Council to air CDBG funds for Katrina; Plan would be first time that grant funds used for nonlocal purpose

Grand Forks Mayor Mike Brown says he won’t send city money down south to help communities hit by the Hurricane Katrina.

The Finance and Development Committee, in its recommendation, has set aside $261,300 from the Community Development Block Grants program, or CDBG, for a potential assistance to a community affected by Hurricane Katrina.

The issue is up for discussion at the Committee of the Whole meeting at 7 tonight in City Hall. It is last on the seven agenda items.

Keith Lund, deputy director of urban development, said now it is for the City Council to decide whether the CDBG fund could be used for such a purpose.

If the council approves the recommendations of Finance and Development Committee, it would be possibly for the first time that CDBG funds would be used for purposes other than local, Lund said.

Most common uses

CDBG funds are used for projects that benefit low-and moderate-income people, eliminate slum and blighted conditions and address urgent community needs.

According to the recommendation, the amount set aside for potential assistance for a community affected by Hurricane Katrina is the second-highest ever only after $300,000 recommended for allocation to Red River Valley Community Action for a housing rehabilitation loan program.

Rehabilitation use

Lund said the funds, if approved by the City Council, could be used for rehabilitation of the community likely to be adopted by the city of Grand Forks. But a final decision could only be taken not earlier than Nov. 7, he said.

The city anticipates about $1.6 million in CDBG funds for projects in 2006.

According to the agenda item, the city received 16 applications from various agencies and nonprofits for the 2006 CDBG funds. The Citizens Advisory Committee, after meetings Aug. 23 and 25 and a public hearing Aug. 30, recommended nine of them for priority funding.

Agencies recommended were Prairie Harvest, Shelter for Homeless, Red River Valley Habitat for Humanity, Red River Valley Community Action, Greater Grand Forks Senior Citizens Association and Easter Seals/Goodwill, in addition to three different programs of Office of Urban Development.

Recommendations

The Finance and Development Committee at its meeting Sept. 15 recommended a total CDBG funding of $1,624,000 to first seven ranking projects. It also recommended $200,000 to the United Way, another $260,000 to the office of Urban Development, besides setting aside $261,300 for potential funding to Katrina victims.

It recommended that the other two projects ranking eight and nine be granted the funds if relocation of CDBG dollars to Hurricane Katrina affected community does not occur or the additional CDBG program income is received.