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HomeMy WebLinkAboutResolution - 2005-R0288 - Approve HOME Funding - COL CD Housing New Construction Program - 06_23_2005Resolution No. 2005-RO288 June 23, 2005 Item 69 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 New Construction 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 firth herein and shall be included in the minutes of the City Council. � Passed by the City Council this 23rd day of AuneZ f , 2005. AlARC McDOU64L, MAYOR ATTEST: P4"tr-� Rebecca Garza, City Secretary VED AS TO CONTENT: Nancy Haney Community I AS ey ccdocs/res-Housing New Construction Prog-HOME.res June 17, 2005 s t T o 4 f FY 2005-2006 Funding Request New Construction 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: CoMgMMily Development Department ❑ Not -For -Profit ❑ For -Profit ❑ CHDO City 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: New Construction (HOPE Funds for HOME Match) 3. Area or Location of Project: Targeted 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 ___ FUNDS FOR 5. Grant Request: ❑ CDBG ❑ ESG HOME MATCH 6. Amount of Funds Requested for Project: $280,000.00 7. Amount of Matching Funds for Project: . Match Type: ❑ Cash ❑ Sweat Equity ❑ Other Grants ❑ Donations Identify Source of Match: N/A — Cityepartment Match Status: []Confirmed ❑ Requested 8. Unduplicated Units Served (agency's definition) (a) Total CD Funds Requested $240,000.00 (b) Total Unduplicated Units Served 3 (c) Average CD Cost Per Unit (a/b): $80,000.00 9. Is this project? ❑Year 1 Year 2 d) Total Project $240,000.00 e) Total Unduplicated Units Served 3 f) Average Cost Per Unit (d/e): $80,000.00 0 Year 3 0 Year 4 ♦ t V b ` 4 FY 2005-2006 Funding Request New Construction 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 This is a second year program to assist first-time homebuyers in becoming homeowners by constructing three new homes. These homes will be funded with HOPE 3 closeout funds and once expended, will be eligible for required HOME Match for the HOME Entitlement program. C. CONSOLIDATED PLAN GOAL Check the ONE GOAL that best describes your project. Check One Prioritized Objective Number of Units from Consolidated This Project Will Serve &Plan d i5.S fi+'y2i h' H .-. .4:'hr�ly�'IS;fL1'f 1'h. hV�l:r �i.F�a::Y--{—. .. Y +...:... .,e?, 11 W I. Lc11r'd3,�''_: :( '=4 r.'..'Ta. ^'r '2!- _..._. ..... a.... ._ .. ... _...... .. H-1 Owners -Rehab Households: H-2 Owners -Limited Rehab Households: X H-3 Owners -Assistance for Home Buyers Households: 3 p iI:—IM:i I .I :�YJ Y�f.CY Ti rSa�...f':.-...._ i�(,..s.}j �.Q'F 3 t. 2 h r�. J. !I� � i� 1a :I� i1 1 r ".Yi 'rii : ft�' �' ISii�::10. i"Y� � �, l StiN i. r Q � a]L ,� 3 L } :4.9 L' n 'i+1. _4.v:1hYa�ti f.1 grF1L iir'Y Ci F f� yrYii _i i�1 5 fix' r� I'3�1R'i'IaF1 }(83 RFIIfi1P� t`I 4, .f'P i1 il'cF. i. Economic Development CD-1 Rehab of Publicby 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: t rt T O 4 • 1 FY 2005-2006 Funding Request New Construction 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 worldng with other organizations in a cooperative effort on the program? LEWr 3 pages This is a second year program using HOPE 3 Revolving Funds for HOME Match for New Construction to assist first-time homebuyers in becoming homeowners. People living in substandard houses too dilapidated to rehab are also eligible for the program. People can select a URA lot or a lot will be acquired. The $240,000.00 will be used to construct 3 new homes. The homes will be 1,100 to 1,400 square feet and constructed of Insulated Concrete Forms. The exterior will be all brick with metal siding on the facia and Insulated glass aluminum windows. The funds for this program come from the payments made to the department from the HOPE 3 Program. Since the HOPE Program has been closed out, the payments received are eligible to be used as HOME Match as long as they are used in a HOME eligible activity, such as New Construction. 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 New Construction Program since 2000 and is equipped to handle the project. The Consolidated Plan for Fiscal Years 2004-2009 under Housing Needs — shows Owners -Assistance for Home Buyers as a "High Priority". �s o • FY 2005-2006 Funding Request New Construction Page 6 The New Construction Program will provide in -fill construction on Urban Renewal lots or lots acquired in other areas by approved applicants. The target population will be very low, low and moderate -income households and senior citizens on a low fixed income in the targeted areas. The New Construction Program is administered by the Community Development Department in the City Municipal Building at 1625 13t' Street, Room 105. Construction activities will take place at the homeowner's property. The New Construction 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 quality affordable housing. The program will also aid neighborhoods in the prevention and elimination of slum and blight by providing In -fill construction on vacant lots. 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. LEWr 1/2 page • To expend HOPE funds for a HOME eligible activity to continue to have the required Match for the HOME Entitlement Program. • 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 Assistance for Homebuyers. ♦ = T O 4 • r FY 2005-2006 Funding Request New Construction Page 7 • To expand the supply of decent, safe, sanitary and quality affordable ownership housing. • To promote economic development by creating jobs, sales and services with building contractors, subcontractors and vendors. The New Construction Program assures the continual usage of utilities and the increase of property tax revenues. • To provide In -fill housing on vacant lots. • 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. Approximately 3 houses or 12 individuals will benefit from this program. Output will be to build 3 new homes. Outcome will be assisting approximately 12 Individuals to live in quality affordable housing. 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. LMM 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, word of mouth, and attending housing fairs and posting the program on the CD Website. Additional measures and steps include holding pre -homeownership classes, applicant intake and underwriting, title search and title problem solving, approval of each case, inspections, environmental assessments, work write-ups, bid process, loan closing, commencement of construction with periodic inspections, requisition and disposition of funds to the completion of the new home and finals. Timeline a ♦ � o hA FY 2005-2006 Funding Request New Construction ITEM DATES Page 8 Market Program Pro -Homeownership Classes Oct. 2005 Nov.2005 Take Applications Nov. — Dec. 2005 Orientation/drawing for approved Applicants Jan. 2006 Pick lots/Pick Plans/Bid Process Feb. — April, 2006 Close Loans March — May 2006 Final Request for Payment/Final Report Sept. 2007 Construction of Homes April 2006 — Feb. 2007 Final Paperwork/Final Disbursement/ Final Reports March, 2007 Significant milestones for this program will be providing approximately 3 families or 12 individuals with decent, safe and sanitary housing and quality affordable 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. LLMT 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 of the In -fill housing 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 of building 3 new homes with an outcome of assisting approximately 12 Individuals with quality affordable housing by providing in -fill housing in neighborhoods, thus increasing the tax base and improving the entire neighborhood and community. ♦ t i o } FY 2005-2006 Funding Request New Construction 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..LEWr 1/2 page The New Construction 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 $40,702.00 for each loan. For an estimated three (3) loans at 3% interest for 20 years, the total amount received will be $162,525.60 at an average of $677.19 per month. 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 1 = T O FY 2005-2006 Funding Request New Construction Page 10 G. PROJECT BUDGET 1. •lease list applicant's anticipated expenditures, detailing requested funds andapplicant's funds. Please place C=Cash, S=Sweat Equity, 0--Other Grants, D=Donations beside each amoun' under "Applicant's Match" to denote the type of match being used. wt's.W.y� tak•% 13.1 ' "y t," i 12 x�,��»k—A� �e�,�:��,�-a •�r"+ds d ;�, s a �s: Copy SUpplies Professional -Service - PROGRAM: Acquisition New Construction $240,000.00 $240.000.00 Installation Training/Tech Asst. Direct Assistance Rental of Space Rental of Equipment Professional Services for Clients Other: Professional services TOTALS $240,000.00 $240,000.00 T 4 FY 2005-2006 Funding Request New Construction 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? LEWT 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. o FY 2005-2006 Funding Request New Construction 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. LD1IT I page C D ORGANIZATIONAL CHART (nkqnttqnrea sraTr are invoiveu in ints pruyfam) STAFF PERSON NAME YEARS OF JOB & TITLE EXPERIENCE RESPONSIBILITIES H WM r 4N.; 2 .... . ..... HA U ILI . ... . H4 2, 21 ffi%g `V 0.14 W 9L a ogrin 01. 91 AR KU Closes rehab., HEEELP & Hope 3 loans. Prepares We'hab. Loan Specialist 10 reports & maintains budgets. Markets programs and serves as liaison between homeowner, contractor, tide companies, appraisers, etc. N4, � all Min IM OE" RM RM UN, Yolanda Pastrano, Admin. Asst. 6 Takes applications for Grant programs, handles preparation for Boards & Commissions. fth 11r`aye 1 vii RM 20 ! .... ....... V., 1-0 91- .2 . P IN U Wfl! 01 Vla-. R a r ' � 1 FY 2005-2006 Funding Request New Construction Page 13 3. Reporting Capabilities: Describe your organization's system for collecting and reporting data. Are you providing reports to any other funding entities? LLM1T 112 page An expenditure and Demographic Report is generated on each housing program monthly. This information is collected from applications in the individuals case flies 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 21st 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. LEI M 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. LI NM 1 page } N/A c t t T o FY 2005-2006 Funding Request New Construction 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 malting 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 XNo 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 Develoyment Services Board has a conflict, they may not Participate i iub-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: Title: Field Services Coordinator Date: Anril 1. 2Z05 s o 4 . ,, = FY 2005-2006 Funding Request New Construction Page 15 ATTACHMENT 4 HOME Investment Partnership Program Certification of Governmental Assistance Date: April 1. 2005 Funding Year: April 1, 2005 Applicant: Communi Development Dept. of the City of Lubbock Project Address: P. O. Box 2000, Lubbock, TX 79457 (1625 13`b Street, Rm.105) Amount of Home Funds Requested: $240,000.00 Number of Units: Three (3) 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 $240,000.00 18 month timeline herein will suffice to meet HOME Match requirements. I Phyllis Brown hereby certify that the information contained in this document is true and accurate. Field Services Coordinator April 1, 2005 Date BEFORE me, the undersigned, a Notary Public in and for the said County and State personally appeared Phyllis Brown, Field Services Coordinator on this 1st day of April, 2005.. o CARO =':v `�'? c�S� �' r ?, `� t 1�t to ! ^( i �, �✓�/ �i�. Notary P,jn:;:, SWG ? Yaym ' Notary Public, State of Texas •. ,. �i;omm�sias�t i:xoir+7s .k w_ art-=-''e , __ • _ ...,.'if,µ i j_-f�� " ......<..._. t: