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CITY OF PETALUMA, CALIFORNIA February 23, 2009
AGENDA BILI.
Agenda Title: Resolution Authorizing The City Of Petaluma, In 11leetine Date: February 23,2009
Cooperation With, The City Of Santa Rosa And The County Of Sonoma To
Form A Joint Partnership Agreement (JPA) For The Purpose Of
Participating In The Neighborhood Stabilization Program, Authorized By Meeting Time: ❑ 3:00 PM
Title III Of The National Housing And Economic Recovery Act (HERA) Of ❑X 7:00 PM
2008.
Category: ❑ Presentation [Z Consent Calendar ❑ Public Hearing ❑ Unfinished Business Vew Business
Department: CDD Director: Mil IContact Person: Phone Number:
Moore Bonne Gaebler �) 778-4484
Cost of Proposal: N/A (Limited staff dime) Name of Fund: Community
Development Block Grant
Amount Budgeted: N/A (Part of administrative duties)
Account Number: 2221
Recommendation: It is recommended that the City Council take the following action:
Adopt the Resolution Authorizing The City Of Petaluma, In Cooperation With The City Of Santa Rosa And The
County Of Sonoma To Form A Joint Partnership Agreement For The Purpose Of Participating In The
Neighborhood Stabilization Program, Authorized By Title III Of The National Housing And Economic Recovery
Act (HERA) Of 2008.
Summary Statement: Title III of the National Housing and Economic Recovery Act (HERA) of 2008 is entitled
the Emergency Assistance for the Redevelopment of Abandoned and Foreclosed Homes and authorizes the
Neighborhood Stabilization Program. Funding from HERA is being disseminated through the State of California,
utilizing a complicated three "tier structure." No unit of government in Sonoma County is eligible for "tier one"
funding. However, the Cities of Petaluma, Santa Rosa and the County of Sonoma are eligible for a guaranteed
amount of approximately $1,578,092 of "tier two' funding and can compete for a similar amount of "tier three"
funds. The proposed plan is to apply for the full amount (approximately $3,000,000). As required by HERA, the
four jurisdictions must form a single -purpose JPA to apply for and receive the funds, and authorize the Sonoma
County Community Development Commission (CDC) as the applicant and administrative agency. Although an
attempt will be made to spread the money proportionately throughout the jurisdictions, the most important factor
(due to the limited amount of money available) will be to get the "best bang for the buck" and expend the funding
in the short time allotted by the legislation. The funding will be utilized to finance local nonprofit agencies to
acquire and utilize foreclosed upon properties, consistent with the mission of those agencies.
Attachments to Agenda Packet Item:
1. Resolution
2. JPA Agreement
Reviewed by City Attorney: Appt;pved_Lv_City Manager:
r% �JOI Date: Date: 071.714
Rev. # (.1 ��i Date Last ev sedi 2-5-09 File: NSP Joinlpowers
CITY OF PETALUMA, CALIFORNIA
February 23,2009
AGENDA REPORT
FOR
Resolution Authorizing The City Of Petaluma, In Cooperation With The City Of Santa Rosa And The
County Of Sonoma To Form A Joint Partnership Agreement (JPA) For The Purpose Of Participating In
The Neighborhood Stabilization Program, Authorized By Title III Of The National Housing And
Economic Recovery Act (VERA) Of 2008.
1. RECOMMENDATION:
Adopt the above -stated resolution, approving a Joint Partnership Agreement which will enable the
Cities of Petaluma, Santa Rosa and the County of Sonoma (CDC) to utilize newly available funds
for the purpose of redeveloping abandoned and/or foreclosed homes.
2. BACKGROUND:
Following statutory requirements of HERA, the U.S. Department of Housing and Urban
Development (HUD) devised a methodology to allocate $3.9B of which $529,601,773 was allocated
to the State of California and local governments within California. The major portion of that
funding went to Central Valley and Los Angeles Basin jurisdictions with huge foreclosure rates.
However, of that total, $145,071,506 was allocated to the State of California's Department of
Housing and Community Development (HCD) for subsequent reallocation to cities, towns, and
counties outside of those hardest-hit areas.
HCD's allocation methodology utilizes a complicated three tier structure. Staff will provide that
formula if requested, but the bottom line is that our area is eligible for set-aside funding in the
amount of approximately $1,578,092, with the possibility of additional competitive funds.
3. DISCUSSION:
HCD recommends that jurisdictions who want to participate in the Neighborhood Stabilization
program form a Joint Partnership Agreement (JPA) to receive the available pass-through funding
from the State of California. The funding will then be utilized by nonprofit agencies for the
following eligible activities:
• Purchase and rehabilitate homes to sell, rent or redevelop
• Create land banks for homes that have been foreclosed upon
• Demolish blighted structures
• Redevelop demolished or vacant properties
• Establish financing mechanisms for purchase and redevelopment of foreclosed upon homes
and residential properties
Sonoma County CDC has agreed to be the required "lead entity" as that agency performs a similar
function with the Urban County CDBG Program. Much of the wording and requirements of the JPA
agreement mirror the language utilized by all the jurisdictions in the operation of our Block Grant
programs. Funding decisions will be made by staff representatives from the three cities and the
county
4. FINANCIAL IMPACTS:
The only cost to the City will be Housing Division staff time. This new program will have only a
positive impact for the City. As stated above, the entities will attempt to utilize the funding in a
proportional way, but the main effort will be to get the best outcomes for this limited amount of
funding.
EXHIBIT 1
Resolution Authorizing The City Of Petaluma, In Cooperation With, The City Of Santa Rosa And The
County Of Sonoma To Form A Joint Partnership Agreement (JPA) For The Purpose Of Participating In
The Neighborhood Stabilization Program, Authorized By Title III Of The National Housing And
Economic Recovery Act (HERA) Of 2008.
WHEREAS throughout California, abandoned and foreclosed homes have had an adverse impact on many
major metropolitan, suburban, and rural areas; and
WHEREAS the impacts of residential foreclosures can burden a community with a rise in blight, vandalism,
illegal occupancy, code enforcement violations, and declining values; and
WHEREAS the federal government has acknowledged the severity of the foreclosure problem and its negative
impacts on communities throughout the country and has attempted to mitigate those burdens with passage of the
national Housing and Economic Recovery Act (HERA) of 2008, resulting in the Neighborhood Stabilization
Program (NSP); and
WHEREAS one result of that legislation is newly available funding to local jurisdictions, allocated
proportionally to the calculated severity of the foreclosure problem in every jurisdiction; including the cities and
counties of California; and
WHEREAS the funding agency is the California State Department of Housing and Community Development
(HCD) and it is a requirement of HCD that the funding be allocated via a Joint Partnership Agreement among
the four Sonoma County jurisdiction included in the NSP funding; and
WHEREAS City of Petaluma wishes to participate in the programs and finding made possible by the new NSP
legislation;
THEREFORE BE IT RESOLVED that the City of Petaluma is Authorized, In Cooperation With The City Of
Santa Rosa And The Sonoma County Comnnmity Development Commission To Forni A Joint Partnership
Agreement (.IPA) For The Purpose Of Participating In The Neighborhood Stabilization Program, Authorized By
Title III Of The National Housing And Economic Recovery Act (HERA) Of 2008 And To Apply To The State
Of California Department Of Housing And Community Development For Approximately $3,000,000 In NSP
Funding.
Nspj ointpowersagendabill
EXHIBIT 2
JOINT PARTNERSHIP AGREEMENT FOR PARTICIPANTS OF THE NEIGHBORHOOD
STABILIZATION PROGRAM (NSP)
THIS AGREEMENT dated for convenience as of this day of
2009, by and between the CITY OF PETALUMA, ,a municipal corporation, hereinafter referred
to as "CITY," the COUNTY OF SONOMA and the CITY OF SANTA ROSA, hereinafter
referred to as " JOINT NSP PARTICIPANTS";
WITNESSETH:
WHEREAS, the CITY and JOINT NSP PARTICIPANTS desire to apply for funding
under Title III of the national Housing and Economic Recovery Act (HERA) of 2008, which
authorizes new Community Development Block Grant (CDBG) funding for distribution to States
and local jurisdictions "for the redevelopment of abandoned and foreclosed upon homes and
residential properties;" and
WHEREAS, the U.S. Department of Housing and Urban Development (HUD) has
devised a methodology to allocate federal finds to the State of California and local governments
within California utilizing a "tier structure," the CITY and JOINT NSP PARTICIPANTS are
eligible for a combined total of $1,578,092; and
WHEREAS, HUD recommends the expenditure of funds for such purposes on a
"pooled" basis; and
WHEREAS, the CITY and the JOINT NSP PARTICIPANTS do hereby find and
determine that it is in the best interest of their residents that the aforementioned redevelopment
activities be performed jointly in accordance with the provisions of this Agreement; and
WHEREAS, it is mutually beneficial to each of the parties hereto for the COUNTY to
administer and execute the provisions of this Agreement in accordance with the terns and
conditions hereinafter provided;
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NOW, THEREFORE, IT IS AGREED AS FOLLOWS:
Essential Activities
The Parties agree to cooperate to undertake, or assist in undertaking:
(A) Purchase and rehabilitation of homes to sell, rent, or redevelop
(B) Create land banks for homes that have been foreclosed upon
(C) Demolish blighted structures
(D)Redevelop demolished or vacant properties
(E) Establish financing mechanisms for purchase and redevelopment of foreclosed upon
homes and residential properties.
2. Authoritv to Carry Out Activities
The County of Sonoma is hereby designated as the lead entity to administer and
implement eligible activities for each of the participating parties to this Agreement in
accordance with the provisions of the HERA and the terms and conditions provided
herein. The marmer in which such activities are implemented shall be mutually
determined by the County of Sonoma and the benefiting party or parties.
Lead Entity
(A) As lead entity, the County of Sonoma becomes the direct grant recipient and is
responsible for ensuring that NSP requirements (such as program income or rent
affordability) are complied with after grant closeout.
(B) NSP program income will belong to the lead entity's NSP even if it is generated from
activities undertaken within or by a cooperating local jurisdiction.
(C) The lead entity agrees to take all action necessary to assure compliance with the
certification required by Section 104(b) of Title I of the Housing and Community
Development Act of 1974, as arnended, including Title VI of the Civil Rights Act of
1964, the fair Housing Act, section 109 of Title I of the Housing and Community
development Act of 1974, and other applicable laws.
(D) The lead entity will ensure that no funding will be allocated for activities in, or in
support of, any cooperating unit of general local government or nonprofit agency that
does not affirmatively further fair housing or that impedes the lead entity's actions to
comply with its fair housing certification.
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4. Excessive Force Policv
The CITY and JOINT NSP PARTICIPANTS have adopted and enforce:
a. A policy prohibiting the use of excessive force by law enforcement agencies
within its jurisdiction against any individuals engaged in nonviolent civil rights
demonstrations; and
b. A policy of enforcing applicable State and local laws against physically barring
entrance to or exit from a facility or location, which is the subject of such non-
violent civil rights demonstrations within jurisdictions.
Fiscal Responsibility
In the event that any recipient of NSP funding does not comply with all federal
prerequisites in order for funds to be expended, those finds shall be returned to the lead
agency for re -distribution with the consent and agreement of the other NSP participants.
In all cases there shall be strict accountability of all kinds and reports of all receipts and
disbursements. The Executive Director of the Sonoma County Community
Development Commission shall serve as fiscal officer under this Agreement and his/her
bond shall be extended to cover the obligations under Government Code Section 6505.1.
6. Tenn of Agreement
This Agreement shall take effect upon its execution by the authorized representatives of
each of the parties and shall remain in effect until the State NSP funds and program
income received are expended and the funded activities completed. The CITY and NSP
PARTICIPANTS cannot terminate or withdraw fi-om the joint partnership agreement
while it remains in effect.
Agreement Binding
Thus Joint Power Agreement shall be binding upon the parties hereto and their successors
and assigns.
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IN WITNESS WHEREOF, the parties hereto have caused this Joint Powers Agreement to be executed as of the
day and year first above written.
ATTEST: CITY OF PETALUMA
By
Clerk of the City of Petaluma CITY MANAGER
COUNTY OF SONOMA
By
Clerk of the Board CHAIRMAN, BOARD OF SUPERVISORS
CITY OF SANTA ROSA
By
Clerk of the City of Santa Rosa CITY MANAGER
Approved As To Form
City Attorney
NSP JPA/IUD
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