Explanation
BACKGROUND: The purpose of this ordinance is to return of $185,310.73 to the U.S. Department of Housing and Urban Development (HUD) for the Community Development Block Grant (CDBG), Home Investment Partnerships (HOME) and Neighborhood Stabilization Program (NSP).
The first portion of returned CDBG funds totals $57,578.03 for the repayment of funds drawn on prior year activities for the Department of Development, Division of Code Enforcement. CDBG funds were spent on property maintenance contracts for abandoned properties around the City. The cost of the maintenance is assessed to the property and when the property is sold, the assessment is paid to the City through the real estate transaction. The amount of $57,578.03 represents the assessment paid to the City for CDBG eligible properties but is ineligible as program income and must be returned the HUD.
The City has received a refund from the State for overpayment of Bureau of Worker’s Compensation Insurance paid in prior years. The City Auditor has determined the portion overpaid for each grant managed by City administration. The total BWC rebates for the HUD grants is $127,732.70 that must be returned to HUD. ($14,866.40 HOME fund 2201) ($112,845.72 CDBG fund 2248) ($20.58 NSP fund 2220)
EMERGENCY: It is necessary to declare an emergency to immediately return the funds as required by HUD rules and regulations; to properly account for the returned funds; and to make the funds available for future use.
FISCAL IMPACT: $57,578.03 in property assessments was deposited as program income for CDBG activities and $127,732.70 has been refunded for BWC overpayment and was deposited as program income. Funds in the amount of $185,310.73 will be returned to HUD and will increase the respective grant lines of credit as funds available to the City for future use.
Title
To authorize the appropriation of $170,423.75 within the CDBG Fund (2248), $14,866.40 within the HOME Fund (2201), and $20.58 withi...
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