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HomeMy WebLinkAboutItem 10 Fiscal Year 2014-2015 CDBG and Home Investment Partnerships Program Recommended Funding Allocations AGENDA ITEM SUMMARY Meeting Date: 4/7/2014 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 2014-2015 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) RECOMMENDED FUNDING ALLOCATIONS ACTION REQUESTED: 1. Conduct a Public Hearing on the recommended FY2014-2015 CDBG and HOME funding allocations. 2. Adopt/not adopt the FY2014-2015 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 five proposals and prepared CDBG and HOME funding recommendations for the FY2014-2015 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 3/26/2014 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 2014-2015 CDBG and HOME program funding. DISCUSSION/ FINANCIAL IMPACT: The City of Springfield will be receiving $451,142 of CDBG funds and $299,575 of HOME Investment Partnerships Program funds for the fiscal year beginning July 1, 2014 and ending June 30, 2015 (FY2014-15). This is a slight reduction in CDBG and a slight increase in HOME compared to last year. 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. Attachment 1, Page 1 of 2 M E M O R A N D U M City of Springfield Date: March 26, 2014 COUNCIL BRIEFING MEMORANDUM To: Gino Grimaldi From: Len Goodwin, DPW Director Kevin Ko, Community Development Analyst Subject: FY2014-15 CDBG and HOME Recommendations ISSUE: The Springfield Community Development Advisory Committee (CDAC) is forwarding its recommendations for the FY2014-15 CDBG and HOME programs funding to the City Council for review and consideration. BACKGROUND: The City of Springfield will be receiving $451,142 of CDBG funds and $299,575 of HOME Investment Partnerships Program funds for the fiscal year beginning July 1, 2014 and ending June 30, 2015 (FY2014-15). This is based on final allocations information recently released by HUD. Compared to last year, CDBG is reduced by approximately 6%, and HOME is increased by approximately 6%. Funding for both programs has been significantly reduced from the previous years, and continue a downward trend in program funding: FY2014-15 is the first year of the 3-year aggregation period for downtown slums/blight projects. There are three applications for downtown S/B funds in this funding round. SRDC is applying for CDBG funds to assist with the renovation of a property the organization recently purchased at 331-335 Main Street. The Emerald Empire Art Association is applying for funds to add display lighting to the window facing Main Street, and a portion of the funds that NEDCO is requesting will provide business development services for five existing downtown businesses. Approximately $102,500 of additional HOME funds are also available in this funding cycle, a result of HOME program income and some unallocated funds from last year. At the public hearing on January 16, 2014 the CDAC recommended funding set-asides totaling $313,648 for CDBG and $203,952 for HOME for the following activities: Grant administration and planning, program and project delivery costs, social service programs administered by the Intergovernmental Human Services Commission and operating assistance for area Community Housing Development Organizations (CHDO). Please see Attachment 3 for set-aside details. 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 CDBG $739,000 $700,547 $629,375 $628,101 $604,981 $612,938 $663,255 $552,598 $452,523 $479,568 $451,142 HOME $490,360 $465,325 $438,643 $435,511 $421,320 $469,261 $464,954 $408,479 $297,643 $283,743 $299,575 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 Springfield allocations of CDBG and HOME funds 2004 - 2014 Attachment 1, Page 2 of 2 Requests for Proposals were issued on January 17, 2014. 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 completed proposals from all applicants was March 10, 2014. The City received five requests for funding totaling $331,921. All five requests were for grants. All applications were forwarded to the CDAC for review and consideration. The CDAC held a public hearing on March 20, 2014 to hear testimony, review proposals and develop funding recommendations. 17 persons attended the public hearing, with nine persons providing testimony to the CDAC. The meeting began at 5:30pm and adjourned at 7:10pm. The CDAC has made funding recommendations for all five proposals. The NEDCO proposal is being recommended for funding at $8,161 less than the amount that was requested. All other proposals are being recommended for full funding. Attachment 2 contains a summary of the proposals and the CDAC’s funding recommendations. All applications are available for Council review. RECOMMENDED ACTION: The CDAC recommends that Council approve funding for the five proposals at the levels shown in Attachments 2 and 3, and approve funding the recommended set-asides for housing programs, grant administration, program and project delivery, planning activities and social service programs as shown in Attachment 3. Attachment 2, Page 1 of 3 City of Springfield Fiscal Year 2014-2015 Community Development Block Grant (CDBG) and HOME Investment Partnerships Program Summary of Proposals 1. Project: SRDC Downtown Demonstration Project Location: 331-335 Main Street, Springfield Developer: Springfield Renaissance Development Corporation Request: $35,000 CDBG Grant Total Proj. Cost: $35,000 The Springfield Renaissance Development Corporation (SRDC) is requesting $35,000 of CDBG funds to assist with the renovation of a downtown property. Located at 331-335 Main Street, the property is an existing single story structure with three store fronts. Renovation activities include façade improvements, awnings, electrical and lighting improvements, interior renovations and painting. Once the value-added renovations are complete and the commercial space occupied, SRDC plans to sell the property to a private party. The project will demonstrate how relatively small capital investments in existing downtown structures can dramatically improve the business potential of these buildings, benefit adjacent businesses, increase the tax-base and add to the revitalization of the downtown commercial core. The SRDC board is made up of a group of civic-minded volunteers who are committed to improving Springfield downtown. The agency was the developer and driving force behind the Wildish Theater reconstruction. Completed in 2007 the Wildish Theater is a major benchmark in the growing downtown revitalization effort. Recommended: $35,000 CDBG Eligibility: Elimination of Slums and Blight, Area Basis 2. Project: Business and Community Development on A Street Location: 405 A Street, Springfield Developer: Neighborhood Economic Development Corporation (NEDCO) Request: $75,000 CDBG Grant Total Proj. Cost: $828,125 NEDCO is requesting $75,000 of CDBG funds to provide business incubator services through the Hatch Program and through a cooperative agreement with Huerto de la Familia. The agency plans to use $64,500 to serve 35 clients through its Hatch Business Incubator Program and 3 clients through services delivered by Huerto de la Familia. Services will include workshops and classes, ongoing coaching, business planning and development, access to financial management tools, and outreach with a focus on the Latino community. These services are eligible under the CDBG Low and Moderate-Income (LMI) national objective, and will be provided by NEDCO from its three downtown locations: the Sprout! Regional Food Hub at 418 A Street, the Hatch Business Development Center at 212 Main Street, and at an existing building located at 405 A Street, across the street from Sprout! NEDCO will be leasing the building from its current owner. NEDCO is also planning to use $7,500 of CDBG to provide up to 150 hours of Retail Business Incubator assistance to up to five existing downtown businesses. Services include merchandising assistance, secret shopper services and other retail specific training and support. $3,000 of CDBG is earmarked for outreach and marketing support. These services and activities are eligible under the Slums and Blight (S/B) national objective. This is a service activity, and the total project cost reflects the total anticipated annual cost of administering the Local Works suite of programs, which includes the Hatch Business Incubator Program. NEDCO is a leader and active proponent of downtown revitalization, and has partnered with the City on several important downtown projects, including the Sprout! Food Hub, the NEDCO Building and the Springfield Farmers’ Market. Recommended: $66,879 Total CDBG Grant Eligibility: Low and Moderate Income Limited Clientele Benefit - $56,379 Elimination of Slums and Blight, Area Basis - $10,500 Attachment 2, Page 2 of 3 3. Project: Window Lighting and Display Location: 500 Main Street, Springfield Developer: Emerald Empire Art Association Request: $8,000 CDBG Grant Total Proj. Cost: $8,780 The Emerald Empire Art Association (EEAA) is requesting $8,000 of CDBG funds to assist with renovation of the commercial storefront at the Emerald Art Center. Located at 500 Main Street, the Emerald Art Center is in the heart of downtown. The CDBG funds will be used to install front window lighting and display structures to highlight the Art Center and provide a more attractive, welcoming environment to downtown visitors. The new LED lighting will replace existing halogen lights, and add additional lighting to enhance the evening and nighttime façade of the Art Center. The new LED fixtures will last longer and be a cost and energy saving improvement to the facility. Currently, the four large windows facing Main Street are mainly unlit and it is often difficult to determine if the Art Center is open for business. The Art Center is a key stopping point during the 2nd Friday Art Walk which occurs each month in downtown, typically attracting 100-200 visitors. Admission to the Art Center is free to the public, and is often visited by students and persons of low and moderate incomes. Improving the Main Street façade of the Emerald Art Center will further enhance the pedestrian environment of downtown, and will complement the streetlight improvements currently planned for downtown. The mission of the Emerald Empire Art Association is to promote, teach and display art for the benefit of the local community. The EEAA has been in existence for over 50 years. CDBG has been used in the past to complete a major renovation of the art center, and more recently to make repairs to its exterior stucco. The Emerald Art Center was the first use of CDBG funds for downtown revitalization. Recommended: $8,000 CDBG Grant 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: $186,306 HOME Grant Total Proj. Cost: $11,445,684 (Phase 1) HACSA, in partnership with Cornerstone Community Housing (formerly Metropolitan Affordable Housing) is seeking $186,306 of HOME funding to support the development of Glenwood Place, a multi-family mixed-use development located in Glenwood. When completed, the development will consist of 130 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 is projected to be a catalyst for new economic activity along the Franklin Blvd. corridor, and is consistent with the goals of the Glenwood Refinement Plan. Previously, HACSA received a HOME grant of $96,500 in FY2012 for predevelopment costs associated with Glenwood Place and a combined CDBG/HOME allocation of $291,750 in FY2013 to assist with the development of the project. The annexation of the parcel has been completed. HACSA and Cornerstone will be applying to the State for an allocation of Low income Housing Tax Credits to provide much of the development capital for phase 1 of the two phase project. Recommended: $186,306 HOME Grant Eligibility: Low and Moderate Income Housing Attachment 2, Page 3 of 3 5. Project: Community Service Center, Walk-in Freezer/Refrigerator Locations: 1025 G Street, Springfield Developer: Catholic Community Services (CCS) Request: $27,615 CDBG Grant Total Proj. Cost: $149,625 Catholic Community Services (CCS) is requesting $27,615 in CDBG funding to purchase a walk-in freezer/refrigerator combination, to be installed at the Springfield Community Service Center at 1025 G Street. CCS operated a food box distribution program from this facility, and the freezer/refrigerator will allow the program to better store and distribute frozen and perishable food items to its low and very-low income clientele. This activity is part of a larger renovation being undertaken by CCS to expand their food box distribution service and better accommodate the growing numbers of individuals and families that use the program. The existing space is cramped and can only handle a few people at a time. People needing this service are required to wait in line for extended periods of time in order to get their food box. CCS is in the process of renovating the former sanctuary space to be its new food distribution area. The new area will be more spacious and efficient, and will greatly improve the ability of CCS to meet the growing needs of the community. The permanently installed unit will provide 250 cubic feet of freezer space and 250 cubic feet of refrigerator space. CCS is the largest distributor of emergency food in Springfield. Last year the agency distributed over 375 tons of food, benefiting over 12,000 persons. In addition to the food distribution program, CCS also distributes free clothing, hygiene and household items to those in need. CCS provides many other needed services from its Springfield facility including, utility assistance, assistance with prescription medication, a location for the Egan Warming Center, and participation in the Overnight Parking program. Recommended: $27,615 CDBG Grant Eligibility: Low and Moderate Income Limited Clientele Benefit FY2014-15 CDBG and HOME Funding Recommendations $ 451,142 299,575$ Previous Years $ - Previous Years 102,496$ LMI = Low-Moderate Income Total CDBG $ 451,142 Total HOME 402,071$ S/B = Slums & Blight Applicant (National Objective)Project Description CDBG Requested CDBG Recommended HOME Requested HOME Recommended Loan or Grant Springfield Renaissance Development Corporation (S/B)Downtown Demonstration Project $ 35,000 35,000$ -$ -$ CDBG Grant NEDCO, part 1 (LMI)Business and Community Development on A Street, Hatch Business Incubator $ 64,500 56,379$ -$ -$ CDBG Grant NEDCO, part 2 (S/B)Business and Community Development, Downtown Business Assistance $ 10,500 10,500$ -$ -$ CDBG Grant Emerald Empire Art Association (S/B)Window Lighting and Display $ 8,000 8,000$ -$ -$ CDBG Grant HACSA, Cornerstone Community Housing (HOME)Glenwood Place, Phase 1 $ - -$ 186,306$ 186,306$ HOME Grant Catholic Community Services (LMI)Community Service Center, Walk-in Freezer/Refrigerator $ 27,615 27,615$ -$ -$ CDBG Grant Total Requested $ 145,615 186,306$ 137,494$ 186,306$ 137,494$ 198,119$ (0)$ 11,813$ 90,228$ 29,958$ 85,749$ 59,016$ 70,000$ 100,000$ 67,671$ -$ -$ 14,979$ 313,648$ 203,952$ Available S/B, 3-year aggregate (est) $ 285,843 S/B Requests (Y1)53,500$ S/B Recommendations (Y1)53,500$ Total Set Asides Project/Program Delivery FY2014-15 Set Asides Grant Planning and Administration City Housing Programs Human Services Commission CHDO Operating Assistance The 3-year estimate is 3X the annual CDBG allocation X 0.21. FY2014-15 is Year 1 (Y1) of the 3-year aggregating period. Actual HOME Allocation Actual CDBG Allocation Total Recommended Available Funds Carryover to FY2015-16 Calculation for Slums/Blight Expenditures At t a c h m e n t 3 , P a g e 1 o f 1