HomeMy WebLinkAbout09-209JUNE 9, 2009 09 -209 RESOLUTION
(CARRIED 7 -0 LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE AMENDMENT TO 2008 CDBG ACTION PLAN TO
APPLY FOR 2008 CDBG -R AMERICAN RECOVERY AND
REINVESTMENT ACT FUNDS (STIMULUS FUNDS) TO BE USED
FOR HOUSING REHABILITATION AND TO OFF -SETS COST OF
PUBLIC PARKING LOT RECONSTRUCTION IN CENTRAL CITY
INITIATED BY: DEPARTMENT OF COMMUNITY DEVELOPMENT
WHEREAS, the American Recovery and Reinvestment Act of 2009 included $1
billion in additional Community Development Block Grant (CDBG) funding; and
WHEREAS, the CDBG -R Recovery Act funds enable local governments to
undertake a wide range of activities intended to create suitable living environments,
provide decent affordable housing and create economic opportunities, primarily for
persons of low and moderate income; and
WHEREAS, the City of Oshkosh is eligible to apply for approximately $223,362 in
CDBG -R Recovery Act funds; and
WHEREAS, funds would be used for owner occupied housing rehabilitation loans
and to off -set costs associated with the reconstruction of a public parking lot in the
central city; and
WHEREAS, if received, said funds would be received under the 2008 Community
Development Block Grant fiscal year and require that the 2008 Action Plan be
amended.
NOW, THEREFORE, BE IT RESOLVED that the Common Council hereby
approves applying for and accepting 2008 CDBG -R funds for purposes as noted above
and approves amending the 2008 CDBG Action Plan for purposes of same, contingent
upon final approval by the U.S. Department of Housing and Urban Development of the
projected funds and proposed 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.
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ON THE WATER
TO: Honorable Mayor and Members of the Common Council
FROM: Jackson Ki ey
Director of o unity Development
DATE: June 5, 2009
RE: Approve Amendment to 2008 CDBG Action Plan to Apply for 2008 CDBG -R American
Recovery & Reinvestment Act Funds (Stimulus Funds) to be used for Housing
Rehabilitation and to off -set Cost of Public Parking Lot Reconstruction in Central City
BACKGROUND
Annually, the CDBG Action Plan is prepared and brought before the Council to demonstrate how federal
funds from the Department of Housing and Urban Development will be spent within the City. The
American Recovery and Reinvestment Act of 2009 (Public Law 111 -5) that was signed into law on
February 17, 2009, appropriated supplemental grant funding for the City of Oshkosh in the estimated
amount of $223,362. This funding (sometimes referred to as recovery or as stimulus funding) must be
incorporated as an amendment to the 2008 Action Plan, which was approved by the Common Council on
November 27, 2007. Requiring that the funding be attached to the 2008 Action Plan was a stipulation to
ensure that the funds would be expended on a timely basis. Due to the quick turnaround required by
HUD, Council approval of this amendment is needed at this time.
Funds contain many stipulations on their use and must be allocated for projects that: preserve or create
jobs and promote economic recovery; assist those most impacted by the recession; provide investment
needed to increase economic efficiency; invest in transportation, environmental protection or other
infrastructure that will provide long -term economic benefit; minimize or avoid reductions in essential
services; or foster energy independence. Timeframes on expenditures are very tight so that projects must
be "shovel ready ". Below please find a narrative illustrating proposed activity and funding level for the
American Recovery and Reinvestment Act of 2009 funds.
A neighborhood meeting was held to inform the public of the proposed activity and funding level for the
American Recovery and Reinvestment Act of 2009 funds on June 3, 2009.
ANALYSIS
The American Recovery and Reinvestment Act of 2009 grant funds must follow the Department -of
Housing and Urban Development (HUD) regulations that require substantial benefit to low to moderate
income (LMI) persons or low to moderate income areas. As proposed, all funds will be expended on
activities that benefit LMI persons. Below please find project descriptions:
Housing Rehabilitation Program funding is used to make 0% interest deferred payment loans to six
existing low- moderate income homeowners to make home repairs that correct code violations, abate
energy inefficiencies, address lead based paint and asbestos hazards through improvements including, but
not limited to new roofing, exterior repair, new furnaces, window and door replacement/repair, lead paint
mitigation, home and attic insulation, electrical and plumbing upgrades, and asbestos abatement.
Housing Rehabilitation acts to advance the objectives of the American Recovery and Reinvestment Act
by retaining and creating jobs of general contractors, assisting low- moderate income families affected by
the recession, investing in environmental protection and fostering energy independence. The funding for
this activity is proposed to be allocated at $134,000.
Public Parking Lot Reconstruction. Program funding is used to offset the costs associated with the
installation of LED lighting and the construction of bio- filtration areas within the 400 Block (East) North
Main Street parking lot reconstruction. The funding for this activity is proposed to be allocated at
$89,362 and is detailed further below.
The Light Emitting Diode (LED) lighting activity will offset and supplement the costs associated with the
removal and replacement of approximately 29 twenty -five year old inefficient and outdated high- pressure
sodium lights and expand the lighting system to include an addition on the publically owned parking lot
that serves residents and business of a central city LMI area. The project will include installation of
modern poles and energy efficient LED fixtures to take advantage of the energy savings, reduce
carbon /greenhouse gas emissions as well as provide a reduction in maintenance costs for the community.
The installation of parking lot light emitting diode (LED) lighting acts to advance the objectives of the
American Recovery and Reinvestment Act by retaining jobs of electricians, assisting the
redevelopment /progress of a low- moderate income area, investing in environmental protection and
fostering energy independence. The funding for this activity is proposed to be allocated at $41,000.
The construction of the bio - filtration areas will consist of the installation of 2 bio- filtration areas,
comprising a total surface area of 2,200 square feet with a depth of approximately 1.5 to 2 feet deep, to
service a parking lot that serves residents and businesses of a central city LMI area. The bio - filtration
areas are a component of a larger project to fully reconstruct an existing public parking lot. The existing
lot does not include any utilities for retention or cleaning of storm water runoff. The bio - filtration areas to
be partially funded by this grant are designed to remove pollutants from storm water runoff associated
with the hard surface of the parking lot prior to discharge to local rivers and lakes. The funding for this
activity is proposed to be allocated at $48,362. Should the parking lot project not proceed, we would
need to submit a plan amendment to HUD to request a reallocation of funds.
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 supplemental grant funding included in the American Recovery
and Reinvestment Act will continue this benefit.
RECOMMENDATION
Recommend approval of the amendment to 2008 CDBG Action Plan to apply for 2008 CDBG -R
American Recovery & Reinvestment Act Funds (Stimulus Funds) to be used for housing rehabilitation
and to off -set cost of public parking lot reconstruction in central city.
Approved,
City Manager