DISCLAIMER

 

06-0541R


RESOLUTION TRANSFERRING FUNDS IN THE AMOUNT OF $40,000 IN THE 2005 HUD HOME INVESTMENT PARTNERSHIPS(HOME) PROGRAM AND APPROVING A FIRST AMENDMENT TO THE TENANT-BASED RENTAL ASSISTANCE PROGRAM CONTRACT.

BY COUNCILOR GILBERT:

     RESOLVED, that the proper city officials are authorized to make the following transfer of funds in the Federal Fund 260-020-5434, Project CD05HM, 2005 HUD-funded community development accounts as set forth below:

Project #

Project

Budget amount

New amount

Amount of increase or decrease

GN05-1736

Tenant-based tental assistance

$70,000

$110,000

 $40,000

GN05-2239

Homebuyer down payment assistance

$40,000

-0-

($40,000)

Also, approving an extension of time from September 30, 2006 to March 31, 2007, and increasing the contract from $70,000 to $110,000.


STATEMENT OF PURPOSE:  The purpose of this resolution is to amend the HOME program agreement with the Duluth Housing and Redevelopment Authority (HRA) for their tenant-based rental assistance program. The program provides rental housing vouchers, similar to the Section 8 program, for up to 17 households who were formerly homeless or at-risk of becoming homeless. The resolution extends the term of the agreement until March 31, 2006, and increases the amount of the agreement by $40,000, to a total amount of rental assistance provided of $110,000. The resolution does not provide any additional funds to the HRA for administration of the program.


     The $40,000 in HOME Program funds were originally allocated to Neighborhood Housing Services (NHS) in 2004 for a homebuyer down payment assistance program. NHS informed the city on February 2, 2006, that they had no intention of utilizing the $40,000 as they could not proceed with the program. Their stated reasons for not going forward were the withdrawal of a mortgage program by a lender that was to be a companion to the HOME funds, and that NHS was unaware of the HOME program regulation requiring assisted housing units comply with building codes and they anticipated this would be a barrier to successfully delivering the program.