HomeMy WebLinkAboutResolution - 2016-R0259 - Approve NELCDC FY 2015-16 - 07/28/2016Resolution No.2016-R0259
Item No.7.14
July 28, 2016
RESOLUTION
WHEREAS,the North and East Lubbock Community Development Corporation
("NELCDC)is a charitable,tax-exempt corporation that was created in February 2004 to spur
growthand investment inthe targetareaof the Cityof Lubbock.Texas; and
and
WHEREAS,City of Lubbock currently provides operational funding for the NELCDC;
WHEREAS,the City Council of the Cityof Lubbock,Texas,approved an appropriation
of funding in the North and East LubbockNeighborhood and Infrastructure Fund to be utilized for
North and East Lubbock in the FY 2015-16 Operating Budget and Capital Program,with
Ordinance 2015-00094,on September 10,2015 inthe amount of $232,667 and approved Budget
Amendment 34 on July 14,2016 for an additional amount of $130,880, an amount equal to the
threehundredsixty-three thousand,five hundred forty-seven dollars ($363,547)necessary to fund
the NELCDC for fiscal year 2015-16;and
WHEREAS,the NELCDC Board of Directors approved a proposed budget for Fiscal Year
2015-16,utilizing grants of municipal funds to operate its existing programs and activities for
housing and economic development within the north and east areas of the City of Lubbock. Texas;
NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Lubbock City Council hereby approves the North and East Lubbock Community
Development Corporation Budget for Fiscal Year 2015-16.Said Budget is attached hereto and
incorporated as if fully set forth herein.
Passed by the Lubbock City Council on Juty 28
ATTEST:
[ebpeca Garza,City Secret
APPROVED AS TO CONTEN
Bill Ha&erton,Assistant Citv^tanager
APPROVED AS TO FORM:
Res-NBEUDC Budget Approval FY 2015-16
6.22.16
,2016.
DANIEL M.POPE,MAYOR
North I
Lubboci
Community
(Development
Corporation
Board of
Directors
David Haynes
Chairperson
Henry Ray Lozada
Vice Chairperson
Cosby Morton
Treasurer
Sonny Garza
AssL Treasurer
Rosalind Priestley
Secrean
Monique Coleman
Executive Director
Juan Chadls
Gilbert Flores
Vernita Holmes
Subodh Patel
North & East Lubbock
Community Development Corporation
P.O. Box 3893 Lubbock, Texas 79452
Phone: (806) 747-5937 Fax: (806) 747-5934
Email: me nelcdc(a)outlook.com
May 12, 2016
Cheryl Brock
Executive Director of Budget
P.O. Box. 2000
Lubbock, TX. 79457
Ms. Brock:
The North & East Lubbock CDC respectfully requests a funding allocation of
$363,547 as a portion of oil and gas royalties in the form of a Chapter 380 Grant
Management Agreement as permitted by Local Government Code 380.002.
Please find the fiscal year 2015-2016 NELCDC budget and performance
measures below. The proposed budget was approved by the NELCDC Board of
Directors on January 27, 2016 and line item amendments were approved on March
23, 2016.
Please let me know if you require additional information. Thank you in advance
for your consideration.
Robert Ramirez
Man Stephens a ard5
Quincy While ,���
MonigYr�lema7�` 1bIPA, MCRP
Vacann•
Executive Director
Vacancy North & East Lubbock CDC
Vacancy
Advisory
Members
Greg Jones
David Langsion
Mario Ybarra
QuickBooks
Accounting
Codes
4000
4001
4002
4003
4004
4005
4006
4007
4008
4009
4100
4101
FY 2015-16 Approved NELCDC Budget
Chapter 380 Eco. Development Grant Management Agreement from City of Lubbock
Community Champion Awards Banquet
e-Newsletter Advertisements
Board & Advisory Member Donations
King's Dominion Lot Sales
Reimbursed Income - HOME Construction Funds ($130,000 and $93,786)
BBVA Compass Bank Housing Counseling Grant
Reimbursed Income - CDBG Other Funds (Infrastructure Development)
Reimbursed Income - CDBG Other Funds (Operations & Repair of Foreclosed Property)
Interest Income
Scholarships and Refunds
363,547
30,000
500
36,000
223,786
7,500
108,507
65,710
200
TOTAL PROJECTED INCOME
$ 835,750
BUDGET
5000
A. Administration (Governance & Management)
$ 7,050
5001
1.
Board Expenses: Meetings, Trainings, and Administrative
$ 2,000
5002
2.
Management Business Expenses
500
5003
3.
(D&O) Directors and Officers Liability Insurance
4,250
5004
4.
Admin. Services (SOS carts & filing fees, charitable permit fee, etc.)
300
TOTAL
$ 7,050
5010
B. Personnel (Salaries, Payroll Taxes, Car Allowance)
$ 164,752
Will
1.
Executive Director
$ 80,752
5012
2.
Program Manager
45,000
5013
3.
AdminlBookkeepedIntem
25,000
5014
4.
Payroll Taxes
12,500
5015
5.
Car allowance (for Program Mgr. and Admin Asst. @ $0.575Imile)
1,500
5016
6.
Program Manager/Counselor Salary
TOTAL
$ 164,752
QuickBooks
Accounting
Codes
5020
5021
5022
5023
5024
5025
FY 2015-16 Approved NELCDC Budget
C. Health Benefits ($5501monthtemployee - $5751month for ED) $ 22,200
1. Executive Director $ 6,900
2. Program Manager 6,600
3. Administrative Assistant 6,600
4. Ameritus DentalMsion-group plan admin fee 1,800
5. Dearborn Life Insurance 300
TOTAL $ 22,200
5030
D. Professional Development & Training
$ 15,500
5031
1.
Neighbor Works Training (HUD -certification for 2 employees)
$
7,500
5032
2.
2015 Neighborhoods, USA Annual National Conference
2,000
5033
3.
TACDC Training (for Executive Director)
1,500
5034
4.
Other professional development/training (unplanned travel or events)
4,500
TOTAL $
15,500
5040
E. Memberships & Subscriptions
$ 3,320
5041
1.
TA -CDC ($250 annual fee)
$
250
5042
2.
Lubbock Chamber of Commerce (LCC) & Young Professionals Membership
325
5043
3.
Neighborhoods, USA ($200 annual fee)
200
5044
4.
Sam's Club membership ($45 annual fee)
45
5045
5.
Miscellaneous (mid -budget year requests)
450
5046
6.
Avalanche Journal (AJ) Subscription48 wks @ $226.20
250
5047
7.
Administrative Assistant professional membership
400
5048
8.
Housing Counselor/Program Manager professional membership (s)
800
5049
9.
Volunteer Center of Lubbock
100
5050
10.
East Lubbock Community Alliance
500
TOTAL $
3,320
Quickgooks
Accounting
Codes
5050
5051
5052
5053
5054
FY 2015-16 Approved NELCDC Budget
2. Accounting Services @$5001month 6,000
3. Auditing Services $7,5001year 7,500
4. Bank fees (check purchases & fees) 800
TOTAL $ 32,800
5060
G. Contractual Services
$ 5,475
5061
1. Marlin Services (Xerox machine leasing)
$ 3,300
5062
2. Benchmark Maintenance Agreement (for Xerox machine)
1,500
5063
3. Website Developer Services (www.nelcdc.org)
675
TOTAL $ 5,475
5070
H. Office Operational Expenses
$ 11,500
5071
1. Supplies
5072
2. Postage (USPS bulk -stamp purchase @ $49.99/100-stamp roll)
500
5073
3. Printing
200
5074
4. Phone Service and Maintenance
4,500
5075
5. Network Services (supplies and installation)
5,000
5076
6. Computer Supplies and Servicing
2,500
TOTAL $ 16,500
5140 I. Loan Pavments
5141
1.
Loan Payments (to Western Bank)
40,000
TOTAL $ 40,000
5150
J. Community Champion Awards (CCA) Banquet (FUNDRAISER)
5151
1.
Banquet facility
$ 1,000
5152
2.
Postage, Printing & Marketing
500
5153
3.
Food
6,750
5154
4.
Tenant User Liability Insurance (typically required for civic center use)
250
TOTAL $ 8,500
QuickBooks
Accounting
Codes
5160
5165
FY 2015-16 Approved NELCDC Budget
K. Donations -
5. Mid -budget year (unanticipated request) 1,500
TOTAL $ 1,500
5170 L. Micro -Lending Program
5171 1. Micro -Loan Requests ($10,000 max) 5,000
TOTAL $ 5,000
NOTE., The expense line items in blue will not be paid with Section 380 city grant funds.
TOTAL REQUESTED ADMINISTRATION BUDGET $ 262,597
5080
M. Housing/Credit Counseling (Group Education & One -on -One Counseling)
$ 13,500
5081
1. Staff - moved to administration
$
-
5082
2. Supplies & postage
2,500
5083
3. Counselor Max (software) $595 annual fee +$17.501credit report+admin fees
4,500
5084
4. Community financial literacy training classes (space, food, supplies)
1,500
5085
5. Training Services
5,000
5086
6. Payroll Taxes - moved to administration
-
TOTAL $
13,500
5200
N. King's Dominion
$ 19,500
5201
1. HOME Fund Expenses (new home construction)
$
223,786
5202
2. Maintenance
7,500
5203
2. Down Payment & Closing Cost Assistance
12,000
TOTAL $
243,286
6000 0. Personnel (Salaries, Pavroll Taxes) - Moved to Admin
QuickBooks
Accounting
Codes
6010
6011
6012
FY 2015-16 Approved NELCDC Budget
2. Housing Rehabilitation Materials 28,000
TOTAL 48,000
6020
Q. Adopt -a -Spot Community Meeting Materials
$
9,000
6021
1. Meeting facility
$ 4,500
6022
2. Food, supplies, marketing materials, press releases, signage, etc.
4,500
TOTAL
$ 9,000
6030
R. Housing/Credit Counseling - Moved to Admin
6040
S. Volunteer Administration
$
2,500
6041
1. Training (Volunteer Center of Lubbock)
$ 500
6042
2. Marketing & Outreach Supplies
500
6043
3. Ambassador T-shirts
1,500
TOTAL
$ 2,500
6050
T. Referral Partner's Program
$
1,200
6051
1. Meeting materials, supplies, postage, marketing efforts
1,200
TOTAL
$ 1,200
6060
U. Mahon Villas (Villa del Norte) Redevelopment Initiative - Tax Credit Project
$
7,250
6061
1. Community meetings, application administration
$ 750
6062
2. Legal Services (local real estate transactions)
6,500
TOTAL
$ 7,250
FY 2015-2016 NELCDC Performance Measures
The North & East Lubbock CDC is primarily a service organization. We function as a developer
too, but we are primarily a service -oriented non-profit. That means, when an organization is
designed to provide a critical service to a designated people group or geographical area, the
measure of impact may be immediate or occur over a period of time as a result of the services
provided to its clientele. The primary service the NELCDC provides is housing counseling and
financial literacy education in a format approved and certified by the U.S. Department of Housing
and Urban Development (HUD). This critical service allows the NELCDC to educate clients on
the process of becoming first-time homebuyers. That educational component is comprised of
budgeting, general money management, building net -worth, credit counseling, and pre and post -
purchase counseling to name a few. In the coming year, the NELCDC plans to add
foreclosure/delinquency/loss mitigation, rental assistance, and fair housing counseling to its
educational curriculum. These essential core services provided by the NELCDC are provided by
staff members. The staff members, comprised of the Executive Director, a Program Manager, and
support staff, are necessary to ensure the various components of the services provided can and will
come together. These educational efforts are focused upon to create first-time homebuyers.
With staff providing essential educational services to Lubbock and the greater west Texas region,
the following programs have been developed to demonstrate the outputs or outcomes of the
services being provided.
Administration, which consists of staff and operations used to implement Programs, which provide
performance outcomes, are the basis of the proposed 2015-16 fiscal year budget. This budget was
approved by the North & East Lubbock CDC Board of Directors on January 27, with approved
line item amendments on March 23, 2016.
A summary and performance measure output matrix for the 2015-16 fiscal year are provided
below.
Administration Performance Measures — Budget: $262,597
Resource Development (Grants)
NELCDC Management will focus on writing grants as a result of the MPA
fundraising development plan provided by the Texas Tech University MPA
program last fall. This plan also recommended a gift acceptance policy, which
is currently being developed (3/2016). This process will result in the
submission of 2-3 grants. Additionally, the NELCDC has identified a small
but possibly consistent bank grant for its housing counseling program. A
$7,500 grant was provided in Nov. 2015. If performance is met, this might
become a consistent annual grant for the NELCDC. The NELCDC will be
submitting a grant application to United Way. The NELCDC also plans to
submit grants to federal agencies that align with its mission, vision, goals and
objectives. The performance measure is to submit and hopefully receive six
(6) grants, in addition to a Chapter 380 Grant Management Agreement from
the City of Lubbock. The second resource development performance measure
is the development of a gift acceptance policy.
6 Grants
1 Gift Acceptance
Policy
Board Development
As shown in the exemplary performance of the FY 14-15 audit, NELCDC
management and board members worked to ensure the financial management
policies and procedures were closely followed. These improved practices
demonstrated the efficient implementation of protocol and processes. The goal
is to continue the use of the Executive and Finance Committees to have a
measure of involvement in administrative processes. The Ad Hoc Committees
for Development and Human Resources will be more heavily focused on this
fiscal year. The NELCDC Board and Executive Director with its legal counsel
will review internal practices as well as the bylaws. These items are essential
to help the board understand the administrative practices of personnel, good
governance practices for the Board of Directors, and most importantly is
insurance coverage as well as various procedural shortcoming, which could
expose the organization various liabilities. This is critical work to establish a
renewed professional culture, which will help the organization move towards
success in the future.
-outline meetings,
activities, policy
changes or
amendments,
corrective action taken
to safeguard the
NELCDC
Professional Development
Because the NELCDC is a HUD -certified housing counseling agency, a certain I —Conference (local,
amount of training is required. All new staff members must be certified to regional, or national)
provide housing counseling services to NELCDC clientele; this is mandatory. for ED.
The budget also calls for training of support staff; training will help improve 11— or more Training
the skills of support staff for various administrative functions pertinent to the Events for ED. (local,
functions provided to the NELCDC. regional, or national)
for ED.
Lastly, since the NELCDC is a Texas CDC, the organization's affiliation and
participation in TACDC is very important. If possible, the Executive Director
will attend the annual TACDC conference.
As a new measure of accountability, any professional development or training
paid for by the NELCDC (for board members or staff), will require a written
report to be provided, on a form developed and provided by management. The
report format will be standardized. This will be maintained and kept as a way
to: 1) Provide documented information for business -related travel; 2)
demonstrate the knowledge being obtained 3) document how the information
may be used to facilitate better performance of NELCDC members, which will
hopefully produce greater outputs for the organization.
Fundraising
The NELCDC will host an annual fundraiser. Currently the annual fundraiser
is the Community Champion Awards Luncheon. The FY 15-16 event will be
held on May 3, 2016. These funds are typically set aside as reserves or to pay
expenses which are not paid by restricted funding.
1— or more Training
Events for Program
Manager. (local,
regional, or national)
for ED.
1— or more Training
Events for support
staff. (local, regional,
or national) for ED.
1 Event
-to raise discretionary
funds for various uses
by the organization.
Network Services, Programming, and Integration
In FY 14-15, the NELCDC started networking its computers so staff could
share information and try to streamline and standardize its way of functioning
for the organization. The next step in the process of networking services,
programming, and integration is to establish an independent secure network for
the NELCDC; network the NELCDC web page, with its email marketing
client; create a high -performing online client management profile that can be
used for volunteer registration, housing counseling registration, event
registration, and much more. Many of these efforts were started last year. The
implementation of constant contact will further this effort. The NELCDC is
also working on a new online training module, which if approved by HUD, will
be used to expand the NELCDC's service reach and capacity, and will be used
as a small but consistent revenue generating program for the NELCDC.
1— Constant Contact
Implementation
1 — Online Training
Module
Regis Park Development Project (Administrative/Management
Activity) Ongoing / Consulting
The NELCDC has partnered with Texas Investment Partners, LLC via and Facilitating of
Dominion Real Estate to work to facilitate the development of a mixed -use the Development
development at MLK and Regis. In addition to proposing the development of process
an east Lubbock TIF District, the NELCDC also proposed the establishment of
a public -private partnership between NELCDC-LEDA-Texas Investment 1-Grant
Partners for the installation of a sewer line in the public right-of-way. This
proposal will extend a 12-inch sewer line from LEDA's business park to the
southwest corner of the proposed develop site at MLK and Regis. To
contribute to the partnership, NELCDC is writing a grant for a portion of the
sewer line installation in public right-of-way.
Program Performance Measures — Budget - $100,950
King's Dominion - $19,500 ($7,500 + $12,000 — see DPCCA below)
NELCDC management and staff will focus on the construction and sale of
homes in King's Dominion Phase II. This effort will be approached in one of
two ways: 1) by the use of the proceeds from the sale of the newly constructed
home at 1822 E. Harvard St. or by the use of approximately $129,000 of HOME
(HUD) funds the NELCDC was awarded in FY-2014-2015. These funds must
be spent by Sept. 2017. 2) through private development. The $12,000 down
payment and closing cost assistance allocated specifically for King's Dominion
will be used as an incentive for qualified first-time homebuyers who are seeking
to purchase a lot and develop a new single-family home in northeast Lubbock.
The home at 1822 E. Harvard St. is under contract and is scheduled to close on
March 29, 2016.
3—New
Construction
3 —Land or Home
Sales
Down Payment & Closing Cost Assistance (DPCCA) Funds for
First-time Homebuyers - $12,000
Management and staff will use the $12,000 requested for down payment and
closing cost assistance allocated specifically for King's Dominion will be used
as an incentive for qualified first-time homebuyers who are seeking to purchase
a lot and develop a new single-family home in northeast Lubbock. The home at
1822 E. Harvard St. is under contract and is scheduled to close on March 29,
2016.
Housing Counseling - $13,500
The NELCDC is planning to serve 50 one-on-one clients in the FY 15-16 fiscal
year; which is 10 clients per quarter. HUD requires all housing counseling
agencies to serve at least 30 clients per year. The number is reduced from 46
clients served to 40 due to a change in personnel, which will show a temporary
lull in performance numbers. An account also has to be given to the effort to
train and certify new staff.
NELCDC has been serving many remote clients in the west Texas region who
are either in rural areas or other west Texas cities (Odessa, Midland, San Angelo,
Amarillo, and Abilene). Clients are often referred to the NELCDC, the only
west Texas agency many clients can reach. Since HUD mandates the NELCDC
serve clients in our region in accordance to the approved Housing Counseling
Work Plan, which mandates we provide phone and/or Skype as an option for
clients who are not able to come into the office. Currently, the primary
curriculum for these approx.. 3-hr course is the Building Wealth Booklet.
The NELCDC provides a housing counseling/financial literacy workshop on a
monthly basis. Some classes are taught at the Bridge of Lubbock and others are
taught at the Lubbock Housing Authority. Online registration is available.
Certificates provided may be used by clients to secure first-time homebuyer
grants from various lending sources who recognize the NELCDC as a HUD —
certified housing counseling agency.
The NELCDC is working to develop an online training module. $5,000 has
been budgeted for this effort. The curriculum will be developed in partnership
with the NELCDC's referral partners. A focus group of sorts will be used to
develop premier training modules. If approved by HUD, a fee schedule will be
developed and the modules will be available for anyone to use and access as
needed. In addition to the online module being used by clients locally and
regionally, this new system will increase the NELCDC's impact and also
provide a potential revenue generating stream for the housing counseling
program-
3 — Clients to Receive
a $3000+/- Grant
40 — One -on -One
Clients Served
25 — Remote Clients
Served
1— Revised HUD
Housing Counseling
Work Plan
75 — Households
Served (Workshops)
1— Online Training
Module (HUD
approved)
Adopt -a -Spot Program - $57,000 ($48,000 + $9,000)
The NELCDC is working to finalize the program and the way in which the 1— Finalized Plan
process for adopt -a -spot works between the NELCDC-LUNA-Habitat
partnership. The program may be rebranded; if so, this will be revealed in the
finalized plan. 1—New Project
The NELCDC and its partners will identify a new neighborhood to kick-off
another housing rehabilitation project. The team will work to rehabilitate 8-10 8-10 Households
households.
Volunteer Administration Program - $29500
The NELCDC kicked -off its volunteer administration program in August 2015.
The program, as presented during the July 23, 2015 Lubbock City Council work
session, was developed to allow the NELCDC to increase its capacity to do more
with less. So far, the NELCDC has gained some great uses through volunteer
administration in the following ways: staffing booths for outreach and
promotion at location in Lubbock to help promote the financial literacy
workshops; a volunteer coordinator has served to help develop ways to better
utilize volunteers; and volunteers have been cultivated for the adopt -a -spot
initiative. Each staff member will be charged with the task of trying to obtain
and sustain committed community ambassadors (volunteers) who will work
alongside the NELCDC to help build our capacity and increase the
organization's impact. The goal is to add eight (8) new ambassadors to the
NELCDC volunteer database.
Referral Partner's Program - $1,200
The NELCDC developed the Referral Partner's Program in September 2015.
The program was developed to create very specific methodology for working
with lending (and real estate) professionals. As a HUD certified housing
counseling agency, the NELCDC has concise federally mandated practices,
which are often a reinforcement and are consistent with the measures of
homebuyer qualifying practices lenders must follow. Since many NELCDC
clients are primed for FHA lending practices, the NELCDC felt it was prudent
to align its practices with those of lenders, thus the referral partner's program.
The goal is to obtain lending partners who will execute an agreement with the
NELCDC (really a friendship contract) stating they will work in concert with us
to serve the best interest of our clients. This is also a great way to identify
lenders who can and often times have attended the NELCDC's financial literacy
workshop to teach "Unit 4 — Obtaining a Mortgage". This program get's lenders
involved in the educational side or our process as well as allowing them to
cultivate relationships with the NELCDC's housing counseling clients who are
often working to become first-time homebuyers. The Referral Partner's
Program also allows lenders to experience the NELCDC's educational process
and curriculum and become familiar with the NELCDC's client management
system (Counselor Max). In this fiscal year, the NELCDC will strive to obtain
5 new referral partners, develop an online clearinghouse (of resources) for
partners, network with partners to develop the online training module, revise and
update the referral partner's agreement, and develop a CRA proposal packet,
which can be used to leverage more participation from lending institutions for
the NELCDC's financial literacy educational efforts.
Impacted
8—New
Ambassadors
5 — New Confirmed
Referral Partners
1— Clearinghouse
for partners
1— Revised
Agreement
1— Development of
CRA Proposal
Packet
Mahon Villas (formerly Villa del Norte) Redevelopment
Ongoing
Initiative - $7,250
The NELCDC is working to acquire 1913 Baylor St. (Villa del Norte) property
Grants / Acquisition
and redevelop the site into affordable multi -family housing followed by single
family housing. The NELCDC and it's partners are seeking state and federal
grants to complete this project.
East Lubbock Community Alliance - $500
Ongoing / Activities
The NELCDC participated in the community forums last year and sporadically
and Support
attended monthly alliance meetings. Nonetheless, the NELCDC remains
committed to the mission and vision of the Alliance. The NELCDC is
committed to support the various activities and initiatives of the Alliance in the
best and most feasible way possible.
Monique Coleman, MPA, MCRP
Executive Director
North & East Lubbock CDC
Mc nelcdc(aoutlook.com
Phone: (806) 747-1505
Fax:(806) 747-5934
www.nelcdc.ore
North E,
Lubbock
Community
(Devel'opment
Corporation