HomeMy WebLinkAboutIR 10718 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10718
•";T December 7, 2021
To the Mayor and Members of the City Council
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16,s SUBJECT: PROPOSED HOME-ARPA ALLOCATION PLAN
The purpose of this Informal Report is to provide the proposed funding allocation plan for HOME Investment
Partnerships Program (HOME) American Rescue Plan Act of 2021 (ARP) funds received from the United States
Department of Housing and Urban Development (HUD), which provides $5 billion for homelessness assistance and
assistance to other vulnerable populations with the goal of reducing homelessness and increasing housing
stability. The City of Fort Worth received $10,537,030 in HOME-ARP. These funds can be used to serve: those
experiencing homelessness, those at risk of experiencing homelessness and other vulnerable populations. Eligible
activities are housing, rental assistance, supportive services, and non-congregate shelter.
The City consulted with many different stakeholders, as required, in developing an allocation plan, including the
Tarrant County Continuum of Care, homeless and domestic violence service providers, veterans' groups, public
housing agencies, public agencies that address needs of qualifying populations, and organizations that address fair
housing, civil rights and the needs of persons with disabilities as well as the general public. The City also evaluated
data reports and sent letters to community stakeholders, including other municipalities, homeless service
providers, and neighborhood associations, seeking input on the plan.
Consensus emerged that the biggest need in the City currently is physical units for the chronically homeless.
Agencies shared that because of federal COVID funds, there has been a significant increase in funds available for
rental assistance and services, but there has not been a similar increase in the amount of physical units available.
For example, the Tarrant County Homeless Coalition (TCHC) pointed out that in October, there were
approximately 500 people experiencing homelessness with rental assistance trying to find a unit.
Organizations cited the success of permanent supportive housing (PSH) projects, such as Casa de Esperanza and
New Leaf, at being able to quickly house the most vulnerable through a single site project with onsite services.
Based on system needs and goals, TCHC has requested that the City, Tarrant County, and the City of Arlington
allocate all HOME-ARP funds to the development of PSH units to support community efforts to end chronic
homelessness. At this time, neither Tarrant County nor the City of Arlington have committed any HOME-ARP
funds to the development of PSH.
Staff is recommending that all City HOME-ARP funds be allocated to the development of PSH.
Proposed use of HOME-ARP funding:
Use Funding
Development of at least 125 units of permanent supportive housing $8,956,476
Administration $1,580,554
TOTAL $10,537,030
In an effort to streamline processes and hasten development, staff recommends issuing a competitive Notification
of Funding Availability (NOFA) with three different funding sources: HOME-ARP, Directions Home capital funds,
and Fort Worth Housing Finance Corporation (FWHFC) funds that were previously allocated for PSH. There is a
required private foundation match for FWHFC funds of$2.55 million.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10718
Nf�Ve December 7, 2021
To the Mayor and Members of the City Council
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Page 2 of 2
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SUBJECT: PROPOSED HOME-ARPA ALLOCATION PLAN
Proposed funding for NOFA:
Capital Funding Sources for PSH Funding
Directions Home capital $1,262,801
Fort Worth Housing Finance Corporation $2,550,000
HOME-ARP $8,956,476
TOTAL NOFA Funds $12,769,277
Foundation Match for FWHFC Funds $2,550,000
Total Community Investment $15,319,277
The competitive NOFA process will be used to select developers to create a total of at least 125 units of PSH
through construction or renovation. Developers will be required to comply with certain restrictions, including
affordability restrictions, throughout the compliance period. The compliance period is a minimum of 15 years or
the length of the housing assistance program (if applicable). Funds must be fully expended by September 30,
2030. However, because of the urgency to develop PSH and end chronic homelessness, staff is recommending
that the NOFA establish a goal for completion of all projects as of December 2023. All projects will be subject to
HUD-required underwriting to ensure financial viability over the 15-year (or longer) compliance period. Proposals
will be scored based on capacity and experience of the developer, location of the proposed project relative to
services and transportation, and financial feasibility of the proposed project budget.
Staff's recommendation is to submit the HOME-ARP allocation plan to HUD and then release a NOFA with all
HOME-ARP funds and other sources to produce at least 125 units of PSH.
Proposed Timeline:
Received HOME-ARP Grant Agreement September 23
Consultation Meetings October
Presentation to Community Development Council November 10
Public Notice published November 28
Consultation letters mailed November 29
HOME-ARP Allocation Plan posted to City website November 29
15 day public comment period begins November 29
Community Development Council—Request for Allocation Plan approval December 8
Public Comment Period Ends December 13
M&C to City Council—Request for Allocation Plan approval December 14
Submit allocation Plan to HUD December 19
Notice of Funding Availability(NOFA) published January 2022
Review/Scoring of Proposals March 2022
Approval of Funding Allocation Awards—City Council and FWHFC April 2022
For more information, please contact Neighborhood Services Department Senior Planner Sharon Burkley at
Sharon.Burkley@fortworthtexas.gov or Directions Home Manager Tara Perez at Tara.Perez@fortworthtexas.gov.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS