Consent 1.L.
Regular City Council Meeting
- Meeting Date:
- 09/13/2010
- TITLE
- Resolution to Amend Resolution 10-18921 to Increase City Administrator Signature Authority to implement the Neighborhood Stabilization Program
- PRESENTED BY:
- Candi Beaudry
- Department:
- Planning & Community Services
Presentation:
PROBLEM/ISSUE STATEMENT
City staff is requesting approval of a Resolution to amend Resolution 10-18921 to increase City Administrator signature authority to implement the Neighborhood Stabilization Program in order to accommodate several improvements recommended to ensure quality rehabilitation and long-term stabilization of properties acquired.
The City of Billings has secured nearly $556,000 in funding through the Montana Department of Commerce (MDOC) Neighborhood Stabilization Program. Funding for this program was made available through the Housing and Economic Recovery Act of 2008 and must be used to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within communities. The City was required to submit contract amendments to MDOC to obligate funding on a project-by-project basis, indicating property address and estimated costs in order to secure funding.
Three vacant, foreclosed properties have been acquired by the City and rehabilitation work lists and costs are being finalized for the following: 1039 Custer Avenue, 3701 Cambridge Drive and 1128 Lynn Avenue. All properties were purchased at minimum discount from either the U.S. Department of Housing and Urban Development or a financial institution, averaging 5% of the appraised value. Initial inspections were completed to generate preliminary work lists for MDOC approval for funding.
Contractors to rehabilitate the homes were selected and prioritized through an open, competitive, advertised Request for Proposals process. The identified work on the homes has increased following recent storms and includes managing and preventing future water intrusion and accessibility / mobility items.
The City must obligate all funding via contract to be utilized in the NSP program by September 19, 2010 and must expend all funding obligated by March 19, 2013.
The complete Neighborhood Stabilization Plan, approved by City Council in January 2009, can be viewed online: http://ci.billings.mt.us/index.aspx?NID=500. The MDOC has no additional funding they can allocate to the project to purchase additional homes, although staff expects program income from the sale of the homes already acquired.
The City of Billings has secured nearly $556,000 in funding through the Montana Department of Commerce (MDOC) Neighborhood Stabilization Program. Funding for this program was made available through the Housing and Economic Recovery Act of 2008 and must be used to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within communities. The City was required to submit contract amendments to MDOC to obligate funding on a project-by-project basis, indicating property address and estimated costs in order to secure funding.
Three vacant, foreclosed properties have been acquired by the City and rehabilitation work lists and costs are being finalized for the following: 1039 Custer Avenue, 3701 Cambridge Drive and 1128 Lynn Avenue. All properties were purchased at minimum discount from either the U.S. Department of Housing and Urban Development or a financial institution, averaging 5% of the appraised value. Initial inspections were completed to generate preliminary work lists for MDOC approval for funding.
Contractors to rehabilitate the homes were selected and prioritized through an open, competitive, advertised Request for Proposals process. The identified work on the homes has increased following recent storms and includes managing and preventing future water intrusion and accessibility / mobility items.
The City must obligate all funding via contract to be utilized in the NSP program by September 19, 2010 and must expend all funding obligated by March 19, 2013.
The complete Neighborhood Stabilization Plan, approved by City Council in January 2009, can be viewed online: http://ci.billings.mt.us/index.aspx?NID=500. The MDOC has no additional funding they can allocate to the project to purchase additional homes, although staff expects program income from the sale of the homes already acquired.
ALTERNATIVES ANALYZED
1) Approve the resolution to amend Resolution 10-18921 to increase City Administrator’s signature authority to facilitate rehabilitation up to $80,000 on behalf of the City;
2) Do not approve resolution to amend Resolution 10-18921 to increase City Administrator’s signature authority to facilitate rehabilitation up to $80,000.
2) Do not approve resolution to amend Resolution 10-18921 to increase City Administrator’s signature authority to facilitate rehabilitation up to $80,000.
FINANCIAL IMPACT
No match is required to access NSP funding through MDOC. Administration funding totaling five percent of approved project activities is allowed to be submitted for reimbursement. The MDOC has already awarded the additional funding for rehabilitation improvements for one of the homes. Not approving the increase in signature authority would mean the City would not be able to utilize the additional $30,000 to evaluate and remedy water intrusion and other needed repairs to improve accessibility.
RECOMMENDATION
Staff recommends that Council approve resolution to amend Resolution 10-18921 to increase City Administrator’s signature authority to execute rehabilitation agreements for up to $80,000 for the Neighborhood Stabilization Program.