HomeMy WebLinkAbout01. 14-208
MAY 13, 2014 14-208 RESOLUTION
(CARRIED___6-0____LOST_______LAID OVER_______WITHDRAWN_______)
PURPOSE: APPROVE SUBMITTAL OF 2014 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 2014 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 2014 Action Plan and presented the Plan at a
neighborhood public hearing on April 29, 2014 and to the Plan Commission on May 6,
2014.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the 2014 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.
2014 Community Development Block Grant Program Action Plan
Projects
Estimated
2014
Allocation
Estimated
ILM1
Benefit
1. Central City Redevelopment &Community Facilities
$100,000
$0
11. Housing /Neighborhood Development
$440,0851
$440,085
111. Public Services
General Public Services /Consortium
$75,000
$75,000
IV. Administration and Planning
A. Administration and Salaries
B. Fair Housing Center NEW
$107,500
$0
$ 12,500
$0
Subtotal
$120,000
$0
Total
$735,085
$515,085
If more or less funds are received than estimated, funds will be distributed proportionally
and by following HUD guidelines.
O.fHKOf
ON THE WATER
TO: Honorable Mayor and Members of the Common Council
FROM: Darryn Burich
Director of Planning Services
DATE: May 8, 2014
RE: Approve Submittal of 2014 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 2014 Program Year began May 1, 2014 and will end April 30, 2015. The 2014
entitlement grant allocation is estimated to be $735,085.
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 April 20,
2014. Questions addressed types of activities funded in each category, but overall those
present felt the activities would benefit low- and moderate - income citizens and the
community as a whole.
The Plan Commission held a public hearing at its May 6, 2014 meeting. No citizen
comments were received.
ANALYSIS
HUD regulations require that at least 70% of CDBG funds benefit low and moderate
income (LMI) persons. As proposed, over 80% 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 Develo ment. 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, creditworthiness 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 $440,085.
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 United Way.
It is recommended that this activity be funded with $75,000.
Administration and Salaries. This activity provides funding for City staff involved
in administration of the CDBG program and other administrative costs. In addition it
is proposed to continue funding the Fair Housing Center of Northeast Wisconsin to
provide fair housing assistance, discrimination investigation and regulation, and
landlord - tenant training programs. A total of $120,000 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 May 6, 2014 meeting, the Plan Commission approved the 2014 CDBG Action Plan
Budget with a finding that listed projects were not in conflict with the City of Oshkosh's
Comprehensive Plan or other planned activities.
Approved,
City Manager
ITEM; PUBLIC HEARING: 2014 COMMUNITY DEVELOPMENT BLOCK
GRANT PROGRAM ACTION PLAN BUDGET
Plan Commission meeting of May 6, 2014
BACKGROUND
Staff requests review and acceptance of the 2014 Community Development Block Grant Program
(CDBG) Action Plan.
The purpose of this review is for the Plan Commission to mare a determination of consistency
of the proposed programs and activities in the 2014 CDBG Action Plan budget with the City's
Comprehensive Plan or other planned activities.
ANALYSIS
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 Oshkosh. The
City's CDBG program year runs from May 1
Estimated
thru April 30. HUD regulations require that at
least 70% of CDBG mds benefit low and
moderate income (LMI) persons. As proposed,
over 80% of the funds will be expended on
activities that benefit LMI persons. LMI
activities /projects include the owner occupied
rehabilitation program, first time homebuyer
program, rental rehabilitation program and
public services.
Public Service applications were approved by
the Public Service Consortium. The review
committee consisted of representatives from.
Oshkosh Area United Way, Winnebago County,
Oshkosh Area Community Foundation and the
-- - - - - -�
Projects
2014
Allocation
�
LMI
Benefit
I. Central City Redevelopment & Community
Facilities . : ...
$100,000
$0
Il. blousing /Neighborhood Development:
$440,085
$440,085
III. Public Services
General Public
Services /Consortium
75,000
$75,000
IV. Administration and Planning -
Administration and
Salaries
$120,000
$0
Total
$735,085
$515,085
City of Oshkosh. A maximum of 15% can be spent on public service activities. The City's
contribution to the Consortimn is $75,000. Public service agencies to be funded include:
Advocap, Oshkosh Seniors Center, Day by Day Warming Shelter, Christine Ann Domestic
Abuse Services, Winnebago County Literacy Council, UWO Living Healthy Community Clinic,
Tri- County Community Dental Clinic, Clarity Care, and Oshkosh Area Community Pantry.
Funds associated with the Central City Redevelopment and Community Facilities programs,
which is not capped at a specific percentage, include acquisition and demolition of designated
blighted properties and activities related to neighborhood revitalization such as neighborhood
organization support and development of public infrastructure.
Item -MBG Action Plan
Administration and Planning costs cannot exceed 20 %. Funds will be used to offset staff costs to
manage the CDBG program. Funds were also allocated to the Fair Housing Center of Northeast
Wisconsin to promote fair housing enforcement, outreach, education and technical assistance.
If more or less fluids are received than estimated, fiinds will be distributed proportionally
following HUD guidelines.
The first public hearing was held April 29 on the 2014 CDBG Action Plan budget at City Hall in
the form of a town hall meeting. Questions addressed types of activities funded in each category.
Those present felt the activities being carried out were a benefit to low - and moderate - income
citizens and the community as a whole. The Plan Commission meeting will act as a second
public hearing venue with a third and final public hearing to be held at the Common Council on
May 13.
Staff has reviewed all proposed projects and activities for consistency with the City's
Comprehensive Plan and other planned activities and all are consistent.
RECOMMENDATIONS /CONDITIONS
Staff recommends acceptance of the 2014 CDBG Program Action Plan budget, together with a
finding that listed projects are not in conflict with the City of Oshkosh's Comprehensive Plan.
Darlene Brandt conducted the presentation of the 2014 Community Development Block Grant
Program Action Plan for the period of May 2014 through April 2015, which anticipates the 2014
budgeting for this program. She explained that 70% of the federal funds received are required to
be spent on programs which meet the national objectives of this funding which are to benefit low
to moderate income persons, (LMI), aide in slum/blighted removal and prevention, and urgent
need assistance such as disasters. The fiinding for 2014 is anticipated to be $735,085 and is
budgeted as follows:
Central City Development and Community Facilities 100,000
Housing & Neighborhood Development 440,085
Public Services 75,000
Administration and Planning 120,000
All programs require heavy reporting to HUD accounting for program expenditures and the
Action Plan also requires Common Council approval.
Ms. Brandt reviewed photos of the past year's projects and the various programs and agencies
that received fiinding Under the housing programs and Public Services category and what
programs these fields are utilized to support. She briefly discussed the flexible use of these
funds and that the majority is spent on housing related activities. Housing rehabilitation
assistance is scattered throughout the city with some concentration in certain areas that are older
and in poor condition. A public hearing was held on April 29th at City Hall with the Plan
Commission meeting today acting as a second public hearing venue and the final public hearing
Item -CDBG Aclion Plan
and Council review will be on May 13'E'
Mr. Thorns commented that the funding seems to be half of what it used to be in past years and
yet the administrative expenses and activities seem to be the same. He questioned if we have
considered changing some of the activities these fiends support.
Mr. Burich responded that we could utilize all the funds towards housing rehabilitation projects
as the most LMI benefit is received from this type of work however the removal of blighted
properties also has a benefit to the community as a whole.
Mr. Thorns felt we should concentrate on how to get the most "bang for the buck" out of this
funding.
Mr. Burich stated that Planning Services staff is also researching funding from other sources to
help finance additional projects and that the Public Service Consortium needs to be funded to
continue programs in place that benefit the community. He felt we have to take the opportunity
to improve neighborhoods by removing blighted properties that negatively affect property values
in the vicinity.
Mr. Nollenberger commented that we need to balance priorities and he felt we should move
forward with the budget as proposed.
Mr. Fojtik opened the public hearing at 5:15 pm for public comment. As there tivere no citizens
present, the public hearing was closed
Motion by Nollenberger to accept the 2014 Community Development Block Grant
Program (CDBG) Action Plan.
Seconded by Vajgrt. Motion carried 6 -0.
Item -CDBG Action Plan