#05 Authorize City Manager to enter agreement for Neighborhood Stabilization 3 Program
NEIGHBORHOOD SERVICES MEMORANDUM
June 1, 2011
TO: City Council
FROM: Jennifer Petruzzello, Neighborhood Services Director
SUBJECT: Authorization for the City Manager to Enter Into a Mutual
Cooperation Agreement between the City of Janesville and the City
of Beloit for the Neighborhood Stabilization 3 Program.
Summary
The State of Wisconsin has awarded the Rock County Consortium a total of
$1,293,000 in Neighborhood Stabilization Program 3 (NSP3) funding to purchase
foreclosed or abandoned homes; and rehabilitate, resell or redevelop these
homes in order to stabilize neighborhoods and stem the decline in values of
neighboring homes. Under the proposed mutual cooperation agreement with the
City of Beloit, a total of $637,250 will be available to the City of Janesville to
purchase and rehabilitate five homes, redevelop one vacant property with a
newly constructed home, and provide down payment assistance.
Department Recommendation
The Neighborhood Services Department recommends that the Council authorize
the City Manager to enter into the attached Mutual Cooperation Agreement for
the Neighborhood Stabilization 3 Program between the City of Beloit and the City
of Janesville. This agreement will allow for federal grant dollars, administered by
the State of Wisconsin, to be obtained to help stabilize the housing market in
Census Tract 3.
City Manager Recommendation
The City Manager recommends approval.
Suggested Motion
I move to authorize the City Manager to enter into a Mutual Cooperation
Agreement between the City of Janesville and the City of Beloit under the
Neighborhood Stabilization 3 Program.
Background
In 2009, the Rock County Consortium was awarded $1,930,275 in funding under
the Neighborhood Stabilization Grant Program. Of this total, the City of Janesville
will receive $1,189,865. To date, the City of Janesville has purchased 12 vacant
foreclosed properties under this program. Seven of these homes are being
rehabilitated and five of the homes were demolished for future redevelopment
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purposes. A final home was donated by a bank to Community Action and is being
rehabilitated with Neighborhood Stabilization funds.
In February 2011, the City Council authorized staff to apply for additional funding
under the Neighborhood Stabilization Grant 3 program grant through the State of
Wisconsin Department of Commerce. This program allows municipalities and
qualified non-profit organizations to acquire foreclosed properties for the purpose
of rehabilitation, redevelopment, or demolition.
Under the NSP 3 consortium, the City of Beloit will serve as the Representative
Member (Lead Agency) and shall assume responsibility for ensuring the
Consortium’s NSP Program is carried out in compliance with the State and
Federal Program. The Beloit Common Council has approved the proposed
mutual cooperation agreement. The City of Janesville will continue to be
responsible for administering the program within the City of Janesville
boundaries.
Under the NSP 3 Consortium, the City of Janesville will receive 49% of grant
funding; the City of Beloit will receive 51% of funding. This original allocation was
determined by the State of Wisconsin Department of Commerce based upon the
respective need and proposed activities in each of the eligible census tracts.
The City of Janesville will receive $600,000 in housing funds and $37,250 in
administrative funds for this program. Through a collaboration with Wisconsin
Partnership for Housing Development, this level of funding should allow for the
rehabilitation of five single family homes, the construction of one new home, and
the provision of down payment and closing cost assistance. All activities assisted
must benefit low to moderate income households, which include individuals at
80% of the adjusted median income or below. At least 30% of the total grant
funding must benefit households with incomes ≤50% of median income. Fifty
percent of all grant funds must be expended by 12/31/2012 and 100% of grant
funds must be expended by 12/31/2013.
Analysis
Wisconsin State Statutes allow intergovernmental agreements, such as
that being proposed here.
The City of Beloit and City of Janesville have established a good working
relationship through the current implementation of the Neighborhood
Stabilization 1 Program.
The cooperation agreement is consistent with other joint efforts between
the City of Beloit and the City of Janesville, including the Rock County
HOME Consortium.
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The City of Beloit has staff who are knowledgeable in the CDBG and
HOME programs and who have the experience necessary to ensure the
consortium program is in compliance with the State and Federal
Requirements.
This agreement is consistent with that which is currently in place for the
Neighborhood Stabilization Program. The City of Janesville will continue to
be responsible for managing the program within the City limits.
The funding allocation was determined by the State based upon the need
and proposed activities in each of the eligible census tracts.
Entering into the cooperative agreement will facilitate the sharing of
information between the participating jurisdictions, which should in turn
simply program administration.
Participation in a cooperative agreement will simplify program monitoring
for the State of Wisconsin and is a condition of their approval for NSP3
funding.
cc: Eric J. Levitt, City Manager
Jay Winzenz, Director of Administration / Assistant City Manager
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MUTUAL COOPERATION AGREEMENT
UNDER THE
NATIONAL NEIGHBORHOOD STABLIZATION PROGRAM
Federal Fiscal Years 2011-2013
This agreement entered into among the City of Janesville, a Wisconsin Municipal Corporation
and the City of Beloit, a Wisconsin Municipal Corporation. Collectively referred to herein as the
“Consortium”
WHEREAS, the Neighborhood Stabilization Program (hereinafter called WNSP 3 Program) is
authorized under Title III of Division B of the Housing and Economic Recovery Act (HERA),
2008 (Pub. L. 110-289, approved July 30, 2008) for emergency assistance for redevelopment of
abandoned and foreclosed homes and residential properties; and
WHEREAS, Section 66.0301 of the Wisconsin Statutes authorizes intergovernmental
agreements; and
WHEREAS, the parties are mutually developing a plan to utilize the WNSP 3 program; and
WHEREAS, the parties have determined that obtaining funds under the WNSP 3 program will
increase their ability to redevelop neighborhoods negatively impacted by foreclosures;
NOW THEREFORE, for good and valuable consideration the parties do agree and covenant as
follows:
SECTION 1. DEFINITIONS
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a.“Member” The City of Beloit and the City of Janesville.
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b.“Administrative Member” The Cities of Beloit and Janesville.
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c.“Representative Member” The City of Beloit shall be the Representative Member and
shall assume the responsibility for ensuring that the Consortium’s WNSP 3 program is
carried out in compliance with the requirements of the WNSP 3 program.
SECTION 2. FUNDING
Funds for the Consortium will be distributed as follows:
a.$655,750 Fifty-one percent (51%) of the funds shall be reserved for specific activities or
projects administered by the City of Beloit.
b.$637,250 Forty-nine percent (49%) of the funds shall be reserved for specific activities or
projects administered by the City of Janesville.
c.The above allocation of funds will be reexamined and adjust on or about January 1, 2012
of this agreement based on each member’s ability to effectively use the available funding.
SECTION 3. ACTIVITIES
a.Each member shall cooperate in undertaking, or assist in undertaking, eligible WNSP 3
program activities in compliance with the regulations in the National Stabilization
Program authorized under Title III of Division B of the Housing and Economic Recovery
Act.
b.Each member shall implement affirmative action to further fair housing in their
jurisdictions consistent with the requirements of this Program. Such actions may include
planning, education and outreach, and enforcement components.
SECTION 4. ADMINISTRATION
a.The City of Beloit shall be the Representative Member and shall carry out necessary
administrative
overall responsibilities for the Consortium, with the cooperation of all
members
, consistent with the WNSP 3 program regulations. The City of Beloit will
administer the WNSP 3 program within the municipal boundaries of the City of Beloit.
b.The City of Janesville will administer the WNSP 3 program within the municipal
boundaries of the City of Janesville.
c.Each Administrative Member shall submit in a timely manner to the Representative
Member all information necessary for participation in the Consortium. This includes, but
is not limited to, written agreements executed with subrecipients, and performance
reports.
d.Each Administrative Member of the Consortium shall start its WNSP 3 program years on
January 1 except in 2011 where the WNSP 3 program year shall begin upon the date of
execution of this agreement.
SECTION 5. AMENDMENT, WAIVER
No amendment or waiver of any provisions of this Agreement shall be effective unless the same
shall be in writing, approved and signed by the legal authority of the Administrative Members.
SECTION 6. ENTIRE AGREEMENT
This Agreement embodies the entire agreement and understanding of the parties hereto with
respect to the subject matter herein and supersedes all prior agreements and understandings of
the parties hereto relating to the subject matter herein.
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SECTION 7. CONFLICTING AGREEMENT
In case of any conflict between this Agreement and any other document, this Agreement shall
control.
SECTION 8. ARBITRATION
In the event that the parties are unable to agree with respect to any action to be taken pursuant to
this Agreement, and or any matter or issue arising under this Agreement, then any of the parties
may elect to submit the issue to arbitration in accordance with Chapter 788, Wisconsin Statutes.
Each party will be responsible for their own costs for legal representation. Any costs for the
arbitrator involved in said arbitration will be borne equally by the parties involved, regardless of
the final determination.
SECTION 9. LIMITATION OF LIABILITY
None of the parties to this Agreement shall be liable to the other parties for any action or failure
to act or any error of judgment, negligence, mistakes, or oversight whatsoever on the part of such
party or such party’s agents, officers, or employees with respect to any transaction relating to the
Agreement, provided that such party has acted in good faith and has not been guilty of gross
negligence or willful misconduct.
SECTION 10. COMPLIANCE WITH ANTI-DISCRIMINATION LAWS
The WNSP 3 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.
SECTION 11. COMPLIANCE WITH LEAD-BASED PAINT PROCEEDURES
The activities concerning lead-based paint will comply with all applicable laws, regulations, and
ordinances.
SECTION 12. DURATION OF THIS AGREEMENT
This Agreement, approved this _________day of _______________, 2011, shall be in force for
the time necessary to complete WNSP 3 activities funded from federal fiscal years 2011, 2012,
and 2013. It shall terminate when all WNSP 3 Program funds for said years are expended or are
permanently withdrawn by the U.S. Department of Housing and Urban Development. The
members shall remain in the Consortium and not end their participation in it until the time of
termination.
The undersigned represent that they are fully authorized under State and local law to enter this
agreement and that the Agreement provides full legal authority for the signatory parties to
undertake or assist in undertaking WNSP Consortium activities.
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CITY OF JANESVILLE
By:
Eric Levitt, City Manager Date
By: __________________________________________
Jean Wulf, City Clerk-Treasurer Date
Approved as to form:
By: 06/01/2011
Wald Klimczyk, City Attorney Date
CITY OF BELOIT
By:
Larry N. Arft, City Manager Date
By: __________________________________________
Rebecca S. Houseman, City Clerk Date
By: __________________________________________
Paul York, City Comptroller Date
Approved as to form:
By:
Thomas Casper, City Attorney Date
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