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{ <br /> ECONOMIC AND URBAN DEVELOPMENT MEMORANDUM <br /> Memo No. 04-92 <br /> June 28, 2004 <br /> TO: Honorable Mayor Paul Osborne and City Council Members <br /> FROM: Steve Garm ity Manager <br /> Dane Brag , ' ector of Economic and Urban Development� <br /> Linda J. Love, eighborhood Programs Manager ��..��---� <br /> Terry Cunnin ham,Neighborhood/Housing Planner�/ <br /> SUBJECT: Amended Grant Agreement with U.S. Dept. of Housing and Urban <br /> Development for HOME Competitive Reallocation of Funds to Provide Permanent <br /> Housing for the Chronically Homeless <br /> RECOMMENDATION: <br /> Staff recommends approval of the attached resolution authorizing execution of an <br /> amended grant agreement with the U.S. Dept. of Housing and Urban Development in <br /> which $500,000 in funds under the U.S. Department of Housing and Urban Development <br /> (HUD) HOME program will be allocated to the City of Decatur for the development of <br /> permanent housing for the chronically homeless. The City was awarded these funds on <br /> April 2, 2004 in response to a grant application submitted to HUD on December 15, <br /> 2003. <br /> BACKGROUND: <br /> On December 15, 2003, the City of Decatur submitted a proposal to the Department of <br /> Housing and Urban Development in response to a special Notice of Funding Availability <br /> for HOME funds. These funds were available through a competitive reallocation of <br /> CHDO set-aside funds which had previously been allocated to HOME participating <br /> jurisdictions. Approximately $6.5 million was made available, with $500,000 to be <br /> allocated to each of the thirteen top-scoring applicants. On April 1, 2004 the City learned <br /> that its application ranked sixth nationwide and that it had been awarded the grant. <br /> Funds awarded under this NOFA must be used by certified CHDOs to produce rental <br /> housing units for persons who are chronically homeless. A chronically homeless person <br /> is defined as an unaccompanied homeless individual with a disabling condition who has <br /> either been continuously homeless for a year or more or has had at least four episodes of <br /> homelessness in the past three years. Accordingly, in developing the grant proposal and <br /> planning for use of the funds, City staff is working closely with the Decatur/Macon <br /> County Homeless Council and the Neighborhood Housing Development Corporation <br /> (NHDC). NHDC is the only certified CHDO in the City of Decatur which has rental <br /> housing experience. NHDC has subsequently been awarded a $25,000 grant from the <br /> Corporation for Supportive Housing to develop a strategy for best use of these funds. The <br /> strategy will include development of one or more rental housing projects over the next <br />