HomeMy WebLinkAboutIR 8440 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. ,8440
October 15, 2002
a ►""T` � To the Mayor and Members of the City Council
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SUBJECT: Federal Entitlement Grant Program
The purpose of this informal report is to respond to questions raised during the Pre-Council meeting
held on September 17, 2002. The attached information is being provided concerning the City of
Fort Worth Federal Entitlement Grant Programs. The City of Fort Worth Entitlement Grant
Programs consists of the Community Development Block Grant, Emergency Shelter Grant, Housing
Opportunities for Persons with AIDS grant and the HOME Investment Partnership Program. Each
of these grant funds are received by the City of Fort Worth as an annual allocation from the U.S.
Department of Housing and Urban Development (HUD). Five areas will be outlined in this report.
First, the proposed funding priorities are defined. These funding priorities provide the framework for
which funding recommendations to the City Council are developed. Second, a fifteen —year trend
analysis is illustrated, highlighting where Community Development Block Grant funds are allocated
specifically for street repairs and other infrastructure activities. Third, a concern was raised on the
eligibility of funds for sidewalks and sidewalk repairs. Fourth, the status of a City of Fort Worth
proposal to HUD for the HUD 203 K Loan Program is provided. Finally, a breakdown of each
grants administrative budget is provided.
01,111roposed Funding Priorities
The original funding priorities were established and approved by the City Council in 1998. These
same priorities were approved in 2000 by the City Council. These funding priorities were
developed by the Community Development Council in accordance with the City of Fort Worth
Strategic Goals and provide a basis by which funding recommendations are formulated. The
proposed funding priorities are provided for your review and approval. They will be used to develop
funding recommendations for the June 1, 2003 to May 31, 2004 program year.
Youth Programs is defined as programs that offer educational, social, athletic or cultural activities
to youth and provide supportive group programs for youth in order to increase self-esteem and
positive behavior and decrease negative behaviors including youth crime, teen pregnancy and gang
involvement. Programs cannot receive funding from FWISD for similar services. Programs funded
under this priority are public service in nature and count against the 15% statutory limitation.
Examples of programs funded include Boys and Girls Club, Summerbridge and Latin Arts
Association.
Employment Training and Placement is defined as programs that reduce barriers to employment
and increase the number of employed persons by offering training and providing centralized
information that will link job opportunities with qualified applicants. Examples of programs funded
include Women's Center, A-Prep and Job, Inc.
enior Services is defined as programs that offer recreational, social, and physical/mental health
�< ated activities and other services for senior citizens including meals for shut-ins. Examples of
programs funded include Meals on Wheels, NSEAM, and Southside Area Ministries.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8440,
October 15, 2002
0_%kA'Fr'% To the Mayor and Members of the City Council
Page 2 of 5
SUBJECT: Federal Entitlement Grant Program
Neighborhood Revitalization is defined as comprehensive housing and code enforcement
programs that target resources that improve the quality of housing, improve neighborhood
appearance through physical structures, economic stability and citizen empowerment. Examples of
programs include all Housing programs, Habitat for Humanity and REACH, Inc.
Child Care Assistance is defined as programs that provide child care assistance to low- and
moderate — income parents in order for them to attend school and/or receive job training. Examples
of programs include Clayton Childcare, Child Care Associates and YWCA.
Economic Development is defines as programs that provide business assistance and provide
incentives, which would attract major employers as well as small businesses to Fort Worth. These
programs can be in the form of revolving loan programs, bonding assistance and other programs
that provide for commercial opportunities and job creation. Included in this priority are programs
that address corridor revitalization. Examples of programs include the Business Assistance Center
and FWEDC.
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Fifteen —Year Trend Analysis
CDBG regulations allow for funds to be used for the acquisition, construction, reconstruction,
rehabilitation, or installation of public improvements or facilities. Over the last fifteen years, CDBG
funds have been used for an array of activities to include park improvements, alley closures, safety
lighting and sidewalks, public facility improvements, such as the Stop Six Health Clinic and
numerous street projects. During this time period (Junel, 1988 to May 31, 2003) over $103 million
has been received in CDBG funds and over $14 million or 14% has been allocated to these
infrastructure type projects. The attached document provides additional information on the specific
projects funded over the last fifteen years.
Eligibility of Sidewalks
CDBG funds can be used for the installation of sidewalks but not for the repair of sidewalks. The
establishment of a sidewalk matching fund pool can be established and used in conjunction with the
development of new housing within the CDBG eligible areas. Additionally, funding can be allocated
for the installation of sidewalks in CDBG eligible areas where it has been determined that sidewalks
are needed.
HUD 203 (K) Rehab Program
The HUD 203 (K) Rehab program is a loan program established by HUD for the rehabilitation and
r..'"'oair of single family properties. These funds flow from HUD through private lenders. Use of these
,nds would require the Housing staff to prepare work write-ups and serve as construction
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8440.
October .15, 2002
r " To the Mayor and Members of the City Council
A, Page 3 of 5
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SUBJECT: Federal Entitlement Grant Program
managers for owner occupants receiving non-City rehab money under this program. While staff has
the technical expertise to perform these services, there is concern regarding the City's liability or
exposure in the event of a dispute because these are private funds and private owners with the City
of Fort Worth having no financial interest.
Administrative Funds
The City of Fort Worth is mandated by HUD to maintain staff to ensure that all federal funds
received are managed and utilized in compliance with the respective grant program requirements.
For the grant period of June 1, 2002 to May 31, 2003, the city's federal entitlement grant allocation
is $11,980,000. Approximately, 17% of the total entitlement grants amount is allocated for the
administration of the grant programs.
CDBG
Intergovernmental Affairs & Grants Management— 8.15 positions $ 523,397
zse dollars are used to fund positions that provide general oversight including planning,
administration, and monitoring of the four entitlement programs CDBG, ESG, HOME, and HOPWA.
This division also assists with the development of Section 1,08 applications, EDA grant applications,
as well as applications that the City departments apply for in relation to grant funds. This section
insures that the grant funds are serving the persons for which these funds are intended to serve.
2. Housing — 11.26 positions $ 865,701
Fhese dollars are used to fund the Director's Office that includes the Planning, Model Blocks, and
administrative staff and provides overall direction for the department. The Management and
Budget Division are included in this amount. The Management and Budget Division provides the
actual development and oversight of the department's budget, and coordination of all administrative
services to include personnel, purchasing, contract compliance and information systems for the
department. The two program operating divisions are the Rehabilitation and Development Division
which administers the Emergency Repair Program, Cowtown Brush Up Program, Home
Improvement Program, Rental Rehabilitation Program, Infill Housing Program and the state funded
Weatherization program. The Housing Services and Information Division administers the First Time
Homebuyer's Assistance Program, Home Improvement Loans, and the Comprehensive Housing
Counseling Program.
3. Planning — 1.10 positions $ 53,050
These funds are used to fund the Research & Economic Development Team along with the
Development Review & Historic Preservation Team. The Research & Economic Development
�rlll'am provides analysis of economic, demographic, land use, and other data for the CDBG
,jogram. The Development Review & Historic Preservation Team prepares the Section 106
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8440-
October 15, 2002
0-ORTIr%%01 To the Mayor and Members of the City Council
Page 4 of 5
SUBJECT: Federal Entitlement Grant Program
Historic Preservation Clearance for the Environmental Review procedure required for the
expenditure of CDBG funds.
4. Accounting — 0.50 positions $ 25,907
These funds are used by the Accounting Division to provide financial support for the federal
entitlement grants.
5. Internal Audit— 0.68 positions $ 32,120
Fhese funds are used by the Internal Audit Department to perform financial site reviews of agencies
that receive federal funds from the city.
6. Community Development Coordinator— 1.00 positions $ 23,750
These funds are used to support the position, which focuses on the development of businesses
within the central city.
01�P'111 Economic & Community Development— 1.00 positions $ 50,000
,iese funds are used to support a position within the newly created Economic & Community
Development Department, which primarily oversees Commercial Corridor development.
8. Business Assistance Center $ 36,167
These funds are used as a match to support the outreach efforts to market available forms of
technical assistance to M/VVBE businesses in CDBG eligible areas.
9. Southeast Development Plan $ 50,000
These funds are being used in support of the implementation of the Southeast Action Plan for
Economic Development. This is the 3 d and final year of funding this activity.
10. Fair Housing —Analysis of Impediments Study $ 12,000
These funds are being used to assist with the writing of the Analysis of Impediments to Fair Housing
as required by HUD.
HOME
1. Housing Department— 6.5 positions $ 304,800
These funds will cover the cost of planning, administering, operating and monitoring HOME funded
ograms to ensure compliance with HUD and City policies and regulations.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
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INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8440
october 15, 2W2
To the Mayor and Members of the City Council
Page 5 of 6
SUBJECT: Federal Entitlement Grant Program
ESG
1. Contract Management Division — 0.40 positions $ 13,440
These funds will cover the cost of planning, administering, operating and monitoring ESG funded
programs to ensure compliance with HUD and City policies and regulations.
HOPWA
1. Contract Management Division — 0.75 positions $ 23,940
These funds will cover the cost of planning, administering, operating and monitoring HOPWA funded
programs to ensure compliance with HUD and City policies and regulations.
Upon receipt of your approval of the proposed funding priorities staff will begin the request for
f' "posal process. In March, 2003 staff will bring to the City Council budget recommendations that
in accordance with the funding priorities and policies.
Should you have any questions or need additional information, please contact Deidra Emerson at
L'�' (G. "
Gary W. Jackson
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
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