FLOOD07316

• County: Statewide
• Basin: Statewide
• Title: Community Block Grant Applications Review 1984
• Date: 3/19/1984
• Prepared For: State of Colorado
• Prepared By: CWCB
• Floodplain - Doc Type: Flood Documentation Report

APPLICATION NO.: 85-602

APPLICANT: Town of Fowler

2. PUBLIC/PRIVATE
COMMITMENTS

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Loan reclplents will pay 2~ finders fee to Fowler I
Housing Authority. These monies will be used to offset ,
administrative costs. Fowler Bank: Loans as needed to ,
over-income up to $100,000 '/
L I M I H I I
X I I I I
Project manager and fiscal admlnlS. are same person. I
This may not provide adequate internal fiscal controls I
and is too time intensive for 1 person with existing res-I
sonsibi1ities as town clerk. Furthermore, project mana- I
ger must be experienced in work write-ups and cost ,
estimating; I
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CWCB states project outside 100 yr. flood plain. Pre- I
vious COBG monitoring resulted in a number of findings I
which were resolved before closeout. SHPO considerations'
will be made through environmental review process. I
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I Audit $500: City
I Office supplies $500:
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a. Local Financial
Corrmitments

City.

b. Local Non-Financial
COlllllitments

Admin. services $13,000: Town.

c. Other Commitments

3. MANAGEMENT
CAPABILITY

a. Staff and
Contractors

b. Budget

Applicant may need additional admin. funds to contract
out construction management.

c. Statutory/Regula-
tory Compliance

PRO STATEMENTS:

o Rehab grants will benefit 10-15 L/M owners. Maximum grant will be $15,000,
indicating major health and safety deficiencies will be addressed.

o Town has 10 L/M qualified applicants for rehab on file.

CON STATEMENTS:

o It is anticipated that virtually all of the bank loans will go to households
with incomes above 80% of median income. Any moderate income that can qualify
for a loan will obtain loans from the bank at the same terms and rates as
above-income recipients (2% finders fee, 8% loan, 1st or 2nd mortgage held by
bank).

o No program income will be generated as all loans will be approved, made and
serviced by the bank. COBG funds will be used for grants only. .

o Past COBG monitoring findings (which were resolved before closeout) were related
to contract procurement, insufficient contractor competition, conflict of
interest, minority benefit, and fiscal administration. ~

COMMENTS:

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o Local Priority: 1 of 1.
o Eligibility of activities: Eligible.
o Validity of National Objectives: Valid as Low/Mod Benefit.

o The match from Fowler Bank is cOlllllitted on an as-app1ied-for basis up to .
$100,000. Since the loans will be nearly 100% to over-income, the match is not
really applicable to the COBG funded project.

o Is Fowler Bank committed to do loan portion of project whether or not COBG funds
are awarded?

o Are potential loan recipients willing to have a 1st or 2nd mortgage placed on
their homes?