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Date
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June 3, 2009
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Agenda
Item No. 3 Roll
Call No. 09-
Communication No. 09-352 Submitted by: Chris Johansen, Assistant City
Manager |
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AGENDA
HEADING:
Public Hearing and approval of the proposed
Substantial Amendment to the Fourth Year (2008) Action Plan of the 2005 – 2009
HUD Consolidated Plan for the Community Development Block Grant Recovery (CDBG
– R) Program.
SYNOPSIS:
To receive and file citizen views and comments on
the proposed substantial amendment to the Fourth (2008) Year Action Plan of the
2005 – 2009 HUD Consolidated Plan for the CDBG-R program and authorize the
Mayor or his designee to submit the amendment to HUD.
FISCAL
IMPACT:
Amount: $1,152,886
Funding Source: HUD Community Development
Block Grant – R Program
ADDITIONAL
INFORMATION:
The City was recently notified that under Title XII
of the American Recovery and Reinvestment Act of 2009, Congress designated
additional financial assistance and services to local governments to carry out,
on an expedited basis, eligible activities under the CDBG program. Upon the successful submission of a
substantial amendment to the Fourth (2008) Year Action Plan of the 2005-2009
HUD Consolidated Plan, HUD will provide $1,152,866 of additional CDBG funds to
be spent on eligible activities over the next three years. The substantial amendment has to be submitted
to the HUD Field Office by June 5, 2009.
The purpose of the additional funding is to
stimulate the economy through measures that modernize the nation’s infrastructure,
improve energy efficiency, and expand educational opportunities and access to
health care. HUD strongly urges grantees
to use CDBG-R funds for hard development costs associated with infrastructure
activities that provide basic services to residents. HUD encourages these funds
to be under contract as soon as possible.
Attached to the City’s substantial amendment is an
electronic spreadsheet which includes activity names, activity descriptions,
CDBG-R dollar amount budgeted, eligibility categories, national objective
citations, and total activity budgets.
Also included in the substantial amendment on pages 3 & 4 are
descriptions of local projects to be funded.
An allocation of $737,598 of CDBG-R funds to the
Neighborhood Infrastructure Improvement Program (NIRP) has been proposed to
expand services currently being provided in low-/mod-income areas of the City
that are participating in the Neighborhood Revitalization Program. Most of the preliminary planning for NIRP has
been completed and the activities can be started and completed
expeditiously. Street, curb, and
sidewalk improvements will meet HUD’s stated preference for hard development costs,
will preserve and create jobs, invest in infrastructure, and minimize or avoid
reductions in essential services.
It is also proposed to allocate $300,000 of CDBG-R
funding to the Residential Demolition Program.
This will expand the program in low-/mod- income areas of the City that
are participating in the Neighborhood Revitalization Program. The Demolition Program will remove abandoned
structures that reflect negatively on neighborhood appearance and create health
and safety hazards. Infill housing can
be constructed on the cleared lots and help stabilize and improve affordable
housing opportunities in distressed neighborhoods.
Up to 10% of the funds will be allocated for
administration, monitoring, reporting, audit, and other financial activities.
It is recommended that the City Council adopt the
above recommendations for allocation of CDBG-R funds and submit the substantial
amendment to HUD.
PREVIOUS
COUNCIL ACTION(S):
Date: May 18, 2009
Roll
Call Number:
09-852
Action:
On proposed substantial amendment
to the Fourth Year (2008) Action Plan of the 2005-2009 HUD Consolidated Plan
for the Community Development Block Grant Funding (CDBG-R) under the American
Recovery and Reinvestment Act of 2009, (Hearing will be held at a special
Council meeting on June 3, 2009 at 4:00 PM).
Moved by Kiernan to adopt. Motion Carried 6-1. Absent:
Cownie.
BOARD/COMMISSION
ACTION(S): NONE
ANTICIPATED
ACTIONS AND FUTURE COMMITMENTS:
Council approval of the Grant Agreement with HUD for
CDBG-R funding.
For more information on this and other agenda items,
please call the City Clerk’s Office at 515-283-4209 or visit the Clerk’s Office
on the second floor of City Hall,