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home park. The City Council originally approved use of CDBG funds for this purpose on March
<br />10, 2008. However, the resident association seeking to acquire the park has been unable to
<br />secure primary financing needed for acquisition. As a result, these funds are available for
<br />reprogramming. The remaining $42,000 comes from lower than expected construction costs
<br />from multiple nonprofit capital facility construction projects.
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<br /> Program Income ($1,450,000)
<br />– The City of Eugene expects to receive $1,450,000 in program
<br />income through two revolving loans that have been established with CDBG funds. The Business
<br />Development Fund will generate an estimated $1,100,000 in 2010/11 and the Housing
<br />Rehabilitation Fund will generate an estimated $350,000. In accordance with HUD
<br />requirements, program income from revolving loan funds can only be allocated to further the
<br />activities of the respective loan funds.
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<br />The CDBG Advisory Committee held a public hearing and adopted a final recommendation for use of
<br />CDBG funds on April 13, 2010. The recommended allocation includes funding for the housing
<br />landbank, operating funds for nine social service programs, five nonprofit capital facility projects, curb
<br />ramps, audible pedestrian signals, business development loans, microenterprise training, and program
<br />administration. The package of recommended uses will address critical community needs for social
<br />services, affordable housing, employment and business growth, and accessibility improvements.
<br />Attachment A provides a table showing the sources, recommended uses, and a brief description for each
<br />use of funds.
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<br />HOME Investment Partnership Program
<br />The primary purpose of HOME is to expand the supply of housing affordable to low-income persons.
<br />The City is the lead entity in the Eugene-Springfield Home Consortium, which has received annual
<br />entitlement grants since 1992. The Eugene-Springfield Consortium will receive $1,549,846 in HOME
<br />funds in 2010/11. This entitlement allocation is $14,356 less than the amount received in the previous
<br />year. Eugene will receive 70 percent of entitlement grant funds ($1,084,892) and Springfield will
<br />receive 30 percent ($464,954). In addition, $96,447 in unused funds from prior years and $85,000 in
<br />program income is available for allocation. The unused funds were allocated for Housing Development
<br />in 2009/10 but were not designated for any specific project. The expected program income will come
<br />from repayments received through the Homebuyer Assistance Program and from other housing
<br />development loans.
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<br />The HPB met on April 5, held a public hearing, and made a recommendation for allocation of HOME
<br />funds to both jurisdictions. HPB recommends that HOME funds be divided among three program areas:
<br />1) Housing Development Programs; 2) Homebuyer Assistance Program (HAP); and 3) Community
<br />Development Housing Organization (CHDO) Operating Support. The proposed allocation is similar to
<br />previous allocation of HOME funds and maintains support for a mix of housing development,
<br />homebuyer assistance, and organizational support. In addition to these programs, Eugene staff
<br />anticipates up to $1,000,000 will be available for HOME interim financing. Through HOME interim
<br />financing, the City makes short-term loans for HOME eligible uses with funds dedicated, but not yet
<br />disbursed, for specific projects. The amount of funds available for HOME interim financing is
<br />dependent on project timing. Attachment B includes a table that provides the sources, recommended
<br />uses, and a brief description for each use of funds.
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<br />Section 108 Loan Guarantee Program
<br />In July 2006, HUD selected the City’s Section 108 application to create a $9,895,000 loan pool, together
<br />with BEDI grant funds, for redevelopment projects within the Downtown and Riverfront urban renewal
<br />districts. On February 26, 2007, the City Council approved an ordinance authorizing the use of the
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