§ 419.55. Phase II neighborhood revitalization program process.

The provisions of section 419.50 shall apply only to Phase I of the neighborhood revitalization program. The following provisions apply to Phase II of the neighborhood revitalization program.

(a)

Purposes; qualifying costs. Neighborhood action plans may provide for expenditure of Phase II funds for the following purposes:

(1)

To eliminate blighting influences by acquiring and clearing or rehabilitating properties that the city finds have caused or will cause a decline in the value of properties in the area or will increase the probability that properties in the area will be allowed to physically deteriorate.

(2)

To assist in the development of industrial properties that provide employment opportunities paying a livable income to the residents of the neighborhood and that will not adversely affect the overall character of the neighborhood.

(3)

To acquire, develop, construct, physically maintain, rehabilitate, renovate, or replace neighborhood commercial and retail facilities necessary to maintain neighborhood vitality.

(4)

To eliminate health hazards through the removal of hazardous waste and pollution and return of land to productive use, if the responsible party is unavailable or unable to pay for the cost.

(5)

To rehabilitate existing housing and encourage homeownership.

(6)

To construct new housing, where appropriate.

(7)

To rehabilitate and construct new low-income, affordable rental housing.

(8)

To remove vacant and boarded up houses.

(9)

To rehabilitate or construct community-based nonprofit and public facilities necessary to carry out the purpose of the neighborhood revitalization program.

(b)

Phase II funds; distribution and restrictions.

(1)

Phase II funds may only be expended in accordance with the neighborhood revitalization program.

(i)

For a purpose listed in section 419.55(a); or

(ii)

As provided in Subdivision 4 of the neighborhood revitalization program law, including the promotion of neighborhood safety and stability through community crime prevention programs and activities such as neighborhood block and police patrols, block clubs and community outreach; or

(iii)

To cover administrative costs attached to implementation of strategies contained in approved neighborhood action plans.

(2)

Phase II funds may not be used in those project areas of the city where the city determines that private investment will be sufficient to provide for development and redevelopment of the project area without public sector assistance, except in cases where Phase II funds are being used to remove or rehabilitate structurally substandard or obsolete buildings in a manner consistent with the neighborhoods' priorities as reflected in an approved neighborhood action plan.

(3)

Except as provided in the neighborhood revitalization program law, revenues derived from tax increments may only be expended for the purposes otherwise permitted by law.

(4)

A minimum of fifty-two and one-half (52.5) percent of the Phase II funds must be expended on housing programs and related purposes. Compliance with this provision shall be measured annually. The Phase II target for housing programs and related purposes shall be adjusted to accommodate for any shortfall in expenditures in Phase I such that the total expended in Phase I and Phase II for housing programs and related purposes shall be no less than fifty-two and one-half (52.5) percent.

(5)

No more than twenty (20) percent of the program dollars expended for all NRP expenditures (on an annual basis) may be used for central administrative costs.

(c)

General principles. Phase II of the neighborhood revitalization program must be developed based on the following general principles:

(1)

The social needs of neighborhood residents, particularly lower income residents, must be addressed to provide a safe and healthy environment for neighborhood residents, provide for the self-sufficiency of families, and increase the economic and social stability of neighborhoods.

(2)

The children residing in the neighborhoods must be given the opportunity for a quality education and the needs of each neighborhood must be addressed individually wherever possible.

(3)

The physical structure of the neighborhoods must be enhanced by providing safe and suitable housing and infrastructure to increase the desirability of neighborhoods as places to live.

(d)

Required program elements. Phase II of the neighborhood revitalization program must include the following:

(1)

The identification of the neighborhoods that require assistance through the program.

(2)

A strategy of the citizen participation required under this chapter.

(3)

The neighborhood action plans required under this chapter.

(4)

The activities of participating organizations undertaken to address the general principles.

(5)

An evaluation of the success of the neighborhood action plans.

(e)

Neighborhood action plans. Phase II of the neighborhood revitalization program must include the preparation and implementation of neighborhood action plans. The city must organize neighborhoods to prepare and implement the neighborhood action plans. The neighborhoods must include the participation of, whenever possible, all populations and interests in each neighborhood including renters, homeowners, people of color, business owners, representatives of neighborhood institutions, youth, and the elderly. Each neighborhood action plan must be submitted to the policy board established under this chapter and the neighborhood revitalization program law. The city will provide available resources, information, and technical assistance to prepare the neighborhood action plans.

(f)

Approval. The policy board shall review, modify where appropriate, and approve, in whole or in part, the neighborhood action plans and forward its recommendations for final action to the governing bodies represented on the policy board. The city council shall review, modify where appropriate, and give final approval, in whole or in part, to those actions over which it has programmatic jurisdiction. (2003-Or-111, § 5, 8-22-03; 2011-Or-121, § 5, 12-16-11)