HomeMy WebLinkAboutItem 4: 2010/11 Funding Allocations for Federal CDBG and HOME Programs
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Action: Approval of 2010/11 Funding Allocations for Federal Community Development
Block Grant and HOME Investment Partnership Programs
Meeting Date: April 26, 2010 Agenda Item Number: 4
Department: Planning & Development Staff Contact: Stephanie Jennings
www.eugene-or.gov Contact Telephone Number: 541-682-5529
ISSUE STATEMENT
The City Council is asked to approve the allocation of funds received through two Federal programs
administered by the U.S. Department of Housing and Urban Development (HUD). Through the
Community Development Block Grant program (CDBG), Eugene may allocate $1,498,340 in
entitlement grant funds, $185,000 in unused funds from previous years, as well as $1,450,000 in
program income. Through the HOME Investment Partnership Program (HOME), Eugene may allocate
$1,084,892 in entitlement grant funds, $96,447 in unused funds from previous years, and $85,000 in
program income.
BACKGROUND
Each spring, the City Council approves funding allocations for use of CDBG and HOME funds for the
next fiscal year starting July 1, 2010, and ending June 30, 2011. The proposed uses of funds are
described and submitted to HUD each year in a document called the One-Year Action Plan. The Action
Plan must be submitted to HUD by May 15, 2010. The proposed uses of funding must align with the
local community needs and strategic plan described in the Eugene-Springfield 2010 Consolidated Plan.
The CDBG Advisory Committee advises the City on the use of CDBG funds and the Housing Policy
Board (HPB) advises the City on the use of HOME funds. In addition, the Action Plan must provide an
update on the City’s use of the Section 108 and Brownfield Economic Development Initiative (BEDI)
funds. Activities under the CDBG, HOME, and Section 108/BEDI programs are described below.
Community Development Block Grant (CDBG)
The primary purpose of CDBG is to address the needs of low- and moderate-income persons. The City
is a CDBG entitlement jurisdiction and has received annual entitlement grants since 1975. Each year,
the Community Development Block Grant (CDBG) Advisory Committee, a Departmental Advisory
Committee, reviews requests for CDBG funds, holds a public hearing, and makes a final
recommendation to staff for use of CDBG funds for the next fiscal year. Funds available for allocation
for 2010/11 are described below:
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New entitlement grant funds ($1,498,340)
– Each year Congress appropriates funds for CDBG
and HUD distributes funds according to a formula to entitlement jurisdictions. The City of
Eugene’s entitlement allocation for FY 2010/11 exceeds the previous year’s grant by $112,744.
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Unused funds from previous entitlement grants ($185,000)
– As part of the 2010/11
allocation process, staff recommend reprogramming $185,000 in funds from entitlement grants
received in previous years. Of the total amount available for reprogramming, $143,000 was
previously allocated for acquisition costs associated with the RiverRock Glen manufactured
home park. The City Council originally approved use of CDBG funds for this purpose on March
10, 2008. However, the resident association seeking to acquire the park has been unable to
secure primary financing needed for acquisition. As a result, these funds are available for
reprogramming. The remaining $42,000 comes from lower than expected construction costs
from multiple nonprofit capital facility construction projects.
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Program Income ($1,450,000)
– The City of Eugene expects to receive $1,450,000 in program
income through two revolving loans that have been established with CDBG funds. The Business
Development Fund will generate an estimated $1,100,000 in 2010/11 and the Housing
Rehabilitation Fund will generate an estimated $350,000. In accordance with HUD
requirements, program income from revolving loan funds can only be allocated to further the
activities of the respective loan funds.
The CDBG Advisory Committee held a public hearing and adopted a final recommendation for use of
CDBG funds on April 13, 2010. The recommended allocation includes funding for the housing
landbank, operating funds for nine social service programs, five nonprofit capital facility projects, curb
ramps, audible pedestrian signals, business development loans, microenterprise training, and program
administration. The package of recommended uses will address critical community needs for social
services, affordable housing, employment and business growth, and accessibility improvements.
Attachment A provides a table showing the sources, recommended uses, and a brief description for each
use of funds.
HOME Investment Partnership Program
The primary purpose of HOME is to expand the supply of housing affordable to low-income persons.
The City is the lead entity in the Eugene-Springfield Home Consortium, which has received annual
entitlement grants since 1992. The Eugene-Springfield Consortium will receive $1,549,846 in HOME
funds in 2010/11. This entitlement allocation is $14,356 less than the amount received in the previous
year. Eugene will receive 70 percent of entitlement grant funds ($1,084,892) and Springfield will
receive 30 percent ($464,954). In addition, $96,447 in unused funds from prior years and $85,000 in
program income is available for allocation. The unused funds were allocated for Housing Development
in 2009/10 but were not designated for any specific project. The expected program income will come
from repayments received through the Homebuyer Assistance Program and from other housing
development loans.
The HPB met on April 5, held a public hearing, and made a recommendation for allocation of HOME
funds to both jurisdictions. HPB recommends that HOME funds be divided among three program areas:
1) Housing Development Programs; 2) Homebuyer Assistance Program (HAP); and 3) Community
Development Housing Organization (CHDO) Operating Support. The proposed allocation is similar to
previous allocation of HOME funds and maintains support for a mix of housing development,
homebuyer assistance, and organizational support. In addition to these programs, Eugene staff
anticipates up to $1,000,000 will be available for HOME interim financing. Through HOME interim
financing, the City makes short-term loans for HOME eligible uses with funds dedicated, but not yet
disbursed, for specific projects. The amount of funds available for HOME interim financing is
dependent on project timing. Attachment B includes a table that provides the sources, recommended
uses, and a brief description for each use of funds.
Section 108 Loan Guarantee Program
In July 2006, HUD selected the City’s Section 108 application to create a $9,895,000 loan pool, together
with 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
Section 108 loan as a financing tool. The non-emergency ordinance established the City’s general
ability to borrow for Section 108 projects with individual projects to be approved by council resolution.
The City has focused use of the Section 108/BEDI funds on the Beam Development project at the heart
of downtown. 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.
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Section 108/BEDI funds will be utilized in two stages: Project #1 loan for acquisition of the properties
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and Project #2 loan to Beam Development for rehabilitation of the Centre Court building. The City
Council approved a resolution in support of Project #1 on July 23, 2007, and a resolution for Project #2
on January 11, 2010.
RELATED CITY POLICIES
The Action Plan must be developed in accordance with the Eugene-Springfield 2010 Consolidated Plan,
which assesses local needs and establishes a five-year strategic plan. 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.
The Action Plan is also consistent with other plans adopted by the local jurisdictions, such as the
Residential Land Use and Housing Element of the Metropolitan Area General Plan, Eugene City
Council Adopted Growth Management Policies, the Lane County Ten-Year Plan to End Chronic
Homelessness, and the Lane County Continuum of Care Plan.
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 2010/11.
CITY MANAGER’S RECOMMENDATION
The City Manager recommends approval of the One-Year Action Plan for use of Federal CDBG and
HOME funds in 2010/11.
SUGGESTED MOTION
Move to approve the One-Year Action Plan for use of Federal CDBG and HOME funds in 2010/11.
ATTACHMENTS
A. CDBG Sources and Uses Table and Summary of Recommended Uses
B. HOME Allocation Table and Summary of Recommended Uses
C. CDBG Advisory Committee and Housing Policy Board Membership
FOR MORE INFORMATION
Staff Contact: Stephanie Jennings
Telephone: 682-5529
Staff E-Mail: stephanie.a.jennings@ci.eugene.or.us
ATTACHMENT A – CDBG Sources and Uses Table and Summary of Recommended Uses
SOURCES OF FUNDS
AMOUNT
ENTITLEMENT GRANT
$ 1,498,340
UNUSED FUNDS FROM PREVIOUS YEARS
RiverRock Glen manufactured home park$ 143,000
Cost savings from nonprofit facility construction projects$ 42,000
TOTAL
$ 1,683,340
RECOMMENDED USES OF FUNDS
AMOUNT
AFFORDABLE HOUSING
Landbanking$ 151,740
PUBLIC SERVICES
Social Service Agencies (HSC)$ 350,000
Non-Profit Capital Improvements
$ 33,000
Food for Lane County Dining Room - accessibility improvements
$ 41,000
Head Start Whiteaker School - plumbing and flooring
$ 248,600
Looking Glass New Roads - acquisition and rehabilitation
$ 55,000
Pearl Buck Center - air conditioning for vocational center
$ 34,000
St. Vincent de Paul Lindholm Center - roof replacement
PUBLIC ACCESSIBILITY IMPROVEMENTS
Curb Ramps$ 54,000
Audible Pedestrian Signals$ 36,000
ECONOMIC DEVELOPMENT
Business Loan Progam$ 200,000
Microenterprise Training Program$ 30,000
ADMINISTRATION
$ 450,000
TOTAL
$ 1,683,340
PROGRAM INCOME
INCOMEUSE
Business Loan Progam$ 1,100,000$ 1,100,000
Microenterprise Training Program$ 350,000$ 350,000
TOTAL
$ 1,450,000$ 1,450,000
Landbanking for Affordable Housing Development
– $151,740 is recommended to support the
landbanking for affordable housing program. Through this program, the City provides critical resources
for the purchase of land and associated infrastructure costs to be made available for the development of
homes and rental units for low-income 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. In addition, it will be necessary to make infrastructure improvements to one
parcel already owned by the City.
Housing Rehabilitation Fund
– No new funds are recommended as the program can sustain itself
through prior year allocations and $350,000 in program income. The program offers low-interest loans
for improvements to residences occupied by low-income homeowners and tenants. Emergency repair
grants and loans of up to $5,000 are provided to very low-income homeowners for minor repairs and
accessibility features. Grants of up to $5,000 for accessibility improvements are made to tenants with
disabilities.
Public Services Operations
- $350,000 is recommended to support 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.
Non-profit Capital Facility Projects
- The City issued a request for proposals for nonprofit facility
improvements and received proposals for funding from six local agencies totaling $591,000. This
significant volume is due to the fact that the City did not offer CDBG funding for such projects in the
previous fiscal year and does not plan to next year. Funding is recommended for five projects:
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Food for Lane County Dining Room - $33,000 for accessibility improvements to the entrance
and two bathrooms. Last year, the Dining Room served over 57,000 meals to low-income
persons.
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Head Start Whiteaker School - $41,000 for plumbing improvements so classrooms may have
access to hot water and for replacement of flooring. This facility is an early intervention pre-
school and serves 177 children.
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Looking Glass New Roads - $248,600 for acquisition and rehabilitation of property located at
th
931 West 7 Avenue in order to expand space for services provided at Looking Glass New
Roads to homeless youth. New Roads serves over 40 youth each day and received 11,000 youth
visits in 2009.
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Pearl Buck Vocational Center - $55,000 for installation of air conditioning at the Vocational
Center for persons with developmental disabilities. The facility improvements would improve
working conditions for 74 Pearl Buck clients.
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St. Vincent de Paul Lindholm Center - $34,000 for roof replacement of Eugene’s primary day
access center for homeless individuals. The facility served 4,627 persons last year.
Curb Ramps
- $54,000 is recommended to 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
- $36,000 is recommended to support the installation of Accessible
Pedestrian Devices (APDs) at existing signalized intersections to remove barriers for persons with
disabilities. The CDBG funded APDs provide audible and tactile cues to assist pedestrians in making
safe decisions when crossing at intersection crosswalks. 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.
Business Development Fund (BDF)
- $200,000 in new funds is recommended to augment $1,100,000
in program income to finance loans to businesses resulting in the creation of jobs for low-income
persons. 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.
Lane MicroBusiness -
$30,000 is recommended to support microenterprise training conducted by Lane
MicroBusiness (aka eDEV). These funds will provide micro-enterprise business development services
such as training, education, and workshops for Eugene low-income micro-business entrepreneurs.
Administration
- $450,000 is requested for administration which includes support for project
implementation, fair housing activities, the City’s Central Services allocation, the annual audit, and
general program administration.
ATTACHMENT B – HOME Sources and Uses Table and Summary of Recommended Uses
SOURCES OF FUNDS
AMOUNT
ENTITLEMENT GRANT
$ 1,084,892
UNUSED FUNDS FROM PREVIOUS YEARS
$ 96,447
PROGRAM INCOME
$ 85,000
TOTAL
$ 1,266,339
RECOMMENDED USES OF FUNDS
AMOUNT
HOUSING DEVELOPMENT
$ 857,850
HOMEBUYER ASSISTANCE PROGRAM
$ 250,000
CHDO OPERATING SUPPORT
$ 50,000
ADMINISTRATION
$ 108,489
Housing Development
– $857,850 is recommended to support Housing Development activities
including 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 allocated for Housing Development through an annual RFP processes. Eugene’s 2010
RFP was released February 26and proposals are due May 26. The Allocations Committee of the HPB
will review the proposals in May, HPB will hold a public hearing and make a recommendation in July,
and the recommendation is scheduled to be considered by City Council in July.
Homebuyer Assistance Program (HAP)
– $165,000 in new funds and up to an additional $85,000 in
program income is recommended to support HAP. Through HAP, the City offers up to $10,000 in
downpayment assistance to low-income households seeking to purchase homes.
Community Development Housing Organization (CHDO) Operating Funds
– $50,000 is
recommended for CHDO operating support to expand the capacity of CHDOs to develop affordable
housing. There are four active CHDOs including: Mainstream Housing, Inc, Metropolitan Affordable
Housing Corporation (Metro), Neighborhood Economic Development Corporation (NEDCO), and
St.Vincent dePaul Society of Lane County, Inc. All CHDOs must be certified or recertified each year in
order to receive CHDO Operating Funds.
Administration -
$108,489 is recommended for Administration costs. The Federal grant management
system automatically budgets 10% of new HOME funds for administration.
ATTACHMENTC– CDBG Advisory Committee and Housing Policy Board Membership
CDBG Advisory Committee
Victoria Bosch
Drix
John Fisher
Linda Hamilton
Joel Iboa
Jericho Schwab
Tim Shearer, Chairperson
Rita Svanks
Janet Yood
Housing Policy Board
Bill Dwyer, Lane County Commissioner
Chris Pryor, Eugene City Councilor
Dave Ralston, Springfield City Councilor
Norton Cabell, Chairperson
Susannah Meininger
Virginia Thompson
John Wagner
John VanLandingham