TO: Mayor and Members of City Council
THRU: Kelly Olivera, Assistant City Manager
FROM: Christopher Cauley, MPA, Economic and Community Development Director
Kimberly Leonard, CPA, NCLGBO, NCLGFO, MPA, Budget and Evaluation Director
DATE: June 10, 2024
RE:
Title
Adoption of Special Revenue Fund Project Ordinance Amendment 2024-11 to Reduce the Appropriation for HOME Affordable Housing Development Program
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal II: Diverse and Viable Economy
Goal IV: Desirable Place to Live, Work and Recreate
Goal VI: Citizen Engagement and Partnership
Executive Summary:
The Council is asked to adopt Special Revenue Ordinance Amendment 2024-11 to amend Special Revenue Ordinance 2024-2 to reduce the Program Income and expenditure appropriations by $380,633 for the HOME Affordable Housing Development Program. The program income reduction is attributed to a balloon payment expected from the Blanton Green II multi-family development project. The developer requested, and City Council approved, an extension for the final loan payment, thereby reducing the HOME Affordable Housing Development Program budget for the 2023-2024 Annual Action Plan.
Background:
The City of Fayetteville, as an entitlement community, receives Community Development Block Grant (CDBG) and Home Investment Partnership Program (HOME) funding annually. The amount is formula-based and adjusted on a yearly basis. The proposed 2023-2024 Annual Action Plan, which outlined all activities and funding sources for CDBG, HOME, and HOPWA was approved by Council on April 24, 2023.
Special Revenue Ordinance 2024-2 appropriated $2,025,900 in funding. The HOME program is funded by HUD in the amount of $1,121,285 (an increase of $40,052 from last year) and anticipated program income of $624,293. The required local match from the City in the amount of $280,322 will be provided by a transfer from the General Fund.
Issues/Analy...
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