R2010-86 AUTHORIZING NEIGHBORHOOD HOUSING DEVELOPMENT CORPORATION SUPPLEMENTAL AGREEMENT

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` �, DEVELOPMENT SERVICES MEMORANDUM Memo No. 10-31 April 12,2010 TO: Honorable Mayor Michael T. McElroy nd City Council Members FROM: R an P. McCrad Ci Mana er `"'- Y Y� �3' g , Greg Crowe,Assistant City Manage ��. Richelle D. Irons, Director of Neigh orhood Services�`�'"+'��,� Vickie Buckingham,Neighborhood Programs Manager•-Y; L,Y SUBJECT: NHDC supplemental agreement RECOMMENDATION: Staff recommends approval of the attached resolution regarding the agreement for the Neighborhood Housing Development Corporation (NHDC). The resolution allows for the change in use of the properties and an extension of time for two-vacant single-family homes targeted for low-moderate- income households. BACKGROUND: In 2007, Neighbarhood Housing Development Corporation (NHDC) received CHDO funding Staff approved funding for the Affordable Green Housing Project, 1315 E. Clay, by NHDC and 1844 E. Decatur through the FY2006 HOME for Affardable Housing Development. Funds from both allocations were used far renovation and soft costs associated with the rehabilitation of vacant single-family structures. The homes were to be sold to low to moderate-income households. NHDC was approved far financing through local private resources to the complete projects. Unfortunately, the economy has created financial challenges for many potential homebuyers as well as NHDC. In an effort to provide affordable and safe housing, NHDC has requested to change the use of properties which provides a "Lease to Purchase"opportunity for the targeted households. POTENTIAL OBJECTIONS: None known. INPUT FROM OTHER SOURCES: Neighborhood Outreach Staff,HOME regulations and guidelines. STAFF REFERENCE: If City Council members have questions, they may contact Richelle Irons at 450-2320 or e-mail at rdirons@decaturnet.org. BUDGET/TIME IlVIPLICATIONS: No additional funding will be provided to NHDC for the projects.