City of Ashland, Oregon / City Recorder / City Council Information / Packet Archives / Year 2004 / 10/19 / CDBG App Review
CDBG App Review
Council
Communication
[Attachments]
Public Hearing on Community Development Block Grant (CDBG) award of past
carryover and program income.
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| Meeting Date: |
October 19, 2004 |
00 |
Primary Staff Contact: |
Brandon Goldman |
| Department: |
Community Development |
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Secondary Staff Contact: |
John McLaughlin |
| Contributing Departments: |
None |
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| Approval: |
Gino Grimaldi |
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| Statement: |
| The City of Ashland provides Community Development Block Grants (CDBG)
to eligible affordable housing projects within the City of Ashland. The City
Council is to evaluate proposals for use of $274,000 accumulated as program
income and past carryover from prior years. Additionally $80,000 from the
2001 program year is to be reallocated through the review process to ensure
consistency with the original 2001 award with and the CDBG program requirements.
Upon review of proposals the Council shall make awards to selected applicant(s). |
| Background: |
| The City of Ashland received one proposal for the allocation of approximately
$274,000 in Community Development Block Grant (CDBG) funds. These funds
originated primarily from the City's purchase of the Grove facility, thereby
generating over $214,000 in program income to be redistributed through the
CDBG program. Additionally, approximately $60,000 in past carryover is being
incorporated into the award of Reprogrammed 2004 CDBG funds. Proposals requested
were limited to affordable housing projects, the highest priority need identified
in the 2000-2004 Consolidated Plan. The proposal received is for land acquisition
to construct 6 affordable housing units (townhomes) which benefit low and
moderate-income households as part of a phased Self-Help program administered
by the Rogue Valley Community Development Community (RVCDC).
Additionally the City received a request from the Ashland Community Land
Trust to apply $80,000 in previously awarded CDBG funds to purchase a property
located at 39 Garfield Street. This request for $80,000 is independent of
the $274,000 noted above. ACLT had been awarded $120,000 in CDBG funds to
purchase properties on Hersey and Patterson Streets as part of the 2001 CDBG
award. ACLT was only able to purchase one of three properties and therefore
has a remainder of $80,000 that was unexpended. As that original purchase
was not completed as planned, the alternative site is intended to accomplish
the same goal with the remaining $80,000 to purchase property for the development
of 2 affordable housing units. |
| Related City
Policies: |
| Community Development Block Grants are federal funds awarded through
the City of Ashland to eligible projects that benefit low-moderate income
households. Ashland's Consolidated Plan for use of CDBG Funds establishes
which of the nationally recognized eligible uses are prioritized locally.
The Staff Evaluation of the proposals included in the Council Packet (attachment
B1-B9) provides Staff's determination that the RVCDC's proposal meets a national
objective and is an eligible use of CDBG funds. The Staff Memo relating to
ACLT's proposal (attachment page E1-E2) also provides Staff's determination
that their proposal is consistent with the Consolidated Plan and complies
with CDBG eligibility criteria.
Timely expenditure of CDBG funds is of specific importance to the City of
Ashland in that should the City fail to expend the funds in a timely manner,
the Department of Housing and Urban Development can impose sanctions thereby
reducing future CDBG award allocations. Currently the City is considered
timely, however given our limited annual CDBG allocation it is imperative
that any project awarded CDBG funds demonstrate a readiness to proceed to
ensure the City does not accumulate carryover in excess of 1.5 times Ashland's
annual award allocation. |
| Council
Options: |
| Upon review of the proposals received, and after hearing public comments,
the Council shall determine whether the projects effectively address the
goals outlined in the Consolidated Plan for use of CDBG funds. With this
determination the Council may award $274,000 to RVCDC for the acquisition
of property for the development of 6 affordable housing units, and approve
of the reallocation of $80,000 to ACLT to acquire 39 Garfield Street. Should
the Council determine that either project, or applicant, does not satisfactorily
demonstrate the ability to complete the developments as proposed, the Council
may elect to issue a new RFP and aggregate past carryover funds into the
2005 CDBG Request for Proposals.
Upon completion of award selections by the City Council, a modification to
the annual CDBG Action Plans (2001 and 2004) will be developed to outline
the new proposed use(s) of the CDBG funds. This modification of past action
plans will be provided to Council at a public hearing for review and approval
on November 16th, 2004. |
| Staff
Recommendation: |
| Staff recommends awarding $274,000 to RVCDC for the purchase of property
at 795 Park (fronting on Siskiyou Blvd.) for the development of 6 affordable
units benefiting households earning less than 80% area median income. Staff
believes the project is viable and is a CDBG eligible project. Although the
project's success is contingent upon RVCDC's successful application for USDA
funding and selection of qualified and interested households, RVCDC's success
in receiving USDA funds to complete Pre-development activities is promising.
Staff further recommends allowing ACLT to retain the $80,000 previously awarded
to purchase an alternative site located at 39 Garfield Street. The purchase
of property for the development of affordable housing is both an eligible,
and expeditious, use of CDBG funds.
The City of Ashland Housing Commission reviewed the grant requests on Sept
22, 2004 at a public hearing, and has forwarded a recommendation to the City
Council to award RVCDC the full $274,000 in 2004 reprogrammed CDBG funds.
Additionally the Housing Commission recommends approval of the reallocation
of the $80,000 in 2001 CDBG funds to ACLT for the purchase of 39 Garfield
St. |
| Potential
Motions: |
| Motion to approve the award of $274,000 in Community Development Block
Grant Funds to the Rogue Valley Community Development Corporation for the
acquisition of land for the development of 6 affordable units, and to approve
of the reallocation of $80,000 in CDBG funds to the Ashland Community Land
Trust for the acquisition of property for 2 affordable housing units.
Motion to abstain from awarding $274,000 in Community Development Block Grant
Funds at this time and re-advertise the availability of these funds through
the 2005 CDBG Request for Proposal Process, and to approve of the reallocation
of $80,000 in CDBG funds to the Ashland Community Land Trust for the acquisition
of property for 2 affordable housing units.
Motion to make no CDBG awards or reallocations available at this time and
re-advertise the cumulative total of $354,000 through the 2005 CDBG Request
for Proposal Process. |
| Attachments:
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