HomeMy WebLinkAboutResolution - 2005-R0283 - Approve HOME Funding - CHRB Operations Program - 06_23_2005Resolution No. 2005-RO283
June 23, 2005
Item 64
RESOLUTION
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 Community Housing Resource Board Operations Program from the
Home Investment Partnerships (HOME) 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. I
(Passed by the City Council this 23rd day of -1 Ju* , 2005.
MAYOR
.TTEST:
Garza, City Secretary
ancy Haney
AS TO CONTENT:
FORM:
Attorney
:s/res-Community Housing Resource Board Operations Prog-HOME.res
15, 2005
Page 2
FY 2005-2006 Funding Request
To submit �n 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. NameofApplicant: Community Housing Resource Board of Lubbock
[INot-For-Profit ❑ For -Profit 0 CHDO []CityDept ❑ 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: C H DO X
3. Area or Location of Project: City of Lubbock — Prioritizing Targeted Areas
4. ContactPerson/Title: Maggie Trejo, Executive Director
MailingAddress/Zip: 1628 Main Street, Lubbock, TX 79401
Telephone/Fax Number(s): 806 7 6 3— 3 8 7 7/ 806 76 3— 3 88 3
5. Grant Request: ❑ CDBG ❑ ESG ® HOME
6. Amount of Funds Requested for Project: $ 5 0 , 0 0 0
7. Amount of Matching Funds for Project:. Not Required
Match Type: ❑ Cash ❑ Sweat Equity ❑ Other Grants ❑ Donations
Identify Source of Match: N/A
Match Status: ❑Confirmed ❑ Requested N/A
8. Unduplicated Units Served (agency's definition 0 0 +
(a) Total CD Funds Requested_ S 5 0, 000 d) Total Project 515 0, 000
(b) Total Unduplicated Units Served 200 1 e) Total Unduplicated Units Served 200
(c) Average CD Cost Per Unit (a/b): $ 2 50
9. Is this project? ❑Year 1 ❑ Year 2
f) Average Cost Per Unit (d/e): $ 7 5 0.0 0
❑ Year 3 ® Year 4
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 CHRB is a State and City certified CHDO that provides decent and affordable rental housing for those in the
50% - 60% of median income and enables fiamiilies in the SM or below of area median income to become homeowners. The
operating fiords requested will enhance CHRB's ability to administer the new construction, lease/purclus-, and rental housing
programs to help the above -described fi ndlies achieve their goals
C. CONSOLIDATED PLAN GOAL Check the ONE GOAL that best describes your project.
Check
One
Prioritized Objective
from Consolidated Plan
H-1 Owners -Rehab 77Ho7useholdWs:
Number of Units
This Project Will Serve
H-2 Owners -Limited Rehab
useholds:
H-3 Owners -Assistance for
Home Buyers
Economic Development
Households:
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
CD-4 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:
N/A
CD-14 Health Services for Children
# of People Served:
N/A
CD-15 Mental Health Facilities for Operations
# of People Served:
D. PROPOSED PROJECT
1. Project Summary
Community Housing Resource Board of Lubbock (CHRB) has several programs underway that
serve the HOME designated population, the low to moderate -income individuals in targeted
areas. Therefore, operating expense funds are needed to enhance its ability to carry out the
management of an eight -unit apartment complex, management of six -unit elderly complex;
administer the lease/purchase programs, new construction projects, and manage the construction
of housing for the handicapped.
CHRB is a non-profit 501(C)(3), State and City certified Community Housing Development
Organization (CHDO) that has been in operation since 1985. In 1993, it redirected its mission to
make homeownership accessible to the low to moderate -income individuals of the City of
Lubbock and the South Plains region by being creative in designing programs that could
accomplish said mission.
The apartment complex is a project that takes a lot of time to manage. For example, before
apartments are leased, applications are taken, criminal and credit checks are conducted and
finally, Lease Agreements are executed. Inspections are regularly scheduled and there are always
maintenance issues that need to be addressed. CHRB also collects the rent and maintains all
records that are required by HUD and the City of Lubbock's Community Development
Department.
In the Lease/Purchase program, houses are identified, pre-environmentals and historicals are
performed, and relocation issues are addressed before contracts are drawn up to buy the
properties. Once the properties are bought, lead -base paint inspections and abatements write-ups
are prepared to determine how much rehabilitation the houses need. The write-ups are then bid
out. After the bids come in, CHRB selects the lowest or best bids. Contracts are drawn for the
rehab work that usually takes about 90 days to complete. Inspections are periodically done on
the work and draw -downs are done at 50% complete, 100% complete, but paid 40% with 10%
held for 30 days after completion. While rehabilitation is underway, families are pre -qualified to
occupy the properties. Once properties are occupied, rent and is collected, houses are maintained
and insurance premiums are paid. After 6 months to two years, when families have saved for the
down payment and closing costs or they have repaired or reduced their credit, houses are sold to
the families. As an incentive for families ' to complete the program, CHRB provides up to
$2,500.00 as down payment and closing assistance.
In the New Construction program, steps taken to acquire the lots and the bid procedures are
similar to the Lease/Purchase project. The construction of new houses takes approximately 3
months to 4-6 months to complete. Selection of prospective owners is done while the houses are
being built. A sales contract is drawn and the families select the financial institution of their
choice for the permanent financing of their houses. After that, the normal closing procedures
take place.
In regard to the elderly housing, tenants submit application for occupancy, tenants are approved,
a lease agreement is executed and, rent is collected dwellings and yard is maintained.
Records on all the above must be kept on the activities that take place for the period of
affordability or whatever HUD needs as documentation. This is accomplished with a two full-
time staff. With the funds requested, CHRB will concentrate on the new corridor areas, which the
City has identified.
D. PROPOSED PROJECT
2. Goals and Objectives:
Community Housing Resource Board of Lubbock's (CHRB) goals and objectives are:
1. Provide new affordable housing in targeted areas for families in the 80% of median
income or less.
2. Provide rehabilitated and affordable housing in targeted areas to the low to moderate -
income families who would otherwise be unable to purchase a house due to credit flaws
and/or lack of funds for down payment and closing costs.
3. Provide new rental housing for the low-income elderly in targeted areas.
4. Provide rental housing for families in the 50-60% of median income.
5. Provide individual homebuyer counseling to participants.
6. Approximately 200 individuals will benefit from the above yearly.
D. PROPOSED PROJECT
3. Activity Measures to Reach Goals and Objectives and Timeline for Each Activity
Measure
ACTIVITY TIMELINE
Administer HOME Lease/Purchase Programs Ongoing
Five houses will be acquired
Five Rehabilitate houses
Qualify families for houses
Counsel families on budget and credit while leasing properties
Maintain properties while leased
Twelve houses have sold
Administer HOME New Construction Program Ongoing
Ten houses have been completed
Nine houses have sold
Four lots have been acquired to build five new homes
Construct new homes when others are sold
Administer HOME Rental Program Ongoing
Rent 8 units at 1010-1012 Ave. R
Maintain HOME rents through affordability period (15 years)
Collect rent
Manage apartments
Maintain property
Administer HOME Elderly Housing Programs Ongoing
Rent 6 units at 2618-2622 Auburn
Maintain HOME rents through affordability period (15 years)
Collect rent
Manage apartments
Maintain property
Administer HOME Handicapped Housing Program Ongoing
Begin Construction on duplexes for handicapped
Complete construction
Complete landscaping
Collect rent
Manage property
Maintain property
D. PROPOSED PROJECT
4. Evaluation:
Community Housing Resource Board of Lubbock (CHRB) will evaluate the projects by
maintaining records that will:
1. Describe each activity undertaken.
2. Demonstrate that each activity undertaken meets the eligible
activities under the HOME program.
3. Document the acquisition, improvement, use or disposition of real property.
4. Document compliance with the fair housing and equal opportunity components
the HOME program.
5. Keep financial records as required by HUD and compliance with HUD
regulations.
6. Document that projects meets the requirements of period of affordability.
7. Demonstrate client eligibility for services provided.
E. PROGRAM INCOME
1. Anticipated Program Income and Return of Investment to Grantor
The anticipated project income for a year will be as follows:
None
The Return of Investment to the City is as follows:
This project does not require a Return of Investment to the City.
Page 6
1. Please list applicant's anticipated expenditures, detailing requested funds and applicant's matching
Raids. Please place C=Cash, S=Sweat Equity, O=Otber Grants, D=Donations beside each amount
under "Applicant's Match" to denote the type of match being used.
M
ADiNM41STRATION:
-
Personnel # 2
$26,645
Payron Taxes
3,690
EnV10yee Benefits
Office supplies
2,200
xtl-4it.ies/Tel
4,300
-Iriszurance
4,500
Me bershi
500
Travo;l//,Trainin
2,125
Professional Service
2,000
.Audit . `r
4,000
Other:
PROGRAM:
Acquisition
Reconstruction
Rehabilitation
Installation
Demolifion
T ech. Asst.
Direct Assistance
Rental of Space
Rental of
Professional Services
for Clients
Other:
Professional services
Construction
TOTALS
$50,000
H. APPLICANT INFORMATION
1. Capacity of Organization
Community Housing Resource Board of Lubbock (CHRB) is an established organization
committed to helping the low to moderate -income population in the City of Lubbock and the
South Plains region. CHRB's mission is to make homeownership accessible to the low to
moderate income individuals of targeted areas and provide affordable rental for those unable to
purchase a home. It keeps its programs and activities focused on the needs of the said targeted
group. It enjoys success with its programs in making homeownership a reality and maintaining
its operations fiscally sound.
CHRB is a 501 (C) (3) non-profit organization established in 1985. Initially, it was funded by
the U.S. Department of Housing and Urban Development (HUD) as an agency whose mission
was to hear and file housing discrimination complaints.
Since 1993, CHRB redirected its service to housing programs funded by the City, State and
Federal Government as well as private foundations. In 1994 it was certified as a Community
Housing Development Organization (CHDO) by the Texas Department of Housing and
Community Affairs and also by the City of Lubbock. Today it enjoys partnerships with local
financial institutions in an effort to create accessible housing for the low to moderate income
individuals by offering lower interest rates and less stringent methods of financing, thereby
making it easier to secure a loan.
CHRB has successfully implemented and continues to implement unique housing programs. The
} Lease/Purchase program is one that gives families in the low to moderate -income range, the
opportunity to become homeowners. To date, it has acquired thirty houses, rehabilitated twenty-
six of them, four are being written up for rehabilitation, seven are leased to prospective
homeowners and twelve have been sold. Families are pre -qualified before they occupy the
houses. This program is designed to help those that have credit problems that can be fixed, too
much credit that must be reduced, not enough job stability or no funds for down payment and
closing costs. As an incentive for participants to complete the program, CHRB provides down
payment and closing costs assistance in an amount up to $2,500.00 depending on how long they
lease the property. CHRB is in the process of purchasing an additional five houses or more that
will be, rehabilitated, and occupied in the very near future.
An eight -unit apartment complex was acquired with HOME funds and with a loan in 1995 and in
1997 it was completely rehabilitated with HOME funds. Individuals must be in the 50% - 60%
of area median income to qualify for these apartments. CHRB manages and maintains the
complex.
In the New Construction Program, ten houses have been completed, nine have sold, and four lots
have been acquired in order to build more new houses. All houses have been or will be built in
targeted areas as designated by the City Council.
Other programs administered in the past by CHRB were the Down Payment and Closing Cost
} Direct Assistance Program in which 40 families achieved homeownership, the Emergency
Shelter Grant Program (2 years of funding), HUD Mortgage Counseling Program (2 years of
funding), and the Slaton Rehabilitation Program for the elderly (9 houses @ $25,000 each.)
CHRB was funded for affordable handicapped accessibility housing. Construction will begin in
the near future. Management and maintenance will be similar to the Elderly Housing program.
As of fiscal year ending September 30, 2004, CHRB had $2,006,206 in assets, $36,415 in
liabilities, and $2,042,621 in fund balance. During the same fiscal period, CHRB had $282,351
in grant support, and $68,384 in other revenue for a total of $350,735 in total support and
revenue. For 2004-2005, CHRB's expected operations budget is $150,000, which will cover
personnel, utilities, and general operation expenses. There are two positions allocated. The
agency also contracts with a grant writer, Paul Watson, and a Rehab Specialist, Wally McNeil,
Raul Alvarado with Century Small Business Solutions, and receives assistance from board
members, community individuals, and Texas Tech University Small Business Development
Center (SBDC). Williams, Rogers, Lewis Company, PC, a certified public accountants firm,
conducts an annual independent audit in accordance with generally accepted auditing standards
and government auditing standards. The audit is comprehensive and covers financial, internal
control, and compliance report sections.
K STAFFING
2. Staffing:
CHRB is governed by a seven -member Board of Directors with diverse backgrounds in terms of gender,
race, city residency, and profession. CHRB utilizes personnel and professionals in accomplishing the
work of the office including hiring personnel, training, clerical work, recording and data entry,
submitting grant funding requests and administering contracts. CHRB currently has an executive
director, and a bookkeeper. Additionally, CHRB utilizes the services of Raul Alvarado with Century
Small Business Solutions, a business consultant specializing in accounting and bookkeeping, a grant
writer, Paul Watson, and Wally McNeil, a Rehab Specialist, who prepares the rehab write-ups and bids
and does inspections on all on -going projects.
Maggie Trejo was hired by Community Housing Resource Board (CHRB) in January, 1995 as a Housing
Specialist. In October, 1996 she assumed the post of Executive Director. Mrs. Trejo has been successful
in acquiring community development funding, has built 10 new homes and is working on building others.
In addition, Mrs. Trejo has rehabilitated twenty-one existing homes, an 8-unit apartment complex and a
6-unit complex for the elderly and is currently working on constructing a 4-unit complex for the
handicapped. She has received extensive training from the Neighborhood Reinvestment Training
Institute, Community Revitalization Training Center, Texas Department of Housing and Community
Affairs and The Development Training Institute, in topics such as Raising Operating Funds, Managing
New Construction, HUD CHDO Texas Project Development Program, Advance Project Development
Program., Design and Specification for Rehab Specialists, How to Finance Affordable Housing, and
other related training.
Mrs. Trejo earned a Bachelor of Business Administration (Management) from Texas Tech in 1979. She
is a licensed real estate broker and certified Homebuyer Education trainer.
Executive Director - Job responsibilities: Administer projects and programs. Adhere to and interpret all
federal HUD regulations. Prepare annual budgets and funding request proposals. Supervise personnel,
construction, and rehabilitation projects including: New Construction, Lease/Purchase Programs, Rental
Housing, Management of Apartments and Execute Real Estate Contracts. Qualifications: Education and
experience equivalent to Bachelors degree in business administration, public administration, or a close
related field. Experience of increasingly responsible administrative and management experience
involved in the development, planning, funding, implementation, and operation of housing programs.
Communication skills. Examine, verify, and analyze financial information, reports and statements. Have
knowledge of research procedures and techniques. Work effectively with people from a variety of social,
economic, and racial backgrounds.
Bookkeeper - Job responsibilities: Perform general office duties: schedule appointments, provide
general program information, type letters, reports, etc., greet the public, accept rent payments, prepare
statements and receipts, and file. Inspect rental housing and lease purchase properties, prepare list of
repairs for maintenance man, conduct credit and criminal checks for prospective rental housing
applicants and prospective homeowners. Pay monthly bills, keep general ledger for petty cash funds, and
compile expenses that are on going and turn in for reimbursement, with the guidance of the director.
Qualifications: Operate a variety of office equipment. Attend workshops and classes to improve skills.
H. REPORTING CAPABILITIES
3. Reporting Capabilities:
Community Housing Resource Board of Lubbock (CHRB) utilizes the following methods in
reporting its activities and finances on a daily, monthly and yearly basis:
1. Uniform HUD forms to report the project set-ups and
close outs.
2. Provide financial reports to private foundations.
3. QuickBooks Pro software for normal accounting activities and reporting
performed in-house by the bookkeeper supervised by the Executive
Director.
4. Annual audit performed by a certified public accounting firm.
I. GOVERNING BODY PROFILE
l . Method of Selection of Officers and Board Directors and Time and Place of Regular
Meetings
One-third of Community Housing Resource Board of Lubbock's (CHRB) directors are elected
every year for a three-year term at the annual meeting which date is determined by a majority of
the Board of Directors. Individuals with housing interest in the community are encouraged by
present Board members to become Board members.
One-third of the Directors are representative of the low-income neighborhoods and the rest are
community people with different professional expertise.
The Directors on the first meeting following the annual meeting elect officers for a one-year
term.
Regular meetings are held every two months on the third Monday of the month at 6:00 p.m. at
Smith Temple, 6508 Ave. P, Lubbock, TX. The Executive Committee, which consists of the
President, Vice President, and the Secretary -Treasurer, meets as often as needed.
Page 8
J. Conflict Of Interest
Federal law (24CFR570.611) prohibits persons who exercise or who have exercised any fimctions 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 stall; 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 M No
If yes, please list names:
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 ® No
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
If yes, please list names:
(0 No
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 during 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: D A. Smith
Signature:
Title: Board Chairperson Date: March 21, 2005
Name: Maggie T r e j o Signature•
Title: Director Date: March 21, 2005
Page 13
HOME Investment Partnership Program
Certification of Governmental .Assistance
Date: March 21, 2005
ATTACHMENT 4
Funding Year. 2005 —2006
Applicant: Community Housing Resource Board of Lubbock
Project Address: City —Wide and Targeted Areas
Amount of Home Funds Requested: $50 , 000
Number of Units: 200+
Please list any governmental assistance, that is now provided or will be provided in the future on this
project, and attach supporting documentation. Governmental assistance includes any loan, grant
(including Community Development Block Grant), guarantee, insurance, payment, rebate, subsidy,
credit, tax benefit or any other form of direct or indirect assistance from the Federal, State or local
government for use in, or in connection with the project listed above.
Source of Assistance
None
Amount of Assistance j Eligible Time Period
I Maggie Tre j o hereby certify that the information contained in this document is true
and accurate. .�
xecutive Director
Signature and
March 21, 2005
Date
BEFORE me, the undersigned, a Notary Public in and for the said County and State personally appeared -
Maggie Trejo of Community Housing Resource Board
of Lubbock onto 21st dayof March ±_= 2005
�ry/NFk&1
✓'_ AAMSONNGEL°aryPublic, State exas