Item 2C: 2009/10 CDBG and HOME Funding

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development financing and plan for the West Broadway redevelopment area, the individual project application was revised in March 2008. The revised application proposed to utilize a combination of federal and local funds to support the redevelopment of properties at the heart of downtown, along Broadway and Willamette Street. Under this revised application the City acquired two properties (four tax lots) with $2.7 million in Federal Section 108 Loan Guarantee Program funds and $0.685 million in BEDI grant funds. The City has an agreement with Beam Development to transform the important intersection of Willamette and Broadway into a vital area with restaurants, retailers, and office space. The scale of the buildings will entail new construction of a five-story building and historic rehabilitation of the existing five-story and two-story buildings known as the Centre Court and Washburne buildings, respectively. The City anticipates participation in the Beam project through the use of Section 108/BEDI in a second phase also. In the first phase (Section 108 Loan #1), the City acquired the properties. For the second phase, the City anticipates providing construction financing to Beam through a loan of Section 108/BEDI funds. The construction financing would be the City’s Section 108 Loan #2. HOME Investment Partnerships Program/American Dream Down Payment Initiative The Eugene-Springfield Consortium will receive an estimated $1,404,328 in Federal HOME Investment Partnerships Program (HOME) funding in fiscal year 2009/10. These funds will continue to be split 70/30 between the two jurisdictions; Eugene will receive $983,029 and Springfield will receive $421,299. HOME funds can be used for acquisition and development of housing affordable to low- and moderate-income households; rehabilitation; homebuyer programs; rental assistance; support of local Community Housing Development Organizations (CHDO); and HOME program administration. Staff proposes that HOME funds be divided among three program areas: 1) Housing Development Programs; 2) Homebuyer Assistance Program (HAP); and 3) CHDO Operating Support. This proposal is similar to the allocation of funds in the last fiscal year. In addition to these programs, Eugene staff anticipates up to $1,000,000 will be available for HOME interim financing. This amount may change depending upon project timing and overall availability of funds. Housing Development – $670,726: Housing Development includes funding for acquisitions, new development construction, rehabilitation and project-related soft costs incurred by the jurisdictions. Funds can be used for rental or homeownership developments. Eugene awards funds in this category through an annual RFP processes. Eugene’s 2009 RFP was released March 26 and proposals are due May 29. The Allocations Committee of the Housing Policy Board will review the proposals in June, Housing Policy will hold a public hearing and make a recommendation in July, and the recommendation will be considered by council in September. Homebuyer Assistance Program (HAP) – $165,000 in new funds and up to an additional $85,000 based on how much program income is received. Eugene offers up to $10,000 in down payment assistance at closing to eligible households seeking to purchase homes. The funds are repaid upon resale . of the homeEugene set a goal for 25 HAP loans for the 2008-09, fiscal year, and has completed 15 loans thus far. Staff continues to actively seek out opportunities to partner with developers to create more affordable home ownership options. In these cases, staff recommends increasing the loan amount up to $20,000 when appropriate. Community Development Housing Organization (CHDO) Operating Funds – The Consortium may award up to 5% of new HOME funds for CHDO general operating grants. The total budgeted amount Z:\CMO\2009 Council Agendas\M090427\S0904272C and atts A,B,C.doc