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HomeMy WebLinkAboutItem 09 Fiscal Year 2013-2014 CDBG and HOME Recommended Funding Allocations AGENDA ITEM SUMMARY Meeting Date: 4/15/2013 Meeting Type:Regular Meeting Staff Contact/Dept.: Kevin Ko, DPW Staff Phone No: 541-726-2302 Estimated Time: 20 minutes S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Community and Economic Development and Revitalization ITEM TITLE: FISCAL YEAR 2013-2014 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) RECOMMENDED FUNDING ALLOCATIONS ACTION REQUESTED: 1. Conduct a Public Hearing on the recommended FY2013-2014 CDBG and HOME funding allocations. 2. Adopt/not adopt the FY2013-2014 funding allocations as shown on Attachment 2, with such modifications as the Council deems appropriate. ISSUE STATEMENT: The Springfield Community Development Advisory Committee (CDAC) has reviewed six proposals and prepared CDBG and HOME funding recommendations for the FY2013-2014 program year. The recommendations are being forwarded to the City Council for consideration and approval. The CDAC’s funding recommendations are consistent with Springfield’s local funding priorities and identified community development needs as documented in the 2010 Eugene- Springfield Consolidated Plan. ATTACHMENTS: 1. Council Briefing Memo, dated 4/05/2013 2. CDBG and HOME Summary of Proposals and CDAC Recommended Allocations. (Complete applications are a part of the record for this decision and available for Council and public review upon request.) 3. Table of FY 2013-2014 CDBG and HOME program funding. DISCUSSION/ FINANCIAL IMPACT: The City of Springfield will be receiving approximately $429,897 of CDBG funds and $279,910 of HOME Investment Partnerships Program funds for the fiscal year beginning July 1, 2013 and ending June 30, 2014 (FY2013-14). This is a 5% reduction from last year in both funding categories. These amounts, and approximately $102,000 of previously unallocated funds, are available. Please see the Council Briefing Memo (Attachment 1) for details and discussion regarding the CDBG and HOME programs allocation process and the funding reductions to CDBG and HOME programs. M E M O R A N D U M City of Springfield Date: April 5, 2013 COUNCIL BRIEFING MEMORANDUM To: Gino Grimaldi From: Len Goodwin, DPW Director Kevin Ko, Community Development Specialist Subject: FY2013-14 CDBG and HOME Recommendations ISSUE: The Springfield Community Development Advisory Committee (CDAC) is forwarding its recommendations for the FY2013-14 CDBG and HOME programs funding to the City Council for review and consideration. BACKGROUND: The City of Springfield is expecting to receive approximately $429,897 of CDBG funds and $279,910 of HOME Investment Partnerships Program funds for the fiscal year beginning July 1, 2013 and ending June 30, 2014 (FY2013-14). This is based on information provided by HUD, advising jurisdictions to anticipate a 5% reduction of CDBG and HOME funds from the previous year, although the final amounts have yet to be determined. This uncertainty is caused by the ongoing sequestration of the federal budget. Funding for both programs has been significantly reduced from the previous years, and continue a downward trend in program funding: CDBG applicants are encouraged to consider presenting their request in the form of a no-interest loan instead Y2013-14 is the third year of the 3-year aggregation period for downtown slums/blight projects. There is one pproximately $102,500 of unallocated HOME funds are also available in this funding cycle, a result of nding of a grant. This will generate program income as loans are paid back and help insure the long-term viability of the CDBG program. Currently, 90% of all CDBG allocations are made as grants. F application for downtown S/B funds in this funding round. SEDA is applying for CDBG funds to assist with the purchase of a property at the future location of the downtown Mill Plaza. NEDCO is applying for CDBG funds to make exterior improvements to the Sprout! Regional Food Hub. Both of these projects are eligible under the CDBG slums/blight national objective. A unallocated funds from last year. At the public hearing on January 24, 2013 the CDAC recommended fu 200320042005200620072008200920102011201220132014 CDBG$691,000 $758,000 $739,000 $700,547 $629,375 $628,101 $604,981 $612,975 $663,255 $552,598 $452,523 $429,897  HOME$485,100 $490,545 $490,360 $465,325 $438,642 $435,512 $421,298 $469,261 $464,954 $408,479 $297,642 $279,910  Total$1,176,10$1,248,54$1,229,36$1,165,87$1,068,01$1,063,61$1,026,27$1,082,23$1,128,20$961,077 $750,165 $709,807  $200,000  $300,000  $400,000  $500,000  $600,000  $700,000  $800,000  Springfield Allocations of CDBG and HOME Funds  2003‐2014 Attachment 1, Page 1 of 2 Attachment 1, Page 2 of 2 sing equests for Proposals were issued on January 25, 2013. $240,420 of HOME funds and $199,433 of CDBG ted . n. . he CDAC has made funding recommendations for all six proposals. Five of the proposals are being m is OME he amounts being recommended by the CDAC reflect the best estimate of CDBG and HOME funding rent, tions RECOMMENDED ACTION: cil approve funding for the six proposals at the levels shown in Attachments set-asides totaling $230,464 for CDBG and $141,987 for HOME for the following activities: City administered housing programs, grant administration and planning, social service programs administered by the Intergovernmental Human Services Commission and operating assistance for area Community Hou Development Organizations (CHDO). Please see Attachment 3 for set-aside details. R funds were made available in the RFP. Selected projects and services will provide decent, safe and affordable housing for persons of low income, create or sustain a suitable living environment and provide economic opportunities for persons of low and moderate income. All applicants were instructed to indicate in their application if their funding request was for a grant or a no-interest loan. The deadline for receiving comple proposals from all applicants was March 15, 2013. The City received six requests for funding totaling $580,500 Three requests were for grants, two requests were for loans and one was a combination of both. A total of $277,670 in loans were requested. All applications were forwarded to the CDAC for review and consideratio The CDAC held a public hearing on April 4, 2013 to hear testimony, review proposals and develop funding recommendations. 10 persons attended the public hearing, with 5 persons providing testimony to the CDAC The meeting began at 5:30pm and adjourned at 7:15pm. T recommended for funding at levels below what was requested. The Hatch Business Incubator Progra being recommended for funding at the amount requested by NEDCO. The request by SEDA to acquire a downtown property at the future site of the Mill Plaza is the only application in the downtown slums/blight category. The Glenwood Place proposal by HACSA and Metropolitan Housing was awarded $96,500 of H funds in FY2012-13. This project has some flexibility regarding how HOME and CDBG funds are portioned, which helped with the CDAC’s deliberation process. T available at the time of the public hearing. It is anticipated that the final HUD awards will be slightly diffe and staff will adjust the final amounts equally among the projects, unless otherwise instructed by Council. Attachment 2 contains a summary of the proposals and the CDAC’s funding recommendations. All applica are available for Council review. The CDAC recommends that Coun 2 and 3, and approve funding the recommended set-asides for housing programs, grant administration, planning activities and social service programs as shown in Attachment 3. Attachment 2, Page 1 of 3 City of Springfield Fiscal Year 2013-2014 Community Development Block Grant (CDBG) and HOME Investment Partnerships Program Summary of Proposals 1. Project: Springfield Service Center Renovation Location: 1025 G Street, Springfield Developer: Catholic Community Services Request: $35,000 CDBG Loan Total Proj. Cost: $165,000 Catholic Community Services is requesting $35,000 of CDBG funds to assist with the renovation of the Springfield Community Service Center at 1025 G Street. Renovation activities include the intake, waiting and resource distribution areas, and the replacing the deteriorated parking lot. The Springfield Community Service Center is the largest distributor of emergency food in Springfield. Approximately 375 tons of food was dispensed last year, serving more than 12,000 individuals. Persons in need may also receive clothing, hygiene and household items, assistance with utility bills, bus passes and other necessary assistance. The center hosts the Soaring Hope meal program and day center for homeless persons and families. It is also one of two Springfield sites for the Egan Warming Centers. CDAC Recommended: $17,500 CDBG Loan Eligibility: Low and Moderate Income Limited Clientele Benefit 2. Project: R Street Housing Development Location: R Street (south side), just east of 11th Place Developer: Springfield/Eugene Habitat for Humanity (HfH) Request: $60,500 HOME loan Total Proj. Cost: $893,175 The Springfield/Eugene Habitat for Humanity is requesting $60,500 of HOME funds for private infrastructure development to support seven single family homes on a lot owned by HfH at R Street near 11th Place. The funds will be used to pay surveying and platting services and fees, architectural and engineering costs, planning and permit fees, utility and infrastructure development costs, and site development. While no particular design for the homes has been selected, the homes will be Energy Star certified and flexible enough to serve families needing 2, 3 or 4 bedrooms. This is a new construction housing project that will provide affordable homeownership for families between 30% and 60% of the area median income. HfH is nearing the completing of the 10 unit Meyer Estates subdivision. The City contributed $245,000 of HOME funds to Meyer Estates over four funding cycles. CDAC Recommended: $30,250 HOME Loan Eligibility: Low and Moderate Income Limited Clientele Benefit Attachment 2, Page 2 of 3 3. Project: Acquisition of Downtown Property for Plaza Development Location: 138 Main Street, Springfield Developer: Springfield Economic Development Corporation (SEDA) Request: $100,000 CDBG Loan Total Proj. Cost: $750,000 SEDA is seeking $100,000 of CDBG to assist with the acquisition of a downtown property at 138 Main Street. The property is at the location of the planned downtown Mill Plaza, this acquisition is consistent with the adopted Downtown Urban Design Plan. There is a commercial building currently on the site, occupied by two commercial tenants. There are no residential units on the site. Although development of the Mill Plaza will not occur for several years, the opportunity to purchase this key piece of property is immediate. Upon acquisition, SEDA and the City will partner to manage and operate the building with no anticipated changes in use. Current tenants will be allowed to continue their current lease arrangements. As other adjacent properties are acquired and redeveloped over the next several years, SEDA will make plans to clear and redevelop the site as a public plaza. Relocation assistance, if necessary, will be provided to the commercial tenants prior to redevelopment. The Mill Plaza is envisioned as the City’s “living room”, creating the needed civic gathering place identified in the Urban Design Plan. It is considered a catalyst project, and an important step in the redevelopment of downtown as a whole. SEDA is a government agency and was created in 2004 by the City of Springfield and Lane County, for the purpose of eliminating blight in areas within the Agency’s jurisdiction in ways which will foster a business climate, improve quality of life and encourage private investment in our community. This is SEDA’s first CDBG application. CDAC Recommended: $50,000 CDBG Loan Eligibility: Elimination of Slums and Blight, Area Basis 4. Project: Glenwood Place Location: 4224 Franklin Blvd, 249 Brooklyn Blvd., Glenwood Developer: Housing and Community Services Agency of Lane County (HACSA) Request: $175,000 CDBG grant, $140,000 HOME loan Total Proj. Cost: $22,665,550 HACSA, in partnership with Metropolitan Affordable Housing is seeking $315,000 of CDBG and HOME funding to support the development of Glenwood Place, a multi-family mixed used development located in Glenwood. When completed, the development will consist of 149 affordable workforce housing units and ground floor commercial space fronting Franklin Blvd. Glenwood is located in a transit-rich area, positioned between Eugene and Springfield, with easy access to the U of O, LCC, Peace Health Medical Center, and both downtowns. The workforce housing within the development will consist of studio, one-bedroom and two-bedroom apartments set at rent levels affordable to individuals and families earning 30-60% of median area income. The development will include community spaces and meeting rooms, open areas, and parking for the commercial and residential tenants. The development will be a catalyst for new economic activity along the Franklin Blvd. corridor, and is consistent with the goals of the Glenwood Refinement Plan. If awarded, these funds may not be used by the developers until the site has received environmental clearance, and has been annexed to the City of Springfield. The annexation process has been initiated. HACSA received a HOME grant of $96,500 in FY2012 for predevelopment costs associated with Glenwood Place. CDAC Recommended: $81,580 CDBG Grant, $210,170 HOME Loan Eligibility: Low and Moderate Income Housing, LMI Jobs Attachment 2, Page 3 of 3 5. Project: Hatch Microenterprise Development Program Locations: 418 A Street, 216 Main Street and 1488 18th Street, Springfield Developer: Neighborhood Economic Development Corporation (NEDCO) Request: $30,000 CDBG Grant Total Proj. Cost: $190,505 NEDCO is requesting $30,000 in CDBG funding to assist 20 low-income Springfield microbusiness owners through their Hatch Business incubator: Microenterprise Development Program. CDBG funds will be used to offer direct scholarships that will offset the $1,800 annual subscription cost to the clients for participation and to build program capacity. The services provided to Hatch participants include on-site and off-site technical small business assistance, classes and workshops, and a series of entrepreneurial boot camps directed at specific industry clusters including food and social enterprise. Hatch Business Incubator sites are located at the NEDCO building on Main Street, at the SPROUT! Regional Food Hub and at 18th Street and Mohawk Blvd. Hatch serves three levels of business from concept to established and growing businesses: Activator (pre-launch phase); Incubator (operating business); and Accelerator (established businesses). An extensive menu of services which includes training, financial assistance, networking and access to physical infrastructure has been developed for each level. Hatch generates positive economic activity, especially in downtown Springfield. Hatch is based on proven microenterprise and community development principles wherein businesses receiving services gain skills not only to build their own business, but to reinvest in their community. NEDCO has received past CDBG funding for Hatch in 2009, 2010 and 2012. CDAC Recommended: $30,000 CDBG Grant Eligibility: Low and Moderate Income Microenterprise Assistance 6. Project: Marketplace@Sprout! Exterior Improvements Location: 418 A Street, Springfield Developer: NEDCO Request: $40,000 CDBG loan Total Proj. Cost: $80,000 The Neighborhood Economic Development Corporation (NEDCO) is requesting $40,000 of CDBG funds to assist with Phase 3 of the Sprout! Regional Food Hub project, which consists of improvements to the grounds and exterior of the Sprout! facility to allow it to better function as an outdoor marketplace and home of the seasonal Springfield Farmers’ Market . The food hub is located in the former Springfield Christian Church at 4th and A Streets in downtown Springfield. Food entrepreneurs and micro-businesses have access to the fully equipped commercial kitchen to prepare their wares and build their businesses. The CDBG funds will provide durable hardscaping, way finding components, and functional landscaping to allow the seasonal market to generate high levels of attendance. The Sprout! food hub received $153,577 in CDBG funding for acquisition of the site in 2011, and $58,000 of CDBG in 2012 to assist with the purchase of commercial kitchen equipment. CDAC Recommended: $20,353 CDBG Grant Eligibility: Elimination of Slums and Blight, Area Basis FY2013-14 CDBG and HOME Funding Recommendations CDBG Grant $ 429,897 HOME Grant 279,910$ Previous Years $ - Previous Years 102,496$ CDBG Available $ 429,897 HOME Available382,406$ Applicant Project Description Amount Requested CDB RecommeG nded HOME Recommended Loan or Grant Catholic Community Services Renovation of the Springfield CService Center and parking lot ommunity $ 35,000 17,500$ CDBG Loan Springfield/Eugene Habitat forHumanity Private infrastructure improvemsubdivision on R Street ents to 7 unit $ 60,500 30,250 $ HOME Grant Springfield Economic DevelopCorporation ment Purchase of downtown properdevelopment of downtown Millty for future Plaza $ 100,000 50,000$ CDBG Loan HACSA, Metropolitan AffordabHousing le Acquisition and development omixed-use development f Glenwood Place $ 315,000 $ 81,580 210,170$ HOME Loan CDBG Grant NEDCO, Hatch Microbusiness assistance for 2Springfield businesses throughBusiness Incubator Program. 0 low-income the Hatch $ 30,000 30,000$ CDBG Grant NEDCO, Sprout! Exterior improvements to SprHub out! Regional Food $ 40,000 20,353$ CDBG Grant Total Requested $ 580,500 Total Recommended $ 439,853 199,433$ 240,420$ Available Funds 199,433$ 240,420$ Carryover to FY2014-15 0$ -$ FY2013-14 Set asidesGrant Planning and Administration 85,979$ 27,991$ City Housing Programs 80,000$ 100,000$ Human Services Commission 64,485$ -- CHDO Operating Assistance -- 13,996$ Total Set Asides 230,464$ 141,987$ Attachment 3