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HomeMy WebLinkAboutOrdinance 18156-07-2008Ordinance No. 18156-07-2008 AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE GRANTS FUND BY UP TO $180,000 AND $15,000 IN THE SPECIAL TRUST FUND, SUBJECT TO RECEIPT OF A GRANT FROM THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) FOR HOUSING COUNSELING SERVICES; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. That in addition to those amounts allocated to the various City departments for Fiscal Year 2007- 2008 and in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Grants Fund by up to $180,000 and $15,000 in the Special Trust Fund, subject to receipt of a grant from the U.S. Department of Housing and Urban Development (HUD) for housing counseling services. SECTION 2. That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall be and remain in full force and effect. SECTION 3. That this ordinance shall be cumulative of Ordinance No. 17749 and all other ordinances and appropriations amending the same except in those instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed. SECTION 4. This ordinance shall take effect upon adoption. APPROVED AS TO FORM AND LEGALITY: Assistant City Attorney ADOPTED AND EFFECTIVE: July 8, 2008 City of Fort Worth, l`exa~ Mayor and Council Communication COUNCIL ACTION: Approved on 7/8/2008 -Ord. No. 18156-07-2008 DATE: Tuesday, July 08, 2008 LOG NAME: 05CHC2008 REFERENCE NO.: *~C-22881 SUBJECT: Authorize Application for and Acceptance of a Grant up to $180,000.00 from the United States Department of Housing and Urban Development for Housing Counseling Services; Approve and Accept Private Donations up to $15,000.00; Authorize Inter-Fund Loan in the Amount of $30,000.00 and Adopt Appropriation Ordinance RECOMMENDATION: It is recommended that the City Council: 1. Authorize the City Manager to apply for and accept, if awarded, a grant up to $180,000.00 from the United States Department of Housing and Urban Development for the City's housing counseling services; 2. Certify that the activities to be funded with the United States Department of Housing and Urban Development Housing Counseling Grant are consistent with the City's Consolidated Plan; 3. Authorize the City Manager to accept private donations up to $15,000.00 to further support the City's housing counseling program; 4. Authorize anon-interest bearing inter-fund loan from the General Fund to the Grants Fund in the amount of $30,000.00 for interim financing of this grant program pending contract execution; and 5. Adopt the attached appropriation ordinance increasing the estimated receipts and appropriations in the Grants Fund up to $180,000.00, and in the Special Trust Fund up to $15,000.00. DISCUSSION: The United States Department of Housing and Urban Development (HUD) issued a competitive Notice of Fund Availability for its Housing Counseling Grant Program. The Housing Department desires to apply for $180,000.00, the maximum amount available under the HUD grant program. The Housing Department was initially certified by HUD as a Local Housing Counseling Agency on December 19, 1997. This certification is effective through August 2009, and will be renewed prior to its expiration. The Housing Department is competing for this HUD grant to continue support for the City's housing counseling services available to residents of Fort Worth and the surrounding areas. This program includes homeownership training in a classroom setting as well as one-on-one counseling sessions on topics such as budgeting, credit repair, how to shop for a mortgage loan, how to select a home, caring for and maintaining a home following purchase, reverse mortgages, refinancing, foreclosure prevention and education on avoiding predatory lending practices.ln Fiscal Year 2006 - 2007, the City's housing counseling program served a total of 2,011 clients. It is complementary and supportive of the City's down Logname: OSCHC2008 Page 1 of 2 payment and closing cost assistance program which helped 70 first-time homebuyers purchase homes. It also provides the required housing counseling and education components required of participants in the Fort Worth Housing Authority's (FWHA) Housing Choice Voucher Homeownership Program. The City has a contract with FWHA to provide this service. The Housing Department also partners with the Community Relations Department in providing information on predatory lending practices to approximately 1,000 clients each year. The Department collaborates with local housing nonprofits, lenders, real estate agents and other entities in reaching out to residents who need housing counseling services, particularly first-time homebuyers, low-income households, minorities, persons with disabilities, homeless persons in transitional housing programs and other underserved populations. The Housing Department has successfully competed for this HUD grant over the past several years, receiving $57,000.00 last year and $59,769.49 for the current year. To leverage the HUD grant, the Housing Department has also received contributions and grants from lenders and other private donors for outreach and training activities. Last year, these donations amounted to approximately $5,000.00. The Housing Department plans to intensify efforts to increase that amount in the coming year. No match is required. The housing counseling program is available in ALL COUNCIL DISTRICTS. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that upon approval of the above recommendations, and adoption of the attached appropriation ordinance, funds will be available in the current operating budget, as appropriated, of the Grants Fund and Special Trust Fund. Upon execution of the grant contract, interim funding will be returned to the General Fund. TO Fund/Account/Centers GR76 451727 005206288000 $180.000.00 FE72 488100 005539000000 $15,000.00 FE72 539120 005539000000 $15.000.00 GR76 5(VARIOUS) 005206288010 $180,000.00 GR76 220001 000206288000 $30,000.00 FROM Fund/Account/Centers 0001 136076 0000000 $30.000.00 Submitted for City Manager's Office by: Joe Paniagua (6140) Originating Department Head: Jerome Walker (7537) Additional Information Contact: Benedict George (7339) Logname: OSCHC2008 Page 2 of 2