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Full Agenda AGENDA JANESVILLE COMMUNITY DEVELOPMENT AUTHORITY REGULAR MEETING WEDNESDAY, NOVEMBER 18, 2009 5:30 p.m. COUNCIL CHAMBERS MUNICIPAL BUILDING 18 NORTH JACKSON STREET JANESVILLE, WISCONSIN 1.Roll Call. 2. Minutes of the Regular Meeting Held on October 14, 2009. “C” 3. Questions and Comments from the Public on Matters Not on the Agenda. 4. Welcome New CDA Member Heidi Holden 5. Public Hearing and Action on Community Development Block Grant Supplemental Disaster Allocation. 6. Consideration of a Request by Home Improvement Program Applicant to Appeal Loan Application Denial 7. Action to Cancel the Regular December 16, 2009 CDA Meeting 8. Neighborhood Services Directors Report. 9. Matters Not on the Agenda. “C” Indicates an item that the Community Development Authority will take up under Consent NEXT MEETING REGULAR MEETING WEDNESDAY, JANUARY 20, 2010 5:30 P.M COUNCIL CHAMBERS Minutes of the Janesville Community Development Authority (CDA) Regular Meeting October 14, 2009 Present: CDA Members: Michael Bachmeyer, Russ Steeber, George Fenn, Duke Ellingson Absent: CDA Member, Tom McDonald, Sylvia Moore Also present: City Staff: Jennifer Petruzzello, Kelly Lee, Carrie Clark; Others: Andreah Briarmoon, Karl Dommerhausen, Jana Vegge Preceding the meeting was an open house invitation to the general public to view and comment upon the proposed 2010-2015 Consolidated Plan. A brief presentation of the plan was presented by Jana Vegge, Consolidated Plan Steering Committee member. The regular meeting was called to order by Chairperson Bachmeyer at approximately 6:05 p.m. Under matters not on the agenda, Andreah Briarmoon spoke about the creation of an Historic overlay district and a Section 8 Homeownership Program, and her concern regarding redevelopment projects and blight elimination. Chairperson Bachmeyer opened the public hearing for the 5-year Consolidated Plan and 2010 Annual Action Plan at 6:10 p.m. Jana Vegge, 518 Lincoln spoke about the housing priorities and suggested that homeownership be replaced with self-sufficiency. Andrea Briarmoon, 339 Locust St., spoke regarding funding for the Downtown Development Center and her desire that this funding was used for a community center instead. Karl Dommerhausen, 2419 Plymouth, commented that the plan and process was well done and complimented all who worked on it. He spoke regarding his support for funding for the Downtown Development Alliance. The public hearing was closed at 6:17 p.m. A motion was made by Steeber, seconded by Ellingson to adopt the plan as presented. The motion passed unanimously. Petruzzello presented the 2010 State and Federal Grants budget. Chairperson Bachmeyer opened the public hearing at 6:23 p.m. Andreah Briarmoon spoke about concerns she had with the process of developing the consolidated plan. The public hearing was closed at 6:25 p.m. A motion was made by Bachmeyer, seconded by Fenn to approve the State and Federal Grants Budget as presented. The motion passed unanimously. Petruzzello presented the 2010 Section 8 Rental Assistance Budget. A motion as made by Steeber, seconded by Ellingson to approve the Section 8 Rental Assistance Budget. The motion passed unanimously. Clark presented the Third Quarter collections report. Petruzzello presented the Single Purpose Audit for the State and Federal Grants’ programs. Petruzzello indicated to members that the City Council would be considering the appointment of Heidi Holden as a member of the CDA, to be seated in November. She also indicated that the City Council would be considering the purchase of 3 tax-foreclosed properties. It is hoped that two will be rehabilitated and one will be demolished.. There being no further business, a motion was made by Steeber, seconded by Ellingson to adjourn the meeting. The meeting was adjourned at 6:40 p.m. These minutes are not official until approved by the CDA. Respectfully submitted by Carrie Clark, Housing Financial & Rehabilitation Specialist NOTICE OF PUBLIC HEARING CITY OF JANESVILLE COMMUNITY DEVELOPMENT AUTHORITY CDBG EMERGENCY ASSISTANCE PROGRAM Wednesday, November 18, 2009 5:30 p.m. Council Chambers Fourth Floor, Municipal Building 18 N. Jackson St. Janesville, WI 53548 The City of Janesville Community Development Authority will be holding a public hearing on November 18, 2009 to solicit citizen input on the City’s application for additional funding under the Community Development Block Grant Emergency Assistance Program (CDBG-EAP). CDBG-EAP funds may be awarded to the City for housing, public facilities and /or business assistance activities that address damages and losses during the disaster period of June 5 through July 25, 2008. All interested citizens are invited to express their views on the need for funding under this program. Michael Bachmeyer, Chairperson Community Development Authority November 11, 2009 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 NEIGHBORHOOD SERVICES MEMORANDUM November 13, 2009 TO: Community Development Authority FROM: Carrie Clark, Housing Financial & Rehabilitation Specialist SUBJECT: Agenda Item #6 - Request from Home Improvement Program Applicant To Appeal Denial of Loan Application Executive Summary Neighborhood Services has received a request from a Home Improvement Program (HIP) applicant that the CDA reconsider staff’s decision to deny their application for funding. Staff had initially denied the application as the proposed scope of the project is inconsistent with Home Improvement Program goals. The goal of the Home Improvement Program is to improve housing lacking basic decent, safe and sanitary conditions or substandard housing. To help define that standard, the Department of Housing and Urban Development (HUD) has developed a set of property condition criteria, or minimum housing quality standards (HQS) to characterize the condition of the property. Staff reviewed the appeal and maintains the opinion that the project is inconsistent with HIP Program goals, as outlined in the HIP manual. Staff recommends that the CDA deny the appeal. The following memo will outline the nature of the request and the HIP Program manual guidelines which formed the basis for this decision. Background An application to the Home Improvement Program was received by an applicant residing at 302 S. Randall Avenue. The applicant is requesting funding to remove a tree(s) in the front yard of the property because he feels they present a safety concern. This applicant meets the income-eligibility and equity requirements of the Program that would generally allow participation in the Program. However, staff denied the application because the proposed work, tree-removal, is inconsistent with Program goals. This applicant received funding in the amount of $15,000 from the Home Improvement Program in 1998 to assist with making improvements to the property including: roofing, siding, and attic insulation. At that time, the property met minimum housing quality standards and was considered decent, safe and sanitary. No other repairs have been requested that would lead staff to believe that the property no longer meets these standards. An exterior inspection of the property was performed and no conditions exist that would characterize the property as substandard. The tree(s) in question (see photos) were evaluated by a member of the City Services staff as well as Alliant Energy. City Services staff did not feel that the tree was an immediate danger. Alliant Energy indicated it may qualify for trimming, but they would not undertake any immediate trimming. They indicated they would consider including the trimming in their next regular round of tree-trimming. There are several areas of the Home Improvement Program manual that define the type of work, allowable costs, and priority of work to be funded. To be more specific, Chapter 3, Eligibility, states: (Ch. 3, Section III, Eligible Work, A. General Requirements) 1.Permanence Requirement 1 The rehabilitation will be a permanent improvement to an existing structure which accomplishes any of the following: a. Maintains the structure in a decent, safe, and sanitary condition or restores it to that condition. b. Extends the economic or physical life of the structure. c. Conserves the use of energy within the structure. d. Restores or preserves elements of architectural/historical importance. e.Improves the accessibility of residential housing to a handicapped occupant, in which event the rehabilitation work may be of a temporary nature. f.Reduces identified lead based paint hazards. Chapter 3 of the manual also defines allowable costs and classifies them as either general improvements, special improvements, and code-related improvements: (Ch. 3, Section III, Eligible Work, B. Allowable Costs (1-3)) B. Allowable Costs For the purposes of the Home Improvement Program, the types of costs that may be financed with a home improvement loan are classified as general improvements, special improvements, and code-related improvements. 1. General Improvements Whether additions, alterations, or repairs, the costs of improvement work needed to put the property into sound and readily maintainable decent, safe and sanitary condition with all necessary facilities in good working order, even though such work may not be required by the property rehabilitation standards applicable to the property, may include, but are not necessarily limited to the costs of the following work: a.DESIGN the necessary design services in the event the homeowner chooses to employ a private designer to prepare plans and/or specifications. b.STRUCTURAL additions and alterations to foundation and framing system including: foundation and chimney repair/reconstruction, floor, wall and roof framing repairs, installation of beams and columns for support, porch and step repair/reconstruction, door and window repair/replacement, interior wall restructuring to better utilize available space and construction of room additions if such space is needed to alleviate an overcrowded condition. c.ROOFING system repair and replacement including installation of gutters and downspouts for drainage. d.PLUMBING system repair/ replacement/ additions including: bathroom fixtures, kitchen sink, water heaters and softeners, renovation of water supply and drain- waste-vent systems to meet plumbing code requirements. e.HEATING system repairs/ replacement/ alteration including: repairs to or replacement of furnace/ boiler systems, pipes, ducts and radiation, installation of exhaust and ventilating fans and installation of humidifiers. Mechanical air conditioning systems are fundable only when need for medical reasons can be established. Alternate energy systems will be considered on an individual project basis. 2 f.ELECTRIC system repairs/ replacement/ additions including upgrading service to 100 amp, installation of new circuits, outlets, fixtures, switches and rewiring to meet electrical code requirements. g.ENERGY conservation related improvements including: insulation, installation of storm doors and windows, caulking, weather-stripping and repair needed to reduce infiltration. Energy system monitoring devices and devices intended to improve efficiency of energy systems will be considered on an individual project basis. In general, energy conserving devices and designs may be considered if it can be established that the payback period offsetting the cost of such, is five years or less. h.INTERIOR renovation including: wall, floor, ceiling and woodwork repair, general renovation of kitchen and bath, including cabinets and countertop, floor coverings, painting, and miscellaneous such as door and window locks. i.EXTERIOR renovation including: siding and trim repair/replacement, painting, waterproofing, porch, deck, step and railing repair/replacement. j. SITE improvements including: general cleanup of property and removal of deteriorated outbuildings, garage repairs and painting, repair/replacement of walks and driveways and landscaping. 2. Special Improvements The costs of work in the above general improvement categories may be financed with a home improvement program loan for the following improvements: a.CONVERSION, the improvement work needed to convert the property so as to change its use or the number of dwelling units, provided that: the use of the structure is residential and the number of dwelling units after work has been completed is two or less, and the improvements conform to zoning ordinance and building code requirements. b.ACCESSIBILITY, the alterations necessary to make the structure more readily accessible to a handicapped homeowner or member of the homeowner's family. Such alterations include, but are not necessarily limited to: the design and construction of ramps for wheelchair use, restructuring of doorways, modifications to kitchen and bath facilities and installation of specialized equipment i.e. grab bars, door hardware, shower seats, thermostatically controlled mixing valves, mechanical lifts, etc. c. HISTORICAL/ARCHITECTURAL RESTORATION which includes the reconstruction and addition of architectural elements previously removed from the structure, the repair of existing architectural elements and the appropriate replacement of elements beyond repair. NOTE: All improvement work funded under the Home Improvement Program performed on structures or property of architectural/historical importance shall be accomplished in accordance with the intent of the standards outlined in the Secretary of the Interior's "Standards for Historic Preservation Projects" (see Appendix 2). 3 3. Code Related Improvements Code related improvements may include the following: a. The cost of improvement work needed to correct existing violations of the requirements of the Janesville Housing and Building Codes and other applicable property rehabilitation standards. b. The cost of improvement work needed to correct incipient violations of the requirements of the Janesville Housing and Buildings Codes and other applicable property rehabilitation standards. An "incipient violation" is an existing condition of an element of the structure that is not in violation of the requirements of applicable property rehabilitation standards at the time of inspection, but which will clearly deteriorate into an actual violation of such requirements within a one- or two-year period if not corrected. C. Costs Not Allowable Except as otherwise provided, the costs that may be financed with a home improvement loan do not include the following: 1. The costs of materials and labor of work which would destroy distinguishing qualities or character of the building. 2. The costs of materials, fixtures, equipment, or landscaping of a type of quality which exceeds that customarily used in property of the same general type as the property to be rehabilitated, according to the experience of the home improvement program. 3. The costs of purchase, installation, or repair of furnishings. 4. Improvements on mixed use structures that will exclusively or primarily benefits the commercial facilities. 5. Specific items listed as ineligible in Appendix 3. Chapter 3 of the manual further sets an order of work priority that states the following: (Ch. 3, Section IV, Priorities.. C) C. Work Priorities Under the Home Improvement Program funding, emphasis will be placed on work needed to maintain the structure in a decent, safe, and sanitary condition or to restore the structure to such a condition. Consequently, the Community Development Authority has established priorities for work on individual projects. The following classes of work establish the Home Improvement Program's priorities and work approved for funding on an individual project will be in accordance with such priorities. 1. CLASS I: STRUCTURE/ROOF - Improvement work required to correct major structural deficiencies and work required to correct deficiencies in roof covering shall be considered highest priority for funding with loan proceeds. General improvements in this class are listed in Section III, B, 1, b and c of this chapter. 2. CLASS II: MECHANICAL/ENERGY - Improvement work required to render mechanical systems (electrical, plumbing, heating) safe, fully functional and code complying; and work required to properly enclose the structure and conserve energy within the 4 structure shall be considered high priority for funding with loan proceeds. General improvements in this class are listed in Section III, B, 1, d, e, f, and g of this chapter. 3. CLASS III: INTERIOR RENOVATION - Work required to establish or maintain decent, safe, and sanitary conditions within the structure shall be considered high priority for funding with loan proceeds. Decorating and cosmetic-type improvements shall be considered lower priority. General improvements in this class are listed in Section III, B, 1, h, of this chapter. 4. CLASS IV: EXTERIOR RENOVATION - Work required to establish or maintain decent, safe and sanitary conditions relating to the exterior of the structure and to the property shall be considered high priority for funding with loan proceeds. Work of purely cosmetic nature shall be considered lower priority. General improvements in this class are listed in Section III, B, 1, I, and J of this chapter. NOTE: Work required to remove hazards caused by the presence of lead-based paint shall be considered a high priority and shall be accomplished on each project as part of the funded work. Recommendation Staff believes the request to be inconsistent with Home Improvement Program rehabilitation priorities, allowable costs, and work priorities as defined by the HIP manual. The proposed work does not involve the structure of the property, nor does staff believe the work to be of an immediate nature needed to protect or preserve the structure. Staff can appreciate the concern of the homeowner. However, due to limited Program dollars and a large pool of applications, staff must make every effort to adhere to the Program guidelines in place. A motion to deny the application would be in order. 5 6 7 8 NEIGHBORHOOD SERVICES MEMORANDUM November 13, 2009 TO: Community Development Authority FROM: Jennifer Petruzzello, Neighborhood Services Director SUBJECT: Agenda Item #7 – Action to Cancel the Regular December 16, 2009 Meeting The next Regular CDA meeting falls on December 16, 2009. With that date being in close proximity to the holidays and due to the lack of regular business on the agenda, I would recommend that the CDA cancel the December meeting. The next regular meeting would be January 20, 2010. Thank you for your consideration. 1