4. Resolution 5400 - Budget Authority - Neighborhood Stabilization Program Grant201 1st Avenue East
Kalispell, MT 59901
406.758.7740
Fax: 406.758.7758
City of Kalispell • www.kalispell.com
Office of Community & Economic Development
MEMORANDUM
To: The Honorable Mayor Kennedy, Kalispell City Council Members
CC: Jane Howington, City Manager
FROM: Katharine Thompson, Community Development Manager
MEETING DATE: October 19, 2009
RE: Neighborhood Stabilization Program Grant Budget Resolution
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.
At the City Council work session on May 26 Community and Economic Development proposed a
partnership between the City of Kalispell and Community Action Partnership (CAP) to pursue
NSP funds for the purpose of purchasing foreclosed homes to be placed in a yet to be formed
CLT. On June 15, Council approved application submittal to the Montana Department of
Commerce, Community Development Division for $4 million in Neighborhood Stabilization
Program (NSP) funding through Resolution No. 5372. On October 5, Council accepted the grant
award. The purpose of the grant is to:
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% area median income (addressing what is commonly referred to as
workforce housing).
FISCAL IMPACT: The City will handle the NSP grant as a pass-thru with Community
Action Partnership responsible for accounting of grant funds and on -going implementation and
reporting of the project. The NSP 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 up to $4 million in Neighborhood Stabilization Program funds.
Respectfully submitted,
Ka arine Thompson
Community Development Manager
Community & Economic Development Dept.
ane Howington
City Manager
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WHEREAS, on September 8, 2009, the City Council adopted Resolution 5388 adopting the
annual appropriations of the City of Kalispell for fiscal year 2009-2010; and
WHEREAS, on September 17, 2009, the City of Kalispell received Neighborhood Stabilization
Program funds in an amount of up to $4,000,000 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 THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL AS FOLLOWS:
SECTION I. That the City of Kalispell hereby appropriates the sum of up to $4,000,000
and directs the Finance Director to allocate said amount to the following
program activities:
REVENUE CODE 2952-000-331011-000 $4,000,000
Grant Revenue
EXPENDITURE CODE 2952-480-470210-354 $4,000,000
Contract Services
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, THIS 19TH DAY OF OCTOBER, 2009.
Pamela B. Kennedy
Mayor
ATTEST:
Theresa White
City Clerk