From
Katherine Garcia-Thomson
Title
Ordinance authorizing the expenditure of $173,000 for the purchase and rehabilitation of a home as part of the 4-Gov Program, and authorizing the City Manager, or his designee, to enter into the associated contracts and agreements
Presenter
William A. Hills, Director, Housing and Neighborhood Services
Recommended Action
Approve
Analysis
During the major downturn in the housing market of November 4, 2008, the City Council approved the acceptance of the Neighborhood Stabilization Grant utilizing the 4-HOME and 4-GOV programs as funded by the Department of Housing and Urban Development (HUD). These programs were specifically designed to purchase and rehabilitate foreclosed properties within the City of Grand Prairie and to help stabilize property values in our community. This program also helped reduce the promulgation of vacant and deteriorating houses throughout the community.
As the housing market grew stronger through the economic recovery, fewer homes have been available for purchase through foreclosure. The 4-HOME and 4-GOV programs had been very successful but were very specific in nature, and required the funding solely be used to purchase, rehabilitate and sell these properties to families below 80% of median income.
HUD has ordered this program be closed out ASAP as the economic recovery has literally dried up the availability of homes for purchase. Staff has worked diligently to identify potential properties to make a final purchase and close out the remainder of funding we have available. Of the properties that came available for purchase as foreclosures, many were expensive or required too extensive of a rehabilitation for us to accomplish close out with the funds available.
After continued diligence in reviewing weekly the various foreclosure publications, we have been able to find a home that meets our purchase/rehabilitation criteria and can be completed with the NSP funding available. This purchase will close out the remaining available grant money from our Neighborhood Stabilization Grant and the 4-GOV Programs.
The "as is" (pre-rehabilitation) appraisal of the property was approximately $160,000. We have been able to secure the purchase of this house at $154,000. Staff estimates the post rehab appraised value of this house at approximately $180,000-$185,000. Staff is requesting that City Council approve the expenditure of $173,000 for the purchase and rehabilitation of this foreclosed home as part of the 4-GOV Program; and authorize the City Manager, or his designee, to enter into the associated contracts and agreements.
The Finance and Government Committee reviewed this item on June 6, 2017, and recommended that it be forwarded to the City Council for approval.
Financial Consideration
The requested $173,000 will be funded through the 4-GOV grant and program income resulting from the sale of properties as part of the program (AU303692 FH120).
Body
AN ORDINANCE OF THE CITY OF GRAND PRAIRIE, TEXAS, AUTHORIZING THE EXPENDITURE OF $173,000 FOR THE PURCHASE AND REHABILITATION OF A HOME AS PART OF THE 4-GOV PROGRAM; AND AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO ENTER INTO THE ASSOCIATED CONTRACTS AND AGREEMENTS
WHEREAS, on November 4, 2008, the City Council approved the acceptance of the Neighborhood Stabilization Grant utilizing the 4-HOME and 4-GOV programs; and
WHEREAS, these programs were specifically designed to purchase and rehabilitate foreclosed properties within the City of Grand Prairie and to help stabilize property values in our community; and
WHEREAS, HUD has ordered this program be closed out ASAP as the economic recovery has literally dried up the availability of homes for purchase; and
WHEREAS, staff have been able to find a home that meets our purchase/rehabilitation criteria and can be completed with the NSP funding available;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS:
SECTION 1. Authorizes the expenditure of $173,000 for the purchase and rehabilitation of a home as part of the 4-GOV Program; and
SECTION 2. Authorizes the City Manager, or his designee, to enter into the associated contracts and agreements.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, JUNE 6, 2017.