HomeMy WebLinkAboutIR 9298INFORMAL REPORT TO CITY COUNCIL MEMBERS
E(V-Viv)
To the Mayor and Members of the City Council
No. 9298
September 14, 2010
Page 1 of 1
SUBJECT: ADDITIONAL NEIGHBORHOOD STABILIZATION PROGRAM
FUNDS FOR THE BEATY STREET APARTMENTS
In 2008, the City was awarded $6,307,433 in Neighborhood Stabilization Program (NSP) grant
funds by the United States Department of Housing and Urban Development (HUD) to be used in
the redevelopment of foreclosed and abandoned houses and multifamily properties. On
November 11, 2008, the City Council approved using the grant funds for a NSP Down Payment
Assistance Program which provides up to $25,000 in repair costs, down payment and closing
cost assistance to buyers of lender - foreclosed houses in seven targeted zip codes.
The NSP grant requires that a certain portion of the grant funds be set aside for households
earning less than 50 percent of Area Median Income (AMI) as established by HUD. In addition,
HUD requires that all NSP funds be committed by September 20, 2010, or they must be returned
to the federal government. Because the City did not receive sufficient applications from
homebuyers who are eligible for this set aside portion of the NSP funds, staff recommended in
June 2010 that NSP funds that were not committed under the down payment assistance program
be used for the acquisition and rehabilitation of multi - family apartments for low- income residents.
On July 13, 2010, the City Council approved the change in use and expenditure of $1,360,255.00
of NSP funds to the Tarrant County Housing Partnership (TCHP) for the acquisition and
rehabilitation of the Beaty Street Apartments located in the 5500 Block of Beaty Street (M &C C-
24344). This project will provide quality, affordable, accessible housing to families and individuals
earning 50 percent or less of AMI.
Since July, additional NSP funds have become available because of a lack of applications from
qualified low income homebuyers. Staff recommends that an additional $339,500.00 in remaining
NSP funds be reallocated so that the funds may be used locally. An M &C is scheduled for the
September 14, 2010 City Council Meeting seeking approval for the reallocation of $339,500 in
NSP funds for a total of $1,699,755.00 to TCHP for the Beaty Street Apartments project in order
to meet the September 201h fund obligation deadline.
Project Description
TCHP will acquire the Beaty Street Apartments, a 73 unit foreclosed multi - family project and
rehabilitate it producing 64 multi - family units for households earning 50 percent or less of AMI
thus increasing the total number of very low income households served by the NSP program.
Total project cost, including NSP funds from the Texas Department of Housing and Community
Affairs, is currently estimated at $3,340,700.
�WD_a a A. Fisseler, P.E.
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS