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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/21/2002 - ITEMS RELATING TO THE COMPLETION OF THE SPRING CYC AGENDA ITEM SUMMARY ITEM NUMBER: 14 A-B FORT COLLINS CITY COUNCIL DATE: May 21, 2002 FROM: Ken Waido SUBJECT : Items Relating to the Completion of the Spring Cycle of the Competitive Process for Allocating City Financial Resources to Affordable Housing Projects/Programs and Community Development Activities: the City's Fiscal Year 2002-2003 Community Development Block Grant(CDBG) and Home Investment Partnerships (HOME) Programs. i RECOMMENDATION: Staff recommends adoption of the Ordinances on Second Reading. EXECUTIVE SUMMARY: A. Second Reading of Ordinance No. 074, 2002, Appropriating Unanticipated Revenue and Authorizing the Transfer of Appropriations Between Program Years in the Community Development Block Grant Fund. B. Second Reading of Ordinance No. 075, 2002,Appropriating Unanticipated Revenue in the HOME Investment Partnerships Fund. These Ordinances,which were unanimously adopted on First Reading on May 7,2002,appropriate new grant revenues and program income and transfer the remaining prior year program balance for the CDBG Program and appropriate new grant revenues and program income for the Home Investment Partnerships program. I I i AGENDA ITEM SUMMARY ITEM NUMBER: 31 A-D FORT COLLINS CITY COUNCIL DATE: May 7, 2002 FROM: Ken Waido SUBJECT : Items Relating to the Completion of the Spring Cycle of the Competitive Process for Allocating City Financial Resources to Affordable Housing Projects/Programs and Community Development Activities: the City's Fiscal Year 2002-2003 Community Development Block Grant(CDBG) and Home Investment Partnerships (HOME) Programs. RECOMMENDATION: to IOL IF Staff recommends adoption oCreen l 'ons the Ordin ces on First Reading. The CDBG Commission presents a list o s hich ams and projects should receive funding. EXECUTIVE SUMMARY: A. Public Hearing and Resolution 2002-048 Approving the FY 2002-2003 Community Development Block Grant Program for the City of Fort Collins. B. Public Hearing and R lutio o A ro g 2002-2003 Home Investment Partnerships Program r the Ci Fo C s. C. First Reading of Ordinance No. 074, 2002, Appropriating Unanticipated Revenue and Authorizing the Transfer of Appropriations Between Program Years in the Community Development Block Grant Fund. D. First Reading of Ordinance No. 075, 2002, Appropriating Unanticipated Revenue in the HOME Investment Partnerships Fund. The Community Development Block Grant CDBG Program and the Home Investment Partnerships (HOME)Program provide Fe fu in e f using and Urban Development (HUD) to the City of Fort Col s whic an be 1 to h mg and community development related programs and projects, ere b uci mand o e City's General Fund Budget to address such needs.The City Counci is being aske to consider a adoption of two resolutions and two ordinances related to funding under the CDBG and HOME Programs. The first Resolution (Resolution 2002-048) establishes which programs and projects will receive funding with CDBG funds for the FY 2002-2003 Program year, which starts on October 1, 2002. The CDBG Commission presents a list of recommendations as to which programs and projects should receive funding. The second Resolution (Resolution 2002-049) establishes only the major funding categories within the HOME Program for the FY 2002-2003 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. DATE: May 7, 2002 2 ITEM NUMBER: 31 A-D The ordinances appropriate new grant revenues and program income and transfer the remaining prior year program balance for the CDBG Program and appropriate new grant revenues and program income for the Home Investment Partnerships program. BACKGROUND: The City Council is being asked to consider the adoption of two resolutions related to funding under the CDBG and HOME Programs. The first resolution (Resolution 2002-048) establishes which programs and projects will receive funding with CDBG funds for the FY 2002-2003 Program Year, which starts on October 1,2002. The CDBG Commission presents a list of recommendations as to which programs and projects sh 0of d lotion(Resolution 2002-049) establishes only the major fu ing ca t H Program for the FY 2002-2003 Program year. Specific proje for th nds 1 be determined in November as a result of the fall funding cycle ess for allocation of the City's financial resources to affordable housing programs/projects and community development activities. Resolution 2002-048 establishing which programs and projects will receive CDBG funds represents the culmination of the spring cycle of the 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 A. Since early January of this yea e C Co s n d ers of the City staff s Affordable Housing Team have conducte ublic he ngs t mm ty development and housing needs in Fort Collins, conducted to 'ca an it ing wor ops 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 and questions,to the CDBG Commission. See Attachment B 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 esta e e to priorities between proposals received by the City. The ran ng crite are i fi ajor categories. Each category is given a total number of point at h en w g accordi to its importance with respect to local and federal priorities. The majo ego are: I. Impact/Benefit 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 DATE: may 7, 20M ITEM NUMBER: 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: • 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; • funds allocated to hous' l 1 v' a lows: 70% for rental projects and 30% for homeow ship rtuni s; nd • the average subsidy s uld be 000 r it, with atively more funding to projects producing housing for 1 co '1' 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 1976-1977 the City received HUD CDBG discretionary grants. Since FY 1977-1978,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 populatiredin riti a p to p ation, income levels, housing stock conditions, etc. Additio nd i o ati o ity's Community Development Block Grant Program is prese chine AVAILABLE FUNDS The amount of the City's CDBG Entitlement Grant for FY 2002-2003 is $1,209,000. The Entitlement Grant will be combined with $87,712 of CDBG Program Income and $767,262 of Reprogrammed funds to create a total of$2,063,974 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 and homebuyer downpayment assistance loans. CDBG Reprogrammed funds include funds not expended in previously approved projects. The relatively large n o Mai a this year comes from CDBG funds previously allocated to jects fo a pa Ci velopment Impact Fees. HUD has ruled that CDBG fund c of be s top City's fe . The following summarizes the amount and sources of available funds: CDBG Program AMOUNT SOURCE $1,209,000 FY 2002 CDBG Entitlement Grant 87,712 CDBG Program Income 767,262 CDBG Reprogrammed Funds $2,063,974 CDBG Total DATE: iviay 7, MU2 1 4 ITEM NUMBER: 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 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 40,000 1,271,000 1996 1,202,000 0 40,000 1,242,000 1997 1,188,000 7 1,419,273 1998 1,162,000 IF 216, PQO� 1,428,875 1999 1,169,000 000 1,219,000 2000 1,175,000 % 5 .5 1,302,902 2001 1,227,000 403,151 89,651 1,719,802 SELECTION PROCESS The selection process for the City's FY 2002-2003 CDBG Program began on January 10,2002,when the CDBG Commission held apublic hearing to obtain citizen input on community development and affordable housing needs. The CDBG Program office placed legal advertisements in local and regional newspapers starting iende to . it r s f D funded programs and projects for FY 2002-2003.The applic ew h sd F 21. At the close of the deadline the City received 32 applicati ng a t proxi tely $3.6 million. Copies of all applications were forwarded through the City Manager's office to the City Council on March 7 and placed in the Council Office for review. Also on March 7, 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 21, 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 3, and Thursday, April 4, the Commission met to hear presentations and ask clarification questions from a pp o o en et on Thursday April 11 for the purpose of preparing a reco endatio to th i nci to which programs and projects should be funded for the FY 2-2 3 o y Al this eeting the Commission reviewed the written applications, the app Vs ve pr tation, nformation provided during the question and answer session,and reviewed the performance of agencies who received FY 2001-2002 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 Program Income. This means the 20% limitation for Planning and Administrative purposes is $259,342. CDBG funds for Public Services are limited to 15% of the total of the Entitlement Grant and Program Income, making the amount $194,506. DATE: may 7, 2ZUU2 ITEM NUMBER: 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 ----------------------------------------------------------------- --------------- City of Fort Collins CD BG A ' r Proposal covers the administ ive cosUe P 2-20 CDBG Program Administration including salary, benefits and o gff ons. Request: $154,730 Recommendation: $154,730 Acquisition - Fort Collins Housing Corpora ' 47 RIO e — — The Fort Collins Housing Co ation( HC)p p purc a the Sleepy Willow Apartments, a 95-unit apartment complex 1 ed R a East Plu It consists of 70 two-bedroom,20 three-bedroom and 5 one-bedroom apartments.This acquisition will facilitate providing rent levels at 30% and 50% of Area Median Income (AMI) and keep the apartment complex in the affordable housing inventory for 30 years. The FCHC will have 85 units affordable at 50% AMI and 10 units at 30%AMI. FCHC will request a matching grant($650,000)from the Division of Housing.Private Financing($4,200,000) will be secured through First National Bank at a three year adjusted rate of 4.75, 20-year amortizing loan, and I0-year balloon. Request: $650,000(Grant) Recommendation: Opey Neighbor to Neighbor—Acq ition Neighbor to Neighbor requests funds to purchase an 8-plex located at 2404 Clearview Lane in Fort Collins.The project will have eight two-bedroom units,with half the units targeting families at 50% of AMI and the other four at 30%of AMI. Neighbor to Neighbor will request matching grant funds ($160,000) from the Division of Housing. Private financing will be secured through Community First National Bank at a rate of 7.28 percent, 15-year amortizing loan, fixed for 10 years. Request: $160,000 (Grant) Recommendation: $160,000 (Due on Sale Loan) DATE: May 6 ITEM NUMBER: 31 A-D CARE Housing—Acquisition of Land CARE plans to purchase a site that will accommodate 30-60 two- and three-bedroom units and a community center.The land and subsequent affordable housing development would benefit families earning between 30% and 50%of Area Median Income. CARE is actively searching for properties that will meet this development model. However, a definitive site for its sixth affordable development has not yet been identified. Request: $300,000 (Grant) Recommendation: $0 11 Lagunitas—Hilltop Farm The Lagunitas Company is re gUg the ac lion of land to build a 48-unit condominium development located at 5033 South College Avenue,which is two blocks south of the planned Mason Street Transportation Corridor and adjacent to the Fossil Creek Office Park. All of the units will be for purchase and will be affordable to households between 67% and 80% of AMI. Units in this development will be two,and three bedroom units configured 8 units per building,and all will include either an attached or detached garage. Request: $480,000 (Grant) Recommendation: $0 Habitat for Humanity—La CAcquiso P Y Habitat is requesting CDBG funds to acquire three new lots.The organization is actively searching for properties that will meet their needs.Habitat provides homeownership opportunities for families at or below 50% of AMI. Request: $150,000 (Grant) Recommendation: $150,000 (Due on Sale Loan) Turning Point-Acquisition of Apartments The organization proposes to uire an lex i o Yhn ests down payment assistance from the City. These units be a red, p ved ved as permanent affordable housing. The units will be rente ow 5 ithits targeted to rent below 30 0 of AMI. Request: $132,000 (Grant) Recommendation: $100,000(Due on Sale Loan) Homeownership Assistance City of Fort Collins - Home Buyer Assistance This program is administered by the Advance Planning Department and provides zero-percent interest loans to eligible first-time homebuyers. The assistance covers down payment and closing DATE: May , 2002 ITEM NUMBER: costs to a maximum of$8,000 for households at 51% to 80% of Area Median Income (AMI) and $16,000 for buyers at or below 50% of AMI. Approximately 37 households will be assisted in the next year with this program. Matching HOME funds will be requested in the fall cycle. Request: $250,000 (Loan) Recommendation: $299,138 (Due on Sale Loan) Fort Collins Housing Authority—Down Payment Assistance Set-Aside(Rigden Farm) The Fort Collins Housing Authority is requesting a down payment assistance set-aside for 50 households purchasing homes irs t i Farm. The request for down payment assistance is$4,183 unit. Hous g u it d eventually like down payment assistance for 87 qualified ho holds a will r uesting itional funds from future funding cycles. Assistance will targe eho o low 8 f AMI. This set aside will be administered by the City's existing Home Buyer Assistance Program. Request: $209,150(Grant) Recommendation: $0 ------------------------------------------------------- -------------------------- Rehabilitation Neighbor to Neighbor—RehC' 10bi Pate yex 'ng nitsNeighbor to Neighbor is requaffordable housing inventory. Neighbor to Neighbor has a total of 103 housing units.Many of these units will have some deferred maintenance issues over the next 10 years. They have identified up to $808,464 of capital improvements that need to take place in their inventory in Fort Collins. All of these units serve households below 50% of AMI, with many being special populations like the disabled,seniors and other needed housing assistance. Request: $300,000 (Grant) Recommendation: $300,000 (Grant) Crossroads Safehouse -Reh ilitatio Crossroads Safehouse seeks to r atQite.terility in r to provide a cleaner, safer and more attractive environment for victim of domestic violence and their children. The rehabilitation will focus primarily on the kitchen and bathroom areas.The project serves 600 persons below 30% of AMI and 200 persons below 50% of AMI. Request: $93,367 (Grant) Recommendation: $20,000 (Grant) DATE: May ITEM NUMBER: Public Facilities Neighbor to Neighbor—Acquisition of Public Facility Neighbor to Neighbor is requesting funds to purchase a facility to house their existing affordable housing services and programs. The new facility will allow for expanding the housing counseling programs,to forge non-profit organization partnerships,and allow the public and agencies meeting and conference space. Request: $ Recommendation: Beaucaire—Acquisition for e o P Y Beaucaire is interested in purchasing a youth services halfway housing in Fort Collins,that now is being leased by Beaucaire,targeting youth from 16 to 21 years old in the Larimer County area.Funds are being requested to acquire 302 Cherry Street for transitional housing to serve 6 male adolescents at a time needing extra assistance to achieve independent living status in their home community. Request: $178,000 (Grant) Recommendation: $ (Dur.Dn Public Services Lutheran Family Services -Fostering Family Strengths Program Lutheran Family Services is seeking support for its Fostering Family Strengths Program,which aims to prevent child abuse and neglect. They propose to serve 168 Fort Collins residents. The funding will be used to partially support the salary of the program supervisor. Request: $10,000(Grant) Recommendation: Alpha Center for Women -j CAC WiEdu "on Program This program is new to CDBG. Alpha Center works with the Poudre School District to present abstinence education and information on sexually transmitted diseases. Their purpose is to prevent teen pregnancy and reduce the number of STDs among teenagers. Request: $15,100 (Grant)—Proposal withdrawn by Applicant Recommendation: $X Neighbor to Neighbor—Comprehensive Housing Counseling Neighbor to Neighbor provides housing counseling and case-management to over 3,000 lower- income families during the year. Housing counseling is required of all prospective home buyers DATE: May 7, 2002 9 ITEM NUMBER: 31 A-D using area down payment assistance programs. In addition, they assist persons along the housing continuum from homelessness to homeownership. Request: $30,000 (Grant) Recommendation: $30,000 (Grant) First Call - 2-1-1 Information and Referral Project First Call ServiceNet requests salary support for their new 2-1-1 'service which will provide community information and referral service by dialing 2-1-1. CDBG would fund 70% of a staff position. Fort Collins will be e f Pi t ummer of 2002. Request: L5,090Uant) Recommendation: Child Care Collaborative—Day Care Services Child Care Collaborative is made up of United Day Care Center, Sunshine School,B.A.S.E. Camp and Respite Care which provide day care services to low-income households through a sliding fee scale. CDBG funds are used to support the sliding fee scale. The funds provide for a sliding scale subsidy of$446 per family(149 families)which is 49%of the funding provided for the sliding scale. Percentage of CDBG to total bu f a2emcies 00/ Request: L6519 ( rant)Recommendation: ( P y Elderhaus Adult Day Care Program-Multi-Cultural Group and Community Group Program Elderhaus received funding in the previous cycle for these programs. The multi-cultural group reaches out to Hispanic, Italian and Native American elders and their caregivers. The Community Group gives participants a sense of ownership in the community and the Life's Transitions group provides an opportunity to express problems. CDBG funds would be used to support 13% of staff salaries for these programs. Request: C,299 tRecommendation: Gr py Disabled Resource Services—Case Management and Community Assistance Disabled Resources has in the past applied for funding to support their Supported Youth Employment Program (SYEP). However, this year in response to growing needs, Disabled Resources has regrouped their programs and services and is now applying for CDBG funds to support their Case Management and Community Assistance Programs. CDBG funds would provide 15% of staff salaries for these programs. Request: $25,000 (Grant) Recommendation: $20,000 (Grant) DATE: May 7, 2002 10 ITEM NUMBER: 31 A-D The Women's Center of Larimer County—Health and Dental Care The Women's Center provides a Health and Dental Care Program, which targets low-income, uninsured individuals. The program provides a dental care program, a breast and cervical cancer prevention program for Latinas and an HIV prevention program targeted at Latinos. They work in cooperation with NCAP and the Health Department to coordinate the services. CDBG funds would provide funding for staff salaries,dental program direct costs,facilities rent and supportive services. Request: $10,000(Grant) Recommendation: $0 The Women's Center of La er C ty— itC R Lee and Referral The Women's Center provide hi a 4Eource atReferral Service which locates appropriate child care and educates parents on how to identify quality care. CDBG funding is used to support staff salaries, facilities and support services. Request: $13,000(Grant) Recommendation: $0 The Women's Center of Larimer - Career Quest The Women's Center provides diviOnGpn�i�g ah s ices for displaced homemakers, single mothers and other wo expert of the clients of the program need other services besides career ns is sed to support staff salaries and supportive services. Request: $5,000(Grant) Recommendation: $0 Project Self-Sufficiency This program provides one-on-one career planning and support to low-income single parents so they can become financially indepe n . ds cries. Request: 5,000 ( ant) Recommendation: $ (Gr Ensight Skills Center Ensight is a new service for individuals with low and declining vision. They offer skills training and provide access to aids and devices through a loaner program. They also provide counseling and rehabilitation services,life skills training and referral services. CDBG funding would support staff salaries. Request: $6,760(Grant) Recommendation: $6,760 (Grant) May ITEM NUMBER: DATE: - Crossroads Safehouse—Crossroads' Specialized Advocacy and Training Project 10 This program provides shelter and services for women who are victims of domestic violence. CDBG funds would support salary and operations for the shelter. Request: $18,225 (Grant) Recommendation: $0 Court Community and Resident Initiatives Program Springfield Court was develo u ' e d provides affordable rental housing for low-income fam' es. om n' R nt Initiatives Program provides activities for residents to imp their a omi i tion in th eas of Independent Living,Youth Leadership and Personal Heal S es ibility. BG funds would support staff salaries. Request: $15,000 (Grant) Recommendation: $0 Educo—Fort Collins Team Leadership Program The organization provides outdo en dpefits. ' e hip for low-income youth. In the Outdoor Adventure Progr and mur rs demess education is combined with experiential learning to p ote lea rshipgro and sense of community. CDBG funds would be used to suppo 1 ' s Request: $13,214 (Grant) Recommendation: $0 Catholic Charities Northern - Senior Services Catholic Charities Northern assists frail and at-risk elderly to maintain independence through their Case Management Services. CDBG funding would be used to support staff salaries. Request: 5,000 rant) Recommendation: 9,928 ( ant) Catholic Charities Northern—Shelter and Supportive Services for Homeless Catholic Charities Northern supports the homeless population of Fort Collins by providing shelter, food,job bank, case management and transitional housing for homeless families. Request: $30,000(Grant) Recommendation: $25,000(Grant) CRISP(Creative Recreation in Special Populations) CRISP provides recreational services for the disabled, elderly and economically disadvantaged by providing free and discounted tickets to activities such as concerts, plays, sporting events, magic DATE: ay ITEM NUMBER: 31 A-D shows, circus events, ice shows, etc. CDBG funds would be used for salaries and operations in support of the service. Request: $7,000(Grant) Recommendation: $0 Adult Literacy Services—Education and Life Training Program This organization help low-income,disadvantaged and the culturally diverse population of Latimer County achieve increased educational and economic skills by increasing literacy. CDBG funds would be used in support of st es e Request: , ,, py 300 ( t) Recommendation: Total amount of CDBG funding requested=$3,598,924 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—.--CA O $ 154,730 7.5 PI M TRATION(Maximum$259,342 o f Entitle nt Grant and Program Income) 1,659,138 80.4 HOUSING 55,600 2.7 PUBLIC FACILITIES 194,506 9.4 PUBLIC SERVICES (Maximum $194,506 based on 15% of Entitlement Grant and Program Income) ------------------------------------------------------------------------------------------------------------------ $2,063,974 100.0 TOTAL The total amount of CDBG funding requests considered by the CDBG Commission was approximately $3.6 million, h eve o i B funds are available. With the amount of total requests fare eedingla ob sly not all applications could be funded.Due to HUD funding 1 'tatio s1 Service a lications received no funds or less funds than requested in order to the ory wi program maximums. The CDBG Commission has recommended full funding for nine(9)proposals and one(1)proposal (the Homebuyer Downpayment Assistance Program)for more funding than what was requested. In the Commission's opinion,these applications recommended for full funding best fit CDBG Program national objectives,the selection criteria, and the funding guidelines. DATE: May 7, 2002 13 ITEM NUMBER: 31 A-D Proposals, which did not receive full funding,were deemed of a lower priority and, in some cases, 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 thirteen (13) proposals. The Commission's reasons for either full funding, partial funding, or no funding are presented in Attachment D.