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City of Joliet
Substantial Amendment to the 2008 Annual Action Plan of
The 2005-2009 City of Joliet Consolidated Plan
For Housing and Community Development
The City of Joliet proposes to amend the above Action Plan and Consolidated Plan for the purpose of fulfilling the application requirements to receive Neighborhood Stabilization Program (NSP) funds from the U.S. Department of Housing and Urban Development (HUD) authorized under Title III of Division B of the Housing and Economic Recovery Act of 2008 (HERA).
HERA provides that these funds shall generally be treated as Community Development Block Grant (CDBG) funds. Making proper application to HUD by December 1, 2008, will result in the City of Joliet receiving an allocation of $3,531,810.00 to be used for the redevelopment of abandoned and foreclosed homes and residential properties.
The City of Joliet also anticipates receiving program income from undertaking NSP activities, in an amount yet to be determined, which will be used for additional NSP activities as allowed under HERA. The City of Joliet may also enter into intergovernmental or subrecipient agreements with the State of Illinois, also receiving NSP funds, if such collaboration would enhance the efforts of the City of Joliet within its own areas of greatest need.
The City of Joliet has initially identified the areas of greatest need based on data received from HUD. The Substantial Amendment defines the areas of greatest need as follows: (1) Areas with the greatest percentage of home foreclosures; (2) Areas with the highest percentage of homes financed by a subprime mortgage related loan; and (3) Areas likely to face a significant rise in the rate of home foreclosures.
The NSP Program identifies five eligible uses of funding, which include: (a) Establishing financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties, including such mechanisms as soft-second mortgages, loan-loss reserves and shared-equity loans for low-and moderate-income homebuyers; (b) Purchasing and rehabilitating homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and properties; (c) Establishing land banks for homes that have been foreclosed upon; (d) Demolishing blighted structures; and (e) Redeveloping demolished or vacant properties. The City of Joliet Substantial Amendment identifies specific program activities that it may carry out and the agencies that it may partner with in carrying out these activities during the next five-year period. Twenty-five percent (25%) of the City of Joliet NSP allocation will be appropriated for housing individuals or families whose incomes do not exceed 50% of area median income.
The Substantial Amendment will be available for public review from November 1, 2008 through and including November 18, 2008 at the following locations and also on line at the City of Joliet website, www.cityofjoliet.info:
Joliet City Hall, 150 W. Jefferson St
City Clerks Office
Neighborhood Services Division
Joliet Public Library, 150 N. Ottawa St
Joliet Public Library, 3595 Black Rd
Written comments can be sent to the Neighborhood Services Division, Attn: Alfredo Melesio, 150 W. Jefferson St., Joliet, IL 60432 or by e-mail to amelesio@jolietcity.org
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