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Home My WebLink About(0010) IR 21-10718 - Proposed HOME-ARPA Allocation PlanINFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10718 To the Mayor and Members of the City Council December 7, 2021 Page 1 of 2 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 To the Mayor and Members of the City Council December 7, 2021 Page 2 of 2 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 $1S,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.Burklev@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