the County will use the Nsp funds to address the problem of abandoned and foreclosed properties.

Grant Amount: $50,000,000

Local Amount: $50,000,000

Grant Description: Palm Beach County submitted the Neighborhood Stabilization Program-2 application, on 07/15/2009. The proposed NSP-2 activities were approved by the Board of County Commissioners on 07/07/2009. HUD approved the application on 01/14/2010. Palm Beach County requested a total allocation of $50 million to return 247 vacant and foreclosed/abandoned residential properties to productive use, benefitting 408 LMMI households, 41% of which will have incomes at or below 50% AMI. On 02/11/2010, HUD executed the NSP-2 Agreement. NSP-2 funds will be used to implement activities under 3 of the 5 eligible uses: (A) Financing Mechanisms - $9,150,000: the County propose to provide 2nd mortgages to 143 income eligible homebuyers with AMI up to 120% (including 27 in the 0-50% income group) to subsidize acquisition of foreclosed upon S/F housing units. The purchase price per unit shall not exceed $280,000. Under (B) Purchase, Rehabilitation, and Sale of Residential Properties - $20,130,000: the County proposes to provide grants to entities located in the URA, municipalities with interlocal agreements, public agencies, and non-profit organizations to purchase and rehab, if necessary, abandoned or vacant and foreclosed residential properties in order to sell/rent/ or redevelop to provide affordable housing to approximately 101 households, including 50 in the 0-50%. Under (E) Redevelopment of demolished or vacant properties - $16,470,000: the County intends to direct funds to the area known as the Urban Redevelopment Area (URA). The URA is an approximately 25 square mile unincorporated area located in central Palm Beach County that was established in 2005 to further the County's redevelopment efforts. The remaining $4,250,000 will be used for general planning and administrative costs.

Project Description: NSP-2 funds will be used to implement activities under 3 of the 5 eligible uses: (A) Financing Mechanisms - $9,150,000: the County will administer a 2nd mortgage program to assist 143 income eligible households to acquire S/F housing units. Under (B) Purchase, Rehabilitation, and Sale of Residential Properties - $20,130,000: the County will issue a NOFA inviting entities located in the URA, municipalities with interlocal agreements, public agencies, and non-profit organizations to apply for grants to purchase and rehab, if necessary, abandoned or vacant and foreclosed residential properties in order to sell/rent/ or redevelop to provide affordable housing to approximately 101 households. Under (E) Redevelopment of demolished or vacant properties - $16,470,000: the County will issue a NOFA to direct funds to the area known as the Urban Redevelopment Area (URA), which is an area of approximately 25 square mile located in unincorporated central Palm Beach County, established in 2005 to further the County's redevelopment efforts. The remaining $4,250,000 will be used for general planning and administrative costs. This quarter staff started the preparation of program guidelines, NOFA, and applications to be used by requesters. Also, staff has been involved in identifying lending institutions willing to participate in the second mortgage program.

Job Creation: Not an objective of the program.

Infrastructure rationale: To assist those most impacted by the recession.