Minutes 04/22/2014 - Laserfiche WebLink

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April 22, 2014 • The United States Congress appropriated the CDBG-R program with the American Recovery and Reinvestment Act of 2009, commonly referred to as "stimulus funds." • HUD designed the CDBG-R fund to address housing needs for low- to moderate income (LMI) persons and simultaneously stimulate the economy, specifically with construction projects that could start and be completed quickly. It therefore set a project closeout deadline of March 31, 2013. • The City engaged the Portsmouth Redevelopment and Housing Authority (PRHA) as its grant sub-recipient to remove blight from, and construct new single-family homes on properties in Cradock. To achieve the CDBG-R national objective, PRHA pledged to sell the developed properties to income-qualifying families for their occupancy. • The City also allocated CDBG funds for PRHA to dispose of blighted properties at 1020 High Street and in the 1500 block of High Street. Discussion: • PRHA did not complete the disposition of the Cradock properties by redeveloping them and closing on the sale to LMI persons by the March 31, 2013 deadline. • HUD has demanded that the City repay $243,578 in CDBG-R program funds because it failed to meet the national objective. • The City requested repayment over three fiscal years beginning with FY15. HUD rejected this schedule and stated that the $243,578 be paid in full by June 30, 2014. • PRHA also did not complete the disposition of the blighted properties at 1020 High Street and in the 1500 block of High Street. • On March 27, HUD Director Ronnie Legette recommended the prompt repayment of the $19,328.26 and $36,600.06, respectively, that PRHA spent to date on these long-standing open activities. Financial Impact: • The appropriation of $302,722.33 will reduce the General Fund balance. Recommended Action: • Adoption of the ordinance. Vision Principles: Quality of Life and Lifelong Learning Community. Next Steps Following Council Action: • Reimburse the City's U.S. Treasury line-of-credit in the amount of $302,722.33 from the FY14 General Fund. Motion by Mr. Meeks, and seconded by Mr. Edmonds, to adopt the following ordinance, and was adopted by the following vote: "ORDINANCE TO APPROPRIATE THE SUM OF $ $302,722.33 IN THE FY 2013-14 GENERAL FUND TO REPAY THE U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM- RECOVERY PROJECTS UNCOMPLETED BY FY 2013-14 DEADLINES." Ayes: Cherry, Edmonds, Meeks, Psimas, Randall, Wright Nays: Moody 14 - 164 -Adoption of an ordinance accepting Shelter Plus Grant funds in the amount of $458,436 from the U.S. Department of Housing and Urban Development and appropriating said amount in the FY 2013-14 Grants Fund for use by the Department of Behavioral Healthcare Services to provide rental assistance to chronically homeless Portsmouth residents. Vision Principles: Neighborhoods and a Sense of Community, Quality of Life and Lifelong Learning Community.