HomeMy WebLinkAbout09-60FEBRUARY 24, 2009 09 -36 09 -60 PENDING
JANUARY 27, 2009 RESOLUTION
(CARRIED 7 -0 LOST LAID OVER WITHDRAWN )
AS AMENDED
PURPOSE: APPROVAL TO ENTER INTO AN AGREEMENT WITH
NEIGHBORWORKS GREEN BAY TO ASSIST WITH
NEIGHBORHOOD IMPROVEMENT EFFORTS THROUGH
IMPLEMENTATION OF THE GREAT NEIGHBORHOODS
PROGRAM
INITIATED BY: DEPARTMENT OF COMMUNITY DEVELOPMENT
WHEREAS, in an effort to stabilize and improve housing within the City of
Oshkosh, and specifically within targeted central city areas, the Department of
Community Development proposes a partnership with NeighborWorks Green Bay
wherein NeighborWorks would undertake various neighborhood improvement activities;
and
WHEREAS, NeighborWorks Green Bay is currently involved with a number of
housing and community development related activities that would be beneficial to the
City's neighborhood revitalization efforts and implementation of the Great
Neighborhoods Program.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the proper City officials are hereby authorized and directed to enter into
an Agreement with NeighborWorks Green Bay to assist with implementation of
neighborhood improvement efforts in the community, with substantially the same terms
as attached hereto, and to carry out all actions necessary to implement the City's
obligations under the Agreement.
Amendment: Agreement Term Sheet IIIA- "and Common Council" was added to
second sentence
AGREEMENT TERM SHEET
BETWEEN
CITY OF OSHKOSH
AND
NEIGHBORHOOD HOUSING SERVICES OF GREEN BAY, INC.
March 1, 2009 — April 30, 2010
THIS AGREEMENT is between the City of Oshkosh, herein referred to as "CITY," and
Neighborhood Housing Services of Green Bay, Inc d.b.a NeighborWorks Green Bay, herein
referred to as "NW ".
The 2005 City of Oshkosh Comprehensive Plan identified the need to undertake programming to
improve older residential areas. NW has extensive experience in developing, funding and
implementing various neighborhood improvement activities including neighborhood organizing,
housing rehabilitation and various types of training related to homeownership and history of
successful collaboration with units of local governmental and other non - profit agencies.
The purpose of this Agreement is to describe the relationship between the CITY and NW in
implementing various neighborhood improvement projects and programs.
I. CITY RESPONSIBILITIES
A. Provide funding for administrative costs related to contracted services provided to
the CITY and for projects and programs specified by the CITY on an annual basis.
B. Provide access to affordable property suitable for rehabilitation or new
construction.
C. Provide technical support in the form of lead paint testing and clearance, zoning
and land use information.
D. Develop plans for specific neighborhood initiatives as part of the Great
Neighborhoods Program.
E. Assist NW in obtaining funding from other sources to carry out work program.
F. Provide $100,000 (one hundred thousand dollars) in CDBG funds for agreed upon
work to be undertaken from March 1, 2009 through April 30, 2010. The
Agreement may be extended for additional one year terms based on the
availability of funding and the inclusion of the activity in the City's Annual
CDBG Action Plan as approved by HUD.
G. Obtain approval from the Department of Housing and Urban Development (HUD)
to designate NW as a Community Development Based Organization (CDBO) or
its equivalent.
NeighborWorks Agmt
1/30/09
II. NEIGHBORWORKS RESPONSIBILITIES
A. Carry out programs and projects specified by the CITY on an annual basis
including but not limited to acquisition, rehabilitation and disposition of property
and establishment of neighborhood organizations.
B. Establish effective working relationships with appropriate local agencies.
C. Seek funding from other local, state and federal government sources as well as
foundations and businesses to carry out activities consistent with CITY plans and
priorities.
D. Hire staff to implement activities.
E. Maintain an office with regular office hours in the City of Oshkosh.
F. Develop and launch a web site exclusively for NeighborWorks projects and
activities in Oshkosh.
G. Participate in the development of City plans for neighborhood improvement.
H. Provide proof of appropriate insurance coverage.
I. Provide all information to the City or HUD necessary to designate NW as a
CDBO or its equivalent.
III. REPORTING REQUIREMENTS /RECORDS
A. NW will provide a monthly written report with information on accomplishments,
expenditures and revenues and progress on ongoing activities. Report to be submitted
to the Department of Community Development and Common Council on or before the
15th of the month following the month subject to the report.
B. NW agrees to provide access to CITY staff books, documents, papers, and records
which are directly pertinent to this Agreement for the purposes of making audit,
examination, excerpts, and transcriptions and to fulfill any requirements associated with
funding provided by the CITY.
IV. SUSPENSION AND TERMINATION
A. In the event NW fails to comply with the terms of the agreement, the CITY may, on
reasonable notice to NW, suspend the Agreement and withhold further payments or
prohibit NW from incurring additional obligations of funds, pending corrective action
by NW or a decision to terminate in accordance with paragraph B below.
B. The Agreement may be terminated for cause or convenience only as set forth here.
V. AMENDMENTS
The Agreement may be amended at any time by a written modification mutually agreeable to
both parties hereto.
• Indicates revision
NeighborWorks Agmt
1/30/09; 2/25/09
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OYHKOfH
ON THE WATER
TO: Honorable Mayor and Members of the Common Council
FROM: Jackson Y
Director of ty Development
DATE: January 20, 2009
RE: Approval to Enter into Agreement with NeighborWorks Green Bay to Assist with
Neighborhood Improvement Efforts through Implementation of the Great
Neighborhoods Program
BACKGROUND
The Common Council received the attached memo dated January 15 introducing the NeighborWorks
organization and describing a proposed relationship whereby that organization would assist the City in
carrying out neighborhood improvement programming.
The memo outlined the proposed relationship between the City and NeighborWorks that included
NeighborWorks undertaking various neighborhood improvement activities such as neighborhood
organizing and acquisition, rehabilitation and disposition of properties for both owner and renter
occupancy.
The Common Council is now being asked to approve the term sheet which details the respective roles
of the City and NeighborWorks in undertaking identified neighborhood improvement activities.
ANALYSIS
The proposed partnership between the City and NeighborWorks will significantly expand the City's
capacity to undertake neighborhood improvement programming, both in the number of projects and the
type of assistance offered.
The National Neighborhood Housing Services/NeighborWorks organization supports hundreds of local
NeighborWorks affiliates and provides a variety of resources to assist local affiliates. NeighborWorks
Green Bay has been operating in Green Bay for 20 years or so and has a proven track record in
assisting the City with neighborhood improvement programming.
The National NeighborWorks association is not currently looking to expand the number of affiliates
they have, therefore the City is proposing to access their expertise by having NeighborWorks Green
Bay expand their service area to include the City of Oshkosh. The partnership is based on the
understanding that at some point, NeighborWorks Oshkosh could be a stand alone affiliate of the
National Organization.
FISCAL IMPACT
NeighborWorks will be funded by a combination of CDBG funds, which are currently on hand, funds
from the Oshkosh Foundation and other State and Federal funds secured by either the City or by
NeighborWorks.
It should also be noted that NeighborWorks affiliates also receive Federal funds automatically on an
annual basis through a congressional line item appropriation and it is anticipated that some of these
funds will be available for Oshkosh projects undertaken by NeighborWorks.
In the case of rehabilitation and sale of the $1 HUD homes, it is anticipated that there will be equity
captured at resale which will be recycled to fund additional projects.
RECOMMENDATION
Staff recommends Common Council approval of the proposed Term Sheet which sets forth the basic
elements of the partnership between the City and NeighborWorks to implement the Great
Neighborhoods Program.
Approved,
Mark Rohloff
City Manager
City of Oshkosh - Department of Community Development OJHKO H
ON THE WATER
215 Church Avenue Oshkosh, WI 54903 (920) 236 -5058 (920) 236 -5053 fax
MEMORANDUM
TO: Mark Rohloff, City Manager
Common Council
FROM: Jackson R. Kin: 9%=;1opLent Director of Comm
DATE: January 15, 2009
RE: Utilizing Services of NeighborWorks and Other Neighborhood Programming
In October you and the Council received a Memorandum discussing an approach the Department of
Community Development was proposing for the ongoing implementation of neighborhood improvement
programming in the community. That approach would involve engaging the services of NeighborWorks
of Green Bay to work with the City on a variety of neighborhood improvement efforts.
On January 27 the Council will be asked to act on a Resolution to authorize the City to enter into an
agreement with NeighborWorks. This is an important step in moving the City forward in the
implementation of the Great Neighborhoods Program that will help the City achieve goals and objectives
set forth in the 2005 Comprehensive Plan.
At that same meeting the Council will also be asked for approval to implement a streamlined approach for
acquiring and disposing of properties foreclosed on by the U.S. Department of Housing & Urban
Development (HUD). That activity is also part of the City's neighborhood improvement efforts.
NeighborWorks
NeighborWorks is a non - profit organization that is associated with the National NeighborWorks
organization, which evolved from the former Neighborhood Housing Services organization. The National
NeighborWorks organization has affiliates across the United States and receives some of its annual
fiznding from a Congressional line item. NeighborWorks has been active in Green Bay for about 20 years,
successfully organizing neighborhoods and undertaking a significant number of bricks and mortar
projects. They also provide a number of other types of housing programming, including homeownership
training, which is important in Oshkosh due to the fact that Habitat for Humanity has faced challenges in
producing homes recently. NeighborWorks and the City of Green Bay Department of Community
Development have worked hand in hand to address the City's neighborhood improvement and housing
needs.
NeighborWorks is involved with a number of housing and community development related activities
including neighborhood organization, homebuyer and foreclosure counseling, rehabilitation and resale of
single family properties and rehabilitation and management of rental units. Their funding comes from a
variety of sources including private donations, grants from private foundations and the city as well as
receiving federal funds from an annual congressional set aside for the national organization.
The City of Green Bay not only benefitted from the formation of a number of neighborhood associations
who play an active role in revitalization efforts, but it has benefitted significantly from the presence of
NeighborWorks which serves as an umbrella organization devoted to the general improvement of older
central city areas in that community.
Over the course of the past year the Department has been involved in discussions that have been held by
the Oshkosh Area Community Foundation regarding their interest in seeing an expansion of neighborhood
improvement efforts in the community. One' area that has been discussed would be to the southeast of the
Near East Neighborhood, with the area generally bounded by Bowen Street, Washington Avenue, Lake
Winnebago and the Fox River. This general area was one of the priority neighborhoods identified in the
2005 Comprehensive Plan.
The City would look to use $100,000 of currently available Community Development Block Grant
(CDBG) funds to cover the costs of NeighborWorks services. It is envisioned that the initial funds
provided by the City would be supplemented by additional monies that NeighborWorks is seeking from
the Foundation. In addition, donors have approached the Foundation with an interest in providing funding
that would be used in support of neighborhood improvement efforts. NeighborWorks will also bring with
them a proven record in fundraising from both private and public sources.
The agreement between the City and NeighborWorks would identify a number of activities the
organization would be asked to undertake in Oshkosh. One of the first activities NeighborWorks would
tackle is the establishment of a neighborhood association in the Near East Neighborhood. It would appear
we are at a crucial crossroads with implementation of a variety of programming efforts in that
neighborhood. For neighborhood improvement programs in areas such as the Near East Neighborhood to
be successful, it is important the neighborhood residents themselves play a key role in determining the
type of programming they would like to see implemented in their neighborhood, and how they would like
the City to deal with issues like design reviews and targeted code enforcement.
In having the neighborhood effectively speak for itself, the neighborhood should transition from the
current Steering Committee approach which is by and large informal to a more structured and formally
organized neighborhood group and/or association — and NeighborWorks can assist neighborhood residents
in meeting that need.
In addition to working on the possible formation of neighborhood associations, there are also a variety of
other activities NeighborWorks would pursue including housing rehabilitation, development and
implementation of broader neighborhood improvement activities and collaboration with the City in a
general review of housing and neighborhood improvement programs, in order to identify areas where
changes may be needed.
2
Additional information on NeighborWorks and its activities in Green Bay can be found at
www. nwg`eenba . oorg
Acquisition/Disposition of HUD Foreclosed Properties
As noted above, on January 27 the Council will also be asked to approve implementation of a streamlined
approach for acquiring and disposing of properties foreclosed on by HUD.
The current state of the economy and housing market has resulted in a significant number of homes that
have been foreclosed on by financial institutions including HUD. Lenders are using a variety of strategies
to sell these homes in this difficult market. HUD is no different. When a HUD foreclosed property has
been on the market for 6 months, it may be purchased by a unit of local government for $1 through the $1
Home program. The local government may raze, sell on the market as is or rehab and sell, or may turn the
property over to a non -profit for one of those purposes.
According to the City Assessor's records, there are nearly 20 HUD foreclosed homes currently on the
market in Oshkosh. Nine of these have been on the market for over 6 months - long enough to be sold to
the City through the $1 Home program.
Vacant homes can have a very destabilizing impact on a neighborhood, and the longer a home sits vacant
the greater that negative impact is.
The foreclosure process is taking nine months or more following the initial notice from the mortgage
lender and homes do not become eligible for the $1 Home Program until they have been on the market for
6 months. It is important to neighborhoods that these properties, that have been sitting empty for 15
months or more, be either razed (if not suitable for repair) and replaced with a new home, or rehabilitated
and sold. Two of the properties on the list were transferred to HUD in September and December of 2007
respectively. Based on the length of time these properties have been for sale, it is clear the market is not
interested in them and something must be done.
Of the HUD homes currently on the market in Oshkosh, it appears some would be candidates for
rehabilitation and resale, and some would probably be candidates for razing. In the rehab /resale scenario,
it would be proposed that the rehabilitation be undertaken by NeighborWorks, Habitat, or the City.
Homes would then be sold to households at a variety of income levels, from low and moderate income
first time homebuyers participating in the Winnebago County Housing Authority's First Time Homebuyer
Program or Habitat for Humanity to households at between 80 and 120 percent of median income. In the
raze scenario, the cleared lot would be made available to Habitat for new construction.
To enable the City to respond quickly to the availability of the HUD foreclosed properties and to get them
into the hands of new homeowners, the Department would implement a streamlined process for the
acquisition and disposition of the properties. The streamlined format would entail review and approval by
the City Manager of a plan for the acquisition and disposition of each property.
3
For, each property proposed to be purchased through the $1 Home Program, staff will submit the following
information to the City Manager for review;
• an analysis. of the condition of the property and a recommendation on suitability of the property for
razing or rehabilitation
• determination of the most appropriate end use of the property (i.e. owner or renter occupancy,
target market, sale price or rent, etc.)
• estimated cost and scope of rehabilitation or cost of razing
• identification of the agency who will be completing rehabilitation of the home or new construction
on the cleared lot, a time frame for the proposed project, a commitment on the part of that agency
to the project and evidence of available funds to complete the proposed project
• evaluation of the impact of the proposed project on the neighborhood in which it is located
The City Manager would then make a determination on the acquisition and disposition of properties based
on this information. At a minimum the Council will receive quarterly reports on the activities undertaken
under this process.
It should be noted that the proposed process would only apply to property in the HUD $1 Home Program.
Any other acquisitions of foreclosed property would be brought forward for Council approval.
The Neighborhood Stabilization Grant Program
Council previously received a memo describing the City's involvement in a collaborative effort to pursue
Neighborhood Stabilization Program (NSP) funds that are being provided by the federal government to
deal with the unprecedented number of foreclosures occurring throughout the country.
Since the State is stressing that for applications to be successful, they must involve a number of
collaborating agencies, the City of Oshkosh is joining the Cities of Neenah and Menasha, Habitat for
Humanity of the Fox Valley, Habitat for Humanity of Oshkosh, NeighborWorks and the Winnebago
County Housing Authority to submit one application for these funds. Applications are due January 20.
In Oshkosh funds are proposed to be used for acquisition, rehabilitation and resale of foreclosed
properties, acquisition and demolition of unrepairable foreclosed properties and disposition of the lots to
Habitat for the construction of new homes, or for sale at market rate to raise funds for the City's Great
Neighborhoods Program.
Since Congress is requiring speedy implementation of this program, funding will be made available in
March and grantees are under a relatively tight timeframe to expend these funds. Funds that are not
expended in a timely fashion must be surrendered by grantees. Therefore, it is critical that the City be in a
position to implement the program in a timely manner. Having the involvement of NeighborWorks and
streamlined access to properties through the HUD $1 Home program will be an important part of
expediting the use of the NSP funds to improve our neighborhoods.
If you or any member of the Council has any questions concerning the NeighborWorks Program or
the Foreclosure Programs, please contact either myself or Principal Planner Susan Kepplinger.
M