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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/19/2018 - ITEMS RELATING TO THE COMPLETION OF THE 2018 SPRINAgenda Item 3 Item # 3 Page 1 AGENDA ITEM SUMMARY June 19, 2018 City Council STAFF Adam Molzer, Grant & Community Partnership Coordinator Ingrid Decker, Legal SUBJECT Items Relating to the Completion of the 2018 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. 070, 2018, Appropriating Unanticipated Revenue in the Community Development Block Grant Fund. B. Second Reading of Ordinance No. 071, 2018, Appropriating Unanticipated Revenue in the HOME Investment Partnerships Fund. Ordinance No. 070, 2018 appropriates the City’s FY2018 Community Block Grant (CDBG), Entitlement Grant from the Department of Housing and Urban Development (HUD), and CDBG Unanticipated Program Revenue Jurisdiction Grant from the Department of Housing and Urban Development (HUD), and HOME Unanticipated Program Revenue from FY2017. Ordinance No. 071, 2018 appropriates the City’s FY2018 HOME Participating Jurisdiction Grant from the Department of Housing and Urban Development (HUD), and HOME Unanticipated Program Revenue from FY2017. These ordinances were unanimously adopted on First Reading on June 5, 2018. STAFF RECOMMENDATION Staff recommends adoption of both Ordinances on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, June 5, 2018 (w/o attachments) (PDF) 2. Ordinance No. 070, 2018 (PDF) 3. Ordinance No. 071, 2018 (PDF) Agenda Item 7 Item # 7 Page 1 AGENDA ITEM SUMMARY June 5, 2018 City Council STAFF Adam Molzer, Grant & Community Partnership Coordinator Ingrid Decker, Legal SUBJECT Items Relating to the Completion of the 2018 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 2018-054 Approving the Programs and Projects that Will Receive Funds from the Federal Community Development Block Grant Program, the HOME Investment Partnerships Program, the City’s Affordable Housing Fund, and the City’s Human Services Program. B. Public Hearing and First Reading of Ordinance No. 070, 2018, Appropriating Unanticipated Revenue in the Community Development Block Grant Fund. C. Public Hearing and First Reading of Ordinance No. 071, 2018, Appropriating Unanticipated Revenue in the HOME Investment Partnerships Fund. The purpose of this item is to approve funding recommendations of the 2018 Spring Cycle of the Competitive Process and appropriate federal dollars. Resolution 2018-054 will complete the 2018 Spring Cycle of the Competitive Process for allocating $5,205,993 in City financial resources to affordable housing and public facility projects, human service programs and administration of the programs. Ordinance No. 070, 2018 appropriates the City’s FY2018 CDBG Entitlement Grant from the Department of Housing and Urban Development (HUD), and CDBG Unanticipated Program Revenue from FY2017. Ordinance No. 071, 2018 appropriates the City’s FY2018 HOME Participating Jurisdiction Grant from the Department of Housing and Urban Development (HUD), and HOME Unanticipated Program Revenue from FY2017. STAFF RECOMMENDATION Staff recommends adoption of the Resolution and both Ordinances on First Reading. BACKGROUND / DISCUSSION Resolution 2018-054 establishes which programs and projects will receive funding with CDBG, HOME, AHF and HSP funds for the 2018 program year. CDBG and HOME are federal dollars allocated through HUD. AHF and HSP funds are allocated from the General Fund (GF) and Keep Fort Collins Great (KFCG). In 2018 the total available dollar amount is $5,205,993. The following table shows available dollars in each funding category: Agenda Item 7 Item # 7 Page 2 FY2018 Funding Categories Funding Source Amount FY2018 Housing (combined federal and City funds) $3,970,661 FY2018 Human (Public) Service (combined federal and City funds) $925,083 FY 2018 Planning and Administration (federal funds) $310,249 Total $5,205,993 Available federal money for FY2018 is $3,922,540. These funds are sourced from 6 categories designated by HUD, including: FY2018 Entitlement Grants (CDBG and HOME – new funding), FY2017 Unanticipated Program Revenue (CDBG and HOME – new funding), Prior Year Funds (CDBG and HOME – reappropriated). Unanticipated Revenue Funds include repayments from loans issued for rehabilitation, homebuyer assistance, acquisition and development. Prior Year Funds represent previously Council-committed funds that are available for reallocation in the housing category only. The Prior Year Funds (CDBG and HOME, FY2017) are available to contract during the current program year, HUD FY2017. The FY2017 HUD regulations allow for the following distribution:  15% of CDBG program income received in the prior year for Human (Public) Services  10% of HOME program income received during the program year to be used for planning and program administration HUD regulations also require a 15% set-aside of the FY2018 HOME Entitlement Grant ($127,005), for agencies certified as Community Housing Development Organizations (CHDOs). Fort Collins currently has one CHDO, Habitat for Humanity, which is recommended to receive $80,000 of this set-aside for their FY2018 Poudre Build project. Total federal contribution to the Housing category is $3,445,614. The maximum limit allowed by HUD regulations in the Human (Public) Service category for the CDBG Entitlement grant and current year CDBG Program Income (received 10/01/17 thru 03/31/18) is 15%. Total federal contribution to the Human (Public) Service category is $166,677: $160,982 from the FY2018 CDBG Entitlement grant and $5,695 from CDBG FY2017 Unanticipated Program Income. HUD regulations allow a maximum of 20% of the CDBG Entitlement grant ($214,642) to be used for CDBG planning and program administration. HUD regulations allow a maximum of 10% of HOME Entitlement grant ($84,670) and HOME Unanticipated Revenue ($10,937) (received 10/01/17 thru 03/31/18) to be used for CDBG planning and program administration. Total federal contribution to the Planning and Program Administration category is $310,249. The following table provides a summary of 2018 federal funding sources for Housing, Human (Public) Service and Planning/Program Administration: Agenda Item 7 Item # 7 Page 3 FEDERAL FUNDS Funding Source Total Funds Housing Human (Public) Service Planning/Admin FY18 CDBG Entitlement Grant $ 1,073,214 $ 697,590 $ 160,982 $ 214,642 FY17 Unanticipated Revenue CDBG $ 192,549 $ 186,854 $ 5,695 Prior Year CDBG Funds $ 904,747 $ 904,747 FY18 HOME Entitlement Grant $ 846,700 $ 762,030 $ 84,670 FY17 Unanticipated Revenue HOME $ 515,534 $ 504,597 $ 10,937 Prior Year HOME Funds $ 389,796 $ 389,796 TOTAL Federal Funds $ 3,922,540 $ 3,445,614 $ 166,677 $ 310,249 The City’s contribution to the Housing category is $525,047. The City’s contribution to the Human (Public) Service category is $758,406. City Funds do not contribute towards planning and program administration. The following table provides a summary of 2018 City Funding for Housing and Human (Public) Service, including differentiation between General Fund and KFCG sources for each: CITY FUNDS Funding Source Total Funds Housing Human (Public) Service Planning / Admin Human Service Program (GF) $ 385,119 $ 385,119 Affordable Housing Fund (GF) $ 325,047 $ 325,047 KFCG $ 573,287 $ 200,000 $ 373,287 TOTAL City Funds $ 1,283,453 $ 525,047 $ 758,406 COMBINED FUNDING TOTALS: FEDERAL + CITY Total Funds Housing Human (Public) Service Planning / Admin $ 5,205,993 $ 3,970,661 $ 925,083 $310,249 The City received 44 housing, public facility and human (public) service applications totaling $6,910,293. In the housing category, 5 proposals were received totaling $5,500,000. There is a shortage in Housing dollars of Agenda Item 7 Item # 7 Page 4 FY2018 Funding Requests by Category Category Number of Applications Available Funding Requested Funding Available - Request Difference Administration - CDBG $214,642 $214,642 $0 Administration - HOME $95,607 $95,607 $0 Housing 5 $3,970,661 $5,500,000 - 1,576,344 * Human (Public) Service & Public Facility 39 $925,083 $1,410,293 - $485,210 Totals 44 $5,205,993 $7,220,542 - $2,061,554 * HUD regulations require a 15% set-aside for an eligible CHDO-approved project. The remaining CHDO set- aside amount, after the FY2018 Habitat for Humanity project allocation, is $47,005. These funds will be committed to a CHDO-eligible project during a future grant process. ($127,005 - $80,000 = $47,005) 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 FY2018, the total amount of federal funds available for allocation is $3,922,540 and the City’s contribution is $1,283,453. 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’ workforce can reside within the community. This means there is an available labor pool within the city, which is a positive benefit to economic sustainability. Human (Public) Service programs contribute to economic sustainability and homelessness prevention by providing such programs as education, childcare, counseling, and rent assistance, so workers can maintain their employment and housing. By providing funding to these programs, 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 12, 2018. The Commission read all applications (Attachment 2), listened to presentations by each applicant, and asked clarifying questions. In addition, in the Housing category, they reviewed the priority rankings of the Affordable Housing Board (Attachment 3), the goals of the Affordable Housing Strategic Plan and the priorities of the HUD required Five-Year Consolidated Plan (Con Plan). In the Human (Public) Service category they considered the performance of current grantees, the theme areas of the Social Sustainability Strategic Plan, the Con Plan and community needs. The following tables present the allocations recommended by the Commission to City Council within each major category: Planning and Administration Category Applicant Project/Program Funding Request Recommended Funding Unfunded Balance Percent of Request Funded City of Fort Collins: CDBG Administration/Planning $214,642 $214,642 $0 100% City of Fort Collins: HOME Agenda Item 7 Item # 7 Page 5 In the Housing category, 5 proposals were received. The CDBG Commission is recommending four of the five housing proposals for funding; two for full funding and two for partial. One proposal received $0 funding. There was a funding gap of $1,576,344. 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 CARE Housing: UFAS $400,000 $220,318 $179,682 55% DMA Plaza: Rehabilitation $2,500,000 $2,500,000 $0 100% Habitat for Humanity: Poudre Build #4 $80,000 $80,000 $0 100% Housing Catalyst: Mason Place Permanent Supportive Housing $2,000,000 $1,123,338 $876,662 56% Neighbor to Neighbor: 20-Year Rehab at 613 & 619 Conifer $520,000 $0 $520,000 0% Housing Total $5,500,000 $3,923,656 $1,576,344 71% In the Human (Public) Service and Public Facility category 39 proposals were received. The CDBG Commission is recommending 34 of the 39 for funding, ranging from 28% to 100% of proposal’s request. Five proposals are not being recommended for funding. There is a funding gap of $485,210. The recommendation for the Public Facility application is for no funding. Those recommendations are listed in the table below: Human (Public) Service & Public Facility Categories Applicant Project/Program Funding Request Commission’s Recommended Funding Unfunded Balance Percent of Request Funded Alliance for Suicide Prevention: Prevention Education Programs $10,000 $4,200 $5,800 42% B.A.S.E. Camp: Childcare Scholarships $70,000 $52,500 $17,500 75% Boys & Girls Clubs of Larimer County: Great Futures Start Here $30,000 $23,000 $7,000 77% CASA Program: Court Appointed Special Advocates $34,250 $16,500 $17,750 48% CASA Program: Harmony House Supervised Visitation $32,965 $15,000 $17,965 46% Catholic Charities: Senior Services $35,000 $28,518 $6,482 81% Catholic Charities: The Mission Shelter $70,000 $35,098 $34,902 50% Agenda Item 7 Item # 7 Page 6 Applicant Project/Program Funding Request Commission’s Recommended Funding Unfunded Balance Percent of Request Funded Elderhaus Adult Day Program: Community Based Therapeutic Care $53,000 $46,067 $6,933 87% Faith Family Hospitality: Homeless Family Services $30,000 $18,000 $12,000 60% Food Bank for Larimer County: Kids Café $30,000 $24,000 $6,000 80% Homeless Gear: Homeless Gear Programs $35,000 $34,000 $1,000 97% Homeless Gear: Murphy Center Programs $36,000 $31,162 $4,838 87% Kids at Heart: Fundango $13,000 $0 $13,000 0% Larimer County Partners: One to One Mentoring $15,000 $7,500 $7,500 50% Lutheran Family Services: Geriatric Care Management $29,002 $0 $29,002 0% Neighbor to Neighbor: Homelessness Prevention & 1st Month’s Rent $80,000 $80,000 $0 100% Neighbor to Neighbor: Housing Counseling $60,000 $35,000 $25,000 58% Partnership for Age-Friendly Communities: A Little Help $40,000 $18,000 $22,000 45% Project Self-Sufficiency: Creating Pathways to Self-Sufficiency $35,000 $30,000 $5,000 86% Respite Care: Childcare Scholarships $40,000 $32,607 $7,393 82% SAVA Center: Sexual Assault Victim Services $50,000 $28,500 $21,500 57% SummitStone Health Partners: Community Behavioral Health Treatment Program $30,000 $28,518 $1,482 95% SummitStone Health Partners: Mental Health Services at the Murphy Center $30,000 $20,839 $9,161 69% Agenda Item 7 Item # 7 Page 7 Applicant Project/Program Funding Request Commission’s Recommended Funding Unfunded Balance Percent of Request Funded Volunteers of America: Home Delivered Meal Service $39,000 $35,000 $4,000 90% Human (Public) Service & Public Facility Total $1,410,293 $925,083 $485,210 66% 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 $310,249 6% Housing $3,923,656 76% Human (Public) Service & Public Facility $925,083 18% Total $5,158,988 ** 100% ** The total funding recommendation is $47,005 below the total funding amount available due to the previously referenced CHDO withholding. The justifications for the CDBG Commission’s recommendations can be found in Attachment 1. PUBLIC OUTREACH Applicants had the opportunity to make presentations to the CDBG Commission on four evenings in March 2018 and the CDBG Commission held a meeting on April 12, 2018 to deliberate the proposals and make funding recommendations. A meeting that combined the CDBG Commission and the Affordable Housing Board was also held on March 7, 2018 to discuss the merits of all proposals and identify follow-up questions, without any funding discussion. 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 24, 2018 presenting the list of recommended funding for programs/projects and indicated the public comment period would start on May 4, 2018, and end on June 5, 2018. The Council meeting on June 5, 2018 will serve as a Public Hearing and comments will be recorded and reported to HUD in August. The public notice of funding recommendations was placed on the Social Sustainability Department’s website. It was also distributed to applicants, current grant recipients, and 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. The public comments received have largely been statements of gratitude from the applying agencies, as well as a limited number of statements of concerns from applying agencies, which have been resolved. ATTACHMENTS 1. Community Development Block Grant Commission minutes, April 12, 2018 (PDF) 2. CDBG Summary of Organizations requestion funding and recommendations (PDF) 3. Affordable Housing Board Priority Ranking (PDF) -1- ORDINANCE NO. 070, 2018 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED REVENUE IN THE COMMUNITY DEVELOPMENT BLOCK GRANT FUND WHEREAS, the City estimates it will receive in federal fiscal year 2018-2019 unanticipated revenue in the form of federal Community Development Block Grant (“CDBG”) funds from the Department of Housing and Urban Development (“HUD”) totaling $1,073,214; and WHEREAS, the City also has identified unprogrammed CDBG funds through a reconciliation with the federal Integrated Disbursement & Information System (“IDIS”) of $192,549; and WHEREAS, on June 5, 2018, the City Council adopted Resolution 2018-054, approving the CDBG Commission’s recommendation as to which programs and projects should receive CDBG funds in the 2018 funding cycle; 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, this appropriation benefits the public health, safety and welfare of Fort Collins residents and serves the public purpose of providing safe, affordable public housing and human services, contributing to economic stability and homelessness prevention for Fort Collins residents; and WHEREAS, the City Manager has determined that the appropriation of all unanticipated CDBG grant and other revenue as described herein will not result in total appropriations in excess of the current estimate of actual and anticipated revenues for fiscal year 2018. 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 grant revenue in the federal fiscal year 2018-2019 from HUD into the Community Development Block Grant Fund, the sum of ONE MILLION SEVENTY-THREE THOUSAND TWO HUNDRED -2- FOURTEEN DOLLARS ($1,073,214), upon receipt thereof for federal fiscal year 2018-2019 Community Development Block Grant projects. Section 3. That there is hereby appropriated for expenditure from unanticipated revenue from a reconciliation of funding between the City JDE system and the federal IDIS system into the Community Development Block Grant Fund, the sum of ONE HUNDRED NINETY- TWO THOUSAND FIVE HUNDRED FORTY-NINE DOLLARS ($192,549), for approved Community Development Block Grant projects. Introduced, considered favorably on first reading, and ordered published this 5th day of June, A.D. 2018, and to be presented for final passage on the 19th day of June, A.D. 2018. __________________________________ Mayor Pro Tem ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 19th day of June, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk -1- ORDINANCE NO. 071, 2018 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 reauthorizes and continues to fund the program; and WHEREAS, the City estimates it will receive in federal fiscal year 2018-2019 unanticipated revenue in the form of HOME Program funds from HUD totaling is $846,700; and WHEREAS, the City received unanticipated HOME Program income in the amount of $515,534; 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, the City Manager 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 2018 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; and WHEREAS, this appropriation benefits the public health, safety and welfare of Fort Collins residents and serves the public purpose of providing safe, affordable housing for low-income residents. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: -2- 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 2018-2019 in the HOME Program Fund the sum of EIGHT HUNDRED FORTY-SIX THOUSAND SEVEN HUNDRED DOLLARS ($846,700), upon receipt from federal fiscal year 2018-2019 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 FIVE HUNDRED FIFTEEN THOUSAND FIVE HUNDRED THIRTY-FOUR DOLLARS ($515,534), for approved HOME Program projects. Introduced, considered favorably on first reading, and ordered published this 5th day of June, A.D. 2018, and to be presented for final passage on the 19th day of June, A.D. 2018. __________________________________ Mayor Pro Tem ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 19th day of June, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk Teaching Tree Early Childhood Learning Center: Childcare Scholarships $60,000 $51,000 $9,000 85% TEAM Wellness and Prevention: Engaging Families for Prevention $25,500 $0 $25,500 0% The Family Center/La Familia: Childcare Scholarship Program $50,000 $42,000 $8,000 84% The Growing Project: Gardening Education & Healthy Food Access for Youth $21,500 $6,000 $15,500 28% The Matthews House: Building Employment Skills $8,100 $3,000 $5,100 37% The Matthews House: Empowering Youth Program $30,000 $20,000 $10,000 67% The Salvation Army: Rent & Utility Assistance $20,000 $0 $20,000 0% Turning Point Center for Youth and Family Development: Crisis Intervention Services $30,000 $13,000 $17,000 43% Voices Carry Child Advocacy Center: Family Advocacy & Victim Services $26,500 $23,000 $3,500 87% The Center for Family Outreach: Scholarship Program $10,000 $5,000 $5,000 50% ChildSafe Colorado: Child Sexual Abuse Treatment Program $43,265 $38,000 $5,265 88% ChildSafe Colorado: Capital Campaign (Public Facility) $50,000 $0 $50,000 0% Colorado Health Network: Northern Colorado AIDS Project (NCAP) $15,000 $7,500 $7,500 50% Crossroads Safehouse: Advocacy Project $60,137 $39,500 $20,637 66% Disabled Resource Services: Access to Independence $33,074 $33,074 $0 100% Administration/Planning $95,607 $95,607 $0 100% Administration/Planning Total $310,249 $310,249 $0 100% $1,576,344 *. In the Human (Public) Service and Public Facility category 39 applications were received totaling $1,410,293. There is a shortage in Human (Public) Service dollars of $485,210. The following table summarizes the amount of funding requests compared to the amount of funding available for each of the categories: