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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 07/21/2009 - ITEMS RELATING TO THE COMPLETION OF THE 2009 SPRIN ITEM NUMBER: 8 A-B AGENDA ITEM SUMMARY DATE: July 21, 2009 FORT COLLINS CITY COUNCIL STAFF: Ken Waido Heidi Phelps SUBJECT Items Relating to the Completion of the 2009 Spring Cycle of the Competitive Process for Allocating City Financial Resources to Affordable Housing and Community Development Activities Utilizing the Federal Community Development Block Grant (CDBG) Program, and Home Investment Partnership (HOME) Program, and the City's Human Services Program and Affordable Housing Fund. RECOMMENDATION Staff recommends adoption of these Ordinances on Second Reading. EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 074, 2009, Appropriating Unanticipated Revenue in the Community Development Block Grant Fund. B. Second Reading of Ordinance No. 075, 2009,Appropriating Unanticipated Revenue in the HOME Investment Partnership Fund. These Ordinances,unanimously adopted on First Reading on July 7,2009,complete the 2009 spring cycle of the competitive process for allocating City financial resources to affordable housing programs/projects and community development activities. ATTACHMENTS l. Copy of First Reading Agenda Item Summary- July 7, 2009. (w/o original attachments) ATTACHMENT 1 ITEM NUMBER: 18 A-D AGENDA ITEM SUMMARY DATE: July 7, Zoos FORT COLLINS CITY COUNCIL STAFF: Ken Waido Heidi Phelps SUBJECT Items Relating to the Completion,ofihe 2009-Spnng o cycy lb ofihe Competitive Process for Allocating City Financial Resources to Affordable Housing and C 11 ommunity Development Activities Utilizing the Federal Community Development� `B�1�oc Gr (CDBG) Program, and Home Investment Partnership (HOME) Program, and the Crty's Human Services program and Affordable Housing Fund. RECOMMENDATION Staff recommends.adoption of the Resolutions andthe Ordinances on First Reading.' The CDBG Commission presentst or f recomm d do�as�to which programs and projects should receive funding. FINANCIAL IMPACT The Community Development Block Grant(CDBG)Program and the Home Investment Partnership (HOME)Program provide Federal funds from the Department of Housing and Urban Development (HUD)to the City of Fort Collins which can be allocated to housing and community development 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 Human Services Program and Affordable Housing Fund iri Decemb�007. EXECUTIVE SUMMARY A. Hearing and Resolution 2009-060 Approving the Programs and Projects That Will Receive Funds from the Federal Community Development Block Grant (CDBG) and Home Investment Partnership (HOME) Programs, and the City's Human Services Program and Affordable Housing Fund. / -�� 7 B. Hearing a ionnd Resolut 2009-061 Approving)�the 'Fiscal Year 2009 Home Investment Partnerships Program forr the City of Foh) 0 lins. July 7, 2009 -2- Item No. 18 A-D C. Hearing and First Reading of Ordinance No. 074, 2009, Appropriating Unanticipated Revenue in the Community Development Block Grant Fund. D. Hearing and First Reading of Ordinance No. 075, 2009, Appropriating Unanticipated Revenue in the HOME Investment Partnership Fund. The Resolutions and Ordinances will complete the 2009 spring cycle of the competitive process for allocating City financial resources to affordable housing programs/projects and community development activities. BACKGROUND COP VA On June 2, 2009, the City Council adopted Resolution 2009-060 which allocated $271,137 of Community Development Block Grant Recovery (CDBG-R) Program funding authorized by the American Recovery and Reinvestment Act of 2009 to several programs and projects that applied for funding as part of the City's spring cycle of the competitive process. This item asks the Council to make additional allocations of funding to applicants completing the spring cycle of the competitive process. Resolution 2009-060 establishes' ' which.programs anprojectsywill receive funding with CDBG funds for the FY 2009 Program year (EntitlenientJGrant an�Program Income), which starts on October 1, 2009, and which programs will--r c6ie'-funds from a previous HOME fiscal year (Unprogrammed funds)and from the City's Human Services Program and Affordable Housing Fund. The CDBG Commission presents a list of recommendations as to which programs and projects should receive funding. The following table summarizes the total amount and sources of all available CDBG and City funds for distribution during the spring cycle of the competitive process: 1 AMOUNT SOURCE $1,017,507 FY 2009 CDBG Entitlement Grant 52,653 FY 2009,C-DBG Program.Income,\ -�T -7- 271,137 CDBGRecovery,(CDBG=R)IPro' 'ram*\// 98,429 FY 200$HOME Un rogrammed J 98,993 2008 City'Affordablb=Housirig-Fund Un"'rogrammed 440,334 2009 City Human Services Program $1 979 053 Total Funding Available * CDBG-R funds were allocated by the Council on June 2, 2009, Resolution 2009-060. Unprogrammed funds are funds that have yet to be allocated to specific projects. Program Income includes anticipated repayments from rehab loans and home buyer assistance loans along with repayments from development loans. Inc�� &� �1 The FY 2009 CDBG Entitlement Grant and Programome totals $1,070,160. HUD regulations limit a maximum of 20% of the\e funds oar$21)4I,032, for Pl ing and Administrative purposes. Staff did not request any CDBG-R funds=for administrative-purposes. The following table July 7, 2009 -3- Item No. 18 A-D summarizes the amount and sources of available funds for Planning projects and CDBG Program administrative purposes: AMOUNT SOURCE $203,501 20% of the FY 2009 CDBG Entitlement Grant 10,531 20% of FY 2009 CDBG Program Income $214 032 Total Fundin Available for Planning and CDBG Program Administration HUD regulations limit a maximum 15% of the FY 2009 CDBG funds and Program.Income, or " i�a The' � � $160,524, for use in the Public/Services category.�CDBG-R�Program provides an additional $40,671 and the City's Human Services�P+rogram�adds=$440,3�34�for use in the category, for a total of$641,529 of available fundirig,TThe •following table summarizes the amount and sources of available funds for public/human service proposals: AMOUNT SOURCE $152,626 15% of the FY 2009 CDBG Entitlement Grant 7,898 15% of FY 2009 CDBG Program Income 40,671 15% of the CDBG-R Program* 440,334 2009 City Human Services Program $641 529 1 Total Funding Available for Public/Human Service Proposals CDBG-R funds were allocatedhby��the Councilion Junle 2,r2009, Resolution 2009-060. The following table summarizes(the amoiint and�sol•ces of available funds for affordable housing proposals: AMOUNT SOURCE $661,380 FY 2009 CDBG Entitlement Grant 34,225 FY 2009 CDBG Program Income** 230,466 CDBG-R Program* 98,429 FY 2008 HOME Unprogrammed*** 90,493 2008 City Affordable Housing Fund Unprogrammed $1 114 993 1 Total Fundin �Availablefor IA`kffordable Housing Proposals * CDBG-R funds were al\located by the Council.on June�'2�2009, Resolution 2009-060. There is a total of$52,653 of FY 2009 Program Income available. ,The CDBG Program administration request is for $207,531 (see AD-1 below) which can be covered utilizing $203,501 from the FY 2009 Entitlement Grant and only$4,030 of FY 2009 Program Income. An additional $6,500 of FY 2009 Program Income is needed to cover a portion of the cost of the Consolidated Plan(see AD-2 below)and$7,898 is earmarked for the Public Services category. Thus, the amount of Program Income that will not be used for administration, planning,and public services is atotal of$34,225 and is available for allocation to affordable housing projects. *** Likewise,there is a tota'10�993�ropiardfiffn:3�22008 City Affordable Housing Funds 1� ��' �! 1' kl available. The development o the ConsolidaIte Plan(see AD-2 below) needs an additional $8,500 to be combined with the $6,500 of�FY 2009 CDBG Program Income to cover the $15,000 total cost leaving $90,493 available for allocation to affordable housing projects. July 7, 2009 -4- Item No. 18 A-D The City received 33 applications for funding as part of the 2009 spring cycle of the competitive process requesting a total of approximately$2.7 million. The total amount of funds available from all sources is about$2.0 million. Therefore,the total of application requests is about$700,000 more than the amount of available funds. The following table summarizes the amount of funding requests compared to the amount of funding available for each of the major funding categories. Number of Requested Available Request- Category Applications Funding Funding* Available Difference Affordable Housing // 51 / \\ $;11,575,635_ , /,$1,114,993 -$460,642 Public Services } 1 26 11 1.1 1 $872,511\ 7 $641,529 -$230,982 Administration 1/ \\ // }$207,531 J $207,531 $0 Consolidated Plan 1 $15,000 $15,000 1 $0 Totals 33 $2 670 667 $1 979 053 1 -$693 614 * The Available Funding amounts include $217,137 of CDBG-R funds allocated by the ' Council on June 2, 2009, Resolution 2009-060. The CDBG Commission presents recommendations as to which programs and projects should receive funding from the available funding sources presented above. The following tables present the allocations recommended by the Commission to the City Council within each major category: AdministItion Applicant Funding Commission's Unfunded Project/Program Request Recommendation Balance AD-1 CITY OF FORT $207,531 $203,501 $0 COLLINS CDBG ' FY 2009 CDBG ADMINISTRATION Entitlement Grant $4,030 FY 2009 Program Income ((��J r Plammng Applicant \,,�Funding' C'mission's Unfunded Project/Program Request Recommendation Balance AD-2 CITY OF FORT $15,000 $6,500 FY 2009 $0 COLLINS Program Income CONSOLIDATED PLAN $8,500 2008 Affordable Housing Fund July 7, 2009 -5- Item No. 18 A-D Affordable Housing Applicant Funding Commission's Unfunded -Project/Program Request Recommendation Balance HO-1 CARE: $500,000 $300,000 $200,000 PROVINCETOWNE FY 2009 CDBG INFRASTRUCTURE Entitlement Grant HO-2 CITY LAND $140,000 $0 $140,000 BANK PHASE I _ APO-3 CORNERSTONE /-$300,0 i0 \ 1111 �\` l� _ $300,000 HO-4 FCHC VILLAGE $450,66� �L $86,880V $0 ON STANFORD FY 2009 CDBG REHABALITATION Entitlement Grant $34,225 FY 2009 Program Income $98,429 FY 2008 HOME Program CDBG-R Funds* $230,466 HO-5 NEIGHBOR TO L$I85,63,5 \ )�$185,63�5' $0 NEIGHBOR: FYP2009"%DBG COACHLIGHT PLAZA . Entitlement Grant APARTMENTS * Approved by the City Council on June 2, 2009, Resolution 2009-060. All funding recommendations in the Affordable Housing category are in the form of a"Due on Sale Loan + 5% Simple Interest." Public Service Applicant /% Fund n \�Commission's Unfunded -Project/Program ( Request Recommendation . Balance PS-1 B.A.S.E. CAMP: SLIDIN�� $60,83'1 L$60,831 $0 SCALE FEE TUITION & (CDBG grant) TRANSPORTATION ASSISTANCE PS-2 BOYS & GIRLS CLUB: $18,309 $18,309 $0 AFTER-SCHOOL AND SCHOOL- (HSP grant) BREAK CHILD CARE AND YOUTH ACTIVITIES PS-3 CATHOLIC CHARITIES $10,000 $10,000 $0 NORTHERN: SENIOR SERVICES (HSP grant) PS-4 CATHOLIC CHARITIES' r'$'55,02_4 ` �$37,856 $17,168 NORTHERN: SHELTER AND / (\ I (IGDBG grant) SUPPORTIVE SERVICES `� \ July 7, 2009 -6- Item No. 18 A-D Applicant Funding Commission's Unfunded -Project/Program Request Recommendation Balance PS-5-CENTER FOR FAMILY $15,000 $0 $15,000 OUTREACH: VOLUNTEER PROGRAM FOR THE PARENTING CENTER PS-6 CONSUMER CREDIT $13,000 $0 $13,000 COUNSELING SERVICES: FINANCIAL COUNSELING PS-7 CROSSROADS SAFEHOUSE'; % $99,216 \ �$51,542 $47,674 ADVOCACY PROGRAM ( ('HSP grant) PS-8 DISABLED RESOURCE \�$22,6'S� $22,656 $0 SERVICES: ACCESS TO (HSP grant) INDEPENDENCE PROGRAM PS-9 EDUCATION AND LIFE $22,000 $18,000 $4,000 TRAINING CENTER:: (CDBG grant) EMPLOYMENT SKILLS TRAINING PS-10 EDUCATION AND LIFE $8,000 $0 $8,000 TRAINING CENTER: EVENING CLASS CHILDCARE ASSIS,. E /r,�\ 7M-) V 7 PS-11 ELDERHAUS: THERAPY I $23,5`92� )Y($23,592 $0 CENTER ACTIVITY PROGRAM/ \\ J/ I ( (HSP grant) PS-12 FAMILY CENTER: SLIDING $20,000 $20,000 $0 SCALE FEE TUITION (HSP grant) PS-13 FOOD BANK FOR LARIMER $27,959 $27,959 $0 COUNTY: KIDS CAFE PROGRAM (HSP grant) PS-14 HOMELESSNESS $45,000 $0 $4,329 PREVENTION INITIATIVE: CDBG-R Funds* EMERGENCY RENT ASSISTANCE $40,671 PS-15 LIVE THE VICTORY $29,120 $0 $29,120 (MATHEWS HOUSE): PROGRAM _v FOR AT-RISK YOUTH (( r�)) TO)' PS-16 NEIGHBOR TO NEIG�OR� �68,82 [$39,915 $28,585 (N2N): COMPREHENSIVE (HSP grant) HOUSING COUNSELING PS-17 N2N: EMERGENCY RENT $23,000 $23,000 $0 ASSISTANCE (HSP grant) PS-18 NORTHERN COLORADO $29,500 $29,500 $0 AIDS PROJECT: CLIENT (HSP grant) SERVICES AND HOMELESSNESS PREVENTION PROGRAM PS-19 POUDRE SCHOOL $30,15 $0 $30,275 DISTRICT(IRISH ELEMENTARY): \ CLUB 305 SUSTAINABILIT\%,,_ PROGRAM July 7, 2009 -7- Item No. 18 A-D Applicant Funding Commission's Unfunded —Project/Program Request Recommendation Balance PS-20 PROJECT SELF- $33,000 $18,837 $0 SUFFICIENCY: SERVICES FOR (CDBG grant) SINGLE PARENT FAMILIES $14,163 (HSP grant) PS-21 REHABILITATION AND $38,000 $38,000 $0 VISITING NURSE ASSOCIATION: (HSP grant) HOME HEALTH CARE SCHOLARSHIP ASSISTANCEE PS-22 RESPITE CARE: SLIDING $25,6001-1 1V( $25,000 $0 SCALE FEE TUITION (CDBG grant) ASSISTANCE PS-23 TURNING POINT: $25,000 $0 $25,000 VOLUNTEER COORDINATOR PS-24 UNITED DAY CARE $60,000 $54,367 $5,633 CENTER: SLIDING SCALE FEE. (HSP grant) TUITION ASSISTANCE PS-25 VOLUNTEERS OF $29,108 $29,108 $0 AMERICA: HOME DELIVERED (HSP grant) MEAL PROGRAM Irl /� TM) \ 7 PS-26 WOMEN'S,RESOURCl� I $38,42.1_�_// $35,223 $3,198 CENTER: DENTAL CARE \ (HSP grant) ASSISTANCE PROGRAM: * Approved by the City Council on June 2, 2009, Resolution 2009-060. A summary of the Commission's funding recommendations by category is presented in the following table: Recommended Funding* % of Total Category $935,635 52.0% Affordable Housing 64Y, 29`j \\351.6%�,Public Services 2071,531 j111,.5%- CDBG Administration 1'5,000 i \\ // Q.$% Cons61idated Plan $1 799 695 1 100.0% 1 Totah * The recommended funding amounts include $217,137 of CDBG-R funds allocated by the Council on June 2, 2009. The CDBG Commission has recommended$1,799,695 (90.9%)of the available funding amount of $1,979,053 million be allocated. The Commission recommends that all of the available funds from FY 2008 HOME Program and the FY 2009 CDBG Program Income be used.An amount of$88,865 of the FY 2009 CDBG Entitlement Grant and $90,493 from the 2008 Affordable Housing Fund, a total of$179,358, will be carried o�and will'be available or allocation in the 2009 fall cycle of the competitive process. July 7, 2009 -8- Item No. 18 A-D • HOME Program Resolution 2009-061 establishes the major funding categories within the HOME Program for the FY 2009 Program year, which also starts on October 1, 2009. Specific projects for the use of HOME funds will be determined in November as a result of the 2009 fall funding cycle of the competitive process for the allocation of the City's financial resources to affordable housing programs/projects and community development activities. The FY 2009 HOME Grant totals $686,973. HUD regulations allow a maximum of 10% for Administrative purposes, or$68,697, and require a 15% set-aside for Community Housing Development Organizations (CHDO). The following table summarizes the distribution of HOME fu�ceding: )V/F Recommended %\'of Tota1'N CCaategoryy�J Funding $515,230 75.0% Affordable Housing Projects 103,046 15.0% Community Housing Development Projects 68,697 10.0% HOME Program Administration $686 973 100.0% 1 Total ATTACHMENTS 1. Background and Summary of the CDBG�C Im" mission'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 the Proposals 6. Focus Questions for CDBG Commission 7. Formulation of Funding Recommendations Session ORDINANCE NO. 074, 2009 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED REVENUE IN THE COMMUNITY DEVELOPMENT BLOCK GRANT FUND WHEREAS,the City will receive in federal fiscal year 2009-2010 unanticipated revenue in the form of federal Community Development Block Grant ("CDBG") funds totaling $1,017,507, constituting a new revenue source; and WHEREAS,the City will receive unanticipated CDBG Program income in the 2009-2010 federal fiscal year in the amount of$52,653; and WHEREAS, by adoption of Resolution 2009-060 the City Council approved the 2009 Community Development Block Grant Program; and WHEREAS, by adoption of Resolution 2009-061 the City Council authorized the City Manager to transmit for approval the 2009 Fort Collins Consolidated Annual Action Plan to HUD as required to receive the grant funds; and WHEREAS, Article V, Section 9, of the City Charter 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 all unanticipated CDBG grant and program revenue as described herein will not result in total appropriations in excess of the current estimate of actual and anticipated revenues for fiscal year 2009; and WHEREAS, Article V, Section 11, of the City Charter provides that federal grant appropriations shall not lapse if unexpended at the end of the budget year until the expiration of the federal grant. 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 revenue in the federal fiscal year 2009-2010 into the Community Development Block Grant Fund, the sum of ONE MILLION SEVENTEEN THOUSAND FIVE HUNDRED SEVEN DOLLARS ($1,017,507), upon receipt from federal fiscal year 2009-2010 Community Development Block Grant Funds. Section 2. That there is hereby appropriated for expenditure from unanticipated program income revenue, upon receipt into the Community Development Block Grant Fund, the sum of FIFTY TWO THOUSAND SIX HUNDRED FIFTY-THREE DOLLARS ($52,653), for approved Community Development Block Grant projects. Introduced,considered favorably on first reading,and ordered published this 7th day of July, A.D. 2009, and to be presented for final passage on the 21st d o July, A.D. 2009. Mayor ATTEST: De uty C&Plerk Passed and adopted on final reading on the 21 st day of July, A.D. 2009. Mayor ATTEST: City Clerk ORDINANCE NO. 075, 2009 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED REVENUE IN THE HOME INVESTMENT PARTNERSHIPS FUND WHEREAS, the HOME Investment Partnership Program (the "HOME Program") was authorized by the National Affordable Housing Act of 1990 to provide funds in the form of Participating Jurisdiction Grants for a variety of housing-related activities that would increase the supply of decent, safe, and affordable housing; and WHEREAS, on March 1, 1994, the City Council adopted Resolution 1994-092 authorizing the Mayor to submit to the Department of Housing and Urban Development("'HUD")a notification of intent to participate in the HOME Program; and WHEREAS, on May 26, 1994, HUD designated the City as a Participating Jurisdiction in the HOME Program, allowing the City to receive an allocation of HOME Program funds as long as Congress re-authorizes and continues to fund the program; and WHEREAS, the City has been notified by HUD that the City's HOME Participating Jurisdiction Grant for the federal fiscal year 2009-2010 is $686,973, which grant constitutes a new revenue source; and WHEREAS, Article V, Section 9, of the City Charter 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,do not exceed the then current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, City staff has determined that the appropriation of the HOME Program funds as described herein will not cause the total amount appropriated in the HOME Fund to exceed the current estimate of actual and anticipated revenues to be received in that fund during the 2009 fiscal year; and WHEREAS, Article V, Section 11, of the City Charter provides that federal grant appropriations shall not lapse if unexpended at the end of the budget year until the expiration of the federal grant. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS hat there is hereby appropriated for expenditure from unanticipated revenue in the federal fiscal year 2009-2010 into the HOME Program Fund the sum of SIX HUNDRED EIGHTY SIX THOUSAND NINE HUNDRED SEVENTY-THREE DOLLARS ($686,973), upon receipt from federal fiscal year 2009-2010 HOME Participating Jurisdiction Grant Funds. Introduced,considered favorably on first reading,and ordered published this 7th day of July, A.D. 2009, and to be presented for final passage on the 21st day ly, A.D. 2009, Mayor ATTEST: De uty ty lerk Passed and adopted on final reading on the 21 st day of July, A.D. 2009. Mayor ATTEST: City Clerk