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2015-1252 RESOLUTION NO. 2015 -1252 RESOLUTION APPROVING THE 2016 ACTION PLAN FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM AND ROCK COUNTY HOME CONSORTIUM FOR 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 hearings and evaluated the citizen comments concerning potential activities for the 2016 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 2016 Action Plan: PROPOSED STATEMENT OF BUDGET & OBJECTIVES 2016 CDBG PROGRAM For 2016, the City of Janesville is estimating that $695,967 in Community Development Block Grant (CDBG) funding, $6,286 in Neighborhood Stabilization funding, $476,398 in HOME funding, and $222,159 in other State and Federal Grants will be available to address housing and community development needs in Janesville. These amounts include new grant awards, program income and the use of prior year's grants, and along with the Revolving Loan Fund for home improvement loans balance the budget. 1. Housing Activities - To rehabilitate owner - occupied and rental housing occupied by low and moderate income households 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. $619,967 ($151,260 - owner rehab, $123,739 - rental rehab, $126,000 in the recently purchased home program, and $80,000 for purchase, rehab and resale). 2. Rehabilitation Service Delivery — To provide staff support necessary to carry out housing activities identified above ($147,219). 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 ($4,000, including prior year funds and program income). 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. Also, to provide blight elimination program focused on offering demolition grants to low- moderate income individuals who have received orders to correct for deteriorated garages or accessory structures ($68,967). 5. Public Service Activities - To provide funds for activities which indirectly support the mission of the Community Development Authority and Neighborhood and Community Services Department. Activities to be funded in 2016 include the following: Community Action, Inc. of Rock and Walworth Counties - Skills Enhancement and Fatherhood Initiative ($7,000), ECHO - emergency rent assistance ($45,500), HealthNet - primary medical care ($32,000), and the Literacy Connection - adult literacy education ($8,000). 6. 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 ($107,542). PROPOSED STATEMENT OF BUDGET & OBJECTIVES 2016 HOME PROGRAM 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 2016 HOME Consortium total budget is $1,220,882. This total includes anticipated 2016 award, anticipated program income and prior years' resources. 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 has budgeted $0 in new HOME funding based on correspondence from HUD regarding this allocation. An additional $130,000 in program income and $346,398 in prior years grant funding is anticipated to be available to the City of Janesville. Proposed activities and budgeted amounts include: owner - occupied rehabilitation ($97,500), home ownership programs ($180,000 in down payment and closing cost assistance and $50,000 in new construction), rental redevelopment ($110,000) and administration ($38,898). It is the intent of the City of Janesville not to cause displacement of persons as a result of CDBG funded activities. In the event that displacement does occur, a plan for assistance will be developed. WHEREAS, the CDA further recommends to the Common Council that it authorize and direct the City Manager to execute the FY2016 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 FY2016 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 2016 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 FY2016 budget document to reflect the receipt of the FY2016 Community Development Block Grant Program and HOME program funds and the expenditures as reflected in this resolution. ADOPTED: November 9, 2015 Motion by: Marklein Second by: Tidwell APPROVED / Councilmember Aye Nay Pass Absent Bobzien X Deupree X Farrell X Mark A. ' reitag, City Manage, Gruber X ATTE .. Liebert X Marklein X Z irAigVA e( Tidwell X Da id T. Godek, City Clerk- Treasurer APPROVED AS TO FORM: Wald Klimczy , City Attorney Proposed by: Community Development Authority Prepared by: Neighborhood & Community Services Director