HomeMy Public PortalAbout191.2 - Housing and Community Development - General - Community Development Block GrantHousing Department Section 191.2
191.2 SUBJECT: COMMUNITY DEVELOPMENT BLOCK GRANT
:1 OBJECTIVE:
Address local housing and community development needs through the provision of
assistance in the form of housing and community development activities to benefit low-
and moderate-income residents. .
:2 AUTHORITY:
This procedure amended by City Council July 19, 2004, Item A6.
:3 DIRECTION:
Housing Division Manager under the supervision of the Housing Director.
:4 METHOD OF OPERATION:
A. The city may assign all or a part of its CDBG funds to specific programs/activities
that fulfill its housing and community development goals and objectives. If there
are remaining funds, the city shall distribute those funds through a Request for
Proposals (“RFP”) process. Staff develops and advertises a Request for Proposals
soliciting project proposals consistent with applicable federal regulations for the
specific activities that are outlined in the CDBG program description. The City
may contract with outside loan underwriters and/or other financial consultants to
help devise the RFP, application forms, or other appropriate documents, and to
review proposals or relevant portions thereof regarding the feasibility,
creditworthiness, and economic viability of proposed projects. Projects submitted
in response to a CDBG RFP may be funded through the SHIP or HOME program
if the projects meet eligibility criteria and are recommended for funding by the
SHIP/HOME Selection Committee. In special instances where a project clearly
meets the city’s housing and community development goals and objectives, but
time constraints make the issuance of an RFP infeasible, project may be approved
directly by City Council. Any interested person may suggest projects to be
funded from the annual CDBG allocation. However, no person who is an
employee, agent, consultant, officer, or elected or appointed official of the City,
nor any City Board member whose Board makes recommendations or gives
advice with respect to CDBG projects, may obtain a financial interest or benefit
from a CDBG assisted activity (other than to share in the general public benefit
from such CDBG activities as capital improvement projects), or have any interest
in any contract, subcontract or agreement with respect thereto, or the proceeds
thereunder, either for themselves or those with whom they have family or
business ties. Notwithstanding the foregoing, a City employee, agent, consultant,
officer, elected or appointed official, or City Board member, who otherwise meets
the financial and other requirements of the City's Owner Occupied Housing
Assistance Programs, may receive the benefits of said program under the same
terms and conditions as the public at large.
In January of each year, the Housing Department will recommend to City Council
the method for distributing CDBG funds for the next fiscal year.
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Housing Department Section 191.2
B. CDBG funds shall be awarded as grants or payback or deferred (forgivable) loans
to eligible projects. Grants shall be awarded and not expected to be repaid.
Loans shall be awarded with security, typically a lien, and may be subject to
foreclosure in the event that the recipient does not fulfill the conditions of the
assistance. The City may waive documentation such as appraisals, surveys,
applicable title policies, etc. as a part of the closing, and will be forgiven at the
end of a predetermined period of time if the residency requirements of the loan
have been met. Payback loans may be awarded with below market interest rates
based on the needs and financial feasibility of the project or with no interest and
payment of principal after a predetermined period of affordability. Proposed
projects are reviewed for funding eligibility pursuant to applicable federal
regulations.
C. No project shall receive funding if the owner of such project shall, at the time of
application or at the time of award, be in default on any obligation such owner
may have with the City or any other governmental agency. For the purposes of
this policy an owner shall include, but not necessarily be limited to, all partners of
any partnership with an ownership interest in the project and any stockholder who
owns ten percent (10%) or more of the outstanding stock of any corporation with
an ownership interest in the project.
D. A committee comprised of citizens, known as the CDBG Review Committee,
shall review all eligible project proposals with staff input and make funding
recommendations. CDBG Review Committee members are appointed by the City
Commissioners (1 member per district) and one representative will be appointed
by the Orlando Housing Authority. The The Committee’s funding
recommendations are forwarded to the City Council for final action.
E. City Council shall review the recommendations, which would include the amount
of funding for each project and the terms of the award.
F. Approved projects are incorporated into City’s Annual Action Plan, which is
submitted to the U. S. Department of Housing and Urban Development on an
annual basis.
:5 FORMS:
Proposed Project Outline
:6 COMMITTEE RESPONSIBILITIES:
As indicated above.
:7 REFERENCE:
Title 24, Code of Federal Regulations, Part 570.300. Procedure adopted by City
Council August 23, 1982, Item 19A; amended June 4, 1984, Item 12 (A-8); amended
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Housing Department Section 191.2
August 26, 1996, Item 7B; amended September 29, 1997, Item 3-YY; amended
September 15, 2003; amended July 19, 2004, Item A6.
:8 EFFECTIVE DATE:
This procedure effective July 19, 2004.
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