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#5 CDBG and HOME Priorities NEIGHBORHOOD SERVICES MEMORANDUM August 10, 2009 TO: Community Development Authority FROM: Jennifer Petruzzello, Neighborhood Services Director SUBJECT: Item #5 – Identification of priorities and criteria for CDBG and HOME funding Executive Summary: Development of the 5 Year Consolidated Plan is currently underway. A draft plan has been created by MSA Professional Services (the consultant assisting the City with the preparation of its Consolidated Housing and Community Development Plan), with input from the Steering Committee. This draft was initially prepared without knowledge of the CDA’s priorities because there was not a quorum at the Authority’s July meeting. The planning process is at a point where it is necessary for the CDA to identify their top priorities. More detailed information will be provided and more specific goals will be identified for those items which are identified as priorities. In addition, the 2010 budget will be prepared with those priorities in mind. Staff recommends that the CDA identify three to four housing and public service activities to be identified as funding priorities for 2010. These priorities are those that the CDA should envision funding in the upcoming years. Background: MSA Professional Services has recently completed a series of 5 focus groups intended to garner increased public participation for the City’s CDBG and HOME Consolidated Planning process. The focus groups were conducted on June 23 and June 25. In total, there were 31 participants, including 6 persons who identified themselves as consumers of one or more of the programs funded through the CDBG and HOME programs. During each focus group, participants were asked to define the Strengths, Weaknesses, Opportunities, Threats, and Gaps in the housing and community development programs offered within the City of Janesville and Rock County. At the culmination of each session, participants were given three stickers that they placed next to the three things they felt were the highest priorities. On July 7, the Steering Committee heard a presentation from MSA on the results of these th focus groups. MSA defined the “top ten” priorities identified during the focus groups, and the Steering Committee privately ranked their top five priorities. The following list displays the priority objectives, in order of ranking: -Create affordable, quality, housing stock for LMI -Improve Existing housing stock -Job Training -Rent assistance -Healthcare -Increased Home-ownership Opportunities -Transitional Housing for the general population -Transportation -Self-Sufficiency programs (responsible renting, etc.) -Subsidized housing -Education/training on HUD requirements The goals of the CDBG program are to provide decent housing, a suitable living environment, and expanded economic opportunities. The goal of the HOME program is to buy, build, or rehabilitate affordable housing for rent or homeownership or to provide direct rental assistance to low-income individuals. Eligible activities include a wide variety of acquisition, rehabilitation, construction, and demolition activities associated with residential building, low-income housing, urban redevelopment, and public facilities. Only 15% of the CDBG funds may be used for public services. Public services include, though are not limited to, those concerned with employment, crime prevention, child care, health, drug abuse, education, fair housing counseling, energy conservation, welfare, homebuyer down-payment assistance, or recreational needs. Analysis: The establishment of clear priorities is critical to developing a planning document that is focused on housing and public service activities that will have the greatest impact in the community. Through the establishment of clear goals, the CDA will be positioned to evaluate funding requests from non-profit organizations who provide valuable public services to the community. CDA members are encouraged to compare the eligible activities and program goals to the priorities identified by the focus group and steering committee. Recommendation: Staff has compared the program goals with the priorities identified by the focus groups and recommends the CDA select 3-4 housing priorities and 3-4 public service activities to be identified as priorities: Housing Priorities: Create affordable, quality, housing stock for LMI Improve Existing housing stock Increased home ownership opportunities Transitional Housing for general population (infrastructure) Subsidized Housing (infrastructure) Public Service Priorities: Job Training or employment services Rent assistance Healthcare Transitional Housing for the general population (services) Transportation Self-Sufficiency programs Education / Training on HUD requirements