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#5b Attachment PH Notice Budget WEDNESDAY, OCTOBER 14, 2009 6:00 P. M. COUNCIL CHAMBERS, FOURTH FLOOR MUNICIPAL BUILDING 18 N. JACKSON STREET, JANESVILLE, WI The City of Janesville is anticipating receiving $540,713 in FY2010 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 FY2010 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 will also be used for a total of $492,000 for home ownership and affordable housing activities. The Community Development Authority will hold a public hearing on Wednesday, October 14, 2009 at 6:00 P.M. in the City Council Chambers of the Municipal Building concerning the use of these Community Development Block Grant Program and HOME Program funds. HOME Investment Partnership Program (HOME) HOME funds are to be used to provide affordable housing including assistance for new construction of housing to be occupied by income eligible households, down payment and closing cost assistance, and owner- and renter-occupied rehabilitation loans. Down payment assistance loans will include a provision for recapture of the funds during the period of affordability. Rental rehabilitation loans will include a requirement to rent to income-eligible households at affordable rents during the period of affordability. The home ownership and rehabilitation programs will use program income first before drawing on new HOME funds. PROPOSED ALLOCATION of FY2010 HOME FUNDS ($292,000 available in new funds) FY2010 Prior Year Prog. Inc. Total Recently Purchased Rehab $ 40,000 $200,000 0 $240,000 Affordable Housing Development $ 42,000 0 $ 42,000 Home Ownership 135,000 0 $135,000 Rental Rehabilitation $ 3,000 $72,000 $ 75,000 Administration 0 _ _____0 0 Total $220,000 $200,000 $72,000 $492,000 PROPOSED STATEMENT OF OBJECTIVES FY2010 CDBG PROGRAM 1. Housing Activities - To rehabilitate owner-occupied and rental housing occupied by low and moderate income households primarily in the Central City Area through the use of deferred payment and low interest installment loans and partially forgivable loans. Funds may also be used: for acquisition, demolition, and provision of a vacant lot for new housing construction by non-profit agencies for sale to low/moderate income families; or for acquisition and/or rehabilitation of property by a non-profit for transitional housing or other housing programs; to acquire, rehabilitate and resell housing to low and moderate income families; and to provide emergency rent assistance. Funds are also provided for encouraging the reduction in density of multi-family units in the central city area, for the provision of information and training on the hazards of lead-based paint and other housing rehabilitation-related hazards and abatement of such hazards. 2. Neighborhood Stabilization – To acquire, rehabilitate and sell to low/moderate income families or to demolish blighted structures that have been foreclosed upon to support homeownership and stability within neighborhoods most impacted by the foreclosure crisis. 3. CDBG Recovery Program – To stimulate the economy through measures that modernize the Nation’s infrastructure, improve energy efficiency, and expand educational opportunities and access to health care. 4. Local Homeownership Program - To provide funds for the City Homeownership Program including Down Payment and Closing Cost forgivable loans, Duplex As a Starter Home Program loans, fix-up loans, "recently purchased" Home Improvement Program loans, and other homeownership programs. 5. Residential Blight Elimination - To fund the acquisition and demolition of blighted properties in residential areas primarily in the Central City Area. 6. Neighborhood Activities – To fund a variety of programs aimed at reconnecting families in low-moderate income residential areas with their neighborhoods and the community as a whole. Includes neighborhood block grants and summer camp scholarships. 7. Downtown Activities - To provide funds for a variety of blight elimination activities in the Central Business District including: design and rehabilitation of downtown buildings and acquisition, relocation, and demolition of blighted properties. 8. Optional Activities - To provide funds for activities which indirectly support the mission of the Community Development Authority. Activities to be funded in 2010 include the following: Boys and Girls Club, HealthNet, the Literacy Connection, and the YWCA. 9. Administration and Planning - To provide overhead and administrative support necessary to carry out the CDBG Program, including compliance with program regulations and planning for central city and downtown revitalization, and to provide funds to support Historic Commission activities. PROPOSED BUDGET – FY2010 CDBG PROGRAM Funding Sources 2010 Prior Program Grant Year Income Total Benefit* Administration& Planning General Administration $132,736 $0 $0 $132,736 NA Neighborhood Development 43,465 0 0 43,465 NA Rehab. Services Delivery 187,231 0 0 187,231 LMI Administration Subtotal 363,432 0 0 363,432 Program Services Downtown Activities 35,000 0 0 35,000 S/B Historic Preservation 750 0 0 750 NA Home Ownership 51,422 67,678 0 119,100 LMI Housing Activities 38,000 188,200 73,000 261,200 LMI Neighborhood Activities 98,615 0 0 98,615 LMI & S/B Neighborhood Stabilization 361,062 0 0 361,062 LMI & S/B Other Optional Activities Boys and Girl’s Club 3,000 0 0 3,000 LMI Healthnet 38,000 0 0 38,000 LMI Literacy Connection 2,000 0 0 2,000 LMI YWCA 3,000 0 0 3,000 LMI CDBG Recovery Program 108,000 0 0 108,000 LMI Grand Total $1,060,531 255,878 $73,000 $1,389,409 *LMI means the project benefits low and moderate income persons whose household income is 80% or less of Rock County median income. S/B means the project is a slum and blight elimination project. It is the intent of the City of Janesville not to cause displacement of persons as a result of CDBG funded activities. However, in the event that displacement does occur, a plan for assistance has been developed and is available upon request. Comments, questions, or suggestions may be directed to the Neighborhood Services Department, 18 North Jackson Street, P.O. Box 5005, Janesville, WI 53547-5005 or by calling (608) 755- 3065. Michael Bachmeyer, Chairperson Janesville CDA Date Published: 9/30/09