The Annual Action Plan Substantial Amendment - City of Pontiac

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50% of AMI. The City is proposing to provide both new rental and homeowner opportunities for these income targeted households. Selected developers will purchase vacant, tax or bank foreclosed homes to renovate. The City will create, at a minimum, three (3) units of renovated affordable housing units targeted at persons at 50% or below of median income. The City will also work with supportive housing agencies to identify potential special needs households who need handicapped accessible housing when purchasing and rehabilitating the housing. ACQUISITION & RELOCATION Developers will be instructed not to purchase homes where there are squatters or renters. We therefore don’t anticipate having any relocation issues. However, as was the case with NSP1, the Development agreements will have the appropriate federal language relating to the rights of tenants and all URA considerations that must be complied with. PUBLIC COMMENT As part of the City’s Citizen’s Participation Plan, the Federal Programs Division consults with the members of the Coordinating Council on all matters which pertain to the Federal Programs including the Community Development Block Grant (CDBG) program and HOME Investment Partnership program. The Coordinating Council is a 28 member body consisting of four (4) citizens from each of the seven (7) Citizen District Councils which represent the seven (7) City Council Districts. Information on the NSP3 application is provided to the members of the Coordinating Council for their review. The City published a notice in the newspaper of local circulation – The Oakland Press – that the City was applying to HUD for NSP3 funding. The notice was published on Saturday, February 12 th and February 13 th notifying citizens of this funding opportunity and requested that they access the City’s website at www.pontiac.mi.us for information on the application, public hearing and where to submit their written comments. The NSP3 Substantial Amendment was published on the City’s website also during this time. Staff also held a public hearing on the proposed use of NSP 3 funds on February 24, 2011 at 6:00 PM in Council Chambers. The City scheduled a special meeting for the public hearing. Staff made a presentation to the City Council members, Mayor and citizens of the community on the proposed activities of the NSP3 program. This meeting is televised by the City’s local cable system so that it will be shown 3 times a day until after the submission of this document. During the public hearing, there were questions asked about the program. The first question was about how the program would be advertised in the Oakland Press. The citizen was concerned that any advertisements for the NSP3 program for either contractors or homebuyers would be in a large enough format for Pontiac residents to notice and respond to. Mr. Hinton let the citizen know that the City would do everything possible to keep the citizens informed about any contracting opportunities or homeownership opportunities. The Federal Programs Division staff always tries to get the biggest format ads that it can possibly get within the budget. Mr. Hinton explained that 8
the Federal Programs Division would continue to do our best to get the information out to the citizens in the community. There was also a question about what type of assistance would be provided to persons or families who would like to apply for these houses. Mr. Hinton stated that all potential homebuyers or renters would be provided with free counseling services by experienced nonprofit housing agencies. Also, that any developer who was working with the City would provide any assistance required by the potential homebuyer to complete their application to purchase a home. The last question asked at the public hearing involved the hiring of a Contract Compliance person to oversee the contracts signed under this program. Mr. Hinton stated that all contract compliance responsibilities would be handled by staff in house. Once the Federal Programs Division was fully staffed, there would be one person who would be responsible contract compliance. NSP 3 Program Design & Description To receive NSP3 funding, each CDBG grantee must submit an action plan / substantial amendment to HUD in accordance with the notice by March 1, 2011. The NSP3 funds are being treated as a “special allocation” of fiscal year 2010-2011 CDBG funding. Each grantee must expend 50% of the NSP3 funds within two (2) years and be 100% expended within three (3) years. Each grantee must publish the proposed amendment on the Internet for no less than 15 days of public comment. The final action plan / substantial amendment must be submitted to HUD by March 1, 2011. The earliest that funds would be available to the City to expend would be approximately June 2011. Due to the large number of foreclosures in the City and other influencing economic issues, the City of Pontiac is considering two activities under the Neighborhood Stabilization III program: Acquisition/Rehabilitation/Resale and Program Administration. The size of the Pontiac allocation of $1,410,621 will only fund the acquisition and renovation of approximately thirteen (13) homes and cover the costs to administer the Project by the Federal Programs Division. The program activities will fall inside the goals as defined by the City’s Consolidated Plan 2005-2009. The Five Year Strategy was developed from the information gathered from the public forums, 2000 Census information, data provided by HUD and information from service provider organizations. The City identified the following five goals: Increase and Improve Homeownership Opportunities: Including education for firsttime homebuyers, credit counseling, information for protection against predatory lenders, credit repair for first time homebuyers, construction of new affordable housing, new infill housing in older neighborhoods, downpayment assistance for first-time homebuyers, 9
Page 1 and 2: THE CITY OF PONTIAC NEIGHBORHOOD ST
Page 3 and 4: Target Area In focusing on the idea
Page 5 and 6: them into low end rental houses. Th
Page 7: had a huge impact on the City overa
Page 11 and 12: 1. Stabilize property values in the
Page 13 and 14: (2) Activity Type: NSP Activity (B)
Page 15 and 16: North Border: Elizabeth Lake Rd. fr
Page 17 and 18: Households with income equal to or
Page 19 and 20: 248-758-3780, Fax # 248-758-3775 E-
Page 21: (9) Projected Start Date: June 1, 2

The Annual Action Plan Substantial Amendment - City of Pontiac

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