HomeMy WebLinkAboutItem 2C: Approval of CDBG and HOME Funding Allocations
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Approval of 2006-07 Funding Allocations for Federal Community Development
Block Grant, HOME Investment Partnerships, and American Dream
Downpayment Initiative Programs
Meeting Date: May 8, 2006 Agenda Item Number: 2C
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 2006-07, Eugene will receive $1,417,968
plus $1,356,708 in program income from the Community Development Block Grant (CDBG),
$1,023,500 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. Next fiscal year will be the
second 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 17, 2006, and recommends the following use of CDBG funds for 2006-07. The allocation
includes $1,417,986 in new grant funds, $1,025,000 in program income from the housing and business
loan programs, $255,000 from sale of landbanked sites, and $76,708 in repayment from a non-profit
facility that was sold. The amount of new grant dollars represents a 9% cut in CDBG funding from the
previous year. New grant funds are recommended for use as follows:
Housing Development - No new funds are recommended. The City anticipates receiving $400,000 in
program income from the sale of 20 single-family lots at the Walnut Grove subdivision. The final phase
at Walnut Grove is being developed by the Housing and Community Services Agency. The final phase
includes 27 low-income rental units to be called Turtle Creek Apartments and the sale at market rate of
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the 20 single-family lots. In addition, the City will receive $55,000 in program income from the sale of
the WOW Hall back parking lot to the Community Center for the Performing Arts. This is a portion of
the downtown housing land bank site for the WestTown on 8th project. That project will offer 102 low-
income units along with nine live-work units. Staff continues to seek site acquisition opportunities on
an ongoing basis. If a site is identified in 2006-07, program income can be used towards the acquisition.
There are currently five sites in the landbank program for low-income housing: Willow Creek, County
Farm Road, Willakenzie, Westmoreland, and Royal-Danebo. The Royal-Danebo site was offered in the
recent Request for Proposals and the recommendation for development will be presented to the City
Council on June 12, 2006.
Housing Rehabilitation - $250,000 in new grant funds will be allocated next year. These funds will be
used with program income of $400,000 to provide low-interest loans through the City’s Housing
Rehabilitation Loan Program for improvements to residences occupied by low-income homeowners and
tenants. Emergency repair loans of up to $5,000 will be provided to very low-income homeowners and
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). Next year is the second year in the HSC’s two-
year funding cycle. Public service funding is capped at 15% of new grant funds and program income
from the prior fiscal year. The reduction in overall CDBG funding resulted in a $40,000 reduction in
this program area. The HSC is seeking other funding sources to replace this loss.
Non-profit Capital Projects - $277,978 in new funds combined with $76,708 in program income will be
used to rehabilitate five facilities for four local non-profit service providers. The program income was
received from the sale of Centro LatinoAmericano’s Los Unidos Men’s Shelter. CDBG funds were used
towards the acquisition of the facility (as a deferred loan) and also funded recent improvements to the
kitchen (as a grant to be forgiven over ten years). Unfortunately, the facility closed in January 2006 and
grant funds were repaid. Projects recommended for next fiscal year include:
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Head Start of Lane County – The agency will receive $53,000 for roof repair and exterior paint at
the former Whiteaker School site located at 21 Grand Street. Head Start provides pre-school classes
and parent support services for low-income families. In addition to the Head Start functions at the
site, the agency leases space to the Early Childhood Coordinating Agency for Referral, Evaluation
and Services (EC-CARES) and The Child Center. These agencies will also benefit from the roofing
project. All agencies serve eligible CDBG clientele. Head Start served 160 youth at the Whiteaker
location last year.
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HIV Alliance - The agency will receive $69,700 to reconfigure client services space in the recently
constructed addition at 1966 Garden Avenue. Confidential meeting spaces, a multipurpose room for
client support groups, and a medical examination room will be created. The alliance collaborates
with community partners and volunteers to assist and support people facing the challenges of HIV
and AIDS. HIV Alliance served 116 clients from Eugene in 2005.
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Looking Glass New Roads Program – The agency will receive $134,308 to upgrade the facility at
th
941 West 7 Avenue. The facility houses the drop-in center and service areas for runaway and
homeless youth. Last year, the agency served 1,486 youth at the center. The improvements will
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expand the capacity for serving runaway and homeless youth and will improve the safety and
security for youth residing in the second floor residential units. The lobby and gathering area will be
painted and new carpeting will be installed. Electrical issues will be addressed and lighting will be
upgraded. Four confidential service areas will be created. The utility/shower room will be returned
to the original use by moving the medical exam room for the Safe & Sound Youth Project Medical
Clinic to two adjacent rooms. Storage space for homeless youth will be created. A fence will be
installed along the alley. The roof will be repaired or replaced. The two stairwells leading to the
second floor apartments will be secured and a staff service delivery space will be created on the
second floor.
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Willamette Family, Inc. will receive $23,078 to install a new roof at the Men’s Treatment Facility at
1420 Green Acres Road. The facility provides residential alcohol and drug treatment services as
well as out patient treatment for men struggling with addiction. The agency served over 300 men
last year.
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Willamette Family, Inc. will receive $74,600 to install a new roof at the Women’s Treatment Facility
located at 687 Cheshire Street. The facility provides residential alcohol and drug treatment services
as well as outpatient treatment for women and their children. The agency served over 400 women
last year.
City Capital Projects - $60,000 in new grant funds will be used to install sidewalk curb ramps at city-
wide locations. The Public Works Department maintenance crew installs these ramps throughout the
year based on requests from residents.
$59,990 in new funds will be used to install accessible pedestrian signals at locations prioritized by the
Human Rights Commission Accessibility Committee. The accessibility committee continues to seek
additional funding sources and to advocate for installation of these signals. The locations currently
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proposed include: West 11 Avenue and City View, Coburg and Willakenzie, 29 and Willamette, 25
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and Willamette, 30 and Hilyard, River Road and Division, Franklin and Agate, East 6 and High
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Street, West 8 and Chambers, East 24 and Hilyard, and West 11 and Seneca.
Economic Development – No new funds are recommended. $625,000 in program income will be used
with $218,535 in carryover to fund loans to businesses creating jobs for low-income persons through the
Business Development Fund and the Emerging Business Loan Pool. Loans may also be made through
this category to eliminate slums and blighted conditions.
Administration - $420,000 in new funds will be used for project implementation, fair housing activities,
the City’s Central Services allocation, the annual audit, environmental assessment services, and general
program administration. This is the same level of funding as in the previous year, 2004/05.
HOME Investment Partnerships Program/American Dream Downpayment Initiative
The Eugene-Springfield Consortium will receive $1,462,142 in Federal HOME Investment Partnerships
Program (HOME) funding in fiscal year 2006-07. The funds will continue to be split 70/30 between the
two jurisdictions with Eugene receiving $1,023,500 and Springfield receiving $438,642. This represents
a 5.7% decrease in funding. HOME funds can be used for new construction or rehabilitation of housing
units which will be affordable to low- and moderate-income households, for the acquisition of eligible
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properties by for-profit and nonprofit developers, for tenant-based rental assistance and security deposit
programs, for home buyer programs, for support of local Community Housing Development
Organizations (CHDO), and for program administration.
In addition to HOME Program funds, the American Dream Downpayment Initiative (ADDI) was signed
into law in 2003. This program provides downpayment, closing costs, and rehabilitation assistance for
first-time homebuyers and will be administered as part of the HOME Program. Next year, the
consortium with receive $27,197, split 70/30 between Eugene and Springfield. Eugene will receive
$19,037 and Springfield will receive $8,160. This represents a 50% decrease from last year.
Acquisition/New Construction - $810,466 in new HOME funds and $15,000 in prior year’s funds will
be used to acquire existing units identified by nonprofits, construction of new units, and rehabilitation.
Projects in this category are selected through a Request for Proposals (RFP) process. The City of
Eugene 2006 RFP was released in December with proposals due March 1, 2006. Funds will be awarded
in conjunction with the Royal Danebo landbank parcel and for other acquisitions identified by
developers in the RFP process. Recommendations from the current round will be presented the City
Council on June 12, 2006.
Downpayment Assistance - $59,514 in HOME funds, $19,037 in ADDI funds, and $70,000 in program
income will be used with carryover funds for downpayment assistance through Eugene’s Homebuyer
Assistance Program (HAP). Up to $6,000 is provided at closing to eligible households. The funds are
repaid to the City upon resale of the home.The goal is to fund 40 downpayment assistance loans next
program year.
Interim Financing – Eugene continues to offer interim financing on affordable housing projects as
funding is available. This method of financing supports the affordability of local housing projects and
allows Eugene to expend HOME funds in a timely manner. Based on the results of the request for
proposals process that is currently underway, there may be funding available for this interim use in
2006-07. There are no interim loans currently and no program income is expected in 2006-07.
Community Housing Development Organization (CHDO) Operating Funds – The 5% of new grant
funds allowed for CHDOs is allocated at the consortium level. CHDO operating funds will be split
equally between the four active CHDOs: Metropolitan Affordable Housing Corporation, Neighborhood
Economic Development Corporation (NEDCO), St. Vincent dePaul, and Mainstream Housing, Inc.
Each CHDO will receive $18,275.
Administration - $102,350 in HOME funds is used for administration, project management, and long
term compliance monitoring. The Federal grant management system automatically budgets 10% of the
grant amount for administrative efforts.
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.
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COUNCIL OPTIONS
The council can approve or not approve the One-Year Action Plan for use of Federal CDBG, HOME,
and ADDI funds for 2006-07.
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 2006-07.
SUGGESTED MOTION
Move to approve the One-Year Action Plan for use of Federal CDBG, HOME, and ADDI funds in
2006-07.
ATTACHMENTS
A. CDBG-Five Year Summary of One-Year Action Plans
B. Summary of HOME/ADDI Allocations
C. CDBG Advisory Committee 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 0 0 0 0 250,000
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 0 0
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 90,000 110,000 250,000 240,000 165,000 286,773 277,978
Program Income 76,708
CITY CAPITAL PROJECTS
Accessibility Improvements 175,000 180,000 234,000 234,000 190,530 297,379 59,990
Neighborhood Improvements 0 13,000 60,000 42,250 105,000 0 0
Neighborhood Matching Grants 21,000 10,000 10,000 0 0 0 0
Installation of Curb Ramps 0 0 0 0 0 60,000 60,000
Park Improvements 0 0 0 0 0 140,000 0
ECONOMIC DEVELOPMENT
Business Loan Program 0 0 200,000 0 0 0 0
Program Income 584,286 610,000 575,000 518,000 710,000 650,000625,000
Micro-enterprise Training 25,000 30,000 35,000 25,000 0 25,000 0
ADMINISTRATION 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
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 $1,014,895
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 $1,085,659
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 $19,037
*
CHDO=Community Housing Development Organization
ATTACHMENTC
Committee Membership
CDBG Advisory Committee Members:
Betsy Ford, chair Joel Iboa
Pat Larson Hugh Massengill
Tim Shearer Rita Svanks
Janet Yood
HPB Members:
Lane County, Bobby Green At Large: Lea Allen
City of Eugene, Jennifer Solomon Norton Cabell
City of Springfield, Dave Ralston Roxie Cuellar
Virginia Thompson
John Wagner
John VanLandingham
History of CDBG Non-profit Capital Funding
NON-PROFIT AGENCIES FY 86/87 – FY95/96 – FY99/00 – FY03/04- FY05/06 FY06/07 TOTAL
FY94/95 FY98/99 FY02/03 FY04/05 Proposed RECEIVED
Alvord-Taylor House 26,500 0 0 0 0 26,500
American Red Cross 31,500 0 40,000 0 0 71,500
Birth to Three 0 122,000 0 0 0 122,000
Catholic Community Services 27,500 0 0 0 91,880 119,380
Centro LatinoAmericano 131,500 34,000 73,000 0 0 238,500
Child Advocacy Center 0 0 100,000 0 0 0
Child Care, Inc. 0 90,000 0 0 0 90,000
Community Center for the Performing Arts 22,500 0 0 0 0 22,500
Easter Seals 18,550 0 15,000 0 0 33,550
FOOD for Lane County 189,150 0 170,000 0 0 359,150
Goodwill Industries 0 0 15,000 0 0 15,000
HACSA/Heeran Center 0 0 0 170,329 0 0
Head Start of Lane County 53,000 53,000
HIV Alliance 135,200 5,200 0 53,000 0 69,700 263,100
(includes HOPWA grant)
Independent Environments 0 0 0 45,000 0 45,000
Laurel Hill Center 30,500 0 0 0 0 30,500
Law & Advocacy Center (Legal Aid) 55,350 0 0 20,681 0 76,031
Looking Glass 49,200 56,000 24,000 78,840 0 134,308 342,348
NEDCO 0 12,000 0 0 0 12,000
Pearl Buck Center 56,200 25,000 7,500 0 0 88,700
Relief Nursery 114,500 0 35,500 0 0 150,000
Sexual Assault Support Services 0 30,000 0 0 0 30,000
Sharehouse 0 20,000 0 0 0 20,000
ShelterCare 28,450 0 55,000 36,700 124,702 244,852
Sponsors 19,000 0 10,000 16,966 0 45,966
St Vincent dePaul 10,000 0 0 200,000 0 210,000
White Bird 230,740 0 30,000 0 0 97,678 328,418
Willamette Family Treatment Services 164,050 18,000 0 65,456 30,191 277,697
Womenspace 45,000 22,000 0 40,000 40,000 107,000
YMCA 41,000 0 0 0 0 41,000
Note:
Cancelled project amounts are highlighted in grey above; funds were reprogrammed to other non-profit projects.
April 24, 2006