AgdaPkt 2013-01-28 - Laserfiche WebLink

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6.3.A. - Page 2 contiguous jurisdiction where the project is located. This amendment will provide the City with the opportunity to invest HOME funds in eligible housing activities physically located in contiguous jurisdictions when they will benefit Redwood City residents and address needs, strategies and goals identified in the City's Consolidated Plan. HOME entitlement funds received by the City must be committed to an eligible project within a 24 month statutory timeframe or they will be recaptured by HUD and no longer be available to the City. 15% of the annual HOME entitlement funds are required to be set aside for use by Community Housing Development Organizations (CHDO's). A CHDO is a specific type of nonprofit organization and there are limited types of activities they can use the HOME set aside funds to conduct. The City has had its HOME CHDO set aside funds recaptured in some past years due to the limited number of certified CHDO's with eligible projects. This amendment will help the City with the commitment and expenditure of these funds by expanding the locations where the CHDO set aside can be used. Annual Action Plan A substantial amendment to the 2012-2013 Annual Action Plan (Action Plan) is required to include the addition of a new project to be funded that was not included in the Action Plan approved by the City and submitted to HUD. The City received a proposal for HOME funds from HIP Housing Development Corporation (HIP), a Community Housing Development Organization (CHDO) for a multifamily rental rehabilitation project in November 2012. The project includes the rehabilitation of a 12 unit apartment building located on Willow Road in Menlo Park. The HHCC reviewed the proposal from HIP in November 2012 and recommended the 2012-2013 Action Plan be amended to include this project and recommended funding it in the amount of $92,197.00 from unallocated 2012-2013 HOME CHDO set aside funds and HOME housing funds. The project is located in a contiguous jurisdiction and will benefit Redwood City residents in addition to Menlo Park residents. These HOME funds expire and will be recaptured by HUD on June 30, 2013 if they are not committed and expended. Citizen Participation Plan Since the adoption of the first Plan HUD has issued policy guidance that requires additional items to be included. The amendments recommended by the HHCC update the Plan to include these HUD requirements related to clarifications of public hearings, notifications and comment periods for Consolidation Plans, Action Plans and amendments. They also require the Consolidated Annual Performance Evaluation Report (CAPER) process be delineated in the Plan and the City's anti-displacement policy added to the document. Other minor changes to the Plan include updates to addresses, titles, grammar, format and removal of the reference to the Human Services Financial Assistance program as it these funds are no longer available. ALTERNATIVES Do not approve the recommended amendments.