Agenda Item Title:
Approve Allocation of Program Income Repaid From Former CDBG Projects to the City’s Simplified Living Program
Legal & Finance Committee
Origination Meeting Date:
City Council Hearing Date:
Agenda Item Summary:
Community Development has received program income from 2 loan payoffs from CDBG funded projects in the amounts of $39,976.23 and $4,307.15 = $44,283.38. The City may use 20% of the program income towards FY2017 Administrative costs of the Community Development Division =$8,856. The Investment Committee recommends that the Council approve allocating the $8,856 to Administration and the balance of $35,427.38 to the City Simplified Living Program for acquisition or rehabilitation of properties, demolitions of substandard housing and infrastructure costs for new smaller rental units for low-income households. Additionally the Committee became aware that there is another CDBG property listed for sale that could return approximately $10,000 +/- within the next month or two. In order to utilize the additional program income as quickly as possible, it is requested and recommended by the Investment Committee that Council include approval for allocation of the approximate $10,000 to the City Simplified Living Program less 20% for Program Administration.
Funding Source & Fiscal Impact (if applicable):
|Program Income received from loan payoffs from 317 East Indiana Street and 23 Melano Street in Rapid City, SD and a possible third property in the approximate amount of $10,000.|
Origination Recommendation Action:
Origination Recommendation Notes:
The Investment Committee recommendation is that Council approve reallocation of the current program plus the expected funds from the third property, if received before March 31, 2018, of $54,283.15 less the allowed 20% for Program Administration of $10,856.68) to the City Simplified Living Program in the amount of $43,426.47.