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City of Ashland, Oregon / City Recorder / City Council Information / Packet Archives / Year 2005 / 05/03 / PH 2005 Action Plan

PH 2005 Action Plan

 

Council Communication

Public Hearing and Decision on the Action Plan for the One Year Use of Community Development Block Grant Funds for Program Year 2005

Meeting Date: May 3, 2005 Primary Staff Contact: Brandon Goldman 552-2076 , goldmanb@ashland.or.us
Department: Community Development Secondary Staff Contact: John McLaughlin, 552-2043 mclaughj@ashland.or.us
Contributing Departments: None
Approval: Gino Grimaldi

Statement:
The City of Ashland anticipates the U.S. Department of Housing and Urban Development (HUD) will allocate approximately $237,500 to the City of Ashland for the 2005 program year beginning July 1, 2005. The Action Plan is required to show consistency in the use of Community Development Block Grant (CDBG) funds with Ashland's five-year Consolidated Plan. The City is required to hold a public hearing to receive comments on the Action Plan. The Department of Housing and Urban Development must approve the Action Plan prior to the release of the 2005 CDBG allocation.
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Background:
The attached Action Plan for FY 2005 reflects the Community Development Block Grant award made by the City Council during the March 15th, 2005 public hearing. At this hearing the City Council affirmed the Housing Commission recommendation and awarded the Rogue Valley Community Development Corporation $190,000 to purchase three of four units in an existing townhome development to be utilized as affordable housing targeted to households earning less than 80% Area Median Income. The remainder of the $237,500 allocation ($47,500) is reserved for administration of the CDBG program.

The City Council public hearing to review the 2005 Action Plan follows a public hearing before the Housing Commission that was held on April 27th, 2005. The final recommendation of the Housing Commission will be presented to the Council on May 3rd, 2005. The final Action Plan and public comments are to be submitted to of Housing and Urban Development no later than May 13, 2005.

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. Ashlands Consolidated Plan prioritizes the development or retention of affordable housing. The primary use of funds ($190,000 to RVCDC) qualifies as addressing Goal 2.2 of the Consolidated Plan:
2.2 Support acquisition and development of affordable ownership housing units through a sustainable program, which retains the units as affordable in perpetuity, such as a land trust.

Timely expenditure of CDBG funds is of specific importance to the City of Ashland. 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 the annual award allocation.

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Fiscal Impact:
The 2005 Action Plan explicitly identifies the use of the CDBG funds allocated to the City of Ashland and each sub-recipient. Additionally, 20% ($47,500) of the total program year grant award ($237,500) is designated to be used for administration, of the CDBG program.
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Council Options:
Upon review of the 2005 Action Plan and testimony provided during a public hearing, the Council shall determine whether the proposed use of funds is consistent with the 2005 CDBG Award recommended by Council, and the goals outlined in the Consolidated Plan.
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Staff Recommendation:
Staff recommends the adoption the 2005 CDBG Action Plan.
Possible Motions:
Move to approve the 2005 Action Plan for use of Community Development Block Grant Funds.
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Attachments:






Download File
actionplan2005_draft.pdf
(367.7KB)		  

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