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HomeMy WebLinkAboutResolution - 2010-R0158 - Approval Of Recommendation Of The Reallocation Of Funds From CDBG Block Grant - 04/08/2010Resolution No. 2010-RO158 April 8, 2010 Item No. 5.1.1 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Council of the City of Lubbock does hereby approve the recommendations of the City of Lubbock Community Development and Service Board (CDSB) for the reallocation of unspent funds from the Community Development Block Grant (CDBG), and (CDBG) Revolving Loan. Said recommendations are attached hereto and incorporated in this resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council this April 8 _ , 2010. Aa --- TOM MARTIN, MAYOR ATTEST: Rebecca arza, City Secretary APPROVED AS TO CONTENT: Phyl ' Brown, Interim Director Community Development APPROVED AS TO F S gs res-COL-CDSery Board reallocation unspent funds 3 42010 Resolution No. 2010-R0158 Community Development and Services Board Recommendations A Public Hearing to discuss and vote on reallocation of unspent federal funds was conducted by the Community Development and Services Board on February 17, 2009 at 6:00 p.m. The recommendations of the Community Development and Services Board (CDSB) for the reallocation of unspent funds from the Community Development Block Grant (CDBG) are listed on the table below. The Board voted to approve the following funding recommendations. Source Agency/Organization CDBG City of Lubbock, CD CDBG City of Lubbock, CD CDBG Revolving Loan City of Lubbock, CD Total CDBG Proiect/Activity Home Exterior Energy Efficiency Loan Program Miscellaneous Rehab Cost Housing Rehab Loan Home Exterior Energy Efficiency Loan Program (HEEELP) Proposed FundinLy City Council originally voted to allocate $153,653 to this project during the regular allocation process for FY 2009-2010. The vote was held on June 23, 2009. The additional funds will be used to leverage with the weatherization program to make the homes more energy efficient. The addition of the $63,176 will bring the total amount of funding for the fiscal year to $216,829. Miscellaneous Rehab Cost The funds will be used to pay for credit reports, title searches, lead base paint cost, etc., for cases that do no get approved for funding for various reasons. Funds are also for an escrow account to pay for insurance and taxes on Housing Reconstruction Loans. Housing Rehab Loan The funds come from a CDBG Revolving Loan Program with the loans being serviced in-house. This program was set up to continue to revolve funds for single family housing rehabilitation loans. Loans will be made to eligible low -to -moderate income households located in targeted areas to rehabilitate their homes. The loans are made at a Below Market Interest Rate of three percent (3%) and the payments will revolve back into the Revolving Loan Program to eventually be loaned out again. $63,176 10,000 125,000 $198,176