HomeMy WebLinkAbout2009/03/03 Item 10
CITY COUNCIL
AGENDA STATEMENT
~\~ CITY OF
~.U!lCHUlA VISTA
ITEM TITLE:
SUBMITTED BY:
REVIEWED BY:
MARCH 3, 2009, Item lQ
A. RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA AUTHORIZING THE CITY
MANAGER TO EXECUTE THE FUNDINGAPPROV AL
AGREEMENT WITH THE DEPARTMENT OF HOUSING
AND URBAN DEVELOPMENT AND OTHER RELATED
DOCUMENTS; A.ND AUTHORIZING APPROPRlA.TIONS
OF $2,830,072 TO FUND THE AMENDED 2008/2009
ANNUAL ACTION PLAN FOR IMPLEMENTATION OF
THE NEIGHBORHOOD STABILIZA nON PROGRA1\1
(NSP) (4/5THS VOTE REQUIRED)
B. RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA AUTHORIZING THE CITY
MANAGER TO EXECUTE THE SECOND AMENDMENT
TO THE AGREEMENT BETWEEN THE CITY AND
COMMUNITY HOUSINGWORKS FOR UNDERWRITING
SERVICES FOR A FIRST TIME HOMEBUYER
DOWNPA YMENT A.ND CLOSING COST ASSISTANCE
PROGRAM (3/5THS VOTE REQUIRED)
DEPUTY q~X MANAGER 1 DEVELOPMENT SERVICES
DIRECTO~ g
CITY MANAGER, ~- .
4/STHS VOTE: YES 0 NO D
SUMMARY
In January 2009, the Department of Housing and Urban Development approved the City's
Draft 2008-2009 Amended Annual Action Plan which proposed three activities to be funded
with the Neighborhood Stabilization Program funds in the amount of $2,830,072. This item
will appropriate the funds to specific activities as well as amend the contract with
Community Housingworks, extending their contract to continue underwriting the City's
homebuyei assistance loans.
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March 3,2009, Item 1 't)
Page 2 of3
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed project for compliance
with the National Environmental Protection Act due to the use of Federal funds, and has
determined that the proposed project is deemed exempt under the National Environmental
Protection Act (NEP A) Regulations.
RECOMMENDATION
Council adopt the resolutions.
BOARDS/COMMISSION RECOMMENDATION
None.
DISCUSSION
In September 2008, HUD notified the City of Chula Vista that in addition to the annual
CDBG entitlement, the City is eligible to receive approximately $2.8M in one-time
CDBG funds through the new Neighborhood Stabilization Program (NSP). The purpose
of the.NSP program is to assist cities dealing with the negative effects of abandoned and
foreclosed properties. The NSP funds may be used to purchase foreclosed or abandoned
homes/properties, rehabilitate, redevelop, resell and/or rent these homes to help stabilize
neighboring homes and neighborhoods. The funds may not be used to assist households
at risk of foreclosure.
In December 2008, the City submitted the Draft Amended Annual Action Plan to HUD
identifying how the City would obligate the funds within an 18 month period by
allocating them to the following three activities:
1. Neighborhood Stabilization Homebuyer Program ($1,547,064): Target NSP funds
for soft second fmancial assistance for low- and moderate-incom~ buyers within the
target neighborhoods. The City currently administers a Down Payment and Closing
Cost Assistance Program funded through the HOME program, limited to assisting
households earning no more than 80% of the Area Median Income (AMI). The new
NSP funding will expand the existing program and allow funds to be used by families
earning up to 120% of the AMI. A summary of the program is provided as
Attachment 1. .
2. Rental Housing for Very Low Income Households ($1,000,000): The City will
pursue a competitive process to identify an organization and assist in the purchase
and rehabilitation of foreclosed properties with the purpose of creating permanent
rental housing opportunities for residents below 50% of the AMI. The development
partners will assist the City in identifying the best method for leveraging NSP funds
with other special needs or low income housing funding opportunities. Agency
selection, approval of a project/s, and project specific agreements will be brought for
your consideration at a later date. .
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March 3, 2009, Item \ b
Page 3 of3
3. Administration of the NSP Program ($283,008): Administration funds will be
utilized for staff costs associated with the management and administration of Chula
Vista's NSP program, including planning, regulatory compliance (e.g. monitoring,
inspections), contract administration, and fiscal management. An amendment to
include this program under the current underwriting duties of the program contractor,
Community HousingWorks, is provided as Attachment 2.
DECISION MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found.. that two
conflicts exist, in that Councilmembers Castaneda and McCann have property holdings
within 500 feet of the boundaries or within the target neighborhoods which are the
subject of this action, as follows:
· Northwest Target Neighborhood - Castaneda
· Southwest Target Neighborhood - McCann
· East Target Neighborhood - no conflicts
FISCAL IMPACT
Neighborhood Stabilization Program funds are block grant funds available to the City for
affordable housing purposes from the U.S. Department of Housing and Urban
Development. The proposed three activities, including the staff costs associated with the
administration of the program, are all reimbursable and eligible under the Federal
Regulations. Funds totaling $2,830,072 will be appropriated to the Community
Development Block Grant (CDBG) Fund.
ATTACHMENTS
Attachment 1: Neighborhood Stabilization Homebuyer Program Homebuyer Facts
Attachment 2: Second Amendment to Agreement with Community HousingWorks
Attachment 3: Sample BUD Funding Approval and Grant Agreement
Prepared by: Angelica Davis, Project Coordinator II,
Development Services Department, Housing Division
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ATTACHMENT 1
(Applications accepted beginning 3/16/09)
NEIGHBORHOOD STABILIZATION
FIRST-TIME HOMEBUYER PROGRAM
HOMEBUYER FACTS
WHAT IS THE NS FTHP?
On January 13, 2009 the City of Chula Vista was approved to receive $2.8M in funds from the
U.S. Department of Housing & Development (HUD) through a new Neighborhood Stabilization
Program to assist areas most severely affected by foreclosures. A large portion of these funds
have been identified to assist first-time low- and moderate-income home buyers with up to $70,000
in gap financing to purchase foreclosed upon properties, under the Neighborhood Stabilization First-
Time Homebuyer (NS FTHB) Program. The City is contracted with Community HousingWorks
(CHW) to administer the NS FTHB Program.
DOES MY HOUSEHOLD QUALIFY?
Households seeking assistance must meet all of the following criteria to be eligible:
1. All household members are first-time homebuyers (have not held an ownership interest in
residential property within the past three years).
2. Total household annual income may not exceed the following limits, as of February /3, 2008:
$69,200 $77,850 $86,500 $93,450
$114,200
$50,550 $56,900 $63,200 $68,250
$78,350
$83,400
Upon close of escrow, you must occupy the home as your Principal Residence.
You must be a U.S. citizen or eligible immigrant. Legal resident aliens are eligible to apply but
must show proof of status.
5. Your households shall have sufficient income and credit-worthiness to qualify for primary
financing from a participating lender.
6. You must contribution a minimum of 3% of the total purchase price of the property.
7. Maximum liquid assets after down payment and closing cost contribution may not exceed
$25,000 (not including retirement accounts, i.e. IRA's, 40l(k), etc).
WHAT PROPERTIES ARE ELIGIBLE UNDER THE PROGRAM?
1. Properties must be located within specified NSP
. Target Neighborhoods, in the City of Chula Vista.
2. Properties must be foreclosed upon single-family
homes. Manufactured/mobile homes, duplexes,
triplexes or fourplexes do not qualify as eligible
properties.
3. Preference is given to properties that are less than
50 years old and may not need health & safety
repairs that exceed $ 24, 999.
4. The maximum purchase price cannot exceed
$559,550 (effective 3/08).
5. The property owner must agree to sell the property ...--S
at a discount of at least 15% below appraised
property value.
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February 19, 2009
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LOAN TERMS
1. The City's home buyer assistance is recorded as a second trust deed and can provide qualifying
low-income (80% Area Median Income) families with up to $70,000 and moderate-income
(120% Area Median Income) families with up to $40,000.
2. Long-term residency is encouraged through a declining City interest in any accrued property
equity for the first 15 years.
3. No interest is charged on the loan (except in the case of default) and after 15 full years of
owner occupancy, only the principal remains due and payable.
WHAT IS THE PROCESS?
1. Attend an 8 hour HUD certified home buyer education class.
2. Submit a loan application to a CHW certified lender to pre-qualify for primary financing. They
will determine the following:
a. Pre-qualify you for a first mortgage amount;
b. Calculate income to determine eligibility for a NS FTHB loan ("gap financing"); and
c. Estimate your maximum purchase price.
3. Complete the City NS FTHB application and submit it to'Community HousingWorks.
a. If deemed eligible, the City will issue a 60 day pre-commitment of funds letter.
4. Work with a CHW certified realtor to find an eligible property.
a. Submit an initial offer to the seller estimating 15% below market value.
b. Receive a certified appraisal.
. c. City will issue a "Voluntary Acquisition" form to be submitted with your purchase offer.
5. Work with your lender and CHW to move through the escrow process, including:
a. Inspect the property, if the property requires rehabilitation:
i. Submit an NS FTHB Rehabilitation application.
b. CHW will reql,lire execution and recordation of documentation to fund the City loan,
including a NS FTHB Agreement, Deed of Trust, and Promissory Note.
In addition to underwriting your City loan, CHW will be servicing your loan, including:
1. Issuing annual statements on your account;
2. Sending you annual monitoring letters to confirm occupancy of the unit; and
3. Providing payoff demands, should you desire to sell or transfer the property.
For additional program information, to sign up for a homebuyer education class, and/or to receive a
list of certified lenders and realtors, please contact Community HousingWorks at www.chworks.orq
or call (619) 282-6647.
CITY OF CHUt.. v'STA6
Redevelopment '1ll'''
& Housing
For an application and a sample of the documents you will sign visit the
City of Chula Vista's Redevelopment & Housing Division web page at:
www.chulavistaca.qov/cvrh.
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February 19, 2009
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ATTACHMENT 2
SECO~"]) AMENDMENT TO TI:IE AGREEMENT BETWEEN
THE CITY OF CHULA VISTA
AND
COMMUNTIY HOUSING WORKS
For
Management of a First Time Homebuyer Downpayment
and Closing Costs Assistance Program
RECITALS
A. The City of Chula Vista ("City") and Community HousingWorks ("Consultant")
(collectively, the "Parties") entered into aD. initial agreement, dated August 23, 2007,. and
a First Amendment on June 19, 2008 for Management of a First Time Homebuyer
Downpayment and Closing Cost Assistance Program (the "Agreement'').
B. Pursuant to that Agreement, Consultant agreed to administer the City's HOME
Investment Partnership Program funds loan program in accordance with HOME
requirements including, but not limited to, underwriting loans for first-time homebuyers,
servicing the loans, and providing monitoring and reporting services.
C. The City amended its 2008-2009 Annual Action Plan to receive CDBG
Neighborhood Stabilization Program (NSP) funds from the Department of Housing and
Urban Development ("HUD") and desires to use a portion of the NSP funds for a
Neighborhood Stabilization First Time Homebuyer (NS FTHB) Program.
D. The City's Action Plan amendment has been approved by HUD. In anticipation of
receiving the grant agreement from HOD, the City wishes to add administration of the
NS FTHB Program to the scope of work under the Agreement
The Parties agree as follows:
AGREEMENT
1. This Second Amendment is contingent on: (i) the City entering into a grant
agreement with HUD for the NSP Program; and (ii) the City appropriating the
necessary funds to administer the NSP Program
2. This Second Amendment shall be effective on the later of the following dates: (i)
execution of this Second Amendment by the City; or (ii) satisfaction of the
contingencies set forth. in paragraph 1., above.
3. The Agreement shall be amended as follows:
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a. Exhibit A, Paragraph 7, "General Duties," at the end of the paragraph, add
the following: "Consultant shall provide management for the new
Neighborhood. Stabilization First Time Homebuyer (NS FTHB) Program
for Real Estate Owned (REa) foreclosed properties in accordance with
City and Department of Housing and Urban Development Department .
("HUD") requirements."
b. Exhibit A, Paragraph 8. "Scope of Work and Schedule, A. Detailed Scope
ofW ork,: after the last paragraph, add the following:
"Consultant shall administer the City's NS FTHB Program for REO
foreclosed properties using the City's NS First Time Homebuyer Program
Guidelines, in compliance with HUD regulations of the Neighborhood
Stabilization (NSP) funds and in accordance with the City's NSP
requirements descnbed in the NSP Manual, NSP Amendment to the City's
2008/2009 Action Plan, as well as the regulatory requirements of Federal
Registry Notice 73 FR 58330.
Consultant shall process applications for City loans for first time low-
income and moderate income homebuyers (those families earning less
than 120% of the Area Median Income) that wish to purchase vacant
foreclosed REa properties at a discounted negotiated price.
Consultant understands that an additional $1,547,064 in NSP funds and
$452,936 in HaME funds are available for assistance of up to $40,000 fot
each moderate-income homebuyer purchasing an REa foreclosed property
using NSP funds, and up to $70,000 for each low-income homebuyer
purchasing an REO foreclosed property using HOME funds or NSP funds.
This allocation is in addition to the previous HOME fund allocations of
$500,000 and $300,000 to assist low-income first time homebuyers.
Consultant understands City's NSP and HOME funding requirements for
First Time Homebuyer activities. City further describes the use of NSP
and HOME funds, Program Reqwrements, and Duration of Agreement in
Exhlbit B, attached.
Consultant shall identify and commit NSP funds for at least 40 First Time
homebuyers. Consultant shall close 20 of those loans and/or expend 50%
of the NSP funds by December 31, 2009; Consultant shall commit the
remaining funds by August 31, 2010.
Consultant shall conduct initial First Time Homebuyer Education Classes
(Spanish and English), Realtor and Lender Training Classes as needed to
meet the deliverable requirements in Paragraph 8. C. below.
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Consultant understands that it is subject to the requirements of Department
of Housing. and Urban Development (Federal Register) Notice of
Allocations, Applications Procedures, Regulatory Waivers Granted to and
Alternative Requirements for Emergency Assistance for Redevelopment
of Abimdoned and Foreclosed Homes Grantees under the Housing and
Economic Recovery Act of2008, the City ofChUla VISta's NS First Time
Homebuyer Program guidelines, City's NSP Plan submitted to the
Department of Housing and Urban Development, Neighborhood
Stabilization Program regulations found in Title ill of Division B of the
Housing and Economic Recovery Act of 2008, and 24 CFR Part 570
Community Development Block Grant program for Entitlement
Communities.
Consultant shall administer the City's First Time Homebuyer Program for
low-income families in accordance with the City's HOME requirements
and regulatory requirements at 24 CFR Part 92.
Consultant will commit and expend the initial $800,000 of HOME funds
within 24-months after original agreement date of August 23, 2007. The
additional allocation of $452,936 in HOME funds must be committed and
expended within 24 months of the date of appropriation.
Consultant understands that it is subject to requirements of the City of
Chula Vista's HOME First Time Homebuyer Program guidelines, and 24
CFR Part 92 HOME Investment Partnership Program."
c. Exhibit A, Paragraph 8. "Scope of Work and Schedule, C. Dates of Time Limits
for Delivery ofDeliverables," add the following:
"Deliverable No.1: Consultant shall cloSe 20 First Time Homebuyer
loans and/or commit and expend 50% of the NSP funds by December 31,
2009.
Deliverable No.2: Consultant shall commit and expend all remaining
NSP funds by August 31, 2010.
Deliverable No.3: Consultant shall commit and expend all HOME
funds within 24 months of the date of appropriation."
d. Exhibit 1, Paragraph 8, "Scope of Work and Schedule, D. Date for Completion of
all Consultant Services," replace with the following:
"August 31, 2010 This Agreement may also be extended by mutual agreement of
the Parties for up to five years in one year increments. The City's Purchasing
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Agent is authorized to negotiate and enter into such extensions to this Agreement
on behalf of the City" .
,
e. Exhibit A, Paragraph 10. "Compensation, B. Phased Fixed Fee Arrangement.3.,"
add the following:
"a. REO Program Set-Up and Closing Fee: $1,500 per Loan Closing.
b. NSP Program Set-Up and Closing Fee: $1,500 per Loan Closing.
c. Annual Fee of $9,000 to administer all of the City's First Time
Homebuyer Programs including HOME and NSP, beginning with the
1 &t Amendment through August 31, 2010.".
f. Delete paragraph 5., of the First Amendment.
All other terms of the Agreement shall remain in full force and effect
[Next Page is Signature Page.]
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SIGNATURE PAGE
SECOND AMENDMENT TO THE AGREEMENT BETWEEN
THE CITY OF CHULA VISTA
AN!>
COMMUNITY HOUSING WORKS
For
Management of a First Time Homebuyer Downpayment
and Closing Costs Assistance Program
:ill" VVITNESS WHEREOF, City and Consultant have executed this Second Amendment
to the Agreement iridicating that they have read and understood the Second Amendment
and indicate their full and complete consent to its terms:
Dated:
,2009
City of Chula Vista
Attest:
by:
James D. Sandoval, City Manager
Donna Norris, City Clerk
Approved as to form:
~
Bart C. Miesfeld, City Attorney
Exhibit List to Second Amendment.to Agreement:
Exhibit A: Agreement betv.reen the City of Chula Vista and Co=unity HoUsingWorks
dated August 23,2007, and Amendment dated June 17, 2008.
Exhibit B: Neighborhood Stabilization Funds and HOME Inves1ment PartiJ.ership Funds
Source of Funds Side b:r Side Comparison of Homebuyer Assistance Requirements
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I,
I
EXIllBIT B
NEIGHBORHOOD STABILIZATION PROGRAM (NSP) A.1~ HOME
INVESTMENT PARTNERSHIPS PROGRAM (HOME)
SOURCE OF FUNDS SIDE-BY -SIDE COMPARISON OF HOMEBUYER
ASSISTANCE PROGRAM REQUIREMENTS
CITY NEIGHBORHOOD CITY HOME
STABILIZATION PROGRAM PROGRAM
81-120% of the Area
INCOME LIMITS Median Income Below 80% of the Below 80% of the
(USING STATE OF (using State of Area Median Income Area Median Income
CALIFORNIA) California income
limits)
ELIGIBLE Must be "fIrst-time" Must be "first-time" Must be "first-time"
HOMEBUYERS 1 1 1
home buyer home buyer homebuyer
Must attend a HUD i Must attend a HUD Must attend a HUD ' -
HOMEBUYER approved 8 hour I approved 8 hour approved 8 hour
EDUCATION homebuyer i homebuyer homebuyer
education course ! education course education course
Vacant Foreclosed ' Vacant Foreclosed Vacant Property
ELIGIBLE Property (townhome, Property (townhome, (townhome,
PROPERTY condominium, or condominium, single condominium, single
single family home) family home) family home).
Shared Equity for a Shared Equity for a Shared Equity for a
AFFORDABILITY minimum of 15 years ffiinimum of 15 years minimum of 15 years
(must be repaid) (mus~ be repaid) (must be repaid)
TARGET AREAS NSP eligible target 'I NSP eligible target Citywide
areas I areas
Subject to 95% of Subject to 95% of Subject to HOME
PURCHASE PRICE Median value as Median value as program 95% of
2 2 Median value as
determined by HUD determined by HUD 2
determined bv HUD
PURCHASE In accordance with I In accordance with Not subject to
City's approved I City's approved
DISCOUNT methodology I methodology discount
Must meet URA I Must meet URA Appraisal obtained
APPRAISAL requirements at 49- i requirements at 49 by Lender
CFR Part 24.103 ! CFR Part 24.103
; Downpayment
Direct ! Direct
ELIGIBLE USE(S) homeownership I ho~eown;rship Assistance (no
OF FUNDS J rehabilitation)
assistance 1 asSIstance 92.254
Exhibit B
Community HousingWorks Second Contract Amendment
Page B-1 of 3
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EXlllBIT B (Continued)
Must commit and Must commit and
expend NPS funds expend NSP funds Must commit HOME
EXPENDITURE within 18 months within 18 months funds within 12
REQUIREMENTS (i.e. have (i.e. have months
homebuyers close homebuyers close
escrow) escrow)
Subject to City's Subject to City's Subject to City's
ASSISTANCE CAPS NSP maximum
(CALCULATE NSP maximum subsidy of up to HOME program
subsidy of up to limit of up to
"GAP $40,000 (of which $70,000 (of which $70,000 for. a REO
FINANCING") $24,999 may be used $24,999 may be used and $40,000 for any
NEEDED TO for rehabilitation for rehabilitation other property.
ACQUIRE/REHABI Assistance). cannot assistance) . Assistance cannot
LIT A TE exceed 40% of Assistance cannot exceed 40% of
PROPERTY purchase price exceed 40% of purchase price
purchase price
DOWNPAYMENT 3% of buyers funds 3% of buyers funds 3 % buyers funds
REQUIRED
URA VOLUNTARY
ACQUISTIONS 4 4 4
Subject to URA Subject to URA . . Subject to URA
ONLY
PROGRA..1\1 Retained by the City I Retained by the City Retained by the City
INCOME s I S 5
of Chula Vista ! of Chula Vista of Chula Vista
Housing and i
I Housing and
Economic Recovery I Economic Recovery 24 CFR part 92
I
Act 2008 and I Act 2008 and . HOME regulations,
I
REGULA nONS correlated eligible i correlated eligible Office of
activities for the i activities for the Management and
CDBG entitlement I CDBG entitlement Budget (OMB
regulations, as I gul .
I re atlOllS, as Circulars)
6 I 6
appropriate. I .
I appropnate.
2008 Action Plan ! 2008 Action Plan 2008 Action Plan
CONSOLIDATED Amendment i Amendment address the use of
PLAN addressed the use of I addressed the use of HOME funds for the
these FY 2008 NSP i these FY 2008 NSP Production of
I
funds I funds Affordable Housing
!
.First Time Homebuyer is defmed as not having owned real property within the last three years.
1 .
Home Program Regulations set these maximum value and are updated periodically.. .
htto:/ /www.hud.gov/offices/cod!affordab lehous ing/orogr8mslhome/limits/maxori ce. cfm
3
Direct Homeownership Assistance refers to the City's Shared Equity Loan! Silent Soft Second Assistance
program eligible under Financing Mechanism under the Housing Emergency Recovery Act (HERA) of
2008 for direct homeownership assistance under 570.201(n) allows NSP (CDBG) funding to: Provide up to
50% of required downpayment; pay reasonable closing costs, provide principal write-down assistance;
subsidize interest rates; finance acquisition; and assist home buyers with private mortgage
msurance.
Exhibit 8
Community HousingWorks Second Contract Amendment
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Page 8-2 of 3
EXHIBIT B (Continued)
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URA is defined as Uniform Relocation Act of 1970, as amended. .
5
Program Income is defined as any recapture of the initial City Investment phis shared equity and/or
interest due per the promissory note and Deed of Trust.
6
NSP funds were alIocated per the Housing and Economic Recovery Act 2008 Neighborhood Stabilization
Program Regulations 73 FR 58330: Correlated eligible activities for the CDBG entitlement regulations are
found at 24 CFR Part 570 & subparts A, C, D, J, K, and 0, as appropriate.
NOTE: They City's Neighborhood Stabilization First-Time Homebuyer Program was designed using the
Department of Housing and Urban Development Federal Register Vol. 73 No. 104 Monday,
October 6, 2008 Notice of Allocations, Application Procedures, Regulatory Waivers Granted to
and Alternative Requirements for Emergency Assistance for Redevelopment of Abandoned and
Foreclosed Homes Grantees Under the Housing and Economic Recovery Act, 2008; Notice
City's First Time Homebuyer Program Manual for NSP and HOME describes the program
requirements.
Exhibit B
Community HousingWorks Second Contract Amendment
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Page B-3 of 3
A IT ACHMENT 3
FUNDING APPROVAL AIW GRA..NT AGREEMENT FOR
NEIGHBORHOOD STABILIZATION PROGRAM (NSP) FUNDS
AS AUTHORIZED AND APPROPRIATED UNDER THE
HOUSING AND ECONOMIC RECOVERY ACT OF 2008
(PUBLIC LAW 110-289, JULY 30,2008)
NSP GRANTEE:
[Insert Grantee Name]
NSP GRANT NUMBER:
[Insert Grant Number]
NSP GRANT AMOUNT:
$[Insert Grant Amount]
NSP APPROVAL DATE:
This Grant Agreement between the Department of Housing and Urban Development (BUD) and
[Insert Grantee Name] (Grantee) is made pursuant to the authority of sections 2301 - 2304 of
the Housing and Economic Recovery Act of2008 (Public Law 110-289 (July 30, 2008))
(HERA). The program established pursuant to section 2301-2304 is known as the
"Neighborhood Stabilization Program" or "NSP." The Notice of Allocations, Application
Procedures, Regulatory Waivers Granted to and Alternative Requirements for Redevelopment of
Abandoned and Foreclosed Homes Under the Housing and Economic Recovery Act, 2008
published at 73 FR 58330 (October 6, 2008) (Notice); HERA; the Grantee's submission for NSP
assistance (Grantee Submission); the HUD regulations at 24 CFR Part 570 (as modified by the
Notice and "as now in effect and as may be amended from time to time) (Regulations); and this
Funding Approval, including any special conditions, constitute part of the Grant Agreement.
Subject to the provisions of this Grant Agreement, HUD will make NSP Grant Funds in the
amount of $ [insert grant amount] available to the Grantee upon execution of this Grant
Agreement by the parties. The Grantee shall have 18 months from the date ofHUD's execution
of this Grant Agreement to obligate the NSP Grant Amount pursuant to the requirements of
HERA and the Notice. The Grantee shall have 48 months from the date ofHUD's execution of
this Grant Agreement to expend the NSP Grant Amount pursuant to the requirements of the
Notice. The NSP Grant Funds may be used to pay eligible costs arising from eligible uses
incurred after the NSP Approval Date provided the activities to which such costs are related are
carried out in compliance with all applicable requirements. Pre-award planning and general
administrative costs may not be paid with funding assistance except as permitted in the Notice;
the Notice limits such costs to those incurred on or after September 29, 2008. Other pre-award
costs may not be paid with funding assistance except as permitted by 24 CFR 570.200(h); for
purposes ofNSP, such costs are limited to those incurred on or after the date that the NSP
substantial amendment was received by HUD.
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The Grantee agrees to assume all of the responsibilities for environmental review,
decisionmaking, and actions, as specified and required in regulations issued by the Secretary
pursuant to Section 104(g) of Title I of the Housing and Community Development Act, as
amended (42 U.S.C. 5304) and published in 24 CFR Part 58. The Grantee further acknowledges
its responsibility for adherence to the Grant Agreement by sub-recipient entities to which it
makes funding assistance hereunder available.
This Grant Agreement may be amended only with the prior written approval ofHUD. In
considering proposed amendments to this Grant Agreement, HUD shall review, among other
things, whether the amendment is otherwise consistent with HERA, the Notice, and the
Regulations.
The Grantee may amend its Grantee Submission; however, such amendments, including
substantial amendments as defmed in 24 CFR Part 91, will be subject to the requirements of24
CFR Part 91 (or any successor regulation) and any revisions HUD may make to the Notice (or
any successor Notice or regulation).
The Grantee shall at all times maintain an up-to-date copy of its Grantee Submission, including
all amendments approved by HUD, on its Internet website as required by the Notice. Further,
the Grantee shall maintain information on all drawdowns, deposits, and expenditures of grant
funds and program income under this Funding Approval and Grant Agreement and any other
records required by 24 CFR 570.506, in its files and shall make such information available for
audit or inspection by duly authorized representatives ofHUD, HUD's Office of the Inspector
General, or the Comptroller General of the United States.
The Grantee shall submit information on performance measurement as established by the
Secretary for activities undertaken with NSP grant funds.
The Grantee is advised that providing false, fictitious or misleading information with respect to
NSP Grant Funds may result in criminal, civil or administrative prosecution under 18 USC
S 1 001, 18 USC S 1343, 31 USC S3729, 31 USC S3801 or another applicable statute.
Close-out of this grant shall be subject to the provisions of 24 CFR 570.509 or: such close-out
instructions as may hereafter be issued by HUD specifically for NSP grants.
[Remainder of this page blarikJ
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This NSP Grant Agreement is binding with respect to HUD in accordance with its terms upon
the execution by HUD in the space provided above, subject to execution on behalf of the
Grantee.
The United States Department of
Housing and Urban Development
The Grantee
[Insert Grantee Name]
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For HUD CFO Use Onlv
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Date
10-16
RESOLUTION NO. 2009-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING THE CITY MANAGER TO
EXECUTE THE FUNDING APPROVAL AGREEMENT
WITH THE DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT AND OTHER RELATED DOCUMENTS;
AND AUTHORIZING APPROPRIATIONS OF $2,830,072 TO
FUND THE AMENDED 2008/2009 ANNUAL ACTION
PLAN FOR IMPLEMENTATION OF THE
NEIGHBORHOOD STABILIZATION PROGRAM (NSP)
WHEREAS, the City of Chula Vista will receive $2,830,072 of grant funds under the
CDBG Neighborhood Stabilization Program ("NSP"); and
WHEREAS, in January, 2009, the Department of Housing and Urban Development
("BUD") approved the City's Amended 2008-2009 Annual Action Plan containing the proposed
activities to be funded with NSP funds, including the First Time Homebuyer Downpayment and
Closing Cost Assistance Program; and
. WHEREAS, the City is required to execute an agreement with HUD for use of these
funds; and
WHEREAS, the City desires to appropriate the funds received from the grant to fund
the NSP Program.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista authorizes appropriations of $2,830,072 to fund the Amended 2008-2009 Annual Action
Plan activities and authorizes the City Manager to execute an agreement with the Department of
Housing and Urban Department and other necessary related documents.
James D. Sandoval
City Manager
Presented by:
10-17
RESOLUTION NO. 2009-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORlZING THE CITY MANAGER TO
EXECUTE THE SECOND AMENDMENT TO THE
AGREEMENT BETWEEN THE CITY AND COMMUNITY
HOUSINGWORKS FOR UNDERWRITING SERVICES FOR
A FIRST TIME HOMEBUYER DOWNP A YMENT AND
CLOSING COST ASSISTANCE PROGRAM
WHEREAS, the City and Community HousingWorks entered into to an agreement, dated
August 23, 2007, to undervvrite the City's First Time Homebuyer Loans and subsequently
amended on June 19,2008 to include a pilot program that would provide an incentive for low-
income families wishing to enter the homeownership market to purchase abandoned foreclosed
property; and
WHEREAS, the City of Chula Vista will receive $2,830,072 of grant funds under the
CDBG Neighborhood Stabilization Program; and
WHEREAS, in January, 2009, HUD approved the City's Amended 2008-2009 Annual
Action Plan containing the proposed activities to be funded with NSP funds, including the First
Time Homebuyer Downpayment and Closing Cost Assistance Program; and
WHEREAS, City staff has recommended that the . City's Agreement with
HousingWorks be amended to provide for administration of the First Time Homebuyer
Downpayment and Closing Cost Assistance Program, which is being funded by the NSP grant
funds.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista approves the Second Amendment to the agreement between the City and Community
HousingWorks to undervvrite the additional homebuyer loans.
James D. Sandoval
City Manager
Presented by:
10-18