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City of Ashland, Oregon / City Recorder / City Council Information / Packet Archives / Year 2003 / 06/17 / PH Action Plan

PH Action Plan


[Council Communication] [Attachments]


Council Communication
Title: Public Hearing and Decision on the Modification of the Action Plan for the One Year Use of Community Development Block Grant Funds for Program Year 2001-2002
Dept: Planning Department
Date: June 17, 2003
Submitted By: John McLaughlin, Department of Community Development, Director
Brandon Goldman, Assistant Planner
Approved By:
...........................
Gino Grimaldi, City Administrator

Synopsis: The U.S. Department of Housing and Urban Development (HUD) allocated $230,000 to the City of Ashland for FY 2001-2002. The City held a public hearing to receive comments on the Action Plan. The Department of Housing and Urban Development approved the 2001-2002 Action Plan based upon the projects and actions proposed. Ashland Community Land Trust (ACLT) was awarded $120,000 in Community Development Block Grant (CDBG) Funds to develop 4 affordable housing units. ACLT has now requested a reduction in the number of units to be developed from 4 to 3,

Recommendation: Staff recommends approval of Modification of the 2001-2002 Action Plan to allow ACLT to acquire three parcels between Hersey and Patterson streets for the development of three affordable single family homes. The Ashland Housing Commission reviewed the proposed modification at their meeting on May 28th (Exhibit A) and forwarded a recommendation to approve the modification to the City Council.
Fiscal Impact: The Modification of the 2001-2003 Action Plan does not alter the amount of CDBG funds awarded to ACLT ($120,000) or other subrecipients for the 2001-2002 CDBG program year. This grant amount was determined following due notice and public hearings. CDBG grants are not paid out of the General Fund.
Background: The original award of $120,000 to ACLT was targeted to the acquisition of land for the subsequent the development of 4 affordable units. ACLT encountered a number of difficulties in identifying and purchasing land as noted in the attached project update provided by ACLT (Exhibit B). Recently the property between Hersey and Patterson was purchased by Medinger Construction Co. and this current owner has indicated a willingness to sell ACLT three 5000sq.ft. lots (Map- Exhibit C). The $120,000 2001-2002 CDBG award is explicitly for the purchase of property, in this case the vacant parcels prior to issuance of a building permit for the homes to be relocated to the properties.

Southern Oregon University recently received demolition approval to demolish or relocate three small homes located on Webster Street. ACLT intends to work collaboratively with the Rogue Valley Community Development Corporation (RVCDC) to relocate these homes to the three parcels on Hersey to be acquired by ACLT with CDBG funds, and RVCDC is to renovate/restore these homes.

Staff recognizes that the collaboration between two non-profits, a private developer, and the City CDBG program can readily develop three affordable single family homes within Ashland. The reduction in the number of units to be provided by ACLT triggers a modification of the 2001-2002 Action plan as it is a 25% reduction in the number of units and therefore considered a "substantial" change in Ashland's Consolidated Plan.

After receiving staffs presentation and public testimony at the May 28, 2003 public hearing before the Housing Commission , the Housing Commission reviewed the proposal and has forwarded a recommendation of approval to the City Council for a decision.

The section of the 2001-2002 CDBG Action Plan (Goal 1 page 5) relating to the proposed modification is shown below. The modification will be to change the number of units (to 3), eliminate the wording regarding the Child day care center (see strikethrough), and change the target date for completion:

Ashland Community Land Trust

Action to meet priority and time-line: The City will provide CDBG funding to the Ashland Community Land Trust (Project 1). The funding will be utilized to purchase property for the construction of 3 low-income residential units and the construction of a children's day care center. The Ashland Community Land Trust is a private non-profit corporation. The purpose of the land trust is to create and sustain long-term affordable housing in the city limits of Ashland for low and moderate income families. The land trust acquires and holds land, while the improvements are sold or rented to qualifying low-income residents.

Funding sources for this project include: CDBG funds

Projected Number Households to be Assisted: 3 low-income households

Probable Funding Level: $120,000

Target Date for Completion: January 1, 2004



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