HomeMy WebLinkAbout(2) APPLICATION UPDATES,uf~y
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TO: Mayor 8c Council ~/
FROM: Steve Fitzgibbons, City Manager
DATE: September 18, 2009
RE: Application Updates
On the City's Round 1 CDBG infrastructure application of
$13,000,000, we are told that we may receive the award Friday,
September 25, 2009 barring any unforeseen issues.
On Round 2, our region is now scheduled to receive $297,298,360
which is more than a $100,00,000 increase over Round 1. We will be
submitting infrastructure and housing applications for these funds
when the application process is opened.
On our Neighborhood Stabilization Program Round 1 application of
over $2,300,000, we are told that our contract should be approved in
the next few days. We do not expect to hear whether or not we will
receive any of the $22,000,000 we requested in NSP2 money until
early December.
As you know, we were just awarded $15,080,000 by the Water
Development Board in ARRA funding for sewer rehabilitation on
September 17`"
Steve Fitzgibbons
From: Rebecca Underhill [rebecca@portarthur.net]
Sent: Friday, September 18, 2009 1:21 PM
To: Steve Fitzgibbons
Subject: Fw: application update
ORCA Round 1 update.
Sent from my Verizon Wireless B1ackBeny
From: "Mary Essex"
Date: Fri, 18 Sep 2009 12:04:39 -0500
To: Rebecca Underhill<rebecca@portarthur.net>
Subject: Fw: application update
--Original Message --
From: Chance Soarks
To: messex(a~portarthur.net
Sent: Friday, September 18, 2009 11:27 AM
Subject: application update
Mary,
The Port Arthur disaster recovery application is currently in upper management review. This stage of review is taking
longer than normal because we are in the process of conducting public hearings on the action plan amendment for
Round 2 of the recovery funds from HUD. All of our management staff will be back in the office on Monday, so hopefully
Port Arthur will be included in an award next Friday barring any unforeseen issues.
Thanks for checking in on it!
Chance Sparks, AICP
Senior Program Analyst
Texas Department of Rural Affairs
Disaster Recovery Division
1340 Airport Commerce Dr., Bldg. 4, Ste. 490
Austin, Texas 78741
PO Box 17900
Austin, TX 78760.7900
512-063731 (direct)
chance.soarks(a)tdra.state.bc.us
`~ Please consider the environment before pnniin9lhis a-mail.
Key Points of Proposed Changes to the Amended Action Plan for Round 2 funding
(Initially Released on August 10, 2009)
The following chart shows the new allocations to each Council of Government, and the increase in funds
that each COG will receive from TDRA's initial plan for allocation of Round 2 funding.
PROPOSED ALLOCATIONS--2nd Action Plan Amendment
Direct
Allocations
to COGS
Round 1
%
Round 2
%
Total Allocations to
COGS
%
Increase from
initial Round 2 plan
SETRPC $ 190,000,000 16.47% $ 297,298,360 18.42% $ 487,298,360 17.61% $ 36,705,843
HGAC $ 814,133,493 70.56% $ 843,837,833 52.28% $ 1,657,971,326 59.90% $ 224,538,994
LRGVDC $ 55,000,000 4.77% $ 184,920,160 11.46% $ 239,920,160 8.67% $ 44,154,641
DETCOG $ 70,000,000 6.07% $ 208,851,503 12.94% $ 278,851,503 10.07% $ 21,893,943
POOL $ 24,713,036 2.14% $ 79,080,783 4.90% $ 103,793,819 3.75% $ 7,731,798
TOTAL $1,153,846,529 100% $1,613,988,639 100% $ 2,767,835,168 100% $ 335,025,219
• In the new model, no region receives less funding than originally proposed. In fact, every region
receives an increase inlocally-controlled funds.
TDRA has adjusted the model in 2 very important ways. The new model weighs surge more heavily,
and it prominently factors in the population of people who are most targeted to receive CDBG
funds: the Low to Moderate Income (LMI) population. HUD dollars are targeted at LMI and this
population tends to have lower property values and less capacfty to absorb rising utility rate and tax
increases to cover damage repairs.
Factor Weigh
Surge 27%
Wind 26%
Rainfall 24%
LMI Population 23%
100%
• TDRA received extensive feedback requesting more local control. A total of more than $335 million
in set asides have been reallocated to the regions for local administration. This amount includes $30
million from State administration & planning funds, $174 million from the Affordable Rental
Program, and $130 million from the Recovery Enhancement Pilot Project Program. Also, the
Generator Program and the Economic Development Program have been rolled into the reg(onal
allocations.
• The new proposal provides recommended housing and non-housing allocations by region but
regions will be allowed to move funds between housing and non-housing interchangeably using
objective criteria that indicate such a need. All decisions for housing and nonhousing splits must be
made at the submission of the Method of Distribution (MOD).
• To ensure compliance with the LMI requirement TDRA will hold 2 separate nonhousing application
cycles utilizing the resultr of the MODS. The first application cycle will only consider projects that
meet the low to moderate income national objective. Once complete, if the LMI national objective
aggregate of SO% for the State has been met, TDRA will accept a second application round for all
other eligible nonhousing projects.
• Eligible economic development activities will include revolving loan funds that return program
income to the state within 6 years or less, deferred forgivable loan programs, fa4ade improvement
programs, and job training programs. No other economic development activities are eligible from
these funds.
• The proposal eliminates the state-run housing program, but TDHCA can re-establish one in areas
without capacity or entities willing to operate housing programs.
• Locally run housing programs have eligibility criteria and suggested elements for inclusion. Local
input and participation is necessary to establish maximum benefit caps for reconstruction,
rehabilitation and replacement housing.
• The $SO million set aside for Public Housing under the Affordable Housing Rental Recovery Program
was changed to allow developments with project based rental assistance.
From: "Ellen Witt" <ellen.witt(a~governor.state.tx.us>
To: "Ellen Witt" <ellen.witt overnor.state.tx.us>
Cc: "Katy Sellers" <katy.sellers(u~governorstate.tx.us>
Subject: Information regarding the distribution of CDBG funds
Deaz Local Officials,
Our office has received a number of calls about the new proposed allocations under TDRA's
draft Action Plan, which will posted today on TDRA's website. The attached document shows
the proposed allocafions for Round 2 funding. And here is some additional information
regazding the revised model for CDBG distdbu6ons:
In the new model, no region receives less funding than originally proposed. In fact, every
region receives an increase in locally-controlled funds.
• TDRA has adjusted the model in 2 very important ways. The new model weighs surge
more heavily, and it prominently factors in the population of people who are most targeted to
receive CDBG funds: the Low to Moderate Income (LMI) population. The model is based on
27% surge damage, 26% wind damage, and 24% rainfall damage, 23% LMI population.. HUD
dollars are tazgeted at LMI and this population tends to have lower property values and less
capacity to absorb rising utility rate and tax increases to cover damage repairs.
TDRA received extensive feedback requesting more local control. A total of more than
$335 million in set asides have been reallocated to the regions for local administration. This
amount includes $30 million from State administration & planning funds, $174 million from the
Affordable Rental Program, and $130 million from the Recovery Enhancement Pilot Project
Program. Also, the Generator Program and the Economic Development Program have been
"rolled" into the regional allocations for use however they see fit. The new proposal provides
recommended housing and nonhousing allocations by region but regions will be allowed to move
funds between housing and nonhousing interchangeably using objective criteria that indicate
such a need.
If you have any questions, please feel free to call our office.
Thank you,
Ellen Witt
Ellen Witt
Director of Disaster Recovery and Renewal
Office of the Governor
P.O. Box 12428
Austin, Texas 78711
512.936.3857 (phone)
512.936.4318 (fax)
ellen.witt(ci!governor.state.tx.us
Steve Fitzgibbons
From: Mary Essex [messex@portarthur.net]
Sent: Friday, September 18, 2009 2:36 PM
To: Stephen Fitzgibbons
Subject: Fw: Status of City of Port Arthur's NSP grant application
- Original Message --
From: Dewell Fears
To: Marv Essex
Sent: Thursday, September 17, 2009 8:55 AM
Subject: RE: Status of City of Port Arthur's NSP grant application
Ms. Essex,
The contract has been routed to upper management and is most likely in the hands of our legal department right now. As
soon as it gets approved by them, it will be given back to Marni so she can scan, file, and email you a copy before mailing
the official copy. Hopefully this should be before the end of business tomorrow. If I find out anything else between now
and then, I'll give you a call or email.
Thanks
-----Original Message--
From: Mary Essex [maifto:messex@portarthur.net]
Sent: Wednesday, September 16, 2009 10:49 AM
To: Dewell Fears
Subject: Status of City of Port Arthurs NSP grant application
Hello:
Please give the city an update on its NSP grant application.
Thank you for your assistance.
Mary E. Essex
Grants Program Administrator
P. O. Box 1089
Port Arthur, Texas 77641-1089
Telephone#:(409) 983-8251
Fax#:(409) 983-8255
Email: messexCrDportarthur.net