Housing Leadership Council of Palm Beach County

1. As part of the Housing and Economic Recovery Act (HERA), Palm Beach County has been awarded $27.7 million for neighborhood stabilization initiatives and activities within the county. The funds are being awarded via the CDBG (Community Development Block Grant) program and allocation for Palm Beach County was based upon local foreclosures, subprime loans and delinquencies.

Requirements:

1. All funds must be used to assist families and individuals whose income does not exceed 120% of AMI ($79,200*).
2. At least 25% of the funds must be used to purchase and redevelop housing to be used by families and individuals whose income is at or below 50% of AMI.
3. Distribution and use of funds must go towards areas of greatest need.
4. The grant requires that affordability must be maintained for the longest term feasible and practicable.
5. Funds must be completely obligated within 18 months or HUD will automatically recapture un-obligated funds.

Palm Beach County’s proposed plan (subject to final approval by HUD):

· Financing Mechanism for Purchase and Redevelopment of Foreclosed Upon Homes and Residential Properties

HCD will utilize NSP funds to create a local housing trust fund offering first and/or second mortgages to individual income-eligible (<120% AMI) households seeking to acquire, with or without rehabilitation, foreclosed upon or abandoned homes that will be occupied as the buyer’s primary residence. Estimated funding amount--$12,845,811.

· Purchase and Rehabilitate Abandoned or Foreclosed Residential Properties in Order to Sell, Rent, or Redevelop

HCD will make available NSP funds through a competitive application process for eligible entities to acquire, with or without rehabilitation, abandoned or foreclosed residential properties (single-family or multi-family) which must then either be re-sold to income-eligible homebuyers, or retained by the acquiring entity for rental to income-eligible renters at affordable rents, or occupied by income eligible households through lease-purchase agreements. It is anticipated that activity delivery expenses directly related to the NSP-funded acquisitions and carrying costs may be included. Estimated Funding Amount-$5,000,000

· Redevelop Demolished or Vacant Properties

HCD will make available NSP funds through a competitive application process, or the BCC may choose to designate, eligible entities to acquire and redevelop demolished or vacant properties which must be redeveloped into a NSP/CDBG-eligible use (potentially including residential, public facilities, or mixed use) that serves the L/M income Benefit National Objective of the CDBG Program. Estimated Funding Amount-$7,500,000. (These funds are intended to be used for a Homeless Resource Center)

· NSP Program Administration

HCD will utilize NSP funding to accommodate the costs of general administration of the NSP Program, including staffing, equipment, environmental reports, overhead items, and indirect cost. These administration costs will be incurred over the multi-year period of the NSP—up to four (4) years. Estimated funding amount-$2,354,529.

* Annual Median Income in Palm Beach County is currently $66,000

Important Links:

Click Here for HUD NSP Infomation

Click here for a copy of Palm beach County's Neighborhood Stabilization Plan