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EUGENE CITY COUNCIL <br />AGENDA ITEM SUMMARY <br /> <br /> Approval of Additional Community Development Block Grant Funds for Site <br /> Acquisition and Business Development Fund <br /> <br />Meeting Date: March 8, 2004 Agenda Item Number: 2D <br />Department: Planning and Development Staff Contact: Linda Dawson <br />www. cl. eugene, or. us Contact Telephone Number: 682-5071 <br /> <br />AGENDA ITEM SUMMARY <br />The City Council is being asked to approve the reprogramming of Community Development Block <br />Grant (CDBG) funds to purchase the northern three acres of the Westmoreland School site for future <br />low-income housing development and to provide additional job creation loans through the Business <br />Development Fund. <br /> <br />BACKGROUND <br /> <br />Council Action History <br />Annually in the spring, the City Council approves funding allocations for two Federal grant programs <br />for the upcoming fiscal year: the CDBG program and HOME Investment Partnerships Program <br />(HOME). The annual funding allocations, or One-Year Action Plans, are done in the context of the five- <br />year Housing and Urban Development Consolidated Plan. The CDBG Advisory Committee advises the <br />Planning and Development Department on the use of CDBG funds. The CDBG grant funds housing <br />rehabilitation, land acquisition for low-income housing developments, public services, non-profit capital <br />improvements, accessibility improvements, neighborhood improvements, micro-enterprise training, and <br />business development loans. The intergovernmental Housing Policy Board (HPB) recommends the use <br />of CDBG funds to acquire sites for low-income housing development and HOME funds for affordable <br />housing opportunities. <br /> <br />Policy Issues <br />U.S. Department of Housing and Urban Development (HUD) regulations require a citizen participation <br />process, including advertising and conducting a public hearing, followed by City Council action. <br /> <br />Council Goals <br />The use of CDBG funds is guided by the five-year HUD Consolidated Plan and supports Eugene as a <br />comfortable, attractive and affordable place to live and work. <br /> <br />Financial and/or Resource Considerations <br />Expending CDBG funds is a high priority in order to meet the annual HUD "timeliness test." If the test <br />is not met, future grant awards could be reduced. This test has fundamentally changed how staff and the <br />CDBG Advisory Committee approached allocations in recent years. More emphasis is being placed on <br />funding "ready to go" projects. <br /> <br /> L:\CMO\2004 Council Agendas\M040308\S0403082D.doc <br /> <br /> <br />