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RESOLUTION: 2002-5
SUBJECT: Community Development Block Grant (CDBG) and Home Investment Partnership (HOME) Programs
RECOMMENDATION: Adopt the attached resolution endorsing the 2002 One Year Action Plan for the CDBG and HOME Programs.
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
Using federal and local guidelines, staff prepared a One Year Action Plan for
the use of CDBG and HOME grant funds expected to be received from the Department
of Housing and Urban Development (HUD) in 2002. The One Year Action Plan is
also the application to HUD for the CDBG and HOME programs. City Council endorsed
Lakewood's One Year Action Plan which lists and describes the programs that
the City proposes to fund at their Study Session January 7, 2002.
FUNDING SOURCE:
In 2002, Lakewood will receive $1,097,000 from the CDBG Program and $519,000
from the HOME Investment Partnership Program. In addition, an estimated $120,000
will be earned through program income in 2001, making total funding available
$1,736,000.
DATE OF STUDY SESSION: January 7, 2002
RESOLUTION ADOPTION DATE: February 11, 2002
ORIGINATED BY: Department of Community Planning & Development
STAFF PERSON RESPONSIBLE:
Linda Reynolds, CDBG Program Manager, 303-987-7503
Roger Wadnal, Manager, Strategic Planning, 303-987-7519
Bill Lunsford, Housing Development Manager, 303-987-7581
DOCUMENTS ATTACHED: Policy Report No. 2002-1
Resolution 2002-5
SUBMITTED BY:
Roger Wadnal, Manager Strategic Planning
Linda Reynolds, CDBG Program Manager
Frank Gray, Director Community Planning and Development
Bill Lunsford, Housing Development Manager
Tami Fischer, Director Housing and Family Services
REVIEWED BY:
Joni Inman, Director Office of Mayor and City Manager
Michael J. Rock, City Manager
CITY OF LAKEWOOD
Policy Report No. 2002-1
TO: MAYOR AND CITY COUNCIL
THRU: Frank Gray, Director of Community Planning and Development
Tami Fischer, Director of Housing and Family Services
FROM: Roger Wadnal, Manager, Strategic Planning
Linda Reynolds, CDBG Program Manager
Bill Lunsford, Housing Development Manager
DATE: December 28, 2001
City Council Study Session Date: January 7, 2002
SUBJECT: Recommendations for the City of Lakewood's 2002 Community Development Block Grant and 2002 HOME Investment Partnership Grant Applications
RECOMMENDATION
Staff recommends that City Council:
A. Endorse the programs and recommended funding levels in the 2002 One Year
Action Plan through the Community Development Block Grant (CDBG) program and
HOME Investment Partnership (HOME) program.
B. Direct staff to prepare a resolution to be brought forward at City Council's
regular meeting on February 11, 2002, supporting the proposed programs and funding
levels in the One Year Action Plan.
BACKGROUND
The Department of Housing and Urban Development (HUD) will grant funds to the
City of Lakewood for housing and community development programs that address
community needs identified in the 1999-2002 Housing and Community Development
Plan, which was approved by City Council. Beginning April 1, 2002, $1,097,000
in Community Development Block Grant (CDBG) funds, $519,000 in HOME Investment
Partnership (HOME) funds, and an estimated $120,000 in CDBG program income will
be available for the 2002 program year, making the total funding $1,736,000.
The One Year Action Plan for the 2002 program year needs to be reviewed and
approved in order to receive this funding.
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM: The purpose of the CDBG Program
is to enable communities to carry out a wide range of activities directed toward
neighborhood revitalization, economic development, and improved community facilities
and services. Communities with a population greater than 50,000 are considered
entitlement communities and automatically receive Block Grant funds based on
the community's population size and number of low- to moderate-income residents.
Lakewood has been an entitlement community for CDBG since 1974.
The national goal of the CDBG program is to develop viable communities. It is important that there is a strong relationship between all funded programs and the national goal. All activities undertaken with CDBG funds must address one of the following three national objectives:
1. Benefit low- and moderate-income persons.
2. Aid in the prevention or elimination of slums and blight (as defined by the
community).
3. Address other community development needs that present a serious and immediate
threat to the health or welfare of the community.
CDBG activities must also meet eligibility requirements set by HUD and address an objective in the community's Housing and Community Development Plan. CDBG administration, planning, and technical expenses are subject to a 20% annual cap. Public service programs are subject to a 15% cap.
HOME INVESTMENT PARTNERSHIP PROGRAM (HOME): HUD distributes HOME monies to cities and states according to entitlement formulas similar to CDBG. Lakewood began receiving HOME funds in 1994. HOME funds are used to expand the supply of affordable rental housing units available to low-income households and to assist with developing single family homes affordable to low-income home buyers.
As with CDBG, HOME activities must also meet requirements set by HUD and address an objective in the Housing and Community Development Plan. Federal regulations require that 15% of the HOME grant be set aside for Community Housing Development Organizations (CHDOs). Another 10% of this grant is reserved for program administration.
1999-2002 HOUSING AND COMMUNITY DEVELOPMENT PLAN
The City of Lakewood's 1999-2002 Housing and Community Development Plan (the Consolidated Plan) is the City's comprehensive planning document for the Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) programs. Prior to awarding the annual CDBG/HOME grants, HUD requires that a community look at housing and community development needs and develop objectives and strategies to meet those needs.
The Consolidated Plan is used by the City as the basis for CDBG/HOME program management and by HUD as the basis for program evaluation. The Plan sets forth three basic goals which, in part, are derived from the broad goals of Title I of the Housing Act of 1974.
o To provide decent housing, including efforts to reduce homelessness and expand affordable housing;
o To provide a suitable living environment, including neighborhood revitalization and improvement in the safety and livability of neighborhoods; and
o To provide economic opportunity, including empowerment and self-sufficiency
opportunities for low-income persons to rise out of poverty.
Priority Needs and Objectives
The three priority needs for the City of Lakewood as outlined in the Plan are: Housing Needs, Supportive Services Needs, and Non-Housing Community Development Needs. Subcategories under Non-Housing Community Development Needs are Neighborhoods and Corridors, Economic Development and Job Creation, and Public Facilities and Infrastructure.
Eight objectives, equal in importance, have been developed to meet those needs. The objectives are designed to meet multiple community needs using cooperative efforts. They are:
1. Retain stock of affordable owner-occupied housing units.
2. Preserve or add affordable rental units.
3. Provide home ownership opportunities.
4. Prevent homelessness.
5. Assist low- and extremely low- income households with obtaining self-sufficiency.
6. Assist the general population, including seniors and special populations,
with housing and supportive services.
7. Revitalize neighborhoods.
8. Revitalize major transportation and business corridors.
ONE YEAR ACTION PLAN
One Year Action Plans are required by HUD as a part of the Lakewood's annual
funding application for the CDBG and HOME programs. The One Year Action Plan
lists and describes the programs that the City proposes to fund during the upcoming
year to address priority objectives identified in the Consolidated Plan. The
2002 program year begins on April 1, 2002, and ends on March 31, 2003.
Anticipated 2002 Funding Allocation Summary
RESOURCES AVAILABLE AMOUNT
Community Development Block Grant (CDBG) Grant $1,097,000
2001 CDBG Program Income (Estimated) $120,000
HOME Investment Partnership (HOME) Grant $519,000
Total CDBG/HOME Resources $1,736,000
Program Selection Process
A funding recommendation review committee consisting of representatives from the City Manager's Office, Community Resources, Public Works, Housing and Family Services, and Community Planning and Development met to review the federal and local goals and recommend projects. Keeping in mind the commitment to ongoing programs, the team reviewed the proposed annual allocation of funds and selected the programs included in the 2002 One Year Action Plan. The following criteria is used to evaluate and select individual programs and develop the overall recommendations submitted to Council:
1. The program addresses an identified need in the 1999-2002 Housing and Community Development Plan.
2. The program provides a benefit to low- and moderate-income residents of Lakewood.
3. The program benefits Target Area neighborhoods that are in need of revitalization. (See Target Area Map attached.)
4. The program creates opportunities for permanent jobs for low- and moderate-income persons.
5. The program corrects a condition of documented building or infrastructure
deterioration.
6. The program conforms to HUD limitations on administration and public services
costs.
Programs may contain many specific activities designed to carry out a program objective. Programs provide a framework that will give staff flexibility in designing activities within the broader category to best meet community needs and allow staff to take advantage of new opportunities as they arise.
2002 PROGRAMS RECOMMENDED FOR FUNDING
HOME Investment Partnership
Rental Housing Development $339,250
Community Housing Development Organizations (CHDOs) Set Aside $77,850
Home Ownership Assistance $ 50,000
HOME Program Administration $ 51,900
Total HOME Funds $519,000
Community Development Block Grant (CDBG)
HOUSING PROGRAMS
Housing Rehabilitation Loan Program $216,600
Emergency Home Repairs $10,000
Resource Development/Program ImplementationRelocation of Vance Terrace Tenants
$115,000$180,000
SERVICE PROGRAMS
Lakewood Self-Sufficiency Program $128,000
Child Care Scholarships $40,200
Recreation Scholarships $8,000
NON-HOUSING COMMUNITY DEVELOPMENT
Neighborhood Cleanup/Code Enforcement $90,000
Public Facilities $99,200
Neighborhood Plan Implementation $135,000
ADMINISTRATION
Section 108 Payment $100,000
CDBG Administration/Planning/Technical Assistance $95,000
Total CDBG Funds $1,217,000
TOTAL CDBG/HOME GRANT FUNDS $1,736,000
SUMMARY
It is requested that Council direct staff to prepare a resolution to be brought forward at the City Council's regular meeting on February 14, 2002, supporting the programs and recommended funding levels in the 2002 One Year Action Plan for the Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) programs.
Submitted by:
Linda Reynolds, CDBG Program Manager
Roger Wadnal, Manager, Strategic Planning
Frank B. Gray, Director of Community Planning & Development
Tami Fischer, Director of Housing and Family Services
Reviewed by:
Joni Inman, Director Mayor & City Manager's Office
Michael J. Rock, City Manager
AGENDA
CITY
COUNCIL MEETING
HOME
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