Title
Resolution to consider an obligation of repayment to Health and Urban Development (HUD) regarding the Community Development Block Grant Program (CDBG)
Body
WHEREAS, the City of West Allis is an entitlement communication that receives a formula CDBG grant and administers various programs to assist low-to-moderate income individuals and to address conditions of slum and blight; and,
WHEREAS, the City of West Allis CDBG program includes activities that improve affordable housing and to address needs for decent, safe, and affordable housing; and,
WHEREAS, HUD monitored the 2017 CDBG program in the fall of 2019 and provided a communication to the Development Department in February of 2020 that a Housing Rehabilitation Loan was not eligible;
WHEREAS, a Housing Rehabilitation Loan was provided to a low-to-moderate income person in the amount of $1,174.64 to address a distressed tree that had partially fallen from private property into the right-of-way and the balance of the tree remained a hazard to life and property, see attached photo; and,
WHEREAS, HUD concludes, that if staff would have found additional items to repair on the physical structure, such as a screen on a window or a shingle on the roof, the loan would be considered eligible, but since the loan was for a tree removal, HUD is requiring the funds to be repaid; and,
WHEREAS, HUD is requesting repayment of $1,174.64 from the City for the expenses charged to the Housing Rehabilitation Loan; and,
WHEREAS, the Director of Development or his designee is recommending the repayment of $1,174.64 to HUD.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of West Allis that it hereby
approves the obligation of repayment to Health and Urban Development regarding the Community Development Block Grant.
BE IT FURTHER RESOLVED that the Common Council of the City of West Allis approves the repayment of $1,174.64 to HUD from the General Fund via a transfer of funds from the Beloit Road Housing Fund Developer Fee reserves.
cc: Development Department
Finance Department
DEV-R-1038-11-4-20
