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Consent   1.N.
Regular City Council Meeting
Meeting Date:
10/14/2014
TITLE
Budget reallocations to support the Foreclosure Acquisition / Rehabilitation Program
PRESENTED BY:
Candi Millar
Department:
Planning & Community Services
Presentation:

PROBLEM/ISSUE STATEMENT

The City’s FY14-15 Community Development Block Grant (CDBG) allocation was insufficient to fund the popular Foreclosure Acquisition / Rehabilitation program in July 2014. Staff is requesting changes in the budget to reflect the following allocations to support this program:
  • $110,000 in program income from the sale of program properties.
  • Up to $50,000 from the Home Reinvestment Revolving Loan Program.
  • $2,990 from the FY2013-2014 CDBG First Time Homebuyer program.
  • $32,575 from the FY2013-2014 Foreclosure Acquisition / Rehabilitation Program.

ALTERNATIVES ANALYZED

City Council may:
  • Approve changing the budget or;
  • Disapprove changing the budget.

FINANCIAL IMPACT

This budget change would commit approximately $195,000; adequate funding to purchase and rehabilitate a foreclosed property for sale to a low income household. Total costs to acquire and rehabilitate homes through this program range from $153,000 to $193,000 and averaged just under $180,000.

RECOMMENDATION

Staff and the Community Development Board recommend City Council approve this budget change to support the Foreclosure Acquisition/Rehabilitation Program.

APPROVED BY CITY ADMINISTRATOR

Attachments

No file(s) attached.