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Substantial Amendments — NSP 2 & 3 and <br />Loan Agreement with 815 N Harbor LP <br />September 16, 2013 <br />Page 2 <br />FINANCE, ECONOMIC DEVELOPMENT AND TECHNOLOGY COMMITTEE REVIEW <br />The Finance, Economic Development and Technology Committee reviewed this matter at its <br />meeting on August 6, 2013. The Committee has reviewed the recommended actions and <br />recommends that the City Council to adopt and authorize actions. <br />COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION <br />At its regular meeting on September 3, 2013, by a vote of 5:0 (Aguinaga, Verino absent) the <br />Community Redevelopment and Housing Commission conducted a public hearing and approved <br />the recommended actions stated above. <br />DISCUSSION <br />SUBSTANTIAL AMENDMENTS TO NEIGHBORHOOD STABILIZATION PROGRAMS 2 & 3 <br />The City of Santa was awarded $10 million in the second round of Neighborhood Stabilization <br />Program (NSP 2) and allocated $1,464,113 in the third round of Neighborhood Stabilization <br />Program (NSP 3) which is to be used to purchase foreclosed or abandoned properties. <br />The proposed substantial amendment for NSP 2 will amend the program activities to include and <br />reallocate funds for the redevelopment activity. This activity will allow the development of rental <br />housing for low- income households at or below 60 percent of area median income. The <br />requirement of 25 percent of NSP 2 funds spent on activities benefiting very low- income <br />households has already been achieved through past activities. The proposed substantial <br />amendment for NSP 3 will add the redevelopment activity. The eligible household incomes will be <br />at 50 percent and 60 percent of the area median income (AMI). <br />The proposed changes for the NSP 2 and NSP 3 are identified as follows: <br />NSP 2 Program Activities <br />Current <br />Proposed <br />Allocation <br />Allocation <br />1. Down payment Assistance (up to 120% AMI) <br />$ 400,000 <br />$ 400,000 <br />2. Acquisition, Rehabilitation & Resale of Single Family <br />Residences (up to 120% AMI) <br />$ 6,100,000 <br />$ 5,171,380 <br />3. Acquisition & Rehab of Rental Housing (up to 5)% AMI) <br />$ 2,500,000 <br />$ 2,500,000 <br />4. Redevelopment of Vacant Properties as Rental Housing <br />for Low - Income Households (up to 50% AMI) <br />$ 0 <br />$ 742,896 <br />5. Redevelopment of Vacant Properties as Rental Housing <br />$ 0 <br />$ 185,724 <br />80A-2 <br />