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HomeMy WebLinkAboutPR 17384: NSP LAND BANK EXHIBIT "A" TO P.R. NO. 17384 PORT ARTHUR NSP LAND BANK PLAN REVISIONS October 24, 2011 UPDATE WITH NOTES ON PROGRESS 1. LAND BANK RE -USE PLAN. Recommended modifications to City of Port Arthur's Urban Land Bank Plan will create the basis for fully implementing the NSP program in future years to come. These are items that should be approved by the City Attorney, drafted as an amendment to the plan and recommended for adoption by the City Commission by Resolution. The revisions would also need to be approved by TDHCA -NSP. a. Side lot transfers will be considered an appropriate end use of applicable parcels. The City will provide these parcels to qualified adjacent homeowners at cost. Many lots are only 25' wide and are not buildable but where eligible homeowners are adjacent this would be a beneficial disposition. APPROVED BY TDHCA. FOR SIDE LOT DISPOSTION POLICIES SEE PORT ARTHUR NSP LAND BANK RE -USE PLAN (BY TDA) b. For those parcels that will not be NSP funded, commercial or private uses will be allowed. Guidelines should be developed. This is for parcels that are not eligible for NSP funding but were acquired as part of the bulk purchase at the auctions. The City also has other properties to add to this inventory that are not NSP related. SEE PORT ARTHUR NSP LAND BANK RE -USE PLAN (BY TDA) c. NSP land bank lots can be used in conjunction with the Hurricane Ike re- housing program operated by the Regional Planning council. The lots will be built with new permanent housing for eligible homeowners on NSP lots. We are asking TDHCA to forgive or defer the repayment of the land acquisition costs for Ike homes. APPROVED BY TDHCA d. NSP land bank lots will be available for CHDO's and other private developers who will build for eligible households and meet all NSP and federal regulations. Selection guidelines should be included in the revised land bank plan. It should be noted that currently the most effective developer for the NSP homes is the PAHA. SEE PORT ARTHUR NSP LAND BANK RE -USE PLAN (BY TDA) e. Rental housing is allowed on NSP lots and most likely the PAHA will be taking title and building rental housing for eligible households. This should be a permitted use in the Land Bank Plan. SEE PORT ARTHUR NSP LAND BANK RE -USE PLAN (BY TDA) 1 f. The current Land Bank plan relies on Texas Local Government Code guidelines (Sec. 379E) one of which is a priority system for disposition. CHDO's are first priority and are given a right of first refusal to land bank lots. Other developers follow in the priority chain. While not a CHDO, the Port Arthur Housing Authority has excellent capacity and is willing to work with the City to develop on land bank lots for both rental and ownership housing. They are currently operating a 100 unit lease purchase subdivision. They are developing 8 ownership homes in the NSP program but feel that the market is simply not there to do more homeownership. It is recommended that the section of the Land Bank Plan with the tiered priorities be revisited and revised to allow any qualified developer, whether CHDO, PHA, or private sector to submit a proposal for land bank lots. SEE PORT ARTHUR NSP LAND BANK RE -USE PLAN (BY TDA) g. The economic development master planning process that is taking place in Port Arthur will be coordinated with the land bank program to provide land for future housing. If the lots are NSP purchased, the end users must be eligible beneficiaries. Single and multifamily uses will be permissible and parcels may be re- platted or reconfigured according to the redevelopment master plan. SEE PORT ARTHUR NSP LAND BANK RE -USE PLAN (BY TDA) h. It is critical that a land bank budget for maintenance and disposition be developed and that this budget be incorporated into the Contract Amendment. DONE- SEE LAND BANK MAINTENANCE AND DISPOSTION BUDGET 2 CITY OF PORT ARTHUR NSP LAND BANK RE -USE PLAN Policies and Guidelines February 5, 2013 These guidelines throughout are intended to be used for land bank parcels that are part of the Neighborhood Stabilization Program (NSP). However, the Land Bank may also maintain non -NSP parcels. Cost data shall be tracked for all parcels but NSP funds will be allocated, tracked and reported per program requirements. Table of Contents Introduction and Intent 3 Land Bank Action Plan 3 Goals of the City of Port Arthur Land Bank 4 Land Bank Activities 5 Land Bank General Principles 5 Priorities for Acquisition and Disposition 6 Ten Year Limitation on NSP Land Bank Properties 7 Policies for Acquisition of Land Bank Properties 8 Policies for Disposition of Land Bank Properties 8 Application /Document Requirements for Nonprofits and For - Profit Developers . 11 Development Agreements 12 Policies and Procedures for Transfer of Land Bank Properties to Individual Homebuyers 12 Approvals of Land Transfers 13 Side Lot Disposition Program 13 Appendix 1 NSP Land Bank Background Information 16 2 Introduction and Intent These guidelines outline the goals and policies of the City of Port Arthur Land Bank. The guidelines are also designed to carry out the goals of the Neighborhood Stabilization Program (NSP) with the purpose of removing blight, providing affordable housing, and promoting redevelopment and revitalization. Under the Housing and Economic Recovery Act of 2008 (Division B, Title III), the authorizing legislation for NSP land banks are an eligible use of funding with certain limitations. Under this legislation, a Land Bank is defined as: Land bank: A land bank is a governmental or nongovernmental nonprofit entity established, at least in part, to assemble, temporarily manage, and dispose of vacant land for the purpose of stabilizing neighborhoods and encouraging re -use or redevelopment of urban property. For the purposes of NSP, a land bank will operate in a specific, defined geographic area. It will purchase properties that have been foreclosed upon and maintain, assemble, facilitate redevelopment of, market, and dispose of the land - banked properties. If the land bank is a governmental entity, it may also maintain foreclosed property that it does not own, provided it charges the owner of the property the full cost of the service or places a lien on the property for the full cost of the service. Primarily, land bank properties that will receive NSP funds must have been a foreclosed or abandoned property and the property must be put into an approved end use within 10 years. All NSP properties must be located within designated target areas. Approved uses include housing that serves low- and moderate - income households (defined by HUD as income below 120% of area median income), green space or side lot disposition. Land bank properties can be used for certain community facilities that meet federal guidelines. Any property intended for land banking that has a structure that is demolished must be determined to be blighted. The Port Arthur NSP Substantial Amendment uses the term "Affordable Housing Land Inventory List" and shall be referenced in these guidelines as Land Bank. Land Bank Action Plan Recommended actions to activate the Land Bank include the following: 1. Conduct a department -wide review of the Land Bank Plan and assign overall responsibilities for implementing the plan. Revise policies and procedures and adopt as final version. Obtain Council approval. 3 2. Prepare an inventory of all City owned land designated for the Land Bank. Develop this inventory to include all associated costs per property. Compile these properties into a spreadsheet form that includes the parcel identification, legal description, address, ownership, site dimensions, known tax or code liens, type of deed (tax or otherwise) current zoning and land use and a comment on suitability. Categorize or prioritize parcels for quiet title action. 3. The spreadsheet should include a running total of all costs incurred from date of acquisition for the land bank including acquisition costs, legal fees, maintenance, boarding, cleaning, demolition and engineering fees. 4. Include and segregate in the inventory any properties acquired as part of the implementation of the Neighborhood Stabilization Program. 5. Review all outstanding building code violations and environmental health codes pertaining to land banked properties. 6. Provide funding for legal services to conduct legal proceedings necessary to clear title. 7. (optional) Hold annual dispositions by grouping of parcels identified as suitable. 8. Solicit proposals from qualified non - profit housing partners. 9. Convey parcels to projects that can be occupied within 24 months with appropriate long term affordability covenants. All NSP properties must be disposed of in compliance with federal regulations. Goals of the City of Port Arthur Land Bank The overall goals of the Land Bank are to increase the supply of affordable and workforce housing units, remove blight, and promote redevelopment. Specifically, these goals are as follows: 1. Implement the Port Arthur Neighborhood Stabilization Program (eligible use C: Land banks) 2. Return properties to the tax rolls and productive use. 3. Create a permanent inventory of affordable housing while stabilizing property values. 4. Reduce development costs of affordable housing. 5. Create mixed income neighborhoods. 4 6. Improve the quality of life in redevelopment areas through the removal of blight. 7. Improve the economic health of the community by ensuring that essential workers can reside near their places of employment. 8. The Land Bank is seen as a long term planning tool and not a short term fiscal plan. Land Bank Activities The Land Bank is both an inventory and a program. It is important that staff and financial resources be adequately supplied to support the program. Costs include not only acquisition, but also legal expenses, maintenance, demolition, and disposition expenses. The specific activities that may be undertaken include the following: 1. Acquisition of abandoned or foreclosed properties as defined by the Neighborhood Stabilization Program 2. Disposition of Land Bank parcels to eligible beneficiaries including qualified nonprofit housing development organizations or income eligible individual homebuyers. 3. Acquisition of tax foreclosed properties. The Land Bank may purchase tax certificates that were not purchased during the 90 -day window following the annual tax certificate auction. 4. Identify and dispose of City owned lands from right of way cuts, park acquisitions, non - environmentally sensitive portions of environmental lands acquisitions, etc. 5. Review and consider offerings of privately owned land that may be suitable for affordable housing. 6. Identify parcels that may complement affordable housing projects such as open spaces or side lots. 7. Transfer to Land Bank properties to third party entities for redevelopment and or improvement with affordable housing or other NSP purposes. 8. Disposition activities may include re- platting, lot combinations, variances or other procedures to make the parcels buildable for affordable housing. Land Bank General Principles 1. The efficient disposition of Land Bank properties to qualified transferees. 2. A clear and transparent system of acquisition and disposition of properties. 3. Citizens may comment directly to the Land Bank Property Disposition Advisory Committee. 5 4. Conformance with adopted plans and regulations including zoning and community redevelopment plans. 5. Establishment of nominal sales prices based on project costs of acquisition, legal costs, demolition and maintenance. 6. Properties will be transferred with clearly defined conditions of affordability and length of affordability. 7. Land consolidation for assemblage purposes to create larger parcels for affordable housing. 8. The provision of side lots to adjacent property owners who meet Land Bank Side Lot Disposition criteria. Priorities for Acquisition and Disposition 1. Land Bank parcels will be conveyed to the City's non - profit affordable housing partners. 2. Land Bank parcels will be conveyed for projects that will serve very low, low or moderate income housing that ensure long term affordability. 3. Parcels in community redevelopment areas will be prioritized for affordable housing if appropriate and for the stabilization and revitalization of target areas. 6 Ten Year Limitation on NSP Land Bank Properties Before a land bank invests NSP funds into any property, it is essential that it think strategically about its ability to re -use the property in a manner that conforms to end- use requirements for the program. If land banking activities extend beyond the NSP grant period, the Land Bank will need to plan for a maintenance strategy without benefit of federal assistance for the duration of the land banking period. Of Critical Importance With respect to the 10 -year provision for land banking, the HUD regulations state the following: "An NSP- assisted property may not be held in a land bank for more than 10 years without obligating the property for a specific, eligible redevelopment of that property in accordance with NSP requirements." Thus, properties that have been acquired, maintained or assisted under Eligible Use C of the Neighborhood Stabilization Program must meet the `end -use' requirements for that property within this 10 -year period. End -Use Requirements Land Banks are able to acquire, maintain and dispose of properties under NSP Eligible Use C, and can redevelop them using NSP funding under Eligible Use E. While demolition (Eligible Use D) of the property may take place within this period, demolition does not qualify as an end use of the subject property. Eligible Use E ultimately requires the redevelopment of demolished or vacant properties. Redevelopment of these properties can be based on the following end -use activities: Residential Housing — Development may include: new construction; owner - occupied rehabilitation; rental development and rehabilitation. This housing must be made available to NSP eligible households (at or below 120% of area median income). All NSP funds used to acquire, maintain, demolish, redevelop and dispose of land banked properties contribute towards the total development subsidy, and are thereby subject to HUD's approved federal subsidy limits per unit in the individual jurisdictions. Side -lot Disposition — Vacant or demolished lots shall be conveyed for residential purposes only to adjacent homeowners that are NSP income eligible. See Side Lot Disposition Policies and Procedures. 7 Policies for Acquisition of Land Bank Properties 1. The Land Bank will consider the suitability of each parcel for long term affordable housing including the following forms of due diligence: a. Environmental conditions b. Available infrastructure c. Access by public roads d. Zoning and Land use classifications e. Proximity to transportation, services and employment centers f. Size and dimensions characteristics with consideration for assemblage and consolidation with other parcels 2. Title conditions. The City will bear the burden of clearing title to Land Bank properties. This includes clear title action, demolition, maintenance and clearing of code violations. 3. No occupied properties will be accepted into the Land Bank. 4. Commercial properties are suitable for consideration for either mixed use or for sale to provide operating expenses for the Land Bank. 5. Vacant or improved parcels are acceptable but any included in the NSP program must have at one time been residentially zoned or used for residential purposes. 6. No lands will be acquired that have any outstanding mortgages or security instruments. The Land Bank will investigate the waiving or removing of government liens including municipal liens, state tax liens or federal tax liens. 7. Parcels with utility assessments are acceptable and the City will bear the burden of the assessment and pass this cost on to the eventual buyer. NSP funds shall not be used for the payment of delinquent taxes or assessments. Policies for Disposition of Land Bank Properties 1. Priority will be given to established non - profit affordable housing partners of the City. Specific consideration will be given to the following: a. Homeownership or rental projects that increase the supply of affordable housing in City of Port Arthur for very low, low or moderate income residents. b. Community Redevelopment Area projects that further the goals of the neighborhood revitalization. c. Prospect of returning the property to the tax rolls. d. Properties that will be used for green or open space. e. Properties that will be part of the Side Lot Disposition Program. 8 2. Transferee may be one of the following: a. A Community Housing Development Organization (CHDO; b. A Qualified Participating Developer; c. Single Tots may be transferred to individuals for use as a primary residence subject to income eligibility requirements. 3. Long Term Affordability is to be guaranteed by a covenant with reversion clause in the deed certifying that the homebuyer not only meets income eligibility requirements but that a recapture provision is instituted in a second mortgage lien consistent with NSP requirements. Where recapture is the long term affordability mechanism a mortgage lien will be enforced requiring principal residency. 4. Ability to proceed. The project must be certified for occupancy within 24 months of conveyance as guaranteed by a reversion clause in the deed. The City reserves the right to extend this period. 5. Parcels of property shall be transferred for consideration in an amount not less than the actual costs incurred in acquisition, demolition, maintenance and administrative fees of the lot/building. In the event that grant funds (i.e. NSP, environmental remediation, philanthropy, etc.) are used to support any of the aforementioned activities, a lesser consideration can be determined by the Land Bank (as long as it meets the grant provisions). 6. Payment of Costs. While the intent of the Land Bank program is to reduce overall project development costs, the City will bear the burden of administration expenses and the transferee will be responsible for the following expenses. a. Acquisition costs- not including payment of delinquent taxes for NSP properties b. Title clearance expenses- except for NSP properties c. Demolition expenses- except for NSP properties d. Maintenance expenses- except for NSP properties e. Payment of infrastructure assessments- except for NSP properties 7. All development projects require a `development agreement,' and must be started and completed within the negotiated time - frame. Where rehabilitation of a property by the transferee is a condition of the transfer, the requirement for such rehabilitation shall be in accordance with rehabilitation standards as established by the local unit of government and adequate completion of such rehabilitation shall be a condition to the release of restrictions or lien securing such performance. 8. A precise narrative description of future use of the property is required. The future use must be consistent with the comprehensive plan and 9 associated plans, including redevelopment plans. Zoning for proposed uses must be in place prior to the transfer. 9. Parcels may be sold as surplus land at fair market value on the open market under the City's surplus land policies. Proceeds should be applied to the Land Bank program. NSP properties must result in an end use that meets a national objective per NSP requirements. 10. No property will be conveyed to a transferee who has non - remediated code violations, code liens or back taxes due for any other parcel owned. (exceptions will be made on a case by case basis for hurricane victims) 11. A precise narrative description of the future use of the property is required. The future use must be in -line with local development plans. The development agreement shall apply to stated use. 12. The proposed use must be consistent with current zoning requirements or a waiver for non - conforming use is a condition precedent to the transfer. 13. Transactions shall be structured in a manner that permits the Land Bank to enforce Neighborhood Stabilization Program compliance requirements, recorded covenants or conditions upon title pertaining to development and use of the property for a specified period of time. Such restrictions may be enforced, in certain cases, through reliance on subordinate financing held by the Land Bank. 14. The transferee must agree to pay future property taxes from the time of transfer. 15. The subject property must not have been used by the transferee or a family member of the transferee as his or her personal residence at any time preceding the submission of application (except in rental cases). 16. Where part or all of the consideration for the transfer is the prospective affordability of the housing units, affordability requirements may be set forth in the transfer agreement and enforceable through recorded covenants, conditions or limitations upon title. 17. An NSP- assisted property may not be held in a land bank for more than 10 years without obligating the property for a specific, eligible redevelopment of that property in accordance with NSP requirements. 18. Transferees must be in good standing with the City of Port Arthur Affordable Housing program and the Texas Department of Housing and Community Affairs. The following should be submitted when requesting parcels. These documents will be held on file and unless timely, may be omitted from future submittals. a. Project narrative b. Qualification documents - articles of incorporation, tax exempt status certification, bylaws c. Most recent audit of the organization d. List of projects completed or underway in City of Port Arthur 10 e. List of Development Team members including contact information - to include contractor or construction manager, architect, engineer, legal advisors and accountants f. Project budget including sources and uses of funds g. Timeline for project completion h. Other documents that may be requested 19. Options for purchase of Land Bank parcels may be purchased at 10% of estimated purchase cost for a 12 month period. Options may not be transferred and all funds will be forfeited if closing does not take place within the 12 month period. This is to allow for entities to show site control in funding applications. For successfully funded projects, an extension may be granted at the City's discretion. 20. Individuals and entities that were the prior owners of property at the time of the tax foreclosure shall be ineligible to be the transferee of such property from the Land Bank. Application /Document Requirements for Nonprofit and For - Profit Developers The prospective developer must submit the following documents to the Land Bank: 1. List of property address(es) 2. Description of end use 3. Rehabilitation / Improvement Specifications 4. Time Line for Rehabilitation / Improvement Completion (if applicable) 5. Project Financing (Pre - Qualification Letter for Lenders) 6. Development and operating budget (if applicable) 7. Development Team Description, including complete information on the following parties: a. Developer b. Co- developer /Partner c. Owner d. General Contractor e. Consultants f. Architect g. Project Manager (during construction) h. Lead Construction Lender i. Marketing Agent j. Project Management (post- construction) k. All Rental Transactions Must Attach an Operating Budget I. Most Recent Audited Financial Statement 11 Development Agreements In an effort to ensure that development occurs on property transferred by the Land Bank that is consistent with the agreed upon development, and on a reasonable schedule, the Land Bank will require that each property transfer is subject to a development agreement. Each development agreement will consist of the following components: 1. Project Description 2. Development Schedule 3. Financing Structure 4. Enforcement Mechanism 5. Neighborhood Stabilization Program Requirements and Compliance Each development agreement will be drafted by the Housing Services Department and legal counsel and signed by both the City and the transferee at the time of transfer. Policies and Procedures for Transfer of Land Bank Properties to Individual Homebuyers The following policies shall apply to properties to be transferred to individual transferees as part of a homeownership program. 1. The owner - occupant must complete renovations of existing structures and move into the structure within a time frame negotiated by the Land Bank. 2. The property may not be used as rental property. 3. For properties transferred for cash or mortgage consideration below full Project Costs, the owner - occupant must reside in the property as his or her primary residence. The periods of affordability must be established based on the amount of NSP or HOME development or direct subsidy involved in the property that is conveyed. If the property is sold prior to the program affordability compliance period (Resale), the transferee must sell the property at an affordable price to buyers with income not exceeding 120% of the Area Median Income for the period of continued affordability, while at the same time ensuring that owner /seller receives a fair return on their investment. If the home- owner has benefitted by Direct Subsidy for the purchase of the property and wishes to sell the property to whomever they wish for market value during the period of continued affordability, then a portion or all of the NSP assistance must be repaid (Recapture) which may not exceed the net proceeds of the sale. If, at any time, the property ceases to be the homeowners' primary residence, then the full amount of the assistance must be recaptured. 12 4. The mechanisms for enforcing resale and recapture provisions must be recorded against the property. To survive a mortgage satisfaction that could occur if the homebuyer sells the property or even refinances it, the resale restriction may be contained in a declaration of covenants or deed restriction that is also recorded against the property. Approvals of Land Transfers Transfers Requiring Staff Approval The Director of the Housing Services Department may approve all transfers to qualified entities if the transferee seeks to acquire three or less properties within a twelve month period. In addition, the Director may approve all transfers in the Side Lot Disposition Program and single parcel land transfers (single family) for residential uses. Transfers Requiring City Council Approval City Council approval is required for all transfers that require any exceptions to the priorities, policies and procedures of the Land Bank Program Policies and Procedures. City Council approval is required for all transfers in which the property in the hands of the transferee will be exempt from property taxes. City Council approval is required for all transfers that involve more than one interested party. City Council approval is required for all transfers for non- residential projects. City Council approval is required for all transfers to governmental entities. City Council approval is required for all transfers if the transferee seeks to acquire more than three (3) properties within a twelve month period. Side Lot Disposition Program Individual parcels of property may be acquired by the Land Bank and transferred to individuals in accordance with the following policies. The transfer of any given parcel of property in the Side Lot Disposition Program is subject to override by higher priorities as established by the Land Bank. Side Lot Disposition Policies Parcels of property eligible for inclusion in the Side Lot Disposition Program shall meet the following minimum criteria: • The property shall be vacant unimproved real property. • The property shall be physically contiguous to adjacent occupied (owner) residential property with not less than a 75% common boundary line on one side (left or right). 13 • Initial priority shall be given to the disposition of properties of insufficient size to permit independent development. • No more than one lot may be transferred per contiguous lot. • Intended use for lot is disclosed. • The transfer shall include a deed restriction requiring the use of the property to be consistent with the stated use and Neighborhood Stabilization Program requirements. Transferees • All transferees must hold title on the contiguous property. Priority is given to Transferees who personally occupy the contiguous property. • The transferee must not own any real property (including both the contiguous lot and all other property within the county) that is subject to any un- remediated citation of violation of the state and local codes and ordinances. • The transferee must not own any real property (including both the contiguous lot and all other property in the county) that is tax delinquent. • The transferee must not have been the prior owner of any real property that was transferred to the Tax Collector or to a local government as a result of tax foreclosure proceedings. Pricing Parcels of property may be transferred for nominal consideration, or consideration as allowed /determined by the funding source for acquisition and Project Costs. Title insurance is not included as part of the Project Costs. Additional Requirements • In the event that multiple adjacent property owners desire to acquire the same side -lot, the lot shall -be transferred to the property owner who has the largest percentage of common boundary line with the subject side lot. • In the event that multiple adjacent property owners (with the same percentage of common boundary line) desire to acquire the same side lot, the lot shall either be transferred to the highest bidder for the property, or divided and transferred among the interested contiguous property owners. • In the event that a contiguous property needs land for a driveway or other local code compliance issue this subsection will rule. Side Lot Disposition Procedures The prospective buyer must submit the following documents to the Land Bank: • List of property address(es) 14 • Project Description - property use must be consistent with current zoning requirements • Picture Identification • Evidence of compliance with all Side Lot Disposition Policies Within a reasonable period of receiving a complete request packet, a basic analysis is completed and presented to the Director for approval. Once the project has been approved, the closing documents for property transfer to complete the transaction with the buyer will be compiled. 15 +Appendix 1 NSP Land Bank Background Information NSP Definition of Land Bank A land bank is a governmental or nongovernmental nonprofit entity established, at least in part, to assemble, temporarily manage, and dispose of vacant land for the purpose of stabilizing neighborhoods and encouraging re -use or redevelopment of urban property. For the purposes of the NSP, a land bank will operate in a specific, defined geographic area. It will purchase properties that have been abandoned or foreclosed upon and maintain, assemble, facilitate redevelopment of, market, and dispose of the land- banked properties. If the land bank is a governmental entity, it may also maintain abandoned or foreclosed property that it does not own, provided it charges the owner of the property the full cost of the service or places a lien on the property for the full cost of the service. Eligible Uses (Housing and Economic Recovery Act) • Establish financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties, including such mechanisms as soft - seconds, loan loss reserves, and shared - equity loans for low- and moderate- income homebuyers • Purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and properties • Establish land banks for homes that have been foreclosed upon • Demolish blighted structures • Redevelop demolished or vacant properties Eligible Activities (CDBG) NSP funds used for land banking must correlate with an eligible activity under 24 CFR 570.201(a) Acquisition & (b) Disposition: A. Acquisition in whole or in part by the recipient, or other public or private nonprofit entity, by purchase, long -term lease, donation, or otherwise, of real property (including air rights, water rights, rights -of -way, easements, and other interests therein) for any public purpose, subject to the limitations of Sec. 570.207. B. Disposition, through sale, lease, donation, or otherwise, of any real property acquired with CDBG funds or its retention for public purposes, including reasonable costs of temporarily managing such property or property acquired under urban renewal, provided that the proceeds 16 from any such disposition shall be program income subject to the requirements set forth in Sec. 570.504. (Temporarily managing includes maintenance, assembly, facilitating the redevelopment of, and marketing of land banked properties. NSP funds may be used for basic, reasonable maintenance intended to stabilize the property.) 17