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HomeMy WebLinkAboutResolution - 3637 - Grant Application - HUD - 1990-91 Rental Rehabilitation Block Grant Programs - 06_13_1991Resolution No. 3637 June 13, 1991 Item #20 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 and submit for the City of Lubbock a Federal Rental Rehabilitation Grant Program Application for the fiscal year 1990-91 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 13th day of June . 1991. B. C. MCMI1qN, MAYOR ATTEST: to Boyd, City Secretary APPROVED AS TO CONTENT: Sandy O trWinistrator Community Developm nt APPROVED FORM: Dennis W. McGill Civil Trial Attorney Kesoiutlon No. .9b.S/ June 13, 1991 Item #20 OMa AppTova1 No.03A8.00aD C B APPLIGATIUN 1-UH FEDERAL ASSISTANCE 2."TIE S1tB1a1ITED Ao oltcarit Identifier 1. TYPE OF SUBM1S31ON: J. DATE RECEIVED BY STATE State Application ldenttlirar Application Preapplication ❑ Construction ❑ Constructron a. DATE RECEIVED BY FEDERAL AGENCY Federal Idenhfiar - ® Pion -Construction ❑ Non -Construction S. APPLICANT INFORMATION Legal Name. — — - Organtzational Und: City of Lubbock Community Development Department Address (give city, county, state, and rip code): Name and telephone number of the person to be contacted on matters involving City of Lubbock this appiroation (Dive area code) P. 0. Box 2000 Sandy Ogletree Lubbock, Texas 79457 (806) 767-2290 Lubbock County i. EMPLOYER IDENTIFICATION NUMBER (E1Nr 7. TYPE OF APPLICANT: (enter appropriate letter in box) A. Stay H Independent School Dist. 7 5. 6 0 0 5 9 0 S County I: State Controlled Institution of Higher Learning C. Municipal J Private Urnverstty IL TYPE OF APPLICATION D. Township K Indian Tribe T3 New ❑ Continuation ❑ Revision E. Interstate • L. Individual F Intermunicipal M Profit Organization If Revision. enter appropriate letter(s) in box(es1:13 ❑ G Special District N. Other (Specify). A. Increase Award S Decrease Award C. Increase Duration D. Decrease Duration Other (specify): S. NAME OF FEDERAL AGENCY: Housing & Urban Development, Ft. Worth, TX 10. CATALOG 01: FEDERAL DOMESTIC 11. DESCRIPTIVE TITLE OF APPLICANTS PROJECT: ASSISTANCE NUMBER: 1 4 • 2 3 O TITLE: Rental Rehabilitation Block Grant 1990-91 Rental Rehabilitation Block Grant Programs 12. AREAS AFFECTED BY PROJECT (cities. counties. states. etc.) City of Lubbock 17. PROPOSED PROJECT: 14. CONGRESSIONAL DISTRICTS OF: Start Date Ending Oats a. Applicant : b. Protect 8-1-90 8-1-91 19th 19th 11. ESTIMATED FUNDING: 19.15 APPLICATION SUBJECT TO REVIEW BY STATE EXECUTIVE ORDER 12372 PROCESS? a. YES THIS PREAPK CATKUAPPLICATION WAS MADE AVAILABLE TO THE a. Federal = .00 64,000 STATE EXECUTIVE ORDER 12372 PROCESS FOR REVIEW ON. DATE b NO E3 PROGRAM IS NOT COVERED BY E O. 12372 OR PROGRAM HAS NOT BEEN SELECTED BY STATE FOR REVIEW b. Applicant f 00 c State S .00 d Local ! .00 e Other = .00 f Program income S .00 17. IS THE APPLICANT DELINOUENT ON ANY FEDERAL DEBT? Yes "'Yes.' attach an explanation No q TOTAL r = •oo 64,000 11. TO THE BEST OF MY XNOWLEDGE AND BELIEF. ALL DATA IN THIS APPLICATION.PREAPPLICATION ARE TRUE AND CORRECT. THE DOCLMENT HAS BEEN DULY AUTHORIZED BY THE GOVERNING BODY OF THE APPLICANT AND THE APPLICANT WILL COMPLY WITH THE ATTACHED ASSURANCES IF THE ASSISTANCE IS AWAROED a Typed Name Of AUthorited Representative b Title c Telephone number B. C. McMinn Mayor (806) 767-2009 d Signature of Authorized ReprPsentafive r e Date Signed . June 13, 1991 . nnn ncrnn n c mn nnr.rmnr,Tm . A DDDnA1 Li Q TO T?Oijr,4 . `Sandy Ogletree, Ggmm. Dev. /�__l/.i .f , .r.u' %' lc,-'Ca.vil Trial Atr_v. 9. r. INSTRUCTIONS FOR THE SF 424 This is a standard form used by applicants as a required facesheet for preapplications and applications submitted for Federal assistance. 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 the program to be included in their process, have been given an opportunity to review the applicant's submission. Item: Self-explanatory. Errtrv: 2. Date application submitted to Federal agency (or State if applicable) & applicant's control number (if applicable). 3. State use only (if applicable). 4. If this application is to continue or revise an existing award, enter present Federal identifier number. If for a new project, leave blank. 5. Legal name of applicant, name of primary organizational unit which will undertake the assistance activity, complete address of the applicant, and name and telephone number of the person to contact on matters related to this application. 6. Enter Employer Identification Number (EI ) as assigned by the Internal Revenue Service. 7. Enter the appropriate letter in the space provided. 8. Check appropriate box and enter appropriate letter(s) in the space(s) provided: —".New" means a new assistance award. — "Continuation" means an extension for an additional funding/budget period for a project with a projected completion date. — "Revision" means any change in the Federal Government's financial obligation or contingent liability from an existing obligation. 9. Name of Federal agency from which assistance is being requested with this application. 10. Use the Catalog of Federal Domestic Assistance number and title of the program under which assistance is requested. 11. Enter a brief descriptive title of the project. if more than one program is involved, you should append an explanation on a separate sheet. If appropriate (e.g., construction or real property projects), attach a map showing project location. For preapplications, use a separate sheet to provide a summary description of this project. Item: Entrv: 12. List only the largest political entities affected (e.g., State, counties, cities). 13. Self-explanatory. 14. List the applicant's Congressional District and any District(s) affected by the program or project. 15. Amount requested or to be contributed during the first funding/budget period by each contributor. Value of in -kind contributions should be included on appropriate lines as applicable. If the action will result in a dollar change to an existing award, indicate only the amount of the change. For decreases, enclose the amounts in parentheses. If both basic and supplemental amounts are included, show breakdown on an attached sheet. For multiple program funding, use totals and show breakdown using same categories as item 15. 16. Applicants should contact the State Single Point of Contact (SPOC) for Federal Executive Order 12372 to determine whether the application is subject to the State intergovernmental review process. 17. This question applies to the applicant organi- zation, not the person who signs as the authorized representative. Categories of debt include delinquent audit disallowances, loans and taxes. 18. To be signed by the authorized representative of the applicant. A copy of the governing body's authorization for you to sign this application as official representative must be on file in the applicant's office. (Certain Federal agencies may require that this authorization be submitted as part of the application.) 5F :24 •PEV 4.88, Sack Resolution No. 3637 June 13, 1991 Item #20 RENTAL REHABILITATION PROGRAM The City of Lubbock is applying for $64,000 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 12 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 executed. II. PROJECT FINANCING _s 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 1 after a review of the project income/expense statement. The amount of rental rehabilitation subsidy shall not exceed 500 of the total cost of the rehabilitation and the amount of rental rehabilitation for any project shall not exceed $5,000 per unit for efficiency units, $6,500 per unit for one -bedroom units, $7,500 per unit for two -bedroom units, and $8,500 per unit for three or more -bedroom units. The minimum public subsidy shall not be less than $2,000 per unit per project. The loan amount from the private lender will be determined by the lender using its own underwriting criteria. The City's loan will be structured as a no -interest deferred loan which is forgivable 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 condition 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 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. 2 IV. NEIGHBORHOOD SELECTION, NEIGHBORHOOD PRESERVATION AND LOWER INCOME BENEFIT The City of Lubbock's Planning Department Neighborhood Statistics Data for the City is used to determine neighborhood selection. The Neighborhood Statistics Program compiled information on the income, racial, and housing characteristics of the neighborhoods. The target neighborhoods for the 1990-91 Rental Rehabilitation Program reflect current neighborhood conditions. The area is limited to neighborhoods where the neighborhood decline is calculated to meet the low income requirements. The City anticipates the impact of this program on neighborhood preservation to be positive. During the preparation of the City's 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 evaluation 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. The neighborhood rental rates will be compared to Section 8 Fair Market Rents. The City is requesting a 700 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 City's 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 _gassessing the tenant for inclusion in the Section 8 Certificate 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 guidelines is 50% of the City's median income or below. 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 encourage the rehabilitation of large family units by allocating only 20% of the Rental Rehabilitation Grant funds for one bedroom or zero 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 two 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. N 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 disbursement of the available funds. Quarter o of Fund Committed 1 25 a 2 75 0 3 100 0 4 100 a VIII. 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. O. Box 2000, Lubbock, Texas 79457. The telephone number is (806) 767-2290. The local contact person for the Lubbock Housing Authority is D.C. Fair, Executive Director, Lubbock Housing Authority, P. O. Box 2568, Lubbock, Texas. The telephone number is 762-1191. s 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 comply with the Drug -Free Workplace requirements in accordance with 24 CFR part 24, subpart F. The City of Lubbock further certifies that: (1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, 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 the awarding of any Federal contract, the making of any Federal grant, the making 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) _Jf 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 Q Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. (3) The City shall require that the language 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. 7 R�:s7 City of Lubbock Rental Rehabilitation Program Affirmative Marketing Policy In receiving financial assistance under the Rental Rehabilitation Program, owners must agree to participate in an affirmative marketing plan. Affirmative marketing has two primary objectives: 1. Potential tenants from all racial, ethnic groups are informed about available vacant rehabilitated units. 2. In particular persons, who are not likely to apply for this housing without special outreach, are informed about the rehabilitated units. The affirmative marketing plan is designed to promote the concept of fair housing and to help eliminate any discrimination in housing because of race, age, sex, or handicap. I. Requirements for compliance with affirmative marketing. a. All vacant units must carry the Equal Housing Opportunity Logo. b. Any yard signs used to attract tenants should exhibit Equal Housing Opportunity Logo. C. Owners are encouraged to advertise units in other publications such as the Thrifty Nickel, which is free to the public and available at grocery and convenience stores. II. Procedures to inform, and solicit applications from, persons in housing market area who are not likely to apply. a. Vacancies will be reported to the City's Housing Office to be posted and made available to the public. b. Owners are encouraged to list their vacancies with the rental directory agencies frequently used by low to moderate income families. C. Owners should submit copies of published advertisements to be reviewed for compliance with the Affirmative Marketing Plan. _s III. Assessment of owner's efforts in affirmative marketing and Corrective actions for failure to participate. a. Initial leasing of all units will be monitored to assure that at least 700 of all units are initially occupied by low to moderate income families and that affirmative marketing was used. In those units leased to unassisted tenants, the Rental Application Forms will be reviewed to determine the effectiveness of advertisements and outreach attempts. b. Each owner's affirmative marketing attempts will be assessed. If a blatant disregard of the policies has been demonstrated, the Community Development Department will refer the matter to the City Attorney to be considered as a possible violation of the Fair Housing Ordinance. As a last resort, after counseling and continued lack of compliance, an owner may be required to repay upon demand the rental rehabilitation assistance received from the City. a