Historic Pres Homeowner Grant PMEMORANDUM
February 26, 2003
TO:The Honorable Mayor and City Council Members
FROM:Michael C. Van Milligen, City Manager
SUBJECT:Correction to February 26 Budget Meeting
On February 24 I forwarded the materials for the February 26 Budget hearing. Included
in those items were a December 23, 2002 letter from the Historic Preservation
Commission and my response of December 26, 2002. Mistakenly excluded from the
packet was a revised letter from the Historic Preservation Commission dated
February 20, 2003.
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Planning Services Department
Dubuque, Iowa
February 20, 2003
The Honorable Mayor and City Council
City of Dubuque
50 W. 13th Street
Dubuque, IA 52001
RE: Request for $20,000 for the Historic Preservation Homeowner Grant Program
Dear Mayor and City Council Members,
The Historic Preservation Commission supports the programs that the City of Dubuque
provides with CDBG (Community Development Block Grant) funds from the federal
government to benefit low and moderate income households.
The Commission also applauds the City Council's vision for our community:
Dubuque is a city of history, beauty, oppotfunities, and excitement.
Dubuque: A Masterpiece on fhe Mississippi.
The Historic Preservation Homeowner Grant Program supports this vision. The
program also addresses the goals and objectives of the CDBG program, including:
Retention of affordable housing stock.
Increasing the availability of safe, affordable, permanent housing for Iow and
moderate-income families.
Restoring and preserving properties of special historic, architectural and
aesthetic value.
The Historic Preservation Commission respectfully requests maintaining the annual
allocation of $20,000 in CDBG funds for this program. We continue to see active interest in
this program by Iow and moderate homeowners in our historic districts. In fact, many of
program recipients to date have been Iow income households, earning less than 50% of
area median income.
A $10,000 allocation in FY04 will provide funds for only two households. We expect that
the past level of interest will continue in FY04, and that such a small allocation will create a
FY04 CDBG Allocation
February 20, 2003
Page 2
waiting list or will delay much needed rehabilitation.
In the FY04 CDBG budget, we noted an overall increase in funding for Housing
Development Programs. We also found that the Historic Preservation Homeowner Grant
Program had the largest percent decline of any housing program: a 50% decrease.
We believe that reducing the program now, when it is succeeding, is not appropriate. We
strongly feel that the program should be maintained at its annual allocation of $20,000.
We respectfully request maintaining the annual allocation of $20,000 in CDBG funds for
the Historic Preservation Homeowner Grant Program in the FY04 CDBG budget.
Historic Preservation Commission
Planning Services Department
City Hall
50 West 13th Street
Dubugue. Iowa 52001
December 23, 2002
Michael Van Milligen, City Manager
City of Dubuque
50 W. 13th Street
Dubuque, IA 52001
SUBJECT: Allocation of $20,000 in the FY04 CDBG Annual Action Plan for the
Historic Preservation Homeowner Grant Program
Dear Mr. Van Milligen,
The Historic Preservation Commission supports the programs that the City of Dubuque
provides with CDBG (Community Development Block Grant) funds from the federal
government to benefit Iow and moderate income households.
The HPC does not support, however, the recommendation of the Community Development
Advisory Commission to allocate only $10,000 in the FY04 CDBG Annual Action Plan to
the Historic Preservation Homeowner Grant Program (see enclosed spreadsheet).
The Historic Preservation Commission respectfully requests maintaining the annual
allocation of $20,000 in CDBG funds for this program.
BACKGROUND
As the result of a twelve-month community input process undertaken by the HPC, the City
Council approved revised guidelines for the Historic Preservation Homeowner Grant
Program and created the Historic Preservation Revolving Loan Program in March 2001.
Prior to these revisions in the Historic Preservation Homeowner Grant Program, this
program was underutilized. The program was changed from a $2,000 grant with a required
match of $2,000 to a forgivable loan (i.e., grant) of $5,000.
We continue to see active interest in this program by iow and moderate homeowners in our
historic districts. In fact, many of program recipients to date have been iow income
households, earning less than 50% of area median income.
The Historic Preservation Homeowner Grant Program supports goals and objectives of
the 2001-2006 Consolidated Plan for Housing and Community Development. Federal
FY04 CDBG Allocation
December 23 2002
Page 2
statutes set basic goals against which community performance under a consolidated
plan is evaluated. The Historic Preservation Homeowner Grant Program addresses
several of these goals, including:
>Retention of affordable housing stock.
>Increasing the availability of safe, affordable, permanent housing for iow and
moderate-income families.
>Restoring and preserving properties of special historic, architectural and
aesthetic value.
DISCUSSION
In FY02, the City Council allocated $20,000 to the Historic Preservation Homeowner Grant
Program. The Community Development Advisory Commission supported this request.
in FY03, the Community Development Advisory Commission recommended only $5,000 for
the Historic Preservation Homeowner Grant Program. With your support, the program was
restored to the $20,000 annual allocation requested by the HPC.
The Community Development Advisory Commission's recommendation of a $10,000
aflocation in FY04 will provide funds for only two households. We expect that the past
level of interest will continue in FY04, and that such a small allocation will create a waiting
list. We believe that reducing the program now, when it is succeeding, is not appropriate.
We strongly feel that the program should be maintained at its annual allocation of $20,300.
BUDGET IMPACT
In comparing the FY03 CDBG budget to the FY04 CDBG budget, we noted a $90,989
increase in funding for Housing Development Programs. We also found that every program
within this category has been approved for a funding increase or for the same level of
funding in FY04- except the Historic Preservation Homeowner Grant Program. The FY04
reduction of the Historic Preservation Homeowner Grant Program by $10,000 is a 50%
decrease in funds from FY03.
We noted that the FY04 CDBG budget includes an increase of $75,300 for the Homeowner
Rehab Program, from $344,700 in FY03 to $420,000 in FY04. This is a 22% increase from
FY03, and is the largest dollar increase in the Housing Development category. We
understand that the $420,000 is $20,000 less than the $440,000 allocation requested by
FY04 CDBG Altoca§on
December 23 2002
Page 3
the Housing and Community Development Department, and that funding levels were
reduced for a number of line items to balance the overall FY04 CDBG budget.
E the F"Y04 CDBG allocation of the Homeowner Rehab Program was increased by only
$65,300.00, then this program still would have a 19% increase over F'Y03. This lower
increase in the Homeowner Rehab Program would allow for an additional $10,000 in
CDBG funds to be allocated to the Historic Preservation Homeowner Grant Program. This
suggested change would maintain all housing programs at or above the FY03 level.
RECOMMENDATION
The Commission appreciated your support in the past, and asks for your support again.
We respectfully request that you recommend to the City Council maintaining the annual
allocation of $20,000 in CDBG funds for the Historic Preservation Homeowner Grant
Program in the FY04 CDBG Annual Action Plan.
Sincerely,
Christopher Wand, Chairperson
Historic Preservation Commission
enclosures
cc City Council
Historic Preservation Commission
Community Development Advisory Commission
COMPARISON OF FY03 AND FY04 CDBG ANNUAL ALLOCATIONS FOR HOUSING PROGRAMS
Housing Program
First Time Homebuyer Program
Historic Preservation Homeowner Grant
Homeowner Rehab Grant
Housing Administration
Housing Code Enforcement
Housing Rehab Services and Staff
Purchase/Rehab/Resale DREAMS)
Rental Unit Rehab
FY03 Budget FY04 Approved
by CDAC
Difference % Change FY04 Suggested
FY04-FY03 from FY03 by HPC
$95.000 $100000 $5.000 5% $100
$20~000 $10.000 ($10,000) -50% $20
$344.700 $420.000 $75.300 22% $410
$53~777 $59.522 $5,745 11% $59
$86.463 $97.258 $10,795 12% $97
$243.410 $247.559 $4,149 2% $247
$15.000 $15.000 $0 0% $15
$60.000 $60.D00 $0 0% $60
000
000
000
522
258
559
000
000
Difference
FY04-FY03
$5,000
$0
$65.300
$5,745
$10.795
$4.149
$0
$0
% Change
from FY03
5%
0%
19%
11%
12%
2%
0%
0%
Housing Totals $918.350 $1.009,339 $90.989 10% $1.009.339 $90.989 10%
CITY OF DUBUQUE, IOWA
MEMORANDUM
December 5, 2002
To: Michael C. Van Milligen, City Manager
From: David Harris, Housing and County and Development
Subject: FY 2004 Annual ActionPtan
Introduction
The Community Development Advisory Commission is submitting the attached Fiscal Year 2004 Annual Action
Plan to you for inclusion in the annual City budget. The Commission reviewed and approved the plan at a public
hearing on December 4, 2002.
Discussion
The attaohed FY 2004 Annual Action Plan provides for use of Community Development Block Grant (CDBG)
funds for the anticipated entitlement of $1,482,000 and anticipated revenues of $561,907, for a total of
$2,043,907. A public hearing must be held following a 30 day public comment period. Last year the public
hearing was scheduled in February for the joint department budget work session for Housing and Commllltity
Development, Economic Development, and planning Services.
The Commission reviewed all the various departmental requests that were included in this year's budget
submlmion. The proposed budget was $74, 996 over the avable funds so the Commission voted to reduce
funding for the following projects:
Historic Preservation Rehab Grants from $20,000 to $10,000
Homeowner Relmb Program from $440,000 to $420,000
Commercial/Industrial Building Rehab Loans from $100,000 to $93.000
Economic Development Financial Assistance Program from $100,000 to $93,000
Economic Development Services and Staff from $122,996 to $120,000
Handicap carb ramps from $55.000 to $40,000
Neighborhood Infrastructure Impmvemerrts from $50,000 to $40.000
Zoning Inspection/Enforcement from $13,000 to $10,000
The reductions in funding balanced the FY 04 Annual Action Plan with the available g2,043,907 CDBG funds
and created a $2,553 contingency.
Recommended Action
I recommend that the attached FY 2004 Annual Action Plan be included in the City budget and a public hearing
be scheduled for the joint department budget work session Please notify my office as to the scheduled date so
proper public notification can be prepared.
Prepared by Angie Kramer, Community Development Specialist
Ccc: Bill Bantu. Economic Development Director
Lama Carstens, planning Services Director
1dike Koch, Public Works Director
Pm~l~ne Joyce, Admln~qtmtive Services Manager
COMMUNITY DEVELOPMENT BLOCK GRANT
Proposed FY 2004 ANNUAL ACTION PLAN
Funding Sources Program Income (Revenue)
Estimated Entitlement $ ~1,482,000 Park and Rec 2,845
Program Income $ 561,907 ED Loans 64,062
Total Sources $ 2,043,907 Housing 4@5,00£
I CDAC Approved 12/4/02 I -r~ R~v 5~
Housing Development Programs: ~Fy-~03 .... Approved Changes
\N~I~AL'.P[:At FYO4Plan from Budget~FP~O~ FY
First Time H°mebuyer Pro, ram 95.000 100,O00 ~+$ 5 ~ 000
HistoficPreservationRehabGrant 20,000 10,000 -10,000 I- 10~000,~
Homeowner Rehab Program 34~ ?'700 420,000 -20,000 + 75,300
Housin~ Administration 53 ~ 777 59,522 + !'5;, 7~,5
Housing Code Enforcement 86,463 97,258 + 10,795
Housing Rehabilitation Services and Staff 2h~ ~ 4t 0 247,559 + 4, I h9
Purchase/P. ehab/Resale (DREAMS) 1 5 ~ 000 15,000 0
Rental Unit Rehabilitation 60~ 000 60,000 0
Housing Totals ~18,350 1,009,339 + 90,
Economic Development Programs: Approved
. FY 04 Plan
Commercial/industrial Buildin~ Rehab Loans 93,000! -7,000
E.D. Financial Assistance Pro,rem 93,000 -7,0D0
Economic Development Services and Staff 120,000 -2,g96
Economic Development Totals 306,000
Neighborhood and Community Approved
Development Programs FY 04 Plan
Child Care ResourcefReferral - Project Concern 8,575
Community Parlnership Pro, ram (CP2)* 100,000
Deer Management Food Program 1,00D
:)owntown Resource Guide 3,500
Dubuque Dispute Resolution Center 1,000
Handicap Curb Ramps 40,000 -15,000
information & Referral - Project Concern 24,339
Leadership Trainin~ 5,000
NeighborhOOd Development Staff 76,754
Neighborhood Infrastructure improvements 40,000 -10,000
Nei~jhborhood Recreation Program 129,947
Neighborhood Support Grants 30,000
Senior Center 20,000
Washin~on Tool Library- Oper New View 15,500
Zoning Inspection/Enfomemeot 10,000 ' -3,000
Neighborhood & Comm. Develop. Totals 505,616
Planning & Admini~.~,afion Programs: Approved
FY 04 Plan
;DBG ^drain. Services and Staff
CDBG AdminlMonitodn~ 53,419
Finance 10,694
City Planning Services and Staff
Piannin~ Adminisffation 13,555
Planning City Planning 112,731
Ptannin~.l and Administration Totals 220,399
Contingency 2,553
TOTAL CDBG 2,943,907 -74.996
F:\Users~,KRAMERV~DBG~,nnuaIPtan¥[FY {}4 plan.x~s]CDAC 04 0 ...... -':--
MEMORANDUM
December 26, 2002
TO:Christopher Wand, Chairperson, Historic Preservation Commission
FROM:Michael C. Van Milligen, City Manager
SUBJECT:Allocation of CDBG Funds for Historic Preservation Homeowner Grant
Program
I appreciate the concern you expressed on behalf of the Commission regarding the
need for continued suppod of the Historic Preservation Homeowner Grant program.
This is a very worthwhile program and I know the Community Development Commission
had many difficult decisions to make in providing a budget recommendation for Fiscal
Year 2004.
I would note that the program you suggested reducing in order to provide additional
funds for this program was not increased from the prior year. In fact, It was reduced
from $43(},00 to $420,000. When reviewing the change from the pdor year, you were
seeing only the CDBG funded portion of the program, in Fiscal Year 2003 the program
was funded in part by rehab loan repayments of $85,300. These funds are used every
other year as matching funds for the state HOME program.
Although I agree that this program.is very worthwhile and regret the need for a
reduction in Fiscal Year 2004, I am unable to recommend the funding change you have
proposed and am not wi/ling to recommend a cut in other worthwhile CDBG programs. I
wili be recommending to City Council the funding level for the Historic Preservation
Homeowner Grant Program recommended by the Community Development
Commission.
Michael C. Van Milligen
MCVM:pj
cc: Historic Preservation Commission
Community Development Commission