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HomeMy WebLinkAboutOrdinance 25252-12-2021 ORDINANCE NO. 25252-12-2021 AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE GRANTS OPERATING FEDERAL FUND, IN THE AMOUNT OF $10,537,030.00, FOR THE PURPOSE OF FUNDING THE CITY'S 2021-2022 ANNUAL ACTION PLAN FOR HOMELESS ASSISTANCE; PROVIDING FOR A 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 2021-2022 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$10,537,030.00, for the purpose of funding the City's 2021-2022 Annual Action Plan for homeless assistance. 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 shallbe and remain in full force and effect. SECTION 3. That this ordinance shall be cumulative of Ordinance 25073-09-2021 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in which instance said conflicting provisions ofsaid prior ordinances and appropriations are hereby expressly repealed.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 F/ 7<� 4 7a`J`d2 e S - Jannette S.Goodall(Dec 16,202107:16 CST) Assistant City Attorney Jannette S. Goodall FORr�o ADOPTED AND EFFECTIVE: December 14,2021 U• 2 TEXP►S City of Fort Worth, Texas Mayor and Council Communication DATE: 12/14/21 M&C FILE NUMBER: M&C 21-0968 LOG NAME: 19NS PROPOSED HOME-ARPA ALLOCATION PLAN SUBJECT (ALL)Approve a Substantial Amendment to the City's 2021-2022 Annual Action Plan for the Use of Federal Grant Funds in the Amount of $10,537,030.00 to be Awarded by the U.S. Department of Housing and Urban Development from the American Rescue Plan Act of 2021 Home Investment Partnerships Program;Authorize Amendment to Citizen Participation Plan to Reduce Public Comment Period for American Rescue Plan Act of 2021 Related Activities from Thirty Days to Fifteen Days; and Adopt Attached Appropriation Ordinance RECOMMENDATION: It is recommended that City Council: 1. Approve a substantial amendment to the City's 2021-2022 Annual Action Plan for the use of Federal Grant funds in the amount of $10,537,030.00 to be awarded by United States Department of Housing and Urban Development from the American Rescue Plan Act of 2021 HOME Investment Partnerships Program, 2. Authorize amendment to the Citizen Participation Plan to reduce public comment period for American Rescue Plan Act of 2021 related activities from thirty days to fifteen days and, 3. Adopt attached appropriation ordinance increasing estimated receipts and appropriations in the Grants Operating Federal Fund,in the amount of$10,537,030.00,for the purpose of funding the City's 2021-2022 Annual Action Plan for homeless assistance. DISCUSSION: The American Rescue Plan Act(ARPA)of 2021 provides$5 billion for homeless assistance through the HOME Investment Partnership Program. The City of Fort Worth (City)received$10,537,030.00 in HOME-ARPA.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. Groups consulted: 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 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 Coronavirus Aid, Relief and Economic Security Act funds,there has been a significant increase in funds available for rental assistance and services. Tarrant County Homeless Coalition 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 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, Tarrant County Homeless Coalition has requested that the City as well as Tarrant County and the City of Arlington allocate all HOME-ARPA funds to the development of permanent supportive housing to support community efforts to end chronic homelessness.At this time, neither Tarrant County nor the City of Arlington have allocated HOME-ARPA funds to the development of permanent supportive housing. Staff is recommending that all City HOME-ARPA funds be allocated to the development of permanent supportive housing. Proposed use of HOME-ARPA funding: Use Funding Development of at least 125 units o permanent supportive housing $8,956,476.00 Administration $1,580,554.00 TOTAL $10,537,030.00 In an effort to streamline processes and hasten development,the City can issue a Notification of Funding Availability with three different funding sources: HOME-ARPA, Directions Home capital and Fort Worth Housing Finance Corporation funds that were previously allocated for permanent supportive housing.There is a required private foundation match for FWHFC funds of$2.55 million. Proposed funding for Notice of Funding Availability: j Capital Funding Sources Funding for permanent supportive housing i Directions Home capital $1,262,801.00' Fort Worth Housing Finance Corporation $2,550,000.00 HOME-ARPA $8,956,476.004 TOTAL Notice of Funding Availability i I Funds $12,769,277.00; Foundation Match for FWHFC $2,550,000.0Q Total Community Investment $15,319,277.00' The competitive Notice of Funding Availability process will be used to select developers to create a total of at least 125 units of permanent supportive housing 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 permanent supportive housing and end chronic homelessness,staff is recommending that the Notice of Funding Availability establish a goal for completion of all projects as of December 2023. All projects will be subject to Housing and Urban Development Department-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 recommendation is to submit the HOME-ARPA allocation plan to Housing and Urban Development Department and then release a Notice of Funding Availability with all HOME-ARPA funds and other sources to produce at least 125 units of permanent supportive housing. Proposed Timeline: Received HOME-ARPA Grant Agreement September 23 Consultation Meetings October Presentation to Community Developments November 10 Council i Public Notice published November 28 i Consultation letters mailed November 29 i HOME-ARPA Allocation Plan posted to City November 29 website I j 15 day public comment period begins j November 29 i i Community Development Council —'December8 Request for Allocation Plan approval Public Comment Period Ends December 13 M&C to City Council—Request for December 14 Allocation Plan approval i Submit allocation Plan to Housing and December 19 Urban Development Department Notice of Funding Availability published January 2022 I I Review/Scoring of Proposals March 2022 i Approval of Funding Allocation Awards— City Council and FHFC April 2022 W A Form 1295 is not required because: This contract will be with a governmental entity,state agency or public institution of higher education:United States Department of Housing and Urban Development FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendations,execution of the agreement 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(and Financial Management Services)will be responsible for the collection and deposit of funds due to the City. Prior to an expenditure being incured,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: Victor Turner 8187 Additional Information Contact: Sharon Burkley 5785 Sean Stanton 5811 Expedited