HomeMy WebLinkAboutResolutions - 2009.03.26 - 9829REPORT (MISC. #09068) March 26, 2009
BY: Human Resources Committee, Sue Ann Douglas, Chairperson
IN RE: DEPARTMENT OF ECONOMIC DEVELOPMENT & COMMUNITY AFFAIRS —
COMMUNITY & HOME IMPROVEMENT DIVISION — 2008 NEIGHBORHOOD
STABILIZATION PROGRAM (NSP) GRANT ACCEPTANCE AND SUBSTANTIAL
AMENDMENT TO THE 2008 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
ANNUAL ACTION PLAN
To the Oakland County Board of Commissioners
Chairperson. Ladies and Gentlemen:
The Human Resources Committee, having reviewed the above-titled resolution on
March 18, 2009 recommends the resolution be adopted.
Chairperson, on behalf of the Human Resources Committee, I move the acceptance of
the foregoing report.
HUMAN RESOURCES COMMITTEE
HUMAN RESOURCES COMMITTEE
Motion carried unanimously on a roll call vote with Coleman absent,
MISCELLANEOUS RESOLUTION #09068 March 26. 2009
BY: PLANNING AND BUILDING COMMITTEE, JOHN A. scorr, CHAIRPERSON
IN RE: DEPARTMENT OF ECONOMIC DEVELOPMENT & COMMUNITY AFFAIRS —
COMMUNITY & HOME IMPROVEMENT DIVISION —2008 NEIGHBORHOOD STABILIZATION
PROGRAM (NSP) GRANT ACCEPTANCE AND SUBSTANTIAL AMENDMENT TO THE 2008
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ANNUAL ACTION PLAN
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS federal grant funding for the Neighborhood Stabilization Program (NSP) is authorized
pursuant to Emergency Assistance for the Redevelopment of Abandoned and Foreclosed Homes Under the
Housing and Economic Recovery Act (HERA). 2008 (H.R. 3221, Title III, Division B) (P.L.110-289 approved
July 30, 2008) and allocated through the U.S. Department of Housing and Urban Development (HUD); and
WHEREAS HUD awarded 2008 NSP funds totaling 517,383,776 to Oakland County as a substantial
amendment to the 2008 Community Development Block Grant (CDBG) Annual Action Plan; and
WHEREAS the Oakland County Board of Commissioners authorized submittal of the Oakland County
2008 NSP Substantial Amendment to IlUD; and
WHEREAS the 2008 NSP Substantial Amendment approved by HUD reflects eligible activities that
must be targeted to areas of greatest need and contractually obligated within eighteen months and expended
within four years from the date of HUD's execution of the grant agreement; and
WHEREAS total program revenue for the 2008 NSP Program is the federal grant allocation of
517.383,776, and no County funds are required; and
WHEREAS fund schedules and program descriptions for the 2008 NSP program appear in attachment
A; and
WHEREAS the 2008 NSP Substantial Amendment includes a request for one new grant funded
Community & Home Improvement Specialist - Housing Counselor position to provide the federally-mandated
minimum of eight hours of pre and post purchase counseling for each homebuyer; and
WHEREAS thel:%;SP grant agreement has been reviewed by County Executive Departments through
the County grant process (M.R. 401320); and
WHEREAS acceptance of this grant does not obligate Oakland County to any future commitment.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners accepts
Neighborhood Stabilization Program grant funding from the U.S. Department of Housing and Urban
Development in the amount of $17,383,176.
BE IT FURTHER RESOLVED that the 2008 Annual Action Plan and Consolidated Grant Acceptance
be amended to reflect the 2008 NSP Substantial Amendment of $17,383,776.
BE IT FURTHER RESOLVED that the NSP grant will fund one new Community & Home
Improvement Specialist to provide federally-mandated pre and post purchase counseling.
BE IT FURTIIER RESOLVED that the future level of service, including personnel, will be contingent
upon the level of Federal funding availablc for this program.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners authorizes both the
Board of Commissioners' Chairperson and the County Executive to execute the grant agreements and to
approve amendments and extensions up to fifteen (15) percent variance from the award, consistent with the
agreement as originally approved.
Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the foregoing
resolution.
PLANNING AND BUILDING COMMITTEE
PLANNING & BUILDING COMMITTEE VOTE:
Motion carried unanimously on a roll call vote.
Copy of attachment A is on file in the County Clerk's office.
Carla Spradlin
From: Piir, Caia [piirgZoakgov.com]
Sent: Friday, March 06, 2009 4:39 PM
To: Karry'; 'Spradlin, Carla'; 'Keller, Wayne'
Subject: Grant Sign Off: Community & Home Improvement Division - 2008 Community Development Black Grant
(CDBG) Annual Action Plan: Neighborhood Stabilzation Program (NSP) - Grant Amendment Acceptance
The complete sign off package is attached.
GRANT REVIEW SIGN OFF Community & Home Improvement Division
GRANT NAME: 2008 Community Development Block Grant (CDBG) Annual Action Plan: Neighborhood Stabilization
Program (NSP) - Grant Amendment Acceptance
FUNDING AGENCY: U.S. Department of Housing and Urban Development
DEPARTMENT CONTACT PERSON: Karry Rieth 248 858 -5403
STATUS: Amendment Acceptance
DATE: March 6, 2009
Pursuant to Misc. Resolution #01320, please be advised the captioned grant materials have completed internal grant
review. Below are the returned comments.
The captioned grant materials and grant acceptance package (which should include the Board of Commissioners Liaison
Committee Resolution, the grant agreement/contract, Finance Committee Fiscal Note, and this Sign Off email containing
grant review comments) may be requested to be place on the appropriate Board of Commissioners' committee(s) for grant
acceptance by Board resolution.
DEPARTMENT REVIEW
Department of Management and Budget:
Approved, — Laurie Van Pelt (3/2/2009)
Department of Human Resources:
Approved. — Cathy Shallal (3'2/2009)
Risk Management and Safety:
Approved. - Andrea Plotkowski (314/2009)
Corporation Counsel:
There are no outstanding legal issues concerning the above grant amendment. — Joellen Shortley Blaszczak (3/612009)
COMPLIANCE
Thc grant agreement references a number of specific federal and state regulations. Below is a list of these specifically
cited compliance related documents for this grant.
Housing and Economic Recovery Act of 2008 (Public Law 110-29)
http:Ifrwebgate.acc:ess.gpc.gov,:cgi-bin,igetdoc.cgi?dbpani1 289:. 10. cif
HUD Community Development Block Grants (24 CFR, Part 570)
htto://www.access.u2o.,..mvinaralefriwaisidx 04124cfr570 04.html
HUD Environmental Review Procedures for Entities Assuming HUD Environmental Responsibilities (24 CFR. Part 58)
3/6/2009
tatpi/Avww.access. (-.)J_g_,Y.21diwu,tfrw.ais..;dx 04 124±58 04.html
HUD Consolidated Submissions for Community Planning and Development Programs (24 CFR, Part 91)
jittpj/www.acc,;,ss.gpgownaralefriwaisidx 04/14cfr9 04.htrnf
Crimes and Criminal Procedure - Fraud and False Statements (18 USC Section 1001)
littp://oscode.bou.,,;e,goviuscocie-miastweb.exe?_getduc-uF,cview-t I 7t20+579 - I "-I‘28%29%20%20.AND%209/028%2818%79%
21c!,470USC%29%3ACITB;20AND%20%21jSC-201vN2,1 -.10%20%2810Q1%29%29!,3.3,ITE%20%20(b/c20°.42.9_YO.20%•
Crimes and Criminal Procedure - Fraud by wire, radio, or television (18 USC Section 1343)
lit_tp.:Puscode.house. ovii.c.-usniew-t17t20--691-1+-%28%29%2020AND%:10%28%28.18Q629%
0ADJ%20I jSC94,29%3 A CITE%20AND31120%2 gUSC%20 w%2F10%205W1'. g i 343%29%29%3A CIE:7/1120%-V ilarii20%20%20%
20%20%20
Money and Finance - Claims - False Claims (31 T.:SC 3729)
kiltp://uscode.house c,viuscode -cgia_slweb.exe?getdoc+uscview+t29t32+1981 -1'--()%20%20AND%2
Money and Finance Administrative Remedies for False Claims and Statements (31 USC 3801)
h ://uscode.house, ovi etdoc+useview+t29t32+1987 ,-1 -.-+()%20%20AND%2
HUD Administrative Requirements for Grants (24 CFR, Part 85)
hrtp://www.ccess.pogov'ruir/cfr/waisiiJxO4!24cfr85O4.htm
IIUD Restrictions on Lobbying (24 CFR, Part 87)
lutp://www.a_ccess.gpo.govinataicfriwaisidx_04/24cfr87_04.html
U.S. Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970
http://www.fhwa.dot.govirealestate/act.htni
Housing and Urban Development Act of 1968. Section 3
h ro Pdesc/UUe8.cfrn
HUD Economic Opportunities for Low and Very Low Income Persons (24 CFR Part 135)
tittp:0'www.access. o.c.iov idx_04/24cfr135_04.html
HUD Consolidated Submissions for Community Planning and Development Programs (24 CFR, Part 91)
hty://www.accesszlo.govinaralcfriwaisidx_04/24cfr91_04.htm1
Title VI of the Civil Rights Act of 1964 (42 U,S.0 Section 2000d)
ht-t ://www.usdo .. ovicpLgcolco.orcat.hr t
HUD Lead-Based Paint Poisoning Prevention in Certain Residential Structures (CFR Part 35)
://www.access iwaix.24/24cfr35_04.1itml
Gala V. Piir
&ronts Cornphance and Proyrams Coordinator
Oakland County Fiscal Services Division
Phone (248) 856-1037
Fox (248) 858-9724
pi irg oal.cgov.corn
1/6i)nn0
FUNDING APPROVAL AND GRANT AGREEMENT FOR
NEIGHBORHOOD STABILIZATION PROGRAM (NSP) FUNDS
AS AUTHORIZED AND APPROPRIATED UNDER THE
HOUSING AND ECONOMIC RECOVERY ACT OF 2008
(PUBLIC LAW 110-289, JULY 30, 2008)
NSP GRANTEE: [Oakland County, Michigan]
NSP GRANT NUMBER: [B-08-UC-26-0002]
NSP GRANT AMOUNT: [$17,383,776]
NSP APPROVAL DATE: [March 20, 2009]
This Grant Agreement between the Department of Housing and Urban Development (HUD) and
Oakland County, Michigan (Grantee) is made pursuant to the authority of sections 2301 — 2304 of the
Housing and Economic Recovery Act of 2008 (Public Law 110-289 (July 30, 2008)) (HERA). The
program established pursuant to section 2301-2304 is known as the "Neighborhood Stabilization
Program" or "NSP." The Notice of Allocations, Application Procedures, Regulatory Waivers Granted
to and Alternative Requirements for Redevelopment of Abandoned and Foreclosed Homes Under the
Housing and Economic Recovery Act, 2008 published at 73 FR 58330 (October 6, 2008) (Notice);
HERA; the Grantee's submission for NSP assistance (Grantee Submission); the HUD regulations at
24 CFR Part 570 (as modified by the Notice and as now in effect and as may be amended from time
to time) (Regulations); and this Funding Approval, including any special conditions, constitute part of
the Grant Agreement.
Subject to the provisions of this Grant Agreement, HUD will make NSP Grant Funds in the amount of
$17,383,776 available to the Grantee upon execution of this Grant Agreement by the parties. The
Grantee shall have 18 months from the date of HUD's execution of this Grant Agreement to obligate
the NSP Grant Amount pursuant to the requirements of HERA and the Notice. The Grantee shall
have 48 months from the date of HUD's execution of this Grant Agreement to expend the NSP Grant
Amount pursuant to the requirements of the Notice. The NSP Grant Funds may be used to pay
eligible costs arising from eligible uses incurred after the NSP Approval Date provided the activities to
which such costs are related are carried out in compliance with all applicable requirements. Pre-
award planning and general administrative costs may not be paid with funding assistance except as
permitted in the Notice; the Notice limits such costs to those incurred on or after September 29, 2008.
Other pre-award costs may not be paid with funding assistance except as permitted by 24 CFR
570.200(h); for purposes of NSP, such costs are limited to those incurred on or after the date that the
NSP substantial amendment was received by HUD.
2
The Grantee agrees to assume all of the responsibilities for environmental review, decisionmaking,
and actions, as specified and required in regulations issued by the Secretary pursuant to Section
104(g) of Title I of the Housing and Community Development Act, as amended (42 U.S.C, 5304) and
published in 24 CFR Part 58. The Grantee further acknowledges its responsibility for adherence to
the Grant Agreement by sub-recipient entities to which it makes funding assistance hereunder
available.
This Grant Agreement may be amended only with the prior written approval of HUD. In considering
proposed amendments to this Grant Agreement, HUD shall review, among other things, whether the
amendment is otherwise consistent with HERA, the Notice, and the Regulations.
The Grantee may amend its Grantee Submission; however, such amendments, including substantial
amendments as defined in 24 CFR Part 91, will be subject to the requirements of 24 CFR Part 91 (or
any successor regulation) and any revisions HUD may make to the Notice (or any successor Notice
or regulation).
The Grantee shall at all times maintain an up-to-date copy of its Grantee Submission, including all
amendments approved by HUD, on its Internet website as required by the Notice. Further, the
Grantee shall maintain information on all drawdowns, deposits, and expenditures of grant funds and
program income under this Funding Approval and Grant Agreement and any other records required
by 24 CFR 570.506, in its files and shall make such information available for audit or inspection by
duly authorized representatives of HUD, HUD's Office of the Inspector General, or the Comptroller
General of the United States.
The Grantee shall submit information on performance measurement as established by the Secretary
for activities undertaken with NSF` grant funds.
The Grantee is advised that providing false, fictitious or misleading information with respect to NSP
Grant Funds may result in criminal, civil or administrative prosecution under 18 USG §1001, 18 USC
§1343, 31 USC §3729, 31 USC §3801 or another applicable statute.
Close-out of this grant shall be subject to the provisions of 24 CFR 570.509 or such close-out
instructions as may hereafter be issued by HUD specifically for NSP grants.
3
This NSP Grant Agreement is binding with respect to HUE) in accordance with its terms upon the
execution by HUD in the space provided above, subject to execution on behalf of the Grantee.
The United States Department of The Grantee
Housing and Urban Development Oakland County, Michigan
Signature of Authorized Official Signature of Authorized Offical
Name of Authorized Official Name of Authorized Official
Title of Authorized Official Title of Authorized Official
Date of Signature Date of Signature
386004876
Grantee Tax Identification Number
For HUD CFO Use Only
Current Balances Increases/Decreases Ending Balance Date
Special Conditions to Funding Approval and Grant Agreement For
Neighborhood Stabilization Program (NSP) Funds
as Authorized and Appropriated by under the
Housing and Economic Recovery Act of 2008
(Public Law 110-289, July 30, 2008)
NSP GRANTEE: [Oakland County, Michigan]
NSP GRANT NUMBER: [B-08-UC-26-0002]
NSP GRANT AMOUNT: [$17,383,776]
NSP APPROVAL DATE: [March 20, 2009]
Special Conditions:
1. Pursuant to 24 CFR 85.12 (a)(3), a special condition applies to this Grant
Agreement due to the size of the NSP Grant Amount relative to your 2008 CDBG
grant. Within 60 days of the date HUD signed this grant agreement, the Grantee
must submit a management plan that describes how it has determined that it
possesses adequate staff and other resources necessary to administer NSF
grant funds. If the Grantee fails to submit this plan within 60 days, HUD may
thereafter withhold authority to incur additional obligations of NSP Grant Funds.
I
Oakland County, Michigan
2008 NSP Substantial Amendment
to the 2008 CDBG Annual Action Plan
Attachment A
Oakland County NSP Substantial Amendment to the
2008 CDBG Annual Action Plan
Comparison of NSP Grant Application with NSP Grant Award
Grant Application Award Variance
Neighborhood Stabilization Program (NSF) $17,383,776.00 $17,383,776.00 0%.
Neighborhood Stabilization Program (NSF) Revenues
_ '•!,s4:-'s':':M;44.!ir.-':-.3:.:,.-iti-j ibbibriiia'Afeite.',:' Cit.I.MatINVNigttgrt .-11,v. ecienijeWrAg
County Administration (10%) Based on 4 Year Expenditure $1,738,377
Requirement
Housing Counseling (3.7%) Based on 4 Year Expenditure Requirement $650,000—
Areas of Greatest Need — county administered homebuyer assistance $4,998,467
program (1/3) _
932 Areas of Greatest Need — highest quartile community allocations (2/3) $9.996932 ,
Total $17,383,776—
Page 1 of 2
Oakland County, Michigan
2008 NSP Substantial Amendment
to the 2008 CDBG Annual Action Plan
Neighborhood Stabilization Program (NSP) Allocations
Allocations to community administered programs are based on funding the top quartile of
communities having the highest 'Neighborhood Destabilization Ratios".
fograM'Area ••-!":,:', ' 7 Nei:ghbOrlitiad Deitabilizati&i:Ratio. YI-51. ?;',1A1 l6datithi1
Hazel Park 0.12236 $1,658,863.41
Oak Park 0.11764 $1,630,859.79
Royal Oak Twp 0,09431 $937,101.49 _
Madison Heights 0.07694 $1,163,078.12
Ferndale 0.07505 $1,115,160.44
Keego Harbor 0.05574 $586,172.27
Village of Holly 0.05472 $612,593,07
Village of Ortonville 0.05148 $491,932.92
Rose TWID 0.04995 $524,763.07
Holly Twp 0.04035 $427,731.05
Lathruo Village 0.04026 $424,379.31
Village of Lake Orion 0.04021 $424,297.07
• W.,0e.J.:.;i;k.),A-cMargliViftes
i Areas of greatest need - community administered NSP programs (2/3) in , $9,996,932.00
targeted areas I
Areas of greatest need - county administered NSP programs (1/3) in $4,998,467.00
, targeted areas
, County administration (10%) based on 4 year expenditure plan $1,738,377.00 1
Public services - housing counseling (3.7%) based on 4 year expenditure $650,000.00 '
plan
Total Budget $17,383,776.00
Distribution and Uses of NSP Funds
-;''''' -'P'1.-.,N8P-Iligiblel.iSe-7,-':',,-.:4',..!-',..i: '..'-';':: '' .-•.:•• ''' e '''''.'..ACtivity:Fiing:, V.,.;:,...-6..,r-'4,:.,.:
\ Financing Mechanisms $6,078,951.56
Aca Rehab Resale $4,948,495.65
i Land Banks $0
Demolition $849,397.35
1 Redevelopment 3,118,554.44 1 ! Public Services Housing Counseling i $650,000.00
Administration I $1,738,377.00
Total $17,383,776.00
Page 2 of 2
Jurisdiction(s):
Oakland County, MI
Jurisdiction Web Address:
http://www.oakgov.comichi
(URL where NSF Application materials are posted)
NSP SUBSTANTIAL AMENDMENT
NSP Contact Person:
Karry L. Rieth, Manager
Oakland County
Community & Home Improvement
Address:
250 Elizabeth Lake Rd Ste 1900
Pontiac MI 48341-0414
Telephone: (248) 858-5403
Fax: (248) 858-5311
Email: riethk@oakgov.com
AREAS OF GREATEST NEED: The U. S. Department of Housing and Urban Development's
(HUD) Neighborhood Stabilization Program (NSP) was authorized by the Housing and
Economic Recovery Act of 2008 (HERA). HERA provides $4 billion in emergency assistance
for the redevelopment of abandoned and foreclosed homes including $3.92 billion in
Neighborhood Stabilization Program (NSP) funds to States and Community Development Block
Grant (CDBG) entitlements. The purpose of the NSP is to assist states and local governments in
addressing the effects of abandoned and foreclosed properties. HUD has implemented the
program by relying upon existing CDBG requirements and making appropriate adjustments to
accommodate the directives of HERA.
The following NSP application is considered a substantial amendment to the Oakland County
2008 Annual Action Plan and related 2005-2009 Consolidation Plan. The information that
follows is in the order and format provided by HUD. The Oakland County Community & Home
Improvement Division has been allocated $17,383,776 in NSP funds to infuse this one time
emergency assistance for the redevelopment of abandoned and foreclosed homes into areas of
greatest need. Federal regulations were released on September 29, 2008 which included a
description of how HUD would target formula allocations to CDBG entitlement jurisdictions
based on:
• Number and percentage of home foreclosures
• Number and percentage of homes with subprime mortgages
• Number and percentage of homes in default
The goals of Oakland County's Neighborhood Stabilization Program (NSP) include:
• Reduce foreclosed property vacancies
• Arrest and reverse the decline of neighborhood housing values
• Enhance the stability of neighborhoods negatively impacted by foreclosure and abandonment
• Return vacant foreclosed properties to productive use
Oakland County has experienced a 969% increase in the number of Sheriff Deeds overall from
1998-2007. The entire county has been impacted by the foreclosure crisis. Data indicates that
some communities lead in foreclosures, others lead in likely foreclosures because of the presence
of high cost mortgages and others have been hardest hit with property value changes. Based
upon 1st, 2nd, and 3rd quarter data Oakland County Equalization anticipates a 32% overall
increase in 2008 Sheriff Deeds.
It is evident that all of Oakland County has been affected by the foreclosure crisis. However, in
distributing NSP funds, grantees are to give priority emphasis and consideration to those
•
metropolitan areas, metropolitan cities, urban areas, rural areas, low- and moderate-income areas,
and other areas with the greatest need, including those:
1. with the greatest percentage of home foreclosures;
2. with the highest percentage of homes financed by subprime mortgage related loan;
3. identified by the State or unit of general local government as likely to face a significant rise
in the rate of home foreclosures.
The process to determine the County's areas of greatest need began with an analysis of non-
urban county CDBG entitlement communities. HUD indicated that these areas including
Farmington Hills, Pontiac, Royal Oak, Southfield, and Waterford Township could receive NSP
fimds from Oakland County and the State of Michigan. Oakland County considered the needs of
Pontiac, Southfield, and Waterford and determined them to be of lower need due to the resources
already available to them to address foreclosed properties through NSP. The other communities
of Farmington Hills and Royal Oak were not considered to be of highest need compared to those
communities that did not have any other available resources to address the effects of abandoned
and foreclosed properties.
The first step in narrowing the focus of NSP resources for current urban county participating
communities was to analyze data pursuant to the Act and NSP regulation starting with HUD
User data on "Middle Income Eligible Areas". This data set indicates whether or not each
Census Biock Group qualifies as an area of low-, moderate-, and middle-income (LMMI)
benefit, where more than 51 percent of the people in the area had incomes less than 120 percent
of Area Median Income (AMI). This data was analyzed first based upon the requirement that all
NSP funds shall be used to benefit individuals and families whose incomes do not exceed 120
percent of area median income. The following communities contain LMMI eligible areas:
OAKLAND COUNTY AREAS OF GREATEST NEED
• .-ciiii -',-,,TP,.::.
Auburn Hills Addison Holly
RerkIev )Brandon Lake Orion
Birmingham Commerce Leonard
Clawson Groveland Milford
Farminoton Holly Oxford
Ferndale Highland Wolverine Lake
1117e1 Park Independence
Kee2o Harbor Lyon
,Antlikiiiiilmiiiiii Milford
Novi Oakland
Oak Park Orion
Rochester Oxford
Rorhestnr T-lills Rose
South Lyon Royal Oak
Sylvan Lake Springfield
Troy West Bloomfield
Walled I •ake White Lake
Wixom
The following communities do not contain LMMT areas: City of Village of Clarkston,
Huntington Woods, Northville, Orchard Lake Village, Pleasant Ridge, Beverly Hills Village, and
Franklin Village, Although these communities currently participate in the Oakland County
CDBG program and benefit from county administered programming including the home
improvement program for the purposes of NSP they are not identified as areas of greatest need.
As an entitlement, Oakland County distributes funds to participating communities through a
formula grant application process. Typically one third of CDBG funds excluding administration
are allocated to county administered housing programs that serve all participating communities.
The remaining two thirds are allocated to CDBO eligible programs that are administered by
participating communities. The County's strategy for allocating NSP funds follows the 2008
CDBG methodology within the targeting parameters of MP. NS? programs to be administered
by Oakland County Community & Home Improvement include administration (10%), public
services (37%) for housing counseling and the County's Homebuyer Program for Vacant
Foreclosed Properties (1/3 of total allocation minus administration and public services) and
target areas of greatest need as described above. The County's Homebuyer Program will provide
loans to homebuyers for down payment assistance, closing costs, home improvements or other
financing associated with purchasing eligible vacant foreclosed single family homes in targeted
areas. Sixty percent of the County's Homebuyer Program total budget of $4,998,467 or
$2,999,080 is reserved to finance homebuyers with incomes at or below 50% of ANIL The
remaining funds of $1,999,387 are eaunarked to assist homebuyers with incomes between 51
and 120 percent of AMI. Applicants whose income falls below 50 percent AMI may qualify for
an additional $5,000 toward down payment assistance to maximize homebuyer participation at
this lowest income level.
To follow CDBG allocation precedent, two thirds of available NSP funds after administration
and housing counseling allocations are targeted specifically to participating communities.
Targeting NSP resources within the areas of greatest need communities requires that the county
analyze the most current information available including not only the HUD User data but also
local data sets including foreclosure statistics from the Oakland County Clerk Register of Deeds
sheriff sales as well as property value data from Oakland County Equalization. The three HUD
criteria as listed below were addressed by Oakland County through an analysis of the following
factor data:
1. Greatest percentage of home foreclosures:
Local Foreclosures to Local Single Family Housing Units (Factor A) - Data from the U.S. Census
Bureau, SEMCOG, Oakland County Sheriff Deeds/Oakland County Clerk Register of Deeds were used to
develop a ratio comparing the number of foreclosures by CVT to the number of single family housing units
per CVT, Local Foreclosures to Total Urban County Foreclosures (Factor B) - This data set based upon
Oakland County Sheriff Deeds/Oakland County Clerk Register of Deeds information compares the
percentage of foreclosures in each CVT to the total number of foreclosures in the fifty CDBG participating
community's.
2. Highest percentage of homes financed by subprime mortgage related loan:
Average Subprime Loan Rate by Community (Factor C) Information from HUD User based on Home
Mortgage Disclosure Act (HMDA) data was used to establish an average subprime loan rate for each CVT.
3. Likely to face a significant rise in the rate of home foreclosures:
Preliminary Proposed 2009 Percent Change in Residential Property Assessment (Factor D) - Oakland
County Equalization provided data on the proposed 2009 percent decrease in residential property
assessments per CVT. This data was key to studying the potential of future foreclosures.
Percent of Eligible NSP Areas to Total Eligible NSP Areas (Factor E) - Data from HUD User was used
to identify local populations at or below 120 percent of area median income
The existing precedent set by CDBG for the distribution of funds to participating communities
through a formula process was met by the development and use of an NSP formula. Data from
the five factors was used to in the ((A*2) +B+C+D+E)/5 formula. The resulting calculation was
used to achieve a Neighborhood Destabilization Ratio (NDR) for each participating community.
Source -. Factor A - U.S Census Bureau, SENICOG, Oakland County Sheriff Deeds/Oakland County Clerk Register of Deeds, Faetor B - Oakland
County Sheriff Deeds/Oakland County Clerk Register of Deeds, Factor C - HUD User, Factor D = Oakland County Equalization, Factor E - HUD
User
The net effect of these steps was the prioritization of funding to the top quartile communities
with the highest NDR including:
OAKLAND COUNTY AREAS OF GREATEST NEED - TOP QUARTILE
`.'.'-.'..1;.'..':.: .• Ci 16§i',- ''..,1 - • Tninhios .':-.'F,' • Viiiliges...
Ferndale Lathrun Viliaae Holly Holly
Hazel Park Madison Heiahts Rose Lake Orion
. Keero Harbor Galaark , Royal Oak Ortonville
Although the City of Lathrup Village and the Village of Ortonville do not meet the first step
criteria of having "Middle Income Eligible Areas" they are included in the top quartile of areas
of greatest need due to the high Neighborhood Destabilization Ratio for each community.
HUD User Data is provided for the areas of greatest need communities that are targeted to
receive access to the Oakland County Homebuyer Program for Vacant Foreclosed Properties,
The information identifies several key elements including the "Middle Income Eligible". This
data indicates whether or not each Census Block Group qualifies as an area of low-, moderate-,
and middle-income (LMMI) benefit, where more than 51 percent of the people in the area had
incomes less than 120 percent of Area Median Income (AlsilI), (All HUD-NSP funds shall be
used to benefit individuals and families whose incomes do not exceed 120 percent of area
median income.) Data includes information on:
• "Estimated Foreclosure Abandonment Risk Score" which provides a score for each
neighborhood from 0 to 10, where 0 indicates a very low risk and 10 a very high risk.
• "Percent 120 AMP, the percent of people in each Census Tract Block Group that had
incomes less than 120 percent of Area Median Income.
• "Persons 120 AMI" the number of people in each Census Tract Block Group that had
income less than 120 percent of Area Median Income.
• "Total Persons" indicating the total number of people in each Census Tract Block Group,
HUD User Data is provided for the top quartile communities with the highest Neighborhood
Destabilization Ratios which are the areas of greatest need for the purposes of community level
administered programs under NSP. This information identifies several key elements in the areas
which have 51% concentrations of households earning 120% of median income or less. These
block groups are eligible for NSP activities that benefit the area, In several areas of greatest need
the entire community (Keego Harbor, Hazel Park, Royal Oak Township and Holly Village) is an
eligible middle income area. Sixty nine percent (or 92,980 persons) of the total population within
the areas of great need meet the "middle income" definition. Unless otherwise stated, HUD's
Neighborhood Stabilization Program website atwww.1_ nic.._h_gzer.or provided the data.
• "Area of Greatest Need" indicates the twelve participating communities with the highest
level of Neighborhood Destabilization based upon a series of factors as described above.
• "CT and BG" provides the Census Tract and Block Group location with the area of greatest
need.
• "Middle Income Eligible" indicates whether or not each Census Block Group qualifies as an
area of low-, moderate-, and middle-income (LMMI) benefit, where more than 51 percent of
the people in the area had incomes less than 120 percent of Area Median Income (AMI). (All
HUD-NSP funds shall be used to benefit individuals and families whose incomes do not
exceed 120 percent of area median income.)
• "Estimated foreclosure abandonment risk score" provides a score for each neighborhood
from 0 to 10, where 0 indicates that our data suggest a very low risk and 10 suggest a very
high risk.
• "Percent 120 AMI" provides the percent of people in each Census Tract Block Group that
had incomes less than 120 percent of Area Median Income.
• "Persons 120 AMI" provides the number of people in each Census Tract Block Group that
had income less than 120 percent of Area Median Income.
• "Total Persons" indicates the total number of people in each Census Tract Block Group.
The City of Hazel Park has the highest Neighborhood Destabilization Ratio at 0.12236. The
City has identified the area south of Nine Mile Road north to Elza Avenue and west of
Dequindre to east of West End Street (CT 1752 and CT 1753) as the area of greatest need for
stabilization. Within this area an average of 62.8% of the population are low to moderate
income. There are approximately 100 foreclosed upon properties located within this area. The
City has the highest rate of local foreclosures to single family housing units in Oakland County
(21%) as well as an average subprime loans rate of 42%.
The City of Oak Park is a community that has been significantly impacted by a high level of
home foreclosures. The City has a Neighborhood Destabilization Ratio 0.11764. Records
provided by the City Assessor indicate that over 400 homes in Oak Park are in foreclosure or in
some stage of the foreclosure process. These homes are fairly evenly distributed throughout the
City. The City's priority with the NSP Funds will be to target foreclosed homes on streets and in
neighborhoods that are otherwise stable. The goal is to eliminate individual blighted homes from
bringing down the appearance and quality of life for the other well maintained homes in the
neighborhood.
Royal Oak Township has an estimated foreclosure rate of 13.38% with 36 foreclosures located
in CT 1725. The Neighborhood Destabilization Ratio for Royal Oak Township is 0.09431. The
community also has a high cost loan rate of nearly 60%. With 85 vacancies, the township's
estimated 90-Day Vacancy Rate is 7.61%. While the whole township has been affected by the
foreclosure crisis the target area for NSP is Census Tract 1725 BG 1.
The City of Madison Heights has a Neighborhood Destabilization Ratio of 0,07694. The City
mapped the location of homes foreclosed upon in 2006, 2007 and 2008, after the redemption
period, that were on file with the City to determine the areas of greatest need. The locations of
vacant homes that the City's Code Enforcement Division was monitoring in 2008 were mapped.
Code enforcement and the Building Official inspected these properties to verify current building
condition and occupancy status. Finally, the Building Official identified vacant non-foreclosed
blighted properties. This process identified those areas with the highest concentration of
foreclosed and/or vacant homes and blighted structures, In addition, Census Tracts were
analyzed for High Cost Loan Rates, Predicted 18 month Underlying Problem Foreclosure Rates
and the USPS Residential Vacancy Rates. Following this methodology the identified NSP target
areas with the greatest need are Census Tracts 1813, 1814, 1815 and 1816. These Tracts all meet
the NSP <120% AMI standard with the exception of Census Tract 1813 Block Group 4 which
meets the <50% AMI standard.
The City of Ferndale consists of 3.84 square miles located immediately north and bordering on
the City of Detroit. Of the 22,105 people living in Ferndale, 14,736 people are at or below 120%
of the Area Median Income. This means that an average of 66% of the City's population may be
living in housing that they cannot afford or maintain, The City's Neighborhood Destabilization
Ratio is 0.07505. All but two of the City's Census Block Groups qualify for NSP area-wide
benefit. The areas of greatest need are on the City's eastern and southern borders. Ferndale
currently has over 420 foreclosed residential properties. This amounts to approximately 4.6% of
the 9200 residences in the City. Research indicates that the City has an average subprime rate of
25%. leading to many more at-risk loans and homes. Due to this, the likelihood of a major rise in
foreclosures is significant, especially in the targeted NSP Census Block Groups. Most of these
areas have current foreclosure percentages higher than the City's 4.6% average, one as high as
7.9%,
The City of Keego Harbor is comprised of .6 square miles and is divided north to south by
Orchard Lake Road and West and East by Cass Lake Road. Keego Harbor's Neighborhood
Destabilization Ratio is 0.05574. Foreclosures cover the entire .6 square miles. The majority of
housing stock was constructed on small lots as summer homes. A typical lot size is 40' x 100'.
The entire city is NSP areawide eligible and contains one Census Tract and three Block Groups.
Approximately 10% of all residential properties in the city are in some stage of foreclosure.
Holly Village has identified a recently built single family home development located in Census
Tract 1245 Block Group 4. A windshield survey of this neighborhood indicates that this area has
a large number of abandoned or foreclosed move-in ready single family homes. The Village of
Holly Neighborhood Destabilization Ratio is 0.05472
Ortonville Village intends to focus its efforts in the northwest section of the Village between
South Ortonville Road and Church Street, the south side of Mill Street, and south side of Ball
Streets where the overall appeal and marketability of Village properties has been impacted the
greatest by the number of vacant foreclosed homes and residences in blighted condition. County
level data was mapped and a windshield survey of the entire Village was conducted along with
individual exterior inspections of all foreclosed homes in the determination process. More than
half but less than 51% of village residents have incomes that do not exceed 120% AM1. The
Village has a Neighborhood Destabilization Ratio of 0.05148, and an estimated foreclosure
abandonment risk score of 8. Based upon this information the Village of Ortonville is
considered to be a top quartile NSP area of greatest need.
Rose Township will target NSF} funds to both areawide eligible benefit locations and the specific
target areas of Holly Shore subdivision and Webberdale Road. These lower income areas have
higher then average foreclosure rates. Rose Township has a Neighborhood Destabilization Ratio
of 0.04995.
Holly Township has identified a recently built single family home development located in
Census Tract 1240 Block Group 3 has the area of greatest need. This area contains the highest
concentration of foreclosures. The Neighborhood Destabilization Ratio of Holly Township is
0.04035.
The City of Lathrup Village has experienced over 200 foreclosures in the past five years.
Foreclosure statistics from 2007 and 2008 indicate that 12% of the City's housing stock has been
foreclosed upon or abandoned. Although the city does not have any NSP area wide benefit areas
plummeting property values and sub-prime mortgages have greatly contributed to the local
foreclosure crisis, The City has a Neighborhood Destabilization Ratio of 0.04026 and an
estimated foreclosure abandonment risk score of 8 and is considered to be a top quartile NSF
area of greatest need.
Lake Orion Village will concentrate its' NSF allocation in Census Tract 1290 Block Groups 1
and 2 which are eligible for on an areawide basis. This area is located east of M24 in the areas of
the Village with the greatest concentration of residential units. The Village has a Neighborhood
Destabilization Ratio of 0.04021,
DISTRIBUTION AND USES OF FUNDS: As an entitlement county, Oakland County
distributes funds to participating communities through a formula grant application process. The
County's strategy for budget allocations follows current County CDBG allocation methodology
within parameters of NSF and allocates NSP as follows:
• 10% Administration funds to Oakland County
• 17% Housing Counseling funds to Oakland County
• 1/3 of funds to areas of greatest need for county administered homebuyer assistance program
• 2/3 of funds to areas of greatest need for local administered programs in top quartile
communities with highest neighborhood destabilization ratios.
Proposed Neighborhood Stabilization Program (NSF) Revenues
,:-4-C*,.Pritirani .Areiq.-"; .,,:':?j,':4:Iet.r.'W.:;:i41,1,1?*.W'''I't'.:k'. ' : ' :: Itivenlie.,:-.,:'
County Administration (10%) Based on 4 Year Expenditure Design $1,738,377
Housing Counseling (3.7%) Based on 4 Year Expenditure Design $650,000
Areas of Greatest Need — county administered homebuyer assistance program $4,998,467
(1/3)
Areas of Greatest Need — highest quartile community allocations (2/3) 19.996,932
o Total $17,383,776
Allocations to community administered programs are based on funding the top quartile of
communities having the highest "Neighborhood Destabilization Ratios".
Proposed Neighborhood Stabilization Program (NSP) Allocations
.:, .,:l NeightiorhoOd
Hazel Park 0.12236 _ $1,658,863.41
Oak Park 0.11764 $1,630,859.79 .
Royal Oak Twp 0.09431 $937,101.49
Madison Heights 0.07694 $1,163,078.12 .
Ferndale 0.07505 $1,115,160.44_
Keego Harbor 0.05574 $586,172.27 .
Village of Holly 0.05472 $612,593.07
Village of Ortonville 0.05148 $491,932.92 .
Rose Twp 0.04995 $524,763.07
Holly Twp 0.04035 $427,731.05 ..
Lathrup Village 0.04026 $424,379.31
Village of Lake Orion I 0.04021 $424,297•07
- Areas of greatest need - community administered NSP programs (2/3) in targeted areas $9,996,932.00
Areas of greatest need - county administered NSP programs (1/3) in targeted areas $4,998,467.00 '
County administration (10%) based on 4 year expenditure plan $1,738,377.00
Public services - housing counseling (3.7%) based on 4 year expenditure plan $650,000.00
Total Budget $17,383,776.00
Distribution and Uses of NSP Funds
- , ' ' - - •7-.;','.F-.71rActivi ' Funds i!
Financin Mechanisms $6,078,951.56
Ac' Rehab Resale $4,948,495.65
Land Banks $0
Demolition $849,397.35
Redevelo•ment 3,118,554.44
P sli S ic H in. CmilmAiii 1 - ,I $650.000.00
Administration $1,738,377.00
Total $17,383,776.00
Pre-Award Costs - This NSF Substantial Amendment contemplates the expenditure of funding
for eligible activities prior to the effective date of the grant agreement. In compliance with 24
CFR 570.200(h) these expenditures shall be limited to general planning and administrative costs,
or other costs and activities that are in compliance with the Environmental Review Procedures
stated in 24 CFR 58. These pre-award costs will used for general planning and administration.
All other activities will commence on or after the date of the grant agreement. These pre-award
costs are not anticipated to have any affect on future grants.
DEFINITIONS AND DESCRIPTIONS
(1) Definition of "blighted structure" in context of state or local law,
The U. S. Department of Housing and Urban Development (HUD) Neighborhood Stabilization
Program (NSF) regulations prohibit use of program funding for the "demolition of structures that
are not blighted." NSF regulations define a "blighted structure" as one that "exhibits objectively
determinable signs of deterioration sufficient to constitute a threat to human health, safety, and
public welfare."
(2) Housing rehabilitation standards that will apply to NSP assisted activities:
Oakland County will require at a minimum that all NSP funded housing activities meet Housing
Quality Standards (HQS) and improvements meet MI Residential Code. Upon completion the
NSF assisted housing unit will meet Certificate of Occupancy (C of 0) requirements, Lead Paint
Hazard Reduction requirements (HUD 24 CFR Part 35 and Michigan Public Act 368 of 1978. as
amended, and all environmental review record mitigation issues have been addressed.
Oakland County proposes to use the NSF funds in the following manner; however, Oakland
County reserves the right to shift funding from one activity to another and from one agency to
another, as additional areas of greatest needs are identified, and according to availability of
suitable properties, agency capacity, project readiness, and ability to meet the timeliness
requirements of the NSP. Such shifting of funds from one activity to another shall not be
considered a Substantial Amendment to the Action Plan. Notwithstanding the foregoing, under
all circumstances a minimum of 25% of NSF funds will be used for housing individuals and
families whose incomes do not exceed 50% of area median income.
NSP applicants must qualify based upon HUD income guidelines. Applicants must satisfy
standard credit grading criteria and qualify for a fixed rate first mortgage. No arms or balloons
allowed. All NSP mortgages must demonstrate that property taxes and homeowner's insurances
will be escrowed as part of the first mortgage. Property purchased must be located in an Oakland
County community participating in Oakland County's PY 2008 Community Development Block
Grant program. The purchase price of the property may not exceed $226,100. Homes purchased
must be for the purchaser occupant. All homes must be permanently affixed to a slab, crawl
space, or basement. Property purchased must be currently vacant or abandoned. Homes
purchased with NSF funds may not displace an owner/tenant. The property may not be located
in a 100 year flood plain. Homebuyers must execute a Mortgage and Note securing the property
as collateral for NSP assistance. The Joan is deferred with zero percent interest.
I. NSP FINANCING MECHANISMS (OAKLAND COUNTY
1 Activity Name NSP Financing Mechanisms (Oakland County) n.
2 Activity Type NSP: Financing mechanisms CDBG: Downpayment Loan
Financing (soft-second) and Rehabilitation Loan Financing (soft-
second), Direct home ownership assistance (24 CFR 570.206 and
24 CFR 570.202)
113
National Objective 24 CFR 570.208(a)(2) Limited clientele activity benefiting low
and moderate income persons (up to 120% of AMI)
Activity Description Oakland County's Homebuyer Program offers down payment
assistance, rehabilitation assistance or a combination of the two
for the purchase of vacant residential properties that have been
abandoned or foreclosed. These properties must be occupied by a
qualified homebuyer as a primary residence. In addition, they
must be located in one of the areas of greatest need. The County
will provide 0% deferred loans as soft second financial
assistance to households at or below 120% of Area Median
Income (AM!) with an emphasis on serving households at or
below 50% of AMI. The purchase price of the property must
reflect at least 5% less than current market appraised value and
as high as required to keep the total NSP portfolio within the
required purchase discount level of fifteen percent taking into
account its current condition to ensure that the purchasers are
paying below market value for the home. Homebuyers are
required to complete eight hours of pre and post purchase
housing counseling with Oakland County HUD approved
housing counselors, This program will enable the homebuyer to
purchase a home that meets Housing Quality Standards with
improvements that meet MI Residential Code and keep monthly
mortgage payments affordable. The total down payment and or
rehabilitation assistance is subject to recapture when property
ownership is transferred to another party based upon federal
affordability requirements. The assistance will be secured with a
mortgage and mortgage note. Households whose incomes are
equal to or less than 120% AM1 must qualify for a 30 year fixed
rate mortgage based on 51% of the home's final cost including
purchase price and rehabilitation. Oakland County will finance
49% of the cost for down payment assistance and/or
rehabilitation.
5 Location Description Oakland County Areas of Greatest Need
6 Performance Measures Single family owner occupied housing units
• 50% AMI OR LESS: 25
• 51-80% AMI: 25
• 81-120% AMI: 50
Total Budget NSP: $4,998,467
8 Responsible Organization Karr y L. Rieth, Manager, Oakland County Community & Home
Improvement, 250 Elizabeth Lake Rd Ste 1900, Pontiac, MI
, 48341-0414.
9 Projected Start Date February 2009
' 10 Projected End Date July 2013
11 Specific Activity Requirements ERR Classification: Exempt; Categorically Excluded
a. discount rate a. At least 5% less than current market appraised value and as high as required to keep
b_ range of interest rates the total NSF portfolio within the required purchase discount level
c. duration or term of assistance. b 0% deferred loans as soft seconds
el, tenure of beneficiaries C. Forever
e. ensuring continued affordability d. Single Family Owner Occupied Housing Units
e. Assistance secured with mortgage/mortgage note and subject to recapture of the entire
amount of the NSF investment from the homeowner when ownership is transferred.
2. PUBLIC SERVICES — HOUSING COUNSELING (OAKLAND COUNTY
1 Activity Name Public Services — Housing Counseling (Oakland County)
2 Activity Type NSP: Purchase, rehab, and re-sell foreclosed propertiesi
(homebuyer counseling is required); CDBG: 24 CFR 570.201(e)
Public services for housing counseling
3 •National Objective 24 CFR 570,208(a)(2) Limited clientele activity benefiting low
and moderate income person s to 120% of AMI)
Activity Description This activity will provide the homebuyer counseling required
under the NSP. Counseling services may include, but are not
limited to, eight required hours of counseling, individual
financial literacy assistance, individual case management and
follow-up. Counseling services will only be provided to NSP
..nts.
Performance Measures 100% OF HOMEBUYERS UNDER THE NSP PROGRAM
WILL COMPLETE AT LEAST EIGHT HOURS OF
HglvIEBUYER COUNSELING.
I9
Location Description Oakland County NSP Areas of Greatest Need
Total Budget NSP: $650,000
Responsible Organization Karry L. Rieth, Manager, Oakland County Community & Home
Improvement, 250 Elizabeth Lake Rd Ste 1900, Pontiac, MI '
48341-0414.
Pro ected Start Date Februarv009
10 Projected End Date July 2013
11 Specific Activity Requirements ERR Classification: Exempt
d. tenure of beneficiaries d Homebuyer and Renter
w , 1. a
1 Activity Name Administration
2 Activity Type NSP: 10% of initial allocation and 10% of program income, to
be used for general administration and planning activities
(Federal Register, Vol. 73, No. 194, II. H.) CDBG: 24 CFR
0.205 and 24 CFR 570.206
National Objective To administer activities that benefit low and moderate income
persons under 24 CFR 570.208(a)(2) and potentially under 24
CFR 570.208(a 1 u • to 120% of AM!
Activity Description Activity Description Program administration costs
associated with implementation of the Oakland County
Neighborhood Stabilization Program. Funding for general
grant administration and planning activities. Activity may
include appraisal, inspection, and other project soft costs for
•
roe enies that are not moved forward to corn letion.
Location Description
Oakland County Community & Home Improvement, 250
Elizabeth Lake Rd Ste 1900 Pontiac, MI 48341-0414,
6 Performance Measures Oakland County will complete necessary planning activities to
receive NS!' funds; 100% of NSP funds will be accurately
administered
7 Total Budget NSP: $1,738,377 plus 10% of NSP program income over the
five year program period beginning with pre-award activities
as of September 29, 2008. Should this activity not require the
allowed amount of administration funds, these funds may be
re-assigned to other 'NSP activities and such re-assignment
shall not be considered a Substantial Amendment to the Action
.11 _ .
8 Responsible Organization Karr"' L. Rieth, Manager, Oakland County Community &
Home Improvement, 250 Elizabeth Lake Rd Ste 1900, Pontiac,
MI 48341-0414.
Projected Start Date September 29, 2008 (Federal Register, Vol. 73, No. 194, II. C. '
allows reimbursement for ere-award costs)
1 10 Projected End Date [July 2013; however, monitoring of projects and receipt of
program income through recapture will continue indefinitely
II Specific Activity Requirements ERR Classification: Exempt
1. NSP FINANCING MECHANISMS
TOP QUARTILE AREAS OF GREATEST NEED 1 1 Activity Name NSP Financing Mechanisms I
I (Top Quartile Areas Of Greatest Need)
I 2 Activity Type NSP: Financing mechanisms CDBG: Downpayment Loan
Financing (soft-second) and Rehabilitation Loan Financing
(soft-second), Direct home ownership assistance (24 CFR
570.206 and 24 CFR 570.202) ,
3 National Objective 24 CFR 570.208(a)(2) Limited clientele activity benefiting low
and moderate income persons (up to 120% of AM!)
4 I Activity description NSP top quartile areas of greatest need communities
i . (subrecipients) may self administer or contract for the
. administration of this project with a participating entity
(qualified pre-approved developers, both for-profit and non-
profit). This activity will address neighborhood stabilization
as the subrecipient will offer down payment assistance,
rehabilitation assistance or a combination of the two for the
purchase of vacant residential properties that have been
abandoned or foreclosed. These properties must be occupied
by a qualified homebuyer as a primaty residence and located in
an NSP top quartile areas of greatest need. The subrecipient
will provide 0% deferred loans as soft second financial
assistance to households at or below 120% of AMI with an
emphasis on serving households at or below 50% of AMI who
may directly purchase foreclosed properties without title to
passing through Oakland County. This program will enable
the homebuyer to purchase a home that meets housing quality
standards with improvements that meet ml residential code and
keep monthly mortgage payments affordable. It is anticipated
that this activity will be used to meet the requirement that 25%
of the NSP grant be used to assist households making no more
than 50% AMI, though in some cases, the eligible homebuyers
may have higher incomes. Specific locations within the top
quartile areas of greatest need communities will be identified
at the time NSP funds are available for drawdown and as the
program progresses. Purchase of specific properties will be
dependent on availability of foreclosed moderately priced
properties. The term of assistance may be as long as until the
homebuyer sells the home or the home is no longer the
homebuyer's principal residence. Funds received by Oakland
1 county from the subrecipient in repayment of such loans may
be retained and treated as CDBG funds to be used in
accordance with section 2301 of HERA. All homes will be
monitored per home guidelines and will follow the home
affordability requirements. The total down payment and or
rehabilitation assistance is subject to recapture when property
ownership is transferred to another party. The assistance will
be secured with a mortgage and mortgage note. The purchase
price of the property must reflect at least 5% less than current
market appraised value and as high as required to keep the
total NSP portfolio within the required purchase discount level
1 of fifteen percent taking into account its current condition to
ensure that the purchasers are paying below market value for
the home. Homebnyers are required to complete eight hours of
pre and post purchase housing counseling with Oakland
County HUD approved housing counselors. Households whose
incomes are equal to or less than 120% AMI must qualify for a
30 year fixed rate mortgage based on 51% of the home's final
cost including purchase price and rehabilitation. The
subrecipient will finance 49% of the cost for down payment
assistance and/or rehabilitation.
' 5 Location Description Oakland County NSP Top Quartile Areas of Greatest Need
Performance Measures Single family owner occupied housing units
• 50% AM1 OR LESS: 5
• 51-80% AM1: 5
• 81-120% AMI: 5
Total Budget NSP: $612,593.07 Holly Village
Responsible Organization Jeff Wren, Building Ofc, Holly Village, 102 S Saginaw, Holy
MT 48442
9 Projected Start Date February 2009
10 Projected End Date July 2013
11 Specific Activity Requirements ERR Classification: Exempt, Categorically Excluded
a. discount rate a. At least 5% less than current market appraised value and as high as required to
b. range of interest rates keep the total NSP portfolio within the required purchase discount level
c. duration or term of assistance; b. 0% deferred loans as soft seconds
d. tenure of beneficiaries c. May be as long as until the homebuyer sells the home or the home is no longer the
v. ensuring continued affordability homehuyer's principal residence.
d. Single Family Owner Occupied Housing Units
e. Assistance secured with mortgage/mortgage note and subject to HOME recapture
provisions The subrecipient may reduce the NSF investment amount to be
recaptured on a prorata basis for the tone the homeowner has owned and occupied
the housina measured against the required affordability period.
2. NSP FINANCING MECHANISMS DOWNPAYMENT ASSISTANCE (DPA)
(TOP OTTARTTLY
Activity Name NSP Financing Mechanisms DPA (Top Quartile Areas of
Greatest Need)
Activity Type NSP; Financing mechanisms, CDBG: Downpayment
Financing, Direct home ownership assistance (24 CFR
570.206 and 24 CFR 570.202)
National Objective
24 CFR 570.208(a)(2) Limited clientele activity benefiting low
, and moderate income perssir20% of AMI)
Activity Description Down payment assistance for the purchase of vacant
residential properties that have been abandoned or foreclosed.
These properties must be occupied by a qualified homebuyer
as a primary residence with financial assistance to households
at or below 120% AMT with an emphasis on serving
households at or below 50% AM1. The purchase price of the
property must reflect at least 5% less than current market
appraised value and as high as required to keep the total NSP
portfolio within the required purchase discount level of fifteen
percent taking into account its current condition to ensure that
the purchasers are paying below market value for the home
Homebuyers are required to complete eight hours of pre and
post purchase housing counseling with Oakland County 1-11JD
approved housing counselors. All homes will be monitored
per HOME guidelines and will follow the HOME affordability
requirements. The total down payment and or rehabilitation
nInb
_
assistance is subject to recapture when property ownership is
transferred to another party. The assistance will be secured
with a mortgage and mortgage note.
5 Location Description Oakland County NSF Top Quartile Areas of Greatest Need
Performance Measures Single family owner occupied housing units
• 50% AMI OR LESS: 1
• 51-80% AMI: 1
• 81-120% AMI: 1
' 7 Total Budget NSP: $75,000 Ortonville
8 Responsible Organization Ed Coy, Mgr, \fig of Ortonville, 476 Mill St POB 928,
A Ortonville, MI 48462-0928
9 Projected Start Date February 2009
10 Projected End Date July 2013
11 Specific Activity Requirements ERR Classification: Exempt
a. discount rate a. At least 5% less than current market appraised value and as high as required to
b. range of interest rates keep the total NSP portfolio within the required purchase diswant level
C. duration or term of assistance: b. 0% deferred loans as soft seconds
d. tenure of beneficiaries c. Maximum 15% (cupped at 5 years) in accordance with the resale/recapture
e. ensuring continued affordability conditions of the federal affordability requirements.
d. Single family owner/tenant occupied housing units
e. Assistance secured with mortgage/mortgage note and subject to HOME recapture
provisions. The subrecipient may reduce the NSP investment amount to be
recaptured on a prorata basis for the. time the homeowner has owned and occupied
I the housing_ rrieaswe ainst the required affordability period.
3. ACQUISITION REHABILITATION RESALE (HOMEOWNER/RENTER)
(TOP
Activity Name Acquisition Rehabilitation Resale (Homeowner/Renter) _
2 Activity Type NSF: Purchase and rehabilitate homes and residential
properties that have been abandoned or foreclosed upon, in
order to sell, rent, or redevelop such homes and properties.
Finance Mechanisms CDBG: Eligible rehabilitation and
preservation activities 24 CFR 570.202, Acquisition
(570.201a), Disposition (570.201b), and Homeownership
, Assistance (570.201n).
3 National Objective 24 CFR 570.208(a)(2) Limited clientele activity benefiting low
and moderate income persons (up to 120% of AMI) -
4 Activity Description After acquiring properties that it was determined will be
rehabilitated for sale/rental to owner-occupants/tenants, the
subrecipient may either self administer or assign the properties
to participating entities (qualified pre-approved developers,
both for-profit and non-profit) who will be responsible for the
activity. After rehabilitation the units will be sold/leased to
households making no more than 120% AMI. It is anticipated
that this activity will be used to meet the requirement that 25%
of the NSP grant be used to assist households making no more
than 50% AMI, though in some cases, the eligible
homebuyers/tenants may have higher incomes. The specific
properties will be identified at the time the NSP funds are
available for drawdown and as the program progresses.
Purchase of specific foreclosed properties will be dependent on
availability of foreclosed moderately priced properties.
Subrecipients will partner with responsible entities to select
properties in the top quartile areas of greatest need that help
meet the needs of individuals/families meeting the income
requirements established for this activity. Disposition of these 1
properties to responsible entities may include outright sale to
or an equity sharing agreement. Program income obtained
from disposition under any arrangement may be used to
expand the scope of this activity and grow the number of units
to be available to individuals/families meeting program
requirement. These homes will be monitored through the same
process that is used to monitor HOME projects. These
properties must be occupied by qualified homebuyersirenters
as their primary residence. The purchase price of the property
must reflect at least 5% less than current market appraised
value and as high as required to keep the total NSP portfolio
within the required purchase discount level of fifteen percent
taking into account its current condition to ensure that the
purchasers are paying below market value for the home. This
program will enable the bornebuyer/renter to purchase/lease a
home that meets Housing Quality Standards with
improvements that meet MI Residential Code and keep
monthly mortgage payments affordable. The period of
affordability for each NSP assisted unit will be modeled after
the HOME affordability requirements and based on the amount
of permanent subsidy. All homebuyers receiving assistance
through this activity are required to complete eight hours of
pre and post purchase housing counseling with Oakland
County HUD approved housing counselors. In order to meet
the objective of homeownership, the subrecipients may offer
potential homebuyers several options to achieve that goal
including: lease with option to buy in a specified time frame;
outright purchase with the potential for down payment and
closing cost assistance in the form of a 0% interest payment
deferred loans, or a shared equity agreement. If a home
acquired through this hornebuyer activity is not able to be sold
to a homebuyer within a reasonable period of time such home
may be temporarily rented to a household at less than 120%
AMI and sold at a later date or leased with option to buy to an ,
income qualified household. The total down payment and or
rehabilitation assistance is subject to recapture when property' .
ownership is transferred to another party based upon federal •
affordability requirements. The assistance will be secured with
A mortgage and mortgage note.
Location Description I Oakland County NSP Top Quartile Areas of Greatest Need
Performance Measures
Total Budget
Single family owner occupied housing units
▪ SO% AM! OR LESS
4 Ferndale 1 Holly Twp 1 Ortonville
10 llazel Park 3 Keego Harbor
3 Lathrup Village 4 Madison Heights
4 Oak Park 1 Rose Twp
3 Royal Oak Twp 1 Lake Orion
w 51-80% AM!
4 Ferndale 2 Lathrop Village 3 Royal Oak Twp
4 Hazel Park 5 Oak Park 1 Lake Orion
3 Keego Harbor 1 Rose TIA.p 1 Ortonville
M 81-120% AM!
4 Ferndale 2 Lathnip Village 3 Hazel Park
5 Oak Park 3 Keego Harbor 1 Ortor.ville
NSP: $5,979,171.16
Ferndale S1,115,160.44
Hazel Park $760,785.41
Keego Harbor $536,172.27 (alt
Lathrup Village $424,379.31
Madison Hefatit5 $313, 078. 12
1
Oak Park $1,400,000
Holly Twp 227,731.05
Rose Twp $374,763.07
Royal Oak Twp $468,101.49
Lake Orion $107,000
Ortonville $252,000
8 Responsible Organization Marsha Scheer, CD Dir, City of Ferndale, 300 E 9 Mile Rd,
Ferndale, MI 48220-1797; Mark Stec, CDBG Coor, City of
Hazel Park, Ill E 9 Mile Rd, Hazel Park, MI 48030-1892;
Linda Von, Clerk, City of Keego Harbor, 2025 Beechmont,
Keego Harbor, MI 48320-0665; Gloria Harris-Ford, CD
Dir/Clerk, City of Lathrup Vlg, 27400 Southfield Rd, Lathrup
Vig, MI 48076-3489; James T Schafer, CD Dir, City of
Madison Hts, 300 W 13 Mile Rd, Madison Heights, MI 48071- 1
1899; Kevin Rulkowski, Planner, City of Oak Park, 13600 Oak
Park Blvd, Oak Park, MI 48237-2029; Jesse Lambert, Supv,
Twp of Holly, 102 Civic Dr, Holly, MI 48442-1505; David
Schang, Bldg Ofc, Twp of Rose, 9080 Mason St, Holly, MI
48442-8587; William Morgan, Supv, Twp of Royal Oak,
21131 Garden Ln 2nd Flr, Ferndale, MI 48220-2122; Paul
Zelenak, Mgr, Illg of Lake Orion, 37 E Flint St, Lake Orion,
MI 48362-3274; Ed Coy, Mgr, VIg of Ortonville, 476 Mill St
POB 928, Ortonville, MI 48462-0928
9 Projected Start Date February 2009
10 Projected End Date July 2013
11 Specific Activity Requirements ERR Classification: Categorically Excluded or
a discount ratc Environmentally Assessed. b. range of interest rates a. At least 5% less than current market appraised value and as high as required to c, durcion or term of assistance; keep the total NSP portfolio within the required purchase discount level d. tenure of beneficiaries b. 0% deferred loans as soft seconds e. ensuring continued affordability
c. May be as long as until the homebuyer sells the home or the home is no longer the
homebuyer's principal residence.
d. Single Family Owner Occupied Housing Units
c.
Assistance secured with mortgage/mortgage note and subject to HOME
resale/recapture provisions.
4. ACQUISITION AND DEMOLITION OF BLIGHTED PROPERTIES
TOP OUARTILE AREAS OF GREATEST NEED
1 Activity Name Acquisition and Demolition of Blighted Properties
2 Activity Type NSF: Demolish blighted structures, Purchase and rehabilitate
homes and residential properties that have been abandoned or
foreclosed upon, in order to sell, rent, or redevelop such homes
and properties, CDBG: Acquisition (24 CFR 570.201).
3 National Objective LMMA (Low/Moderate/Middle Income Area benefit): serves
an area in which at least 51% of residents with incomes at or
below 120% AMI,
4 Activity Description Activity Description NSP top quartile areas of greatest
need communities (subrecipients) may self administer or
contract for the administration of this project with a
participating entity (qualified pre-approved developers, both
for-profit and non-profit). Acquisition and clearance of
blighted properties. Refer to definition of blight in Section C
As described in Section E, the clearance of blighted properties
is expected to he of substantial benefit to the top quartile areas
of greatest need LMMI-neighborhoods in which the properties
are located. The cleared properties may be offered for resale at
current market price and sold to adjacent property owner(s) to
increase substandard lot widths, or sold to any buyer for future
development. If the adjacent property owner-occupants are
income eligible (120% AM!), the cleared property may be
conveyed or donated at less than market rate, for the purpose
' of increasing the adjacent property's compliance with zoning,
1 building, or fire safety codes and standards. Cleared properties
may be retained and redeveloped for CDBG-eligible public
' uses (such as a tot park, community garden, or expansion of a
neighborhood facility). Property may also be conveyed or
donated to a Community-Based Development Organization
(CBDO) for new LMMI housing construction. Term of
assistance and continued affordability requirements (as
described in Section C (3)) shall not apply to market rate
dispositions of cleared property located in LIvIMI-eligible
areas. All other dispositions shall comply with applicable
provisions of Section C (3). The purchase price of the property
must reflect at least 5% less than current market appraised
value and as high as required to keep the total NSP portfolio
within the required purchase discount level of fifteen percent.
5 Location Description Oakland County NSP Top Quartile Areas of Greatest Need A
6 Performance Measures Blighted properties cleared all of which will be located in areas
where at least 51% of the residents have incomes at or below
120% AMT.
• Hazel Park (4)
• Oak Park (4)
• Madison Heights (5)
• Keego Harbor (2)
• Ortonville (2)
• Rose Twp (2)
• Holly Twp (3)
• Lake Orion (4)
Total Budget NSP: $1,195,792.71
Hazel Park, S100,000,00
Oak Park $230,859.79
Madison Heights $300.000
Keego Harbor $50,000
Ortonville $164,932.92
Rose Twp $150,000
Holly Twp $200,000
Lake Orion S317,297.07 (alt #2)
8 Responsible Organization Mark Stec, CDBG Coor, City of Hazel Park, 111 E 9 Mile Rd,
Hazel Park, MI 48030-1892; Kevin Rulkowski, Planner, City
of Oak Park, 13600 Oak Park Blvd, Oak Park, MI 48237-
2029; James T Schafer, CD Dir, City of Madison Hts, 300 W
13 Mile Rd, Madison Heights, MI 48071-1899; Linda Voll,
Clerk, City of Keego Harbor, 2025 Beechmont, Keego Harbor,
MI 48320-0665; Ed Coy, Mgr, Vlg of Ortonville, 476 Mill St
POB 928, Ortonville, MI 48462-0928; David Schang, Bldg
Ofc, Twp of Rose, 9080 Mason St, Holly, MI 48442-8587;
Jesse Lambert, Supv, Twp of Holly, 102 Civic Dr, Holly, MI
48442-1505;Paul Zelenak, Mgr, Vlg of Lake Orion, 37 E Flint
St. Lake Orion, MI 48362-3274
9 Projected Start Date February 2009
10 Projected End Date July 2013
11 Specific .Activity Requirements ERR Classification: Environmentally Assessed.
a. discount rate a. At least 5% less than current market appraised value and as high as required to
keep the total NSP portfolio within the required purchase discount level
5. DEMOLITION OF BLIGHTED STRUCTURES
(TOP OTIARTILF, ARRAS OF GREATEST NERD
1 Activity Name Demolition of Blighted Structures
Activity Type NSF: Demolition of blighted structures. CDBG: Clearance and
remediation activities 24 CFR 570.201
3 National Objective LivIMA (Low/Moderate/Middle Income Area benefit): serves
an area in which at least 51 percent of the residents have
incomes at or below 120 percent of area median income.
4 Activity Description The Subrecipient or a Participating Entity will demolish
vacant, blighted properties. These properties will be
demolished because they are so blighted that the required
investment to bring them up to code and habitable is much
greater than the expected sales price of the property. This
activity will address all the areas of greatest need. The
expected benefit of this activity to low-, moderate- and middle-
income households is an area benefit. All properties that are
demolished will be located in census tracts in which at least
51% of the residents have incomes at or below 120% of area
median income, and the residents of those census tracts will i benefit by from the elimination of these vacant, blighted
structures, which pose health and safety hazards and are often
associated with criminal activity. This activity will not be used
to meet the requirement that 25% of the NSP funds be used to
assist households making no more than 50% of the area
m dian income.
. ' Location Descri tion Oakland County NSP Top Quartile Areas of Greatest Need
PERFORMANCE MEASURES 1 PUBLIC FACILITY
HOUSING UNITS
. 7 Total Bud_et NSP: $269,000 Royal Oak Township
8 Responsible Organization William Morgan, Supv, Twp of Royal Oak, 21131 Garden Ln
2nd FIr Ferndale M148220-2122
9 Pro'ected Start Date Febru 2009
urn Pro'ected End Date Jul '2013 , illiMEMIll i . Clas ification: Environmentall Assessed,
6_ REDEVEI,OPMEN'
1 Activity Name Redevelopment
2 Activity Type NSP: Demolish blighted structures and redevelop demolished
or vacant properties; CDBG: 24 CFR 570,201(a) Acquisition;
24 CFR 570.201(b) Disposition; 24CFR 570.201(d) Clearance
for blighted structures only: 24 CFR 570.201(e) public
facilities sad improvements. Construction of housing 24 CFR
570.201
3 National Objective National Objective: 24 CFR 570.208(a) (2) Limited clientele
activity benefiting low and moderate income persons (up to
120% of MFI permitted under NSP); there is potential for area
wide benefit under 24 cm. 570.208(a) (1) at the discretion of
HUD, LMMI-1 (Low/Moderate/Middle Income Housing
benefit): provides or improves permanent residential structures
that will be occupied by a household whose income is at or
below 120 percent of area median income.
4 Activity Description Activity Description This activity will allow the demolition
of blighted structures and redevelopment of demolished or
vacant properties. The specific neighborhoods within the areas
of greatest need will be identified at the time the NSP funds I
are available for drawdown and as the program progresses. 1
Properties under this activity may be redeveloped with housing ;
or, if allowed by HUD, redeveloped with public facilities to
serve either a limited clientele or low to moderate income
persons on an area wide basis. NSP funds may be used to
construct new housing on some parcels of land where a vacant,
blighted, foreclosed property was demolished. After
demolishing a blighted structure and clearing the property, the
subrecipient may assign the property to a pre-approved
participating entity (qualified developer) to construct a new
home on the site. The benefit to low- moderate- and middle-
income households will be a housing benefit, and all of the
homes built will be sold to households making no more than
120% AMI. This activity will address all the areas of greatest
need and will be used to meet the requirement that 25% of the
NSP funds be used to assist households making no more than
50% AMI, though some of the homebuyers assisted through
this activity may have higher incomes. Resale or transfer of ,
cleared property to income eligible owner-occupant
households of adjacent property at less than market rate shall
be secured by a recorded document. The period of
affordability for each assisted homeownership unit will be
modeled after the HOME affordability requirements and will
be based on the amount of permanent subsidy going to the
hornebuyer. If a homeowner does receive a permanent subsidy,
we expect to impose a lien to ensure compliance with the
applicable affordability requirements. All homebuyers
receiving assistance through this activity will receive the NSP-
reauired eight hours of homebuyer counseling.
5 Location Description Oakland County NSP Top Quartile Areas of Greatest Need
6 Performance Measures SINGLE FAMILY OWNER OCCUPIED HOUSING UNITS
• 50% AMI OR LESS
1 Hazel Park 2 Royal Oak Township
3 Keego Harbor 1 Madison Heights
• 51-80'4 AMI
2 Hazel Park 3 Keego Harbor
2 Madison Heights
• 81-120% AMI
3 Hazel Park 3 Keego Harbor
2 Madison Heights
PUBLIC FACILITY
• Hazel Park (3)
• Madison Heights, (1)
a a Lake Orion Village (11
7 Total Budget NSP; 51,865,375.07 Leveraging to be determined,
$720,000 Hazel Park (construct 6 new housing units)
$200,000 Royal Oak Twp (demolish 12 existing blighted structures and
construct 2 ncw housing units)
$78,078 Hazel Park (acquire, demoiish and redevelop into 3 public facilities)
$536,172.27 Keego Harbor (acquire, demolish and construct 9 new housing
units) (alt #2)
$550,000 Madison Heights (acquire, demolish and redevelop into 1 public
facility)
5317,297.07 Lake Orion (acquire, demolish and redevelop 1 public facility)
fah #1)
If it is determined that demolition and/or redeveiopment wou:d be a
beneficia: use of additional NSF funds, NSP funds will be transferred to this
activity from another activity. Such re-assignment of funds shall not be
considered a Substantial Amendment to the Action Plan.
Responsible Organization i Mark Stec, CDBCi Cool-, City of Hazel Park, 111 E 9 Mile Rd,
1 Hazel Park, MI 48030-1892; William Morgan, Supv, Twp of
1 Royal Oak, 21131 Garden Ln 2nd Fir, Ferndale, MI 48220-
! 2122 ; James T Schafer, CD Dir, City of Madison Hts, 300W
: 13 Mile Rd, Madison Heights, MI 48071-1899; Paul Zelenak,
; Mgr, Vlg of Lake Orion. 37 E Flint St, Lake Orion, Ml 48362-
[3274
. .
Projected Start Date February 2009
. .
10 Projected End Date : July 2013
11 Specific Activity Requirements ERR Classification: Environmentally Assessed
a. discount rate a. At least 5% less than cum:at market appraised value and as high as required to
b. range of interest rates keep the total liSP portfolio within the required purchase discount level
c. duration or term of assistance; b. 0% deferred loans as soft seconds
d. tenure of beneficiaries . c. May be as long as until the homebuyer sells the home or the home is no longer the
c. ensuring continued affordability horriebuyer's principal residence.
d. Single Family Owner Occupied Housing Units
c. Assistance secured with mortgage/mortgage note and subject to HOME
, resale/recapture provisions.
$17,383,776
$1,034,884
689,922
13,571
2,999,080
1,999,387
390,000
260,000
9,996,932
$17,383,776
Salaries — Regular
Fringe Benefits
Transfer Out
Homebuyer Down Pay Asst
Housing Rehabilitation
Salaries — Regular
Fringe Benefits
Community Allocation
Total Expenditures
Transfer In
Budgeted Equity Adjustment
FISCAL NOTE (MISC . i09068) March 26, 2009
BY: FINANCE COMMITTEE, TOM MIDDLETON, CHAIRPERSON
IN RE: DEPARTMENT OF ECONOMIC DEVELOPMENT AND COMMUNITY AFFAIRS — COMMUNITY & HOME
IMPROVEMENT DIVISION — 2008 NEIGHBORHOOD STABILIZATION PROGRAM (NSP) GRANT ACCEPTANCE
AND SUBSTANTIAL AMENDMENT TO THE 2008 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
ANNUAL ACTION PLAN
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson. Ladies and Gentlemen:
Pursuant to Rule XII-C of this Board, the Finance Committee has reviewed the above referenced resolution
and finds:
1. The resolution accepts Neighborhood Stabilization Program (NSP) Federal grant funding from the U.S.
Department of Housing and Urban Development in the amount of $17,383,776 as a Substantial
Amendment to the 2008 Community Development Block Grant (CDBG) Annual Action Plan.
2. The NSP Grant provides a one-time emergency funding supplement to the 2008 CDBG Program as a
targeted initiative to stabilize neighborhoods hardest hit by foreclosures.
3. The grant award is in the same amount as the application and includes $4,998,467 for County-Level
Program Allocation (Homebuyer Assistance Program), $9.996,932 for Community Allocations,
$1,738,377 for Administration, and $650,000 for Public Service — Housing Counseling,
4. Distribution and Eligible Uses of NSP Funds include $6,078,952 for Financing Mechanisms,
$4,948,496 for Acquisition Rehabilitation Resale, $3,118,554 for Redevelopment, $849,397 for
Demolition, $650,000 for Public Services Housing Counseling, and $1,738,377 for Administration.
5. Funding is based on a federal formula factoring foreclosures, sub prime mortgage loans, declining
housing values, and delinquencies.
6. The 2008 NSP Substantial Amendment reflects eligible activities targeted to areas of greatest need
and requires that grant funding be contractually obligated within eighteen months and expended within
four years from the date of HUD's execution of the grant agreement. All Program Income received
after five years must be returned to HUD unless a waiver is granted.
7. The 2008 NSP Substantial Amendment includes a request for one new grant funded Community &
Home Improvement Specialist — Housing Counselor position. The annual salary and fringe benefit
cost of the position is $77,766.
8, Office renovations as well as electrical and voice/data work are required in the amount of $13,571 to
accommodate office space for the new position. Funding for this purpose is available in the NSP
Grant for transfer to the Project Work Order Fund (Project Number #1000000001251).
9. No County match is required for the NSP grant.
10. Indirect costs are not paid for this grant due to administrative and planning limits.
11. The FY 2009 Special Revenue Fund Budget for the Neighborhood Stabilization Program Grant Fund
#29730 is amended as follows:
Neighborhood Stabilization Program Fund #29730
Revenue
1090601-172131-610313 Grants Federal
Expenditures
1090601-172131-702010
1090601-172131-722740
1090601-172131-788001-40400
1090659-132231-730860
1090659-132235-730898
1090680-132210-702010
1090680-132210-722740
1090611-132231-730860
Project Work Order Fund #40400
Revenue
1040101-141000-695500-29730
Expenditure
1040101-141000-796500
13,571
13,571
-0-
121=71HeEE/
FINANCE COMMiTTEE
Motion carried on a roll call vote with Coulter voting no.
Resolution #09068 March 26, 2009
Moved by Scott supported by Schwartz the resolution (with fiscal note attached) by adopted.
Moved by Scott supported by Schwartz the Human Resources Committee Report be accepted.
A sufficient majority having voted in favor, the report was accepted.
Vote on resolution:
AYES; Coleman, Coulter, Douglas, Gershenson, Gingell, Gosselin, Greimel, Hatchett, Jackson,
Jacobsen, Long, McGillivray, Middleton, Nash, Potter, Potts, Runestad, Schwartz, Scott,
Woodward, Zack, Bullard, Burns, Capella. (24)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolution (with fiscal note attached) was adopted.
I NOY OM THE FONG fESOLUTION
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Ruth Johnson, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true
and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on March 26,
2009, with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at
Pontiac, Michigan this 26th day of March, 2009.
ade
Ruth Johnson, County Clerk