Loading...
HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/04/2012 - SECOND READING OF ORDINANCE NO. 131, 2012, AUTHORIDATE: December 4, 2012 STAFF: Sharon Thomas Heidi Phelps AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 7 SUBJECT Second Reading of Ordinance No. 131, 2012, Authorizing the Transfer of Appropriations Between Program Years in the Community Development Block Grant Fund. EXECUTIVE SUMMARY Ordinance No. 131, 2012, unanimously adopted on First Reading on November 20, 2012, reappropriates Community Development Block Grant (CDBG) funds that have been returned to the program for allocation in the fall 2012 Competitive Process. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - November 20, 2012 (w/o attachments) COPY COPY COPY COPY ATTACHMENT 1 DATE: November 20, 2012 STAFF: Sharon Thomas Heidi Phelps AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 19 SUBJECT Items Relating to the 2012 Fall Cycle of the Competitive Process for Allocating City Financial Resources to Affordable Housing and Community Development Activities Utilizing Funds from the Federal Community Development Block Grant and HOME Investment Partnership Programs, and the City’s Affordable Housing Fund. A. Public Hearing and Resolution 2012-105 Approving the Programs and Projects that Will Receive Funds from the Federal Community Development Block Grant and HOME Investment Partnership Programs, and the City’s Affordable Housing Fund. B. First Reading of Ordinance No. 131, 2012, Authorizing the Transfer of Appropriations Between Program Years in the Community Development Block Grant Fund. EXECUTIVE SUMMARY This Resolution will complete the 2012 fall cycle of the Competitive Process for allocating $1,670,130 in City financial resources to affordable housing projects and public facility activities. Ordinance No. 131, 2012, reappropriates Community Development Block Grant (CDBG) funds that have been returned to the program for allocation in the fall 2012 Competitive Process. BACKGROUND / DISCUSSION Resolution 2012-105 establishes which programs and projects will receive funding with Community Development Block Grant (CDBG), HOME Investment Partnership (HOME) and Affordable Housing Fund (AHF) dollars for the FY 2012 program year which began on October 1, 2012. A combined total of $1,670,130 was available for funding in the fall cycle. The CDBG Commission presents to the City Council a list of recommendations as to which programs and projects should receive funding. The following table summarizes the total amount and sources of available CDBG, HOME and AHF funds for distribution during the 2012 fall cycle of the Competitive Process: Available Funding AMOUNT SOURCE $750,000 FY 2010 and 2011 CDBG Reprogrammed funds $407,570 FY 2012 HOME Participating Jurisdiction Grant $198,020 FY 2012 HOME Program Income $81,497 FY 2012 HOME CHDO Set-aside $89,888 FY 2011 HOME CHDO Set-aside $143,155 FY 2012 Affordable Housing Fund $1,670,130 Total Funding Available During the spring 2011 cycle of the Competitive Process, Merten, Inc. was awarded $750,000 of CDBG funds for the affordable housing senior project, Union Place. In July 2012, the funds were returned to the City because the developer was unable to continue with the project. Ordinance No.131, 2012 reappropriates those CDBG funds to be reprogrammed into the 2012 fall cycle of the Competitive Process. Community Housing Development Organization (CHDO) funds are HOME grant funds required to be specifically earmarked for use by CHDOs in the city. City CHDO agencies include CARE Housing, Neighbor-to-Neighbor, and Villages (formerly the Fort Collins Housing Corporation). Villages was the only CHDO agency requesting funding in the 2012 fall cycle. COPY COPY COPY COPY November 20, 2012 -2- ITEM 19 FINANCIAL / ECONOMIC IMPACTS 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. The total amount of CDBG funds available for allocation for the fall cycle of the Competitive Process is $750,000 and $776,975 from HOME funds. The City’s General Fund contributes $325,047 of Affordable Housing Fund dollars for the fall cycle of the competitive process. Of those funds, $131,892 were allocated to the Fort Collins Housing Authority’s Supportive Housing project following the spring cycle and $50,000 was allocated to developing the Redevelopment Displacement Mitigation Plan, leaving $143,155 to fund projects/programs in the fall 2012 cycle of the Competitive Process. Through the provision of affordable housing, more of Fort Collins’ work force can reside within the community. This means there is an available labor pool within the city, which is a positive benefit to economic sustainability. Public/human services programs contribute to economic sustainability by providing such programs as job training and child care so workers can maintain their employment and housing situations. By providing funding for needed upgrades to their facilities or for partial purchase of service locations, the agencies are better able to utilize funds to serve their clients. ENVIRONMENTAL IMPACTS Affordable housing programs help provide for a healthy environment. By offering affordable housing options for lower income people, more of Fort Collins’ work force can live in the community instead of being forced to live outside the community and commute into the city for work. This helps reduce traffic congestion and, thus, improves air quality. Affordable housing developers, including for-profit and non-profit agencies, are utilizing green building practices. Green building practices are being used in both new construction and major rehabilitation of existing housing unit projects. These practices include geothermal applications and other energy saving techniques. All affordable housing projects utilizing CDBG and HOME funds are required to pass a HUD Environmental Review which covers such items as noise impacts, floodplains, hazardous materials, etc. STAFF RECOMMENDATION Staff recommends adoption of the Resolution and the Ordinance on First Reading. BOARD / COMMISSION RECOMMENDATION Community Development Block Grant (CDBG) Commission Recommendations The CDBG Commission presents recommendations as to which programs and projects should receive funding from the available funding sources presented above, including CDBG, HOME and AHF funds. The following tables present the allocations recommended by the Commission to the City Council within each major category: Economic Development Category Applicant Project/Program Funding Request Commission’s Recommendation Unfunded Balance Percent of Request Funded ED-1 Fort Collins Local Development Company: Revolving Loan Fund for Start- up Companies $300,000 $0 $300,000 0% COPY COPY COPY COPY November 20, 2012 -3- ITEM 19 Affordable Housing Category Applicant Project/Program Funding Request Commission’s Recommendation Unfunded Balance Percent of Request Funded HO-1 City of Fort Collins: Homebuyer Assistance Program – Affordable Housing Funds $50,000 $50,000 AHF $0 100% HO-2 City of Fort Collins: Homebuyer Assistance Program – HOME Funds $50,000 $50,000 HOME $0 100% HO-3 Fort Collins Housing Authority: Tenant Based Rental Assistance (TBRA) for CDDT $156,240 (Grant) $156,240 HOME (Grant) $0 100% HO-4 Fort Collins Housing Authority: TBRA Administrative Costs $17,434 (Grant) $17,434 AHF (Grant) $0 100% HO-5 Housing Authority of the City of Loveland: Larimer Home Improvement Program $75,000 (Grant) $67,721 AHF (Grant) $7,279 90% HO-6 Villages Ltd.: Property Acquisition $1,072,811 $1,072,811 COPY COPY COPY COPY November 20, 2012 -4- ITEM 19 PUBLIC OUTREACH HUD regulations require a 30-day public comment period on the proposed allocation of CDBG and HOME funds as recommended by the CDBG Commission. Staff placed an ad in the Coloradoan presenting the list of recommended funding for programs/projects and indicated the public comment period would start on October 15, 2012, and end on November 13, 2012. To date, no public comments have been received. 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 Comments, Meeting Minutes September 20, 2012 4. Background Information on the CDBG and HOME Federal Programs 5. CDBG Commission’s Funding Recommendations, Meeting Minutes October 11, 2012 ORDINANCE NO. 131, 2012 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE TRANSFER OF APPROPRIATIONS BETWEEN PROGRAM YEARS IN THE COMMUNITY DEVELOPMENT BLOCK GRANT FUND WHEREAS, unexpended funds are available from the Community Development Block Grant (CDBG) program from prior fiscal years in the amount of $750,000; and WHEREAS, the unexpended appropriations are available to be transferred and re-allocated to a 2012 CDBG program; and WHEREAS, by adoption of Resolution 2012-105 the City Council approved the 2012 Community Development Block Grant Program; and WHEREAS, Article V, Section 9 of the City Charter permits 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, Article V, Section 10, of the City Charter authorizes the City Council to transfer by ordinance any unexpected and unencumbered amount or portion thereof from one fund or capital project to another fund or capital project, provided that the purpose for which the funds were initially appropriated no longer exists; 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; 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 2012. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the unexpended and unencumbered amount of SEVEN HUNDRED FIFTY THOUSAND DOLLARS ($750,000) is hereby authorized for transfer from the 2010 and 2011 Community Development Block Grant Program to the 2012-2013 Community Development Block Grant Program and appropriated therein. Introduced, considered favorably on first reading, and ordered published this 20th day of November, A.D. 2012, and to be presented for final passage on the 4th day of December, A.D. 2012. _________________________________ Mayor Pro Tem ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 4th day of December, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk CDBG/HOME 0% 100% All funding recommendations in the Affordable Housing category are in the form of a “Due on Sale Loan + 5% Simple Interest” unless noted as a grant. Public Facility Category Applicant Project/Program Funding Request Commission’s Recommendation Unfunded Balance Percent of Request Funded PF-1 Respite Care: Life Skills Program Area for Teens with Developmental Disabilities $72,700 $72,700 CDBG $0 100% PF-2 SAVA: Capital Campaign $300,000 $175,224 CDBG $124,776 71% PF-3 Turning Point Center for Youth and Family Development: Wheelchair Accessibility $8,500 $8,000 AHF (Grant) $500 94% All funding recommendations in the Public Facility category are in the form of a “Due on Sale Loan + 5% Simple Interest” unless noted as a grant. The CDBG Commission has recommended all (100%) of the available funding amount of $1,670,130 be allocated. Because there are not enough funds available to fund all proposals, the Commission has recommended that the economic development proposal receive 0% of its funding request. Economic development is a lower priority in the Consolidated Plan. Of the six affordable housing proposals, five are being recommended for full funding, and the sixth (Housing Authority of Loveland: LHIP) is receiving a recommendation for funding at 90% of the request. All three public facility proposals are being recommended for funding, one full and two partial. SAVA is being recommended for 71% of its request and Turning Point for 94% of its request. The justifications for the CDBG Commission’s recommendations can be found in Attachment 5.