Title
Resolution authorizing submittal of a CDBG grant application for housing rehabilitation
Body
SUMMARY:
Last year, the City submitted an application for $500,000 for rehabilitation of low income owner-occupied housing. The area chosen was Wayne Ave., Darrell Ave., Diane St. The grant was one of 8 applications and the top 4 were funded. Our application was just short of the points for funding. It is recommended that it be resubmitted. A public meeting was held on Wednesday, December 14, 2016, to receive comments from the public regarding the proposed project. There were 3 people in attendance, all from the area who were qualified for receiving assistance.
There is no local match for this grant. The maximum grant is $500,000 plus there may be an additional $25,000 bonus as a Three Star community. The City also has another $25,000 left over from a previous housing project that can also be used. If successful, a lien will be placed against the homes chosen for rehabilitation. Every year, one-fifth of the lien is forgiven as long as they still own the homes. If they should sell the home before the five years is up, they would owe the remaining portion of the lien. If not, there will be no cost to them. To be eligible, the maximum household annual income is as follows:
1 person $26,000
2 persons $29,700
3 persons $33,400
4 persons $37,100
5 persons $40,100
6 persons $43,050
7 persons $46,050
8 person $49,000
BUDGET ACCOUNT:
Recommended Action
NECESSARY COUNCIL ACTION: Approve resolution