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<br />The Emerging Business Loan Pool (EBLP) was established in the late 1980s as a spin-off program
<br />within the BDF to reach businesses that face extraordinary credit barriers, defined as impediments to
<br />small business formation and expansion that stem from high risk and socio-economic factors, such as
<br />low-income status and cultural differences. The EBLP can provide up to 100% financing for a project.
<br />The CDBG program has targeted 25% of its business lending to occur in the EBLP. During the last five
<br />years, $1,355,000 (43% of BDF disbursements) has been loaned through the EBLP and has helped
<br />create 55 jobs (37% of the total jobs created).
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<br />Lane MicroBusiness will receive $30,000 to provide micro-enterprise business development services
<br />such as training, education, and workshops for Eugene low-income, micro-business entrepreneurs.
<br />Persons will also be participating in the Valley Individual Development Account Collaborative (VIDA)
<br />which provides equity matches for micro-entrepreneurs.
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<br />Administration
<br />- $420,000 in new funds will be used for project implementation, fair housing
<br />activities, the City’s Central Services allocation, the annual audit, and general program administration.
<br />This is the same level as the 2005-06 and the 2006-07 allocations.
<br />
<br />Section 108 Loan Guarantee Program
<br />In July 2006, HUD selected the City’s Section 108 application for funding to create a $9,895,000 loan
<br />pool, together with Brownfield Economic Development Initiative (BEDI) grant funds, for
<br />redevelopment projects within the Downtown and Riverfront urban renewal districts. On February 26,
<br />2007, the City Council approved an ordinance authorizing the use of the HUD 108 loan as a financing
<br />tool. The non-emergency ordinance established the City’s general ability to borrow for Section 108
<br />projects with the stipulation that individual projects be approved by council resolution.
<br />
<br />HOME Investment Partnerships Program/American Dream Downpayment Initiative
<br />The Eugene-Springfield Consortium will receive $1,451,705 in Federal HOME Investment Partnerships
<br />Program (HOME) funding in fiscal year 2007-08. This is a 1% decrease from the 2006-07 allocation of
<br />$1,462,142, and a 7% decrease from the 2005-06 allocation of $1,551,084. These funds will continue to
<br />be split 70/30 between the two jurisdictions; Eugene will receive $1,016,193 and Springfield will
<br />receive $435,512. HOME funds can be used for acquisition and development of housing affordable to
<br />low- and moderate-income households, rehabilitation, homebuyer programs, rental assistance, support of
<br />local Community Housing Development Organizations (CHDO), and for program administration.
<br />
<br />In addition to HOME Program funds, the consortium will receive funding through the American Dream
<br />Downpayment Initiative (ADDI), which was signed into law on December 16, 2003. This program
<br />provides downpayment, closing costs, and rehabilitation assistance for first-time homebuyers and will be
<br />administered as part of the HOME Program. In fiscal year 2007-08, the consortium will receive
<br />$27,197, split 70/30 between Eugene and Springfield. This amount is the same as last year’s allocation.
<br />Eugene will receive $19,037 and Springfield will receive $8,160.
<br />
<br />Staff proposes that HOME funds be divided among three program areas: 1) Housing Development
<br />Programs; 2) Homebuyer Assistance Program (HAP); and 3) CHDO Operating Support. This proposal
<br />is similar to the allocation of funds in the last fiscal year. In addition to these programs, Eugene staff
<br />anticipates about $1,000,000 will be available for HOME interim financing. This amount may change
<br />depending upon project timing and overall availability of funds.
<br /> L:\CMO\2007 Council Agendas\M070409\S0704093C.doc
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