Explanation
BACKGROUND: This ordinance authorizes the transfer of cash and appropriation and authorizes the expenditure of 2019 HOME Investment Partnerships Program (HOME) grant funding from the U.S. Department of Housing and Urban Development (HUD) for the Department of Development’s Division of Housing and authorizes the appropriation and expenditure of 2018 HOME program income that is a supplemental funding source for the HOME grant in program year 2019, as identified below:
FY 2019 G451901 Fund 2201
· Transfer cash and appropriation of $7,985.72 from OC 01 to OC 05
· Transfer cash and appropriation of $29,928.35 from OC 03 to OC 05
· Authorize appropriation and expenditure of $1,239,026.17 in OC 05
Program Income in 2018 G451801 Fund 2201
· Authorize appropriation and expenditure of $426,446.32 in OC 05 (program income)
An additional ordinance is anticipated in the future to authorize the appropriation and expenditure of 2019 HOME grant funds for CHDO Set-a-Side projects as required by HUD.
In 2018, the Department of Development changed how it prepares its annual HOME budget and when program income is used. Before the 2018 budget/program year, program income was to be used in the same year it was received. In 2018 and later, program income is receipted the year it is received, but it is not utilized in the budget (expended) until the following year. In FY 2018, $426,446.32 of program income was received and none of it was appropriated in 2019 as the first few ordinances put forth appropriated 2019 grant funds.
This legislation represents appropriation for the HOME portion of the 2020 Action Plan, per Ordinance 2162-2019.
This legislation also authorizes the Director of Development to use these funds to enter into contracts to assist first time homebuyers, for-profit, and non-profit organizations with grants and no or low interest loans for projects designed to increase and preserve the local supply of decent, safe, sanitary, and affordable housing fo...
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