HomeMy WebLinkAbout(0168) M&C 21-0968City of Fort Worth,
Mayor and
Texas
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 of
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:
Capital Funding Sources
Funding
for permanent supportive housing
Directions Home capital
$1,262,801.00
Fort Worth Housing Finance Corporation
$2,550,000.00
HOME-ARPA 11
$8,956,476.00
TOTAL Notice of Funding Availability
$12,769,277.00
Funds
Foundation Match for FWHFC IF
$2,550,000.00
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 Development
November 10
Council
Public Notice published
November 28
Consultation letters mailed
November 29
HOME-ARPA Allocation Plan posted to City
November 29
website
15 day public comment period begins
November 29
Community Development Council —December
Request for Allocation Plan approval
Public Comment Period Ends
December 13
M&C to City Council — Request for
December 14
Allocation Plan approval
Submit allocation Plan to Housing and
December 19
Urban Development Department
of Funding Availability published IIJanuary 2022
of Proposals JIMarch 2022
proval of Funding Allocation Awards — April 2022
✓ Council and FWHFC
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 bT. Fernando Costa 6122
Originating Business Unit Head: Victor Turner 8187
Additional Information Contact: Sharon Burkley 5785
Sean Stanton 5811
Expedited