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City department lays out spending plan for HUD funds

By William Kibler 4 min read

Altoona's Community Development Department has proposed a plan for spending the $2 million the city will receive this year from the federal Department of Housing and Urban Development, including $1.4 million for housing-related projects and programs.

The available funding, largely intended to benefit low- to moderate-income people, comprises $1.5 million in Community Development Block Grant money, including $103,000 earned from revolving loan programs; and $390,000 from the HOME Investment Partnerships Program, according to officials at a meeting Wednesday.

The provision of "decent, safe and sanitary housing" is one of the main objectives in the city's current five-year consolidated plan for spending HUD entitlement money.

Housing has been a recent emphasis for City Council and the newly reinvigorated city Redevelopment Authority -- the board of which also supervises the recently created Land Bank.

Allocations for CDBG projects related to housing:

– $389,000 for a single-family homeowner rehabilitation program, which targets whole-house improvements, including lead-based paint removal. This amount is likely to help 12 families. The money is loaned and returned to a revolving fund. Equity, payback ability and insurance are required, but recipients 62 and up don't need to repay the loans unless their homes are sold, at which point the money is recouped by a lien. Maximum loans are $25,000 for work that doesn't include lead remediation; the program provides up to $10,000 for lead remediation. The average project is $37,000.

– $60,000 for emergency homeowner roof replacement, via no-interest loans, forgiven over four years at 25% annually. This is likely to serve three families.

– $150,000 for demolition of blighted homes, which are likely to number 10; a perennial allocation.

– $25,000 for the Salvation Army Emergency Rent, Mortgage and Utility Assistance program, expected to assist 10 families. This is a program that began with COVID.

– $10,000 for the Catholic Charities Emergency Financial Assistance program to prevent evictions, expected to help 10 families.

– $30,000 to support city fair housing activities, including education, monitoring, research and community involvement.

– $425,000 for the Altoona Housing Authority to replace windows and sliding glass doors on 160 units and in the lobby of the 11th Street Tower.

Other CDBG allocations:

– $223,000 for street reconstruction and paving in low- to moderate-income areas.

– $15,000 for the Altoona Fire Department for six automatic external defibrillators.

– $44,000 for the AFD to purchase Jaws of Life rescue tools.

– $10,000 for the Gloria Gates Memorial Foundation's after-school programs.

– $308,000 for the city's Community Development Department to administer and monitor the HUD money and for other activities, including work on the new city comprehensive plan, research and community involvement.

HOME allocations:

– $161,000 for the Rental Rehabilitation program, which provides loans of up to $14,900 as a one-to-one match for landlords. Loans are forgiven after five years if landlords rent to income-eligible tenants, charging rents set by HUD. It's expected to help renovate 10 units.

– $190,000 for Improved Dwellings for Altoona to upgrade kitchens and corridors in 16 units at Evergreen Manors.

– $39,000 for administration of the HOME money.

The following requests were denied:

– $180,000 from the Central Blair Recreation and Park Commission to revitalize Geesey Park.

– $580,000 from the city engineering office for replacement of sidewalks on Eighth Street.

– $738,000 from the city engineering office for replacement of curbs and sidewalks on Howard Avenue.

– $5,000 from the Renew Church Backyard Club for supplies to help its program that teaches children how to love and deal with bullying and to provide them with recreation.

– $50,000 from the Eighteenth Street Community Church to rehabilitate a home that would become transitional housing.

– $100,000 from Family Services Inc. to operate its teen shelter near the Altoona Area School District campus.

– $200,000 from Family Services to operate its new family shelter.

City Council is expected to adopt the plan on May 8. The city will send the plan to HUD on May 19.

The city will receive the money in August or September.

Mirror Staff Writer William Kibler is at 814-949-7038.

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