Chris Bazar Agency DI/«ro,

~ hcd

Linda M.Gardner HOUj,jng Director

224 W. Winton Avenue

room 108

Hayvvard CalifornIa

94544-1215

phone 510.670.5404

fax 510.670.6378

TIY 510.265.0253

www, acgov.org/cda

ALAMEDA COUNTY COMMUN1lY DEVELOPMENT AGENCY HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT

Agenda Item No. February 7, 2012

January 24, 2012

Honorable Board of Supervisors Administration Building Oakland, California 94612

Dear Board Members:

SUBJECT: AUTHORIZE ADDITIONAL APPROPRIATIONS WITH OFFSETTING REVENUES TO ACCOMMODATE AT-COST CONTRACTS FOR THE NEIGHBORHOOD STABILIZAnON PROGRAM (AMERICAN RECOVERY AND REINVESTMENT ACT)

RECOMMENDATION:

Authorize the Auditor~Controller to increase appropriations by $6,220,000, per the attached financial resolutio~ within the Conununity Development Agency's Housing and Comm1ll11ity Development Department to continue Neighborhood Stabilization Progranl (American Recovery and Reinvestment Act) activities.

DISCUSSION/SUMMARY:

On February 23,2010, your Board accepted Grant Agreement #B-09-CN-CA-0052 from the Housing and Urban Development Department's Neighborhood Stabilization Program. The program provides targeted assistance to State and local governments to acquire and redevelop abandoned and/or foreclosed homes and residential properties that might otherwise become sources ofbligbt within their communities. On July 27, 20 10 your Board approved contracts with Hallmark Community Solutions (now Hello Housing) and Habitat for Hwnanity East Bay to implement the program in Emeryville, San Leandro, Hayward, Newark, Union City, Fremont. Dublin, Livermore, Pleasanton and the Unincorporated COWlty.

The NSP agreements with the two nonprofit partners run as a revolving loan, with repayments to the fund made available again to acquire and rehabilitate additional housing units as feasibility pennits. Payments have been issued through the Auditor­Controller. The allocated budget cap authorized for this project for FY20 11-2012 has been reached and does not include enough appropriations in FY20 11-2012. This budget adjustment is necessary to continue to implement the program.

A II costs are fu II y rei mbursable Wlder the terms of the contract through the Neighborhood Stabilization Program 2 per a U.S. Department of Housing and Urban Development grant under the American Recovery and Reinvestment Act of2009 (ARRA).

Board of Supervisors January 24, 2012 Page 2

SELECTION CRITERiA AND PROCESS:

The NSf2 Application to HUD indicated that the competitively selected development partners in the NSfJ Programs would be used to carry out the NSP2 Single-Family Program. The two Development Partners competitively selectedfor NSP I programs were Habitat for Humanity East Bay (City ofHayward) and Hallmark Community Solutions (Urban County and City of Livermore Consortium). Local jurisdictions participating in the NSP2 Consortium selected which ofthese two Development Partners they wished to use for NSP2 Single Family activities in their jurisdictions.

FTh'ANCING:

There is no Net County Cost as a result of this action. All costs of the program will be paid for by grant funds and program income repayments budgeted in FY2011-12; any unused funds will be rolled over to FY2012-13.

Very truly yours,

as-~ Chris Bazar, Director Community Development Agency

cc: Susan Muranishi, County Administrator Patrick O'Connell, Auditor-Controller Donna Ziegler, County Counsel Louie Martirez, County Administrator's Office Andrea Weddle, Office of the County Counsel U.B. Singh, CDA Finance Director

G:\HCD\NSP'lNSP 2\taw letter to board to increase NSP2 budget and CIljUan lO12.doc

L .oRG· ACCT PROG PROJ/GR AMOUNT

I 260850 610000 00000 $6,220,000

FINANCIAL RECOMMENDATION AGENDA DATE: 2/712012 Subject of Board Letter: Authorize additional appropriations with offsetting revenues to

to acconunodate at-cost contracts for the Neighborhood Stabilization Program.

BY: 2012 FUND: 22457

The use of Designations, as follows:

NAME OF DESIGNATION ORC AMOUNT

The increase (decrease) in anticipated revenue, as follows:

I I

ORG 260850

ACCT 458900

PROG 00000

-PROJ/GR . AMOUNT

$6,220,000

-

ORGTOTAL $6,220,000

ftJ/'orma{iollal

I ORG ACCT PROG PROJ/GR AMOUNT ., .

I J

ORGTOTAL $0

GRAND TOTAL ANTICIPATED REVENUE $6,220,000 ========~====

TIle increase (decrease) in appropriations, as follows: .-.

ORGTOTAL $6,220,000

I I

ORC ACCT PROG {,,{orma/iOllal

PROJ/GR N\10UNT

ORGTOTAL $0

GRAND TOTAL APPROPRIATION $6,220,000 ===============

FUNDING APPROVAL AND GRANT AGREEMENT FOR NEIGHBORHOOD STABaIZATION PROGRAM 2 (NSP2) FUNDS

AS AUTHORIZED AND APPROPRIATED UNDER THE AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 AND THE

HOUSING AND ECONOMIC RECOVERY ACT OF 2008 (PUBLIC LAWS 111-5 and 110-289)

NSP2 GRANTEE: Alameda County

NSP2 GRANT NUMBER: B-09-CN-CA-0052

NSP2 GRANT AMOUNT: $11,000,000

NSP2 APPROVAL DATE: January 14,2010

NSP2 EXPENDITURE DEADLINE (2 YEAR): February 11,2012

NSPZ'EXPENl?ITURE DEADLINE (3 YEAR): February 11,2013

1. This Grant Agreement between the U.S. Department of Housing and Urban Development (HUD) and Alameda County (Grantee) is made pursuant to the authority of title XU of Division A of the American Recovery and Reinvestment Act 0[2009 (public Law 111-5 (February 17, 2009) (Recovery Act) and sections 2301 - 2304 of the Housing and Economic Recovery Act of2008 (Public Law 110-289 (July 30,2008» (HERA). The program established pursuant to section 2301-2304 ofHBRA is known as the ''Neighborhood Stabilization Program" or "NSP." The term ''NSPl'' refers to the second appropriation ofNSP funds provided under the Recovery Act. The Notice ofFund Availability tor the Neighborhood Stabilization Program 2 under the American Recovery and Reinvestment, 2009 (Docket No. FR-5321-N-01, May 4, 2009) (NOPA); the three Notices of Fund Availability for Fiscal Year-2009 Neighborhood Stabilization Program 2 under the American Recovery and Reinvestment Act 0[2009, Correction (Docket No. FR-5321-C-02, June 11,2009; Docket No. FR-5321-C·03, November 9,2009; and Docket No. FR-5321-C-04); the Recovery Act; J-iERA; the Grantee's application for NSP2 assistance (Grantee Application); the HUD regulations at 24 CFR Part 570 (as modified by the NOPA as now in effect and as maybe amended from time to time) (Regulations); and this Funding Approval, including any special conditions, constitute part of the Grant Agreement. In the event ofa conflict between a provision of the Grantee's Application and any provision of this Grant Agreement, the latter shall controL