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79111 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 me" = = = wbm = m m m 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 65 2 -17 0-13 mom 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. 66 W 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 67 W = = = =AMN W W 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. Mir W M M M 69 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. ES /TD:jwl