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HomeMy WebLinkAboutResolution - 2373 - Grant Application - HUD - 1985-86 Rental Rehaabilitation Grant Program - 07_10_1986Resolution #2373 July 10, 1986 Agenda Item #20 MH:js RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1. THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute and submit for the City of Lubbock a Federal Rental Rehabilitation Grant Program Application for the fiscal year 1985-86 and related documents, which application attached herewith, shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this ATTEST: Boyd, City Secretary APPROVED AS TO CONTENT: Sandy OglAree p CCommunity Development Administrator APPROVED AS TO FORM: Michele Hart, Assistant City Attorney loth July .-- day of _ �S . B. C . Moil , MAYOR 1986. • •. EQERAL ASSISTANCE !. A►PLl- wrTI APPL1- CAT04 1. TYPE OF ❑ NOTICE OF W EM PP T*NAIJ K* W - fal6As^4SJON ❑ mw FIER (,vex,. AP'PLIGATTDN { P%pm ► ❑ AJ'PLlGAT1pN hstl I a1e"k . , ;3-57 OAie way No 0348-000i L WIMSER 3. STATE a ► LOWSER OKI- CGATION SA I - TX - 1010201 ANTI. FIER b. DATE JI= TOM b. DATE rear ..e"oi i t A=0WW A.SSK3NED r..r a.arh .tq 1° tT STATIL H 4. LEGAL APPUC+ANWRECONENT �6. EMPLOYER "NTIFICAT10N NUMBER (EIN) a Appkc,tnM Nan+Ia City o f Lubbock b.ogw=+ %nLife Community Development Department 6. G tr n/P.O: Boa P.O. Box 2000 PRO- a NUMBER 111 41 ' 12 1 1 1 81 d.CRY Lubbock •.c.�a* Lubbock t. ftm Texas ♦ rw Ooa.. 79457 (pr" CF" MVLT tE ❑ R om,,, Sandy Ogletree (806) 762-6411, ext. 2290 b• ME Rental f TAN&) Rehab i 1 i tat ion Grant 7. TTTLP OF APPLICANT'S PROJECT (UM wton fV of N* b- 10 pVA% a soft-rwy daKnPtian of ra ! TYPE OF APPLC ANT/REOPIENT i pro¢aeij s .-+a..r %". Cum 1985-86 Rental Rehabilitation Grant Program Sure oppvpr;ew )lice. 9. AREA OF PROJECT IMPACT (Na- ee-- -AncL isaw m) 10. ESTIMATED NUMBER 11. TYPE OF ASSISTANCE City o-f Lubbock OF PERSONS BENEFIT*4 a'•"""' Ewe 5-004w L.,.. 173,449 PUN Aped) 12. PROPOSED FUNDING 113. CONGRESSCftAL DISTRtCTS OF; 14. TYPE OF APPLICATION a. FEDERAL s 66,000 1 a- APPLICANT b. PROJECT b. APPLICANT .00 -.19 t h 19 t h C. STATE .00116. PROJECT START 16. PROJECT LOCAL -09 DATE rewr awsl fey DURATION { H 86 9 01 12 krc OTWR' 19. DATE DUE TO raw? wawd dey Tort is66,000 W FEDERAL AGENCY ► 1° 86 7 to 19. FEDERAL AGENCY TO RECEIVE REOUEST Housing & Urban Development, Ft. W, a ORGANLZATIONAL UNIT (IF AMIROPA ATE) 1b. ADMINISTRATWE CONTACT (IF M r.31.._ 73�� 22. To Vw btst of my know**ga and beast. Toe. data in Vw prOAPOCAbOn/aaplication APPLICANT ar* IRA and aoer*ct, ft dootlrnanl Aas CERTIFIES beef. oj�Y auttaaad by Vw �? TKATe+ body of V* apPkamt and ft applicant win comply Witty the a%&&*d asuranoea Jt ttia assatsnca is app-W06 a TYPED NAME AND TITLE � 7>E^YIr+G REPRE• B. C. McMinn, Mayor SENTATIVE 24. APPLIGA• rwr wowtk dry RECEIVED '19 _ 27. ACTION TAKEN 2b. F O IL AWARDED O b. REJECTED a FEDERAL D cr RETURNED FOR AM NDMENT b. APPUC.ANT O CL RETURNED FOR W E.O. 12372 SUBAMISS►ON c- STATE BY APPLICANT TO d. LOCAL STATE O a. DEFERRED a. OTHER O L WITHDRAWN IL I?. TYPE OF CKOOGE (Fix, Ide � 14) e oarM F- ww tspgyl Down Ir-4psrw . 0090w D-0.0um. 0090w E--C4n= ws, E,,...X*V. /!M Oyu FTTI a Ttb. INIb WIRrt%M IN I tryi I rntArr'LA-^ IIyfV!AFL EXECLMvE ORDER 12372 PROCESS FOR REVIEW ON: DATE b. NO. PROGRAM tS NOT COVERED BY E.O. 12372 ❑ OR PROGRAM KAS NOT BEEN SELECTED BY STATE FOR REVIEW ❑ b. SIGNATURE ii 25. FEDERAL APPLICATION IDENTIFIO TN NUMBER 26. gr C ),-2* - racr wewtk h 29. ACTION DATE- 19 _ AO 31. CONTACT FOR ADDITIONAL tNFI TiON (Name ewd IeLqwk&w &Mined .00 . AO .00 .00 . 24, EXtSTP4 FEDERAL GRANT IDENTtFICATJON NUMBER REMARKS ADDED , ' 30. roar wwtk d" STARTING DATE 19 32. Ymr ~mrh den ENDiNG DATE 19 33. REMARKS ADDED DY� DNo NSN 75"1-00"162 424-103 STANDARD FORAM 424 PAGE 1 (Row, 4-8A) AREVSJItS EDITION I mwrjbe,d by 0.41B Cvrr/er A-102 1. GENERAL INSTRUCTIONS FOR THE BF-424 This is a standard form used by appiicants as a required facesheet for preapplications and applications submhted in accordance wfth OMB Cjrcular A-102. It will be used by Federal agencies to obtain applicant certification that states which have established a review and comment procedure in response to Executive Order 12372 and have selected It* program to be 'included in tttieir pro' s have been given an opportunity to review the applicant's submission. APPLICANT PROCEDURES FOR SECTION I Applicant wad complete all Aems in Section I with the exception of Box 3, "State Application identifier." K an Mean is not app� ble. write "NA." If additional space Ls needed. j aril an asterisk ".-and use Section rV. An explanation follows for each Gem. Alarm 1. Mark ap€xop late box. Preapplication and application us described in OMB Circular A.-102 and Pederal agency program instructions. Use of ilhis ibrm w a Notioe of Intent is at State option. Federal agencies do t'ot raQL*v Nooses of tenant. 2a. Appioant's own cait; number, M desired. 2b. Oahe Section He prepared (at applicant's option). 3a. Nurnbar atra.igned by State. 3b. Dale assigned by State. a"h. Legal name of applicant, name of primary oc;&" bonal unfit which will widertake tlx assistance activity, oornplete address of applicant, and name and telephone number of fie person who can provide further information about this request. S. Employer identih- tion Number (EtN) of applicant as assigned by the ktlrrnal Revenue Service. 6a, Lice Catalog of Federal Domestic Assistance (CFDA) number assigred io program under which assistance is requested H more than `one program (e.g., joint funding), check "multiple -and explain in Section IV. K urknown, cde Public Law or U.S. Code. 6b. Program t5e from CFDA. Abbreviate K necessary. 7. Use Section IV to provide a wmmary description of the project. f< appropriate, i.e., K project affects particular sites as, kx axampie, ( Coristruction or real property projects, arac i a map showirig the project location. a. " Gty" 16:k is town, township or other municipality. 9. Lie at* Largest unit or units affected. such as State. county. or cdty. 10. Estimated rxxnber of persons diroc ty 4enefning from project. 11. Check the type(&) of assisance requested. A. Basic Grant --an original request for Federal funds. B. Supplemental Grant-4 request to increase a basic grant in certain cities where the eligible applicant cannot supply Nie requn-d snatching share of the basic Federal program (e.g. grants awarded by the Appalachian Regional Commission to provide the applicant _a taa.id'tirig share) E Oftr. Explain in Section TV. 12. Amount requested or to be contributed during the first funding/budgel period by each contributor. Value of in- and conr "ons should be included. K tlx action is a change in dollar amount of an existing grant !hm (a rwmion or augmentation under them 14). indicate only the amount of the change. For decrease&. erciose Vie amount in parenr*sses It bath basic and supplemental amounts are 0dude0, breakout in Section N. For rr-Apie program funding, use btals and show program breakouts in Section N. 12a--amarnt requested from Federal Government. nt 12b--amouapplicant wilt 'cont bm. 12o-amount from State, K applicant is not a State. 126--omount from ideal government. K appi"nt is not a kcal government. 12*-*mwrd from any other sources, explain in Section N. 13b. The district(s) where most of action work will be accomplished. K city- wide or State-wide, covering several districts, write "dty-wide" or ••Snit -wide." 14. A. New. A submtital for project not previously funded. B. Renewal. An extension for an additional funding/budget period for a pnoje� having no projected completion date, but for which Feder&! support must be renewed each year. C. Revision. A modification to project nature or scope which may resuft in funding charge (increase or decrease). D. Continuation. An extension for an additional funding/budget period br a project with a projected completion date. E. Augmentation. A requtrernent for additional funds for a project previvisly awarded funds in Nee same funding/budget period. Project nature and scope unchanged. 15. Approximate date project expected to begin (usually associated v th estimated date of availability of funding). 16. Estimated number, of monV-4 to oomplek project after Federal funds are available. 17. Complete only for ravisions (fkrn 14c), or augmentations (item 14e). 18. Date preapplication/application must be submitted to Federal agency in order m be eligible for funding consider&licit. 4b i9. Name and address of the Federal agency to whist, Nils request is addressed kidiGate as eieariy is possible the name of the office to which the application wilt be dekvered. 20. Existing Federal grant identification number If this is rot a new request and directly relates to a previous Federal action. Otherwise, write "NA." 21. Check appropriate box as to whether Section IV of form contains remarks and/or additional remarks are attached. APPLICANT PROCEDURES FOR SECTION li Applcarrtt vtM always complete either item 22a or 22b &nC items 23a and 23b. 22a. Complete if application is subject to Executive Order 12372 (State 22b. Check if application is not subject to E.O. 12372, review and comment). 23a. Name and title of authorized representative of legal applicant. FEDERAL AGENCY PROCEDURES FOR SECTION III Applicant compketes only Sections t and H. Section NI is completed by Federal agencies. 2f" Use so identity award actions. 27. Use Section RI to amplify where appropriate 2B. Amount to be contributed during the first funding/budget period by each contributor. Value of in -kind Contributions will ;be included. If ft action is a change in dollar amount of an existing grant (a recision or augmentation under item 14). indicate only the amount of Change For e*c,easn`, enclose Vie amount in parentheses. it both basic and supplemental amounts are irotuded, breakout in Section IV. For muttrple will contribute. 28c-amount from State, If applicant is not a Stalf 28d--amount from iocat government, if applicant its not a local goverr• ment 26e--amount from arty other sources, exptam in Section ►V. 29. Date action was taken on this request. 30. Date funds with become availa e. 31. Name and telephone number of agency person who can provide moi informal*n regarding this assistance. 32. Date &tier which funds wits no forger be available for obligation. RENTAL REHABILITATION PROGRAM The City of Lubbock is applying for $66,000 from the Department of Housing and Urban Development for the Rental Rehabilitation Program. This program was authorized under Section 17 of the United States Housing Act of 1937 which was enacted into law In Section 301 of the Housing and Urban -Rural Recovery Act of 1983. The City of Lubbock Is a direct grantee of the program as based on the funding formula as established by the regulations. The following Is a description of the program as designed by the City of Lubbock. i. PROGRAM OVERVIEW The Rental Rehabilitation Grant Program will be utilized for the rehabilitation of real property to be used for primarily residential rental purposes. It is proposed that approximately 13 units will be assisted by this program. The objectives of the Rental Rehabilitation Program for the City of Lubbock are: - To Increase the stock of standard rental units for low -to -moderate income tenants; - to involve private sector lenders to a significant degree In project financing; - to limit public subsidy to only the amount necessary to make a project feasible; - to avoid any rent controls and to have rehabilitated properties rent for market rents as defined by the public sector. The City of Lubbock will provide assistance to rental property owners to encourage the rehabilitation of property that might otherwise not be economically feasible to repair. The Rental Rehabilitation Program will be jointly conducted by the City of Lubbock's Community Development Department and the Lubbock Housing Authority. A Memorandum of Agreement which outlines the willingness of the Lubbock Housing Authority to administer the Section 8 Certificate Program in conjunction with the Rental Rehabilitation Program Is attached. (Exhibit A) 11. PROJECT FINANCING Projects will be financed through a combination of rental rehabilitation loan funds, private lender funds, and owner's equity. The amount of City funds provided will be determined after a review of the project Income/expense statement. The amount of rental rehabilitation subsidy shall not exceed 50% of the total cost of the rehabilitation and the amount of rental rehabilitation for any project shall not exceed an average of $5,000 per unit. The minimum public subsidy shall not be less than an average of $600 per unit per project. The loan amount from the private lender will be determined by the lender using its own underwriting criteria. The Cityts loan will be structured as a no -interest deferred loan which is forgiveable at the end of ten years. If the property owner does not comply with the guidelines of the program, the loan becomes immediately due and payable. The following conditions must be met to be In full compliance of the program: a) The property must be maintained as a residential property, which is leased or rented to members of the public for residential purposes. b) The property must be maintained in a safe and sanitary con- dition and in compliance with all City of Lubbock Building, Plumbing, Electrical, and Mechanical Codes. c) The property may not be converted to condominium ownership or any form of cooperative ownership. If each of these conditions is complied with for a period of ten years, then the public subsidy loan will be forgiven. A mechanics lien will be filed on each accepted project, and the conditions of the Rental Rehabilitation Program will be reviewed annually for compliance. III. ELIGIBLE REPAIRS The rental rehabilitation loan may be used for repairs necessary to meet the; a) basic health, safety, and fire standards contained In the City of Lubbock's Building, Plumbing, Electrical, and Mechanical Codes, b) the Section 8 Housing Quality Standards and, c) the cost effective energy requirements. A limited amount of non -code but essential repairs, as defined In the regulations 570.10 (g)(i)(ii), will be allowed in rehabilitating the structure. The cost of non -code repair will not exceed 10% of the total cost per unit of a project. IV. NEIGHBORHOOD SELECTION, NEIGHBORHOOD PRESERVATION AND LOWER INCOME BENEFIT The City of Lubbock►s Planning Department recently completed the Neighborhood Statistics Program for the City. This Information will assist in the neighborhood selection process. The Neighborhood Statis- tics Program complied information on the Income, racial, and housing characteristics of the neighborhoods. -2- The target neighborhoods for the program will be within the current Community Development Target Area. This area is limited to neigh- borhoods where the median income of the residents is 80% of the City►s median income or less. Only projects which are located in a low income neighborhood will be assisted in the Rental Rehabilitation Program. The City anticipates the impact of this program on neighborhood preser- vation to be positive. During the preparation of the Cityts Housing Assistance Plan, the lack of available decent, safe, and sanitary units in the rental market became acutely apparent. This program will assist the City in its goal of stabilizing neighborhoods and in increasing the number of available rental units. Other factors which will be considered during the neighborhood evalu- ation are: median income, median rent levels, the historical trend of the area, current and projected land use, and current housing stock conditions. With each of these considerations, a rapid increase in the rent levels in the selected neighborhoods is not anticipated. A market analysis of targeted neighborhoods will be conducted which assesses the current rent structure and vacancy rates in preliminarily selected neighborhoods. The neighborhood rental rates will be compared to Section 8 Fair Market Rents. The City is requesting a 70% lower benefit guideline. This guideline will minimize displacement of existing tenants in projects to be rehabilitated and will provide a reasonable margin of error during project or neighborhood selection. To further insure the Cityts compliance with the lower income benefit guideline, the City's project selection criteria will favor properties that are occupied by Section 8 eligible tenants or properties which are vacant at the time of applicant submission. The City of Lubbock will require that the project applicant provide information pertinent to the determination of Section 8 eligibility for existing tenants. This information will be required upon application to the Rental Rehabilitation program. This information will be utilized during the evaluative process and to assist the City in compliance with the lower income benefit guidelines. This information will also be utilized in assessing the tenant for inclusion in the Section 8 Certifi- cate Program and in calculating potential relocation benefits. Potential tenants for the available or vacant rehabilitated units will be selected from the City of Lubbock's Section 8 waiting list. By definition, tenants selected from this list who are eligible for Section 8 assistance will be lower income. Additionally, the City of Lubbock's project selection criteria will place a higher priority on properties occupied by very low income persons. The very low income guideline is 50% of the City►s median income or below. -3- V. LARGE FAMILY AND VERY LOW INCOME EMPHASIS The Rental Rehabilitation Program is placing a major emphasis on the rehabilitation of units with two or more bedrooms. These larger units are to be occupied by large families. The City of Lubbock will en- courage the rehabilitation of large family units by allocating only 30% of the Rental Rehabilitation Grant funds for one bedroom units. The City of Lubbock's project selection criteria will place a higher priority on properties occupied by very low income persons and those properties which have three or more bedrooms. VI. SELECTION OF PROJECTS Each project will be reviewed according to criteria which includes the following: a) The project is consistent with the objectives of the Rental Rehabilitation Program. b) The private funds and owner's equity are sufficient to complete the financing of the project. c) The location of the project Is consistent with the low and very low income guidelines and Is In a targeted neighborhood. d) The condition of the property is substandard, and It can be rehabilitated to meet local codes with the available financing, both public and private. e) The level of displacement Is minimal. f) The project contains the targeted number of one and two bedroom, or larger units. The cash -flow analysis for each project will be completed to determine the financial feasibility of the project and to minimize the level of public subsidy required for each project. This is also essential in evaluating the rent reasonableness after rehabilitation of the unit. The City of Lubbock's agreement with the selected property owners will formalize the owner's agreement to comply with the program guidelines. If the property is not maintained as originally proposed, the City has the option of calling the lien due in full. VII. IMPLEMENTATION SCHEDULE FOR RENTAL REHABILITATION PROGRAM Immediately following the grant agreement for the Rental Rehabilitation Program, the City anticipates the following schedule for the disperse- ment of the available funds. -4- Quarter % of Fund Committed 1 0% 2 25% 3 50% 4 100% Vill. OTHER PROGRAM REQUIREMENTS The City of Lubbock will require all program participants to comply with all applicable nondiscrimination, affirmative marketing and equal opportunity requirements as required by the statute. These requirements will be formalized in the agreement between the property owner and the City of Lubbock. IX. CONTACT PERSON The local contact person is Sandy Ogletree, Community Development Administrator, City of Lubbock, P. 0. Box 2000, Lubbock, Texas 79457. The telephone number is (806) 762-6411, extension 2290. The local contact person for the Lubbock Housing Authority is D.C. Fair, Executive Director, Lubbock Housing Authority, P.O. Box 2568, Lubbock, Texas 79408. The telephone number is 762-1191. -5- CERTIFICATIONS FOR THE RENTAL REHABILITATION BLOCK GRANT PROGRAM The City of Lubbock certifies that: 1. The submission of the program description is authorized under State and local law (as applicable), and the grantee possesses the legal authority to carry out the rental rehabilitation program described therein, in accordance with this part; 2. Its rental rehabilitation program was developed after consultation with the public and its description of program activities referred to in paragraph (b) (1) of this section has been made available to the public; 3. If applicable, its lower Income benefit standards should be reduced to 70 percent, as provided by §511.10 (2) (2): this certification will be accompanied by an explanation of the reason why the reduced benefit standard is necessary, as provided In §511.10 (a) (2); 4. A written tenant assistance policy conforming to the requirements of §511.10 (h) (92) has been adopted; 5. It will conduct and administer its rental rehabilitation program, and, if applicable, ensure that State recipients conduct and administer their rental rehabilitation programs, in conformity with the requirement of §511.10 (m); 6. It will conduct and administer its rental rehabilitation program and, If applicable, ensure that State recipients conduct and administer their rental rehabilitation programs in accordance with the requirements of this part. 762 6411 P. 0. Sox 2000 LUBBOCK, TEXAS 79457 December 13, 1984 Mr. I. L. Sanchez - Davis Acting Regional Administrator Department of Housing and Urban Development Fort Worth Regional Office 221 West Lancaster Avenue P.O. Box 2905 Fort Worth, Texas 76113 Dear Mr. Sanchez - Davis: This letter serves as a statement of cooperation between the City of Lubbock and the Lubbock Housing Authority (LHA) in the Rental Rehabilitation Block Grant Programs. This statement is submitted as a part of the City of Lubbock's application to the Rental Rehabilitation Program as required by Section 511.20 (13) (1) of the program guidelines. The City and the Housing Authority have a central goal of preserving the City's existing housing stock and providing decent, safe, and sanitary housing for low and moderate income residents. With this goal in mind, the Lubbock Housing Authority will cooperate with the City in the implementation of the Rental Rehabilitation Program. The Lubbock Housing Authority will assist in the development of the policies and procedures necessary for the effective and efficient operation of the program, and the Lubbock Housing Authority will perform the duties required for the administration of the Section 8 Certificate Program. If any additional information is needed please contact Sandy Ogletree, Community Development Coordinator, City of Lubbock, (806) 762-6411, extension 2290. Sincerely, u ian mpson a an Lubbock Housing Authority Board glanHenr#7ayor 1321 x.c. D. C. Fair, Director - Lubbock Housing Authority Jim Bertram, Assistant City Manager for Development Services Sandy Ogletree, Community Development Coordinator