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Home My WebLink AboutPR 16681: TRANSFER OF CDBG FUNDS TO HOUSING Memo To: Councilmembers From: Stephen Fitzgibbons; City Manager CC: Date: 10/11/2011 Re: Community Development Block Grant The Department of Housing and Urban Development permits cities to use Community Development Block Grant (CDBG) funds to perform public service activities. Public services activities include, but are not limited to child care, health care, recreation programs, public safety services and homebuyer down payment assistance. Each community that receives CDBG funds must complete a Financial Summary report at the end of its Program year. The Financial Summary report details the percentage of funds expended on public service activities and the calculations are based on the total grant awarded for the year plus total program income received in the preceding program year and the amounts of unexpended balances for each public service activity for the current and previous program years. The city's 2010 report concluded that the city expended 16% of it CDBG funds on public service activities. However, the HUD regulations state that public service activities may not exceed 15 %. In order to remain in compliance with HUD regulations, the $28,971 of unobligated CDBG funds from expired contracts will have to be programmed to another eligible activity such as housing assistance programs, park improvements, acquisition of real property, clearance, demolition, street renovation or other eligible activities. Based on my recommendation, the Housing Assistance Department has requested the $28,971 grant funds; see the attached memo, to assist with the furtherance of its housing activities. Homeownership and providing housing assistance for low income families has been a high priority for the city. The additional $28,971 will help the Housing Department to identify lots for the possible relocation of Carver Terrance residents and for new home construction through Hurricane Ike funds for eligible families whose lots are not suitable for new construction as well as helping to identify eligible Ike funding applicants and to help applicants with application preparation. Your careful consideration to this matter is greatly appreciated. 1 INTEROFFICE MEMORANDUM HOUSING AND NEIGHBORHOOD REVITALIZATION To: Steve Fitzgibbons, City Manager b1 From: Mike Mason, Director of Housing & Neighborhood Revitalization Date: October 10, 2011 Re: Request for Additional CDBG Funding The Housing Department is requesting the CDBG funds of $28, 971.66 that were unused by local nonprofits to assist in the furtherance of land acquisition and administrative help. These funds will greatly enhance the forward movement of a once in a lifetime project for the City of Port Arthur. Port Arthur stands to gain in excess of $100 million dollars in federal funding to assist those impacted by Hurricane Ike. Safe and sound structures are a major issue since the hurricane and the Housing Department will use the funds if granted, to work with the citizens in greatest need. These CDBG funds will help in identifying Tots for relocation of the citizens from Carver Terrace, Foley Avenue and Herget Avenue. Following are some of the task that will take place: ➢ identifying lots; ➢ researching and locating the owners; ➢ conduct and negotiate purchase of the lots; ➢ work with other city groups in relocating citizens; ➢ canvas neighborhoods distributing Ike applications; ➢ assist citizens with their applications to qualify for Ike funds. Our current manpower in the Housing Department does not allow for the many tasks to be performed. These are eligible activities where CDBG funds can be utilized. Thank you for your consideration of this request. M emo AO To: Stephen Fitzgibbons, City Manager ■ From: Rebecca Underhill, Assistant City Manager /A. '' i ' ati Date: September 20, 2011 Re: P.R. 16681 RECOMMENDATION: I recommend that the City Council adopt Proposed Resolution 16681 to reprogram Community Development Block Grant funds from completed projects, to the City of Port Arthur Housing Department Administration Budget, for eligible housing activities, account number 105 -1431- 552.11 -00, C36144. BACKGROUND: We currently have $28,971 in unutilized allocations from prior CDBG years. These funds cannot be reprogrammed to public service groups. We exceeded our 15% public service cap for the 2011 program year. HUD will not approve additional funds for public service (non - profits) at this time. The Housing Division continues to work on eligible activities related to land acquisition for housing. These funds will enable them to continue that work. BUDGETARY /FISCAL IMPACT: Community Development Block Grant funds are available to fund this Resolution. SUMMARY: I recommend that the City Council adopt Proposed Resolution 16681 that approves the reprogramming of funds to the City of Port Arthur Housing Administration Budget in the amount of $28,971. l P. R. 16681 09/20/11 ME- Grants Management RESOLUTION NUMBER A RESOLUTION AUTHORIZING THE TRANSFER OF FUNDS IN THE AMOUNT OF $28,971.66 IN COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS TO CITY OF PORT ARTHUR HOUSING ADMINISTRATION FOR ELIGIBLE HOUSING ACTIVITIES. WHEREAS, it is in the best interest of the City that CDBG funds be transferred from the balance of completed projects to the City of Port Arthur Housing Administration Budget, in the amount of $28,971.66, account number 105- 1431 - 552.59 -00, C36144; and, WHEREAS, the funds are reprogrammed, in the amount of $28,971.66 as outlined in Exhibit "A" attached hereto to account #105 - 1431 - 552.59 -00, C36144, City of Port Arthur Housing Administration, as to increase their budget by $28,971.66 for the 2011 program year; and, WHEREAS, the CDBG projects are completed, but have existing balances; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: THAT The City Council approves the transfer of CDBG funds in the amount of $28,971.66 from the accounts, as delineated in Exhibit "A" attached hereto, to the City of Port Arthur Housing Administration Budget, account number 105- 1431 - 552.11 -00, C36144. THAT a copy of the caption of this Resolution be spread upon the minutes of the City Council. READ, ADOPTED AND APPROVED this day of 1 A.D., 2011 at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: MAYOR NOES: MAYOR AT .ST: CI SECRETARY APPRO ED FO' ' • RM: CITY ATT APPROVED FOR ADMINISTRATION: /i CIT TANAGER 'PROVED FOR AVAILABILITY OF FUNDS: CC DEBORAH ECHOES DIRECTOR OF FINANC i REBECCA UNDERHILL ASSISTANT CITY MANAGER , 1 EXHIBIT "A" CDBG BALANCES TO REPROGRAM ORGANIZATION BALANCE PROJECT PROGRAM YEAR PANAC $322.63 C31105 2005 LAMAR $1,437.02 C32104 2006 PANAC $1,098.81 C32105 2007 LES ENFANTS $2,304.00 C33104 2007 CAMP FIRE $430.53 C33109 2007 YMCA $320.00 C33110 2007 SETIO $10,000.00 C33112 2007 DEQUEEN $78.16 C33123 2007 WASHINGTON $565.65 C33125 2007 HOUSTON $189.01 C33127 2007 NUTRITION & SERVICE $1,968.96 C34103 2008 CAMP FIRE $4,684.40 C34109 2008 JAMES HOPE CENTER $4,400.49 C35107 2009 YMCA $1,172.00 C35110 2009 TOTAL 28971.66