Item 2D: Reprogramming of CDBG Funds

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Reprogramming of Community Development Block Grant Funds Meeting Date: April 27, 2009 Agenda Item Number: 2D Department: Planning & Development Department Staff Contact: Stephanie Jennings www.eugene-or.gov Contact Telephone Number: 682-5529 ISSUE STATEMENT The City Council is asked to approve the reprogramming of Community Development Block Grant (CDBG) funds from a non-profit capital grant of $91,800 for Catholic Community Services (CCS) to th use for CCS to acquire 1464 West 6 Avenue. This adjustment reflects CCS’s determination to relocate its operation rather than expand the building at their current location. Reprogramming the funds will serve the original intent of the application and provide a greater benefit for the recipients of CCS services. BACKGROUND The City of Eugene established current goals and programs for the use of CDBG funds to benefit low- income people through the adopted 2005 Consolidated Plan. Each year, the City Council approves the allocation of federal funds from the U.S. Department of Housing and Urban Development (HUD) through a One-Year Action Plan. From time to time, the council also approves reprogramming of federal funds among projects and programs to facilitate timely use of CDBG funds or to address unavoidable changes in approved projects. In the FY 2005/2006 allocation process, the council approved a CDBG non-profit capital improvement th grant of $91,800 for CCS to expand its Eugene Community Services Center at 1095 West 7 Avenue. The expansion was specifically intended to increase the size of food distribution and food storage capacity. Due to electrical, plumbing, and mechanical limitations of the current facility, CCS determined it was necessary to relocate its operation rather than to expand the building. CCS has th identified a replacement facility at 1464 West 6 Avenue, and negotiated an option to purchase the site. As a result, CCS requests use of the previously awarded CDBG funds toward the purchase of the new property. After review of the CCS request, staff has determined that the new use of funds will serve the original intent of the application and actually provide a greater benefit for the recipients of CCS services. The new location will offer additional office and counseling space as well as additional parking that can not be added at their current location. Private sources will fund the majority of the purchase. No additional CDBG funding is necessary for the project to proceed. Reprogramming of CDBG funds will facilitate CCS’s ability to acquire the new facility. Z:\CMO\2009 Council Agendas\M090427\S0904272D.doc