TITLE
Recommendation to approve Community Development Advisory Commission funding recommendations for the Fiscal Year 2006 (FY 06) Nonprofit Assistance Program; and authorize City Manager to execute and amend, as necessary, loan documents with various nonprofit organizations approved for FY 06 Nonprofit Assistance Program in an estimated total amount of $500,000. (Districts 1,2,7,8)
DISCUSSION
For the last eleven years, the City Council has authorized the Department of Community Development to provide forgivable, no-interest loans to property owners of nonprofit agencies providing public services to low-income Long Beach residents. In the current fiscal year (FY 06) the budgeted amount approved by the City Council to assist nonprofit agencies was $500,000. The Nonprofit Assistance Program (NAP) is funded by federal Community Development Block Grant (CDBG) funds.
NAP loans must be used solely for physical improvements to rehabilitate, reconfigure, convert, and/or improve the facilities of nonprofit agencies. The minimum loan amount is $5,000 and the maximum loan amount is $70,000. Loan recipients are required to participate financially in the rehabilitation by providing a cash match equal to five percent of the total amount determined to be necessary to make eligible improvements.
Deeds of Trust securing the NAP loans are recorded against the property. The loans will be forgiven, over time, provided the nonprofit agency continues to provide services to low income residents at the improved facility.
Ten (10) applications for funding were received. The Community Development Advisory Commission (CDAC) reviewed and ranked each application based on preestablished criteria.
The NAP selection criteria includes:
. The proposed improvements will increase or significantly enhance services to low-income Long Beach residents.
. The funding will be used to comply with health, building, fire, safety, and/or zoning regulations, or to improve facility accessibility by me...
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