Item No: 5.F

Meeting Date: July 9, 2012

From: Ken Thomas, Director of Housing & Economic Development

Subject: Resolution approving an agreement with Lake County to accept a Neighborhood Stabilization Program (NSP) 3 grant for the

City of Leesburg Housing Department on behalf of the Carver Heights CRA Multi-family project

Staff Recommendation:

Staff recommends approval of the resolution authorizing the Housing Department to accept a grant with Lake County for $255,000 to acquire and rehab the four triplexes located at Simmons and Mispah Avenue.

Analysis:

Lake County Government received funding from the U.S. Department of Housing and Urban Development (HUD) Neighborhood Stabilization Program, established by the Housing and Economic Recovery Act of 2008 to stabilize neighborhoods whose viability has been and continues to be damaged by the economic effects of properties that have been foreclosed upon and abandoned. To address those issues, Lake County received $799,897 that can be used throughout Lake County for the purpose of acquisition and rehabilitation of low-income housing. The City of Leesburg Housing Department has requested grant funding to acquire and rehab the previously approved twelve unit apartment complex located at Simmons and Mispah Avenue.

Lake County Government has agreed to provide the City of Leesburg fifty-percent of the cost of acquisition and rehabilitation of the units. The use of NSP 3 funds and the policies and procedures which the City must follow are outlined in the NSP Single-Family and Multi-Family Rental Program Manual. As a match to the NSP 3 funding, Staff has applied for a grant through Federal Home Loan Bank of Atlanta (FHLBA) as a source to help fund the remaining fifty-percent (50%) of the acquisition and rehab costs. Lake County’s total investment in the multi-family project is $255,000. The City will be required to retain ownership of the complex for at least 15 years based on the contract.  If the City decides to sell the property prior to 15 years, the NSP 3 funds must be reimbursed to Lake County. 

Options:

1. Approve the resolution accepting the NSP3 grant from Lake County Government ; or

2. Such alternative action as the Commission may deem appropriate

Fiscal Impact:

The NSP3 grant will provide 50% funding for the approved Simmons and Mispah project up to $255,000. Budget is available in the Carver Heights CRA Bank Note if the FHLBA grant is not awarded.

Submission Date and Time: 7/3/2012 6:49 PM____

Department: ______________________ Prepared by: ______________________ Attachments: Yes____ No ______ Advertised: ____Not Required ______ Dates: __________________________ Attorney Review : Yes___ No ____ _________________________________ Revised 6/10/04

Reviewed by: Dept. Head ________ Finance Dept. __________________ Deputy C.M. ___________________ Submitted by: City Manager ___________________

Account No. 001-0000-331.59-000_ Project No. __ WF No. __ Budget ______________________ Available _____________________

RESOLUTION NO._______________

RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT BETWEEN LAKE COUNTY GOVERNMENT AND THE CITY OF LEESBURG FOR THE NEIGHBORHOOD STABILIZATION PROGRAM 3; 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 Post Office Box 7800, Department of Community Services, Tavares, Florida 32778, for the Neighborhood Stabilization Program 3.

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 _July______ 2012.

__________________________

Mayor

ATTEST:

____________________________________

City Clerk