2005-216
RESOLUTION NO. 2005-216
RESOLUTION APPROVING THE FY2006 ACTION PLAN FOR THE COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM
AND ROCK COUNTY HOME CONSORTIUM SUBMISSION
WHEREAS, the City of Janesville is an entitlement community 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, approximately $592,000 in entitlement Community Development
Block Grant (CDBG) Program funds is expected to be allocated in 2006 to the City of
Janesville for community development activities; approximately $255,000 is expected to
be received in revolving loan fund repayments for a total of $847,000 in new CDBG
funds and includes the use of $96,604 in prior years funds for a total CDBG budget of
$943,604; and
WHEREAS, $224,342 is expected to be allocated as the City of Janesville's
share of the FY2006 HOME Consortium funds and $112,000 is expected to be received
in HOME program income for a total of $336,342 in new HOME funds, and prior years'
funds of $135,538 is also anticipated to be used during FY2006 for a total proposed
HOME budget of $471 ,900; and
WHEREAS, the Community Development Authority (CDA) has held the required
public hearings and evaluated the citizen comments concerning potential activities for
the City of Janesville's FY2006 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, 2006 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 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 provision for renting 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.
Resolution No. 2005-216
Page 2
PROPOSED ALLOCATION of FY2006 HOME FUNDS
($224,342 available in new funds)
FY2004 Prior Year Prog. Inc. Total
Affordable Housing Development $ 30,000 0 0 $ 30,000
Lot for Affordable Housing (Habitat) 50,000 0 0 50,000
Home Ownership/ Rental Rehabilitation 125,000 135,558 112,000 372,558
Administration 19.342 0 0 19.342
Total $224,342 $135,558 $112,000 $471,900
PROPOSED STATEMENT OF OBJECTIVES FY2006 CDBG PROGRAM
1. Housinq Rehabilitation - To rehabilitate owner-occupied and investor-owned
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. Also uses prior years' funds and program income.
2. Residential Bliqht Elimination - To fund the acquisition and demolition of blighted
properties in residential areas primarily in the Central City Area. Also funds the
acquisition of residential property not feasible for rehabilitation and making the
site available for an appropriate re-use such as parking, tot lot, or new housing
construction. Also uses prior years' funds and program income.
3. Neighborhood Activities - To fund a variety of programs aimed at reconnecting
families in low-moderate income residential areas with their neighborhoods and
the community as a whole. Funds may be used to support teaching English as
a Second Language (ESL) to low-moderate income youths and adults, summer
camp scholarships, and a neighborhood block grant for neighborhood
improvement activities and coordination. Also uses prior years' funds.
Resolution No. 2005-216
Page 3
4. Downtown Activities - To provide funds for a variety of blight elimination activities
in the Central Business District including repair of public facilities such as the
river walkway, rehabilitation including design work of downtown buildings,
downtown planning and management, construction or reconstruction of parks
and parking facilities, and acquisition, relocation, and demolition of blighted
properties in Census Tract 1. Property acquired and cleared of blight to be used
for activities such as parks and open space, parking, redevelopment, or as
authorized by the City Council. Also uses prior years' funds and program
Income.
5. Optional Activities - To provide funds for activities which indirectly support the
housing and downtown mission of the department. Activities proposed for
funding in 2006 include the following: emergency rent assistance, health services
for income eligible persons, and support of the Boys & Girls Club.
6. Local Homeownership Proqram - 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.
7. Administration and Planninq - To provide overhead and administrative support
necessary to carry out the Community Development Block Grant Program
including compliance with program regulations and planning for downtown and
central city revitalization and to provide funds to support Historic Commission
activities such as memberships, subscriptions, and resource materials. Also
uses prior years' funds.
PROPOSED BUDGET - FY2006 CDBG PROGRAM
Funding Sources
2006 Prog. Inc./ Prior
Grant Rev. Loan Years Total
Administration
General Administration $137,472 $0 $4,554 $ 142,026
Rehab. Services Delivery 204,778 0 0 204,778
Administration Subtotal 342,250 0 4,554 346,804
Program Services
Neighborhood Activities
Neighborhood Block Grant 50,000 0 50,000
Residential Blight Elimination 10,000 0 0 10,000
Neighborhood Livability 12.500 Q 0 12.500
Neighborhood Subtotal 72,500 0 0 72,500
Resolution No. 2005-216
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Downtown Activities
Downtown Projects 30,000 0 0 30,000
Downtown Coordinator 40,000 0 0 40,000
Revitalization Projects 30 ,000 0 Q 30,000
Downtown Subtotal 100,000 0 0 100,000
Housing Activities
Emergency Rent Assist. (ECHO) 21,500 0 0 21 ,500
Housing Rehabilitation 0 160,000 28,550 188,550
Rental Rehabilitation 0 5,000 40,000 45,000
Home Ownership 0 90 , 000 23,500 113,500
Housing Subtotal 21,500 255,000 92,050 368,550
Historic Preservation 750 0 0 750
Optional Activities
Boys & Girls Club 5,000 0 0 5,000
Healthnet 50 , 000 Q 0 50,000
Optional Subtotal 55,000 0 0 55,000
Unallocated 0 0 0 0
Grand Total $592.000 $255.000 $96.604 $943.604
WHEREAS, the CDA further recommends to the Common Council that it
authorize and direct the City Manager to execute the FY2006 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 FY2006 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 authorized and directs the City Manager to submit the Consolidated
Plan 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
Resolution No. 2005-216
Page 5
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 FY2006 budget
document to reflect the receipt of the FY2006 Community Development Block Grant
Program and HOME program funds and the expenditure as reflected in this resolution.
ADOPTED:
December 12, 2005
Motion by: Addie
Second by: Tim Wellnitz
Councilmember Aye Nay Pass Absent
Brunner X
Brien X
Williams X
Wellnitz, Tim X
Wellnitz, Tom X
DeGarmo X
Addie X
AP7tJJ:lr:;?!
City Attorney
Proposed by: Community Development Authority
Prepared by: Community Development Planner