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

Home Browse Search

City Capital Projects – A total of $267,000 will be used on City capital improvements. Curb Ramps - Since the implementation of Section 504 of the Rehabilitation Act of 1973 and the subsequent adoption of the Americans with Disabilities Act (ADA), the City of Eugene has had an ongoing commitment to install and reconstruct accessible curb ramps throughout the City. This program has traditionally been funded at a level of $50,000 to $75,000 annually. A draft of the Six- Year Capital Improvement Program (CIP), presented to the Budget Committee on February 9, 2005, assumed that $60,000 in CDBG funding would continue over the next six years beginning in fiscal year 2006/07. $60,000 in CDBG funds will be used to install curb ramps at city-wide locations. Accessible Pedestrian Signals (APS) provide audible and tactile cues to assist pedestrians in making safe decisions when crossing at intersection crosswalks. This safety concern is paramount to people who are visually impaired. Last year, the Budget Committee recommended the implementation of an annual program at the $65,000 level for the system-wide retrofit of Audible Pedestrian Signals, similar to the ADA curb cut program. The cost for the retrofit of a typical four-legged intersection is estimated at $6,500 for materials. The committee suggested that possible sources of funding for the $65,000 would include, but not be limited to, CDBG, STP-U, General Capital Projects, and Road Funds. After evaluating the possible funding sources for 2007/08, CDBG was determined to be the best source. The possible sources will be evaluated each year. $65,000 will be used to install accessible pedestrian signals at locations prioritized by the Human Rights Commission Accessibility Committee. Acorn Park and the surrounding area will receive a number of improvements. At the park, a basketball court ($30,000) and an irrigation system will be installed and trees ($10,000) will be planted. On the adjacent Acorn Park Street, speed bumps will be installed for $12,000. Just to the north, a sidewalk will be installed along the east side of Acorn Park Street on City-owned land for $40,000. The speed bumps and sidewalk will increase safety for the neighbors in this low-income neighborhood. The wheelchair lift at Peterson Barn will be replaced. The existing lift has proven unreliable with frequent breakdowns. The estimated cost is $50,000. The Peterson Barn is a neighborhood center serving a CDBG-eligible area. Economic Development - $785,000 in program income will be used with $215,500 in entitlement funds for loans to businesses creating jobs for low-income persons through the Business Development Fund (BDF) and the Emerging Business Loan Pool. The BDF is a CDBG revolving loan fund for new and expanding local businesses that promotes job creation for low- and moderate-income individuals. The program funds projects unable to access 100% of financing through conventional lending sources. Matching funds in the form of private bank loans and/or owner equity is required for BDF eligibility. BDF loans typically cover 25 – 50% of project financing. To maximize program goals, interest rates are below-market and terms are based on project needs. Although the program is mainly focused on job creation, commercial revitalization projects that eliminate conditions of slums and blight are also eligible. The Loan Advisory Committee, a six-member citizen advisory committee, reviews all loan proposals prior to approval. Loan repayments are restricted to re-lending activity within the revolving fund. To date, the BDF has loaned over $13.8 million to over 200 businesses, leveraged private investments exceeding $35 million, and created over 1,040 jobs. L:\CMO\2007 Council Agendas\M070409\S0704093C.doc