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Home My WebLink About08-425NOVEMBER 25, 2008 08 -425 RESOLUTION (CARRIED 7 -0 LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVAL OF SUBMITTAL OF 2009 COMMUNITY DEVELOPMENT BLOCK GRANT ACTION PLAN INITIATED BY: DEPARTMENT OF COMMUNITY DEVELOPMENT WHEREAS, the primary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 Common Council has approved a Consolidated Plan for the period from 2005 -2009 which contains a housing and homeless needs assessment, housing market analysis, an assessment of non - housing community development needs, strategies, priority needs and objectives; and WHEREAS, the 2009 Annual Action Plan to implement the 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 2009 Action Plan and presented the Plan at a Neighborhood Public Hearing on October 30, 2008 and to the Plan Commission on November 4, 2008. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the 2009 Action Plan is hereby approved contingent upon final approval by the U.S. Department of Housing and Urban Development of the projected 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. ___2009_Community_Deve lopment_Block_Grant Program Action _PAan— _.____ If more or less funds are received than estimated, funds will be split 70% toward Housing /Neighborhood Development projects and the remaining 30% to Central City. Projects Est. 2009 Allocation Est. LMI Benefit I. Central City Development & Community Facilities A. Targeted Central City Redevelopment $150,000 $150,000 Subtotal II. Housing /Neighborhood Development A. Housing Rehabilitation B. Rental Rehabilitation C. Neighborhood Initiatives /Development $200,000 $50,000 $59,500 $200,000 $50,000 $59,500 $309,500 $309,500 Subtotal III. Public Services A. B. C. D. E. General Public Services Fair Housing Center of Northeast WI Oshkosh Housing Authority Oshkosh Srs. Center Health Program Oshkosh Srs. Center Fitness Program $96,000 $10,000 $17,000 $8,555 $6,445 $96,000 $0 $17,000 $8,555 $6,445 $138,000 $128,000 Subtotal IV. Administration & Planning A. Administration and Salaries $175,000 B. Public Services Consortium Admin. $10,000 $185,000 Subtotal Totall $782,5001 $437,500 If more or less funds are received than estimated, funds will be split 70% toward Housing /Neighborhood Development projects and the remaining 30% to Central City. 0 OYHKOlH ON THE WATER TO: Honorable Mayor and Members of the Common Council FROM: Jackson Ki y (j�?Development .,c� Director of ity DATE: November 18, 2008 RE: Approval of Submittal of 2009 Community Development Block Grant Action Plan (Plan Commission Recommends Approval) BACKGROUND Annually, the CDBG Action Plan is prepared to demonstrate how estimated federal funds from the Department of Housing and Urban Development will be spent in the City. The 2009 Program Year begins May 1, 2009 and will end April 30, 2010. Attached please find a table illustrating proposed program and activity funding for the 2009 CDBG Action Plan. The 2009 entitlement grant is estimated at $782,500, which represents a 5% reduction in the 2008 program year allocation. Major project categories include Central City Development & Community Facilities, Housing and Neighborhood Development, Public Services and Administration. A neighborhood meeting was held to inform the public of the proposed 2009 CDBG Action Plan budget on October 30, 2008. At its November 4, 2008 meeting the Plan Commission reviewed the Action Plan for consistency with the City's Comprehensive and other adopted plans and found the projects proposed in compliance with those plans. ANALYSIS The Department of Housing and Urban Development (HUD) regulations require that at least 70% of CDBG funds benefit low to moderate income (LMI) persons over a three year certification period. As proposed, approximately 70% of the funds subject to LMI benefit calculations will be expended on activities that benefit LMI persons. The 2009 Action Plan includes four major project categories funding 11 individual CDBG eligible activities. Below please find program funding activity descriptions: Central City Development and Community Facilities Targeted Central City Development & Community Facilities This is an opportunity based fund that is primarily used to meet the CDBG program's goal of the elimination of slum and blight that typically involve the acquisition and clearance of blighted properties in and around the central city. It is recommended that this activity be funded with $150,000. Housing and Neighborhood Development Housing Rehabilitation Program funding is used to make 0% interest deferred payment loans to existing homeowners and first time homebuyers participating in the Housing Authority's First Time Homebuyer Program. Applications for general rehabilitation are accepted from December to March and projects are prioritized on the basis of property condition, income and special needs of the household. Emergency applications are accepted year round. A portion of the funds are segregated for emergency applications and applications from the Near East Neighborhood, which are accepted throughout the year. It is recommended that this activity be funded with $200,000. Rental Rehabilitation Because HOME funds are becoming more difficult to obtain, a portion of the CDBG rehabilitation funds are reserved for rehabilitation of rental units, including downtown second floor conversions and rentals in the Near East Neighborhood. It is recommended that this activity be funded with $50,000. Neighborhood Initiatives/Development These funds will support ongoing activities including support of national night out and property acquisition and /or relocation. Staff will work with the other government agencies and non - profit groups to identify appropriate additional undertakings. It is recommended that this activity be funded with $59,500. Public Services General Public Services This activity funds programs that serve local residents (primarily LMI) for various public service related activities such as emergency shelter and advocacy services offered by the Christine Ann Domestic Abuse Center, emergency assistance grants by the Red Cross, literacy programs, nutrition programs, etc. Public Service funds are contributed to an overall public service consortium of funds that include moneys from Winnebago County, the Oshkosh Community Foundation, and the United Way. It is recommended that this activity be funded with $96,000. Following the Council's approval of the general public services line item allocation, a review committee is formed that includes four citizen members representing the City, two members from the Community Foundation, two members from the United Way and one member from Winnebago County. The committee will meet in December 2008, at which time applications for general public service funds are reviewed and ranked, then funding decisions are made. The decision of what nonprofit agency is funded and at what level is made following said allocation. Agencies that were funded in the 2008 Program Year are shown in the table below: Agency Program Allocation ADVOCAP Winnebago County Nutrition Program $10,625 American Red Cross Bridges Emergency Assistance Program $19,625 Christine Ann Domestic Abuse Services Emergency Shelter & Advocacy Services $9,625 Christine Ann Domestic Abuse Services Children and Teen Support Groups $4,625 UW- Oshkosh Living Healthy Community Clinic Living Healthy Community Clinic $16,625 Hope & Care Center Stipends & Supplies $4,625 Winnebago County Literacy Council Adult and Family Literacy Tutoring $9,625 ADVOCAP Project "POWER" Provide opportunities for women's employment & retention (Victims of abuse to be self sufficient.) $6,625 Reach Counseling Services Sexual Abuse Treatment Program $5,000 Winnebago Conflict Resolution Center, Inc. Mediation Services $4,625 Wisconsin Interfaith Needs Res onse(WINR) Transportation Assistance for Needy Families $4,625 Fair Housing Center of Northeast Wisconsin This activity provides funding for fair housing assistance, housing discrimination investigation and regulation and landlord - tenant training programs. It is recommended that this activity be funded with $10,000. Oshkosh Housing Authority These funds are used to support administrative costs of the First Time Homebuyer program, which provides education and financial assistance to low to moderate - income first time homebuyers. It is recommended that this activity be funded with $17,000. Oshkosh Seniors Center Health and Fitness Program This activity provides funding to allow the Oshkosh Seniors Center to offer its health and fitness programs to senior residents. It is recommended that these activities be funded with a total of $15,000. Administration Administration and Salaries This activity provides funding for City staff involved in administration of the CDBG program. A total of $175,000 is needed to fund salaries associated with the CDBG program. Public Services Consortium Administration This activity provides funding for services involved with administration of public service consortium funding. Staff from the United Way and Oshkosh Community Foundation administers the grant application and oversee the consortium process. It is recommended that this activity be funded with $10,000. FISCAL IMPACT The City of Oshkosh has been an Entitlement Community in the United States Department of Housing and Urban Development Community Development Block Grant (CDBG) program since 1976. The federal funds allocated to the city have had a substantial positive impact on the community, especially of low and moderate income residents. The estimated 2009 allocation will continue this benefit as outlined above. RECOMMENDATION Recommend approval of the 2009 Community Development Block Grant Program Action Plan budgeting. The Plan Commission approved of the 2009 Capital Improvements Program and the 2009 CDBG Action Plan allocations at its November 4, 2008 meeting. Approved, City Manager