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City of Missoula, Montana Item to be Referred to City Council Committee Committee: Administration and Finance Item: Resolution to amend Contract 06-02 Date: March 5, 2010 Prepared by: Nancy J. Harte, Office of Planning and Grants Initiated by: Nancy J. Harte, Office of Planning and Grants Action Required: Adopt a resolution amending Contract 06-02 with the North Missoula Community Development Corporation to specify the number of low- and moderate-income households at Burns Street Commons to be funded by the City’s Home Investment Partnerships (HOME) program. Recommended Motion: I move the City Council adopt a resolution to amend Contract 06-02 with the North Missoula Community Development Corporation so that at least two low- and moderate-income households at Burns Street Commons will be provided housing funded by the City’s Home Investment Partnerships (HOME) program. Timeline: Referral to committee: March 5, 2010 Committee discussion: TBD Deadline: Preferably before March 31, 2010 Background and Alternatives Explored: On February 6, 2006, City Council adopted Resolution 7027 to award the North Missoula Community Development Corporation $224,247 in HOME funds, and on August 17, 2006, approved HOME Contract 06-02 with to purchase land and build 16 new housing units for low- and moderate-income first-time homebuyers. purchased the land at 1500 Burns Street and constructed 16 one-, two- and three-bedroom units, a project known as “Burns Street Commons.” The units were completed just as the country entered a recession and national housing market decline. In spite of extraordinary marketing efforts, has sold just four units, and has one more under a buy/sell agreement. The State of Montana has also provided HOME funding to the Burns Street project and has been directed by the U.S. Department of Housing and Urban Development (HUD) to close out its portion of the HOME project by reducing to two the number to be considered “HOME-assisted households.” In order to be consistent with the State HOME program and HUD’s direction, the number of households identified as City HOME-funded needs to be at least three to account for the balance of actual number of units sold or under contract. All 16 units are still under City ---PAGE BREAK--- Referral to Administration and Finance Committee March 5, 2010 Page 2 of 2 Community Development Block Grant (CDBG) requirements to be available only to low- and moderate-income households. The proposed resolution will amend bullet 3 of Section 5, HOME Contract 06-02, to read “Will provide said housing to at least three occupants whose incomes are at or below 80% of the local median income, as determined by the U.S. Department of Housing and Urban Development (HUD), at costs within HUD's guidelines for affordability.” Attachments: Proposed Resolution to amend Contract 06-02 Contract 06-02 Resolution 7027