HomeMy WebLinkAboutItem 3C: Funding Allocations for CDBG, HOME and ADDI Programs
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Approval of 2007-08 Funding Allocations for Federal Community Development Block
Grant, HOME Investment Partnerships Program and American Dream Downpayment
InitiativePrograms
Meeting Date: April 9, 2007 Agenda Item Number: 3C
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 2007-08, Eugene will receive $1,415,794,
plus $1,435,000 in program income, and $233,000 in prior year’s entitlement funds from the
Community Development Block Grant (CDBG), $1,016,193 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. Fiscal Year 2007-08 will be the
third 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 4, 2007, and recommends use of CDBG funds for 2007-08 as outlined below. The allocation
includes $1,415,794 in new grant funds, $1,435,000 in program income from the housing and business
loan programs, $200,000 from sale of landbanked sites, and $233,000 in prior years funds. The amount
of new grant dollars represents a 1% cut in CDBG funding from the previous year. New grant funds are
recommended for use as follows.
Landbanking for Low-Income Housing Development
- $ 0. No new funds were requested since a site
is not currently identified for acquisition. The City anticipates receiving $200,000 in CDBG program
income from the sale of 20 single-family lots at the Walnut Grove subdivision. This final phase of the
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landbanked site is being developed by the Housing and Community Services Agency. These funds can
be used towards acquisition of a new site in 2007-08 if one is identified for purchase. There is also
$55,000 in program income from the sale of a portion of the downtown housing land bank site. Staff
will seek acquisition opportunities and, if necessary, convene the CDBG committee to discuss funding
options in 2007-08, including use of program income, reprogramming funds from the business or
housing loan programs, and possibly using other City funds to be repaid from future CDBG allocations.
There are currently four sites in the landbank program for low-income housing: Willow Creek, County
Farm Road, Willakenzie, and Westmoreland.
Housing Rehabilitation
- $215,794 in new grant funds will be allocated next year and used in
conjunction with the estimated program income amount of $450,000. The program offers low-interest
loans through the City’s Housing Rehabilitation Loan Program for improvements to residences occupied
by low-income homeowners and tenants. Emergency repair grants and loans of up to $5,000 will be
provided to very low-income homeowners for minor repairs and accessibility features. Grants for
accessibility improvements will be made for tenants with disabilities.
Public Services Operations
- $350,000 in new funds will be used to fund services as selected by the
intergovernmental Human Services Commission (HSC). Public service funding is capped at 15% of
new grant funds and program income from the prior fiscal year. This maintains the current funding
level. Agencies to be funded include Catholic Community Services family counseling, FOOD for Lane
County dinner program and food box distribution, Relief Nursery therapeutic preschool, St. Vincent
dePaul singles and family day access centers, and White Bird medical/dental clinics and intensive case
management.
Public Services Non-profit Capital Projects
- $150,500 in new funds will be used to improve two
facilities owned by local non-profit service providers and provide $2,500 in project-related costs,
including advertising, printing of bid documents, asbestos/lead based paint testing, and title-recording
fees. Funds can be used for acquisition, new construction, rehabilitation, accessibility improvements,
and weatherization efforts. Projects are selected annually through a Request for Proposals (RFP)
process. Applications are reviewed and funding recommended to the full CDBG Advisory Committee
by a joint review team comprised of four CDBG-AC members, one representative from the Human
Services Commission Budget Planning Committee, and a community member with construction
expertise.
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A partial new roof will be installed at the Relief Nursery, 1720 West 25 Avenue, and interior damage
from leaking will be repaired using $25,000 in CDBG funds. The mission of the agency is to prevent
child abuse and neglect by delivering early intervention and family preservation services to strengthen
families and to promote children’s healthy physical, emotional, cognitive, and social development. Over
1,200 children and their families received services at this facility last year.
At the St. Vincent dePaul Eugene Service Station, the showers will be upgraded for $75,000 and a solar
hot water system will be installed for $48,000. The facility, located at 450 Hwy. 99N, is a critical
component of Lane County’s 10-Year Plan to End Homelessness. The facility is open seven days a
week and provides many key services to homeless, single adults. One of the key services that the
facility offers is hot showers. All five showers are in constant use, providing 70-125 showers per day or
over 32,000 showers annually. The efficiency of the solar hot water system will reduce the monthly
utility costs.
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City Capital Projects
– A total of $267,000 will be used on City capital improvements.
Curb Ramps - Since the implementation of Section 504 of the Rehabilitation Act of 1973 and the
subsequent adoption of the Americans with Disabilities Act (ADA), the City of Eugene has had an
ongoing commitment to install and reconstruct accessible curb ramps throughout the City. This
program has traditionally been funded at a level of $50,000 to $75,000 annually. A draft of the Six-
Year Capital Improvement Program (CIP), presented to the Budget Committee on February 9, 2005,
assumed that $60,000 in CDBG funding would continue over the next six years beginning in fiscal
year 2006/07. $60,000 in CDBG funds will be used to install curb ramps at city-wide locations.
Accessible Pedestrian Signals (APS) provide audible and tactile cues to assist pedestrians in making
safe decisions when crossing at intersection crosswalks. This safety concern is paramount to people
who are visually impaired. Last year, the Budget Committee recommended the implementation of
an annual program at the $65,000 level for the system-wide retrofit of Audible Pedestrian Signals,
similar to the ADA curb cut program. The cost for the retrofit of a typical four-legged intersection is
estimated at $6,500 for materials. The committee suggested that possible sources of funding for the
$65,000 would include, but not be limited to, CDBG, STP-U, General Capital Projects, and Road
Funds. After evaluating the possible funding sources for 2007/08, CDBG was determined to be the
best source. The possible sources will be evaluated each year. $65,000 will be used to install
accessible pedestrian signals at locations prioritized by the Human Rights Commission Accessibility
Committee.
Acorn Park and the surrounding area will receive a number of improvements. At the park, a
basketball court ($30,000) and an irrigation system will be installed and trees ($10,000) will be
planted. On the adjacent Acorn Park Street, speed bumps will be installed for $12,000. Just to the
north, a sidewalk will be installed along the east side of Acorn Park Street on City-owned land for
$40,000. The speed bumps and sidewalk will increase safety for the neighbors in this low-income
neighborhood.
The wheelchair lift at Peterson Barn will be replaced. The existing lift has proven unreliable with
frequent breakdowns. The estimated cost is $50,000. The Peterson Barn is a neighborhood center
serving a CDBG-eligible area.
Economic Development
- $785,000 in program income will be used with $215,500 in entitlement funds
for loans to businesses creating jobs for low-income persons through the Business Development Fund
(BDF) and the Emerging Business Loan Pool. The BDF is a CDBG revolving loan fund for new and
expanding local businesses that promotes job creation for low- and moderate-income individuals. The
program funds projects unable to access 100% of financing through conventional lending sources.
Matching funds in the form of private bank loans and/or owner equity is required for BDF eligibility.
BDF loans typically cover 25 – 50% of project financing. To maximize program goals, interest rates are
below-market and terms are based on project needs. Although the program is mainly focused on job
creation, commercial revitalization projects that eliminate conditions of slums and blight are also
eligible. The Loan Advisory Committee, a six-member citizen advisory committee, reviews all loan
proposals prior to approval. Loan repayments are restricted to re-lending activity within the revolving
fund. To date, the BDF has loaned over $13.8 million to over 200 businesses, leveraged private
investments exceeding $35 million, and created over 1,040 jobs.
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The Emerging Business Loan Pool (EBLP) was established in the late 1980s as a spin-off program
within the BDF to reach businesses that face extraordinary credit barriers, defined as impediments to
small business formation and expansion that stem from high risk and socio-economic factors, such as
low-income status and cultural differences. The EBLP can provide up to 100% financing for a project.
The CDBG program has targeted 25% of its business lending to occur in the EBLP. During the last five
years, $1,355,000 (43% of BDF disbursements) has been loaned through the EBLP and has helped
create 55 jobs (37% of the total jobs created).
Lane MicroBusiness will receive $30,000 to provide micro-enterprise business development services
such as training, education, and workshops for Eugene low-income, micro-business entrepreneurs.
Persons will also be participating in the Valley Individual Development Account Collaborative (VIDA)
which provides equity matches for micro-entrepreneurs.
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 the same level as the 2005-06 and the 2006-07 allocations.
Section 108 Loan Guarantee Program
In July 2006, HUD selected the City’s Section 108 application for funding to create a $9,895,000 loan
pool, together with Brownfield Economic Development Initiative (BEDI) grant funds, for
redevelopment projects within the Downtown and Riverfront urban renewal districts. On February 26,
2007, the City Council approved an ordinance authorizing the use of the HUD 108 loan as a financing
tool. The non-emergency ordinance established the City’s general ability to borrow for Section 108
projects with the stipulation that individual projects be approved by council resolution.
HOME Investment Partnerships Program/American Dream Downpayment Initiative
The Eugene-Springfield Consortium will receive $1,451,705 in Federal HOME Investment Partnerships
Program (HOME) funding in fiscal year 2007-08. This is a 1% decrease from the 2006-07 allocation of
$1,462,142, and a 7% decrease from the 2005-06 allocation of $1,551,084. These funds will continue to
be split 70/30 between the two jurisdictions; Eugene will receive $1,016,193 and Springfield will
receive $435,512. HOME funds can be used for acquisition and development of housing affordable to
low- and moderate-income households, rehabilitation, homebuyer programs, rental assistance, support of
local Community Housing Development Organizations (CHDO), and for program administration.
In addition to HOME Program funds, the consortium will receive funding through the American Dream
Downpayment Initiative (ADDI), which 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. In fiscal year 2007-08, the consortium will receive
$27,197, split 70/30 between Eugene and Springfield. This amount is the same as last year’s allocation.
Eugene will receive $19,037 and Springfield will receive $8,160.
Staff proposes that HOME funds be divided among three program areas: 1) Housing Development
Programs; 2) Homebuyer Assistance Program (HAP); and 3) CHDO Operating Support. This proposal
is similar to the allocation of funds in the last fiscal year. In addition to these programs, Eugene staff
anticipates about $1,000,000 will be available for HOME interim financing. This amount may change
depending upon project timing and overall availability of funds.
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Housing Development
– $1,300, 000 (new and prior years funds). Housing development includes
funding for acquisitions, new development construction, rehabilitation, and project-related soft costs
incurred by the jurisdictions. Funds can be used for rental or homeownership developments. Eugene
awards funds in this category through an annual RFP processes. Eugene’s 2007 Housing RFP was
released in November and proposals were due February 22, 2007. The Allocations Committee will
review and recommend projects for consideration at a public hearing conducted by the Housing Policy
Board on May 7. The item will come to council on June 11.
Homebuyer Assistance Program (HAP)
- $207,805. Eugene offers up to $10,000 in downpayment
assistance at closing to eligible households seeking to purchase homes. The funds are repaid upon resale
of the home.Due to increasing home sale prices, Eugene has had declining demand for downpayment
assistance program. Eugene set a goal for 35 HAP loans for the 2006-2007 fiscal year but has only
completed five loans so far. Given current trends, staff will actively seek out opportunities to partner
with developers to create more affordable homeownership options. In these cases, staff recommends
increasing the loan amount up to $20,000.
Community Development Housing Organization (CHDO) Operating Funds
– The consortium may
award up to 5% of new HOME funds for CHDO general operating grants. The total budgeted amount
for this item is $72,580. Eugene’s contribution is $50,806 and Springfield’s contribution is $21,774.
Consortium CHDO operating funds will be split equally between the four active CHDOs: Mainstream
Housing, Inc, Metropolitan Affordable Housing Corporation (Metro), Neighborhood Economic
Development Corporation (NEDCO), and St.Vincent dePaul Society of Lane County, Inc. Each CHDO
will receive $18,145. All CHDOs must be certified or recertified each year in order to receive CHDO
Operating Funds.
Administration -
$101,619. The Federal grant management system automatically budgets 10% of new
HOME funds for administration. Eugene will receive 70% of the amount awarded to the consortium.
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
The City Council can approve, not approve, or modify the One-Year Action Plan for use of Federal
CDBG, HOME, and ADDI funds for 2007-08.
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 2007-08.
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SUGGESTED MOTION
Move to approve the One-Year Action Plan for use of Federal CDBG, HOME, and ADDI funds in
2007-08.
ATTACHMENTS
A. CDBG-Five Year Summary of One-Year Action Plans
B. Summary of HOME/ADDI Allocations
C. CDBG Advisory Committee, CDBG Non-profit Capital Project Review Team, and Housing Policy
Board Members Lists
D. History of CDBG Non-Profit Capital Funding
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 2006-07
HOUSING
Housing Rehabilitation 173,000 195,000 250,000
Program Income 363,380 395,000 446,000 510,000 450,000 425,000400,000
Housing Development 300,000 300,000 100,000 385,400 400,000
Program Income
255,000
PUBLIC SERVICES
Operations 392,000 395,000 370,000 389,350 389,350 390,000 350,000
Non-profit Capital Projects 90,000 110,000 250,000 240,000 165,000 246,773 277,978
Program Income 76,708
CITY CAPITAL PROJECTS
Facilities Accessibility Improvements 125,000 130,000 178,000 159,000 130,530 297,379
Installation of Curb Ramps 50,000 50,000 50,000 75,000 60,000 60,000 60,000
Neighborhood Improvements 42,250 70,000
Neighborhood Matching Grants 21,000 10,000 10,000
Neighborhood Park Improvements 13,000 61,000 35,000 140,000
Accessible Pedestrian Signals 59,990
ECONOMIC DEVELOPMENT
Business Loan Program 200,000
Program Income 584,286 610,000 575,000 518,000 710,000 650,000 625,000
Micro-enterprise Training 25,000 30,000 35,000 25,000 25,000
ADMINISTRATION
Planning & Implementation 370,000 370,000 400,000 412,000 416,120 420,000 420,000
Total Annual Grant Allocation $1,546,000 $1,603,000 $1,584,000 $1,713,000 $1,666,000 $1,579,152 $1,417,968
Total Estimated Program Income$947,666 $1,005,000 $1,021,000 $1,028,000 $1,160,000 $1,075,000 $1,356,708
Prior Years’ Funding $0 $0 $75,000 $15,000 $0 $40,000 $0
GRAND TOTAL $2,493,666 $2,608,000 $2,680,000 $2,756,000 $2,826,000 $2,694,152 $2,774,676
Neighborhood Improvements include: West University Pedestrian Lighting, Bethel Path
Neighborhood Parks Improvements include: Scobert, Monroe, Trainsong, and Acorn Parks
ATTACHMENT B
City of Eugene
HOME and ADDI Allocations Summary
HOMEProgram 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 $0 $1,144,174
Consolidated Plan 2005
2005-06 $782,795 $15,000 $54,288 $108,576 $125,000 $1,085,759
2006-07 $810,466 $0 $51,170 $102,350 $59,514 $1,023,500
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
2006-07 $19,037 n/a n/a n/a $19,037 $19,037
*
CHDO=Community Housing Development Organization
ATTACHMENTC
Committee Membership
CDBG Advisory Committee Members:
Betsy Ford, chair
Drix
Joel Iboa
Pat Larson
Hugh Massengill
Jericho Schwab
Tim Shearer
Rita Svanks
Janet Yood
HPB Members:
Lane County, Bobby Green At Large:
City of Eugene, Jennifer Solomon Norton Cabell
City of Springfield, Dave Ralston Roxie Cuellar
Brita Fischer
Virginia Thompson
John Wagner
John VanLandingham
CDBG Non-profit Capital Project Review Team Members:
Randy Derrick, chair
Joel Iboa
Pat Larson
Hugh Massengill
Terry Webster
Janet Yood
ATTACHMENT D
History of CDBG Non-profit Capital Funding
NON-PROFIT AGENCIES FY 86/87 – FY95/96 – FY99/00 – FY03/04- FY05/06 -FY07-08 TOTAL
FY94/95 FY98/99 FY02/03 FY04/05 06/07 Proposed RECEIVED
Alvord-Taylor House 26,500 26,500
American Red Cross 31,500 40,000 71,500
Birth to Three 122,000 122,000
Catholic Community Services 27,500 91,880 119,380
Centro LatinoAmericano 131,500 34,000 73,000 238,500
Child Care, Inc. 90,000 90,000
Community Center for the Performing Arts 22,500 22,500
Easter Seals 18,550 15,000 33,550
FOOD for Lane County 189,150 170,000 359,150
Goodwill Industries 15,000 15,000
Head Start of Lane County 53,000 53,000
HIV Alliance 135,200 5,200 53,000 69,700 263,100
(includes HOPWA grant)
Independent Environments 45,000 45,000
Laurel Hill Center 30,500 30,500
Law & Advocacy Center (Legal Aid) 55,350 20,681 76,031
Looking Glass 49,200 56,000 24,000 78,840 134,308 342,348
NEDCO 12,000 12,000
Pearl Buck Center 56,200 25,000 7,500 88,700
Relief Nursery 114,500 35,500 25,000 175,000
Sexual Assault Support Services 30,000 30,000
Sharehouse 20,000 20,000
ShelterCare 28,450 55,000 36,700 124,702 244,852
Sponsors 19,000 10,000 16,966 45,966
St Vincent dePaul 10,000 200,000 123,000 333,000
White Bird 230,740 30,000 328,418
Willamette Family Treatment Services 164,050 18,000 65,456 127,869 277,697
Womenspace 45,000 22,000 40,000 107,000
YMCA 41,000 41,000
March 5, 2007