Agenda - Council Work Session - 05/05/2009

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I 1 CITY COUNCIL WORK SESSION Topic Report: Neighborhood Stabilization Program By: Amber G. Miller, Community Development Director Background: Anoka County has received funds as part of the Housing and Economic Recovery Act of 2008. Their allocation is approximately $2.3 million. These funds will be treated as CDBG funds requiring many of the same guidelines to be met as regular CDBG. Anoka County, along with the rest of Minnesota, has seen an increase in mortgage foreclosures over the last couple of years. Sheriff Sales have been on the rise while redemptions of mortgages have slowed. The chart below provides historical data for the past three years: Sheriff Sales Redemptions 2006 843 166 2007 1671 83 2008 2373 77 Anoka County will use federal NSP funds to create permanent housing opportunities while meeting NSP requirements and household income guidelines within the identified areas of "greatest need." Those areas have been determined by Federal Census Tract/Block groups and are outlined within the Final NSP Final Substantial Amendment (revised 12/19/08). Within the outlined areas of greatest need, Anoka County will use NSP funds to address residential housing that has been foreclosed upon and is now vacant or abandoned. Bringing housing units into compliance with health and safety requirements and addressing rehabilitation needs will be key components to stabilizing neighborhoods. Anoka County has elected to address the problem of foreclosed and vacant properties by spending NSP funds in 3 specific ways: 1. Purchase a property - if structure is beyond repair, demo it - sell property; 2. Purchase a property - rehab structure to meet health and safety codes - sell property;