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SUMMARY AND BACKGROUND OF SUBJECT MATTER: In 1974 the United States Congress passed the Housing and Community Development Act (the "Act"). A part of the Act created the Community Development Block Grant Program ("CDBG"). Each year the CDBG program serves about 1,200 communities nationwide and offers total annual allocations in excess of $4.0 billion. The City of Lakewood has received an allocation from CDBG each year since 1974. Section 108 of the Act created a loan program whereby CDBG participants could borrow funds to be repaid with annual CDBG allocations. The intent of the loan program is to allow communities to spend CDBG-allocations on larger projects that could not otherwise be completed.
In 1995 the City of Lakewood applied for and received a Section 108 loan for approximately $3.9 million, which was paid off in 2006.
In 2004, the City Council authorized staff, via resolution, to apply to HUD for approval of this loan, which has been granted. This new Section 108 loan will provide financing for additional Head Start facilities. In addition, this loan will provide for some of the funding for the Ray Ross Park improvements. These borrowed funds for the Ray Ross Park project will give the City the opportunity to apply for other grant funding, thereby leveraging these funds.
DATE OF FIRST READING: December 11, 2006
DATE OF SECOND READING: January 8, 2007
ORIGINATED BY: Finance Department
STAFF PERSON RESPONSIBLE: Larry Dorr, Finance Director, 303-987-7601
DOCUMENTS ATTACHED: Ordinance
O-2006-38
SUBMITTED BY:
Larry Dorr, Finance Director
REVIEWED BY:
Joni Inman, Director Mayor and City Manager's Office
Michael J. Rock, City Manager
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Americans with Disability Act (ADA) Notice |
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