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#05 Approve 5 year CDBG Consolidated Plan & Action Plan (File Res. #2009-647) NEIGHBORHOOD SERVICES MEMORANDUM October 15, 2009 TO: City Council FROM: Jennifer Petruzzello, Neighborhood Services Director SUBJECT: Action on a proposed resolution approving the 2010-2014 Consolidated Plan and 2010 Annual Action Plan for the Community Development Block Grant Program and Rock County HOME Consortium Submission (File Resolution No. 2009-647). Summary: The City of Janesville is an entitlement community under the Community Development Block Grant (CDBG) Program. This means that the City receives an annual allocation of funds based on community need and the federal budget. The City is also a partner and lead agency in the Rock County Consortium for the receipt of HOME Investment Partnership (HOME) Program funds. In order to receive funds from both of these programs, a Five-Year Consolidated Plan is prepared along with an Annual Action Plan. This year, both a Five-Year and Annual Action Plan were completed. A Steering Committee, focus groups, and open houses, were added to the required public hearings, in an effort to obtain significant and meaningful public input. The Community Development Authority held public hearings on September 16, 2009 and October 14, 2009. Comments received have been summarized within the plan. Recommendation: The CDA and city staff recommend that the City Council approve Resolution #2009-647, approving the 2010-2014 Consolidated Plan and the 2010 Action Plan for the Community Development Block Grant Program and the Rock County HOME Consortium Submission. City Manager Recommendation: The City Manager concurs with the CDA and Neighborhood Services recommendation. Suggested Motion: I move to approve file resolution #2009-647, approving the 2010-2014 Consolidated Plan and the 2010 Action Plan for the Community Development Block Grant Program and the Rock County HOME Consortium Submission. 1 Background: The primary objective for the use of Community Development Block Grant (CDBG) funds 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: efficient and effective program administration, elimination of slums and blight, facilitation of redevelopment projects, increasing home ownership for low and moderate income families, and promotion of maintenance and rehabilitation of existing housing through housing rehabilitation programs and the enforcement of housing and nuisance codes. The primary objective for the use of HOME funds is to provide decent housing. In order to accomplish this objective, the Janesville CDA will use HOME funds to provide funding for affordable housing development, rehabilitation of owner- occupied units, renter-occupied units and down payment and closing cost assistance loans to first-time homebuyers. The CDA has developed three priorities to be addressed through the CDBG and HOME programs over the next five years: ? To create affordable, quality, housing stock for low to moderate income families. ? To improve the existing housing stock. ? To increase homeownership opportunities. 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 will 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. In addition, the proposed budget includes funding for the following public service activities: 2 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 Attachments: Proposed City Council Resolution #2009-647 2010-2014 Consolidated Plan 2010 Annual Action Plan cc: Eric Levitt, City Manager Jacob Winzenz, Asst. City Manager/Director of Administrative Services Attachments: Proposed City Council Resolution 2009-647 Draft 2010-2014 Consolidated Plan and 2010 Annual Action Plan 3 RESOLUTION NO. 2009-647 RESOLUTION APPROVING THE 2010-2014 CONSOLIDATED PLAN AND 2010 ACTION PLAN FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM AND ROCK COUNTY HOME CONSORTIUM SUBMISSION WHEREAS , the City of Janesville is an entitlement community under the Community Development Block Grant Program and is the lead agency for the Rock County Consortium under the HOME Investment Partnership (HOME) Program, both of which are administered by the U. S. Department of Housing and Urban Development; and WHEREAS , The City of Janesville is anticipating receiving approximately $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; and WHEREAS , The City of Janesville expects to receive approximately $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 total of $492,000 in home ownership and affordable housing activities; and WHEREAS , the Community Development Authority (CDA) has held the required public hearing and evaluated the citizen comments concerning potential activities for the City of Janesville's 2010-2014 Consolidated Plan and 2010 Annual Action Plan for the Community Development Block Grant and HOME Program submissions and thereafter considered the various alternative allocations for activities; and WHEREAS , the Community Development Authority has recommended to the Common Council that it approve the following Final Statement of Objectives and Budget to be included in the City of Janesville Consolidated Plan, 2010 Action Plan: 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. Resolution No. 2009-647 Page 2 HOME-funded FY 2010 objectives The following are proposed ; the outcome is listed following each item: Janesville ? Provide funds for affordable housing development (Availability/Accessibility) ? Provide funds for rehabilitation of owner-occupied units (Affordability) ? Provide funds for rehabilitation of renter-occupied units (Availability/Accessibility) ? Provide funds for down payment and closing cost assistance loans to first-time homebuyers (Affordability) Rock County ? Provide funds for down payment and closing cost/mortgage assistance and related rehabilitation as needed (Affordability) ? Provide funds for rehabilitation of owner-occupied units (Affordability) ? Potential uses also include assistance for new housing development, acquisition or conversion of properties for new housing development, and demolition of blighted structures related to new housing development (Availability/Accessibility) ? Provide funds for the development of new rental units. (Availability/Accessibility) 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 CDBG-funded FY 2010 objectives for the City of Janesville The following are proposed : 1. Housing Rehabilitation - To rehabilitate owner-occupied and investor-owned 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 to support Homeownership Program activities; to provide loans and/or grants for acquisition of property by non- profit agencies for rehabilitation and sale to low /moderate income occupants; 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 Resolution No. 2009-647 Page 3 housing programs. Using these funds, the City may also acquire, rehabilitate and resell housing to low and moderate income families. Funds are also provided for encouraging the reduction in density of multi-family units in the central city area in connection with the rehabilitation work, 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. Also uses prior years' funds and program income. 2. Residential Blight Elimination - To fund the acquisition and demolition of blighted properties in residential areas primarily in the Central City Area. Also funds the acquisition of residential property not feasible for rehabilitation and making the site available for an appropriate re-use such as parking, tot lot, or new housing construction. Also uses prior years' funds and program income. 3. 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. Also uses prior year’s funds. 4. Downtown Activities - To provide funds for a variety of blight elimination activities in the Central Business District including repair of public facilities such as the river walkway, rehabilitation including design work of downtown buildings, downtown planning and management, construction or reconstruction of parks and parking facilities, and acquisition, relocation, and demolition of blighted properties in Census Tract 1. Property acquired and cleared of blight to be used for activities such as parks and open space, parking, redevelopment, or as authorized by the City Council. Also uses prior years' funds and program income. 5. Optional Activities - To provide funds for activities which indirectly support the housing and downtown mission of the department. Activities to be funded in 2010 include the following: ECHO, HealthNet, the Boys and Girls Club, the Janesville Literacy Council, YWCA Women’s Economic Empowerment Program, the Neighborhood Action Team, and summer camp scholarships. 6. 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. Also uses prior years' funds and program income. 7. Administration and Planning - To provide overhead and administrative support necessary to carry out the Community Development Block Grant Program including compliance with program regulations and planning for downtown and central city revitalization, and to provide funds to support Historic Commission activities such Resolution No. 2009-647 Page 4 as memberships, subscriptions, and resource materials. Also uses prior years’ funds. CDBG-NSP funded FY 2010 objective The following is the proposed : 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. CDBG-R funded FY 2010 objective The following is the proposed : To stimulate the economy through measures that modernize the Nation’s infrastructure, improve energy efficiency, and expand educational opportunities and access to healthcare. 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 Resolution No. 2009-647 Page 5 *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. WHEREAS , the CDA further recommends to the Common Council that it authorize and direct the City Manager to execute the 2010-2014 Consolidated Plan and FY2010 Action Plan for the CDBG and HOME programs, including the various certifications for these funds; and WHEREAS , the Common Council finds that it is in the community's best interest to fulfill the requirements to secure the FY2010 CDBG and HOME funds for the eligible activities in the City of Janesville; NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of Janesville, that it authorized and directs the City Manager to submit the 5 Year Consolidated Plan and 2010 Annual Action Plan including the above statement of objectives and budget as recommended, including assurances contained therein and to provide any other information requested by HUD; 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. The City Manager is also hereby authorized to revise the FY2010 budget document to reflect the receipt of the FY2010 Community Development Block Grant Program and HOME program funds and the expenditures as reflected in this resolution. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner McDonald Eric J. Levitt, City Manager Perrotto Rashkin ATTEST: Steeber Truman Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: Resolution No. 2009-647 Page 6 City Attorney, Wald Klimczyk Proposed by: Community Development Authority Prepared by: Neighborhood Services Director ëÇ»¿®Í¬®¿¬»¹·½Ð´¿²ÜÎßÚÌ Ì¸·­¼±½«³»²¬·²½´«¼»­Ò¿®®¿¬·ª»Î»­°±²­»­¬±­°»½·º·½¯«»­¬·±²­¬¸¿¬¹®¿²¬»»­±º ¬¸»Ý±³³«²·¬§Ü»ª»´±°³»²¬Þ´±½µÙ®¿²¬øÝÜÞÙ÷ôØÑÓÛײª»­¬³»²¬Ð¿®¬²»®­¸·°ô ر«­·²¹Ñ°°±®¬«²·¬·»­º±®Ð»±°´»©·¬¸ß×ÜÍøØÑÐÉß÷¿²¼Û³»®¹»²½§Í¸»´¬»®Ù®¿²¬­ øÛÍÙ÷Ю±¹®¿³­³«­¬®»­°±²¼¬±·²±®¼»®¬±¾»½±³°´·¿²¬©·¬¸¬¸»Ý±²­±´·¼¿¬»¼ д¿²²·²¹Î»¹«´¿¬·±²­ò GENERAL ÛÈÛÝËÌ×ÊÛÍËÓÓßÎÇ Ì¸»Ý±²­±´·¼¿¬»¼Ð´¿²·­¿°´¿²²·²¹¼±½«³»²¬¬¸¿¬·­®»¯«·®»¼¾§¬¸»ËòÍòÜ»°¿®¬³»²¬±ºØ±«­·²¹¿²¼ Ë®¾¿²Ü»ª»´±°³»²¬øØËÜ÷º±®¿´´®»½·°·»²¬­±ºº«²¼­º®±³¿²§±ºº±«®²¿¬·±²¿´¹®¿²¬°®±¹®¿³­æ¬¸» ݱ³³«²·¬§Ü»ª»´±°³»²¬Þ´±½µÙ®¿²¬øÝÜÞÙ÷ôØÑÓÛײª»­¬³»²¬Ð¿®¬²»®­¸·°Ð®±¹®¿³øØÑÓÛ÷ô º±®Ð»®­±²­©·¬¸ß×ÜÍøØÑÐÉß÷òß­¿ÝÜÞÙ Û³»®¹»²½§Í¸»´¬»®Ù®¿²¬øÛÍÙ÷ô¿²¼Ø±«­·²¹Ñ°°±®¬«²·¬·»­ 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ß²¼Ð¿­¬Ð»®º±®³¿²½»Ûª¿´«¿¬·±² REQUIRED RESOURCES: PROGRAM SERVICES 2008200920092010 ActualBudgetEstimatedProposed Neighborhood Code Enforcement027,55419,17032,615 (1) Neighborhood Block Grants 22,36720,00020,0008,000 (2) Neighborhood Livability - Scholarships9,31611,00015,0003,000 Neighborhood Maintenance/Blight52,32957,61320055,000 Subtotal84,012116,16754,37098,615 Downtown Revitalization336,36533,50083,50035,000 Subtotal336,36533,50083,50035,000 Housing Owner Rehabilitation258,500213,300183,750244,500 Rental Rehabilitation160,838131,500153,450154,700 Home Ownership362,396425,408615,900494,100 Buy/Rehab/Sell66,7211,8005,0003,000 (3) Emergency Rent26,70032,50032,50038,000 Neighborhood Stabilization Program00576,292361,062 Energy Efficiency00081,920 Affordable Housing Development094,500042,000 Subtotal875,154899,0081,566,8921,419,282 Historic Preservation17,5593,7505,9003,750 Community Development CDBG Recovery & Reinvestment0027,000108,000 Other CDA Allocations (2) Boys & Girls Club 002,0003,000 (2) 02,0002,0000 CASA (2) 54,16832,50032,50038,000 Healthnet (2) Janesville Literacy Council 1,0002,0003,0002,000 12 & 12 Club38,20403,2960 YWCA0003,000 Subtotal93,37236,50042,79646,000 0000 UNALLOCATED PROGRAM TOTAL$1,406,462$1,088,925$1,780,458$1,710,647 First Program Year Action Plan 5 Version 2.0 City of Janesville Ù»²»®¿´Ï«»­¬·±²­ ïòÜ»­½®·¾»¬¸»¹»±¹®¿°¸·½¿®»¿­±º¬¸»¶«®·­¼·½¬·±²ø·²½´«¼·²¹¿®»¿­±º´±©·²½±³»º¿³·´·»­¿²¼ñ±® ®¿½·¿´ñ³·²±®·¬§½±²½»²¬®¿¬·±²÷·²©¸·½¸¿­­·­¬¿²½»©·´´¾»¼·®»½¬»¼¼«®·²¹¬¸»²»¨¬§»¿®òɸ»®» ¿°°®±°®·¿¬»ô¬¸»¶«®·­¼·½¬·±²­¸±«´¼»­¬·³¿¬»¬¸»°»®½»²¬¿¹»±ºº«²¼­¬¸»¶«®·­¼·½¬·±²°´¿²­¬± ¼»¼·½¿¬»¬±¬¿®¹»¬¿®»¿­ò ´±½¿¬»¼·²­±«¬¸»®²É·­½±²­·²ò׬·­¬¸»½±«²¬§­»¿¬±ºÎ±½µÝ±«²¬§òÍ·¬«¿¬»¼¿´±²¹¬¸» Ö¿²»­ª·´´»·­¿Ý·¬§ α½µÎ·ª»®ô¬¸»Ý·¬§±ºÖ¿²»­ª·´´»­»®ª»­¿­¾±¬¸¬¸»¹»±¹®¿°¸·½¿²¼½·ª·½½»²¬»®±º¬¸»Ý±«²¬§ò̸·­ ݱ²­±´·¼¿¬»¼Ð´¿²¿¼¼®»­­»­¬¸»ÝÜÞÙº«²¼­©¸·½¸©·´´¾»­°»²¬©·¬¸·²¬¸»Ý·¬§±ºÖ¿²»­ª·´´»ô¿²¼¬¸» ØÑÓÛº«²¼­©¸·½¸©·´´¾»­°»²¬©·¬¸·²Î±½µÝ±«²¬§òд»¿­»®»º»®¬±¬¸»­»°¿®¿¬»Ý·¬§±ºÞ»´±·¬ 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