The rationale for allocating resources geographically was identified in the Consolidated Plan and has not changed. The specific location of each activity is identified in Table 3C, if it is known at this point. Around 75% percent of the city’s CDBG and HOME resources are directed to activities that target the city’s Neighborhood Revitalization Strategy Area, shown below.

Neighborhood Revitalization Strategy Area Activities

The implementation strategies for the Burlington Neighborhood Revitalization Strategy Area is outlined below, together with the actions that the city proposes to take in Program Year 2008 with its CDBG and HOME resources:

A. Stimulate and support business growth/development on Riverside Ave., Smart Growth area, North Street area and downtown.

Funded Projects/Programs:

• Sustainable Economic Development Strategies
• Business Financing & Technical Assistance
• Intervale Center Farms Program
• Brownfields Program

Annual Benchmarks:

• 6 new business start-ups assisted in the Target Area
• 6 businesses retained/expanded in the Target Area
• 40 jobs created/retained in the Target Area
• 1 completed redeveloped brownfields site in the Target Area, with redevelopment underway on 6 others
• 13,000 sq. ft. of new/renovated commercial/industrial space in the Target Area

B. Support workforce development and asset building opportunities for low and moderate-income residents.

Funded Projects/Programs:

• ReCycle North Waste-Not-Products
• YouthBuild · Women’s Small Business Program
• Champlain Housing Trust
• Intervale Center Healthy Cities Program

Annual Benchmarks:

• 11 LMI households assisted into homeownership in the Target Area
• 3 job training programs serving Target Area residents
• 4 LMI Target Area residents assisted through entrepreneurial training programs

C. Create and preserve decent, safe and affordable housing in the Target Area.

Funded Projects/Programs:

• Champlain Housing Trust
• Housing Initiatives Program
• YouthBuild

Annual Benchmarks:

•  33 new units of affordable housing in the Target Area
• 25 units of rehabbed housing in the Target Area (other than lead remediation)
• 70 units with lead remediation in the Target Area

D. Enhance a suitable living environment in Target Area neighborhoods through infrastructure improvements and public safety and quality of life organizing efforts.

Funded Programs/Projects:

• Neighborhood Revitalization

Annual Benchmarks:

• Infrastructure predevelopment underway

Activities With No Specific Location

The locations for most activities funded with CDBG and HOME funds are known in advance. There are some programs, however, that are specifically designed to respond to requests for assistance as they arise throughout the year. Those programs are described below.

Burlington Housing Initiatives Program (funded with CDBG)

Emergency Loan Program: Sliding scale loans (50% amortizing, 50% deferred payment) to low- and very-low income homeowners in the Renewal Community and other CDBG-eligible neighborhoods. Loans are typically $5,000 or less.

Accessibility Program: Grants are available to low-income elderly or disabled Burlington residents. Grants are typically $5,000 or less.

Paint Grants: Free paint for low-income households in the Renewal Community and other CDBG-eligible neighborhoods. Grants are generally limited to covering the cost of paint.

Special Projects: Funds are available for special projects to homeless shelters, and seed grants for high impact projects such as permanent housing for homeless and disabled in Burlington. Maximum grant amount is $10,000.

RePAIR (Rehabilitation Program Assisting Investment Rentals): Loans are available to finance necessary repairs to multifamily rental properties in Burlington, with priority to Renewal Community neighborhoods. All rents charged after the rehabilitation must be affordable to lower income families for one year, and at least 51% of the occupants must have incomes less than 80% of the county median during that period. RePAIR will assist with the financing of rehabilitation and will also refinance existing debt. Applications are reviewed for credit worthiness, ratio of income to expenses, loan to value and other typical underwriting standards.

Duplex Program: CEDO and the NeighborWorks Homeownership Center run by the Champlain Housing Trust operate a program to encourage owner-occupancy of 2-4 unit buildings in targeted neighborhoods. The renter-occupied unit in a building purchased through this program is subject to rent restrictions. Typical down payment and closing cost assistance is $10,000 per building.

Burlington Housing Initiatives Program (funded with HOME)

Acquisition and Rehabilitation Program: Acquisition and rehabilitation of owner-occupied and rental properties to make them affordable to low-income households or to preserve them as affordable units, convert them to cooperative properties, or for the acquisition and improvement of mobile home parks.

New Construction Program: Production of owner-occupied dwellings, cooperative properties, conventional rental properties, single-room occupancy units, group homes or housing for households/individuals with documented special needs. Units created under this program must be affordable to low-income households.

Rehabilitation of Existing Owner-Occupied Manufactured Homes Program: Rehabilitation of existing manufactured housing stock is an eligible activity. Income-eligible owners of manufactured housing units qualify for HOME funds to pay for rehabilitation, including the creation or repair of a permanent foundation, rehabilitation of the unit, and relocation costs associated with moving a unit.

Refinancing Existing Debt: Multi-family projects developed by locally-based housing organizations that receive HOME funds for rehabilitation may utilize HOME funds to refinance existing debt if there is significant rehabilitation of the property proposed in addition to the refinancing.

Business Financing & Technical Assistance and Burlington Sustainable Economic Development Strategies Program

Burlington Revolving Loan Program: Gap financing is available to businesses that are located in Burlington, with particular attention to certain targeted commercial revitalization areas including the Renewal Community, the King Street neighborhood and the Pine Street Business District. Loan applicants must meet the size guidelines of the U.S. Small Business Administration. There is a formal application process. Applicants must submit a business plan and show they are investing their own time and money in the business. Loan applications are reviewed when they are complete, and questions raised by the loan committee are provided to applicants in writing for their response. Loans range from $500 up, and the interest rate is 8%. Loans may be used to finance fixed assets or inventory, or for operating capital. Repayment schedules vary according to what's being financed, and loans are secured by all business and/or personal assets.

CEDO also administers other business loans and grants. Loans used to finance efficiency improvements and/or to reduce environmental waste are offered at 4%. Loans used to finance handicapped access construction will be offered at 0%. Occasionally, the city may also extend no-interest loans for up to five years to nonprofit organizations or government entities for projects that will create jobs. The city may also provide small grants as an incentive to repair and improve commercial facades where the improvement positively impacts the neighborhood and facilitates economic development. The city may offer grants for work force training for new employees and for job upgrading skills. Finally, the city may provide financial assistance in the form of a grant to refugee entrepreneurs in order to provide needed training, marketing, and technical assistance.

NeighborWorks® Homeownership Center Services of the Champlain Housing Trust

NeighborWorks® HomeOwnership Center homebuyer education services are available to everyone. Certain income requirements and geographical restrictions apply to the financial assistance programs, rehab loans, Land Trust properties, and special lender programs offered through the Center. Land Trust homeownership is available to customers of the Center who have a stable source of income, good credit and reasonable debts, and who meet maximum income guidelines. Land Trust homebuyers may receive down payment assistance for qualified single family home purchases or may purchase an existing Land Trust home that is being resold.

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