Item 3H: Approval of Funding for CDBG and HOME Programs

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Approval of 2008/09 Funding Allocations for Federal Community Development Block Grant, HOME Investment Partnerships and American Dream Downpayment Initiative Programs Meeting Date: April 14, 2008 Agenda Item Number: 3H Department: Planning and Development Staff Contact: Linda Dawson www.eugene-or.gov Contact Telephone Number: 682-5071 ISSUE STATEMENT The City Council is asked to approve the use of funds in three Federal programs funded by the U.S. Department of Housing and Urban Development (HUD). In 2008/09, Eugene will receive a $1,366,201 entitlement grant and $1,125,000 in program income from the Community Development Block Grant (CDBG) program; $983,079 through the HOME Investment Partnerships Program (HOME), and $7,691 in the American Dream Downpayment Initiative (ADDI) funds. BACKGROUND Annually in the spring, the City Council approves funding allocations for Federal HUD grant programs for the upcoming fiscal year starting on July 1. The City has received CDBG funds since 1975. HOME funding has been received by the Eugene-Springfield Consortium since 1992, with Eugene receiving 70% of the funds and serving as the lead agency. In 2003, the Eugene-Springfield Consortium began receiving funding through the ADDI Program. The annual funding allocations, called One-Year Action Plans, are prepared in the context of the five-year HUD Consolidated Plan. Fiscal Year 2008/09 will be the fourth year in the Consolidated Plan 2005. The CDBG Advisory Committee advises the Planning and Development Department on the use of CDBG funds. The Housing Policy Board (HPB) advises the City Council on the use of HOME and ADDI funds. Community Development Block Grant (CDBG) The Community Development Block Grant (CDBG) Advisory Committee conducted a public hearing on April 1, 2008, on the preliminary recommendation for use of funds. After the public hearing, the committee considered adding $25,000 to the original $34,000 proposed for improvements at the new Pearl Buck Center facility instead of funding accessible parking improvements at the Owen Rose Garden, as originally recommended. After much discussion and two tied votes, the committee members concluded that they were unable to make a recommendation on the use of those funds. Staff recommends that the $25,000 be used for improvements at the Pearl Buck Center since timing on the City’s participation with CDBG funds is critical for this project. Funding for the much needed improvements at the Owen Rose Garden can be sought in the future. The CDBG-AC and staff recommend the following use of CDBG funds for 2008/09. The allocation includes $1,366,201 in new grant funds and $1,125,000 in program income from the housing and F:\CMO\2008 Council Agendas\M080414\S0804143H.doc