#6 Substantial Plan Amendment -CDBG-R Cover
NEIGHBORHOOD SERVICES MEMORANDUM
May 21, 2009
TO: Community Development Authority
FROM: Jennifer Petruzzello, Neighborhood Services Director
SUBJECT: Agenda Item 6: Public Hearing and Action on a 2008 Substantial Plan
Amendment for the Community Development Block Grant Recovery
(CDBG-R) Program.
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ACKGROUND
The American Recovery and Reinvestment Act of 2009 allocated additional funding for
the Community Development Block Grant Program. The funding allocation is: 27% of
The City of Janesville is eligible to receive
the City’s 2008 CDBG Allocation.
$145,035 under this program.
Funding eligibility under this program is not the same as the normal CDBG Program.
Funding must be used to “stimulate the economy through measures that modernize the
Nation’s infrastructure, improve energy efficiency, and expand educational opportunities
and access to health care”.
HUD urges grantees to use CDBG-R funds for hard development costs associated with
infrastructure activities that provide basic services to residents or activities that promote
energy efficiency and conservation through rehabilitation or retrofitting of existing
buildings.
The addition of these funds constitutes a significant change in the 2008 plan, and
requires a substantial amendment. This amendment details the proposed activities
under CDBG – R and explains how those activities meet the federal requirements. The
substantial amendment must be submitted by June 5, 2009, following a seven–day
comment period. The Substantial amendment will be prepared and posted on May 28,
2009.
PROPOSED ACTIVITIES
The City of Janesville received our first guidance in how CDBG-R funds could be used
two weeks ago, and as already mentioned the Substantial Amendment must be posted
on May 28, 2009. Given the short notice and a desire for public input, I scheduled a
public hearing on this topic. I also sent an email notification to the non-profit
organizations who are currently receiving CDBG or HOME funding with a copy of the
notice regarding funding and program requirements. I indicated that there would not be
a formal proposal process, but those wishing to share written comments or make a
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written proposal could do so. Two organizations submitted written proposals or ideas:
The Janesville Literacy Council and HealthNet. Please see attached.
The Janesville Literacy Council – The Janesville Literacy Council submitted a proposal
to expand educational opportunities through employment of a Program
Coordinator/Adult Education Instructor, which would enable the literacy council to
expand programming and focus on job related skills. ($10,000)
HealthNet – HealthNet submitted a proposal to expand the HealthNet Clinic to ensure
quality medical care to the uninsured and low-income residents of Rock County. The
expansion would double the number of exam rooms, create a medication dispensing
area, and build a new space for the nursing staff and volunteers. ($145,035)
Staff has considered other possible uses for the funding, including the creation of an
energy efficiency grant program for rental properties serving low to moderate income
individuals, an energy efficiency grant program for non profit organizations serving low
to moderate income individuals, and expanding code enforcement.
In evaluating these ideas/proposals, one should consider:
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Their readiness (must be started within 120 days and finished within 3 years),
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Staff capacity (time available to complete project, develop and administer new
program),
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One time funding source,
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Ability to satisfy the goals and objectives of the recovery act, including:
Preserving and creating jobs and promoting economic recovery,
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Assisting those most impacted by the recession,
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Providing investment needed to increase economic efficiency,
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Investing in transportation, environmental protection that will provide long-
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term economic benefits,
Minimizing or avoiding reductions in essential services, or
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Fostering energy independence.
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Recommendation:
Following the public hearing, staff recommends that the CDA approve:
$10,000 in funding to the Janesville Literacy Council
$125,000 in funding to HealthNet
$10,035 in Administrative Expenses (grant application, financial management, quarterly
reporting, Davis Bacon wage compliance, contract administration).
J:\Development\Housing, Building & Neighborhood Services\Administration - HBNS\CDA Agenda Items\2009 Agenda
Items\May 27, 2009\Item #6 Substantial Plan Amendment -CDBG-R Cover.doc
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