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HomeMy WebLinkAbout2014-06-09 14-200 ORDERCOUNCIL ACTION Item No. -14-200 Date: June 9, 2014 Item/Subject: ORDER, Authorizing City Staff to Take Certain Actions to Implement the Neighborhood Stabilization Program Responsible Department: Community and Economic Development Commentary: The Order would authorize the Director of Community and Economic Development, City Manager, and Assistant City Manager to take actions to acquire, rehabilitate, and sell property under the federally funded Neighborhood Stabilization Program. This program uses federal funds 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. Presently, only the Director of Community and Economic Development is authorized to take actions regarding the Neighborhood Stabilization Program. During any absence of the Director, this leaves the City unable to complete certain required activities, such as signing closing documents. Manager's Comments: Associated Information: Order Budget Approval: Legal Approval: Introduced for x Passage First Reading Referral Department Head 5��—t �Qo City Manager Finance Director icitor Assigned to Councilor Durgin CI'T'Y OF BANGOR 14-200 JUNE 9, 2014 (TITLE.) ORDER, Authorizing City Staff 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, in 2009, the U.S. Department of Housing and Urban Development (HUD) 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; and WHEREAS, in 2009, the City Council passed an Order authorizing the Director of Community and Economic Development to take actions to implement the Neighborhood Stabilization Program; and WHEREAS, allowing certain other City staff members to take said actions will prevent delays and penalties that might otherwise accrue: 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, City Manager, and Assistant City Manager (the "Authorized Staff Members') are each individually authorized to take the following actions relative to the Neighborhood Stabilization Program: - IN CITY COUNCIL JUNE 9, 2014 PASSED CITY CLERK 1. 2. 3. 4. 5. 6. 7. 91 0 14-200 JUNE 9, 2014 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. Each Authorized Staff Member 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). An Authorized Staff Member shall verify that the property is vacant, foreclosed, blighted, or abandoned through review of seller's records, Assessing records, appraisal report, tax records, records at the Penobscot Registry of Deeds, and other such records as may be available. Each Authorized Staff Member is authorized to have eligible properties appraised by a qualified licensed independent residential real estate appraiser. 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. 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. Each Authorized Staff Member 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. If it is determined by one of the Authorized Staff Members 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, an Authorized Staff Member may take action to have the structure(s) demolished and cleared. 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. Each Authorized Staff Member is hereby authorized activities. to carry out the above approved 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 properly 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 funded Neighborhood Stabilization Program.