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<br /> <br />ECC <br />UGENE ITY OUNCIL <br />AIS <br />GENDA TEM UMMARY <br /> <br /> <br /> <br />Approval of 2009/10 Funding Allocations for Federal Community Development Block <br />Grant and HOME Investment Partnership Programs <br /> <br /> <br />Meeting Date: April 27, 2009 Agenda Item Number: 2C <br />Department: Planning & Development Staff Contact: Stephanie Jennings <br />www.eugene-or.gov Contact Telephone Number: 682-5529 <br /> <br /> <br /> <br />ISSUE STATEMENT <br /> <br />The City Council is asked to approve the allocation of funds in two federal programs funded by the U.S. <br />Department of Housing and Urban Development (HUD). Through the Community Development Block <br />Grant (CDBG) program, Eugene will allocate an estimated $1,410,000 in entitlement grant funds and <br />unused funding from previous years as well as $1,295,000 in program income. Through the HOME <br />Investment Partnership Program (HOME), Eugene will allocate an estimated $983,029 in entitlement <br />grant funds as well as $85,000 in program income. <br /> <br />BACKGROUND <br /> <br />Annually in the spring, the City Council approves funding allocations for Federal HUD grant programs <br />for the upcoming fiscal year starting on July 1. The City has received CDBG funds since 1975. HOME <br />funding has been received by the Eugene-Springfield Consortium since 1992, with Eugene receiving <br />70% of the funds and serving as the lead agency. The annual funding allocations, called One-Year <br />Action Plans, are prepared in the context of the five-year HUD Consolidated Plan. Fiscal Year 2009/10 <br />will be the fifth year in the Consolidated Plan 2005. The CDBG Advisory Committee advises the <br />Planning and Development Department on the use of CDBG funds. The Housing Policy Board (HPB) <br />advises the City Council on the use of HOME funds. <br /> <br />In past years, the City has received a specific allocation of new CDBG and HOME funds prior to the <br />deadline for submission of the One-Year Action Plan to HUD. Due to delays in approval of the federal <br />budget, HUD has not yet released the City’s allocation but the timeline for submission of the One-Year <br />Action Plan has not changed. As a result, staff has developed an allocation plan based on an estimate of <br />funding to be received. The allocation plan also identifies uses of funds should the City receive an <br />allocation greater than the estimated budget. <br /> <br />Community Development Block Grant (CDBG) <br />The Community Development Block Grant (CDBG) Advisory Committee (CDBG-AC) conducted a <br />public hearing on April 14, 2008, on the preliminary recommendation for use of funds. The CDBG-AC <br />and staff recommend the following use of CDBG funds for 2009/10. The allocation includes $1,360,000 <br />in new grant funds, $50,000 in unused funds from previous years, and $1,295,000 in program income <br />from the housing and business loan programs. Grant funds are recommended for use as follows. <br /> <br />Landbanking for Low-Income Housing Development <br /> – $ 300,000: This is the first request for <br />landbanking funds in the past five years. Through this program, the City provides critical resources for <br />the purchase of land to be made available for the development of homes and rental units for low-income <br />Z:\CMO\2009 Council Agendas\M090427\S0904272C and atts A,B,C.doc <br /> <br />