HomeMy WebLinkAboutOrdinance 24334-08-2020 Ordinance No. 24334-08-2020
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE
GRANTS OPERATING FEDERAL FUND IN THE AMOUNT OF $9,300,000.00 FROM
PREVIOUSLY RECEIVED CARES TITLE V FUNDS, FOR THE PURPOSE OF FUNDING
THE ACQUISITION AND DEVELOPMENT OF PROTECTIVE HOUSING FOR COVID-19
VULNERABLE INDIVIDUALS IN NEED OF PERMANENT SUPPORTIVE HOUSING;
PROVIDING FORA 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 2019-2020 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$9,300,000.00, from previously received CARES Title V funds for
the purpose of funding the acquisition and development of protective housing for COVID-19 vulnerable
individuals in need of permanent supportive housing.
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 23835-09-2019 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said prior ordinances and appropriations are hereby expressly repealed.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
Assistant City Attorney Mary J. Kayser I/
ADOPTED AND EFFECTIVE: August 11, 2020 OR-Tr
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 08/11/20 M✓3<C FILE NUMBER: M&C 20-0518
LOG NAME: 02COVID VULNERABLE PERMANENT SUPPORTIVE HOUSING
SUBJECT
Authorize Agreements with Housing Authority of the City of Fort Worth,dba Fort Worth Housing Solutions;The Presbyterian Night Shelter of
Tarrant County, Inc.;and D. Bivens Consulting, LLC, dba dlb Consultants,LLC,in a Combined Amount Not to Exceed$18,600,000.00 from Funds
Previously Received from the U.S. Department of the Treasury Pursuant to Title V of the Coronavirus Aid,Relief, and Economic Security Act for the
Acquisition and Development of Protective Housing for COVID-19 Vulnerable Individuals in Need of Ongoing Supportive Services,and Adopt
Appropriation Ordinance(ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1.Adopt ordinance increasing receipts and appropriations in the Grants Operating Federal Fund in amount of$18,600,000.00 from funds
previously received from the U.S. Department of the Treasury pursuant to Title V of the Coronavirus Aid, Relief,and Economic Security(CARES)
Act;and
2.Authorize the City Manager,or his designee,to execute forgivable loan agreements and related contracts with Housing Authority of the City of
Fort Worth,dba Fort Worth Housing Solutions,and with The Presbyterian Night Shelter of Tarrant County, Inc.for the acquisition and development
of protective housing for COVID-19 vulnerable individuals in need of ongoing supportive housing and with D.Bivens Consulting, LLC,dba dlb
Consultants,LLC,for construction support services in a total combined amount not to exceed$18,600,000.00.
DISCUSSION:
The purpose of this Mayor and Council Communication(M&C)is to take actions aimed at providing approximately 200 units of protective housing
for certain COVID-19 vulnerable individuals,with funding for acquisition,renovation,and construction support services coming from a portion of the
CARES Title V funding previously provided to the City.
The U.S.Centers for Disease Control and Prevention(CDC)has noted that congregate living situations,such as homeless shelters,pose a
greater risk of COVID-19 spreading and have issued recommendations that emergency homeless shelters reduce density/decompress to allow
for safe distancing of homeless clients. The CDC additionally recommends"protective housing for people who are at highest risk of severe
COVID-19." Per the CDC,two groups defined as particularly vulnerable to severe COVID-19 are those over 65 years old and those with specific
underlying health conditions,especially chronic lung disease or moderate/severe asthma,serious heart conditions,immunocompromised,severe
obesity,diabetes,chronic kidney disease and liver disease.
Permanent Supportive Housing(PSH)is a type of housing suitable for disabled households experiencing more than one year of homelessness.
PSH clients require ongoing case management and assistance to remain housed.While there has been significant homeless system funding
provided to the City and the Tarrant County Homeless Coalition through U.S. Housing and Urban Development's(HUD)Emergency Solutions
Grants(ESG)due to COVID-19,this funding does not address the need for PSH.
In view of the CDC recommendations and the lack of ESG funding for PSH,the City will use$18.6 million of funding provided under the
Coronavirus Aid, Relief,and Economic Security Act(CARES Act),Title V(Coronavirus Relief Funds or Title V funds)to acquire and convert
existing motels,hotels,extended stays,apartment complexes,or similar permanent structures to serve as and provide approximately 200 new
units of PSH spread across two or more locations.The new PSH units will provide protective housing for high risk COVID-19 vulnerable and
disabled households experiencing chronic homelessness.
On July 1,2020,the City issued Request for Proposals 20-0190(RFP)seeking proposers to: (1)quickly acquire and convert existing motels,
hotels,extended stays,apartment complexes,or similar permanent structures to serve as approximately 200 units of PSH split across two or more
locations;and(2) provide ongoing supportive services for such households for a period of at least twenty(20)years.The City will provide funding
for the initial costs of acquisition via a one-time payment and subsequent payments for conversion/renovation from Title V funds,and anticipates
assisting the selected proposers to secure ongoing operating subsidies from other sources. The RFP advertisement appeared in the Fort Worth
Star Telegram on July 1,July 8 and July 15,2020.
The City received five proposals for the PSH project. After a competitive scoring process, Housing Authority of the City of Fort Worth,dba Fort
Worth Housing Solutions(FWHS),and The Presbyterian Night Shelter of Tarrant County, Inc. (PNS)were recommended to be awarded a notice to
proceed.These agencies have experience in permanent supportive housing.
In addition, D. Bivens Consulting, LLC,dba dlb Consultants, LLC-a certified DBE-is being recommended for award of a prime contract for
construction support services consulting to assist the selected proposers in meeting their Section 3 business, resident,employment,and minority
and women-owned business(M/WBE)aspirational goals.
Because of the pressing need due to the ongoing public health crisis and strict funding timelines, staff proposes projects be funded based on
which ones can be made tenant-ready in the shortest time period. Although staff is recommending two vendors be given notice to proceed with
identifying and obtaining approvals for potential sites,actual award of funds would be based on which properties get identified and approved first
to provide the target 200 units. Approval is based on the proposer having(1)the property under option,(2)appropriate zoning for the proposed
use,and(3)a resolution of support from the City Council. If one of the proposers has 200 units identified and approved before the other proposer
completes its identification and approval process,then only that one proposer would be awarded. The goal is to move swiftly to getting housing
online and leased up to address the pressing need to address COVID 19 and to expend funds within mandated timelines.
Each property will be subject to a lien and deed of trust as well as a land use restriction agreement(LURA)to ensure these sites continue to serve
the intended purpose—providing protective housing for high-risk individuals in need of permanent supportive housing—for the entire 20 year
performance period. If the properties continue to be used for this purpose throughout the performance period,the loans would be forgiven,and no
repayment would be required. However, if a property is not used for the intended purpose throughout the performance period or if the federal
government subsequently determines via audit that this use of CARES Title V funding is invalid,the City would be able to require repayment,
including if necessary exercising its authority under the lien,deed of trust,and LURA to require the properties be sold.
Staff anticipates that the total$18.6 million would be divvied up to provide approximately$16 million for acquisition,$2.5 million for renovation,and
$100,000.00 for construction support services.These estimates equate to approximately$80,000.00 per unit for acquisition and$12,500.00 per
unit for renovation,resulting in an estimated average cost of$92,500.00 per unit.
However, because both acquisition and renovation costs will vary depending on the age and condition of each identified site,staff proposes it be
given the flexibility to shift amounts between the acquisition and renovation costs and as among the approved sites.
Because the Coronavirus Relief Funds must be expended by December 30,2020,another funding source would be needed to provide ongoing
supportive services.The Directions Home unit is re-configuring its budget to provide funding for up to eight PSH case managers for the 200 units.
The proposer(s)ultimately awarded funding(FWHS and/or PNS)would be responsible for determining its operating expenses based on the
particular property or properties identified and acquired. It is anticipated(based on target population/existing PSH properties)that the average
tenant payment would be$200. To maintain PSH status,tenants cannot be asked to pay more than 30%of their income,and lack of income
cannot disqualify a tenant. If there is a gap between operating expenses and revenue,each selected proposer will work with Directions Home to
determine an appropriate source and amount for gap funding.
This M&C is the fourth appropriation of grant funds related to COVID-19,following an original M&C that established an initial$1,000,000.00
appropriation in the Grants Operating Other Fund(M&C 20-0188),a follow-up M&C establishing the Grants Operating Federal Fund appropriation
in the amount of$2,000,000.00 for this same expense tracking and reimbursement purpose(M&C 20-0247),and a third M&C (M&C 20-0263)
bringing the total appropriation in the Grants Operating Federal Fund up to$50 million.
These programs are available in ALL COUNCIL DISTRICTS.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinance,funds
will be available in the current budget of the Grants Operating Federal Fund. The City Manager's Office has the responsibility to validate the
availability of funds prior to expenditures being made. This is an advance grant.
Submitted for City Manager's Office by: Fernando Costa 6122
Originating Business Unit Head: Tara Perez 2235
Additional Information Contact: Tara Perez 2235