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Memo from Matt EllsworthPage 1 of 1 Tara Green From: Matthew Ellsworth Sent: Friday, July 24, 2009 9:35 AM To: Tara Green Subject: Council Info -CDBG Follow Up Flag: Follow up Flag Status: Green Tara, Here is the summary for next week's CDBG items: Summary Thanks! Matt Ellsworth Associate City Planner Meridian Planning Department 33 E. Broadway Ave. Meridian, ID 83642 208.884.5533 7/24/2009 City Council Regular Meeting Tuesday, July 28, 2009 Items 8 & 9: PY2009 CDBG Action Plan, Public Hearing and Adoption A. INTRODUCTION & BACKGROUND The City's CDBG entitlement for PY2009 is $249,962. In order to secure this entitlement, the City must submit an adopted Action Plan for HUD review. The draft was released for public review and comment on June 23, and is now up for consideration. The deadline for submittal of an adopted plan to HUD is August 17. B. UPDATE The City received a letter from BCACHA dated July 16, 2009 (Attachment 1) requesting a higher level of funding next program year than is currently proposed. Specifically, BCACHA requests an increase from $20,000 to $50,000 for Homebuyer Assistance in PY2009. C. RECOMIVIENDATION Staff recommends increasing the level of funding for Homeownership Assistance from $20,000 to $50,000 per BCACHA's request. To offset this increase, staff proposes a decrease in funding for (1) Five Mile Creek Pathway, Segment H.1 and (2) Facade Improvements. The rationale for this recommendation is as follows: 1. Timeliness: HUD expects entitlement communities to spend CDBG funds in a timely manner (otherwise HUD reserves the right to discontinue funding). BCACHA is on track to spend its $50,000 allocation from last year in the upcoming months. There is a need for continued Homebuyer Assistance funding, and staff is confident that BCACHA can spend an additional $50,000 within the next program year. The two activities recommended for a decrease in funding may not be ready to spend money as quickly as BCACHA. Each has unspent funds from previous program years that are still on the table and ready to put to the proposed activities. a. Five Mile Creek Pathway: $45,000 from PY2007 b. Fa~a,de Improvements: $55,000 from PY2007 2. Monetary decrease for other activities is minimal on the ground: a. Five Mile Creek Pathway: The pathway has an unspent allocation of $45,000 from a previous program year. Regardless of the level of additional funding next year, the project can still move forward (design, environmental, site prep, materials purchase, etc.). In addition, regardless of the level of funding in PY09, completion of the pathway will require continued funding beyond the upcoming program year. Shifting some funds to BCACHA will not impact the timeline for completion of the pathway. b. Facade Improvements: MDC's Administrator indicates that a decreased level of funding can still translate into a quality facade improvement project. 3. Program Intent: Housing is a central component of the CDBG program. Homeownership Assistance is the only housing-related activity proposed for next program year, and providing the same level of funding from last year maybe looked on more favorably by HUD than a decreased level of funding. Staff recommends adjusting the levels of funding for PY2009 as follows: Draft Flan Adiusted r~;.:ivit ~ a~~~r~__3 ~-,, i_ i',:ric~~ =+,~_~,r~~~~,r ii~_;c~ii~~%~l ~~; r ~n"i' Administration & Pianning - 20% $49,992.40 $49,962.00 TOTAL :,, _ $49,992.40 ::.: 20% $49,962.00 20•.~ Public Services -15% Bays & Giris Club $17,000.00 $27,000.40 Meridian Food Sank $2fl,000.00 $20,000.00 Totai 537,000.00 15% $37,000.00 15% Public Facilities ,,. _. , Five Mile Creek Pathway Envt & CN $50,0OO.Ofl $33,Oflt?.flfl Centennial Park improvements $55,000.00 $55,0OO.Ofl TOTAL $105,000.00 42% $88,000.00 359'0 Affordable Housing Homebuyer Assistance $20,000.00 TOTAL $20,000.00 8`Yo 20% Sium & Biight Facade Improvements $40,000.00 $25,000.00 TOTAL $40,000.00 16% $ZS,OOO.QO 10% 5lJBTOTAL _ $251,992.40 101`,- $249,96?.00 100°~ Summary of Changes: • Administration & Planning: $30.40 removed to bring total allocation in line with entitlement amount. • Five Mile Creek Pathway: Activity amount decreased by $15,000 to increase funding for Homebuyer Assistance. $2,000 removed to bring total allocation in line with entitlement amount. • Homebuyer Assistance: Activity amount increased by $30,000 per BCACHA request. • Fagade Improvements: Activity amount decreased by $15,000 to increase funding for Homebuyer Assistance. D. REQUEST 1. To close the public hearing on the draft PY2009 CDBG Action Plan. 2. That Council finalize the allocation amounts for the PY2009 CDBG Action Plan. Based on this direction, staff will (1) make the necessary changes to the final draft plan and (2) prepare an adopting resolution for Council's consideration on next week's consent agenda (August 4, 2009). 2 Attachment 1: BCACHA Letter ~~'~~ J A~~ ro ~iav ~ - G p '~,. , a at ~C MOUSING AUTHORITY °~""'"a ~ wanart EXECUTNE DIRECTOR 127b River Street, Suite 300 phone {2Q8} 345.4907 i3oise, Idaho 83702 Fax {20$} 345-4909 wwtu bcacha.org July 16, 2409 Meridian City Hall 33 E Broadway Ave., Suite 104 Meridian, lD 83G~2 12E: Community .Development Block Giant 2009 Action Plan Dear Mayor and Council members: I he Boise City/Ada County Housing Authority (BC9ACHA) currently opexates a homeownership program far low income families participafing in the Section 8 Housing Choice Voucher program To date, the BC/ACHA has been able to assist 2 families to reach their goal of. homeownership in .Meridian, and is in the process of~assisting a 3`d family.. Iles was made possible by use of the previously awarded Community Development Block grant (GDBG} funds Under the 2008 CDBG Action Plant' the BC/ACHA was granted a total of $SO,flflfl to provide financial support #br the program last year. iJnder this year's CDBG Action Plan, the allocated amount to support this purpose for next year has decreased to $20,000. Therefore, the BC/ACHA requests an amendment to the Action Plan, by increasing the allocated amount to a total ot'$50,000 for the homeownership program The BC/ACHA is confident tha# through the support we have received from Meridian's Planning Department over the last year, and thraugl>< defined practices acrd policies, we will be able to utilize a total of $50,000.: This funding will be used to serve 5 families who wish to purchase a home in Meridian over the next year.. The BC/ACHA is committed to partnering with the City of Meridian by serving low income families within the community. We appreciate your willingness to review our request, and look forward to continue working with you Thank you, Sincerely, lillian Patterson Grant Programs Manager Cc: Deanna L. Watson, BC/ACHA Executive Director 3