Loading...
HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/02/2008 - HEARING AND RESOLUTION 2008-118 APPROVING THE PROG ITEM NUMBER: 24 AGENDA ITEM SUMMARY DATE: December 2, 2008 FORT COLLINS CITY COUNCIL STAFF: Ken Waido SUBJECT Hearing and Resolution 2008-118 Approving the Programs and Projects that Will Receive Funds from the Federal Home Investment Partnership (HOME)Program Grant and the City's Affordable Housing Fund. RECOMMENDATION Staff recommends adoption of the Resolution. The CDBG Commission presents a list of recommendations as to which programs and projects should receive funding. FINANCIAL IMPACT The Home Investment Partnership (HOME)Program provides Federal funds from the Department of Housing and Urban Development (HUD) to the City of Fort Collins which can be allocated to housing related programs and projects, thereby, reducing the demand on the City's General Fund Budget to address such needs. City funds for this item have been appropriated as part of the Affordable Housing Fund in December 2007. EXECUTIVE SUMMARY The Resolution will complete the fall cycle of the competitive process for allocating City financial resources to affordable housing programs/projects. BACKGROUND Resolution 2008-118 establishes which programs and projects will receive funding with HOME funds for the FY 2008 Program year, which started on October 1, 2008, including the use of carry- over HOME funds, HOME Program Income, and funds from the City's Affordable Housing Fund. The CDBG Commission presents a list of recommendations as to which programs and projects should receive funding. December 2, 2008 -2- item No. 24 The following table summarizes the amount and sources of available funds: AMOUNT SOURCE $463,825 FY 2008 HOME Grant $92,764 FY 2008 HOME CHDO Funds 75,000 FY 2008 HOME Program Income 333,000 FY 2008 Affordable Housing Fund 33,660 FY 2007 Affordable Housing Fund Unprogrammed $998,249 Total Funding Available Unprogrammed funds are funds from a funding source that have yet to be allocated to specific projects. The CDBG Commission presents recommendations as to which programs and projects should receive funding from the available funding sources presented above. The following table presents the allocations recommended by the Commission to the City Council: Affordable Housing Applicant Funding Commission's Unfunded Project/Program Request Recommendation Balance HO-1 Care Housing-Provincetowne $250,000 $250,000 $0 On-site Infrastructure HO-2 City of Fort Collins-Home Buyer Assistance (Former Rental $50,000 $50,000 $0 Properties) HO-3 City of Fort Collins-Home $200,000 $200,000 $0 Buyer Assistance HO-4 Fort Collins Housing Corporation (FCHC)-Leisure Drive $116,820 $116,820 $0 Rehabilitation HO-5 Larimer Home Improvement $100,000 $100,000 $0 Program (LHIP) HO-6 Neighbor-to-Neighbor: Floor $33,600 $33,600 $0 Replacements TOTAL $750,420 $750,420 1 $0 All funding recommendations in the Affordable Housing category are in the form of a"Due on Sale Loan + 5% Simple Interest Loan." December 2, 2008 -3- Item No. 24 The CDBG Commission has recommended that$750,420(75.2%)of the available funding amount of$998,249 be allocated leaving a balance of$247,829 (24.8%) from all of the funding sources to be carried over and made available for allocation in the 2009 spring cycle of the competitive process. The following table summarizes the utilization of funds from all sources. Recommended Funding % of Total Category $750,420 75.2% Allocated to Programs and Projects $247,829 24.8% Cary-over to 2009 Spring Cycle $998,249 100.0% Total Funds Available ATTACHMENTS 1. Background and Summary of the CDBG Commission's Recommendations for Funding. 2. Background Information on the Competitive Process. 3. Affordable Housing Board's List of Priority Projects. 4. Background Information on the CDBG and HOME Federal Programs. 5. CDBG Commission's Comments on Proposal. 6. Formulation of Funding Recommendations Session. ATTACHMENTI BACKGROUND AND SUMMARY OF CDBG COMMISSION'S RECOMMENDATIONS FOR FUNDING At the December 2, 2008, regular City Council meeting, the Council will be conducting a public hearing and consider the adoption of a resolution establishing which programs and projects will receive funding with Home Investment Partnership (HOME) and Affordable Housing Program funds for the FY 2008-2009 Program year. The resolution establishing which programs and projects will receive funds represents the culmination of the fall cycle of the 2008 Competitive Process approved in January 2000 by the Council 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 Attachment 2. Since early January of this year, the CDBG Commission and members of the City staffs 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 City's Affordable Housing Board reviewed the written applications for affordable housing projects and forwarded a priority ranking of proposals, as well as comments and questions, to the CDBG Commission. See Attachment 3 for a copy 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 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 its importance with respect to local and federal priorities. The five major categories are: 1. Impact/Benefrt 2. Need/Priority 3. Feasibility 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 (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 who have completed successful projects in the past (have good track records). A sample ranking sheet used to assist the CDBG Commission and the Affordable Housing Board is also presented in Attachment 2. 1 The Commission also considered the funding guidelines contained in the Priority Affordable Housing Needs and Strategies report adopted by the Council on July 20, 2004. These guidelines include: • HOME funds should generally be allocated as follows: 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; • 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 allocated to housing should generally be divided as follows: 70% for rental projects and 30% for homeownership opportunities; 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 is presented in Attachment 4. AVAILABLE FUNDS The following table summarizes the amount and sources of available funds: AMOUNT SOURCE $463,825 FY 2008 HOME Grant 92,764 FY 2008 HOME CHDO Funds 75,000 FY 2008 HOME Program Income 333,000 FY 2008 Affordable Housing Fund 33,660 FY 2007 Affordable Housing Fund Unprogrammed $998,249 Total Funding Available 2 SELECTION PROCESS The selection process for the City's FY 2008-2009 Competitive Process began on February 14, 2008, when the CDBG Commission held a public hearing to obtain citizen input on community development and affordable housing needs. The City Planning and Community Development office placed legal advertisements in local and regional newspapers starting in July to solicit requests for housing and community development projects for FY 2008-2009. The application deadline was Thursday August 21, 2007. At the close of the deadline the City received six (6) applications requesting a total of approximately $750,420. Copies of all applications were forwarded through the City Manager's office to the City Council on September 4, 2007 and placed in the Council Office for review. 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 September 18 the Affordable Housing Board conducted a special meeting to review the housing proposals and prepared a priority listing of applications to the CDBG Commission. On Thursday September 25 the Commission met to hear presentations and ask clarification questions from each applicant. The Commission then met on Thursday October 9 for the purpose of preparing a recommendation to the City Council as to which programs and projects should be funded for the FY 2008-2009 program year. At this meeting the Commission reviewed the written applications, the applicant's verbal presentation, the information provided during the question and answer session, and reviewed the performance of agencies who received funding in other previous years. The Commission then worked on the formulation of their list of recommendations. CDBG COMMISSION'S LIST OF RECOMMENDATIONS The Commission had to decide which applicants presented programs and projects which best fit the City's needs, had to insure funding allocations were kept within HUD regulations, and followed 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. AFFORDABLE HOUSING APPLICATIONS HO-1 CARE HOUSING—PROVINCETOWNE ON-SITE INFRASTRUCTURE Amount of Request: $250,000 due on sale loan/5%simple interest loan Funding Recommendation: $250,000 HOME funds, due on sale loan)5%simple interest loan CARE is submitting an application in the amount of$250,000 for on-site infrastructure on Provincetowne, a new construction, 85-unit"Green Communities" multi-family affordable housing rental development, targeted towards families between 30% - 50% of Area Median 3 Income (AMI). The Provincetowne site is located at the intersection of Trilby Road and Lemay Avenue, near the southern edge of Fort Collins. The entire project will total 156 units. HO-2 CITY OF FORT COLLINS—HOME BUYER ASSISTANCE (FORMER RENTAL PROPERTIES) Amount of Request: $50,000 —Affordable Housing Funds-due on sale loan15%simple interest loan Funding Recommendation: $50,000 —Affordable Housing Funds -due on sale loan/5%simple interest loan The City's Home Buyer Assistance Program provides downpayment and closing cost assistance for low to moderate income households which are financially ready to purchase a home but lack the required out-of-pocket downpayment. This program is administered by the City's Advance Planning Department and provides loans at zero-percent interest to eligible first-time homebuyers. A five percent loan is added to the loan balance at the time of repayment. Under this part of the HBA program, the City will provide assistance for approximately 6 low- to moderate income households to purchase property which is not eligible for federal funds due to being previous investment (rental)properties. HO-3 CITY OF FORT COLLINS—HOME BUYER ASSISTANCE Amount of Request: $200,000 —due on sale loan/5%simple interest loan Funding recommendation: $200,000 HOME funds —due on sale loan/5%simple interest loan The City's Home Buyer Assistance Program provides downpayment and closing cost assistance for low to moderate income households which are financially ready to purchase a home but lack the required out-of-pocket downpayment. This program is administered by the City's Advance Planning Department and provides loans at zero-percent interest to eligible first-time homebuyers. A five percent loan is added to the loan balance at the time of repayment. The assistance covers down payment and closing costs to a usual maximum of 5% of purchase costs for households at 51% - 80% of AMI. The City will provide assistance for approximately 60 low-to moderate income households to purchase their first home. HO-4 FORT COLLINS HOUSING CORPORATION (FCHC)—LEISURE DRIVE REHABILITATION Amount of Request: $116,820- due on sale loan/5%simple interest loan Funding Recommendation: $116,820 HOME funds -due on sale loan/5%simple interest loan Rehabilitation of 10 out of a total of 26 units of affordable rental housing owned by the Fort Collins Housing Corporation. Located on Leisure Drive near E. Drake, the properties are scattered within a two block radius of each other. Rehabilitation of the rentals will stock and allow the FCHC to continue serving their community and help preserve this permanently affordable housing for the lowest income families. The properties have adequate parking, are located near bus routes, have substantial green space and are near a neighborhood park, include 4 air conditioning and private patio areas, and the properties will be able to utilize the community clubhouse which will be a part of the Village on Stanford which backs to one of the Leisure complexes. Funding was allocated for rehabilitation of the other 16 units during the spring cycle of the competitive process. HO-5 LARIMER HOME IMPROVEMENT PROGRAM (LHIP) Amount of Request: $100,000—Grant Funding Recommendation: $100,000—Affordable Housing Funds Grant The Larimer Home Improvement Program (LHIP)provides 0%-5% interest rate loans to single- family units that are owner-occupied in order to make needed repairs, specifically aimed at health, safety, overcrowding, and energy efficiency rehab/repair projects. The program offers up to $25,000 with flexible terms to fit within the family's budget. The emergency fund program, which is run under the LHIP umbrella, offers up to $1,000 to families earning no more than 50% of the Area Median Income (AMI) as a one-time only grant to help with urgent, emergency needs such as dead water heaters and burst pipes. LHIP works closely with Leap/Weatherization furnace replacement program and can help with furnaces when Leap/Weatherization can't so that there is no duplication of service. The main source of funding for LHIP comes from the State Division of Housing and matching money is always a key component in receiving those funds. This grant would not only assist many families but also allow LHIP to receive the state funding needed to continue the program. HO-6 NEIGHBOR-TO-NEIGHBOR: FLOOR REPLACEMENTS Amount of Request: $33,600—Affordable Housing Funds - due on sale loan15%simple interest loan Funding Recommendation: $33,600—Affordable Housing Funds-due on sale loan15%simple interest loan Neighbor to Neighbor is seeking funds to support flooring replacement in a portion of the agency's affordable housing units. Replacements are completed on an as-needed basis, often during unit turns, and are essential to ensure that the older apartments in their inventory are safe and decent for the very low-income residents of the units. The CDBG Commission has recommended full funding for all six (6) affordable housing proposals and full funding for the one public facility proposal. The Commission's reasons for full or no funding are presented in Attachment 5. The CDBG Commission has recommended that$750,420 (75.2%) of the available funding amount of$998,249 be allocated leaving a balance of$247,829 (24.8%) from all of the funding sources to be carried over and made available for allocation in the 2009 spring cycle of the competitive process. The following table summarizes the utilization of funds from all sources. 5 Recommended Funding % of Total Category $750,420 75.2% Allocated to Programs and Projects $247,829 24.8% Carry-over to 2009 Spring Cycle $998,249 100.0% Total Funds Available Attachment 6 contains information on how the Commission's session where they formulate their funding recommendations was to be conducted. 6 ATTACHMENT Background Information on the Competitive Process for the Allocation of City Financial Resources to Affordable Housing Programs/Projects and Other Community Development Activities In February of 1999, the City Council approved the initial Priority Affordable Housing Needs and Strategies report, which contained the following strategy: Change from an administrative funding mechanism...to a competitive application process for the Affordable Housing Fund. Between September and November of 1999, a subcommittee consisting of members from the Affordable Housing Board and the Community Development Block Grant(CDBG) Commission met with staff to review issues and develop options for establishment of a Competitive Process. In addition, the staff solicited ideas from existing affordable housing providers. The subcommittee established the following Mission Statement for their work: Develop a competitive application process and establish a set of shared criteria for the allocation of the City's financial assistance resources to affordable housing projects/programs that address the City's priority affordable housing needs. Competitive Process Five options for a Competitive Process were reviewed and discussed by the subcommittee. The subcommittee reached a general consensus to support a Competitive Process that involved both the Affordable Housing Board and the CDBG Commission. The option selected would have the Affordable Housing Board providing recommendations to the City Council in regards to affordable housing policy. In addition, the option would have the Affordable Housing Board reviewing all affordable housing applications for CDBG, HOME and Affordable Housing funds. The Board would then provide a priority listing of proposals to the CDBG Commission. The CDBG Commission would then make the final recommendations to the City Council for funding. Funding Cycles The subcommittee also agreed that there should be two funding cycles per year, one in the spring and the other in the fall. CDBG Program funds would be allocated in the spring to affordable housing programs/projects and other community development activities (public services,public facilities, etc.). HOME Program and Affordable Housing funds would be allocated in the fall primarily to affordable housing programs/projects. 7 The staff and subcommittee agreed that overlaying the new process and cycles would be heightened staff technical assistance to applicants. Both the subcommittee and staff recognize that a semi-annual process will require additional meetings by both the CDBG Commission and Affordable Housing Board, and will require more time from current City staff, and increase the City Council's involvement. Schedule The subcommittee also discussed two alternative schedules for the funding cycles. The option selected incorporates a spring cycle that starts in January and ends in May, and a fall cycle that starts in July and ends in November. Review Criteria The subcommittee also discussed and agreed to a new set of review criteria to be used to rank proposals. The criteria are divided into the following five major categories: 1. ImpactBenefit 2. Need/Priority 3. Feasibility 4. Leveraging Resources 5. Capacity and History The Impact/Benefit criteria provide greater rewards to proposals that target lower income groups and provide longer benefits. The Need/Priority criteria help assure the proposal meets adopted City goals and priorities. The Feasibility criteria reward projects for timeliness and documented additional funding. The Leveraging Resources criteria reward proposals which will return funds to the City (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). See next page for a detailed criteria scoring sheet. Application Forms Three application forms have also been developed. One form for Housing proposals, one form for Public Facility proposals, and one form for Public Service proposals. City Council Adoption On January 18, 2000, the City Council approved Resolution 2000-13, formally adopting the Competitive Process for the allocation of City financial resources to affordable housing programs/projects and community development activities and the component parts discussed above. 8 RANKING CRITERIA The ranking criteria are divided into five major categories.Each category is given a total number of points that has been weighed accordin to its importance with respect to local and federal priorities. Im act/Benefit maximum 30points) 1. Primarily targets low incomepersons? (0-10) (all units 0-30%of AMI= 10 pts;at least half of the units at or below 30%of AMI and the remaining units at 31-50%of AMI=8 pts;at least half of the units at 31-50%of AMI and at least half of the units at 51-60%of AMI=6 pts;at least half of the units at 51-60%of AMI and half the units at 61-80%of AMI=4pts; all units between 61-80%AMI=2pts) 2. Project produces adequate community benefit related to cost? (0-5) Does the project provide assistance for persons to gain self-sufficiency or maintain independence,or 3. serve a special population? (0-5) 4. Does the project provide long-term benefit or affordability? (0-10) s(1-10 =3 pts, 11-19 yrs=6 pts,20-30 yrs=8 Ins,permanent= 10 is Sub-total Need/Priorit maximum 15 oints 1. Meets a Consolidated Plan priority? (0-5 2. Project meets goals or objectives of City Plan and Priority Needs and Strategies study? 0-5 3. Has the applicant documented efforts to secure other funding? (0-5) Sub-total Feasibilit maximum 15points) L The project will be completed within the required timeperiod? (0-3) 2. Project budget is justified? Costs are documented and reasonable.) (0-4 3. The level of public subsidy is needed? Private funds are not available.) (04) 4. Has the applicant documented efforts to secure other funding? (04) Sub-total Levera2in2 Resources maximum 20 oints 1. Does the project allow the reuse of our funding? (0-10 A. Principal and interest 30-year amortization or less 10 points B. Principal and no interest or principal and balloon payment(repayment) 6 points C. Due-on-sale loan 4 points 2. Project leverages other financial resources?(Includin in-kind) 0-10 A. Less than 1:1 0 points B. 1:1 to 1:3 4 points C. 1:4 to 1:6 7 points D. More than 1:7 10 points Sub-total f CaDacitv and History maximum 20points) L Applicant has the capacity to undertake the proposedproject? (0-10) 2. If previously funded,has the applicant completed prior projects and maintained regulatory compliance? 0-10 3. If new,applicant has capacity to maintain regulatory compliance? 0-20) Sub-total GRAND TOTAL 9 ATTACHMENT After careful review and discussion of the housing applications, the Fort Collins Affordable Housing Board established a list of priorities as a means for assisting the CDBG Commission as they prepare for applicant interviews. The following table presents the Board's listing of priority projects, the applicant's initial funding request, and the CDBG Commission's funding recommendation. AHB's Ranking Applicant's CDBG of Priority Project Initial Funding Commission's Unfunded Projects Request Recommendation Balance 1 HO-6 NEIGHBOR- $33,600 $33,600 $0 TO-NEIGHBOR: FLOOR REPLACEMENTS 2 HO-1 CARE $250,000 $250,000 $0 HOUSING - PROVINCETOWNE ON-SITE INFRASTRUCTURE 3. Tie HO-2 CITY OF $50,000 $50,000 $0 FORT COLLINS - HOME BUYER ASSISTANCE (FORMER RENTAL PROPERTIES 3. Tie HO-3 CITY OF $200,000 $200,000 $0 FORT COLLINS - HOME BUYER ASSISTANCE 5 HO-5 LARIMER $100,000 $100,000 $0 HOME IMPROVEMENT PROGRAM LHIP 6 HO-4 FORT $116,820 $116,820 $0 COLLINS HOUSING CORPORATION (FCHC) - LEISURE DRIVE REHABILITATION 10 ATTACHMENT ADDITIONAL BACKGROUND INFORMATION on the COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM CDBG PROGRAM NATIONAL OBJECTIVES The primary objective of the CDBG Program is the development of viable urban communities, by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income. Programs and projects funded with CDBG funds must address at least one of the following three broad National Objectives: (1) provide a benefit to low or moderate income households or persons, (2) eliminate or prevent slum and blight conditions, or (3) meet urgent community development needs which pose an immediate and serious threat to the health and welfare of the community. Presented below is a comparison of City CDBG expenditures for programs and projects categorized according to the National Objectives: National Objectives Low/Moderate Slum/Blight Urgent Income Benefit Elimination Need National Average 90% 10% 0% City Expenditures for: 2007 100% 0% 0% 2006 100% 0% 0% 2005 100% 0% 0% 2004 100% 0% 0% 2003 100% 0% 0% 2002 100% 0% 0% 2001 100% 0% 0% 2000 100% 0% 0% 1999 100% 0% 0% 1998 100% 0% 1 0% CDBG PROGRAM ELIGIBLE ACTIVITIES CDBG funds can be used on a wide range of activities including: (1) acquiring deteriorated and/or inappropriately developed real property (including property for the purpose of building new housing); (2) acquiring, constructing, rehabilitating or installing publicly owned facilities and improvements; 11 (3) restoration of historic sites; (4) beautification of urban land; (5) conservation of open spaces and preservation of natural resources and scenic areas; (6) housing rehabilitation can be funded if it benefits low and moderate income people; and (7) economic development activities are eligible expenditures if they stimulate private investment of community revitalization and expand economic opportunities for low and moderate income people and the handicapped. Certain activities are ineligible, under most circumstances, for CDBG funds including: (1) purchase of equipment, (2) operating and maintenance expenses including repair expenses and salaries, (3) general government expenses, (4) political and religious activities, and (5) new housing construction. 12 ADDITIONAL BACKGROUND INFORMATION on the HOME INVESTMENT PARTNERSHIP PROGRAM HOME INVESTMENT PARTNERSHIP PROGRAM GUIDELINES (Adopted by the Fort Collins City Council, July 18, 1995) PURPOSE: The purpose of the Home Investment Partnership (HOME) Program is to increase the supply of decent, safe, and affordable housing in the City of Fort Collins for an extended period of time. All of the HOME funds must benefit low and very low income households which are defined by the Department of Housing and Urban Development as having a total household income not exceeding 80% of the median household income for the Fort Collins area. ELIGIBLE PROJECTS: HOME funds must be used in the following ways: 1. DIRECT HOUSING ASSISTANCE: Down payment assistance: To help low-income individuals to purchase housing for their principal residence. Applicants must meet income guidelines of no more than 80% of the current median household income for the Fort Collins area and will be required to attend a homebuyer workshop. Assistance is in the form of zero percent deferred loan up to a maximum of$10,000 to help cover downpayment and closing cost expenses. The funding is repaid with a 5% simple interest charge when the property is sold or transferred out of the buyer's name. Restrictions will apply which will assure the property remains affordable. This is accomplished by the "recapturing" of the HOME investment. Tenant based rental assistance: To help low-income households avoid eviction and homelessness, TBRA provides up to two years of housing subsidy and case management services to stabilize households and put them on the road to self-sufficiency. 2. NEW CONSTRUCTION of units for homeownership as well as rental occupancy targeted for low-income individuals and families which are developed, sponsored, or owned by community housing development organizations (CHDOs), non-profit agencies, and for- profit developers. 3. ACQUISITION of undeveloped, or developed, land resulting in the development or purchase of units for homeownership as well as rental occupancy. All regulations regarding income guidelines, purchase price limitations, resale limitations, rental rates, etc., will apply to acquisition projects. 13 ELIGIBLE PROPERTY TYPES: Eligible property types for purchase include both existing property or newly constructed homes. Eligible property includes a single-family property, a condominium unit, a manufactured home (including mobile homes on a permanent foundation), or a cooperative unit. For purposes of the HOME program, homeownership means: (1) ownership in fee simple title, or (2) a 99 year leasehold interest, or (3) ownership or membership in a cooperative, or (4) an equivalent form of ownership which has been approved by the Department of Housing and Urban Development. The value and purchase price of the HOME assisted property to be acquired must not exceed 95% of the area median purchase price for that type of housing as established by HUD. RECAPTURE RESTRICTIONS WILL APPLY. (The value must be verified by a qualified appraiser or current tax assessment.) Initial purchase price limit established by HUD is currently $212,015. HOME PROGRAM PRIORITIES The 2005-2009 Consolidated Plan identifies the following priorities for housing related needs: 1. Stimulate housing production for very low, low and moderate income households. 2. Increase home ownership opportunities for very low, low and moderate income households. 3. Increase the supply of public housing for families and those with special needs. Implementation and funding of activities to address these priorities will come, in part, from the City of Fort Collins HOME Investment Partnership Program. 14 ATTACHMENT 5 A�t. +�R Commission members present: Bob Browning, Chair Eric Berglund, Vice-Chair David Carr Catherine Costlow Michael Kulisheck Jeff Taylor Kay Rios Jennifer Wagner Staff: Ken Waido Heidi Phelps Julie Smith Megan Woodman Sharon Thomas 15 MEETING HIGHLIGHTS Mr. Browning called the meeting to order at 5:57 p.m. and noted that since the Commission had no follow-up questions or comments on the funding proposals, and since essentially each proposal was a"phase two" of a project that had received previous funding from the City,that he would entertain a single motion to approve the all of the applications (HO-1, HO-2, HO-3, HO-4, HO-5, and HO-6) at their full funding amount. Moved by David Carr, seconded by Catherine Costlow, to recommend to the City Council the full requested funding for all applications. Motion carried unanimously. Moved by Jeff Taylor, seconded by Jennifer Wagner,to forward staffs draft supporting justifications for full funding of all requests to the Council as the Commission's reasons for full funding. Motion carried unanimously. The meeting adjourned at 6:02 p.m. 16 HOUSING HO-1 CARE HOUSING—PROVINCETOWNE ON-SITE INFRASTRUCTURE Amount of Request: $250,000 due on sale loan/5%simple interest loan This applicant has demonstrated an enviable track record, good stewardship of public funds, and an impressive ability to leverage further funding. This project would provide housing for an area which presently has a notable lack of affordable housing. Funding recommendation: $250,000 HO-2 CITY OF FORT COLLINS—HOME BUYER ASSISTANCE (FORMER RENTAL PROPERTIES) Amount of Request: $50,000 —Affordable Housing Funds -due on sale loan/5%simple interest loan Valuable program that helps to promote Homeownership in a stable responsible manner. Program is well managed and has flexibility to adapt to both our local and national housing conditions. With many anticipated changes in financing options this maybe one of the few remaining programs available to new homeowners that have difficulty savings significant dollars to purchase a home. Qualifying guidelines and education requirements help to promote success for those using the program. Funding recommendation: $50,000 HO-3 CITY OF FORT COLLINS—HOME BUYER ASSISTANCE Amount of Request: $200,000 —due on sale loan/5%simple interest loan Valuable program that helps to promote Homeownership in a stable responsible manner Given the current state of the economy and lack of availability in conventional financing, this program represents an absolute need. The starter home market will also see more home buyers, given the current economy and climate in the mortgage industry. It is likely that the demand will exceed this level of funding. Qualifying guidelines and education requirements help to promote success for those using the program. Funding recommendation: $200,000 HO-4 FORT COLLINS HOUSING CORPORATION (FCHC)—LEISURE DRIVE REHABILITATION Amount of Request: $116,820- due on sale loan/5%simple interest loan Rehabilitation of 10 out of a total of 26 units of affordable rental housing owned by the Fort Collins Housing Corporation. Funding was allocated for rehabilitation of the other 16 units during the spring cycle of the competitive process. Rehabilitation of the rentals will preserve the affordable housing stock and allow the FCHC to continue serving their community and help 17 preserve this permanently affordable housing for the lowest income families. Funding recommendation: $116,820 HO-5 LARIMER HOME IMPROVEMENT PROGRAM (LHIP) Amount of Request: $100,000- Grant Safety needs are being addressed very effectively. A contribution from the City is needed to continue Federal funding through the State Division of Housing. Great leverage of state funds to help with low cost improvements that help with health and safety issues, overcrowding and energy efficiency. The program is worthy, and is self-generating as recipients pay back the loans. The emergency funds typically assist the lowest AMI with replacement of items like furnaces or hot water heaters that are critical to health and safety but may be beyond their ability to pay for or finance on terms. The funding specifically addresses mobile homes, a spectrum of low-income housing. Funding recommendation: $100,000 HO-6 NEIGHBOR-TO-NEIGHBOR: FLOOR REPLACEMENTS Amount of Request: $33,600—Affordable Housing Funds-due on sale loan/5%simple interest loan The applicant provides decent, affordable housing. The renovations on the property are an indication of the good efforts to keep the property at that level and set that standard. The applicant helps to maintain affordable housing inventory and has made great strides in putting its finances in order. The program has a good track record that encourages continued support. This program serves the housing needs of low-income residents of the City. Affordable Housing Funds must be used because previous HOME utilization. Funding recommendation: $33,600 18 ATTACHMENT 6 City of Fort Collins Community Development Block Grant(CDBG) Commission Formulation of Funding Recommendations Session The CDBG Commission has prepared this hand-out to help you to understand how the Commission's meeting for the purpose of formulating funding recommendations to the City Council is conducted. It is the Commission's wish that our methodology be understandable to even the most casual observers. As you might imagine, the entire process is complex and time- consuming, especially given that grant requests greatly exceed the amount of available funding. City Staff will prepare an electronic matrix showing each application, the funding requested, and the total funds available. The Commission will discuss the pros and cons of every application. The order which applications are discussed is not important and there is no danger of `running out' of funds before all applications are fully discussed. There will be preliminary funding motions made, seconded, and approved throughout the process and these recommendations will be added into the matrix. It must be emphasized that the matrix is a working document, and any figures used, whether they be for full, partial, or zero funding, are for discussion purposes only. It is also possible that the total funds listed in the matrix might exceed the total of funds available at any point in the process. After each application has been discussed, the Commission will start to adjust the matrix to start producing its recommendation for funding to Council. Funding contained on the matrix may be drastically changed in either a positive or negative manner during this part of the process. When the Commission agrees on the matrix as indicated by a motion to accept it, a second to the motion, and a positive majority vote, the process is over and the recommendation will be forwarded to the Council. While the Commission's main purpose is to provide Council with the best funding alternative, the Commission is also sensitive that the funds being recommended for expenditure are taxpayer- provided. For this reason, it is entirely possible that not all funds will be recommended for expenditure, even if there are some applicants recommended for zero, or reduced, funding. The last point to be made is while this meeting is open to the public, to be fair to applicants who are not present at the meeting, no public comments will be taken. 19 RESOLUTION 2008-118 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING THE PROGRAMS AND PROJECTS THAT WILL RECEIVE FUNDS FROM THE FEDERAL HOME INVESTMENT PARTNERSHIP (HOME) PROGRAM GRANT AND THE CITY'S AFFORDABLE HOUSING FUND. WHEREAS, the Home Investment Partnership (HOME) Program is an ongoing grant administration program funded by the Department of Housing and Urban Development(HUD);and WHEREAS, the City has received HOME funds since 1993; and WHEREAS,the City Council has budgeted General Fund dollars into an Affordable Housing Fund for use in assisting affordable housing programs/projects; and WHEREAS,on January 18,2000,the City Council approved Resolution 2000-013,formally adopting a competitive process for the allocation of City financial resources to affordable housing programs/projects and community development activities; and WHEREAS,on January 10,2008,the CDBG Commission has held a public hearing to obtain citizen input on community development and affordable housing needs,and has heard presentations and asked clarification questions from each applicantihat submitted a proposal to the City requesting funding; and WHEREAS, on October 9, 2008, the CDBG Commission met in a special meeting for the purpose of preparing a recommendation to the City Council as to which programs and projects should be funded with the carry-over HOME funds, funds from the FY 2008 HOME Grant, funds from the HOME Community Housing Development Organization (CHDO) Set Aside, HOME Program Income, and funds from the City's Affordable Housing Fund. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the administration is authorized to submit an application to HUD as follows: AFFORDABLE HOUSING FY 08 HOME Grant $250 000 Care Housing,—Provincetowne On-Site Infrastructure $125,000 City of Fort Collins—Home Buyer Assistance Program $24 056 Fort Collins Housing Corporation FCHC —Leisure Drive Rehabilitation FY 08 HOME CHDO Funds $92 764 LFort Collins Housing Corporation FCHC —Leisure Drive Rehabilitation FY 08 HOME Program Income $75 000 1 City of Fort Collins--Home Buyer Assistance Program FY 07 Affordable Housing Fund Unprogrammed $33 660 Ci of Fort Collins—Home Buyer Assistance Former Rental Properties FY 08 Affordable Housing Fund $16,340 City of Fort Collins—Home Buyer Assistance Program (Former Rental Properties) $100,000 Larimer Home Improvement Program (LHIP) $33 600 Neighbor-to-Neighbor: Floor Replacements Passed and adopted at a regular meeting of the Council of the City of Fort Collins held this 2nd day of December A.D. 2008. Mayor ATTEST: City Clerk