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HomeMy WebLinkAbout(2) APPLICATION UPDATES,uf~y Ewe %r+ 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