Title
Review of Community Development Block Grant Loan Portfolio
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Receive a report on the City's Community Development Block Grant (CDGB) Loan Portfolio and discuss ways to manage program income.
Report
Issue:
Whether to discuss how the City should manage its CDBG loan portfolio and how program income from loans receivable should be incorporated into CDBG strategic planning?
Staff Contact:
Anna Schlecht, Community Service Programs Manager (360) 753-8183
Leonard Bauer, Deputy Director, Community Planning & Development, (360) 753-8206
Presenter(s):
Anna Schlecht, Community Service Programs Manager
Background and Analysis:
History of CDBG Funding Since 1982, the City of Olympia has received more than $13 million in federal CDBG funds. Nearly 40% of these total CDBG funds were invested in housing rehabilitation loan projects that generate program income. While some of this program income is received in the form of monthly payments, the majority of Program Income is generated by property sales of these secured loans. The current outstanding balance of this CDBG loan portfolio is $4,918,867.
Annual CDBG Allocations As part of the CDBG Annual Action planning process each year, staff present an estimate of what the anticipated CDBG program income will be, allowing the Council to allocate both new annual CDBG entitlement funds along with anticipated program income. In the most recent Program Year 2016 (September 1, 2016 - August 31, 2017),City staff estimated there would be $150,000 in program income, which was presented as follows:
$340,892 - Annual CDBG Entitlement Funds
$150,000 - Estimated Program Income
$490,892 - Total Program Year 2016 Funds
Recent Trends Over the past 10 years (2005 - 2015), the City has received a total of $2,797,840 with a yearly average of $254,349. As stated above, the majority of these CDBG repayments come from property s...
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