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HomeMy WebLinkAboutRDA Item No. 5 08-09-11CITY OF iLSIRORE DREAM EXTREME. REPORT TO THE REDEVELOPMENT AGENCY TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE REDEVELOPMENT AGENCY FROM: ROBERT A. BRADY EXECUTIVE DIRECTOR DATE: AUGUST 9, 2011 SUBJECT: HABITAT FOR HUMANITY SUPPORT LETTER Background The U.S. Department of Housing and Urban Development (HUD)'s Neighborhood Stabilization Program (NSP) was established to stabilize communities that have suffered from foreclosure and abandonment. It is providing targeted emergency assistance to state and local governments to acquire and redevelop foreclosed and abandoned homes and residential properties that might otherwise become sources of blight within their communities. To date there has been three (3) rounds of the NSP program. The County of Riverside's Department of Economic Development (EDA) has been charged with administering NSP funds to targeted areas within the County of Riverside. Non-profits, such as Habitat for Humanity (HFH), apply for NSP funds and conduct the work within these targeted areas throughout the County. Currently, HFH has notified staff that the EDA has reduced the targeted area to the Cities of Menifee and Lake Elsinore. Last year HFH was awarded $1.7 million dollars of NSP funds and their work in Lake Elsinore included one (1) revitalized home. This year they have been awarded approximately $1 million and are expecting to remodel one (1) to two (2) homes within the City. With these funds, HFH is proposing to provide acquisition, rehabilitation, and re-selling of bank-owned foreclosed properties in the EDA targeted blighted areas within the City. AGENDA ITEM NO. 5 Page 1 of 3 Habitat for Humanity Support Letter August 9, 2011 Page 2 Discussion Execution of the attached "REO Properties, Lake Elsinore" support letter allows HFH to complete their application for NSP funds to be used within the City of Lake Elsinore. Fiscal Impact There would be minimal fiscal impact to the City as once the letter of support is executed; the City's only responsibility is to process all applicable building permits. It should be noted that the City will also collect all applicable building permit fees during permit issuance. Other than this requirement, the day-to-day responsibilities of implementing the Program will be handled by HFH. Recommendations Authorize the Executive Director to execute the "REO Properties, Lake Elsinore" support letter. Prepared by: Justin Carlson Redevelopmen Agency Analyst Approved by: Robert A. Brady Executive Directo Attachments: 1. Habitat for Humanity "REO Properties, Lake Elsinore" support letter. Page 2 of 3 CITY OF LADE I LSII`IORE -~%1 REDEV~ ENT AGENCY August 10, 2011 County of Riverside Economic Development Agency 1325 Spruce Avenue, Suite 400 Riverside, CA 92507 Attn: Mervyn Manalo Re: REO Properties, Lake Elsinore Dear Mr. Manalo: The Redevelopment Agency of the City of Lake Elsinore (Agency) submits this letter of support on behalf of Habitat for Humanity Inland Valley. MELISSA A. MELENDEZ CHAIR Habitat for Humanity Inland Valley is proposing to provide acquisition, rehabilitation, and reselling of bank-owned foreclosed properties in blighted areas within the City of Lake Elsinore. These BRIAN TISDALE homes would be sold to qualified low-income families. Habitat for `E "AIR Humanity Inland Valley presents a demonstrated ability to successfully manage affordable housing programs and projects AMY BHUTTA throughout Southwest Riverside County. BOARD nnEmI BeR Based on Habitat for Humanity Inland Valley's excellent past history and reputation in the region, we fully support their application for DARYL HICKMAN funding being submitted to the County of Riverside's Economic ItonRDMeMBea Development Agency's Neighborhood Stabilization Program. We look forward to the opportunity of working with Habitat for Humanity Inland Valley on the large number of foreclosed properties in our ROBERT E. MAGEE City. BOARDMEMBER Respectfully, ROBERT A. BRADY EXECUTIVE DIRECTOR Robert A. Brady Executive Director/City Manager 951.674.3124 x 204 130 S. MAIN STREET C. Redevelopment Agency Chair and Board Members LAKE ELSINORE. CA 92$30 W W W. LAKE-[ LS I NORE.ORG Page 3 of 3