2007-428
RESOLUTION NO. 2007-428
RESOLUTION APPROVING THE FY2008 ACTION PLAN FOR THE COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM
AND ROCK COUNTY HOME CONSORTIUM SUBMISSION
WHEREAS, the City of Janesville is an entitlement community under the
Community Development Block Grant Program and is the lead agency for the Rock
County Consortium under the HOME Investment Partnership (HOME) Program, both of
which are administered by the U. S. Department of Housing and Urban Development;
and
WHEREAS, approximately $550,000 in entitlement Community Development
Block Grant (CDBG) Program funds is expected to be allocated in 2008 to the City of
Janesville for community development activities; $8,494 of unallocated 2007 CDBG
funds have been received, and approximately $185,000 is expected to be received in
revolving loan fund repayments for a total of $743,494 in new CDBG funds and
includes the use of $335,000 in prior years funds for a total CDBG budget of
$1,078,494; and
WHEREAS, over $350,000 in entitlement funds are available in the downtown
blight elimination program that are not currently needed for that program and an
opportunity has been identified to use $95,000 for residential blight elimination; and
WHEREAS, $205,000 is expected to be allocated as the City of Janesville's
share of the FY2008 HOME Consortium funds and $98,035 is expected to be received
in HOME program income for a total of $303,035 in new HOME funds, and $16,030 is
expected to be used from prior HOME funds for a total proposed HOME budget of
$319,065; and
WHEREAS, the Community Development Authority (CDA) has held the required
.; public hearing,{ and evaluated the citizen comments concerning potential activities for
"'i the City of Janesville's FY2008 Community Development Block Grant and HOME
Program submissions and thereafter considered the various alternative allocations for
activities; and
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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
Resolution No. 2007-428
Page 2
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 FY2008 HOME FUNDS
($205,000 available in new funds)
FY2008 Prior Year Prog. Inc. Total
Affordable Housing Development $ 94,500 0 0 $ 94,500
Home Ownership/Rental Rehab 91,965 0 98,035 190,000
Administration 18.535 16.030 ~ 34.565
Total $205,000 $16,030 $98,035 $319,065
PROPOSED STATEMENT OF OBJECTIVES FY2008 CDBG PROGRAM
1. Housino Rehabilitation - To rehabilitate owner-occupied and investor-owned
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 to
support Homeownership Program activities; to provide loans and/or grants for
acquisition of property by non-profit agencies for rehabilitation and sale to low
/moderate income occupants; 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. Using these
funds, the City may also acquire, rehabilitate and resell housing to low and
moderate income families. Funds are also provided for encouraging the
reduction in density of multi-family units in the central city area in connection with
the rehabilitation work, 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. Also uses prior years' funds and program income.
2. Residential Blioht Elimination - To fund the acquisition and demolition of blighted
properties in residential areas primarily in the Central City Area. Also funds the
acquisition of residential property not feasible for rehabilitation, demolition, and
making the site available for an appropriate re-use such as parking, tot lot, new
housing construction, or other public purpose as approved by the City Council.
Also uses prior years' funds and program income.
3. Neiohborhood Activities - To fund a variety of programs aimed at reconnecting
families in low-moderate income residential areas with their neighborhoods and
the community as a whole. Activities to be funded in 2008 include Summer
Resolution No. 2007-428
Page 3
Camp Scholarships and neighborhood block grants. Also uses prior years
funds.
4. Downtown Activities - To provide funds for a variety of blight elimination activities
in the Central Business District including repair of public facilities such as the
river walkway, rehabilitation including design work of downtown buildings,
downtown planning and management, construction or reconstruction of parks
and parking facilities, and acquisition, relocation, and demolition of blighted
properties in Census Tract 1. Property acquired and cleared of blight to be used
for activities such as parks and open space, parking, redevelopment, or as
authorized by the City Council. Also uses prior years' funds and program
income.
5. Optional Activities - To provide funds for activities which indirectly support the
housing and downtown mission of the department. Activities proposed for
funding in 2008 include the following: ECHO Emergency Rent Assistance
Program, Healthnet, Janesville Literacy Council, Boys and Girls Club-Lincoln
School Program, and acquisition of property for the 12 & 12 Drop-In Center.
6. Local Homeownership ProQram - 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. Also uses
prior years' funds and program income.
7. Administration and PlanninQ - To provide overhead and administrative support
necessary to carry out the Community Development Block Grant Program
including compliance with program regulations and planning for downtown and
central city revitalization, and to provide funds to support Historic Commission
activities such as memberships, subscriptions, and resource materials. Also
uses prior years' funds.
PROPOSED BUDGET - FY2008 CDBG PROGRAM
Funding Sources
2008 Prog. Inc.l Prior
Grant Rev. Loan Years Total
Administration
General Administration $146,257 $0 $0 $146,257
Rehab. Services Delivery 185.216 Q Q 185.216
Administration Subtotal 331,473 0 0 331,473
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Resolution No. 2007-428
Page 4
Program Services
Neighborhood Activities
Neighborhood Block Grant 25,000 0 0 25,000
Residential Blight Elimination 0 0 10,000 10,000
Neighborhood Livability 8.000 Q Q 8.000
Neighborhood Subtotal 33,000 0 10,000 $43,000
Downtown Activities
Downtown Projects 40,000 0 0 40,000
Downtown Coordinator 0 0 0 0
Revitalization Projects 26.277 Q 8,494 34 .771
Downtown Subtotal 66,277 0 8,494 74,771
Housing Activities
Emerg.Rent Assist. (ECHO) 23,000 0 0 23,000
Buy/Rehab/Sell Project 0 0 0 0
Housing Rehabilitation 0 150,000 310,000 460,000
Rental Rehabilitation 0 35,000 0 35,000
Home Ownership Q Q 15.000 15.000
Housing Subtotal 23,000 185,000 325,000 533,000
Historic Preservation 750 0 0 750
Optional Activities
Healthnet 50,000 0 0 50,000
12 & 12 Drop-In Center 41,500 0 0 41 ,500
Janesville Literacy Council 2,000 0 0 2,000
Boys & Girls Club (Lincoln) 2.000 Q Q 2.000
Optional Subtotal 95,500 0 0 95,500
Unallocated ~ Q ~ Q
Grand Total $550.000 $185.000 $343.494 $1.078.494
PROPOSED REALLOCATION OF PRIOR YEARS' FUNDS
Program Original New
Year Activity Amount Amount Change
2005 Downtown Blight Elimination 200,000 105,000 -95,000
2007 Residential Blight Elimination 0 95,000 +95,000
2007 Unallocated 8,494 0 -8,494
2007 Downtown Blight Elimination 58,422 66,916 +8.494
Total Change 0
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Resolution No. 2007-428
Page 5
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WHEREAS, the Common Council finds that it is in the community's best interest
to fulfill the requirements to secure the FY2008 CDBG and HOME funds for the eligible
activities in the City of Janesville;
NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of
Janesville, that it authorized and directs the City Manager to submit the Consolidated
Plan Action Plan including the above statement of objectives and budget~ ?\J
reElSFAFA9Rd~d, including assurances contained therein and to provide any other
information requested by HUD;
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. The City Manager is also hereby authorized to revise the FY2008 budget
. 'document to reflect the receipt of the FY2008 Community Development Block Grant
. Program and HOME program funds and the expenditures as reflected in this resolution.
ADOPTED: November 26. 2007 Motion by: Steeber
Second by: Williams
APPROVED: Council member Aye Nay Pass Absent
fl:Z -//4-1 Brunner X
DeGarmo X
-Steven E. Shelffer, City Manager Loasching X
Steeber X
Truman X
Wellnitz X
Williams X
APPROVED AS TO FORM:
City AltOr;:/{ ,(7y1
Proposed by: Community Development Authority
Prepared by: Community Development Planner