City of Alexandria, Virginia
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MEMORANDUM
DATE: MARCH 23, 2016
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
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Consideration of a Budget Transfer of $350,000 in Community Development Block Grant (CDBG) Monies to Rebuilding Together Alexandria and $30,000 in Neighborhood Stabilization Program Deliverable Fees to Support the Alexandria Neighborhood Stabilization Program.
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ISSUE: Consideration of the allocation of up to $350,000 in Community Development Block Grant (CDBG) Program funds to Rebuilding Together Alexandria (RTA) and the use of $30,000 in Neighborhood Stabilization Program (NSP) Program Deliverable revenues to support the Alexandria Neighborhood Stabilization Program (NSP).
RECOMMENDATION: That City Council:
1) Approve a budget transfer of $350,000 from the Home Rehabilitation Loan Program (CDBG) to support RTA's Alexandria Neighborhood Stabilization Program (ANSP);
2) Authorize the City Manager to execute an amendment to an existing loan agreement with RTA to allocate up to $350,000 in CDBG funds to be used for ANSP property acquisitions with all sales proceeds to be repaid to the City upon sales of the acquired homes; and
3) Authorize use of $30,000 in NSP program deliverable revenues to fund interest payments related to ANSP acquisitions made by RTA using a line of credit.
BACKGROUND: The City's NSP and ANSP take advantage of distressed property sale opportunities, such as foreclosures and short sales to make homebuying affordable for low and moderate income first-time homebuyers. Since 2009, a total of 25 units have been purchased, renovated, and resold through the NSP and ANSP initiatives. Following the model of the City's highly successful federally-funded NSP, in 2013 City Council approved the creation of the ANSP through an allocation of federal CDBG a...
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