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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/07/2004 - SECOND READING OF ORDINANCE NO. 188, 2004, APPROPR ITEM NUMBER: 17 AGENDA ITEM SUMMARY DATE: December7, 2004 FORT COLLINS CITY COUNCIL STAFF: Ken Waldo SUBJECT Second Reading of Ordinance No. 188, 2004, Appropriating Unanticipated Revenue in the Home Investment Partnerships Grant Fund. RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. EXECUTIVE SUMMARY The Home Investment Partnerships (HOME) Program and the Community Development Block Grant (CDBG) Program provide funds from the Department of Housing and Urban Development to the City of Fort Collins that can be allocated to community development and affordable housing related programs and projects, thereby reducing the demand on the City's General Fund Budget to address such issues. Ordinance No. 188, 2004, was unanimously adopted on First Reading on November 16, 2004. ORDINANCE NO. 188, 2004 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED REVENUE IN THE HOME INVESTMENT PARTNERSHIPS GRANT FUND WHEREAS,the City will receive unanticipated Home Investment Partnerships ("HOME") Program income in the 2004-2005 federal fiscal year in the amount of$200,000; and WHEREAS, the City will also receive unanticipated HOME Grant Funds from the HOME American Dream Grant in the amount of$53,862; and WHEREAS,the HOME American Dream Grant funds must be used for down payments on properties to be bought by individuals; and WHEREAS,Article V,Section 9,of the Charter of the City of Fort Collins permits the City Council to make supplemental appropriations by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriations,in combination with all previous appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, City staff has determined that the appropriation of unanticipated HOME Program income and unanticipated HOME American Dream Grant income will not result in total appropriations in excess of the current estimate of actual and anticipated revenues for fiscal year 2004; and WHEREAS,by adoption of Resolution 2004-131,the City Council approved Programs and Projects for the 2004-2005 HOME Program. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That there is hereby appropriated for expenditure from unanticipated program income revenue,upon receipt thereof into the Home Investment Partnerships Grant Fund,the amount of TWO HUNDRED THOUSAND DOLLARS ($200,000) for approved Home Investment Partnerships projects. Section 2. That there is hereby appropriated for expenditure from unanticipated HOME American Dream Grant revenue,upon receipt thereof into the Home Investment Partnerships Grant Fund,the amount of FIFTY-THREE THOUSAND EIGHT HUNDRED SIXTY-TWO DOLLARS ($53,862) for approved Home Investment Partnerships projects. Introduced, considered favorably on first reading, and ordered published this 16th day of November,A.D. 2004,and to be presented for final passage on the 7thday of December,A.D.2004. Mayor ATTEST: City Clerk Passed and adopted on final reading this 7th day of December, A.D. 2004. Mayor ATTEST: City Clerk ITEM NUMBER: 36 A-E AGENDA ITEM SUMMARY DATE: November 16, 2004 FORT COLLINS CITY COUNCIL STAFF: Ken Waldo x SUBJECT Items Related to the Competitive Process for Allocating City Financial Resources to Affordable Housing Projects/Programs and Community Development Activities: the Fiscal Year 2004-2005 Home Investment Partnerships (HOME) Program, the Fiscal Year 2004-2005 Community Development Block Grant (CDBG) Program, and the City's Affordable Housing Fund. RECOMMENDATION Staff recommends adoption of the Resolutions and of the Ordinances on First Reading. The CDBG Commission presents a list of recommendations as to which programs and projects should be funded. EXECUTIVE SUMMARY A. Public Hearing and Resolutiond20 44-.1 oving the-FY 2004-2005 Home Investment Partnerships Program for the City of Fort Collins. B. Public Hearing and Resolution 2004-132 Adopting Additional Programs/Projects for the FY 2004-2005 Community Development Block Grant Program for the City of Fort Collins. C. Public Hearing and Resolution 2004-133 Allocating Funding from the City's Affordable Housing Fund. D. First Reading of Ordinance No. 188, 2004, Appropriating Unanticipated Revenue in the Home Investment Partnerships Grant Fund. E. First Reading of Ordinance No. 189, 2004, Appropriating Unanticipated Revenue in the Community Development Block Grant Fund. The Home Investment Partner 'ips (HOted�4oc- fement d Xommunity Development Block Grant (CDBG) Program provi 'funds f o ousing and Urban Development to the City of Fort Collins that ca Ilunity lopment and affordable housing related programs and projects, thereby reducing the demand on the City's General Fund Budget to address such issues. The City Council is being asked to consider the adoption of three resolutions and two ordinances. The first resolution (Resolution 2004-131) establishes which programs and projects will receive funding with HOME funds for the FY 2004-2005 Program year,which started on October 1, 2004. The second resolution (Resolution 2004-132) establishes which additional programs and projects will receive funding with CDBG funds for the FY 2004-2005 Program year, which also started on October 1, 2003. The third resolution (Resolution 2004-133) establishes November 16, 2004 -2- Item No. 36 A-E which programs and projects will receive funding from the City's Affordable Housing Fund. The two ordinances(Ordinance No. 188,2004,and Ordinance No. 189,2004)appropriate unanticipated program income revenue for the HOME and CDBG programs respectively. mmPtCommun Devel ment ant ommission'sifim a onunding Request Recommendation Applicant-Project $500,000 $500,000 City of Fort Collins - Home Buyer Assistance $450,000 $450,000 City of Fort Collins - Land Bank Program $426,000 $342,018 Fort Collins Housing Corp- Sleepy Willow $136,455 $136,445 Fort Collins Housing Corp- 300 First Street SRO $250,000 $100,000 CARE Housing, Inc. $ 56,000 $ 56,000 CASA Inc. -Harmony House Visitation Center $ 87,500 $ 70,500 United Way-Housing Services Day Center $225,000 $ 52,193 Crossroads Safehouse - Rehabilitation $105,000 $ 52,000 Crossroads Safehouse-Community Outreach Center $ 67,029 $ - 0 Wingshadow Inc., - Facility Improvements Presented below is a listing of t e endation by un g s�urce. CDBG Program ($426,813 a 'table) Recommendation Applican rojec $196,120 Fort Collins Housing Corp-Sleepy Willow $ 56,000 CASA Inc. -Harmony House Visitation Center $ 70,500 United Way-Housing Services Day Center $ 52,193 Crossroads Safehouse - Rehabilitation $ 52,000 Crossroads Safehouse-Community Outreach Center $426,813 Total (100% of available funds) HOME Program ($796,118 available) Recommendation Applicant- Project $500,000 City of Fort Collins - Home Buyer Assistance $136,445 Fort Collins Housing Corp-300 First Street SRO $636,445 Total (80% of available funds) HOME Program ($108,450 fo @HD�O�s Recommendation Applica Proj $ 0 There w e no eli".Dlea for nding within this funding source. $ 0 Total (0 o fa�*'ailas) Affordable Housing Fund ($695,898 available) Recommendation Applicant - Project $450,000 City of Fort Collins -Land Bank Program $145,898 Fort Collins Housing Corp-Sleepy Willow $100,000 CARE Housing, Inc. $695,898 Total (100% of available funds) November 16, 2004 -3- Item No. 36 A-E BACKGROUND The resolutions establishing whic r gra andf'ects will r ive HOME, CDBG, and City Affordable Housing Fund doll rep is t ci i f e fall cycle of the competitive process approved in January 20 by the ounci oloca n of the City's financial resources to affordable housing progra ro' ct an ounity d elopment activities. Additional background material about the competitive process is included in Attachment A. Since early January of this year,the CDBG Commission and members of the City staff's Affordable Housing Team have conducted public hearings to assess community development and housing needs in Fort Collins, conducted technical assistance training workshops for applicants, and solicited applications for funding. The CDBG Commission reviewed 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 established refined criteria to determine priorities between proposals received by the City. The ranking criteria are divided into five major categories. Each category is given a total number of points that has been weighed according to their importance with respect to local and federal priorities. The five major categories are: 1. Impact/Benefit 2. Need/Priority 3. Feasibility COPY. 4. Leveraging Resources 5. Capacity and History The Impact/Benefit criteria provide greater rewards to proposals that target lower income groups. The Need/Priority criteria help assure the proposal meets adopted City goals and priorities. The Feasibility criteria reward projects for timelines and documented additional funding. The Leveraging Resources criteria reward proposals which will return funds to the City(via loans) and for their ability to leverage other resources. And, the Capacity and History criteria help gage 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 is presented in Attachment A. The Commission also considered the funding guidelines contained in the Priority Affordable Housing Needs and Strategies re do by ou on ly 20, 2004. These guidelines include: • HOME funds sh e b Il ted as fo ws:90%for Housing projects and 10%for Program Administration. HUD HOME Program regulations also require the City to set aside 15%for Community Housing Development Organization (CHDO) projects and allow an allocation of 5% for CHDO operations; November 16, 2004 -4- Item No. 36 A-E • CDBG funds should generally be allocated as follows: 65% for Housing projects; 15% for Public Services, and the balance for Public facilities and Program Administration; • funds allocatedCho shoul poppoymne sided as follows: 70% for rental projects and 30 wne and • the average subsidy should be $7,400 per unit, with relatively more funding to projects producing housing for lower income families. The CDBG and HOME Programs are ongoing grant administration programs funded by the Department of Housing and Urban Development (HUD). The City of Fort Collins has received CDBG Program funds since 1975 and HOME Program funds since 1994. The City is an Entitlement recipient of CDBG funds and a Participating Jurisdiction recipient of HOME 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 programs by Congress and on a formula developed by HUD, which includes data on total population, minorities as a percentage of population,income levels,housing stock conditions,etc. Additional background information on the City's HOME and CDBG Programs are presented in Attachments C and D respectively. AVAILABLE FUNDS The amount of the City's FY 20(HOM ant a ble f2,256. The City is also receiving a supplemental $53, rom ® an eric Dam Grant. Added to the HOME Grants will be $200,000 of estimated HOME Program Income to make a combined amount of $904,568 available for projects. The HOME funds will be combined with$695,898 from the City's Affordable Housing Fund and $379,120 of unallocated CDBG funds plus $47,693 of estimated CDBG Program Income to create a potential pool of$2,027,279 of funds available for programs from the fall cycle of the competitive process. CDBG funds are typically allocated in the spring and are,thus,not available for use in the fall cycle of the competitive process. However, the City did not allocate all of its CDBG funds in the spring cycle of 2004 carrying over an amount of$426,813 for allocation in the fall cycle. The following summarizes the amount and sources of available funds: AMOUNT SOURCE ---------------- $ 850,706 004 ant Estimated Program Income 53,862 H — 'can dre Grant 695,898 ity ord le Housi Fund 426,813 Unallocated CDBG Funds and Estimated Program Income ---------------------------------------------------------------------------------------------------------- $2,027,279 Total November 16, 2004 -5- Item No. 36 A-E SELECTION PROCESS On January 8, 2004, the CDBG Commission held a public hearing to obtain citizen input on community development and aff thsin ne h O CDBG Program office placed legal advertisements in local a regiows a st in ly to solicit requests for HOME and CDBG funded programs a projecd f p posals fo he use of funding from the City's Affordable Housing Fund. The pliedtea in as Thur ay August 19. At the close of the deadline the City received ten (10) applications requesting a total of approximately $2.9 million. The Fort Collins Housing Cooperation later amended their$1,000,000 Sleepy Willow Rehabilitation application down to a request of$426,000. Copies of all applications were forwarded through the City Manager's office to the City Council on September 1, 2004 and placed in the Council Office for review. Also on September 2, 2004 copies of the applications were distributed to the CDBG Commission and the Affordable Housing Board. On Thursday September 16, 2004, the Affordable Housing Board conducted a special meeting to review the affordable housing proposals and formulate a list of priority projects which was forwarded to the CDBG Commission (see Attachment B). On Thursday September 23, 2004, the CDBG Commission met to hear presentations and ask clarification questions from each applicant. The Commission then met on Thursday September 30 for the purpose of preparing a recommendation to the City Co t h)!Ptahe"Yperrmanance jects should be funded within funds available from the fall c le of comthis meeting the Commission reviewed the written applicati�s, the licon, the information provided during the question and answer 3�ssion, a dr of agencies who received HOME funds, CDBG funds, or other funding in previous years. The Commission then worked on the formulation of their list of recommendations. CDBG COMMISSION'S LIST OF RECOMMENDATIONS HUD HOME regulations limit the amount of available funds that can be allocated to various categories. Funds for Administrative purposes are limited to 10%of the HOME Grant which means 90% of the Grant must be used for housing projects. Within the 90%required for projects,the City is required to set aside 15% for Community Housing Development Organization (CHDO)projects and allow an allocation of 5% for CHDO operations (if any applications are received). Similarly, HUD CDBG regulations limit the amount of available funds that can be allocated to various categories. Funds for Administrative purposes are limited to 20%of the CDBG Grant and estimated Program Income and funds for Public Services are limited to 15%. The City allocated all eligible funds for public services dun th sGdhif!Yicanpre'seneted cltivprocess and designated approximately 13% for admini ativeThe Commission, thus, not onl ad-t6 programs and projects which best fit into the City's HOME and CDBG Programs,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. November 16, 2004 -6- Item No. 36 A-E Listed below is a summary of each applicant's initial request for funding and the Commission's list of recommendations. L HOUSING PROJECTS 1. CITY OF FORT COLLCS - OPSSYISNCE Amount of Request $500,000 Due on sale loan/5% simple interest fee Recommendation: $500,000 Due on sale loan15%simple interest fee This program is administered by the Advance Planning Department and provides zero-percent interest loans, to eligible first-time homebuyers. A 5% fee is added to the loan balance at the time of repayment. The assistance covers down payment and closing costs to a maximum of$9,576 for households at 51%to 80%of Area Median Income(AMI)and$19,200 for buyers at or below 50% of AMI. Approximately 52 households will be assisted with this funding. CDBG funding of $500,000 has already been allocated and must be matched with other funds. The combined funding of CDBG and HOME will serve more than 100 families. 2. CITY OF FORT COLLINS -LAND BANK PROGRAM Amount of Request: $450,000 uet S a int st fee Recommendation: $450,00 ue on le L o p Brest fee This application is requesting fu Seto pu hase`ra 1 -acre site-1 Gated at south of Kechter and west of Ziegler Road. The City implemented the Land Bank Program to preserve scarce land resources for affordable housing projects.Currently,the City has purchased 30 acres(three properties),which will yield approximately 300-320 future affordable housing units. 3. FORT COLLINS HOUSING AUTHORITY-SLEEPY WILLOW MARKETABILITY/ RENTENTION UPGRADE Amount of Request: $426,000 Due on sale loan/5%simple interest fee Recommendation: $342,018 Due on sale loan15%simple interest fee The Fort Collins Housing Corporation is requesting funds to increase the curb appeal of Sleepy Willow with interior and exterior rehabilitation.The project proposes the replacement of windows, cabinets,doors,floor coverings,locks,electrical items,boiler upgrades,plumbing,exterior finishes and several other items to impro ili ildi . The project is located at Taft Hill Road and West Plum Stre . The • ect i o e ntl ated near shopping, schools and public transportation. 4. FORT COLLINS HOUSING CORPORATION - 300 FIRST STREET SRO REHABILITATION Amount of Request: $136,455 Due on sale loan/5%simple interest fee Recommendation: $136,455 Due on sale loan15% simple interest fee November 16, 2004 -7- Item No. 36 A-E The Fort Collins Housing Corporation (FCHC) proposes to reconstruct the foundation, replace the roof, heating system, windows, landscaping, resurface the parking area, and perform several other Housing Quality Standards items for the building. The facility is home to 12 individuals. This project is part of the "Hom tri g rs rmanent housing and case management to individuals wh are ho ess o tPD be ng homeless. 5. CARE HOUSING—AC ITI Amount of Request: $250,000 Due on Sale Loan/5%simple interest fee Recommendation: $100,000 Due on Sale Loan/5% simple interest fee The proposed project involves the acquisition of land to be used in a Built Green affordable housing demonstration project in Fort Collins. The Built Green units on a future site will be certified to ensure that the housing is healthier, safer and more durable than a typical new home. CARE is requesting funds for a future site with the intention of constructing 40-50 affordable multi-family housing units targeted towards very low income families earning between 30% and 50% of AMI. IL PUBLIC FACILITIES 1. CASA INC. OF LARIMER COUNTY—HARMONY HOUSE VISITATION CENTER Amount of Request: $56,00(ne01oa 5 si yltfee Recommendation: $56005 simpt fee This historic facility is used by families who are court ordered to have supervised visitation with their children. Due to the age of the facility, it is in need of ongoing repairs. Improvements needed to the facility are new roof, soffit, fascia, and gutters. 2. UNITED WAY—HOUSING SERVICES CENTER Amount of Request: $87,500 Due on sale loan/5% simple interest fee Recommendation: $70,500 Due on sale loan/5%simple interest fee (full legal funding amount due to HUD regulations of the separation of Church and State activities) United Way of Larimer County proposes to construct an approximately 18,000 square foot Housing Services Day Center using"green"building techniques.This facility will be both a Salvation Army site and a permanent facility to address the services needed for the homeless and near homeless population. CDBG funds are r uested h Mi r Subdivision Plat of Conifer Industrial Park, in the City of Coll (corn o Bl S c and Conifer Street). The proposed site for the Day enter'fs n t 3. Lot is currently owed by Neighbor to Neighbor. The land was purchased with CDBG funds from the City of Loveland and Larimer County funds. Lot 2 is the adjoining lot to Lot 3. Transfer of Lot 3 ownership from Neighbor to Neighbor to United Way is under way. November 16, 2004 -8- Item No. 36 A-E 3. CROSSROADS SAFEHOUSE—25Ta ANNIVERSARY REHAB PROJECT Amount of Request: $225,000 Due on sale loan15% simple interest fee Recommendation: $ 52,193 n s inte st fee Crossroads Safehouse seeks to novate shel i ity in o er to provide a cleaner, safer and more attractive environment for of ome is olence an eir children.The comprehensive rehabilitation is based on 5 and 10 year projections, which include installing a split air conditioning system, bringing electric to up to code,repairing broken sliding doors,upgrading sprinkler system, making roof repairs, finishing basement space, installing new carpet, landscaping for stormwater improvement and converting current office space to resident bedrooms.The project serves 100 very low and low income households each year. 4. CROSSROADS SAFEHOUSE— COMMUNITY OUTREACH CENTER Amount of Request: $105,000 Due on sale loan/5% simple interest fee Recommendation: $ 52,000 Due on sale loan/5% simple interest fee Crossroads Safehouse is requesting CDBG funds to relocate two buildings (house and barn) from the Rule's farm site.The building would be used to create a Crossroads Community Outreach Center and would house administrative le vie ,o '1 n's grograms,community education, life skills training and a public eting S e.M i [h d atrve and program offices would create space for more families. 5. WINGSHADOW—FACILITY IMPROVEMENT Amount of Request: $67,029 Due on sale loan15% simple interest fee Recommendation No funding. Wingshadow was founded in 1993 and operates several programs: Frontier School, Outreach, Sheltering Wings, The Aerie, Eagle Homes, and the Wings. Frontier School is an alternative school that provides a safe learning environmental for students in grades 7 through 12 who have dropped out, been expelled, or referred by public schools because of high-risk status. The project is located at 1225 Redwood Street and serves over 1,100 persons. Wingshadow is requesting CDBG funds to resurface the parking lot. Total amount of funding requested = $2,302,984 Total amount of funding ava'able= $ 027, Total amount of funding allocat — 7 p Y The total amount of funding requests considered by the CDBG Commission was approximately$2.3 million,however, only about$2.0 million of funds are available. With the amount of total requests far exceeding available funding, obviously not all applications could be funded. The CDBG Commission has recommended full funding for four(4) proposals, partial funding for five (5)proposals, and no funding for one (1)proposal. There were no eligible applications for the November 16, 2004 -9- Item No. 36 A-E HOME FY04-50 CHDO funds. The Commission's reasons for either full funding, or no funding, for all projects are presented in Attachment E. • The CommissiChas o e 11 0%)of the available$426,813 of CDBG fund • The Commissi e e allocatin (80%) of the $796,118 available HOME funds. �vw • The Commission has recommended allocating all (100%)of the$695,898 available from the Affordable Housing Fund.