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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/18/2014 - ITEMS RELATING TO THE COMPLETION OF THE 2014 FALLAgenda Item 16 Item # 16 Page 1 AGENDA ITEM SUMMARY November 18, 2014 City Council STAFF Sharon Thomas, CDBG/HOME Program Administrator Beth Sowder, Neighborhood Services Manager SUBJECT Items Relating to the Completion of the 2014 Fall Cycle of the Competitive Process for Allocating City Financial Resources to Affordable Housing and Community Development Activities Utilizing Funds from the Federal HOME Investment Partnership Program (HOME) and the City’s Affordable Housing Fund (AHF). EXECUTIVE SUMMARY A. Public Hearing and Resolution 2014-101 Approving the Programs and Projects that Will Receive Funds from the Home Investment Partnership Program and the City’s Affordable Housing Fund. B. Public Hearing and First Reading of Ordinance No. 167, 2014, Appropriating Unanticipated Revenue in the Home Investment Partnership Program Fund. The purpose of this item is to approve the funding of the 2014 Fall Cycle of the Competitive Process. Resolution 2014-101 will complete the 2014 Fall Cycle of the Competitive Process for allocating $816,741 in City financial resources to affordable housing projects and the administration of the HOME program that began October 1, 2014. Ordinance No. 167, 2014 appropriates HOME Program Income received between April 1, 2014 and September 30, 2014 for affordable housing and planning/administration uses. STAFF RECOMMENDATION Staff recommends adoption of the Resolution and Ordinance on First Reading. BACKGROUND / DISCUSSION Resolution 2014-101 establishes which programs and projects will receive funding with HOME and AHF funds for the FY2014 program year that began October 1, 2014. The FY2014 HOME grant is $539,698. During the 2014 spring funding cycle $140,131 was allocated to a housing project, Habitat for Humanity, and $53,969 for Planning and Administration. The remaining HOME funds of $345,598 are available for allocation in the fall funding cycle. HUD requires that 15%, or $80,954, of the grant be set aside for funding for Community Housing Development Organizations (CHDOs) which leaves $264,644 for housing projects. Currently there are no certified CHDOs in Fort Collins so the CHDO funds are not being allocated at this time. HOME Program Income received between April 1, 2014 and September 30, 2014 totals $158,096. Of that, $143,311 is for affordable housing projects and $14,785 is for planning and administration. The City’s General Fund contributes $313,047 of AHF dollars to the fall cycle of the Competitive Process. The following table summarizes the total funding amounts and sources of available HOME and AHF funds for distribution in the housing and planning/administration categories during the FY2014 Fall Cycle of the Competitive Process: Agenda Item 16 Item # 16 Page 2 Available Funding for Housing and Planning/Administration in 2014 Fall Cycle Funding Source Funding Amount Planning & Administration Housing HOME FY2014 Grant (remaining) $264,644 $0 $264,644 HOME CHDO 15% Set-Aside $80,954 $0 $80,954 HOME Program Income (4/1 through 9/30) $158,096 $14,785 $143,311 Affordable Housing Fund $313,047 $0 $313,047 Total Available Funding $816,741 $14,785 $801,956 HOME Funds are typically approved in the spring cycle and allocated during the fall funding cycle. This year $140,131 of the FY2014 HOME Grant was allocated to Habitat for Humanity to complete their funding request of $700,000. The remaining grant portion for housing, $345,598, is available for allocation in this fall cycle. The City received six applications for affordable housing projects/programs with a total request of $2,007,792. Application requests were $1,176,266 more than available housing funding of $801,956. FINANCIAL / ECONOMIC 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. ENVIRONMENTAL IMPACTS Affordable housing programs help provide for a healthy environment. By offering affordable housing options for lower income people, more of Fort Collins’ workforce can live in the community rather than living outside city limits and commuting to the city for work. In addition, many affordable housing projects are located within close proximity to City bus routes. This helps reduce traffic congestion and vehicle miles traveled, thereby reducing pollution and improving air quality. 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 HOME funds are required to pass a HUD Environmental Review, which covers such items as noise impacts, floodplains, hazardous materials, etc. BOARD / COMMISSION RECOMMENDATION The Community Development Block Grant (CDBG) Commission presents recommendations on which programs and projects should receive funding from the available funding sources presented above. Of the six proposals received the recommendation is to fully fund two proposals, partially fund one, and provide zero funding for the remaining three proposals. The following table shows the allocations recommended by the Commission to City Council. Agenda Item 16 Item # 16 Page 3 Housing Category Applicant Project/Program Funding Request Commission’s Recommended Funding Unfunded Balance Percent of Request Funded CARE Housing: Uniform Federal Accessibility Standards (UFAS) Accessibility $127,356 $0 $127,356 0% Fort Collins Housing Authority: Administrative Fee for the Community Dual Disorders Treatment (CDDT) Program $26,449 $0 $26,449 0% Fort Collins Housing Authority: Tenant Based Rental Assistance for CDDT $225,730 $0 $225,730 0% Fort Collins Housing Authority: Village on Redwood: A Vibrant, Sustainable Community $1,500,000 $592,745 $907,255 40% Loveland Housing Development Corp: Larimer Home Improvement Program (LHIP) $85,000 $85,000 $0 100% Neighbor to Neighbor: Coachlight Plaza Windows Phase 2 $43,257 $43,257 $0 100% Housing Total $2,007,792 $721,002 $1,286,790 The justifications for the CDBG Commission’s recommendations can be found in the minutes from the October 16, 2014 meeting (not yet approved by the CDBG Commission), submitted here as 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 20, 2014, presenting the list of recommended funding for programs/projects, and indicated the public comment period would run from October 21, 2014-November 18, 2014. 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 Summary of Recommendations Fall 2014 (PDF) 2. Affordable Housing Board 2014 Priority Rankings (PDF) 3. CDBG Commission minutes, October 16, 2014 (PDF) 4. Powerpoint presentation (PDF) Attachment 1 Background and Summary of CDBG Commission’s Recommendations for Funding At the November 18, 2014, regular City Council Meeting, the Council will be conducting a public hearing and considering the adoption of a Resolution establishing which programs and projects will receive funding in the fall Competitive Process. Available funding comes from the HOME Investment Partnership (HOME) grant and the City’s Affordable Housing Fund (AHF) for the FY 2014 program year, which began on October 1, 2014 and HOME Program Income received between April 1, 2014 and September 30, 2014. The Resolution establishing which programs and projects will receive funds represents the culmination of the fall cycle of the Competitive Process. The City’s Competitive Process funding was approved in January 2000 by Council for the allocation of the City’s financial resources to affordable housing programs/projects and community development activities. The HOME Program is an ongoing grant administration program funded by the Department of Housing and Urban Development (HUD). The City of Fort Collins has received HOME Program funds since 1995. The City is a Participating Jurisdiction (PJ) recipient of HOME funds, meaning the City is guaranteed a certain level of funding each year. The level of funding is dependent upon the total amount of funds allocated to the program by Congress and on a formula developed by HUD comprised of several measures of community need, including the extent of poverty, population, housing overcrowding, age of housing, and population growth lag in relationship to other metropolitan areas. The City’s Affordable Housing Fund (AHF) was established in 2000 to supplement federal funding from the Community Development Block Grant (CDBG) and HOME programs. One purpose of the AHF was to have a source of funding free of federal rules and regulations. Funding awarded to programs targets households in Fort Collins whose incomes are at or below 80% of Area Median Income (AMI). Those monies help fill other funding gaps and lower the cost of housing and other basic services for Fort Collins citizens who are most vulnerable and in need. By empowering and stabilizing families, these funds strengthen and improve the fundamental building blocks of Fort Collins: its neighborhoods. AVAILABLE FUNDS The FY2014 HOME grant is $539,698; during the 2014 spring funding cycle $140,131 was allocated to a housing project, Habitat for Humanity, and $53,969 for Planning and Administration. The remaining HOME funds of $345,598 are available for allocation in the fall funding cycle. HUD requires that 15%, or 2 $80,954, of the grant be set-aside for funding for Community Housing Development Organizations (CHDOs) which leaves $264,644 for housing projects. Currently there are no certified CHDOs in Fort Collins so the CHDO funds are not being allocated at this time. HOME Program Income received between April 1, 2014 and September 30, 2014 totals $158,096, of that $143,311 is for affordable housing projects and $14,785 is for planning and administration. The City’s General Fund contributes $313,047 of AHF dollars to the fall cycle of the Competitive Process. The following table summarizes the amount and sources of all available HOME and City funds for distribution during the 2014 fall cycle of the Competitive Process: Available Funding AMOUNT FUNDING SOURCE $ 345,598 FY2014 HOME Participating Jurisdiction Grant (remaining) $ 158,096 FY2014 HOME Program Income* (April 1 – September 30) $ 313,047 FY2013 Affordable Housing Fund $ 816,741 Total Available Funding * Program Income includes repayments from rehabilitation loans and home buyer assistance loans, along with repayments from development and acquisition loans. SELECTION PROCESS The Social Sustainability Department solicited requests for housing and community development projects in June 2014. This was accomplished by placing a legal advertisement in a local newspaper, sending notices via email to potential applicants, posting to the Social Sustainability web site and distributing to four partner agencies for posting. The process for the City's FY2014 fall cycle of the Competitive Process began on July 8, 2014, when the applications became available. The Competitive Process utilizes a web-based application through ZoomGrants. Applications were due Thursday, August 21, 2014. At the close of the deadline the City had received 6 proposals requesting over $2 million in funding. On September 4, 2014, all applications were made available to the CDBG Commission and the Affordable Housing Board for review. On Thursday, September 25 the Commission met to hear presentations and ask clarification questions from each applicant. At the Affordable Housing Board’s regular meeting held on Thursday, October 2, 2014 the board voted to recommend to the CDBG Commission a priority ranking of the six affordable housing proposals (see Attachment 2). The priority ranking was presented to the CDBG Commission at the beginning of the Thursday, October 16 meeting. 3 On Thursday, October 16 the Commission met for the purpose of preparing a recommendation to City Council as to which programs and projects should be funded. At this meeting the Commission reviewed the written applications, the applicant's verbal presentations, and the information provided during the question and answer session. The Commission also considered the funding guidelines contained in the Affordable Housing Strategic Plan 2010-2014 adopted by Council in July 2010. Based on the most significant affordable housing need, four goals have been identified and prioritized as: 1) Increase the inventory of affordable rental housing units 2) Preserve existing affordable housing units 3) Increase housing and facilities for people with special needs 4) Provide financial assistance for first-time homebuyers The Commission then worked on the formulation of its list of recommendations. The draft minutes from the October 16, 2014 meeting are included as Attachment 3. These minutes will be approved at the November 13, 2014 CDBG Commission 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 list of recommendations. Affordable Housing Category Applicant Project / Program Funding Request Commission’s Recommendation Unfunded Balance Percent of Request Funded HO-1 CARE Housing: Uniform Federal Accessibility Standards (UFAS) Accessibility $127,356 $0 $127,356 0% HO-2 Fort Collins Housing Authority: Administrative Fee for CDDT $26,449 $0 $26,449 0% HO-3 Fort Collins Housing Authority: Tenant Based Rental Assistance for CDDT $225,730 $0 $225,730 0% HO-4 Fort Collins Housing Authority: Village on Redwood: A Vibrant, Sustainable Community $1,500,000 $592,745 $907,255 40% HO-5 Loveland Housing Development Corp: Larimer Home Improvement $85,000 4 Program (LHIP) HO-6 Neighbor to Neighbor: Coachlight Plaza Window Phase 2 $43,257 $43,257 $0 100% Housing Total $2,007,792 $721,002 $1,286,790 36% 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. AFFORDABLE HOUSING and PUBLIC FACILITY APPLICATIONS HO-1 CARE Housing: Uniform Federal Accessibility Standards (UFAS) Accessibility Request: $127,356 Recommendation: $0 Percentage: 0% CARE Housing requested $127,356 for the necessary construction costs related to retrofit 5% of their units as accessible in compliance with the Uniform Federal Accessibility Standards (UFAS). This requirement is the result of a Fair Housing Equal Opportunity (FHEO) compliance monitoring performed by HUD in the spring of 2013. As a result of the findings of the monitoring, and a mandatory evaluation of all its properties, CARE Housing entered into a Voluntary Compliance Agreement (VCA) with FHEO in June 2013. CARE Housing agreed to make all necessary repairs and modifications within two years of the signing of the agreement. HO-2 Fort Collins Housing Authority: Administrative Fee for CDDT Request: $26,449 Recommendation: $0 Percentage: 0% The Fort Collins Housing Authority requested $26,449 for housing assistance administration that supports the currently requested Tenant Based Rental Assistance funds for the Community Dual Disorders Team (CDDT) treatment program participants. The housing eligibility, compliance, coaching, housing search, lease negotiations, housing retention and re-housing issues are among the functions of the administrative support. HO-3 Fort Collins Housing Authority: Tenant Based Rental Assistance for CDDT Request: $225,730 Recommendation: $0 Percentage: 0% As part of a the Community Dual Disorders Team’s (CDDT) collaborative service program, the Fort Collins Housing Authority submitted an application for the rental assistance component to support chronically homeless people. The $225,730 request would provide for 24 months of rental and deposit assistance for up to 15 individuals suffering from both severe mental illness and a severe substance abuse disorder. 5 HO-4 Fort Collins Housing Authority: Village on Redwood: A Vibrant, Sustainable Community Request: $1,500,000 Recommendation: $592,745 Percentage: 40% This request from the Fort Collins Housing Authority for $1,500,000 is for development costs associated with the building of a new affordable rental housing community. Once built, Village on Redwood: A Vibrant Sustainable Community will provide 72 units of affordable rental housing to households with incomes between 0-60% Area Median Income (AMI). HO-5 Loveland Housing Development Corp: Larimer Home Improvement Program (LHIP) Request: $85,000 Recommendation: $85,000 Percentage: 100% This request from the Loveland Housing Authority is to provide funding for the Larimer Home Improvement Program (LHIP) which provides low- to no-interest loans for homeowners in the City Limits of Fort Collins to address health, safety, and energy efficient repairs to their homes. The program is available to families earning no more than 80% of the Area Median Income (AMI), but the average participant is closer to 50% AMI. The Emergency Funds Program provides a one- time-only grant of up to $1,000 to very low income families (50% or below of AMI) who have emergency repair needs (e.g., no hot water, leaking or burst pipes, dangerous electrical issues). HO-6 Neighbor to Neighbor: Coachlight Plaza Windows Phase 2 Request: $43,257 Recommendation: $43,257 Percentage: 100% This request is from the non-profit agency, Neighbor to Neighbor (N2N), for Phase II of its energy efficient upgrades to its largest affordable housing community, Coachlight Plaza apartments. Specifically, N2N is seeking to replace windows in approximately 34 units at the 68-unit complex. Summary Of the $801,956 available housing funds the CDBG Commission has recommended $721,002, be allocated to three housing projects. Since no certified CHDOs applied for funding this fall, the $80,954 CHDO set aside was not allocated. The City received a total of 6 housing proposals. The Commission has recommended that 2 of the proposals receive full funding, 1 proposal receive partial funding (40%), and 3 proposals receive no funding. HOME Program Income of $14,785 received between April 1 and September 30 of this year will be allocated to planning and administration of the HOME program. $WWDFKPHQW Attachment 3 COMMUNITY DEVELOPMENT BLOCK GRANT COMMISSION FUNDING DELIBERATIONS 215 N. MASON ST., FORT COLLINS OCT. 16, 2014 5:45 P.M. COMMISSION MEMBERS PRESENT: Anita Basham Holly Carroll Gordon Coombes Catherine Costlow Jamaal Curry Margaret Long Kay Rios Kristin Stephens COMMISSION MEMBERS ABSENT: Robert Browning STAFF PRESENT: Sharon Thomas; Janet Freeman; Beth Rosen; Bruce Hendee OTHERS PRESENT: Troy Jones, Tatiana Martin and Diana Cohn of the Affordable Housing Board; a half-dozen citizens; Kate Jeracki, Note Taker. The meeting was called to order by Vice Chair Gordon Coombes at 5:45 p.m. with a quorum present. The purpose of the meeting was to allocate funds requested during the 2014 Fall Cycle of the Competitive Process. The Commission deliberated six Housing requests and no Public Service requests. A total of $801,956 was available, with a 15 percent CHDO set aside of $80,954; none of the current projects were CHDO-eligible, so that amount could not be allocated in this funding cycle. Requests totaled $2,007,792. Representatives from the Affordable Housing Board presented their priority rankings of the requests before the Commission: 1. HO-4 Fort Collins Housing Authority: Village on Redwood - $1,500,000 2. HO-6 Neighbor to Neighbor: Coachlight Plaza Windows Phase 2 - $43,257 3. HO-3 Fort Collins Housing Authority: Tenant-Based Rental Assistance for CDDT - $225,730 4. HO-5 Loveland Housing Development Corp.: LHIP - $85,000 5. HO-1 CARE Housing: UFAS Accessibility - $127,356 6. HO-2 Fort Collins Housing Authority: Administrative Fees for CDDT Program - $26,449 Affordable Housing Board Chair Troy Jones said his members had a difficult time coming to consensus on many of the requests. They generally agreed on the first and last rankings; HO-6 was the least controversial and ranked second. He and the other board members in attendance agreed that the rest of the requests received individual rankings 2 that varied greatly from member to member. While some felt strongly that HO-3 should be prioritized because it was making new rental units available, even if only temporarily, others questioned the amount of resources to be devoted to serving a relatively small number of people, for example. Jones also reviewed the City’s housing goals that his board used to evaluate each project and the point system used to determine the final priorities presented to the Commission. Acting Chair Coombes thanked the Affordable Housing Board for their thoughtful review and recommendations. He then opened commission deliberations at 6:08 p.m. Coombes and Sharon Thomas reviewed the process to be followed by the Commission and reminded observers they would not able to give input to the decision-making this evening. HO-1 CARE Housing: UFAS Accessibility -- $127,356 Anita Basham moved the Commission allocate zero funding to HO-1. The motion died for the lack of a second. Kay Rios moved to fully fund HO-1. The motion died for the lack of a second. Gordon Coombes moved to allocate zero funding for HO-1. Margaret Long seconded. Coombes said that with all the other requests before the Commission, there just wasn’t enough money to fund them all. Long agreed. Motion passed 7-1, with Kay Rios opposed. Zero funding approved. HO-2 Fort Collins Housing Authority: Administrative Fees for CDDT Program -- $26,449 Kay Rios moved the Commission allocate zero funding to HO-2; Holly Carroll seconded. Rios said she agreed with the Affordable Housing Board’s assessment that this is not a “bricks and sticks” request and not within the purview of the Commission. Carroll agreed, and suggested the Authority could find the money in its budget to support the program. Margaret Long also agreed. Rios added that it’s not that the project isn’t important, it’s that the Commission has to look at what is the best use of the taxpayers’ money. The motion was approved unanimously. 3 Zero funding approved. HO-3 Fort Collins Housing Authority: Tenant-Based Rental Assistance for CDDT -- $225,730 Kay Rios moved to allocate zero funding to HO-3. The motion died for the lack of a second. Kay Rios again moved to allocate zero funding to HO-3. Catherine Costlow seconded. Rios said she understands the need for the services, but the Commission doesn’t have the money to fund the request. She was also concerned about the amount of resources that would be spent per person. Kristin Stephens pointed out that this is a very vulnerable population, and funding these services now could save spending money on other services on the chronically homeless in the future. Margaret Long agreed, saying those services can become very expensive if case management isn’t provided early. Services can have a multiplier effect. Holly Carroll agreed, saying it’s good to help people stay off the streets. Kay Rios said she understands the need, but she was looking at the overall impact of the program. Jamaal Curry agreed, pointing out that the Commission is very low on funds to allocate and the Commission needs to keep in mind what we can do with what we have. He asked which other projects the Commission could pull money from for this one. Kristin Stephens said she couldn’t recommend any, since the funding for the Village at Redwood was already a third of what is needed. Motion passed 4-3, with Gordon Coombes abstaining, Holly Carroll, Margaret Long and Anita Basham opposed. Zero funding approved. HO-4 Fort Collins Housing Authority: Village on Redwood -- $1,500,000 Catherine Costlow moved the Commission allocate partial funding in the amount of $673,699 to HO-4; Kristin Stephens seconded. Costlow said the project supports the City’s No. 1 goal of increasing the number of rental units, and there was good leverage of funds in the proposal. Stephens agreed, pointing out that this was the top priority of the Affordable Housing Board. Kay Rios agreed, pointing out that the project had received $720,000 in the last funding cycle. 4 After clarification of funding sources by staff and the unavailability of the $80,954 CHDO set-aside, Costlow amended her motion to partially fund HO-4 in the amount of $592,745; Stephens accepted the amendment. The motion passed on a 4-3 vote, with Jaamal Curry abstaining, Kay Rios, Holly Carroll and Margaret Long opposed. Holly Carroll moved to reduce the funding amount for HO-4 by $143,311. Margaret Long seconded. Carroll said she would like to use that amount to partially fund HO-3. Long agreed. Motion failed, 5-2, with Gordon Coombes abstaining, Holly Carroll and Margaret Long in favor. Partial funding of $592,745 approved. HO-5 Loveland Housing Development Corp.: LHIP -- $85,000 Catherine Costlow moved to allocate full funding to HO-5; Kay Rios seconded. Costlow said there was good justification for preserving existing units and supporting homeowners who may be struggling. The motion passed unanimously. Full funding approved. HO-6 Neighbor to Neighbor: Coachlight Plaza Windows Phase 2 -- $43,257 Kay Rios moved to fully fund HO-6; Jaamal Curry seconded. Rios said the units to be rehabbed are in a state of disrepair and this project will address that. Curry agreed The motion passed unanimously. Full funding approved. Catherine Costlow moved to accept the funding matrix for the 2014 Fall Competitive Process as presented. Kay Rios seconded. Motion passed unanimously. The Deliberations Meeting was adjourned at 6:42 p.m. 5 CDBG Commission Special Meeting The Commission reconvened at 6:48 p.m. for a Special Meeting in Conference Room 1A. In addition to Commissioners, the meeting included Sharon Thomas, Bruce Hendee, Janet Freeman, Tatiana Nelson and Kate Jeracki. Public Comment None Approval of Minutes Anita Basham moved to approve the minutes from the August 2014 meeting as presented; Kristin Stephens seconded. Motion passed with three abstentions. Social Sustainability Department Discussion Bruce Hendee, assistant city manager for the City of Fort Collins, thanked the Commission for the difficult work they do as volunteers on behalf of the City and its citizens. He said that in the wake of the resignation of Mary Achison as the director of the Social Sustainability Department, he would be acting head of the department until an interim could be appointed. He discussed the letter from the Commission that Kay Rios described as a rebuttal to the consultants’ recommendations for changes to the Competitive Process. In light of the concerns raised by the Commission, the City has decided to slow down the process to gather more input, and he assured the Commission that the City’s Human Services mission would not be unfunded. Hendee said he would like to hear the Commission’s thoughts on the process. He added that it has been 15 years since the Commission was created, and the charge and the bylaws have not been updated although the Commission’s role has evolved, in part in response to changes at the federal funding level. He added that the role of the Affordable Housing Board will be reviewed as part of that process as well, but any changes, if they happen, will have to be approved by City Council. The consultants’ recommendations are not ready to be be implemented yet and will very likely be the subject of a Council worksession before they are. Hendee asked about the concept of the Affordable Housing Board being responsible for allocating funding for housing projects. Kay Rios said that was how it was done in the past and gave a brief history of why the CDBG Commission was created to remove the conflicts of interest that arose under that system. She also pointed out that the consultants made that recommendation with very little input from Commissioners and it seems they didn’t really understand the process. 6 Hendee said that he had asked the consultants to review the funding process in an effort to be transparent and increase community engagement. Gordon Coombes said the organizational structure can be improved, but it’s important to have a dialog with the people who are doing the work, who need to have input before any change is proposed. The Commission needs to be part of that discussion. He suggested that someone from the City come and sit through the entire Spring funding cycle, from applications to presentations and deliberations, to understand the role that the Commission plays. Kristin Stephens added that Commissioners take their job seriously and are very thoughtful about what they do and she felt blindsided when she saw the consultants’ recommendations. Hendee said he appreciates the amount of their own time Commissioners spend on reviewing documents. He said he will take their comments to heart and would like to engage in a meaningful way, starting with being on the agenda at future meetings. Tatiana Martin of the Affordable Housing Board said that her board has had similar discussions and would like to sit down with the CDBG Commission to share their thoughts. Gordon Coombes suggested a joint special meeting for a worksession, after the November Commission meeting but before the end of the year. Hendee said staff will find a date that works for everyone. Hendee assured Commissioners that even though there are changes on the horizon, the Social Sustainability Department and its commitment to the triple bottom line will continue. He thanked the Commission once again for its hard work and left the meeting at 7:18 p.m Work Plan, Periodic Review Sharon Thomas reminded Commissioners that annual Work Plan is due in February, and the bylaws need to be updated. All boards and commissions do a periodic review. In 2015 all boards and commissions under the City’s Outcome area of Community and Neighborhood Livability will be conducting a periodic review; the CDBG Commission is in this category. Kay Rios said she would take a look at the bylaws and present a draft update at the November meeting. She asked Commissioners to send her comments via email to incorporate. Staff Reports and Program Updates 7 Sharon Thomas urged everyone to attend the annual Boards and Commissions event on Nov. 6, 5:30-7 p.m., when Kay Rios will be recognized for her many years of service to the City. RSVP soon. Gordon Coombes announced that he will be stepping down from the Commission at the end of the year, as he has become executive director of Team Fort Collins. That makes three Commissioners who will be leaving – Kay Rios is term limited and Bob Browning announced his intention to leave in September – so Sharon Thomas asked Commissioners to begin recruiting possible new members. Applications are open and available on the City’s website. The next meeting of the Commission is Nov. 13, 6:30 p.m., 215 N. Mason St. Meeting adjourned at 7:46 p.m. 1 PUBLIC HEARING 2014 FALL CYCLE of the COMPETITIVE PROCESS Allocating Financial Resources to Affordable Housing Projects ATTACHMENT 4 2 THE ALLOCATION PROCESS • Staff – Prepares applications – Provides technical assistance – Reviews applications, provides comments • Affordable Housing Board – Reviews Affordable Housing proposals – Provides priority ranking and comments to CDBG Commission 3 THE ALLOCATION PROCESS • Community Development Block Grant (CDBG) Commission – Reviews written proposals – Watches presentations, submits questions – Meet to discuss proposals – Presents recommendations to Council • City Council – Conducts a Public Hearing – Makes final decision on funding allocations 4 CDBG COMMISSION DECISION PROCESS The CDBG Commission bases their funding recommendations on: – Affordable Housing Strategic Plan – Consolidated Plan – HUD Regulations – AHB Priority Rankings – Project readiness, capacity, cost per unit and performance of the applicant – Needs of the community 5 AFFORDABLE HOUSING STRATEGIC PLAN 2010-2014 Four goals based on most significant affordable housing needs: • Increase the inventory of affordable rental housing units • Preserve existing affordable housing units • Increase housing and facilities for people with special needs • Provide financial assistance for first-time homebuyers 6 CONSOLIDATED PLAN 2010-2014 Consolidated Housing & Community Development Plan or Con Plan • Improve the availability, affordability, and sustainability of housing • Provide decent housing and a suitable living environment • Improve the availability and sustainability of economic development 7 HUD – HOME REGULATIONS HOME Investment Partnership (HOME) Objectives: • Provide decent, safe affordable housing • Expand capacity of non-profit housing providers • Strengthen local government’s ability to provide housing • Leverage private-sector participation 8 2014 FALL CYCLE AVAILABLE HOUSING FUNDS *Community Housing Development Organization funds of $80,954 not allocated – no CHDO certified applicant at this time. Amount Funding Source $264,644 FY2013 HOME Grant (remaining) $143,311 FY2013 HOME Program Income $313,047 Affordable Housing Funds $721,002 Total Available Funds* ** **$14,785 in HOME PI Admin Fees (not included in total available funds) are being appropriated to the administration of the City’s HOME program. 9 FUNDING REQUESTS Project / Program Request CARE Housing: Uniform Federal Accessibility Standards (UFAS) Accessibility $127,356 FCHA: Administrative Fees for Community Dual Disorders Treatment (CDDT) Program $26,449 FCHA: Tenant Based Rental Assistance (TBRA) for CDDT $225,730 FCHA: Village on Redwood: A Vibrant, Sustainable Community $1,500,000 Loveland Housing Development Corp: Larimer Home Improvement Program (LHIP) $85,000 Neighbor to Neighbor: Coachlight Plaza Windows – 2 $43,257 Total Funding Requests $2,007,792 10 FUNDING REQUESTS / RECOMMENDATONS Project / Program Request Recommended Amount Unfunded Balance CARE Housing: UFAS $127,356 $0 $127,356 FCHA: CDDT Admin $26,449 $0 $26,449 FCHA: TBRA for CDDT $225,730 $0 $225,730 FHCA: Redwood $1,500,000 $592,745 $907,255 Loveland Housing: LHIP $85,000 $85,000 $0 N2N: Coachlight Plaza $43,257 $43,257 $0 Total $2,007,792 $721,002 $1,286,790 11 AFFORDABLE HOUSING PROPOSALS • CARE Housing: UFAS Accessibility 12 AFFORDABLE HOUSING PROPOSALS Continued • FCHA: Admin Fees for CDDT • FCHA: TBRA for CDDT • FCHA: Village on Redwood: A Vibrant, Sustainable Community 13 AFFORDABLE HOUSING PROPOSALS Continued • Loveland Housing Development Corp: LHIP • Neighbor to Neighbor: Coachlight Plaza 14 THANK YOU! Staff recommends adoption of the recommendations presented by the CDBG Commission. - 1 - RESOLUTION 2014-041 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING THE PROGRAMS AND PROJECTS THAT WILL RECEIVE FUNDS FROM THE HOME INVESTMENT PARTNERSHIP PROGRAM AND THE CITY’S AFFORDABLE HOUSING FUND WHEREAS, the Home Investment Partnership (HOME) Program is an ongoing grant administration program funded by the Department of Housing and Urban Development (HUD); and WHEREAS, the City has received HOME Program funds since 1994; and WHEREAS, the City’s Affordable Housing Fund provides General Fund money for use in assisting affordable housing programs and projects; and WHEREAS, on January 18, 2000, the City Council approved Resolution 2000-13, formally adopting a competitive process for the allocation of City financial resources to affordable housing programs and projects, and community development activities; and WHEREAS, on October 16, 2014, the CDBG Commission met for the purpose of preparing a recommendation to the City Council as to which programs and projects should be funded with FY2014 HOME grant funds and funds from the City’s Affordable Housing Fund; and WHEREAS, as required by HUD regulations, a 30-day public comment period on the proposed allocation of CDBG and HOME funds as recommended by the CDBG Commission began on October 21, 2014, and ended on November 18, 2014; and WHEREAS, to date no public comments have been received; and WHEREAS, the City Council has considered the recommendations of the CDBG Commission, and has determined that the City’s 2014 allocation should be made as set out in this Resolution. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That City staff is hereby authorized to submit an application to HUD as follows: - 2 - Housing Category Applicant Project/Program Funding Request Commission’s Recommended Funding Unfunded Balance Percent of Request Funded CARE Housing: Uniform Federal Accessibility Standards (UFAS) Accessibility $127,356 $0 $127,356 0% Fort Collins Housing Authority: Administrative Fee for the Community Dual Disorders Treatment (CDDT) Program $26,449 $0 $26,449 0% Fort Collins Housing Authority: Tenant Based Rental Assistance for CDDT $225,730 $0 $225,730 0% Fort Collins Housing Authority: Village on Redwood: A Vibrant, Sustainable Community $1,500,000 $592,745 $907,255 40% Loveland Housing Development Corp: Larimer Home Improvement Program (LHIP) $85,000 $85,000 $0 100% Neighbor to Neighbor: Coachlight Plaza Windows Phase 2 $43,257 $43,257 $0 100% Housing Total $2,007,792 $721,002 $1,286,790 Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 18th day of November, A.D. 2014. _________________________________ Mayor ATTEST: _____________________________ City Clerk - 1 - ORDINANCE NO. 167, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED REVENUE IN THE HOME INVESTMENT PARTNERSHIP PROGRAM 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 received unanticipated HOME Program income in the amount of $158,096; 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 2014 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 that there is hereby appropriated for expenditure from unanticipated program income revenue, upon receipt thereof, in the HOME Program Fund the sum of ONE HUNDRED FIFTY-EIGHT THOUSAND NINETY-SIX DOLLARS ($158,096), for approved HOME Program projects. - 2 - Introduced, considered favorably on first reading, and ordered published this 18th day of November, A.D. 2014, and to be presented for final passage on the 2nd day of December, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 2nd day of December, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk $85,000 (grant) $0 100%