Title
Proposed Amendment of 2013 Community Development Block Grant (CDBG) Action Plan to include Section 108 Loan for Downtown Safety Improvements
Recommended Action
Committee Recommendation:
Hold a public hearing to consider amendment of the 2013 CDBG Action Plan to include the proposed Section 108 loan for downtown safety improvements
City Manager Recommendation:
Hold a public hearing to consider amendment of the 2013 CDBG Action Plan to include the proposed Section 108 loan for downtown safety improvements. Following the Public Hearing, keep the written record open until 5:00 p.m., Monday, January 6, 2014.
Report
Issue:
Should the city amend its 2013 CDBG Action Plan to include the proposed Section 108 loan for downtown safety improvements, including alley lighting and pedestrian improvements?
Staff Contact:
Leonard Bauer, Deputy Director, Community Planning @ Development, 360.753.8206
Presenter(s):
Leonard Bauer, Deputy Director, CPD
Background and Analysis:
The City created a Section 108 Loan Program in 2012. The HUD Section 108 loan guarantee program enables local governments to obtain federally guaranteed loans by pledging their current and future CDBG allocations as security for low-interest loans. The City may also provide Section 108 loan funds to private parties for eligible activities. Under this program, communities can borrow up to five times their most recent CDBG award for eligible projects that meet the national CDBG objectives. Unlike annual CDBG awards, these Section 108 loans must be repaid within 20 years.
HUD has approved Olympia's Section 108 Loan Guarantee Fund in the amount of $1,756,000. The loan fund will continue to be available through September 30, 2018, or until all funds are expended. The city may access the loan fund for eligible activities pursuant to 24 CFR 570.703, including land acquisition, clearance, demolition, removal, site preparation, housing rehabilitation eligible under 570.202, e...
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