HomeMy WebLinkAbout12/02/2008 06 2009 CDBG and HOME Annual Action Plan [Community Development Block Grant] BUSINESS OF THE CITY COUNCIL
• YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting of December 2, 2008
ITEM TITLE: Public hearing, adoption of, and approval to submit the 2009 CDBG and
HOME Annual Action Plan
SUBMITTED BY: William Cook, Director of Community and Economic Development
CONTACT PERSON/TELEPHONE: Michael Morales (575 -3533)
SUMMARY EXPLANATION: As an entitlement community, the City of Yakima receives direct federal
funding for the Community Development Block Grant (CDBG) and HOME programs. These funds can be
invested in a broad range of activities, projects, and programs, and services. As part of the process for
determining how to invest the funds, the Office of Neighborhood Development Services (ONDS), under the
direction of the City Council, develops an Annual Action Plan. Of paramount importance in developing this
plan is the citizen input process. ONDS held three public meetings this year: on August 27 in conjunction
with a regular Council Neighborhood Development Committee meeting; on September 17 at the Southeast
Community Center; and a Spanish language meeting on October 22.. In addition, there have been
opportunities for written comment, and input solicited from other public and non - profit entities. All of these
sources of input have been carefully considered in writing the plan.
• Each year the City is required to hold a final Public Hearing for the Annual Action Plan. The purpose of
this hearing is to receive comments on the content of the draft version of the plan, make any needed
changes in the draft, and approve the final version. This is done at the conclusion of a formal 30 -day
comment period process. These comments and any changes in the draft plan the City Council may
choose to make will be included in the final version of the plan. Upon approval by the Yakima City Council,
the final version of the plan will be submitted to the Seattle office of the US Department of Housing and
Urban Development (HUD) for their review and approval.
Resolution Ordinance Other (Specify)
Contract Mail to (name and address):
Phone:
Funding Source
APPROVED FOR SUBMITTAL: ���M. --- N■N City Manager
STAFF RECOMMENDATION: Hold Public Hearing, adopt resolution to approve
2009 Annual Action Plan
BOARD /COMMISSION RECOMMENDATION: The Neighborhood Development Committee
recommended the plan and participated in the August 27 public meeting.
• COUNCIL ACTION:
• RESOLUTION NO. R -2008-
A RESOLUTION adopting the 2009 CDBG and HOME Annual Action Plan and approving
the submittal of the Annual Action Plan to the Department of Housing
and Urban Development (HUD) for their review and approval.
WHEREAS, the City of Yakima is an annual recipient of federal Community
Development Block Grant (CDBG) and HOME funds; and
WHEREAS, these funds are intended to be used for a variety of community,
economic development, and housing purposes that will benefit low and moderate income
persons; and
WHEREAS, the City of Yakima has completed a required public input process that
has gathered ideas from citizens on all aspects of need in the community; and
WHEREAS, the result of this input process has been the development of a plan to .
guide the investment of these funds for the year 2009; and
WHEREAS, it is the desire of the Yakima City Council to adopt this proposed 2009
CDBG and HOME Annual Action Plan as the guide for the use of these funds for 2009;
now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
1. The Yakima City Council hereby adopts the 2009 Community Development Block Grant
and HOME Annual Action Plan for 2009; and
2. Staff is directed to prepare all necessary documents to enable the plan to be submitted
to HUD, and to submit the documents as required to HUD; and
3. The City Manager is hereby authorized to sign all necessary documents relating to this
Action Plan in order for it to be submitted.
ADOPTED BY THE CITY COUNCIL this 2nd day of December, 2008.
ATTEST: David Edler, Mayor
•
City Clerk
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RESPONSE TO QUESTI ! ► ' _ ..._ �- ! _ I l : _ NG
CIT ' : LIC HEARING ON 12/02/03
A- •
I. .Why did City reject a proposed Section 108 loan for a minority owned
daycare center?
A. Luz Gutierrez explained to me (Bill Cook) that this occurred during a
conversation she (Luz) had with our consultant John Finke following a
meeting of the Council's Economic Development Committee earlier this year.
I called and spoke with John and he remembers a conversation with Luz on
how the Section 108 program works and general programmatic requirements
such as an 80% loan to value requirement for collateral. He vaguely
remembers a generic question from Luz about daycare centers but no
specifics. He believes that in general daycare centers are difficult to finance
through this program for many reasons, including:
1) They are a highly regulated industry.
2) The cost of setting up is high and revenue is low and often unstable.
3) They typically require a lot of personnel and construction/rehab costs.
4) They often operate month to month or in a deficit awaiting collectio if
outstanding bills.
• indicated he did not discourage her from bringing an s ation forward,
and go r his card with phone number and •: No financial
information or s' , ,, to Mr. Finke.
2. Q. What are non - federal funds, why are they not in the budget?
A. Non Federal funds are derived from payment from discontinued program
and portfolio loan. Theyy are called non federal because their original
source was non federal dollars. Since these non federal dollars did not come
from CDBG or Home they are included in that budget. They have always
been included in the city's budget; Service Unit 340. The projected year-
end balance for 2003 is $54,025.
3. Q. Are ONDS staffing costs inappropriately high?
A. Total staffing costs at ONDS are less then 30% of total grant expenditures.
Please note that total grant expenditures are less than the total cost of
activities assisted with grant dollars. For example, in the HOME program,
the City's grant expenditure in 2004 is estimated at $30,000 per home.
However, those houses will actually cost approximately $105,000 each.
Therefore the City's total personnel and indirect cost (light, heat,
equipment, supplies, etc) would be about 17 %. Also production numbers do
not reflect work time spent on projects that do not go forward to completion.
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Response to questions & statements made during City Council Public Hearing on 12/02/03
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