On April 25, 2016, the Billings City Council approved a $175,000 HOME Investment Partnerships Program (HOME) allocation to NeighborWorks Montana for the purposes of constructing two units of affordable housing at Riverfront Pointe; 5318 Denali Drive. The attached Development Agreement has been reviewed by NeighborWorks Montana and is now ready for City Council review and action.  Please also see the following attachments:
 - April 25, 2016 - Council Memo, pages 3 and 5
 - April 25, 2016 - Council Action Summary, page 4
 - Staff Memo - NeighborWorks Riverfront Pointe

HOME program funding has been awarded to the City of Billings by the U.S. Department of Housing and Urban Development (HUD). The City of Billings Community Development Division is required by federal regulation to commit 15 percent of its annual HUD HOME allocation to a Community Housing Development Organization (CHDO) for affordable housing development purposes. The $175,000 represents a multi-year commitment of HOME funds: 
 - FY14-15 $45,257
 - FY15-16 $39,553
 - FY16-17 $44,131
 - $46,059 in either FY16-17 HOME program income or FY17-18 CHDO reserve funds

City Council may:

• Approve, or;
• Disapprove the Development Agreement

NeighborWorks Montana is currently one of two CHDOs certified by the City of Billings. If funding is not committed to the proposed NeighborWorks Montana project, the City would be in jeopardy of noncompliance with federal regulations and would be required to return $45,257 in funds to HUD if not allocated to another project by June 30, 2016.
 

Staff recommends the City Council approve the NeighborWorks Montana Development Agreement and allow staff to finalize the Agreement to commit $175,000 to the Riverfront Pointe project.