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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 12/06/2016 - ITEMS RELATING TO THE COMPLETION OF THE 2016 FALLAgenda Item 3 Item # 3 Page 1 AGENDA ITEM SUMMARY December 6, 2016 City Council STAFF Beth Rosen, Affordable Housing Program Administrator SUBJECT Items Relating to the Completion of the 2016 Fall Cycle of the Competitive Process for Allocating City Financial Resources to Affordable Housing Activities Utilizing Funds from the Federal Community Development Block Grant (CDBG) Program, Federal HOME Investment Partnership (HOME), and the City's Affordable Housing Fund (AHF). EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 128, 2016, Appropriating Unanticipated Revenue in the Community Development Block Grant Fund. B. Second Reading of Ordinance No. 129, 2016, Appropriating Unanticipated Revenue in the HOME Investment Partnerships Fund. These Ordinances, unanimously adopted on First Reading on November 15, 2016, appropriate an adjustment of to the FY2016 HOME Participating Jurisdiction Grant from the Department of Housing and Urban Development (HUD) and Community Development Block Grant (CDBG) Program Income from FY2015. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, November 15, 2016 (w/o attachments) (PDF) 2. Ordinance No. 128, 2016 (PDF) 3. Ordinance No. 129, 2016 (PDF) Agenda Item 8 Item # 8 Page 1 AGENDA ITEM SUMMARY November 15, 2016 City Council STAFF Beth Rosen, Affordable Housing Program Administrator SUBJECT Items Relating to the Completion of the 2016 Fall Cycle of the Competitive Process for Allocating City Financial Resources to Affordable Housing Activities Utilizing Funds from the Federal Community Development Block Grant (CDBG) Program, Federal HOME Investment Partnership (HOME), and the City's Affordable Housing Fund (AHF). EXECUTIVE SUMMARY A. Public Hearing and Resolution 2016-085 Approving the Programs and Projects that Will Receive Funds from the Community Development Block Grant Program, HOME Investment Partnership Program and the City’s Affordable Housing Fund. B. Public Hearing and First Reading of Ordinance No. 128, 2016, Appropriating Unanticipated Revenue in the Community Development Block Grant Fund. C. Public Hearing and First Reading of Ordinance No. 129, 2016, Appropriating Unanticipated Revenue in the HOME Investment Partnerships Fund. The purpose of this item is to approve the funding recommendations of the 2016 Fall Cycle of the Competitive Process and appropriate federal dollars. Resolution 2016-085 will complete the 2016 Fall Cycle of the Competitive Process for allocating $1,153,289 in City financial resources to affordable housing projects and the administration of the HOME program that began October 1, 2016. Ordinance Nos. 128 and 129, 2016 appropriate an adjustment of to the FY2016 HOME Participating Jurisdiction Grant from the Department of Housing and Urban Development (HUD) and Community Development Block Grant (CDBG) Program Income from FY2015. STAFF RECOMMENDATION Staff recommends adoption of the Resolution and Ordinances on First Reading. BACKGROUND / DISCUSSION This Resolution establishes which housing programs and projects will receive funding with the balance of CDBG, HOME and AHF funds for the FY2016 program year that began October 1, 2016. These funds represent the balance of funds that were available, but left uncommitted, from the 2016 Spring Competitive Process, as well as additional funds received since April 1, 2016. The FY2016 HOME grant from HUD was adjusted from $539,676 to $542,569, an increase of $2,893 from the spring 2016 appropriation. During the 2016 spring funding cycle $53,976 was allocated for Planning and Administration. An additional $289 is being allocated to program administration, while the additional grant balance is not being allocated at this time due to the lack of a HOME eligible project. CDBG Program Income received between April 1, 2016 and September 30, 2016 totals $74,199.86. ATTACHMENT 1 Agenda Item 8 Item # 8 Page 2 The following table summarizes the total funding amounts and sources of available CDBG, HOME and AHF funds for distribution in the housing and planning/administration categories during the FY2016 Fall Cycle of the Competitive Process: Available Funding for Housing and Planning/Administration in 2016 Fall Cycle Funding Source Funding Amount Planning & Administration Housing HOME (Uncommitted) $546,594 $0 $546,594 HOME FY2016 Grant Increase (Un-appropriated) $2,893 $289* $2,604** CDBG (Uncommitted) $1,014,559 $0 $1,014,559 CDBG Program Income (4/1 through 9/30) $74,199.86 $0 $74,199.86 Affordable Housing Fund (uncommitted) $100,047 $0 $100,047 Total Available Funding $1,738,292.86 $289.00 $1,738,003.86 *Per HOME regulations, 10% of grant allocation may be set aside for program administrative costs **Funds will carry over into the spring 2017 Competitive Process due to the lack of an application from a HOME eligible project. CITY FINANCIAL IMPACTS The Home Investment Partnership (HOME) Program provides federal funds from the Department of Housing and Urban Development (HUD) to the City of Fort Collins which can be allocated to housing related programs and projects, thereby reducing the demand on the City’s General Fund budget to address such needs. The General Fund contributes dollars for affordable housing projects through the Affordable Housing Fund. The funds provided by the City to housing programs and projects leverage millions of dollars in funding from other sources. Through the provision of affordable housing, more of Fort Collins’ workforce can reside within the community. This creates an available labor pool within the city, which helps maintain economic sustainability. BOARD / COMMISSION RECOMMENDATION The Community Development Block Grant Commission (CEBG) presents recommendations on which programs and projects should receive funding from the available funding sources presented above. Of the two proposals received the recommendation is to fully fund one proposal and increase funding of the second proposal to fund the entire project cost. The following table shows the allocations recommended by the Commission to City Council. Housing Category Applicant Project/Program Funding Request Commission’s Recommended Funding Unfunded Balance Percent of Request Funded DMA Plaza: Withdrawn Withdrawn $0 $0 N/A Housing Catalyst: Village on Shields Rehabilitation $1,125,000 $1,125,000 $0 100% Neighbor to Neighbor: Crabtree Apartments Boiler Replacement $20,000 $28,000 $0 140% Housing Total $1,145,000 $1,153,000 $0 107% The CDBG Commission received three applications for funding. One application, DMA Plaza Rehabilitation, was withdrawn by the applicant after it received notification from Colorado Housing Finance Authority (CHFA) that it did not receive a funding allocation of Low Income Housing Tax Credits. The project will most likely reapply in 2017. Agenda Item 8 Item # 8 Page 3 The justifications for the CDBG Commission’s recommendations can be found in the draft minutes from the October 13, 2016 meeting. (Attachment 2) The Affordable Housing Board provided comments and priority ranking to the CDBG Commission. These are addressed in the draft minutes from the special meeting held October 13, 2016. (Attachment 3) PUBLIC OUTREACH HUD regulations require a 30-day public comment period on the proposed allocation of HOME funds as recommended by the CDBG Commission. Staff placed an ad in the Coloradoan on October 16, 2016, presenting the list of recommended funding for programs/projects, and indicated the public comment period would run from October 17, 2016-November 15, 2016. Additionally, the public notice announcing funding recommendations was placed on the Social Sustainability Department’s website and distributed to 12 entities serving a majority of clients in legally protected classes-including those in a racial/ethnic minority, those with a disability, or female heads of household-or serving those community members who might otherwise have barriers to public participation in the City’s civic engagement processes. To date no public comments have been received. ATTACHMENTS 1. Background and Summary of CDBG Commission Recommendations (PDF) 2. CDBG Commission Deliberations, October 13 2016 (draft) (PDF) 3. Affordable Housing Board minutes, October 13, 2016 (draft) (PDF) 4. Background Information on Competitive Process (PDF) 5. CDBG and HOME Background Information (PDF) -1- ORDINANCE NO. 128, 2016 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED REVENUE IN THE COMMUNITY DEVELOPMENT BLOCK GRANT FUND WHEREAS, the City has received unanticipated Community Development Block Grant (CDBG) Program income in the amount of $74,200; 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 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 2016. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. 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 SEVENTY-FOUR THOUSAND TWO HUNDRED DOLLARS ($74,200), for approved Community Development Block Grant projects. Introduced, considered favorably on first reading, and ordered published this 15th day of November, A.D. 2016, and to be presented for final passage on the 6th day of December, A.D. 2016. __________________________________ Mayor ATTEST: _______________________________ Chief Deputy City Clerk -2- Passed and adopted on final reading on the 6th day of December, A.D. 2016. __________________________________ Mayor ATTEST: _______________________________ City Clerk -1- ORDINANCE NO. 129, 2016 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 2016-2017 is $2,893 more than anticipated; 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 2016 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 the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That there is hereby appropriated for expenditure from unanticipated revenue in the federal fiscal year 2016-2017 in the HOME Program Fund the sum of TWO -2- THOUSAND EIGHT HUNDRED NINETY-THREE DOLLARS ($2,893), upon receipt from federal fiscal year 2016-2017 HOME Participating Jurisdiction Grant Funds. Introduced, considered favorably on first reading, and ordered published this 15th day of November, A.D. 2016, and to be presented for final passage on the 6th day of December, A.D. 2016. __________________________________ Mayor ATTEST: _______________________________ Chief Deputy City Clerk Passed and adopted on final reading on the 6th day of December, A.D. 2016. __________________________________ Mayor ATTEST: _______________________________ City Clerk