Planning Dept: Memo - Close CDBG Public Hearign AND Adopt 2010 CDBG Action PlanAugust 5, 2010
MEMORANDUM
TO: Mayor Tammy de Weerd
City Council Members
CC: City Clerk
FROM: Lori Den Hartog, CDBG Administrator
RE: Program Year 2010 (PY2010) CDBG Action Plan Public Hearing and Adoption
August 10, 2010 City Council Agenda Item
A. INTRODUCTION & BACKGROUND
The City's CDBG entitlement for PY2010 is $274,368. In order to secure this entitlement,
the City must submit an adopted Action Plan for HUD review. The draft Action Plan was
released for public review and comment on June 22, 2010, and is now up for consideration.
The deadline for submittal of an adopted plan to HUD is August 17.
B. UPDATE
Based on comments received by Neighborhood Housing Services, Inc. staff has made minor
changes to the document to correctly identify that NHS Lending, Inc., a wholly owned
subsidiary of Neighborhood Housing Services, will be the entity directly assisting
low/moderate income households to purchase homes. The Meridian Food Bank submitted an
e-mail correspondence in support of the PY2010 Action Plan. The Action Plan has been
modified to note these comments. Staff has also made minor clerical corrections to the
document to consistently reference PY2010.
C. REQUEST
1. To close the public hearing on the draft PY2010 CDBG Action Plan.
2. To approve the PY2010 CDBG Action Plan. Based on this direction, staff will
prepare an adopting resolution for Council's consideration on next week's consent
agenda (August 17, 2010).
Planning Department . 33 E. Broadway Avenue, Meridian, ID 83642
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Attachment 1: Neighborhood Housing Services E-mail
From: Lupe Rodriguez [mailto:lrodriguez@nhsid.org]
Sent: Tuesday, June 22, 2010 9:12 AM
To: Matthew Ellsworth
Subject: RE: Meridian CDBG Action Plan
Good morning Matthew,
The Action Plan looks great. I have noted a few questions below:
Please see attached to confirm that the LMI income will be based on the attached income Limits set by
HUD? For example on the first line for Boise City-Nampa, ID HMFA, 4 person household may not earn
more than $49,500 to participate in the CDBG Grant? I haven't looked at the new thresholds, but I think
the ones in the attached are correct, and if so you are reading it the way we interpret it. We can confirm
the correct income determination when we get closer to initiating the program (presumably in October).
On the Action Plan, page 9, Resources section, first paragraph; "Some resources may be directly
leveraged to help fund CDBG eligible activities, in which case all HUD regulations and requirements
regarding matching will be satisfied. While other resources may not be able to contribute directly toward
CDBG-eligible activities, they may be able to provide assistance to related support programs. These
leveraged funds will be tracked and documented as part of the compliance monitoring process."
Will we be required to obtain matching funds of $20,000 from any of the Federal, State or other local
resources indicated on pages 9 and 10?
No - no match is required.
Will the loan structure of obtaining an IHFA, 80% first conventional, Fannie Mae loan and utilizing
Neighborhood Housing Services to obtain the remainder of the 20% after the CDBG grant is taken into
consideration be the exception to the matching funds or be considered one and the same? For example
IHFA is indicated on page 9 as being a State resource, Fannie Mae a Federal Resource and
Neighborhood Housing Services on page 10 a Local resource. All 3 resources are being used as
leveraged funds.
The City is required to identify potential partners and resources as part of every Action Plan. Our first
plan identified everyone on page 9 and 10 as possible partners (and, to be honest, I've cut and pasted
that page in subsequent plans...), but we are not currently leveraging any funds from anyone listed at this
time.
On the Action Plan, page 23, Appendix B.1, DH2.2; 1 is noted as the expected Number for 2010 and 2 is
noted for 2011. Page 5, Priority #2 also mentions assistance of 4 low/moderate income households.
Page 26, Appendix 6.2, Homeowner Goals (sec. 215 Only) indicates Homebuyer Assistance at 4 and
Total Sec. 215 Affordable Owner at 4. Under Combined Rental and Owner Goals (Sec. 215 Only), pages
26 & 27, indicates Homebuyer Assistance at 4 and the Combined Total Sec. 215 Goals " at 4. Page 27,
Overall Housing Goals (Sec.215 + Other Affordable Housing) indicates 4 Annual Owner Housing Goal
and 4 Total Overall Housing Goal. Pages 29 & 30 for both ACHA and Neighborhood Housing Services,
Inc. is indicated that 4 Annual Units for each.
Based on the above paragraph I have interpreted the Action Plan to have both ACHA and Neighborhood
Housing Services, Inc. to obtain a total of 4 combined Homeowner's, but the last 2 pages I interpreted 4
for each. My conclusion would be 4 for each. Am I interpreting this correctly?
I was out of the office for the bulk of last week and extremely pressed to get the draft out for public
review. I wanted to make sure the draft included the activities the City proposes to invest in so that the
public can weigh in. We can nail down exactly what that looks like sometime this month, before we
finalize the draft (i.e. NHS comments can dictate to the City how many households you can assist with
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this or that amount of money. Right now, the draft awards $20,000, but you can request more if you
would like).
Page 9, Resources, first paragraph mentions "The City may consider additional partnerships with
Meridian Development Corporation (MDC) to leverage available resources and achieve maximum
results." May you give me an example of what MDC is able to do to leverage and if they will have their
leveraging source available once a final decision on the funding has been determined?
That probably carried over from last year's draft... It is something I'll have to clean up before finalizing the
Plan...
Neighborhood Housing Services, Inc. has 2 entities, one being Neighborhood Housing Services, Inc and
the other being NHS Lending, Inc. May you show the Project title NHS Lending, Inc. on page 30 if we are
allowed to remain in the plan? NHS Lending, Inc. is a wholly owned subsidiary of Neighborhood Housing
Services, Inc.
Yes - we can nail that down before finalizing the Plan as well.
The Council meeting begins at 7:00. How long does it usually last? Do you recommend that I attend the
whole meeting?
From what I recall this is an early agenda item. There's no need for you to attend after you provide
comment, but you're welcome to if you'd like.
Thank you,
Lupe Rodriguez
Mortgage Lending Manager, NMLS #82205
Neighborhood Housing Services Inc
1401 Shoreline Drive
P O Box 8223
Boise Idaho 83707
Phone 208.343.4065 ext 110
Fax 208.343.4963
Cell 208.283.3611
lrodriguez(a~nhsid. org
www.nhsid.orQ
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Attachment 2: Meridian Food Bank E-mail
From: Dan Clark [mailto:DClark@valleyshepherd.org]
Sent: Tuesday, July 27, 2010 5:29 PM
To: C. Caleb Hood
Subject: 2010 CBDG
Greetings Caleb:
I want to take this opportunity to tell you how much the Meridian Food Bank appreciates what you, Matt,
the Planning Department,
and the City of Meridian, in general, has done in support of our efforts to feed those in need. The funds
we have received from the
CDBG (grants) have allowed us to purchase food to keep us going when other donations didn't arrive. It
has been a great partnership.
I just want to share with you a few notes and statistics to bring you up to date on what the food bank is
doing at present. Each month
we provide food baskets to an average of 3,200 people from Meridian and the surrounding areas. As of
the end of June this year, we have served
nearly 19,000 people with nearly 155,000 pounds of food. These numbers are well on a path to exceed
last year within the next three months.
If the trend with the economy continues, we anticipate the Back Pack Program will be providing back
packs for over 200 students per
week within the Meridian School District. We are constantly on the look out for the type of food that will fit
in back packs as well as
provide healthy meals for a good price. This is sometimes a challenge and a little expensive. But our
goal is to give the students the best
meal we can.
Again Caleb, I want to thank you for the support we have received from you and the City of Meridian. If I
can be of any help in your efforts
with the 2010 CDBG, please let me know.
Sincerely
Dan Clark
Chairman
Meridian Food Bank