Item 2C: 2009/10 CDBG and HOME Funding

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restricted to re-lending activity within the revolving fund. The BDF is a CDBG revolving loan fund for new and expanding local businesses that promotes job creation for low and moderate income individuals. 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. Lane MicroBusiness - $30,000: These funds will support micro-enterprise training conducted by Lane MicroBusiness. These funds will provide micro-enterprise business development services such as training, education, and workshops for Eugene low-income micro-business entrepreneurs. Public Improvements to Low-Income Neighborhoods - $0: Due to significant needs in other areas due to current economic conditions, the committee and staff recommend no new funding at this time. CDBG funds are used to make capital improvements to low-income neighborhoods in Eugene. The improvements may include streets, alleys, sidewalks, neighborhood parks, street lighting, and traffic calming within areas that meet CDBG requirements. Most recently, CDBG funds have been used to improve facilities within Acorn Park, add traffic calming measures to Acorn Park Street, and install a sidewalk along a portion of Acorn Park Street. Other previously funded projects include pedestrian- level street lights in the West University neighborhood and a pedestrian path along Bethel Drive adjacent to the Trainsong Neighborhood. Administration - $420,000: These funds will support project implementation, fair housing activities, the City’s Central Services allocation, the annual audit, and general program administration. The amount of funds for administration has remained the same for the past four years. Uses of Additional CDBG Funds Given that the exact amount of CDBG funds is not yet known, the committee and staff developed a recommendation for use of any additional funds received up to $200,000. Funding would be added to any amounts specified above. The CDBG Advisory Committee recommends funding of the following items ranked in order, as funding allows: 1.Curb Ramps - $10,000 2.Accessible Pedestrian Signals - $35,000 3.Micro-Enterprise Training Program - $10,000 4.Sheldon Community Center Accessible Bathroom - $25,000 5.Hult Center Accessible Toilet - $15,000 6.Housing Rehabilitation Program - $55,000 7.Landbanking Program - $50,000 Section 108 Loan Guarantee Program In July 2006, HUD approved the City’s Section 108 application for funding to create a $9,895,000 loan pool, together with Brownfield Economic Development Initiative (BEDI) grant funds, for redevelopment projects within the downtown and riverfront urban renewal districts. On February 26, 2007, the City Council approved an ordinance authorizing the use of the HUD Section 108 loan as a financing tool. The non-emergency ordinance established the City’s general ability to borrow for Section 108 projects with the stipulation that individual projects be approved by council resolution. The City received approval for its first individual Section 108 project for the acquisition of downtown property from the Portland field office in August of 2007. Due to unanticipated changes in the Z:\CMO\2009 Council Agendas\M090427\S0904272C and atts A,B,C.doc