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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 06/07/2016 - ITEMS RELATING TO THE COMPLETION OF THE 2016 SPRINAgenda Item 3 Item # 3 Page 1 AGENDA ITEM SUMMARY June 7, 2016 City Council STAFF Sharon Thomas, CDBG/HOME Program Administrator SUBJECT Items Relating to the Completion of the 2016 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, Federal HOME Investment Partnerships (HOME) Program the City’s Affordable Housing Fund (AHF) and the City’s Human Services Program (HSP). EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 062, 2016, Appropriating Unanticipated Revenue in the Community Development Block Grant Fund. B. Second Reading of Ordinance No. 063, 2016, Appropriating Unanticipated Revenue in the HOME Investments Partnerships Fund. These Ordinances, unanimously adopted on First Reading on May, 17, 2016, approve funding recommendations of the 2016 spring cycle of the Competitive Process and appropriate federal dollars. Ordinance No. 062, 2016 appropriates the City’s FY2016 CDBG Entitlement Grant from the Department of Housing and Urban Development (HUD), and CDBG unprogrammed funds and Program Income from FY2015 and FY2014. Ordinance No. 063, 2016, appropriates the City’s FY2016 HOME Participating Jurisdiction (PJ) Grant from HUD and HOME Program Income from FY 2015 and FY 2014. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary May 17, 2016 (w/o attachments) (PDF) 2. Ordinance No. 062, 2016 (PDF) 3. Ordinance No. 063, 2016 (PDF) Agenda Item 8 Item # 8 Page 1 AGENDA ITEM SUMMARY May 17, 2016 City Council STAFF Sharon Thomas, CDBG/HOME Program Administrator SUBJECT Items Relating to the Completion of the 2016 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, Federal HOME Investment Partnerships (HOME) Program the City’s Affordable Housing Fund (AHF) and the City’s Human Services Program (HSP). EXECUTIVE SUMMARY A. Public Hearing and Resolution 2016-040, Approving the Programs and Projects that Will Receive Funds from the Federal Community Development Block Grant Program, the HOME Investment Partnerships Program, and the City’s Affordable Housing Fund and Human Services Program. B. First Reading of Ordinance No. 062, 2016, Appropriating Unanticipated Revenue in the Community Development Block Grant Fund. C. First Reading of Ordinance No. 063, 2016, Appropriating Unanticipated Revenue in the HOME Investments Partnerships Fund. The purpose of this item is to approve funding recommendations of the 2016 spring cycle of the Competitive Process and appropriate federal dollars. Resolution 2016-040 completes the 2016 spring cycle of the Competitive Process for allocating $2,670,034 in City financial resources to affordable housing projects, public service programs and administration of the programs. Ordinance No. 062, 2016 appropriates the City’s FY2016 CDBG Entitlement Grant from the Department of Housing and Urban Development (HUD), and CDBG unprogrammed funds and Program Income from FY2015 and FY2014. Ordinance No. 063, 2016, appropriates the City’s FY2016 HOME Participating Jurisdiction (PJ) Grant from HUD and HOME Program Income from FY 2015 and FY 2014. STAFF RECOMMENDATION Staff recommends adoption of the Resolution and Ordinances on First Reading. BACKGROUND / DISCUSSION Resolution 2016-XXX, establishes which programs and projects will receive funding with CDBG, HOME, AHF and HSP funds for the FY2016 program year that begins October 1, 2016. AHF and HSP funds are allocated from the General Fund (GF) and Keep Fort Collins Great (KFCG). In 2016 the total available dollar amount is $3,623,535. The following table shows available dollars in each funding category: FY2016 Funding Categories Funding Source Amount FY2016 Housing $2,501,907 FY2016 Public (Human) Service $809,857 FY 2016 Planning and Administration $311,771 ATTACHMENT 1 Agenda Item 8 Item # 8 Page 2 Total $3,623,535 Available CDBG money for FY2016 is $1,491,713. Unprogrammed funds represent previously committed funds that are available for re-allocation in the housing category only. Program income includes repayments from loans issued for rehabilitation, homebuyer assistance, acquisition and development. HUD regulations allow a maximum of 20% of CDBG Entitlement grant and current year (FY2015) Uncommitted Program Income funds to be used for CDBG planning and program administration. This equals $189,977 of Entitlement and $36,968 of Uncommitted funds, for a total of $226,945. The maximum limit allowed by HUD regulations in the Public (Human) Service category for the CDBG Entitlement grant and current year CDBG Program Income is 15%. Allowable CDBG funds in this category total $170,209: $142,483 from the CDBG Entitlement grant and $27,726 from CDBG FY2015 Program Income. The following table provides a summary of 2016 CDBG funding sources: FY2016 CDBG Funding Sources Funding Source Amount FY2016 CDBG Entitlement (EN) Grant $949,887 FY2015 CDBG Unprogrammed $286,393 FY2014 CDBG Unprogrammed $3,684 FY2015 CDBG Program Income Uncommitted EN $184,845 FY2014 CDBG Program Income Uncommitted EN $66,904 Total $1,491,713 The City’s contribution to Public (Human) Service category is $639,648. The following table provides a summary of 2016 HSP funding sources: FY2016 HSP Funding Sources Funding SourceAmount FY2016 HSP GF $389,601 FY2016 HSP KFCG $250,047 Total $639,648 In January of 2015 City Council approved allocating HOME and AHF funds in the spring cycle of the Competitive Process rather than holding them for allocation in the fall (Resolution 2015-009). Therefore, all funds are available for allocation during the spring cycle of the Competitive Process. Agenda Item 8 Item # 8 Page 3 Total HOME money for FY2016 is $967,127. HUD regulations allow a maximum of 10% of the HOME Grant ($53,967) and HOME FY2015 Program Income ($30,859) for a total of $84,826, to be used for HOME program administrative purposes. HUD regulations also require a 15% set-aside of the HOME Grant, $80,952 and the current year HOME Program Income, $77,923, for Community Housing Development Organizations (CHDOs). Fort Collins currently has one CHDO, Habitat for Humanity. The following table summarizes the 2016 HOME funding sources: FY2016 HOME Funding Sources Funding Source Amount FY2016 HOME PJ Grant $539,676 FY2015 HOME Program Income $308,747 FY2014 HOME Program Income $118,704 Total $967,127 The City’s contribution to the housing category is $525,047. The following table summarizes the 2016 AHF funding sources: FY2016 AHF Funding Sources Funding SourceAmount FY2016 AHF GF $325,047 FY2016 AHF KFCG $200,000 Total $525,047 The following table summarizes the total funding amount and sources of all available CDBG, HOME, HSP and AHF funds for distribution during the 2016 spring cycle of the Competitive Process and how the funding is distributed among the three categories: Available Funding for FY2016 Funding Source Funding Amount Administration CDBG Grant (Maximum of 20% of CDBG Grant) Administration HOME Grant (Maximum of 10% of HOME Grant) Public Service (Maximum of 15% of CDBG Grant) Housing FY2016 CDBG Grant $949,887 $189,977 $0 $142,483 $617,427 FY2015 CDBG Unprogrammed $286,393 $0 $0 $0 $286,393 FY2014 CDBG Unprogrammed $3,684 $0 $0 $0 $3,684 FY2015 CDBG PI Uncommitted $184,845 $36,968 $0 $27,726 $120,151 FY2014 CDBG PI Uncommitted Agenda Item 8 Item # 8 Page 4 FY2016 AHF KFCG $200,000 $0 $0 $0 $200,000 Total Available Funding $3,623,535 $226,945 $84,826 $809,857 $2,501,9 07 The City received 42 housing and public service applications totaling $3,958,263. In the housing category, 5 proposals were received totaling $2,505,000. The Fort Collins Housing Authority withdrew their proposal for $1,600,000 prior to the funding deliberations meeting, leaving 4 applications with requests of $905,000. An excess of $1,596,907 of housing dollars is available for allocation in the 2016 fall cycle of the Competitive Process. In the Public Service category 37 applications were received totaling $1,453,263. There is a shortage in public service dollars of $643,406. Staff requested $311,771 of CDBG and HOME dollars for program administration. The following table summarizes the amount of funding requests compared to the amount of funding available for each of the categories: FY2016 Funding Requests by Category Category Number of Applications Available Funding Requested Funding Available - Request Difference Administration - CDBG * $226,945 $226,945 $0 Administration - HOME * $84,826 $84,826 $0 Housing 4 $2,501,907 $905,000 $1,596,907 Public (Human) Services 37 $809,857 $1,453,263 -$643,406 Totals 41 $3,623,535 $2,670,034 $953,501 CITY FINANCIAL IMPACTS The CDBG and HOME programs provide federal funds from HUD to the City of Fort Collins which can be allocated to housing and community development related programs and projects and administration of the funds, thereby, reducing the demand on the City’s General Fund budget to address such needs. In FY2016, the total amount of federal funds available for allocation is $2,458,840 and the City’s contribution is $1,164,695. These dollars allow applicants to leverage other funding sources to provide needed services in our community. 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) service programs contribute to economic sustainability and homelessness prevention by providing such programs as education, childcare, rent assistance and housing counseling, so workers can maintain their employment and housing. 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 other available funds to serve their clients. BOARD / COMMISSION RECOMMENDATION The CDBG Commission recommends adoption of their funding recommendations made on April 14, 2016. The Commission read all applications, watched presentations by each applicant, and asked clarifying questions. In addition, they reviewed the priority rankings of the Affordable Housing Board and the goals of the Affordable Housing Strategic Plan. In the Public Service category they considered the theme areas of the Social Sustainability Strategic Plan. The following tables present the allocations recommended by the Commission to City Council within each major category: Agenda Item 8 Item # 8 Page 5 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/Planning $226,945 $226,945 $0 100% City of Fort Collins: HOME Administration/Planning $84,826 $84,826 $0 100% Administration/Planning Total $311,771 311,771 $0 100% With enough funding dollars in the Housing category, and with good proposals submitted, the CDBG Commission is recommending full funding for all four housing proposals. Those recommendations are listed in the table below: Housing Category Applicant Project/Program Funding Request Commission’s Recommended Funding Unfunded Balance Percent of Request Funded Habitat for Humanity: Harmony Cottages $480,000 $480,000 $0 100% Hendricks Communities: Northern Hotel $250,000 $250,000 $0 100% Loveland Housing Development Corp.: Larimer Home Improvement Program $150,000 $150,000 $0 100% Neighbor to Neighbor: Aztec Siding Repair and Paint $25,000 $25,000 $0 100% Housing Total $905,000 $905,000 $0 In the Public (Human) Service category 37 proposals were received and 32 are being recommended for funding, ranging from 24% to 100%. Five proposals are not being recommended for funding. There is a funding gap of $643,406. Those recommendations are listed in the table below: Public Service Category Applicant Project/Program Funding Request Commission’s Recommended Funding Unfunded Balance Percent of Agenda Item 8 Item # 8 Page 6 Bodies Program Crossroads Safehouse: Advocacy Project $68,502 $39,010 $29,492 57% Disabled Resource Services: Access to Independence $29,836 $25,000 $4,836 84% Elderhaus Adult Day Program: Community Based Therapeutic Care $56,000 $38,500 $17,500 69% Ensight Skills Center: Low Vision Program $15,000 $0 $15,000 0% Food Bank for Larimer County: Kids Café $30,000 $23,500 $6,500 78% Health District of Northern Larimer County: Dental Connections $33,450 $18,500 $14,950 55% Homeless Gear: Murphy Center Support $56,000 $30,000 $26,000 54% Homeless Gear: Program Support $30,000 $30,000 $0 100% Homelessness Prevention Initiative: Emergency Rental Assistance $40,500 $0 $40,500 0% Voices Carry (formerly Larimer County) Child Advocacy Center: Victim Services $25,000 $22,000 $3,000 88% The Matthews House: Education and Employment Center $30,000 $12,000 $18,000 40% The Matthews House: Empowering Youth Program $36,000 $20,000 $16,000 56% Neighbor to Neighbor: Housing Counseling $60,000 $32,500 $27,500 54% Neighbor to Neighbor: Rent Assistance $40,000 $39,011 $989 98% Project Self-Sufficiency: Services for Single-Parent Families $35,000 $30,000 $5,000 86% Rehabilitation and Visiting Nurse Association: Home Health Care Scholarships $35,000 $25,000 $10,000 71% Respite Care Inc.: Childcare Scholarships $35,000 $30,000 $5,000 86% SAVA Center: Sexual Assault Victim Services $50,000 $22,000 $28,000 44% SummitStone Health Partners: Community Behavioral Health Treatment Program $68,010 $25,000 $43,010 37% SummitStone Health Partners: Mental Agenda Item 8 Item # 8 Page 7 Turning Point Center for Youth and Family Development: Crisis Intervention Services $25,000 $12,500 $12,500 50% Volunteers of America: Home Delivered Meal Service $35,000 $31,000 $4,000 89% Public Service Total $1,453,263 $809,857 $643,406 56% A summary of the funding recommendations by category is presented in the following table: Funding Recommendations by Category Category Recommended Funding % of Total CDBG and HOME Program Administration $311,771 15% Housing $905,000 45% Public Service $809,857 40% Total $2,026,568 100% Justifications for the CDBG Commission’s recommendations can be found in April 14, 2016, not yet approved meeting minutes (Attachment 1). PUBLIC OUTREACH Applicants had the opportunity to make presentations to the CDBG Commission on four evenings in March, 2016 and held a meeting on April 14, 2016 to deliberate the proposals and make funding recommendations. All meetings were open to the public and added to the City calendar. HUD regulations require a 30-day public comment period on the proposed allocation of CDBG and HOME funds. Staff placed an ad in the Coloradoan newspaper on April 17, 2016 presenting the list of recommended funding for programs/projects and indicated the public comment period would start on April 18, 2016, and end on May 17, 2016. The public notice of funding recommendations was placed on the Social Sustainability Department’s website. It was also 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 households-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. CDBG Commission Deliberations April 14 2016 Draft (PDF) 2. Background and Summary of CDBG Recommendations (PDF) 3. Background on the Competitive Process (PDF) 4. CDBG and HOME Background Information (PDF) 5. CDBG Ranking Comments (PDF) -1- ORDINANCE NO. 062, 2016 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 2016-2017 unanticipated revenue in the form of federal Community Development Block Grant (“CDBG”) funds totaling $949,887; and WHEREAS, the City has received unanticipated CDBG program income in the amount of $251,749; and WHEREAS, the City also has unprogrammed CDBG 2015-2016 funds ($286,393) and unprogrammed CDBG 2014-2015 funds ($3,684) that will be reprogrammed to the 2016-2017 competitive process; 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 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 revenue in the federal fiscal year 2016-2017 into the Community Development Block Grant Fund, the sum of NINE HUNDRED FORTY-NINE THOUSAND EIGHT HUNDRED EIGHTY-SEVEN DOLLARS ($949,887), upon receipt thereof for federal fiscal year 2016-2017 Community Development Block Grant projects. Section 3. 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 TWO HUNDRED FIFTY-ONE THOUSAND SEVEN HUNDRED FORTY- -2- NINE DOLLARS ($251,749), for approved Community Development Block Grant projects. Section 4. That the unexpended and unencumbered amount of TWO HUNDRED EIGHTY-SIX THOUSAND THREE HUNDRED NINETY-THREE DOLLARS ($286,393) is hereby authorized for transfer from the 2015-2016 Community Development Block Grant Program to the 2016-2017 Community Development Block Grant Program and appropriated therein. Section 5. That the unexpended and unencumbered amount of THREE THOUSAND SIX HUNDRED EIGHTY-FOUR DOLLARS ($3,684) is hereby authorized for transfer from the 2014-2015 Community Development Block Grant Program to the 2016-2017 Community Development Block Grant Program and appropriated therein. Introduced, considered favorably on first reading, and ordered published this 17th day of May, A.D. 2016, and to be presented for final passage on the 7th day of June, A.D. 2016. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 7th day of June, A.D. 2016. __________________________________ Mayor ATTEST: _______________________________ City Clerk -1- ORDINANCE NO. 063, 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 $539,676; and WHEREAS, the City also received unanticipated HOME Program program income in the amount of $427,451; 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. -2- 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 FIVE HUNDRED THIRTY-NINE THOUSAND SIX HUNDRED SEVENTY-SIX DOLLARS ($539,676), upon receipt from federal fiscal year 2016-2017 HOME Participating Jurisdiction Grant Funds. Section 3. That there is hereby appropriated for expenditure from unanticipated program income revenue, upon receipt thereof, in the HOME Program Fund the sum of FOUR HUNDRED TWENTY-SEVEN THOUSAND FOUR HUNDRED FIFTY-ONE DOLLARS ($427,451), for approved HOME Program projects. Introduced, considered favorably on first reading, and ordered published this 17th day of May, A.D. 2016, and to be presented for final passage on the 7th day of June, A.D. 2016. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 7th day of June, A.D. 2016. __________________________________ Mayor ATTEST: _______________________________ City Clerk Health Services at the Murphy Center $26,117 $18,000 $8,117 69% Teaching Tree Early Childhood Learning Center: Childcare Scholarships $60,000 $48,500 $11,500 81% Team Wellness and Prevention (Formerly Team Fort Collins): Define Youth $50,000 $0 $50,000 0% The ARC of Larimer County: Families in Action $10,000 $0 $10,000 0% The Center for Family Outreach: Low- Income Youth Scholarship Program $15,000 $8,000 $7,000 53% The Family Center/La Familia: Scholarship Program $50,000 $40,000 $10,000 80% Request Funded Alliance for Suicide Prevention: Suicide Prevention & Mental Health Education $20,000 $4,836 $15,164 24% B.A.S.E. Camp: Childcare Scholarships $70,000 $49,000 $21,000 70% Boys & Girls Clubs of Larimer County: Great Futures Start Here $46,761 $23,000 $23,761 49% CASA Program: Court Appointed Special Advocates $30,661 $12,000 $18,661 39% CASA Program: Harmony House Supervised Visitation $30,377 $15,000 $15,377 49% Catholic Charities: Senior Services $31,440 $15,000 $16,440 48% Catholic Charities: The Mission Shelter $66,129 $30,000 $36,129 45% ChildSafe Colorado: Sexual Abuse Treatment Program $50,000 $35,000 $15,000 70% Colorado Health Network : Northern Colorado AIDS Project (NCAP) $10,000 $6,000 $4,000 60% CARE Housing: Healthy Minds and $53,480 $0 $53,480 0% $66,904 $0 $0 $0 $66,904 FY2016 HSP $389,601 $0 $0 $389,601 $0 FY2016 HSP KFCG $250,047 $0 $0 $250,047 $0 FY2016 HOME Grant $539,676 $0 $53,967 $0 $485,709 FY2015 HOME PI $308,747 $0 $30,859 $0 $277,888 FY2014 HOME PI $118,704 $0 $0 $0 $118,704 FY2016 AHF $325,047 $0 $0 $ $325,047