Title
Resolution to amend the 2020-2024 Consolidated Plan and 2023 Annual Action Plan to enable the City of Colorado Springs to apply for the U.S. Department of Housing and Urban Development's Section 108 Loan Guarantee Program
Presenter:
Paul Morrow, Senior Analyst, Housing and Community Vitality Department
Body
Summary:
The Housing and Community Vitality Department administers HUD funds for the City of Colorado Springs. The Community Development Block Grant (CDBG) is one of three entitlement grants the City receives from HUD annually. The Housing and Community Vitality Department is required to seek Council approval by resolution for any substantial amendment of the City's HUD plans. The reason for this substantial amendment is a proposed increase in the annual HUD program budget that exceeds 20%.
The Section 108 Loan program is a flexible source of financing for HUD participating jurisdictions to leverage up to five times the amount of their annual CDBG allocation in the form of a loan. Two main steps are required for the City to apply for the HUD Section 108 Loan: First, is to invite the public to provide comment and input on the proposed addition of the Section 108 Loan as a new funding strategy in the annual and five-year plans. Second, to conclude the public process, is for City Council to approve the resolution to amend the City's annual and five-year HUD plans.
The Section 108 Loan will be used as gap financing to redevelop the Senior Center at Golf Acres. Without this loan, the City will not be able to fund this capital project for this fast growing and vulnerable population.
Background:
The City of Colorado Springs is a U.S. Department of Housing and Urban Development (HUD) entitlement grantee and receives allocations of federal block grant funds under the Community Development Block Grant Program (CDBG). The purpose of the funds is to benefit low- and moderate- income residents of Colorado Springs. The elderly are a presumed...
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