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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 08/20/2013 - ITEMS RELATING TO THE COMPLETION OF THE 2013 SPRINDATE: August 20, 2013 STAFF: Sharon Thomas Heidi Phelps AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 9 SUBJECT Items Relating to the Completion of the 2013 Spring 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 (CDBG) Program, and the City’s Human Services Program (HSP). A. Second Reading of Ordinance No. 099, 2013, Appropriating Unanticipated Revenue in the Community Development Block Grant Fund. B. Second Reading of Ordinance No. 100, 2013, Appropriating Unanticipated Revenue in the Home Investment Partnerships Fund. EXECUTIVE SUMMARY Ordinance No. 099, 2013 appropriates the City’s FY 2013 CDBG Entitlement Grant from the Department of Housing and Urban Development (HUD). Ordinance No. 100, 2013 appropriates the City’s FY 2013 HOME Participating Jurisdiction Grant from HUD. Both Ordinances were unanimously adopted on First Reading on July 16, 2013. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - July 16, 2013 (w/o attachments) COPY COPY COPY ATTACHMENT 1 DATE: July 16, 2013 STAFF: Sharon Thomas Heidi Phelps AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 14 SUBJECT Items Relating to the Completion of the 2013 Spring 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 (CDBG) Program, and the City’s Human Services Program (HSP). A. Public Hearing and Resolution 2013-062 Approving the Programs and Projects That Will Receive Funds from the Federal Community Development Block Grant Program, and the City’s Human Services Program. B. Hearing and First Reading of Ordinance No. 099, 2013, Appropriating Unanticipated Revenue in the Community Development Block Grant Fund. C. Public Hearing and Resolution 2013-063 Approving the Fiscal Year 2013 Administration and Project Budgets for the Home Investment Partnership Program. D. Hearing and First Reading of Ordinance No. 100, 2013, Appropriating Unanticipated Revenue in the Home Investment Partnerships Fund. EXECUTIVE SUMMARY Resolution 2013-062 will complete the 2013 spring cycle of the Competitive Process for allocating $1,685,496 in City financial resources to affordable housing projects, public facility activities, public service programs and administration of the program that will receive funding beginning October 1, 2013. Ordinance No. 099, 2013 appropriates the City’s FY 2013 CDBG Entitlement Grant from the Department of Housing and Urban Development (HUD). Resolution 2013-063 establishes the major funding categories within the HOME Program for the FY 2013 program year, which also starts on October 1, 2013. Specific projects for the use of HOME funds will be determined in November as a result of the 2013 fall cycle of the Competitive Process. Ordinance No. 100, 2013 appropriates the City’s FY 2013 HOME Participating Jurisdiction Grant from HUD. BACKGROUND / DISCUSSION Resolution 2013-062 establishes which programs and projects will receive funding with CDBG funds for the FY 2013 program year (including the Entitlement Grant and Program Income), which starts October 1, 2013; and which programs will receive funding from the City’s 2013 Human Services Program (HSP), including an allocation of Keep Fort Collins Great (KFCG) funds. The FY 2013 CDBG Entitlement Grant and FY 2013 CDBG Program Income (through March 31, 2013) totals $1,145,162. HUD regulations allow a maximum of 20% of these funds, or $229,031 for planning and program administrative purposes. Program Income includes repayments from rehabilitation loans, homebuyer assistance loans, acquisition loans and development loans. HUD regulations limit a maximum of 15% of the CDBG funds and Program Income for use in the Public (Human) Services category, which is $171,773. The City’s 2013 HSP adds $389,601 and HSP KFCG funds add an additional $250,733, for use in the category, for a total of $812,107 of available funding in the Public (Human) Services category. Considering the set-asides for Planning and Administration and Public (Human) Services discussed above, the balance of the FY 2013 CDBG Entitlement Grant ($647,173) and FY 2013 CDBG Program Income ($97,185) amounts, or $744,358 is available for allocation to the Economic Development, Housing and Public Facility category. The following table summarizes the total amount and sources of all available CDBG and City funds for distribution during the 2013 spring cycle of the Competitive Process and how the funding is distributed among the three categories: COPY COPY COPY July 16, 2013 -2- ITEM 14 Funding Amount Funding Source Administration (Maximum of 20% of CDBG Entitlement) Public Service (Maximum of 15% of CDBG Entitlement) Economic Development, Housing & Public Facility $995,649 FY 2013 CDBG Entitlement Grant $199,129 $149,347 $647,173 $149,513 FY 2013 CDBG Program Income $29,902 $22,426 $97,185 $389,601 FY 2013 HSP $0 $389,601 $0 $250,733 FY 2013 HSP KFCG $0 $250,733 $0 $1,785,496 Total Funding Available $229,031 $812,107 $744,358 The City received 45 applications for funding (not including one public service proposal which was subsequently withdrawn by the applicant) and a staff administration request as part of the 2013 spring cycle of the Competitive Process requesting a total of $3,840,816. The total amount of funds available from all sources is $1,785,496. The total of application requests is $2,055,320 more than the amount of available funding. HUD regulation limitations within the Public Service category results in a total of $452,753 more in requests than the available funds for the category. Unfortunately, funds in the Planning and Administration category and Economic Development, Housing and Public Facility category cannot be used to fund any Public Service applications. The following summarizes the amount of funding requests compared to the amount of funding available for each of the major funding categories: Category Number of Applications Available Funding Requested Funding Available - Request Difference Administration * $229,031 $229,031 $0 Public Services 35 $812,107 1,264,860 -$452,753 Economic Development, Affordable Housing & Public Facilities 10 $744,358 $2,346,925 -$1,602,567 Totals 45 $1,785,496 $3,840,816 -$2,055,320 FINANCIAL / ECONOMIC IMPACTS The Community Development Block Grant (CDBG) Program, and the Home Investment Partnership (HOME) Program (allocated in the fall) 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 during FY 2013 is $1,145,162. The City’s General Fund contributes $389,601 in the Human Services Program (HSP) and $250,733 in HSP KFCG funds for allocation during the spring cycle of the Competitive Process and $325,047 in Affordable Housing Fund (AHF) dollars in the fall. 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 COPY COPY COPY July 16, 2013 -3- ITEM 14 Affordable housing developers, including for-profit and non-profit agencies, are utilizing green building practices in both new construction and major rehabilitation of existing housing unit projects. These practices include geo-thermal 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 Resolutions and the Ordinances 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 and HSP funds. The federal sequestration delayed notification of the City’s entitlement grant amounts, and therefore the deliberations meeting, by about two months. The following tables present the allocations recommended by the Commission to the City Council within each major category: Planning and Administration Category Applicant Project/Program Funding Request Commission’s Recommended Funding Unfunded Balance Percent of Request Funded City of Fort Collins: CDBG Administration $229,031 $229,031 $0 100% Economic Development, Affordable Housing & Public Facility Category Applicant Project/Program Funding Request Commission’s Recommended Funding Unfunded Balance Percent of Request Funded ED-1 City of Fort Collins: FoCo Café $80,000 $0 $80,000 0% HO-1 Asbury House: Housing Purchase $375,000 $0 $375,000 0% HO-2 CARE Housing: Provincetowne II $250,000 $250,000 $0 100% HO-3 Habitat for Humanity: Cottages at Avondale $45,000 $45,000 $0 100% HO-4 Housing Catalyst (FCHA): Cunningham Corner Rehab $500,000 $49,358 $450,642 10% *HO-5 JAG: Property Purchase $100,000 $0 $100,000 0% HO-6 Neighbor to Neighbor: Energy Efficiency Projects $221,925 $0 $221,925 0% PF-1 Asbury House: Facility Purchase $375,000 $0 $375,000 0% PF-2 Elderhaus: Property Purchase $300,000 $300,000 $0 100% PF-3 SAVA Center: Capital Campaign $100,000 $0 $100,000 0% Economic Development, Housing & Public Facility Total $2,346,925 $744,358 $1,602,567 COPY COPY COPY July 16, 2013 -4- ITEM 14 Public Service Category Applicant Project/Program Funding Request Commission’s Recommended Funding Unfunded Balance Percent of Request Funded Alliance for Suicide Prevention: Education & Awareness Programs $4,200 $4,200 $0 100% B.A.S.E. Camp: Childcare Scholarships $60,000 $55,000 $5,000 92% Boys & Girls Club: After-School & School- Break Childcare/Youth Prog. $24,907 $24,907 $0 100% CASA Program: Court Appointed Special Advocate $26,250 $0 $26,250 0% CASA Program: Harmony House Supervised Visit Center $24,500 $8,950 $15,550 37% Catholic Charities: Senior Services $15,000 $15,000 0% 100% Catholic Charities: Shelter & Rapid Rehousing $60,000 $40,000 $20,000 67% Center for Family Outreach: Assessments Low-Income Youth $8,000 $8,000 $0 100% ChildSafe Colorado: Child Sexual Abuse Treatment Program $23,000 $23,000 $0 100% Colo. Health Network (NCAP): Client Services & Homelessness Prev $28,480 $14,240 $14,240 50% Crossroads Safehouse: Advocacy Program $98,623 $31,885 $66,738 32% Disabled Resource Services: Access to Independence (ATI) $30,193 $26,186 $4,007 87% Education & Life Training Center: JobReady & Circles Employment $59,125 $29,310 $29,815 50% Elderhaus: Mindset Therapy Center Program $34,925 $20,000 $14,925 57% Family Center: Childcare Scholarships $45,000 $40,000 $5,000 89% Food Bank for Larimer County: Kids Café $27,000 $27,000 $0 100% Front Range Exceptional Equestrians: F.R.E.E. $10,200 $0 $10,200 0% GLBT Community Center: SAGE of the Rockies Elder Services $7,500 $0 $7,500 0% Health District of Larimer County: Dental Connections $58,250 $18,170 $40,080 $31% Homelessness Prevention Initiative: Emergency Rental Assistance $60,000 $45,000 $15,000 75% Laramie River Valley Rendezvous: At-Risk Youth Camp $10,600 $0 $10,600 0% Larimer County Child Advocate Center: Victim Services $35,000 $24,472 $10,528 70% The Lift of Northern Colorado: Senior & Disabled Transportation $18,500 $0 $18,500 0% The Matthews House: Empowering Youth COPY COPY COPY July 16, 2013 -5- ITEM 14 Applicant Project/Program Funding Request Commission’s Recommended Funding Unfunded Balance Percent of Request Funded Respite Care: Childcare Scholarships $35,000 $35,000 $0 100% SAVA Center: Sexual Assault Victim Services $41,338 $18,273 $23,065 44% Touchstone Health Partners: CDDT Program $57,847 $29,011 $28,836 50% Touchstone Health Partners: Mental Health Services – Murphy Center $22,500 $22,500 $0 100% Turning Point: Crisis Intervention Program Applicant Withdrew Teaching Tree Early Childhood Learning Center: Childcare Scholarships $60,000 $55,000 $5,000 92% Volunteers of America: Home Delivered Meals Program $33,600 $33,600 $0 100% Women’s Resource Center: Neighborhood Promotora Project $48,634 $0 $48,634 0% Public Service Total $1,264,860 $812,107 $452,753 A summary of the Commission’s funding recommendations by category is presented in the following table: Funding Recommendations by Category Category Recommended Funding % of Total CDBG Administration $229,031 13.6% Public Service $812,107 48.2% Economic Development, Housing & Public Facility $644,358 38.2% Total $1,685,496 100.0% The CDBG Commission has recommended $1,685,496 (94.4%) of the available funding amount of $1,785,496 be allocated. The Commission has recommended that 11 of the 35 Public Service proposals receive full funding; 18 proposals receive partial funding (ranging from 31% to 96%); and 6 proposals receive no funding. In the Economic Development, Housing and Public Facility category, the recommendation is for full funding for 32 housing proposals, partial funding for one housing proposal, full funding for one public facility proposal and no funding for the remaining 6 proposals. The justifications for the CDBG Commission’s recommendations can be found in Attachment 5, Minutes of the June 13, 2013, meeting. Minutes from the July 11, 2013 meeting which changed the recommendation for JAG Properties are not available at this time. PUBLIC OUTREACH HUD regulations require a 30-day public comment period on the proposed allocation of CDBG funds as recommended by the CDBG Commission. Staff placed an ad in the Coloradoan newspaper, presenting the list of recommended funding for programs/projects and indicated the public comment period would start on June 17, 2013, and end on July 16, 2013. To date, no public comments have been received. HOME Program Resolution 2013-063 establishes the major funding categories within the Home Investment Partnership (HOME) Program for the FY 2013 Program year, which starts October 1, 2013. Specific projects for the use of HOME funds will be determined in November as a result of the 2013 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 2013 HOME grant is $521,147 and HOME Program Income for 2013 (through March 31, 2013) is $244,834, for a total of $765,981. The following table summarizes the sources of HOME funding for FY 2013. COPY COPY COPY July 16, 2013 -6- ITEM 14 Funding Source Amount FY 2013 HOME Participating Jurisdictions Grant $521,147 FY 2013 Program Income $244,834 Total $765,981 HUD regulations allow a maximum of 10% of the HOME grant, or $54,250, and $12,748 of eligible Program Income, for a total of $64,862, for program administrative purposes. HUD regulations also require a 15% set-aside of the HOME grant, or $78,172, for Community Housing Development Organizations (CHDOs). CHDOs in Fort Collins include CARE Housing, Neighbor to Neighbor, and The Villages (formerly the Fort Collins Housing Corporation). The following table summarizes the distribution of HOME funding: In addition to the HOME funds above, $313,047 from the City’s Affordable Housing Fund will be available for allocation to affordable housing projects in the 2013 fall cycle of the Competitive Process. 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 Housing Priority Recommendations, March 27, 2013 4. Background Information on the CDBG and HOME Federal Programs 5. CDBG Commission’s Funding Recommendations, June 13, 2013 6. Letter from applicant, CASA 7. Focus Questions 8. Deliberations Information Sheet ORDINANCE NO. 099, 2013 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 2013-2014 unanticipated revenue in the form of federal Community Development Block Grant (“CDBG”) funds totaling $995,649; and WHEREAS, the City also received unanticipated CDBG Program income in the 2012-2013 federal fiscal year in the amount of $149,513; and WHEREAS, by adoption of Resolution 2013-062 the City Council approved the 2013 Community Development Block Grant Program; and WHEREAS, by adoption of Resolution 2013-062 the City Council authorized the City Manager to transmit for approval the 2013 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 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 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 2013. 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 2013-2014 into the Community Development Block Grant Fund, the sum of NINE HUNDRED NINETY-FIVE THOUSAND SIX HUNDRED FORTY-NINE DOLLARS ($995,649), upon receipt thereof for federal fiscal year 2013-2014 Community Development Block Grant Funds. Section 2. That there is hereby appropriated for expenditure from unanticipated program income revenue, upon receipt thereof into the Community Development Block Grant Fund, the sum of ONE HUNDRED FORTY-NINE THOUSAND FIVE HUNDRED THIRTEEN DOLLARS ($149,513), for approved Community Development Block Grant projects. Introduced, considered favorably on first reading, and ordered published this 16th day of July, A.D. 2013, and to be presented for final passage on the 20th day of August, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 20th day of August, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk ORDINANCE NO. 100, 2013 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 which 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 2013-2014 is $521,147; and WHEREAS, the City also received unanticipated HOME Program income in the 2012-2013 federal fiscal year in the amount of $244,834; 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 Program Fund to exceed the current estimate of actual and anticipated revenues to be received in that fund during the 2013 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 fiscal 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 2013-2014 in the HOME Program Fund the sum of FIVE HUNDRED TWENTY-ONE THOUSAND ONE HUNDRED FORTY-SEVEN DOLLARS ($521,147), upon receipt from federal fiscal year 2013-2014 HOME Participating Jurisdiction Grant Funds. Section 2. That there is hereby appropriated for expenditure from unanticipated program income revenue, upon receipt thereof, in the HOME Program Fund the sum of TWO HUNDRED FORTY-FOUR THOUSAND EIGHT HUNDRED THIRTY-FOUR DOLLARS ($244,834), for approved HOME Program projects. Introduced, considered favorably on first reading, and ordered published this 16th day of July, A.D. 2013, and to be presented for final passage on the 20th day of August, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 20th day of August, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk Program $33,500 $32,229 $1,271 96% Neighbor to Neighbor: Housing Counseling $60,188 $33,174 $27,014 55% Neighbor to Neighbor: Rent Assistance $30,000 $30,000 $0 100% Project Self-Sufficiency: Services for Single Parent Families $33,000 $33,000 $0 100% Rehab. & Visiting Nurse Association: Home Health Care Scholarships $40,000 $35,000 $5,000 88% *JAG Properties received a unanimous vote from the CDBG Commission to fully fund this project. On July 11, 2013 staff was notified by HUD that this applicant, a for-profit company, was not eligible to receive CDBG dollars. The CDBG Commission, at its regular meeting held July 11, 2013, voted unanimously to withdraw the funding recommendation based on the HUD information. The Commission stated they encourage JAG Properties to submit a funding proposal during the 2013 Fall Competitive Process where HOME and Affordable Housing Funds are available. JAG will be eligible to receive both sources of funds. child care, so workers can maintain their employment and housing situations. By providing funding to these programs 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.