City staff requests that the City Council approve the attached resolution extending the City Administrator’s signature authority to preserve the sustainability of the Neighborhood Stabilization Program and the Foreclosure Acquisition / Rehabilitation Program. The complete Neighborhood Stabilization Plan, approved by City Council in January 2009, can be viewed online: www.ci.billings.mt.us/CDreports.
 
The City of Billings applied for and received nearly $570,000 in funding through the Montana Department of Commerce (MDOC) Neighborhood Stabilization Program (NSP). Funding for this program was made available through the Housing and Economic Recovery Act of 2008 and was used to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within communities. Additional funding for the program was allocated in FY2013-2014 through the Community Development Block Grant (CDBG) totaling $250,000.
 
To date, the Community Development Division acquired and rehabilitated four vacant, foreclosed properties utilizing Neighborhood Stabilization Program funding and program income. Rehabilitation work brought the units into compliance with applicable rehabilitation laws, codes and other requirements relating to housing safety, quality and habitability. The City strategically incorporated modern green building and energy efficiency improvements to provide for long-term affordability and increased sustainability and attractiveness of the housing and neighborhoods. All properties were purchased at a minimum discount from either the U.S. Department of Housing and Urban Development or a financial institution. As per federal mandate, the final sales price was not greater than the initial acquisition and rehabilitation cost or appraised value.

The original Resolution 10-18921 (signed March 2010) established City Administrator signature authority to sign contracts to: purchase homes up to $150,000; rehabilitate homes up to $25,000; and demolish blighted structures up to $20,000. In September 2010, Resolution 10-18984 amended the original Resolution and expanded the City Administrator's authority for rehabilitation contracts to $80,000. As per program policies and procedure of the NSP Program, the City met the requirements of obligating all funding to be utilized in the NSP program via contract by September 19, 2010 and expended all funding obligated by March 19, 2013. Since this time, the City Council allocated additional funding to extend the program by utilizing CDBG funding. Therefore, staff requests the extension of the City Administrator's authority to execute maximum contracts to implement the program through CDBG allocation years from FY2013-2014 forward.

The City Council may:

1) Extend the City Administrator’s signature authority to execute maximum contracts associated with the implementation of the Neighborhood Stabilization Program and the Foreclosure Acquisition / Rehabilitation Program on behalf of the City; or

2) Do not extend the City Administrator’s signature authority to execute maximum contracts associated with the implementation of the Neighborhood Stabilization Program and the Foreclosure Acquisition / Rehabilitation Program.
 

Approving the extension of the City Administrator’s signature authority will allow the operation of the program as allocated for FY2013-2014 and meet future expenditure deadlines associated with CDBG funding. Not approving extension in signature authority would mean that CDBG timeliness deadlines would not be met and staff would need to prepare a substantial amendment to the Consolidated Plan in order to reallocate funds.
 

Staff recommends that Council approve the extension of the City Administrator’s signature authority to execute maximum contracts associated with the implementation of the Neighborhood Stabilization Program and the Foreclosure Acquisition / Rehabilitation Program through CDBG allocation years from FY2013-2014 forward.