HomeMy WebLinkAboutItem 2E: App.CDBG/HOME FundsEUGENE CITY COUNCIL
AGENDA ITEM SUMMARY
Approval of 2005-06 Funding Allocations for Federal
Community Development Block Grant, HOME Investment Partnerships, and
American Dream Downpayment Initiative Programs
Meeting Date: May 9, 2005 Agenda Item Number: 2E
Department: Planning and Development Staff Contact: Linda Dawson
www. cl. eugene, or. us 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 2005-06, Eugene will receive $1,579,152
plus $1,075,000 in program income from the Community Development Block Grant (CDBG),
$1,085,759 through the HOME Investment Partnerships Program (HOME), and $38,154 in 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. Last year, the Eugene-Springfield Consortium began
receiving funding through the ADDI Program. The annual funding allocations, called One-Year Action
Plans, are prepared in the context of the five-year HUD Consolidated Plan. Next fiscal year will be the
first year in the new 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.
RELATED CITY POLICIES
This allocation plan is based on the Consolidated Plan 2005 which guides the use of Federal CDBG,
HOME, and ADDI funds through 2010. In order to allocate funds to specific programs or projects,
HUD regulations require a citizen participation process, including advertising and conducting a public
hearing, followed by City Council action.
COUNCIL OPTIONS
Communi~. Development Block Grant
The CDBG Advisory Committee conducted a public hearing on April 19, 2005, and recommends the
following use of CDBG funds for 2005-06. The allocation includes $1,579,152 in new gram funds,
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$1,075,000 in program income from the housing and business loan programs, and $40,000 from the
previous year.
· Housing Development - No new grant funds will be allocated next year. No landbank site will be
purchased during this year. There are currently five sites in the landbank program for low-income
housing: Willow Creek, County Farm Road, Willakenzie, Westmoreland, and Royal-Danebo.
· Housing Rehabilitation - No new grant funds will be allocated next year. The program income
amount of $425,000 will be used with $382,500 in carryover funds to provide low-interest loans
through the City' s Housing Rehabilitation Loan Program for improvements to residences
occupied by low-income homeowners and tenants. Emergency repair loans of up to $5,000 will
be provided to very low-income homeowners and grants for accessibility improvements will be
made for tenants with disabilities.
· Public Services Operations - $390,000 in new funds will be used to fund services as selected by
the intergovernmental Human Services Commission (HSC). Next year is the first year in the
HSC two-year funding cycle. The CDBG allocation is maintained at the current level.
· Non-profit Capital Projects - $286,773 will be used to acquire or rehabilitate facilities for four
local non-profit service providers.
Womenspace will use $40,000 to acquire the second floor of the Willis Building at 16th and
Pearl Street, estimated to cost $1,100,000. Womenspace serves battered women and their
children.
ShelterCare will receive $124,702 to construct a meeting hall at the Royal Avenue Shelter at
780 Highway 99 North. The facility serves adults with mental illness.
Willamette Family Treatment Services will receive $30,191 to add a security room to the
Sobering Station at 605 W. 4th Avenue.
Catholic Community Services will receive new funds in the amount of $91,880 to expand its
food distribution room at 1095 W. 7th Avenue. In 2003, they distributed 14,046 food boxes
from this location.
· City Capital Projects - A total of $497,379 will be used for City Capital projects and Park
improvements.
Accessibility Improvements - $297,379 is recommended on accessibility improvements to
City facilities by the Accessibility Committee of the Human Rights Commission. These
projects represent the final priorities set in Phase 6 of the City's ADA Transition Plan:
University Park Restroom - $200,000
Maurie Jacobs Park Restroom - $60,000
Owen's Rose Garden Restroom - $15,000
Hendricks Park Restroom - $22,379
Installation of Curb Ramps - $60,000 will be used to install curb ramps.
Park Improvements - $140,000 in new grant funds has been proposed for improvements to
Acorn Park at West 15th and Buck Street.
· Economic Development - $650,000 in program income will be used with $218,535 in carryover
to fund loans to businesses creating jobs for low-income persons through the Business
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Development Fund and the Emerging Business Loan Pool. Loans may also be made through this
category to eliminate slums and blighted conditions.
· Micro-enterprise Business Development Services - $25,000 in new grant funds will be used to
fund micro-enterprise business development services such as training for Eugene low-income
micro-business entrepreneurs participating in the Lane MicroBusiness Program. The City will
issue an RFP for these services.
· Administration - $420,000 in new funds will be used for project implementation, fair housing
activities, the City's Central Services allocation, the annual audit, and general program
administration. This is a 1% increase over the 2004/05 allocation.
HOME AND ADDI
The Eugene-Springfield Consortium will receive $1,551,084 in Federal HOME funding in fiscal year
2005-06. The funds will continue to be split 70/30 between the two jurisdictions with Eugene receiving
$1,085,759 and Springfield receiving $465,325. HOME funds can be used for new construction or
rehabilitation of housing units which will be affordable to low- and moderate-income households, for
the acquisition of eligible properties by for-profit and non-profit developers, for tenant-based rental
assistance and security deposit programs, for home buyer programs, for support of local Community
Housing Development Organizations (CHDO), and for program administration.
In addition to HOME Program funds, the ADDI program was signed into law on December 16, 2003.
This program provides downpayment, closing costs, and rehabilitation assistance for first-time
homebuyers and will be administered as part of the HOME Program. Next year, the consortium will
receive $54,505, split 70/30 between Eugene and Springfield. Eugene would receive $38,154 and
Springfield would receive $16,351. The Springfield Home Ownership Program (SHOP) and Eugene' s
Homebuyer Assistance Program (HAP) must be funded first from ADDI funds before tapping into
HOME funds.
· Acquisition/New Construction - Projects in this category are selected through a Request for
Proposals process and can be used for new construction of rental and homeownership units or the
acquisition of existing units. At the conclusion of the most recent round, the City Council
approved $1,025,000 in funding for Metropolitan Affordable Housing Corporation's "WestTown
on 8th'' project in downtown Eugene. $782,895 in 2005-06 HOME funds will be combined with
prior years' funds for this project.
· Downpayment Assistance - $125,000 in HOME funds and $38,154 in ADDI funds will be used
for downpayment assistance through Eugene's HAP. Up to $6,000 is provided at closing to
eligible households. The funds are repaid to the City upon resale of the home. The goal is 35
downpayment assistance loans next program year.
· Security Deposit Program - $15,000 will be used for security deposit or rental assistance program
to be considered for implementation at a consortium level by the HPB in the fall of 2005.
· Interim Financing - It is anticipated that the City will receive $500,000 in program income to the
local HOME account from interim financing loans. Eugene continues to offer short term interim
financing on affordable housing projects. This method of financing supports the affordability of
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local housing projects and allows Eugene to expend HOME funds in a timely manner. Program
income totaling $500,000 is estimated for fiscal year 2005-06, primarily from the HACSA Turtle
Creek Project.
· CHDO Operating Funds - The 5% allowed for CHDOs is allocated at the consortium level.
Eugene's contribution is 70% of the total $77,554. CHDO operating funds will be split equally
between the four active CHDOs: Metropolitan Affordable Housing Corporation, Neighborhood
Economic Development Corporation, St. Vincent dePaul, and Mainstream Housing, Inc.
· Administration - $108,576 in HOME funds will be used for administrative expenses to operate
the program. The Federal grant management system automatically budgets 10% of the grant
amount for administration.
CITY MANAGER'S RECOMMENDATION
The City Manager recommends approval of the One-Year Action Plan for use of Federal CDBG,
HOME, and ADDI funds in 2005-06.
SUGGESTED MOTION
Move to approve the One-Year Action Plan for use of Federal CDBG, HOME, and ADDI funds in
2005-06.
ATTACHMENTS
A. Summary of CDBG Allocations
B. Summary of HOME/ADDI Allocations
C. List of CDBG-AC and HPB Committee Members
FOR MORE INFORMATION
Staff Contact: Linda Dawson
Telephone: 682-5071
Staff E-Mail: linda.l.dawson~ci.eugene.or.us
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ATTACHMENT A
City of Eugene
CDBG Allocations Summary
Consolidated Plan 2000 Consolidated
Plan 2005
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
HOUSING
Housing Rehabilitation 173,000 195,000 0 0 0 0
Program Income 363, 380 395, 000 446, 000 510, 000 450, 000 425, 000
Housing Development 300,000 300,000 100,000 385,400 400,000 0
PUBLIC SERVICES
Operations 392,000 395,000 370,000 389,350 389,350 390,000
Non-profit Capital Projects 90,000 110,000 250,000 240,000 165,000 246,773
CITY CAPITAL PROJECTS
Accessibility Improvements 175,000 180,000 234,000 234,000 190,530 297,379
Neighborhood Improvements 0 13,000 60,000 42,250 105,000 0
Neighborhood Matching Grants 21,000 10,000 10,000 0 0 0
Installation of Curb Ramps 0 0 0 0 0 60,000
Park Improvements 0 0 0 0 0 140,000
ECONOMIC DEVELOPMENT
Business Loan Program 0 0 200,000 0 0 0
Program Income 584, 286 61 O, 000 5 75, 000 518, 000 71 O, 000 650, 000
Micro-enterprise Training 25,000 30,000 35,000 25,000 0 25,000
ADMINISTRATION 370,000 370,000 400,000 412,000 416,120 420,000
Total Annual Grant Allocation $1,546,000 $1,603,000 $1,584,000 $1,713,000 $1,666,000 $1,579,152
Total Estimated Program Income $947,666 $1,005,000 $1,021,000 $1,028,000 $1,160,000 1,075,000
Prior Years' Funding $0 $0 $75,000 $15,000 $0 40,000*
GRAND TOTAL $2,493,666 $2,608,000 $2,680,000 $2,756,000 $2,826,000 $2,694,152
* $40,000 prior years' funds derived from cancelled FY04-05 Womenspace non-profit capital project; funds will be used for FY05-06
non-profit capital grant projects.
ATTACHMENT B
City of Eugene
HOME and ADDI Allocations Summary
HOME Program New Construction/ Security Deposit CHDO Operating* Administration Downpayment Total
Acquisition Assistance
Consolidated Plan 2000
2000-01 $812,750 $0 $50,715 $101,430 $50,000 $1,014,300
2001-02 $959,140 $0 $56,420 $112,840 $0 $1,128,400
2002-03 $862,115 $0 $56,595 $113,190 $100,000 $1,131,900
2003-04 $872,915 $0 $57,230 $114,461 $100,000 $1,144,606
2004-05 $972,548 $0 $57,209 $114,417 [See ADDI below] $1,144,174
Consolidated Plan 2005
2005-06 I $782,795 I $15,000 I $54,288 I $108,576I $125,000I $1,085,759
ADDI Program New Construction/ Rehabilitation CHDO Operating* Administration Downpayment Total
Acquisition Assistance
2003-04 n/a n/a n/a n/a $56,702 $56,702
2004-05 n/a n/a n/a n/a $66,910 $66,910
2005-06 n/a n/a n/a n/a $38,154 $38,154
* CHDO Community Housing Development Organization