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Full Agenda AGENDA JANESVILLE COMMUNITY DEVELOPMENT AUTHORITY, REGULAR MEETING WEDNESDAY, MAY 19, 2010, 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 April 21, 2010. “C” 3.Questions and Comments from the Public on Matters Not on the Agenda. 4.Action on a Recommendation to the City Council regarding the City’s participation in the Wisconsin HUD Lead Hazard Reduction Demonstration Program. 5.Review and Action on the Consolidated Plan 2011 Action Plan (Community Development Block Grant and HOME Programs) Timetable, Application, and Citizen Participation Process. 6.Neighborhood Services Director’s Report. a.Section 8 Management Assessment Program ndth b.CDA Project Tour: Set Date – June 2 or June 9 c.Next Meeting: Election of Chair and Vice-Chair 7.Matters Not on the Agenda. 8.Consideration of a Motion to Convene in Closed Session Pursuant to Wisconsin State Statute Section 19.85 (1)(f) and 19.85 (1)(e) considering the Financial, Medical, Social and/or Personal History of the HIP Program Clients which information must be kept confidential under applicable Federal Regulations including, but not limited to, the Federal Privacy Act of 1974, 5 U.S.C. 552, etc. seq., as from time to time amended, and which, if discussed in public, would be likely to have a substantial adverse affect upon the reputation of the participants or applicants referred to in such application, Histories, Financial Data, and/or Related Personal Information Protected by Federal and Common Law, and deliberating or negotiating the purchasing of public properties, the investing of public funds or conducting other specified public business, whenever competitive or bargaining reasons require an closed session. Also, pursuant to Wisconsin State Statute Section 19.85 (1)(e) deliberating or negotiating the purchasing of public properties, the investing of public funds or conducting other specified public business, whenever competitive or bargaining reasons require an closed session; also, (A) Appearances by Home Improvement Clients Delinquent in the Repayment of Their Home Improvement Program Payments (B) Specifically considering the potential sale price for property under the City’s Buy Rehab Resell Program. “C” Indicates an item that the Community Development Authority will take up under Consent NEXT MEETING REGULAR MEETING WEDNESDAY, JUNE 16, 2010 5:30 P.M. COUNCIL CHAMBERS Minutes of the Janesville Community Development Authority (CDA) Regular Meeting April 21, 2010 Present: CDA Members: Duke Ellingson, George Fenn, Heidi Holden, Russ Steeber Michael Bachmeyer, and Sylvia Moore Absent: CDA Member(s): Tom McDonald Also present: City Staff: Jennifer Petruzzello, Carrie Clark Others: Dale & Trudy Hicks, Ann Courtney, Peter Apted, Danielle Moore. The meeting was called to order by Chairperson Bachmeyer at 5:30 p.m. The minutes of the March 17, 2010 regular meeting were approved by consent. There were no questions or comments from the public regarding matters not on the agenda. Petruzzello introduced the revisions to the Section 8 Rent Assistance Program Administrative Plan. Chairperson Bachmeyer opened the Public Hearing regarding the Section 8 Rent Assistance Administrative Plan revisions at 6 p.m. Dale Hicks spoke about concerns he had with the proposed minimum rent increasing and potential hardship to tenants. Ann Courtney expressed concern that tenants are not notified of their right to appeal decisions regarding their rent portion increases. She asked that it be made clear to landlords and tenants that they have an appeal right. Danielle Moore spoke about the proposed occupancy standards and expressed concern over the fairness to young children who may have to share sleeping space with an older child or adult. The public hearing was closed at 6:20 p.m. After discussion of the proposed changes, Steeber motioned, seconded by Ellingson to approve the proposed revisions with the exception of the minimum rent amount. He proposed an increase to $30 per month or a $5 increase, effective July 1, 2010, and requests that staff evaluate the current number of people affected by the change over the next month, reporting results to CDA in June and review the increase in one year. The motion passed unanimously. Clark presented the First Quarter Collections and Fair Housing reports. Under the Neighborhood Services Director’s Report, Jennifer Petruzzello provided an update of the Neighborhood Stabilization Program. Petruzzello also inquired if the CDA would be interested in a CDA project tour to review some of the work recently funded and in progress. There was discussion regarding either a May or June tour. Petruzzello also distributed information on a Poverty Simulation and invited CDA members to participate. Petruzzello indicated that after much thought, consideration and discussion with staff that the Section 8 waiting list would be closing effective May 1, 2010. She indicated that due to existing funding levels, it would not be feasible to offer assistance to those on the current waiting list until at least 2011. There were no matters to discuss not on the agenda. There being no further discussion, the meeting was adjourned at approximately 6:52 p.m. These minutes are not official until approved by the CDA. Respectfully submitted, Carrie Clark, Housing Financial & Rehabilitation Specialist 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. 1 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 2 RESOLUTION NO. 2010-708 RESOLUTION AUTHORIZING AN AGREEMENT WITH THE STATE OF WISCONSIN DIVISION OF PUBLIC HEALTH FOR A LEAD HAZARD REDUCTION DEMONSTRATION GRANT PROGRAM WHEREAS , in 2009, the State of Wisconsin applied for and received grant funding under the U.S. Department of Housing and Urban Development Lead Hazard Reduction Demonstration Grant Program to identify, evaluate and reduce lead-based paint hazards in housing occupied by low to moderate income families throughout Rock and Dane Counties; and WHEREAS, through participation in this grant program, the City of Janesville will be able to assist in identifying and controlling lead-based paint hazards in eligible privately owned rental and owner-occupied housing units; and WHEREAS, housing build before 1978 is likely to have some level of lead paint hazards and the City of Janesville has over 15,000 housing units built prior to 1978; and WHEREAS , lead hazard control work is required for all of the housing rehabilitation programs offered by the City of Janesville and the receipt of Lead Hazard Reduction Demonstration grant funds would supplement existing funding for housing rehabilitation activities; and WHEREAS, the State of Wisconsin is proposing an initial contract with the City of Janesville for the reduction of lead hazards in 9 dwelling units at an amount not to exceed $101,250; and WHEREAS, a minimum of 30% match of local funds is required for the grant and the Community Development Block Grant rehabilitation program funds are available and may be used to meet the match requirement; and WHEREAS , programs to reduce lead hazards are consistent with the City of Janesville 2010- 2014 Consolidated Plan and 2010 Action Plan, and specifically goals to improve the existing housing stock and promote decent affordable housing; and WHEREAS, the Common Council of the City of Janesville finds it is in the best interest of the community to participate in the Lead Hazard Reduction Demonstration Grant Program. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Janesville that it authorizes and directs the City Manager to enter into a contract with the State of Wisconsin Division of Public Health to participate in the Lead Hazard Reduction Demonstration Program; and BE IT FURTHER RESOLVED , that the Community Development Block Grant Program Revolving Loan funds are hereby committed to meet the minimum match requirement of 30% of the City’s share of the Lead Hazard Reduction Demonstration Grant funding; and BE IT FURTHER RESOLVED , that the City Manager and/or his designee(s), on behalf of the City of Janesville, is/are hereby authorized and empowered to negotiate, draft, modify, review, execute, and enter into additional agreements, record, file, and/or make minor modifications and/or amendments to any and all documents, papers, forms, and agreements, and to take whatever other actions as the City Manager may determine, from time to time and at any time, necessary and/or desirable to effectuate the intent of this resolution and/or the public good. 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: Wald Klimczyk, City Attorney Proposed by: Neighborhood Services Department Prepared by: Neighborhood Services Director NEIGHBORHOOD SERVICES MEMORANDUM May 6, 2010 TO: Community Development Authority FROM: Jennifer Petruzzello, Neighborhood Services Director SUBJECT: Agenda Item 5: Review and Action on Consolidated Plan 2011 Action Plan (Community Development Block Grant and HOME Programs) Timetable and Citizen Participation Process. The City of Janesville receives Community Development Block Grant (CDBG) funds on an individual entitlement basis and Home Investment Partnership (HOME) funds as part of the Rock County Consortium on an entitlement basis. This means that we do not have to compete for the funds, but are awarded them on a formula basis. As an entitlement, certain planning and reporting requirements must be met. Every five years a Consolidated Plan is developed, followed by annual “Action Plans” based on the five-year plan. Last year the 2010-2014 Consolidated Plan was developed. The Action Plan submitted for 2011 will be based on this five year plan. The five-year Consolidated Plan outlines the general housing and community development needs and strategies to fill those needs. The annual Action Plan indicates how CDBG and HOME funds are to be expended during the specific fiscal year. There are specific citizen participation requirements for the preparation of the Consolidated Plan Action Plan. These include holding at least one public hearing during the development of the plan, publishing the plan (or a summary of it) and allowing a 30 day review period for comments before the plan is submitted to HUD. The proposed time frame includes a public hearing, the CDA setting of priorities (particularly for funding public service activities), the acceptance and review of applications for public service activities, and the allocation of CDBG and HOME funds for the upcoming budget year. The process is designed to meet the requirements of the regulations as well as fit in with the City's budget development schedule. 1 June 16, 2010 CDA holds an initial public hearing on community development needs and on the general operation of the CDBG and HOME Programs. The CDA will set priorities for funding public service activities. July – Aug 2010 Preparation of the draft 2011 budget. August 2, 2010 Non-profit applications due for requests for funding. August 18, 2010 CDA hears presentations by non-profits regarding their requests. August 25, 2010 or September 1, 2010 Special meeting at which CDA determines community development priorities and makes a preliminary allocation of the 2011 Community Development Block Grant Program and HOME Program funds. Sept. 15, 2010 CDA holds a public hearing on the proposed allocation of the 2011 CDBG and HOME funds and Consolidated Plan 2011 Action Plan and makes a recommendation to the City Council. Sept. 20, 2010 Consolidated Plan Summary published for comment; beginning of 30 day review period. October 20, 2010 CDA holds public hearing on Consolidated Plan and makes recommendation to City Council. November 2010 City Council acts on proposed budget and allocation of CDBG and HOME funds. The Authority is asked to review, revise if necessary, and approve this schedule. Once approved, staff will provide information as needed to the public about the process for the 2011 Community Development Block Grant and HOME programs application. 2