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#4a Attachment PH Notice Budget WEDNESDAY, SEPTEMBER 15, 2010 5:30 P. M. COUNCIL CHAMBERS, FOURTH FLOOR MUNICIPAL BUILDING 18 N. JACKSON STREET, JANESVILLE, WI The Community Development Authority will hold a public hearing on Wednesday, September 15, 2010 at 5:30 P.M. in the City Council Chambers of the Municipal Building concerning the use of Community Development Block Grant Program, HOME Program funds, and other State and Federal Grant funds. The City of Janesville is anticipating that $762,000 in Community Development Block Grant (CDBG) funds and $678,000 in Neighborhood Stabilization Funding will be available in FY 2011. The City of Janesville is anticipating $440,000 in HOME funding to be available in FY2011. In addition, the City of Janesville is anticipating $158,400 in other State and Federal Grants to be available in FY 2011. These amounts include new grant awards, program income, and the use of prior year’s grants. HOME Investment Partnership Program (HOME) HOME funds are to be used to provide affordable housing including assistance for new construction of housing to be occupied by income eligible households, down payment and closing cost assistance, and owner- and renter-occupied rehabilitation loans. Down payment assistance loans will include a provision for recapture of the funds during the period of affordability. Rental rehabilitation loans will include a requirement to rent to income-eligible households at affordable rents during the period of affordability. The home ownership and rehabilitation programs will use program income first before drawing on new HOME funds. PROPOSED ALLOCATION of FY2011 HOME FUNDS ($305,000 available in new funds) FY2011 Prior Year Prog. Inc. Total Recently Purchased Rehab $ 55,000 $135,000 $50,000 $240,000 Home Ownership 125,000 0 $125,000 Rental Rehabilitation $ 35,000 $40,000 $ 75,000 Administration 0 _ _____0 0 Total $215,000 $135,000 $90,000 $440,000 PROPOSED STATEMENT OF OBJECTIVES FY2011 CDBG PROGRAM 1. Housing Activities - To rehabilitate owner-occupied and rental housing occupied by low and moderate income households primarily in the Central City Area through the use of deferred payment and low interest installment loans and partially forgivable loans. Funds may also be used: for acquisition, demolition, and provision of a vacant lot for new housing construction by non-profit agencies for sale to low/moderate income families; or for acquisition and/or rehabilitation of property by a non-profit for transitional housing or other housing programs; to acquire, rehabilitate and resell housing to low and moderate income families; and to provide emergency rent assistance. Funds are also provided for encouraging the reduction in density of multi-family units in the central city area, for the provision of information and training on the hazards of lead-based paint and other housing rehabilitation-related hazards and abatement of such hazards. 2. Neighborhood Stabilization – To acquire, rehabilitate and resell to low-middle income families or to demolish blighted structures that have been foreclosed upon to support homeownership and stability within neighborhoods most impacted by the foreclosure crisis. 3. Local Homeownership Program - To provide funds for the City Homeownership Program including Down Payment and Closing Cost forgivable loans, Duplex As a Starter Home Program loans, fix-up loans, "recently purchased" Home Improvement Program loans, and other homeownership programs. 4. Neighborhood Activities – To fund a pro-active property maintenance enforcement program and support a variety of programs aimed at reconnecting families in low- moderate income residential areas with their neighborhoods and the community as a whole. Includes financial support for the Neighborhood Action Team. 5. Downtown Activities - To provide funds for a variety of blight elimination activities in the Central Business District including support for a matching grant redevelopment project facilitated by the Downtown Development Alliance. 8. Optional Activities - To provide funds for activities which indirectly support the mission of the Community Development Authority. Activities to be funded in 2011 include the following: Boys and Girls Club, HealthNet, the Literacy Connection, and a Youth Summer Camp Scholarship Program. 9. Administration and Planning - To provide overhead and administrative support necessary to carry out the CDBG Program, including compliance with program regulations and planning for central city and downtown revitalization, and to provide funds to support Historic Commission activities. PROPOSED BUDGET – FY2011 CDBG PROGRAM Funding Sources 2011 Prior Program Grant Year Income Total Benefit* Administration& Planning General Administration $136,041 $0 $0 $136,041 NA Neighborhood Development 45,155 0 0 45,155 NA Rehab. Services Delivery 191,852 0 0 191,852 LMI Administration Subtotal 373,048 0 0 373,048 Program Services Downtown Activities 18,000 12,000 0 30,000 S/B Historic Preservation 1,000 0 0 1,000 NA Home Ownership 54,300 0 0 54,300 LMI Housing Activities 103,904 0 165,000 268,904 LMI Neighborhood Activities 39,498 0 0 39,498 LMI & LMA Neighborhood Stabilization 0 118,000 500,000 618,000 LMI & S/B Other Optional Activities Boys and Girl’s Club 4,000 0 0 4,000 LMI HealthNet 44,250 0 0 44,250 LMI Literacy Connection 4,000 0 0 4,000 LMI Summer Camp Scholars 3,000 0 0 3,000 LMI Grand Total $645,000 130,000 $665,000 $1,440,000 *LMI means the project benefits low and moderate income persons whose household income is 80% or less of Rock County median income. LMA means the project benefits a low to moderate income area. S/B means the project is a slum and blight elimination project. It is the intent of the City of Janesville not to cause displacement of persons as a result of CDBG funded activities. However, in the event that displacement does occur, a plan for assistance has been developed and is available upon request. Comments, questions, or suggestions may be directed to the Neighborhood Services Department, 18 North Jackson Street, P.O. Box 5005, Janesville, WI 53547-5005 or by calling (608) 755- 3065. Richard Ellingson, Chairperson Janesville CDA Date Published: 9/8/10