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Home My WebLink About(0092) M&C 20-0497City of Fort Worth, Texas Mayor and Council Communication DATE: 08/04/20 M&C FILE NUMBER: M&C 20-0497 LOG NAME: 19NS ACTION PLAN 2020-2021 SUBJECT Conduct Public Hearing and Approve the City's 2020-2021 Annual Action Plan for the Use of Federal Grant Funds in the Amount of $12,793,159.00 to be Awarded by the U.S. 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 Programs; Authorize Collection and Use of Program Income; Authorize Execution of Related Contracts; Authorize the Use of Fee Waivers as HOME Match; and Adopt Appropriation Ordinance (ALL COUNCIL DISTRICTS) (PUBLIC HEARING - a. Report of City Staff: Sharon Burkley; b. Public Presentations; c. Council Action: Close Public Hearing and Act on the M&C) RECOMMENDATION: It is recommended that City Council: 1. Conduct a public hearing to allow citizen input and consideration of the City's 2020-2021 Annual 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 $12,793,159.00 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 2020-2021 Annual Action Plan for submission to the United States Department of Housing and Urban Development, including allocations of grant funds to particular programs and activities as detailed below; 3. Authorize the collection and use of an estimated $75,000.00 of program income which is expected to result from activities using prior years' Community Development Block Grant funds for the City's Priority Repair Program; 4. Authorize the collection and use of an estimated $75,000.00 of program income which is expected to result from activities using prior years' HOME Investment Partnerships Program grant 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 2020-2021 for Community Development Block Grant, Emergency Solutions Grant, and Housing Opportunities for Persons with AIDS grant funds, contingent upon receipt of funding, and satisfactory completion of all federal 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 use of federal grant funds; and 7. Adopt the attached Appropriation Ordinance increasing the estimated receipts and appropriations to the Grants Operating Federal Fund in the total amount of $12,793,159.00 consisting of $7,487,093.00 in Community Development Block Grant funds, $2,971,282.00 in HOME Investment Partnerships Program grant funds, $638,858.00 in Emergency Solutions Grant funds, and $1,695,926.00 in Housing Opportunities for Persons with AIDS grant funds, plus any program income, all subject to receipt of such funds. DISCUSSION: DISCUSSION: The City's 2020-2021 Annual Action Plan summarizes the major housing and community development activities and proposed expenditures for the program year beginning October 1, 2020 and ending September 30, 2021 for use of federal grant funds totaling $12,793,159.00 from the United States Department of Housing and Urban Development (HUD) from the Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), Emergency Solutions Grant (ESG), and Housing Opportunities for Persons with AIDS (HOPWA) grant programs. It 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 persons in Fort Worth. ESG funds primarily benefit homeless persons, and HOPWA funds primarily benefit low- and moderate -income persons with HIV/AIDS. Staff developed initial recommendations for the allocation of the estimated funding from HUD based on prior years' funding levels. A public hearing was held on May 20, 2020 to provide citizens the opportunity to participate in the development of the Annual Action Plan. Recommendations for award amounts were considered and adopted by the Community Development Council on May 20, 2020. These funding recommendations were presented to the Housing and Neighborhood Services Committee on June 2, 2020 and to the City Council on June 23, 2020. A 30-day public comment period was held from July 1, 2020 to July 31, 2020. Notice of this public comment period was published in the Wise County Messenger and Glen Rose Reporter on June 26, 2020; in the Cleburne Times -Review, Hood County News, and Weatherford Democrat on June 27, 2020; in the Fort Worth Star -Telegram on June 28, 2020; in La Vida News on July 2, 2020, and in La Estrella on July 4, 2020. Any comments received are maintained by the Neighborhood Services Department in accordance with federal regulations. The City held two public hearings as part of the HUD required citizen participation process. The first public hearing was held by staff on July 15, 2020, and the second public hearing is scheduled for the City Council meeting on August 4, 2020. A summary of the Community Development Council's final funding recommendations is provided below and in Tables 1, 2, and 3. A spreadsheet of funding recommendations is also attached. The 2020-2021 Annual Action Plan will be submitted to HUD by August 15, 2020. Indirect costs are not being charged to these grants, as the Neighborhood Services Department Indirect Cost rate was zero in the City's most recent Cost Allocation Plan. COMMUNITY DEVELOPMENT BLOCK GRANT For Program Year 2020-2021, it is recommended that the amount of $7,412,093.00 in CDBG funds and an estimated amount of $75,000.00 in CDBG program income totaling $7,487,093.00 be allocated as follows: • Public Services - $1,111,814.00: Includes social services for low- and moderate -income persons, persons with disabilities, and other eligible populations • Housing Programs - $2,848,219.00: Includes funding for the City's Priority Repair Program, Cowtown Brush -Up, Trinity Habitat for Humanity Preserve -A -Home, homebuyer and housing services, accessibility modifications for seniors and persons with disabilities, and related project delivery costs for these programs • Major Projects - $1,969,641.00: Includes funding for grant matching funds for the City's LeadSafe program. It also includes funds for new affordable multifamily housing for the Palladium Fain Apartments and a project to be developed by Fort Worth Housing Solutions as part of its Choice Neighborhoods Implementation (CNI) grant from HUD for the Cavile Place/Historic Stop Six Neighborhood. • Administration - $1,482,419.00: Includes costs for administering the CDBG grant, including allocations for the Financial Management Services and Planning and Development Departments. • Estimated Program Income - $75,000.00: Includes up to $75,000.00 in funding for the City's Priority Repair Program. Any CDBG program income over the estimated amount not used for the Priority Repair Program will be allocated to priority activities in the City's Consolidated Plan, subject to City Council approval. HOME INVESTMENT PARTNERSHIPS PROGRAM For Program Year 2020-2021, it is recommended that the amount of $2,896,282.00 in HOME funds and an estimated amount of $75,000.00 in HOME program income totaling $2,971,282.00 be allocated as follows: • Homebuyer Assistance Program - $1,059,052.00: Includes funding for down payment and closing cost assistance for low- and moderate - income homebuyers. • Community Development Housing Organizations - $494,442.00: HUD requires that a minimum of 15 percent of HOME funds be allocated to Community Development Housing Organizations (CHDOs) for affordable housing projects. These funds will be used by Development Corporation of Tarrant County (DCTC) for single-family infill development in the Polytechnic neighborhood. The City is also authorized by HUD to fund CHDO operating costs to support community -based affordable housing development. These funds for operating costs will be used by DCTC to support completion of the Polytechnic single-family infill project. All housing developed with these funds will be sold to homebuyers making at or below 80 percent of area median income (AMI), set by HUD. • Major Projects - $1,053,160.00: Includes funds allocated to the multifamily project to be developed by FWHS as part of its CNI Grant, and Columbia Renaissance Square Phase II. Funds are also allocated to Stop Six Model Blocks Single Family Infill Construction to fulfill prior year's commitment of funds. • Administration - $289,628: Includes costs for administering the HOME grant. • Estimated Program Income - $75,000.00: Includes funding for the Homebuyer Assistance Program and HOME grant administrative costs. HUD allows the City to use 10 percent of any HOME program income towards the cost of administering the HOME grant. HOME program income over the estimated amount not used for the Homebuyer Assistance Program will be allocated to priority activities in the City's Consolidated Plan, subject to City Council approval. HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS • For Program Year 2020-2021, it is recommended that the amount of $1,695,926.00 in HOPWA funds be allocated as follows: • Public Service Agencies - $968,649.00 • Neighborhood Services Department/Community Action Partners: $676,399.00 • Administration - $50,878.00 EMERGENCY SOLUTIONS GRANT For Program Year 2020-2021, it is recommended that the amount of $638,858.00 in ESG funds be allocated as follows: • Public Service Agencies - $590,944.00 • Administration - $47,914.00 CONTRACT RECOMMENDATIONS The Community Development Council and staff recommend 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 AGENCY PROGRAM AMOUNT AB Christian Learning After School Tutoring $85,000.00 Center AB Christian Learning Summer Reading Program $50,000.00 Center Camp Fire First Texas After School Program $50,000.00 Girls Incorporated of Whole Girl Approach for At -Risk Youth $75,000.00 Tarrant County United Community Educational Enrichment $100,000.00 Centers, Inc. Goodwill Industries of Fort Employment/Job Training $90,000.00 Worth Guardianship Services, Financial Exploitation Prevention $70,000.00 Inc. Workshops in the City of Fort Worth Housing Channel Homebuyer Education and Housing $125,000.00 Counseling Services The Ladder Alliance Employment/Job Training $80,000.00 Meals -On -Wheels, Inc. of Home -Delivered Meals $71,814.00 Tarrant County Community Foundation of North Texas, Inc. DBA Read Fort Worth Summer Scholars $55,000.00 North Texas Community Foundation The Presbyterian Night Shelter of Tarrant County, Case Management for Homeless $145,000.00 Inc. Sixty and Better, Inc. Health and Wellness Program Expansion $40,000.00 Sixty and Better, Inc. Transportation for Seniors $75,000.00 CDBG Public Service $1,111,814.00 Subtotal Rehabilitation, Education and Advocacy for Citizens Accessibility Improvements for Low $115,000.00 with Handicaps DBA Income Residents REACH, Inc. Fort Worth Area Habitat for Humanity, Inc. DBA Cowtown Brushup Paint Program $455,000.00 Trinity Habitat for Humanity Fort Worth Area Habitat Preserve -A -Home Program for Humanity, Inc. DBA (Rosemont Neighborhood $400,000.00 Trinity Habitat for Improvement Strategy) Humanity TOTAL CDBG $2,081,814.00 CONTRACTS Housing Opportunities for Persons With AIDS Contracts: TABLE 2: HOPWA AGENCIES AGENCY PROGRAM AMOUNT Supportive Services, Facility -Based Tarrant County Samaritan Housing Operations, Tenant -Based $738,649.00 Housing, Inc. Rental Assistance TBRA, Administration Short Term Rent Mortgage and Utility AIDS Outreach Center, Inc. Assistance, Supportive Services, $230,000.00 Administration TOTAL HOPWA $968,649.00 CONTRACTS Emergency Solutions Grant Contracts: TABLE 3: ESG AGENCIES AGENCY PROGRAM AMOUNT The Presbyterian Night Shelter of Tarrant County, Shelter Operations/Services $131,315.00 Inc. Lighthouse for the Homeless DBA True Worth Shelter Operations/Services $177,000.00 Place The Salvation Army Homelessness Prevention $107,629.00 Center for Transforming Rapid Re -Housing $100,000.00 Lives SafeHaven of Tarrant Shelter Operations/Services $75,000.00 County TOTAL ESG CONTRACTS $590,944.00 All figures have been rounded to the nearest dollar for presentation purposes. 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 operating budget, as appropriated, of the Grants Operating Federal Fund. The Neighborhood Services Department has the responsibility to validate the availability of funds prior to an expenditure being made and will be responsible for the collection and deposit of funds due to the City. These are reimbursement grants. Submitted for City Manager's Office by. Fernando Costa 6111 Originating Business Unit Head: VictorT. Turner 7540 Additional Information Contact: Barbara Asbury 7331 Sharon A. Burkley 5785