5. Grant Acceptance - Neighborhood Stabilization Program201 1 st Avenue East
Kalispell, MT 59901
406.758.7740
Fax: 406.758.7758
City of Kalispell • www.kalispell.com
Office of Community & Economic Development
TO: Honorable Mayor Kennedy; City Council Members
CC: Jane Howington, City Manager
FROM: Katharine Thompson, Community Development Manager
MEETING DATE: October 5, 2009
RE: Neighborhood Stabilization Program $4 Million Grant Acceptance
BACKGROUND: City Council has listed moderate to low income housing as a
priority of the City of Kalispell and included this in the Growth Policy 2020 planning
document. Following this direction, and with Council approval at the June 15, 2009
meeting, the Community and Economic Development (CED) Department submitted an
application to the Montana Department of Commerce, Community Development
Division for $4 million in Neighborhood Stabilization Program (NSP) funding for the
following purpose:
To purchase foreclosed upon homes within the city of Kalispell to be
placed in a newly formed community land trust and sold to income
qualified households. Of these qualifying households, 25% must have
household income less than 50% of the area median income and 75% will
have household income between 80% and 120% of area median income
(addressing what is commonly referred to as workforce housing).
The NSP grant was sponsored by the City of Kalispell and written in partnership with
Community Action Partnership of Northwest Montana under the Memorandum of
Understanding approved by Council in Resolution No. 5372 at the June 15, 2009
meeting.
RECOMMENDATION: City Council accept the Montana Department of
Commerce, Community Development Division's approval of $4 million for Kalispell's
Neighborhood Stabilization Program Community Land Trust project.
FISCAL IMPACT: The City will handle this as a pass -dim grant with Community
Action Partnership responsible for accounting of the grant funds and on -going
implementation of the project. The NSP program allows for a 5% administrative fee and
this will be directed to CAP.
Several years ago CED earmarked $20,000 toward a CLT project. The balance of the
earmark is $18,000. Council has committed these funds through a Memorandum of
Understanding with Community Action Partners for the submission of the NSP grant
application and state filing of the community land trust formative documents. The
$18,000 will come from the CED Operations Fund and is a one-time contribution to the
CLT. CAP has committed $24,000 to the project.
Respectfully submitted,
K tharine Thompson ane Howington
Community Development Manager City Manager
Community and Economic Development
d
Department of Commerce
Community Development Division
301 S. Park Ave. * P.O. Box 200523 * Helena, Montana 59620-0523
Phone:406-841-2770 * Fax: 406-841-2771 * TDD: 406-841-2702 * http://comdev.mt.gov/
September 17, 2009
Mayor Pamela B. Kennedy
PO Box 1997
Kalispell MT 59901
Dear Mayor Kennedy,
The Montana Department of Commerce (MDOC) has concluded the review of your
program application to the Neighborhood Stabilization Program (NSP).
As you are aware, the purpose of NSP funds is to address the negative ramifications of
the national housing crisis that has occurred over the past five years, primarily the
increase of foreclosed, abandoned, and vacant properties. While Montana has not
exhibited the extent of housing foreclosures as other areas of the nation, Governor
Brian Schweitzer recognizes the need for assistance to local governments and Montana
Indian tribes to improve our neighborhoods across Montana. He has worked very hard
to make these funds available and to quickly and effectively utilize and distribute the
funds to meet the needs of worthy recipients such as your community.
I am pleased to inform you that your general program proposal for the Northwest
Montana Community Land Trust to purchase and rehabilitation of foreclosed or
abandoned homes and provide financing mechanisms to families or individuals with
incomes at or below 120% area median income with emphasis on families earning less
than 50% area median income, as set forth in your application to the MDOC dated July
27, 2009, has been approved as eligible for NSP funds. Please be aware that MDOC
will need to begin meeting the 25% set aside as the highest priority as directed by NSP
regulations; therefore, we would ask that your project activities focus first on specific
projects that will help meet this set aside before requesting other non set aside funds.
Once you have found a project that meets the approved eligible NSP purpose as listed
above, please send project specific information as listed below for MDOC approval.
Once MDOC has approved the specific project a specific award of funds to your grant
contract will be made.
BRIAN SCHWEITZER, GOVERNOR
09/08/2009
Page 2 of 2
A grant contract between you and the MDOC outlining the terms and conditions of your
use of the NSP funds for the project(s) set forth above will be forthcoming. MDOC will
approve and award any additional NSP funds for successive project activities identified
for your approved program on an incremental basis. Such additional projects must be
reviewed, approved, and processed by MDOC as amendments to your grant contract.
The following information, contained in the NSP Project Request Form, will be required
for each additional project proposal:
1. Location address of specific project;
2. Appraisal of property;
3. Documentation that property has been foreclosed, abandoned, or vacant
(i.e. letter from financial institution) ;
4. Proposed budget of the project; and
5. Projected timeline of completion of project.
By accepting this award, you agree to carry out the grant in accordance with the terms,
conditions, and assurances contained in the grant application, the MDOC Community
Development Block Grant (CDBG) and Neighborhood Stabilization Program (NSP)
Grant Administration Manual, the Housing and Economic Recovery Act (HERA) of
2008, and any other requirements for NSP as set forth by HUD, including but not limited
to the Federal Register Notice dated October 6, 2008, Vol. 73, No. 194 and any
revisions thereto. You must submit detailed quarterly reports regarding your use of
NSP funds as well as the number of households assisted as a result of the project(s).
A follow up letter regarding specific start up activities will be sent to you by NSP staff.
We look forward to working with you to complete your program objectives.
If you have any questions regarding this award, please contact Program Manager,
Jennifer Olson; by telephone at (406) 841-2773 or email at jeolson@mt.gov.
Sincerely,
!1
Anthony . Preite, Director
Department of Commerce
Cc: Katharine Thompson, Office of Community and Economic Development
Doug Rauthe, Community Action Partnership of Northwest Montana