HomeMy WebLinkAbout(0040) M&C 21-0301City of Fort Worth, Texas
Mayor and Council Communication
DATE: 04/20/21 M&C FILE NUMBER: M&C 21-0301
LOG NAME: 19SAMARITAN HOUSE SRO FACILITY REHABILITATION PROJECT
SUBJECT
(CD 9) Authorize Change in Use and Expenditure in the Amount of $200,000.00 of Unprogrammed Housing Opportunities for Persons with AIDS
Grant Funds for Tarrant County Samaritan House, Inc. in the Form of a Forgivable Loan for the Rehabilitation of the Single Room Occupancy
Facility Located at 929 Hemphill Street, Authorize the Execution of a Contract, Authorize a Substantial Amendment to the City's 2019-2020 Action
Plan, Authorize the Substitution of Funding Years, and Find that Funding the Rehabilitation Serves a Public Purpose
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize a substantial amendment to the City's 2019-2020 Action Plan;
2. Authorize a change in use and expenditure of $200,000.00 in prior year's unprogrammed Housing Opportunity for Persons with AIDS grant
funds to Tarrant County Samaritan Housing, Inc., in the form of a forgivable loan for the Samaritan House Single Room Occupancy Facility
Rehabilitation project located at 929 Hemphill Street, Fort Worth, Texas;
3. Authorize the City Manager, or his designee, to substitute funding years in order to meet United States Department of Housing and Urban
Development commitment, disbursement and expenditure deadlines;
4. Authorize the City Manager, or his designee, to execute a contract with Tarrant County Samaritan House, Inc., in the total amount of
$200,000.00 for the Single Room Occupancy Facility Rehabilitation project;
5. Authorize the City Manager, or his designee, to extend the contract for up to two one-year extensions if Tarrant County Samaritan Housing,
Inc., requests an extension and such extension is necessary for completion of the project;
6. Authorize the City Manager, or his designee, to amend the contract if necessary to achieve project goals provided that the amendment is
within the scope of the project and in compliance with City policies and applicable laws and regulations governing the use of federal grant
funds; and
7. Find that funding the rehabilitation achieves the public purpose of providing shelter to individuals with HIV/AIDS who are at -risk for
homelessness in the City and providing resources designed to ensure their safety and welfare, and find that adequate controls are in place
to ensure that the public purpose is carried out.
DISCUSSION:
In 2019, the United States Department of Housing and Urban Development (HUD) awarded $1,505,634.00 in Housing Opportunities for Persons
with AIDS (HOPWA) grant program funds to the City of Fort Worth, which was subsequently contracted to two program partners (Tarrant County
Samaritan House, Inc. and AIDS Outreach Center) for delivery of services to eligible low-income clients. Due to a variety of program changes,
approximately 14% of these funds remain unexpended.
Tarrant County Samaritan House, Inc. (Samaritan House) requested to use the unexpended balance of $200,000.00 in HOPWA grant funds for
improvements and the rehabilitation of their 60 Single Room Occupancy (SRO) Facility located at 929 Hemphill Street, Fort Worth, Texas, 76104.
The facility houses persons who are at risk for homelessness and who are HIV/AIDS positive. Intensive on -site case management, including
substance abuse counseling, nutritious meals, preventive health care and related supportive services are provided to residents. Aside from minor
repairs caused by normal wear and tear, individual units at the SRO Facility have not been updated since 2006 when it was renovated along with
the build -out of The Villages at Samaritan House. In 2018, the Samaritan House SRO Facility completed a rehabilitation project that focused on
the outside and common areas of the building, including the reconstruction and construction of sidewalks, replacement of fences, selective doors
and hardware, windows, ceiling tile, flooring, and exterior and interior painting. This project also included re -keying of doors, upgrades to the
grease trap, installation of new exterior and interior light fixtures, replacement of water heaters, and installation of a security system. In addition, a
dryer room was constructed and a room was modified to create a heat room to provide facilities for eliminating pests. The rehabilitation work
funded through this loan will be focused on updating the individual living units by providing upgrades to each of the 60 Samaritan House SRO units
including painting, repair and replacement of flooring and bathroom and lighting upgrades. The changes to the SRO units are necessary to
address barriers that the tenants face, both physically and mentally. Additionally, updates to systems in the unit, such as replacing broken bathroom
fixtures and shower doors, will ensure the safety of the tenants, reduce waste, and prevent property damage inside the units.
Funding from this loan will help provide shelter and supportive services to individuals who are HIV/AIDS positive in the City who are at -risk for
homelessness and in need of services to ensure their wellbeing. The units are available to HOPWA eligible households earning 80% or less of
area median income. The expenditure of HOPWA funds for the proposed work in the SRO facility is an eligible activity in the HOPWA grant and
funds can be provided in the form of a forgivable loan.
Staff recommends the execution of a contract with Samaritan House for a forgivable loan of HOPWA funds in the amount of $200,000.00 under the
following terms and conditions:
HOPWA Contract and HOPWA Loan Terms:
1. Contract term of one year(s) commencing on the date of execution with the option for two one-year extensions;
2. Payment of the HOPWA funds, if required, and performance of the HOPWA requirements will be secured by a Deed of Trust and other loan
documents;
3. The loan shall be subordinate only to construction/permanent financing for the project;
4. No interest will be charged on the loan unless Samaritan House defaults under the terms of the loan documents or the contract;
5. Loan term to commence on date of execution of loan documents and end at the termination of the three year performance period;
6. Loan will be forgiven if all HOPWA requirements and terms and conditions of the loan documents and contract have been met;
7. Units must remain affordable in accordance with the contract and federal requirements during the three year performance period; and
8. Samaritan House must provide on -site tenant supportive services during the performance period as detailed in the contract.
The expenditure of HOPWA funds is conditioned uaon the followina:
1. Satisfactory completion of an environmental review, pursuant to 24 CFR Part 58;
2. Receipt of authorization to use grant funds from HUD; and
3. Completion of the project by April 30, 2022.
Staff recommends that City Council approve amendments to the City's 2019-2020 Action Plan, and authorize the expenditure of $200,000.00 in
HOPWA funds for the rehabilitation of the Single Room Occupancy Facility. A public comment period on the change in use of these HOPWA funds
was held from March 5, 2021 to April 5, 2021. Any comments are maintained by the Neighborhood Services Department in accordance with
federal regulations.
The Action Plan funding years selected may vary and be substituted based on the principle of first in, first out (FIFO) in order to expend oldest grant
funds first. The funds may be used for any eligible costs related to this project.
The rehabilitation funded through this loan will help provide stable housing and supportive services to individuals who are HIV/AIDS positive in the
City who are at -risk for homelessness and in need of these vital services to ensure their wellbeing. The City's contract and loan documents will
ensure that that public purpose will be carried out.
The project is located in COUNCIL DISTRICT 9.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations and the execution of the agreement, funds will be available in
the current operating budget, as appropriated, in the Grants Operating Federal Fund. Neighborhood Services (and Financial Managment
Services) will be respponsible for the collection and deposit of funds due to the City. Prior to an expenditure being incurred, the Neighborhood
Services Department has the responsibility to validate the availability of funds. This is a reimbursement grant.
Submitted for City Manager's Office by. Fernando Costa 6122
Originating Business Unit Head: VictorT. Turner 8187
Additional Information Contact: VictorT. Turner 8187