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HomeMy WebLinkAboutResolution - 4102 - Grant Application - HUD - HOME Entitlement Program - 03_11_1993Resolution No. 4102 March 11, 1993 Item #34 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock an Application, and related documents, for the HOME Investment Partnership Program for the year 1993. Said Application and related documents are attached hereto and in- corporated in this Resolution as if fully set forth herein and shall be included in the minutes of the Council. Passed by the City Council this ATTEST: jk c�'Z' City Secretary Betty Johnson APPROVED AS TO CONTENT: "I.Z- I /av A-4,_ - San y Og a ee, Ummunity Development IAdministra r APPROVED AS TO FORM: Linda L. C ama es, Assistant City Attorney LLC:js/APP-HCME.RES D2-Agenda/February 24, 1993 OMB Approval No.03"-00a c A P P L I C A T I U 1N F- U H FEDERAL ASSISUNCE 2. DATE SUSMrMO Applicant identifier 1. TV" OF su6mis3KOr! 2. DATE RECEIVED BY STATE Stale Applicawn Idenlrfar AodKatron PTeaDp/KalrOn [] Construct -on Conslruclion a. DATE RECEIVED BY FEDERAL AGENCY Federal Identilm O NOR -Construction O Non-ConstructlOn s. APPLICANT INFORMATION Legal Name. — — - City of Lubbock Organizalronal Unit: Community Development Department Addreu (give city. county. Stale. and zip Cod ) Name and telephone number of the person to be Cont•ctad on matters wWON 0 City of Lubbock this application (gtve ana code) P. 0. Box-2000 Sandy Ogletree Lubbock, TX 79457 Community Development Administrator e. EMPLOYER IDENTIFICATION NUMBER IEIN1: 7. TYPE OF APPUCANT: (enter appropriate letter rn bm) 7 5 6 0 1 0 1 0 1 5 9 0 A. State H Independent School OrsL e County I: State Controlled I nstraitlm of Higner Leernnq C. Municipal J Private Urnverstly e TYPE OF APPLICATION D. Township K Indian Tfrbe New Continuation O Revision E. Intestate • L. Individual F Intemunicrpal 1M Profit Organization it Revision, enter appropriate tatter(s) in boxiest: G Special District N. Other (Sporty) A Increase Award 8 Decrease Award C. Increase Duration O Decrease Duration Other (Soect/y): S. NAME OF FEDERAL AGENCY: U.S. Department of Housing & Urban Development Is. CATALOG 01 FEDERALDOMESTIC 9 2 1 0 2 11. DESCRIPTIVE TITLE OF APPLICANTS OJ PRECT: STANCE NUMBER: • ASS1HOME Entitlement Program TITLE HOME Investment Partnership Program IL AREAS AFFECTED BY PROJECT (cities. Counties. States. •fC.I Lubbock, Texas 13. PROPOSED PROJECT: 14. CONGRESSIONAL DISTRICTS OF: Start Dag Ending Date a. Applicant b Piofoct 4/93 4/94 19th 19th 15. EST114ATED FUNDING: is. IS APPLICATION SUBJECT TO REVIEW BY STATE EXECUTIVE ORDER 12372 PROCESS? a. YES THIS PREAPPLICATIO(WAPPL)CATION WAS MADE AVAILABLE TO THE a Federal .00 701,000 STATE C(ECUTIVE ORDER 12372 PROCESS FOR REVIEW ON DATE NO PROGRAM IS NOT COVERED BY E 0. 12372 b. Aoanune s 87,625 .00 c State = .OD b ❑ OR PROGRAM HAS NOT BEEN SELECTED BY STATE FOR REVIEW d Local = .00 e Other S 00 I Program Income i 00 17. IS THE APPLICANT DELINOUENT ON ANY FEDERAL DEBT? ❑ Yes If 'Yes,' attach an explanation No g TOTAL S W 788,625 16. TO THE BEST OF MY KNOWLEDGE AND BELIEF. ALL DATA IN THIS APPLICATION PREAPPLICATION ARE TRUE AND CORRECT. THE DOCUMENT HAS BEEN DULY AUTHORIZED BY THE GOVERNING BODY OF THE APPLICANT AND THE APPLICANT WILL COMPLY W FH THE ATTACHED ASSURANCES IF THE ASSISTANCE IS AWARDED a Typed Name of Authorized Representative b Titte C Telephone number Dav id—R.—'ban5Z stop- Mayor 806-767-2009 d SignatureIrIZ •Date S.orned r1lRepresan — Harch 11, 1"3' F APPFDM-n M ONTITIIT: V v c� Coffmmity Dev. Admin. City_ Attem CERTIFICATION OF CONSISTENCY WITH COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY I, David R. Langston, Mayor of the City of Lubbock, Texas, authorized to act on behalf of the City of Lubbock, do certify that the activities proposed by the City of Lubbock are consistent with the Comprehensive Housing Affordability Strategy approved by the Department of Housing and Urban Development on January 26, 1993. APPROVED AS TO CONTENT: 1 /at7t� '. - Sandy Ogled ee _Community Development Administrator Karch 11, 1993 Date APPROVED AS TO FORM: Linda Chamales Assistant City Attorney CERTIFICATIONS HOME PROGRAM DESCRIPTION In accordance with the Home Investment Partnerships Act and with 24 CFR 92-150 of the Home Investment Partnership Program Rule, the participating jurisdictions certifies that: (a) Before committing any funds to a project, it will evaluate the project in accordance with the guidelines that it adopts for this purpose and will not invest any more HOME funds in combination with other Federal assistance than is necessary to provide affordable housing; (b) If the participating jurisdiction is not on the list published under 24 CFR 92.51 and intends to do new construction to facilitate a neighborhood revitalization program; For each neighborhood revitalization program, 1. Rehabilitation is not the most cost-effective way to meet the participating jurisdictions needed to expand the supply of affordable housing within the neighborhood and the participating jurisdictions housing needs, within the neighborhood, cannot be met through rehabilitation of the available housing stock; and 2. The program of new construction is needed to facilitate a neighborhood revitalization program that emphasizes rehabilitation or substandard housing for rental or homeownership opportunities by low-income and moderate -income families in an area designated by the jurisdiction; 3. The housing is to be located in a low-income neighborhood; 4. The housing is to be developed, owned, or sponsored by a community housing development organization or a public agency; and 5. The number of housing units to be constructed with HOME funds does not exceed 20 percent of the total number of housing units in the neighborhood revitalization program that are assisted with HOME funds; unless (a) The housing is to be located in a severely distressed area within the neighborhood with large tracts of vacant land and abandoned buildings; or (b) The housing is to be located in an area within the neighborhood with an inadequate supply of existing housing that can economically be rehabilitated to meet identified housing needs; or 1 (c) The new construction is required to accomplish the neighborhood revitalization program. (c) If the participating jurisdiction is not on the list published under 24 CFR 92.51 and intends to do new construction on the basis of special needs; For each project, 1. Rehabilitation is not the most cost-effective way to expand the supply of affordable housing for the special need and'the special need cannot be met through rehabilitation of the available housing stock; 2. Based on objective data in its annual approved housing strategy, a high priority need for such housing exists in the jurisdiction; and there is not a supply of vacant, habitable, public housing units in excess of normal vacancies resulting from turnovers that could meet the specified need. 3. The HOME funds are used for new construction of one or more of the following: a. Housing for families of five or more persons; b. Housing for persons with disabilities; C. Single room occupancy housing; and d. Housing that is necessary to further the desegregation or racial deconcentration of housing within the jurisdiction pursuant to a court -approved settlement agreement, compliance agreement, or voluntary plan approved by HUD if tenant -based assistance is not sufficient to meet the specified need within a reasonable time. (d) If the participating jurisdiction intends to provide tenant -based rental assistance; The use of HOME funds for tenant -based rental assistance is an essential element of the participating jurisdiction's annual approved housing strategy for expanding the supply, affordability, and availability of decent, safe, sanitary, and affordable housing. (e) The submission of the program description is authorized under State and local law (as applicable), and that it possesses the legal authority to carry out the Home Investment Partnerships (HOME) Program, in accordance with the HOME regulations; (f) It will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act E of 1970, as amended, implementing regulations at 49 CFR part 24 and the requirements of 24 CFR 92.353; (g) It and State recipients, if applicable, will use HOME funds pursuant to its Comprehensive Housing Affordability Strategy (CHAS) approved by HUD and all requirements of 24 CFR Part 92; (h) It will or will continue to provide a drug -free workplace by: 1. Publishing a statement notifying employee that the unlawful manufacture, distribution, dispensing, possession, or'use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employee for violation of such prohibition; 2. Establishing an ongoing drug -free awareness program to inform employee about - (a) The dangers of drug abuse in the workplace; (b) The participating jurisdiction's policy of maintaining a drug -free workplace; (c) Any available drug counseling, rehabilitation, and employee assistance programs; and (d) The penalties that may be imposed upon employee for drug abuse violations occurring in the workplace; 3. Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph (1); 4. Notifying the employee in the statement required by paragraph (1) that, as a condition of employment under the grant, the employee will -- (a) Abide by the terms of the statement; and (b) Notify the employee in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction; 5. Notifying the agency in writing, within ten calendar days after receiving notice under paragraph 4(b) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to every grant officer or other designee on whose grant activity the convicted employee was working, unless the Federal agency has designated a central point for the receipt of such 3 (i) notices. Notice shall include the identification number(s) of each affected grant; 6. Taking one of the following actions, within 30 calendar days of receiving notice under paragraph 4(b), with respect to any employee who is so convicted -- (a) Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or (b) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State or local health, law enforcement, or other appropriate agency; 7. Making a good faith effort to continue to maintain a drug -free workplace through implementation of paragraphs 1, 2, 3, 4, 5 and 6. 8. The grantee may insert in the space provided below the site(s) for the performance of the work done in connection with the specific grant: Place of Performance (Street address, city, county, state, zip code) City Lubbock 1525 13st Lubbock, Texas 79457 To the best of its knowledge and belief: 1. No Federal appropriated funds have been paid or will be paid, by or on behalf to it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress in connection with the awarding of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; 2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and n u 3. It will require that the language of paragraph (h) of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. City of Lubbock HOME Investment Partnership Program FY 1993 Program Description Program Overview The HOME Investment Partnership Program was created with the passage of the National Affordable Housing Act in 1990. HOME is a federally funded, large scale grant program for housing. Funds are allocated by a formula to participating jurisdictions who receive funds to operate the program. HOME is designed as a partnership between the Federal and local governments, and those in the for profit and non profit sector who build, own, manage, finance, and support low income housing initiatives. The major program activities include; a) First Time Homebuyers Program b) Homeowner property rehabilitation c) Rental housing production and rehabilitation d) Tenant -based rental assistance. There are three major operating considerations; a) HOME funds must be matched by non federal funds. b) No HOME funds can be used for property owners or tenant with gross annual incomes greater than 80% of the median income; c) Community Housing Development Organizations receive a 15% set aside for eligible activities. The City of Lubbock received the designation as a participating jurisdiction in FY 1992. The City of Lubbock's FY 1993 formula allocation is $701,000. The intent of the City of Lubbock is to expand the supply of decent, safe, sanitary and affordable housing. The Comprehensive Housing Affordability Strategy (CHAS) Annual Plan which was approved by the Department of Housing and Urban Development (HUD) on January 26, 1993 identified the priority housing needs and target populations. During the CHAS development process, HOME funding was identified as a potential funding source for the implementation of housing programs and initiatives. The CHAS included strategies for meeting the needs of the general housing population as well as for special needs populations. FY 1993 HOME Program Description Page 2 The general housing strategies as identified in the CHAS include; Provide resources to preserve the existing housing stock for very low and low income households. The viability of existing neighborhoods is determined by the condition and preservation of the existing hous- ing stock. The preservation of the existing stock promotes the maximum, optimal utilization of public in- frastructure as well as provides effective support for existing city components; central business district, Texas Tech, public school. The preservation of exist- ing housing is more cost effective and provides additional access to homeownership opportunities for low income people. Provide adequate rental housing opportunities to very low income renters. The renter population is approaching 50% of the total housing usage in the City. The renter population is the fastest growing population and a recognition of the role of rental housing in addressing housing needs is necessary. The growing elderly and single heads of households population accentuate the needs for suitable, affordable, and standard rental units. Provide and promote homeownership opportunities for low income homebuyers. Homeownership has a strong economic impact which ex- tends beyond the housing and neighborhood issues. Access to homeownership has become very limited for low income residents. The stagnation of the housing market leads to additional deterioration and abandonment of existing housing stock. Provide accessible, affordable housing for people with disabilities. To meet.the needs of persons with disabilities, a rehabilitation program which includes an emphasis on barrier removal and is targetd to persons with self care or mobility limitations should be implemented. .. ._ kip. .. .- ... _r. . A .. ... -. ....._ er ...,.' _.. ,... .. ... .. The special population housing strategies as identified in the CHAS include; Provide transitional service enriched housing for homeless families and families at -risk of becoming homeless. FY 1993 HOME Program Description Page 3 Emergency shelter facilities are available. However, many families cannot find or afford more permanent housing. The growing number of single head of household families intensifies the need for a coordinated comprehensive approach to new and emergency facilities for permanent housing. Provide accessible service enriched facility for adolescents and youth. There is a growing number of runaways and abandoned youth in our community. This population represents a group which requires protection, prevention and education. This group represents a high potential service users of the future, i.e., criminal treatment, hospital and assisted housing. Provide a service enriched facility for elderly and persons with disabilities. The elderly population is the fastest growing population sector. The provision of a respite care center provides relief for care -givers, allows care givers to continue working and prevent institutionalization. Allocation of HOME Resources Based upon these identified needs, the City of Lubbock proposes the following activities be implemented with HOME funding: Owner Occupied Rehabilitation Rental Occupied Rehabilitation CHDO Set Aside Program Administration HOME Rental S Owner Match $325,750 $0 $325,750 200,000 200,000 105,130 0 105,150 70.100 - TOTAL — $701,000 $200,000 $430,900 $87,625 FY 1993 HOME Program Description Page 4 Rehabilitation Programs The owner occupied rehabilitation program will be designed to assist low income homeowners who occupy existing housing stock. These programs will parallel and coordinate with existing reha- bilitation efforts funded through the Community Development Block Grant Program. The program will be available to low income homeowners who own the property. The City will accept fee simple title, a 99-year leasehold interest, land sales contracts as evidence of ownership or covenants running with the land. The property owner will be required to occupy the property as a principal residence. The value of the property will not exceed the 203(b) mortgage limits for the area and the type of dwelling. The HOME contribution will not exceed the 221 (d) (3) per unit limits. The owner occupied rehabilitation component may include both a moderate rehabilitation program and a substantial rehabilitation program, and/or a reconstruction program. At a minimum the rehabilitation will meet the Section 8 Housing Quality Standards, Property Rehabilitation Standards, and local building codes. The reconstruction program will include properties which are not feasible for rehabilitation. This determination will be made following a property inspection as well as a financial feasibil- ity analysis. The reconstruction program will be available to low and very low income homeowners. These programs will utilize interest bearing direct loans, deferred payment loan and/or grants as the form of financial assistance. The City is currently implementing a below market rate loan program which will serve as the model for these HOME funded rehab programs. These loans will be serviced in-house through a newly implemented loan portfolio program. The provisions -of the program will be included in the loan documents and recordable legal documents. The rehabilitation component will also include the rehabilitation of rental housing. The rehabilitation of units to be utilized by the elderly, ,end _single head _,qf households with. families will receive priority -as well -as programs which support neighborhood revitalization efforts. An additi-,pnia- I r gt.,irehabilitation of housing to be~ utilized to address -specific needs identified in the CHAS. Specifically, the development of housing for elderly, single head of households;°and/or-large families. �_ _ FY 1993 HOME Program Description Page 5 The tenants of the rental rehabilitation projects must be tar- geted so that 90% of the HOME funds will be utilized for tenants which have annual incomes that are 60% of the area median income or less. For these reasons, 200 of the HOME units must be occupied by households with 80% of the median income and 80% of the HOME units must be occupied by households with 50% of the median income. The rents will be controlled and monitored annually for a five year period. The rents will be calculated annually based upon the fair market rents or the high rents as provided by HUD. The City proposes to utilize the available federally owned properties in cooperative projects with the Lubbock Housing Authority. An emphasis will be on the preservation of rental housing for low income tenants. The HOME subsidy per unit will not exceed the 221 (d) (3) limits. The property must meet the Section 8 Housing Quality Standards as a minimum after rehabilitation. Additionally, the units will be inspected each year for continued compliance with HQS. Community Housing Development Organizations (CHDO's) As a program requirement, 15% of the City's HOME allocation must be set aside to be utilized by a CHDO. For the City of Lubbock this requirement represents $105,150. The City of Lubbock has a limited availability of non-profit organizations which develop, or own housing. The CHAS described the need to develop and expand the capacity of non -profits in this area. The initial focus of the City will be to develop the capacity of the non- profits. The City has a contract under the HOPE III program with a local non-profit to provide housing counseling and act as a non profit participant. This will provide an opportunity to build a stronger relationship to insure future success for development activity. Additionally, the City is working with the Enterprise Foundation and Development Training Institute to provide technical assistance to designated CHDOs. The CHDO must be organized under state law, having a 501(c) status, and inclqde.the provision of decent housing that is affordable to -love -and moderate income persons among its purposes. Additionally, the CHDO must have the required governing board composition in order to meet the HOME requirements. The CHDO will haves. =QpatZ , eA-zapaci_ty--to carry out HOME assisted projects andmeetthe--appropriate financial standards. The CHDO's selected to participate in the program must have at least one year of experience serving the community. FY 1993 HOME Program Description Page 6 The City will begin immediately to identify and strengthen the CHDO's to sign agreements and initiate projects within the required 24 months. Program Match Requirement The HOME program requires a match of local resources. A participating jurisdiction must provide a 25% match for tenant based rental assistance, moderate and substantial rehabilitation and a 30% match for new construction. The City of Lubbock qualified for a partial reduction of the match requirement of 50%. With this reduction the City of Lubbock's match requirement will range from $37,625 to $105,150 depending on the activity. The City of Lubbock proposes to utilize the following sources to meet the match requirements: a) value of land or real property, b) proceeds from taxable or tax exempt bonds issued by states or localities and repayable from project revenues, subject to certain limitations, c) value of site preparation, construction materials, and donated/voluntary labor in connection with the site preparation and construction or rehabilitation of affordable housing, d) any public funding directed at housing that meets the affordable housing requirements under the HOME program, and/or e) funds from a non federal source. The match is calculated on the entire allocation, which means that some projects could be subsidized entirely with HOME funds, which other units -could --be subsidized with matching resources. Minority Business.,4utreach The City of Lubbock -is committed to the utilization and development _..Qf_mfaority enterprises within the community with special emphasis on minority and woman -owned businesses. The City of TAihba k .hie *� aka ished _an- ongoing --outreach effort through the Minartty-Turdhxsrng-Program: " -This program is- out- lined in Appendix A:'The-Minority Purchasing Program was initiated'folloVifii--a"City+-'Council'directive issued in March, T --�i=:._�...._ - ,eti.-...ram'.'=�..fs sr�_�a� :�rt—�"--'•,-.•�'�. a -- .� _..,r ..r .�,�e F.�1=e_gw+rt A••-"'°'t��l i. ...r rr' ."[*'ref'• .,. ... . . T - - - The outreaah of f orts-,currently followed by- the City of Lubbock includes . FY 1993 HOME Program Description Page 7 1. Continual update of bidders listing to include minority and woman -owned businesses. 2. Workshops to provide information on bidding and contracting procedures. 3. The availability of information packets to interested contractors and vendors. 4. Personal visits to MBC and WBC business to answer specific questions and concerns. Additionally, the City of Lubbock Community Development Staff has an active program to promote and develop MBC and WBC enterprises. Over 50% of the contractors participating in the Community Development activities are minority owned. Affirmative Marketing Commitment The City of Lubbock is committed to fair housing and equal opportunity efforts. Specifically, the activities funded through the HOME program will promote fair housing choice through the following outreach efforts. 1. Advertising of available units will be included in the newspaper of general circulation as well as newspaper which serve the minority communities. 2. All printed information will include the Equal Housing Opportunity logo. 3. The City will utilize outreach efforts to encourage participation of minority, low-income and other populations which are difficult to reach with traditional advertising techniques. 4. The Community Development Department will sponsor at _-.,Least=,one_-.workshop annually to provide information on the application process, review any eligibility cfiteriae;-and other general program information. These proposed-df'fd ts'­have been utilized under current programs. Based upon these efforts the Urban Homesteading program attracted a representative- ss section of the City of Lubbock's low incom rograar a4--houees --vere- provided and theme included 19, or 56% Hispanic, 5, or 15% African _American.2 sdr 2Ggo,.;ar1d-1, -or Xt Asian American.