Item 4: 2013/14 Funding Allocations for Federal CDBG and HOME Programs+attachments.docx

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CDBG Program Income ($1,450,000) – The City of Eugene expects to receive $1,450,000 • in program income through two revolving loans that have been established with CDBG funds. The Business Development Fund will generate an estimated $1,100,000 in FY 2013/2014 and the Housing Rehabilitation Fund will generate an estimated $350000. In accordance with HUD requirements, program income from revolving loan funds can only be allocated to further the activities of the respective loan funds. The CDBG Advisory Committee held a public hearing and adopted a final recommendation for use of CDBG funds on April 9, 2013. The recommended allocation of new entitlement funds includes funding for public services which includes operating funds for eight social service programs, audible pedestrian signals, curb ramps, business development loans, microenterprise training, and program administration. The package of recommended uses will address critical community needs for social services, employment and business growth, and accessibility improvements. If the City’s actual allocation of new entitlement funds is greater or lesser than estimated, if the City’s actual entitlement funding is greater or lesser than estimated, the allocation for curb ramps, audible pedestrian signals, business loans, and microenterprise training will be adjusted proportionately. Program income from the Business Development Fund and Housing Rehabilitation Fund will be allocated for new business and housing rehabilitation activities. Attachment A provides a table showing the sources, recommended uses, and a brief description for each use of CDBG funds. HOME Investment Partnerships Program The primary purpose of HOME is to expand the supply of housing affordable to low-income persons. The City is the lead entity in the Eugene-Springfield HOME Consortium, which has received annual entitlement grants since 1992. The Eugene-Springfield Consortium will receive an estimated $942,535 in HOME funds in FY 2013/14. This entitlement allocation is five percent less than the amount received in the previous year. Eugene will receive 70 percent of the entitlement grant funds ($659,774) and Springfield will receive 30 percent ($282,764). The expected program income will come from repayments received through the Homebuyer Assistance Program and from other housing development loans. The HPB met on April 8, held a public hearing, and made a recommendation for allocation of HOME funds to both jurisdictions. HPB recommends that Eugene’s portion of HOME funds be divided among three program areas: 1) Housing Development Programs; 2) Community Housing Development Organization (CHDO) Operating Support; and 3) Security Deposit Rental Assistance. The proposed allocation is similar to previous HOME allocations, except that funding is recommended for a pilot security deposit assistance program instead of the Homebuyer Assistance Program (HAP). While there is a community need for first time homebuyer assistance to help low- and very low-income persons attain housing, funding available to support staff time necessary to implement the program is not available. The proposed allocation maintains support for a mix of housing development, renter assistance, and organizational support. In addition to these programs, Eugene staff anticipates up to $1,000,000 will be available for HOME interim financing. Through HOME interim financing, the City makes short-term loans for HOME eligible uses with funds dedicated but not yet disbursed for specific projects. The amount of funds S:\CMO\2013 Council Agendas\M130422\S1304224+attachments.docx