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Home My WebLink AboutPO 6621: CONVEYANCE OF TEN (10) NEIGHBORHOOD STABILIZATION PROGRAM (NSP) PROPERTIES TO LEGACY COMMUNITY DEVELOPMENT CORPORATION , „ C'i hof _- / \\,,- tifiort rthus Texas INTEROFFICE MEMORANDUM Department of Development Services Division of Housing and Neighborhood Revitalization Date: June 8, 2017 To: Brian McDougal, City Manager Mayor and City Council From: Beverly A. Freeman, Director of Housing &Neighborhood Revitalization RE: P.O. 6621- Conveyance of Ten(10) Neighborhood Stabilization Program (NSP) Properties to Legacy Community Development Corporation Nature of the request: It is recommended the City Council adopt P. O. 6621 for the conveyance of ten(10) Neighborhood Stabilization Program(NSP)properties to Legacy Community Development Corporation(Legacy CDC),a qualified developer for the redevelopment of ten(10)NSP properties in targeted areas by constructing new affordable housing for qualified homebuyers. StaffAnalysis/Considerations: Request for Proposals were advertised on April 2, 2017 and April 9, 2017. Only one proposal was received on April 19,2019 from Legacy CDC. Although only one proposal was received, Legacy CDC, is being recommended for the conveyance of ten (10) NSP properties since they meet all the requirements for qualifying according to the NSP Program Guidelines. The ten (10) NSP properties shall be used as a part of the neighborhood revitalization collaboration between the City of Port Arthur, Port Arthur Economic Development Corporation, and Legacy CDC. The proposed project states that Legacy CDC will construct ten (10) new homes per year for the next three (3) years in the downtown targeted area. The Port Arthur Economic Development Corporation will provide up to $30,000 per location to assist with construction subsidy for qualified buyers that meet the income requirements. The eligible homebuyer may also qualify to receive up to $30,000 from the Federal HOME Program to assist with down payment and closing costs associated with the purchase of homes,on an as needed basis. The ten(10)NSP properties are as follows: 1. 1238 5`h Street Lot 2 Block 124, City 2. 1037 6th Street Lot 11 Block 95, City !_tri of ort rthu—� erar INTEROFFICE MEMORANDUM Department of Development Services Division of Housing and Neighborhood Revitalization 3. 1216 6th Street Lot 5 Block 117, City 4. 1237 6th Street Lot 11 Block 93,City 5. 1319 6th Street Lot 9 Block 92, City 6. 618 Savannah Avenue Lot 7 Block 93, City 7. 1011-1015 Ransom Howard Street Lot 8,Block 84, City 8. 1021 Ransom Howard Street Lot 9,Block 84, City 9. 1035 Ransom Howard Street Lot 11,Block 84,City 10. 1047— 1049 Ransom Howard Street Lot 12,Block 84,City Recommendation: It is recommended the City Council adopt P. 0. 6621 for the conveyance of ten(10)NSP properties to Legacy CDC,a qualified developer for the redevelopment of ten(10)NSP properties in targeted areas by constructing new affordable housing for qualified homebuyers. Budget Consideration: N/A P. O. No. 6621 6/8/17 BF/DF ORDINANCE NO. AN ORDINANCE AUTHORIZING SPECIAL WARRANTY DEED FOR CONVEYANCE OF TEN (10) PROPERTIES THE CITY ACQUIRED THROUGH THE NEIGHBORHOOD STABILIZATION PROGRAM (NSP) , TO LEGACY COMMUNITY DEVELOPMENT CORPORATION, A QUALIFIED DEVELOPER, OF PORT ARTHUR, TEXAS. WHEREAS, the Neighborhood Stabilization Program (NSP) , established pursuant to Title III of the Housing and Economic Recovery Act of 2008, provides federal funds to state, county, and local government units to acquire and redevelop foreclosed and abandoned properties with the goal of stabilizing neighborhoods impacted by the collapse of the mortgage market; and WHEREAS, the City advertised for proposals on April 2 , 2017 and April 9, 2017; and WHEREAS, one proposal was received on April 19, 2017 from Legacy Community Development Corporation; and WHEREAS, although Legacy Community Development Corporation is the only proposal received, the City is recommending the conveyance of ten (10) NSP properties since they meet all the requirements for qualifying according to the NSP Program Guidelines; and WHEREAS, the City Council wishes to convey the City owned vacant lots located in targeted areas throughout the city as delineated in Exhibits "A" , "B" , "C" , "D" , "E" , "F" , "G" , "H" , "I" and "J" to Legacy Community Development Corporation; and P 0 6621 WHEREAS, deeds for the ten (10) properties shall not be filed and new construction activities shall not begin until the Environmental Review Procedures are completed according to 24 Code of Federal Regulations Part 58; and WHEREAS, the conveyed vacant lots will be used as a part of the neighborhood revitalization collaboration between the City of Port Arthur, Port Arthur Economic Development Corporation, and Legacy Community Development Corporation for new construction of affordable housing; and WHEREAS, the Port Arthur Economic Development Corporation will provide up to $30, 000 per location to assist with construction subsidy for the qualified buyers . The eligible homebuyer may also qualify to receive up to $30, 000 from the Federal HOME Program to assist with the down payment and closing costs associated with the purchase of homes on an as needed basis ; and WHEREAS, affordable homes will be built, marketed, and sold to eligible homebuyers whose income range is between 60% up to 120% of the Area Median Income (AMI) . All homes will be sold at appraised value; and WHEREAS, the conveyance of these lots will promote the public purposes of maintaining high quality safe housing that will promote the revitalization of the downtown area. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: P 0 6621 SECTION 1. That, the facts and opinions in the preamble are true and correct . SECTION 2 . That, the City Council herein authorizes the City Manager to convey the real property as delineated in attached Exhibits "A" , "B„ , "C„ , "D„ , "E" , "F" , "G" , "H" , "I" and „J„ SECTION 3 . That, deeds for the ten (10) properties shall not be filed and new construction activities shall not begin until the Environmental Review Procedures are completed according to 24 Code of Federal Regulations Part 58 . SECTION 4 . That, this conveyance is hereby authorized and shall be subject to the following conditions : 1 . The sale price for the lots shall be Ten and no/100 ($10 . 00) Dollars . 2 . Legacy Community Development Corporation shall construct new affordable housing on conveyed vacant lots as agreed. 3 . Should the home or homes not be constructed by June 30 , 2018, the property shall revert back to the City. SECTION 5 . That, Vivian Ballou, Project Manager/Director of Legacy Community Development Corporation, agrees by signing the Ordinance accepts the City owned properties located in targeted areas throughout the City as delineated in the attached Exhibits A" , "B" , "C" , "D" , "E" , "F" , "G" , "H" , "I" and "J„ SECTION 6 . That, if for any reason, Legacy Community Development Corporation does not construct the homes under the Port Arthur EDC Affordable Housing Program on these lots so transferred, the City shall P 0 6621 have a right to void the transfer and recapture any improvements on the lots . SECTION 7 . That, a copy of the caption of the Ordinances be spread upon the Minutes of the City Council . READ, ADOPTED AND APPROVED on this day of , A.D. , 2017, at the Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote : AYES : Mayor: City Council : NOES : DERRICK FREEMAN, MAYOR P06621 ATTEST: SHERRI BELLARD, CITY SECRETARY APPROVED FOR FORM: J VAL TIZENO,7ITY ATTORNEY APPROVED FOR ADMINISTRATION: BRIAN MCDOUGAL, CITY MANAGER Ou -i d L< (rf) C FTON WILLIAMS, PURCHASIN MANAGER AGREED TO: LEGACY COMMUNITY DEVELOPMENT CORPORATION VIVIAN BALLOU, EXECUTIVE DIRECTOR P06621 EXHIBIT "A" , "B " , " C" , "D" , " E " , " F " , " G" , "H" , " I " AND " J" ARE PENDING , SUBJECT TO COMPLETION OF ENVIRONMENTAL REVIEWS ACCORDING TO 24 CODE OF FEDERAL REGULATIONS PART 58