HomeMy WebLinkAboutIR 9402(0A
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To the Mayor and Members of the City Council
July 19, 2011
Page 1 of 2
SUBJECT: RECOMMENDATION TO USE $700,000.00 OF THE GENERAL
FUNDS BUDGETED IN THE HOUSING TRUST FUND FOR THE CITY'S
HOUSING ASSISTANCE PROGRAM, AND ADMINISTRATIVE COSTS FOR THE
COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME INVESTMENT
PARTNERSHIP PROGRAMS
The purpose of this Informal Request is to provide City Council with information regarding staff's
recommendation to move $700,000.00 in General Funds currently budgeted to the Housing Trust
Fund (HTF) to the Special Trust Fund in order to continue the City's Housing Assistance Program
(HAP) for 2010 -2011, and for administrative costs to operate the Community Development Block
Grant (CDBG) and HOME Investment Partnership (HOME) programs for the 2011 -2012 Program
Year (PY). Approval of this request will eliminate the need to request funding from the General
Fund. Currently, there is $846,903.50 in General Funds in the Housing Trust Fund. Additionally,
the Fund is expected to receive $900,000 from a project loan repayment before the end of the
fiscal year.
Housing Assistance Program (HAP) - $450,000.00
HAP provides up to $14,999.00 to income - eligible buyers for down payment and /or closing cost
assistance for the purchase of a home. Since June 1, 2010, the start of the 2010 -2011 fiscal
year, 87 HAPs have been completed. Because the City extended its PY from June -May to June -
September, most of the funds that were budgeted for this program have been used. There are
currently 25 applications for the program with available funds to complete nine. Staff anticipates
receiving an additional 15 requests before the end of the fiscal year. Therefore, staff recommends
using $450,000.00 of the General Fund dollars in the Housing Trust Fund to meet this need.
If City Council approves this request, the $450,000.00 will serve as the City's match requirement
for the 2011 -2012 HOME allocation awarded by the Department of Housing and Urban
Development (HUD). HUD requires the City to match its 2011 -2012 HOME entitlement funds of
$2,832,159.00 with 12.5% match or $354,019.88. Match funds must come from non - federal
sources, and the excess match funds will be counted as match for future years.
The Housing Assistance Program is available in ALL COUNCIL DISTRICTS.
CDBG and HOME Administrative Costs ($250,000.00)
HUD has awarded the City $2,832,159.00 in HOME funds and $6,153,267.00 in CDBG funds for
the 2011 -2012 PY. The City is allowed up to 10% ($283,215.90) of its HOME allocation for
administrative costs, and 20% for CDBG ($1,230,653.40). This is a reduction of $272,565.80 in
HOME and CDBG in the department's administrative budget. Therefore, staff recommends that
Council approve $250,000.00 of the HTF General Funds to supplement the CDBG and HOME
administrative budget to effectively operate the programs and fulfill all required obligations without
impacting the General Fund.
ISSUED BY THE INTERIM CITY MANAGER FORT WORTH, TEXAS
Ir
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Y073
To the Mayor and Members of the City Council
No. 9402
July 19, 2011
Page 2 of 2
SUBJECT: RECOMMENDATION TO USE $700,000.00 OF THE GENERAL
FUNDS BUDGETED IN THE HOUSING TRUST FUND FOR THE CITY'S
HOUSING ASSISTANCE PROGRAM, AND ADMINISTRATIVE COSTS FOR THE
COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME INVESTMENT
PARTNERSHIP PROGRAMS
Staff intends to place an M&C regarding the recommendation on the City Council agenda on
August 2, 2011 for City Council's consideration.
If you have any questions, please contact Jay Chapa, Director, Housing and Economic
Development Department at 817/392-5804.
.,Tom" Hiaciins
Interim
-61ty Manager
ISSUED BY THE INTERIM CITY MANAGER
FORT WORTH, TEXAS