2010-735 RESOLUTION NO. 2010 -735
RESOLUTION APPROVING THE 2011 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, The City of Janesville is anticipating that $762,000 in Community
Development Block Grant (CDBG) funds and $678,000 in Neighborhood Stabilization funds
will be available in 2011, including new grant awards, program income and the use of prior
year's grants; and
WHEREAS, The City of Janesville is anticipating that $440,000 in HOME funding
will be available tin 2011, including new grant awards, program income and the use of prior
year's grants; and
WHEREAS, the Community Development Authority (CDA) has held the required
public hearing and evaluated the citizen comments concerning potential activities for the
City of Janesville's 2011 Annual Action Plan for the Community Development Block Grant
and HOME Program submissions and thereafter considered the various alternative
allocations for activities; and
WHEREAS, the Community Development Authority has recommended to the
Common Council that it approve the following Final Statement of Objectives and Budget to
be included in the City of Janesville Consolidated Plan, 2011 Action Plan:
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.
The following are proposed HOME - funded FY 2011 objectives; the outcome is listed
following each item:
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Janesville
• Provide funds for down payment and closing cost assistance loans to first -time
homebuyers (Affordability)
• Provide funds for rehabilitation of owner - occupied units (Affordability)
• Provide funds for rehabilitation of renter - occupied units (Availability /Accessibility)
Rock County Consortium
• Provide funds for down payment and closing cost/mortgage assistance and related
rehabilitation as needed (Affordability)
• Provide funds for rehabilitation of owner - occupied units (Affordability)
• Potential uses also include assistance for new housing development, acquisition or
conversion of properties for new housing development, and demolition of blighted
structures related to new housing development (Availability /Accessibility)
• Provide funds for the development of new rental units. (Availability /Accessibility)
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
The following are proposed CDBG- funded FY 2011 objectives for the City of Janesville:
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.
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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.
6. 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.
7. 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.
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PROPOSED BUDGET - FY2011 CDBG PROGRAM
Funding Sources
2011 Prior Program
Grant Year Income Total Benefit*
Administration& Planning
General Administration $133,181 $0 $0 $133,181 NA
Neighborhood Development 45,155 0 0 45,155 NA
Rehab. Services Delivery 191,852 0 0 191,852 LMI
Administration Subtotal 370,188 0 0 370,188
Program Services
Downtown Activities 18,000 12,000 0 30,000 S/B
Historic Preservation 1,000 0 0 1,000 NA
Home Ownership 99,300 0 0 99,300 LMI
Housing Activities 68,014 0 165,000 233,014 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 38,000 0 0 38,000 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.
WHEREAS, the CDA further recommends to the Common Council that it authorize
and direct the City Manager to execute the FY2011 Action Plan for the CDBG and HOME
programs, including the various certifications for these funds; and
WHEREAS, the Common Council finds that it is in the community's best interest to
fulfill the requirements to secure the FY2011 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
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Janesville, that it authorizes and directs the City Manager to submit the 2011 Annual Action
Plan including the above statement of objectives and budget as recommended, 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 FY2011 budget
document to reflect the receipt of the FY2011 Community Development Block Grant
Program and HOME program funds and the expenditures as reflected in this resolution.
ADOPTED: November 8, 2010 Motion by: McDonald
Second by: Brunner
APPROVED. Councilmember Aye Nay Pass Absent
'/ i Brunner X
/ McDonald X
c J. t, Cty Manager Perrotto X
Rashkin X
ATT T: Steeber
X
Truman X
Je. Ann Wulf, City Clerk- Treasurer Voskuil X
APPROVED AS TO FORM:
‘(14.4(W -
City Attorney, City Attorney
Proposed by: Community Development Authority
Prepared by Neighborhood Services Director _