Title
Briefing on Community Development Block Grant (CDBG) Action Plan Amendment to Include Section 108 Loan
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Receive the briefing and direct staff to hold a public hearing to amend the City's Community Development Block Grant (CDBG) Action Plan for Program Year (PY) 2017 to include Section 108 loan funds for the Avalon project on the former Griswold's property, and forward the amended plan to U.S. Department of Housing and Urban Development (HUD) for approval.
Report
Issue:
Whether to receive a briefing and directing staff to hold a public hearing on amending 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
Renee Sunde, Economic Development Director, Community Planning and Development
Background and Analysis:
In 2013, HUD approved Olympia's Section 108 Loan Guarantee Fund in the amount of $1,756,000, which is backed by a pledge of Olympia's current and future annual CDBG entitlement. 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. 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 analyses for its Se...
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