STATEMENT OF ISSUE
The Federal government created the Neighborhood Stabilization Program (NSP) in the Housing and Economic Recovery Act in July 2008. The program distributes funding to local governments to acquire vacant, bank-owned foreclosed properties and rehabilitate them to re-enter the occupied-housing stock. These Federal funds are being distributed to eligible local governments through the Florida Department of Community Affairs (DCA). The State allocated approximately $2.94 million for Tallahassee.

The Federal government established a citizen participation requirement related to the NSP funding. Local governments are required to hold one public hearing and one meeting of a “Citizen Advisory Task Force” (CATF) prior to finalizing funding allocations for various eligible activities identified within the application to be submitted to DCA by April 6, 2009. The Community Improvement Advisory Council (CIAC) bylaws list as one of its purposes to advise the City on housing issues. Resolution 09-R-06 designates the CIAC as the CATF for the purposes of the NSP program. The request to approve the application for submittal will come before the Long Range Target Issue Committee on March 16 and the City Commission on March 25.

RECOMMENDED ACTION
Adopt Option 1: Adopt Resolution 09-R-06 to designate the Community Improvement Advisory Council as the Citizen Advisory Task Force for the purpose of the Neighborhood Stabilization Program public participation requirement.

FISCAL IMPACT
There is no fiscal impact to designating the advisory committee as the advisory task force.

Thomas H. Lewis, Economic & Community Development

Anita Favors Thompson, City Manager

For information, please contact: Joyce Martinez, Housing Administrator, 891-6500

SUPPLEMENTAL MATERIAL/ISSUE ANALYSIS
HISTORY/FACTS & ISSUES
The Federally created Neighborhood Stabilization Program (NSP) distributes funding to local governments to acquire vacant, bank-owned foreclosed properties and rehabilitate them to re-enter the occupied-housing stock. The banks dispose of foreclosed properties; neighborhoods have fewer vacant houses; and income-eligible households benefit from newly renovated homes. The State of Florida received just over $91 million in the NSP program to distribute to local jurisdictions through the Department of Community Affairs (DCA). Tallahassee is slated to receive approximately $2.94 million.

The Federal government established a Citizen Participation requirement related to the NSP process. Therefore, local governments are required to hold one public hearing and one meeting of a “Citizen Advisory Task Force” (CATF) prior to adopting funding allocations for various eligible activities. DCA will allow local jurisdictions to designate an existing advisory committee as the CATF to satisfy the requirement. However, the Affordable Housing Advisory Committee (AHAC), required by State statute in the administration of the State Housing Initiatives Partnership (SHIP) program, may not be used as the CATF. This is because the required positions of the AHAC committee members (real estate professional, non-profit developer, for-profit developer, building services representative, bank representative, etc.) may result in conflicts of interest for decisions about NSP funding allocations and the representatives of the AHAC may not be able to vote on the funding allocation proposal.

The 15-member Community Improvement Advisory Council (CIAC) was created March 27, 1996 to combine four citizen advisory committees related to affordable housing, human services, and economic development. Four CIAC members are involved in the housing industry, four members are in economic development, and four members are in human services. The remaining three members are “grass roots” representatives who live in the human services priority areas, including Greater Frenchtown, Southside, Southeast side and “pockets of poverty” as defined by the Community Development Block Grant program criteria for such designation. The CIAC has a purpose in its bylaws to “advise the City on appropriate and proper strategies to be addressed and implemented regarding housing issues.” The CIAC is also the designated advisory council for the Community Development Block Grant, Emergency Shelter Grant, HOME Investment Partnership Program, State Housing Initiative Partnership (SHIP) program, and “other programs as assigned by the City Commission and [the Department of Economic and Community Development].” The CIAC addresses conflict of interest procedures in Article VIII of its bylaws, if any member of the committee is involved in a profession that would stand to gain from the NSP funds. The City Attorney’s Office developed Resolution 09-R-06 to designate the CIAC as the CATF for the purposes of the NSP program.

Tallahassee must submit its application to DCA by April 6, 2009. The Long Range Target Issue committee will review the application draft at the March 16 meeting. On March 25, 2009, the City Commission will consider for approval Tallahassee’s NSP application with proposed funding levels for eligible activities.

OPTIONS

Option 1: Adopt Resolution 09-R-06 to designate the Community Improvement Advisory Council (CIAC) as the Citizen Advisory Task Force (CATF) for the purpose of the Neighborhood Stabilization Program (NSP) public participation requirement.

Pros:
1. Designating a Citizen Advisory Task Force will satisfy the public participation requirement that will make Tallahassee eligible to receive $2.94 million in Neighborhood Stabilization Program funds.
2. The Community Improvement Advisory Council is already established and has experience reviewing Housing Division budget documents.

Cons:
1. None are identified.

Option 2: Do not adopt Resolution 09-R-06 to designate the Community Improvement Advisory Council as the Citizen Advisory Task Force (CATF) for the purpose of the Neighborhood Stabilization Program public participation requirement. Give staff alternate direction.

Pro:
1. None are identified.

Cons:
1. Failing to designate a Citizen Advisory Task Force will cause Tallahassee to be ineligible to receive $2.94 million through the Neighborhood Stabilization Program.

ATTACHMENTS/REFERENCES

1. Resolution 09-R-06
2. Community Improvement Advisory Council Membership Roster
3. Community Improvement Advisory Council Bylaws