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HomeMy WebLinkAboutOrdinance 15987. ° ~; Ordinance No /~J r if AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE GRANTS FUND IN THE AMOUNT OF $413 482.00 SUBJECT TO EXECUTION OF THE AMENDED HOME GRANT FROM THE U S DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR THE PURPOSE OF FUNDING THE AMERICAN DREAM DOWNPAYMENT INITIATIVE ALLOCATION TO THE CITY OF FORT WORTH MAKING THIS ORDINANCE CUMULATIVE OF PRIOR 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 2003- 2004 and in the Budget of the City Manager there shall also be increased estimated receipts and appropriations in the Grants Fund in the amount of $413 482.00 subject to execution of the amended HOME grant with the U S Department of Housing and Urban Development for the purpose of funding the American Dream Downpayment Initiative allocation to the City of Fort Worth. 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 shall be and remain in full force and effect. SECTION 3 That this ordinance shall be cumulative of Ordinance No 15636 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed SECTION 4 This ordinance shall take effect upon adoption APPROVED AS TO FORMA D LEGALITY 'sistant City Attorney ADOPTED AND EFFECTIVE. ' 1 ~-~~~< ~. `'~ .. PUBLIC COMMENT Requested Date of Publication 4/23/2004 The City of Fort Worth is seeking PUBLIC COMMENT beginning Apri123 2004 on the receipt of funds from the U S Department of Housing and Urban Development (HUD) under the American Dream Downpayment Initiative (ADDI) Grant. ADDI funds may only be used for down payment assistance towards the purchase of single family housing by low income families (households with incomes at or below 80% of area median income as determined by HUD) who are first-time homebuyers. Eligible project cost include acquisition cost and related reasonable and necessary costs, rehabilitation (up to a maximum of 20% of the allocation for FY 2004 and subsequent years) and administration (for FY 2003 only up to 10% of the allocation) To obtain further information or submit comments, citizens may waste City of Fort Worth Housing Department (Attn. Charles Cumby), 1000 Throckmorton Street, Fort Worth, Texas 76102, Fax 817 392 7328 or call Charles Cumby 817 392 7337 or Bea Cura 817 392-8036 You may also log on to the City's homepage at http.//www.ci.fort worth.tx.us Comments must be received by May 25 2004 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION Approved on 5/25/2004 Ordinance No 15987 DATE Tuesday May 25 2004 LOG NAME. 05ADD1 REFERENCE NO *G-14366 SUBJECT American Dream Downpayment Initiative Allocation RECOMMENDATION It is recommended that the City Council 1 Authorize the City Manager to accept an amendment to the HOME grant from the U S Department of Housing and Urban Development (HUD) in the amount of $413 482 for the American Dream Downpayment Initiative (ADDI) allocation to the City of Fort Worth as follows -FY 2002 2003 -FY 2003-2004 Homebuyers Assistance Total $ 189 612.00 $ 223 870 00 $ 413 482.00 2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Grants Fund by $413 482 in the existing HOME grant; and 3. Amend the City's FY 2003 and 2004 HOME budget as shown and 4 Amend the City's Consolidated Plan for FY 2003 and FY 2004 to reflect the addition of ADDI funds and activities and modification to the HOME budget for the same fiscal years. FY-2002-2003 Budgeted Proposed Community Housing Development Organization (CHDO) Program Fund $457,200 00 $457,200 00 CHDO Operating Fund $152,400 00 $152,400 00 Model Blocks Program $729 111 00 $729 111 00 Homebuyers' Assistance Program HOME $904 489 00 $733 839 00 ADDI $0 00 $170 650 00 ~` Affordable Housing Development Fund $500 000 00 $670 650 00 Administration $304 800 00 $323 762.00 Total $3 048 000 00 $3,237 612.00 Lo~name OSADDI Page 1 of ~ FY 2003-2004 Budgeted Proposed Community Housing Development Organization (CHDO) Program Fund $452,358 00 $452,358 00 CHDO Operating Fund $217 802.00 $217 802.00 Model Blocks Program $600 000 00 $ 600 000 00 Homebuyers' Assistance Program HOME $1 000 000 00 $776 130 00 ADDI $0 00 $223,870 00 Affordable Housing Development Fund '$745 561 00 $969 431 00 Administration $335 080 00 $335 080 00 Total $3,350 801 00 $3 574 671 00 DISCUSSION Public Law 108-186 signed by the President on December 16 2003 made the ADDI a new component under the HOME Investment Partnerships Program (HOME) starting FY 2003 through 2007 HUD recently notified the City of its ADDI allocation for Fiscal Years 2003 and 2004 amounting to $189 612 and $223 870 respectively for a total of $413 482. ADDI funds may only be used for down payment assistance towards the purchase of single family housing by low-income families (households with incomes at or below 80% of area median income as determined by HUD) who are first-time homebuyers Eligible project costs include acquisition costs and related reasonable and necessary costs rehabilitation (up to a maximum of 20% of the allocation for FY 2004 and subsequent. years) The City currently administers a Homebuyers Assistance Program (HAP) operated:,with HOME funds. Staff proposes to maintain the HAP goals set for this program (175 housing units the current fiscal year) and utilize both HOME .and ADDI program funds The same eligibility and underwriting guidelines will be applied The maximum subsidy under ADDI is 6% of the sales price or $10 000 whichever is greater The HAP program s limit is $14 999 in target areas and $8 500 outside of the target areas. If needed HAP funds will be used to supplement ADDI up to HAP limits To increase the initial HAP goal -would require additional staff and other resources for which no funds are available The HOME funds replaced by ADDI funds in the HAP are proposed to be reallocated to the City's Affordable Housing Development (AHDF) to provide financial assistance to for-profit or nonprofit housing providers and developers directly or through the Fort Worth Housing Finance Corporation s Housing Development .Fund (HDF) The three-year goal for the City's participation in the HDF is $7 5 million from general fund and federal sources. So far the City has contributed only $1 4 million in HOME funds The above recommendations were endorsed by the Housing and Workforce Development Committee at its March 16 2004 meeting The HOME and ADDI-funded Homebuyers Assistance Program is available city-wide Lo~name: OSADDI PaaP. 7 nf'~ FISCAL INFORMATION/CERTIFICATION The Finance Director certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinance funds will be available in the current operating budget, as appropriated of the Grants Fund TO Fund/AccountlCenters FROM Fund/Account/Centers GR76 451727 005206772000 $189.612:00 GR76 539120 005206772220 $170.650.00 GR76 516010 005206772010 $18.962.00 GR76 451727 005206846000 $223.870.00 GR76 539120 005206846220 $223.870.00 Submitted for City Manager's Office by Reid Rector (6140) Originating Department Head Jerome Walker (7537) Additional Information Contact: Jerome Walker (7537) Lo~name OSADDI Page 3 of ~