Community Development Business Group

Transcription

1 Mission Statement It is the mission of the Community Development Business Group to formulate and implement programs designed to improve the quality of the City s neighborhoods, to create and retain jobs, and to expand and protect the tax base. Primary Functions The services provided in this Division are organized around seven different areas of focus: CDBG Administration Staff perform day to day activities, including planning, formulating applications, reviewing performance, accounting, acquiring land, and conducting environmental assessments. In addition, staff provides assistance to various groups including the Citizen Participation Committee, the Historical Preservation Commission, the Homestead Board, and non-profit development corporations. Economic Development Provide technical and financial assistance to the City s industrial and commercial businesses. Neighborhood Development Administer all City housing rehabilitation and new construction programs, including housing acquisitions, demolitions, homeless programs, and community assistance program projects and coordinate the efforts of others to bring about economic, physical, and social improvements in selected neighborhoods. Neighborhood Standards is a unit of Neighborhood Development. They are responsible for the enforcement of exterior elements of properties under the Property Maintenance Code, Zoning regulations and Neighborhood Standards Ordinances. Neighborhood Standards coordinates efforts in cooperation with Police, Public Works, Building, Zoning, and Legal to maintain clean, safe and appealing neighborhoods. Home Program Annual Federal housing grant program designed to fund operating and project expenses for Community Housing Development Organizations (CHDO) that rehabilitate housing, offer homesteading opportunities for low-income homebuyers either through new construction or rehabilitation of residential properties, and fund housing rehabilitation for existing low-income homeowners. American Dream Initiative This program provides a loan in the form of a mortgage, forgiven over five (5) years for six percent (6 percent) of the purchase price. No payments are required as long as the property remains owner occupied and is maintained for the term of the loan. Neighborhood Initiative Grant - Swedish American Medical Foundation (SAMF) The Swedish American Medical Foundation signed an agreement with the City of Rockford to administer grant funds received from a 2004 grant. The $298,000 grant is being used to compliment the MidTown North plan. SAMF has begun work on converting a vacant lot and turning it into a Donor s Park. They have installed additional lighting at the Kids CD-4

2 Around the World Playground and have installed several driveways and garages to existing properties within the community. Brownfields Cleanup Revolving Loan Fund Provide funding to clean up contaminated property and return Brownfield properties into productive uses Accomplishments Economic Development Restructured Business Loan program to allow for greater risk reduction. Partnered with the Human Services Department to better leverage our loan programs. Also, processed applications for small business assistance. Assisted in the retention and expansion of manufacturing employment through granting of a HUD Section 108-loan guarantee for Mega Manufacturing. Assisted companies and homeowners in the State Enterprise Zone on development and redevelopment projects. Expanded the State Enterprise Zone. Assisted potential entrepreneurs through the Self-Employment Training program and microenterprise loan program. Created cooperative loan program with Northern Illinois Community Development Corporation to leverage loan resources to small businesses. Continued to work with area and regional organizations on the expansion of economic development in the region. Participated in the attraction of major logistics companies, Lowes Distribution Center and United Parcel Service Heavy Air Cargo, to the City of Rockford that will provide employment opportunities to more than 700 persons. Assisted with the expansion of several manufacturing companies that will provide increased employment to more than 200 persons. Reestablished the façade program and assisted several downtown businesses with renovation, redevelopment, rejuvenation. Created the Kishwaukee/Harrison Redevelopment Planning Area to assist manufactures in one of the City s oldest industrial areas. Neighborhood Development Monitored SWIFT s completion of the South Main Focus Area Revitalization Strategy. CD-5

3 Developed in-house Licensed Lead Inspectors to monitor presumed lead rehab programs. Use of these inspectors reduced cost by eliminating third-party inspections and reduced time-lines for project completions. Completed the 2006 Annual Action Plan, which were submitted to the Department of Housing and Urban Development. Provided rehabilitation and homebuyer assistance to owners of property within the Mid Town North and South Main Focus areas, as well as the general ADDI target area in northwest Rockford. Also, continued to work with the Mid Town North neighborhood group who completed one neighborhood clean ups during the year. Submitted a McKinney-Vento Continuum of Care Homeless Grant to the Department of Housing and Urban Development with a total request of $1,376,219 with the sponsors Janet Wattles Mental Health Center, Promised Land Employment Services, Carpenter s Place, American Red Cross, City of Rockford (HMIS), His Glory Belvidere Mission, and Youth Services Network. Notification is expected in late 2005 or early Completed the construction of 12 West Side Alive! homes. Four of the twelve homes have been sold. Four housing Tax Increment Financing Districts were completed: Lincolnwood II (18 single family units), Garrison School (20 new condominiums and 14 apartments), River Oaks (63 townhomes/ranch style condominiums) and HOPE VI (104 units 57 rental and 57 for sale units). Administered the Community Assistance Program. This program provides financial assistance to community/neighborhood based organizations to address identified needs in the areas in which they serve. Financial assistance was provided to 15 community/neighborhood-based organizations to address identified issues in the areas in which they serve totaling $200,000. Monitored the completion of an Analysis of Impediments to Fair Housing Choice in the City of Rockford. Provided financial assistance for special community projects to RAMP for the ramp building program, RAAHC for counseling services, the Fair Housing Board to promote fair housing and Contact to administer the Infoline service. Completed nearly 100 environmental reviews for city projects including housing rehab, housing construction and economic development activities. Also performed environmental reviews for Self Help Homeowner Opportunity Program (Habitat for Humanity) and the Burpee Museum/ Discovery Center expansion project. Neighborhood Standards completed the following: Responded to over 7,000 plus requests for service from citizens lodging complaints concerning Ordinance violations. CD-6

4 Completed violation sweep of South Main Target area to gain compliance, seed interest in rehabilitation programs and compliment Cunningham Street road improvement project. Sweep resulted 177 complaints generated against 146 identified properties. Participated in grant application process for the Weed and Seed program through the Department of Justice. Completed prototype enforcement sweep of proposed targeted geographical area for limited high visibility Ordinance violations. 327 properties were cited of 689 in the enforcement area. 538 violations were cited on those properties. Participated in development of an updated Customer Service System to gain greater transparency by elected officials and more efficient operational mode. Instituted new methods of capturing quicker access to assessed fines and fees through property assessments vs. liens against property sales Goals and Objectives Economic Development Provide support for private for-profit investments creating primary jobs and/or providing retail/service employment within the business TIFs, West State street nodes of commercial activity, current State-Certified Enterprise Zone, and/or North Main nodes of commercial activity through the CDBG funded and City funded Small Business Loan program. Support low/moderate income entrepreneurs by making investments through the Microenterprise Investment Match Program and by providing Self-Employment Training. Make one Section 108 Loan to assist in job retention and employment growth. Assist in the creation of a Comprehensive Economic Development strategy for the City of Rockford and Winnebago County. Develop Minority Business Enterprise, Women Business Enterprise, and Disadvantaged Business Enterprise opportunities in the City of Rockford. Create tools and strategies to assist in the growth of the commercial and industrial employment base in the City of Rockford. Assist in the removal and or reuse of blighted and underutilized manufacturing and commercial structures. Neighborhood Development Assist in the completion and then implementation of the South Main Focus Neighborhood Revitalization area plan. CD-7

5 Sell the remaining eight (8) West Side Alive! homes to complete the West Side Alive! program which included the construction and sale of 24 single family homes. Identify additional resources to complement and enhance current rehabilitation efforts. Continue activities identified in the Mid Town North - A Plan for Provide funding to community projects including: RAMP, RAAHC Pre and Post Purchase Counseling Program, Fair Housing, Infoline, as well as other agencies through the competitive Community Assistance Program. Work with the Planning Department to develop neighborhood plans for the College-Seminary, HOPE VI, and Weed and Seed 2006 Focus Areas. Administer the focus area housing programs and develop a Multi-Family Conversion Grant Program for the Signal Hill neighborhood. Provide direct homebuyer assistance to twenty (20) eligible buyers in Phase II of the Emerson Subdivision. Oversee the Lincolnwood II Subdivision and provide direct homebuyer assistance to ten (10) eligible households. Continue to provide homebuyers assistance to buyers purchasing single-family homes located in the American Dream Downpayment Assistance target area. Oversee the redevelopment of the former Garrison School and the construction of condominiums at the River Oaks site. Incorporate wireless portable technology into enforcement programs to increase Inspectors efficiency and time in the field. Increase the number of the Neighborhood Standards inspectors and broaden responsibilities of the inspectors to fulfill the vision of the current administration. Assist in the pursuit of a coordinated effort to gain Official Recognition as a Weed and Seed Program participant and provide quantifiable results of our enforcement activities. Track and map our neighborhood revitalization and enforcement efforts adequately enough to redistrict enforcement areas to better reflect requests for service. Economic Development The Economic Development Program, budgeted at $916,069, is funded by the Community Development Block Grant, the Redevelopment Fund, and tax increment financing districts (TIFs), $774,469, $25,500, and $116,100, respectively. In the Economic Development Program, $410,000 is allocated for programs with $506,069 being allocated to economic development administrative costs. CD-8

6 Economic Development funding includes the following: $30,000 for the continuation of the Small Business Loan Program in an effort to create new and/or expanding primary employers and/or retail or service businesses that provides goods, services, and jobs to targeted neighborhoods. $70,000 for a Microenterprise Investment Match Program which is designed to provide near equity-like funding to low/moderate income entrepreneurs who are residents of the City of Rockford. Seven (7) micro-enterprises will be assisted. $125,000 for West State Street Node for the acquisition and demolition of properties along Mulberry between Sunset and Hinkley Avenue. $125,000 is for future projects for the recipient providing a wage above the threshold median hourly wage to numerous low/moderate income City residents. Also, the loan/grant will be used for projects that have the potential to fill a long-vacant building or site, preferably in one of the City s TIF districts, the City s State certified Enterprise Zone, or one of the previously described strategic areas. Projected activity is two projects. $30,000 for the Self-Employment Training Program that will provide basic entrepreneurial training to low to moderate-income persons in conjunction with Rock Valley College's Small Business Development Center. Projected training is for 80 participants. $30,000 for the West State Commercial Shopstead in obtaining long term leasing of the remaining three units. Neighborhood Development Housing programs, budgeted at $4,025,886, are funded from three grant programs, the Community Development Block Grant, $1,947,371, the Home Program, $1,719,515, American Dream Initiative Grant, $96,000, tax increment financing districts (TIF s), $25,000 and program income, $238,000. $3,052,970 is allocated for programs with the remaining $972,916 allocated for housing administrative costs. Neighborhood Development funding includes the following: $145,500 to assist existing owner occupants and new homebuyers. The funding will be used to make exterior improvements, interior health and safety code items and work needed to remove lead hazards. The City anticipates assisting approximately 26 low-income households once funds are leveraged with HOME funds. $96,946 is to fund the code enforcement program, which will address approximately 4,000 self, initiated and neighborhood standards complaints. $200,000 for acquisition of property under private ownership. The funds will be used to acquire properties for use for new construction, the Homestead program or demolition program and vacant lots will be used for the development of single-family housing or to improve blighted conditions. $25,000 for the Lead Based Paint Hazard Reduction Program as a 10% match that will be provided to the Human Services Department to match a State of Illinois lead-based paint federal grant. This $25,000 represents year 2 of a 4-year commitment. The program is only made available to low-moderate income households. The City anticipates assisting 15 low-moderate income households. CD-9

7 $150,000 for Tenant-Occupied, Investor-Owned Rehab, to improve investor-owned properties in certain focus areas. Investor-owners will be given the opportunity to access this program and receive funds for rehabilitation costs. Properties must be located in a focus area (Mid Town North, South Main, College-Seminary, and Weed and Seed Focus Areas) and will be subject to lead-based paint regulations. Also, the dollars will be used to fund a Multi-Family Conversion Grant Program for the Signal Hill neighborhood. $377,584 for continuation of the Demolition Program for demolishing abandoned, vacant, or boarded up properties primarily identified by the Focus Area Action Plan and deteriorated properties located near schools, on major thoroughfares, and strategically located scattered sites. The City anticipates the demolition of 31 units/structures. $20,000 for the Rockford Area Affordable Housing Coalition for pre-purchase counseling to all participating buyers. Also included is information on employment, repairing credit, savings methods, and the overall home buying process. $150,000 in funds will be awarded to neighborhood groups and/or other non-profits to do special projects that serve lower-income individuals/neighborhoods. Projected activity is ten (10) units. $1,500 for fair housing expenses. $30,000 for the Ramp Program to build ramps for low-income persons with mobility disabilities. Projected activity is 15 units to be administered by the Rockford Area Mobilization Project. $7,000 for continuation of the Infoline that provides a database of services offered in the Rockford area. $386,100 is used to assist existing owner occupants and new homebuyers. The funding will be used to make exterior improvements, interior health and safety code items and work needed to remove lead hazards. The City anticipates assisting approximately 26 low-income households. $40,000 is also used to provide assistance specifically to the Weed and Seed Focus area for activities identified in the Weed and Seed application. $270,000 for Champion Park HOPE VI, to assist with the new construction of approximately 18 homes in the Phase II homeownership phase. Winnebago County Housing Authority submitted a 2002 HOPE VI grant that will result in the construction of a combination of up to 180 rental and single-family homes located within the city of Rockford. $14,999 per lot is for the Emerson Subdivision, which is a 38.8-acre single-family affordable housing development at Springfield and School Street. The first phase of 27 homes has been completed. $149,990 will provide direct homebuyer assistance to 10 homebuyers when purchasing homes in Phase II of this subdivision. $49,287 is to be used by CHDO s for operating expenses. Funding level is for six CHDO s. $369,573 for the CHDO affordable housing homebuyer and rental projects in the city s neighborhood strategy areas. The City anticipates assisting low and moderate-income individuals in affordable single-family or multi-family housing. Projected activity is 15 units. $184,000 is for assistance to the Federal Youthbuild program, Comprehensive Community Solutions, Inc. (CCS). CCS has structured classes in apprenticeship programs such as bricklayer, cabinetmaker, cement mason, carpenter, plumber, electrician, insulation worker, among others. This assistance will help construct three houses. $96,000 for a first-time homebuyer program the American Dream Downpayment Initiative. This program provides up to 6% of the sales price for downpayment and closing cost assistance to eligible homebuyers. Twenty-one (21) households will be assistance in the ADDI area while an additional ten (10) will be assisted who purchase homes in the Lincolnwood II subdivision. CD-10

8 In addition, $594,876 is budgeted for Block Grant general administrative costs which includes $56,263 for Section 108 debt payment if necessary. Funding is from Block Grant, $479,066, the Redevelopment Fund, $25,000, tax increment financing districts (TIF s), $25,000, and purchase of services, $65,810. $400,000 from a Brownfields grant is budgeted for cleaning up contaminated property and returning Brownfields properties into productive uses. Budget Analysis CD DEVELOPMENT DIVISION BUDGET SUMMARY INCREASE APPROPRIATION ACTUAL BUDGET ACTUAL BUDGET (DECREASE) PERSONNEL $1,219,389 $1,387,579 $1,237,764 $1,393,194 $5,615 CONTRACTUAL 778,315 1,029, ,877 1,094,821 65,003 SUPPLIES 37,217 33,510 34,351 33, OTHER 4,027,671 7,178,278 5,698,837 3,415,186 (3,763,092) CAPITAL 13, TOTAL $6,076,392 $9,629,185 $7,757,829 $5,936,831 ($3,692,354) STAFFING REVIEW INCREASE (DECREASE) (1.00) FUNDING SOURCE AMOUNT PERCENTAGE AMOUNT PERCENTAGE CURRENT FUNDS COMMUNITY DEVELOPMENT GRANT $2,406, $2,358, HOME PROGRAM 1,005, ,235, OTHER FEDERAL/STATE 1,620, , REDEVELOPMENT FUND 52, , TH STREET TIF FUND 153, , CAPITAL PROJECTS FUND 40,750 43, GENERAL FUND 20,380 21, PROGRAM INCOME 140, , ,440, ,350, REPROGRAMMED FUNDS-PRIOR YEARS COMMUNITY DEVELOPMENT GRANT 1,099, , WEST SIDE ALIVE HOME PROGRAM 994, , OTHER FEDERAL/STATE 2,094, , ,189, ,625, TOTAL $9,629, $5,976, The 2006 budget is $5,936,831, which is a decrease of $3.7 million due to the transfer to the Human Services Department of five grants, $3.0 million, providing housing and supportive services to the homeless. Discounting this, the budget decreased $0.7 million reflecting decreases in Brownfields, $0.3 million, and neighborhood development, $0.7 million, offset by increases in administration and economic development, $0.3 million. (See Economic and Neighborhood Development sections above). Personnel costs increased $5,600 (0.4%). With the transfer of the homeless programs, staffing is reduced by one position, $55,600, and $43,000 in severance pay is eliminated. Discounting these two items, costs increase $104,200 due to salary adjustments, $44,800, IMRF retirement, $8,800, and health insurance, $50,400. CD-11

9 Non-program contractual expenses increase $65,000 with the largest increase, $12,300, for service from Information Services. Supply costs remain unchanged. Funding for demolitions, decreases from $645,689 in 2005, to $377,584 for this year; $250,000 was budgeted for Barber Coleman Village last year. Administrative costs, required to not exceed 20% of expenditures, are projected to be 18% for The Redevelopment Fund transfer, to help finance economic development activities is $50,500, the TIF District contribution is $166,100 for the East, West, 7 th Street, and Rockford Global Park TIFs. Program income is $160,000 for the Block Grant and $78,000 for the HOME program. Under Federal guidelines, grant years remain open until funds are expended. The Division estimates that at the end of 2005, a total of $1,625,573 will be reprogrammed for These reprogrammed funds include $881,800 in prior year Community Development Block Grant Funds, $483,773 in prior year Home Program funds, $200,000 in Brownfields funds, and $60,000 for the American Dream Initiative. Due to reductions in funding from Federal granting sources, revenues have decreased since passage of the budget. As result, department staff will revise the business group s program to reflect the reduction in revenues. Capital Equipment For 2006, the Division will not have any capital purchases. Five Year Financial Forecast The five-year forecast assumes that both Federal and local funding sources will stagnate and expenditures will not exceed revenue limits. It is further assumed that the Division will spend its annual budget. No assumptions are made for new programs. COMMUNITY DEVELOPMENT BLOCK GRANT FUND FINANCIAL FORECAST (IN 000'S) Revenues $5,241 $5,398 $5,560 $5,727 $5,899 Expenditures 5,241 5,398 5,560 5,727 5,899 Excess(Deficit) Beginning Balance Ending Balance $0 $0 $0 $0 $0 CD-12

10 Personnel Review COMMUNITY DEVELOPMENT DIVISION BENEFITS AND SALARIES INCREASE/ SALARY BUDGET BUDGET (DECREASE) PERMANENT $887,059 $893,392 $6,333 TEMPORARY 10,466 12,500 2,034 MERIT PAY 14,792 15, SALARY ADJUSTMENT 68,692 27,257 (41,435) TOTAL SALARIES $981,009 $948,313 ($32,696) BENEFITS ILLINOIS MUNICIPAL RETIREMENT $162,300 $165,099 $2,799 UNEMPLOYMENT TAX 1,048 1, WORKMEN'S COMPENSATION 6,599 6,595 (4) HEALTH INSURANCE 221, ,015 35,765 RETIREE HEALTH INSURANCE 8,300 8,300 0 LIFE INSURANCE PARKING BENEFITS 6,984 6,624 (360) TOTAL BENEFITS $406,570 $444,881 $38,311 TOTAL COMPENSATION $1,387,579 $1,393,194 $5,615 POSTION INCREASE/ POSITION TITLE RANGE EMPLOYEES EMPLOYEES (DECREASE) DEVELOPMENT PROGRAMS MANAGER E ECONOMIC DEVELOP ADMINISTRATOR E INDUSTRIAL DEVELOPMENT COORD E EOC OFFICER E DEVELOPMENT SPECIALIST E GRANTS COMPLIANCE SPECIALIST II E SENIOR ACCOUNTANT E COMMERCIAL DEVELOPMENT MANGER E PROPERTY IMPROVEMENTS MANAGER E GRANTS COMPLIANCE SPECIALIST I E (1.00) HOUSING REHAB SPECIALIST II E HOUSING REHAB SPECIALIST I E NEIGHBORHOOD ENFORCEMENT SPECIALIST CD REHAB CONST SPECIALIST I CD SENIOR ADMINISTRATIVE ASSISTANT E ACCOUNT CLERK E INTERMEDIATE CLERK A TOTAL PERSONNEL (1.00) CD-13

11 Performance Measurements Plans for 2006 forecast similar levels of activity. Selected activity levels for is illustrated below Actual Actual Actual Projected Economic Development Small business loans Commercial/Industrial expansion projects 11/5 13/4 11/29 15/25 New Commercial/Industrial projects 16/3 11/1 12/18 15/20 New/retained jobs 218/ / / /500 Targeted areas Technical assistance, clients/referrals 80/ / / /150 Business/Community organization assisted 25/20 15/10 16/12 16/12 Neighborhood Development Homesteads Rehabilitated Units Neighborhood Projects (Non-Profits) Homeless programs New homes constructed Demolitions Special Community Projects Community Assistance Program Projects Acquisitions Homebuyer Assistance Programs RAMP (Construction of RAMPS) Get the Lead Out Match IDA Human Services CD-14