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Home My WebLink AboutR-1996-126 Loan / US Dept of Housing & Urban Development / Funding / Homeownership ZoneRESOLUTION R -96-12G A RESOLUTION authorizing and directing the City Manager of the City of Yakima to file an application with the United States Department of Housing and Urban Development for funding a Homeownership Zone (an Economic Development Initiative) and a Section 108 Loan Guarantee. WHEREAS, the City of Yakima is contemplating a New Homeownership program for which federal funding is available from the United States Department of Housing and Urban Development, and WHEREAS, the grant funds are available for a Homeownership Zone funding as a part of this year's economic development initiative through the Department of Housing and Urban Development, and WHEREAS, a secondary element of this application, is an opportunity for the City of Yakima to apply for a United States Department of Housing and Urban Development Section 108 Loan for community and economic development, and WHEREAS, the City Council of the City of Yakima deems it to be in the best interests of the City that applications be filed for federal funding for the purpose mentioned above, now therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: R.A Zais, Jr. City Manager of the City of Yakima, is hereby authorized and directed to execute and file the application documents, including all understandings and assurances contained therein. with the United States Department of Housing and Urban Development for funding of a Homeownership Zone (an Economic Development Initiative) and is hereby designated as the official representative of the City to act in connection with that grant request and to provide such additional information as may be required. A I hST ADOPTED BY THE CITY COUNCIL this 17th day of September. 1996. zv��✓�h�C• Cdr City Clerk 1 Lynn Buchanan, Mayor SECTION 108 LOAN GUARANTEE NOB HILL/MEAD PROJECT Community Development Block Grant (CDBG) program Section 108 provides communities with a source of front-end financing for large-scale physical development projects which cannot be financed from annual grants. The City of Yakima is submitting an application for U.S. Department of Housing & Urban Development (HUD) Section 108 Loan Guarantee funding to provide economic development infrastructure improvements within the designated Nob Hill/Mead annexation area. Installation of public facilities, site improvements and utilities for an economic development purpose is an eligible funding activity under the authority of 24 CFR Part 570 (570.703(i)(3), Title I, Housing and Community Development Act of 1974, as amended (the Act). The City of Yakima, an entitlement public entity, is an eligible applicant. Maximum loan amount under Section 108 is equal to five times the applicant's CDBG entitlement allocation. This application would obligate two of the five million available. Ettlatesswalanal Cm of Yakima Office of Neighborhood Development Services September 11. 1996 HOMEOWNERSHIP ZONE PROGRAM OVERVIEW The United States Department of Housing and Urban Development is providing the Cite of Yakima Office of Neighborhood Development Services an opportunity to reclaim its hard pressed neighborhoods through the availalbility of Homeownership Zone funding as part of this year's Economic Development Initiative competition. This provides the Cm of Yakima with a fi\e ear at_icressl\e strategy_\ to address the revitalization of the Nob Hill Mead Anne\ 1 he combination of federal. local and private funds will enable 150 owner occupied y.. home; to he rehabilitated- provide 150 new I\ constructed homes for first time homehuners and the installation of infrastructure for a total investment in excess of S18 million f .dcra i CuntmunttDnelopment Block Grant Section Ji>R f cc.rai i__onouuc D• \ciopuicnt initiate,. Grant Fc 1 rai H(}\1i= I)nfinrs Fcnl,a:nint dcr,%cd iron corULLinCnts h•,' al.tnta's local lcnciine instUtunons he ci<<< \\ill as uine the financial responsibility of repaying the 108 bond by collecting m Dries e la\'ments from the homeowners o\ er a tt=.ent, year period totalling 52 million loin •(i`.vnership Lone funding provides Yakima \\ith an excellent vehicle to revitalize )ur hard ,;tressed neighborhoods without overburdening our existing budgets and serves catak\ st for private inn estment- business creation and neighborhood revitalization BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No: t �- For Meeting of: September 17, 1996 ITEM TITLE: Homeownership Zone (Economic Development Initiative) Resolution SUBMITTED BY: Glenn J. Valenzuela, Director of Community and Economic Development CONTACT PERSON/TELEPHONE: Dixie Kracht, Block Grant Manager (575-6101) SUMMARY EXPLANATION: The City of Yakima Office of Neighborhood Development Services has received an invitation to apply for a grant from the United States Department of Housing and Urban Development for the establishment of a Homeownership Zone as a part of this year's economic development initiative. This grant will provide funds to create homeownership opportunities and financing for rehabilitating existing structures for low/moderate income families in the newly annexed area between East Mead and East Nob Hill Boulevard. The grant funds would be used to provide infrastructure (paved streets, curbs, sidewalks, lighting, water and sewage) for undeveloped lots. The implementation of this grant would sustain economic development by providing jobs and increased business to the construction industry in this area. Local contractors, employees and vendors would be used to build one and two family structures on the selected sites. Single family homes would address the current concern of existing high density in that area. Homeownership opportunities revitalize neighborhood and encourage neighborhood stabilization. A secondary element of this application process, includes an opportunity to apply for a Section 108 Loan Guarantee which provides communities with a source of front-end financing for large scale physical development projects which cannot be financed from annual Community Development Block Grant funds. EXHIBITS X Resolution Ordinance Contract Other (Specify) Funding Source Grant and Loan from the Un'� • States D pnent of Housing and Urban Development Approval for Submittal �� .. \�t,t,,� t\ - City City Manager STAFF RECOMMENDATION: Approve resolution BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: