2011/03/30 Council Agenda Packet

1 Staff Report for Community Development Block Grant, HOME, and Housing Trust Funds— 2060 April 6, 2011 The Citizen's Committee for Housing and Community Development reviewed proposals for the expenditure of the City of Everett's Community Development Block Grant program and other available funding for housing. The deadline for grant applications was December 20, 2010. The Committee studied each proposal and interviewed each proponent. Five meetings and approximately ten hours of interviews took place. The Committee spent approximately 13 hours in meetings and additional hours at home reviewing the Consolidated Plan and proposals for Community Development Block Grant spending. The City's 2011 Community Development Block Grant is estimated to be $952,185.95. The Committee recommends funding public services at the maximum allowed by HUD, 15 percent of the grant. Fifteen percent of$952,185.95 is $142,827.89. There are also public service funds from prior years available for reallocation in the amount of$16,367.74. The total recommended for public service activities is $159,195.63. The Committee recommends using the remaining 85% of the estimated 2011 CDBG, $809,358.06 plus $208,821.52 in CDBG available for reallocation for eligible non-public service projects. The total recommending for non-public service CDBG funding is $1,018,179.58_ There are also Housing Trust 2060, HOME, and CHIP rehabilitation funds available to fund non-public service projects. The Committee recommends using $138,892.12 in Housing Trust 2060 funds for non-public service funding. Starting in 2009, at the request of 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 priority for HOME funds has been the CHIP Rehabilitation loan fund so $451,685.00 in estimated 2011 funding and reallocation of$200,000.00 will be allocated to CHIP for low income homeowner rehabilitation. The total amount proposed for non-public service projects is $1,357,071.70. 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 Annual Action Plan was available for public comment for 30 days commencing March 5, 2011 and ending on April 5, 2010. Each one of the members of the Committee provided a valuable contribution to this recommendation. This group was very dedicated while performing this difficult task. Staff congratulates the Committee for a job well done and thanks them for their time and effort. Participating Committee members were: Rick Dorris, Rock Dorsey, Christina Aho, David Simpson, Kaye Phinney, Greg Campbell, Joyce Sieminski, Peter Sontra - Chair, Graham Anderson, and Tim Knopf. The recommended funding allocations to agencies/programs and brief program descriptions follow. 6