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HomeMy WebLinkAbout01. 13-326 JULY 9, 2013 13-326 RESOLUTION (CARRIED__7-0___LOST_______LAID OVER_______WITHDRAWN_______) PURPOSE: APPROVE SUBMITTAL OF REVISED 2013 COMMUNITY DEVELOPMENT BLOCK GRANT ACTION PLAN INITIATED BY: COMMUNITY DEVELOPMENT DEPARTMENT WHEREAS, the Common Council previously approved submittal of the 2013 Annual Community Development Block Grant (CDBG) Action Plan to the US Department of Housing and Urban Development (HUD); and WHEREAS, prior to submitting the 2013 Action Plan the City was notified by HUD that its 2013 allocation will increase to $721,916 and that additional public input was required on the revised programs/projects to be carried out with 2013 CDBG funds; and WHEREAS, the revised 2013 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 2013 Action Plan and presented the Plan at a neighborhood public hearing on June 26, 2013. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the revised 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. OfHKOJH ON THE WATER TO: Honorable Mayor and Members of the Common Council FROM: Robin Leslie Principal Planner DATE: July 2, 2013 RE: Approval of Revised 2013 Community Development Block Grant Action Plan Budget BACKGROUND On November 27, 2012, the Common Council approved the 2013 Community Development Block Grant Action Plan Budget based on an estimated 2013 allocation. On March 5, 2013, HUD notified the City about potential impacts to our CDBG funding from the failure of Congress to reach a deal on balanced deficit reduction to avoid sequestration. At that time, they said 2013 CDBG funding will be lower than it was in FY 2012 due to the sequester and that we could expect a 5 percent reductions from the FY 2013 annualized Continuing Resolution levels for the CDBG program. On May 30, 2013, HUD released the actual 2013 CDBG allocation of$721,916 for Oshkosh indicating an approximately 7.8 percent increase (+$52,165) from our 2012 allocation of$669,751. HUD stated that the amount included the 5 percent cut attributable to sequestration, as well as the impact of annual changes to individual 2013 CDBG appropriation levels and the updated American Community Survey data upon which some of the formula calculations are based. HUD does not share how these calculations are made but Oshkosh's allocation increased for the first time since 2010. Due to HUD requirements, two additional public hearings and a 30-day public comment period are required to approve a revised budget with a 10 percent change or greater. The increased allocation did not trigger this requirement but since an increase in funding was awarded, the Department of Community Development reassessed our CDBG programs and is proposing a new budget. On June 8, 2013, the 30-day public comment period started. As of date, there have been no comments. On June 26, 2013, the first public hearing was held to discuss the changes. There were no comments from the public. The major project categories remain as Central City & Community Facilities, Housing & Neighborhood Development, Public Services and Administration & Planning. ANALYSIS The budget includes four major project categories. Please find program funding activity descriptions below: Central City & Community Facilities $200,000 The original approved budgeted amount was $100,000. Blight Removal: This funding is used for slum and blight removal that typically involves the acquisition and demolition of blighted properties in and around the central city. Last year, the RDA purchased several properties that are awaiting demolition. Increasing this funding would allow those properties to be demolished immediately instead of waiting for available funding to become available and would also allow for additional acquisitions for the same purpose. Housing & Neighborhood Development $400,447 The original approved budgeted amount was $336,000. 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. Neighborhood Initiatives: This category will include funds for NeighborWorks for Good Neighbor Grants and other neighborhood activities Public Services $48,969 Public Service Consortium The original approved budgeted amount was $90,000. 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 contributed to the Consortium also include monies from Winnebago County, the Oshkosh Area Community Foundation and the United Way. For the 2013 program year, we have made some administrative changes to how the Consortium is serviced. We would like to continue the Consortium funding process by which volunteers representing the Foundation, United Way, County and the City select the grantees but instead of the United Way and Foundation providing the Consortium administrative functions for a fee, Community Development staff will do this internally. Deb Allison-Aasby, Jan Scalpone and Bob Krasniewski are currently the City volunteers on this grant committee. The main reason for the temporary reduction to this category this year is because of past billing practices. For many program years, we have had billing crossover from program year to program year thereby causing issues with our federal limits on public service spending culminating in a deficit of approximately $60,000 already spent for the 2013 program year. Because we are limited by how much we are able to spend on this category, we reduced the Consortium funding to $50,000 for 2013 so that we would not exceed our cap ($48,969 from 2013 budget and $1,031 from 2012 unspent Consortium funding). Total spending for 2013 will still total approximately $110,000 ($60,000 from 2012 billing and $50,000 from 2013 billing). Once this issue is addressed this program year and with our internal staff taking over the billing, this should not be an issue for future program years. If CDBG funding levels are maintained, the City should be able to increase this funding next year similar to past levels. Administration and Planning $72,500 The original approved budgeted amount was $134,000. Fair Housing Center of Northeast Wisconsin- $12,500 The original approved budgeted amount was $10,000. Funding is provided for fair housing assistance, discrimination investigation and regulation, and landlord-tenant training programs. This program will no longer be funded under the public services category but instead will be moved to the more appropriate category of Administration & Planning. Proposed funding for FHCNEW has been increased to the level of$12,500 as they have not received an increase in service fees for some time. Administration/Salaries - $60,000 This activity provides funding for City staff involved in administration of the CDBG program and for planning studies that may be needed related to the program. Because the City currently has unspent 2012 administration funds, staff felt it important to reallocate some of these dollars to the Central City category. FISCAL IMPACT No additional impact on city services is anticipated due to the provision of CDBG funds as proposed. RECOMMENDATION Approval of Revised 2013 Community Development Block Grant Action Plan Budget Proposed 2013 Community Development Block Grant Program Action Plan Projects Allocation LMI Benefit I. Central City & Public Facilities $200,000 II. Housing & Neighborhood Development $400,447 $400,447 III. Public Services/Consortium $48,969 $48,969 IV. Administration and Planning -Admin & Salaries $60,000 -Fair Housing Center NEW $12,500 Total CDBG Allocation $721,916 $449,416 If more or less funds are received than estimated, funds will be distributed proportionally and by following HUD guidelines. JULY 9, 2013 13-326 RESOLUTION (CARRIED LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVE SUBMITTAL OF REVISED 2013 COMMUNITY DEVELOPMENT BLOCK GRANT ACTION PLAN INITIATED BY: COMMUNITY DEVELOPMENT DEPARTMENT WHEREAS, the Common Council previously approved submittal of the 2013 Annual Community Development Block Grant (CDBG) Action Plan to the US Department of Housing and Urban Development (HUD); and WHEREAS, prior to submitting the 2013 Action Plan the City was notified by HUD that its 2013 allocation will increase to $721,916 and that additional public input was required on the revised programs/projects to be carried out with 2013 CDBG funds; and WHEREAS, the revised 2013 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 2013 Action Plan and presented the Plan at a neighborhood public hearing on June 26, 2013. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the revised 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.