HomeMy WebLinkAboutCity of Tamarac Resolution R-2012-042E
Temp Reso #12172
Page 11
February 17, 2012
CITY OF TAMARAC, FLORIDA
RESOLUTION NO. R-2012 Y�
A RESOLUTION OF THE CITY COMMISSION OF THE
CITY OF TAMARAC, FLORIDA, AMENDING THE
COMMUNITY DEVELOPMENT BLOCK GRANT
("CDBG") PROGRAM, FISCAL YEAR 2010/11 ANNUAL
ACTION PLAN TENTH PROGRAM YEAR -
NEIGHBORHOOD STABILIZATION PROGRAM ROUND
3 TO PROVIDE FOR AN INCLUSION OF ELIGIBLE
ACTIVITY "FINANCING MECHANISMS"; PROVIDING
FOR CONFLICTS; PROVIDING FOR SEVERABILITY;
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City of Tamarac ("City") is a Community Development
Block Grant ("CDBG') entitlement community; and
WHEREAS, on February 23, 2011, the City Commission approved
Resolution No. R-2011-22, which approved the Substantial Amendment to the
CDBG Program Fiscal Year 2010/11 Annual Action Plan Tenth Program Year
("Action Plan") for the use of the funds allocated to the City for the Neighborhood
Stabilization Program Round 3 ("NSP-3"); and
WHEREAS, on September 14, 2011, the City Commission approved
Resolution No. R-2011-102, which approved the first amendment to the CDBG
Program Fiscal year 2010/11 Annual Action Plan Tenth Program Year ("Action
Plan") for the expansion of the target area under the Neighborhood Stabilization
Program Round 3 ("NSP-3"); and
Temp Reso #12172
Page 12
February 17, 2012
WHEREAS, the City Commission desires to amend the Action Plan in
order to include a new eligible activity, "Financing Mechanisms", to provide for
soft second mortgage assistance for eligible homebuyers with the purchase of
City owned single-family properties acquired with NSP3 program funds; and
WHEREAS, a copy of the amended Action Plan, is attached hereto as
Exhibit "A", and incorporated herein by reference; and
WHEREAS, the City Commission deems it to be in the best interest of the
citizens and residents of the City of Tamarac to approve the amendment
including the "Financing Mechanism" activity to the City's Action Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION
OF THE CITY OF TAMARAC, FLORIDA THAT:
SECTION 1. The foregoing 'WHEREAS" clauses are true and correct and
hereby ratified and confirmed by the City Commission. All exhibits attached
hereto are hereby incorporated herein.
SECTION 2. The City Commission of the City of Tamarac, Florida, hereby
approves the amendment to the CDBG Program Fiscal Year 2010/11 Annual
Action Plan Tenth Program Year in order to include the "Financing Mechanism "
activity as depicted in Exhibit "A" to this Resolution, in order to provide soft
second mortgage assistance to eligible homebuyers in conformance with NSP-3
guidelines.
SECTION 3. The appropriate City officials are authorized and directed to
execute the necessary documents to comply with this Resolution.
Temp Reso #12172
Page 13
February 17, 2012
SECTION 4. All Resolutions or parts of Resolutions in conflict herewith,
shall be and are hereby repealed insofar as there is conflict or inconsistency.
SECTION 5. If any clause, section or other part of this Resolution shall be
held by any court of competent jurisdiction to be unconstitutional or invalid, such
unconstitutional or invalid part shall be considered eliminated and shall in no way
affect the validity of the remaining portions of this Resolution.
SECTION 6. This Resolution shall become effective immediately upon its
passage and adoption by the City Commission.
PASSED AND ADOPTEP BY THE CITY COMMISSION OF THE CITY OF
TAMARAC, FLORIDA THIS DAY OF �-- , 2012.
F *L Aft M CITY CLERK 4At
ON
I HEREBY CERTIFY that I
Have approved this
RESOLUTION as to form.
�111- AMU L S. GOREN
CITY ATTORNEY
BY: LtL 36b I
MAYOR PAMELA BUSHNELL
RECORD OF COMMISSION VOTE
MAYOR BUSHNELL
DIST 1: COMM. SWENSON
DIST 2: COMM. GOMEZ
DIST 3: V/M GLASSER �
DIST 4: COMM. DRESSLER
0 CITY OF TAMARAC
FY 2010/2011 Annual Action Plan
Substantial Amendment
Neighborhood Stabilization Program 3 under
the Dodd -Frank Wall Street Reform and Consumer
is
Protection Act
through the
U.S. Department of Housing and Urban Development
(HUD)
Prepared by:
City of Tamarac
Community Development Department
Housing Division
7525 NW 88th Avenue
Tamarac, FL 33321
www.tamarac.org
Action Plan Submitted - February 2011
1st Amendment - September 2011
Technical Amendment - January 2012
40 2"d Amendment - March 2012
Neighborhood Stabilization Program 3 Application 0
$1,427,857.00
CITY OF TAMARAC, FLORIDA
7525 NW 88 Avenue
Tamarac, FL 33321
(954) 597-3510
Website: www.tamarac.orq
City Manager:
Michael C. Cernech
Mayor Pamela Bushnell
Vice Mayor Diane Glasser
Commissioner Marion Swenson
Commissioner Michelle Gomez
Commissioner Harry Dressler
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0
0
NSP3 Grantee Information
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NSP3 Program Administrator Contact Information
Name Last, First
Bauldree, Angela
Email Address
an elab tamarac.or
Phone Number
954-597-3539
Mailing Address
7525 NW 88 Avenue, Room 206, Tamarac, FL 33321
Areas of Greatest Need
Map Submission
The map generated at the HUD NSP3 Mapping Tool for Preparing Action Plan website is
included as an attachment.
Data Sources Used to Determine Areas of Greatest Need
Describe the data sources used to determine the areas of greatest need.
Response:
The City of Tamarac's Community Development Department, Housing Division utilized the
following data sources to assist with determining the areas of greatest need:
❖ NSP3 HUD User GIS Information by Census Tract
❖ NSP3 Mapping Tool
HMDA Data by Census Tract
❖ CoreLogic Software
❖ South Florida Block Shopper Website
❖ Trulia.com
❖ Realtytrac.com
❖ The City's Foreclsoure Registration Program list
Each data source was used to confirm where the areas of greatest need fell by layering the data
and assessing income, mortgage, delinquencies and other pertinent data. In many cases,
property addresses were duplicated across the different data sources and areas of
concentration of distressed neighborhoods become easier to identify. GIS Mapping provided
visual confirmation of concentration areas where NSP3 eligible properties were located.
Data from CoreLogic (December 2010) identified over 3,200 properties that were in some stage
of foreclosure city-wide. Additionally, over 800 properties within the City had outstanding Code
violations and the overall condition of certain neighborhoods further confirmed that layering the
data made for better decision making indentifying the areas of greatest need. The Code
Compliance Division recently implemented a lien amnesty program which will be advertised and
promoted more intensely within the areas of greatest need. With this, even properties not
assisted with NSP3 funds will have an opportunity to bring their properties up to Code and
improving the appreance of their home as well as the neighborhood they live in further fostering
the neighborhood stabilization theme.
According to HUD User's GIS Information by Census Tract data, all twelve census tracts within
the City had a "need score" of 19 or higher exceeding the state's minimum need score of 17,
with 20 being the highest score possible. Four of the census tracts had a delinquency rate of
3
over 20%. However, since NSP3 requires an even smaller target area than that of NSP1, staff
was tasked with gathering additional data that would allow the City to reduce the areas of
greatest need to 2-3 neighborhoods. Additionally, the Dodd -Frank Act strongly encourages
grantees to define the areas of greatest need small enough that the NSP3 investment impacts
approximatley 20% of the areas defined.
NSP3 funds will be utilized to acquire, rehabilitate and re -sell eligible properties within the areas
of greatest need which are listed below. Staff will attempt to focus on one area of greatest need
at a time with its initial allocation, and move to the other areas with program income as it is
generated at the re -sale stage. The City of Tamarac's initial allocation will allow for assistance
at approximately 6-10 properties. This number will depend on factors such: cost of acquisition,
the discount offered by the seller, and severity of distress and rehabilitation costs required prior
to re -sale.
MARKET CONDITIONS - DATA:
TRULIA.COM According to trulia.com, a real estate website recommended by HUD for
the purpose of gathering NSP3 market information, the following information was available to
evaluate the City's market conditions:
The data from trulia.com represents sales between September - November 2010.
Average Listing Price: $111,844.00
Median Sales Price: $ 62,500.00 Based on 416 home sales between Sept. -Nov. 2010
Decrease of 32.1 % compared to same period last yr
Average Price Per sqft: $ 61.00 Decrease of 47.4% compared to same period last yr.
REALTYTRAC.COM
Another website utilized to gather market conditions was RealtyTrac.com. The following data
was provided:
Foreclosure Status Distribution:
Pre -Foreclosures = 28% of total properties in some stage of foreclosure.
Auction = 38% of total properties in some stage of foreclosure.
Bank Owned = 34% of total properties in some stage of foreclosure.
"Highest Availibility"
Estimated Market Value -Properties between $100-$200K.
Foreclosures by Square Footage - Properties with less than 1,000 sqft.
Foreclosures by Number of Bedrooms - Properties with 2 bedrooms.
A Geographical Comparison by Realtytrac.com comparing County, State and National figures
shows that Broward County has 40% of its units foreclosed upon compared to the State of
Florida at 37% and the Nation of 20%.
According to RealtyTrac.com, the average difference between average sales price and average
foreclosure sales price is $48,464.00.
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This information is consistant to what the City of Tamarac experienced under its NSP1 program.
The following averages were experienced under the City's NSP1, as of September 2010:
Average Contract Price: $111,914.00
Average Home Rehabilitation Amount: $ 37,925.52
NSP3 HUD User GIS Information by Tamarac Census Tract
Census
Tract
Need
Score
State
Minimum
04-07
HMDA
Mt s
Deli %
USPS
Resid.
Addresses
USPS
90+
Days
Vacant
USPS
Resid.
Addresses
No Stat
204.06
20
17
1713
21.90%
2999
161
0
204.09
19
17
1355
16.30%
5306
191
1
204.10
19
17
1831
16.70%
5669
195
28
204.11
20
17
1505
18.50%
2922
45
0
502.02
20
17
2202
19.80%
4549
177
36
503.05
20
17
1884
20.40%
3920
155
11
601.05
20
17
1705
21.90%
3300
84
10
601.06
20
17
2207
23.00%
4380
245
24
601.07
20
17
711
19.30%
1790
83
2
601.09
19
17
745
17.20%
1469
31
1
601.11
19
17
1633
16.50%
3125
60
1
601.12
20
17
1880
19.00%
3896
192
1
Since smaller areas of greatest need were encouraged, staff broke down the same data
provided at the census tract level to smaller "areas of greatest need" at the neighborhood level.
Determination of Areas of Greatest Need and Applicable I iers
Describe how the areas of greatest need were established and whether a tiered approach
is being utilized to determine the distribution of funding.
Response:
In order to determine the City's "areas of greatest need", staff mapped foreclosures identified by
CoreLogic, and layered data from other resources, to find the concentration of potential NSP3
eligible properties. The number of potential eligible properties increased substantially when the
definition of "foreclosure" was expanded on by HUD to include properties that are:
• 60 Days delinquent under Mortgage Bankers of America delinquency calculations and
owner notified,
• Property owner 90 days or more delinquent on tax payments,
• Foreclosure proceedings initiated or completed,
• Foreclosure proceedings complete, title transferred to intermediary that is NOT an NSP
grantee, sub, contractor, developer, or end user.
CoreLogic provided a report that shows all properties within Tamarac that are in some stage of
foreclosure, from a Lis Pendis to Real Estate Owned (REO). Staff ran this report as late as
December 2010 which resulted in over 3,200 properties. Additionally, data from South Florida
Block Shopper and an internal Foreclosure Registration program were mapped and used to
identify neighborhoods with a concentration of foreclosures. Under the NSP3 program, only
single-family properties will be considered. With these combined factors, staff was able to
identify at least six "areas of greatest need" on which to obtain pertinent data in order to narrow
down the number of areas of greatest need to three. Data from HUD User (NSP3) Mapping
further assisted with the gathering of information such as need scores, vacancy rates, high cost
mortgages, and market analysis.
Once the data for the potential six areas of greatest need was obtained, the City was able to
narrow the number down to three areas of greatest need. The City chose to identify three
potential areas for the following reasons:
• The Neighborhood NSP3 Score for all three areas is 20, the highest possible score.
• All three neighborhoods had over 50% of the population at less than 120% AMI.
• The percentage of delinquencies was high in each area.
• A high number of homeowners had high cost mortgages.
• Excessive deteriorating Code conditions and violations were concentrated in the three
areas.
The City's areas of greatest need are as follows:
1) Sunflower (Central area) Original Area 15t Amend (Sept 2011. Revised Boundaries)
Project Summary with map - Exhibit A Project Summary with map -Revised
NSP3 Planning Data (HUD User) - Exhibit B NSP3 Planning Data(HUDUser) Revised
2) Tamarac Lakes North (South of Prospect Rd)
Project Summary with map - Exhibit C
NSP3 Planning Data (HUD User) - Exhibits D
3) Mainlands Section 7
Project Summary with map - Exhibit E
NSP3 Planning Data (HUD User) - Exhibits F
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E
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The areas of greatest need listed above were identified based on the following information
provided by HUD User:
NSP3 Areas of Greatest Need Data
1 st Amendment -September 2011-Revised Sunflower
Boundaries
Area Name
SUMIeweF
Cenival
Area,
Sunflower-
Revised
Boundaries
Sept2011
Tamarac
Lakes
North-
Section 3
Mainlands
Section 7
Need Score
29
47
26
9
55. Il°1e
29.9%
37
21-s�°k
29
2
9
204 06
20
17
151
30
55.1 %
28.8%
37
21.9%
158
8
1
204.06
20
17
80
16
70.5%
40.1 %
34.7
19.8%
86
3
1
502.02
20
17
66
13
84.1 %
66.3%
31
19.3%
66
3
0
601.07
State Minimum
Total Housing Units
# of Units to make 20%
Impact
Persons Less than
120% AMI
Persons Less than 80%
AMI
04-07 HMDA Mt s
Deli % 90 + days)
USPS Resid.
Addresses
USPS 90+ Days Vacant
USPS Resid.
Addresses No Stat
Census Tract
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A map of each area of greatest need was created in HUD's NSP3 mapping tool and submitted
electronically. HUD responded with data pertinent to the specified boundaries and associated
census tract information. This data showed the total number of units within the defined area
allowing the City to determine how many units were necessary to reach the intended goal of
20% impact per area of greatest need.
Due to the lag time between the submission of this application and the grant funding agreement,
the priority to which area will be targeted first will be determined once the grant funding
agreement is executed. Between December 2010 when the data was obtained and the date of
exeecution of the grant funding agreement, the number and location of eligible properties will
change effecting which area the City begins its acquisition.
Since the activities proposed result in Program Income as a result of the re -sale of the 6-10
initial acquired and rehabilitated properties, the program income will be utilized to continue the
same activitv creatina areater neighborhood stabilization.
Definitions and Descriptions
Definitions
Term Definition
Blighted Structure A structure is blighted when it exhibits objectively determinable
signs of deterioration sufficient to constitute a threat to human
health, safety, and public welfare.
Properties identified for demolition will meet one or
more of the following criteria as a blighted structure:
1. Building Deterioration
2. Site Deterioration or site deficiencies
3. Unsanitary and unsafe conditions and incompatible
uses
4. Six or more ownership parcels per block
5. Buildings greater than 40 years of age_
6. Presence of closed/vacant buildings
7. Presence of vacant lots
8. Buildings in violation of property maintenance code
violations
9. Presence of buildings scheduled for demolition
Affordable Rents Those requiring not more than 30 percent of an income cut-off
defined in relation to Low -Moderate Area Median Income
(AMI).
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Descriptions
Term
Definition
Long -Term
Under its NSP3 Program the City will follow HOME Affordability
Affordability
Terms for its soft -seconds in the form of a Deed Restriction.
For any down payment assistance offered utilizing SHIP or
HOME funds the City will implement the affordability terms
associated with that program. With extensive affordability time
frames, recipients are encouraged to remain in their property to
keep from repaying the loan. Should the property change
ownership during the affordability terms, the City would
recapture the balance due allowing the funds to go back into
the program and assist another homebuyer.
Should leveraging be utilized for Down Payment Assistance or
closing costs, the affordability terms described within that
funding sources agreement will be implemented. If HOME
funds are utilized, HOME Affordability terms will be applied.
Housing Rehabilitation
All housing rehabilitation work will follow Broward County
Standards
Housing Standards, and Florida Building Code as well as City
Code.
Home Rehabilitation work specifications include such health
and safety items as, roof repair and replacement, repair to
exterior walls and stucco, repair or replacement of unsafe
electrical, plumbing and mechanical systems, removal of lead
and asbestos, and installation of impact resistant windows or
storm shutters. All replacement of appliances will incorporate
the installation of energy star rated systems where applicable.
Soft Second Mortgage
A second mortgage with payments that are forgiven, deferred,
2"d Amendment —
or subsidized in some fashion, generally until resale of the
March 2012
mortgaged property.
Low -Income Targeting
Low -Income Set -Aside Amount
Enter the low-income set -aside percentage in the first field. The field for total funds set aside will
populate based on the percentage entered in the first field and the total NSP3 grant.
Identify the estimated amount of funds appropriated or otherwise made available under
the NSP3 to be used to provide housing for individuals or families whose incomes do not
exceed 50 percent of area median income.
Response:
Total low-income set -aside percentage (must be no less than 25 percent): 25.00%
Total funds set aside for low-income individuals = $325,000.00 January 2012-$357,000.00
Meeuny ww-nJcvnie iaryeL
Provide a summary that describes the manner in which the low-income targeting goals
will be met.
Response:
The City will conduct an Open Enrollment to collect applications from families/households
interested in the program. Applications will identify household income, family size, first
mortgage maximum, and other factors necessary to determine their housing needs.
The City may supplement families/households under the 50% AMI level by offering Second
Mortgages utilizing other funding sources such as SHIP or HOME, or providing a soft -second. A
second mortgage provided by the City will reduce the first mortgage loan amount, helping to
lower the households monthly housing payment. Part of the City's eligibility requirement is that
front end ratios may not exceed 35% of a households monthly income. This 35% front-end ratio
consists of mortgage principal, taxes, insurance and any homeowners association fees, if
applicable.
Under NSP1, the City utilized the Financing Mechanisms activity and provided Down Payment
Assistance to income eligible buyers. During the course of the two Open Enrollments, the City
took in over 300 applications, all pre -qualified with a lender. Of the 300, over 250 were certified
as income eligible and given 30-90 days to secure a contract on a home. Of the 250 applicants
several unforeseen circumstances arose such as; job loss, the addition or reduction in the
number of household members, health and medical changes as well as credit challenges. The
City assisted 53 households in the purchase of a new home.
Of the 53 households assisted under NSP1 16, or 30%, were below 50% AMI.
Acquisition and Relocation
Demolition or Conversion of LMI Units
Does the grantee intend to demolish or convert any low- and moderate -
income dwelling units (i.e., <_ 80% of area median income)? No
If yes, fill in the table below.
Question
Number of
Units
The number of low- and moderate -income dwelling units—i.e., <_ 80% of area
median income —reasonably expected to be demolished or converted as a
direct result of NSP-assisted activities.
N/A
The number of NSP affordable housing units made available to low-,
moderate-, and middle -income households—i.e., <_ 120% of area median
income —reasonably expected to be produced by activity and income level as
provided for in DRGR, by each NSP activity providing such housing
(including a proposed time schedule for commencement and completion).
N/A
The number of dwelling units reasonably expected to be made available for
households whose income does not exceed 50 percent of area median
N/A
income.
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Public Comment
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L;mzen varticipation Tian
Briefly describe how the grantee followed its citizen participation plan regarding this
proposed substantial amendment or abbreviated plan.
Response:
As required by the Wall Street Reform and Consumer Protection Act of 2010 (Dodd -Frank Act),
the U.S Department of Housing and Urban Development and the City's Citizen Participation
Plan (available upon request), a 15 day Public Review period was held from February 8, 2011 to
February 22, 2011. No comments were received during the 15 day public review period.
A Public Hearing was opened during the February 23, 2011 City Commission meeting.
No comments were received during the public hearing.
In addition to the Public Review period and Public Hearing, staff created an NSP3 Focus Group
which consisted of eight local professionals with expertise in affordable housing, lending and
real estate. The Focus Group met on January 13, 2011 and discussed the various
requirements as well as obstacles the City needs to consider when preparing its NSP3 Action
Plan. Input/ideas generated from the Focus Group were:
• The City should evaluate the financial situation of the Homeowners Association when
buying in areas with an HOA to be sure the HOA is stable.
• The City may want to offer penalties or incentives to home rehabilitation contractors with
regard to the timeliness of completing the rehabilitation work to reduce the length of time
the City owns the property resulting in additional carrying costs.
• Look into the Home Path program to see if it works with the City's NSP3 Program.
• Down Payment Assistance will be necessary for many buyers, even if just for the closing
costs, therefore, the City needs to make funds available from its HOME or SHIP funds.
• Keep local lenders and realtors informed as to Open Enrollment dates and deadlines to
allow them to assist with finding buyers or offering mortgages that compliment the
program.
Presentations to the Mayor and City Commission, as well as the City's Executive Team were
also conducted to generate input.
The City's Housing and Neighborhood Programs Manager met with a local non-profit agency
currently administering the NSP1 and NSP2 funds for other local municipalities to discuss the
City's Plan and options. The discussion included administrative capacity as well as activity
design. Due to the high dollar amount associated with "developer fees", the City chose to retain
the NSP3 Program in-house as it did under NSP1.
1 st Amendment -September 2011.
A Public Notice was published Sept 4, 2011 notifying the public that the City will be revising the
"areas of greatest need". A Public Hearing was held September 14, 2011 during the City
Commission meeting. No public comments were received.
2"d Amendment — March 2012
A Public Notice was published February 26, 2012 notifying the public that the City will be adding
the Financing Mechanism activity for down payment assistance in the form of a soft second
mortgage. A Public Hearing was held March 14, 20121 during the City Commission meeting.
No public comments were received.
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NSP Information by Activity
Enter each activity name and fill in the corresponding information. If you have fewer than seven
activities, please delete any extra activity fields. (For example, if you have three activities, you
should delete the tables labeled "Activity Number 4," "Activity Number 5," "Activity Number 6,"
and "Activity Number 7." If you are unsure how to delete a table, see the instructions above.
The field labeled "Total Budget for Activity" will populate based on the figures entered in the
fields above it.
Consult the NSP3 Program Design Guidebook for guidance on completing the "Performance
Measures" component of the activity tables below.
Activity Number 1
Activity Name
Single Famil Acquisition, Rehabilitation and Re -sale - LH25
Uses
Select
all that apply:
❑
Eligible Use A: Financing Mechanisms
®
Eligible Use B: Acquisition and Rehabilitation
❑
Eligible Use C: Land Banking
❑
I Eligible Use D: Demolition
❑
I Eligible Use E: Redevelopment
CDBG Activity or
Activities
24CFR 570.201(a) and (b), 570.202 (a)1
National Objective
Low -Income Housing to Meet 25% Set -Aside LH25
Activity Description
Activity Description:
The City will acquire single-family, NSP eligible residential properties
located in the designated areas of greatest need for the purpose of
rehabilitation and re -sale to income eligible homebuyers. All properties
will be brought up to code, ensure health and safety within the property
and improve the properties energy efficiency prior to re -sale.
Affordability restrictions will be placed on each property in the form of
either a deferred loan as a result of down payment assistance (second
mortgage with recapture terms) or a soft -second, in the form of a deed
restriction on the property. The terms for continued affordability will
depend on the amount of assistance provided, however, at a minimum
the City will implement its terms based on the HOME Programs
affordability periods.
All contractors and consultants have participated in local contractor
training informing them of the City's vicinity hiring preference and
Section 3 hiring if possible. In this economy many of the City's
contractors have been reducing their crews, however, will implement
these programs if applicable. Additionally, proper purchasing
procedures have been followed with regard to consultants, general
contractors or other professionals required to carry out NSP3 activities.
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Market Factors:
Although the City utilized several data sources to locate "current"
eligible properties to identify the areas of greatest need, the constantly
changing influx and sale of foreclosures will alter the data from one
month to another. The City will continually run data reports identifying
the "current" eligible properties to ensure there is still high volume in the
defined areas.
Capacity:
The City's Housing Division successfully administered its NSP1
Program in-house and intends to do the same under NSP3. With a
smaller allocation and longer expenditure deadlines, the City does not
anticipate a problem meeting the requirements and obligations of
NSP3. In addition to the Housing staff, partnerships within the agency
and outside have been formed to ensure a successful NSP3 Program.
Program Income:
Program Income generated from the sale of a property will be allocated
back into the activity to assist with another property. Once the Program
Income becomes too minimal to assist with a property, it will be
combined with Program Income generated from Activity 2, or the City
will seek guidance from HUD as to how to utilize the remaining funds.
This activity will be carried out in the areas of greatest need as follows:
Location
1) Sunflower
Description
2) Tamarac Lakes North
3 Mainlands Section 7
Source of Funding
Dollar Amount
Budget
NSP3
$$32& 0 00 Jan. 2012-$357,000
Other funding source
$$0.00
Other funding source
$$0.00
Total Budget for Activity
$325,000.00 Jan. 2012-$357,000.00
Performance
Measures
Utilizing our expereince under NSP1, the average investment per
property (acquisition, rehabilitation, and direct costs) was approximately
$120,000.00.
Expected number of units with initial allocation: THREE UNITS
Upon receipt of program income from the re -sale of the initital
properties, additional properties will be assisted.
The goal of this activity is to increase property values, decrease the
number of abandoned and foreclosed properties within the designated
target areas as well as build wealth through homeownersip for the City's
NSP3 homebuyers.
The following chart shows the City's expected goals, outputs and
outcomes:
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Goal
Output
Outcome
Attract new
A minimum of 3
Increased level of
homeowners to the
properties
homeownership
City
Acquired/Rehabilitated
and Re -Sold to income
eligible homebuyers
Improve property
Increase average sales
Increased assessed
values
price
valuations
Decrease number of
abandoned/foreclosed
A minimum of 3
Stabilization of
properties in
Properties no longer
Neighborhood
designated target
vacant
areas
Projected Start Date
4/1/2011 Or, date of execution of agreements with HUD
Projected End Date
3/31/13
Name
City of Tamarac,
FI
Responsible
Location
7525 NW 88 Ave,
Tamarac, FL
Organization
33321
Administrator Contact Info
Angela Bauldree
954-597-3539
Activity Number 2
Activity Name
Single Family Acquisition, Rehabilitation and Re -sale - LMMI
Select
all that apply:
❑
Eligible Use A: Financing Mechanisms
Use
®
Eligible Use B: Acquisition and Rehabilitation
❑
I Eligible Use C: Land Banking
❑
Eligible Use D: Demolition
❑
I Eligible Use E: Redevelopment
CDBG Activity or
Activities
24CFR 570.201(a) and (b), 570.202 (a)1
National Objective
Low Moderate Middle Income Housing LMMH
Activity Description
Activity Description:
The City will acquire single-family, NSP eligible residential properties
located in the designated areas of greatest need for the purpose of
rehabilitation and re -sale to income eligible homebuyers. All properties
will be brought up to code, ensure health and safety within the property
and improve the properties energy efficiency prior to re -sale.
Affordability restrictions will be placed on each property in the form of
either a deferred loan as a result of down payment assistance (second
mortgage with recapture terms) or a soft -second, in the form of a deed
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restriction on the property. The terms for continued affordability will
depend on the amount of assistance provided, however, at a minimum
the City will implement its terms based on the HOME Programs
affordability periods.
All contractors and consultants have participated in local contractor
training informing them of the City's vicinity hiring preference and
Section 3 hiring if possible. In this economy many of the City's
contractors have been reducing their crews, however, will implement
these programs if applicable. Additionally, proper purchasing
procedures have been followed with regard to consultants, general
contractors or other professionals required to carry out NSP3 activities.
Market Factors:
Although the City utilized several data sources to locate "current"
eligible properties to identify the areas of greatest need, the constantly
changing influx and sale of foreclosures will alter the data from one
month to another. The City will continually run data reports identifying
the "current" eligible properties to ensure there is still high volume in the
defined areas.
Capacity:
The City's Housing Division successfully administered its NSP1
Program in-house and intends to do the same under NSP3. With a
smaller allocation and longer expenditure deadlines, the City does not
anticipate a problem meeting the requirements and obligations of
NSP3. In addition to the Housing staff, partnerships within the agency
and outside have been formed to ensure a successful NSP3 Program.
Program Income:
Program Income generated from the sale of a property will be allocated
back into the activity to assist with another property. Once the Program
Income becomes too minimal to assist with a property, it will be
combined with Program Income generated from Activity 2, or staff will
seek guidance from HUD as to how to utilize the remaining funds.
This activity will be carried out in the areas of greatest need as follows:
Location
1) Sunflower
Description
2) Tamarac Lakes North
3 Mainlands Section 7
Source of Funding
Dollar Amount
Budget
NSP3
$$@60-_972-490 Jan. 2012-$928,072
Other funding source
$$0.00
Other funding source
$$0.00
Total Budget for Activit
$960,072.00 Jan. 2012-$928,072.00
Utilizing our experience under NSP1, the average investment per
Performance
property (acquisition, rehabilitation, and direct costs) was approximately
Measures
$120,000.00.
Expected number of units with initial allocation: SEVEN UNITS
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Upon receipt of program income from the re -sale of the initital
properties, additional properties will be assisted.
The goal of this activity is to increase property values, decrease the
number of abandoned and foreclosed properties within the designated
target areas as well as build wealth through homeownersip for the City's
NSP3 homebuyers.
The following chart shows the City's expected goals, outputs and
outcomes:
Goal Output Outcome
6-8 properties
Acquired/Rehabilitate
Attract new d and Re -Sold to
homeowners to the income eligible Increased level of
City homebuyers homeownership
Improve property Increase average Increased assessed
values sales price valuations
Decrease number of
abandoned/foreclosed
properties in
designated target 6-8 Properties no Stabilization of
areas longer vacant Neighborhood
Projected Start Date
4/1/2011 Or, date of execution of agreement with HUD
Projected End Date
3/31 /2013
Name
City of Tamarac
Location
7525 NW 88 Avenue, Tamarac,FL
33321
Responsible
Organization
Administrator Contact Info
Angela Bauldree,
954-597-3539
Activity Number 3 — 2 nd Amendment March 2012
Activity Name
Down Payment Assistance /Soft Second Mortgage
Uses
Select
all that apply:
®
Eligible Use A: Financing Mechanisms
❑
I Eligible Use B: Acquisition and Rehabilitation
❑
Eligible Use C: Land Banking
❑
Eligible Use D: Demolition
❑
I Eli ible Use E: Redevelopment
CDBG Activity or
Activities
24 CFR 570.201(a)
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is
National Objective I Low -Moderate -Middle Income Assistance (LMMI)
Activity Description I Activity Description:
This activity is to assist homebuyers with the purchase of a City owned
foreclosed property. The financial assistance will be in the form of a
soft -second subsidy assistance to bridge the gap between the first
mortgage ability and purchase price. The front end mortgage ratio
should not exceed 30% of a household's income.
Total assistance amounts and recapture terms are as follows:
50% AMI and below
Up to 60% of Purchase
Price
Deferred Loan-30 Years
51% - 80% AMI
Up to 40% of Purchase
Price
Deferred Loan-30 Years
81% - 120% AMI
Up to 25% of Purchase
Price
Deferred Loan-20 Years
Total
Total
Total
Years 1— 5
Years 1— 5
Years 1— 5
Not Prorated
Not Prorated
Not Prorated
10% Shared Equity
10% Shared Equity
10% Shared Equity
Years 6 —10
Years 6 —10
Years 6 —10
Not Prorated
Not Prorated
Not Prorated
5% Shared Equity
5% Shared Equity
5% Shared Equity
Years 11- 30
Years 11- 30
Years 11- 20
Prorated down 5% each
Prorated down 5% each
Prorated down 10%
year
year
each year
Housing Counseling services will be contracted out to HUD approved
Counseling agencies to meet the 8-hour required training for each
homebuyer.
The City may conduct Housing Seminars to homebuyers after the
eligibility process to educate them on the program, home buying
process, lending guidelines, and any other home buying related
activities.
Due to the fact this program will be available to City employees,
Housing staff will ensure proper procedural adherence to the
Department of Housing and Urban Development's Conflict of Interest
regulation 24 CFR 570.611. All employee applications seeking
assistance under the NSP program will be forwarded to the local Miami
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HUD Field Office requesting an "exception" on a case -by -case basis
approving said employee for assistance.
Market Factors:
The City will utilize comparable sales, appraisals, after -rehabilitation
values and other means necessary to determine the fair and
reasonable sales price. Consideration as to costs associated with the
acquisition and rehabilitation of each property may also be factored
into the sales price.
Capacity:
The City's Housing Division successfully administered its NSP1
Program in-house and intends to do the same under NSP3. With a
smaller allocation and longer expenditure deadlines, the City does not
anticipate a problem meeting the requirements and obligations of
NSP3. In addition to the Housing staff, partnerships within the agency
and outside have been formed to ensure a successful NSP3 Program.
Program Income:
Program Income generated from the sale of a property will be
allocated back into the activity to assist with another property. Once
the Program Income becomes too minimal to assist with a property, it
will be combined with Program Income generated from Activity 3, or
the City will seek guidance from HUD as to how to utilize the remaining
funds.
This activity will be carried out in the areas of greatest need as follows:
Location
1) Sunflower
Description
2) Tamarac Lakes North
3 Mainlands Section 7
Source of Funding
Dollar Amount
Budget
NSP3
$$0.00
Other funding source
$$0.00
Other funding source
$$0.00
Total Budget for Activity
$$0.00
Performance
Down payment assistance will be determined based on the applicant's
Measures
income, first mortgage ability and gap financing necessary.
Assistance will be available for each of the properties acquired by the
City available for re -sale.
Projected Start Date
03/14/2012
Projected End Date
09/09/2014
Name
City of Tamarac, FI
Location
7525 NW 88 Ave, Tamarac, FL
Responsible
Organization
33321
Administrator Contact Info
Angela Bauldree
954-597-3539
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NSP3 PROGRAM BUDGET RECAP
Allocation: $ 1,427,857.00
Activity
Single -Family Acquisition/Rehabilitation/Re-Sale - LH25 $ 357,000.00
Single Family Acquisition/Rehabilitation/Re-Sale - LMMI $ 928,072.00
Program Administration $ 142,785.00
Financing Mechanism $ 0.00
NSP3 AMENDMENTS
Vt Amendment — September 2011
This amendment revised "areas of greatest need" within the Sunflower community to
allow for an expanded area to identify eligible properties. Consideration of HUD's
impact preference will remain a factor when selecting properties for acquisition.
Technical Amendment — January 2012
This technical amendment did not require Commission or public review; it was
. administrative in nature to correct the activity budget to accurately reflect the 25% set -
aside requirement for LH25 activities. Staff had deducted the 10% Administrative
allowance prior to calculating the 25% required for LH25. The corrected budget was
changed in DRGR January 2012 and changed accordingly on the Action Plan.
•
2"d Amendment — March 2012
This amendment was to add the Financing Mechanisms activity to allow for down
payment assistance in the form of a soft second mortgage to income eligible buyers for
City owned foreclosures.
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Certifications
Certifications for State and Entitlement Communities
(1) Affirmatively furthering fair housing. The jurisdiction certifies that it will affirmatively
further fair housing, which means that it will conduct an analysis to identify impediments to fair
housing choice within the jurisdiction, take appropriate actions to overcome the effects of any
impediments identified through that analysis, and maintain records reflecting the analysis and
actions in this regard.
(2) Anti -displacement and relocation plan. The applicant certifies that it has in effect and is
following a residential anti -displacement and relocation assistance plan.
(3) Anti -lobbying. The jurisdiction must submit a certification with regard to compliance with
restrictions on lobbying required by 24 CFR part 87, together with disclosure forms, if required
by that part.
(4) Authority of jurisdiction. The jurisdiction certifies that the consolidated plan or abbreviated
plan, as applicable, is authorized under state and local law (as applicable) and that the
jurisdiction possesses the legal authority to carry out the programs for which it is seeking
funding, in accordance with applicable HUD regulations and other program requirements.
(5) Consistency with plan. The jurisdiction certifies that the housing activities to be undertaken
with NSP funds are consistent with its consolidated plan or abbreviated plan, as applicable.
•
(6) Acquisition and relocation. The jurisdiction certifies that it will comply with the acquisition •
and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970, as amended (42 U.S.C. 4601), and implementing regulations at 49 CFR
part 24, except as those provisions are modified by the notice for the NSP program published by
HUD.
(7) Section 3. The jurisdiction certifies that it will comply with section 3 of the Housing and
Urban Development Act of 1968 (12 U.S.C. 1701u), and implementing regulations at 24 CFR
part 135.
(8) Citizen participation. The jurisdiction certifies that it is in full compliance and following a
detailed citizen participation plan that satisfies the requirements of Sections 24 CFR 91.105 or
91.115, as modified by NSP requirements.
(9) Following a plan. The jurisdiction certifies it is following a current consolidated plan (or
Comprehensive Housing Affordability Strategy) that has been approved by HUD. [Only States
and entitlement jurisdictions use this certification.]
(10) Use of funds. The jurisdiction certifies that it will comply with the Dodd -Frank Wall Street
Reform and Consumer Protection Act and Title XII of Division A of the American Recovery and
Reinvestment Act of 2009 by spending 50 percent of its grant funds within 2 years, and
spending 100 percent within 3 years, of receipt of the grant.
(11) The jurisdiction certifies:
a. that all of the NSP funds made available to it will be used with respect to individuals and
families whose incomes do not exceed 120 percent of area median income; and •
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b. The jurisdiction will not attempt to recover any capital costs of public improvements
assisted with CDBG funds, including Section 108 loan guaranteed funds, by assessing
any amount against properties owned and occupied by persons of low- and moderate -
income, including any fee charged or assessment made as a condition of obtaining
access to such public improvements. However, if NSP funds are used to pay the
proportion of a fee or assessment attributable to the capital costs of public improvements
(assisted in part with NSP funds) financed from other revenue sources, an assessment
or charge may be made against the property with respect to the public improvements
financed by a source other than CDBG funds. In addition, with respect to properties
owned and occupied by moderate -income (but not low-income) families, an assessment
or charge may be made against the property with respect to the public improvements
financed by a source other than NSP funds if the jurisdiction certifies that it lacks NSP or
CDBG funds to cover the assessment.
(12) Excessive force. The jurisdiction certifies that it has adopted and is enforcing:
a. A policy prohibiting the use of excessive force by law enforcement agencies within its
jurisdiction against any individuals engaged in nonviolent civil rights demonstrations; and
b. A policy of enforcing applicable state and local laws against physically barring entrance
to, or exit from, a facility or location that is the subject of such nonviolent civil rights
demonstrations within its jurisdiction.
The City does not have its own Police Department, however, does contract with
Broward Sheriff's Office for services covering any police activity needed,
including excessive force.
(13) Compliance with anti -discrimination laws. The jurisdiction certifies that the NSP grant
will be conducted and administered in conformity with Title VI of the Civil Rights Act of 1964 (42
U.S.C. 2000d), the Fair Housing Act (42 U.S.C. 3601-3619), and implementing regulations.
(14) Compliance with lead -based paint procedures. The jurisdiction certifies that its activities
concerning lead -based paint will comply with the requirements of part 35, subparts A, B, J, K,
and R of this title.
(15) Compliance with laws. The jurisdiction certifies that it will comply with applicable laws.
(16) Vicinity hiring. The jurisdiction certifies that it will, to the maximum extent feasible,
provide for hiring of employees that reside in the vicinity of NSP3 funded projects or contract
with small businesses that are owned and operated by persons residing in the vicinity of NSP3
projects.
(17) Development of affordable rental housing. The jurisdiction certifies that it will be abide
by the procedures described in its NSP3 Abbreviated Plan to create preferences for the
development of affordable rental housing for properties assisted with NSP3 funds.
Michael C. Cernec ,
City Manager
Date
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Appendix: NSP3 Action Plan Contents Checklist 0
The checklist below is an optional tool for NSP3 grantees to help to ensure that all required
elements of the NSP3 Substantial Amendment or the Abbreviated Plan are submitted to HUD.
This checklist only includes the minimum required elements that must be included in the NSP3
Action Plan and grantees may want to add additional details. This document must be protected,
as described above, in order to use the checkboxes in this checklist.
1. NSP3 Grantee Information
Did you include the Program Administrator's name, address,
phone, and email address?
2. Areas of Greatest Need
Does the narrative description describe how funds will give
priority emphasis to areas of greatest need?
Does the narrative description specifically address how the
funds will give priority emphasis to those areas:
• With the highest percentage of home foreclosures?
• With the highest percentage of homes financed by
subprime mortgage related loan?; and
• Identified by the grantee as likely to face a significant
rise in the rate of home foreclosures?
Did you create the area of greatest needs map at
http://www.huduser.org/NSP/NSP3.htmi?
Did you include the map as an attachment to your Action
Plan?
ONLYApplicable for States: Did you include the needs of all
❑
entitlement communities in the State?
N/A
3. Definitions and Descriptions
Are the following definitions and topics included in your
substantial amendment?:
• Blighted structure in context of state or local law,
• Affordable rents,
• Ensuring long term affordability for all NSP funded
/1
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housing projects,
• Applicable housing rehabilitation standards for NSP
funded projects
4. Low -Income Targeting
Did you identify the estimated amount of funds appropriated
to provide housing that meets the low-income set aside
Did you provide a summary describing how your jurisdiction
will meet its low-income set aside goals?
5. Acquisition & Relocation
For all acquisitions that will result in displacement did you
specify: The City will not purchase occupied properties.
• The planned activity, N/A
• The number of units that will result in displacement, ❑
N/A
• The manner in which the grantee will comply with URA ❑
for those residents? N/A
6. Public Comment
7. NSP Information by Activity
Did you include a description of all eligible NSP3 activities
you plan to implement with your NSP3 award?
For each eligible NSP3 activity you plan to implement did you
include:
• Eligible use or uses?
�/
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Correlated eligible CDBG activity or activities?
•
Associated national objective?
•
How the activity will address local market conditions?
•
Range of interest rates (if any)?
❑N/A
•
Duration or term of assistance?
•
Tenure of beneficiaries (e.g. rental or homeowner)?
•
If the activity produces housing, how the design of the
activity will ensure continued affordability?
•
How you will, to the maximum extent possible, provide
for vicinity hiring?
•
Procedures used to create affordable rental housing
❑ N/A
preferences?
•
Areas of greatest need addressed by the activity or
activities?
•
Amount of funds budgeted for the activity?
•
Appropriate performance measures for the activity
(e.g. units of housing to be acquired, rehabilitated, or
demolished for the income levels represented in
DRGR) ?
•
Expected start and end dates of the activity?
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Name and location of the entity that will carry out the
activitv?
8. Certifications
Did you sign and submit the certification form applicable to
vour iurisdiction?
9. Additional Documentation
Did you include a signed SF-424?
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