TO: Mayor and City Commission
FROM: Cale Curtis, City Manager
DATE: July 7, 2021
Title
PUBLIC HEARING - ACTIVITIES FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT PARTNERSHIP PROGRAM (HOME) PROGRAM ALLOCATIONS FOR 2021 PROGRAM YEAR.
BACKGROUND: The City of Margate has received an annual allocation of $301,408 for the Community Development Block Grant (CDBG) Program and $110,669 Home Investment Partnership Program (HOME) for the 2021 program year. These funds will be administered by Broward County pursuant to the Urban County Cooperation Agreement and ILA already approved by the City Commission. As part of these programs, the City Commission is to approve, on an annual basis, the projects for the allocations.
Broward County staff recommends that the City Commission allocate this funding to benefit low to moderate income (LMI) homeowners in Margate with a maximum of $100,000 in grant funds toward housing rehabilitation programming and the remainder for down payment assistance programming. Housing rehabilitation has become difficult due to increased construction supply costs and finding contractors willing to undertake the projects. While Margate has seen a decrease in available homes for sale, as have other cities, Margate still has affordable homes available that meet the program requirements. Lenders have also been providing incentives in conjunction with grant funding, in order to facilitate home purchases by program applicants.
Under the Urban County Cooperation Agreement, Broward County will provide up to $50,000 in down payment assistance and up to $40,000 of minor home repair assistance for low-moderate income households. Broward County staff does not recommend an increase in these amounts for the 2021 program year allocation. Although costs have increased for rehabilitation projects, County staff seeks additional bids, when necessary, to make repairs within individual recipient funding limits. Rehabilitation is directed to hardening and mitigation for health and safety, which generally includes roof, windows, doors, air conditioning, and emergency repairs.
RECOMMENDATION: It is recommended that the City Commission approve a Motion that a maximum of $100,000 be allocated for home rehabilitation projects and the remainder of CDBG and HOME funds be allocated towards home purchase assistance projects, subject to consideration of any public comments provided during the 15-day comment period.
FISCAL IMPACT: No direct fiscal impact to the City.
CONTACT PERSON: Cale Curtis, City Manager
Yvette Lopez, Manager
Broward County Housing Finance & Community Redevelopment Division