HomeMy WebLinkAboutM-03-036525
Model City
REVITALISATION TRUST
To: Honorable Mayor and
Members of the City Commission
From: Marva L. Wiley on behalf of the Model City Trust
Subject: Replacement of HOME Investment Partnership Funds
Date: March 17, 2003
RECOMMENDATION:
It is respectfully requested that the City Commission approve the attached
resolution authorizing the use of the $3 Million FY 2003 allocation of Homeland
Defense/ Neighborhood Improvement Bond designated for Model City
Infrastructure as replacement funds for $1.8 Million in HOME Investment
Partnership Funds used for property acquisitions in FY 2002 and additional
acquisitions anticipated in FY 2003.
BACKGROUND:
As you know, the Model City Homeownership Zone Pilot Project is in its
acquisition phase. During fiscal year 2002, approximately $1.8 million of HOME
Investment Partnership Funds that had been appropriated for the Model City
Homeownership Zone ("Zone") Pilot Project were utilized for the acquisition of
properties in the Zone.
In a letter dated February 14, 2003, the Department of Community Department
advised the Model City Trust that the Department had disallowed the costs
incurred in Fiscal Year 2002 because of its finding that the Trust's expenses did
not conform with the Department of Housing and Urban Development's
("HUD") Regulation. Specifically, the HUD regulations require that the project
have a reasonable expectation of commencement within twelve (12) months of
the participating jurisdiction (the City in this instance) setting up the expense in
the federal information and disbursement system (i.e. IDIS).
The $1.8 Million in acquisitions occurred between February and June of 2002, yet
construction on the project has not occurred in one year of the February+
acquisitions and is not expected to occur within one year of the June 2002
acquisitions. As you will recall, the Model City Trust's acquisition effort has
been delayed in part due to the amount of time required for processing the
environmental clearance and a variety of changes in administration. Further,
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construction may not occur until Spring 2004 with the projected release of a
Request for Proposals for the Phase I Development anticipated in Summer 2003.
In order to resolve these issues and minimize additional delays in the acquisition
phase that have already produced discontent among contracted property
owners, the Trust proposes that the funds designated for the Model City
Infrastructure Improvements in FY 2003 be reprogrammed to replace the HOME
Funds utilized in FY 2002 for acquisitions. You should note that one of the
eligible uses of HOME Funds is infrastructure; thus, the HOME Funds released
with the replacement of Homeland Defense/ Neighborhood Improvement Bond
proceeds may be available for the infrastructure uses anticipated for the
Homeland Defense/ Neighborhood Improvement Bond proceeds. The Trust
believes that this proposal will have no net impact on the program or the Model
City Trust's overall program funding.
/MLW
03- 365