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#5 Public Hearing 2010 State and Federal Grant NEIGHBORHOOD SERVICES MEMORANDUM October 8, 2009 TO: Community Development Authority FROM: Jennifer Petruzzello, Neighborhood Services Director SUBJECT: Agenda Item #5 – Public Hearing and Recommendation 2010 State and Federal Grants Budget Summary Each year, a proposed budget is prepared for the Neighborhood Services Department, Housing Division, “States and Federal Grants Budget”. The proposed budget is drafted to address the goals and objectives identified in the Consolidated Plan and Annual Action Plan for the Community Development Block Grant (CDBG) and HOME Investment Partnership Program. In 2010, emphasis will be on the continued revitalization of Janesville’s residential and downtown neighborhoods through the implementation of housing programs, including: home ownership, the rehabilitation of owner-occupied and rental properties and the elimination of blight. In addition, emphasis will be placed on implementing several new grants obtained in 2009, including: the Neighborhood Stabilization Program, the CDBG-Recovery Program, the Energy Conservation and Efficiency Block Grant and the Lead Hazard Reduction Grant. After holding the public hearing, a motion recommending the 2010 States and Federal Grants Budget, including the allocation of CDBG and HOME funds for the City budget process would be in order. Objectives The goal of the Neighborhood Services Department, Housing Division, is “to promote the revitalization of Janesville’s central city neighborhoods and downtown, resulting in vibrant and healthy residential areas with affordable housing.” This goal is met through the promotion of the following objectives: ? To promote the maintenance and rehabilitation of existing housing through housing rehabilitation programs and the enforcement of housing and nuisance codes. ? To increase homeownership among low and moderate income families ? To assist in the elimination of slums and blight ? To facilitate redevelopment projects ? To administer the federal and state grant programs in an efficient and cost effective manner. 1 The Statement of Objectives further specifies how CDBG and HOME funds will be used for affordable housing development, home ownership, housing rehabilitation, residential blight elimination, neighborhood activities, downtown activities, optional public service activities, local homeownership and administration and planning. Budget The City of Janesville is anticipating receiving $540,713 in 2010 Community Development Block Grant (CDBG) Program funds, $403,788 in Neighborhood Stabilization Funding, $116,028 in CDBG-Recovery and $73,000 in revolving loan fund repayments for a total of $1,133,000 in new CDBG funds. Prior year’s funds in the amount of $255,878 will also be spent for a total of $1,389,409 in CDBG funds. The City of Janesville expects to receive $220,000 in 2010 HOME Consortium funds and $72,000 in HOME program income for a total of $292,000 in new HOME funds. Prior year’s funds in the amount of $200,000 to be used for a total of $492,000 in home ownership and affordable housing activities. The proposed budget has been prepared to address the stated goals and objectives. The budget reflects the addition of the Neighborhood Stabilization Grant, the CDBG-Recovery Grant, the Energy Efficiency and Conservation Block Grant, and a second Lead Hazard Reduction Grant that were awarded in 2009. Program Services has a net increase of $621,722. Neighborhood activities decrease by $17,552 primarily due to a reduction in funding for the Neighborhood Leadership Teams ($12,000) and summer camp scholarships ($8,000). Housing activities increase by $520,274 primarily due to new funding for the Neighborhood Stabilization Program ($361,062) and Energy Efficiency block grants ($81,920). The Neighborhood Stabilization Program includes funding for the redistribution of 0.3 FTE Building Inspector to perform project management ($24,000). This has no cost impact for the grant, but does provide cost savings for the Community Development Department. CDBG Recovery and Reinvestment funding to stimulate the economy through measures that modernize the Nation’s infrastructure, improve energy efficiency, and expand educational opportunities and access to health care ($108,000). 2 In addition, the proposed budget includes funding for the following public service activities: Boys and Girl’s Club (Lincoln After School Program) $ 3,000 Emergency Rent Asst (ECHO) $38,000 HealthNet $38,000 The Literacy Connection $ 2,000 Neighborhood Activities (Neighborhood Action Teams) $ 8,000 Neighborhood Livability (Camp Scholarships) $ 3,000 YWCA (Women’s Empowerment Program $ 3,000 Total $95,000 Recommendation Staff recommends the CDA hold a public hearing on the 2010 Proposed States and Federal Grant’s Budget. Following this hearing, Staff further recommends that the CDA make a motion to recommend the City Council approve the 2010 States and Federal Grant’s Budget and allocation of CDBG and HOME program funds. Attachments: Public Hearing Notice 2010 Proposed Budget 3