HomeMy WebLinkAbout2011-04-11 11-125 ORDERItem Nos. 1? L4J
Date: ADn111, 2011
Item/SubJecb ORDER, Authorizing Che Director of Community & Economic Development to take
Certain Actions t Implement the Neighborhood Stabilization Program —41 Second Street
Responsible DeparDnent: Community and Economic Development
The City received a Neighborhood Stabilization Program (NSP) grant to be used for the acquisition
and redevelopment of foreclosed properties that could become sources of abandonment and blight,
and to sell or rent the rehabilitated properties for use by low income individuals and families. The Oty
purchased a foreclosed tree unit residential property at 41 Second Street and has been working with
Penquis CA.P., Inc. which has been seeking NSP funds from Mainetiousing (Maine Housing Authorcry)
to acquire the property from the Ory, rehabilitate it into two two-bedroom and two three-bedroom
units, and rent to qualifying low income families. Penquis has semred the necessary funding. This
Order would authorize the Director of Community and Economic Development M execute comments
approved by the Cay Solicitor t transfer title of 41 Second Street t Penquls C.A.P., Inc, for its use in
providing affordable housing in conformance wrth NSP guidelines. The City will receive an additional
$100,000 in NSP grant funds which reimburses the City for its cost of the purchase of the property.
Department Head
Manager's Comments:
kl- zA o n.. W na iL.a e�.x� tae. r5 Ln Cel l ✓ll, � A ✓ 1
O. A .n°��^" °^'d'Q. �nJ C..""4— Q, City Manager
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Associated Infomration
Budget Approval: /`n/� 4/
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Finance Director
_ Passage
_ First Reading Page—or—
Renamed
age_o(_Renamed
It 123
AP:11 11, 3011
Assign d b Coumilor Longo
yx` CITY OF BANGOR
(TITLE.) ORDER, Authorizing the Director of Community & Economic Development to
take Certain Actions to Implement the Neighborhood Stabilization Program — 41 Second Street
WHEREAS, the Cry has recelved Neighborhood Stabilization Program (NSP) funds through
the U.S. Department of Housing and Urban Development and Me Maine
Department of Economic and Community Development; and
WHEREAS, NSP funds are designed to provide targeted emergency assistance to State and
local governments to acquire and redevelop foreclosed properties Mat must
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 of foreclosures; and
WHEREAS, the U.S. Department of Hawing and Urban Development (HUD) has made
available through the State of Maine an allocation of $1,08xll in Neighborhood
Stabilization funds to the City of Bangor, and
WHEREAS, Neighborhood Stabilization Program funds may be used to purchase and
rehabilitate residential properties Mat have been abandoned or foreclosed on;
and M sell, rent, or redevelop the properties for use by low Income individuals
and families; and
WHEREAS, the CM through its NSP purchased a forclosed residential property at 41 Second
Street and has partnered with Penquis CA.P., Inc, for Its rehabilitation and reuse
as four affordable aparimnents with NSP funding made available from
MalneHousing far acquisition, rehabilitation and reuse by Penquis C.A.P., Inc.:
BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT
The City of Bangor Director of Community and Economic Development is authorized to execute
documents approved by the CN Solicitor transferring ode of 41 Second Street to Penquis
C.A.P., Inc. for Is use in providing affordabie housing in conformance with NSP guidelines in
consideration of an additional $IgQ000 in NSP grant funds which reimburses the City for its
cost of the purchase of the property, provided that a condition of the qty's transfer of tide be
that the deed require Penquis and hs successors in interest pay property taxes assessed against
the property or, if tax exempt, a payment in Ilou of property loxes of not less than $3,000
annually.
IH CITY COYIF.'IL
April 11. 2011
Motion Made and Seconded for passage
pasaed
c N aY
gfffzte .«b..N of a hl e t
of Co itv A Econaaic Development to
take aIn Aetiooe to Iaplemeot t"
Mnio orhood Stabilization Pro m 6
Second ------
Assigned to CYYY¢Ilee