Minutes 10-27-08
MINUTES OF THE PUBLIC INFORMATION MEETING ON THE
NEIGHBORHOOD STABILIZATION PROGRAM
HELD ON MONDAY, OCTOBER 27, 2008, AT 6:30 P.M.,
IN CITY COMMISSION CHAMBERS, BOYNTON BEACH, FLORIDA
PRESENT:
Octavia S. Sherrod, Community Development Manager
Quintus Greene, Director of Development
Brenda Cornelius, Affordable Housing Administrator
Debbie Reamsnyder, Administrative Assistant
I. OPENING
A.Call to Order – Octavia S. Sherrod
The meeting was called to order at 6:42 p.m. by Octavia S. Sherrod. She reported the
public information meeting was required by the United States Office of Housing and
Urban Development (HUD) for the purpose of discussing the Neighborhood Stabilization
Program recently passed by Congress.
II. Overview of the Neighborhood Stabilization Program
The City of Boynton Beach would be receiving $2.9 million to assist in the
redevelopment of abandoned and foreclosed properties in the community, to stabilize
the community and to help prevent further depreciation.
On July 30, 2008, Congress approved Public Law 110-289, Title III of the Housing and
Economic Recovery Act (HERA), which appropriated funds for emergency assistance for
the redevelopment of abandoned and foreclosed properties.
The Neighborhood Stabilization Program funds would be awarded to entitlement
communities in the form of Community Development Block Grants (CDBG), based on
each community’s local foreclosure and abandonment rates.
The City of Boynton Beach was required to obtain input from the community as to the
manner in which the $2.9 million would be expended. In order for the funds to be
accessed, it would be necessary for the City to submit an application to the Federal
Department of Housing and Urban Development (HUD) by December 1, 2008.
The Neighborhood Stabilization Program would not bail out people who were in the
foreclosure process. The basis of the program was to assist the City in purchasing
homes that had become vacant through foreclosure.
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Public Meeting Minutes
Neighborhood Stabilization Program
Boynton Beach, Florida October 27, 2008
The program would assist individuals whose incomes did not exceed 120% of the
median income, currently $66,000, for a family of four in Palm Beach County. The
program mandated the City expend at least 25% of the funds received on the purchase
of foreclosed properties to house people whose incomes were at or below 50% of the
area’s median income. A PowerPoint presentation featured a chart setting forth Palm
Beach County guidelines for very low, low and moderate income levels. Anyone
interested in receiving a copy of the chart should contact Ms. Sherrod, and she would
provide a copy.
III. Neighborhood Stabilization Program Eligible Uses
Eligible uses would include:
?Establishing financing mechanisms for purchasing and redeveloping foreclosed
homes. The mechanisms would include second mortgages and shared equity
loans for low and moderate income homebuyers.
?Purchasing and rehabilitating abandoned or foreclosed homes and residential
properties in order to sell, rent or redevelop the properties. Correlated eligible
activities would include acquisition, disposition, relocation and direct
homeownership assistance, as well as the rehabilitation and preservation of
homes and other residential properties. The City was required to provide
homeowner counseling for people wishing to purchase foreclosed properties.
?Establishing land banks for homes that had gone into foreclosure or had been
abandoned.
?Demolishing blighted structures and redeveloping vacant properties.
Once the buildings were demolished and properties became vacant, public facilities,
including parks or centers, could be constructed.
The City would work closely with community-based development organizations in order
to further assist in direct ownership and finalize the stabilization effort.
IV. Questions and Answers
Ralph Harvey, 200 Knuth Road, noted he was in the real estate and mortgage
business. His concern with the program was that the funds to be received by the City
would be used to purchase properties rather than help homeowners in need.
Additionally, it was likely the properties purchased would require additional dollars for
marketing and rehabilitation.
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Public Meeting Minutes
Neighborhood Stabilization Program
Boynton Beach, Florida
October 27,2008
Ms. Sherrod echoed Mr. Harvey's sentiments, but pointed out the City did not establish
the rules and regulations. She noted the Federal Department of Housing and Urban
Development (HUD) had assisted approximately 400,000 homeowners in rewriting their
loans in order to avoid foreclosure.
Mr. Harvey inquired whether there was any loophole or means of circumventing the
manner in which the funds had been earmarked. He presented a hypothetical scenario
pertaining to the City's purchase of blighted properties for future projects. If City Hall
were to expand and there were houses in the area in foreclosure, he contended the City
could acquire those properties for such purpose or for other development.
Ms. Sherrod pointed out Mr. Harvey's hypothetical scenario would not constitute an
eligible use of funds. The rules and regulations currently allowed the use of funds for
redevelopment or for government use. To her knowledge, the Federal Department of
Housing and Urban Development (HUD) had granted some leeway for creativity and
redevelopment. She suggested Mr. Harvey access the website, www.hud.gov, which
dealt with the stabilization program and set forth hypothetical questions and answers.
She also noted the stabilization program would be discussed by the City Commission at
its November 5, 2008 meeting.
Mr. Harvey inquired as to the hiring process for contractors, once the funding was
received and the City determined the properties would be rehabilitated. Ms. Sherrod
indicated a process was currently in place. The City accepted applications from licensed
general contractors. Specifications were prepared by the City and sent to the
contractors noted on City's the bid list.
V. Adjournment
There being no further business to discuss, the meeting properly adjourned at 6:59
p.m.
~~;L~.L CJ I-
Stephanie D. Kahn
Recording Secretary
103008
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