City of Grand Rapids
Neighborhood Stabilization Program 3
Substantial Amendment
Program Administrator Contact Information
Connie M. Bohatch, Managing Director of Community Services
300 Monroe Avenue, NW, Suite 460
Grand Rapids, MI 49503
616.456.3677
communitydev@grcity.us
Introduction
Neighborhood Stabilization Program 3 (NSP 3) funds were authorized in the Dodd-Frank Wall
Street Reform and Consumer Protection Act of 2010. States and local governments will receive
a total of $970 million to continue to assist in the redevelopment of abandoned and foreclosed
residential properties. Funds were allocated to states and units of local government under a
formula developed by the U.S. Department of Housing and Urban Development (HUD).
The City of Grand Rapids' Consolidated Housing and Community Development (HCD) Plan is a
five year planning document that establishes performance goals and guides funding allocations
for the following federal entitlement programs: Community Development Block Grant (CDBG),
HOME Investment Partnerships (HOME), and Emergency Shelter Grants (ESG). NSP 3 funding is
a special allocation of the CDBG program requiring amendment to the HCD Plan and FFY 2010
Annual Action Plan. As a result, this document serves as the City's application for NSP 3 funds.
Data Sources Used
The resources identified below were used to identify the Areas of Greatest Needs for use of
NSP 3 funds.
HUD's NSP 3 Mapping tool (http://www.huduser.org/NSP/NSP 3.html) and Planning
Data. This tool provides supplemental housing data, estimates of foreclosure need and
foreclosure related needs scores at the census tract level. The score ranks need from 1
to 20, with 20 being census tracts with the HUD-estimated greatest need. The minimum
score allowed for project areas within the State of Michigan is 17. The Area of Greatest
Needs map is included as Attachment A.
The report titled "Residential Foreclosures in Grand Rapids Neighborhoods: January 1,
2004 through September 30, 2010," prepared by the Community Research Institute at
the Johnson Center, Grand Valley State University.
The report titled “A Market Conditions and Project Evaluation Summary of Southtown
Square,” published November 4, 2010, prepared by Novogradac & Company, L.L.P.
Housing Mortgage Disclosure Act (HMDA) data, 2004-2006.
City staff knowledge regarding a significant number of geographically concentrated
properties the Michigan State Housing Development Authority (MSHDA) intends to take
possession of via deed-in-lieu of foreclosure.
Determination of Areas of Greatest Need and Applicable Tiers
Evaluation of foreclosure related needs scores at the census tract level, per HUD's NSP 3
Mapping Tool, determined the highest scores within the City are concentrated in the area
generally bounded by U.S. 131 to the west, Burton Street SE to the south, Giddings Avenue SE
to the east, and Wealthy Street SE to the north.
A review of the above-referenced report on residential foreclosures prepared by the
Community Research Institute indicates 356 of the 1,224 housing units within the Madison
neighborhood and 272 of 1,070 housing units within the neighborhood represented by the
Southeast Community Association (SECA) were foreclosed upon between January 1, 2004 and
September, 30, 2010. Both neighborhoods are subsets of the Southtown Neighborhood
Revitalization Strategy Area (NRSA). Of the medium-sized neighborhoods in Grand Rapids
(determined by number of housing units), the Madison/SECA neighborhoods had the highest
number of foreclosures from 2004-2010. It appears the Madison/SECA neighborhoods will
continue to experience a large number of foreclosures. The number of foreclosures may not
reach 2007 or 2008 levels, but an average annual foreclosure rate of 3% to 4% of the total
number of housing units is anticipated.
Housing Mortgage Disclosure Act (HMDA) data from 2004-2006 show 449 mortgage loans in
the Madison/SECA neighborhoods, 223 (50%) of which were subprime. It is reasonably
assumed the number of subprime loans increased after 2006, causing the increased number of
foreclosures in the Madison/SECA neighborhoods for 2007-2008.
It is anticipated the Michigan State Housing Development Authority (MSHDA) will soon take
possession of 133 residential units via deed-in-lieu of foreclosure. These properties, commonly
known as the Madison Square Co-op properties, are located within a fairly concentrated area in
the Southtown NRSA.
In consideration of the factors above, the area of greatest needs identified for use of NSP 3
funds represents portions of both the Madison and SECA neighborhoods and is generally
bordered by Woodlawn Street SE to the north, Paris Avenue SE to the east, Lafayette Avenue SE
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to the west, and Adams Street SE and Garden Street SE to the south. The NSP 3 foreclosure
needs score for this geographic area is 17.55. When considering the geographic area within
which all of the Madison Square Co-op properties are located, the NSP 3 score is 18.83.
Thirteen (13) of the 133 units that comprise the Madison Square Co-op portfolio are currently
vacant and boarded. The City intends to target its NSP 3 award toward the acquisition,
demolition and redevelopment of a portion of these properties. Upon completion, the units
will be available for occupancy by income-qualified households.
A tiered approach will not be used to determine the distribution of funding.
Definitions and Descriptions
Blighted Structure
Michigan Public Act 344 of 1945 defines "blighted property" as a property that meets any of the
following criteria:
(i) The property has been declared a public nuisance in accordance with a local housing,
building, plumbing, fire, or other related code or ordinance.
(ii) The property is an attractive nuisance because of physical condition or use.
(iii) The property is a fire hazard or is otherwise dangerous to the safety of persons or property.
(iv) The property has had the utilities, plumbing, heating, or sewerage disconnected, destroyed,
removed, or rendered ineffective for a period of 1 year or more so that the property is unfit for
its intended use.
(v) The property is tax reverted property owned by a municipality, by a county, or by this state.
The sale, lease, or transfer of tax reverted property by a municipality, a county, or this state
shall not result in the loss to the property of eligibility for any project authorized under this act
for the rehabilitation of a blighted area, platting authorized under this act, or tax relief or
assistance, including financial assistance, authorized under this act or any other act.
(vi) The property is owned or is under the control of a land bank fast track authority under the
land bank fast track act, 2003 PA 258, MCL 124.751 to 124.774. The sale, lease, or transfer of
the property by a land bank fast track authority shall not result in the loss to the property of
eligibility for any project authorized under this act for the rehabilitation of a blighted area,
platting authorized under this act, or tax relief or assistance, including financial assistance,
authorized under this act or any other act.
(vii) The property is improved real property that has remained vacant for 5 consecutive years
and that is not maintained in accordance with applicable local housing or property maintenance
codes or ordinances.
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(viii) The property has code violations posing a severe and immediate health or safety threat
and has not been substantially rehabilitated within 1 year after the receipt of notice to
rehabilitate from the appropriate code enforcement agency or final determination of any
appeal, whichever is later
Affordable Rents
The City of Grand Rapids will use HOME Investment Partnerships Program (HOME) monthly
rent limits for affordable rents. The High HOME rent guideline will be used for families above
50% of area median income (AMI). High HOME rents are the lesser of the HUD Fair Market
Rent (FMR) or 30% of the adjusted income of a family whose annual income is 65% of AMI.
Low HOME rent guidelines will be used for families at or below 50% AMI. Low HOME rents are
based on the rent not exceeding 30% of a family’s annual income.
Monthly Rent Limits (Contract Rent plus Tenant Paid Utilities)
Bedrooms
0-BR
1-BR
2-BR
3-BR
4-BR
5-BR
High HOME
$583 $622 $749 $956 $1003 $1,153
Rent*
Low HOME Rent* $547 $586 $703 $820
$906
$1,009
*Effective May 14, 2010
Long-Term Affordability
In general, rental units will be subject to the affordability requirements set forth in the HOME
regulations at 24 CFR 92.254 and 24 CFR 92.252. The City may use deed restrictions to address
long-term affordability in response to specific market conditions and community needs.
Housing units will be redeveloped using energy efficiency and water conservation methods to
provide continuing affordability through lower utility expenses. Affordability requirements (i.e.,
compliance with HOME rent limits) will be enforced through the use of contractual provisions,
mortgages, promissory notes and covenants running with the land. Additionally, HOME period
of affordability standards will be used which will be based on per unit investment of NSP funds.
The affordability period for newly constructed rental housing is 20 years.
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Housing Rehabilitation Standards
New Construction Standards
Workmanship will meet or exceed industry standards. Materials will be medium or better
quality, and installed in accordance with the manufacturers installation/application guidelines.
Work will meet or exceed the requirements of all applicable codes and regulations. Energy
efficiency and water conservation improvements will be incorporated.
Energy Efficiency and Water Conservation Requirements
The following minimum energy efficiency and water conservation improvements shall be made
to the property:
The installation of a high efficiency furnace. Units relying on forced air space heating
will have a 95%+ efficiency rated furnace. Units relying on hot water space heating will
have a boiler with an AFUE efficiency rating of 95%+. Systems will be equipped with
automatic set-back thermostats.
Attic insulation with ventilation with minimum R value of 49. Ventilation will meet
current code and be split between low intake and high outlet. The split will be between
50/50 and 60/40 (Low/High). Appropriate baffles will be installed to allow free flow of
air.
Exterior sidewall insulation. Exterior wall cavities will be blown full.
Rim joist insulation will be foam sealed with a minimum of R19 insulation.
Outlet/switchbox insulation will be installed on such openings in exterior walls.
Pipe insulation will be installed on hot water pipes exposed in crawlspaces.
The installation of a high efficiency water heater.
New light fixtures will be Energy Star compliant.
Windows will be Energy Star rated.
Crawl space insulation: Crawl space sidewalls will be insulated 1” foam. A 6 mil plastic
sheeting vapor barrier will be placed on the ground and secured to the walls prior to
placing foam.
The property will achieve a Five (5) Star Energy Rating as evidenced by the Home Energy
Rating System (HERS), using a certified HERS rater.
Lead-based Paint Requirements
Perimeter soil shall be roto-tilled, compacted, and covered with landscape cloth. A 6” deep
covering of bark, chips or rock will be laid on top. Perimeter soil to be abated shall be buried on
site and covered with new poured concrete driveway, parking pad, or patio. Clean soil from the
site shall be placed in the excavation, topped off with new topsoil, seed, and straw.
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Low-Income Targeting
An estimated $501,816 will be used for activities to benefit individuals and families whose
incomes do not exceed 50% of the area median income. This represents approximately 36% of
the total NSP 3 award.
The City will rely on a development partner(s), to be identified via a Request for Qualifications
or Request for Proposals, to advertise, recruit, and retain individuals and families whose
incomes do not exceed 50% of the area median income to reside in properties developed with
NSP 3 funds. As deemed appropriate, the City and/or its development partner(s) will
coordinate with other organizations such as the Grand Rapids Coalition to End Homelessness,
the local Continuum of Care; the Salvation Army's Housing Assessment Program, and housing
providers that use the Housing First approach to service delivery.
Acquisition and Relocation
Demolition or Conversion of LMI Units
The City intends to facilitate the demolition of approximately seven (7) dwelling units that are
currently vacant and boarded. No displacement will occur.
Public Comment
A 15-day comment period on the draft NSP 3 plan was held from Januaray 26, 2011 to February
9, 2011 and a public hearing was held before the City Commission on February 8, 2011. In
addition to public notices in the Grand Rapids Press (daily general circulation paper), the Grand
Rapids Times (an African American weekly paper), and El Vocero Hispano (a Hispanic weekly
paper), an email notification of the comment opportunity was offered to all current City
Subrecipients, Developers, and other known interested parties. Public comment was not
received.
Vicinity Hiring
Contractors using NSP 3 funds will be required to meet Section 3 requirements. Per the City of
Grand Rapids’ Section 3 Guidelines, training, employment and contracting opportunities will
occur based on the priorities cited below. For the purposes of NSP 3, HUD defines “vicinity” as
the area of greatest needs. The first and second priorities address HUD’s definition of “vicinity
hiring”.
First Priority: Low- and very low-income residents of the development where the work is
to be performed.
Second Priority: Low- and very low-income residents living in the target neighborhood
(which is determined by the location of the project).
Third Priority: Low- and very low-income residents living in the City of Grand Rapids.
Fourth Priority: Low- and very-low income residents living in the Grand Rapids
metropolitan area.
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Market Analysis
The severity of the housing and economic crisis is evident in the Madison/SECA neighborhoods.
Twenty-seven percent (27%) of the residential properties in the neighborhoods were foreclosed
upon in the last seven (7) years. This grim reality, coupled with the statistics below from NSP 3
Planning Data, suggests the implementation of an affordable rental housing program in the
Madison/SECA neighborhoods with NSP 3 funds versus for-sale housing efforts:
High subprime lending rates,
Unemployment above 14%,
Residential property vacancy rate of 16%,
Area population below 80% area median income is 79%, and
Area population below 120% area median income is 94%.
A report was prepared by Novogradac & Company, L.L.P., in late 2010 to study the rental
market in Grand Rapids for a Low-Income Housing Tax Credit (LIHTC) project known as
Southtown Square. This report, generated for the Michigan State Housing Development
Authority, is pertinent due to similarities in planned use, populations to be served, and
geography shared between the Southtown Square Project and the proposed use of NSP 3
funds.
The report identifies the primary market area (PMA) for the Southtown Square Project as the
core area from which potential tenants are most likely to be drawn to high-quality, affordable
housing. This area includes Fulton Street to the north, Plymouth Avenue to the east, 28 th Street
to the south, and Burlingame Avenue to the west. The PMA has approximately 11,987 total
rental units, of which a significant portion are in below-average condition. Only 2,198 (18%) of
these units are currently available below market rental rates.
The report demonstrates a strong demand for affordable rental housing as only 3.8% of existing
affordable units in the PMA are vacant. Standard turnover is cited as the key cause of vacancy.
In comparison, 8.5% of comparable market rate rental units in the PMA are vacant. A survey of
affordable rental housing developments in the area demonstrated an ongoing demand for
affordable quality rental units, as evidenced by high occupancy rates and waiting lists.
Given the above information, the area of greatest needs can be characterized as having
moderate to strong market demand for affordable rental housing and a moderate supply of
NSP-eligible properties. In congruence with this proposal, HUD NSP 3 program design guidance
prescribes consideration and/or implementation of the following activities for such areas:
Tight geographical targeting and spot demolitions,
Area may be promising market for rental development, and
A focus on “mini-target areas” located near anchors and areas where redevelopment is
already targeted.
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NSP Information by Activity
Through the NSP 3 program, the City of Grand Rapids will assist in preserving neighborhood
property values, protecting previous investments, and encouraging additional public and
private investment. The City's approach considers the "triple bottom line" in stabilizing a
neighborhood hardest hit by foreclosure. Specifically, the environment, the economy and
social equity will be addressed through redevelopment of foreclosed or abandoned residential
properties that increase housing affordability, employment opportunities, and investment from
public and private resources.
The City of Grand Rapids' NSP 3 award is $1,378,788. The following table identifies planned use
of funds.
Activity
Planned Units
Grant Amount
Acquisition/Reconstruction
(Eligible Use B)
7
$1,200,910
Demolition
(Eligible Use D)
7
$40,000
Administration
$137,878
TOTAL
$1,378,788
The acquisition and demolition of seven (7) vacant and boarded properties with the resulting
land redeveloped into approximately seven units of affordable rental housing is proposed.
Upon completion, all of the units will be affordable to households with income at or below
120% of the area median income, with at least three (3) of the units affordable to households
at or below 50% of the area median income. The following chart reflects current income
eligibility.
Income Eligibility Limits
Household
50% of Area
120% of Area
Size
Median Income Median Income
1
$21,900
$52,500
2
25,000
60,000
3
28,150
67,500
4
31,250
75,000
5
33,750
81,000
6
36,250
87,000
7
38,750
93,000
8
41,250
99,000
The City of Grand Rapids Community Development Department will be responsible for
implementing program activities in partnership with one or more Community Housing
Development Organizations currently working with the City, or other nonprofit or for-profit
housing developers. Up to 100% financing will be provided for acquisition, demolition, and
redevelopment activities at an interest rate of 0%. Further information regarding individual
program activities is detailed below.
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Activity Number 1
Acquisition and redevelopment of abandoned or foreclosed properties
Select all that apply:
Eligible Use A: Financing Mechanisms
Eligible Use B: Acquisition and Reconstruction
Uses
Eligible Use C: Land Banking
Eligible Use D: Demolition
Eligible Use E: Redevelopment
24 CFR 570.201(a) Acquisition,
(b) Disposition,
(c) Public facilities and improvements,
(e) Public services for housing counseling, but only to the extent that
counseling beneficiaries are limited to prospective purchasers or tenants of
the redeveloped properties,
(i) Relocation, and
CDBG Activity or
(n) Direct homeownership assistance.
Activities
24 CFR 570.202 Eligible rehabilitation and preservation activities for
demolished or vacant properties.
24 CFR 570.204 Community based development organizations.
HUD notes that any of the activities listed above may include required
homebuyer counseling as an activity delivery cost.
New construction of housing is eligible as part of the redevelopment of
demolished or vacant properties.
National Objective
Low Moderate Middle Income Housing
This activity involves the acquisition and reconstruction of residential
properties that are abandoned or foreclosed upon. This activity will address
local housing market conditions by removing blighted properties that are a
Activity Description
detriment to the neighborhood. Properties to be acquired will be selected by
the City and acquired/reconstructed by a developer into high-quality,
affordable rental housing for occupancy by income-qualified renters.
Location Description
Southtown Neighborhood Revitalization Strategy Area (NRSA)
Source of Funding
Dollar Amount
NSP 3
$715,270
Budget
(Other funding source)
$
(Other funding source)
$
Total Budget for Activity
$715,270
Number of units acquired.
Performance Measures Number of rental units constructed for occupancy by low-moderate- and
middle-income (LMMI) households.
Projected Start Date
5/1/2011
Projected End Date
4/30/2014
Name
City of Grand Rapids
Location
300 Monroe Avenue, NW, Suite 460
Responsible
Grand Rapids, MI 49503
Organization
Administrator Contact Info
Connie M. Bohatch
616.456.3677
cbohatch@grcity.us
Activity Name
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Activity Number 2
Acquisition and redevelopment of abandoned or foreclosed properties
Select all that apply:
Eligible Use A: Financing Mechanisms
Eligible Use B: Acquisition and Reconstruction
Uses
Eligible Use C: Land Banking
Eligible Use D: Demolition
Eligible Use E: Redevelopment
24 CFR 570.201(a) Acquisition,
(b) Disposition,
(c) Public facilities and improvements,
(e) Public services for housing counseling, but only to the extent that
counseling beneficiaries are limited to prospective purchasers or tenants of
the redeveloped properties,
(i) Relocation, and
CDBG Activity or
(n) Direct homeownership assistance.
Activities
24 CFR 570.202 Eligible rehabilitation and preservation activities for
demolished or vacant properties.
24 CFR 570.204 Community based development organizations.
HUD notes that any of the activities listed above may include required
homebuyer counseling as an activity delivery cost.
New construction of housing is eligible as part of the redevelopment of
demolished or vacant properties.
National Objective
Low-Income Housing to Meet 25% Set-Aside (LH 25)
This activity involves the acquisition and reconstruction of residential
properties that are abandoned or foreclosed upon. This activity will address
local housing market conditions by removing blighted properties that are a
Activity Description
detriment to the neighborhood. Properties to be acquired will be selected by
the City and acquired/reconstructed by a developer into high-quality,
affordable rental housing for occupancy by income-qualified renters.
Location Description
Southtown Neighborhood Revitalization Strategy Area (NRSA)
Source of Funding
Dollar Amount
NSP 3
$485,640
Budget
(Other funding source)
$
(Other funding source)
$
Total Budget for Activity
$485,640
Number of units acquired.
Performance Measures Number of rental units constructed for occupancy by low-income (LH 25)
households.
Projected Start Date
5/1/2011
Projected End Date
4/30/2014
Name
City of Grand Rapids
Location
300 Monroe Avenue, NW, Suite 460
Responsible
Grand Rapids, MI 49503
Organization
Administrator Contact Info
Connie M. Bohatch
616.456.3677
cbohatch@grcity.us
Activity Name
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Activity Name
Use
CDBG Activity or
Activities
National Objective
Activity Description
Location Description
Activity Number 3
Demolish (deconstruct) blighted structures
Select all that apply:
Eligible Use A: Financing Mechanisms
Eligible Use B: Acquisition and Reconstruction
Eligible Use C: Land Banking
Eligible Use D: Demolition
Eligible Use E: Redevelopment
24 CFR 570.201(d) Clearance for blighted structures only.
Low Moderate Middle Income Housing
This activity involves demolition of blighted structures.
Southtown Neighborhood Revitalization Strategy Area (NRSA)
Source of Funding
Dollar Amount
NSP 3
$23,824
Budget
(Other funding source)
$
(Other funding source)
$
Total Budget for Activity
$23,824
Performance Measures Number of housing units demolished
Projected Start Date
1/1/2012
Projected End Date
6/30/2012
Name
City of Grand Rapids
Location
300 Monroe Avenue, NW, Suite 460
Responsible
Grand Rapids, MI 49503
Organization
Administrator Contact Info
Connie M. Bohatch
616.456.3677
cbohatch@grcity.us
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Activity Name
Use
CDBG Activity or
Activities
National Objective
Activity Description
Location Description
Activity Number 4
Demolish (deconstruct) blighted structures
Select all that apply:
Eligible Use A: Financing Mechanisms
Eligible Use B: Acquisition and Reconstruction
Eligible Use C: Land Banking
Eligible Use D: Demolition
Eligible Use E: Redevelopment
24 CFR 570.201(d) Clearance for blighted structures only.
Low-Income Housing to Meet 25% Set-Aside (LH 25)
This activity involves demolition of blighted structures.
Southtown Neighborhood Revitalization Strategy Area (NRSA)
Source of Funding
Dollar Amount
NSP 3
$16,176
Budget
(Other funding source)
$
(Other funding source)
$
Total Budget for Activity
$16,176
Performance Measures Number of housing units demolished
Projected Start Date
1/1/2012
Projected End Date
6/30/2012
Name
City of Grand Rapids
Location
300 Monroe Avenue, NW, Suite 460
Responsible
Grand Rapids, MI 49503
Organization
Administrator Contact Info
Connie M. Bohatch
616.456.3677
cbohatch@grcity.us
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Certifications
Certifications for State and Entitlement Communities
(1) Affirmatively furthering fair housing. The jurisdiction certifies that it will affirmatively further fair
housing, which means that it will conduct an analysis to identify impediments to fair housing choice
within the jurisdiction, take appropriate actions to overcome the effects of any impediments identified
through that analysis, and maintain records reflecting the analysis and actions in this regard.
(2) Anti-displacement and relocation plan. The applicant certifies that it has in effect and is following a
residential anti-displacement and relocation assistance plan.
(3) Anti-lobbying. The jurisdiction must submit a certification with regard to compliance with
restrictions on lobbying required by 24 CFR part 87, together with disclosure forms, if required by that
part.
(4) Authority of jurisdiction. The jurisdiction certifies that the consolidated plan or abbreviated plan, as
applicable, is authorized under state and local law (as applicable) and that the jurisdiction possesses the
legal authority to carry out the programs for which it is seeking funding, in accordance with applicable
HUD regulations and other program requirements.
(5) Consistency with plan. The jurisdiction certifies that the housing activities to be undertaken with NSP
funds are consistent with its consolidated plan or abbreviated plan, as applicable.
(6) Acquisition and relocation. The jurisdiction certifies that it will comply with the acquisition and
relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act
of 1970, as amended (42 U.S.C. 4601), and implementing regulations at 49 CFR part 24, except as those
provisions are modified by the notice for the NSP program published by HUD.
(7) Section 3. The jurisdiction certifies that it will comply with section 3 of the Housing and Urban
Development Act of 1968 (12 U.S.C. 1701u), and implementing regulations at 24 CFR part 135.
(8) Citizen participation. The jurisdiction certifies that it is in full compliance and following a detailed
citizen participation plan that satisfies the requirements of Sections 24 CFR 91.105 or 91.115, as
modified by NSP requirements.
(9) Following a plan. The jurisdiction certifies it is following a current consolidated plan (or
Comprehensive Housing Affordability Strategy) that has been approved by HUD. [Only States and
entitlement jurisdictions use this certification.]
(10) Use of funds. The jurisdiction certifies that it will comply with the Dodd-Frank Wall Street Reform
and Consumer Protection Act and Title XII of Division A of the American Recovery and Reinvestment Act
of 2009 by spending 50 percent of its grant funds within 2 years, and spending 100 percent within 3
years, of receipt of the grant.
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(11) The jurisdiction certifies:
a. that all of the NSP funds made available to it will be used with respect to individuals and families
whose incomes do not exceed 120 percent of area median income; and
b. The jurisdiction will not attempt to recover any capital costs of public improvements assisted
with CDBG funds, including Section 108 loan guaranteed funds, by assessing any amount against
properties owned and occupied by persons of low- and moderate-income, including any fee
charged or assessment made as a condition of obtaining access to such public improvements.
However, if NSP funds are used to pay the proportion of a fee or assessment attributable to the
capital costs of public improvements (assisted in part with NSP funds) financed from other
revenue sources, an assessment or charge may be made against the property with respect to
the public improvements financed by a source other than CDBG funds. In addition, with respect
to properties owned and occupied by moderate-income (but not low-income) families, an
assessment or charge may be made against the property with respect to the public
improvements financed by a source other than NSP funds if the jurisdiction certifies that it lacks
NSP or CDBG funds to cover the assessment.
(12) Excessive force. The jurisdiction certifies that it has adopted and is enforcing:
a. A policy prohibiting the use of excessive force by law enforcement agencies within its
jurisdiction against any individuals engaged in nonviolent civil rights demonstrations; and
b. A policy of enforcing applicable state and local laws against physically barring entrance to, or
exit from, a facility or location that is the subject of such nonviolent civil rights demonstrations
within its jurisdiction.
(13) Compliance with anti-discrimination laws. The jurisdiction certifies that the NSP 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.
(14) Compliance with lead-based paint procedures. The jurisdiction certifies that its activities
concerning lead-based paint will comply with the requirements of part 35, subparts A, B, J, K, and R of
this title.
(15) Compliance with laws. The jurisdiction certifies that it will comply with applicable laws.
(16) Vicinity hiring. The jurisdiction certifies that it will, to the maximum extent feasible, provide for
hiring of employees that reside in the vicinity of NSP 3 funded projects or contract with small businesses
that are owned and operated by persons residing in the vicinity of NSP 3 projects.
(17) Development of affordable rental housing. The jurisdiction certifies that it will be abide by the
procedures described in its NSP 3 Abbreviated Plan to create preferences for the development of
affordable rental housing for properties assisted with NSP 3 funds.
_________________________________
Signature/Authorized Official
_____________
Date
___________________
Title
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