Item 2C: Approval of CDBG and HOME Funding Allocations

Home Browse Search

ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Approval of 2006-07 Funding Allocations for Federal Community Development Block Grant, HOME Investment Partnerships, and American Dream Downpayment Initiative Programs Meeting Date: May 8, 2006 Agenda Item Number: 2C Department: Planning and Development Staff Contact: Linda Dawson www.eugene-or.gov Contact Telephone Number: 682-5071 ISSUE STATEMENT The City Council is asked to approve the use of funds in three Federal programs funded by the Department of Housing and Urban Development (HUD). In 2006-07, Eugene will receive $1,417,968 plus $1,356,708 in program income from the Community Development Block Grant (CDBG), $1,023,500 through the HOME Investment Partnerships Program (HOME), and $19,037 in the American Dream Downpayment Initiative (ADDI) funds. BACKGROUND Annually in the spring, the City Council approves funding allocations for Federal HUD grant programs for the upcoming fiscal year starting on July 1. The City has received CDBG funds since 1975. HOME funding has been received by the Eugene-Springfield Consortium since 1992, with Eugene receiving 70% of the funds and serving as the lead agency. In 2003, the Eugene-Springfield Consortium began receiving funding through the ADDI Program. The annual funding allocations, called One-Year Action Plans, are done in the context of the five-year HUD Consolidated Plan. Next fiscal year will be the second year in the Consolidated Plan 2005. The CDBG Advisory Committee advises the Planning and Development Department on the use of CDBG funds. The Housing Policy Board (HPB) advises the City Council on the use of HOME and ADDI funds. Community Development Block Grant (CDBG) The Community Development Block Grant (CDBG) Advisory Committee conducted a public hearing on April 17, 2006, and recommends the following use of CDBG funds for 2006-07. The allocation includes $1,417,986 in new grant funds, $1,025,000 in program income from the housing and business loan programs, $255,000 from sale of landbanked sites, and $76,708 in repayment from a non-profit facility that was sold. The amount of new grant dollars represents a 9% cut in CDBG funding from the previous year. New grant funds are recommended for use as follows: Housing Development - No new funds are recommended. The City anticipates receiving $400,000 in program income from the sale of 20 single-family lots at the Walnut Grove subdivision. The final phase at Walnut Grove is being developed by the Housing and Community Services Agency. The final phase includes 27 low-income rental units to be called Turtle Creek Apartments and the sale at market rate of L:\CMO\2006 Council Agendas\M060508\S0605082C.doc