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HomeMy WebLinkAboutResolution - 464 - Application - HUD - Sec 8 Funding For 40 Units Of Rehab Housing, LHA - 04/10/1980RESOLUTION #464 - 4/10/80 RESOLUTION O wti A RESOLUTION APPROVING THE SUBMISSION OF AN APPLICATION FOR 40 UNITS OF QSECTION 8 MODERATE REHABILITATION HOUSING FOR LOWER INCOME FAMILIES BY THE HOUSING AUTHORITY OF THE CITY OF LUBBOCK TO THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. WHEREAS, the City of Lubbock has provided that the Housing Authority of the City of Lubbock shall provide and do certain activities and services in connection with the provision of low -rent housing; and WHEREAS, under the provisions of the Housing and Community Development Act of 1974, Section 8, as amended, the Department of Housing and Urban Develop- ment is authorized to provide financial assistance to public housing agencies for low -rent housing; and WHEREAS, the Housing Authority of the City of Lubbock is authorized by law and is willing to apply for and administer such financial assistance; and WHEREAS, the application for 40 units of Section 8 Moderate Rehabilitation Housing is consistent with the goals described in the 19.79-82 City of Lubbock Housing Assistance Plan; and WHEREAS, the City Council has determined that it would be in the best interest of the citizens of the City of Lubbock that the submission of an application for 40 units of Section 8 Moderate Rehabilitation Housing be approved; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Housing Authority of the City of Lubbock shall cause to be prepared and shall send to the Department of Housing and Urban Development an application for 40 units of Section 8 Moderate Rehabilitation Housing pursuant to the terms and provisions of the. Housing and Community Development Act of 1974 as amended. Passed by the Council this 10th day of A r11 1980. OR 'ATTEST: Evelyn Ga fga,.'City e e -Treasurer AP ROVED AS TO CONTENT: Vicki Foster, Community Development Coordinator APPROVED AS TO FORM: W. M. Mc mie, Assistant City Attorney t ' RESOLUTION #464 - 4/10/80 CHERRY POINT HOMES HUB HOMES — ---- - $15 N. ZENITH STREETPT5• 323 AVENUE "F" 2807 WEBER DRIVE 762.1101 762.4612 763-1277 Housing Authority r-_T�FAN THE CITY OF LUBBOCK LUBBOCK, TEXAS April 10, 1980 PLEASE DIRECT REPLY TO: P.O. Box 2568 '79408 Mr. Irving Statman, Area Manager Department of Housing& Urban Development 2001 Bryan Tower Dallas, Texas 75201 Re: Section 8 Moderate Rehabilitation Dear Mr. Statman: Enclosed find our Application for 40 units of Section 8 Moderate Rehabilitation. In the Notification of Funds Available, Lubbock was allocated 20 units of Section 8 Existing and 20 units of Sec- tion 8 Moderate Rehabilitation. We are requesting that the.:en- tire 40 units be alloted to Moderate Rehabilitation as we now have 180 certificates for existing. We would also request that the funding for the Existing be .Increased to match the Moderate . Rehabilitation. If further documentation is needed, please advise. Sincerely, D. C. Fair, jr. Executive Director DCF/mm Enclosure OMB No..63R-166 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT - APPLICATION/PROJECT NUMBER SECTION 8 - HOUSING ASSISTANCE PAYMENTS PROGRAM (FOR HUD USE ONLY) APPLICATION FOR MODERATE REHABILITATION (Submit an pppD_..pD❑D--- original and seven copies of this application form and attachments) 000 000 The Housing Authority of The City of Lubbock hereby requests an Annual Contributions Contract to pro - (Official Name of Public Housing Agency) vide housing assistance payments for 40 units of Section 8 Moderate Rehabilitation. ® No prior applications for Section 8 Moderate Rehabilitation have been submitted. ❑ Prior application(s) approved, disapproved, or pending. Give ACC Part 1 Number , and application/project number(s) Number of applications submitted at this time 1 MAILING ADDRESS OF PHA PHONE NUMBER •515 N. Zenith Lubbock, Texas •79403 806-762-1191 SIGNATURE ND TITL�.pF�PRA FILER AU 12ED TO SIGN THIS APPLICATION DATE •� ,,/�,i(,, Executive Director 1 April 10, 1980 A. CAL GOVERNMENT CON d0lrhENCE (LOCA L/TIES WITHAPPROVED HOUSING ASSISTANCE PLA NSl-- The J_The local government approves the submission of this application and finds it consistent with the Housing Assistance flan as specified in Section E — Need for Housing Assistance. SIGNATURE AND TITLE OF CHIEF EXECUTIVE OFFICERS OF LOCALITIES WITH APPROVED HOUSING ASSISTANCE PLANS IDENTIFIED IN SECTION B. (Attach as addendum, If necessary.J SIGNATURR AIY0 TITLE LOCALITY ferry, Town, etc.) DATE Mayor. Lubbock, Texas April 10, 1980 B. PRIMARYAREA(S) IN WHICH UNITS WILL BE REHABILITATFD LOCALITY (aty, Town, etc.)HAP COUNTY CONGRESSIONAL DISTRICT /Yes or No UNITS Lubbock Texas Yes Lubbock Vineteenth 40 Elev. Lubbock Non-elev. 6 30 4 40 Elev. Non-elev. W. 9 $two Wv rJt71J1 GLI&0VVV-..LI1'{V W041 IQ Number of units by bedroom size should be provided for each Fair Market Rent area. (Attach a separate schedule if necessary_ ) FAIR MARKET RENT (FMR) Bldg. AREAS Type NUMBER OF DWELLING UNITS BY BEDROOM COUNT Elderly, Handicapped or Disa. Family Large Family Efficiency 1 -BR 2 -BR /-BR 2 -BR 3 -BR 4 -BR 5 -Br 6 -BR TOTAL DWELLING UNITS I Elev. Lubbock Non-elev. 6 30 4 40 Elev. Non-elev. Elev. on-elev. Iev. on-elev. ley. ' on-elev. Iev. on-elev. lev. Non elev. Non -elevator building Types Likely to be Used (Detached, Semi-detached/Row, Walkup): IiUD-52515A (6-79) D. PURPOSE AND LOCATION OF PROGRAM - Indicate which (one ormore) of the Program objectives the PHA proposes to achieve with this project and demonstrate the feasibility of achieving that objective(s). (Check appropriate box(es). If boxes 2 or 3 are checked, the areas) applicable to the objectives should be identified.) 1. O Freedom of housing choice and spatial deconcentration of assisted housing into areas outside of low income and minority con- centrations. (PHAs in areas without a concentration of assisted housing may choose this objective and use the Moderate Rehablli- tation Program In their jurisdiction to provide for dispersal of assisted housing.) If this objective is selected, the PHA must demonstrate that there are sufficient units in need of moderate rehabilitation in areas outside of low income and minority concentrations within the area of operation of the PHA which can be rehabilitated within the FMR limitations of the Program. The PHA must also submit a Certification that it will select units outside of areas of minority con- centration consistent with 24 CFR, Section 882.503(a)(9)(i). 2. O Prevention of displacement of Lower -Income Families in areas undergoing private rehabilitation. If this objective is selected, the following items must be submitted: (a) a map outlining the neighborhood boundaries and indi- cating major transportation corridors (streets, buslines, railroad tracks) and commercial, recreational and public facilities; and (b) a description of neighborhood characteristics, including demographics (number of households, median income, age characteristics of population, population trends, etc], owner/renter status of current residents, extent of vacancy and overall condition of the housing stock. The PHA must also demonstrate that there are units in the neighborhood suitable for moderate rehabilitation, can meet the site and neighborhood standards pursuant to Section 882AO5(b), and can be rehabilitated within the FMR limitations of the Program. 3. IX -1 Neighborhood preservation and revitalization. (See Attachments; 1, la) - If this objective is selected, the PHA must submit the information specified in 2(a) and (b) above and a letter from the chief executive officer of the local government endorsing the application and describing other public and private improvements completed, underway and/or planned In the neighborhood to complement the Moderate Rehabilitation Program. The PHA must also demon- strate that the Program is appropriate to the needs of the neighborhood and that there are units in the neighborhood suitable for moderate rehabilitation and which can meet the site and neighborhood standards pursuant to Section 882.405(b). E. NEED FOR HOUSING ASSISTANCE Demonstrate that the project requested in this application is consistent with the applicable Housing Assistance Plan including the goals for meeting the housing needs of Lower -Income Families or, in the absence of such a Plan, that the proposal project is responsive to the housing stock in the community and the housing assistance needs of Lower -Income Families (including the elderly, handicapped and disabled, large Families and those displaced or to be displaced) residing in or expected to reside in the community and that there is or Will be available in the area public facilities and services adequate to serve the housing proposed to be assisted. The Moderate Rehab Project requested in this application is based on the housing assistance needs and annual housing goals contained in the-Lubbock's 1979-1981 3 Year HAP (Table III). The Three Year goal for "Housing Assistance to Renters" is 743 units, of which 213 units in- clude "Rehab of Rental Units". Of these 213, 80 units are proposed for Moderate Rehab over the three years (No goal for Moderate Rehab was included in Table V, "Annual Goals", since Lubbock was not invited to participate in the first round of Moderate Rehab.funding). This: application is for 40 units of Sec. 8 Moderate Rehab. ' The distribution of the 40 units is shown in Section C of this application, and is based on proportionality reflected in the HAP (Table III), and on the data contained in Table 11-1 of the HAP. The proposed bedroom distribution for the project is based on needs reflected in the Housing Authority, Sec. 8 Existing waiting list. F. QUALIFICATION AS A PUBLIC HOUSING AGENCY Demonstrate that the applicant qualifies as a Public Housing Agency (24 CFR,Section 882.102) and is legally qualified and authorized to carry out the project applied for in this application. If the applicant already has an ACC for a Section 8 Existing Housing or Moderate Rehabilitation Program, the appropriate boxes indicating that relevant documents have been, previously submitted should be checked. If the PHA already has an ACC for an Existing Housing project but .is not administering a Moderate Rehabilitation project, a statement from the public housing counsel must -be submitted stating that the PHA is qualified to participate based on the documentation pre- viously submitted for the Existing Housing Program. (Check Appropriate Box Below) SUBMITTED WITH THIS PREVIOUSLY APPLICATION SUBMITTED 1. The relevant enabling legislation ❑ 2. Any rules and regulations adopted or to be adopted by the agency to govern its operations ❑] 3. A supporting opinion from the PUBLIC HOUSING AGENCY COUNSEL ® ❑ G. REHABILITATION AND LEASING SCHEDULE Provide a proposed schedule specifying the number of units to be placed under Agreement and the number of units to be leased by the end of each three-month period (24 CFR, Section 882,505 (c).) REHAB AND LEASING SCHEDULE INCREMENT_ 3 6 9 12 15 18 24 Months Under Agreement 0 5 10 15 10 0 0 Under Lease 0 0 5 5 15 10 5 CUMULATIVE TOTALS Under Agreement 0 5 15 30 40 0• 0 Under Lease 0 0 5 10 25 35 40 HUD -52515A 16.79) H. HOUSING QUALITY STANDARDS Indicate below whether local housing codes, the Housing Quality Standards as set forth in 24 CFR, Sections 882.109 and 882.A05 or other standards which at a minimum meet the Performance Requirements of the Housing Quality Standards will be used in the oper- ation of the Program. Examples of other standards to be used would include local rehabilitation codes or variations in the Accepta- bility Criteria of the Housing Quality Standards. If the PHA proposes to use other standards, a copy of such standards must be sub- mitted with a justification for their use. If the PHA proposes to use local housing codes, the PHA must provide a certification that the local housing codes meet the Performance Requirements of the Housing Quality Standards and are on file in its office. (Checkappro- priate box). OUse of local housing codes which are more restrictive than the Housing Quality Standards (attach above referenced certification) D Use of Housing Quality Standards contained in Sections 882.109 and 882.405 t Other (specify and justify) (SEE ATTACHMENT 3) I. ADMINISTRATIVE CAPABILITY Describe the experience of the PHA in administering housing or other programs, including the Section 8 Existing Housing Program, and provide other information which evidences present or potential administrative capability for the proposed Program. The Housing Authority of the City of Lubbock has been in existence since 1939 when it first began acquisition of land for building Project TEX 18-1 (Hub Homes). This project, consisting of 130 units, an activity center, office and shop was finished in 1941. Since that date, the Authority has acquired 536 dwelling units (3 projects) plus a Central Office, Community Building and'Shop combined in one building. The following list presents the chronological acquisition of the Authority's projects: 1939 .................130 units - TEX 18-1 (Hub Homes) 1965................236 units - TEX 18-2 (Green Fair -Manor). (See continuation'sheet) J. REHABILITATION EXPERTISE Describe the rehabilitation expertise and experience of the PHA or how this expertise will be obtained. If the PHA proposes to sub- contract with any public or private rehabilitation entity, the name of the subcontractor and a detailed description of the subcontractor's rehabilitation experience should be provided. (A memorandum of intent between the PHA and the subcontractor specifying the obli- gations of each party must be submitted) The description of rehabilitation expertise should detail the PHA's or subcontractor's ex- perience specifying the -type of buildings (eg., single-family or small multi -family), the extent of rehabilitation (e.g., cosmetic, major systems repair or replacement, orsubstandal renovation), and the role the PHA's or subcontractor's staff performed in the rehabilitation (i.e., how much of the work was contracted out to architects, engineers or inspectors and how much of the work was actually per- formed by staff). If the PHA proposes to hire staff, the qualifications of the staff should be detailed. The PHA must also demonstrate the capacity to perform the services required in 24 CFR, Sections 882.507, 882.509, and 882.510. Since 1970, the URA has rehabilitated approximately 750 owner -occupied single family units. 'Ttie URA presently rehabs between 75 and 95 units per year under the CDBG program and the HUD Sec. 312 program. Rehab per year under the CDBG program and the HUD Sec. 312 program Rehab funding for the current CDBG year (1979-80) includes $232,320 in CD funds -and a target allocatioii.of.$433,000 in Sec. 312 loan funds for FY -8l.',, - The rehabilitation staff consists of a Director, a loan officer, and 5 counselors. Local contractors perform all rehabilitation work. Rehabilitation jobs range from $6,000 to $27,000. The staff has not had direct experience with the rehabilitation of tenant -occupied pro- perties. It should be noted, however, that most of the units anticipated to be rehabili- See contintiation •sheet) K. FINANCING Indicate the types of financing expected to be used including Federal, State or' locally assisted financing programs and describe the availability of such financing. If avJilable, statements from'these financing sources indicating their willingness to finance rehabilitation under this Program should be submitted. The source of financing for the Moderate Rehab program will be private financial institu- tions. Property owners interested in participating in the Moderate Rehab program will be assisted and counseled by staff members of the Lubbock Housing Authority and the Urban Renewal Agency in securing private loans. Contacts will be made with lending institutions to attempt to get favorable financing termsfor borrowers participating in the program. HUD -52515A 16-791 RELOCATION Permanent displacement of tenants will only be allowed when sufficient suitable -sized units will not be available in the building or com- plex after rehabilitation. Indicate whether or not permanent displacement under these circumstances will be allowed, (Check appro- priate box). ® No building will be selected for participation in the Program where permanent displacement of tenants will be necessary. • ❑ Displacement of tenants will be allowed and any displacement will be accomplished and. benefits provided as required in Section 882.407. If the PHA plans to select buildings where displacement will be necessary,, the PHA must attach a certification that it will comply with the requirements specified in Section 882.407 and provide a selection preference to ariy displaced Family in any assisted housing program it administers. If the PHA does not administer the Section 8 Existing Housing Program, a letter from the PHA administering that program in the area indicating that a preference will be provided to Families displaced by the Moderate Rehabilitation Program must be attached. The PHA must also indicate the agency which will provide relocation assistance, describe how the assistance and payments associated with permanent displacement will be funded, and attach a commitment from the funding agency. M. ATTACHMENTS The following additional items may be submitted either with the application or after application approval, but no later than with the PHA executed ACC. Items 1, 2 and 3 below should be submitted together. SUBMITTED WITH TO BE PREVIOUSLY THIS APPLiCATiON SUBMITTED SUBMITTED 1. Equal Opportunity Housing Plan (24CFR, Section 882. 503(b)1 and Certifications, Form HUD -920. ❑ ❑ 2. Estimates of Required Annual. Contributions, Forms HUD -52671, HUD -52672, and HUD -52673. ❑ ❑ 3. Administrative Plan (24 CFR, Section 882503(6)(4). ❑ ❑ 4, Proposed Schedule of Allowances for Utilities and Other Services, Form HUD -52667, with a justification of the ❑ ❑ amounts proposed. HUD FIELD OFFICE RECOMMENDATIONS RECOMMENDATION OF APPROPRIATE REVIEWING OFFICE SIGNATURE•AND.TITLE DATE HUD -52515A (6-79 Part 1 of 2 Pages MODERATE REHABILITATION APPLICATION CONTINUATION SHEET I. ADMINISTRATIVE CAPABILITY 1971 .......... 1— 240 units - TEX 18-3 S.F. Dwellings -Turnkey III 1971 ............. 60 units - TEX 18-4 S.F. Dwellings The Housing Authority has just completed the modernization on Projects TEX 18 -1 - and 18-2 in the amount of $1,490,000.00. Projects TEX 18-3 and 18-4 have been painted through funding by the South Plains Association of Governments in the amount of $141,796.00. In addition, another modernization project is under- way in Project TEX 18-2 in the amount of $370,000.00. Within the past year the Authority has been able to secure C.D. funds from the City to renovate three apartments at Green Fair Manor to offices for Counseling Services and an Activity Center. These funds amount to $33,800.00. In addition, the Authority has recently been awarded $69,000.00 from C.D. funds for security. In addition to unit ownership, the Housing Authority manages and maintains a Central office, Community.Center, Maintenance shop and warehouse in a separate location as well as offices in Projects TEX 18-1 and 18-2. The Authority has' been allotted 100 certificates for Section 8 Existing housing and has an ap- plication. pending with HUD for an additional 100 certificates. The operation of a Housing Authority of this magnitude is a large and complex task. However, with almost 40 years experience to their credit, the Lubbock Housing Authority has evolved an efficient and economical management plan which is capable of performing the task. The Housing Authority staff is a conscientious team whose problem solving talents coupled with solid leadership have enabled the Authority to operate its four projects and Section 8 existing program smoothly and ef- fectively. The staff is comprised of the following personnel: TITLE NAME DATE OF EMPLOYMENT Executive Director D. C. Fair, Jr. 8-16-1976 Asst. Exec. Director Mary Myers 1-17-1977 Sec. 8 Supervisor Dora Oliva 12-8-1971 Housing Manager George H. Paul 4-8-1974 Social Service Coord. Greta Wood 2-1-1979 Security Coordinator Fulton Berry, Jr. 7-1-1978 Project Manager Bertha Rainwater 9-7-1971 Project Manager Frances Sherrod 7-16-1974 Cashier-Bkpr. Martha LaMar 9-6-1976 Cashier-Bkpr. Linda.Hines 6-1-1977 Part 2 of 2 Pages MODERATE REHABILITATION APPLICATION CONTINUATION SHEET I. ADMINISTRATIVE CAPABILITY (Cont'd) TITLE NAME DATE OF EMPLOYMENT Clerk -Typist Gloria :G. Mendes 2-1-1977 Maintenance Foreman Jack B. Yates 1-1-1974 Inventory Clerk Henry Cazares 7-1-1978 Maint. Aide "A" 5 Maint. Aide "B" 3 Laborers 6 The Housing Authority is currently in the process of upgrading occupancy and has had considerable success in the past year in implementing rent ranges and delinquency collection. All of the projects are operated under Annual Con- tribution Contract (ACC). The Authority has approximately $1,000,000.00 in- vested in Certificates of Deposit. The Payment in Lieu of Taxes (PILOT) has been forgiven by both the City and County, which enable the Authority to use the $175,000.00 to implement programs which the ACC will.not-cover. In summary, the Lubbock Housing Authority is an old, well established, effi- ciently managed local Housing Authority. Its successful performance in'areas of management and improvements qualifies the Authority as an ideal administration of Section 8 Moderate Rehabilitation Program's. J. REHABILITATION EXPERTISE itated under the Moderate Rehabilitation Program will be structurally similar to the units the Agency is presently rehabilitating (or has completed) in the area. That is, most units participating in the Moderate Rehabilitation Program are expected to be detached, single-family structures. In the past the Rehabilitation Department of the Agency has received numerous visits and phone calls from officials in other cities seeking guidance on how to set up a local rehabilitation program. These officials have been referred to the Agency by staff persons in the Dallas Area Office of HUD. ATTACHMENT 1 SUPPORTING DOCUMENTATION FOR SELECTION OF OBJECTIVE 3 A. Description of Proposed Neighborhood 1. General Description of the Area: The area comprises the Bean School NSA and is described in the City'of Lubbock's 1979-82 Community Development and Housing Plan, submitted to the HUD Dallas Area Office on January 25, 1979. (See "Comprehensive Strategy", pages 7-10, and "Summary of CD & Housing Needs, page 2, of the Three Year Plan.) The following general description of the Bean School NSA is supplementary to the description of the areas contained in the Housing Assistance Plan and referenced above. The NSA is characterized by single-family dwellings, mostly built before 1950, which average 907 square feet of floor space. Most units contain two be and are structurally sound but in need of moderate rehabilitation. The area was in a state of moderate decline before 1976, and contained spots of serious deterioration. CDBG funds have been used in the area since 1976 for rehabilitation, clearance and redevelopment, and concentrated code - enforcement. These efforts, which are planned to be ongoing, have stablized the neighborhood and averted the possibility of the area becoming a slum. CDBG funds amounting to $1,996,137.00 have been spent or committed in the area. Improvements have been made to parks, recreational facilities, thor- oughfare lighting, fire protection facilities and to a senior citizen's center in the area. Total funds expended or programmed for neighborhood re- vitalization activities (rehabilitation, clearance, redevelopment and side- walks) in the area amount to $1,474,839.00. One unmet need in the NSA is that -of a mechanism to effectively deal with deteriorated rental properties. The problem results from the following two causes: 1. Area landlords, mostly local tradesmen or small businessmen, are unwilling to reinvest in their properties without assurances they will receive adequate rents. 2. A significant number of area tenants would be hard-pressed to pay rent increases which would result from conventionally financed housing rehabilitation. It is believed that the Moderate Rehabilitation Program being planned for the NSA will help to alleviate both of these difficulties. While the Urban Renewal Agency has not recorded all contacts with rental property owners, the Agency has received many inquiries from several rental property owners about assistance for their units. These inquiries indicate a potential for owner participation in the Section 8 Moderate Rehabilitation Program. The Moderate Rehabilitation Program will be a beneficial complement to the ongoing CDBG housing related activities and to the private rehabilitation efforts taking place in the area. The effect of all housing -related activities will be to insure that the viability of the neighborhood will be preserved well into the future. 2. Demographic & Physical Characteristics of the Area: (Comprises most of Census Tract 13): (a). Demographics: ...1,490 households, population of approximately 3,400 persons ...14% of population is aged 60 or above. ...Median income in 1970 was 78% of city-wide median. ...44% of the households are lower income. ...Population is 77% Anglo and 23% Mexican -American. W. Characteristics of Properties: ...Housing stock is over 30 years old -- mostly built before 1950. Structures are basically sound. ...59% of units are rentals. ...Under CDBG, 68 owner -occupied units have been rehabilitated in the past three years. More such activity is planned. ...15 new units have been developed in the area in the last three years. ...Vacancy rate, based on Polk Data, is 10.75 ...Of the 68 units rehabilitated in the area under CDBG, 58 were rehabilitated for'less that $7,000 (average), and 10 involved rehabilitated costs above $7,500. (c). Characteristics of Rental Property Owners: Owners typically own a small number of units, and rental units tend to be either single family dwellings or in structures of less than 10 units. Only 125 (8%) of all dwelling units are in structures of over 10 units. It is estimated that as many as 200 separate owners in widely -ranging income groups could control the estimated 890 rental units in the area. Characteristics of the owners, then, tend to be highly varied, and generalizations are difficult to make. W. Tenant Characteristics: Tenants with few exceptions are lower income persons. Tenants in- clude both Anglo and minority lower-income wage earners, single - headed households, the elderly, persons on public assistance, and generally represent a cross-section of the city's lower-income population. Of the 44% of lower-income households in the area, it is estimated that a predominant part are living in rental units. 3. See map of the area showing location of area boundaries, major corridors, bus routes, and access to recreational, health & commercial facilities, and other urban amenities. B. Demonstration of Appropriateness of the Moderate Rehabilitation Program for the Proposed Neighborhood The four years of experience which the Urban Renewal Agency has with residential rehabilitation in the Bean NSA indicates that the area is in need of moderate rehabilitation (between $5,000 and $9,500). The Agency has made numerous structural surveys of the area, and has rehabilitated 68 units in the area - 86% of which fell into the moderate rehabilitation category. Criteria for rehabilitation work are contained in the "Residential Property Rehabilitation Standards for the Lubbock Community Development Program" (generally referred to as the PRS). •The PRS currently -in use were developed for rehabilitation of structures under the Neighborhood Development Program, by the Urban Renewal Agency and with some modification these standards have been adapted to the Community Development Rehabilitation Program. Those units in the area which require substantial rehabilitation are largely concentrated on the northern edge of the area. This area will be generally avoided in carrying out the program. It is proposed that CDBG funds will be used to address the needs of the northern sector, although a time table has not been prepared. It is estimated that a preponderance of the 890 rental units in the area contain lower-income households which would be eligible for the Sec. 8 program. Both structurally and in tenant characteristics, the area appears to fit suitability criteria of the Section 8 Moderate Income Program. C. LETTER OF SUPPORT FROM THE MAYOR- Attachment la CLIFFORD W. BROWN DERRY D. HARDING RAY FARGA50N ROBERT MICHAEL BROWN KATHLEEN W. BILLINGSLEY BROWN, HARDiNC3, FARGASON & BROWN ATTORNEYS AT LAW 1601 BROADWAY Lueeocr- TExAs .79401 763-9493 ARU 606 STATEMENT OF QUALIFICATIONS AS A PUBLIC HOUSING AGENCY (PHA) ATTACHMENT 2 The Housing Authority of the City of Lubbock submitted the above -referenced documentation of its qualifications as a PHA with its Application for 100 units of Section 8 Exist- ing Housing, dated December 1, 1975. The Authority hereby states that it is legally qualified and authorized to parti- cipate in the Section 8 Moderate Rehabilitation Program in the City of Lubbock, based on the documentation previously submitted. Date: t/4' Title: Counsel, Housing Authority of the City of Lubbock / ` M1 (Attachment 3) CHERRY POINT HOMES HUB HOMES GREEN FAIR MANOR APTS. SIB N. ZENITH STREET 323 AVENUE •'F" 2807 WEBER DRIVE 762-1191 762-4812 763-1277 HOUSING AUTHORITY OF THE CITY OF LUBBOCK, TEXAS LUBBOCK, TEXAS PLEASE DIRECT REPLY TO: CERTIFICATION THAT THE RESIDENTIAL PROPERTY REHABILITATION STANDARDS FOR THE LUBBOCK, TEXAS, COMMUNITY DEVELOPMENT PROGRAM (PRS) ARE ON FILE AT THE OFFICES OF THE LUBBOCK HOUSING AUTHORITY. We hereby certify that a document entitled "Residential Property Re- habilitation'Standards" for the Community Development Program, Lubbock, Texas, which sets forth standards which meet the performance require- ments of the Housing Quality Standards are on file at the Lubbock Housing Authority's offices at 515 North Zenith, Lubbock, Texas Date 17 l' j Pero Executive Director (Attachment 4) MEMORANDUM OF INTENT TO ENTER INTO SUBCONTRACT The undersigned parties do hereby agree that subject to the approval of the Lubbock Housing Authority's Application for a 40 unit Section 8 Moderate Rehabilitation Program, the Housing Authority and the Lubbock Urban Renewal Agency will enter into a contract which will obligate the Urban Renewal Agency to carry out the following Authority responsibilities required under the Section 8 Moderate Rehabilitation Program: 1. Outreach to owners, lenders, and contractors with whom they have a previously established relationship; 2. Development of Request for Proposals and Owner's Packet; 3. Initial inspection of units proposed for the program and determination of rehabilitation work required to bring unit(s) up to code standards; 4. Preliminary Feasibility Analysis, including preparation of rough cost estimates, income -expense analyses, and estimates of contract rents; 5. Proposal review and selection (in conjunction with the Authority staff); 6. Preparation or review of detailed work write-ups and cost estimates; 7. Assistance to the owner in selection of the contractor; 8. Final Feasibility Analysis, including calculation of contract rents; 9. Assistance to the owner in obtaining financing; 10. Preparation of Agreement to Enter Into HAP Contract, including dates of commencement and completion of rehabilitation; 11. Inspections during rehabilitation; monitoring of construction contract compliance; review of change orders; 12. Final Inspection; 13. Receipt and review of acceptable completion documents; final acceptance of the rehabilitation work. t Executive Director, Housing Authority of the City of Lubbock DATE oe Executive Director, Urban Renewal Agency of the City of Lubbock DATE Part 1 of 2 Pages MODERATE REHABILITATION APPLICATION CONTINUATION SHEET I. ADMINISTRATIVE CAPABILITY 1971 .............240 units - TEX 18-3 S.F. Dwellings -Turnkey III 1971 ............. 60 units - TEX 18-4 S.F. Dwellings The Housing Authority has just completed the modernization on Projects TEX 18-1 and 18-2 in the amount of $1,490,000.00. Projects TEX 18-3 and 18-4 have been painted through funding by the South Plains Association of Governments in the amount of $141,796.00. In addition, another modernization project is under- way in Project TEX 18-2 in the amount of $370,000.00. Within the past year the Authority has been able to secure C.D. funds from the City to renovate three apartments at Green Fair Manor to offices for Counseling Services and an Activity Center. These funds amount to $33,800.00. In addition, the Authority has recently been awarded $69,000.00 from C.D. funds for security. In addition to unit ownership, the Housing Authority manages and maintains a Central office, Community Center, Maintenance shop and warehouse in a separate location as well as offices in Projects TEX 18-1 and 18-2. The Authority has been allotted 100 certificates for Section 8 Existing housing and has an ap- plication. pending with HUD for an additional 100 certificates. The operation of a Housing Authority of this magnitude is a large and complex task. However, with almost 40 years experience to their credit, the Lubbock Housing Authority has evolved an efficient and economical management plan which is capable of performing the task. The Housing Authority staff is a conscientious team whose problem solving talents coupled with solid leadership have enabled the Authority to operate its four projects and Section 8 existing program smoothly and ef- fectively. The staff is comprised of the following personnel: TITLE NAME DATE OF EMPLOYMENT Executive Director D. C. Fair, Jr. 8-16-1976 Asst. Exec. Director Mary Myers 1-17-1977 See. 8 Supervisor Dora Oliva 12-8-1971 Housing Manager George H. Paul 4-8-1974 Social Service Coord. Greta Wood 2-1-1979 Security Coordinator Fulton Berry, Jr. 7-1-1978 Project Manager Bertha Rainwater 9-7-1971 Project Manager Frances Sherrod 7-16-1974 Cashier-Bkpr. Martha LaMar 9-6-1976 Cashier-Bkpr. Linda Hines 6-1-1977 MODERATE REHABILITATION APPLICATION CONTINUATION SHEET I. ADMINISTRATIVE CAPABILITY (Cont'd) TITLE NAME Clerk -Typist Gloria G. Mendes Maintenance Foreman Jack B. Yates Inventory Clerk Henry Cazares Maint. Aide "A" 5 Maint. Aide "B" 3 Laborers 6 Part 2 of 2 Pages DATE OF EMPLOYMENT 2-1-1977 1-1-1974 7-1-1978 The Housing Authority is currently in the process of upgrading occupancy and has had considerable success in the past year in implementing rent ranges and delinquency collection. All of the projects are operated under Annual Con- tribution Contract (ACC). The Authority has approximately $1,000,000.00 in- vested in Certificates of Deposit. The Payment in Lieu of Taxes (PILOT) has been forgiven by both the City and County, which enable the Authority to use the $175,000.00 to implement programs which the ACC will not cover. In summary, the Lubbock Housing Authority is an old, well established, effi- ciently managed local Housing Authority. .Its successful performance in'areas of management and improvements qualifies the Authority as an ideal administration of Section 8 Moderate Rehabilitation Program§. J. REHABILITATION EXPERTISE itated under the Moderate Rehabilitation Program will be structurally similar to the units the Agency is presently rehabilitating (or has completed) in the area. That is, most units participating in the Moderate Rehabilitation Program are expected to be detached, single-family structures. In the past the Rehabilitation Department of the Agency has received numerous visits and phone calls from officials in other cities seeking guidance on how to set up a local rehabilitation program. These officials have been referred to the Agency by staff persons in the Dallas Area Office of HUD. LUBBOCK CITY COUNCIL CITY OF LUBBOCK LUBBOCK, TEXAS April 10, 1980 Mr. Irving Statman Area Director Department of Housing and Urban Development 2001 Bryan Tower Dallas, Texas 75201 Dear Mr. Statman: ATTACHMENT la The City Council has reviewed the application for 40 units of Section 8 Moderate Rehabilitation and we endorse the application. The proposed Section 8 Moderate Rehabilitation Program will be concentrated in the Bean Neighborhood Strategy Area which will help meet the housing assist- ance needs of the lower income residents. In addition, this program will support the neighborhood revitalization efforts being carried on or proposed under the Community Development Block Grant Program. Since 1975, the City of Lubbock has directly allocated $1,996,138.00 of CDBG funds to the revitalization of the Bean School area: Traffic Signals $ 50,000 Thoroughfare Lighting $ 55,783 Park Improvements $ 10,360 Fire Protection Facility $ 390,155 Public Service $ 15,000 Neighborhood Revitalization Activities $1,474,839 The implementation of the Section 8 Moderate Rehabilitation Program will help rehabilitate tennant occupied housing units which will contribute to a more complete revitalization effort in the Bean Neighborhood Strategy Area. I would encourage the Department of Housing and Urban Development to approve the Housing Authority of Lubbock's application. Sincerely, e%; .0 Bill McAlister Mayor BM: j s ATTACHMENT 1 SUPPORTING DOCUMENTATION FOR SELECTION OF OBJECTIVE 3 A. Description of Proposed Neighborhood 1. General Description of the Area: The area comprises the Bean School NSA and is described in the City of Lubbock's 1979-82 Community Development and Housing Plan, submitted to the HUD Dallas Area Office on January 25, 1979. (See "Comprehensive Strategy", pages 7-10, and "Summary of CD & Housing Needs, page 2, of the Three Year Plan.) The following general description of the Bean School NSA is supplementary to the description of the areas contained in the Housing Assistance Plan and referenced above. The NSA is characterized by single-family dwellings, mostly built before 1950, which average 907 square feet of floor space. Most units contain two bedrooms, and are structurally sound but in need of moderate rehabilitation. The area was in a state of moderate decline before 1976, and contained spots of serious deterioration. CDBG funds have been used in the area since 1976 for rehabilitation, clearance and redevelopment, and concentrated code - enforcement. These efforts; which are planned to be ongoing, have stablized the neighborhood and averted the possibility of the area becoming a slum. CDBG funds amounting to $1,996,137.00 have been spent or committed in the area. Improvements have been made to parks, recreational facilities, thor- oughfare lighting, fire protection facilities and to a senior citizen's center in the area. Total funds expended or programmed for neighborhood re- vitalization activities (rehabilitation, clearance, redevelopment and side- walks) in the area amount to $1,474,839.00. One unmet need in the NSA is that of a mechanism, to effectively deal with deteriorated rental properties. The problem results from the following two causes: 1. Area landlords, mostly local tradesmen or small businessmen, are unwilling to reinvest in their properties without assurances they will receive adequate rents. 2. A significant number of area tenants would be hard-pressed to pay rent increases which would result from conventionally financed housing rehabilitation. It is believed that the Moderate Rehabilitation Program being planned for the NSA will help to alleviate both of these difficulties. While the Urban Renewal Agency has not recorded all contacts with rental property owners, the Agency has received many inquiries from several rental property owners about assistance for their units. These inquiries indicate a potential for owner participation in the Section 8 Moderate Rehabilitation Program. The Moderate Rehabilitation Program will be a beneficial complement to the ongoing CDBG housing related activities and to the private rehabilitation efforts taking place in the area. The effect of all housing -related activities will be to insure that the viability of the neighborhood will be preserved well into the future. 2. Demographic & Physical Characteristics of the Area: (Comprises most of Census Tract 13): (a). Demographics: ...1,490 households, population of approximately 3,400 persons ...14% of population is aged 60 or above. ...Median income in 1970 was 78% of city-wide median. ...44% of the households are lower income. ...Population is 77% Anglo and 23% Mexican -American. W. Characteristics of Properties: ...Housing stock is over 30 years old -- mostly built before. 1950. Structures are basically sound. ...59% of units are rentals. ...Under CDBG, 68 owner -occupied units have been rehabilitated in the past three years. More such activity is planned. ...15 new units have been developed in the area in the last three years. ...Vacancy rate, based on Polk Data, is 10.75 ...Of the 68 units rehabilitated in the area under CDBG, 58 were rehabilitated for less that $7,000 (average), and 10 involved rehabilitated costs above $7,500. (c). Characteristics of Rental Property Owners: Owners typically own a small number of units, and rental units tend to be either single family dwellings or in structures of less than 10 units. Only 125 (8%) of all dwelling units are in structures of over 10 units. It is estimated that as many as 200 separate owners in widely -ranging income groups could control the estimated 890 rental units in the area. Characteristics of the owners, then, tend to be highly varied, and generalizations are difficult to make. (d). Tenant Characteristics: Tenants with few exceptions are lower income persons. Tenants in- clude both Anglo and minority lower-income wage earners, single - headed households, the elderly; persons on public assistance, and generally represent a cross-section of the city's lower-income population. Of the 44% of lower-income households in the area, it is estimated that a predominant part are living in rental units. 3. See map of the area showing location of area boundaries, major corridors, bus routes, and access to recreational, health '& commercial facilities, and other urban amenities. B. Demonstration of Appropriateness of the 'Moderate Rehabilitation Program for the Proposed Neighborhood The four years of experience which the Urban Renewal Agency has with residential rehabilitation in the Bean NSA indicates that the area is in need of moderate rehabilitation (between $5,000 and $9,500). The Agency has made numerous structural surveys of the area, and has rehabilitated 68 units in the area - 86% of which fell into the moderate rehabilitation category. Criteria for rehabilitation work are contained in the "Residential Property Rehabilitation Standards for the Lubbock Community Development Program" (generally referred to as the PRS). •The PRS currently in use were developed for rehabilitation of structures under the Neighborhood Development. Program, by the Urban Renewal Agency and with some modification these standards have been adapted to the Community Development Rehabilitation Program. Those units in the area which require substantial rehabilitation are largely concentrated on the northern edge of the area. This area will be generally avoided in carrying out the program. It is proposed that CDBG funds will be used to address the needs of the northern sector, although a time table has not been prepared. It is estimated that a preponderance of the 890 rental units in the area contain lower-income households which would be eligible for the Sec. 8 program. Both structurally and in tenant characteristics, the area appears to fit suitability criteria of the Section 8 Moderate Income Program. C. LETTER OF SUPPORT FROM THE MAYOR- Attachment la MR Wlk"NIGIGG