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April 25, 2017 <br /> <br />Background: <br /> <br /> The city of Portsmouth has received federal Community Development funding from <br />HUD (through the Community Development Block Grant (CDBG) and/or HOME <br /> <br />Investment Partnerships (HOME) Programs) since 1974. <br /> <br /> The purpose of the CDBG and HOME Programs is to provide grant funding for <br />urban areas to address older housing stock, aging infrastructure, deteriorated commercial <br />and industrial buildings, Brownfield sites, and other blighting influences, as well as to aid <br /> <br />low to moderate income areas and residents. <br /> <br /> Since Federal Fiscal Year 2009, the city has received a total $14,166,183 in CDBG <br />funding and $4,449,756 in HOME funding; in its most recent annual allocation from HUD, <br /> <br />the City received $1,396,964 in CDBG funding and $350,573 in HOME funding. <br /> <br />Discussion: <br /> <br /> The current proposed federal budget for Federal Fiscal Year 2018 eliminates <br /> <br />CDBG and HOME grant funding. <br /> <br /> The city has used its CDBG and HOME allocations for several purposes: providing <br />homeownership, home rehab, and lead paint elimination funding, assisting with the <br />construction of affordable housing (including the Westbury neighborhood, Phoebus <br />Square, and four regional Single Room Occupancy (SROs)); providing assistance to the <br />homeless and those at risk for homelessness; providing transportation and self- <br />sufficiency assistance for the disabled; providing transportation assistance for senior <br />citizens; and providing assistance for children through meal programs, transportation, <br />recreational opportunities, and other youth programs; and demolishing blighted <br /> <br />structures. <br /> <br /> The city has also used this funding for infrastructure improvements, including the <br />installation of sidewalks in six areas of the city and construction of intersection and other <br />transportation improvements, as well as the development of recreational amenities like <br />the Splash Park, field, gym, and playground improvements at Brighton Elementary, <br />Cavalier Manor, City Park, and the Sports Complex, and the development of the linear <br /> <br />park along Frederick Boulevard. <br /> <br /> CDBG and HOME are the only federal grant programs which comprehensively <br /> <br />address the challenges faced by urban core areas. <br /> <br /> The loss of CDBG and HOME funding will leave budgetary holes in the areas of <br /> <br />affordable housing, infrastructure improvements, and resident services. <br /> <br />Financial Impact: <br /> <br /> Based on the last allocation from HUD, the elimination of the CDBG and HOME <br />programs would reduce federal funding to the city by approximately $1.75 million. <br /> <br />Recommended Action: <br /> <br /> Adoption of the resolution. <br /> <br />Next Steps Following Council Action: <br /> <br /> <br /> The City Manager and Intergovernmental Affairs Manager will forward a copy of <br />the resolution to the city’s congressional delegation and work with the congressional <br />delegation to oppose the elimination of federal funding. <br /> <br />Motion by Mr. Cherry, and seconded by Ms. Psimas, to adopt the following <br />resolution, and was adopted by the following vote: <br /> <br />“RESOLUTION OF THE COUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA <br />OPPOSING THE ELIMINATION OF FEDERAL FUNDING FOR THE COMMUNITY <br />DEVELOPMENT BLOCK GRANT AND HOME INVESTMENT PARTNERSHIPS <br />PROGRAMS. <br /> <br />WHEREAS, <br /> as an older urban core area, the City of Portsmouth, Virginia faces <br />the fiscal stresses common to such areas, including an abundance of older housing stock, <br />aging infrastructure, and average income levels below the median; and <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />