01-0876R

RESOLUTION APPROVING THE 2002 ACTION PLAN PORTION OF THE CONSOLIDATED PLAN AND AUTHORIZING A REQUEST FOR HUD FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG), HOME PROGRAM AND EMERGENCY SHELTER GRANT (ESG) PROGRAM FUNDS.

BY COUNCILOR GILBERT:

        WHEREAS, Regulation 24 CFR Part 91 issued by the U.S. department of housing and urban development (HUD) requires the city to submit and receive HUD approval of an annual action plan as part of a HUD-approved five-year consolidated plan for the city of Duluth; and

        WHEREAS, Title I of the Housing and Community Development Act of 1974, as amended, establishes a community development block grant (CDBG) program for the purpose of developing viable urban communities by providing decent housing and suitable living environment and expanding economic opportunities and preventing and/or eliminating conditions of slum and blight, principally for persons of low and moderate income; and

        WHEREAS, the city of Duluth desires to continue to carry out HUD-funded programs;

        NOW, THEREFORE, BE IT RESOLVED, that the FY 2002 action plan portion of the city of Duluth consolidated plan for housing required by HUD federal legislation is hereby adopted and approved.

        BE IT FURTHER RESOLVED, that the city of Duluth hereby makes a finding that expenditures as set forth in Resolution 01-0877 are necessary and appropriate and, further, that said expenditures for the CDBG program will serve to assist low- and moderate-income individuals/families (no less than 70 percent as described in federal regulations) and/or serve to prevent or eliminate conditions of slum or blight in the community.

        BE IT FURTHER RESOLVED, that the city of Duluth hereby makes a finding that expenditures as set forth in resolutions 01-0878 and 01-0879 are necessary and appropriate and, further, that said expenditures for the HOME and ESG programs will serve to assist low- and moderate-income individuals/families.

        BE IT FURTHER RESOLVED, that the city of Duluth and its officials are authorized and directed to assume full responsibility for assuring that its community development program is carried out in full compliance with the provisions of the acts implementing the programs and all regulations of HUD issued pursuant thereto and authorizing appropriate city officials to execute any documents with HUD to implement the program. This authorization shall also apply to existing programs with the city and HUD under the HUD CDBG, HOME and ESG programs.



STATEMENT OF PURPOSE:  This resolution reflects comments from organizations and citizens as related to funding for three HUD-funded programs; the community development block grant (CDBG) program, the HOME program, and the ESG program. In addition to citizens and subcommittees, five neighborhood planning districts, Duluth Housing Commission and the community development committee (CD committee) each played a role in the recommendations contained in the resolution. There was also a 30 day public comment period from November 2, 2001, to December 2, 2001, on the draft 2001 CDBG, HOME and ESG programs. The CD committee held a public hearing on December 4, 2001, to hear comments on the funding recommendations and then modified its initial amounts to reflect those comments. The final recommendations were approved on December 4, 2001.

The resolution, in addition to authorizing application for grant funds and administration of same when received, also takes the following actions:
        (a)     Approves a FY 2002 action plan portion of the FY 2001-2005 consolidated plan under HUD regulations;
        (b)     Allocates funds from the 2002 HOME and ESG programs;
        (c)     Allocates funds to the projects as listed for the 2002 CDBG program;
        (d)     Authorizes execution of documents with HUD.

Sources of funds:
 
$  828,000 in new 2002 HOME program funds
$  125,000 in new 2002 ESG program funds
 3,543,000 in new 2002 HUD CDBG funds and $289,943 reprogrammed CDBG funds (1998, 1999, 2000, and 2001 CDBG program)
$3,543,000 2002 CDBG funds
    289,943 Reprogrammed CDBG funds
$3,832,943 2002 CDBG program total