Title
Resolution to Accept and Appropriate a $850,000.00 Grant from the Michigan State Housing Development Authority (MSHDA) for Neighborhood Stabilization Program Funds ($850,000.00 CDBG-NSP Funds) (8 Votes Required)
Memorandum
Attached for your review and approval is a resolution to accept and appropriate a $850,000 grant from the Michigan State Housing Development Authority (MSHDA) for Neighborhood Stabilization Program funds.
The City of Ann Arbor has been allocated $850,000.00 out of a total national allocation of $3,920,000,000.00 under Title III of Division B of the Housing and Economic Recovery Act (HERA) by Congress for the Neighborhood Stabilization Program (NSP). These funds are a special Community Development Block Grant (CDBG) allocation. Because the City’s formula allocation was less than $2 million, the funds went to the State of Michigan to administer instead of directly to the City of Ann Arbor. MSHDA issued an RFP in December 2008 and Community Development submitted the attached response to the RFP in January 2009.
Under this Act, Ann Arbor must distribute these funds to the areas with the greatest need, defined as those Census Block Groups with the:
· Greatest percentage of home foreclosures;
· Highest number and percentage of homes financed by sub-prime mortgage
related loans
· Greatest number and percentage of homes likely to face a significant rise in the
rate of home foreclosures based on default or delinquency rates
HUD pre-ranked all census blocks from 1 to 10, with 1 being the lowest and 10 being the highest. The City of Ann Arbor’s highest ranked Census Tract was a 7. All NSP funds will be spent in Census Tracts ranked as a 6 or a 7. Please see the attached map for eligible areas.
NSP funds are restricted to 5 eligible uses:
1. Financing Mechanisms: Establish financing mechanisms for purchase and
redevelopment of foreclosed upon home and residential properties, including such
mechanisms as soft-secon...
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