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Evaluation report presented to Menifee council for CDBF programs
Friday, October 4th, 2013
Issue 40, Volume 17.
A performance and evaluation report must be completed each year to inform the council of what the status of the program is.
CDBG is a program that helps communities with resources to address a wide range of unique community development needs.
The purpose of the CDBG program is to enhance and maintain viable urban communities by providing decent affordable housing, a suitable living environment and the expansion of economic opportunities.
"We look at programs that assist in the ability of people to purchase or first-time homebuyer programs," said City Manager Robert Johnson.
The Department of Housing and Urban Development awards annual grants on a formula basis to entitlement community grantees to carry out a wide range of community development activities directed toward revitalizing neighborhoods, economic development, and providing improved community facilities and services.
Entitlement communities develop their own programs and funding priorities, according to the cityís website.
However, grantees will be provided to low to moderate income persons, and according to their needs.
Some of those are placed by HUD into the best areas of the city, said Mayor Pro Tem Wallace Edgerton. Some feel that it takes a toll on the market and brings down the value of the home in the rest ofthe neighborhood.
They take it out on the market so that that house could have sold on a private market at a higher price, according to Edgerton.
"What they do depreciates the value of real estate in that area. Thatís what gets our area so upset," Edgerton said.
Although itís called a block grant, it operates more like a categorical grant, he said.
"They get very specific about what you can and cannot do in a very broad range," Edgerton added.
"When we start talking about families, and taking things out of the private market, and then marking them down in the neighborhood, which then affects the appraised value on those homes in that neighborhood," Edgerton said.
Councilmember John Denver has seen five of these homes sell, and argued against Edgerton.
"Theyíre taking people, the amount of money you make and middle income people, who do not have a great credit score, but they have a job, and they qualify for everything," he said.
They pick the worst homes in the area, and they fix it up and put about $40,000 into the home, according to Denver.
"Then they sell it with a very small down payment to someone who can afford it," he said. "The market price is similar to rest of the homes."
How the houses are identified is what the council and staff need to figure out, said Johnson.
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