HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/02/2014 - SECOND READING OF ORDINANCE NO. 167, 2014, APPROPRAgenda Item 4
Item # 4 Page 1
AGENDA ITEM SUMMARY December 2, 2014
City Council
STAFF
Sharon Thomas, CDBG/HOME Program Administrator
Beth Sowder, Interim Director of Social Sustainability
SUBJECT
Second Reading of Ordinance No. 167, 2014, Appropriating Unanticipated Revenue in the Home Investment
Partnership Program Fund.
EXECUTIVE SUMMARY
Ordinance No. 167, 2014, unanimously adopted on First Reading on November 18, 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 Ordinance on Second Reading.
ATTACHMENTS
1. First Reading Agenda Item Summary, November 18, 2014 (w/o attachments) (PDF)
2. Ordinance No. 167, 2014 (PDF)
Agenda 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:
ATTACHMENT 1
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)
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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