HomeMy WebLinkAboutResolution - 2005-R0287 - Approve HOME Funding - COL CD Housing Rehab_Reconstruction Program - 06_23_2005Resolution No. 2005-110281
June 23, 2005
Item 68
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 CD Housing Rehab/Reconstruction 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.
Passed by the City Council this 23rd day of Jury Z )2005.
MCDOIJGAL. MAYOR
ATTEST:
Re ecca Garza, City Secretary
APPROVED AS TO CONTENT:
Amy Sims, ijWn't_Qity'Attorney
ccdocs/res-Housing Rehab/Reconst Prog-HOME.res
June 17, 2005
ift
FY 2005-2006 Funding Request
Recon/R.ehab
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 l_. 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 CRCity 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: Housing Rehab/Reconstruction Program
3. Area or Location of Project: Targeted
4. Contact Person/Title: Phyllis Brown, Field Services Coordinator
Mailing Address/Zip: P. 0. Box 2000, Lubbock, TX 79457
Telephone/Fax Number(s): (806) 775-2282 (806) 775-3281
5. Grant Request: ❑ CDBG ❑ ESG CK HOME
6. Amount of Funds Requested for Project: $900,000.00
7. Amount of Matching Funds for Project:
Match Type: ❑ Cash ❑ Sweat Equity ❑ Other Grants ❑ Donations
Identify Source of Match: N/A — City Department
Match Status: ❑Confirmed ❑ Requested
8. Unduplicated Units Served (agency's definition)
(a) Total CD Funds Requested $900,000.00 d) Total Project $900,000.00
(b) Total Unduplicated Units Served 13 e) Total Unduplicated Units Served 13
(c) Average CD Cost Per Unit (alb): f) Average Cost Per Unit (d/e):
$69,230.76 $69,230.76
9. Is this project? []Year 1 I ❑ Year 2 ❑ Year 3 XYear 4
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FY 2005-2006 Funding Request Recon/Rehab
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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 Housing Rehab/Reconstruction Program assists qualifying very low, low and
moderate income homeowners in target areas whose homes are In need of
rehabilitation or reconstruction with a combination payback and forgivable loan to
either rehabilitate the home to City Codes or If not rehabltable, to demolish the old
home and for a new home to be constructed on the same site. Temporary Relocation
Services are provided under the City of Lubbock's Optional Relocation Policy during
the demolition and construction.
C. CONSOLIDATED PLAN GOAL Check the ONE GOAL that best describes your project.
Check
One
Prioritized Objective
from Consolidated Plan
Number of Units
This Project Will Serve
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H-1 Owners -Rehab
Households: 13
H-2 Owners -Limited Rehab
Households:
H-3 Owners -Assistance for
Home Bu ers
Households:
�. .x
n. $ avn `^ s - �+.. ,�I'::.I
�uxa:- af•I_...., ern:_:h. 15...sa' _ �,.'vmn::. :_..,
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Economic Develo ment
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
4 of People Served:
FY 2005-2006 Funding Request Recon/Rehab 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? LEWr 3 pages
The Housing Rehab/Reconstruction Program assists very low, low and moderate
income occupant homeowners - whose homes need to be rehabilitated or are
substandard and dilapidated to the point of needing to be torn down and
reconstructed. Assistance is provided in a combination Below Market Rate Loan
(BMRL) at 3% Interest and a No Interest Deferred Payment Loan (NIDP). Payments
are made in proportion of household income and family size on a sliding scale.
These loans are serviced in-house.
This program fits the departmental mission by creating a positive change for the
citizens of Lubbock by creating quality housing thus enhancing quality of life with
decent, safe and sanitary housing for households and neighborhoods. Self-
sufficiency is realized by homeowners and economic development is created for
contractors and material suppliers in the City. The program assures continue usage
of utilities and an increase in taxes.
Positive impact of this program is anticipated as the department has been successful
In implementing the Housing Reconstruction Program since 1992 and the Housing
Rehab Program since 1974 and is equipped to handle the project. Qualifying
applicants In the consolidated plan target area will be served on a first-
approved/first-served basis.
This Housing Rehab/Reconstruction Program relates to the Consolidated Plan for
Fiscal Years 2004-2009 under Housing Needs - Owners Rehabilitation, which is a
"High Priority'..
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FY 2005-2006 Funding Request Recon/Rehab
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The Housing Rehab/Reconstruction Program will serve the City of Lubbock Targeted
Areas Designated for Fiscal Year 2004-2009.
The target population will be very low, low and moderate -income households and
senior citizens on a low fixed income in the targeted areas. Occupant homeowners
whose homes are dilapidated will benefit by being approved for rehab or
reconstruction, if necessary.
The Rehab/Reconstruction Program is administered by the Community Development
Department in the City Municipal Building at 1625 13"' Street, Room 105.
Construction activities will take place at the homeowner's property.
The Housing Rehab/Reconstruction Program will benefit the very low, low and
moderate income community by assisting low/mod income families to meet the
urgent need of decent, safe, sanitary, energy efficient and affordable housing. The
program will also aid neighborhoods in the prevention and elimination of slum and
blight.
The Community Development staff works with local contractors and subcontractors,
State and Federal offices, local businesses, title companies, non-profit organizations
and other organizations In a cooperative effort to implement the program.
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. LIMIT 1/2 page
• To meet the Community Development's housing objectives and priorities for housing
in the City of Lubbock's Consolidated Plan for Fiscal Years 2004-2009 Owners Rehab
for occupied Housing.
• To meet Lubbock's Community Development Strategy in the designated target areas
for Fiscal Years 2004-2009 to impact areas and to achieve visible results.
• To expand the supply of decent, safe, sanitary and affordable ownership housing by
removing slum and blighting influences in neighborhoods by voluntary demolition of
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4 FY 2005-2006 Funding Request Recon/Rehab Page 7
substandard housing thus stabilizing neighborhoods and enhancing quality of life for
very low, low and moderate income homeowners.
• To promote economic development by creating jobs, sales and services with building
contractors, subcontractors and vendors. The Housing Rehab/Reconstruction
Program assures the continual usage of utilities and the Increase of property tax
revenues.
• To create a revolving loan fund of mortgage payback for the future continuation of
the program.
The outcome and accomplishments will be In the achievement of the above goals and
objectives in constructing affordable homes thus benefiting, impacting and empowering
very low, low and moderate Income households and neighborhoods.
13 households or approximately 52 persons will directly benefit from this program.
Output will be to bring approximately 13 homes to code through either rehab or
i reconstruction. Outcome will be assisting approximately 52 individuals.
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. LEVHT 1/2 page
Activity measures and or steps required to meet the goal include advertisement of
the program through the news media, community centers; non profit organizations,
other local organizations, mall -outs to targeted neighborhoods, walking the blocks to
market the programs, and attending housing fairs and posting the program on the
CD Webslte.
Additional measures and steps include obtaining match funds, applicant response
and cooperation, title search and title problem solving, approval of each case,
inspections, environmental assessments, work write-ups, bid process, loan closing,
demolition, temporary relocation, commencement of construction with periodic
inspections, requisition and disposal of funds to the completion of the rehab or
reconstruction and finals.
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FY 2005-2006 Funding Request Recon/Rehab
Timeline
ITEM
DATES
Page 8
Market Program
Oct. 2005 - Ongoing until
funds expended
Rehab/Recon applications, Title Search, Credit
Nov. 2005 - May 2006
& Title Clearance
Inspections, Environmental Assessments,
Jan. 2006 - Dec. 2006
Work Wrlte-ups for Rehab or Demolition &
Reconstruction and Bid Process
Insurance Quotes, Legal Instrument
March 2006 - Feb. 2007
Preparation, Relocation Needs Assessed, if
applicable, and Loan Closings
Temporary Relocation, Voluntary Demolition, if
March 2006 - Aug. 2007
applicable, and Commencement & Completion
of Rehab/Reconstruction.
Final Request for Payment/Final Report
Sept. 2007
Significant milestones for this program will be providing approximately 52
individuals with decent, safe and sanitary housing.
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. LOUT 1/2 page
The program will be evaluated on the number of households served, jobs created,
total funds expensed, funds being returned through loans made, objectives and
timeline goals met, visual impact to the target neighborhoods, and the amount of
interest in the program beyond funding capabilities.
The criteria used to measure success will be based on the above listed evaluations
and past performance.
To elaborate on output and outcome by assisting approximately 13 households, this
will improve the qualify of housing in the neighborhoods, the quality of living
conditions for low to moderate income households, and increase the tax base, thus
improving the entire neighborhood and community.
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FY 2005-2006 Funding Request Recon/Rehab Page 9
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. LBM 1/2 page
The Housing Reconstruction portion of the loan is paid back on a sliding scale in
proportion to family Income and family size. The payback varies from 10% to 60%.
The average payback is $21,672.00 for each loan. For an estimated six (6) loans at
3% interest for 20 years, the total amount received will be $173,073.60 at an average
of $721.14 per month. Rehab loans vary from being 100% forgivable to 60% payback
loans, depending on the sliding scale of applicant's income. The payback would vary
considerably if more homeowners fall at the lower end of the payback scale, it is
estimated that approximately seven (7) houses will be rehabbed.
F. PUBLIC SERVICE APPLICANTS ONLY
1. If program is a public service, outline your plan to develop alternative funding to replace Community
Development funds at the end of the three-year cycle. Provide a timeline, with measurable goals and
objectives as a part of your plan. Limit 1 page
N/A — City Department
2. If this is your second or third year of funding, update your accomplishments in meeting the goals and
objectives in your funding plan and timeline. Limit 1 page
N/A — City Department
4 •
FY 2005-2006 Funding Request Recon/Rehab Page 10
G. PROJECT BUDGET
1. Please list applicant's anticipated expenditures, detailing requested funds and applicant's matching
funds. Please place C=Cash, S=Sweat Equity, Other Grants, D=Donations beside each amount
under "Applicant's Match" to denote the type of match being used.
DMINISTRATION•
IP
ersonnel #
Payroll Taxes
EnTloyee Benefits
Office Supplies
Copy Supplies
Postage
Telephone
Promotional
Professional Service
Vehicle Fuel/Mileage
Other:
PROGRAM:
Acquisition
Reconstruction
$492 000.00
$492 000.00
Rehabilitation
$315 000.00
$315 000.00
Installation
Demolition
$ 30 000.00
$ 30 000.00
Training/Tech. Asst.
Direct Assistance
Rental of Space
Rental of Equipment
Professional Services
for Clients
Other:
Professional services
Contingency 2%
$ 9,840.00
$ 9,840.00
Closing Costs
$ 12,000.00
$ 12 000.00
Relocation
$ 41 160.00
$ 41,160.00
TOTALS
$900,000.00
$900,000.00
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} FY 2005-2006 Funding Request Recon/Rehab 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? LEWr 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 and infrastructure 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 Recon/Rehab
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.
MUT I page
C D ORGANUATIONAL CHART
1hiryhfiryhfPH.qfaff ara invnived in this nrwram)
STAFF PERSON NAME
YEARS OF JOB
& TITLE
EXPERIENCE RESPONSIBILITIES
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Yolanda Pastrano, Admin. Asst. 6 Takes applications for Grant programs, handles
I RreRaration for Boards & Commissions.
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} FY 2005-2006 Funding Request Recon/Rehab Page 13
3. Reporting Capabilities: Describe your organization's system for collecting and reporting data. Are
you providing reports to any other funding entities? LIlVM 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. LIMIT 1/2 page
N/A
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. LIIVIIT 1 page
} N/A
/ o • 1
�1 1
FY 2005-2006 Funding Request Recon/Rehab 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 e City Council?
El Yes 3kNo
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 durin¢ 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
Title: Field Services Coordinator
Signature: z�34o6,
Date: April 1, 209
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FY 2005-2006 Funding Request
HOME Investment Partnership Program
Certification of Governmental Assistance
Date: April 1, 2005
Recon/Rehab
ATTACHMENT 4
Funding Year: April 1, 2005
Applicant: Community Development Dept. of the City of Lubbock
Project Address: P. O. Box 2000, Lubbock, TX 79457 (1625 13'h Street. Rm.105)
Amount of Home Funds Requested: $900 000.00
Number of Units: Thirteen (13)
Page 15
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
Amount of Assistance
Eligible Time Period
HOME Program Funds
$900,000.00
2 year timeline herein is within
the 5 yr. Total Setup &
Completion HOME Program
Guidelines.
I Phyllis Brown hereby certify that the information contained in this document is
true and accurate.
Brown, Field Services Coordinator
April 1, 2005
Date
BEFORE me, the undersigned, a Notary Public in and for the said County and State personally appeared
MKIFn N I ' dinator on this 1st day of April, 2005..
(Votary Public, State of Texas
My commission Expires yL._
�** or-12-2007` l '
af
Notary Public, State of Texas