DISCLAIMER

07-0436R


RESOLUTION AUTHORIZING AN AMENDMENT TO THE 2006 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM AGREEMENT WITH NEIGHBORHOOD HOUSING SERVICES OF DULUTH (NHS) EXTENDING THE TERM OF THE AGREEMENT FOR SIX MONTHS.

BY COUNCILOR STAUBER:

     RESOLVED, that the proper city officials are hereby authorized to enter into an amendment, substantially in the form of that on file in the office of the city clerk as Public Document No. ____________, to the 2006 community development block grant agreement with Neighborhood Housing Services of Duluth (NHS) extending the term of the agreement to December 31, 2007, at no change in project compensation under the terms of the agreement.


STATEMENT OF PURPOSE:  The purpose of this resolution is to authorize an amendment extending the term of the 2006 city community development block grant agreement with Neighborhood Housing Services from June 30, 2007, to December 31, 2007. NHS is requesting an extension in order to provide rehab services to units for which NHS has committed 2006 CDBG rehab funds.


NHS has five 2006 rehab project commitments with anticipated completion in November 2007. The goal for the 2006 contract is 12 purchase/rehab projects and one conventional rehab project (total of 13 units). As indicated in the contract extension request letter, NHS attributes the slow rehab construction start in part to staff changes and to a substantial revamping of the NHS single family rehabilitation program required in order for NHS to become compliant with HUD regulations.


Status of 2005 NHS CDBG contract (April 1, 2005, through September 30, 2006):

     Goal: 18 units

     Completions: 15 units

     Projects yet to complete: 3 units