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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 !1 IFIN I [INKNrelff11 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