HomeMy WebLinkAboutResolution - 3344 - Grant Application - HUD - 1990-91 Rental Rehab Block Grant Program - 04_12_1990i
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RESOLUTION
Resolution # 3344
April 12, 1990
Item #19
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
directed to execute and submit for the City of Lubbock a Federal Rental
Rehabilitation Grant Program Application for the fiscal year 1990-91 and
related documents, which application attached herewith, shall be spread upon
the minutes of the Council and as spread upon the minutes of this Council
shall constitute and be a part of this Resolution as if fully copied herein
in detail.
Passed by the City Council this 12th day of April , 1990.
ne4te boya, uity ,)ecre% ar
APPROVED AS TO CONTENT:
Sandy Og ree, ommunity Development
Administrator
APPROVED AS TO FORM:
Rosanne Piatt, Assistant City
Attorney
B. C. McMI N, MAYOR
OMS 433i` $03U-004
C
C
Af NLILA f 1UN rUH
FEDERAL ASSISTANCE�n`
2. DATE SUBMTTWO
Identifier
1. TY" OF SUBMIS3101h
2. DATE RECEIVED BY STATE
Slate Applicmtion Identifier
Application Preapplication
O Construction Construction
4. DATE RECEtVEO BY FEDERAL AGENCY
Federal Identifier
O Non-C.onstructoon [] Non -Construction
S. APPLICANT INFORMATION
Legal Name: — - -
Organizational Unit:
City of Lubbock
Community Development Department
Address (give city, county. state. and zip code):
Name and telephone number of the person to be contacted on matters involving
City of Lubbock
this epaw-atton (give area code)
P. 0. Box.2000
Sandy Ogletree
Lubbock, Texas 79457
(806) 767-2290
Lubbock County
S. EMPLOYER IDENTIFICATION NUMBER IEIN):
7. TYPE OF APPLICANT: (enter appropriate letter in bar)
6 0 0 1 0 1 5 1 9 0
A. State H Independent School Dist.
8 County I.• State Controlled Institution of Higher Learning
C. Municipal - J. Private University
L TYPE OF APPLICATTOht
D. Township K Indian Tribe
MC New ❑ Continuation ❑ Revision
E. interstate • L. Individual
F tntermunlcipal M Profit Organization
If Revision. enter appropriate tetter(s) in box(es):
G Special District N. Other (Specify).
A. Increase Award 8 Decrease Award C. Increase Duration
D. Decrease Duration Other (specify):
f. NAME OF FEDERAL AGENCY:
Housing & Urban Development, Ft. Worth, TX
10. CATALOG 0�1 FEDERAL DOMESTIC 1 4 1 2 3 O
11. DESCRIPTIVE TITLE OF APPLICAKT"S PROJECT:
ASSISTANCE NUMBER: e
1990-91 Rental Rehabilitation Block
TTTLE
Grant Program
Rental Rehabilitation Block Grant
12. AREA.S AFFECTED BY PROJECT (cities. counties. states. etc.):
City of Lubbock
12. PROPOSED PROJECT:
14. CONGRESSIONAL DISTRICTS OF:
Start Date
Ending Date
a- Applicant : b. Protect
4-20-90
4-20- 91
19th 19th
13. ESTIMATED FUNDING:
1fi. IS APPLICATION SUBJECT TO REVIEW BY STATE EXECUTIVE ORDER 12272 PROCESS?
: YES THIS PREAPPL.)CATIO&APPLICATION WAS MADE AVAILABLE TO THE
a Feaeral
S117,000 .00
STATE EXECUTIVE ORDER 12372 PROCESS FOR REVIEW ON
DATE
b. ADoor-ant
! .00
c State
! .00
b NO ® PROGRAM IS NOT COVERED BY E O. 12372
OR PROGRAM HAS NOT BEEN SELECTED BY STATE FOR REVIEW
d Lost
! .00
e Other
! .00
I Program Income
S .00
M tS THE APPLICANT DELINOUEMT ON ANY FEDERAL DEBT?
Yes If 'Yes,' attach an explanation ® No
q TOTAL
! 117,000 -00
tl. TO THE BEST OF MY KNOWLEDGE AND BELIEF. ALL DATA IN THIS APPLICATION PREAPPLICATION ARE TRUE AND CORRECT. THE DOCUMENT HAS BEEN DULY
AUTHORfZED BY THE GOVERNING BODY OF THE APPLICANT AND THE APPLICANT. WILL COMPLY WITH THE ATTACHED ASSURANCES .IFTHE ASSISTANCE IS AWARDED
a Typed Name of Authorized Representative
b Trite
c Teleohone number
B. C. McMinn
Mayor
(806) 767-3000
d Signature of Authorized ReoresentiLbve
a Date S gned
April ]. 2, 1990
APPROVED AS TO CONTENT: APPROVED AS,T?jFORM,
i /,�z:�U.t_ ��_%` Asst. City Attornev
_ConTrnmity Dey. Admin. /_'
INSTRUCTIONS FOR THE SF 424
This is a standard form used by applicants as a required facesheet for preapplications and applications submitted
for Federal assistance. It will be used by Federal agencies to obtain applicant certification that States which have
established a review and comment procedure in response to Executive Order 12372 and have selected the program
to be included in their process, have been given an opportunity to review the applicant's submission.
Item: Errtrv:. Item: Entrv:
1.
Self-explanatory.
12.
List only the largest political entities affected
2.
Date application submitted to Federal agency (or
(e.g., State, counties, cities).
State if applicable) & applicant's control number
13.
Self-explanatory.
(if applicable).
3.
State use only (if applicable).
14.
List the applicant's Congressional District and
4.
If this application is to continue or revise an
any District(s) affected by the program or project.
existing award, enter present Federal identifier
15.
Amount requested or to be contributed during
number. If for a new project, leave blank.
the first funding/budget period by each
5.
Legal name of applicant, name of primary
contributor. Value of in -kind contributions
organizational unit which will undertake the
should be included on appropriate lines as
assistance activity, complete address of the
applicable. If the action will result in a dollar
applicant, and name and telephone number of the
change to an existing award, indicate only the
person to contact on matters related to this
amount of the change. For decreases, enclose the
application.
amounts in parentheses. If both basic and
6.
Enter Employer Identification Number (EIN) as
supplemental amounts are included, show
assigned by the Internal Revenue Service.
breakdown on an attached sheet. For multiple
program funding, use totals and show breakdown
7.
Enter the appropriate letter in the space
using same categories as item 15.
provided,,
8.
Check appropriate box and enter appropriate
16.
Applicants should contact the State Single Point
letter(s) in the space(s) provided:
of Contact (S. OC) for Federal Executive Order
12372 to determine whether the application is
—"New" means a new assistance award.
subject to the State intergovernmental review
—"Continuation" means an extension for an
process.
additional funding/budget period for a project
with a projected completion date.
17.
This question applies to the applicant organi-
-"Revision" means any change in the Federal
zation, not the person who signs as the
Government's financial obligation or
authorized representative. Categories of debt
contingent liability from an existing
include delinquent audit disallowances, loans
obligation.
and taxes.
9.
Name of Federal agency from which assistance is
18.
To be signed by the authorized representative of
being requested with this application.
the applicant. A copy of the governing body's
10.
Use the Catalog of Federal Domestic Assistance
authorization for you to sign this application as
number and title of the program under which
official representative must be on file in the
assistance is requested.
applicant's office. (Certain Federal agencies may
11.
Enter a brief descriptive title of the project.` if
require that this authorization be submitted as
more than one program is involved, you should
part of the application.)
append an explanation on a separate sheet. If
appropriate (e.g., construction or real property
- -
projects), attach a map showing project location.
For preapplications, use a separate sheet to
provide a summary description of this project.
SF 424 rPEv a•88• Bacb
2 33` 4
RENTAL REHABILITATION PROGRAM
The City of Lubbock is applying for $117,000 from the Department of
Housing and Urban Development for the Rental Rehabilitation Program.
This program was authorized under Section 17 of the United States
Housing Act of 1937 which was enacted into law in Section 301 of the
Housing and Urban -Rural Recovery Act of 1983. The City of Lubbock is
a direct grantee of the program as based on the funding formula as
established by the regulations. The following is a description of the
program as designed by the City of Lubbock.
I. PROGRAM OVERVIEW
The Rental Rehabilitation Grant Program will be utilized for the
rehabilitation of real property to be used for primarily
residential rental purposes. It is proposed that approximately
14 units will be assisted by this program.
The objectives of the Rental Rehabilitation Program for the City
of Lubbock are:
- To increase the stock of standard rental units for
low -to -moderate income tenants;
- to involve private sector lenders to a significant degree
in project financing;
- to limit public subsidy to only the amount necessary to
make a project feasible;
- to.avoid any rent controls and to have rehabilitated
properties rent for market rents as defined by the
public sector.
The City of Lubbock will provide assistance to rental property
owners to encourage the rehabilitation of property that might
otherwise not be economically feasible to repair.
The Rental Rehabilitation program will be jointly conducted by
the City of Lubbock's Community Development Department and the
Lubbock Housing Authority. A Memorandum of Agreement which
outlines the willingness of the Lubbock Housing Authority to
administer the Section 8 Certificate Program in conjunction with
the Rental Rehabilitation Program is executed.
II. PROJECT FINANCING
Projects will be financed through a combination of rental
rehabilitation loan funds, private lender funds, and owner's
equity. The amount of City funds provided will be determined
1
after a review of the project income/expense statement. The
amount of rental rehabilitation subsidy shall not exceed 500 of
the total cost of the rehabilitation and the amount of rental
rehabilitation for any project shall not exceed $5,000 per unit
for efficiency units, $6,500 per unit for one -bedroom units,
$7,500 per unit for two -bedroom units, and $8,500 per unit for
three or more -bedroom units.
The minimum public subsidy shall not be less than $2,000 per unit
per project. The loan amount from the private lender will be
determined by the lender using its own underwriting criteria.
The City's loan will be structured as a no -interest deferred loan
which is forgivable at the end of ten years. If the property
owner does not comply with the guidelines of the program, the
loan becomes immediately due and payable. The following
conditions must be met to be in full compliance of the program:
a) The property must be maintained as a residential
property, which is leased or rented to members of
the public for residential purposes.
b) The property must be maintained in a safe and sanitary
condition and in compliance with all City of Lubbock
Building, Plumbing, Electrical and Mechanical Codes.
c) The property may not be converted to condominium
ownership or any form of cooperative ownership.
If each of these conditions is complied with for a period of ten
years, then the public subsidy loan will be forgiven.
A lien will be filed on each accepted project, and the conditions
of the Rental Rehabilitation Program will be reviewed annually
for compliance.
III. ELIGIBLE REPAIRS
The rental rehabilitation loan may be used for repairs necessary
to meet the; a) basic health, safety, and fire standards
contained in the City of Lubbock's Building, Plumbing,
Electrical, and Mechanical Codes, b) the Section 8 Housing
Quality Standards, and c) the cost effective energy requirements.
A limited amount of non -code but essential repairs, as defined in
the regulations 570.10 (g)(i)(ii), will be allowed in
rehabilitating the structure.
2
IV. NEIGHBORHOOD SELECTION. NEIGHBORHOOD PRESERVATION AND LOWER
INCOME BENEFIT
The City of Lubbock's Planning Department Neighborhood Statistics
Data for the City is used to determine neighborhood selection.
The Neighborhood Statistics Program compiled information on the
income, racial, and housing characteristics of the neighborhoods.
The target neighborhoods for the 1990-91 Rental Rehabilitation
Program reflect current neighborhood conditions. The area is
limited to neighborhoods where the neighborhood decline is
calculated to meet the low income requirements.
The City anticipates the impact of this program on neighborhood
preservation to be positive. During the preparation of the
City's Housing Assistance Plan, the lack of available decent,
safe, and sanitary units in the rental market became acutely
apparent. This program will assist the City in its goal of
stabilizing neighborhoods and in increasing the number of
available rental units.
Other factors which will be considered during the neighborhood
evaluation are: median income, median rent levels, the
historical trend of the area, current and projected land use, and
current housing stock conditions. With each of these
considerations, a rapid increase in the rent levels in the
selected neighborhoods is not anticipated. A market analysis of
targeted neighborhood will be conducted which assesses the
current rent structure and vacancy rates in preliminarily
selected neighborhoods. The neighborhood rental rates will be
compared to Section 8 Fair Market Rents.
The City is requesting a 70% lower benefit guideline. This
guideline will minimize displacement of existing tenants in
projects to be rehabilitated and will provide a reasonable margin
of error during project or neighborhood selection.
To further insure the City's compliance with the lower income
benefit guideline, the City's project selection criteria will
favor properties that are occupied by Section 8 eligible tenants
or properties which are vacant at the time of applicant
submission.
The City of Lubbock will require that the project applicant
provide information pertinent to the determination of Section 8
eligibility for existing tenants. This information will be
required upon application to the Rental Rehabilitation program.
This information will be utilized during the evaluative process
and to assist the City in compliance with the lower income
benefit guidelines. This information will also be utilized in
3
as _ess_ing._the _tenant__for :inclu Qz� .. n__the-Section 8- Certificate
Program and in calculating potential relocation benefits.
Potential tenants for the available or vacant rehabilitated units
will be selected from the City of Lubbock's Section 8 waiting
list. By definition, tenants selected from this list who are
eligible for Section 8 assistance will be lower income.
Additionally, the City of Lubbock's project selection criteria
will place a higher priority on properties occupied by very low
income persons. The very low income guidelines is 500 of the
City's median income or below.
V. LARGE FAMILY AND VERY LOW INCOME EMPHASIS
The Rental Rehabilitation Program is placing a major emphasis on
the rehabilitation of units with two or more bedrooms. These
larger units are to be occupied by large families. The City of
Lubbock will encourage the rehabilitation of large family units
by allocating only 200 of the Rental Rehabilitation Grant funds
for one bedroom or zero bedroom units.
The City of Lubbock's project selection criteria will place a
higher priority on properties occupied by very low income persons
and those properties which have two or more bedrooms.
VI. SELECTION OF PROJECTS
Each project will be reviewed according to criteria which
includes the following:
a) The project is consistent with the objectives of the
Rental Rehabilitation Program.
b) The private funds and owner's equity are sufficient to
complete the financing of the project.
c) The location of the project is consistent with the low
and very low income guidelines and is in a targeted
•neighborhood.
d) The condition of the property is substandard, and it
can be rehabilitated to meet local codes with the
available financing, both public and private.
e) The level of displacement is minimal.
f) The project contains the targeted number of one and
two bedroom, or larger units.
4
The cash -flow analysis for each project will be completed to
determine the financial feasibility of the project and to
minimize the level of public subsidy required for each project.
This is also essential in evaluating the rent reasonableness
after rehabilitation of the unit.
The City of Lubbock's agreement with the selected property owners
will formalize the owner's agreement to comply with the program
guidelines. If the property is not maintained as originally
proposed, the City has the option of calling the lien due in
full.
VII. IMPLEMENTATION SCHEDULE FOR RENTAL REHABILITATION PROGRAM
Immediately following the grant agreement for the Rental
Rehabilitation Program, the City anticipates the following
schedule for the disbursement of the available funds.
Quarter % of Fund Committed
1 0%
2 10 %
3 500
4 100 %
VIII. OTHER PROGRAM REOUIREMENTS
The City of Lubbock will require all program participants to
comply with all applicable nondiscrimination, affirmative
marketing and equal opportunity requirements as required by the
statute. These requirements will be formalized in the agreement
between the property owner and the City of Lubbock.
IX. CONTACT PERSON
The local contact person is Sandy Ogletree, Community Development
Administrator, City of Lubbock, P. O. Box 2000,;Lubbock, Texas
79457. The telephone number is (806) 767-2290.
The local contact person for the Lubbock Housing Authority is
D.C. Fair, Executive Director, Lubbock Housing Authority, P. O.
Box 2568, Lubbock, Texas. The telephone number is 762-1191.
CERTIFICATIONS FOR THE RENTAL REHABILITATION BLOCK GRANT PROGRAM
The City of Lubbock certifies that:
1. The submission of the program description is authorized
under State and local law (as applicable), and the grantee
possesses the legal authority to carry out the rental
rehabilitation program described therein, in accordance with
this part;
2. Its rental rehabilitation program was developed after
consultation with the public and its description of program
activities referred to in paragraph (b) (1) of this section
has been made available to the public;
3. If applicable, its lower income benefit standards should be
reduced to 70 percent, as provided by §511.10 (2) (2): this
certification will be accompanied by an explanation of the
reason why the reduced benefit standard is necessary, as
provided in §511.10 (a) (2);
4. A written tenant assistance policy conforming to the
requirements of §511.10 (h) (92) has been adopted;
5. It will conduct and administer its rental rehabilitation
program, and, if applicable, ensure that State recipients
conduct and administer their rental rehabilitation programs,
in conformity with the requirement of §511.10 (m);
6. It will comply with the Drug -Free Workplace requirements in
accordance with 24 CFR part 24, subpart F.
The City of Lubbock further certifies that:
(1) No Federal appropriated funds have been paid or will be paid, by
or on behalf of the undersigned, to any person for influencing or
attempting to influence an officer or employee of any agency, a
Member of Congress, an officer or employee of Congress, or an
employee of a Member of Congress in connection with the awarding
of any Federal contract, the making of any Federal grant, the
making of any Federal loan, the entering into of any cooperative
agreement, and the extension, continuation, renewal, amendment,
or modification of any Federal contract, grant, loan, or
cooperative agreement.
(2) If any funds other than Federal appropriated funds have been paid
or will be paid to any person for influencing or attempting to
influence an officer or employee of any agency, a Member of
Congress, an officer or employee of Congress, or an employee of a
6
Member of Congress in connection with this Federal contract,
grant, loan, or cooperative agreement, the undersigned shall
complete and submit Standard Form-LLL "Disclosure Form to Report
Lobbying," in accordance with its instructions.
(3) The City shall,require that the language of this certification be
included in the award documents for all subawards at all tiers
(including subcontracts, subgrants, and contracts under grants,
loans, and cooperative agreements) and that all subrecipients
shall certify and disclose accordingly.
AFFIRMATIVE MARKETING POLICY
City of Lubbock
Rental Rehabilitation Program
Affirmative Marketing Policy
In receiving financial assistance under the Rental Rehabilitation
Program, owners must agree to participate in an affirmative marketing
plan. Affirmative marketing has two primary objectives:
1. Potential tenants from all racial, ethnic groups are
informed about available vacant rehabilitated units.
2. In particular persons, who are not likely to apply for this
housing without special outreach, are informed about the
rehabilitated units.
The affirmative marketing plan is designed to promote the concept of
fair housing and to help eliminate any discrimination in housing
because of race, age, sex, or handicap.
I. Requirements for compliance with affirmative marketing.
a. All vacant units must carry the Equal Housing Opportunity
Logo.
b. Any yard signs used to attract tenants should exhibit Equal
Housing Opportunity Logo.
C. Owners are encouraged to advertise units in other
publications such as the Thrifty Nickel, which is free to
the public and available at grocery and convenience stores.
II. Procedures to inform, and solicit applications from, persons in
housing market area who are not likely to apply.
a. Vacancies will be reported to the City's Housing Office to
be posted and made available to the public.
b. Owners are encouraged to list their vacancies with the
rental directory agencies frequently used by low to moderate
income families.
C. Owners should submit copies of published advertisements to
be reviewed for compliance with the Affirmative Marketing
Plan.
III. Assessment of owner's efforts in affirmative marketing and
Corrective actions for failure to participate.
a. Initial leasing of all units will be monitored to assure
that at least 70% of all units are initially occupied by low
to moderate income families and that affirmative marketing
was used. In those units leased to unassisted tenants, the
Rental Application Forms will be reviewed to determine the
effectiveness of advertisements and outreach attempts.
b. Each owner's affirmative marketing attempts will be
assessed. If a blatant disregard of the policies has been
demonstrated, the Community Development Department will
refer the matter to the City Attorney to be considered as a
possible violation of the Fair Housing Ordinance.
As a last resort, after counseling and continued lack of
compliance, an owner may be required to repay upon demand
the rental rehabilitation assistance received from the City.
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RENTAL REHABILITATION TARGET AREAS