website beginning on the 4th day of
November, 2009 for thirty (30) days .
James K. Woodwa,d, Mayor
I, Loucrishia A. ell is, City Clerk of the City of Englewood, Colorado, hereby certify that the
above and foregoing is y /tfe copy of the Ordinance pa ssed on final rending and published by
title as Ordinance No .+/• Series of 2009.
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COUNCIL COMMUNICATION
Dale: Agenda ll em: Subject :
O c tober 19, 2009 11 a i An O rd inan ce Auth ori zing th e Purchas o f Ten
Single Family H ouses Fund ed through the
N eighb orh ood Stabi li za ti on Program Gran t
Initiated By: I Staff So urce:
Communi ty D eve lopm en t D epa rt ment H arold ). Stitt, Se ni or Plann er
COUNC IL GOAL AND PR EVIOUS COUNC IL ACTION
City Council approved Reso lu tion 34 Series of 2009 au thorizing staff to apply to the D epartment of
Loca l Affairs, Colorad o D ivision of H ousin g, fo r a p ort ion of Arapahoe County's all ocation of th e
Federa l N eighborhoo d Stabi li zati on Program funds (NSP l ).
City Council approved O rdinance 37, Se ri es of J9 au th ori zi ng the executi on of a co ntract for
Neighbo rh ood Stabiliza ti o n Program gran t fun d,ng between ,i 1e ,,a te o; ,-,lorado Departm ent of
Loca l Affairs and th e City of Engle wood .
RECOMMENDED ACTION
Staff recommends th at Coun cil approve a bill for an ordinan ce authoria iag th e pur chase of ten
unidentified sin gle-fami ly vaca nt fo reclosed properti es loca ted ;" th e eligihl e ce nsu s trac ts
through out the City o f Englewood to fulfill th e N SPl co ntract w ith th e (olnrad o D epar tm en t of
Loca l Affairs .
BACKGROUND, ANALYSIS, AND ALTE RNATI VES IDENTI FIED
In 2008, the Federal gove rnm ent pas se d th e Housi ng and Economi c Recove ry Act (H ERA). HERA
approp ria ted $3 .92 billion fo r the N eighborhood Stab ilizat ion Progra m (NSPl) to supp ort th e
acquis iti on, rehabilita tion, o r demoliti on of fo recl ose d and abando ned prope rti es. The Stal e of
Colorado received a total o f $53 million in NS Pl fun ds of which $37.9 milli on is direc tl y
ad min is ter ed by th e State.
In M arch, th e Community D evelopm ent D epartm ent subm ittP.d an application l o th e Stat e as
auth ori ze d for NS Pl fund in g for Project Rebuild. Projec t Rebuild was award ed $1 ,253,379 by th e
Sta te H o using Bo ard in Jul y to p m chas e, rehabilitate, and se ll fo reclos ed sin gle-fam il y properti es In
eli gible ce nsu s trac ts loca ted througho ut th e City of En glewood. (See attached NSP l l,,eligible
Ar eas Map) In Sep tember, Counci l app roved entering int o an agre em ent w ith th e Stat e for N Sl'l
fundin g .
Th e N SP l contract requires th e p urchase, rehab ili tatio n, and res ale· of l en h om eownershi p units.
Th e contr acl also requir es a minimu m 1 % di sco unt of th e curr ent ai.-!J rai st!d valu e of th e unit and a
pr elun in ary rev ie\\ or environ me nial filt ers prior to making an offer on eac h pro pert y to es tablish
th e \ 1ab ili1·, or th e unit with in th e es tab lished timelin s. The enviro nrn ntal impa ct fi lt ers ar e noise,
lead base d pai nt , fl oo d plain , and hi storic al prese rvati on.
Gen era ll y, Real Estat e Owned (REO ) lenders and gove rnm ent holding age ncies (e.g. FHA, VA,
FNMA, etc.), require clos in g da tes to b e set within 30 days of their accep tan ce of an offor to
purch ase or bid . Give n thi s sh ort tim e fram e to cl ose on a property, i t would b e imposs ibl e fo r staff
to gain Council approval for acquisition of individual si te-s pec ifi c prop erties given th e 45-60 day
ordi na nce appro val tim efram e.
To accommoda te thi s co mpressed process and sc hedul e, staff reques ts th at Coun cil au th o rize th e
purchase of ten, as of ye t, un identifi ed quali fy ing singl e-fa mily vaca nt, foreclosed properti es loca l ed
throughout th e City to fu lfill th e NSPl contract with th e C0lorad o D epartm ent of Local Affa irs .
Sec tion 72 of th e H orn e Ru le Charter requires th at rea l r rope rty may be so ld , but only by ordin ance,
not us in g the emergen cy provision. Each pro per ty c,cquired for Projec t Reb uild w ill b e brought before
Council as soo n as possible to rece ive approval to se ll ea ch property to eligible buyers . Thi s will
maxi mize th e marketing efforts. Thi s process w ill ex p edite th e subseque nt sa le and clos in g of th e
property.
FINANCIAL IMPACT
Ex isting Community Deve lopment staff has the required ex p ertis e to ac quire forecl osed properties,
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provide rehabi litati on, and se ll th e properties to eli gible buyers. All ex p ens es will b e covered by th e •
NSPl grant. All proceeds fr om the sa le of each property w ill be reimburse d to th e Sta te of
Colorado as required by th e contrac t until all hous es are so ld or th e program ex pires March I 0,
2013 .
UST OF ATTACHMENTS
M emorandum fr om Frank uryglewia on Funding th e Rehabilitation of H omes Purc hased with
eighborhood St ab ili za ti o n Pr o1;ram Grant Fund s
NS P I In eli gibl e Area Map
Bill for an O rdin ance
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Memorandum
City of Englewood
Department of
Finance and ·
Administrative
Services
Mayor Woodward and City Council r
From : Frank Gryglewicz. Director of Finance and Adm inistrativ~p
Date: October 14 , 2009
To :
Re : Fu nding the Rehabilitation of Homes Purchased with Neighborhood Stab ili zdtion
Program Grant Funds
City Council approved Ord inance 37, Series of 2009 on September 21 , 2009. This ordinance
accepts Neighborhood Stabilization Program Grant Fund ing to support the acquisition,
rehabilitation or demolition of foreclosed and abandoned properties . The City plans to use its
share of the funds to purchase , rehabilitate , and re -sell abandoned or foreclosed properties but
will need fund ing for the rehabilitation of the properties . The Council Communication
accompanying the Ordin ance for the City Council indicated that funds from U.S . Bank could be
• used to fund the rehabil itation of the purchased properties . Another alternative would be to use
General Fund monies on a short-term basis .
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General Fund monies funds wou ld oe provided as requested and shown as "due from " the
Housin g RehabilitaliJn Fund on the General Fund Balance Sheet. The maximum funds provided
on a short-term bas is wou ld be $300 ,000 (ten houses at $30,000 each). When the houses are
sold, the General Fund wo u ld be repaid and the "due from " balance reduced . This will not impact
the fu nd balance an d will reduce the amount the City would otherwise pay in interest.
If there is no objection to thi s proposal , staff will proce with its implementation.
Copies. Janet Grimmett, Si eve Dazzio
City of Englewood, Colorado City Council District Bound.uies
-Arte riall and Co llecton; /V loCll l Streels
0 o.s 1.5
Mlks
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