HomeMy WebLinkAboutcover memoCITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
ro . Tlie Honorable M.a or.and
Mclr rs of Th'CLty Comm.
rRor,t :
Joe . rri la.
City a.ger
RECOMMENDATION:
DATE:
SLJJCT
30th Year CDBG Funds — FILE
Economic Development Policy
PEPERENCF s : City Commission Agenda.
March 11, 2004
ENCL )SL )PE_S:
It is respectfully recommended that the City Commission adopt the attached Resolution, with.
attachment, adopting policies, attached and incorporated, related to the allocation of 30th Year
Commtmity Development Block Grant ("CDBG") funds in the Economic Developin.ent
category.
BACKGROUND:
Under the entitl.ernent formula, the U.S. Department of Housing and Urban Development (U.S.
HUD) has advised the City that the projected 30th Program Year entitlement for the CDBG
Program will be approximately $9,928,000. The funding of CDBG proposals in the category of
Economic Development for the 30`t' Program Year will conf nn to the City Commission.
direction to the Administration. that funds be divided among the Districts based on the U.S. HUD
formula allocation distribution by District provided in the chart below. This chart is based. on the
2000 census.
District 1. -
21.2%
District 2 -
15.2%
District 3 -
23,9%
District 4 -
16. l %
District 5 -
23.6%
Total
100.0%
It is recommended that the CDBG allocation for the 30ttr Prog,ram Year, less the amount set aside
for Section 3 Monitorin.g and Enforcement, be funded through the Request for Proposals (RFP)
process and with focus on the following eligible "speci.al economic development" project types:
':• Commercial or Industrial Improvements
o Acquisition
o Construction
o Rehabilitation (Commercial Facade Treatment Program)
o Reconstruction
o Installation of commercial or industrial buildings or structures
Assistance to private for profit entities
o Grants
o Loans
o Loan guarantees
o Interest supplements
o Technical Assistance
The Section 3 Monitoring and Enforcement program will be administered by the Department of
Corns. unity Development to ensure compliance with Section 3 of the Housing and Urban
Development Act of 1968, 12 U.S.C. 1701u, as amended, so that employment and other
economic opportunities generated by certain federally -assisted activities, to the greatest extend
possible, are directed to low- and very low-income residents, particularly those who are
recipients of governmental assistance for, housing, and to business concerns which provide
economic opportunity to low- and very low-income residents.
The commercial or industrial improvements (Commercial Facade Treatment Program) was
modified by the City Commission in June 2003 to increase the award cap for a single -business
project from. $2,000 to $5,000 and add the following eligible project types: fences, resurfacing of
parking lots and parking lot infrastructure. Participating businesses will be required to provide
matching funds according to the following chart:
Awar-ti_Amount Matching Funds
$2,000 and below 5%
$2,001 to $4,000 10%
$4,001 to $5,000 15%
Tlie Code compliance program, under the Economic Development category, is designed to
provide financial assistance to eligible businesses that have received. a notice of violation.
Conditions that qualify for assistance under this program are electrical, building, fire, and
plumbing, mechanical, and ADA compliance. The program will finance seventy percent (70%)
of the cost of repairs, up to a maximum of $10,000 per business. The remairad.er of the cost, at
least thirty percent (30%), must be provided by the business. Code Compliance assistance for
residential violations is available under the Housing category.
.It is recommended that the City Commission adopt the attached Resolution, with attachment,
adopting policies, attached and incorporated, related to the allocation of 30`1' Year Community
Development .Block Grant ("CDBG") ;funds in the Economic Development category.
The proposed Resolution does not have a budgetary impact on the General Fund.
H/BGR