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HomeMy WebLinkAbout01. 12-566 NOVEMBER 27, 2012 12-566 RESOLUTION (CARRIED___7-0__LOST________LAID OVER________WITHDRAWN________) PURPOSE: APPROVE SUBMITTAL OF 2013 COMMUNITY DEVELOPMENT BLOCK GRANT ACTION PLAN INITIATED BY: COMMUNITY DEVELOPMENT DEPARTMENT 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 2013 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 2013 Action Plan and presented the Plan at a neighborhood public hearing on November 8, 2012 and to the Plan Commission on November 20, 2012. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the 2013 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. DRAFT 2013 Community Development Block Grant Program Action Plan Projects Estimated Estimated 2013 LMI Allocation Benefit I. Central City Redevelopment & Community Facilities I $100,000 I $0 II. Housing/Neighborhood Development $336,000 1 $336,000 III. Public Services A. General Public Services/Consortium $90,000 $90,000 B. Fair Housing Center NEW $10,000 $0 Subtotal $100,000 $90,000 IV. Administration and Planning A. Administration and Salaries $124,000 $0 C. Public Services Consortium Admin. $10,000 $0 Subtotal $134,000 $0 Total $670,000 $426,000 This 2013 estimated CDBG budget is based on the 2012 grant amount received. If more or less funds are received than estimated, funds will be distributed proportionally and by following HUD guidelines. OJHKOIH ON THE WATER TO: Honorable Mayor and Members of the Common Council FROM: Darryn Burich Director of Planning Services DATE: November 21, 2012 RE: Approve Submittal of 2013 Community Development Block Grant Action Plan (Plan Commission Recommends Approval) BACKGROUND Annually, the CDBG Action Plan Budget is prepared to demonstrate how estimated federal funds from the Department of Housing and Urban Development (HUD) will be spent in the city. The 2013 Program Year begins May 1, 2013 and will end April 30, 2014. The 2013 entitlement grant allocation is estimated to be $670,000, which represents a 0% increase from the 2012 program year allocation. The major project categories include Central City Redevelopment & Community Facilities, Housing & Neighborhood Development, Public Services and Administration & Planning. A neighborhood meeting was held to inform the public of the proposed budget on November 8, 2012. There were no comments from the public. At its November 20, 2012 meeting, the Plan Commission reviewed the budget for consistency with the City's Comprehensive Plan, official maps and other planned activities and found the projects proposed to be in compliance with those plans. 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 79% of the funds will be expended on activities that benefit LMI persons. The budget includes four major project categories. Please find program funding activity descriptions below: Central City Redevelopment & 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 involves the acquisition and clearance of blighted properties in and around the central city. It is recommended that this activity be funded with $100,000. Housing & Neighborhood Development. This funding is used to make 0% interest, deferred-payment loans to existing homeowners for rehabilitation projects and first-time homebuyers participating in Homebuyer Assistance Programs. Applications for general rehabilitation are accepted from December to March and projects are prioritized on the basis of location, exterior improvements, property condition, credit-worthiness and special needs of the household. Emergency applications are accepted year round and a portion of these funds are segregated for emergency applications only. This category will also include funds for rehabilitation of rental units involving a 50% match from the property owner and 0% interest, deferred-payment loans. In addition, this category covers neighborhood initiatives such as forming neighborhood associations, special neighborhood events and collaboration on NeighborWorks projects. It is recommended that this activity be funded with $336,000. Public Services. 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. Public Service funds are contributed to an overall fund consortium that also includes monies from Winnebago County, the Oshkosh Area Community Foundation, and the United Way. In addition to general public services, the Fair • Housing Center of Northeast Wisconsin will continue to provide fair housing assistance, discrimination investigation and regulation, and landlord-tenant • training programs. It is recommended that this activity be funded with $100,000. Administration and Salaries. This activity provides funding for City staff involved in administration of the CDBG program and other administrative costs. It also provides a stipend for the administration of the Public Services Consortium to the United Way and Foundation. A total of $134,000 is necessary to fund this category. FISCAL IMPACT No additional impact on city services is anticipated due to the provision of CDBG funds as proposed. RECOMMENDATION At its November 20, 2012 meeting, the Plan Commission approved the 2013 CDBG Action Plan Budget with a finding that listed projects were not in conflict with the City of Oshkosh's Comprehensive Plan, official maps, or other planned activities. Approved, City Manager