SPECIAL LEGISLATIVE, FINANCE AND ADMINISTRATION COMMITTEE

A Special Legislative, Finance, and Administration Committee meeting was held on February 7, 2005, at 5:12 p.m. with Chairman Salters presiding. Members present were Mr. Hogan and Mr. Shevock. Mr. Slavin and Mr. Shelton were absent. Members of Council present were Mr. Sadusky and Mr. Ruane. Mayor Speed was also present.

AGENDA ADDITIONS/DELETIONS

Mr. Hogan moved for approval of the agenda, seconded by Mr. Shevock and unanimously carried.

Reallocation of Community Development Block Grant Funds

In accordance with the Housing and Urban Development (HUD) 1.5 Timeliness Standard, the City must have a balance of funds less than 150% (1.5 times) of the annual CDBG Allocation 60 days before the end of the program year. The City’s total available CDBG funds as of January 11, 2005 were $580,292.34. The 2004 Entitlement allocation was $326,000 and the City may only have $489,000 in unexpended funds remaining at that time. At least $91,293.00 must be spent by April 30, 2005 to meet the 1.5 times threshold requirement. Failure to meet this standard may result in the City's formula-based entitlement award being reduced by the amount over the threshold.

The Community Development Advisory Committee (CDAC) met on January 11, 2005 to propose recommendations for the reallocation of Community Development Block Grant (CDBG) funds that were allocated to projects that had not progressed. These included the small business loan funds (Economic Development Loan '01 $14,316.99, Strategic Economic Development '02 $35,000 and Move in Move Up Loan '02 $45,000), the House of Pride assistance (Suitable Living Environment '04, $25,000) and First time homebuyer counseling funds (NCALL '01 $14,778.85). The Committee recommended reallocating these funds for home repair assistance, first time homebuyer assistance and for the street projects. Members were provided detailed information on the unexpended CDBG funds for all program years, the CDBG funds currently available for reallocation, and the anticipated expenditures of CDBG funds by April 30, 2005.

Staff recommended the reallocation of funds, as recommended by the CDAC, as follows:

         Funds allocated from NCALL homeownership counseling

         to Homeownership assistance for first time homeowners                                       $14,778.85

         2004/05 Streets Project - Funds needed to complete South New Street                  $57,000.00

         Housing Rehabilitation Program – To be used for projects on the

         waiting list                                                                                                               $62,316.99

         Reallocation Total                                                                                                 $134,095.84

Mr. Galvin advised members that there may be an additional $1,000 leftover from 1995-96 programs as well, which will be reported once the exact amount is determined. Responding to Mr. Salters, Mr. Galvin stated that housing rehabilitation and small business loan repayments are retained for Community Development activities.

Mr. Hogan moved to recommend approval of staff’s recommendation, seconded by Mr. Shevock and unanimously carried.

Mr. Hogan moved for adjournment, seconded by Mr. Shevock and unanimously carried.

Meeting Adjourned at 5:22 P.M.

                                                                                    Respectfully submitted,

                                                                                    Reuben Salters

                                                                                    Chairman

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