City of Auburn, NY - 2009 - 2010 Action Plan

There are two (2) sources of funding associated with the Action Plan: (1) Entitlement Program Funding for the 2009-2010 fiscal year coming directly from HUD; and (2) Revolving Loan Fund Income that is derived from loan repayments and other sources originally made with CDBG funds. The Entitlement funding is set by Congress each year and makes up the majority of funding available for the program. The revolving loan fund income is an estimate derived from an analysis of outstanding loans and other anticipated program repayments.

The total available funding, $1,315,071 includes the Entitlement funding and the estimated revolving loan fund income from CDBG loan repayments. Please note that revolving loan fund income can fluctuate during the program year and is received by the City over the course of the program year.

The City of Auburn, by virtue of being an entitlement community, is permitted to secure loans for up to five times the annual CDBG allocation. The loans are guaranteed by future entitlement grant allocations and may be repaid from future entitlement funding or from other sources as appropriate.

For the coming grant year, the statutory borrowing cap would permit the City to apply for Section 108 Loan Authority for up to approximately $3 Million. The Action Plan proposes to reserve the authority to use Section 108 Loans for uses including, but not limited to, the following community development areas:

The Section 108 Loan Authority may be made available to extend financing arrangements to small and medium sized commercial and industrial owner / user businesses which show a proven ability to grow, prosper and provide jobs in the community. These funds may also be used for larger housing development projects or to fund required infrastructure for planned housing development.

Loan funds may be used for fixed asset acquisition and may include: land, construction costs, rehabilitation, renovation, equipment, machinery and working capital. Loans may be offered at levels similar to existing City programs, but may also be altered to meet the needs of specific projects. Loans will be amortized at a negotiated rate and term related to the rate and terms charged to the City by HUD.

The City of Auburn had been approved for funding in the amount of $3.178 million from the Section 108 Program. These monies were used to complete improvements to the City’s Downtown public facilities that had been identified by the Auburn Downtown Design Study. The City completed the first Downtown project, the State Street Mall, in the 2006-2007 Program Year. In the 2007-2008 Program Year, the City completed the Downtown Improvement Project, which included Exchange Street Mall, the planting of street trees and installation of street furniture as well as the addition of brick pavers throughout the downtown area.

The Action Plan proposes to reserve the authority to utilize Section 108 Loans for public and neighborhood facilities improvements related to comprehensive rehabilitation of small neighborhood commercial areas adjacent to targeted low- and moderate-income residential areas. Review and approval by HUD of proposed improvements and use of 108 Loan Authority for this purpose would be required.

This chapter of the Action Plan details the proposed allocation of funding for various community development programs and initiatives. The funding allocations fall into four (4) general community development categories: Housing Programs; Economic Development Activities; Neighborhood and Community Improvements; and Human Services. This section also identifies the funding allocation and activities associated with the administration of the CDBG program by the City.

The City of Auburn Community Development Program has been implementing housing rehabilitation programs for low- and moderate-income owners and tenants for more than twenty years. These programs support neighborhood stabilization and work in coordination with programs and projects targeted at neighborhood revitalization and improvement.

In addition to the HRAP program, the City proposes to make available funding for the Home Access Program. This program will address only a limited number of projects. Compared to last year’s Action Plan, there are only minor changes being proposed to the Housing Programs. The City will continue to offer is Home Repair Assistance Program. The budget includes a small decrease in funding for the City’s Clearance activities. This year, a new program is being introduced that will be carried out by the City’s Fire Department. A description of this program is included below. The City will do away with the Siding Demonstration Program and will instead focus on interior and exterior rehabilitation needs through the Home Repair Assistance Program. The pie chart below illustrates the CDBG funding for Housing Activities during the 2009-2010 program year.

Program Description: The Home Repair Assistance Program (HRAP) will continue to focus primarily on the rehabilitation of existing housing stock for occupancy by low- and moderate-income persons. The program will provide low-interest loans to low-and moderate-income owner-occupants. It will be the policy of the program to ensure that the funds distributed through HRAP are returned to a housing rehabilitation revolving loan fund to the maximum extent possible. Staff will determine, using underwriting criteria developed for the program, what repayment options will be offered to program participants. The lowest income home owners whose monthly income does not fit the standard underwriting criteria may be eligible for loans without monthly payments, but will be required to reimburse the City upon sale of the house.

Previously, the City offered a Siding Demonstration Program that was delivered by Homsite Fund, Inc., a local Community Based Development Organization, who also provides the construction management for the Home Repair Assistance Program. As a result of past discussions with Homsite, and the fact Homsite has had difficulty spending previously allocated funding, this program will now be wrapped into the Home Repair Assistance Program. To be eligible for the Siding Program, the property had to be clear of code and lead issues and rarely did a homeowner only need an exterior home improvement that had no other code concern or lead based paint issue. Funding that would have been set aside for the Siding Program will be allocated to the Home Repair Assistance program line item. The City will continue to work with homeowners to complete exterior renovations.

The Home Repair Assistance Program (now including the Siding Demonstration Program) is open to investor-owners with rental units, which are and will remain, available to low-and moderate-income tenants. For this 2009-2010 Action Plan year, we will focus on encouraging more investors to take part in the Home Repair Program. Many of the comments we continue to hear is that quality rental housing is lacking for low to moderate-income families. The City will work to assist in meeting this need, with a priority toward providing and supporting~these units within existing neighborhoods. The encouragement will be done through direct mailing to landlords who are on file with the City’s Code Enforcement Office. When applicable, we will also work with landlords who accept Section 8 vouchers to improve their properties for their low to moderate-income tenants. Investor-owner applications that are received will be reviewed by an Investor Loan Committee to determine eligibility and grant approval. In cases where investor-owners are approved for funding, the program will provide a low interest loan.

The loans available for rehabilitation will continue to be used to address major code violations, substandard housing conditions and exterior improvements, as well as lead-based paint issues, as required by HUD. The maximum lead-based paint grant available is $10,000, or 25% of the total project costs, whichever is less for owner occupied projects. For investor owner properties, the maximum amount for a lead-based paint grants is $2,500 per unit, or 25% of the total cost, whichever is less. Currently, owner occupied applicants can borrow up to $30,000 for 25 years. Investor-owners are eligible for $10,000 in a loan per unit for two to four family buildings. The grant funding limits and loan amounts are regularly reviewed to ensure the continuation and longevity of the program.

Program Structure: Administration and delivery of the HRAP will be provided through a partnership between the City of Auburn and Homsite Fund, Inc. a local not-for-profit housing corporation. Policies and procedures for this program will follow the guidelines set forth in the HRAP Policy and Procedures Manual (available in the Office of Planning and Economic Development). The City of Auburn’s Office of Planning and Economic Development (OPED) will perform the intake and marketing functions of the program and Homsite will handle the inspection and construction monitoring portions of the program. The Action Plan authorizes the City Manager, through the OPED, to administer a continued subrecipient agreement between the City of Auburn, as the Grantee, and Homsite, as the Subrecipient, which details the expectations the Grantee has of the Subrecipient for the provision of HRAP services.

This budget allocation funds the administration and delivery of the City’s Home Repair Assistance Program, through a local housing agency acting as a grant subrecipient. The City Planning Staff will remain responsible for marketing and conducting the intake portions of the program. This allocation also includes program delivery costs associated with the Siding Demonstration program.

Program Description: The Home Access Program provides ramps and/or accessibility modifications for physically disabled low- and moderate-income persons living in the City of Auburn at private homes. The City of Auburn has contracted with the local Independent Living Center, Options for Independence, as a Subrecipient to implement the Access Program in the past and will continue this program with the 2009-2010 funding allocation.

Program Structure: The City will negotiate and enter into a Subrecipient agreement with Options for Independence for implementation of the program. Options for Independence will conduct a range of activities to implement the program, including marketing, intake, assessment and verification of client income and disability, oversight of the contractor bidding process, and monitoring and evaluation of the awarded contractor’s work. As the Grantee, the City of Auburn Office of Planning and Economic Development will monitor and evaluate the Subrecipient’s progress, and coordinate payment draw downs for completed construction.

This budget allocation provides funding for the delivery and administration of the program detailed above, through Options for Independence, with monitoring and evaluation through the City of Auburn or its designee. The Action Plan authorizes the City Manager to administer Subrecipient Contracts and Agreements, prepared and recommended by the OPED, between the City of Auburn and Options for Independence for provision of the Home Access Program.

Program Structure: The buildings/structures will be chosen by the OPED, in coordination with other City Departments and in support of current neighborhood planning efforts. In cases where the City is implementing the demolition, the Office of Corporation Counsel will assist with legal issues, and the Department of Engineering Services will assist with the preparation of demolition specifications, bids requirements and the selection of demolition contractors. The sites chosen will not typically be tax-paying structures and will most often be vacant and abandoned structures. The demolition of privately held properties will be considered for public safety concerns upon the recommendation of Auburn Fire Department and/or Code Enforcement, and the cost will be assessed on the property's taxes. Any income returned will be accounted for in Housing RLF income.

Program Description: Through the City’s Fire Department, new smoke alarms will be installed in the homes of low to moderate income families and in areas where more than 51% of the population is low to moderate income. Further, the Fire Department will work with the homeowners who participate in the Home Repair Program to ensure that their home is protected by fire; this will be done by professional installation of a smoke and carbon monoxide detector and providing them with a Home Safety Kit.

Program Structure: Participants in the City’s Home Repair Assistance Program will be surveyed during the process to see of their interest in participating in this program. If they are, the Fire Department will work with the participant to go in and install the detectors and review the Home Safety Kit with them. The Fire Department will approach homeowners living in low to moderate-income census blocks to distribute smoke alarms on an area basis in eligible neighborhoods. They will keep information on where the detectors were installed in order to report program outcomes.

The Community Development Block Grant Program has consistently allocated funding towards neighborhood public improvements on an annual basis since before the start of the Entitlement Program. The allocation to public improvements has continued this year in response to public and departmental input, and in support of the City’s ongoing comprehensive planning efforts.

The proposed program activities cover two general areas: Neighborhood Sidewalks and Curbs and the Direct Benefit Sidewalk Program. The pie chart shown below illustrates the allocation of funding for Public Improvements during the 2009-2010 program year. The sections after the pie chart provide details on the community development programs and activities related to the Public Improvements budget lines.

The City proposes to continue implementing the neighborhood sidewalks program within low-and moderate-income target neighborhoods. This program has been in place since before the beginning of the Entitlement Program. The 2006-2007 Action Plan identified a (4) four year replacement of sidewalks under the program, which will conclude this year. The goal continues to make sidewalks within and adjacent to neighborhoods where Neighborhood Commercial Area Plans have been developed (Five Points, Owasco-Osborne and Dunn & McCarthy area neighborhoods) and adjacent and in close proximity to the downtown core.

With this proposed Action Plan, the City of Auburn will continue to implement the replacement of sidewalks that are in poor condition as determined by the Engineering Staff in eligible areas and the installation of curbs, as necessary and as funding is available. City staff will survey areas for potential eligibility of service; if data concludes those listed areas are ineligible, then staff will review other potential eligible areas for service.

The 2009-2010 Action Plan strategy will specifically target neighborhoods adjacent to downtown. Other opportunities to install sidewalks to meet the goals of the neighborhood plans, will be taken as the budget allows. All activities are dependent on stable future Entitlement funding and need. Sidewalks that are included for a specific program year, but not completed because of lack of funding or other variables, will be carried over to the next year’s activity. Program funds will not be used for the reimbursement of special assessments taken by owners as part of the City of Auburn’s Revolving Loan Sidewalk Program, funded by the City’s General Fund.

*Note: We will be removing this street from the list to be done with CDBG funding. The CDBG sidewalk program is a sidewalk replacement program and currently no sidewalk exists on Colburn and there is only one house on the street, which sits nearly on top of the street, making it impossible to install a sidewalk on this short dead-end street.

The City CD Program, in coordination with Engineering Services, had maintained a policy of limiting curb replacement to areas where the lack of curbing is a significant safety concern, where residents requested curbs and agreed to have sidewalks replaced by another means, or where they were adjacent to sidewalks. As the City has invested a greater amount of CDBG funds in public improvements, it has become obvious that curbs have an equally considerable impact on neighborhood blighting influences and perception. The City CD program therefore proposes to continue to coordinate with the Department of Engineering Services’ Road Program. The Road Program does not replace curbs on reconstructed (or milled and repaved) streets as a matter of course. As the City of Auburn reconstructs eligible streets in areas that serve low or moderate-income residents, the CDBG program proposes to continue to contribute funds for curb installation, as funding allows.

The City first funded a sewer and water revolving loan fund in 1994, again in 2003 and last year. Projects continue to be extremely expensive and the fund is near depletion. New requests for assistance have been received and it is necessary to add funds so that this program can continue. The program will assist low and moderate-income households that experience a failure in their systems. The proposed RLF will provide loans at 0% interest to low and moderate-income families providing a direct benefit under CDBG guidelines. All participants will provide income verification regarding income status prior to inclusion in the program.

The City of Auburn utilizes a portion of the Community Development Block Grant funding annually to provide program support to Human Services agencies and the activities they administer. Specific funding allocations for Human Services Programs were identified through a presentation and review process centered on an application review committee consisting of four (4) individuals active in, and representative of, the community. OPED staff facilitated the process by soliciting proposals from the human services agencies, setting up the presentations and providing information on the CDBG program and background on prior year funding allocations.

OPED staff solicited proposals for human services activities and programs through advertisements in local print media and by forwarding applications to individuals and agencies that have participated in the past. The application packet consisted of a Request for Proposals (RFP) requiring a descriptive program proposal, an anticipated budget and a budget narrative. The RFP announced the availability of CDBG funding for human services in the coming program year, described the CDBG program goals and defined the National Housing and Urban Development (HUD) objectives. The RFP was circulated in November 2008 with a due date of December 10, 2008.

The Action Plan designates the City Manager, through the Office of Planning and Economic Development, to provide for the administration of the CD Support Services programs and activities included in the Plan. To facilitate the administration and day-to-day operation of these programs and activities, the Plan authorizes the City Manager to administer Subrecipient Contracts for the provision of community development support services. These contracts will be prepared by the OPED in cooperation with the subrecipient agencies and reviewed by the Corporation Counsel prior to execution.

This section presents an overview of the program proposals received in response to the RFP and the committee recommendations for funding. The pie chart, shown below, presents the proposed allocation of individual human services programs relative to the entire support services allocation of $160,000. Following the chart are individual program descriptions.

§ Program Description: AURORA of CNY will provide outreach services to seniors who have vision/hearing loss living in the City of Auburn. The agency will provide a senior with 1:1 counseling for adjustment and emotional support, referrals to appropriate resources, training in the use of adaptive devices (such as magnifiers, lighting, adaptive telephones or doorbells) and an environmental analysis for in-home modifications and other strategies to enable the person’s independence and safety within their home and community.

§ Program Description: BTW’s AWeSum program proposes to provide 125 youth free after school, weekend and summer programming. The project will encompass a wide range of supervised youth development activities for low to moderate-income youth including recreational, fine arts, social, educational and economic development. The youth will also have the opportunity to participate in experience based field trips The AWeSum Youth program will operate Monday through Friday from 3:00 pm until 9:00 pm during the school year, on Saturday’s contingent upon activities, and will offer day programming in the summer.

§ Program Description: CCSI is a strengths-based collaborative approach to working with families that have a child/youth with emotional and/or behavioral difficulties. The immediate benefit is the resolution of the issue, strengthening and supporting the family so they will be able to handle future problems, and secondarily, reducing the need for out of home placement. CCSI plans to serve 30 low-moderate income families with children/youth between the ages of 5-18. In order to continue to meet the need on a timely basis a full time coordinator is required.

§ Program Description: Youth Court is an alternative way of handling juvenile delinquency cases that fits in somewhere between letting a young offender go and referring the youth to the Probation Department. The Auburn Police Department will determine, through investigation and interviewing, which youth and families would benefit from a Youth Court referral. Auburn Police have worked with the program to develop a protocol for identifying and referring suitable young offenders. Youth Court hears these cases in Auburn City Court twice monthly. Trained middle and high school students take the roles of prosecutor, defense attorney, judge, bailiff and jury. The Court does not concern itself with guilt or innocence (offenders have already admitted their guilt), but rather takes up the issue of sentencing. Presently, imposed sentences consist of community service, letters of apology, research papers, restitution and serving on the Youth Court as a juror. The Program Coordinator supervises the completion of the sentence and reports back to Auburn Police. Cases where sentences go uncompleted are referred back to the police and prosecution begins.

§ Program Description: The program will provide hot, nutritious meals to the elderly and disabled in the community. Meals are delivered to the individual’s home by way of a program volunteer. The funding provided allows for seniors or disabled clients who can not afford the full amount of a hot lunch, $4.00, to receive the meal at a reduced rate.

§ Program Description: Cayuga/Seneca Community Action Agency provides emergency housing / shelter via a motel stay, as the City of Auburn does not have an emergency shelter. Additionally the program offers security deposit/one-month rent to individuals and families who are homeless or at risk for becoming homeless. The homeless intervention portion of the program compliments the agency’s Supportive Housing Program funded through HUD’s Continuum of Care. The homeless vulnerable portion will assist those who come to the agency who are at risk of becoming homeless.

§ Program Description: Cayuga/Seneca Community Action Agency’s Head Start Program will target 224 families whose children are enrolled in Head Start. The funding will be used to support family training in the filed of language development. Funding for the program would cover training materials and participant incentives, such as books to use at home with their children. Parents will be exposed to the Language is Key training module – which includes segments on Talking and Play and Talking and Books. Parents will be given strategies on how to increase and encourage their child’s literacy and language development.

§ Program Description: The child care subsidy program will assist low- and moderate-income parents in their search for affordable childcare. This program helps those parents who are in a job-training program, continuing their education, or working full time by providing a child care subsidy to cover the costs of child care be it infant, toddler or before/after school care. Payment is made directly to the registered family day care provider or to licensed day care centers. Participants are eligible for the program for up to 24 months. A sliding scale has been determined so to assist the lower income families with more of a subsidy than families with a higher income; but who are eligible under HUD definitions. Note: The Child Care Council received significantly less than requested because the agency is carrying a balance from the 2007-2008 allocation and has yet to begin using their 2008-2009 allocation.

§ Program Description: East Hill Family Center will use the funds to purchase a Scoliometer, Hearing Screener and Baby Bed Scale, which are needed for their growing pediatric practice. Nearly 65% of the pediatric patients are Medicaid or Child Health Plus recipients. The Center provides preventative care and is expecting an increase of 1,000-1,500 children as a result of the addition of a new pediatrician, the new equipment will be used to meet the demand in services.

§ Program Description: Freedom Camp is a summer day camping experience for children with special needs who reside in Cayuga County. The children participating in the program are from low/moderate income status between the ages of 4 to 21 with defined documented disabilities. Camp is also open to siblings in the family. Camp is held for four weeks during the summer at Casey Park. Historically, campers wishing to attend camp from school districts other than the Auburn Enlarged district are transported along with others from their district going to the BOCES twelve-month summer school program or even Camp Columbus. Funding will be used to transport Auburn children to and from camp, the purchase of educational aides and sports equipment, out of camp field trips (to places such as miniature golf and water parks) and “talent” for the camp.

§ Program Description: Home Headquarters will assist 15 homeowners who are at risk of losing their home through foreclosure. A property owner will work with a certified foreclosure counselor and will be provided with intensive counseling services in order to increase the property owner’s skills that will increase their financial stability. Home HeadQuarters has special partnerships with a variety of lenders. As a result of these partnerships, Home HeadQuarters will assist the homeowner in negotiating mortgage workouts. Foreclosure prevention services will help homeowners avoid foreclosure retain their homeownership status and prevent the increase of vacant foreclosed homes in the City of Auburn.

§ Program Description: This program assists renters in need of financial assistance for a security deposit. Eligible applicants can receive up to $150 to be paid towards their security deposit. It is then paid back over time so that it can be re-lent out to other individuals in need.

§ Program Description: The Human Services Coalition works to open up the lines of communication between the human services community and the consumers served by human services agencies by improving communications and creating an atmosphere for the efficient and coordinated delivery of services. The coalition does not provide direct services, but helps increase dialogue and communication between local agencies and the public to enhance efficient service delivery.

§ Program Description: Legal Aid is requesting funds to assist victims of domestic violence who utilize Cayuga/Seneca Community Action Agency’s domestic violence shelter. A staff attorney will work with identified victims who are in need of emergency court orders of protection, custody and spousal support. The attorney will also assist the victim if facing eviction as a result of the abuse.

§ Program Description: The Chronic Offender Rehabilitation Program is a research-based, alternative to incarceration, program that works with young people between the ages of 16-18 who are repeat offenders. Each participant receives a coordinated service plan to address the unmet needs of the young offender and his/her household. A large portion of the youth needing this service have significant service needs involving co-occurring serious emotional disturbances and substance abuse disorders. Client contact occurs on a daily basis and all counseling and case management services are provided in non-traditional community based settings. Auburn City Court will refer clients to the program. Enrollment into the program could be anywhere from six to 12 months. Clinician’s work with Auburn City Court to discuss progress made with the youth enrolled in the program.

§ Program Description: The SCAT Van service is a specialized, fully accessible, demand-respond transportation service specifically for the elderly and disabled of Cayuga County. There are five vans used within the City of Auburn, Monday through Friday from 8:00 am - 3:00 pm. Two volunteers staff each van, most being retired seniors. The routes are determined daily by the demand of service, and each schedule is written 24 hours in advance. There is no fee charged for service. A donation of $4.00 is suggested, but the inability to donate does not hinder a client’s chance to ride.

The Office of Planning and Economic Development continues to make available a number of economic development programs to meet the needs of businesses expanding in the City and those considering relocating here. These programs support the economic base of the City through loans for fixed assets and, on a smaller scale, encourages neighborhood commercial development through small business loans.

The overall economic development strategy requires a significant pool of flexible funding that can be used to meet the needs of larger economic development projects that may develop at any time. This is accomplished through the continuation of the Special Development Projects funding line (described in the following section). Preparing sites and supporting opportunities for economic development requires that the City of Auburn consistently develop local infrastructure improvements through the use of CDBG funds and through other resources, such as NYS Department of Transportation funds.

The Community Development Block Grant Program complements the City’s economic development strategy by providing funds for many of these initiatives, allowing the City to leverage private financing with public funds, increase the local tax base and rehabilitate / revitalize commercial and industrial properties. This section describes the targeted economic development programs that the City will implement using CDBG funding this year. The pie chart shown below details the allocations described in this section.

This year, the City will make available funding for small and micro enterprise businesses who are in need of assistance with website and marketing development. The City will contract with a third party who will be available for marketing, branding and website design assistance. These services will assist small, emerging and micro enterprise business owners who are in need of website development to further e-commerce opportunities, marketing development and those trying to increase brand awareness.

Further, the SBAP will continue to provide a revolving loan fund, utilizing the revolving loan fund income, as an ongoing funding source. This program line capitalizes the program at the anticipated levels required for the coming program year. The funding allocation will utilize revolving loan fund income (as opposed to Entitlement Funding) for the capitalization.

The program will continue as a loan program offering small businesses and developers financial assistance at appropriate rates and terms. The City has successfully run the SBAP for over 17 years and the program often plays a catalyst role in the business community. Working cooperatively with local lending institutions, the SBAP often provides gap financing as part of a comprehensive package for start-ups and expanding businesses and industries in the City.

SBAP loans may be used to create additional jobs for low- and moderate-income persons through assistance with property acquisition, building and equipment expansion and upgrades, and facade improvements within the City’s Central Business District, Industrial Zones, General Commercial and Neighborhood Commercial areas.

The City will contract with a web and marketing developer to offer the support services to small, emerging and micro enterprise businesses. Each business assisted is eligible for up to $1,000 in services. The assistance will be in the form of a one-time grant to the business owner; businesses participating in the SBAP and micro enterprise students will be specifically targeted for this service. Businesses interested in taking advantage of this program must make an application to the Office of Planning and Economic Development to document what type of assistance they need and how it will assist their business. Micro-enterprise applicants must have gone through the Micro Enterprise training program at Cornell Cooperative Extension and prove their training completion with a copy of their program certificate.

Application and intake for the SBAP is made through the Office of Planning and Economic Development. Participants must provide the City with application information and financial documentation required for loan review and underwriting. OPED staff coordinating the SBAP reviews the completed applications. Staff determines the appropriate rate and term for the loan(s) based on the type of loan, available security and the needs/financial capacity of the applicant/business and makes a recommendation for review and action (approval or denial) to the SBAP loan committee.

Following an approval, loan documents and payment coupons will be generated for the repayment of the loan(s). The City of Auburn Corporation Counsel will assist the OPED with the preparation of legal documents required for closing, as necessary. After closing, the OPED staff will monitor the loans for hiring and repayment requirements.

The City will utilize these funds for the implementation of the economic development programs and activities detailed in the sections above, through Special Development Projects budget lines and for implementation of HUD Section 108 Loans (descriptions to follow). These funds will be applied to staff salaries in the Office of Planning and Economic Development and any appropriate and eligible support, marketing and consultant services (such as those currently provided through the National Development Council – NDC) required to review and/or implement these programs. The Plan authorizes the City Manager to administer Subrecipient Contracts between the City and NDC, or other appropriate consultants, prepared and recommended by the OPED for the provision of eligible economic development services. Planning costs associated with the economic development program may also be included with the Administration, Planning and Evaluation allocation (section follows).

Since 1995, the City of Auburn CDBG program has been coordinating a Micro-Enterprise Training Program with Cayuga County’s Cornell Cooperative Extension. Small business training and making long-term business consultation available to participants has remained an integral part of the program. The training program will offer assistance for up to 60 individuals interested in exploring the opportunity of starting their own business. The assistance will include market research, business plans, accounting, information on financial and legal issues as well as personnel management and planning for growth. Training will be coordinated through the Cornell Cooperative Extension. The Action Plan authorizes the City Manager to administer Subrecipient Contracts/Agreements between the City of Auburn and Cornell Cooperative Extension. The contracts will be prepared and recommended by the OPED.

This allocation represents a mixture of anticipated revolving loan fund income (program revenue generated through the repayment of prior year project loans, mortgages and/or fees) and entitlement program funding (part of the annual grant award to the City from HUD). Of the $284,432 total budget allocation, the entitlement portion (non-revolving loan fund income) at $200,000 represents 70% of the entire Special Development Projects budget. The portion of the budget line coming from revolving loan fund income is 30%, or $84,432. The pie chart shown below illustrates the allocation of Special Development Projects funding.

For the past ten plus years, the Action Plans have utilized the Special Development Projects budget line to finance larger economic development or housing projects. This year’s Action Plan continues the Special Development Projects budget line to allow the City to utilize this flexible funding resource and continues authority to utilize the funding allocation for projects within the Downtown / Central Business District that support the City’s overall economic development strategy and that are eligible under HUD guidelines. Staff has reviewed balances in past year's Special Development Projects allocations, and determined that the proposed level of funding is sufficient for the needs of this program year. The structure and administration of the program itself has not changed, and is described below.

Program Description: The Special Development Projects line is similar in scope and scale to the HUD 108 Loan programs, in that the funding can provide for fixed asset financing of larger economic development projects that anticipate significant low- and moderate-income job creation and/or retention, or larger housing projects. These funds, used to leverage private financing, will be used for loans and low-interest financing or equity injection where there is at least an equal amount of private funds for the project(s). Maximum loan amounts will be determined by the scope of the project and the amount and/or type of collateral available.

Activities that will utilize Special Development Program funding for targeted infrastructure and economic development initiatives within the downtown area will be reviewed by OPED staff with regard to compliance with the City’s Comprehensive Plan and the Downtown Conceptual Master Plan developed for downtown revitalization and for compliance with HUD requirements.

Program Structure: The Action Plan provides for the administration of loans generated through the Special Development Project budget line by authorizing the City Manager to administer Special Development Project Loan Commitments which have been recommended by the OPED and that have been reviewed and approved by the appropriate loan review committees. Rate, term, and return in investment for the loans and/or equity injection will be negotiated relative to an evaluation of the borrower’s needs and the anticipated economic/community development impacts and relative risk of the proposed project. Loans and equity injection will be reviewed by the OPED staff and appropriate loan committees (such as the SBAP loan committee), using underwriting criteria similar to that used by the SBAP Loan Program.

The Orchard Street area is often brought up in CBDG Community Meetings and with other City departments as an area in distress. It has been on the CDBG priority list and the Orchard Street Neighborhood Association has in recent years received block grant funds to put planters and flowers out within the district as well as maintain a neighborhood website.

Orchard Street is located in one of the most economically distressed neighborhoods and has recently been targeted for substantial residential rehabilitation. The City of Auburn has been participating in the revitalization discussion with Homsite Development Corporation, Home Headquarters, the Neighborhood Association and the Allyn Foundation. While both the City and Homsite has been encouraging property owners and investors on Orchard Street to participate in the City’s Home Repair Program as well as rehabilitation programs offered through Homsite, other funding is needed to address critical issues. The Allyn Foundation has committed funds to study the area and identify strategies to assist in the revitalization.

One of the projects suggested in the plan conducted by Home Headquarters is a Curb Appeal Program. This Curb Appeal program will be another incentive to assist property owners in the revitalization of this area. The program will offer property owners and investor’s a grant up to $2,500 for small construction and landscaping projects. These projects may include, but may not limited to, adding uniform front yard lighting posts, street number plaques, fixing up front steps, porch painting and landscaping.

The City of Auburn has been approved to borrow $3.178 million through the HUD Section 108 Loan allocation for comprehensive public improvements in the City's Downtown as defined in the Auburn Downtown Design Study. The loan is from HUD to the City of Auburn and is required to be repaid over 20 years at Treasury rates. This loan is to be secured by future CDBG funds. The City will be required to repay the interest only on the borrowed funds until the loan is converted to regular amortization, which recently occurred. The allocation is to provide for the interest payments for any funds used during the program year. Projects related to the use of the funds are part of the Section 108 Loan application submitted to the Department of Housing and Urban Development, as identified in the Synthesis Auburn Downtown Design Study.

If the full budget amount is not required for payment on the Section 108 loan during the 2008-2009 program year, any balance of funds may be reprogrammed to an appropriate and eligible use described in this plan, as determined by OPED staff and approved by the City Manager.

This budget allocation is used for the personnel and non-personnel costs associated with the administration of the CDBG Entitlement Program for the City of Auburn. The activities and staff functions covered under this allocation include: general administration; planning, including housing, economic development, public improvement, capital improvement and neighborhood planning; performance reporting; fair housing and equal opportunity compliance and programming; the implementation of the public outreach and citizen participation for the CPS planning process and the City of Auburn Downtown Master Plan/Comprehensive Plan process, including staff support to the Community Development Advisory Committee and the Comprehensive Plan Advisory Committee; and the preparation and dissemination of information, plans and program details to the general public.

Reimbursement to the City General Fund for Planning Office staff costs associated with the Entitlement Program remains approximately over 60% of the salary budget for the entire Office of Planning and Economic Development. In addition to salary reimbursement for staff, this administration allocation also includes other costs related to the implementation of the CDBG program such as computer hardware/software, office supplies, support materials and staff training. The following sections describe the program activities covered under this budget allocation line.

All administration and planning activity costs are included within this line item, with the exception of funding for the Human Services Coalition. The Action Plan line items associated with program delivery in the Housing and Economic Development sections of the Plan are not related to this budget line, and are related to specific programs that lead to a direct benefit to a program participant, targeted area or client.

The City of Auburn may make available up to $600,000, in obligated but unexpended CDBG funds, for interim financing of CDBG eligible economic development or housing activities. This financing will be replaced by permanent financing from other public financing and/or private funds provided by the owner or financial institution. All loans will be taken out within a twelve-month period and will be secured by a letter of credit or similar appropriate security. The purpose of using Float Loan Authority for interim financing is to have a funding resource available to meet the financing needs of economic development, housing or public infrastructure needs on a timely basis, when the permanent financing is guaranteed but may experience delays due to bond sales or similar financing constraints.

2008 Income Guidelines
FY 2008 Income Limit Category	1 Person	2 Person	3 Person	4 Person	5 Person	6 Person	7 Person	8 Person

Extremely Low (30%) Income Limits	$12,050	$13,800	$15,500	$17,200	$18,600	$20,000	$21,350	$22,750
Very Low (50%) Income Limits	$20,100	$22,950	$25,850	$28,700	$31,000	$33,300	$35,600	$37,900
Low (80%) Income Limits	$32,150	$36,750	$41,350	$45,900	$49,600	$53,250	$56,950	$60,600