Community Development Block Grant Recovery (CDBG-R)

DRAFT

                                            Summary of
                    Proposed Substantial Amendment to the
                   2008 Action Plan Pertaining to Receipt of 
          Community Block Grant Recovery (CDBG-R) Funds

On February 17, 2009, the U.S. Congress passed and President Obama signed into law the American Recovery and Reinvestment Act of 2009 (ARRA).  ARRA will provide the City of Fayetteville a total of $172,702 through a one time allocation of Community Development Block Grant Recovery (CDBG-R) funds.  CDBG-R requires that the City of Fayetteville submit a Substantial Amendment to its FY2008 Action Plan.

This document presents the details of the proposed Substantial Amendment to the 2008 Action Plan.

CDBG-R

CDBG-R funds enable local governments to undertake a wide range of activities.  Funding available under the Recovery Act has clear purposes – to stimulate the economy through measures that modernize the Nation’s infrastructure, improve energy efficiency and expand education opportunities and access to health care.  As specified under the Recovery Act, the City shall give priority for use of the funds to projects that can award contracts based on bids within 120 calendar days from the date funds are made available to the recipients.

The City proposes that the CDBG-R funds be made available to make three city owned public facility properties more energy efficient.  The proposed projects will provide employment (temporary) to approximately 38 people.  These city owned properties are leased to local organizations that primarily benefit low- and moderate-income residents of Fayetteville.  One of the three proposed locations is currently occupied.  The other two will be leased through a competitive process upon completion of the energy efficiency rehabilitation.  While the jobs specific to the projects will be temporary the projects will provide long term benefit to the community.  The organizations that lease the properties will benefit from the low cost lease ($1/year) and the savings the programs will gain from occupying an energy efficient property.  In an economic climate that has caused at least two local nonprofit organizations to close their doors the availability of low cost energy efficient lease property will contribute significantly to allowing the tenant organizations to keep their doors open.  This ensures that the employees of those organizations retain their jobs and that the services they provide to low- and moderate-income residents continue to be provided.