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HomeMy WebLinkAboutOrdinance 23310-08-2018 Ordinance No. 23310-08-2018 AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE GRANTS OPERATING FEDERAL FUND, IN THE AMOUNT OF $12,044,676.00, PLUS ANY PROGRAM INCOME, SUBJECT TO RECEIPT OF VARIOUS GRANTS AND PROGRAM INCOME, FOR THE PURPOSE OF FUNDING PROGRAMS TO PRIMARILY BENEFIT LOW AND MODERATE INCOME CITY RESIDENTS, HOMELESS PERSONS, AND PERSONS WITH DISABILITIES; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL 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 2017-2018 in the Budget of the City Manager,there shall also be increased estimated receipts and appropriations in the Grants Operating Federal Fund in the amount of $12,044,676.00, plus any program income, for the purpose of funding programs to primarily benefit low and moderate income City residents, homeless persons, and persons with disabilities. 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 22927-09-2017 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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: CITY SECRETARY ige Meb ne I'vlaryJ. Ka se Assistant City Attorney ADOPTED AND EFFECTIVE: August 7, 2018 O ► 0 R 2018-2019 Grant Allocations: Increases 'Funding Source Community Development Block Grant (CDBG) $ 6,526,863 $ 7,262,818 11.28% HOME Investment Partnerships Program (HOME) $ 2,047,626 $ 2,861,535 39.75% Emergency Solutions Grant (ESG) $ 577,437 $ 587,565 1.75% Housing Opportunities for Persons with AIDS $ 1,176,535 $ 1,332,758 13.28% (HOPWA) TOTAL FUNDS $ 10,328,461 $ 12,044,676 16.61% 2018-19 CDBG Proposed Budget summary Public Services(15%Cap) $ 1,089,422 CDBG Housing Programs: REACH Project Ramp:Accessibility Improvements $ 100,000 Priority Repair Program:Home Repairs for Health and Safety $ 1,100,000 Cowtown Brushup: Trinity Habitat Contract $ 455,000 Pilot Program: Fair Housing Accessibility Improvements(with Human Relations Unit) $ 150,000 Rehab/Construction Management(Program Delivery) $ 583,000 Homebuyer Assistance/Housing Services(Program Delivery) $ 165,000 Economic Development(Repayment of Section 108 Loan) $ 740,977 General Administration(20%Cap) $ 1,452,563 RESERVED FOR MAJOR PROJECTS(Not Incl.Est$2,200,000 in Program Income) $ 1,426,856 GRAND TOTAL $ 7,262,818 Est.Program Income Over$2,200,000,To Be Allocated to Priority Repair Program $ 150,000 FORTWORTH, 0 0 HOME Investment Partnerships Program Activity ■ ■■ Homebuyer Assistance Program) $ 1,000,000 CHDO Set-Aside (HUD-Required 15%): Housing Channel (Stalcup-Berry SF) $ 429,231 CHDO Operating Costs (to support Riverside and Hardy SF Infill projects) $ 90,000 Grant Administration: (Limited to 10%) $ 286,153 RESERVED FOR MAJOR PROJECTS $ 1,056,151 Total 2018-19 HOME Funds $ 2,861,535 Est. Program Income, Reserved for Homebuyer Assistance Program $ 150,000 WR OR 'To" NMI CDBG Public Service Recommendations Organizationing Funding2018-19 Fund Request Recommended Sixty and Better,Senior Transportation Aging in Place City-wide $ 115,000 $ 111,800 Housing Channel,Housing Counseling&Education Affordable Housing City-wide $ 119,727 $ 118,088 Presbyterian Night Shelter,Moving Home Case Management& Homeless Services C'ty'wide $ 210,000 s 44 907 Diversion Services for Homeless Girls Inc.,Education,Prevention&Leadership Program Youth Services Northside $ 110,000 $ 75,000 Goodwill,City Works Employment Training/Job Placement Poverty Reduction Citywide $ 214,388 $ 100,[}00 AB Christian Learning Center,After-School Tutoring Reading&Literacy Stop Six/Southeast $ 80,000 $ 80,000 Guardianship Services,Education to Prevent Financial Aging in Place Citywide $ 75,000 $ 75.ML) Exploitation of Elderly' The Salvation Army,Employment Training Program" Poverty Reduction Citywide $ 75.000 $ 75,000 United Community Centers,Educational Enrichment Rvauing&Literacy Northside/polytechnic d Southside 3 1 H.00D $ 75 1~4? Meals on Wheels,Home Delivered Meals Aging In Place Citywide $ 90,000 $ 76,350 Ladder Alliance,Computer Skills/Employment Training Poverty Reduction Citywide 5 101,09[: $ OO 110C McDonald YMCA Youth Wellness Services' Youth Services Southea_5t/Renaiswnice Sq. $ 75 OOU $ 75,000 "Pmgram new for this funding year,aU others are funding renewals. TOTAL $ 1,089,422 FORT WORTH ESG & HOPWA Funding Recommendations n 2018 2017-18Curre t -19 Funding Organization Funding Request Recommended Presbyterian Night Shelter Emergency Shelter Services $ 126,625 $ 135,000 $ 126,625 Lighthouse for the Homeless True Worth Place, Day Shelter $ 95,343 $ 125,000 $ 68,498 The Salvation Army Prevention,Shelter,Rapid Re-Housing $ 126,625 $ 250,000 $ 183,375 Center for Transforming Lives Rapid Re-Housing $ 109,562 $ 114,961 $ 90,000 SafeHaven of Tarrant County SafeSolutions for Fort Worth $ 75,975 $ 105,000 $ 75,000 Neighborhood Services Dept. ESG Administrative Costs(limited to 7.5%) $ 44,067 ESG TOTAL $ 587,565 Tarrant County Samaritan Supportive Services, Facility Operations,Tenant Housing Based Rental Assistance,Administration $ 553,244 $ 711,830 $ 636,776 AIDS Outreach Center Supportive Services,STRMU,Tenant Based Rental Assistance, Administration $ 631,035 $ 656,000 $ 656,000 Neighborhood Services Dept. HOPWA Administrative Costs(limited to 3%) 39,982 HOPWA TOTAL $ 1,332,758 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 8/7/2018 - Ordinance No. 23310-08-2018 DATE: Tuesday, August 7, 2018 REFERENCE NO.: G-19328(Revised) LOG NAME: 19NS HUD CONPLAN 2018-22 ACTIONPLAN 2018-19 SUBJECT: Conduct Public Hearing and Approve the City's 2018-2022 Consolidated Plan Priorities and Goals and 2018-2019 Action Plan for the Use of Federal Grant Funds in the Amount of$12,044,676.00 to be Awarded by the United States Department of Housing and Urban Development from the Community Development Block Grant, HOME Investment Partnerships Program, Emergency Solutions Grant and Housing Opportunities for Persons with AIDS Grant Programs, Authorize Collection and Use of Program Income, Authorize Waiver of Application of Indirect Cost Rates, Authorize Execution of Related Contracts, and Adopt Appropriation Ordinance (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council: 1. Conduct a public hearing to allow citizen input and consideration of the City's 2018-2022 Consolidated Plan Priorities and Goals and 2018-2019 Action Plan for use of federal grant funds to be awarded by the United States Department of Housing and Urban Development in the amount of$12,044,676.00 from the Community Development Block Grant, HOME Investment Partnerships Program, Emergency Solutions Grant, and Housing Opportunities for Persons with AIDS grant programs, and for the use of program income from activities using prior years' federal grant funds; 2. Approve the City's 2018-2022 Consolidated Plan and 2018-2019 Action Plan for submission, including allocations of grant funds to particular programs and activities as detailed below; 3. Authorize the collection and use of an estimated $2,200,000.00 of program income which is expected to result from activities using prior years' Community Development Block Grant funds for the projects and programs detailed below, and authorize the collection and use of amounts over the $2,200,000.00 of program income, estimated to be $150,000.00, for City's Priority Repair Program; 4. Authorize the collection and use of an estimated $150,000.00 of program income which resulted from activities using prior years' HOME Investment Partnerships Program funds for the City's Homebuyer Assistance Program, and authorize the use of 10 percent of the program income for administrative costs; 5. Authorize the City Manager or his designee to execute contracts for one year terms with the agencies listed in Tables 1, 2 and 3 below for Program Year 2018-2019 for Community Development Block Grant, Emergency Solutions Grant, and Housing Opportunities for Persons with AIDS grant funds, contingent upon receipt of funding, satisfactory completion of an Environmental Review, and all regulatory requirements; 6. Authorize the City Manager or his designee to extend the contracts for up to one year if an agency or department requests an extension and such extension is necessary for completion of the program, or to amend the contracts if necessary to achieve program goals provided any amendment is within the scope of the program and in compliance with City policies and all applicable laws and regulations governing the Logname: 19NS HUD CONPLAN 2018-22 ACTIONPLAN 2018-19 Page I of 7 use of federal grant funds; 7. Authorize a waiver of indirect cost rates as applicable for the Grants Fund in accordance with the City's Administrative Regulations; and 8. Adopt the attached Appropriation Ordinance increasing the estimated receipts and appropriations to the Grants Fund in the total amount of$12,044,676.00 consisting of$7,262,818.00 in Community Development Block Grant funds, $2,861,535.00 in HOME Investment Partnerships Program grant funds, $587,565.00 in Emergency Solutions Grant funds, and $1,332,758.00 in Housing Opportunities for Persons with AIDS grant funds, plus any program income, all subject to receipt of such funds. DISCUSSION: The City's 2018-2022 Consolidated Plan assesses community and affordable housing needs and sets strategic priorities and goals for use of federal grant funds from the United States Department of Housing and Urban Development (HUD) for a five-year period. These priorities and goals are to be addressed with Annual Action Plans that summarize the major housing and community development activities and proposed expenditures for each of the five years. Recommendations for proposed priorities and goals for the Consolidated Plan were adopted by the City's Community Development Council on May 16, 2018. These priorities and goals were developed to be consistent with strategies and initiatives previously adopted by the City Council, as well as through an assessment of community needs which included the Assessment of Fair Housing planning process conducted in 2017. The recommended Consolidated Plan priorities and goals for use of HUD grant funds over the next five years are summarized below. •Affordable Housing: Promote homeownership, affordable housing, and Fair Housing for both renters and owners • Preservation and rehabilitation of existing housing stock • Targeted neighborhood improvement and revitalization • Poverty reduction, including programs that support self-sufficiency and household stability, such as employment training, adult basic education, and related programs • Educational and support programs for children, youth and their families, to prepare them for success through literacy, training, mentorship and related programs • Programming to support aging in place •Accessibility improvements in public facilities and housing • Services and housing for the homeless, including homelessness prevention and services that help homeless persons achieve the goal of permanent housing The 2018-2019 Action Plan summarizes proposed HUD grant funded activities and expenditures that are consistent with the above priorities and goals for the program year beginning October 1, 2018 and ending September 30, 2019. The federal grant funds covered by this 2018-19 Action Plan represent a total of $12,044,676.00 from HUD for Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), Emergency Solutions Grant (ESG) and Housing Opportunities for Persons with AIDS (HOPWA) grant programs. The Action Plan also summarizes the use of program income resulting from activities using prior years' CDBG and HOME funds, the primary purpose of which is to benefit low and moderate income City residents. ESG funds primarily benefit homeless persons, and HOPWA funds primarily benefit low and moderate income persons with HIV/AIDS. A Notice of Funding Availability (NOFA) for affordable housing developers and other entities seeking funding for major community development projects was published on February 9, 2018. A Request for Proposals from social service agencies seeking grant funding was published on February 16, 2018. All proposals were received on March 16, 2018. Staff reviewed all proposals and developed recommendations for the allocation of the estimated funding from HUD based on the capacity of applicant Logname: 19NS HUD CONPLAN 2018-22 ACTIONPLAN 2018-19 Page 2 of 7 organizations, consistency with overall City priorities, and compliance with applicable federal regulations. Public hearings were held on April 11, 2018 and April 18, 2018 to provide citizens and stakeholders the opportunity to participate in the development of the Consolidated Plan and Action Plan. Recommendations for award amounts were considered and adopted by the Community Development Council (CDC) on May 16, 2018. These recommendations were presented to the Housing and Neighborhood Services Committee on June 5, 2018 and to the City Council on June 12, 2018. Notice of a 30-day public comment period from July 2, 2018 to July 31, 2018 was published in the Fort Worth Star-Telegram on June 10, 2018, in La Estrella on June 16, 2018, and in La Vida News: The Black Voice on June 21, 2018. Any comments received are maintained by the Neighborhood Services Department in accordance with federal regulations. The City must hold two public hearings as part of the HUD-required citizen participation process. The first public hearing is scheduled to be held before City Council on June 26, 2018 prior to the commencement of the 30-day public comment period, and the second public hearing is scheduled for the August 7, 2018 City Council meeting where the Consolidated Plan and Action Plan will be considered for approval by the Council. A summary of the CDC funding recommendations is provided below and in Tables 1, 2 and 3. Additionally, a spreadsheet of all specific funding recommendations is attached. The 2018-2022 Consolidated Plan and 2018-2019 Annual Action Plan must be submitted to HUD by August 15, 2018. A waiver of indirect costs is being requested to maximize program benefits. The CDBG program provides for 43 partially-funded positions with estimated salaries of$1.3 million. Addition of indirect costs would result in reduction in Staff and services. The indirect costs that are requested to be waived are estimated to be $371,566.00. Community Development Block Grant(CDBG) For Program Year 2018-2019, it is recommended that the amount of$7,262,818.00 in CDBG funds, and an estimated amount of$2,350,000.00 in CDBG program income totaling $9,612,818 be allocated as follows: Public Services -$1,089,422.00 This item includes social services for low to moderate income, disabled and disadvantaged populations. Housing Program Services -$2,553,000.00 This item includes funding for the City's Priority Repair Program, Cowtown Brush-Up, homebuyer and housing services, accessibility modifications to homes of senior and/or disabled individuals to support Aging In Place and Fair Housing compliance, and related project delivery costs for these programs. (ALL COUNCIL DISTRICTS) Infrastructure Projects & Public Facilities -$1,426,856.00 This item includes funding for Street and Sidewalk Improvements and Open Space Recreational Improvements in the Ash Crescent Neighborhood Improvement Target Area and related Public Facilities, and for Bunche Park improvements in the Stop Six neighborhood. (COUNCIL DISTRICTS 8 and 5) CDBG Economic Development-$740,977.00 This is the City' s annual payment of its Section 108 loan from HUD. The Section 108 Program is a loan guarantee program which enables CDBG grantees to borrow up to five times their annual entitlement grant. CDBG Estimated Program Income - $2,350,000.00 This item includes funding for Accessibility Improvements at City Community Centers and other public facilities, water/sewer improvements to support infill housing development on Sheraton Drive, a community facility for early childhood education, and for a multifamily rehabilitation program. This item also includes up to $150,000.00 in funding for the City's Priority Repair Program. CDBG program income Logname: 19NS HUD CONPLAN 2018-22 ACTIONPLAN 2018-19 Page 3 of 7 that is received which is over the estimated amount but not used for the City' s Priority Repair Program will be allocated to priority activities in the Consolidated Plan subject to City Council approval. CDBG General Administration - $1,452,563.00 (Limited to 20%) This item includes costs for administering the CDBG grant including allocations for the Financial Management Services, Neighborhood Services and Planning and Development Departments. HOME Investment Partnerships Program (HOME) For Program Year 2018-2019, it is recommended that the amount of$2,861,535.00 in HOME funds, and an estimated amount of$150,000.00 in HOME program income, totaling $3,011,535.00 be allocated as follows: Homebuyers Assistance Program (HAP) -$1,000,000.00 This item includes funding for down payment and/or closing cost assistance to low and moderate income homebuyers. (ALL COUNCIL DISTRICTS) Community Development Housing Organizations (CHDO) -$519,382.00 HUD requires that a minimum of 15 percent of HOME funds be allocated to CHDOs for affordable housing projects. These funds will be used by Housing Channel, a CHDO, for the Single Family Infill Development at Stalcup and Berry (COUNCIL DISTRICT 5). The City is also authorized to fund CHDO administrative operating costs to support community based affordable housing development, and this funding will be used by Housing Channel to support completion of the Hardy and Riverside Single Family Infill projects which were funded in previous years (COUNCIL DISTRICTS 2 and 8). All houses constructed with these funds will be sold to homebuyers with incomes at or below 80 percent of the area median income set by HUD. Rental Housing Rehabilitation —$1,056,151.00 This item represents gap financing for a portion of the costs of rehabilitating affordable multifamily housing for Atlantic Housing Foundation at Manitoba Apartments, and for Tarrant County Samaritan Housing, Inc. for a project to develop permanent supportive housing for the homeless. (COUNCIL DISTRICTS 3 and 9). HOME General Administration —$286,153.00 (Limited to 10%) This item includes costs for administering the HOME grant. HOME Estimated Program Income - $150,000.00 This item includes funding for the Homebuyer Assistance Program and for HOME grant administrative costs. HUD allows the City to take 10 percent of any HOME program income to be used for the costs for administering the HOME grant. HOME program income that is received which is over the estimated amount but not used for the Homebuyer Assistance Program will be allocated to priority activities in the Consolidated Plan subject to City Council approval. Housing Opportunities for Persons With AIDS Program (HOPWA) For Program Year 2018-2019, it is recommended that the amount of$1,332,758.00 in HOPWA funds be allocated as follows: Public Services -$1,292,776.00 HOPWA Program Administration —$39,982.00 (Limited to 3%) Emergency Solutions Grant(ESG) For Program Year 2018-2019, it is recommended that the amount of$587,565.00 in ESG funds be allocated as follows: Public Services - $543,498.00 ESG Program Administration —$44,067.00 (Limited to 7.5%) Logname: 19NS HUD CONPLAN 2018-22 ACTIONPLAN 2018-19 Page 4 of 7 PUBLIC SERVICES CONTRACT RECOMMENDATIONS The CDC adopted recommendations on the award of public services contracts on May 16, 2018. Upon further evaluation and discussion with impacted parties, Staff revised the proposed recommendations for ESG Agencies to provide funding for Safe Haven of Tarrant County. Based on this input and evaluation, staff recommends that contracts be executed with the listed agencies for the amounts shown in the following tables: Community Development Block Grant Contracts: _ Table 1 — CDBG Agencies _ Organization _ Program Amount B Christian Learning Center Child Care Services $ 80,000.00 Girls Inc. of Tarrant County —Youth Services _F$ 75,000.00 Goodwill Industries of Fort Worth, Employment/Job Training $100,000.00 Inc. Guardianship Services Prevention of Financial $ 75,000.00 Exploitation of Elderly Housing Channel Housing Counseling $118,088.00 Services _ he Ladder Alliance Employment/Job Training $ 80,000.00 McDonald YMCA outh Wellness Services 75,000.00 Meals on Wheels, Inc. of Greater [eldmerly/d oe-delivered meals for $ 76,350.00 arrant County _ isabled Presbyterian Night Shelter of Case Management for $144,987.00 arrant County Homeless he Salvation Army lEmployment Training $ 75,00_0.00_ Sixty and Better, Inc. ITransportation for Elderly 1$111,800.00 United Community Centers Educational Enrichment $ 78,197.00 Educational Children CDBG Public Service Subtotal—I �$ 1,089,422.001,089,422.00 Rehabilitation, Education and ccessibility $100,000.00 Advocacy for Persons with Improvements for Low Handicaps, dba REACH, Inc.** Income Residents rinity Habitat for Humanity Cowtown Brushup Paint $455,000.00 IT 1Prograrn Total CDBG Contracts 1 $1,644,422.00 **REACH and Trinity Habitat will be funded from the CDBG Housing Programs and Services budget. Housing_Opportunities For Persons With AIDS Contracts: Table 2 – HOPWA Agencies Organization Program Amount Tarrant County Samaritan Supportive Services, $636,776.00 Housing, Inc. Facility Based Housing Subsidy Assistance, Tenant Based Rental Logname: 19NS HUD CONPLAN 2018-22 ACTIONPLAN 2018-19 Page 5 of 7 (/assistance, and Administration IDS Outreach Center, Inc. Supportive Services, $656,000.00 Tenant Based Rental Assistance (TBRA), Short Term Rent Mortgage and Utility Assistance (STRMU) and _ _ _ _ dministration F Total HOPWA Contracts ( ------� $1,292,776.00 Emergency Solutions Grant Contracts: A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Neighborhood Services Department and approved by the M/WBE Office, in accordance with the M/WBE or BDE Ordinance, because the opportunities for subcontracting or suppliers through purchase of goods or services are negligible. All figures have been rounded to the nearest dollar for presentation purposes. �— Table 3 — ESG Agencies Organization Program Amount Presbyterian Night helter 126,625.00 Shelter of Tarrant perations/Services County Lighthouse for the Shelter r-6-8—,498.00 Homeless dba True Operations/Seryices orth Place Safe Haven of Tarrant Vorth fe Solutions for Fort $ 75,000.00 County _ he Salvation Army, a Homeless Prevention, 183,375.00 Georgia Corporation Rapid Rehousing, and Emergency Shelter Center for Rapid Rehousing 90,000.00 [Transforming Lives I r Total ESG Contracts $ 543,498.00 FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendations, adoption of the attached appropriation ordinance and receipt of grant funds, funds will be available in the current operating budget, as appropriated, of the Grants Operating Federal Fund. These are reimbursement grants. The Neighborhood Services Department has the responsibility to validate the availability of funds prior to an expenditure being made. FUND IDENTIFIERS (FIDs): TO Logname: 19NS HUD CONPLAN 2018-22 ACTIONPLAN 2018-19 Page 6 of 7 Fund Department ccoun Project rrogramctivity Budget Reference # moun ID ID I Year ( (Chartfield 2) FROM _ Fund Department ccoun Project Program ctivity Budget Reference # �moun ID ID Year (Chartfield 2) CERTIFICATIONS: Submitted for City Manager's Office by: Fernando Costa (6122) Originating Department Head: Aubrey Thagard (8187) Barbara Asbury (7331) Additional Information Contact: Eric Vodicka (7583) Logname: 19NS HUD CONPLAN 2018-22 ACTIONPLAN 2018-19 Page 7 of 7