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HomeMy WebLinkAbout1995-01-27• TOWN BOARD MEETING JANUARY 27, 1995 PUBLIC HEARING - Grant Applications Supv Schug called the public hearing to order at 12 noon Roll call was by Town Clerk Lloyd Present: Supv Schug, Clm T. Hatfield, Clm C. Hatfield and Clm Roberts Absent: Clm Baker and Atty Perkins Also present was Becky Billderbeck who is the executive director for better housing in Tompkins County. QUESTIONS AND /OR COMMENTS Karl Heck - this is the first of two public hearings that are required under HUD required under the small cities grant applications. (copy in minute book) Karl Heck - in 1995 HUD has a small cities program that was started in 1974 and has been available to communities. In 1995 there is an area in upstate New York of a projected funding level of $51,114,000.00. Communities can apply in the single purpose category with the maximum is $400,000.00 or in the comprehensive program which the maximum is $900,000.00. 85 percent of the funding is available for the single purpose programs and the applications seem to also be 85 percent. The Town of Dryden could apply for $400,000.00. In addition to the small cities application the applicant must have a community development plan, citizen participation plan and antidisplacement and relocation assistance plan on file. Also a comprehensive housing affordability strategy must be prepared. This must be submitted to HUD either before or with the small cities application. Karl Heck - a single purposed grant may provide funds for one or more projects, each consisting of an activity or a set of activities. In an economic development you might have separate projects. To receive the highest impact rating a project must address the needs of serious health safety that is documented. Benefit a number of persons in a household. To resolve problems indicated in the application and have no other obstacle to program implementation in the terms and conditions. Single purpose housing rehabilitation programs must be marketable given the income characteristics of the neighborhood /municipality and have an absence of implementation obstacles and more possible leverage private funds. Closed public hearing: Adjourned: 12:20PM Susanne Lloyd Dryden Town Clerk 12:20PM 360 INFORMATIONAL STATEMENT ON THE 1995 SMALL CITIES PROGRAM BACKGROUND ON THE PROGRAM The Housing and Community Development Act was first approved by Congress in 1974. The Act was subsequently amended on several occasions, with the most recent amendment in 1990 as part of the National Affordable Housing Act. Under provisions of the amended Act, communities continue to be eligible for grant funds through the "Small Cities Program ". Funding under this program, as before, is on a competitive basis, with communities competing with other applicants for the available funds. The primary objective of the Community Development Program is the development of viable urban communities, including decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income. Consistent with this primary objective, the federal assistance provided is for the support of community development activities, which are directed toward the following specific objectives: Elimination and prevention of slums and blight; r Elimination of conditions detrimental to health, safety and public welfare; Conservation and expansion of housing; Expansion and improvement of the quantity and quality of community services; More rational utilization of land and arrangement of land uses; Reduction in isolation and concentration of income groups within communities; Restoration and preservation of historic structures; and Stimulation of private investment and community revitalization to alleviate physical and economic distress. is I ELIGIBLE ACTIVITIES Funds received under this Act may be used to undertake activities which include the following: Acquisition of property which is: • blighted, underdeveloped or inappropriately developed; • appropriate for conservation or rehabilitation; • needed for eligible public works or other public purposes. Construction or installation of public works and facilities; Rehabilitation of buildings; Clearance of unsound buildings; Economic development projects; Homeownership assistance; Special projects to assist mobility of handicapped persons; i-- Sale of property acquired by the program; r Provision of public services; a Payment of local share of other federal programs; Relocation payments and assistance; and Activities necessary for developing plans, management capacity and payment of administrative costs of the program. However, there is a provision that activities which are in themselves eligible must also meet other HUD restrictions. Most particularly, activities must comply with requirements regarding benefit to low and moderate income persons. It is a threshold requirement that every program benefit a minimum of 70 percent low income persons. Also, due to the competitive nature of the program, activities must fully address HUD rating criteria. SMALL CITIES PROGRAM Federal regulations outline program requirements and HUD's procedure for rating and ranking applications. These regulations recognize that the needs of communities vary widely, and therefore, provide for two types of applications - comprehensive and single purpose. Communities may apply under either (but not both) of these application categories. COMPREHENSIVE GRANT PROGRAM • A comprehensive program must meet all of the following criteria: Address a substantial portion of the identifiable community development needs within a defined area or areas; Involve two or more activities that bear a relationship to each other, excluding administration, planning, and management, and which either in terms of support or necessity are carried out in a coordinated manner; and Have beneficial impact within a reasonable period of time. Applications are rated and scored against each of the following factors: Points Need - absolute number of poverty persons 75 Need - percent of poverty persons 75 Program impact 400 • Outstanding performance in: Fair Housing 40 Local equal opportunity efforts 25 Maximum total 615 Each applicant must select four program design criteria from among the following ten. HUD measures the impact of the program on the identifiable needs in relation to the amount of funds requested for each of the program design criteria selected. 1. Supports comprehensive neighborhood conservation, stabilization, and/ or revitalization. 2. Provides housing choice within the community, either outside areas with concentrations of minorities and low and moderate income persons, or in a neighborhood which is experiencing revitalization and substantial displacement, as a result of private reinvestment, by enabling low and moderate income persons to remain in their neighborhood. 3. Supports the expansion of housing for low and moderate income persons by providing additional housing units not previously available. • 4. Addresses a serious deficiency in a community's public facilities. 0 5. Expands or retains employment opportunities. 6. Attracts or retains businesses which provide essential services. 7. Removes slums or blighted conditions. 8. Resolves a serious threat to health or safety. 9. Supports other federal or state programs being undertaken in the community, or deals with the adverse impact of another recent federal or state action. Other federal or state program actions must be of substantial size or impact in the community in relation to the proposed program. 10. Supports energy production or conservation. SINGLE PURPOSE GRANT PROGRAM A Single Purpose Grant may provide funds for one or more projects, each consisting of an activity or a set of activities, and designed to meet a specific community development need. Funds are available to address serious problems with housing, public facilities which affect the public health and safety, or economic development. If a Single Purpose Grant application has more than one activity, the activity that directly addresses the need must represent at least a majority of funds requested. Projects are rated and scored against each of the following factors: Points Need - absolute number of poverty persons 75 Need - percent of poverty persons 75 Program impact 400 Outstanding performance in: Fair Housing 40 Local equal opportunity efforts 25 Maximum total 615 To receive the highest program impact rating, a public facility project must: 1. Address a need that is serious (i.e., a threat to health and safety) and one that requires prompt attention. The need must be documented by a third party; 2. Benefit a large number of persons in relation to the amount requested; 3. Resolve the identified problem completely; and 4. Have no other obstacles to program implementation. Single purpose housing rehabilitation programs must be marketable given the income characteristics of the neighborhood /municipality, leverage private funds, and have an absence of implementation obstacles. Single purpose economic development projects must leverage private investment, retain or create jobs, and have a strong evidence of financing commitment. It is considered especially advantageous to establish a revolving fund with proceeds used for further economic development purposes. It is extremely important that the necessity and appropriateness of the Small Cities assistance be demonstrated when used for an economic development project(s). OTHER FACTORS /CONSIDERATIONS In addition to the criteria identified above, the following factors will influence program rating: 0 1. Environmental considerations; 2. Previous actions taken by the applicant and local funds contributed; 3. Displacement required; and 4. Past CDBG performance, if applicable. MULTI -YEAR PROGRAMS In 1995, HUD has reintroduced the ability to apply for a multiple year commitment. Each year's program must "stand on its own" and HUD will require that second and third year applications be submitted but grants will be awarded on a non - competitive basis if the overall program is approved. Multi -year commitments are available for both types of grants. AVAILABLE FUNDS The 1995 Small Cities Program, as administered by the Buffalo Area Office, has a total projected funding level of $51,114,000. Maximum funding levels have been established as follows: 11 • Total Individual Grants 0 0 Single Purpose Program Comprehensive Program $375772,300 (85%) $ 69665,700 (15%) $400,000 $9009000 The Area Office, however, can adjust the above funding amounts down to 75 % for Single Purpose Grants and up to 25 % for Comprehensive Grants. The new requirement that Comprehensive programs receive a minimum program impact score may increase the Single Purpose amount available, if an insufficient number of Comprehensive programs receive the minimum program impact score. Counties may apply for up to $600,000 under the Single Purpose Program, provided not more than $400,000 is allocated to any single community. OTHER REQUIREMENTS In addition to the Small Cities application, an applicant must have a Community Development Plan, Citizen Participation Plan, and Antidisplacement and Relocation Assistance Plan on file. These do not have to be submitted to HUD, but must be available for public review. For projects that contain a housing element, an abbreviated Comprehensive Housing Affordability Strategy (CHAS) must be prepared. This CHAS must be submitted to HUD either before or with the Small Cities application. Applications must be submitted by February 21, 1995.