HomeMy WebLinkAbout2009-09-30 09-306 ORDERCOUNCIL ACTION
Item No, 09 306
Date: September 30, 2009
Item/Subject: ORDER, Authorizing the Business and Economic Development Committee and
Director of Community & Economic Development to take Certain Actions to
Implement the Neighborhood Stabilization Program
Responsible Department: Community & Economic Development
Commentary: This Order would authorize the Business and Economic Development Committee and
Director of Community & Economic Development to take actions to acquire, rehabilitate, and sell
property under the State of Maine's federally allocated Neighborhood Stabilization Program. The NSP
is designed to mitigate the adverse impacts of foreclosures on neighborhoods 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 Program funds to the City of Bangor. These funds may be used to purchase and
rehabilitate residential properties that have been abandoned or foreclosed on; 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 & Economic Development to have properties appraised that are
eligible for acquisition under the Neighborhood Stabilization Program; the Business and Economic
Development Committee would be authorized to approve an offer to the lending institution/property
owner, the offering amount to be based on the appraised value, but not exceeding 99% of the
appraised value; if the lending institution/property owner of the property accepts the offer, the
Director of Community & Economic Development would be authorized to acquire the property on
behalf of the City; the Business and Economic Development Committee could authorize rehabilitation
of the property for resale; and the Business and Economic Development Committee could authorize
sale of the property under the guidelines, rules, and regulations of the Neighborhood Stabilization
Program. Costs related to the acquisition, rehabilitation, and future disposition of the property are to
be funded through the State of Maine's federally allocated Neighborhood Stabilization Program.
Manager's Comments:
Associated Information:
Budget Approval:
Legal Approval:
Introduced for
X Passage
First Reading
Referral
Department Head
Page _of_
City Manager
nce Director
City Solicitor
A 306
Assigned to Councilor — D' Errico September 30, 2009
CITY OF BANGOR
(TITLE.) ORDER, Authorizing the Business and Economic Development Committee and
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 would
otherwise become sources of abandonment and blight within their communities;
and
WHEREAS, the intended use of the funds is to mitigate the adverse impacts of foreclosures
on neighborhoods; and
WHEREAS, the U.S. Department of Housing and Urban Development (HUD) under the
Housing and Economic Recovery Act of 2008 has made available through the
State of Maine an allocation of $1,084,873 in Neighborhood Stabilization Program
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 on;
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; and
WHEREAS, costs related to the acquisition, rehabilitation and future disposition of the
properties are to be funded through the State of Maine's federally allocated
Neighborhood Stabilization Program;
NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR
THAT
the Business and Economic Development Committee and the Director of Community and
Economic Development are authorized to take the following actions relative to the
Neighborhood Stabilization Program:
1. The Director of Community and Economic Development is authorized to have properties
eligible for acquisition under the Neighborhood Stabilization Program appraised.
09 306
2. The Business and Economic Development Committee is authorized,to approve an offer
to the lending institution/property owner, the offering amount to be based on the
appraised value but not exceeding 99% of the appraised value.
3. If the lending institution/property owner accepts the offer, the Director of Community
and Economic Development is authorized to acquire the property on behalf of the City.
4. The Business and Economic Development Committee may authorize rehabilitation of the
property for resale.
5. The Business and Economic Development Committee may authorize sale of the property
under the guidelines, rules, and regulations of the Neighborhood Stabilization Program.
IN CITY COUNCIL
September 30, 2009 #-09-306
Motion Made and Seconded for Passage
Passed ORDER
(TITLE,)Business & Economic
DEPUTY CITY CLERK
Development Comad rup and Director of Community
f`ommnn; v & Economic Development to take
C -mi -mi„ Artinns to Implement the Neighborhood
Stabilization Program
r
Assigned to Councilor- -