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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/02/2009 - ITEMS RELATING TO THE COMMUNITY DEVELOPMENT BLOCK ITEM NUMBER: 20 A-B AGENDA ITEM SUMMARY DATE: June 2, 2009 FORT COLLINS CITY COUNCIL STAFF: Ken Waido SUBJECT Items Relating to the Community Development Block Grant Recovery (CDBG-R) Program Authorized by the American Recovery and Reinvestment Act of 2009. RECOMMENDATION Staff recommends adoption of the Resolution and the Ordinance on First Reading. The CDBG Commission presents a list of recommendations as to which programs and projects should receive CDBG-R funding. FINANCIAL IMPACT The Community Development Block Grant Recovery (CDBG-R) Program, authorized by the American Recovery and Reinvestment Act of 2009,provides Federal funds from the Department of Housing and Urban Development (HUD) to the City of Fort Collins which can be allocated to affordable housing and community development related programs and projects, thereby, reducing the demand on the City's General Fund Budget to address such needs. EXECUTIVE SUMMARY A. Resolution 2009-060 Approving the Programs and Projects that Will Receive Funds from the Community Development Block Grant Recovery (CDBG-R) Program. B. First Reading of Ordinance No. 067, 2009, Appropriating Unanticipated Revenue in the Community Development Block Grant Fund. The American Recovery and Reinvestment Act of 2009 is an economic stimulus package enacted by the United States Congress and signed into law by President Obama on February 17, 2009. The Act is intended to provide a stimulus to the U.S.economy in the wake of the economic downturn and includes federal tax relief,expansion of unemployment benefits and other social welfare provisions, and domestic spending in education,health care,and infrastructure,including the energy sector. The Act appropriated $1 billion in Community Development Block Grant (CDBG) funds to states and local governments to carry out, on an expedited basis,eligible activities under the CDBG Program. The new CDBG funds are in a program officially called the CDBG Recovery(CDBG-R) Program and are additional/supplemental funds for the City's FY 2008 CDBG Program, which started on October 1,2008. Resolution 2009-050 establishes which programs and projects will receive funding June 2, 2009 -2- Item No. 20 A-B through the additional allocation of $271,137 of FY 2008 CDBG funds through the CDBG-R Program from the U.S. Department of Housing and Urban Development (HUD). The City's amendment to its FY 2008 CDBG Program is due to HUD by Friday June 5, 2009. BACKGROUND HUD regulations require separate accounting and approvals for CDBG-R funding. The timing of the passage of the American Recovery and Reinvestment Act of 2009 was such that the City was already engaged in soliciting proposals for the spring cycle of the competitive process to make funding allocations to affordable housing and other community development projects from the City's FY 2009 CDBG Entitlement Grant. Rather than initiate a new, completely separate process for the CDBG-R funds,staff asked all the applicants that had submitted proposals for funding as part of the spring cycle if they also wanted their application to be considered for CDBG-R funding. Staff knew CDBG-R funding would require projects to be"shovel ready,"meaning they could start immediately and not need to wait until the start of the normal FY 2009 CDBG Program year on October 1,2009. Eight applicants indicated their proposals could meet the requirements to be considered for CDBG-R funding. Some brief points about CDBG-R Program are: • Requires an amendment to the City's FY 2008 CDBG Program describing the use of CDBG- R funds; the amendment is due to HUD by June 5, 2009. • CDBG-R funds have clear purposes - to stimulate the economy by modernizing infrastructure, improve energy efficiency, and expand educational opportunities and access to health care. • HUD"strongly"urges CDBG-R funds to be used for hard development costs associated with infrastructure activities that provide basic services to residents or activities that promote energy efficiency and conservation through rehabilitation or retrofitting of existing buildings. • The period to solicit citizen comments on the proposed use of CDBG-R funds is 7 days long (instead of the normal 30 days for regular CDBG funds). • Recipients of CDBG-R funds must execute their contracts with the City within 120 days. • CDBG-R funds must be tracked separately and require quarterly reports. • Only 15%of CDBG-R funds can be used for Public Services(same limitation as for normal CDBG funds). • Only 10%of CDBG-R funds can be used for Administration and Planning(a reduction from the 20% limitation for normal CDBG funds). • All CDBG-R funds must be spent by September 30, 2012. The following table summarizes the amount of available CDBG-R funds to the City and any HUD limitations on the use of CDBG-R funds. AMOUNT USE $271,137 Total CDBG-R Funds $ 27,114 10% Maximum for Planning and Administration $ 40,671 15% Maximum for Public Services June 2, 2009 -3- Item No. 20 A-B The CDBG Commission interviewed all applicants for CDBG-R funds as part of its normal spring cycle interview process for the FY 2009 CDBG Program. Each applicant also seeking CDBG-R funds was individually identified to the Commission during the interview process. The Commission met on May 14,2009,to prepare its funding recommendations to the City Council and presents a list of recommendations as to which programs and projects should receive CDBG-R funding. The table below presents the following information: a listing of applicants requesting CDBG-R funding,the amount of requested funding, the Commission's recommendations for the allocation of CDBG-R funds,and the Commission's recommendations for funding from other funds to be distributed during the spring cycle of the competitive process. Council is scheduled to make the final decision on funding allocations from the other funds for spring cycle of the competitive process at its July 7, 2009,regular meeting,including funding from: FY 2009 CDBG Entitlement Grant($1,017,568)and Program Income ($52,653), FY 2008 HOME Program ($98,429), 2008 City Affordable Housing Fund ($98,993), and 2009 City Human Services Program ($440,334). CDBG Commission's Recommendations for Funding Using CDBG-R Funds Authorized by the American Recovery and Reinvestment Act of 2009 Commission's Commission's Applicant Funding Recommendation Recommendation Unfunded Project/Program Request For CDBG-R For Other Balance Funds Funds* HOUSING HO-4 FCHC Village on $450,000 $230,466 $219,534 $0 Stanford Rehabilitation HO-5 Neighbor to $185,635 $0 $185,635 $0 Neighbor: Coachlight Plaza Apartments PUBLIC SERVICES PS-2 Boys & Girls $18,309 $0 $18,309 $0 Club: After-School and School Break Child Care and Youth Activities PS-5 Center for Family $15,000 $0 $0 $15,000 Outreach: Volunteer Program for the Parenting Center PS-6 Consumer Credit $13,000 $0 $0 $13,000 Counseling Services: Financial Counseling PS-7 Crossroads $90,000 $0 $51,542 $47,674 Safehouse: Advocacy Program June 2, 2009 -4- Item No. 20 A-B Commission's Commission's Applicant Funding Recommendation Recommendation Unfunded Project/Program Request For CDBG-R For Other Balance Funds Funds* PS-14 Homeless $45,000 $40,671 $0 $4,329 Prevention Initiative: Emergency Rent Assistance PS-15 Live the Victory: $29,120 $0 $0 $29,120 Matthews House * Council will consider the CDBG Commission's funding recommendations from this column at its July 7, 2009 regular meeting. The funding recommendation in the Affordable Housing category is in the form of a"Due on Sale Loan+5%Simple Interest." The funding recommendation in the Public Services category is a grant. The justifications for the Commission's recommendations are included in Attachment 5. A summary of the Commission's recommendations by category for the use of CDBG-R funding is presented in the following table: Recommended Funding % of Total Category $230,466 85.0% Affordable Housing $ 40,671 15.0% Public Services $271,137 100.0% Total The CDBG Commission has recommended that all of the available CDBG-R Program funds be allocated with 85% of the available funding going to affordable housing and 15%, the maximum permitted by HUD regulations, for Public Services. Staff did not request any CDBG-R funds for administrative purposes, as funding from the FY 2008 CDBG Entitlement Grant and Program Income and the FY 2009 CDBG Entitlement Grant and Program Income will cover expected administration costs. As indicated,the Council is being asked to make funding allocations using CDBG-R funds on June 2,2009. Council will consider making funding decisions utilizing other available spring cycle funds on July 7, 2009. The following reasons explain why the Council needs to conduct two meetings to finalize funding allocations from the spring cycle of the competitive process: • HUD did not release the rules and regulations for the CDBG-R Program until May 7,2009. • HUD did not inform the City of the amounts of its FY 2009 CDBG Entitlement Grant and FY 2009 HOME Program funding until May 8, 2009. • The CDG Commission was unable to meet to formulate its funding recommendations to the Council until Thursday May 14, 2009. June 2, 2009 -5- Item No. 20 A-B • HUD CDBG-R Program rules require a 7 day public comment period. The June 2nd Council meeting is the first available regular Council meeting after the 7-day public comment period closes. • HUD regulations require separate accounting and approvals for CDBG-R funding. • The City CDBG-R Program amendment to its FY 2008 CDBG Program is due to HUD by Friday June 5, 2009. • HUD CDBG Program rules require a 30 day public comment period, the July 7th Council meeting is the first available regular Council meeting after the 30-day public comment period closes. 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. CDBG Commission's Comments on the Proposals 5. Focus Questions for CDBG Commission 6. ' Formulation of Funding Recommendations Session ATTACHMENT 1 BACKGROUND AND SUMMARY OF CDBG COMMISSION'S RECOMMENDATIONS FOR FUNDING At the June 2, 2009, regular City Council meeting, the Council will consider the adoption of a resolution establishing which programs and projects will receive funding from the Community Development Block Grant Recovery (CDBG-R) Program. The additional $271,137 of CDBG-R funds are supplemental funds from the Department of Housing and Urban Development (HUD) for the City's FY 2008 CDBG Program, which started on October 1, 2008. The City's amendment to its FY 2008 CDBG Program is due to HUD by Friday June 5, 2009. The resolution establishing which programs and projects will receive CDBG-R funds represents a portion 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. Due to different deadlines and notification requirements, the Council is being asked to determine the use of CDBG-R funds at their June 2, 2009, meeting and make the allocation of other funds at their July 7, 2009, meeting. 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 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 Commission 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: • 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. 1 AVAILABLE FUNDS The following table summarizes the amount of available CDBG-R funds to the City and any HUD limitations on the use of CDBG-R funds. AMOUNT USE $271,137 Total CDBG-R Funds $27,114 10% Maximum for Planning and Administration $40,671 15% Maximum for Public Services SELECTION PROCESS On Thursday March 27, 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 Tuesday April 1, Wednesday April 2, and Thursday April 3, the Commission interviewed all applicants for CDBG-R funds as part of their normal spring cycle interview process for the FY 2009 CDBG Program. Each applicant seeking CDBG-R funds was individually identified to the Commission during the interview process. The Commission met on May 14, 2009, to prepare their funding recommendations to the City Council and presents a list of recommendations as to which programs and projects should receive CDBG-R funding. The table below presents the following information: a listing of applicants requesting CDBG-R funding, the amount of requested funding, the Commission's recommendations for the allocation of CDBG-R funds, and the Commission's recommendations for funding from other funds to be distributed during the spring cycle of the competitive process. The Council is scheduled to make the final decision on funding allocations for the other funds for spring cycle of the competitive process at their July 7, 2009 regular meeting. CDBG Commission's Recommendations for Funding Using CDBG-R Funds Authorized by the American Recovery and Reinvestment Act of 2009 Commission's Commission's Applicant Funding Recommendation Recommendation Unfunded Project/Program Request For CDBG-R Funds For Other Funds* Balance HOUSING HO-4 FCHCVillage on $450,000 $230,466 $219,534 $0 Stanford Rehabilitation HO-5 Neighbor to $185,635 $0 $185,635 $0 Neighbor: Coachlight Plaza Apartments * Council will consider the funding recommendations from this column at their July 7, 2009 regular meeting. 2 Commission's Commission's Applicant Funding Recommendation Recommendation Unfunded Project/Program Request For CDBG-R Funds For Other Funds* Balance PUBLIC SERVICES PS-2 Boys & Girls Club: $18,309 $0 $18,309 $? After-School and School- break Child Care and Youth Activities PS-5 Center for Family $15,000 $0 $0 $15,000 Outreach: Volunteer Program for the parenting Center PS-6 Consumer Credit $13,000 $0 $0 $13,000 Counseling Services: Financial Counseling PS-7 Crossroads $90,000 $0 $51,542 $47,674 Safehouse: Advocacy Program PS-14 Homeless $45,000 $40,671 $0 $4,329 Prevention Initiative: Emergency Rent Assistance PS-15 Live the Victory: $29,120 $0 $0 $29,120 Matthews House * Council will consider the funding recommendations from this column at their July 7, 2009 regular meeting. CDBG COMMISSION'S LIST OF RECOMMENDATIONS Listed below is a summary of each applicant's initial request for funding and the Commission's recommendations. The Justifications for the Commission's recommendation can be found in Attachment 5. AFFORDABLE HOUSING APPLICATIONS HO-4 FORT COLLINS HOUSING AUTHORITY (FCHA)—VILLAGE on STANFORD REHABILITATION Request: $450,000 - due on sale loan/5% simple interest on principal Recommendation: $450,000 - 230,466—CDBG-R; $219,534 other funds The Village on Stanford, an 82-unit, permanently affordable apartment complex, requires additional gap financing for rehab because it will not be receiving funds anticipated from the Colorado Division of Housing and the Federal Home Loan Bank of Topeka. 3 HO-5 NEIGHBOR TO NEIGHBOR: IMPROVEMENTS TO COACHLIGHT PLAZA APARTMENTS Request: $185,635 - due on sale loan/5% simple interest on principal Recommendation: $185,635 - $0—CDBG-R; $185,635 other funds Neighbor to Neighbor aims to improve health, safety, structural, and aesthetic features at Coachlight Plaza Apartments through sewer line repair, carbon monoxide detector installation, exterior paint, replacement of gutters and privacy fences, and construction of gabled overhangs over entries. PUBLIC SERVICE APPLICATIONS PS-2 BOYS AND GIRLS CLUB: AFTER-SCHOOL AND SCHOOL-BREAK CHILD CARE AND YOUTH ACTIVITIES Request: $18,309 Recommendation: $18,309 - $0 CDBG-R; $18,309 other funds The Boys and Girls Club has requested assistance for their long-standing after-school and summer care program. The Club charges an annual fee of only $5 and provides activities for a wide age- range of kids. This application requests $18,309 to supplement the salaries of 20% of the Program Directors and 10% of the Junior Staff. PS-5 CENTER FOR FAMILY OUTREACH: VOLUNTEER PROGRAM FOR THE PARENTING CENTER Request: $15,000 Recommendation: $0 CDBG-R; $0 other funds The Center for Family Outreach has requested assistance for its new Parenting Center which will provide services for parents of teens including case-management, resource referrals, parent education classes and volunteer parent coaches. The program goal is to support healthy families so they can pursue long-term goals to sustain family development. Funding requested would pay a portion of the salary of one Volunteer Coordinator/Trainer. PS-6 CONSUMER CREDIT COUNSELING SERVICE: FINANCIAL COUNSELING Request: $13,000 Recommendation: $0 CDBG-R; $0 other funds Consumer Credit Counseling has requested assistance to provide financial problem-solving help and financial crisis management assistance. Funding will be used to pay for 50% of the salary for one FTE Certified Financial Counselor. 4 PS-7 CROSSROADS SAFEHOUSE: ADVOCACY PROGRAM Request: $99,216 Recommendation: $51,542 - $0 CDBG-R; $51,542 other funds Crossroads Safehouse provides services and outreach to abused adults at both a safehouse shelter and an outreach center. This application requests City funds of$99,216 to fund 38% of all advocates salaries. PS-14 HOMELESS PREVENTION INITIATIVE: EMERGENCY RENT ASSISTANCE Request: $45,000 Recommendation: $40,671 CDBG-R; $0 other funds Emergency Rent Assistance provides temporary funding to cover the cost of rent for families facing eviction. This application requests $45,000 to cover between one and three months rent for 540 individuals (or approximately 180 households). PS-15 LIVE THE VICTORY: MATTHEWS HOUSE Request: $29,120 Recommendation: $0 CDBG-R; $0 other funds The Matthews house intensively works with and supports at-risk, underserved youth, ages 16-21 in a day-time environment. Independent living and life skills training, outpatient therapeutic services, health education, addiction counseling, and I A mentoring are offered. The request of $29,120 is for 50% of 2.0 FTE Case Workers. A summary of the Commission's funding recommendations by category is presented in the following table: Recommended Funding % of Total Category $230,466 85.0% Affordable Housing 40,671 15.0% Public Services $271,137 100.0% Total The CDBG Commission has recommended that all of the available CDBG-R Program be allocated with 85.0% for affordable housing and 15.0%, the maximum permitted by HUD regulations, for Public Services. The Commission's reasons for either full funding, partial funding, or no funding are presented in Attachment 5. Attachment 6 contains the focus questions used by the Commission to review the applications. Attachment 7 contains information on how the Commission's session where they formulate their funding recommendations was to be conducted. 5 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 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. 6 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 ImpactBenefit 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 Two application forms have also been developed. One form would be used for Housing proposals while to other form would be used for Non-Housing Proposals (public services, public facilities, etc.). 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. 7 RANKING CRITERIA 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. Im actBenefit maximum 30 oints 1. Primarily targets low incomepersons? (0-10) (all units 0-30%of AMI= 10 pis;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) (1-10 rs=3 pts, 11-19yrs=6 ts,20-30 rs=8 pts,permanent= 10 ts) Sub-total 0 Need/Priorit maximum 15 oints 1. Meets a Consolidated Plan priori ? (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 0 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.) (0-4) 4. . Has the applicant documented efforts to secure other funding? (0-4) Sub-total 0 Leveraging Resources maximum 20points) 1. Does the project allow the reuse of our funding? (0-10) 10 A. Principal and interest(30-year amortization or lesspoints 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 10 D. More than 1:7 points Sub-total 0 Capacitv and History maximum 20points) 1. Ap licant 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 0 GRAND TOTAL 0 8 ATTACHMENT 3 March 26, 2009 TO: CDBG Commission Members FM: Fort Collins Affordable Housing Board SUBJECT: Spring 2009 Competitive Process 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. Commission's Recommendation Commission's AHB's Applicant Funding For CDBG-R Recommendation Unfunded Priority Project Request Funds For Other Funds* Balance I HO-4 FCHA $450,000 $230,466 $219,534 $0 VILLAGE on STANFORD REHAB 2 HO-5 NEIGHBOR $185,635 $0 $185,635 $0 TO NEIGHBOR: IMPROVEMENTS TO COACHLIGHT PLAZA APTS Council will consider the funding recommendations from this column at their July 7, 2009 regular meeting. 9 ♦.+. .yi i y y .r vow„ v��. "AT�i4C H ON T ..m�.ur'> APRIL 200:8 SPRING Cl(CLE FUNDINGRECOMMENDATIONS FOR CDBGm R Fri NDS�� ..COMM.UNI�TY DEUELOPMENT�BLOCK�GRANT�COMMISSION= - ' CITY OF F�:ORTxC:OLLINS �� -" _ Meeting heldl;T,hurstlay, May 14 08�", &00p I. - 830p � 218 North.ColleaWA ennue� q� Commission Members Present: Bob Browning, Chair Eric Berglund, Vice Chair Jeff Taylor Kay Rios Jennifer Wagner Catherine Costlow Staff Present: Ken Waido Heidi Phelps Julie Smith Sharon Thomas Megan Woodman NOTE: All motions appropriate to each Competitive Process application are listed by project and category in these minutes. As such, the listing represents a summary of discussions and motions rather than a chronological record of such proceedings. In the case of several motions for a funding recommendation, final carrying motions are so noted. 10 AFFORDABLE HOUSING APPLICATIONS FOR CDBG-R FUNDS HO-4 City of Fort Collins Housing Corp. — Stanford Rehabilitation. Request: $450,000 Motion by Mr. Taylor for $271,137 to HO4, Village on Stanford, but no second, so the motion failed. Moved by Mr. Taylor, seconded by Ms. Rios: To recommend full funding, utilizing $230,466 of CDBG-R and $219,534 of CDBG funds. Good project. The Housing Authority is going the right direction. VOTE: 5 in favor, 1 opposed. Funding recommendation: $450,000: $230,466 of CDBG-R and $219,534 of CDBG funds HO-5 Neighbor to Neighbor— Coachlight Improvements. Request: $185,635 Moved by Mr. Berglund, seconded by Ms. Rios: To recommend full funding. VOTE: Motion approved unanimously. Funding recommendation: $185,635 (other funds) PUBLIC SERVICE APPLICATIONS FOR CDBG-R FUNDS PS-14 HPI — Emergency Rent Assistance. Request: $45,000 Moved by Mr. Taylor for $40,671 taken from the CDBG-R funding, seconded by Ms. Wagner: To recommend $40,671. It is a very successful program that fills the gap for Neighbor to Neighbor in regards to qualifying. It meets the very bottom echelon of individuals that could end up in a homeless situation. HPI's success rate is very impressive indicating that 90% are still in place after three months. Nice allocation. VOTE: Motion approved unanimously. Funding recommendation: $40,671 CDBG-R funds 11 PS-2 Boys & Girls Club —After School Program. Request: $18,309 Moved by Ms. Wagner, seconded by Ms. Costlow: To recommend full funding, utilizing $18,309 of stimulus funds. VOTE: 4 in favor, 2 opposed. Funding recommendation: $18,309 (other funds) PS-5 Center for Family Outreach —Volunteer Program. Request: $15,000 Moved by Ms. Rios, seconded by Mr. Taylor: To recommend no funding. VOTE: Motion approved unanimously. Funding recommendation: $0 PS-6 Consumer Credit Counseling Service — Financial Counseling Program. Request: $13,000 Moved by Ms. Costlow, seconded by Ms. Wagner: To recommend no funding. VOTE: 5 in favor, 0 opposed, 1 abstention. Funding recommendation: $0 PS-7 Crossroads Safehouse —Advocacy Program. Request: $99,216 Moved by Mr. Browning, seconded by Ms. Wagner: To recommend $51,542. VOTE: 4 in favor, 2 opposed. Funding recommendation: $51,542 (other funds) PS-15 Live the Victory (Matthews) — At Risk Youth Program. Request: $29,120 Moved by Ms. Rios, seconded by Ms. Wagner: To recommend no funding. VOTE: 4 in favor, 2 opposed. Funding recommendation: $0 12 ATTACHMENT 5 Public Service Category Focus Questions for CDBG Commission Decision Making "The Big Framework" • One of the three main national objectives for CDBG funds is "benefit to low and moderate income persons or households." • Historically, the City's Human Service Program funds have been used for various services benefiting primarily low and moderate income persons in Fort Collins. Questions: 1) Is it serving the lower end income levels? 2) How many is it serving? 3) Is there a majority of Fort Collins area residents being served? 4) Is it a good cost/unit (understanding that the cost of case management is more than the cost of a hot meal)? 5) Who else needs to be stepping up to the plate in terms of funding or service (volunteers)? 6) Maslow's Hierarchy: Is it a more "feel-good service", or is it critical in terms of: a) Food, shelter or other basic needs b) Health and safety issues c) Serving a special population, or d) Self-sufficiency or major empowerment (teaching to fish vs. giving a fish)? 7) Is there anyone else in the community who can or is serving this need (i.e., trying to avoid duplication of service)? 8) Is City money being used as "gaqp financing", match money, or seed money? 9) Is this a program/project where City $ is really making a difference for, i.e., -- it's nobody else's "baby" or there's been a critical cut in funding? 10) Has project/program been aggressively seeking other funding sources? Rev: 2/06 13 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 this point of 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. 14 RESOLUTION 2009-050 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING THE PROGRAMS AND PROJECTS THAT WILL RECEIVE FUNDS FROM THE COMMUNITY DEVELOPMENT BLOCK GRANT RECOVERY(CDBG-R) PROGRAM WHEREAS,on February 17, 2009,the American Recovery and Reinvestment Act of 2009 (the "Act")was enacted by the United States Congress and signed into law by President Obama in order to provide a stimulus to the United States economy in the wake of the economic downturn;and WHEREAS, the Act includes federal tax relief, expansion of unemployment benefits and other social welfare provisions,and domestic spending and education,healthcare,and infrastructure, and also appropriated$1,000,000,000 in Community Development Block Grant funds so that local governments may carry out on an expedited basis certain eligible activities under the CDBG program; and WHEREAS, the new CDBG funds being disbursed under the Act are referred to as CDBG Recovery (CDBG-R) Program funds and are additional and supplemental to the City's fiscal year CDBG program; and WHEREAS, this Resolution establishes which programs and projects will receive funding from the CDBG-R Program which has allocated the sum of$271,137 to the City for disbursement; and WHEREAS,the CDBG-R Program is being processed on an expedited basis as required by the Act and the City's amendment to its fiscal year CDBG program must be delivered to the Department of Housing and Urban Development by Friday, June 5, 2009; and WHEREAS,the CDBG Commission has recommended that affordable housing funding in the amount of $230,466 be dedicated to rehabilitation of the Fort Collins Housing Authority's Village on Stanford and that the remaining portion of the CDBG-R funds in the amount of$40,671 be dedicated to the Homeless Prevention Initiative: Emergency Rent Assistance Program; and . WHEREAS, the City Council has determined that it is in the best interests of the City that the CDBG-R Program Funds be authorized for expenditure in accordance with the recommendations of the CDBG Commission, and in a timely manner, so as to avail the City of the CDBG-R funds. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that funds made available to the City by reason of the Act CDBG-R Program in the total amount of$271,137 are hereby apportioned as follows: 1. Under the category of affordable housing, that the Fort Collins Housing Authority Village on Stanford Rehabilitation project be funded in the amount of$230,466. 2. Under the category of public services, that the Homeless Prevention Initiative: Emergency Rent Assistant Program be funded in the amount of $40,671. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 2nd day of June A.D. 2009. Mayor ATTEST: City Clerk ORDINANCE NO. 067, 2009 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED REVENUE IN THE COMMUNITY DEVELOPMENT BLOCK GRANT FUND WHEREAS, the American Recovery and Reinvestment Act of 2009 (the "Act") is an economic stimulus package enacted by the United States Congress and signed into law on February 17, 2009 by President Obama; and WHEREAS, the Act appropriated $1 billion to the Development of Housing and Urban Development in Community Development Block Grant ("CDBG") funds for states and local governments to stimulate the economy by carrying out, on an expedited basis, eligible activities under the Community Development Block Grant Recovery ("CDBG-R") Program; and WHEREAS,the supplemental CDBG-R Program funds awarded to the City total $271,137 (the"Grant Funds")and are to be allocated to modernize infrastructure, improve energy efficiency, and expand educational opportunities and access to healthcare; and WHEREAS, Resolution 2009-050, adopted on June 2, 2009, establishes the programs and projects to be funded with 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 the revenue as described herein will not cause the total amount appropriated in the Community Development Block Grant Fund to exceed the current estimate of actual and anticipated revenues for fiscal year 2009. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated from unanticipated revenue from the Community Development Block Grant Recovery Program funds in the Community Development Block Grant Fund the sum of TWO HUNDRED SEVENTY ONE THOUSAND ONE HUNDRED THIRTY SEVEN DOLLARS($271,137)for expenditure in the Community Development Block Grant Fund. Introduced,considered favorably on first reading,and ordered published this 2nd day of June, A.D. 2009, and to be presented for final passage on the 7th day of July, A.D. 2009. Mayor ATTEST: City Clerk Passed and adopted on final reading on the 7th day of July, A.D. 2009. Mayor ATTEST: City Clerk