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HomeMy WebLinkAboutResolution - 4408 - Grant Application - HUD - HOME Investment Parnership Program 1994, CHAS - 02/24/1994Resolution No. 4408 February 24, 1994 Item 36 RESOLUTION 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 for and on behalf of the City of Lubbock an application for the HOME Investment Partnership Program for the year 1994 and related documents. Said Application is attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the Council. Passed by the City Council this ATTEST: A—I I (:�Iw, ettyohnson, Vity Secretary 24th day of February 1994. APPROVED AS TO CONTENT: Doug Goo , Interim Director Housing &C6mmunity Development APPROVED AS TO FORM: Linda L. Chamales, Assistant City Attorney LLC: dp\G:\ccdocs\Home.Res February 15, 1994 City of Lubbock HOME Investment Partnership Program FY 1994 Program Description Program Overview The HOME Investment Partnership Program was created with the passage of the National Affordable Housing Act in 1990. HOME is a federally funded, large scale grant program for housing. Funds are allocated by a formula to participating jurisdictions who receive funds to operate the program. HOME is designed as a partnership between the Federal and local governments, and those in the for profit and non profit sector who build, own, manage, finance, and support low income housing initiatives. The major program activities include; a) First Time Homebuyers Program b) Homeowner property rehabilitation c) Rental housing production and rehabilitation d) Tenant -based rental assistance. e) New construction There are three major operating considerations; a) HOME funds must be matched by non federal funds. b) No HOME funds can be used for property owners or tenants with gross annual incomes greater than 80% of the median income; c) Community Housing Development Organizations receive a 15% set aside for eligible activities. The City of Lubbock received the designation as a participating jurisdiction in FY 1992. The City of Lubbock's FY 1994 formula allocation is $938,000. The intent of the City of Lubbock is to expand the supply of decent, safe, sanitary and affordable housing. The Comprehensive Housing Affordability Strategy (CHAS) Annual Plan which was approved by the Department of Housing and Urban Development (HUD) on February 8, 1994 identified the priority housing needs and target populations. During the CHAS development process, HOME funding was identified as a potential funding source for the implementation of housing programs and initiatives. The CHAS included strategies for meeting the needs of the general housing population as well as for special needs populations. The City of Lubbock has developed four strategies in the current CHAS. These are to: Provide very -low through moderate -income households an opportunity and choice for decent, safe, and affordable housing throughout the city. FY 1994 HOME Program Description Page 2 Currently, due to their incomes, units affordable to these households are usually substandard and in need of major repairs. Fair housing and equal opportunity issues can be ameliorated by providing a wider range of choices of affordable housing units for individuals throughout the city. Provide resources for the preservation of the existing housing stock which would be made available to very -low through moderate income homebuyers. The viability of existing neighborhoods is determined by the condition and preservation of the existing housing stock, which promotes the maximum optimal utilization of public infrastructure and existing support services. Therefore, preservation of existing housing stock is the most cost-effective means of providing housing and makes access to homeownership opportunities for low-income households possible. Provide decent, safe, and adequate shelter to homeless persons, including preventive and supportive services for persons threatened with homelessness. There are a very limited number of temporary shelters in the City of Lubbock, yet homeless persons are increasing year after year. Without adequate, long-term, temporary shelters, homeless individuals and families are unable to stabilize their lives. On the other hand, without measures to prevent homelessness and assist the homeless in becoming self- sufficient, governments at all levels will continue to have the financial burden of caring for increased numbers of homeless persons. Provide service -enriched transitional and supportive housing for persons with special needs other than homelessness. Without housing assistance and supportive programs, individuals with special needs have tremendous obstacles to regain their productive lives. Quality specialized care should also be provided for special needs groups as they are often excluded from other existing services due to their special demands. Allocation of HOME Resources Based upon these identified needs, the City of Lubbock proposes the following activities be implemented with HOME funding: HOME Match Owner Occupied Rehabilitation $703,500 $175,875 CHDO Set Aside 140,700 Program Administration 93.800 TOTAL $938,000 $175,875 FY 1994 HOME Program Description Page 3 Owner -Occupied Rehabilitation Program The owner occupied rehabilitation program will be designed to assist low income homeowners who occupy existing housing stock. These programs will parallel and coordinate with existing rehabilitation efforts funded through the Community Development Block Grant Program. The program will be available to low income homeowners who own the property. The City will accept fee simple title, a 99 -year leasehold interest, land sales contracts as evidence of ownership or covenants running with the land. The property owner will be required to occupy the property as a principal residence. The value of the property will not exceed the 203(b) mortgage limits for the area and the type of dwelling. The HOME contribution will not exceed the 221 (d) (3) per unit limits. The owner occupied rehabilitation component may include both a moderate rehabilitation program and a substantial rehabilitation program. At a minimum the rehabilitation will meet the Section 8 Housing Quality Standards with Property Rehabilitation Standards, and local building codes being the desired standard. These programs will utilize low interest bearing direct loans and deferred payment loans as the form of financial assistance. The City is currently implementing a below market rate loan program which will serve as the model for these HOME funded rehab programs. These loans will be serviced in-house through a newly implemented loan portfolio program. The provisions of the program will be included in the loan documents and recordable legal documents. Community Housing Development Organizations (CHDO's As a program requirement, 15% of the City's HOME allocation must be set aside to be utilized by a CHDO. For the City of Lubbock this requirement represents $140,700. The City of Lubbock has a limited availability of non-profit organizations which develop, or own housing. The CHAS described the need to develop and expand the capacity of non -profits in this area. The initial focus of the City will be to develop the capacity of the non -profits. The City has a contract under the HOPE III program with a local non-profit to provide housing counseling and act as a non profit participant. This will provide an opportunity to build a stronger relationship to insure future success for development activity. Additionally, the City is working with the Enterprise Foundation and Development Training Institute to provide technical assistance to designated CHDOs. The CHDO must be organized under state law, having a 501(c) status, and include the provision of decent housing that is affordable to low and moderate income persons among its purposes. Additionally, the CHDO must have the required governing board composition in order to meet the HOME requirements. The CHDO will have a demonstrated capacity to carry out HOME assisted projects and meet the appropriate financial standards. The CHDO's selected to participate in the program must have at least one year of experience serving the community. The City will begin immediately to identify and strengthen the CHDO's to sign agreements and initiate projects within the required 24 months. FY 1994 HOME Program Description Page 4 Program Match Reauirement The HOME program requires a match of local resources. A participating jurisdiction must provide a 25% match for tenant based rental assistance, moderate and substantial rehabilitation and a 30% match for new construction. The City's match requirement will be approximately $175,875. The match is calculated on the actual projects to be done and is not required on administrative costs or capacity building of CHDO's. The City of Lubbock proposes to utilize the appraised value up to the amount needed of the University Pines Duplexes, acquired Wednesday, January 19, 1994 1993, to meet the match requirement. The property is located at the 9400 Block of Boston Avenue and consists of 8 duplexes, 16 units. A private management company is to be utilized and vacancies are to be filled with income qualified elderly residents. The current appraised value of the University Pines properties is $597,500, less the match required for the 1993 HOME funds of $87,625 and the required match for this years HOME Program of $175,875, leaving the remaining match balance of $334,000, which is available for future years. Minoritv Business Outreach The City of Lubbock is committed to the utilization and development of minority enterprises within the community with special emphasis on minority and woman -owned businesses. The City of Lubbock has established an ongoing outreach effort through the Minority Purchasing Program. This program is outlined in Appendix A. The Minority Purchasing Program was initiated following a City Council directive issued in March, 1984. The outreach efforts currently followed by the City of Lubbock include; 1. Continual update of bidders listing to include minority and woman -owned businesses. 2. Workshops to provide information on bidding and contracting procedures. 3. The availability of information packets to interested contractors and vendors. 4. Personal visits to MBC and WBC business to answer specific questions and concerns. Additionally, the City of Lubbock Community Development Staff has an active program to promote and develop MBC and WBC enterprises. Over 50% of the contractors participating in the Community Development activities are minority owned. Affirmative Marketing Commitment The City of Lubbock is committed to fair housing and equal opportunity efforts. Specifically, the activities funded through the HOME program will promote fair housing choice through the following outreach efforts. FY 1994 HOME Program Description Page 5 1. Advertising of available units will be included in the newspaper of general circulation as well as newspapers which serve the minority communities. 2. All printed information will include the Equal Housing Opportunity logo. 3. The City will utilize outreach efforts to encourage participation of minority, low- income and other populations which are difficult to reach with traditional advertising techniques. 4. The Community Development Department will sponsor at least one workshop annually to provide information on the application process, review any eligibility criteria, and other general program information. These proposed efforts have been utilized undercurrent programs. Based upon these efforts the Urban Homesteading program and HOPE 3 program attracted a representative cross section of the City of Lubbock's low income population. Under the Urban Homestead program 34 houses were provided and the ethnic breakdown included 19, or 56% Hispanic, 5, or 15% African American, 9 or 26% Anglo, and 1, or 3% Asian American. Under the first year of HOPE 3 program, 33 houses were provided and the ethnic breakdown included 13 or 39% Hispanic, 10 or 30.5% African American and 10 or 30.5% Anglo. CERTIFICATIONS HOME PROGRAM DESCRIPTION In accordance with the HOME Investment Partnership Act and with 24 CFR 92-150 of the HOME Investment Partnership Program Rule, the participating jurisdiction certifies that: (a) Before committing any funds to a project, it will evaluate the project in accordance with the guidelines that it adopts for this purpose and will not invest any more HOME funds in combination with other Federal assistance than is necessary to provide affordable housing; (b) If the participating jurisdiction is not on the list published under 24 CFR 92.51 and intends to do new construction to facilitate a neighborhood revitalization program, For each neighborhood revitalization program, 1. Rehabilitation is not the most cost-effective way to meet the participating jurisdictions needed to expand the supply of affordable housing within the neighborhood and the participating jurisdictions housing needs, within the neighborhood, cannot be met through rehabilitation of the available housing stock; and 2. The program of new construction is needed to facilitate a neighborhood revitalization program that emphasizes rehabilitation or substandard housing for rental or homeownership opportunities by low-income and moderate - income families in an area designated by the jurisdiction; 3. The housing is to be located in a low-income neighborhood; 4. The housing is to be developed, owned, or sponsored by a community housing development organization or a public agency; and 5. The number of housing units to be constructed with HOME funds does not exceed 20 percent of the total number of housing units in the neighborhood revitalization program that are assisted with HOME funds; unless (a) The housing is to be located in a severely distressed area within the neighborhood with large tracts of vacant land and abandoned buildings; or (b) The housing is to be located in an area within the neighborhood with an inadequate supply of existing housing that can economically be rehabilitated to meet identified housing needs; or (c) The new construction is required to accomplish the neighborhood revitalization program. (c) If the participating jurisdiction is not on the list published under 24 CFR 92.51 and intends to do new construction on the basis of special needs; For each project, 1. Rehabilitation is not the most cost-effective way to expand the supply of affordable housing for the special need and the special need cannot be met through rehabilitation of the available housing stock; 2. Based on objective data in its annual approved housing strategy, a high priority need for such housing exists in the jurisdiction; and there is not a supply of vacant, habitable, public housing units in excess of normal vacancies resulting from turnovers that could meet the specified need. 3. The HOME funds are used for new construction of one or more of the following: a. Housing for families of five or more persons; b. Housing for persons with disabilities; C. Single room occupancy housing, and d. Housing that is necessary to further the desegregation or racial deconcentration of housing within the jurisdiction pursuant to a court -approved settlement agreement, compliance agreement, or voluntary plan approved by HUD if tenant -based assistance is not sufficient to meet the specified need within a reasonable time. (d) If the participating jurisdiction intends to provide tenant -based rental assistance; The use of HOME funds for tenant -based rental assistance is an essential element of the participating jurisdiction's annual approved housing strategy for expanding the supply, affordability, and availability of decent, safe, sanitary, and affordable housing. (e) The submission of the program description is authorized under State and local law (as applicable), and that it possesses the legal authority to carry out the HOME Investment Partnership (HOME) Program, in accordance with the HOME regulations; (f) It will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, implementing regulations at 49 CFR part 24 and the requirements of 24 CFR 92.353; (g) It and State recipients, if applicable, will use HOME funds pursuant to its Comprehensive Housing Affordability Strategy (CHAS) approved by HUD and all requirements of 24 CFR Part 92; (h) It will continue to provide a drug-free workplace by: Publishing a statement notifying employee that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employee for violation of such prohibition; 2. Establishing an ongoing drug-free awareness program to inform employee(s) about - (a) The dangers of drug abuse in the workplace; (b) The participating jurisdiction's policy of maintaining a drug-free workplace; (c) Any available drug counseling, rehabilitation, and employee assistance programs; and (d) The penalties that may be imposed upon an employee for drug abuse violations occurring in the workplace; 3. Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph (1); 4. Notifying the employee in the statement required by paragraph (1) that, as a condition of employment under the grant, the employee will — (a) Abide by the terms of the statement; and (b) Notify the employee in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction; 5. Notifying the agency in writing, within ten calendar days after receiving notice under paragraph 4(b) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to every grant officer or other designee on whose grant activity the convicted employee was working, unless the Federal agency has designated a central point for the receipt of such notices. Notice shall include the identification number(s) of each affected grant; 6. Taking one of the following actions, within 30 calendar days of receiving notice under paragraph 4(b), with respect to any employee who is so convicted — (a) Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or (b) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; 7. Making a good faith effort to continue to maintain a drug-free workplace through implementation of paragraphs 1, 2, 3, 4, 5, and 6. 8. The grantee may insert in the space provided below the site(s) for the performance of the work done in connection with the specific grant: Place of Performance (Street address, city, county, state, zip code) City of Lubbock 1625 13th Street Lubbock, Texas 79457 (i) To the best of its knowledge and belief: 1. No federal appropriated funds have been paid or will be paid, by or on behalf to it, to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress in connection with the awarding of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, 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 Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form -LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and 3. It will require that the language of paragraph (h) 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. CERTIFICATION OF CONSISTENCY WITH COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY I, David R. Langston, Mayor of the City of Lubbock, Texas, authorized to act on behalf of the City of Lubbock, do certify that the activities proposed by the City of Lubbock are consistent with the Comprehensive Housing Affordability Strategy approved by the Department of Housing and Urban Development on February 8, 1994. APPROVED AS TO CONTENT: Doug Goodl `an Community evelopment Interim Administrator February 24, 1994 Date APPROVED AS TO FORM: Linda Chamales Assistant City Attorney A1JFLIt;A I IUn rUM FEDERAL ASSISUNCE A,gplc�alOn Ilnaoo(iteBlDtl Q Constructean Q Conalrwm O aontenstrveteoR O Nontonmucaon S. AMLWANT 4¢Or1MAT10N Lepel Marne: & GATT WGUITTTo & GATT RECEIYEO BY STATT Stan Awkstcn IdenWw /. OATT RECCIVEO BY FEDERAL AOCNCY I FedWel tder*rW City of Lubbock Address (17" uty, county. state, and Zoo cook City of Lubbock P.O. Box 2000 Lubbock, TX 79457 IL EMPLOYER IDENTIFICATION NUMBER IEINk 7 5 6 0 0 01 51 9 0 tL TYPE OF A►PLICATIOtt V NOW O C tuvat on Q P4"m r Re -s4 % enter 20WOpna1e Iatteds) In bo+r(es1: ❑ 0 A. lnaease Arab B Oectease Award C. Inuease Dtwation E!. Decrease Owauon Otter (soeubk 1a ISTSIS AMCaw NUMSE�'% OOYESTtc TITLE- I& ITLE I& AREAS AFFECTED BY PROJECT (Craei. COIMee1a. •tate•. ek.r Lubbock, Texas ONO Orgammucirw Unto Community Development Department Name and Ie1•Wwrr number o1 to Mersa+ to be oantacted on Rattan •'•" Ctrs S WK.stwn (9" aro" code) Doug Goodman Interim Community Development Administrator •• �..s K AF►UGAM: (MNN 800000"•!• gRer M 009) u A. 31st• N W4eoendera Schad O►St B Courtly L' State Controlled kWduUpn e7 NWW Leseew+p G Mweco l J. AMI• Llnnendy D. Tourloo IC b -4m Tnbt E Interstate • L k4v4usl F Interrrwnic a) M Aad orGatustwn G Soeeat astna N. Otter (SDeeery) L NAME OF FEDERAL AGENCY: U.S. Department of Housing & Urban Development 2 11. OESCRIPnWt TITLE OF APPLICANTS PRWECT. HOME Entitlement Program !a. WW0P SEO PROJECT 11. CONGRESSIONAL DISTRICTS OF: Start Oat. Ending C a Appeunt : 0 111fa1ea 04/94 04/95 19th ?9th IS. ESTIMATED FUNOIIrQ 14 IS APPLICATION SUBJECT TO REVIEW BY STATE EXECUTIVE ORDER 11312 MWESV a. YES THIS PREAPPLICATK WAPPLICATION WAS UADE AVAILABLE TO rME a Federal f 938,000 .00 STATE EXECUTIVE ORDER 12772 PROCESS FOR REVIEW ON E Appicylt = 175,875 '00 GATE C State = .00 0 NO ® PROGRAM IS NOT COVERED BY E 0. 12372 La" $ .00 ❑ OR PROGRAM HAS NOT BEEN SELECTED BY STATE FOR REV*W e Other : 00 I Prows- kx0"'eF81,113,875 .00 17. IS THE APPLICANT OELINOUENT ON ANY FEDERAL DEBT? Y TOTAL 00 ❑ Yes M was.' attwA an 02wanatwn No 1L 90 THE BEST OF MY KNOWLEDGE AND BELIEF. ALL DATA IN THIS APPLICATION ►REAPPLICATION ME TRUE AND CORRECT. TME DOCUMENT KAS BEEN DULY TME GOVERNING BODY OF THE APPLICANT AND THE APPLICANT WILL COMPLY WITH TME ATTACHED ASSURANCES IF THE ASSISTANCE 4 AWAROEB a_ TYped Name nwrued Rt esentat O Tetle t Teleywne nu"wer Da an Ston Ma or 806-767-2009 IF I of ut tt • t • Date SVWd 02/24/94 APPiiW® AS M POI: (L� -. v-�/ interiimm Direct r ty Devi Assistant City Attorney