Title
Public Hearing on 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:
Hold a public hearing to amend the City's CDBG Action Plan for Program Year (PY) 2017 to include Section 108 loan funds for the Avalon project on the former Griswold's property.
Report
Issue:
Whether 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):
Keith Stahley, Director, Community Planning and Development, 360.753.8227
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 an outside entity, 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 analyses for its Section 108 loan program. Section 108 loan projects must also be included in the City's CDBG Action Plan, after public review in accordance with the city's Citizen Participation Plan. The Pla...
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