HomeMy WebLinkAboutItem 2D: Reprogramming of CDBG Funds
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UGENE ITY OUNCIL
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Reprogramming of Community Development Block Grant Funds
Meeting Date: April 27, 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 a non-profit capital grant of $91,800 for Catholic Community Services (CCS) to
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use for CCS to acquire 1464 West 6 Avenue. This adjustment reflects CCS’s determination to relocate
its operation rather than expand the building at their current location. Reprogramming the funds will
serve the original intent of the application and provide a greater benefit for the recipients of CCS
services.
BACKGROUND
The City of Eugene established current goals and programs for the use of 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 council also approves reprogramming of
federal funds among projects and programs to facilitate timely use of CDBG funds or to address
unavoidable changes in approved projects.
In the FY 2005/2006 allocation process, the council approved a CDBG non-profit capital improvement
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grant of $91,800 for CCS to expand its Eugene Community Services Center at 1095 West 7 Avenue.
The expansion was specifically intended to increase the size of food distribution and food storage
capacity. Due to electrical, plumbing, and mechanical limitations of the current facility, CCS
determined it was necessary to relocate its operation rather than to expand the building. CCS has
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identified a replacement facility at 1464 West 6 Avenue, and negotiated an option to purchase the site.
As a result, CCS requests use of the previously awarded CDBG funds toward the purchase of the new
property.
After review of the CCS request, staff has determined that the new use of funds will serve the original
intent of the application and actually provide a greater benefit for the recipients of CCS services. The
new location will offer additional office and counseling space as well as additional parking that can not
be added at their current location. Private sources will fund the majority of the purchase. No additional
CDBG funding is necessary for the project to proceed. Reprogramming of CDBG funds will facilitate
CCS’s ability to acquire the new facility.
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To allocate funds to specific programs or projects, HUD regulations require a citizen participation
process, including advertising a 30-day written comment period and a public hearing to be held at a
CDBG Advisory Committee meeting, followed by City Council action. A display advertisement for a
public hearing in front of the CDBG Advisory Committee was published in the Register Guard on
March 15, 2009. No written comments were received and no community members spoke at the CDBG
Advisory Committee public hearing on April 14, 2009. CCS provided project information in a letter to
the Whiteaker Community Council and offered to provide additional information or tours of the current
and future sites.
RELATED CITY POLICIES
The recommended proposals support the City’s affordable housing and neighborhood goals established
in the 2005 Consolidated Plan, which guides the use of federal CDBG through 2010.
COUNCIL OPTIONS
The City Council has two options:
1.Approve reprogramming as recommended.
2.Decline to approve reprogramming.
CITY MANAGER’S RECOMMENDATION
The City Manager recommends Option #1: Approve reprogramming of CDBG funding from the CCS
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non-profit capital grant of $91,800 to an acquisition grant for the purchase of 1464 West 6 Avenue.
SUGGESTED MOTION
Move to approve reprogramming of $91,800 CDBG funds from the Catholic Community Services non-
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profit capital grant to an acquisition grant for the purchase of 1464 West 6 Avenue.
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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