The URL can be used to link to this page

Home My WebLink AboutCDBG Program CITY OF ASHl~AND Staff Report To: Title: Dept: Date: Submitted By: Housing Commission Community Development Block Grant Program Year Change Planning Department July 28, 2004 Brandon Goldman, Housing Program Specialist Synopsis The Housing Commission and City Council is to review a proposed change in the Comnlunity Development Block Grant (CDBG) program year to shift from a calendar year to a fiscal year. The Housing Commission shall forward a recommendation to the City Council for review at a public hearing scheduled for September 7th, 2004. In the coming year the City will have $214,877.33 to reprogram due to the City buy-out of the CDBG contribution to the Grove facility. This in addition to $200,000 in 2005 year competitive award funds, and approximately 60,000 in prior year funds, we anticipate approximately a total $475,000 in CDBG funds that can be applied to a selected project{s) in the coming year. Depending on the option selected these funds could be available in various ways. Recommendation Staff recommends Option 1 as presented below, to change the CDBG program year to be based on the Fiscal Year (July 1 -June 30th.) The proposed change in the CDBG program year is intended to coordinate Ashland's CDBG program to match regional, state, and federal grant funding cycles, to streamline the City's internal budgeting process, and to ensure awarded CDBG funds are available soon after the award selection. Option 1 This proposed change would shift the beginning.. of the program year from January 1, 2005 to July 1, 2005. As a result of this change, a 6 month delay in the competitive award process for the 2005 CDBG is anticipated. In lieu of issuing a request for proposals (RFP) in August of2004 for an award to be made in November, the change to a fiscal year would mean the RFP would not be issued until February 2005 with an award to be made in April-June, to distribute funds after July 1st, 2005 upon approval of the City's annual CDBG Action Plan.. In past years awards were made in November, but due to the fact that the funds are not made available to the City for distribution until the Congress (federal) makes its appropriations to the Department of Housing and Urban Development (HUD), such funds are not typically available until April or May. -This delay, from when a property is.. initially identified in the RFP in August, to receiving funds in Mayor June of tht: following year has been a hardship on property owners willing to sell to a CDBG funded project. Given Ashland's competitive real estate market such delays place CDBCi land acquisition projects at risk. The shift from a calendar year to a fiscal year is exp(~cted to ~~ @. reduce this delay from when an award is made to when funds are available from 6-7 months to 1-2 months. Another impetus for the proposed change to a fiscal year is to coordinate the City of Ashland's CDBG program with that of the City of Medford, the County and the State as well as A.shland's own budget year. There exists opportunities for the City to eventually help forrn a consortium with Medford and the County to become an entitlement entity for HOME funds. These funds that are used to support affordable housing projects require a coordinated consortium and in sYnchronizing our program years that will simplify the coordination necessary. Furthermore, it.is staffs beliefby providing an award cycle consistent with the State and the City of Medford, local housing providers can coordinate their activities and applications for funds more effectively. In this option all funds would be aggregated into one award in the amount of approxirnately $475,000 to be awarded in May-June 2005, to be available upon approval of the 2005 Action Plan and completion of other regulatory requirements (Environmental Review), in late August or September 2005 for distribution. The selected project needs to be a project that is ready to proceed to ensure the funds are expended in a timely manner. Option 1 The City can opt to retain the existing program year (January I-December 31) with no change. This option would then have the City immediately issue an RFP for the award selection process to begin. Of the anticipated $475,000 only $275,000 would be available until April-May of 2005, when the City could expect to receive its 2005 allocation from HUD-. Option :! The City can approve of the program year shift to a Fiscal Year, yet immediately issue an RFP for the $275,000 amount through the existing process. These funds would be available for distribution upon approval <?f a modified 2004 Action Plan by HUD and applicable environmental review and other regulatory requirements being met depending on the project selected. The City would then issue a new RFP for approximately $200,0010 for the 2005 program year. The selected project would then receive funding upon approval of a 2005 Action plan and review of applicable environmental review and other regulatory requirements being completed in August or September 2005. _..111I t:;\ CITY OF ASHL~AND August 5, 2004 Affordable Housing Providers, The Ashland Housing Commission held a public hearing on July 28th to determine whether Ashland should change its program year (from a calendar year to a July 1 Fiscal Year) and also recommend whether past accumulated carryover and program income would be awarded. The Housing Commission has recommended that the program year be changed to a fiscal year, and further that the available $274,000 CDBG funds (past carryover and program income) be made available through a Request for Proposals. This recommendation if approved by the City Council results in two RFPs, one for $274,000 for reprogramming past funds at this time, and a second RFP for $200,000 at a later date (Feb 2005). If you would like to respond to the RFP, copies are available on the City of Ashland web page, '. www.ashlalld.or.us.Click on Document Center in the left hand bar, then click on "2004 Reprogrammed CDBG RFP". Printed copies are available at the Community Development and Engineering Services building at 51 Winburn Way. The completed RFP is due by 3 :00 p.m on Monday, Septelnber 6th, 2004. As the program year change, and RFP process issues are still the matter of a public hearing, if you are unable to respond to the current RFP or would otherwise like to provide comment regarding the change in Program Year and resulting RFP process, please forward your comments to: Brandon Goldman RE: CDBG Program Year Change 20 East Main Street Ashland, OR, 97520 The City Council will hold a public hearing on September 7th to review whether the reallocation of the $274,000 noted in this RFP shall be awarded in November of2004, or potentially be conabined with the City's 2005 CDBG award allocation. The City Council can, at the September 7th, 2004 meeting, decide to aggregate funds into one $474,000 award. This RFP is being issued to ensure a timely award process and a month for applicants to complete a proposal, should the Council choose the alternative to issue two RFPs as recommended by the Housing Commission. In the event the Council elects to issue only one RFP for the combined total of $474,000, in February of 2005, this RFP will be nullified and applicants will be able to submit revised proposals for the 2005 program year. Thank you and please call should you have any questions, ~L PL~ Brandon Goldman . . From the Desk of: Brandon Goldman Housing Program Specialist Department of Community Development 20 East Main Street Ashland, Oregon 97520 WWN.ashland.or.us Tel: 541-488-5305 Fax: 541-488-5311 TTY: 800-735-2900 r~' ~ APPLICATION SCHEDULE AND DEADLINES August 6, 2004 RFP applications available to the public. September 6,2004 Applications due by 3:00 p.m. September 07, 2004 - Public Hearing before the Ashland City Council at 7:00 p.m. at the City Council Chambers, 1155 E. Main St. Council to determine whether the CDBG past funds are to be awarded under this RFP award process, or aggregated into the 2005 award RFP process. Septembera..10,2004 Staff review and ranking of applications. Staff will assess if the proposal is aneligibleCDBG activity and if it addresses a Consolidated Plan spending priority. This assessment wiUbeprovided to the AShland Housing Commission at the Public Hearing. 'SeptEmlb~r22t2()04 A PubHcHearin~'Nillt>e hf!Jd . at4:()Opm~7f()r~tq~ A*,t1Jand.. Housing Com.mission in~heat t~e8ommuniW[)ev~I()Pmrr1t~qildin9' Siskiyou Room, at 51 Winburn Way. Th~HolJsingQqmmjssionwi1l provide recom mendations for. awards to theCityC6uhcil. Octob~r19,~O()4 PublicH~aripgll~f?r~t~e AshlandCity~o~:~pil~tZ:qOJ?'n1<attt1~ City COlJncil 'Chambers, 115SE.MaInSt.Oo'uncil tq..makeflnatawar{j selecti6h(S) . Ques.tions? Contac:t. Brandon Goldmal1J . AssistantPlal1ner City 01 AShlan d Planning Division 552.2076~ orGoldnlanB@ashland.or.us CDBG RFP 2004-reprogram City of Ashland Page 3 fi'. LBr()rl9gnGOldrnan -.CDBG he()ring I...."..".".""=."...c.....,,,.~~............. ........ ....... . ..... . .." J-Jage 1 ; _'^_~,~._.~"-~~~._"-._...c..'~_.__.~:._, ., . From: To: Date: Subject: "Merry Hart" <mhart@access-inc.org> "Brandon Goldman" <BrandonG@ashland.or.us> 7/28/04 10:12:59 AM CDBG hearing Brandon, In response to changing the CDBG year, we have no problem with the timing change but we would like to see the applications sent out to interested parties at least two months in advance of when they are due. If any Board actions are needed before application can be made, that gives enough time for a board to act at it's monthly meeting. I believe the overall quality of application would be better as well. We do want to keep in touch about the potential for the HOME money being diverted from OHCS and sent girectly to the area. We would like to be included in discussions about how that would impact the communities, the benefits and things of such a move. Thanks, Merry {C;';