#4 Lead Hazard Reduction Demonstration Grant
NEIGHBORHOOD SERVICES MEMORANDUM
May 6, 2010
TO: Community Development Authority
FROM: Jennifer Petruzzello, Neighborhood Services Director
SUBJECT: Agenda Item 4: Action on a Recommendation to the City Council
regarding the City’s participation in the Wisconsin HUD Lead Hazard
Reduction Demonstration Program.
Background:
In December 2009, the State of Wisconsin Division of Public Health applied for a Lead
Hazard Reduction Grant Program offered through the U.S. Department of Housing and
Urban Development. The State applied for this grant to provide funding for lead hazard
reduction activities throughout Rock and Dane Counties. While the City of Janesville
was not a part of the original application process, the State has extended an invitation
for us to participate in this grant program.
The State has received funding to assist approximately 300 dwelling units throughout
Dane and Rock Counties. An average of $10,250 is budgeted for each dwelling unit. At
this time, the City’s participation would be set at 9 dwelling units between the date the
contract is signed and December 14, 2012. This number may be increased by a mutual
agreement. The contract amount would be not to exceed $101,250. The program
requires a 30% local match, which would be covered through Community Development
Block Grant Funds.
Funding would be available to reduce or eliminate lead hazards in income eligible rental
housing and owner occupied housing. Priority will be given to assist dwellings occupied
by children under six years of age with documented lead poisoning to protect them from
further lead exposure. Secondary priorities for assistance will include dwellings built
before 1950 and vacant buildings. A copy of the proposed work plan is attached for
those who are interested in the specific details of the program.
Analysis:
Participation in the Lead Hazard Reduction Grant Program would bring additional
financial resources to the City of Janesville to address lead hazards in our housing
stock. For the last 3 ½ years, the City has offered a lead hazard reduction grant
program with funding through the Rock County Consortium. The City has received
additional funding under the Rock County Lead Hazard Reduction Grant, which will
allow us to complete 9 units per year for 2010, 2011, and 2012. Funding under the Lead
Hazard Demonstration Grant would allow us to assist another 9 units during this time
period, bringing the total number of units assisted to 12 per year.
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Housing staff is experienced in working to reduce lead hazards, and this new program
would be administered in a very similar manner as our current grant. There are a few
regulatory differences, including a higher local match, no Davis Bacon prevailing wage
rate requirements, and no requirement that all minimum housing quality standards have
been met.
Funding for the local match would come from the CDBG revolving loan fund, which
would be provided to the property owner in the form of a low interest loan using the
same standards as our traditional Home Improvement Program loans. Davis Bacon
prevailing wage rate requirements can limit the number of contractors interested in
bidding for a project, and as a result sometimes drive up the cost of a construction
project. Since this program does not require Davis Bacon wage rate compliance, we
would expect property owners to obtain favorable bids on their projects. It has always
been the City’s desire to address all minimum housing quality (HQS) standards when
we work with a landlord or a homeowner on a rehabilitation project, however, that is not
a requirement for this program. We have had a few occasions over the past year, where
we have not been able to assist a homeowner because the cost of addressing both lead
hazards and HQS standards has been outside of our loan limits and/or outside of their
ability to qualify for a loan.
Addressing lead hazards is consistent with the Consolidated Plan and the 2010 Action
Plan.
Recommendation:
City Staff recommends that the CDA approve the City’s participation in this program and
forward Resolution #2010-708, authorizing the City to enter into an Agreement with the
State of Wisconsin Division of Public Health for the Lead Hazard Reduction
Demonstration Grant Program, to the City Council with a positive recommendation.
Attachments: Lead Hazard Reduction Demonstration Program – Work Plan
Resolution #2010-708
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