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non-profit housing developers, and interim financing. CDBG Program - The proposal allocates $1,666,000 in new 2004-05 grant funds and $1,160,000 in estimated program income to support the program areas outlined below. Several of the following allocations reflect a new consideration, the timely expenditure of funds. HUD has recently issued sanctions to be taken against jurisdictions which do not expend their funds in a "timely" manner. · Housing Development - $400,000 in new funds will be used in conjunction with $100,000 borrowed from other housing funds to acquire three acres of the Willakenzie school site for future low-income housing development. Future CDBG funds will be used to repay the other housing funds. On April 5, 2004, the HPB conducted a public hearing on the acquisition. Five neighbors expressed their general support for low-income housing but their specific interest in securing the full 8-acre site for park use. One person spoke in favor of the acquisition for future development of affordable housing, citing the excellent schools, shopping and transportation in the neighborhood. Following the hearing, the HPB voted to support the acquisition of three acres for the housing landbank. Some HPB members acknowledged the neighbors interest in additional parkland and also acknowledged that due to the R-1 zoning, housing will be built on any portion of the site not used for park land. The I-IBP preferred that the three acres eventually be used for low-income housing rather than market rate housing. · Housing Rehabilitation - No new grant funds will be allocated next year since a substantial amount of carry-forward funds are projected. The carry-forward amount of $199,050 will be used with $450,000 in program income to provide low-interest loans through the City's Housing Rehabilitation Loan Program for improvements to residences occupied by low-income homeowners and tenants. Emergency repair loans of up to $3,500 will be provided to very low-income homeowners and grants for accessibility improvements will be made for tenants with disabilities. · Public Services Operations - $389,350 in new funds will be used to fund services as selected by the intergovernmental Human Services Commission (HSC). Next year is the second year in the HSC two-year funding cycle. The CDBG allocation is maintained in the second year. · Public Services Non-profit Capital Projects - $165,000 in new funds will be used to acquire or rehabilitate facilities for three local non-profit service providers. Womenspace will use $40,000 towards the acquisition of a new facility in the downtown core estimated to cost $800,000. The building location has not been identified. Womenspace serves battered women and their children. Looking Glass will use $78,840 to improve a large modular unit moved to the Station 7 site at 2485 Roosevelt Blvd. The modular unit will provide counseling space for homeless youth. ShelterCare will receive $36,700 to provide accessible entries and cover to the residential units at the Royal Avenue Shelter at 780 Highway 99 North. The facility serves adults with mental illness. A contingency of $9,460 has been established for these projects. · City Capital Projects: Accessibility Improvements to City Facilities - $130,530 is recommended on improvements to City facilities, including dual-level drinking fountains in numerous City parks, and restroom improvements at Skinner's Butte Park, Washington/Jefferson Park, Ascot Park, Sladden Park, Maurie Jacobs Park, and the Owen's Memorial Rose Garden. Accessibility improvements will also be done at the Sheldon Community Center and the Atrium building. Projects are prioritized through the City's ADA Transition Plan developed by the Accessibility Committee of the Human Rights Commission. Next year, $60,000 will be spent on curb ramps installed on a city-wide basis. L:\CMO\2004 Council Agendas\M040412\S0404122C.doc