Staff recommends approval of the Interlocal Agreement with Lake County Government regarding the Neighborhood Stabilization Program II and providing authorization to the City Manager to sign purchase contracts for closing of properties acquired with Neighborhood Stabilization funding.
The Neighborhood Stabilization Program (NSP II) was established for the purpose of stabilizing communities that have suffered from foreclosures and abandonment. The program allows local governments to purchase and rehabilitate foreclosed and abandoned homes for resale. In addition, foreclosed rental properties can be purchased and renovated for rental use. The individuals targeted will be low, moderate and middle income (LMMI) households.
One aspect of the program requires the City of Leesburg to be a partner of the CDBG (Community Development Block Grant) Urban County Partner Program, the County must obtain an agreement with the City and request permission to perform NSP II activities and expend funds within the City boundaries. Once the agreement is signed monies can be used to purchase properties for affordable housing. If the City acquires property through this program, the City will retain ownership and will have the ability to sell or lease property to low, moderate and middle income households. If the City decides to sell the property, the monies received from the sale will be placed in a housing trust fund account to use for future acquisition. If improvements are needed to help with the sale or leasing of the properties, the program does allow up to $15,000 of renovation cost.
In conclusion, since the City of Leesburg is currently a partner with Lake County in the NSP program I, this agreement would allow Lake County to perform NSP activities and expend funds within the City boundaries to benefit citizens of Leesburg. In addition, the City Manager will have authorization to sign purchase contracts for closing of properties acquired under this program.
The Interlocal agreement with Lake County has established $3,000,000 of grant funding for the City of Leesburg’s use under this program.
Prepared by: ______________________
Attachments: Yes____ No ______
Advertised: ____Not Required ______
Attorney Review : Yes___ No ____
Reviewed by: Dept. Head ________
Finance Dept. _______JB_________
Deputy C.M. ___________________
City Manager ___________________
Account No. _________________
Project No. ___________________
WF No. ______________________
A RESOLUTION OF THE CITY OF COMMISSION AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN INTERLOCAL AGREEMENT WITH LAKE COUNTY GOVERNMENT TO BE A PARTNER TO UTILIZE NSP2 FUNDS TO PURCHASE BANK-OWNED FORECLOSED PROPERTIES, FOR THE SOLE PURPOSE OF RESELLING TO FIRST-TIME HOMEBUYERS AND PROVIDING AUTHORIZATION TO THE CITY MANAGER TO SIGN PURCHASE CONTRACTS TO ACQUIRE PROPERTY UNDER THE NSP II; AND PROVIDING AN EFFECTIVE DATE.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT the Mayor and City Clerk are hereby authorized to execute an agreement with Lake County Government, whose address is P.O. Box 7800, Tavares, FL 32778, for participation in the NSP II program and providing authorization to the City Manager to sign purchase contracts to acquire property under the NSP II program.
THAT this resolution shall become effective immediately.
PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the _9th____ day of _November________ 2009.
Lewis Puckett, Mayor