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HomeMy WebLinkAbout10-212JULY 13, 2010 10 -212 RESOLUTION (CARRIED 5 -1 LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVAL OF AND AUTHORIZATION TO SUBMIT THE CITY OF OSHKOSH 2010 -2014 CONSOLIDATED PLAN INITIATED BY: DEPT. OF COMMUNITY DEVELOPMENT 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- to moderate - income; and WHEREAS, the City has developed a Consolidated Plan for the period from 2010 -2014 that contains a housing and homeless needs assessment, housing market analysis, an assessment of nonhousing community development needs, strategies, priority needs and objectives, which ensures that the activities to be carried out meets one of the national objectives of benefit to low- to moderate - income families; or aid in the prevention or elimination of slums and blight; or meet other community development needs having a particular urgency because existing conditions pose a serious immediate threat to the health and welfare of the community; and WHEREAS, the Plan Commission has recommended approval of the Consolidated Plan. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh, that the City of Oshkosh 2010 -2014 Consolidated Plan, on file at the City Clerk's Office, is hereby adopted, contingent upon final approval by the U.S. Department of Housing and Urban Development. BE IT FURTHER RESOLVED that the City Manager and appropriate staff 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. City of Oshkosh 2010 -2014 Proposed Consolidated Plan Summary Community Development Block Grant Program The Consolidated Plan for the Community Development Block Grant (CDBG) Program) describes the needs for housing assistance and non - housing community development. The City of Oshkosh has prepared this Plan for prioritizing the allocation of housing and other assistance monies that may become available from the federal government over a five -year period from May 1, 2010 to April 30, 2015. The Plan consolidates the planning, application and reporting requirements of the Department of Housing and Urban Development (HUD) and also seeks to address urban issues, improve accountability and include citizen participation. This Plan establishes basic goals for assistance to low and moderate income persons by providing decent affordable housing with suitable living environments and by expanding economic opportunities. The City intends to use CDBG funds for census block groups that have a high concentration of low- moderate income persons. Targeted funding will be provided for items such as homebuyer's assistance, owner - occupied and rental housing rehabilitation, demolition of slum and blight, lead -based paint abatement, historic preservation, Fair Housing and public services. Projects will be targeted to areas with higher concentrations of rental housing; areas most significantly affected by foreclosure and housing abandonment; priority areas identified in the Oshkosh 2005 -2025 Comprehensive Plan; and Historic Districts, especially those with high levels of slum and blight. The City may also use CDBG funds for non - housing community development needs such as: neighborhood revitalization, redevelopment and streetscaping; neighborhood and public facilities, community policing and park/ recreational facilities; analysis of zoning and other regulations; survey of properties for historical nomination; creation and support of neighborhood associations and watch groups, implementation of a neighborhood service agency for neighborhood organizing and rehabilitation efforts; and landlord and /or tenant training programs. The City aims to coordinate the expenditure of CDBG funds with the implementation of the Capital Improvement Program (CIP). Activities funded through the CIP plan include, but are not limited to, the upgrade of streets, sidewalks, and sewer /water /storm sewer service lines. With limited amount of funding available, not all needs can be addressed. The City must prioritize what projects need funding while other projects may have to wait or receive significantly smaller amounts of funding. The full version of the proposed 2010 -2014 Consolidated Plan is available for review at the Department of Community Development or the City Clerk's Office or on -line at http: / /www.ci.oshkosh.wi.us /Community Development/Planning Services /index.asp The City of Oshkosh held a public hearing on Thursday, July 1, 2010 at 6:00 PM, at the Oshkosh Seniors Center, 200 N. Campbell Road, to discuss the proposed plans. The City Plan Commission approved of the Plan on July 6, 2010. O.fHKOlH ON THE WATER TO: Honorable Mayor and Members of the Common Council FROM: Darryn Burich� l Director of Planning evices DATE: July 8, 2010 RE: Approve 2010 -2014 Consolidated Plan and 2010 Annual Action Plan, Community Development Block Grant Program BACKGROUND Staff requests approval of the 2010 -2014 Consolidated Plan and 2010 Annual Action Plan for the Community Development Block Grant Program. ANALYSIS Consolidated Plan Every five years, the City is required by the U.S. Department of Housing and Urban Development (HUD) to prepare a five -year Consolidated Plan. The Consolidated Plan serves the following functions: • Outlines participation levels during the preparation of plans; • Acts as an application for federal funds under HUD's formula grant programs; • Serves as a strategy for carrying out HUD programs; and • Provides an action plan, which provides a basis for assessing performance. The Consolidated Plan describes the needs for housing assistance and non - housing community development. The City of Oshkosh has prepared this Plan for prioritizing the allocation of housing and other assistance monies that may become available from the federal government over a five -year period from May 1, 2010 to April 30, 2015. This Plan establishes three basic goals for assistance to low and moderate income (LMI) persons: First, to provide decent affordable housing; second, to provide a suitable living environment; and third, to expand economic opportunities. Assistance in Oshkosh will be directed primarily to low and moderate income census tracts and block groups. Within these geographic areas, priority will be given to the following: • Areas with higher density and areas with high concentrations of rental housing; • Areas most significantly affected by foreclosure and housing abandonment; • Priority areas identified in the City's 2005 -2025 Comprehensive Plan; and • Historic Districts, especially those with high levels of slum and blight. Funding is proposed to be provided for items such as homebuyer's assistance, owner- occupied and rental housing rehabilitation, demolition of slum and blight, lead -based paint abatement, historic preservation, Fair Housing and Public Services. 2010 Annual Action Plan The estimated CDBG budget allocation for the 2010 Program Year was approved as part of the annual Capitol Improvement Program in November 2009; the Consolidated Plan had not yet been updated. At this time, staff is requesting acceptance of the 5 -year consolidated and 2010 action plans with the difference that the budget is no longer estimated and actual amounts, as disseminated by HUD, are included. The actual allocation received by the City was higher than estimated by approximately $135,853 or 17 percent. The difference between estimated and actual funds was distributed between the housing category and central city redevelopment budget categories as necessary to maintain the LMI benefit percentage as well as to remain below funding caps established by HUD. Annually, the CDBG Action Plan is prepared to demonstrate how estimated federal funds from HUD will be spent in the city. The 2010 Program Year began May 1, 2010 and will end April 30, 2011. The 2010 allocation is $929,653 (see attached proposed budget). HUD regulations require that at least 70% of CDBG funds benefit LMI persons over a one to three year certification period. As proposed, over 70% of the funds subject to LMI benefit calculations will be expended on activities that benefit LMI persons. Public Service applications (via the Public Service Consortium allocation process) were evaluated in December 2009 by a 10- member committee consisting of representatives from Oshkosh Area United Way, Winnebago County, Oshkosh Area Community Foundation, and the City of Oshkosh, which included Common Council representative Mayor Esslingler. The City is allocating $98,000 for general public services and $10,000 for Public Service Consortium administration. Public Service allocations are allowed to consist of no more than 15% of the CDBG total allocation. Homeowner Rehabilitation applications were due to the Department of Community Development on March 15. The City received over 60 applications. Department staff evaluated applications based on eligibility and the Loan Committee approved 16 projects with three alternates for the 2010 program year. These applications do not include first -time homebuyer's assistance or emergency repairs. Non - Owner occupied and rental rehabilitation as well as public service allocations listed above make up the required 70+ percent of CDBG funds assisting LMI persons /households. Staff is recommending that the City allocate $330,397 for Housing Rehabilitation. In 2010, the City will initiate a pilot program with the Winnebago Apartment Association for rental rehabilitations. Staff is recommending that the City allocate $40,000 for Rental Rehabilitation. This amount is to be added to unspent rental rehabilitation monies from previous years. Remaining funding is recommended to be distributed to Central City Development and Community Facilities (for removal of blight), Neighborhood Initiatives, Fair Housing Activities, the Oshkosh Housing Authority, Seniors Center and Administration in the amounts shown on the attached proposed budget. FISCAL IMPACT None RECOMMENDATION The Plan Commission made a determination of consistency at its July 6, 2010 meeting for the proposed programs and activities in the 2010 -2014 Consolidated Plan and 2010 Annual Action Plan with the City's 2005 -2025 Comprehensive Plan, official maps, or other planned activities of the City. Approved, City Manager ITEM: APPROVE & AUTHORIZE SUBMITTTAL OF 2010 -2014 CONSOLIDATED PLAN ITEM: APPROVE SUBMITTAL OF 2010 COMMUNITY DEVELOPMENT BLOCK GRANT ACTION PLAN Plan Commission meeting of July 6, 2010 BACKGROUND Staff requests review and acceptance of the 2010 -2014 Consolidated Plan and 2010 Annual Action Plan for the Community Development Block Grant Program. The purpose of this review is for the Plan Commission to make a determination of consistency for the proposed programs and activities in the 2010 -2014 Consolidated Plan and 2010 Annual Action Plan with the City's 2005- 2025 Comprehensive Plan, official maps, or other planned activities of the City. ANALYSIS Consolidated Plan Every five years, the City is required by the U.S. Department of Housing and Urban Development (HUD) to prepare a five -year Consolidated Plan. The Consolidated Plan serves the following functions: • outlines participation levels during the preparation of plans; • acts as an application for federal funds under HUD's formula grant programs; • serves as a strategy for carrying out HUD programs; and • provides an action plan, which provides a basis for assessing performance. The Consolidated Plan describes the needs for housing assistance and non- housing community development. The City of Oshkosh has prepared this Plan for prioritizing the allocation of housing and other assistance monies that may become available from the federal government over a five -year period from May 1, 2010 to April 30, 2015. This Plan establishes three basic goals for assistance to low and moderate income (LMI) persons: First, to provide decent affordable housing; second, to provide a suitable living environment; and third, to expand economic opportunities. Assistance in Oshkosh will be directed primarily to low and moderate income census tracts and block groups. Within these geographic areas, priority will be given to the following: • Areas with higher density and areas with high concentrations of rental housing; • Areas most significantly affected by foreclosure and housing abandonment; • Priority areas identified in the City's 2005 -2025 Comprehensive Plan; and • Historic Districts, especially those with high levels of slum and blight. Funding is proposed to be provided for items such as homebuyer's assistance, owner - occupied and rental housing rehabilitation, demolition of slum and blight, lead -based paint abatement, historic preservation, Fair Housing and Public Services. 2010 Annual Action Plan Annually, the CDBG Action Plan is prepared to demonstrate how estimated federal funds from HUD will be spent in the city. The 2010 Program Year began May 1, 2010 and will end April 30, 2011. The 2010 allocation is $929,653 (see attached proposed budget). HUD regulations require that at least 70% of CDBG funds benefit LMI persons over a one to three year certification period. As proposed, over 70% of the funds subject to LMI benefit calculations will be expended on activities that benefit LMI persons. This action plan represents the first year of a three -year reporting period covering 2010, 2011 and 2012. Public Service applications (via the Consortium) were evaluated in December 2009 by a 10- member committee consisting of representatives from Oshkosh Area United Way, Winnebago County, Oshkosh Area Community Foundation, and the City of Oshkosh. Staff is recommending that the City allocate $98,000 for general public services and $10,000 for Consortium administration, similar to what has been done in the past. Public Service allocations can represent no more than 15% of the total allocation. Non - Public Service applications were due to the Department of Community Development on March 15. The City received 60 applications. Department staff evaluated eligible applications and the Loan Committee approved 16 projects with three alternates for 2010. These applications do not include first time homebuyer's assistance or emergency repairs. Non - Public Service allocations are included in the 70% of CDBG funds for LMI persons. Staff is recommending that the City allocate $330,397 for Housing Rehabilitation. In 2010, the City will initiate a pilot program with the Winnebago Apartment Association for rental rehabilitations. Staff is recommending that the City allocate $40,000 for Rental Rehabilitation. This amount is proposed to be added to unspent rental rehabilitation monies from previous years. Remaining funding is recommended to be distributed to Central City Development and Community Facilities (for removal of blight), Neighborhood Initiatives, Fair Housing Activities, Housing Authority, Senior Center and Administration in the amounts shown on the attached proposed budget. Final Step Prior to Council consideration, these plans are reviewed by the Plan Commission for consistency with the City's 2005 -2025 Comprehensive Plan, official maps, and other planned activities of the City. In this regard, staff has reviewed all proposed projects and activities and none have been identified as being contrary to the Comprehensive Plan, official maps, or other planned activities of the City. RECOMMENDATIONS /CONDITIONS Staff recommends acceptance of the 2010 -2014 Consolidated Plan and 2010 Annual Action Plan for the Community Development Block Grant Program, together with a finding that listed projects are not in conflict with the City of Oshkosh's Comprehensive Plan. The Plan Commission found that the 2010 -2014 Consolidated Plan and 2010 Annual Action Plan for the Community Development Block Grant Program were consistent with the City's Comprehensive Plan, official mappings and other planned activities of the City. The following is the Plan Commission's discussion on this item. Item - CDBG 2010 -2014 CP & 2010 AP Ms. Leslie noted the Consolidated Plan for the Community Development Block Grant Program (CDBG) describes the 5 -year needs for housing assistance and non - housing community development. The City of Oshkosh has prepared this Plan for prioritizing the allocation of housing and other assistance monies that may become available from the federal government over a five -year period from May 1, 2010 to April 30, 2015. The Plan consolidates the planning, application and reporting requirements of the Department of Housing and Urban Development (HUD) and also seeks to address urban issues, improve accountability and include citizen participation. This Plan establishes basic goals for assistance to low and moderate income persons by providing decent affordable housing with suitable living environments and by expanding economic opportunities. The City intends to use CDBG funds for census block groups that have a high concentration of low- moderate income persons. Targeted funding will be provided for items such as homebuyer's assistance, owner - occupied and rental housing rehabilitation, demolition of slum and blight, lead -based paint abatement, historic preservation, Fair Housing and public services. Projects will be targeted to areas with higher concentrations of rental housing; areas most significantly affected by foreclosure and housing abandonment; priority areas identified in the Oshkosh 2005 -2025 Comprehensive Plan; and Historic Districts, especially those with high levels of slum and blight. The City may also use CDBG funds for non - housing community development needs such as: neighborhood revitalization, redevelopment and streetscaping; neighborhood and public facilities, community policing and park/recreational facilities; analysis of zoning and other regulations; survey of properties for historical nomination; creation and support of neighborhood associations and watch groups; implementation of a neighborhood service agency for neighborhood organizing and rehabilitation efforts; and landlord and /or tenant training programs. Ms. Leslie reviewed proposed projects and activities to be carried out with $929,653 in 2010 CDBG funds. Project categories are broken into four sections: Central City Development & Community Facilities; Housing/Neighborhood Development; Public Services; and Administration and Planning. Mr. Nollenberger stated the Commission is being asked if these documents are in compliance with the approved Comprehensive Plan and other documents of the City. The Commission is not being asked to budget funds. Is that correct? Mr. Burich replied yes. Ms. Lohry inquired if funding for the housing improvement program has been consistent? Mr. Burich stated staff tries to fund activities to the maximum allowed by HUD based on the City's allocation. Historically, the City's allocation is reduced every year so the trend has been going down. Ms. Leslie noted that even though the funding level may have gone down, the housing rehabilitation program is a major component of the City's CDBG program in serving LMI households. Mr. Thorns inquired about if the Rental Rehabilitation project is the rehabilitation of rental units? Mr. Burich replied yes, which assists in improving an overall neighborhood and providing and maintaining affordable rental units in the community. One of the stipulations of the City's program is that the units must remain affordable for a period of 15 years. Mr. Borsuk felt that would be similar to WHEDA tax credits that are being used on The Rivers project where the units must be occupied by LMI individuals. Are any of the CDBG funds used to address better jobs, medical needs and such? Item - CDBG 2010 -2014 CP & 2010 AP Mr. Burich stated the City does fund public service activities that address some of these issues through a combined Public Service Consortium that was created about five years ago with the City, Oshkosh Area United Way, Winnebago County and the Oshkosh Area Community Foundation. Ms. Lohry inquired if landscaping around a home could be included as part of a housing rehabilitation project? Mr. Burich wasn't sure if landscaping was included, but it is something that could be looked at as a neighborhood stabilization activity. Mr. Palmeri stated he had questions about transparency. In June there was a notice published about a public hearing. Where was that held? Mr. Buck replied there was a public hearing held at the Oshkosh Seniors Center on July 1st at 6 pm to obtain citizens comments on the proposed 2010 -2014 Consolidated Plan and the 2010 CDBG Action Plan. Mr. Palmeri inquired what could be commented on? Only public service projects? Mr. Buck replied all aspects of the CDBG program could be addressed. Mr. Palmeri did not believe Consortium meetings were open to the public and he is concerned that people cannot publicly communicate their needs for funding. This process used to be open, with Council approving the final funding amounts for each individual recipient. Now the City allocates an amount for general public services and the Consortium approves funding levels. There is no City Council voice in this process. He stated he could not support this process. He understands it's policy, but he cannot support it. Mr. Nollenberger stated he understands Mr. Palmeri's argument, but the Commission is not voting on policy but voting on the consistency of the plans with the Comprehensive Plans. Ms. Kristi Clover, representing the Fair Housing Center of Northeast Wisconsin, stated the Center has received CDBG funds over the past few years to assist the City in support of fair housing and was open to any questions by the Commission. Motion by Nollenberger that projects and activities proposed to be carried out under the 2010 -2014 Consolidated Plan and 2010 Annual CDBG Action Plan are consistent with the City's Comprehensive Plan, official maps and other planned activities of the city. Seconded by Vajgrt. Motion carried 6 -1 (AYES. Lohry, Vajgrt, Nollenberger, Borsuk, Thoms, Fojtik. NAY: Palmeri) Item - CDBG 2010 -2014 CP & 2010 AP