Title
Authorization to Accept Grant and Adopt Budget Amendment for $100,000.00 from Wells Fargo for Homeownership down Payment Assistance and /or Rehabilitation Gap Financing Assistance on Vacant or Foreclosed Houses in ISP/NSP Areas, Citywide
Body
WHEREAS, in compliance with the Federal Housing and Community Development Act of 1974, (Public Law 98-383), and Rules and Regulations adopted pursuant thereto, the HRA has prepared and approved, and the City has, by City Council Resolution No. 10-320 dated April 7, 2010, approved a Saint Paul Consolidated Plan (hereinafter called "Plan"), which Plan incorporates and reaffirms all prior Redevelopment Plans, Small Area Plans, which is filed in the Office of the City Clerk of Saint Paul, Ramsey County, Minnesota and which Plan was submitted to the United States Department of Housing and Urban Development (hereinafter called "HUD") and approved; and
WHEREAS, Invest Saint Paul Initiative is an effort to bring together all the necessary and needed stakeholders committed to promoting, supporting and helping people grow viable and sustainable communities by building on the strengths of Saint Paul's neighborhoods, by insuring that neighborhoods remain strong and that where confidence is clearly declining, that we work collaboratively to stimulate changes to restore and build confidence; and
WHEREAS, the Invest Saint Paul Work Plan identifies the need to be able to work with many different scenarios related to acquisition, rehabilitation, income and businesses which will require a variety of funding sources because of funding requirements in order for the HRA/City to address the magnitude of these issues and encourage private investment, if a variety of sources can not be assembled, the work plan will only be able to treat these problems on a hit or miss basis where the activity and income meet the narrow funding requirements which will greatly minimize the HRA/City's impact on these areas and the City as a whole; and
WHEREAS, on August 8, 2007 HRA approved the overall Invest Saint Paul Initiative and Work Plan, on February 25, 2009 HRA approved by Resolution 09-02/25-6 the Neighborhood Stabilization Program (NSP) and Rebuilding Plan 2009-2013 as a component of the Invest Saint Paul Initiative including budget amendment and authority to acquire properties; and
WHEREAS, on March 24, 2010 HRA approved by Resolution 10-03/24-5 the Neighborhood Stabilization Program 2 (NSP 2) Budget Amendment and authorization to carry out NSP2 Activities under the NSP Rebuilding Plan 2009-2013; and
WHEREAS, the HRA has the power to engage in development or redevelopment activities under the Act and by authority of said Act engages in activities relating to: 1) housing projects and development; 2) removal of prevention of the spread of conditions of blight or deteriorations; 3) bringing substandard buildings and improvements into compliance with public standards; 4) disposition of land for private development; and 5) improving the tax base and the financial stability of the community; and engages in the aforementioned activities when redevelopment or development needs cannot be met through reliance solely upon private initiative, and may engage in said activities in targeted neighborhoods; and
WHEREAS, Wells Fargo Housing Foundation recently announced their decision to award the City of St. Paul a Priority Markets grant in the amount of $100,000 for the purpose of assisting the city in selling ISP/NSP properties in distressed areas by providing an incentive for prospective homebuyers to reduce the cost of buying a home and make homeownership opportunities available for low-income families (80% of median income or below); and
WHEREAS, the contribution will continue to help the city revitalize neighborhoods affected by home foreclosures and provide additional leverage to both federal neighborhood stabilization funding and other city funds.
NOW THEREFORE BE IT RESOLVED that the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota, hereby approves acceptance of the Wells Fargo Foundation Grant in the amount of $100,000 to be used to provide an incentive for prospective homebuyers to reduce the cost of buying a home and make homeownership opportunities available for low-income families (80% of median income or below).
FURTHER, BE IT RESOLVED that the Budget Amendment outlined in Attachment A is hereby approved.