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