City of Columbus - File #: 0162-2011

• File #: 0162-2011
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 1/25/2011
• In control: Health, Housing & Human Services Committee
• On agenda: 2/7/2011
• Title: To adopt the Neighborhood Stabilization Program 3; to authorize the filing of the Neighborhood Stabilization Program 3 application with the U.S. Department of Housing and Urban Development, and to make a substantial amendment to the Consolidated Plan's 2010 Action Plan and to declare an emergency.

Date	Ver.	Action By	Action	Result
2/9/2011	1	CITY CLERK	Attest
2/8/2011	1	MAYOR	Signed
2/7/2011	1	Columbus City Council	Approved	Pass
2/7/2011	1	COUNCIL PRESIDENT	Signed
1/27/2011	1	Auditor Reviewer	Reviewed and Approved
1/27/2011	1	CITY AUDITOR	Reviewed and Approved
1/27/2011	1	Finance Drafter	Sent to Clerk's Office for Council
1/26/2011	1	Finance Drafter	Sent for Approval
1/25/2011	1	Finance Drafter	Sent for Approval
1/25/2011	1	Finance Reviewer	Reviewed and Approved
1/25/2011	1	FINANCE DIRECTOR	Reviewed and Approved
1/25/2011	1	Finance Drafter	Sent to Clerk's Office for Council
1/25/2011	1	City Clerk's Office	Sent back for Clarification/Correction

Explanation

In response to the housing mortgage crisis, Congress passed an additional $1.0 billion allocation of funds under Section 1497 of the Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) for emergency assistance for redevelopment of abandoned and foreclosed homes and residential properties. These funds are to be administered as grants by the U.S. Department of Housing and Urban Development (HUD), and provide that these funds are to be considered Community Development Block grant (CDBG) funds. These grant funds represent the third round of Neighborhood Stabilization Program funding (NSP3).

NSP3 funds can be used to: (A) establish financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties, including such mechanisms as soft-seconds, loan loss reserves, and shared-equity loans for low- and moderate-income homebuyers; (B) purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and properties; (C) establish land banks for homes that have been foreclosed upon; (D) demolish blighted structures; and (E) redevelop demolished or vacant properties. HUD requires that grantees use at least 25 percent of the funds for individuals or families whose incomes do not exceed 50 percent of the area median income. In addition, all activities funded by NSP3 must benefit low, moderate, and middle income persons whose incomes do not exceed 120 percent of area median income.

Funds are allocated to States and units of local government with the greatest need, which is based on - (A) the number and percentage of home foreclosures in each State or unit of general local government; (B) the number and percentage of homes financed by a subprime mortgage related loan in each State or unit of general local government; and (C) the number and percentage of homes in default or delinquency in each State or unit of general loca...