HomeMy WebLinkAboutResolution 2015 (24) Resolution No. 24 (2015)
Pao 111111w UNTY RESOLUTION AUTHORIZING SUBMISSION OF THE
APPLICATION FOR COMMUNITY DEVELOPMENT BLOCK
N�
GRANT FUNDS ON BEHALF OF THE WEST CENTRAL
WISCONSIN COMMUNITY DEVELOPMENT BLOCK GRANT
HOUSING REGION
1 WHEREAS, Federal monies are available under the Wisconsin Community Development
2 Block Grant(CDBG)Housing Program, administered by the State of Wisconsin, Department of
3 Administration, Division of Housing, for the purpose of housing activities; and
4
5 WHEREAS, St. Croix County is one of ten counties that are part of the West Central
6 Wisconsin Community Block Grant Housing Region; and
7
8 WHEREAS, Chippewa County is designated as the lead agency for the West Central
9 Wisconsin Community Block Grant Housing Region; and
10
11 WHEREAS, it is necessary for all ten counties to approve the filing of an application for
12 the West Central Wisconsin CDBG Housing Region to receive funds for the owner occupied
13 rehabilitation assistance and homebuyer assistance program; and
14
15 WHEREAS, the St. Croix County Board has reviewed the need for the proposed projects
16 and the benefits to be gained therefrom;
17
18 THEREFORE be it resolved, that the St. Croix County Board approves the filing of an
19 application for the owner occupied rehabilitation assistance and homebuyer assistance program;
20 and
21
22 FURTHER be it resolved, that the St. Croix County Board approves Chippewa County,
23 Chippewa County Housing Authority, to take necessary steps to prepare and file the appropriate
24 application for funds under this program in accordance with this resolution.
Legal—Fiscal—Administrative Approvals:
Legal Note:
Fiscal Impact: None
.:cots . Cox, Corpora or 'guns 1 ,7/N 15 1 obe' M it c t, Interim� 1��n<a�ncc 1: a�cto� / . Ol
1'a rick ` 6 np's6n, County c minis a M/2015
07/14/15 Adopted
07/14/15 Health & Human Services Board APPROVED
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RESULT: APPROVED [UNANIMOUS] Next: 8/4/2015 5:00 PM
MOVER: Ron Kiesler, Supervisor
SECONDER: Paulette Anderson, Supervisor
AYES: Babbitt, Logelin, Novotny, Kilber, Kiesler, Anderson, Leibfried, Rasmussen
ABSENT: Lisa Ramsay
Vote Confirmation.
C. „x°istc��Zk�c ��t attcrvi.�r— �. 7/14/�015
St. Croix County Board of Supervisors Action:
Roll Call -Vote Requirement— Majority of Supervisors Present
........ ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .........
RESULT: ADOPTED [UNANIMOUS]
MOVER: Agnes Ring, Supervisor
SECONDER: Jill Ann Berke, Supervisor
AYES: Schachtner, Ring, Novotny, Sjoberg, Koch, Kilber, Nelson, Berke, Ostness, Larson,
Hansen, Kiesler, Brinkman, Peterson, Anderson, Achterhof, Leibfried, Peavey
ABSENT: Christopher Babbitt
This Resolution was Adopted by the St. Croix County Board of Supervisors on August 4, 2015
Cindy Campbell, County Clerk
Community Development Block Grant - Small Cities Housing Program
The Community Development Block Grant (CDBG) program is a federal program designed to assist low to
moderate income households by providing funding for housing, economic development and public facility
projects. The funds are awarded directly from the federal government to entitlement communities
(municipalities with populations of 50,000 or more). Funds for smaller communities are passed through
state governments for distribution to municipalities with populations below 50,000.
ELIGIBLE CDBG HOUSING ACTIVITIES
CDBG housing funds can be used for a variety of activities including:
• Rehabilitation of dwelling units.
• Removal of architectural barriers for accessibility.
• Homeownership opportunities for renters.
• Payment of relocation costs and benefits if the rehabilitation includes mold or lead hazard.
• Conversion of buildings into LMI dwelling units.
• Acquisition of real property for the construction of LMI housing with other sources of funds.
• Site improvements for the construction of LMI housing with other sources of funds.
HISTORY of the CDBG PROGRAM in WISCONSIN
When the program began (1982), the State of Wisconsin awarded small city CDBG funds to individual
municipalities through a competitive grant application process. The Federal funds were divided into
three program categories; housing, economic development and public facilities with a separate application
process for each. Over 270 communities in the State of Wisconsin have received CDBG funding for
housing. These communities have used the grants to provide no interest, deferred payment loans to
eligible households. The loan is secured by a mortgage to the municipality. When loans were repaid, the
municipalities established a revolving loan fund, and used the repaid money to assist new income eligible
households. The CDBG Housing Program requires that municipalities spend their revolving loan funds
before spending new/active grant funds they may have been awarded.
In 2012, the Wisconsin program had a major change in the application process when the State
facilitated the creation of seven regions. The regions cover all non-entitlement communities to ensure
resources are available statewide. The State has encouraged municipalities to apply through a Region.
Local units of government may apply individually but the funds available to individual municipalities are
extremely limited. The West Central Wisconsin CDBG Region formed in 2012 and is comprised of 10
counties including:
• Barron • Chippewa • Dunn • Pepin • Polk
• Buffalo • Clark • Eau Claire • Pierce • St. Croix
Chippewa County was selected as the Lead County, and as such has administrative responsibilities for
grant application submission and program administration. There is a Housing Committee comprised of a
representative from each of the 10 counties that establishes policies and procedures (within the federal
and State regulation requirements) for the Region. That committee meets twice per year with additional
meetings scheduled if needed. At this time the West Central Wisconsin Housing Region has prioritized
owner occupied rehabilitation and homebuyer assistance and has directed all of its funds towards these
two program activities.
GRANT AWARDS
The State of Wisconsin awards CDBG Housing funds every two years. Grant award allocations are based
on aggregate census data for each Region. The following statistics are considered:
• Low to Moderate Income households Unemployment factors of the
• units built prior to 1950 jurisdictions joining the regions.
• housing affordability
The chart below provides information on the first grant awarded to the West Central Wisconsin Region
and the status of that grant as of June 30, 2015. The grant contract period is July 1, 2013 to June 30,
2017. It should be noted that the State did not release the funds to the Region until November 6, 2015
more than four months after the grant period started. This delay was State induced and no fault of the
Region or its administrator. Phase 2 funds have not yet been released to any of the State Regions yet.
2012 Grant Total grant Admin Funds Activity Funds Activity Funds Balance Activity funds
Obligated Available
Phase 1 $2,184,000 $284,870 $1,899,130 $1,176,835 $712,295
Phase 2 $1,763,962 $230,082 $1,533,880 Not available Yet $1,533,880
(not yet Released)
$3,947,962 $514,952 $3,433,010 $1,176.835 $2,256,175
To facilitate administration, the Region divided the 10 counties into two sets. Counties in set one would
be served during the first 15 months of the grant and set two counties would be served the following 15
months. Counties who had never received a CDBG grant and those with small revolving loan funds would
be given priority and were included in set one. The set one counties included Barron, Buffalo, Pepin, Polk
and St. Croix. After 15 months, it was determined that it would be feasible to serve all 10 counties at
the some time. In addition, many of the set two counties had existing revolving loan funds within their
borders and those funds had to be spent before using any of the Regional funds. Based on those two
factors applicants in any of the 10 counties are now being processed on a first come, first served basis.
Applicants who reside in a municipality with a revolving loan fund are first referred to that municipality.
If that municipality has used all of its revolving loan funds, then they are served by the Region.
To date the Region has provided 54 loans. The average loan is $21,912.
County # loans County # loans County # loans County # loans
Barron 16 Clark 2 Pepin 6 St. Croix 7
Buffalo 9 Dunn 0 Pierce 1
Chippewa o Eau Claire 2 Polk 11
There are 59 municipalities in the Region with revolving loan funds. At the end of this report is a list of
these municipalities by county. 84 of the applications received by the Region were referred back to
their municipal revolving loan fund for assistance. Many of these applications were from residents in
Chippewa, Clark, Dunn and Pierce Counties who all have a significant number of revolving loan programs
within their borders. This provides some explanation regarding the number of Regional loans that have
been processed within those counties.
There are currently 104 applicants on the waiting list with applications coming in on a fairly steady
average of five per week. The number of inquiries and applications pick up significantly when outreach
news articles are published in the local newspapers (every 3-4 months). Regional Housing Committee
members have been helpful in distributing brochures and informational posters throughout their
counties and to their local agencies who serve low to moderate income clients. Information about the
program and how to apply is available on most of the county websites. Word of mouth by both
participants and contractors will bean effective outreach tool as the program grows. We are confident
that there is sufficient need in the 10 county Region to use the existing grant as well as the new grant
funds that the State is offering in the new application process.
GRANT APPLICATION
The State has announced the second application for the Regions. There is $7,633,538 available state
wide for phase 1 of this contract. The amount available for phase 2 has not yet been announced by the
federal government. The contract period for the new application has not been announced but it will be
for a 48 month period. Funds under this contract will not be available to a Region until all of the old
contract funds have been obligated. This application is due August 14, 2015.
According to the State, the CUBG contract amount between the State and successful applicants will be
based on "fair share." The following factors are used to determine "fair share":
• Percentage of the total statewide household below 80% of income paying over 30% of their
income on housing.
• Unemployment rates
• Percentage of low to moderate income households compared to the rest of the state.
• Percentage of structures build prior to 1950 compared to the rest of the state.
The State reserves the right to adjust award amounts based on the following criteria:
• Funding availability/federal budget
• Performance and progress in any and all other State contracts
• Capacity to complete the proposed activities
• Other housing grants currently in force in the community
• Financial and programmatic audit results from any and all other State contracts
The application will be written and submitted by Chippewa County as the lead county. The State requires
however that all 10 member counties of the Region pass a resolution to submit the application. In
addition to passing the resolution, Chippewa County will be holding a required public hearing on August 11,
2015. A notice of this public hearing will appear in the official newspaper for each of the Region's
member counties at least two weeks prior to the hearing.
The Region will request funds for owner occupied rehabilitation and homebuyer assistance. Funds
awarded will be disbursed throughout the Region on a first come, first served basis.
For information on how the Housing Programs work please refer to the program brochures.
Municipal Revolving Loan Funds by Count
REVOLVING LOAN PROGRAMS BY COUNTY
Barron Buffalo Chippewa Clark Dunn Eau Claire Pepin Pierce Polk St.Croix
Barron Co Chippewa Co Clark Co Dunn Co Eau Claire Co Pierce Co Polk Co
C Chetek C Mondovi C Bloomer C Greenwood C Menomonie C Augusta C Durand V Ellsworth C.Amery C Glenwood City
C Rice Lake C.Chippewa Falls C Loyal V Boyceville V Fairchild V Pepin V Plum City V.Clayton C New Richmond
V Cameron C Cornell C Neillsville V Colfax V Spring Valley V Dresser V Deer Park
V Dallas C Stanley C Owen V Knapp V/T Maiden Rock V Frederic V Somerset
V Prairie Farm V Boyd C Thorp V Ridgeland T Rock Elm V Luck V Woodville
V Turtle Lake V Cadott V Curtiss T Union V Milltown
V New Auburn V Dorchester
V Withee
T Colby
T LHnn
T Thorp
T Withee
Census Data for Re ion by Count
Barron Buffalo Chippewa* Clark Dunn Eau Claire* Pepin Pierce Polk St.Croix State
Population 46,020 13,594 61,063 34,697 43,917 35,618 7,445 41,107 44,237 85,735 5,757,564
Households 19,168 5,777 23,678 13,036 16,222 13,509 3,085 15,069 18,266 32,114
Median Income $44,054 $47,384 $51,548 $43,276 $48,893 $57,113 $47,701 $59,226 $48,538 $68,426 $52,413
%below poverty level 12.8% 12.0% 11.1% 14.9% 16.3% 15.7% 12.5% 12.4% 10.8°% 7.6% 13%
Unemployment rate(May) 4.9% 4.8% 4.3% 4.6% 4.6% 4.1% 3.8% 4.0% 4.7% 3.7% 4.7%
Hshlds 65 years and older 2,554 755 2,868 1,452 1,397 1,298 413 1,072 1,955 2,091
•Households 65 yrs.&older 13% 13% 12% 11% 9% 10% 13°% 7°% 11°% 7% 10.4%
#Housing units 23,598 6,689 26,459 15,035 17,937 14,483 3,583 16,160 24,196 34,062
#Owner occupied units 13,894 4,408 17,193 10,175 11,041 10,900 2,389 11,106 14,284 24,986
#Renter occupied units 5,274 1,369 6,485 2,861 5,181 2,609 696 3,963 3,982 7,128
Median value of Housing $134,900 $140,900 $154,450 $111,700 $156,200 $172,100 $134,800 $191,300 $159,100 $206,900 $167,100
% housing Pre'80 61.3% 69.0% 60.3% 68.6% 51.5% 55.3% 62.9% 57.6% 53.4% 39.9% 62.9°%
•housing built prior to 1960 37.7% 45.8% 37.2% 44.4% 29.1% 28.3% 41.0% 32.1% 30.3% 20.8% 38.2°%
Sources: 2014 Population Estimate,WI Demographics Services Center
2009-2013 American Community Survey 5-year Estimates
*Information excludes City of Eau Claire.
HOME BUYER ASSISTANCE
The CDBG Program can also be used to complete repairs to a PROGRAM
home after it is purchased so that it passes the HQS inspection.
The assistance for the repairs would be an additional loan on the
property with the same terms as conditions as the homebuyer Funded by:
assistance loan.. Community Development Block Grant Program
Funds are available to pay for necessary home repairs such as:
* plumbing * foundations
* electrical * siding
* heating * wells/septic systems
* insulation * city water/sewer connections
* doors&windows * handicapped accessibility
* roofing improvements
Funds CANNOT be used for remodeling a home. The program Particioatin2 Areas
cannot install new luxury items, such as patio doors,bow Barron County Eau Claire Count
windows, decks, or landscaping. The program can replace these Buffalo County Pepin Count
items if they already exist in the home,but are no longer Chippewa County Pierce Count
operating properly or efficient. Clark County Polk Count
Funds CANNOT be used to reimburse you for work already Dunn County St. Croix Count
completed
FOR MORE INFORMATION CONTACT:
VAL 715-726-4580 (Barron,Dunn,Polk,Pierce,St Croix) EQUAL HOUSING OPPORTUNITY
This publication and or the activities described herein are funded by the State of
GEORGIA 715-839-2889 (Buffalo,Eau Claire,Pepin) Wisconsin,Department of Administration,Division of Housing.
LORI 715-738-2596(Chippewa,Clark)
PROGRAM DESCRIPTION AND REQUIREMENTS
To schedule an appointment, applicants must
➢ The assistance is provided in the form of a no interest loan that have the following items:
is deferred until the buyer no longer occupies the property.
The loan is secured by a mortgage and promissory note to be o An accepted offer from the seller.
recorded in second position behind the purchase loan. o A letter from their lender that they are approved for a loan,
➢ The property being purchased must be owner occupied or specifying the maximum loan amount available to them.
vacant. Properties cannot be occupied by tenants. Tenants o A Good Faith Estimate from the lender who approved the
cannot be evicted or leases terminated to facilitate the sale. loan.
➢ Applicants must meet the income limits for the county where o Applicants must have proof of their down payment match
the home to be purchased is located. assistance.
➢ Down payment assistance requires a 1:1 match. Some of the o Certification of completion of a Homebuyer Education
match can come from other assistance programs,but the buyer Program that includes pre-purchase,basics of the Home
must contribute at least S 1,000 of their own cash. Purchase Process and post-purchase expectations.
➢ Down payment assistance cannot exceed 10% of the purchase
price of the home.
➢ Applicants can also apply for closing costs,but do not need to You are income eligible for the program if your gross income
match the closing cost assistance. (before taxes)is at or below these levels. Income will be verified.
➢ The interest rate on the purchase loan cannot exceed 3% of the
current interest rate offered by WHEDA.
➢ Closing costs for the purchase loan cannot exceed$3,000 Maximum Annual Gross Income by Count
(excluding pre-paid costs such as insurance, taxes, etc.) House- Barron Chippewa hold Buffalo Eau Claire Dunn Pepin Polk Pierce
➢ Applicants must apply at least 30 days ahead of their size Clark sc Croix
anticipated closing date. More than 30 days is suggested. 1 $33,000 $36,300 $35,800 $34,450 $34,650 $44,750
The home being purchased must be inspected and must meet 2 $37,700 $41,500 $40,900 $39,400 $39,600 $51,150
Housing Quality Standards prior to purchase. If repairs are 3 $42,400 $46.700 $46,000 $44,300 $44,550 $57,550
needed to meet that standard a CDBG loan for repairs can be 4 $47,100 $51.850 $51,100 $49,200 $49,500 $63,900
used to make those repairs so that it meets the standards within 5 $50,900 $56,000 $55,200 $53,150 $53,500 $69,050
six months of the purchase. (See back page of this brochure 6 $54,650 $60,150 $59,300 $57,100 $57,450 $74,150
for details about a repair loan) 7 $58,450 $64,300 $63,400 $61,050 $61,400 $79,250
➢ The home cannot be located in a Floodplain. g 1 $62,200 $68,450 1 $67,500 $64,950 $65,350 $84,350
➢ The program will not help purchase properties that are In need *These income limits are effective May 2015.They are periodically
of repairs costing more than 25% of the appraised value. revised by the HUD.
PROGRAM DESCRIPTION AND REQUIREMENTS of Housing.
➢ Income and property ownership will be verified. HOME REPAIR
➢ If the property is being purchased on a land contract the PROGRAM
deed holder must co-sign the mortgage and promissory
note.
➢ If there is a life estate,the life estate tenant must be Funded by:
income eligible. All owners of the property must sign the Community Development Block Grant Program
mortgage. The loan is due when the life estate tenant
moves from the home.
➢ Delinquent property taxes, liens and judgments must be
paid prior to loan approval.
➢ Owners must obtain competitive bids for the repair work.
➢ The loan amount is determined using the low,complete
bid.
➢ Owners can choose their own contractor.
➢ Owners can act as their own contractor but will not be
paid for their own labor. They must provide evidence of
their ability to do the work and materials must be installed
prior to payment.
➢ Funds cannot be used to pay for work completed prior to
loan approval. Participating Areas
➢ The loans are secured by a mortgage to Chippewa County Barron County
who serves as the Regional Lead County. Buffalo County
➢ Loans are paid back in full when you no longer occupy Pepin County
the home. Polk County
St. Croix County
FOR MORE INFORMATION CONTACT VAL at:
Chippewa County Housing Authority
711 N.Bridge St.Room 014
Chippewa Falls,WI 54729 A
(715)726-4580
This publication and or the activities described herein are funded by the State of
Wisconsin,Department of Administration,Division EQUAL HOUSING OPPORTUNITY
The Housing Rehabilitation Program is a loan program designed
to assist low and moderate-income households with repairs to
their homes. You are income eligible for the program if your gross income
(before taxes)is at or below these levels.
Funds are available to pay for necessary home repairs such as:
* plumbing * foundations Maximum Annual Gross
* electrical * siding
* heating * wells/septic systems Income by County*
* insulation * city water/sewer connections BARRON
* doors&windows * handicapped accessibility HOsizeold & PEPIN POLK CROIx
* roofing improvements BUFFALO
1 $32,850 $34,400 $35,300 $45,100
2 $37,550 $39,300 $40,350 $51,550
3 $42,250 $44,200 $45,400 $58,000
4 $46,900 $49,100 $50,400 $64,400
5 $50,700 $53,050 $54,450 $69,600
6 $54,450 $57,000 $58,500 $74,750
7 $58,200 $60,900 $62,500 $79,900
8 $61,950 $64,850 $66,500 $85,050
*These income limits are effective February 2013.They are
periodically revised by the HUD.
Funds CANNOT be used for new construction or remodeling. FOR MORE INFORMATION CONTACT:
The program cannot install new luxury items, such as patio VAL
doors,bow windows, decks, or landscaping. The program can Chippewa County Housing Authority
replace these items if the already exist in the home,but are no 711 N.Bridge St.Room 014
Chippewa Falls,WI 54729
longer operating or efficient. (715)726-4580
Funds CANNOT be used to reimburse you for work already
completed