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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/16/2000 - ITEMS RELATING TO THE CITYS FISCAL YEAR 2000-2001 ITEM NUMBER: 13 A-B AGENDA ITEM SUMMARY DATE: May 16, 2000 is FORT COLLINS CITY COUNCIL STAFF: Ken Waido SUBJECT: Items Relating to the City's Fiscal Year 2000-2001 Community Development Block Grant and Home Investment Partnerships Programs. RECOMMENDATION: Staff recommends adoption of the Ordinances on Second Reading. EXECUTIVE SUMMARY: A. Second Reading of Ordinance No. 52, 2000, Appropriating Unanticipated Revenue and Authorizing the Transfer of Appropriations Between Projects in the Community Development Block Grant Fund. B. Second Reading of Ordinance No. 53, 2000, Appropriating Unanticipated Revenue and Authorizing the Transfer of Appropriations Between Projects in the Home Investment Partnerships Fund. Ordinance No. 52, 2000 and Ordinance No. 53, 2000,were unanimously adopted on First Reading on May 2, 2000, and appropriate funds to be received for the CDBG and HOME programs, and transfer into the federal 2000-2001 fiscal year programs unexpended program funds from prior year CDBG programs. AGENDA ITEM SUMMARY ITEM NUMBER: 24A-D DATE: May 2, 2000 . FORT COLLINS CITY COUNCIL STAFF: Ken Waido SUBJECT: Items Relating to the City's Fiscal Year 2000-2001 Community Development Block Grant and Home Investment Partnerships Programs. RECOMMENDATION: 4 Staff recommends adoption o e Resol ions of the Ordiri ces on First Reading. The CDBG Commission presents a list of r G =en iA as Qthich ams and projects should receive funding. EXECUTIVE SUMMARY: A. Public Hearing and Resolution 2000-66 Approving the FY 2000-2001 Community Development Block Grant Program for the City of Fort Collins. B. Public Hearing and Cthe o2000 ` 7 vi e FY 2000 .Home Investment Partnerships Programi of F C ° fins. C. First Reading of Ordinance No. 52, 2000, Appropriating Unanticipated Revenue and Authorizing the Transfer of Appropriations Between Projects in the Community Development Block Grant Fund. D. First Reading of Ordinance No. 53, 2000, Appropriating Unanticipated Revenue and Authorizing the Transfer of Appropriations Between Projects in the Home Investment Partnerships Fund. The Community Developm BI an ( B gr and the Home Investment Partnerships(HOME)Progr provide deral m th'„ epartment of Housing and Urban Development(HUD)to the Ci of Fprt Ili h`h can be ocated to housing and community development related programs an projects, ere y, reducingit a demand on the City's General Fund Budget to address such needs.The City Council is being asked to consider the adoption of two resolutions and two ordinances. The first resolution establishes which programs and projects will receive funding with CDBG funds for the FY 2000-2001 Program year,which starts on October 1, 2000. The CDBG Commission presents a list of recommendations as to which programs and projects should receive funding. The second resolution establishes only the major funding categories within the HOME Program for the FY 2000-2001 Program year. Specific projects for the use of HOME funds will be determined in November as a result of the fall funding cycle of the competitive process for the allocation of the City's financial resources to affordable housing . programs/projects and community development activities. The ordinances appropriate funds to be received for the CDBG and HOME programs, and transfer into the federal 2000-2001 fiscal year programs unexpended program funds from prior year CDBG programs. DATE: May 2, 2000 2 ITEM NUMBER: 24 A-D BACKGROUND: The City Council is being asked to consider the adoption of two resolutions. The first resolution establishes which programs and projects will receive funding with Community Development Block Grant(CDBG) funds for the FY 2000-2001 Program year, which starts on October 1, 2000. The second resolution establishes only the major funding categories within the Home Investment Partnership(HOME)Program for the FY 2000-2001 Program year. Specific projects for the use of HOME funds will be determined in November as a result of the fall funding cycle of the competitive process for the allocation of the City's financial resources to affordable housing programs/projects and community development activities. Additional background material about the competitive process is included in Attachmen X11111N. Since early January of this ye the CD a Co is ton and m bers of the City staff's Affordable Housing Team have conducted e s commutity development and housing needs in Fort Collins, conducted technical assistance training workshops for applicants, and solicited applications for CDBG funding. The City's Affordable Housing Board reviewed the written applications for affordable housing projects and forwarded a priority ranking of proposals, as well as comments,to the CDBG Commission. See Attachment"B"for copies of the Board's materials sent to the CDBG Commission. The CDBG Commission, in addition to reviewing the written applications,personally interviewed each applicant,analyzed the applications,and formulated a list of recommendations to the City Council as to which programs and projects should receive funding. The competitive process es ta s e e e to rmi9'priorities between proposals received by the City. The r g crite are i o fi ajor categories. Each category is given a total number of points at has b n we a accordin o their importance with respect to local and federal priorities. Th maj eg '" are: 1. ImpactBenefit 2. Need/priority 3. Feasibility 4. Leveraging Resources 5. Capacity and History The ImpactBenefit criteria prov' eate war r s t target lower income groups. The Need/priority criteria hel sur pro al e a t City goals and priorities. The Feasibility criteria reward proj is forti lines ent dditional funding. The leveraging resources criteria reward prop s w ' Iwill funds to a City (loans) and for their ability to leverage other resources. And, a Capaci and story criteria help gauge an applicant's ability to do the project and reward applicants that have completed successful projects in the past (have good track records).The ranking sheet used to assist the CDBG Commission and the Affordable Housing Board is presented in Attachment"A". The Commission also considered the funding guidelines contained in the Priority Affordable Housing Needs and Strategies report adopted by the Council on February 2, 1999. These guidelines include: o CDBG funds should generally be allocated as follows: 65% for Housing projects; 10% for Program Administration; 10% for Public Facilities; and 15% for Public Services; 0 funds allocated to housing should generally be divided as follows: 70% for rental DATE: May 2, 2000 3 ITEM NUMBER: 24 A-D projects and 30%for homeownership opportunities; and • o the average subsidy should be $5,000 per unit, with relatively more funding to projects producing housing for lower income families. The CDBG Program is an ongoing grant administration program funded by the Department of Housing and Urban Development (HUD). The City of Fort Collins has received CDBG Program funds since 1975. In 1975 and FY 1976-77 the City received HUD CDBG discretionary grants. Since FY 1977-78,the City has been an Entitlement Grant recipient of CDBG funds, meaning the City is guaranteed a certain level of funding each year. The level of funding is dependent on the total amount of funds allocated to the program by Congress and on a formula developed by HUD, which includes data on total po at on, mn4 ties�as ,T ntage.of population, income levels, housing stock conditions, et Ad i6 nal backg i rm&ion on the City s Community Development Block Grant Pr ram is sented'of achme "C". i AVAILABLE FUNDS The amount of the City's CDBG Entitlement Grant for FY 2000-2001 is $1,175,000. The Entitlement Grant will be combined with $34,358 of CDBG Program Income and $93,544 of Reprogrammed funds to create a total of$1,302,902 of CDBG funds available for programs and projects during the next CDBG Program year. CDBG Program Income includes funds returned to the City through the payment of past housing rehabilitation loans. CDBG Reprogrammed funds include funds not expended in previously approved projects. The following summarizes th oun 0sos f apilafds: • CDBG Program AMOUNT SOURCE $1,175,000 FY 2000 CDBG Entitlement Grant 34,358 CDBG Program Income 93,544 CDBG Reprogrammed Funds $1,302,902 CDBG Total COPY DATE: May 2, 2000 4 ITEM NUMBER: 24 A-D Below is a summary of recent CDBG funding levels allocated from HUD to the City of Fort Collins: Entitlement Reprogrammed Program Year Grant Funds Income Total Funds 1990 645,000 50,000 30,000 725,000 1991 728,000 160,000 30,000 918,000 1992 802,000 30,000 50,000 882,000 1993 1,091,000 50,000 90,000 1,231,000 1994 1,187,000 30,000 50,000 1,267,000 1995 1,231,000 0 Y00 1,271,000 1996 1,202:000 1,242,000 1997 1,188,000 81,2P 1,419,273 1998 1,162,000 6 1,428,875 1999 1,169,000 0 50,000 1,219,000 SELECTION PROCESS The selection process for the City's FY 2000-2001 CDBG Program began on January 13, 2000, when the CDBG Commission held a public hearing to obtain citizen input on community development and housing needs. The CDBG Program office placed legal advertisements in local and regional newspapers starting in January to solicit requests for CDBG funded programs and projects for FY 2000-2001.The ' i 1' da bruary 24. At the close of the deadline the City received 28 , plica requ ti a tal proximately $2.5 million. Copies of all applications were aide gh ity M er's office to the City Council on March 2 and placed in the Council Office for review. Also on March 2 copies of the housing applications were distributed to the Affordable Housing Board and copies of all applications were distributed to the CDBG Commission. On Thursday March 23,the Affordable Housing Board conducted a special meeting to review the housing proposals and prepare a priority listing of applications to the CDBG Commission. On Wednesday April 12, and Thursday April 13, the Commission met to hear presentations and ask clarification questions from each applicant. The Commission then met on Wednesday April 19,for the purpose of preparing a rec - en a ' to a '1 o which programs and projects should be funded for the FY 0-2001 rogr y t eeting the Commission reviewed the written applications, the a lic is rb re ntation, information provided during the question and answer session,an r" sewed performance of encies who received FY 1999-2000 CDBG funds or funding in other previous years. The Commission then worked on the formulation of their list of recommendations. CDBG COMMISSION'S LIST OF RECOMMENDATIONS HUD CDBG regulations limit the amount of available funds which can be allocated to various generic categories. Funds for Planning and Administrative purposes are limited to 20%of the total of the Entitlement Grant and any anticipated Program Income. This means the 20% limitation for Planning and Administrative purposes is$260,580. CDBG funds for Public Services are limited to 15% of the total of the Entitlement Grant and anticipated Program Income, making the amount $181,403. DATE: May 2, 2000 5 ITEM NUMBER: 24 A-D The Commission, thus, not only had to decide which applicants presented programs and projects • which best fit into the City's CDBG Program, but also had to insure funding allocations were kept within HUD regulations and follow the funding guidelines contained in the Priority Affordable Housing Needs and Strategies report. Listed below is a summary of each applicant's initial request for funding and the Commission's list of recommendations. PLANNING AND ADMINISTRATION—Maximum 20% of CDBG Funds - $260,580 City of Fort Collins CDBG Admimstritlon Proposal covers the admini atiXecos s of{he F 2000-2 1 CDBG Program Administration including salary, benefits and operating expenses for 2 staff positions. Request: $139,687 Recommendation: $139,687 City of Fort Collins—BAVA Subarea (Neighborhood)Plan Request for matching funds for a subarea (neighborhood) plan for the Buckingham, Andersonville, and Alta Vista neighborhoods. The plan will cover topics such as land use, redevelopment,transportatio , b 1'Mon n, ge, Request: $100,000 R ¢o mendati ` : $8Q000 Paradigm Development and Consulting,Inc.—Planning,Capacity Building and Admin Project This project will identify undeveloped properties in the urban growth area for future affordable housing development. The properties will be protected for affordable housing development by using means such as land banking, deed restrictions, land trusts, etc. Request: $70,900 Recommendation: $0 Acquisition Habitat for Humanity Request for funding for the purchase of three lots. Request: $150,000 Recommendation: $75,000 Subsidy to be provided as deferred zero-interest loans, due-on-sale for three housing units. FM Fort Collins, L.P.—Fox Meadows Apartments Request is for funding for land acquisition,however, the applicant already owns the property DATE: May 2, 2000 6 ITEM NUMBER: 24 A-D and CDBG funds can not be used for reimbursement payments. Request: $250,000 The proposal was withdrawn by the applicant. Neighbor to Neighbor,Inc. Request for a grant to help acquire an existing apartment complex consisting of 24 units located at 233 N. Meldrum Street. Request: $300,000 The proposal was withdrawn by the applicant. Brisben Companies—Park Southa cnts Request for assistance intpayme of Ci •• Jev)opm!empact Fees. Request: $220,000 Recommendation: $0 Housing Elizabeth Street Senior Apartments Request by Kaufman and Broad for funds to pay City Development Impact/Building Permit Fees to help construct 50 se a eet. Request: $250,000 R,, o endati $250,000 Subsidy to be provided as a 30-year loan at 3% interest with a 10-year balloon. CSU Habitat for Humanity—CSU House Project Grant request to help construct a single-family home in northeast Fort Collins. Request: $4,200 C Recommendation: $ 10,512 OD di a grant to be used to pay City l il ment Im: ct Fees. DATE: May 2, 2000 7 ITEM NUMBER: 24 A-D • Homeownership Assistance City of Fort Collins CDBG Program—Homebuyer Assistance CDBG funds are anticipated to be combined with and HOME($136,950) funds to continue to provide home ownership opportunities through the Homebuyer& Closing Cost Assistance Program. Approximately $5,000 per unit would be available to families earning less than 80% of AMI. Request: $189,000 wRecomnd 'on: �$492,939 Uln*�'(eLllic Stances, increase assistance to J for famiks below 50% of AMI. Public Facilities Respite Care Remodel Project Grant request to remove current food storage area, add shelving, and change lighting in the administrative area of the Respite Care facility. Request: $12,000 R ' da $ 1.2,000 Food Bank for Larimer CouC Grant request to help renovate the food cooler floor and add additional pallet racks and shelving. Request: $19,300 Recommendation: $19,300 Crossroads Safehouse, Inc. I Grant request to replaced oc' 00] s a S o Shelter. Request: $6,296 endati : $5,900 Fullana Learning Center—Renovation Project Phase II Grant request to help develop an infant playground and support space renovations to relocate employees. Request: $36,161 Recommendation: $36,161 Forgivable 10-year grant with reverter clause if building is not used for low-income day-care. DATE: May 2,2000 8 ITEM NUMBER: 24 A-D Buarcaire Youth Services Grant request to help purchase a facility (total cost $650,000)to operate a halfway house for 25 youthful offenders. Request: $200,000 Recommendation: $0 Public Service Maximum 15% of CDBG funds $ 181,403 Education and Life Trainin(eati ntep— dult Li im e ice Grant request to provide ong Jenseodolt' teracy Services Program which provides tutor training forac v ' n e READ-TJP collection, responding to inquires, and coordinating other related adult literacy services. Request: $12,000 Recommendation: $10,000 Disabled Resource Services- Supported Youth Employment Program Grant request to help provide funds for the Supported Youth Employment Program that helps disabled youth participate in summer job training experiences. Request: $18,000 R a $15,000 Project SelfSufficiency Grant request to provide funds for the Supportive Services for Single Parent Families Program which assists participants in outlining steps towards accomplishment of both career and personal/family goals. Request: $25,000 Recommendation: $20,000 Food Bank for Larimer County Grant request to provideCocklev(QF Y$O Request: $4,500 R Neighbor to Neighbor,Inc. Grant request to provide partial funds for the operation of the HUD certified Comprehensive Housing Counseling and Case Management Program which provides assistance to people along all points of the housing continuum from homelessness to home ownership to options for older adults. Request: $25,000 Recommendation: $22,000 i Ma 2, 2000 9 ITEM NUMBER. 24 A-D DATE: y Child Care Collaborative Project . Grant request to help provide funds for the Sliding Scale Child Care Tuition Assistance Program. Eligibility requirements are based on income and requires adults to be working towards economic self-sufficiency. Request: $60,335 Recommendation: $60,335 Northern Colorado Health Network d.b.a. Northern Colorado Aids Project Grant request to provide parrtialfu�nding--f'or thee�l�eColo�rado Aids Project which attempts to decrease the incidence of IIIV in 1h aco . unity Ad ensure those living with HIV are in appropriate inkical care, y � �y iip Request: $20,000 Recommendation: $18,000 New Bridges,Inc. Grant request to help provide operational expenses of a daytime shelter and service referral center for the homeless. Request: $35,000 Recommendation: $0 Mercy Housing- Comm uni `Resid al In fifetv Sp' field Court Apts. Y Grant request to provide p 'abftuidi' for a of on-°'site resident services including childcare,job training, life development,parenting education, and children's activities. Request: $44,550 Recommendation: $0 Elderhaus Adult Day Care Programs Grant request to provide partial funding for three new programs, a Multi-Cultural Day Program, a Community Group and a Life Transitions Pro ram. Request: $16,640 J R dati $8,568 I i fi Lutheran Family Services Grant request to provide partial funding for the Fostering Family Strengths: Prevention of Child Abuse Program which is designed to prevent child abuse and neglect by helping families learn to interact in healthy non-violent ways. Request: $8,000 Recommendation: $7,500 DATE: May 2, 2000 10 ITEM NUMBER: 24 A-D Catholic Charities Northern - Services for Seniors Request for funds to provide services for seniors and frail and homebound elderly who are unable to access community resources because of lack of knowledge or other barriers such as cultural or language. Request: $6,500 Recommendation: $0 Catholic Charities Northern—The Mission Grant request to help provid, pe ati2_6 yheltehe Mission) and supportive services(Hope Job Bank) r the�oRequest: $25,000 d ,000 Total amount of CDBG funding requested=$2,468,069.00 A summary of the Commission's CDBG funding recommendations by category for the total amount of funds available is as follows: RECOMMENDED % of FUNDING TOTAL CATEGORY $ 219,687 16.9 � d,., TRATION (Maximum 580 s on 20% Entitlement Grant and Program U11 c 828,451 63.6 HOUSING 73,361 5.6 PUBLIC FACILITIES 181,403 13.9 PUBLIC SERVICES (Maximum $181,403 based on 15% of Entitlement Grant and Program Income) ------------—-------------------------- $1,302,902 100.0 TOTAL The total amount of CDBG funding re uests considered by the CDBG Commission was approximately $2.5 million, h . eve o $ in io B funds are available. With the amount of total requests faze eeding ailabl , ob sly not all applications could be funded.Due to HUD funding 1 'tatio s, ome bl Service lications received no funds or less funds than requested in order to p th c ca a ory wi in program maximums. The CDBG Commission has recommended full funding for five(5)proposals. In the Commission's opinion, the five applications recommended for full funding best fit CDBG Program national objectives, the selection criteria, and the funding guidelines. The Commission also has recommended increased funding, over what was initially requested, for two (2) proposals, the CSU Habitat for Humanity and the City's Homebuyer Assistance Program proposals. The Homebuyers Assistance Program is recommended for increased funding because, in the Commission's opinion, there were no other proposals worthy of funding over what the Commission has recommended. . r DATE: May 2, 2000 11 ITEM NUMBER: 24 A-D Proposals,which did not receive full funding,were deemed of a lower priority and, in some cases, f . a lack of funds,program category limitations(especially in the Public Services category),or funding guidelines prohibited their full funding. The Commission has recommended no funding for seven(7) proposals. The Commission's reasons for either increased funding, full funding,partial funding,or no funding are presented in Attachment"D". 't V-jp, 6;' t PY t • k C ()PY