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RESOLUTION NO. 7,911
A RESOLUTION APPROVING THE VARIOUS PROJECTS
AND ALLOCATIONS OF FUNDS AS PROVIDED FOR IN
THE CITY OF LITTLE ROCK'S COMMUNITY DEVELOP-
MENT BLOCK GRANT (CDBG) PROGRAM FOR THE
FOURTEENTH YEAR (1988); APPROVING THE CDBG
APPLICATION; AND AUTHORIZING THE FILING OF
THE APPLICATION FOR SUCH FUNDS.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS
OF THE CITY OF LITTLE ROCK, ARKANSAS:
SECTION 1. The various projects and allocations of the
funds provided to the City under the Community Development Block
Grant (CDBG) Program for fiscal year 1988 -1989, as set forth on
the attached Exhibit A, and application for such funds are
hereby approved.
SECTION 2. The City Manager, on behalf of the City of
Little Rock, is hereby authorized to complete and file the
application with the appropriate federal agency for the grant of
the funds so specified.
ADOPTED: March 1, 1988
ATTEST:
MARK STODOLA, CITY ATTORNEY
APPROVED:
MAYOR LOTTIE SIACKELF RD
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PROPOSED
CDBG 14TH YEAR PROGRAM
Home Rehabilitation Program $ 440,000
Acquisition Rehab 100,000
Code Enforcement 25,000
Sewer Service Grants 50,000
Social Services (ELRCC) 635,000
14t4 Year Street & Drainage Construction 600,000
Madison Street, 24th to 29th
25th Street, Maple to 24th
26th Street, Pine to Lewis
Pankey Street, Josephine to Black Road
14th_ Year Engineering for 15th Year Construction 40,000
Oak Street, Capitol to Plateau
Drainage, Jones to Coates South of Capitol
Boyd Street, 28th to 32nd
Bowers Street, 44th to Asher
Drainage, Lewis to Adams South of 13th*
Construction Projects Administration 75,000
General Administration 220,000
TOTAL $2,185,000
*Approval of project recommended in order to reserve $150,000
construction funding, as well,as engineering, in 15th Year;
construction and balance of funding in 16th Year.
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TO:
FROM:
SUBJECT:
DATE:
BOARD
OF DIRECTORS COMMUNIC ON
OF DIRECTORS
1411f YEAR COMMUNITY DEVELOPMENT BLOCK GRANT
PROGRAM
FEBRUARY 18, 1988
BOARD ACTION RECOMMENDED: Adopt a resolution authorizing
the City Manager to submit to the U.S. Department of Housing
and Urban Development a statement of objectives and
projected use of 14th Year (FY 1988) Community Development
Block Grant (CDBG) funds which incorporates the activities
and allocations recommended by the CDBG Citizen
Participation Coordinating Committee and City staff per the
attached program proposal.
DISCUSSION:
The total allocated is for an anticipated CDBG grant of
$1,922,000, plus program income estimated at $263,000.
The street and drainage construction projects recommended
for the 14th Year CDBG program are those approved for design
engineering in the 13th Year except for the addition of
Pankey Street from Josephine to Black Road. Instead of
allocating funds to a specific °project, the Board last year
reserved $100,000 for a future project in the Pankey
community, pending resolution of land use issues under
discussion at the time. To avoid another year of no
activity in Pankey, the recommendation is that $140,000 of
the 14th Year grant be combined with the $100,000 reserved
from the 13th Year grant, in order to proceed with the
Pankey Street project, and stipulate that no Pankey project
will be funded in the 15th CDBG Year. The recommended
project includes a bridging of Isom Creek. It will improve
traffic circulation and safety, providing the only east -west
connection of two parts of the neighborhood without going by
way of Highway 10.
As Pankey would then be omitted from 15th Year construction
funding, the Coordinating Committee and the staff recommend
approval of future improvements to a drainage channel in Oak
Forest between Lewis and Adams Streets south of 13th Street,
with $150,000 allocated from the 15th Year grant.
CITY OF LITTLE ROCK, ARKANSAS
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Correction of a flooding problem along that channel will 68
require a total too large for a single -year project, and the
recommendation anticipates additional funding in the normal
planning cycle of Oak Forest for 16th Year construction.
A new project recommended is grants for sanitary sewer
service lines for CDBG- eligible low and moderate income
families to hook up to new or existing wastewater utility
mains. A $50,000 allocation is recommended for that
activity.
The recommendations include $100,000 for "Acquisition
Rehab." This proposed new program would acquire basically
sound but distressed houses and rehabilitate them for sale.
Most would not be economically feasible to rehabilitate. By
utilizing CDBG funds, however, the program could accept a
loss of up to $10,000 on each house, provided it is sold to
a low or moderate income family as their residence. Such
subsidies would be of the same magnitude as subsidies now
offered through CDBG programs to assist low and moderate
income owner - occupants with rehabilitation costs. An
objective of the program would be to save at least ten
houses each year which otherwise might be lost entirely from
the City's stock of housing. Many of these older homes
would be roomier than newly constructed homes of the same
value and, therefore, would better meet the needs of large
families.
The Acqusition Rehab Program can be inaugurated by utilizing
the CDBG portion of proceeds from the sale of Fletcher
Meadows (approximately $100,000). The recommended $100,000
in the 14th Year program would be the first of an annual
"loss reserve" out of each year's CDBG entitlement.
Funding of Acquisition Rehab is in addition to that
recommended for our continuing program of loans and grants
to repair and rehabilitate the residences of low and
moderate income homeowners. The forms of this assistance
are as follows:
Home Improvement Program Loans (HIP Loans). These are
principal 1- reduction loans of a maximum of $10,000 to
homeowners whose income does not exceed 80 percent of
the area median, adjusted for family size. The loans
are forgiven over a five -year period. The homeowner
must qualify for a home repair loan from a cooperating
bank for the additional amount needed to rehabilitate
the house to City code standards. The City's loans are
calculated to assemble the total rehab cost at an
effective interest rates of 3 percent, 5 percent, or
7 percent, depending on household income level.
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Forgivable Loans. Homeowners whose income, adjusted
for family size, is less than 50 percent of the area
median may qualify for a forgivable loan up to a
maximum of $10,000. Forgivable loans differ from HIP
loans in that they are made without the condition that
the applicant qualify for a bank loan, as many very low
income owners cannot. However, the home must be
rehabilitated to City code standards. If $10,000 or
less will not do that, the loan is denied unless the
applicant can get other assistance or a loan to make up
the difference. Forgivable loans may not be combined
with other CDBG assistance in such a way that the
subsidy exceeds $10,000 maximum.
Limited Repair Grants. For handicapped homeowners and
those over 62 years of age whose income does not exceed
$9,000 per year and who do not qualify for a HIP loan
or a forgivable loan, the program offers Limited Repair
Grants. The purpose is only to keep the home livable
and prevent its rapid deterioration. The grant maximum
is $5,000. It may be used to repair one or more of the
home's four major systems -- the roof, the electrical
system, water and sewer, and the gas and heating
system -- and damage resulting from failure of those
systems. No grant is made unless it will result in
rendering all four of those system functional for an
estimated five years or more.
Emergency Grants. If either the City /County Health
Department, Arkansas Power and Light Company, Arkansas
Louisiana Gas Company, or the Environmental Codes
Division certifies that an emergency condition
threatens the health or safety of an owner occupant
household or the public, and if the owner has no means
to make the needed repair, the City will secure the
repair with an emergency grant. The maximum grant is
$1,200.
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