#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.
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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.
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