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<br />from the General Fund for 2008-09 from HSFA funds. <br /> <br />7 A (1) <br />Page 3 <br /> <br />2. Reprogramming of Prior Year Funds: The City is required by HUD to meet a Timely <br />Expenditure schedule that mandates that the City can have no more than 1.5 times <br />its annual entitlement as of May 1 each year. In 2000, the Council adopted a <br />Timely Expenditure Plan that would allow projects that were "ready to go" to be <br />allocated the oldest money in order to consistently meet this requirement without <br />losing any entitlement funding. <br /> <br />3. On January 22, 2008, the HHCC recommended an allocation of $500,000 from <br />Prior year funds to the Service League for the Hope House for Men Transitional <br />Housing Program to help the City meet its Timely Expenditure requirement. Timely <br />Expenditure activities are funded during the program year to immediately spend the <br />oldest prior year funds that are subject to commitment timelines before these funds <br />are recaptured by the federal government, pursuant to a Council adopted policy. <br /> <br />4. The Committee also recommended $210,337.51 in prior year HOME funds be <br />allocated to Site Acquisition for Affordable Housing to be available for the next <br />housing opportunity. <br /> <br />5. Program Income: The Annual Action Plan also estimates that $300,000 will be <br />received from Program Income from principal and interest payments earned from <br />home improvement loans. Income earned from the Home Improvement Loan <br />Program is dedicated back to the Home Improvement Loan program to support new <br />loans. A portion of these funds will be used to support staff and marketing costs <br />($100,000) and the remainder will be used to make new loans ($200,000). <br /> <br />ALTERNATIVES <br />Modify the recommendations as proposed for the Fiscal Year 08/09 Action Plan. <br /> <br />FISCAL IMPACT <br />.Upon submittal of an approved Action Plan, the City will receive $1,120,807 in CDBG and <br />HOME funds for housing and community development activities for Fiscal Year 2008-09. <br />Additional impacts include a recommendation for $45,000 from the General Fund for <br />Shelter Network's Red,wood Family House from HSFA funds. Approximately $300,000 is <br />expected to be received in income from loans and approximately $911 ,028 from prior year <br />funds will be reallocated to current projects. <br /> <br /> <br />f) " ~' <br />/- (?I .i;u---<,~ a) . './tu~ <br />Patricia J. Webb <br />Housing & Economic Development Manager <br /> <br />IJft:a'uo~ e!~~ <br />Chu Chang ~ <br />Acting Community Development Dire tor <br /> <br />