HomeMy WebLinkAboutItem 2C: 2009/10 CDBG and HOME Funding
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Approval of 2009/10 Funding Allocations for Federal Community Development Block
Grant and HOME Investment Partnership Programs
Meeting Date: April 27, 2009 Agenda Item Number: 2C
Department: Planning & Development Staff Contact: Stephanie Jennings
www.eugene-or.gov Contact Telephone Number: 682-5529
ISSUE STATEMENT
The City Council is asked to approve the allocation of funds in two federal programs funded by the U.S.
Department of Housing and Urban Development (HUD). Through the Community Development Block
Grant (CDBG) program, Eugene will allocate an estimated $1,410,000 in entitlement grant funds and
unused funding from previous years as well as $1,295,000 in program income. Through the HOME
Investment Partnership Program (HOME), Eugene will allocate an estimated $983,029 in entitlement
grant funds as well as $85,000 in program income.
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. The annual funding allocations, called One-Year
Action Plans, are prepared in the context of the five-year HUD Consolidated Plan. Fiscal Year 2009/10
will be the fifth 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 funds.
In past years, the City has received a specific allocation of new CDBG and HOME funds prior to the
deadline for submission of the One-Year Action Plan to HUD. Due to delays in approval of the federal
budget, HUD has not yet released the City’s allocation but the timeline for submission of the One-Year
Action Plan has not changed. As a result, staff has developed an allocation plan based on an estimate of
funding to be received. The allocation plan also identifies uses of funds should the City receive an
allocation greater than the estimated budget.
Community Development Block Grant (CDBG)
The Community Development Block Grant (CDBG) Advisory Committee (CDBG-AC) conducted a
public hearing on April 14, 2008, on the preliminary recommendation for use of funds. The CDBG-AC
and staff recommend the following use of CDBG funds for 2009/10. The allocation includes $1,360,000
in new grant funds, $50,000 in unused funds from previous years, and $1,295,000 in program income
from the housing and business loan programs. Grant funds are recommended for use as follows.
Landbanking for Low-Income Housing Development
– $ 300,000: This is the first request for
landbanking funds in the past five years. Through this program, the City provides critical resources for
the purchase of land to be made available for the development of homes and rental units for low-income
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families. Staff is currently investigating several potential landbank sites and anticipates identification of
one or more sites for purchase within the next fiscal year. Timing is ideal for acquisition given
declining real estate prices and an increase in the number of sites available for purchase. There are
currently four sites in the landbank program for low-income housing: Willow Creek, County Farm
Road, Willakenzie, and Westmoreland. The Willakenzie School site will be awarded for development
through the 2009 Housing Request for Proposals (RFP), leaving three landbank sites.
Housing Rehabilitation
– $230,000: These funds along with program income and carryover from
previous years will allow the City to respond to increased demand for rehabilitation funds. Program
income is estimated at $325,000 for 2009/10. 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: Public Services funding supports the operations of nonprofit
agencies selected and managed through 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. Programs 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
- $0: Due to significant funding for Non-Profit Capital
Facilities in previous years, the committee and staff recommend no new funding at this time. The
typical selection process includes an RFP process with review and funding recommended to the full
CDBG-AC by a team of four CDBG-AC members and a community member with construction
expertise.
Curb Ramps
- $50,000: These funds will support the installation of curb ramps on existing streets and
sidewalks to remove barriers for persons with disabilities. The funds will be used to install curb ramps
at city-wide locations. The Public Works Department works in coordination with the Accessibility
Committee of the Human Rights Commission to identify and prioritize placement of curb ramps.
Accessible Pedestrian Signals
- $30,000: These funds will support the installation of accessible
pedestrian signals (APSs) at existing signalized intersections to remove barriers for persons with
disabilities. The CDBG funded APSs 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. The Public Works Department works in coordination with the Accessibility
Committee of the Human Rights Commission to identify and prioritize placement of accessible
pedestrian signals.
Accessibility Improvements to City-Owned Facilities -
$0: Due to significant funding for
accessibility improvements in City-owned facilities in previous years, the committee and staff
recommends no new funding at this time.
Business Development Fund (BDF)
- $0: The BDF will continue to operate using $970,000 in
program income for loans to businesses creating jobs for low-income persons. Loan repayments are
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restricted to re-lending activity within the revolving fund. The BDF is a CDBG revolving loan fund for
new and expanding local businesses that promotes job creation for low and moderate income
individuals. 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.
Lane MicroBusiness -
$30,000: These funds will support micro-enterprise training conducted by Lane
MicroBusiness. These funds will provide micro-enterprise business development services such as
training, education, and workshops for Eugene low-income micro-business entrepreneurs.
Public Improvements to Low-Income Neighborhoods
- $0: Due to significant needs in other areas
due to current economic conditions, the committee and staff recommend no new funding at this time.
CDBG funds are used to make capital improvements to low-income neighborhoods in Eugene. The
improvements may include streets, alleys, sidewalks, neighborhood parks, street lighting, and traffic
calming within areas that meet CDBG requirements. Most recently, CDBG funds have been used to
improve facilities within Acorn Park, add traffic calming measures to Acorn Park Street, and install a
sidewalk along a portion of Acorn Park Street. Other previously funded projects include pedestrian-
level street lights in the West University neighborhood and a pedestrian path along Bethel Drive adjacent
to the Trainsong Neighborhood.
Administration
- $420,000: These funds will support project implementation, fair housing activities,
the City’s Central Services allocation, the annual audit, and general program administration. The
amount of funds for administration has remained the same for the past four years.
Uses of Additional CDBG Funds
Given that the exact amount of CDBG funds is not yet known, the committee and staff developed a
recommendation for use of any additional funds received up to $200,000. Funding would be added to
any amounts specified above. The CDBG Advisory Committee recommends funding of the following
items ranked in order, as funding allows:
1.Curb Ramps - $10,000
2.Accessible Pedestrian Signals - $35,000
3.Micro-Enterprise Training Program - $10,000
4.Sheldon Community Center Accessible Bathroom - $25,000
5.Hult Center Accessible Toilet - $15,000
6.Housing Rehabilitation Program - $55,000
7.Landbanking Program - $50,000
Section 108 Loan Guarantee Program
In July 2006, HUD approved 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 Section 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.
The City received approval for its first individual Section 108 project for the acquisition of downtown
property from the Portland field office in August of 2007. Due to unanticipated changes in the
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development financing and plan for the West Broadway redevelopment area, the individual project
application was revised in March 2008. The revised application proposed to utilize a combination of
federal and local funds to support the redevelopment of properties at the heart of downtown, along
Broadway and Willamette Street. Under this revised application the City acquired two properties (four
tax lots) with $2.7 million in Federal Section 108 Loan Guarantee Program funds and $0.685 million in
BEDI grant funds. The City has an agreement with Beam Development to transform the important
intersection of Willamette and Broadway into a vital area with restaurants, retailers, and office space.
The scale of the buildings will entail new construction of a five-story building and historic rehabilitation
of the existing five-story and two-story buildings known as the Centre Court and Washburne buildings,
respectively.
The City anticipates participation in the Beam project through the use of Section 108/BEDI in a second
phase also. In the first phase (Section 108 Loan #1), the City acquired the properties. For the second
phase, the City anticipates providing construction financing to Beam through a loan of Section
108/BEDI funds. The construction financing would be the City’s Section 108 Loan #2.
HOME Investment Partnerships Program/American Dream Down Payment Initiative
The Eugene-Springfield Consortium will receive an estimated $1,404,328 in Federal HOME Investment
Partnerships Program (HOME) funding in fiscal year 2009/10. These funds will continue to be split
70/30 between the two jurisdictions; Eugene will receive $983,029 and Springfield will receive
$421,299. 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 HOME program administration.
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 up to $1,000,000 will be available for HOME interim financing. This amount may change
depending upon project timing and overall availability of funds.
Housing Development
– $670,726: 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 2009 RFP was released March 26 and proposals are due
May 29. The Allocations Committee of the Housing Policy Board will review the proposals in June,
Housing Policy will hold a public hearing and make a recommendation in July, and the recommendation
will be considered by council in September.
Homebuyer Assistance Program (HAP)
– $165,000 in new funds and up to an additional $85,000
based on how much program income is received. Eugene offers up to $10,000 in down payment
assistance at closing to eligible households seeking to purchase homes. The funds are repaid upon resale
.
of the homeEugene set a goal for 25 HAP loans for the 2008-09, fiscal year, and has completed 15
loans thus far. Staff continues to actively seek out opportunities to partner with developers to create
more affordable home ownership options. In these cases, staff recommends increasing the loan amount
up to $20,000 when appropriate.
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
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for this item is $70,000. Eugene’s contribution is $49,000 and Springfield’s contribution is $21,000.
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 $17,500. All CHDOs must be certified or recertified each year in order to receive CHDO
Operating Funds.
Administration -
$98,303: 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.
Additional Funds
– HPB recommends that any additional funds received above the estimated budget be
added to the Housing Development budget.
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 and HOME funds for 2009/10.
CITY MANAGER’S RECOMMENDATION
The City Manager recommends approval of the One-Year Action Plan for use of Federal CDBG and
HOME funds in 2009/10.
SUGGESTED MOTION
Move to approve the One-Year Action Plan for use of Federal CDBG and HOME funds in
2009/10.
ATTACHMENTS
A. CDBG-Five Year Summary of One-Year Action Plans
B. Summary of HOME Allocations
C. CDBG Advisory Committee, CDBG Non-Profit Capital Project Review Team, and Housing Policy
Board Members Lists
FOR MORE INFORMATION
Staff Contact: Stephanie Jennings
Telephone: 682-5529
Staff E-Mail: stephanie.a.jennings@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 2007-08
HOUSING
Housing Rehabilitation 173,000 195,000 0 0 0 0 250,000 215,784 230,000
Program Income 363,380 395,000 446,000 510,000 450,000 425,000 400,000 450,000 325,000
Housing Development 300,000 300,000 100,000 385,400 400,000 0 0 0 300,000
Program Income 255,000 200,000 0
PUBLIC SERVICES
Operations 392,000 395,000 370,000 389,350 389,350 390,000 350,000 350,000 350,000
Non-profit Capital Projects 90,000 110,000 250,000 240,000 165,000 246,773 277,978 150,500 0
Program Income 76,708
CITY CAPITAL PROJECTS
Facilities Access Improvements 125,000 130,000 178,000 159,000 130,530 297,379 0 50,000 0
Curb Ramps 50,000 50,000 50,000 75,000 60,000 60,000 60,000 60,000 50,000
Neighborhood Projects 42,250 70,000 0 0 0 0
Neighborhood Matching Grants 21,000 10,000 10,000 0 0 0 0 0 0
Neighborhood Parks 0 13,000 61,000 0 35,000 140,000 0 92,000 0
Accessible Pedestrian Signals 0 59,990 65,000 30,000
ECONOMIC DEVELOPMENT
Business Loan Program 0 0 200,000 0 0 0 0 215,500 0
Program Income 584,286 610,000 575,000 518,000 710,000 650,000 625,000 785,000 970,000
Micro-enterprise Training 25,000 30,000 35,000 25,000 0 25,000 0 30,000 30,000
ADMINISTRATION
Planning & Implementation 370,000 370,000 400,000 412,000 416,120 420,000 420,000 420,000 420,000
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 $1,415,794 $1,360,000
Total Estimated Program Income $947,666 $1,005,000 $1,021,000 $1,028,000 $1,160,000 $1,075,000 $1,356,708 $1,435,000 $1,295,000
Prior Years’ Funding $0 $0 $75,000 $15,000 $0 $40,000 $0 $233,000 $50,000
GRAND TOTAL $2,493,666 $2,608,000 $2,680,000 $2,756,000 $2,826,000 $2,694,152 $2,774,676 $3,083,794 $2,705,000
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ATTACHMENT B
City of Eugene
HOME and ADDI Allocations Summary
HOMEProgram New Construction/ CHDO Operating* Administration Downpayment Assistance Total
Acquisition HOME ADDI
2000-01 $812,750 $50,715 $101,430 $50,000 $1,014,300
2001-02 $959,140 $56,420 $112,840 $0 $1,128,400
2002-03 $862,115 $56,595 $113,190 $100,000 $1,131,900
2003-04 $872,915 $57,230 $114,461 $100,000 $56,702 $1,201,308
2004-05 $972,548 $57,209 $114,417 $0 $66,910 $1,211,084
2005-06 $782,795 $54,288 $108,576 $125,000 $38,154 $1,108,813
2006-07 $810,466 $51,170 $102,350 $59,514• $19,037 $1,042,537
2007-08 $655,983• $50,806 $101,619 $207,805• $19,037 $1,035,253
2008-09 $693,462• $49,000 $ 98,308 $142,309• $ 7,692 $ 990,770
2009-10P $670,726 $49,000 $ 98,303 $165,000• $0 $ 983,029
ROPOSED
•Supplemented by program income (earned by loan payments) and prior year carryover funds.
*
CHDO=Community Housing Development Organization
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ATTACHMENTC
Committee Membership
CDBG Advisory Committee Members:
Victoria Bosch
Drix
John Fisher
Linda Hamilton
Joel Iboa
Jericho Schwab
Tim Shearer, Chairperson
Rita Svanks
Janet Yood
Housing Policy Board Members:
Lane County, Bill Dwyer At Large:
City of Eugene, Chris Pryor Norton Cabell, Chairperson
City of Springfield, Dave Ralston Brita Fischer
Susannah Meininger
Virginia Thompson
John Wagner
John VanLandingham
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