HomeMy WebLinkAbout2009-11-09 10-013 ORDERCOUNCIL ACTION
Date: November 9, 2009 Item No. 10 013
Item/Subject: ORDER, Authorizing the Director of Community & Economic Development to take
Certain Actions to Implement the Neighborhood Stabilization Program
Responsible Department: Community and Economic Development
Commentary:
This Order would authorize the Director of Community and Economic Development to take actions to
acquire, rehabilitate, and sell property under the federally funded Neighborhood Stabilization
Program. The NSP is designed to mitigate the adverse impacts on neighborhoods of foreclosures by
acquiring, rehabilitating, and reselling foreclosed and vacant residential properties that might
otherwise become sources of abandonment and blight. The U.S. Department of Housing and Urban
Development (HUD) has made available through the State of Maine an allocation of $1,084,873 in
Neighborhood Stabilization funds to the City of Bangor. These funds may be used to purchase and
rehabilitate residential properties that have been abandoned or foreclosed; and to sell, rent, or
redevelop the properties for use by individuals and families whose incomes do not exceed 120% of
median family income. The purchase price using NSP funds cannot exceed 99% of the current
appraised market value. The City has until September 2010 to commit the funds. This Order would
authorize the Director of Community and Economic Development to identify properties that are
eligible under the Neighborhood Stabilization Program; to have the properties appraised; to make
offers to acquire the properties at a price that does not exceed 99% of the appraised value if the cost
of acquisition and rehabilitation of the properties does not exceed the values of similar properties in
the neighborhood in which they are located; to acquire the property if the owner(s) accept the offer;
to rehabilitate the property for resale; and to sell the properties acquired under the guidelines, rules
and regulations of the Neighborhood Stabilization Program. Costs related to the acquisition,
rehabilitation and disposition of the property are to be funded through the City's federally funded
Neighborhood Stabilization Program.
Department Head
Manager's Comments:
This has been reviewed and is recommended by the Business and Economic Development Committee.
City Manager
Associated Information:
Budget Approval:
Legal Approval:
Introduced for
X Passage
First Reading
Referral
Page , of _
Director
Solicitor
10
Assigned to Councilor _ r 9 0 J
� Hawes November 9, 2009
CITY OF BANGOR
(TITLE.) ORDER, Authorizing the Director of Community & Economic Development to
take Certain Actions to Implement the Neighborhood Stabilization Program
WHEREAS, Federal Community Development Block Grant Neighborhood Stabilization
Program funds are designed to provide targeted emergency assistance to State
and local governments to acquire and redevelop foreclosed properties that might
otherwise become sources of abandonment and blight within their communities;
and
WHEREAS, the intended use of the funds is to mitigate the adverse impacts on
neighborhoods with foreclosures; and
WHEREAS, the U.S. Department of Housing and Urban Development (HUD) has made
available through the State of Maine an allocation of $1,084,873 in Neighborhood
Stabilization funds to the City of Bangor; and
WHEREAS, Neighborhood Stabilization Program funds may be used to purchase and
rehabilitate residential properties that have been abandoned or foreclosed; and
to sell, rent, or redevelop the properties for use by individuals and families
whose incomes do not exceed 120% of median family income; and
WHEREAS, the purchase price using NSP funds cannot exceed 99% of the current appraised
market value:
NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF
BANGOR THAT
The following guidelines for the City of Bangor Neighborhood Stabilization Program are hereby
adopted, and the Director of Community and Economic Development is authorized to take the
following actions relative to the Neighborhood Stabilization Program:
1. The City of Bangor, through its Department of Community and Economic Development, shall
carry out the federally funded Neighborhood Stabilization Program (NSP) in compliance with
the Housing and Economic Recovery Act of 2008.
2. The Director of Community and Economic Development is authorized to identify vacant
residential properties in Bangor that have been foreclosed, blighted, or abandoned (no tax
payments have been made and the property has been vacant for at least 90 days).
3. The Director or Assistant Community Development Director shall verify that the property is
vacant, foreclosed, blighted, or abandoned through review of seller's records, Assessing
10 013
records, appraisal report, tax records, records at the Penobscot Registry of Deeds, and
other such records as may be available.
4. The Director or Assistant Community Development Director is authorized to have eligible
properties appraised by a qualified licensed independent residential real estate appraiser.
5. The property must be inspected by an inspector from the City's Code Enforcement Office
who will provide a report identifying all code and HUD Housing Quality Standards
deficiencies existing on the property.
6. A cost estimate for the rehabilitation of the property to bring it into compliance with City of
Bangor building maintenance codes and HUD Housing Quality Standards will be prepared by
the Department of Community and Economic Development Housing Rehabilitation
Coordinator or equally qualified person.
7. The Director is authorized to, on behalf of the City, submit offers to purchase the property
provided that:
7.1. The offering price for acquisition does not exceed 99% of the appraised value.
7.2. The combined proposed offering price and estimated cost of rehabilitation to bring the
property's condition up to HUD Housing Quality Standards does not exceed the range of
City of Bangor assessed values of similar property in the neighborhood in which the
property is located and the City Assessor has found that a total of the purchase price
and rehabilitation cost estimate will not exceed a reasonable value for a property in the
target neighborhood.
8. If it is determined by the Director that the property has deteriorated to the point that
rehabilitation of the property is not economically feasible, or the property should not be
rehabilitated for use because of its proximity to other structures or overcrowding conditions
or there exist health or safety issues that would be remediated by demolition and clearance
of the structure(s) on the property, the Director may take action to have the structure(s)
demolished and cleared.
9. Properties acquired and rehabilitated may be sold to eligible buyers under the NSP program
provided that:
9.1. The property must be sold to a homebuyer whose income does not exceed 120% of
area median income as follows:
9.1.1. 1 person household = $51,700
9.1.2. 2 person household = $59,150
9.1.3. 3 person household = $66,550
9.1.4. 4 person household = $73,900
9.1.5. 5 or more person household = $79,855.
10. The Director of Community and Economic Development is hereby authorized to carry out
the above approved activities.
BE IT FURTHER ORDERED that if the property owners should choose not to accept the City's
offer to purchase, no further action would be taken to acquire the property without future City
Council authorization; costs related to the acquisition, rehabilitation and future disposition of the
property are to be funded through the City's federally Neighborhood Stabilization Program.
IN CITY COUNCIL
November 9, 2009
Notion Nade and Seconded for Passage
Z
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CITY CLERK
# 10-013
(T1TLE))_A"thgr
rhP nirector of
Economic Development to
_take Certain Actions to Implement the
�hborhood Stabilization Program
Assigned to Councilor