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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
Kim Buehler, Program Development and Senior Services Manager
DATE: December 29, 2003
City Council Study Session Date: January 5, 2004
SUBJECT: 2004 Community Development Block Grant (CDBG)
2004 HOME Investment Partnership Grant (HOME)
RECOMMENDATION
Staff recommends that City Council:
A. Endorse the 2004 One Year Action Plan for the Community Development Block Grant (CDBG) program.
B. Endorse the 2004 One Year Action Plan for the HOME Investment Partnership (HOME) program.
C. Direct staff to prepare a resolution to be brought forward at City Council's regular meeting on February 9, 2004, supporting the recommended programs and funding levels in the 2004 One Year Action Plan.
BACKGROUND
The U. S. Department of Housing and Urban Development (HUD) will grant funds
to the City of Lakewood for housing and community development activities once
the One Year Action Plan for the 2004 Program Year is reviewed and approved.
An estimated $1,371,000 in Community Development Block Grant (CDBG) funds and
an estimated $672,000 in HOME Investment Partnership (HOME) funds will be available
in 2004.
Community Development Block Grant (CDBG) Program: The purpose of the CDBG Program is to enable communities to carry out a wide range of community development 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 address a local objective in the community's Five Year Housing and Community Development Plan. Last year, City Council adopted the 2003-2007 Housing and Community Development Plan (HCDP) for Lakewood. In addition, funded programs must meet eligibility requirements and the "caps" set by HUD, which limit spending to 15% for public service programs and 20% for program administration.
HOME Investment Partnership (HOME) Program: 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 homebuyers.
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 narrowly defined Community Housing Development Organizations (CHDOs). Another 10% of this grant is reserved for program administration.
THE ONE YEAR ACTION PLAN
The One Year Action Plan lists and describes the programs that the City proposes to fund during a specific year to address priority objectives identified in the HCDP. It also serves as Lakewood's annual funding application for the CDBG and HOME programs. The 2004 program year begins on April 1, 2004 and ends on March 31, 2005.
Estimated 2004 Funding Allocation Summary
RESOURCES AVAILABLE AMOUNT
HOME Investment Partnership (HOME) Grant $672,000
Community Development Block Grant (CDBG) $1,261,000
2003 CDBG Program Income (Estimated) $110,000
Subtotal CDBG $1,371,000
Total CDBG/HOME Resources $2,043,000
Program Selection Process: A funding recommendation review committee consisting
of representatives from the City Manager's Office, the Departments of Housing
and Family Services, Community Resources, Community Planning and Development,
Public Works and Finance met to review the federal and local goals and recommended
projects. Keeping in mind the commitment to ongoing programs, the team reviewed
the proposed annual allocation of funds and selected the recommended programs
included in the 2004 One Year Action Plan. The following criteria are used to
evaluate and select individual programs and develop the overall recommendations
submitted to Council:
1. The program addresses an identified need in the 2003-2007 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 corrects a condition of documented building or infrastructure deterioration.
5. 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.
2004 PROGRAMS RECOMMENDED FOR FUNDING
HOME Investment Partnership
Lakewood Housing Authority Rental Housing Development $429,000
Homeownership Assistance $75,000
Community Housing Development Organizations (CHDOs) Set Aside $100,800
HOME Program Administration $67,200
Total HOME Funds $672,000
Community Development Block Grant (CDBG)
HOUSING PROGRAMS
Single Family Housing Rehabilitation Loan Program (Contract with Jefferson County
Housing Authority) $170,000
Housing Administration and Development $120,000
NEIGHBORHOOD PROGRAMS
Neighborhood Cleanup/Code Enforcement $80,000
Public Facilities $328,600
Neighborhood Plan Implementation $395,000
SUPPORTIVE SERVICES
Child Care Scholarships $70,400
Lakewood Self-Sufficiency Program $112,000
OTHER
CDBG Administration/Planning/Technical Assistance $95,000
Total CDBG Funds $1,371,000
TOTAL CDBG/HOME GRANT FUNDS $2,043,000
SUMMARY
Staff is requesting Council direct staff to prepare a resolution to be brought forward at the City Council's regular meeting on February 9, 2004, supporting the programs and recommended funding levels in the 2004 One Year Action Plan for the Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) programs.
Submitted by: Reviewed by:
_____________________________
Linda Reynolds Joni Inman, Director
CDBG Program Manager City Manager's Office
______________________________
Kim Buehler Michael J. Rock
Program Development and City Manager
Senior Services Manager
Roger Wadnal, Manager
Strategic Planning
Frank Gray, Director
Department of Community Planning and Development
_______________________________
Tami Fischer, Director
Department of Housing and Family Services
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