Control: Housing & Community Development Committee
File Name: NEIGHBORHOOD STABILIZATION PROGRAM
Agenda Item Number:
DISCUSSION RE: NEIGHBORHOOD STABILIZATION PROGRAM
Audrey M. Edmonson, Prime Sponsor
Housing & Community Development Committee
Assistant County Attorney read the foregoing proposed ordinance/resolution into the record.
Chairwoman Edmonson acknowledged the County Commission Chair’s request that the HOPE VI project be discussed in today’s (3/25) meeting; however, she asked that Commissioner Rolle consider deferring the HOPE VI discussion to the April 14, 2010 Committee meeting since the Public Housing Agency Director, Mr. Gregg Fortner, was unable to attend today’s meeting.
Commissioner Rolle asked that the report under Agenda Item 7H regarding the Scott Carver Project, be deferred to the next meeting as well.
Ms. Shalley Jones Horn, Housing and Community Development Department Director, provided a brief overview of the Neighborhood Stabilization Program (NSP). She noted the entire $62 million NSP funds must be obligated by September 2010, and spent within the next three years. Ms. Horn summarized the current status of the six strategies encompassed by the NSP activities as follows:
1) Second Mortgage Program – Of the $10 million in program funds, $371,000 was obligated and expended, and two contracts were currently pending;
2) Acquisition and rehab of foreclosed properties – Spearheaded by General Services Administration (GSA), which had closed on 29 homes in the amount of $3.5 million, excluding the costs for rehab and other required expenditures;
3) Multi-family acquisition and rehab – the $21.5 million was obligated; Counseling – $65,000 was obligated;
4) Demolition of blighted structures – possessed signed contracts with the City of Opa-locka and Florida City; in process of finalizing contract with the City of South Miami; plans underway to demolish Douglas Gardens Public Housing Development; expended approximately $580,000 of the $1 million obligated to this strategy;
5) Redevelopment activity on the HOPE VI Project - $8.6 million fully obligated and groundbreaking ceremony held; and
6) HOPE VI Expanded area - currently under a Cone of Silence; however, this $5 million strategy was on track and is currently under a Cone of Silence.
Ms. Horn also advised that funds allocated for administration and planning were fully obligated; adding that of the $62 million, $40 million was currently obligated. She noted the second mortgage was the weakest activity in the NSP, and the multi-family property acquisition and rehab was the strongest, noting it was staff’s intent to request approval to shift funds from the weak activity to the strong activity, to ensure that the dollars were fully obligated within the next two months.
Chairwoman Edmonson expressed concern that the foreclosed homes located in the northern part of the County were not considered for rehab, which impacted economic growth through the provision of jobs. She questioned whether it was extremely costly to rehab the foreclosed homes in this area.
Ms. Wendi Norris, General Services Administration Director, responded to Chairwoman Edmonson’s inquiry, noting most of the homes targeted and under contract by the County were sold before the purchase could be made. She added that the cost for rehab on some of the homes exceeded the value of the home; that the County closed on 29 homes, four of which were located in District 2 and one in District 3. She noted she would meet with Chairwoman Edmonson to discuss the details of individual properties and efforts being made to address all the targeted areas.
Commissioner Souto noted due to its location within hurricane alley, Miami-Dade County could become a model for the nation with regard to the rehabilitation of homes. He suggested the County consider attracting Architectural Engineering studies from local universities to design a model.
In response to Chairwoman Edmonson’s concern with the cost to rehab a house, Ms. Norris advised that the average cost to rehab a home was $30,000 to $40,000, which included electrical and permitting issues. She indicated it would not be less expensive to demolish and rebuild a damaged home.
Commissioner Sorenson expressed her support for the purchase of foreclosed homes by other entities, and noted this meant the homes would be rehabbed and occupied rather than vacant.
Commissioner Jordan commented that many foreclosed properties in the north end of the County, had extensive damage done by tenants who lost the property, and noted this added hidden costs for repairs, doubling the selling price.
Commissioner Rolle asked how many foreclosed homes were located within Districts 2 and 3. He expressed concern that those properties should be entitled to a share of the $62 million NSP dollars for their rehab.
Pertaining to Commissioner Rolle’s question regarding a property he requested be included in the NSP, Ms. Norris advised that all the funds originally allocated for multi-family acquisition and rehab were fully obligated. She noted one of the properties purchased was located in District 2. Ms. Norris advised that the property referred by Commissioner Rolle would need to partner with a business in the pool of qualified buyers in order to present a proposal.
Commissioner Souto suggested the County avoid doing business with banks that do not assist families facing foreclosure.
Discussion ensued between Chairwoman Edmonson and staff on whether the County leveraged funds toward the NSP and the status of the vendor pool activity.
Chairman Edmonson asked the Housing & Community Development Department Director to provide her with a chart listing the Neighborhood Stabilization Program activities and indicating which County department was handling each activity.
Commissioner Jordan asked the Housing & Community Development Department Director to submit a status report on the transfer of funds and on potential projects that could be considered in terms of the $9 million additional dollars at the next Committee meeting.
Chairwoman Edmonson asked the General Services Administration Department Director to provide her with a chart reflecting areas where foreclosed homes were clustered, and to include the addresses whenever possible.
Assistant County Manager Irene Taylor-Wooten correctly stated that the property scheduled to be demolished was Lincoln Gardens, rather than Douglas Gardens as stated earlier by Ms. Horn.
There is no text currently available online for this item.