Item 3C: Funding Allocations for CDBG, HOME and ADDI Programs

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Approval of 2007-08 Funding Allocations for Federal Community Development Block Grant, HOME Investment Partnerships Program and American Dream Downpayment InitiativePrograms Meeting Date: April 9, 2007 Agenda Item Number: 3C 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 Department of Housing and Urban Development (HUD). In 2007-08, Eugene will receive $1,415,794, plus $1,435,000 in program income, and $233,000 in prior year’s entitlement funds from the Community Development Block Grant (CDBG), $1,016,193 through the HOME Investment Partnerships Program (HOME), and $19,037 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 done in the context of the five-year HUD Consolidated Plan. Fiscal Year 2007-08 will be the third 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 4, 2007, and recommends use of CDBG funds for 2007-08 as outlined below. The allocation includes $1,415,794 in new grant funds, $1,435,000 in program income from the housing and business loan programs, $200,000 from sale of landbanked sites, and $233,000 in prior years funds. The amount of new grant dollars represents a 1% cut in CDBG funding from the previous year. New grant funds are recommended for use as follows. Landbanking for Low-Income Housing Development - $ 0. No new funds were requested since a site is not currently identified for acquisition. The City anticipates receiving $200,000 in CDBG program income from the sale of 20 single-family lots at the Walnut Grove subdivision. This final phase of the L:\CMO\2007 Council Agendas\M070409\S0704093C.doc