HomeMy WebLinkAboutItem 2D: Approval of Reprogramming of CDBG Funds
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UGENE ITY OUNCIL
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GENDA TEM UMMARY
Approval of Reprogramming of Community Development Block Grant Funds
Meeting Date: January 26, 2009 Agenda Item Number: 2D
Department: Planning & Development Department Staff Contact: Stephanie Jennings
www.eugene-or.gov Contact Telephone Number: 682-5529
ISSUE STATEMENT
The City Council is asked to approve the reprogramming of Community Development Block Grant
(CDBG) funds from the River Rock Glen Project to three other uses. This adjustment reflects changes
in the River Rock Glen Project and will enable timely use of CDBG funds.
BACKGROUND
The City of Eugene established current goals and programs for the use of Federal HOME Investment
Partnership Program (HOME) funds and CDBG funds to benefit low-income people through the
adopted 2005 Consolidated Plan. Each year, the City Council approves the allocation of federal funds
from the U.S. Department of Housing and Urban Development (HUD) through a One-Year Action Plan.
From time to time, the City Council also approves reprogramming of federal funds among projects and
programs to facilitate timely use of CDBG funds. Each year on May 1, HUD conducts a timeliness test
to confirm that the City is expending CDBG funds in accordance with regulations.
In 2008, the City Council approved the reprogramming of CDBG funds for use in two affordable
housing projects in order to meet the HUD timeliness test. The first project - acquisition of an apartment
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complex at 1070 West 6 Avenue by St. Vincent dePaul Society – received up to $400,000 for
acquisition and tenant relocation costs. The complex has been successfully acquired and rehabilitation
is underway. For the second project, the City approved the use of up to $330,000 to assist low-income
residents of the River Rock Glen manufactured home park. Specifically, the CDBG funds would
provide $11,000 to each qualified low-income household for the purchase of a cooperative share in the
park. Park representatives initially estimated that 33 households would qualify for this assistance,
however only 13 households have qualified for assistance following months of outreach. As a result, the
project can only utilize a total of $143,000 in CDBG funds at this time.
Therefore, $187,000 in CDBG funds is available for reprogramming. Two sources of funds
reprogrammed in 2008 included the CDBG Business Development Fund and the CDBG Housing
Rehabilitation Fund. Staff recommends: 1) return $95,000 to the Business Development Fund; and 2)
return $77,000 to the Housing Rehabilitation Fund.
In addition, staff recommends reprogramming the remaining $15,000 to augment previously approved
CDBG funding for the Acorn Park Street Sidewalk Project. The City Council originally approved the
use of $40,000 in CDBG funds for this project on April 9, 2007. Delays and cost increases in this
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project resulted from a change in the sidewalk location from the east side of Acorn Park Street to the
west side to protect adjacent wetlands. The new construction estimate includes costs to comply with
stormwater standards and to provide additional access ramps. Reprogramming of CDBG funds will
facilitate the City’s ability to meet the next timeliness test that will be conducted on May 1, 2009.
RELATED CITY POLICIES
The recommended proposals support the City’s affordable housing, economic development, and
neighborhood goals established in the 2005 Consolidated Plan, which guides the use of federal CDBG
and HOME 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 has four options:
1.Approve funding for all three proposals as recommended.
2.Approve funding for two of the proposals as recommended.
3.Approve funding for one of the proposals as recommended.
4.Decline to approve funding for all three proposals.
CITY MANAGER’S RECOMMENDATION
The City Manager recommends Option #1: Approve reprogramming of CDBG funding from the River
Rock Glen Project to the Business Development Fund, Housing Rehabilitation Fund, and to the Acorn
Park Street Sidewalk Project.
SUGGESTED MOTION
Move to approve reprogramming of $187,000 CDBG funds from the River Rock Glen Project to the
Business Development Fund, Housing Rehabilitation Fund, and to the Acorn Park Street Sidewalk
Project. The Business Development Fund will receive $95,000 and the Housing Rehabilitation Fund
will receive $77,000. The Acorn Park Street Sidewalk Project will receive $15,000.
ATTACHMENTS
A. Location Maps for River Rock Glen and Acorn Park Street Sidewalk Project
FOR MORE INFORMATION
Staff Contact: Stephanie Jennings, Grants Manager
Telephone: 682-5529
Staff E-Mail: stephanie.a.jennings@ci.eugene.or.us
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ATTACHMENT A
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