12/20/1994 - Laserfiche WebLink

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M M M Since the subject area has a high number of low and moderate income residents, one source of funding for the desired infrastructure improvements is the Community Development Block Grant Program. This program has not been a viable option for the county in the past, because the county must compete with many other local governments in the state for. available CDBG funds and funding formulas have, in the past, been structured to limit the competitiveness of relatively affluent counties such as Indian River. Currently, however, the State Department of Community Affairs is engaged in rulemaking to change the formula and program requirements of the small cities CDBG program. As proposed, DCA's draft rule still penalizes the county for its relatively low percentage of households below the poverty level and low percentage of inadequate housing units. In reviewing the proposed rule, staff has determined that the county may be able to structure a fundable project. To do so, however, the county must structure its proposed project to obtain as many score points as possible. Among other things, this will require the county to provide a match of approximately 22% for the program. According to the proposed rule, Indian River County will be in a category where applicants. are eligible for grants of up to $750,000.00. In its application, the county will score points based on the nature of the project and the number of low and moderate income households benefiting from the project. Road paving is one of the eligible grant activities. Other eligible activities are the provision of water and/or sewer and minor housing rehabilitation to upgrade the plumbing system of units with inadequate plumbing. All of these are activities which will score maximum points. ANAYSIS Staff review indicates that the referenced subdivisions constitute an appropriate target area. Because of the low/moderate income characteristics of the area, staff feels that a project can be designed to include the minimum of 84 low/moderate income households which must benefit in order to obtain a maximum $750,000.00 grant. With an estimated $600,000.00 cost to do the road paving in the proposed area, staff has determined that benefits can be increased and points maximized by also extending water lines throughout the project area as well as providing SHIP deferred payment loans to low and very low income residents to connect to the water system. Funding for the project would come from the CDBG program in the amount of $750,000.00, with matching county funds in the amount of $160,000.00. This match would come from budgeted petition paving funds and would constitute the 25% match which the county commits as a match to all petition paving projects. In addition to those monies, up to $200,000.00 in SHIP funds would be used for water impact fees and minor rehabilitation of plumbing systems for low and very low income residents. N December 20, 1994 BOOK .3 PA,L