City receives extra $300,000 in CDBG money

The city is getting $306,700 more than it anticipated in federal community development block grant (CDBG) money for fiscal year 2010.

Overall, the city will receive a total of $2,406,701 in CDBG funds. The money is provided by the Department of Housing and Urban Development (HUD) to assist the city in carrying out a wide range of community development activities, with an emphasis on activities that benefit low and moderate income people.

Cities with over 50,000 residents, like Lakewood, are eligible to receive CDBG dollars. In the event the city drops below the required threshold, it can still get funding, but it was to work through the county, where the results are not as certain. This is one reason why a good showing in the 2010 Census is especially crucial for the city.

Administrative recommendation

Lakewood’s director of planning and economic development met on May 20th with the Citizens Advisory Committee (CAC) — the group charged with making allocation recommendations to city council — and presented his suggestions on how to spend the additional $306,700.

He suggested the following levels of fund distribution:

$100,000 – Economic Development Fund (job creation for people of low to moderate income). This doubles the original allocation to $200,000.

$87,958.50 – Street Reconstruction. This is 17.8% greater than the original allocation for a new total of $581,366.

$50,000 – Commercial Revitalization (storefront program). Total funding for this program would be $150,000, a 50% increase.

$50,000 - Vacant Property Revitalization Program. This would double the total funding to $100,000.

$10,000 – Administration for Planning and Development Dept. Funding would increase 2.4%  for a total of $430,000.

$5,000 – Madison Park Improvements. A 20% increase for a new total of $30,000.

$3,742.50 - YMCA Section 108 Obligation. A 6.8% increase  for a new total of $58,742.50.

Human service offerings like the yard service program and case management services for older adults are not eligible to receive any loot because their allocations are capped at 15% of the overall sum.

One-time paint program

The director of planning and economic development also suggested to the CAC that roughly $30,000 in leftover funds from various extinct programs be channeled to create a one-time only exterior paint program.

Modeled after a similar deal in Cleveland, vouchers would be awarded to income eligible residents whose homes or garages need a paint job and have already run into trouble with the city or are at risk of being cited.

For some reason, though, the city isn’t capable of administering the program themselves, and would hand it off to LakewoodAlive, which would collect a modest administrative fee.

Check out the director’s letter to the CAC outlining his funding recommendations (.PDF).

See the CDBG funding requests versus actual allocations (.PDF).

View the original funding applications.

Council must approve the final allocations; they usually follow the CAC’s recommendations.

And get ready, the city is now accepting CDBG applications for next year.


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