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STATUS REPORT: COMMUNITY DEVELOPMENT BLOCK GRANT #2

Arlington's second Community Development Block Grant application, for $141,100, was approved by HUD on October 19, 1976. It was for the following activities:

1. Arlington Housing Corporation Rehabilitation Loans and Grants and
administrative expenses ($78,300)

2.

Nauck/Green Valley Neighborhood facilities upgrading and administrative
expenses ($62,800)

As of January 18, 1977, none of this grant has been expended. However, the environmental review process for the Housing Corporation program and for two of the three neighborhood facilities has been completed, and it has been initiated for the third.

The Housing Corporation is presently soliciting applications for rehabilitation loans and grants from the six census tracts added to the first year's ten (see Map 1). Because of the limited amount of funding received and the ever increasing demand for assistance, AHC intends to try to make a lower percentage of grants and more loans with their second year funding. They also expect to be working more closely with local financial institutions to reactivate the County's moribund low interest loan program.

The design work for the improvements to Jennie Dean playground has been completed, wage rates have been received and materials have been ordered. We expect to initiate construction as soon as the weather permits.

A list of proposed improvements and estimated costs has been drawn up for the Kemper Center. Actual work is expected to begin when the weather permits.

The design work for the project to remove barriers at the Drew School and to upgrade its outdoor resources is completed. The environmental review has been initiated and work

should begin in early April.

ACTIONS TAKEN BY ARLINGTON COUNTY TO SUPPORT HOUSING ASSISTANCE PLANS (HAP)

PART II

During its two years as a participant in the Community Development Block Grant Program, Arlington has prepared and submitted two HAP's. In support of these HAP's, the County has undertaken four different types of actions. They are: legislative initiatives, the establishment of the Arlington Housing Corporation, a Section 8 Program and approval for construction of 835 units of new housing designated for elderly Section 8 occupancy.

The legislative iniatives resulted in two amendments to the Code of Virginia. One which was passed in 1975, made it permissible for any County City or Town to participate in the Section 8 program. A second amendment, which was passed in 1976, made it permissable for any County, City or Town to undertake the Community Development activities specified in Title I of the Housing and Community Development Act of 1974. It also made permissible the expenditure of local moneys for the same purposes for which federal funds may be employed under the provisions of the Community Development Act. Copies of both amendments are attached.

The establishment and subsequent incorporation of a community based nonprofit charitable housing corporation was enthusiastically supported by the County. To indicate this support, the County contributed $7,000 to supplement the $118,500 of Community Development funds which had already been committed. In the six months of its active operation, the Arlington Housing Corporation has made 29 rehabilitation grants to low income homeowners. In addition, it attempted to purchase for rehabilitation and Section 8 occupancy a deteriorated garden apartment. If AHC is unsuccessful in its effort to do this, the CD funds allocated for it will, with HUD's permission, be utilized to expand the first year loan and grant program. By emphasizing low cost loans in the future, AHC hopes to be be able to assist even more households than would be possible if the emphasis were to remain on making grants.

In August of 1976 Arlington signed the County's first Annual Contributions Contract (ACC) for 343 units of Section 8 housing. This is Arlington's first participation in a Federally subsidized housing program. During the application period in September, approximately 500 applications were received. By February 1977, 75 units were under lease, and certificates of eligibility had been issued to approximately 235 additional households who are currently seeking suitable units. In December, the County filed for and HUD approved an additional 75 units which constitute our second year Section 8 commitment. These should be added to the ACC in February. They will all be family units, which is the area of greatest need.

Since November, 1975, 835 units of new Section 8 subsidized units for the elderly have been approved for construction in Arlington County. County staff is currently at work revising the zoning ordinance to encourage the construction of townhouse units, which it is hoped will generate some family sized Section 8 new construction. It should be noted that there have been no new construction Section 8 family sized units made available by HUD to Arlington during the life of the program. However, the AHC is optimistic that the County will receive CD funding to be used for the development of Section 8 family sized cooperative townhouses.

As a result of the above activities, Arlington County feels that it has made a good start at meeting its HAP objectives.

CHAPTER

An Act to amend the Code of Virginia by adding a section numbered 15.1-29.7, providing for local government participation in certain federal conmunity development activities.

[H 389]

Approved

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding a section numbered 15.1-29.7 as follows:

15.1-29.7. Participation by local government in certain federal community development activities.-Any county, city or town may participate in a program under Title I (Community Development) of the United States Housing and Community Development Act of 1974. Any such county, city or town may undertake the community development activites specified in Title I of that act, unless such activities are prohibited by the Constitution of Virginia. Any county, city or town may appropriate its own money's for the same purposes for which federal funds may be employed under the provisions of such federal legislation unless prohibited by the Constitution of Virginia.

Approved:

Governor

President of the Senate

Speaker of the House of Delegates

CHAPTER

An Act to amend and reenact § 15.1-296 of the Code of Virginia, relating to local government participation in certain federal housing programs.

[H 398]

Approved

Be it enacted by the General Assembly of Virginia:

1. That § 15.1-29.6 of the Code of Virginia is amended and reenacted as follows:

§ 15.1-29.6. Participation by local government in certain leasing programs. Any county, city or town may participate in a program under § 8 (Housing Assistance Payments Program Existing Housing) of the United States Housing Act of 1937, as amended, on behalf of eligible families or eligible persons leasing privately-owned housing directly from owners or private leaseholders. Any such county, city or town may also appropriate its own money for the same purposes for which federal funds may be employed under the provisions of such federal legislation as well as for the purpose of increasing the payments to eligible families or eligible persons beyond federally approved levels when the fair market rent of the rental unit is greater than that established by the United States Department of Housing and Urban Development.

If any power granted in the foregoing paragraph is held invalid, the other remaining power shall not be affected thereby. If the application of the power granted in the foregoing paragraph to any persons or circumstances is held invalid, the application of the power to other persons shall not be affected thereby. Nothing in the foregoing powers granted local governments shall include the authority to pledge the full faith and credit of such local government in violation of Section 10 of Article XI of the Virginia Constitution.

Approved:

Governor

President of the Senate

Speaker of the House of Delegates

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