TO: Mayor and City Commission
FROM: Samuel A. May, City Manager
DATE: February 6, 2019
Title
DISCUSSION AND POSSIBLE ACTION - MAXIMUM ALLOCATION FOR HOME REPAIR AND HOME PURCHASE ASSISTANCE
BACKGROUND: At the January 23, 2019 Commission meeting, consensus was given to bring back for discussion and possible action, a reduction in the maximum allocation for grant funded home repair and purchase assistance.
• The current maximum allocation for home repair via the SHIP program is $25,000 including service delivery costs. Service delivery costs can vary and reduce the amount by up to 15% from what can be used to fund home repairs and direct purchase assistance. The amount for purchase assistance and home repair via the CDBG and HOME program is a maximum allocation of $40,000.
o Staff recommends that a maximum allocation be determined that does not include service delivery costs. This will make it clear and consistent as to what direct benefit can be received by each homeowner.
o Based upon guidance and backup (attached) provided by Broward County, staff does not recommend a reduction in the allocation. As an alternative to a reduction of the allocation for all recipients, staff recommends that the Commission consider full funding for very-low and special needs recipients, and varying reductions in the allocations for low and moderate income recipients.
• Program documents provide for leveraging of funds. This could allow an individual homeowner to receive a total allocation that is more than the maximum per grant fund. Leveraging of other sources of funding is encouraged by funding agencies but is at the discretion of the City.
o Staff recommends that rather than eliminating leveraging, that a maximum amount of leveraged funds be determined by the City Commission. This will allow for instances where a small addition of funds from another source could make the difference in whether a large item, such as storm windows, can be completed.
• Changes to the maximum allocation will require that the City amend associated program documents. Each grant has requirements for advertising and public comment periods when amending program documents. If the Commission recommends an adjustment to the maximum allocations, it will take approximately 45-60 days to implement any change. Changes to current and prior year’s funding could cause confusion and delays to applications in progress and impact expenditure timeliness requirements.
o Staff recommends that if the maximum allocation is to be amended, that the change be effective for grant program years identified as either 2019-2020 or 2020.
RECOMMENDATION: Discussion and possible action (direction to staff to amend program documents if the Commission desires to adjust the maximum allocations for all grant funds).
See additional recommendations above.
FISCAL IMPACT: To be determined. Possible impacts of advertising costs; as well as, an increase in administration and service delivery costs.
CONTACT PERSON: Samuel A. May, City Manager