Loading...
HomeMy WebLinkAboutResolution - 2009-R0093 - Approve CDSB Reccomendation For Reallocation Of Unspent CDBG, HOME And ESG Funds - 03/05/2009Resolution No. 2009-R0093 March S, 2009 Item No. 5.4 RESOLUTION BE ITRESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Council of the City of Lubbock does hereby approve the recommendations of the City of Lubbock Community Development and Service Board (CDSB) for the reallocation of unspent funds from the Community Development Block Grant (CDBG), the HOME Investment Partnership Program (HOME), and the Emergency Shelter Grant (ESG). (In addition, the City Council does hereby approve the recommendation for the proposed use of HOPE 3 Program Income that will help advance affordable housing and will be used as part of HOME Match). Said recommendations are 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 5th day of March , 2009. f /+�✓ A4j6___ TOM MARTIN, MAYOR ATTEST: CQ'L�" ' Rebe a Garza, City Secretary APPROVED AS TO CONTENT: Bill Howerton, Jr. Community Development Director APPROVED AS TO FORM: gsfres-COL-CDSery Board —reallocation unspent funds 2/1212009 2009 Reallocation of Unspent Federal Funds Resolution N0. 2009—R0093 Source Agency/Organization Proiect/Activity Prosed Funding CDBG City of Lubbock, CD Emergency Repair $22,800 Total CDBG 22,800 City of Lubbock, CD Rehab/Recon 100,000 HOME West Texas Housing Foundation Interim Construction-CHDO 91,241 West Texas Housing Foundation CHDO-Operations 17,741 Total HOME 208,982 City of Lubbock, CD New Construction 200,000 HOME Match/HOPE 3 Total 200,000 Vandelia Church of Christ Homeless Prevention 2,735 ESG Total ESG 2,735 Total for All Sources $434,517 Detail Description of Proiect/Activit Emergency Repair City Council originally voted to allocate $192,024 to this project during the regular allocation process for FY 2008-2009. The vote was held on June 26, 2008. All of the funds allocated have been assigned to individual projects. The additional funds will be used to provide more low -to -moderate income households with housing repairs that are of an emergency nature. The addition of the $22,800 will bring the total amount of funding for the fiscal year to $214,824. The CDSB also considered allocating these funds to the East Lubbock Paving Project. With the limited funding available, the board felt that these funds would have more impact under the Emergency Repair Program. The board remains committed to the paving of streets in East Lubbock. Residential Rehab/Recon City Council originally voted to allocate $696,988 to this project during the regular allocation process for FY 2008-2009. The vote was held on June 26, 2008. The Housing Rehab/Reconstruction Program assists qualifying very low, low, and moderate -income homeowners in target areas. Inspectors will evaluate the home. If the home is in relatively good condition, the case will continue as a rehab project. Homes that cannot be rehabilitated will continue under the Reconstruction portion of the program. The home is then demolished and a new home is constructed on the same site. The addition of the $100,000 will bring the total amount of funding for the fiscal year to $796,988. Interim Construction Loan Progranm/CHDO Operations These funds were originally allocated to the West Texas Housing Foundation (WTHF) as a Community Housing Development Organization (CHDO) activity. The program allows builders that are constructing affordable single-family homes to acquire interim funding. It was placed on hold when a question arose on the length of time that the Affordability Period would remain applicable. HUD has given contradicting opinions as to whether the timeframe would be five (5) or fifteen (15) years. To eliminate the problem, CD staff suggested that the interim funding only go to contractors on the department's approved contractor list. These contractors will only access the funds for construction projects that utilize HOME or CDBG funding. CD staff is already monitoring the Affordability Period for these homes for the longer period of fifteen (15) years. This will effectively eliminate any problems pertaining to the home's Affordability Period. The program should also enhance our ability to attract new Women and Minority Owned businesses to participate in our housing programs. WTHF will also receive the CHDO Operations money that they were originally allocated to administer their program. The agency will receive $91,421 for the program itself and an additional $17,741 for operations. New Construction City Council originally voted to allocate $180,000 to this project during the regular allocation process for FY 2008-2009. The vote was held on June 26, 2008. The New Construction Program is designed to build quality affordable housing in the targeted corridor areas and/or in CD eligible areas by providing infill or newly constructed houses on vacant lots. Low-income families and individuals will have the opportunity to become first-time homeowners through this program. The funds that are to be allocated are Program income from the HOPE 3 Program. The City last participated in the HOPE 3 Program in 1945. HUD has determined that the funding utilized under this program can be counted as HOME Match that will allow the department to meet requirements set forth for HOME Entitlement Programs. The addition of the $200,000 will bring the total amount of funding for the fiscal year to $380,000. Homeless Prevention These funds were originally allocated to another non-profit organization. Unfortunately, the agency was not able to expend the entire amount approved for the program HUD has stated that the funds can be reallocated, but that they must be used for another Homeless Prevention activity. Vandelia Church of Christ offers such a program. This project will provide utility and rent assistance to individuals and families who have experienced a sudden reduction in income. To be eligible for this program, the recipient must have had an eviction or shut-off notice. Also, the CD department reserves the reasonable expectation that the recipient resume the payments as soon as possible.