2011-847 RESOLUTION NO. 2011 -847
RESOLUTION APPROVING THE 2012 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 $495,013 in Community
Development Block Grant (CDBG) funds and $994,948 in Neighborhood Stabilization funds
will be available in 2012, including new grant awards, program income and the use of prior
year's grants; and
WHEREAS, The City of Janesville is anticipating that $287,314 in HOME funding
will be available tin 2012, 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 2012 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, 2012 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 2012 objectives; the outcome is listed
following each item:
Resolution No. 2011 -847
Page 2
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 FY2012 HOME FUNDS
FY2012 Prior Year Prog. Inc. Total
Recently Purchased Rehab $ 39,000 $50,000 $ 89,000
Home Ownership $ 70,000 0 $ 70,000
Rental Rehabilitation $ 55,000 $45,000 $100,000
Administration $ 25,000 $ 3,314 0 $ 28,314
Total $189,000 $ 3,314 $95,000 $287,314
The following are proposed CDBG- funded FY 2012 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; and to 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, 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. Rehabilitation Service Delivery — To provide staff support necessary to carry out
housing activities identified above.
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3. 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.
4. 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.
5. 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.
6. Public Service Activities - To provide funds for activities which indirectly support the
mission of the Community Development Authority. Activities to be funded in 2012
include the following: ECHO (emergency rent assistance), HealthNet (primary
medical care), and the Literacy Connection (adult literacy education).
7. Administration and Planning - To provide administrative support necessary to carry
out the CDBG Program, including compliance with program regulations and
planning for the housing and community development needs in Janesville. Includes
the CDBG Program, HOME Program, Neighborhood Development, Neighborhood
Stabilization Program and Neighborhood Stabilization 3 Program.
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PROPOSED BUDGET — 2012 CDBG PROGRAM
Funding Sources
2012 Prior Program
Grant Year Income Total Benefit*
Program Services
Housing Activities 39,400 10,000 70,000 119,400 LMI
Rehab. Service Delivery 129,969 0 0 129,969 LMI
Home Ownership 28,600 0 0 28,600 LMI
Neighborhood Activities 30,172 0 0 30,172 LMA
Neighborhood Stabilization 450,000 160,000 340,000 950,000 LMI
Public Service Activities
ECHO 34,000 0 0 34,000 LMI
HealthNet 34,000 0 0 34,000 LMI
Literacy Connection 7,000 0 0 7,000 LMI
Administration& Planning
Administration $154,864 $0 $0 $154,864 NA
Grand Total $908,005_170.000 $410.000 $1.488.005
*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.
WHEREAS, the CDA further recommends to the Common Council that it authorize
and direct the City Manager to execute the FY2012 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 FY2012 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 authorizes and directs the City Manager to submit the 2012 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 No. 2011 -847
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resolution. The City Manager is also hereby authorized to revise the FY2012 budget
document to reflect the receipt of the FY2012 Community Development Block Grant
Program and HOME program funds and the expenditures as reflected in this resolution.
ADOPTED: October 24, 2011 Motion by: Steeber
Second by: Liebert
APPROVED: r" Councilmember Aye Nay Pass Absent
� Brunner X
X
F.--- ��/ Dongarra -Adams
Eric 'Etc , 1 anager Liebert X
McDonald X
ATTES : Rashkin X
d ir Steeber X
�Lii L � r Voskuil X
Je• Ann Wulf, City Clerk -Treas r -r
APPROVEn AS TO FnRm
el.al,=,(W . _
Wald Klimczyk, City Attorney -
Proposed by Community Development Authority _ _ . - ;
Prepared by Neighborhood Services Director ` -_, ..' _ "