CITY OF PUEBLO PUEBLO, COLORADO NEIGHBORHOOD STABILIZATION PROGRAM 3 APPLICATION

CITY OF PUEBLO PUEBLO, COLORADO NEIGHBORHOOD STABILIZATION PROGRAM 3 APPLICATION DRAFT SUBSTANTIAL AMENDMENT TO THE 2010 2014 CONSOLIDATED PLAN AND THE 2010 2011 ANNUAL ACTION PLAN Page 1

Page 2

Page 3

Page 4

1. NSP3 Grantee Information NSP3 Program Administrator Contact Information Name (Last, First) Ada Rivera Clark Email Address adaclark@pueblo.us Phone Number 719 553 2850 Mailing Address 2631 E. 4 St. Pueblo, CO. 81001 1. Areas of Greatest Need Map Submission The map generated at the HUD NSP3 Mapping Tool for Preparing Action Plan website is included as an attachment. Data Sources Used to Determine Areas of Greatest Need Describe the data sources used to determine the areas of greatest need. Response: The Department of Housing and Urban Development (HUD) provided local governments with an estimate of the number of homes that have completed or were at risk of becoming foreclosed by using the following data: 1. Rate of Subprime Loans. This is measured with HMDA data on high cost and high leverage loans made between 2004 and 2007. 2. Increase in Unemployment Rate between March 2005 and March 2010. These data are from the BLS Local Area Unemployment Statistics, at the city and county level. 3. Fall in Home Value from Peak to Trough. Home value data at the Metropolitan Area level is available quarterly through March 2010 from the Federal Housing Finance Agency Home Price Index. HUD rated each census tract and / or neighborhood on a scale from 1 to 20, with 20 being the areas with greatest need using this data. This foreclosure score allows local governments to target funding to those areas with the highest percentage of home foreclosures, the highest percentage of homes financed by subprime mortgage related loans and those areas likely to face a significant rise in the rate of home foreclosures. The Department of Housing and Citizen Services mapped various neighborhoods within the City to identify those areas of greatest need in which we could have the greatest impact, as recommended by the Notice of Formula Allocations. Eight areas were mapped in the Bessemer neighborhood. Eight areas were mapped in the Southside neighborhood. Seven areas were mapped in the Northside neighborhood. Five areas were mapped in the Eastside neighborhood. The areas were chosen initially based on housing prices and income levels. The HUD NSP3 Mapping Tool was used to retrieve information on foreclosures within the outlined areas, Page 5

and to determine the impact percentage that would be required under the grant. The Department of Housing and Citizen Services worked with the real estate agency currently under contract for NSP 1 to provide information on the listings in the areas that are being considered. The information contained in the report provided the following: list price; selling price; sold/list (%); price/sq. ft ($); price/acre ($); days on market. Realty Tract data was also used to map listings in the proposed target areas to gain a visual perspective of where impacts could be made. NSP1 projects were overlayed on these maps to add an additional layer of impact. Determination of Areas of Greatest Need Describe how the areas of greatest need were established. Response: HUD has established several recommended guidelines for communities to use when selecting their NSP target area. Primarily, HUD is recommending that the community be able to address at least 20% of the REO properties. Because NSP3 funding is only $1,460,506, it is estimated that 16 properties will be acquired and rehabilitated with NSP3 funds (HUD is not allowing communities to use the homes that may be subsequently purchased with NSP3 program income in this application). This means that the NSP3 site will need to be modest in size. The areas selected lay within census tracts 6, 7, 8, 12, 20 and 21, some of which are part of the NSP 1 target areas. Initial review of the data provided by the above mentioned sources revealed several areas of greatest need. In an effort to meet the impact requirement under the grant, the City chose to concentrate on three areas. The NSP3 target area consists of three neighborhoods Bessemer, Eastside, Westside/Downtown. There were certainly areas of much greater need, based on the number of foreclosures in a neighborhood, however the number of units required to be processed in conjunction with the funding available precludes the City from making a substantial impact in those areas. The selected target areas have smaller land areas and show impact numbers that could be reasonably achieved with the funding that will be made available from NSP 3 and HOME funding. The neighborhoods identified by the NSP3 grantee as being the areas of greatest need must have an individual or average combined index score for the grantee's identified target geography that is not less than the lesser of 17 or the twentieth percentile most needy score in an individual state. For example, if a state's twentieth percentile most needy census tract is 17, the requirement will be a minimum need of 17. If, however, a state's twentieth percentile most needy census tract is 15, the requirement will be a minimum need of 15. Area 1 Bessemer Target 1 Neighborhood NSP3 Score: 20 State Minimum Threshold NSP3 Score: 17 Total Housing Units in Neighborhood: 1780 Area Benefit Eligibility Percent Persons Less than 120% AMI: 87.91 Percent Persons Less than 80% AMI: 69.53 Page 6

USPS Residential Addresses in Neighborhood: 1767 Residential Addresses Vacant 90 or more days (USPS, March 2010): 146 Residential Addresses NoStat (USPS, March 2010): 23 Total Housing Units to receive a mortgage between 2004 and 2007: 491 Percent of Housing Units with a high cost mortgage between 2004 and 2007: 41.56 Percent of Housing Units 90 or more days delinquent or in foreclosure: 11.33 Number of Foreclosure Starts in past year: 61 Number of Housing Units Real Estate Owned July 2009 to June 2010: 37 Metropolitan Area (or non metropolitan area balance) percent fall in home value since peak value (Federal Housing Finance Agency Home Price Index through June 2010): 8 Place (if place over 20,000) or county unemployment rate June 2005*: 7.6 Place (if place over 20,000) or county unemployment rate June 2010*: 9.9 Estimated number of properties needed to make an impact in identified target area (20% of REO in past year): 13 The above number is higher than the number of properties that can be purchased with the funding being made available, however, as NSP1 funds were targeted to this area the impact will be larger. Area 2 Eastside URA Target 1 Neighborhood NSP3 Score: 20 State Minimum Threshold NSP3 Score: 17 Total Housing Units in Neighborhood: 755 Area Benefit Eligibility Percent Persons Less than 120% AMI: 92.54 Percent Persons Less than 80% AMI: 83.78 USPS Residential Addresses in Neighborhood: 748 Residential Addresses Vacant 90 or more days (USPS, March 2010): 96 Residential Addresses NoStat (USPS, March 2010): 8 Total Housing Units to receive a mortgage between 2004 and 2007: 196 Percent of Housing Units with a high cost mortgage between 2004 and 2007: 48.39 Percent of Housing Units 90 or more days delinquent or in foreclosure: 12.25 Number of Foreclosure Starts in past year: 26 Number of Housing Units Real Estate Owned July 2009 to June 2010: 15 Metropolitan Area (or non metropolitan area balance) percent fall in home value since peak value (Federal Housing Finance Agency Home Price Index through June 2010): 8 Place (if place over 20,000) or county unemployment rate June 2005*: 7.6 Place (if place over 20,000) or county unemployment rate June 2010*: 9.9 *Bureau of Labor Statistics Local Area Unemployment Statistics Page 7

Estimated number of properties needed to make an impact in identified target area (20% of REO in past year): 5 Area 3 Downtown Target 1 Neighborhood NSP3 Score: 20 State Minimum Threshold NSP3 Score: 17 Total Housing Units in Neighborhood: 901 Area Benefit Eligibility Percent Persons Less than 120% AMI: 92.91 Percent Persons Less than 80% AMI: 77.13 USPS Residential Addresses in Neighborhood: 875 Residential Addresses Vacant 90 or more days (USPS, March 2010): 84 Residential Addresses NoStat (USPS, March 2010): 23 Total Housing Units to receive a mortgage between 2004 and 2007: 176 Percent of Housing Units with a high cost mortgage between 2004 and 2007: 43.77 Percent of Housing Units 90 or more days delinquent or in foreclosure: 11.19 Number of Foreclosure Starts in past year: 22 Number of Housing Units Real Estate Owned July 2009 to June 2010: 13 Metropolitan Area (or non metropolitan area balance) percent fall in home value since peak value (Federal Housing Finance Agency Home Price Index through June 2010): 8 Place (if place over 20,000) or county unemployment rate June 2005*: 7.6 Place (if place over 20,000) or county unemployment rate June 2010*: 9.9 *Bureau of Labor Statistics Local Area Unemployment Statistics Estimated number of properties needed to make an impact in identified target area (20% of REO in past year): 5 Page 8

2. Definitions and Descriptions Definitions Term Blighted Structure Affordable Rents Definition Blighted Area means an area that, in its present condition and use and, by reason of the presence of at least four of the following factors, substantially impairs or arrests the sound growth of the municipality, retards the provision of housing accommodations, or constitutes an economic or social liability, and is a menace to public health, safety, morals, or welfare: [a] Slum, deteriorated, or deteriorating structures; [b] Predominance of defective or inadequate street layout; [c] Faulty lot layout in relation to size, adequacy, accessibility, or usefulness; [d] Unsanitary or unsafe conditions; [e] Deterioration of site or other improvements; [f] Unusual topography or inadequate public improvements or utilities; [g] Defective or unusual conditions of title rendering the title nonmarketable; [h] The existence of conditions that endanger life or property by fire or other causes; [i] Buildings that are unsafe or unhealthy for persons to live or work because of building code violations, dilapidation, deterioration, defective design, physical construction, or faulty or inadequate facilities; [j] Environmental contamination of buildings or property; [k.5] The condition of health, safety, or welfare factors requiring high levels of municipal services or substantial physical underutilization or vacancy of sites, buildings or other improvements; [l] If there is no objection of such property owner or owners and the tenant or tenants of such owners, in and, to the inclusion of such property in an urban renewal area, blighted area also means an area that, in its present condition and use and, by reason of the presence of any one of the factors specified in paragraphs [a] to [k.5] of this subsection (2), substantially impairs or arrests the sound growth of the municipality, retards the provision of housing accommodations, or constitutes an economic or social liability, and is a menace to the public health, safety, morals or welfare. For purposes of this paragraph (1), the fact that an owner of interest in such property does not object to the inclusion of such property in the urban renewal area does not mean that the owner has waived any rights of such owner in connection with laws governing condemnation. SOURCE: COLORADO REVISED STATUTE 31 25 103(2). Rents are considered affordable when household rent payments do not exceed HUD defined Fair Market Rent Limits and Rent Payments added to a household utility allowance do not exceed 30% of a family s adjusted income. Page 9

Descriptions Term Definition Long Term Affordability The City will utilize a Recapture Method as defined by 24 CFR 92.254 (5) (ii) through liens on each property to ensure that the homeowner cannot recapture a windfall profit. All NSP funds will be recaptured if NSP homeowners should sell their homes before the time period of designated Long Term Affordability expires. These recapture provisions will be enforced by a note and second mortgage on the property. The City will follow the HOME program standards as a minimum in complying with the long term affordability component of the NSP3 program. Funding provided per rental or homeownership unit less than $15,000 will have a 5 year affordability period, funding provided between $15,000 $40,000 per unit will have a 10 year affordability period, and funding greater the $40,000 per unit will have a 15 year affordability period. New construction rental projects will have a 20 year affordability period, regardless of the amount of subsidy, as required by the HOME regulations. Repayments will be re invested in the NSP program on eligible activities. Housing Rehabilitation Standards The City of Pueblo Rehabilitation Program Standards establish the requirements that all properties must meet, following the completion of any rehabilitation using federal, state or local funds. The standards require that, upon completion, all homes meet the following statutory requirements: 1997 Uniform Housing Code, Section 8 Housing Quality Standards HUD Lead Safe Work Practices HOME, CDBG and NSP program regulations (if applicable) The rehabilitation standards also specify the types of products that must be installed to insure that any older obsolete products and appliances, such as windows, doors, lighting, hot water heaters, furnaces, boilers, air conditioning units, and refrigerators are replaced with Energy Star labeled products. The rehabilitation specifications require that water efficient toilets, showers and faucets be installed when these fixtures are replaced. Because technology is improving and the cost for Energy Star appliances continues to decrease, the standards are constantly changing to provide the products with the lowest energy demand. New homes and gut rehabilitation projects will also be required to meet the standard for Energy Star Qualified New Homes. Should there be any gut rehabilitation of mid or high rise multifamily housing, that housing must all be designed to meet the American Society of Heating, Refrigerating and Air Conditioning Engineers Standard 90.1 2004, Appendix G plus 20 percent. Page 10

The rehabilitation standards require compliance with the accessibility standards at 24 CFR part 8. 3. Low Income Targeting Low Income Set Aside Amount Enter the low income set aside percentage in the first field. The field for total funds set aside will populate based on the percentage entered in the first field and the total NSP3 grant. Identify the estimated amount of funds appropriated or otherwise made available under the NSP3 to be used to provide housing for individuals or families whose incomes do not exceed 50 percent of area median income. Response: Total low income set aside percentage (must be no less than 25 percent): 25.00% Total funds set aside for low income individuals = $365,126.50 Meeting Low Income Target Provide a summary that describes the manner in which the low income targeting goals will be met. Response: All NSP3 funds will be used to assist persons whose income does not exceed 120% of area median income; however, priority will be given to persons whose income does not exceed 80% of area median income. No less than 25% of the grant must be used for the redevelopment of abandoned or foreclosed upon homes or residential properties that will be used to house individuals or families who do not exceed 50% of the area median income. The DHCS will meet the requirement by placing an emphasis on the acquisition of an existing multifamily property to rehabilitate or by the redevelopment of land for multi family purposes. The funding required to meet the 25% set aside amount will also allow for the redevelopment of 2 to 3 single family properties for this target population. Ideally the requirement will be met through the development of rental housing. 4. Acquisition and Relocation Demolition or Conversion of LMI Units Does the grantee intend to demolish or convert any low and moderate income dwelling units (i.e., 80% of area median income)? If yes, fill in the table below. Question The number of low and moderate income dwelling units i.e., 80% of area median income reasonably expected to be demolished or converted as a direct Yes Number of Units Page 11

result of NSP assisted activities. 5 The number of NSP affordable housing units made available to low, moderate, and middle income households i.e., 120% of area median income reasonably expected to be produced by activity and income level as provided for in DRGR, by each NSP activity providing such housing (including a proposed time schedule for commencement and completion). 5 The number of dwelling units reasonably expected to be made available for households whose income does not exceed 50 percent of area median income. 0 5. Public Comment Citizen Participation Plan Briefly describe how the grantee followed its citizen participation plan regarding this proposed substantial amendment or abbreviated plan. Response: The NSP3 Action Plan was posted on the City s website for a minimum of 15 days. A presentation was made to City Council during a Worksession on February 7, 2001. In addition, the City published a public notice informing citizens of the availability of the Plan for review and comments in the Pueblo Chieftain newspaper on February 12, 2011. Council adopted the NSP 3 Action Plan on February 28, 2011. Summary of Public Comments Received. The summary of public comments received is included as an attachment. 6. NSP Information by Activity Enter each activity name and fill in the corresponding information. If you have fewer than seven activities, please delete any extra activity fields. (For example, if you have three activities, you should delete the tables labeled Activity Number 4, Activity Number 5, Activity Number 6, and Activity Number 7. If you are unsure how to delete a table, see the instructions above. The field labeled Total Budget for Activity will populate based on the figures entered in the fields above it. Consult the NSP3 Program Design Guidebook for guidance on completing the Performance Measures component of the activity tables below. Activity Name Uses CDBG Activity or Activities Activity Number 1 Housing Redevelopment Select all that apply: Eligible Use A: Financing Mechanisms Eligible Use B: Acquisition and Rehabilitation Eligible Use C: Land Banking Eligible Use D: Demolition Eligible Use E: Redevelopment 24 CFR 570.201(a) Acquisition, (b) Disposition, Page 12

(c) Public facilities and improvements, (e) Public services for housing counseling, but only to the extent that counseling beneficiaries are limited to prospective purchasers or tenants of the redeveloped properties, (i) Relocation, and (n) Direct homeownership assistance (as modified below). 24 CFR 570.202 Eligible rehabilitation and preservation activities for demolished or vacant properties. 24 CFR 570.204 Community based development organizations. HUD notes that any of the activities listed above may include required homebuyer counseling as an activity delivery cost. National Objective Low Moderate Middle Income Housing (LMMH) The City will redevelop 6 homes to be sold to those clients whose income does not exceed 120% AMI. Once the redevelopment work is completed, the homes will be marketed for sale. Duration of Assistance: Assistance will be regulated by HOME Affordability Requirements to ensure long term affordability. Tenure: Ownership and rental Activity Description Rate of Interest Rate: Funding will be provided as a soft second at 0% interest. Beneficiaries: Properties will be sold to households at 120% or below of the area median income. The City of Pueblo will give local contractors priority rating on the RFP. Contractors who hire new employees must, to the maximum extent possible, hire workers who live in the NSP3 program area and contract with small businesses that are either owned and operated by persons residing in the vicinity of the project. A provision will be inserted in all contracts incorporating this requirement. Location Description Bessemer, Eastside URA, Westside/Downtown Source of Funding Dollar Amount Budget NSP3 $700,000 HOME Investment Partnership Act $350,000 (Other funding source) $0.00 Total Budget for Activity $1,050,000 Performance Measures Six properties will be redeveloped as housing and sold to clients at or below 120% AMI. Projected Start Date 4/1/2011 Projected End Date 4/1/2014 Page 13

Responsible Organization Activity Name Use CDBG Activity or Activities National Objective Activity Description Name Department of Housing and Citizen Services Location 2631 E. 4 St. Pueblo, CO. 81003 Administrator Contact Info Ada Clark, Director adaclark@pueblo.us; 719 553 2850 Activity Number 2 Purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon, in order to sell or rent such homes and properties. Select all that apply: Eligible Use A: Financing Mechanisms Eligible Use B: Acquisition and Rehabilitation Eligible Use C: Land Banking Eligible Use D: Demolition Eligible Use E: Redevelopment 24 CFR 570.201(a) Acquisition 24 CFR 570.201(b) Disposition 24 CFR 570.201(e) Public services for housing counseling, but only to the extent that the counseling beneficiaries are limited to prospective purchasers or tenants of the assisted properties. 24 CFR 570.201(i) Relocation Low Moderate Middle Income Housing (LMMH) DHCS will acquire 5 foreclosed and abandoned properties in the targeted area for sale or lease to eligible families. The ownership program will be substantially the same as the NSP1 program now being administered by DHCS for the City. The homes will be sold to eligible families for the appraised price or the cost of acquisition and rehabilitation, whichever is less. At the time of sale of the home, the sales price, less any subsidy needed to make the home affordable to the borrower, will be repaid to the NSP program and used for other NSP3 eligible activities. The rental program will also be substantially the same as the NSP1 program being administered by the DHCS. Upon completion of the rental units, the property will be transferred to a local non profit for ownership. To insure that the rents are affordable, the maximum that the non profit will be able to charge for rent will be the HOME high rents. The subsidy will be structured to provide long term affordability. This activity will address local housing market conditions by rehabilitating structures in high risk neighborhoods. This target area has many homes that were built in the earlier part of the century and the systems have become obsolete, as well as the structure not meeting code. The rehabilitation of these units will allow for safe, decent and sanitary housing to the low to moderate income population. Duration of Assistance: Assistance will be regulated by HOME Affordability Page 14

Requirements to ensure long term affordability. Tenure: Ownership and rental Rate of Interest Rate: Funding will be provided as a soft second at 0% interest. Beneficiaries: Properties will be sold to households at 120% or below of the area median income. The City of Pueblo will give local contractors priority rating on the RFP. Contractors who hire new employees must, to the maximum extent possible, hire workers who live in the NSP3 program area and contract with small businesses that are either owned and operated by persons residing in the vicinity of the project. A provision will be inserted in all contracts incorporating this requirement. Location Description Bessemer, Eastside URA, Westside/Downtown Source of Funding Dollar Amount NSP3 $460,000 Budget HOME Investment Partnership Act $200,000 (Other funding source) $0.00 Total Budget for Activity $660,000 Performance Measures Purchase and Rehabilitation of 5 abandoned or foreclosed properties Projected Start Date 4/1/2011 Projected End Date 4/1/2014 Responsible Organization Name Department of Housing and Citizen Services Location 2631 E. 4 St. Pueblo, CO. 81003 Administrator Contact Info Ada Clark, Director adaclark@pueblo.us; 719 553 2850 Page 15

Activity Name Use CDBG Activity or Activities National Objective Activity Number 3 Land Banking Select all that apply: Eligible Use A: Financing Mechanisms Eligible Use B: Acquisition and Rehabilitation Eligible Use C: Land Banking Eligible Use D: Demolition Eligible Use E: Redevelopment 24 CFR 570.2019(a)Acquisition, and (b)disposition Low Moderate Middle Income Housing (LMMH) The City will acquire and dispose of property within 10 years by: 1) holding and maintaining the home in its portfolio for future redevelopment; 2) demolishing the home if it is blighted and maintain the property in its portfolio; 3) selling the cleared site to a developer for redevelopment; or 4) rehabilitating the home and either selling it to an eligible hombuyer or to a local non profit partner as a rental property. The City will hold properties within its Vacant Lot Recycle Program. This activity will address local housing market conditions by demolishing and land banking blighted structures in high risk neighborhoods. These lots will be maintained and redeveloped as the neighborhood is stabilized and demand for rental or homeownership opportunities returns. Duration of Assistance: Assistance will be regulated by HOME Affordability Requirements to ensure long term affordability. Activity Description Tenure: Ownership and rental Rate of Interest Rate: Funding will be provided as a soft second at 0% interest. Beneficiaries: Properties will be sold to households at 120% or below of the area median income. Benefits: The demolition of blighted properties will eliminate health and safety concerns of existing neighbors, as well, as providing for the immediate aesthetic improvements that the demolition of such structures provides. In the long term it will provide for safe and decent affordable housing for low to moderate income families. New homes and gut rehabilitation projects will also be required to meet the standard for Energy Star Qualified New Homes, which will provide for continued affordability through savings in energy consumption. Page 16

The City of Pueblo will give local contractors priority rating to contractors who hire, to the maximum extent possible, workers who live in the NSP3 program area and contract with small businesses that are either owned and operated by persons residing in the vicinity of the project. A provision will be inserted in all contracts incorporating this requirement. Eligible activities are costs directly associated with deconstruction and demolition (includes utility shut off and hazardous materials testing and removal); clearance, removal and disposition of materials; site restoration (grading, seeding, curb replacement). Location Description Bessemer, Eastside URA, Westside/Downtown Source of Funding Dollar Amount Budget NSP3 $154,456 $0 (Other funding source) $0 Total Budget for Activity $154,456 Performance Measures Properties acquired estimated at 5 Projected Start Date 4/11/2011 Projected End Date 4/11/2014 Responsible Organization Name Department of Housing and Citizen Services Location 2631 E. 4 St. Pueblo, CO. 81003 Administrator Contact Info Ada Clark, Director adaclark@pueblo.us; 719 553 2850 Page 17

Activity Name Uses CDBG Activity or Activities National Objective Activity Number 4 Administration Select all that apply: Eligible Use A: Financing Mechanisms Eligible Use B: Acquisition and Rehabilitation Eligible Use C: Land Banking Eligible Use D: Demolition Eligible Use E: Redevelopment Administration General Management and Oversight as allowed under 24 CFR 570.206 N/A Activity Description Funding will provide for the administration of the NSP 3 program over a 3 year period. Staff will develop request for proposals for professional services and contractors. construction supervision; accounting and reporting to HUD. Location Description Department of Housing and Citizen Services Source of Funding Dollar Amount Budget NSP3 $146,050 HOME Investment Partnership Act $0.00 (Other funding source) $0.00 Total Budget for Activity $146,050 Performance Measures N/A Projected Start Date 4/1/2011 Projected End Date 4/1/2014 Responsible Organization Name Department of Housing and Citizen Services Location 2631 E. 4 St. Pueblo, CO. 81003 Administrator Contact Info Ada Clark, Director adaclark@pueblo.us; 719 553 2850 Page 18

2. Certifications Certifications for State and Entitlement Communities (1) Affirmatively furthering fair housing. The jurisdiction certifies that it will affirmatively further fair housing, which means that it will conduct an analysis to identify impediments to fair housing choice within the jurisdiction, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting the analysis and actions in this regard. (2) Anti displacement and relocation plan. The applicant certifies that it has in effect and is following a residential anti displacement and relocation assistance plan. (3) Anti lobbying. The jurisdiction must submit a certification with regard to compliance with restrictions on lobbying required by 24 CFR part 87, together with disclosure forms, if required by that part. (4) Authority of jurisdiction. The jurisdiction certifies that the consolidated plan or abbreviated plan, as applicable, is authorized under state and local law (as applicable) and that the jurisdiction possesses the legal authority to carry out the programs for which it is seeking funding, in accordance with applicable HUD regulations and other program requirements. (5) Consistency with plan. The jurisdiction certifies that the housing activities to be undertaken with NSP funds are consistent with its consolidated plan or abbreviated plan, as applicable. (6) Acquisition and relocation. The jurisdiction certifies that it will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (42 U.S.C. 4601), and implementing regulations at 49 CFR part 24, except as those provisions are modified by the notice for the NSP program published by HUD. (7) Section 3. The jurisdiction certifies that it will comply with section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u), and implementing regulations at 24 CFR part 135. (8) Citizen participation. The jurisdiction certifies that it is in full compliance and following a detailed citizen participation plan that satisfies the requirements of Sections 24 CFR 91.105 or 91.115, as modified by NSP requirements. (9) Following a plan. The jurisdiction certifies it is following a current consolidated plan (or Comprehensive Housing Affordability Strategy) that has been approved by HUD. [Only States and entitlement jurisdictions use this certification.] (10) Use of funds. The jurisdiction certifies that it will comply with the Dodd Frank Wall Street Reform and Consumer Protection Act and Title XII of Division A of the American Recovery and Reinvestment Act of 2009 by spending 50 percent of its grant funds within 2 years, and spending 100 percent within 3 years, of receipt of the grant. (11) The jurisdiction certifies: Page 19

a. that all of the NSP funds made available to it will be used with respect to individuals and families whose incomes do not exceed 120 percent of area median income; and b. The jurisdiction will not attempt to recover any capital costs of public improvements assisted with CDBG funds, including Section 108 loan guaranteed funds, by assessing any amount against properties owned and occupied by persons of low and moderate income, including any fee charged or assessment made as a condition of obtaining access to such public improvements. However, if NSP funds are used to pay the proportion of a fee or assessment attributable to the capital costs of public improvements (assisted in part with NSP funds) financed from other revenue sources, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. In addition, with respect to properties owned and occupied by moderate income (but not low income) families, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than NSP funds if the jurisdiction certifies that it lacks NSP or CDBG funds to cover the assessment. (12) Excessive force. The jurisdiction certifies that it has adopted and is enforcing: a. A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in nonviolent civil rights demonstrations; and b. A policy of enforcing applicable state and local laws against physically barring entrance to, or exit from, a facility or location that is the subject of such nonviolent civil rights demonstrations within its jurisdiction. (13) Compliance with anti discrimination laws. The jurisdiction certifies that the NSP grant will be conducted and administered in conformity with Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d), the Fair Housing Act (42 U.S.C. 3601 3619), and implementing regulations. (14) Compliance with lead based paint procedures. The jurisdiction certifies that its activities concerning lead based paint will comply with the requirements of part 35, subparts A, B, J, K, and R of this title. (15) Compliance with laws. The jurisdiction certifies that it will comply with applicable laws. (16) Vicinity hiring. The jurisdiction certifies that it will, to the maximum extent feasible, provide for hiring of employees that reside in the vicinity of NSP3 funded projects or contract with small businesses that are owned and operated by persons residing in the vicinity of NSP3 projects. (17) Development of affordable rental housing. The jurisdiction certifies that it will be abide by the procedures described in its NSP3 Abbreviated Plan to create preferences for the development of affordable rental housing for properties assisted with NSP3 funds. Signature/Authorized Official Date Title Page 20

Attachment 1 Mapping Submission Page 21

Page 22

Page 23

Page 24

Page 25

Page 26

Page 27

Page 28

Page 29

Page 30

Page 31

Page 32

Attachment 2 Public Comments Page 33

Appendix: NSP3 Action Plan Contents Checklist The checklist below is an optional tool for NSP3 grantees to help to ensure that all required elements of the NSP3 Substantial Amendment or the Abbreviated Plan are submitted to HUD. This checklist only includes the minimum required elements that must be included in the NSP3 Action Plan and grantees may want to add additional details. This document must be protected, as described above, in order to use the checkboxes in this checklist. 1. NSP3 Grantee Information Did you include the Program Administrator s name, address, phone, and email address? Yes 2. Areas of Greatest Need Does the narrative description describe how funds will give priority emphasis to areas of greatest need? Does the narrative description specifically address how the funds will give priority emphasis to those areas: Yes With the highest percentage of home foreclosures? With the highest percentage of homes financed by subprime mortgage related loan; and Identified by the grantee as likely to face a significant rise in the rate of home foreclosures? Did you create the area of greatest needs map at http://www.huduser.org/nsp/nsp3.html? Did you include the map as an attachment to your Action Plan? ONLY Applicable for States: Did you include the needs of all entitlement communities in the State? 3. Definitions and Descriptions Yes Are the following definitions and topics included in your substantial amendment?: Blighted structure in context of state or local law, NSP3 Application Instructions Draft 11/5/2010 Page i

Affordable rents, Ensuring long term affordability for all NSP funded housing projects, Applicable housing rehabilitation standards for NSP funded projects 4. Low Income Targeting Yes Did you identify the estimated amount of funds appropriated to provide housing that meets the low income set aside target? Did you provide a summary describing how your jurisdiction will meet its low income set aside goals? 5. Acquisition & Relocation Yes For all acquisitions that will result in displacement did you specify: The planned activity, The number of units that will result in displacement, The manner in which the grantee will comply with URA for those residents? 6. Public Comment Yes Did you provide your draft of the NSP3 substantial amendment for a minimum of 15 days for public comment? Did you include the public comments you received on the NSP3 substantial amendment in your plan? 7. NSP Information by Activity Did you include a description of all eligible NSP3 activities you plan to implement with your NSP3 award? For each eligible NSP3 activity you plan to implement did you include: Check all that apply NSP3 Application Instructions Draft 11/5/2010 Page ii

Eligible use or uses? Correlated eligible CDBG activity or activities? Associated national objective? How the activity will address local market conditions? Range of interest rates (if any)? Duration or term of assistance? Tenure of beneficiaries (e.g. rental or homeowner)? If the activity produces housing, how the design of the activity will ensure continued affordability? How you will, to the maximum extent possible, provide for vicinity hiring? Procedures used to create affordable rental housing preferences? Areas of greatest need addressed by the activity or activities? Amount of funds budgeted for the activity? Appropriate performance measures for the activity (e.g. units of housing to be acquired, rehabilitated, or demolished for the income levels represented in DRGR)? Expected start and end dates of the activity? Name and location of the entity that will carry out the activity? 8. Certifications Did you sign and submit the certification form applicable to your jurisdiction? Yes 9. Additional Documentation Did you include a signed SF 424? Yes NSP3 Application Instructions Draft 11/5/2010 Page iii

NSP3 Application Instructions Draft 11/5/2010 Page iv