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HomeMy WebLinkAboutIR 7181 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7181 To the Mayor and Members of the City Council April 14, 1987 subject: THIRTEENTH YEAR COMIUNITY DEVELOPMENT BLOCK GRANT BUDGET Attached is the Thirteenth Year Community Development Block Grant (CDBG) Proposed Statement of Objectives and Projected Use of Funds. Once approved, it must be submitted to the U.S. Department of Housing and Urban Development (HUD) before May 1, 1987. The total amount available for CDBG Year XIII (June 1, 1987 through May 31, 1988) activities is $5,766,567. The available funding within the Projected Use of Funds consists of the following: - $5,039,000 Entitlement (basic grant from HUD) ; - $240,000 in program income projected to be generated during. the upcoming year from existing housing loans and the Urban Development Action Grant (UDAG)-funded Hyatt Parking Garage; - $100,000 in current year program income carried forward to CDBG Year XIII; and - $387,567 in reallocation of residual funds. BACKGROUND The total funds available for CDBG Year XIII represent a reduction of $274,593 from Year XII. As a result, several of the proposed activities have been #Pohl reduced from their current year levels. The primary emphasis of the proposed budget is in the area of housing (42.1%), with funding for street assessment payments next (34.7%). BUDGET ISSUES During the budget preparation process, the Community Development Council made several decisions to achieve an equitable, yet balanced budget. The Council may wish to examine these issues in considering their decision: Money for Subcontractor Financial On-site Monitor. Funding for Internal Audit has been included in this budget for the financial on-site monitoring of CDBG subcontractors. Grants Accounting was responsible for this function in past fiscal years. Money for the Street Assessment Program. A large item that could have been used to avoid reductions of up to 30% in some projects is the $2,000,000 set aside for street assessment payments. This is the last increment of a three-year commitment to assist inner city low and moderate income homeowners with street assessment payments. However, the Community Development Council declined to amend this allocation in view of the firm directive from the Council regarding funding for this project. -ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7181_ p.2 ,6 100 To the Mayor and Members of the City Council April 14, 1987 o- - Subject: Money for Housing Programs. Funding for the Home Improvement Loan/Emergency Repair Program, and its staff support, was kept at approximately the current year level , in light of the CDC's ongoing commitment to housing programming. Money for Administration. The allocation for the administration of the CDBG Year XIII activities was reduced from the current 17.9% of the entitlement and program income, to a proposed 14.1% in- Year XIII. Money for Public Services. The percentage of available funding for public services dropped from 12.7% in Year XII, to 6.9% in the upcoming year. Consideration was given to issuing a Request for Proposal for the School-Age Child Care Program in the future. Money for Economic Development Programs. The Fort Worth Economic Development Corporation and the Minority Procurement Program were originally slated for a 30% cut because, unlike the other programs which have experienced reductions in the past, these two projects have remained at the same level for the last four years. However, the CDC decided to partially restore their level of funding. Conside- ration was also given to the possibility of letting a Request for Proposal in this area in the future. The City Council may wish to review this decision. ITEMS FROM THE YEAR XII BUDGET NOT FUNDED IN YEAR XIII A number of programs were not funded in the proposed Year XIII budget. A summary of these follows: - Neighborhood Housing Services Homeownership Administration. Administrative funds were not set aside for this program in Year XIII because of the length of time it has been in operation and the difficulty of making loans in the Polytechnic Area. - City Yo Soy Program. The CDC did not recommend the funding of this project since its job placement services for youth were transferred to the Fort Worth Boys Club. The program will continue through a collaboration of Yo Soy agencies and the Neighborhood Advisory Councils. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No, 7181 P.3 Ap -'� ' ril 14, 1987 To the Mayor and Members of the City Council WE. Subject: Fort Worth Independent School District (FWISD) Yo Soy. The CDC deleted this program and recommended that the FWISD continue this program with other funding sources. Additionally, the FWISD currently operates other similiar projects, such as the School-Community Guidance Center. The City will continue its collaborative efforts with the FWISD. Senior Housing Information System. This program will not expend all of its current year funds and has not requested any new- CDBG funding. Start-up costs for this project have been unexpectedly low and will be covered next year by existing funding sources (First Call for Help, Retired Senior Volunteer Program, and the Area Agency on Aging), and volunteers. SCHEDULE FOR YEAR X111 BUDGET APPROVAL To meet the deadline for submission of the budget to HUD, final City Council approval must occur no later than April 28, 1987. The Community Development Council approved the attached Thirteenth Year Community Development Block Grant Proposed Statement of Objectives and Projected Use of Funds on March 00P61 9, 1987, oug as n City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS CITY OF FORT WORTH YEAR XIII COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FINAL STATEMENT I. STATEMENT OF OBJECTIVES FOR YEAR XIII A. Primary Objective: The primary objective of the CDBG is the development of viable communities by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income. B. Mission Statement: It is the mission of Fort Worth's CDBG program To-work in partnership with the City's low and moderate income residents in their efforts to achieve for themselves and their neighborhoods a self-sustaining, economically viable, quality living environment while preserving the integrity and character of their neighborhoods. C. Goals: The goals of the program are l.- To achieve the self-sustaining revitalization of neighborhoods: 2. To conserve existing structurally-sound housing stock; 3. To increase the quantity and improve the quality of both owner and renter housing available to low and moderate income people; 4. To affirmatively promote equal housing opportunity; 5. To improve those community facilities that contribute to the self-sustaining revitalization of neighborhoods; 6. To promote the affordability of housing for low and moderate income residents; 7. To encourage private sector investment in low and moderate income neighborhoods; 8. To create a more positive image of low and moderate income neighborhoods; 9. To encourage resident involvement in and commitment to their neighborhoods; 10. To achieve economic self-sufficiency of low and moderate income households as a central means of creating viable neighborhoods; 11. �To serve the largest practicable number of low and moderate .,income residents consistent with the achievement of other program goals; and 12. To encourage networking and creative partnership among all sectors of the community. II. FUNDS AVAILABLE AND PROGRAMS FOR YEAR XIII The estimated available funds for YEAR XIII are as follows: Entitlement $5,039 ,000 Program Income Year XIII 240,000 Program Income Year X11 100,000 Reallocation 387,567 TOTAL $5,766,567 Of the total amount available for Year XIII, $4,207,281 or 73% is expected to benefit low and moderate income persons. Chart I describes the programs which will be funded under Year XIII, including the national and local objectives these programs are designed to serve, the amount allocated, and the general location of these programs. The amount allocated in Year XIII for Public Services is 6.9% of entitlement and for Administration, 14.1% of entitlement and Year XIII program income. III. USE OF YEAR XII FUNDS Chart 2 shows the programs funded since the preparation of the Year XII Final Statement. Chart 3 shows the actual expenditure of Year XII funds. Both charts indicate that expenditures for Year XII meet 'both national and local goals. IV. PLAN TO MINIMIZE DISPLACEMENT A. Program Design - The City of Fort Worth has a Relocation Plan adopted by the City Council on November 230 1982 (G-5486) which conforms to federal regulations in the Uniform Relocation and Real Properties Acquisition Policies Act of 1970 . The following is a summary of the Relocation Plan: 1. Housing - For persons to be displaced, a comparable dwelling will be located in a location not subject to unreasonable adverse environmental conditions, natural or man-made; not generally less desirable than the location of the acquired dwelling with respect to public utilities and services, schools, churches, recreation, transportation, and other commercial facilities; and accessible to the displaced person's present or potential place of employment. 2. Ability to Pay - No family or individual will be referred to a comparable replacement unit which exceeds the family's or individual's ability to pay. 3. Business Concerns - The staff will provide relocation advisory assistance, as well as the payment of claims, to all business concerns, non-profit organizations, and farm operations to be displaced. 4. Payment of Claims - Each displacee's payment of claims will be processed individually and each claim will be presented to City Council for approval for disbursement of funds. 5. Right of Appeal - An Appeal Committee shall be appointed by the City Manager, composed of representatives from the Law Department, Planning Department, and the City Manager's Office. However, the final appeal process within the City will be the City Council. 2 Historically, CDBG programs have been designed to avoid displacement. The programs using Year XIII CDBG funds that could 0�1 potentially have direct displacement effects and the specific measures adopted to minimize, if not eliminate, displacement are as follows: 1. Rental Rehab Program - Under this grogram, the property owner is responsible for providing counseling and paying for any moving expenses of renters who may wish to relocate. Renters are provided Sec. 8 certificates to be able to stay in place. 2. Street Reconstruction - Displacement could potentially occur if streets are widened or extended. This problem is given due consideration in the design for these projects. Affected neighborhoods will be kept aware of such projects through public notices in compliance with the environmental review process. Relocation assistance will be given if needed. B. Programs to Assist Households to Stay in Place 1. The home improvement loan and emergency repair programs and the NHS seek to improve the quality of existing housing to assist households who may want to stay in place. 2. Various programs aimed at improving physical conditions and human service delivery in existing low and moderate income areas also serve to help households remain in their neighborhoods. 0001, 3. Through the NRDPt clients wanting to stay in place could be referred to housing and supportive services programs, such as the Home Health Aide, Errand and Assurance, the Senior Housing Options, Project Self-Sufficiency, etc. 4. Households occupying rental rehab units are provided housing certificates to assist them in paying increased rent. C. Displacement Assistance - The City of Fort Worth provides relocation counseling and assistance to households displaced by City action in accordance with the Relocation Plan. Every effort is made to have the Public Housing Authority give these households priority for Section 8 certificates. 3 .APRIL 7, 1987 PROPOSED CDB6-YEAR XIII BUDGET 11 HOUSING 6 HUMAN SERVICES DEPARTMENT CITY OF FORT NORTH COMMUNITY DEVELOPMENT BLOCK GRANT BUDGET JUNE 1, 1987 - MAY 31, 1988 MAXIMUM LIMITS AVAILABLE YEAR 1111 FUNDING I ADMINISTRATION $1,055,800 ENTITLEMENT $5,039,000 It PUBLIC SERVICE $755,850 PROGRAM INCOME 1111 $240,000 PROGRAM INCOME III $100,000 REALLOCATION $387,567 15,766,567 ORI6INAL TOTAL YEAR III PROPOSED YEAR PROJECT «ENTITLEMENT % :AMENDMENT I «ENTITLEMENT I IIIII BUDGET I « ----------------»-----'----------------------'_-_-------------------'----------------------'----------__�__._�__ 1. ADMINISTRATION 1 « « A. GENERAL 1 $83,920 « $15,454 1 $99,374 1 $108,960 « B. CONTRACT ADMINISTRATION 1 $127,894 1 $0 « $127,894 1 $121,264 It C. CLERICAL SUPPORT 1 $25,542 1 $14,203 « $390145 It $32,930 1 D. FISCAL SUPPORT « $74,615 « $50,000 1 $124,615 It $132,924 « E. ADVISORY SUPPORT « $70,177 « $23,872 « $94,049 « $48,028 « F. ACCOUNTING 1 $46,900 « $12,000 « $58,900 « $19,243 1 6. INTERNAL AUDIT 1 $0 « $0 « $0 1 $13,587 « H. H 6 N REVITALIZATION It $181,085 « $28,793 « $209,878 It $126,760 1 HUMAN RESOURCES « $28,277 « $50000 « $33,217 « $19,794 1 __ RESEARCHIECO DEVELOPMENT « $43,015 « $6,207 $49,222 « $30,111 « K. FAIR HOUSING $299316 « f0 « $29,316 $29,316 « L. STREET MONITORING « $0 « $0 « $0 « $59,998 « M. NCTC06 $15,000 « $0 « $15,000 « $0 « « SUBTOTAL « $725,741 17.811 $155,529 19.21« $881,270 17.91« $742,915 14.11It 2. HOUSING « « « « « A. HOUSING STAFF « $4960165 « $0 « $496,165 1 $461,240 « 8. RENTAL REHAB STAFF 1 $0 « $0 « $0 1 $69,410 « C. HIL 1 $840,000 « $500,000 1 $1,340,000 « $1,340,000 « D. EMERGENCY REPAIR 1 $2100000 1 $50,000 « $260,000 1 $310,000 « E. INNOVATIVE HOUSING « $49,958 « $0 « $49,858 1 $50,000 18 F. NEIGHBORHOOD PROJECTS 1 $150000 « $15,000 1 $30,000 « $40,000 « 6. NHS NORTHSIDE « $0 « $0 1 $0 1 $125,000 « H. NHS HOMEONNERSHIP ADMIN « $21,000 1 $0 1 $21,000 $0 « I. NHS REVOLVING LOAN ADMIN 1 $42,000 « $25,000 « $67,000 1 $29,400 « « « 1 1 SUBTOTAL « $1,674,023 32.31« $590,000 68.91« $2,264,023 37.511 $2,425,050 42.111 « 1 1 « 3. PARKS 1 1 « 1 « A. COMO PLAYGROUND 1 $50,000 1 $15,500 « $65,500 1 $0 1 F SUBTOTAL 1 $50,000 1.01« $15,500 1.811 $65,500 1.111 $0 0.0%! « 1 1 1 1 4l�jNITY FACILITIES 1 1 1 1 1 PAGE 1 APRIL T, 1987 PROPOSED CDB6 YEAR 1111 BUDGET 11 HOUSIN6 & HUMAN SERVICES DEPARTMENT A. STREET ASSESSMENTS 41,832,785 f0 $1,832,765 1 $1,834,241 B. IN-HOUSE DESI6N 4167,215 $0 $167,215 1 $105,915 C. STREET STAFF SUPPORT $0 40 44 $59,844 1 { SUBTOTAL $2,000,000 36.611 $0 0.014 42,000,000 33. .1 $2,000,000 34.711 S. PUBLIC SERVICES 4 A. RIVERSIDEISAMUELS SENIOR CENTERS 1 $35,000 $15,000 1 $50,000 $24,500 B. PRE-SCHOOL CHILD CARE $130,000 $0 $130,000 , $130,000 C. NRDP $80,000 $0 $80,040 1 $33,000 1 D. SCHOOL A6E CHILD CARE $145,850 $0 $145,850 $125,000 E. CITY YO SOY $610992 $0 1 $61,992 40 ! F. NEIGHBORHOOD CONFERENCE $5,000 $0 $50000 1 $7,000 6. POLY CHILD CARE $18,000 , $4 418,000 412,600 H. HOMELESS M16HT SHELTER 1 $100,000 1 $0 1 $100,000 $0 I. FNISD YO SOY $0 425,000 $25,000 , $0 J. NSE YOUTH $0 1 $129280 $12,280 $179400 1 K. SENIOR HOUSIN6 INFORMATION SYSTEM $8,623 $0 $89623 , 40 1 SUBTOTAL 1 $584,465 14.011 $52,280 6.1111 $636,745 12.71, $349,500 6.9111# 6. ECONOMIC DEVELOPMENT A. FYEDC 1 $86,931 1 $0 ! $869931 , $70,852 1 B. "PP , $64,000 , 40 1 $64,000 , $60,852 , 1 , 1 SUBTOTAL , $150,931 2.91, f0 0.014 $150,931 2.5111 $131,704 2.31, 7. CONTINGENCY 1 40 1 $42,691 1 $420691 1 $117,398 1 p", 1 1 1 1 1 �"' t f 1 / 1 SUBTOTAL 1 $0 0.01, 142.691 5.014 $42,691 0.711' $117,398 2.011 TOTAL $50185,160 $856,000 $6,041,160 $5,766,567 {OVEWUNDER $0 ADMINISTRATION = 201 OF ENTITLEMENT + YEAR 1111 PR06RAM INCOME. It PUBLIC SERVICE = 151 OF ENTITLEMENT. E $374,558 IS CURRENTLY AVAILABLE FOR INNOVATIVE HOUSIN6. PAGE 2