Regular 2.
Regular City Council Meeting
- Meeting Date:
- 11/18/2013
- TITLE
- Substantial Amendment to FY12-13 and FY13-14 Annual Action Plans / Consolidated Plan
- PRESENTED BY:
- Candi Millar
- Department:
- Planning & Community Services
Presentation:
Information
PROBLEM/ISSUE STATEMENT
Recent changes in the City’s Manufactured Home Repair Loan program include revisions from grant to loan financing. These changes have significantly slowed the expenditure rate for the program, jeopardizing the City’s ability to meet expenditure goals established by the U.S. Department of Housing and Urban Development (HUD). Allocations to the program were $133,819 in FY2012-2013 and $130,963 in FY2013-2014. As of September 30, approximately 80% of the allocation is still available for commitment to low income households needing repairs to their manufactured homes.
In order to increase the City’s ability to meet expenditure goals set by HUD for Community Development Block Grant (CDBG) funding by May 1, 2014, staff recommends transferring a total of $175,000 in funding allocated to the Manufactured Home Repair Loan program to the First Time Homebuyer program. This funding transfer would still leave approximately $40,000 in the Manufactured Home Repair Loan program. A substantial amendment to Annual Action Plans / Consolidated Plan requires both a public hearing and action to accept and utilize CDBG funding as proposed.
Staff also proposes convening a program design subcommittee through the Community Development Board to revisit current loan limitations in order to make the program more accessible to homeowners while protecting the City’s financial investment. Changes to the program would be identified and implemented through the City’s FY2014-2015 allocation process for HUD funding.
In order to increase the City’s ability to meet expenditure goals set by HUD for Community Development Block Grant (CDBG) funding by May 1, 2014, staff recommends transferring a total of $175,000 in funding allocated to the Manufactured Home Repair Loan program to the First Time Homebuyer program. This funding transfer would still leave approximately $40,000 in the Manufactured Home Repair Loan program. A substantial amendment to Annual Action Plans / Consolidated Plan requires both a public hearing and action to accept and utilize CDBG funding as proposed.
Staff also proposes convening a program design subcommittee through the Community Development Board to revisit current loan limitations in order to make the program more accessible to homeowners while protecting the City’s financial investment. Changes to the program would be identified and implemented through the City’s FY2014-2015 allocation process for HUD funding.
ALTERNATIVES ANALYZED
1) Amend the FY2012-2013 and FY2013-2014 Annual Action Plans to move $175,000 in CDBG funds from the Manufactured Home Repair program to the First Time Homebuyer program; 2) Do not amend Annual Action Plans to transfer the funding and possibly fail to attain HUD program spending goals.
FINANCIAL IMPACT
Staff recommends this transfer in order to meet HUD’s upcoming timeliness check on CDBG expenditures. The City must have no more than 1.5 times last year’s CDBG allocation in HUD’s drawdown system as of May 1, 2014.
RECOMMENDATION
Staff recommends that the City Council hold a public hearing to gather public input on the proposed use of CDBG funding and substantially amend the FY2012-2013 and FY2013-2014 Annual Action Plans to transfer $175,000 in funding previously allocated to the Manufactured Home Repair Loan program to the First Time Homebuyer program.