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HomeMy WebLinkAbout01. 12-64FEBRUARY 28, 2012 12 -64 RESOLUTION (CARRIED 6 -0 LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVE SUBMITTAL OF REVISED 2012 COMMUNITY DEVELOPMENT BLOCK GRANT ACTION PLAN INITIATED BY: COMMUNITY DEVELOPMENT DEPARTMENT WHEREAS, the Common Council previously approved submittal of the 2012 Annual Community Development Block Grant (CDBG) Action Plan to the US Department of Housing and Urban Development (HUD); and WHEREAS, prior to submitting the 2012 Action Plan the City was notified by the HUD Milwaukee Area Office that its 2012 allocation was reduced by approximately 13.6% from its 2011 allocation and additional public input was required on the revised proposed programs /projects to be carried out with 2012 CDBG funds; and WHEREAS, the revised 2012 Action 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 revised 2012 Action Plan and presented the Plan at a neighborhood public hearing on February 15, 2012. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the revised 2012 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. Revised 2012 Community Development Block Grant Program Action Plan Budget PROJECTS Estimated Estimated 2012 2012 LMI Allocation Benefit L Housing Rehabilitation $436,751 $436,751 I ] Public Services A. General Public Services /Consortium $90,000 $90,000 B. Fair Housing Center of Northeast WI $10,000 $0 Subtotal $100,000 $90,000 III. Administration and Planning $123,000 $0 A. Public Services Consortium Admin $10,000 $0 Subtotal $133,000 $0 Total $669,751 $526,751 OJHKO.JH ON THE WATER TO: Honorable Mayor and Members of the Common Council FROM: Darryn Burich Director of Planning Services DATE: February 22, 2012 RE: Approval of Revised 2012 Community Development Block Grant Action Plan Budget BACKGROUND On November 22, 2011, the Common Council approved the 2012 Community Development Block Grant Action Plan Budget based on an estimated 2012 allocation. On January 19, 2012, HUD released the actual 2012 CDBG allocation of$669,751 for Oshkosh indicating a 13.6%reduction (-$105,493) from our 2011 allocation of$775,244. Due to HUD requirements, two additional public hearings and a 30-day public comment period are required to approve the revised budget. On February 15, 2012, the first public hearing was held to discuss the changes. There were no comments from the public. The major project categories remain as Housing Rehabilitation, Public Services and Administration& Planning. ANALYSIS HUD regulations require that at least 70% of CDBG funds benefit low and moderate income (LMI) persons over a three year certification period. As proposed, over 78% of the funds will be expended on activities that benefit LMI persons. The budget includes three major project categories. Please find program funding activity descriptions below: Housing Rehabilitation $436,751 Owner-Occupied: This funding is used to make 0% interest, deferred-payment loans to existing homeowners for rehabilitation projects and first-time homebuyers participating in the Housing Authority's Homebuyer Assistance Program. Applications for general rehabilitation are accepted from December to March and projects are prioritized on the basis of location, property condition, need for exterior improvements, credit-worthiness and special needs of the household. Emergency applications are accepted year round and a portion of these funds are segregated for these applications only. Rental Occupied: This category will also include funds for rehabilitation of rental units involving a 1:1 match from the property owner and 0% interest, deferred-payment loans. Public Services $100,000 This activity funds programs that serve local LMI residents with various public service related activities such as emergency shelter and advocacy services, emergency assistance grants, nutrition programs, etc. Funds are contributed to the Public Services Consortium that also includes monies from Winnebago County, the Oshkosh Area Community Foundation and the United Way. Fair Housing Center of Northeast Wisconsin: In addition to general public services, funding is provided for fair housing assistance, discrimination investigation and regulation, and landlord-tenant training programs. Administration and Salaries $133,000 This activity provides funding for City staff involved in administration of the CDBG program and for the administration of the Public Services Consortium. FISCAL IMPACT No additional impact on city services is anticipated due to the provision of CDBG funds as proposed. RECOMMENDATION Approval Approved, City Manager Revised 2012 Community Development Block Grant Program Action Plan Budget Estimated Estimated PROJECTS 2012 2012 LMI Allocation Benefit I. Housing Rehabilitation $436,751 $436,751 II. Public Services A. General Public Services/Consortium $90,000 $90,000 B. Fair Housing Center of Northeast WI $10,000 $0 Subtotal $100,000 $90,000 III. Administration and Planning $123,000 $0 A. Public Services Consortium Admin $10,000 $0 Subtotal $133,000 $0 Total $669,751 $526,751 Original 2012 Community Development Block Grant Program Action Plan Budget Estimated Estimated PROJECTS 2012 2012 LMI Allocation Benefit I. Targeted Central City Redevelopment $0 $0 II. Housing Rehabilitation $581,250 $581,250 III. Public Services A. General Public Services/Consortium $106,250 $106,250 B. Fair Housing Center of Northeast WI $10,000 $0 Subtotal $116,250 $106,250 IV. Administration and Planning $77,500 $0 Total $775,000 $687,500