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_I �4 BOOK PAGE 4' Table 3 :Proposed Activities Activity Budget (Approximately) Construction $575,000 Engineering $115,000 Administration $60,000 TOTAL CDBG BUDGET $750,000 Matching Funds By contributing a financial match to the project, the county has the opportunity to improve its application score. With the maximum match of $150,000, the county can gain 30 additional application points and, therefore, improve the project's chances of being funded in this fiscal year. For a previous CDBG project in Wabasso, the county contributed funds for road paving as well as SHIP funds for water impact fees. During that CDBG project, staff discovered that residents of the area were reluctant to participate in the county's SHIP program due to the requirement that a lien be placed on their homes in exchange for an interest-free or low-interest loan, which would be used to pay the water impact fee of $1,300. To accommodate those residents, the county agreed to waive the lien if residents signed a promissary note to pay back the SHIP loan in monthly payments. Using a monthly payment option for SHIP loans has produced numerous problems for county staff. Many hours of staff time have been required to collect these monthly payments. Collecting monthly payments requires the county to undertake activities similar to that of a financial institution, and the county does not have the resources to be involved in such activities. For the proposed CDBG project, the county proposes to offer SHIP grants of $1,300 to qualified very low and low income households in the project area, with the grant fiords to be used to pay the county's water impact fee. In the proposed CDBG application, the county will contribute $150,000 in SHIP funds to the proposed project in Wabasso. Those funds will be available to qualified households in the project area to be used to pay the county's water impact fee. The proposed Neighborhood Revitalization CDBG application will be reviewed by the CDBG Citizen Advisory Task Force on May 22, 2000. Comments and actions from that meeting will be presented at the May 23rd public hearing before the Board of County Commissioners. With respect to the proposed Neighborhood Revitalization CDBG application, the Board of County Commissioners has three alternatives. These are: To approve the application as proposed; To approve the proposed application with changes; or To reject the proposed application. MAY 239 2000 40 -32- •