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2012-949 RESOLUTION NO. 2012 -949 RESOLUTION APPROVING THE 2013 ACTION PLAN FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM AND ROCK COUNTY HOME CONSORTIUM SUBMISSION WHEREAS, the City of Janesville is a formula grantee 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 $593,955 in Community Development Block Grant (CDBG) funds, $1,018,083 in Neighborhood Stabilization funds, and $602,000 in Community Development Block Grant — Emergency Assistance Program (CDBG -EAP) funds will be available in 2013, including new grant awards, program income and the use of prior year's grants; and WHEREAS, The City of Janesville is anticipating that $467,298 in HOME funding and $92,800 in other State and Federal Grants will be available tin 2013, 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 2013 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, 2013 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 2013 objectives; the outcome is listed following each item: Resolution No. 2012 -949 Page 2 City of Janesville • Provide funds for rehabilitation of owner - occupied units (Affordability) • Provide funds for rehabilitation of renter - occupied units (Availability /Accessibility) • Provide funds for down payment and closing cost assistance loans to first -time homebuyers (Affordability) Balance of Rock County Consortium • Provide funds for rehabilitation of owner - occupied units (Affordability) • Provide funds for the purchase /rehabilitation /resale of owner - occupied units (Affordability) • Provide funds for the purchase and rehabilitation of rental units. (Availability /Accessibility) • Provide funds for down payment and closing cost/mortgage assistance and related rehabilitation as needed (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) PROPOSED ALLOCATION of FY2013 HOME FUNDS (Janesville) FY2013 Prior Year Prog. Inc. Total Owner Rehabilitation $ 64,000 $50,000 $114,000 Home Ownership $ 0 $123,400 $0 $123,400 Rental Rehabilitation $ 58,600 $105,400 $31,000 $195,000 Administration $ 14,868 $ 20,030 $0 $ 34,898 Total $137,468 $248,830 $81,000 $467,298 The following are proposed CDBG- funded FY 2013 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 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 Resolution No. 2012 -949 Page 3 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. Rehabilitation Service Delivery — To provide staff support necessary to carry out housing activities identified above. 3. Neighborhood Stabilization — Under the Neighborhood Stabilization and Neighborhood Stabilization 3 Programs (NSP & NSP3), 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. Also uses prior years' funds and program income. 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 and Neighborhood Services Department. Activities to be funded in 2013 include the following: ECHO (emergency rent assistance), HealthNet (primary medical care), and the Literacy Connection (adult literacy education). 7. Community Development — Under the CDBG — Emergency Assistance Program (CDBG -EAP), to provide funding to purchase, relocate and demolish the properties located at 411, 451, 457 and 463 N. Main Street to mitigate future property damage and business Toss to the property by relocating it outside of the flood plain. 8. Administration and Planning - To provide overhead and 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. Resolution No. 2012 -949 Page 4 PROPOSED BUDGET — 2013 CDBG PROGRAM Funding Sources 2013 Prior Program Grant Year Income Total Benefit* Program Services Housing Activities 50,890 0 81,000 131,890 LMI Rehab. Service Delivery 151,269 0 0 151,269 LMI Home Ownership 2,070 0 103,500 105,570 LMI Neighborhood Activities 31,516 0 0 31,516 LMA Neighborhood Stabilization 0 374,032 608,968 983,000 LMI Community Development 602,000 0 0 602,000 LMI Public Service Activities ECHO 40,000 0 0 40,000 LMI HealthNet 30,000 0 0 30,000 LMI Literacy Connection 7,000 0 0 7,000 LMI Administration& Planning Administration $96,710 $0 $35,083 $131,793 NA Grand Total $1.011.455 374.032 $828.551 $2,214.038 *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 FY2013 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 FY2013 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 2013 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 Resolution No. 2012 -949 Page 5 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 FY2013 budget document to reflect the receipt of the FY2013 Community Development Block Grant Program and HOME program funds and the expenditures as reflected in this resolution. ADOPTED: November 12, 2012 Motion by: Steeber Second by: Farrell APPROVED: Councilmember Aye Nay Pass Absent Dongarra -Adams X � � Farr ell X Eric J. C' ■ - Mag er Kealy X Liebert X ATTEST: „ Severson X �� Steeber X X C�f�% Voskuil Je An Wulf, City Clerk -Treas rer APPROVED AS TO FORM: (lail/W . _ Wald Klimczyk, City Attorney � Proposed by: Community Development Authority -... • - -` • Prepared by Neighborhood Services Director .._ ...