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HomeMy WebLinkAboutAgenda Report - March 5, 2003 G-01 PHCITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE, Conduct a Public Hearing to consider and approve community input and proposals for uses of the City's 2003/04 Federal allocation of Community Development Block Grant (CDBG) and HOME Program Funds and the reallocation of available funds from previous program years. PREPARED BY: Community Development Director RECOMMENDED ACTION: That the City Council conduct a Public Hearing to consider potential uses of Federal funds received through the Community Development Block Grant (CDBG) and HOME Programs for the 2003-04 fiscal year and the reallocation of available funds from previous program years. Staffis recommending that the Council approve funding allocation amounts dependent upon the results of the public hearing- A summary of the applications, a listing of the funding requests and staff recommendations are attached as exhibits to this communication. BACKGROUND INFORMATION. The City will receive $843,222.00 in CDBG funds and $245,891.00 in HOME funds from the Federal government for the coming fiscal year. Requests for CDBG funding totaled, $1,629,263,00 for projects or programs in the 2003/04 Program year. CDB G funds can be used to address a wide range of community needs such as park improvements, ADA retrofits and other community organization based projects. There was one outside request for HOME funds in the amount of $80,000,00 from Habitat for Humanity, Federal HOME funds must be used to address housing and housing -related activities such as housing rehabilitation and new construction. The balance of HOME funds will be directed to our Housing Assistance Program. The Community Development Department staff is also adding the reallocation of available funds from a previous Program year in order to get the funds used in a timely manner and keep our balance of funds within HUD Guidelines, Community Development Department staff has reviewed all applications and has met with most of the program applicants to review their requests. From that review, staff is recommending funding for each applicant in the amount requested, with the following exceptions: Lodi Unified School District Requested Amount: $245,989Recommended Amount., $100,000 Their request included 7 project sites for the repiacement of existing playground equipment or the installation of new playground equipment where none exist now. Due to the constraints of available funding, not all projects have been recommended for approval. Those projects included in the staff recommendation are located within or serve targeted :Eastside neighborhoods, APPRavtm: H. Dixon Flynn -- Gooduct Hearmg.d(rc 1 02126103 2, Senior Service Agency Requested Amount, $11,440 Recommended Amount: 0 Their request was for a portion of the funding necessary for the purchase of a new delivery velhicle1or the Meals on Wheels Program. No increase or expansion of service was documented in their request, o it is not an eligible activity. 3. Mary Graham Foundation Requested Amount: $57,147 Recommended Amount: $48,345 A portion of this request, for interior handicap signage, was deemed ineligible as it is or should be part of the current County construction project for the Child Advocacy Center, That portion was also not included in the staff recommendation to due to the limit of available funding. 4. Lodi Boy's & Girl's Club Requested Amount: $31,000 Recommended Amount: $6,385 A portion of their request ($15,115) was deemed ineligible as maintenance and operations expenses. Due to the constraints of available funding, another portion of their request, for exterior signage and a gate for the driveway have not been recommended for approval. 5. Lodi Parks & Recreation Dept, Requested Amount: $689,000 Recommended Amount. $175,000 Their request included 8 projects for various park improvements. Funding for 3 of those projects ($335,000) was determined to be ineligible for this funding. Due to the constraints of available funding, not all of the remaining eligible projects have been recommended for approval. Those projects included in the staff recommendation are the top three projects based upon the Parks & Recreations Departments priorities, 6, Lodi Public Works Department Requested Amount: $200,000 Recommended Amount: $175,000 Due to the constraints of available funding, staff was only able to recommend this amount. 7 L Senior Center Requested Amount: $30,758 Recommended Amount $22,908 Their request included 2 projects. Due to the constraints of available funding, only one project could be funded at this time. LOEL Center Administration determined the recommended project to be the more important of the two, In addition to the 2003/04 CDBG funds allocated from HUD, staff is also recommending the reallocation of existing CDB G funds from the 2002./03 Program year to insure that available funds are used in a timely manner and to meet the needs of a specific applicant. The proposed Mary Graham Children's Shelter Foundation project is scheduled to start as soon as possible in order to be completed by a target date in September. Allocating 2003/04 Program funds to this project would not provide the funding within that timefrarner Due to a lower than expected bid for the Lodi Lake Handicap -Accessible Pedestrian/Bike Path Project which was funded with 2002/03 CDBG funds, additional funds are available there which the Mary Graham Children's Center Foundation could access within their project timeline, At the same time, per HUD Guidelines, if funding is not redistributed and used in a timely manner, we face the possibility of losing those funds. Therefore, staff feels that it is both prudent and appropriate to reallocate those funds, and is forwarding a recommendation accordingly. In regards to the 2003104 HOME Program funding, one request for $80,000 was received from Habitat for Humanity. Staff is recommending approval of that request and is recommending further that the remainder of HOME funds be allocated to the Housing Rehabilitation Loan Program within our existing Housing Assistance Program, which offers low -interest loans for housing rehabilitation projects. All applications for funding are on file in the Community Development Department if any specific detail of a request is desired. A summary of all requests is attached to this document as Exhibit A. Gori dud Heanq,om FUNDING: 2003/04 Allocation of CDBG Program Funds: $640,222.00 2003%04 Allocation at HOME Program Funds: $245,601.00 Reallocation Project No. 02-16 (Acct. No. 458216) $ 48,345.00 Konr dt B rtl m Community Development l it ctor Prepared by Joseph Wood, Community improvement Manager %diva Attachment c: Director of Finance it ct6r of Parks & Recreation Director of € ublic Works Jon Moore, San Joaquin County CDBGIHome ADplicantc Candud 110.3fing doc 10 a,] W =11411 M.*It1Q*J I0 reater Stockton Food Bank Requested: $25,000 Recommended; $26,000 Funding Request: Repair/.Replace existing 1000 sq. ft. refrigerator/freezer unit and repair/replace root. Facility is located in Stockton. Proportionate funding requests, based upon the level of service provided within each community, have been made with both City of Stockton and San Joaquin County. Use of funds not dependent on receiving CDBG funding from other agencies, 2. Family Law Service Center Requested: $7,800 Recommended: $7,800. Funding Request: Provide funds to further increase services to clients. Provides legal services to low-income Lodi residents on issues relating to custodial care of minor children, abusive environments, etc. 3. Lodi Unified School District Requested: $246,989 Recommended: $100,000 Funding Request-, To either provide new ADA compliant playground equipment at locations where none exist now or replace existing non-compliant equipment with ADA accessible equipment, Playgrounds will remain accessible to area residents after school hours. Additional funding sources will be provided to supplement CDB G funds for these projects. 4. Senior Service Agency of SJG Requested- $11,440 Recommendeda $0 Funding Request-, To purchase a replacement vehicle for the Meals on Wheels program. Agency is requesting a proportionate amount of the total vehicle cost from each jurisdiction in which service is provided. 5. Second Harvest Food Bank Requested. $10,000 Recommended: $10,000 Funding Request Expand Senior Brown Bag, Food 4 Thought and Food Assistance Programs that they currently provide in Lodi. Applicant is able to provide additional services while maintaining the same funding request each year. 6e Mary Graham Children's Shelter Foundation Requested: $57,147 Recommended, $48,345 Funding Request: Purchase and install playground equipment to complete the Child Advocacy Center facility and the Central Campus Playground at Mary Graham's Children Shelter. 7. Lodi Bay's & Girl's Club Requested: $31,000 Recommended., $6,385 Funding Request: Funding to purchase equipment/software for upgrading the client tracking program, make maintenance repairs and improvements to the facility and purchase maintenance equipment, install a sign for the front of the building and gate on the parking lot driveway. 8, Salvation Army Food Bank Requested: $200,000 Recommended: $200,000 Funding Request Renovate a portion of the new facility acquired on North Sacramento Street to accommodate the food bank function which currently operates from their facility on East Lockeford Street, This will include the purchase ad installation of a new walk-in freezer and cooler. 9. City of Lodi Public Works Requested., $200,000 Recommended: $176,000 Funding Request: Continue with their annual handicap ramp retrofit project which provide ADA compliant -sidewalk access at intersections throughout Lodi, 10. City of Lodi Parks & Recreation Requested: $689,000 Recommended: $175,000 Funding Request A total of 8 park improvement projects. Most address handicap accessibility issues and correct safety hazards at playground facilities. 11. City of Lodi Transit/Laidlaw Requested: $10,000 Recommended. $10,000 Funding Request: Continue the existing Grapeline & Dial -A -Ride pass program which distributes transit passes to low-income individuals and senior citizens to meet essential transportation needs. Distribution is being increased to more agencies or organizations that provide service to low-income or senior citizens. Conduct Headng.doc 12. LOEL Sen Center Requested: $30,758 Recommended: $22,908 Funding Request'. To remove and replace existing floor covering which is being damaged by water intrusion, thereby creating a health and safety hazard, and make improvements to existing restroom facilities. Restroorn improvements will not address ADA compliance. 13. Community Partnership for Families Requested. $46,000 . Recommended, $46,000 Funding Request: To cover the planning and design costs for the development of their proposed family resource center which will be built adjacent or attached to the Lodi Boy's andbirl'sClub building. This is a two-phase project, this first phase providing the necessary project and building information for a future request for a capital improvement project. 14. Fair Housing Requested: $23,857 Recommended: $23,857 Funding Request., The annual fair -share cost to provide fair housing services in each jurisdiction, which include landlord -tenant rights information and investigation of discriminatory housing practices. 16. Program Administration Requested. $42,272 Recommended-, $42,272 Funding Request: Costs related to the administration of the CDBG and HOME Programs through the Community Development and Finance Departments, 16. Habitat For Humanity Requested. $80,000 HOME funds Recommended. $80,000 HOME funds Funding Request: Funis to acquire a residential lot in order to build a new single-family dwelling or a residential property in order to rehabilitate an existing dwelling unit. Conduct Hearing.doc 00l4 CDBQTpogr,Iticaz l% rst Amatint 1'i Q ectlService I?csc a bort i C SleS$eCl � Eligible i�CQi'..C$5 Amount 1<$,CCOiitIl3Ciiiie€] (Fi'3tor'StocktoflFood Bank $25,000�u�tairJl2eplace existing 1Ci00 $�(. ft.I'Cffit�CY�tC�i'/�TCCZe[ ainii �l]fi.___....... .��S;�O�— $25,400 ... repair/reroof budding. artiity.uw ervlc ea€tcr i egal seri itis to]o1v 'sns ante. $7 &()0 $7,8011 F30d ac ago �'s ri 2 t�;9$�3 Td iv ptay�gn;dWd ecl ipment at Tiny "lots Program (AKit schQO]) $245,989 2. New playground equipment at Joc Sonia Charter School l 3. Replace existing, playground equipment at Lawrence School E 4. Rclace existing playground equipment at Washington School I 5- Replace existing playground aquipmetn at Vinewand School I 'East) 6. Replace existing playground equipment at Reese School 7_ Replace existing playground equipment at V inewood School (IC) I I S idor service A eeicy $i I,440 Porcltase a delivety vehicle for Meals on Wheels I b�1�Ei,Q66— - Cand i truest knot€ J3ank 4 O(10 xp2nd'sng Ser for F3roE n fag. f Dod 4 `rhought and i of d Assistvtec Pr(Igmins. ary Sra]t ni C l€zt€iren. $5 ,14"" New playground equipment _ 848,34 Shelter Foundation —I fad% F3tzys - CCAs Clubmm 1 $3 P,0(Jt3 1 CorripuEer arc rams ci€ teackin Clientele. ($6,385) See Reallocation ? h 2. Gate on driveway. ($3,500) 3. New Sign on front LAbuilding. ($6,000) 4. M&O on building- ($12,365) E .5. Ml aintenan.ce FCpulpment (52,750) hS3_iva8l0 Xiiiy Fitad ai nk ,I_Q6( 000 12enctvate facility on North Sacrartiento Street. $200,O00 $2(10,t7Q0 - � � LttgEn�eitt� ' I _ ._.__ _ mersait ' Fy ofi �€ii as $689.406 1 l f Park Plavgraunci Irrc;trciv�tnenfs - phase 1 ($1Q9,bOti) $354,000 M5,000 a cre €iczia [ 2. Hale Parc Playground Equipaim Rcplaceinent ($60,Q00) I 3. Peterson Park "West" Playground Improvements ($9(),000) l 4. Armory Park Parking Lot Area ($68,000) j 5. Stockton Street "Softball Complex" Landscaping (542,000) 1 6. tale Park 'Tot Playground Equipment Repiacement ($70,000) � 7- Lodi LOOK Building (525:000) [ 8. Crape Bowl Restrootn/Concess€ori Stand Replacement ($225,000) 1! 'E AD `t`i`asitsit(k aidiaw`. _..m($10,i0t� _-Dial-a-hide/ V paeiine passes for various agericiea $10 ;(}00 63 Q,C]Oti 1 i Ie€tic)r Cricer S30,IS8. Rums v existing flci€irinb {2Z,4ti8� __._.._____. - g 3©,7>8 $22,908 2_ Rehab restroom facilities ($7,850) Cetrrimi3iticy Parenersla%p for____. § $45.000—'i3esin ensu or F tr€tily`-tCescs arca enter _ $45,Q00 - $45,()1}(] ramiliin it Housing W $23;857 1 aic chart allacati.©n for fairitciusiatg s�svires. 523,857 ��'raa`iti AdtttiraislFatictt X42 7,Adinittistraticin $42,272 $Q272 ji€ TAL C DBD FUNDS $t,529,'2€a3 � 1,258 9116 REQUESTED ,t 2003/04 CDBG 1 n& £3 22.2 ' ALLOCATION E I j TOTAL CDBG FUNDS RECOMMENDED FOR 3 APPROVAL $843,222 Reallocation of Available CDBG Funds. 1 �dl I � � ki.�ttdiea-A�Cessibi� F�� d�sfr a.ttl i�Ce Fath k�ra`e�t IiQ. ()�-�6 Acct. No. 458216) tlr n ( ieet =$48345$4Craham�i$57,147 Newplati�5 Center Foundation 1 Xk-IIBI 3 - Page I of 2 2003/04 HOME Pro r_aW _RojK. Housing Assistance Prn,-Fraaals Acgwre vacant reswenum €ot tar new aonsmic prtapetty with existing dwelling to rchahititate. "TOTAL HOME FUNDS REQUESTED ! $245,891 2003104 HOME PROGRAM ALLOCATION 1 $245,891 EXHIBIT I3 - Page 2 of 2 AND BUDGET a.1ternative transportation programs - in conjunction with other state and federal grants for this purpose- will be self-supporting from TDA revenues. As available, TDA funds will also be used for greet maintenance projects. D, Enterprise Fund Allocations to the General Fund The goal of Proposition 4 is to limit growth in appropriations of both state and local government to changes in the cost of living and population in order to control spending levels. Proposition 4 Ruther describes. the difference between "tax proceeds" and fees. Tax proceeds are the revenue from regulatory licenses, user charges and user fees to the extent the revenue exceeds the cost of providing the regulation, product or service. (This includes transfers from an enterprise fund to the extent those funds exceeded the cost of providing the services), 2. As discussed above, the funds transferred frog the City s enterprise funds to the City's general fund are "In -Lieu of Taxes" to the went they exceed the cost of services provided by general services (accounting, personnel, legal, kisurance, etc). These taxes will be levied used on prior yearrevenues as follows: 2201-02 0_02-03 In -lieu of Tax - Electric 12% 120/c In-heu of Tax - Water 17% 12% In -lieu of Tax - Sewer 20% 12% E. Special Revenue Mocations to the Geneve Fund Revenues the City receives for specific services (i.e. vehicle tow charges) will not be designated for use by an individual department unless required by statute or approved by the City Council, When required by statute (i.e. asset seizure), these funds will be first allocated to the purchase. of tieces&vy and essential equipment and/or services prior to purchase with General Fund resources, CDBG and may be used for activities that include, but are not limited to, M 2001-200�!!!LANC4 BUDGET POLICIES I WIN i !Illlllil�l 11! 111111111111 111 1 1 1 APPROPRIATION LIMITATION A. The Couacil will annually adopt a resolution establishing its appropdation limit cWculated in acwrdance with Article XMB of the Constitution of the State of California, Section 7900 of the State of Califon-fia Qo-vernment Code, and any other voter approved amendments of state legislation that affect the Citys appropriation firnit. B. The City will strive to develop revenue sources, both new and e�dsting, which are considered non -tax proceeds in calculating its appropriations subject to lirrdtation. C. The City will annually review user fees and charges and report to the Council the amount of program subsidy, if anya that is being provided by the General Fund or Enterpiise Fiords. mm WHEREAS, the Department of Housing and Urban Development has determined that the City of Lodi, California, is entitled to Community Development Block Grant ( lel ) and HOME funding as a participating City through the County of San Joaquin and Urban County for fiscal year 2003-2004; and WHEREAS, the City Council of the C�y of Lodi has been made of the amount of the CDBG and HOME funds available for the 2003-2004 year being approximately $843,222,00 and $245,891 .00, respectively; and WHEREAS, the City of Lodi has held, with proper notification, a public hearing at the City Council meeting of March 5, 2003, to receive comments and proposals from the public regarding the projected use of GDBG and HOME funds, and provided the public with adequate information concerning the amount of funds available for community development activities, the range of eligible activities, and other important requirements; and receivedWHEREAS, the City of Lodi, California, has public input regarding proposed use of CDBG and HOME funds; and WHEREAS, the City Council of the City of Lodi has been made aware of the need to reallocate unused CDBG and HOME funds from previous years to facilitate the expedited use of those funds; and WHEREAS, staff recommends that the City Council approve the 00 CDBG Program and HOME Applications as follows: Habitat for HUmanity 0,000.00 City of Lodi Housing Assistance Programs165 X01.0.0 $245,891.00 Greater Stockton Food Bank 25,000<00. Family Law Service Center 7,800 ,00 Lodi Unified >School District 100'000 00 Second Harvest Food Bank 10,000°40. Lodi Boys & Girls Club 6,385,00. Salvation Army Food Bank $200,000.00" City of Lodi Public Works/Engineering $175,000,00 City of Lodi Parks & Recreation $175,0M00. City of Lodi Transit/Laidlaw 10,400.04 Loel Senior Center 22,908,00 Community Partnership for Families 45,000.00 Fair Housing $ 23,857.40 Program Administration 42272.04 Habitat for HUmanity 0,000.00 City of Lodi Housing Assistance Programs165 X01.0.0 $245,891.00 WHEREAS, staff recommends that the City Council approve the reallocation of $48,345.00 in 2002-2003 CI CS funds from the Lodi Lake Handicap -Accessible Pedestrian/Bike Path Project to the terry Graham Children's Shelter Foundation Project s follows: 1012KIIIAMMMa. 021,121 ReallocateReallocat.e tunds frorn the Lodi Lake Handicap -Accessible 48,345.00 Pedestrian/Bike Path Project to the Mary Graham Children's Shelter Foundation Project NOW,`HERETO , BE IT RESOLVED that the City Council of the City of Lodi does hereby approve the allocations of CDBG and HOME funds to the projects listed above as recommended by staff in the amount of $943,222.00 and $245,891.00, respectively, ars E IT FURTHER RESOLVED that the Lodi City Council does hereby recommend mend the reallocation of $48,345.04 in 2002-2003 CDBG funds from the Lodi Lake Handicap -Accessible Pedestrian/Bike Path Project to the Mary Graham Children's Shelter Foundation Project Dated: March 5$ 2003 AYES. COUNCIL MEMBERS — Beckman, Hansen, Howard, Land, and Mayor Hitchcock ABSTAIN: AIN: C NCL MEMBERS — None SUSAN J. BLACKSTON City Clerk 6 CITY OF LODI CarnegieForum 305 Fest Pine Street, Lodi For information regarding this notice please contact: Susan J. Blackston City Clark Telephone. (209) 333.6702 NOTICE OF PUBLIC TEARING NOTICE IS HEREBY GIVEN that on Wednesday, March 5, 2003 at the hour of 7:00 p.m., or as soon thereafter as the matter may be heard, the City Council will conduct a Public tearing at the Carnegie Forum, 305 West Pine Street, Lodi. to consider the following matter: a} to consider and approve community input and proposals for uses of ft City's 2003104 Federal allocation of Community Development Block Grant and HOME Program funds and the reallocation of available funds from previous program years Information regarding this item may be obtained in the office sof the Community Development Department, 221 West Pine Street, Lodi, California. All interested persons are invited to present their viers and comments on this matter, Written statements may be filed with the City Clerk at any time prior to the hearing scheduled herein, and oral statements may be made at said hearing. if you challenge the subject matter in court, you may be limited to raising only those issues you or someone else raised at the Public Tearing described in this notice or in written correspondence delivered to the City Clerk, 221 gest gine Street, at or prior to the Public Tearing, By Order of the Lodi City Council: Susan €. Siackston City Clerk Dated; February 19., 2003 € roved as to fora: Af Randall A. Mays City Attorney J,1C1TY,CLRMr-0R6v S%notcdd2;d0C WOW 1UIIKRIffJ-I'IIII-VAIIUI� On Wednesday, February 19, 2003 in the City of Lodi, San Joaquin County, California, a copy of the Notice of public hearing to consider and approve community input and proposals for uses of the city's 2003/04 federal allocation of Community Development block grant funds and the reallocation of available funds from previous program years (attached hereto, marked Exhibit "A") was posted at the following four locations: Lodi Public Library Lodi City Clerk's Office Lodi City Hall Lobby Lodi Carnegie Forum 1 declare under penalty of perjury that the foregoing is true and correct. Executed on February 20, 2003 at Lodi, California. Patricia Ochoa Administrative Clerk rorms\dcc,postdoc Jennifer M, Perrin Deputy City Clerk (D DECLARATION OF MAILING On February 19, 2003.in the City of Lodi, San Joaquin County, California, I deposited in the United States mail, envelopes with first-class postage prepaid thereon, containing a letter regarding to consider and approve comm upity input and proposals for uses of the City's 2003/04 Federal allocation of Community Development Block Grant and HOME Program funds and the reallocation of available funds from previous program years, marked Exhibit "A"; said envelopes were addressed as is more particularly shown on Exhibit "B" attached hereto. There is a regular daily communication by mail between the City of Lodi, California, and the places to which said envelopes were addressed. I declare under penalty of perjury that the foregoing is true and correct. Executed on February 20, 2003, at Lodi, California. PATRICIA OCHOA ADMINISTRATIVE CLERK For"/decmafl.doc OMf. i iiM-3-alwal, IN-=;1WAWAfflV"8;=4 FirstNa e La.stName Company Addressl City State PostalCo e Toni Cec;chetti Family 42 N. Stock CA 95202 Laws Scatter ton Service Street Center Suite 302 Susan RyaD Lodi 1305 Ee Lodi CA 95240 Unified gine School Street District Darr E. Bennett Greater 7 W, Stock CA 9.5203 Stockton Scotts ton Emergency Avenue Food Bank Brain Cornell, Senior P 0 Box Stock CA 95201-0045 Executive Serive 45 ton Director Agency of S. J. County Paul T. RQn h Second 704 E. Mant CA 95337 Harvest Industrial eca Food Bank Park Lindy Turner, Mary P Q Box Stock CA 35201-3006 Outreach Graham's 201056 ton Corrd iratoe Childmn Shelter Foundation Edwin Cotton Dodi Boy's 275 Poplar Lodi CA 95240 & Girl's Stroet Club Captain Severs Lodi 525 W, Lodi CA 95240 Frank Salvation Lockeford AiTny Strut Pete Chadwick Habitat for P 0 Box Stork CA 95267 Humanity _ 7429 trace Lodi Chapter Wes Fujitani, City of P 0 Box Lodi CA 95241 Senior Civil Lodi .3006 Engineer Roger E[l3�altz, Parks City of P 0 fox Lodi CA 95241 6N Lodi 3006 Recreation Director Cynthia Reich LOEL, 105S, Lodi CA 95240 Senior washingto Center n Street Stewart Wakeling C..orr munit P 0 Box Stock CA Y 1569 tore Partnersbip for Families Summary: CDBG provides eligible mnetrnpoftan cities and urban counties (called "entitlement communities") with annual direct grants that they can use to revitalize neighborhoods, expand affordable housing and economic opportunities, and/or improve community facilities and services, principally to benefit low- and rnoderatw-imcornepersons. Purpose: Since 1974 CDBG has been the backbone of improvement efforts in many communities, providing a flexible -source of annual grant funds for local governments nationwide--fumds that they, with the participation of local citizens, can devote to the activities that best serve their own particular development priorities, provided that these projects either (1) benefit low- and moderate - income persons; (2) prevent or eliminate s}urns or blight, or (3) meet other urgent community development needs. The CDBG Entitlement Communities program provides this Federal assistance to almost 1008 of the largest localities in the CounLry. As one of the NoUon's largest Fedenyj grant programs, the impact of CDBG-funded p�deCtocan bm seen in the housing stock, the business environment, the streets and the public facilities of these entitlement communities. Although the rehabilitation of affordable housing has traditionally been the largest single use of [DB(5 funds, the program is also an increasingly important catalyst for economic development activities that expand job and business opportunities for lower income persons and neighborhoods. Type of Assistance' Each year ., the grant funds available for entitlement cOm[DUD1tie8 are allocated according torelative need the bamf'the'higherpftwoforrnu\as.ThefirsL considers the presence of overcrowded housing in the locality, its population, and poverty rate. The second uses housing age, population growth lag, and poverty rate. Eligible Grantees- Recipients mantees:Recikents of CDBG entitlement funds 'include local governments with 58'000 or more residents, other local governments designated as central cities of metropolitan areas, and urban counties with populations of at least 200,000 (excluding the population of entitled cities). Local governments may carry out all activities thmrnseivesoraward some or all ofthe funds tp private orpublic nonprofit organizations anwell os for-profit entities. 4separate component of [C>8G--the State C[)BG Program —provides program funds tnthe States, which they allocate among localities thatdo not qualify as entitlement communities, Eligible Customers. Low- and moderate -income persons (generally defined as members ofafamily earning no more than 00 percent of the area median income) benefit most directly and most often from CDBG-funded activities. Grantees must use at least 70 percent of CDBG funds for activities that principally benefit low- and moderate-, income persons. This includes activities where either the majority of direct beneficiaries (from the jobs created, for example, or the housing units rehabilitated) are low- or moderate -income persons and activities that serve an area generally (a new community center, for example, or sidewalk repaim) where the majority of the residents of that service area are low- and moderate -income parsons. Eligible Activities: Grantees may use CDBG funds for activities that include (but are not limited to): — Acquiring real property (phrnoh|y land, buildings, and other permanent improvements to the property) for public purposes. This type of activity rnKJht include, for example, buying abandoned houses for rehabilitation or an old industrial site in distressed neighborhood for redevelopment. C[)BBa|s# helps communities demolish property and clear sites to prepare the land for other uses, Reconstructing or rehabilitating housing and other property, From homeless shelters to single-family homes and from playgrounds to shopping centers, CDBG enables communities to improve properties that have become less usable, whether due to age, neglect, natural disaster, or changing needs, New construction of hous|ng is allowed only in certain circumstances, -- Building public facilities and improvements, such as streets, sidewalks, sewers, water systems, community and senior citizen centers and recreational facilities. — Helping people prepare for and obtain employment through education and job —Assisting for-profit businesses for special economic development activities, Such projects might include mnicnoeoterprise loans to low-income entrepreneurs, assembling land to attract new industry, or business expansion loans to help retain existing businesses that employ low-inconneworkers. — Providing public services for youths, seniors, or the disabled. These might <ndude day care centers, youth services and meals on wheels for the elderly, health care facilities, transportation, or counseling, — Corry�ng out crime reduction initiatives such as establishing neighborhood watch programs, providing extra police patrols, rehabilitating orconstructlng police - substations, and clearing abandoned buildings used for illegal activities. — Assisting low-income homebuyers directly through, for example, dovvnpayment assistance, suUaidi7ing interest rates or helping with dosing costs for first-time buyers, -- Enforcing local buildingcodes to reverse hOusng detehorati�on and other signs -- Paying for planfiing and administrative expenses TODOCUMENTS IN THE FORTIS SYSTEM, FOLLOWS.-