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#3 Authorize filing for a lead hazard control grant (File Res. #2011-809) NEIGHBORHOOD SERVICES MEMORANDUM May 13, 2011 TO: City Council FROM: Jennifer Petruzzello, Neighborhood Services Director SUBJECT: Action on a proposed resolution authorizing the filing of an application, in cooperation with the County of Rock, with the U.S. Department of Housing and Urban Development for a Lead Hazard Control Grant. (File Resolution #2011-809) Summary: In April of 2009, Rock County was awarded a lead hazard control grant of $1.1 million. The City of Janesville is currently partnering with Rock County and the City of Beloit on this grant. While this grant was originally estimated to fund lead hazard projects over a three-year period, Janesville will complete its projects by September of 2011. Rock County has approached both the City of Janesville and the City of Beloit about our interest in submitting an application for additional grant funding under the U.S. Department of Housing and Urban Development, Office of Healthy Homes and Lead Hazard Control. If funding were awarded, it would be divided in equal amounts between the three (3) agencies. If fully funded, the City would receive approximately $500,000 over 3 years to assist 30 dwelling units to become lead safe. As part of the application, each agency must commit to a minimum amount of local match. Community Development Block Grant (CDBG) revolving loan, CDBG entitlement funds, Neighborhood Stabilization Funds, and the value of staff project coordination time can be used as our portion of the match. 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. Department Recommendation The Neighborhood Services Department recommends that the City Council approve File Resolution #2011-809 authorizing the filing of an application, in cooperation with the County of Rock, with the U.S. Department of Housing and Urban Development for a Lead Hazard Control Grant. City Manager Recommendation The City Manager concurs with the Neighborhood Services Department recommendation. 1 Suggested Motion I move to approve File Resolution #2011-809 authoring the filing of an application, in cooperation with the County of Rock, with the U.S. Department of Housing and Urban Development for a Lead Hazard Control Grant. Request Rock County has requested that the City of Janesville consider joining them in submitting a grant application for funding from the Lead-Based Paint Hazard Control Program. The City of Janesville would be a subgrantee of this application, meaning that Rock County would serve as the lead agency. Background/Analysis: Lead-based paint is a significant problem in the United States and resulted in the banning of lead from paint in the early 1970’s. By 1978, the supply of lead-based paint had been exhausted and housing built after that date is considered to be lead-safe. In the United States alone, nearly 1 million children under the age of six (6) have lead levels in their blood high enough to impair their ability to think, concentrate and learn. Lead can damage a child’s kidneys and central nervous system, and cause anemia, coma, convulsions and even death. In the City of Janesville there are approximately 15,000 housing units constructed prior to 1978. In our housing rehabilitation programs, the City is required to identify the lead hazards in a dwelling unit and take appropriate measures to mitigate the risks of lead exposure. Unfortunately, the additional requirements and costs associated with addressing the lead-based paint issue may make participating in the City’s housing rehabilitation programs less attractive to low to moderate income property owners. The City has successfully partnered with Rock County on two previous Lead-Based Paint Hazard Control Grant Programs. The first two grants were awarded by HUD in 2006 and 2009 and resulted in a total of 2.2 million being allocated to Rock County, the City of Beloit and the City of Janesville. In addition to the Lead Hazard Control Grants, the City of Janesville has some additional history of partnering with Rock County and the City of Beloit to receive federal grant funds. Most notable of these is the Rock County HOME Consortium, which was formed for the purposes of receiving HOME Investment Partnership Program funds on an annual basis. This Consortium has allowed the cities of Janesville and Beloit, as well as Rock County to receive a consistent source of funds to support our housing programs as opposed to competing against each other for HOME funds awarded by the State of Wisconsin. If this grant application is funded by the U.S. Department of Housing and Urban Development (HUD), funding would be available to the cities of Beloit and Janesville, as well as Rock County to reduce the hazards of lead-based paint. The grant award would be divided equally between the parties making 1/3 of the grant funds available to the City of Janesville. If fully funded, the City would receive approximately $500,000 over 3 years to assist 30 dwelling units to become lead safe. 2 As part of the application, each agency must commit to a 15% local match. Community Development Block Grant (CDBG) revolving loan, CDBG entitlement funds, Neighborhood Stabilization Funds, and the value of staff project coordination time can be used as our portion of the match. It is anticipated that 10% of the match will be passed along to property owners through deferred loans, installment loans, and cash contributions. The remaining 5% match is anticipated to be met through the value of staff project coordination. The timeframe for the expenditure of these grant funds is three (3) years. This program would be available to both owner-occupied as well as rental properties. However, in order to be eligible the housing unit must be occupied by low-moderate income family. Priority will be given to households with a child under the age of six (6) with elevated blood lead levels. Staff expects to work closely with the Rock County Health Department in identifying properties containing a child with an elevated blood level of lead. In order to encourage participation, grant funds from the Lead-Based Hazard Control Grant Program will be structured as a deferred payment forgivable loan. 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, which will enable us to stretch our CDBG and HOME rehabilitation dollars further. Housing staff is experienced in working to reduce lead hazards, and this program would be administered in a similar manner as our current grant. Addressing lead hazards is consistent with the Consolidated Plan and the 2011 Action Plan, which outline actions to be taken to evaluate and reduce lead-based paint hazards and integrate these actions into housing policies and programs. The Community Development Authority reviewed this item at their May 11, 2011 meeting and unanimously voted to forward a positive recommendation to the City Council in support of filling an application in cooperation with the County of Rock. Attachments: Resolution #2011-809 cc: Eric Levitt, City Manager Jay Winzenz, Assistant City Manager/Director of Administrative Services 3 RESOLUTION NO. 2011-809 A RESOLUTION AUTHORIZING THE FILING OF AN APPLICATION IN COOPERATION WITH THE COUNTY OF ROCK WITH THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR A LEAD HAZARD CONTROL GRANT WHEREAS , the County of Rock has proposed to apply for a Lead Hazard Control Grant from the U. S. Department of Housing and Urban Development in the amount of $1,500,000; and WHEREAS, housing built 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 Control Grant funds would supplement existing funding for housing rehabilitation activities; and WHEREAS, Rock County proposes that the City of Janesville enter into a cooperative agreement including the division of labor and funds approximately one-third City of Janesville, one-third City of Beloit, and one-third Rock County; and WHEREAS, a minimum of a 15% match of local funds is required for the grant and Community Development Block Grant rehabilitation program funds are available and may be used to meet the match requirement; and WHEREAS , the Common Council of the City of Janesville finds it is in the best interest of the community to facilitate these preservation activities. NOW, THEREFORE BE IT RESOLVED by the Common Council of the City of Janesville that it authorizes and directs the City Manager to participate in a cooperative agreement for an application to the U. S. Department of Housing and Urban Development, including all certifications and that the City Manager is authorized to act in connection with the application and to provide such additional information as may be required and to administer the program in accordance with all applicable State and Federal regulations. BE IT FURTHER RESOLVED, that Community Development Block Grant Program Revolving Loan funds are hereby committed to meet the minimum match requirement of 10% of the City’s share of the Lead Hazard Control Grant funding. BE IT FURTHER RESOLVED, that the City Manager, and his designees, are hereby authorized to negotiate, draft, prepare, execute, file and modify such other documents, papers and agreements ancillary and/or pertaining thereto and, from time to time, to take and/or make whatever other minor actions and/or minor modifications to the above described agreements as the City Manager and/or his designee may deem necessary and/or desirable to effectuate the purposes of such agreements and the intent of this resolution. ADOPTED: Motion by: Second by: APPROVED: CouncilmemberAyeNayPassAbsent Brunner Dongarra-Adams Eric J. Levitt, City Manager Liebert McDonald ATTEST: Rashkin Steeber Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: Wald Klimczyk, City Attorney Proposed by: Community Development Authority Prepared by: Neighborhood Services Director