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HomeMy WebLinkAboutResolution - 2005-R0276 - Approve CDBG - COL-Community Development Housing HEEELP Program - 06_23_2005Resolution No. 2005-RO276 June 23, 2005 Item 57 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Council of the City of Lubbock does hereby approve of the proposal for the COL — Community Development Housing HEEELP Program from the Community Development Block Grant (CDBG) Program and all related documents. Said proposal is attached hereto and incorporated in this resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council this 23rd day of .Tu4_-1Z )2005. MAYOR ATTEST: Rebecca Garza, City Secretary AS TO CONTENT: APPROVED AS Attorney ccdocs/CoL CD HEEELP Program-CDBG.res June 15, 2005 s T o FY 2005-2006 Funding Request HEEELP FY 2005-2006 Funding Request Page 2 To submit an application, complete Part A — J, Attachments 1-4 (if applicable) and any other items requested. Do not bind the application or include any items that are not requested. Submit one proposal per project. Submit one original and one copy of each application (SINGLE SIDE ONLY) to Community Development, 1625 13th Street, PO Box 2000, Lubbock, Texas 79457 by April 1, 2005 5:00 PM. Please review the "Citizen's Guide" for the Community Development programs, goals, requirements and timelines. For assistance, please call the Community Development Department at 775-2301. A. GENERAL INFORMATION 1. Name of Applicant: Community Development Department ❑ Not -For -Profit ❑ For -Profit ❑ CHDO 04City Dept. ❑ Other (Please include a copy of your IRS ruling providing tax exempt status under Section 501(c)(3) of the 1986 IRS Code if you are a non-profit.) 2. Name of Project: Homeowner's Exterior/EneW Efficient Loan Program (BEEELP) 3. Area or Location of Project: City of Lubbock (city-wide) 4. Contact Person/Title: Phyllis Brown, Field Services Coordinator Mailing Address/Zip: P. O. Box 2000, Lubbock, TX 79457 Telephone/Fax Number(s): (806) 775-2282 (806) 775-3281 5. Grant Request: QQ CDBG ❑ ESG ❑ HOME 6. Amount of Funds Requested for Project: $250,000.00 7. Amount of Matching Funds for Project: . Match Type: ❑ Cash ❑ Sweat Equity ❑ Other Grants ❑ Donations Identify Source of Match: Match Status: ❑Confirmed ❑ Requested 8. Unduplicated Units Served (agency's definition) (a) Total CD Funds Requested $250,000.00 (b) Total Unduplicated Units Served 250 +25 world changers joint effort (c) Average CD Cost Per Unit (a/b): 20 (a— $10,000 & 25 a, $2,000 9. Is this project? ❑Year 1 ❑ Year 2 d) Total Project $250,000.00 e) Total Unduplicated Units Served 20 + 25 world changers joint effort f) Average Cost Per Unit (d/e): 20 0 $10,000 & 25 0,$2,000 ❑ Year 3 j$ Year 4 1 t T O L f FY 2005-2006 Funding Request HEEELP Page 3 B. PROPOSED PROJECT: Project Description: In two sentences concisely describe your project. This description will be used in future publications should your application be approved. Limit two sentences The main purpose of this program is to Improve neighborhoods by helping low to moderate income families and Individuals within the city limits by making limited exterior repairs and repairs to save on energy consumption. This program generates Inc ome, which Is returned to the program for future use, by establishing a Below Market Rate/No Interest Deferred Payment Loan to the homeowner. C. CONSOLIDATED PLAN GOAL Check the ONE GOAL that best describes your project. Check Prioritized Objective One from Plan Number of Units This Will Serve �Consolidated y yTts'd Pik f 1 J�2*' �'x��✓r.+ : 4. !TF'1 di 5l �FSIO K€ a . P� �t� -L5 vi4!t lid N9a��_�414'�i+ryn�li.: cuw. [Project µ y t"p4�.4gwu '111 ov F i1'1 W i f{J L 4:.d 96 "&Y�rf-fi'Fxc t 13` a� 'Y�� �a Y �55_a4.i2 H-1 Owners -Rehab Households: X H-2 Owners -Limited Rehab Households: 20 +25 world changers joint effort H-3 Owners -Assistance for Home Bu ers Households: .. r 3i. mv�t3kT::�RR 5 1. 3� cMill", L,�ryJ41,g, �"hx.�:kear k'�crno>ising QIIlnIIIn1 y�.5 i i 2S u .:: �..T 4. Fl:.c a.. h v..'i:!T�u...... ;GIIM1yvr: i'" d,t. p J' v jzS.syi 9 E P Economic Development CD-1 Rehab of Publicly/Privately Owned Businesses # of Low -Mod Business Owners: CD-2 ED-Direct Assistance to For -Profit # of Jobs Created: CD-3 Micro -Enterprise Assistance # of Low -Mod Business Owners: Infrastructure CD4 Street Improvements # of Low -Mod Households: CD-5 Sidewalks # of Low -Mod Households: Public Service N/A CD-6 Handicapped Services for Job Training # of People Served: N/A CD-7 Handicapped Services for Recreation # of People Served: N/A CD-8 Substance Abuse Services for Rehabilitation # of People Served: N/A CD-9 Substance Abuse Services for Shelter # of People Served: N/A CD-10 Substance Abuse Services for Training # of People Served: N/A CD-11 Employment Training for Computer Skills # of People Served: N/A CD-12 Employment Training for Job Readiness # of People Served: N/A CD-13 Employment Training for Reading Skills # of People Served: ti t T V L 'r ? FY 2005-2006 Funding Request HEEELP Page 5 D. PROJECT SUMMARY 1. Summarize your proposed program. Explain how this program fits with your mission. How will it impact your current operation? How does this program relate to the Consolidated Plan priority? Does this program serve a targeted area? Who is the target population? Where will the program take place? How will this program benefit the Low -Mod income community? Are you working with other organizations in a cooperative effort on the program? LIMIT 3 pages The Homeowner's Exterior/Energy Efficient Loan Program is a program for eligible low / mod income homeowners in need of exterior repairs and/or repairs to reduce energy consumption. Some eligible repairs Include: roofs, sidewalks, driveways, fences, painting, windows, doors, water heaters, termite extermination, fill in dangerous and dilapidated cellars/basements,. insulation, installation of water and sewer lines, fill-in of open cesspools and contaminated or abandoned water wells and replacement or repair of central heat and air, and other energy efficient measures or exterior repairs as recommended by the Housing Inspector. The loans will be in the form of a No Interest Deferred Payment Loan and/or a Below Market Rate Loan. The amount of payback will be based on income determined by a sliding scale. Applicants at or below 30% of Median will qualify for a 100% No Interest Deferred Payment Loan. This program was funded for $153,485.00 In 2004-2005. For the past two years the CD Department has worked with the Business & Neighborhood Development Department to address housing in need of repairs Identified through Code Enforcement Inspections of the neighborhoods. A set -aside of $50,000 was allocated for this joint effort In 2004-2005 for Code Enforcement referrals. The 2005-2006 requested set -aside for Code Enforcement Is $100,000. The program will continue to be administered by the CD Department. Through this program, the CD Department and the Business & Neighborhood Development Department are providing a funding source for homeowners to correct properties which are beginning to decline, thus helping maintain individual properties, neighborhoods and communities, as well as supporting the Lubbock Housing Consortium's 21st Century Challenge. ♦ t = o o � i FY 2005-2006 Funding Request HEEELP Page 6 This program helps meet the CD Department mission because it creates a positive change for the citizens of Lubbock by helping to build quality housing and neighborhood reinvestment. It also creates economic development by supplying jobs for the contractor and by promoting the sale of goods and services for the material suppliers of the City. This program will not impact the department. The department has the capacity, expertise and documents In place to administer this program, as well as a servicing section to service the Below Market Rate Loans. Lead -based paint regulations became effective September 15, 2000. Through experience with this program, it has been determined that homes which require lead removal have an additional rehab costs of approximately $2,000.00 to $3,500.00. The total number of units completed may increase or decrease depending on the number of houses containing lead, which are approved for HEEELP. Housing — limited rehab is a high priority in the 2004-2009 Consolidated Plan. This program meets that priority. It also helps meet the goal of assisting units in the limited rehab category. The targeted population Is low -to -moderate income families and individuals, which have a household median income of 80% or below and who are in need of qualifying exterior home repairs and energy efficient heating and air conditioning. The program will take place within the city limits of Lubbock and will benefit the low/ mod income community. Even though the program is city-wide, history of the program reveals that the majority of the recipients live in low/ mod areas. The program is administered by the Housing Section of the Community Development Department in the City Municipal Building at 162513t' Street, Room 105. This program will be marketed through the Housing Consortium, as well as by advertising in newspapers and on the CD Website. Brochures and fliers will be distributed at various housing functions. All funds will be put out for bids to private independent general contractors. o z r o ` l .......... FY 2005-2006 Funding Request HEEELP 0 Page 7 As mentioned above, the CD staff will partner with the Business & Neighborhood Development Department for referrals. In addition, the CD Department has been asked to partner with a Youth Group called "World Changers", a ministry of the North American Mission Board, SBC in the summer of 2005 to supply materials for approved low Income homeowners, particularly elderly, for the youth to do minor repairs such as painting and installing roofs to the homes, etc. $50,000 was set aside in the 2004-05 HEEELP Program budget to assist with this project. If approved, $50,000 of the HEEELP budget will also be set aside for "World Changers" to assist with materials for the same project In the summer of 2006. The local contact for this group is Cory O'Guinn, Minister to Students, Calvary Baptist Church, 796-4006. 2. List Goals, Objectives and Outcomes. What outcome are you trying to achieve? Please include the number of people or households that will directly benefit from the program. How will you measure the outcomes? Please list at least one output and outcome. LEVM 1/2 page The goal is to help eliminate substandard property and slum and blighting influence within the city limits and to preserve existing housing stock, thus showing neighborhood reinvestment and beautification and to support the Lubbock Housing Consortium's 210 Century Challenge. The goal is to also help conserve energy by Installing energy efficient units, thus saving on utility costs for low income families and individuals. Many families and individuals cannot afford the outside upkeep and energy efficient repairs for their homes. This program gives them the opportunity to invest in their homes and neighborhood. Approximately 45 households will benefit from this program funding, thus a total outcome of approximately 180 Individuals (based on a family of four). 3. List Activity Measures/Steps required to reach Goals and Objectives. Include a one-year Timeline from planning to completion for each activity measure. Please highlight significant milestones or steps of your proposed program. L MT 1/2 page I t T o ..... ........... FY 2005-2006 Funding Request HEEELP Page 8 Market Program Oct. 2005 — Ongoing until spent Take application and verify Information Nov. 2006 — June 2006 Bid $ close loans Dec. 2005 — July 2006 Complete Project Sept. 2006 This program has been very successful in helping to assist low to moderate income owners to maintain their homes and to conserve energy, which is an overall benefit to the community. 4. Evaluation: Explain how you plan to evaluate the program. What criteria will you use to measure if the program is successful? Please be specific and elaborate on the output and outcome that you listed above. LEMT 1/2 page This program may be evaluated by it's success in the 2005-2006 funding year. The Program is very popular and successful in that approximately 45 households will be assisted. Applications for the program have always far exceeded funding availability. E. PROGRAM INCOME 1. Please list applicant's anticipated program income from this project and detail how applicant will create a return of investment to the grantor particularly if proposed project includes facilities, housing, or economic development. LEMaT 1/2 page Anticipated Program Income: $92,688.00 $4,000 average payback X 20 loans @ 3% for 10 years This program will be a No Interest Deferred Payment / Below Market Rate Loan. Payback recipients will pay back anywhere from 40% to 60% of the loan. Loans will continue to be serviced in-house. ........... FY 2005-2006 Funding Request HEEELP Page 10 G. PROJECT BUDGET 1. Please list applicant's anticipated expenditures, detailing requested funds and applicant's matching funds. Please place Cash, S=Sweat Equity, O=Other Grants, D=Donations beside each amount under "Applicant's Match" to denote the type of match being used. ADMINIS 'KAUMN: Personnel {# ) Payroll Taxes Employee Benefits Office Supplies Copy Supplies Postage Telephone Promotional Professional Service Vehicle Fuel/Mileage Other: PROGRAM: Acquisition Reconstruction Rehabilitation Installation Direct Assistance Rental of Space Rental of Equipment Professional Services for Clients Other: Materials $ 50,000.00 $ 50,000.00 Only** Professional services I TOTALS $250,000.00 • 1 1•■ i 1 • 1•• .. U 1- $250,000.00 � ra f t FY 2005-2006 Funding Request HEEELP Page 11 H. APPLICANT INFORMATION 1. Capacity of Organization: Describe your organization, highlight the following areas: history of organization, mission statement, prior experience, population served, and annual budget. Does your organization perform annual audits? If not, what procedures do you use to ensure proper financial management? LIMIT 3 pages The Community Development Department (CD) of the City of Lubbock oversees and administers the Community Development Block Grant. The mission of the Department is "to create positive change for the citizens of Lubbock by promoting self-sufficiency through partnerships in economic development, quality housing and neighborhood reinvestment". The Field Services staff (Housing Section) of the CD Department helps meet the charge of providing quality housing and neighborhood reinvestment by implementing several housing programs each year. This ultimately provides economic development by creating jobs for contractors and subcontractors, many of which are minority contractors. The history of the Housing Section dates back to when the Community Development Block Grant was implemented by the Department of HUD in 1974. CD Housing programs were administered by the Urban Renewal Agency (URA) until August, 1984, when the URA was incorporated as a City department under Community Development. The Housing Section continues to administer many housing programs each year. The targeted population is low to very low income families and individuals in targeted neighborhoods, as well as some city-wide programs. The annual CDBG and HOME budget averages about $1.8 million in housing programs. The Housing Section has also administered several other State and Federal housing programs. The City of Lubbock's Internal Auditing Department employs an external auditing firm to perform annual audits on all CD programs. FY 2005-2006 Funding Request HEEELP Page 12 2. Staffing: Describe your current organizational structure. For those staff positions that will be involved in the program list the position, job responsibilities, qualifications, and name of person if available. If the position is filled by a volunteer, please designate as such. LEWT I page C D ORGANIZATIONAL CHART (highlighted staff are involved in this Mran STAFF PERSON NAME YEARS OF I JOB & TITLE EXPERIENCE RESPONSIBILITIES Sharon Pattillo Underwriting & closing on Housing Reconstruction, Rental Real Estate Specialist 33 Reconstruction, LAZIP and New Construction cases. Handles relocation & demolition. Prepares reports & maintains budget Markets programs & serves as liaison between homeowner, contractor, tide companies, appraisers and URA Board. Zia .0 61 '— klll-wll .. R th UR M l i 1 oa 0P 9. to OEM U Wal I plaing Of Yolanda Pastrano, Admin. Asst. 6 Takes applications for Grant programs, handles preparation for Boards & Commissions. 10 ISM 9, IM I .M Sri" m p MRM 1 Va0 S = o G FY 2005-2006 Funding Request HEEELP Page 13 3. Reporting Capabilities: Describe your organization's system for collecting and reporting data. Are you providing reports to any other funding entities? LINUT 1/2 page An expenditure and Demographic Report is generated on each housing program monthly. This Information is collected from applications in the individuals case files at the time of the contractor's request for payment for grant programs and at loan settlement for loan programs. The Report Is compared monthly to the City's General Ledger for completion and accuracy. The reports track total budget allotments as well as Individual household allotments and demographic Information. Areas receiving the funds both on city-wide and targeted programs are tracked as well. Reports are submitted to the Field Services Coordinator and the Program Specialist for review by the 21't day of each month. The Department provides the CAPER (Consolidated Annual Performance and Evaluation Report) to HUD yearly, as well as the Minority Contractor and Davis Bacon Reports. Quarterly operations reports are also submitted to upper City Management. I. GOVERNING BODY PROFILE In order to demonstrate compliance with Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000(d)) and regulations pursuant thereto (Title 24 CFR Part 1), which state that no person in the United States shall, on the ground of race, color or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity for which the applicant receives Federal financial assistance: 1. Describe the method of selection of officers and directors of the board and indicate the time and place of regular meetings. LDM 1/2 page N/A — City Department 2. List all board members' names, number of years on board, occupation, and breakdown the gender and ethnicity of the board members. Please indicate officers. LEWr 1 page N/A City Department 1 FY 2005-2006 Funding Request HEEELP Page 14 J. Conflict Of Interest Federal law (24CFR570.611) prohibits persons who exercise or who have exercised any functions or responsibilities with respect to the above grants... or who are in a position to participate in a decision making process or to gain inside information with regard to such activities, may obtain a financial interest or benefit from an assisted activity... either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. 1. Is there any member of the applicant's staff, member of the applicant's Board of Directors, or officer who currently is or has/have been within one year of the date of this application a City employee, a member of the Community Development & Services Board, or a member of the City Council? ❑ Yes ❑ No If yes, please list names: N/A — City Department 2. Will the funds requested by the applicant be used to pay the salaries of any of the applicant's staff or award a subcontract to any individual who is or has been within one year of the date of this application a City employee, a member of the Community Development & Services Board, or a member of the City Council? ❑ Yes KNo If yes, please list names: 3. Is there any member of the applicant's staff, member(s) of the Board of Directors, or officer(s) who are business partners or immediate family of a City employee, a member of the Community Development & Services Board, or a member of the City Council? ❑ Yes ❑ No If yes, please list names: N/A — City Department If any member of the Community Development Services Board has a conflict, they may not participate in the sub -committee interview or discussions, nor vote durinE the recommendation. The applicant certifies to the best of his/her knowledge and belief that the data in this application is true and correct and that the governing body of the applicant has duly authorized the filing of the application and that the applicant will comply with all the requirements of each grant respectively if the application is approved. Please include: 1) the minutes of the board meeting at which this item was authorized, and 2) who is authorized to sign the application and/or contracts. Name: Phyllis Brown Signature: / 7 Title: Field Services Coordinator Date: