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
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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
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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.
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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
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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 .._ ...