Title
Approval of Community Development Block Grant (CDBG) Action Plan Amendment to Include Section 108 Loan for the Avalon Project
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve the amendment to the City's CDBG Action Plan for Program Year (PY) 2017 and direct staff to submit the attached application for Section 108 loan funds to HUD for the Avalon project on the former Griswold's property.
Report
Issue:
Whether to amend the City's CDBG PY 2017 Action Plan to include Section 108 loan funds for the Avalon project.
Staff Contact:
Leonard Bauer, Deputy Director, Community Planning and Development, 360.753.8206
Presenter(s):
Leonard Bauer, Deputy Director, Community Planning and Development
Background and Analysis:
In 2013, the U.S. Housing and Urban Development Department (HUD) approved Olympia's Section 108 Loan Guarantee Fund in the amount of $1,756,000. This pledge facilitates the city's access to the Section 108 Loan Guarantee Program to fund eligible activities pursuant to 24 CFR 570.703 that may include acquisition, clearance, demolition, removal, site preparation, eligible housing rehabilitation, economic-development activities, or public facilities. Section 108 loan funds may be awarded to a private party, or to the City for a public project. Olympia's first loan was completed in 2014, for downtown safety improvements that provided accessibility improvements at State Avenue and Columbia Street, and alley lighting installation throughout downtown.
As Olympia identifies project-specific Section 108 loan proposals to be funded, each project undergoes a full financial underwriting analysis. The City has contracted with the National Development Council to perform underwriting analysis for its Section 108 loan program. Section 108 loan projects must also be included in the City's Community Development Block Grant (CDBG) Action Plan, after public review in accordance with ...
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