HomeMy WebLinkAboutAgenda Report - November 7, 2007 I-04 PHAGENDA ITEM S.y
CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Conduct a Public Hearing to consider and approve the reallocation of available
Community Development Block Grant (CDBG) and HOME Program Income for an
affordable housing project.
MEETING DATE: November7,2007
PREPARED BY: Community Development Department
RECOMMENDED ACTION: That the City Council conduct a public hearing to consider and approve the
reallocation of available Community Development Block Grant (CDBG) and
HOME Program Incomefor an affordable housing project.
BACKGROUND INFORMATION: The City is pursuing an affordable housing project on land currently
owned by Union Pacific Railroad (UP). In the course of developing
a Request For Proposal (RFP) for that project, the City has pledged
$1.2 million toward the acquisition of the land for this project.
In 2006, the City Council authorized a CDBG allocation in the amount of $330,000 from that year's
funding. In addition to that, the Housing Assistance Loan Programs that the City Council has been
funding each year with CDBG and HOME funding, have provided approximately $1,477,000 in program
income through the repayment of down -payment assistance and housing rehabilitation loans. That
program income is automatically reprogrammed back into the Housing Assistance Program, to continue
to assist first-time homebuyers andlor low income residents.
If an affordable housing project was feasible for the intended railroad property site, our intent has been to
reallocate $870,000 of that program income, to combine with the 2006 allocation of $330,000, to meet
the $1.2 million pledged to the affordable housing project. As the City Council has just completed the
process of selecting a developer to work with on this project and has authorized the City Manager to
initiate negotiations with UP, it is recommended that the funds be set aside.
FISCAL IMPACT: The reallocation will draw funding from the following sources to add to the
2006 allocation (LOD 06-11):
CDBG Home Rehab
$388,243.20
CDBG GAP
$62,157.16
HOME Rental Rehab
$29,863.91
HOME Habitat
$119,403.91
HOME Other
$263,675.00
TOTAL
$863,343.15
APPROVED: /�-
Blair�ity Manager
The reallocation will reduce the funding available within the existing Housing Assistance Programs but
not deplete it. There is still a sufficient balance left within that program to fund several loan applications
that are currently being processed, and still have funding available for one or two more applications this
year.
This reallocation will increase the balancewithin Project LOD 06-11 to $1,193,343.10. The remaining
$6,656.90 will be administratively reallocated from other CDBG funding from completed projects with
unexpended balances to complete the $1.2 million pledged to the affordable housing project.
FUNDING AVAILABLE: €ped"YC" unity Development Block Grant and HOME Program Funds
Manager
ReThdv H
Community Development Director
RH/jw
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