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HomeMy WebLinkAbout01. 21-166BLOCK GRANT ANNUAL ACTION PLAN INITIATED BY: COMMUNITY DEVELOPMENT DEPARTMENT PLAN COMMISSION RECOMMENDATION: Approved WHEREAS, the primary objective of Title I of the Housing and Community Development Act of 1974, as amended, is the development of viable urban communities, by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low- and moderate- income; and WHEREAS, the 2021 Annual Action Plan to implement the 2020-2024 Consolidated Plan has been developed to ensure that the activities to be carried out meet one of the national objectives of benefit to low- and moderate-income families; or aid in the prevention or elimination of slums or blight; or meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health and welfare of the community; and WHEREAS, the City developed the 2021 Annual Action Plan and presented the Plan to the Plan Commission on April 6, 2021 and at a neighborhood meeting on April 7, 2021. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the 2021 Annual Action Plan is hereby approved contingent upon final approval by the U.S. Department of Housing and Urban Development of the projected use of funds and proposed projects, including any proposed acquisition projects. BE IT FURTHER RESOLVED that the proper City officials are hereby authorized and directed to file and execute the necessary documents and assurances required by the U.S. Department of Housing and Urban Development and any and all additional information required. APRIL 13, 2021 21-166 RESOLUTION (CARRIED__7-0_____LOST_______LAID OVER_______WITHDRAWN_______) PURPOSE: APPROVE SUBMITTAL OF 2021 COMMUNITY DEVELOPMENT APRIL 13, 2021 21-166 RESOLUTION CONT’D BE IT FURTHER RESOLVED that the City hereby accepts the 2021 CDBG entitlement funds in the amount of $828,550 from the U.S. Department of Housing and Urban Development and the proper officials are hereby authorized to carry out all actions necessary to implement the City’s obligations under the terms of the grant agreement. TO: Honorable Mayor and Members of the Common Council FROM: Allen Davis. Community Development Director DATE: April 8, 2021 RE: Approve Submittal of 2021 Community Development Block Grant Action Plan BACKGROUND/ANALYSIS The City of Oshkosh is a US Department of Housing and Urban Development (HUD) designated ‘entitlement community’ and receives Community Development Block Grant (CDBG) funds annually. Entitlement communities are cities with a population greater than 50,000 and receive CDBG funding each year based on congressional appropriations. The 2021 allocation is $828,550 (see attached proposed budget). The 2021 Program Year begins May 1, 2021 and will end April 30, 2022. Each year the City prepares a CDBG Action Plan that indicates to HUD how federal funds will be spent. HUD regulations require that at least 70% of CDBG funds benefit low to moderate income (LMI) eligible persons. Examples include housing rehabilitation loans for owner occupied homes, public service organizations serving L MI persons, home ownership for income eligible families, and slum and blight removal in low to moderate income areas. It should be noted that CDBG funds are not used to assist neighborhoods in the creation of neighborhood associations. These types of act ivities are part of the City's agreement with Oshkosh Healthy Neighborhoods (formerly known as GO-HNI) and are supported through the Healthy Neighborhood Initiatives fund. The City does, however, support neighborhoods through the acquisition, demolition, and/or rehabilitation of slum and blight properties with CDBG funds. City staff also collaborate with housing partners in the construction of new single family homes for income qualified homebuyers, such as the ADVOCAP Youth Build house at 654 Frederick Street (Middle Village Neighborhood) and the twindominium project s on Grove Street (Menominee South Neighborhood) with Habitat for Humanity and the Oshkosh/Winnebago County Housing Authority. Public Service applications are currently being accepted and will be evaluated by a committee consisting of representatives from Oshkosh Area United Way, Oshkosh Area Community Foundation, and the City of Oshkosh. Council Member Erickson is a member of this Committee. Funding for public service programs and activities can represent no more than 15% of the allocation. Staff is recommending that the City allocate $120,000 for general public service organizations serving low to moderate income persons. Owner occupied housing improvement applications (non -public service) were accepted by the Community Development Department through March 15. Applications for down payment assistance to income qualified homebuyers or emergency repairs for health and safety issues are accepted throughout the year. Property owners within approved neighborhood associations who are over HUD income guidelines can apply for rehab assistance through the City's Ne ighborhood Initiative Program. Non-public service allocations are included in the minimum requirement that 70% of CDBG funds benefit LMI persons. Staff is recommending that the City allocate $406,550 for the Housing Improvement Program for owner occupied units, down payment assistance, the maintenance code violation program, Rock the Block, and emergency repairs. Remaining funding is recommended to be allocated to Central City Redevelopment for removal of slum and blight and funds to assist a non-profit with public facility improvements ($209,000); the Fair Housing Center of Northeast Wisconsin to provide fair housing counseling, outreach, education and technical assistance services and Administration/Community Planning ($93,000) to offset staff costs associated with oversight, management, and training opportunities of the CDBG program and consultants to assist in preparation of various plans (i.e. Phase I/II environmental assessments). FISCAL IMPACT The program allocates the City's entire 2021 CDBG program allocation of $828,550. While the CDBG program does not require leveraging, the program does leverage other resources. The City budgets funds for additional programs for housing related activities, public improvements, landscaping, curb appeal projects and acquisition of properties to eliminate slum and blight in the Capital Improvements Program and through the Healthy Neighborhood Initiatives program. All these programs/activities leverage additional tax dollars being brought into the City. RECOMMENDATION Council approves submittal of the 2021 Community Development Block Grant Action Plan to the US Department of Housing and Urban Development. Plan Commission made a determination of consistency at its April 6, 2021 meeting that the proposed programs and activities in the 2021 Annual Action Plan are consistent with the City’s 2040 Comprehensive Plan, official maps, or other planned activities of the City. Respectfully Submitted, Approved, Allen Davis Mark Rohloff Community Development Director City Manager ITEM: PUBLIC HEARING: REVIEW 2021 ANNUAL ACTION PLAN COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM Plan Commission meeting of April 6, 2021. BACKGROUND Staff requests review and acceptance of the 2021 Annual Action Plan for the Community Development Block Grant Program (CDBG). The purpose of this review is for the Plan Commission to make a determination of consistency that the proposed projects/activities in the 2021 Annual Action Plan are consistent with the City’s 2005-2025 Comprehensive Plan, Comprehensive Plan Update 2040, official maps, or other planned activities of the City. ANALYSIS Staff is requesting the Plan Commission to review and accept proposed projects/activities designed to meet one of the national objectives (listed below) of the CDBG program, and recommend Council authorize submittal of the 2021 CDBG Action Plan. - Benefit to low- and moderate-income (LMI) persons - Aid in the prevention or elimination of slums or blight, and - Meet a need having a particular urgency (i.e. flooding, tornado, etc.) Annually, the City prepares and submits to the US Department of Housing and Urban Development (HUD), an Action Plan to demonstrate how estimated federal CDBG funds will be spent. The 2021 Program Year begins May 1, 2021 and ends April 30, 2022. The 2021 allocation is $828,550. As proposed, the 2021 allocation and carry over funds from the 2020 program year, over 70% of CDBG funds will benefit low to moderate income (LMI) persons during the program year. Public Service applications are currently being accepted by the City until April 9 and will be reviewed by the Grant Committee consisting of representatives from Oshkosh Area United Way, Oshkosh Area Community Foundation, the Common Council and the community. Staff is recommending the following allocations: - $120,000 for public service activities/programs. Public Service allocations can represent no more than 15% of the total funds spent (current year and previous year unspent) during the program year. - $260,550 for owner occupied housing improvement loans. Applications were due to the City by March 15. Housing rehab projects are included in the 70% rule of CDBG funds for LMI persons. - $50,000 for maintenance code violation program to assist low to moderate income homeowners make repairs who have received code violation citations from the City - $40,000 to assist low to moderate income homebuyers with downpayment assistance 2 and/or closing costs - $56,000 for rehab, landscaping, curb appeal type projects and smoke/carbon monoxide detectors installed associated with Rock the Block event - $59,000 for central city redevelopment for acquisition of properties for the removal of slum and blight - $150,000 to assist a non-profit with public facility improvements - $93,000 Administration & Fair Housing Final Step Prior to Council consideration, the Action Plan is reviewed by the Plan Commission for consistency with the City’s 2005-2025 Comprehensive Plan, Comprehensive Plan Update 2040, official maps, and other planned activities of the City. Staff has reviewed all proposed projects and activities and none have been identified as being contrary to the Comprehensive Plan, as updated, official maps, or other planned activities of the City. RECOMMENDATIONS/CONDITIONS Staff recommends acceptance of the 2021 Annual Action Plan for the Community Development Block Grant Program, together with a determination of consistency that projects/activities identified above and listed on the attached are not in conflict with the City of Oshkosh Comprehensive Plan, as amended, official maps or other planned activities of the City. The Plan Commission recommended acceptance of the 2021 Annual Action Plan for the Community Development Block Grant Program, together with a determination of consistency that projects/activities identified above and listed on the attached are not in conflict with the City of Oshkosh Comprehensive Plan, as amended, official maps or other planned activities of 2021 CDBG Entitlement Allocation Housing $ 350,550 Housing Improvement Program $ 260,550 Code Violation Program $ 50,000 Downpayment Assistance $ 40,000 Neighborhood Initiatives $ 56,000 Central City $ 59,000 Public Facility Improvement $ 150,000 Public Service $ 120,000 Admin $ 93,000 Fair Housing $ 19,000 Admin $ 74,000 TOTAL $ 828,550 3 the City. The following is the Plan Commission’s discussion on this item. Staff report accepted as part of the record. Staff is requesting the Plan Commission review and accept the proposed projects/activities designed to meet one of the national objectives of the CDBG program and recommend Council authorize submittal of the 2021 CDBG Action Plan. Ms. Brandt presented the item. The City prepares and submits an annual Action Plan to demonstrate how estimated federal CDBG funds will be spent to the US Department of Housing and Urban Development (HUD). The 2021 Program Year begins May 1, 2021 and ends April 30, 2022. The 2021 allocation is $828,550. As proposed, over 70% of CDBG funds will benefit low to moderate income (LMI) persons during the program year . The City is currently accepting Public Service applications until April 9 and the applications will be reviewed by a Grant Committee consisting of representatives from Oshkosh Area United Way, Oshkosh Area Community Foundation, the Common Council, and the community. Ms. Brandt shared the allocations proposed by staff and recommended acceptance of the 2021 Annual Action Plan for the Community Development Block Grant Program, together with a determination of consistency that the projects/activities identified are not in conflict with the City of Oshkosh Comprehensive Plan, as amended, official maps or other planned activities of the City. Ms. Propp opened up technical questions to staff. Mr. Mitchell stated that he wanted to congratulate Ms. Brandt on her retirement, adding that she has been very effective and a joy to work with. It is a sad day for those who work in affordable housing, but he wishes her the best. Mr. Mitchell stated that at the last meeting there were one or two new developments being proposed on the west side of town and they discussed the possibility of somehow incorporating affordable housing. There ends up being a concentration of wealth in a small area which impacts the neighborhood and schools. He knows that it’s really important to invest in our essential city, but he is wondering if there might be an opportunity to explore ways in which CDBG funds can be utilized to expand the area in which affordable housing is available, whether that be lot acquisitions or supporting a development that has affordable units. He asked if there is a map showing where CDBG funds have been used over the last 15 -20 years. Ms. Brandt replied that there is no such map. Mr. Mitchell replied that it might be an interesting thing to look at and maybe that’s a great job for a future intern. It may show that funds are being invested in areas with higher concentrations of poverty, but the investment of funds in some of the other areas might allow for a better mixed income neighborhood. Ms. Brandt replied that there was a map for housing improvement loans, but it wouldn’t be possible for public service because it’s too difficult to identify specific sites for that. She can see 4 if Mr. Nau has time to update the housing improvement loan map. To answer his question regarding new construction for affordable housing, CDBG funds cannot be used for new construction. So any new construction would not be eligible for even potential consideration under CDBG. Mr. Mitchell replied that maybe there are other avenues in which those funds can be utilized, not necessarily brick and mortar construction. In the future it would be great for the reports to include what are they are trying to achieve with the allocations and a follow up with measurable outcomes that can be shared related to these funds. Maybe that already exists, but he hasn’t seen it in any of these presentations. Ms. Propp opened the public hearing. There were no public comments on this item. Ms. Propp closed the public hearing. Motion by Mitchell to adopt the findings and recommendation as stated in the staff report. Seconded by Coulibaly. Ms. Propp asked if there was any discussion on the motion. There was no discussion on the motion. Motion carried 7-0.