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:
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.