2009/03/25 Council Agenda Packet

8 Staff Report for Community Development Block Grant 2009 March 25, 2009 2009 Annual Allocation Process The Citizen's Committee for Housing and Community Development called for and received proposals for the expenditure,of the City of Everett's Community Development Block Grant program and other available funding. The deadline for application was December 19, 2008. During January and February the Committee studied each proposal and interviewed each proponent. Five meetings and approximately ten hours of interviews took place. The Committee spent approximately 15 hours in meetings and additional hours at home reviewing proposals. The City is estimating the City's 2009 Community Development Block Grant will be $900,000.00. The estimate is due to the U.S Government's not passing a full budget for fiscal year 2009. The estimated 2009 CDBG grant is less than the 2008 allocation of $919,000.00, the 2007 allocation of $950,117.00, the 2006 allocation of $953,249.00, the 2005 allocation of $1,063,872.00, and the 2004 allocation of $1,127,000.00. This year the City is also able to receive two other sources of funding: CDBG Stimulus funding from the American Recovery and Reinvestment Act (ARRA) passed recently by Congress ($249,826.00). The Committee recommends funding public services at the maximum allowed by HUD, 15 percent of the grant. 15% of the estimated $900,000.00 the City will receive this year is $135,000.00. The Committee recommends using the remaining 85% of the estimated 2009 CDBG, $765,000.00 for non-public service projects. There are also Housing Trust 2060, HOME, and CHIP funds available to fund non-public service projects. The Committee recommends using $198,893.50 in Housing Trust 2060 funds, $430,305.00 (estimated) in HOME funds, $250,712.00 in reallocated HOME funds, and $68,860.00 in CHIP revolving loan funds to supplement 2009 CDBG funds for non-public service funding. Starting in 2009, at the request of our funding source , the U.S. Department of Housing and Urban Development, CHIP rehabilitation and administration funds have been combined into one fund (197) and are managed as a single source of revenue and budget. The total Amount proposed for non-public service projects is $1,926,122.60. If the Department of Housing and Urban Development reduces or increases this allocation, each item will be reduced or increased an equal percentage, including the Community Housing Improvement Program and Community Development Block Grant Administration. If a reduction is large enough to cause a burden, as determined by the staff, a new budget will be returned to the City Council for review and approval. The Committee is recommending no funding for Neighborhood Improvement Projects (NIP) this year as the City and neighborhoods work on spending funds from previous years. Staff is working to accelerate project selection and spending of these funds and expects the Committee to recommend funding of NIPs again in 2010. 8 4