HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/16/2004 - OTHER BUSINESS - RESOLUTION 2004-045 ENDORSING THE ITEM NUMBER: Other Business
AGENDA ITEM SUMMARY DATE: March 16, 2004
FORT COLLINS CITY COUNCIL STAFF: John Fischbach
SUBJECT
Resolution 2004-045 Endorsing the City's Participation in a Two-year, Tenant Based, Pilot Rental
Assistance Program.
RECOMMENDATION
Staff recommends adoption of the Resolution.
EXECUTIVE SUMMARY
The Colorado Division of Housing (DOH) has approached the City and the Fort Collins Housing
Authority regarding a tenant based, rental assistance, two-year pilot program. DOH has a new
director and it is focusing on responding quickly to local market conditions. DOH has identified
three communities with unique needs due to the economy. Colorado Springs,the Denver Metro area,
and Fort Collins/Loveland are currently facing double digit rental market vacancy rates, financially
challenged low-income affordable housing projects, demand exceeding capacity in homeless
shelters, and large waiting lists for deep subsidy programs like Section 8 vouchers.
The State Housing Board has responded by committing$2.8 million of DOH money to those three
communities - $465,000 for Fort Collins/Loveland for a two-year, stop-gap, rental assistance
program that would target between 35 and 70 families earning 0-30% of Area Median Income,
working families in shelters,homeless individuals and families,those on Section 8 waiting lists,and
other local preferences to be defined. The funding will provide rental assistance, security deposit
assistance, case management for self-sufficiency and project administration.
The goal is to begin this program right now. The economy has created a greater burden on extremely
low-income families. HUD economists do not foresee the market changing until mid-2006.
As this program will only be for two years,participants will be required to sign contracts specifying
that the assistance will not continue past that point. They will also be required to participate in goal
setting and intensive case management in order to help them become more self-sufficient. As a
family becomes more self-sufficient and its income increases,the amount of subsidy will decrease,
thus freeing up subsidy for another family. That is why we cannot determine the exact number of
families that can be served at this time.
DOH is asking for a local contribution of$305,000. Using roughly a 70/30 split between Fort
Collins and Loveland,that equates to a$214,072 contribution from Fort Collins. With a firm local
commitment, DOH will commit to 100% for the first six months funding. Subsequent six-month
periods would be 75%, 50%, and 50%.
March 16, 2004 -2- Item No. Other Business
Target Population and Cost of the Program
Target extremely low income(working families, homeless and Section 8 wait list) with
case management—35 TBRA Cost is divided into 4 six-month increments
DOH City
Pays 100% of first six months $169,333 $ 16,476
Pays 75% next six months $127,000 $ 46,110
Pays 50%next six months $ 84,666 $ 75,743
Pay 50%next six months $ 84,666 $ 75,743
TOTAL $465,665 $214,072
DOH would like the program to start immediately since this is a stopgap, pilot program in
response to current needs.
DOH is willing to look at case management and discounted rents as a portion of the local
contribution. They have stated that they will look at"reasonable proposals"regarding the
split between cash and in-kind contribution. The Fort Collins Housing Authority and
Housing Authority of the City of Loveland are working on in-kind possibilities. The cash
match, over the two-year pilot is estimated to be between an estimated $150,000 and
$214,072
The Fort Collins Housing Authority is unable to provide cash match because the limited
reserves it has are restricted to the federal programs they support. City staff are exploring
options for the cash match—the Affordable Housing Trust fund balance; General Fund
reserves; or some combination.
With Council approval of Resolution 2004-045,the staffwill continue to work with the DOH
to determine the specific split between cash and in-kind local contribution. Once that is
determined, a recommendation for the source of cash will be presented to City Council.
RESOLUTION 2004-045
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ENDORSING THE CITY'S PARTICIPATION IN A TWO-YEAR,
TENANT BASED, PILOT RENTAL ASSISTANCE PROGRAM
WHEREAS,the City ofFort Collins is committed to the provision of affordable housing;and
WHEREAS,Fort Collins and other Front Range cities are currently facing double-digit rental
market vacancy rates, financially challenged low income affordable housing projects, and large
waiting lists for heavily subsidized housing programs such as Section 8 vouchers; and
WHEREAS, the State Housing Board of the Colorado Division of Housing ("DOH") has
committed$2.8 million for a two-year,stop gap,rental assistance program that would target between
35 and 70 families earning 0% to 30% of area median income, working families in shelters,
homeless individuals and families,those on Section 8 waiting lists,and others in need of affordable
housing; and
WHEREAS, this funding will provide rental assistance, security deposit assistance, case
management for self-sufficiency and project administration; and
WHEREAS,$465,000 ofthe foregoing amount is targeted for the Fort Collins/Loveland area;
and
WHEREAS,this grant money from the DOH will require a local contribution by the City of
Fort Collins in the range of$150,000 to$214,000,which contribution may consist of a combination
of cash and in-kind contributions; and
WHEREAS,the Fort Collins Housing Authority is unable to provide the cash portion of the
local contribution because the limited resources available to the Housing Authority are restricted to
the federal programs they support, so City staff is exploring other options for funding such
contribution; and
WHEREAS, pending appropriation of any local matching funds needed for the local
contribution,the Council wishes to express its intent to accept the grant from the DOH so as to begin
the above-referenced pilot program as quickly as possible.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That, contingent upon appropriation of any necessary local matching funds,
the City Council hereby accepts the Division of Housing grant for a tenant based,rental assistance,
two-year pilot program and directs the City Manager to execute such agreements with the Division
of Housing as may be necessary to evidence the City's acceptance of the same.
Section 2. That the City Manager is hereby directed to identify a source for funding the
cash portion of the local contribution that will be required by the Division of Housing from the City,
and to present an appropriation ordinance to the City Council as expeditiously as possible in order
to appropriate such local matching funds.
Passed and adopted at a regular meeting of the City Council held this 16th day of March,
A.D. 2004.
Mayor
ATTEST:
City Clerk