Title
Amendment to U.S. Department of Housing and Urban Development Neighborhood Stabilization Programs 1, 2 and 3 Action Plans
Description
This report requests City Council approval of Amendments to the U.S. Department of Housing and Urban Development (HUD) Neighborhood Stabilization Program 1 (NSP1), Neighborhood Stabilization Program 2 (NSP2), and Neighborhood Stabilization Program 3 (NSP3) grants to facilitate necessary adjustments to program fund allocations, and to amend the HUD Action Plans to reflect the proposed changes.
Report
Summary
The purpose of the Neighborhood Stabilization Program (NSP) grants is to address abandoned foreclosed properties through acquisition, rehabilitation, demolition and redevelopment activities. The proposed amendment will enhance continuity and consistency in the NSP program and facilitate program implementation and reporting. The City of Phoenix has prepared this Amendment to adjust our NSP1, NSP2 and NSP3 program allocations between eligible uses based on program progress and program income received to date, in addition to amending our HUD Action Plans to reflect the proposed changes.
The following summarizes the amendments (Attachment A) to each grant.
NSP1
This Amendment will adjust NSP1 program allocation of funds between eligible uses based on program progress and program income received to date. A future, new multi-family housing activity that will serve households at or below 50 percent Area Median Income (AMI) will be created in order to program funding to this activity. This will assist the City comply with a grant requirement to utilize at least 25 percent of grant funds to projects housing individuals or families at or below 50 percent AMI (LH25 requirement). Additionally, program income funds will be programmed to support existing activities of South Phoenix Village redevelopment project and lot maintenance of NSP properties. Funds have been increased in the following areas: Single-Family Strategies - Landbank and Redevelopment; and Multi-Family Strategies - Acquisition/ Rehabilitation.
NSP2
This Amendment will adjust NSP2 program allocation of funds between eligible uses based on program progress and program income received to date. A future, new multi-family housing activity that will serve households at or below 50 percent AMI will be created in order to program funding to this activity. This will assist the City comply with the NSP2 LH25 requirement. Additionally, program income funds will be allocated to the South Phoenix Village redevelopment project and Program Administration to support existing activities. Funds have been increased in the following areas: Single-Family Strategies - Redevelopment; Multi-Family Strategies - Acquisition/ Rehabilitation; and Program Administration.
NSP3
This Amendment will create a new future single-family residential redevelopment project and adjust NSP3 program allocation of funds between eligible uses based on program progress and program income received to date. Program income will be programmed to facilitate the planning and budget for future redevelopment infill activities in NSP3 eligible areas. Funds have been increased in the following areas: Single-Family Strategies - Acquisition/ Rehabilitation; and Program Administration.
Procurement Information
Services may be procured, as needed, by utilizing procurement practices in accordance with Administrative Regulation 3.10 to implement and administer HUD funded programs.
Financial Impact
These activities are funded by HUD through the Neighborhood Stabilization Program. There is no impact to the General Fund.
Concurrence/Previous Council Action
The Community and Cultural Investment Subcommittee recommended this item for approval at the Oct. 6, 2021, meeting by a 3-0 vote.
Public Outreach
The proposed Amendment was posted for a 15-day public comment period per HUD's NSP grant requirements.
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Neighborhood Services Department.