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#5B Memo CDBG-EAP NEIGHBORHOOD SERVICES MEMORANDUM November 12, 2009 TO: Community Development Authority FROM: Jennifer Petruzzello, Neighborhood Services Director SUBJECT: Public Hearing and Action on the Community Development Block Grant Emergency Assistance Program Supplemental Disaster Allocation Summary The Neighborhood Services Department will be recommending that the City Council approve a request for additional funding under the Community Development Block Grant Emergency Assistance Program (CDBG-EAP). The CDBG-EAP grants are to be used to provide assistance to individuals and businesses that were damaged during the disaster period of June 5 through July 25, 2008. In addition, the funds can be used to reimburse the City of Janesville for repair and replacement of public infrastructure damaged during that same period. Reimbursement costs are only eligible if other funding was not available such as insurance or other state or federal programs. As part of the grant requirement the City of Janesville is required to conduct a public hearing to gain citizen input regarding the need for funding under this program. Neighborhood Services is requesting that the CDA conduct a public hearing for this purpose. At this time, staff is considering recommending that the City Council request an additional $2,642,000 in funding to be used for public infrastructure and facilities, mitigation, business assistance, and acquisition and demolition of damaged properties in the floodplain. Background In March of 2009, the City applied for and received funding under the Community Development Block Grant Emergency Assistance Program (CDBG-EAP). In total, the City was awarded: $1,718,876, which included $194,940 in housing acquisition, demolition and relocation for substantially damaged properties, $39,263 in residential rehabilitation, $411,747 in public facilities, $1,000,000 in business assistance, and $72,926 in administration. All funding under this grant is anticipated to be expended by the first quarter of 2010. 1 The Community Development Block Grant-Emergency Assistance Program (CDBG-EAP) is a special program the Wisconsin Department of Commerce, Division of Housing and Community Development (DHCD) activated to assist local units of government that have experienced a natural or manmade disaster. The storms and flooding of June 5 through July 25, 2008, led to a federal disaster declaration, FEMA-DR-1768 WI, in 31 Wisconsin counties including Rock County. Recently, the Department of Commerce has announced the availability of an additional $75,000,000 in disaster recovery funds. Requests for amendments to our contract for additional funding under this program must be received by the Department of Commerce on or before December 4, 2009. There are three categories of eligible activities. 1. The repair and replacement of low and moderate-income (LMI) owner occupied housing that is the principal place of residence and was damage during the disaster; 2. The repair and replacement of public infrastructure limited to facilities that affect the health and safety of residents of the community that was damaged; and 3. Assistance to businesses having unmet recovery needs including the repair of flood damages, loss on inventory and lack of working capital due to lost revenues. City staff is proposing an amendment to our current contract to include the following: 1. Funding in the amount of $298,000 for 3 residential properties located within the Mole Sadler Neighborhood that were substantially damaged. These properties were originally included in another FEMA grant application, but were denied funding for environmental reasons. 2. Funding in the amount of $694,000 for public infrastructure and facilities that were damaged in the flood and for mitigation efforts to reduce future damage due to flooding. 3. Funding in the amount of $1,500,000 to purchase and demolish residential and commercial properties that were damaged and that were identified within areas that were inundated with flood waters. 4. Funding in the amount of $150,000 in additional business assistance. 2