2014-1093 RESOLUTION NO. 2014 -1093
RESOLUTION APPROVING THE 2014 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 Community Development Authority (CDA) has held the required
public hearing and evaluated the citizen comments concerning potential activities for the
City of Janesville's 2014 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, 2014 Action Plan:
PROPOSED STATEMENT OF BUDGET & OBJECTIVES 2014 CDBG PROGRAM
The City of Janesville is anticipating that $1,114,040 in Community Development Block
Grant (CDBG) funds, $231,389 in Neighborhood Stabilization funds, and $232,000 in
Community Development Block Grant — Emergency Assistance Program (CDBG -EAP)
funds will be available in 2014, including new grant awards, revolving loan funds, program
income and the use of prior year's grants. A balance of revolving loan funds will be
available for future years. For 2014, proposed CDBG activities and budgeted amounts are
indicated below:
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
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 ($309,539, including prior year funds and program
income).
•
Resolution No. 2014 -1093
Page 2
2. Rehabilitation Service Delivery — To provide staff support necessary to carry out
housing activities identified above ($115,426, including prior year funds).
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 ($231,389, including prior year funds and
program income).
4. Local Homeownership Program - To provide funds for the City Homeownership
Program including Down Payment and Closing Cost forgivable loans, fix -up loans,
Recently Purchased Home Improvement Program loans, and other homeownership
programs. Also uses prior years' funds and program income ($123,024, including
prior year 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. Also, to provide a blight elimination program focused on offering demolition
grants to low- moderate income individuals who have received orders to correct for
deteriorated homes or garages ($59,784).
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 2014 include the following: Boys and Girls
Club - afterschool programming ($4,200), ECHO - emergency rent assistance
($47,800), HealthNet - primary medical care ($34,000), and the Literacy Connection
- adult literacy education ($6,300).
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 properties by relocating them outside of the flood plain
($232,000).
8. Administration and Planning - To provide overhead and administrative support
necessary to carry out the CDBG, HOME, Neighborhood Development, and
Neighborhood Stabilization Programs, including compliance with program
regulations and planning for the housing and community development needs in
Janesville ($113,913).
PROPOSED STATEMENT OF BUDGET & OBJECTIVES 2014 HOME PROGRAM
Resolution No. 2014 -1093
Page 3
The Cities of Janesville and Beloit and the County of Rock have formed a Consortium to
receive HOME funds directly from the U.S. Department of Housing and Urban
Development (HUD) on a formula basis. The 2014 HOME Consortium allocation totals
$479,877. County -wide, the following activities may be undertaken with HOME funds:
rehabilitation of owner - occupied and rental units, down payment and closing cost
assistance, new construction of owner - occupied and rental housing units, and
purchase /rehabilitation /resale of owner - occupied units
The City of Janesville will receive a total of $163,158 of this allocation. An additional
$91,000 in program income and $338,362 in prior years grant funding and program income
is anticipated to be available to the City of Janesville. Proposed activities and budgeted
amounts include: owner - occupied rehabilitation ($64,133), home ownership programs
($200,475), rental rehabilitation ($122,000) and administration ($25,157). The balance of
available funds will be allocated in 2015.
WHEREAS, the CDA further recommends to the Common Council that it authorize
and direct the City Manager to execute the FY2014 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 FY2014 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 2014 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 FY2014 budget
document to reflect the receipt of the FY2014 Community Development Block Grant
Program and HOME program funds and the expenditures as reflected in this resolution.
ADOPTED: May 12, 2014 Motion by: Marklein
Second by: Liebert
APPROVED: Councilmember Aye Nay Pass Absent
Bobzien X
Farrell X
Z/-tiC,
Mark A. reitag, City Manager Fitzgerald x
Resolution No. 2014 -1093
Page 4
Kealy X
ATTEST: Liebert X
//(4.-/ X
22� Marklein
Severson X
Je Ann Wulf, City Clerk -Tre urer
APPROVED AS TO FORM:
Ze(W
City Attorney
Proposed by: Community Development Authority
Prepared by: Neighborhood & Community Services
Director