#2 File for CDBG-Emergency Assistance Program (File Res. #2009-585)
NEIGHBORHOOD SERVICES MEMORANDUM
February 27, 2009
TO: City Council
FROM: Kelly Lee, Neighborhood Development Specialist
SUBJECT: Community Block Grant Supplemental Disaster Allocation
Emergency Assistance Program
Summary
The Neighborhood Services Department is seeking the Council’s approval to
apply for Community Development Block Grant-Emergency Assistance Program
funding. The CDBG-EAP grants are to be used to provide assistance to
individuals and businesses that were damaged during the disaster period of June
5 through July 25, 2008. In addition, the funds can be used to reimburse the City
of Janesville for repair and replacement of public infrastructure damaged during
that same period. Reimbursement costs are only eligible if other funding was not
available such as insurance or other state or federal programs.
Department Recommendation
The Neighborhood Services Department recommends that the Council approve
file resolution 2009-585 authorizing the filing of an application with the Wisconsin
Department of Commerce for the Community Development Block Grant
Emergency Assistance Program in the amount of $2,056,845.
Suggested Motion
I move that the Council approve file resolution 2009-585 authorizing the filing of
an application with the Wisconsin Department of Commerce for the Community
Development Block Grant Emergency Assistance Program.
Background
The Federal Government through the Department of Housing and Urban
Development’s Community Development Block Grant (CDBG) program, has
recently awarded the State of Wisconsin a total of $24 million in Disaster
Assistance.
The Community Development Block Grant-Emergency Assistance Program
(CDBG-EAP) is a special program the Wisconsin Department of Commerce,
Division of Housing and Community Development (DHCD) activated to assist
local units of government that have recently experienced a natural or manmade
disaster. The storms and flooding of June 5 through July 25, 2008, led to a
federal disaster declaration, FEMA-DR-1768 WI, in 31 Wisconsin counties
including Rock County. As a result of this declaration, DHCD has reallocated a
share of its annual CDBG allocation and is in the process of obtaining
Supplemental Disaster Allocation funds through HUD to address unmet housing
and community needs.
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There are three categories of eligible activities. The repair and replacement of
low and moderate-income (LMI) owner occupied housing that is the principal
place of residence and was damage during the disaster; the repair and
replacement of public infrastructure limited to facilities that affect the health and
safety of residents of the community that was damaged; and assistance to
businesses having unmet recovery needs including the repair of flood damages,
loss on inventory and lack of working capital due to lost revenues.
The City of Janesville has the opportunity to apply for a portion of these funds by
way of a grant application under a very short application deadline. At the time
this memo was written, staff has not yet determined the final dollar amount that
will be requested through the grant application.
Analysis
The City of Janesville would benefit from an additional source of funding to assist
in flood recovery effort. Under this program, these funds may be used as local
match for the Hazard Mitigation Grant, otherwise known as the Buy-Out program
that council approved last year ($194,941). However, in the grant application,
staff is requesting $569,909 in this category. We arrived at this figure based on
the required local match of 12.5% for the Hazard Mitigation Grant for the eight
owner occupied primary dwellings and the full pre-flood value for the four rental
properties. Wisconsin Emergency Management has indicated that there may not
be enough funding to reach beyond owner occupied dwellings based on the
applications and the FEMA grant award.
In addition, costs of repair or replacement of water and sewers mains and
components and repairs to the library and the senior center that were not
otherwise funded are considered reimbursable costs ($411,747).
Local businesses that have not been provided with a significant amount of
assistance other than loans may also benefit from this grant; therefore, we have
included one million dollars ($1,000,000) in this category.
Wisconsin Department of Commerce has not established solid program rules at
this time. Staff will receive training with regard to grant administration after
awards have been made. Staff would need to spend a substantial amount of
time on administration of the grant funds should an award be made. Staff feels
that this effort is worthwhile given the expense of the disaster incurred by both
the City and its residents.
City Manager recommendation
The City Manager concurs with the Department of Neighborhood Services
recommendation to submit the CDBG application.
cc: Eric Levitt, City Manager
Jacob J. Winzenz, Director of Administrative Services
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RESOLUTION NO. 2009-585
A RESOLUTION AUTHORIZING THE FILING OF AN APPLICATION WITH
THE WISCONSIN DEPARTMENT OF COMMERCE
FOR COMMUNITY DEVELOPMENT BLOCK GRANT-EMERGENCY
ASSISTANCE PROGRAM
WHEREAS
, Federal monies are available under the Wisconsin Small Cities
Community Development Block Grant-Emergency Assistance program (CDBG-
EAP), administered by the State of Wisconsin, Department of Commerce,
Bureau of Community Finance, for the purpose of disaster recovery; and
WHEREAS,
the State of Wisconsin has received a total of $24 million dollars in
Disaster Assistance to aid local units of government that have recently
experienced a natural or manmade disaster; and
WHEREAS,
the storms and flooding of June 5 through July 25, 2008, led to a
federal disaster declaration,FEMA-DR-1768 WI in 31 Wisconsin counties
including the county of Rock; and
WHEREAS,
the City of Janesville has undertaken housing, public facilities and
business assistance activities that address damages and losses during the
disaster period; and
WHEREAS,
there is no local match requirement for CDBG-EAP; and
WHEREAS,
the City of Janesville and its citizens have incurred significant cost
associated with the disaster; and
WHEREAS,
the City is seeking additional CDBG funding by way of CDBG-EAP
to be used for eligible activities to related to the disaster period of June 5 through
July 25, 2008; and
WHEREAS
, the Common Council hereby find that this funding and application
are in the best interest and benefit of the City and community.
NOW, THEREFORE BE IT RESOLVED
by the Common Council of the City of
Janesville that it authorizes and directs the City Manager to submit an application
to the Wisconsin Department of Commerce, including all certifications and that
the City Manager is authorized to act in connection with the application and to
provide such additional information as may be required and to administer the
program in accordance with all applicable State and Federal regulations.
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BE IT FURTHER RESOLVED,
that the City Manager, and his designees, are
hereby authorized to negotiate, draft, prepare, execute, file and modify such
other documents, papers and agreements ancillary and/or pertaining thereto and,
from time to time, to take and/or make whatever other minor actions and/or minor
modifications to the above described agreements as the City Manager and/or his
designee may deem necessary and/or desirable to effectuate the purposes of
such agreements and the intent of this resolution.
ADOPTED:
Second by:
APPROVED:
Councilmember Aye Nay Pass Absent
Brunner
Loasching
Eric J. Levitt, City Manager
McDonald
Rashkin
ATTEST:
Steeber
Truman
Voskuil
Jean Ann Wulf, City Clerk-Treasurer
APPROVED AS TO FORM:
____________________________________
City Attorney
Proposed by: Neighborhood Development Specialist
Prepared by: Neighborhood Development Specialist
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