02. Resolution 5535 - NSP3 Grant Acceptance & Budget AppropriationCity of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903
w Telephone: (406) 758-7701 Fax: (406) 758-7758
MONTAIVA
REPORT TO: The Honorable Mayor Fisher and Kalispell City Council Members
FROM: Katharine Thompson, Community Development Manager
SUBJECT: Neighborhood Stabilization Program 3 (NSP3) Grant Award
MEETING DATE: December 5, 2011
BACKGROUND: The City of Kalispell has identified "affordable housing to meet the needs of
low and moderate -income residents" as a policy within its Kalispell Growth Policy 2020.
Under Neighborhood Stabilization Program 1 (NSP1) funding awarded to the City of Kalispell in
October 2009, sixteen (16) foreclosed and abandoned homes were purchased and placed in the
newly formed Northwest Montana Community Land Trust for the purpose of selling to income
qualified low -to -moderate income households. Minor rehabilitation work has been completed on
these homes, the Community Land Trust developed the necessary ground lease and other
relevant documents, and the first house sale is set to close in December of this year.
Under the Neighborhood Stabilization Program 3 (NSP 3), $1.5 million will be utilized to
purchase additional foreclosed upon homes within the city of Kalispell. This second grant will
be implemented just as the first has been with the City and Community Action Partnership of
Northwest Montana continuing to work together under the Memorandum of Understanding
approved by City Council in 2010. The purpose of the NSP 3 grant is:
To purchase foreclosed upon homes within the city of Kalispell to be placed in the
Northwest Montana Community Land Trust and sold to income qualified
households. Of these qualifying households, 27% must have household income
less than 50% of the area median income and 73% will have household income
between 51 % and 120% area median income -- largely addressing what is
commonly referred to as workforce housing.
FISCAL IMPACT: The City will handle the NSP 3 grant in the same manner as NSP 1 and
that is as a pass-duu with Community Action Partnership responsible for accounting of grant
funds and on -going implementation and reporting of the project. The NSP 3 program allows for
a 5% administrative fee and this will be directed to CAP for the above tasks.
RECOMMENDATION: City Council approve the budget resolution allowing for the City to
oversee $1.5 million in Neighborhood Stabilization Program 3 funds.
Respectfully submitted,
*Kata®rine&ThomPson Oiane Howington
Community Development Manager City Manager
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Department of Commerce
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301 S. Park Ave. * P.O. Box 200501 * Helena, Montana 59620-0501
Phone 406-841-2700 * Fax 406-841-2701 * TDD: 406-841-2702 * http://commerce.mt.gov
November 22, 2011
Mayor Tammi Fisher
City of Kalispell
PO Box 1997
Kalispell, MT 59901
RE: Notice of Grant Award — Neighborhood Stabilization Program (NSP3)
Dear Mayor Fisher:
The Montana Department of Commerce (Commerce) notified the City of Kalispell of the conditional
grant award of NSP3 funds on July 6, 2011, stating if sufficient funding became available to Commerce
during the NSP3 timeframe to fund the City's project, you would be notified.
It is my pleasure to announce that the City of Kalispell NSP3 grant application is fully awarded.
This letter serves as formal notification that Commerce has received sufficient funding to award
$1,500,000 in NSP3 funds to acquire foreclosed, abandoned, or vacant property to be rehabilitated and
sold to low, moderate or middle income households, as stated in the City's application. This award is
made possible through the Wall Street Reform Act of 2010 which allocated $5 million to Montana
through the U.S. Department of Housing and Urban Development (HUD).
Awardees must complete all project start-up requirements set forth in the CDBG/NSP 2011 Grant
Administration Manual. These include, but are not limited to, the submission of a finalized budget and
implementation scheduled, management plan, documentation of the property meeting NSP3
requirements, obtaining firm commitment of other funding sources, completion of environmental
requirements, and executing a contract between the Department of Commerce and the City of Kalispell.
When all start-up requirements have been met, you will receive a Release of Funds letter notifying you
that you can begin to draw down funds for your project. If your project fails to meet start-up
requirements, any costs incurred prior to the Release of Funds letter will be your sole responsibility.
You will be contacted directly with more information in the upcoming weeks by the NSP staff assigned
to your project. In the meantime, if you have any questions, please call Ms. Kelly Casillas, Division
Administrator of our Community Development Division at 406-841-2770 or email DOCNSP(G)mt.gov .
Congratulations on your award! We look forward to working with you to successfully complete your
project.
7orewinde , ire or
Department of Commerce
1"AW11,91RU1161 "a
WHEREAS, on August 15, 2011, the City Council adopted Resolution 5513 adopting the
annual appropriations of the City of Kalispell for fiscal year 2011-2012; and
WHEREAS, on November 22, 2011, the City of Kalispell received additional Neighborhood
Stabilization Program funds in an amount of up to $1,500,000 in order to assist
Community Action Partnership to purchase foreclosed homes within the City of
Kalispell to be placed in a community land trust and sold to income qualified
households; and
WHEREAS, said funds available to the City were not appropriated pursuant to Section 7-6-
4271, and an increase of appropriation authority is needed.
NOW • BE IT RESOLVED• •, THE CITY •
KALISPELL AS FOLLOWS:
SECTION I. That the City of Kalispell hereby appropriates the sum of up to $1,500,000
and directs the Finance Director to allocate said amount to the following
program activities:
REVENUE CODE 2952-000-331011-000 $1,500,000
Grant Revenue
EXPENDITURE CODE 2952-480-470210-354 $1,500,000
Contract Services
Tammi Fisher
Mayor
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Theresa White
City Clerk