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HomeMy WebLinkAboutOrdinance 13593~- ., - _ ,. Ordinance No ~~ AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND. APPROPRIATIONS IN THE SPECIAL TRUST FUND IN THE AMOUNT OF $30,000 00 FROM AVAILABLE FUNDS FOR THE PURPOSE OF FUNDING THE HOUSING COUNSELING PROGRAM, PROVIDING FOR A SEVERABILITY CLAUSE, MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES AND REPEALING ALL 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 I That in addition to those amounts allocated to the various City departments for the Fiscal Year 1997-98 and in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Special Trust Fund in the amount of $30,000 00 from available funds for the purpose of funding the Housing Counseling Program SECTION 2. 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. 13111 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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 and be in full force and effect and after the date of its passage, and it is so ordained. APPROVED AS T`O FORM AND LEGALITY (iQ ~ ~~ Assistant City Atto ey Date I ~Z9 :~~ Adopted Effective City of Fort Worth, Texas ~1~Ayor And Caunc~l IC,ammun~cAt~an DATE REFERENCE NUMBER LOG NAME PAGE 9~29~98 **G-12337 05HCP 1 of 3 SUBJECT HOUSING COUNSELING PROGRAM DESIGN AND AUTHORITY TO RECEIVE PRIVATE DONATIONS RECOMMENDATION It is recommended that the City Council 1 Approve the attached Housing Counseling Program (HCP) Design, and 2 Authorize the City Manager to seek and receive private donations and/or reimbursement of costs for services from lenders and other private sources, and 3 Accept a donation of $5,000 to the HCP from Frost Bank, and 4 Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Special Trust Fund for the HCP by $5,000 from available funds. DISCUSSION Since 1994, the City of Fort Worth Housing Department has been conducting home ownership training and counseling for first time home buyers as part of its home ownership program Last year, 1,174 clients were recipients of housing counseling services In December 1997, the Housing Department was certified by the U S Department of Housing and Urban Development (HUD) as a Housing Counseling Agency As a result of certification, the program will be enhanced and expanded into a full service Housing Counseling Program (HCP) The additional program activities will include the following 1 Intensify community outreach and education on fair housing and available housing programs The objectives are to • Reach more potential home buyers, particularly among low income and minority populations who have been underserved, and Generate more lender participation in providing affordable home ownership opportunities Recent studies (e g ,the Consumers' Union and the Fort Worth Human Relations Commission) indicate that discriminatory lending practices still exist in this area, and Make more households aware of the various housing programs available through the City, nonprofit organizations and the private sector, and how to access these programs ' ~ City of Fort T~' rth, Texas M,'Ayor And Counc;l ~'ommun~catian DATE REFERENCE NUMBER' LOG NAME PAGE 9/29/98 **G-1'2337 05HCP 2 of 3 suB~ECT HOUSING COUNSELING PROGRAM DESIGN AND AUTHORITY TO RECEIVE PRIVATE DONATIONS 2 Provide information on tenant and landlord rights and responsibilities and rental housing assistance programs The 1990 Census showed that 84% of renters pay more than 30% of their income for housing (HUD's benchmark of rental affordability) Rental units in many central-city neighborhoods are not properly maintained, which contributes to neighborhood deterioration Educating more tenants and landlords about their respective rights and responsibilities will help toward improving tenant-landlord relations and the quality of rental housing Information on rental housing assistance programs is important in assisting low income households to access existing programs, particularly private developments that are assisted by government programs such as low income housing tax credits, rental rehabilitation programs and tax abatements. 3 Provide follow-up and mortgage default counseling Many first time home buyers need follow-up training to ensure that they maintain their homes, pay their mortgages on time and learn how to be good neighbors. These factors are important in promoting neighborhood stability Mortgage delinquency and default counseling are also needed for existing. home owners with home improvement loan amortizations with the City or private lenders. 4 Promote greater networking and coordination among various for-profit and nonprofit organizations in order to provide more efficient and high quality housing counseling and training services to home buyers, existing home owners and renters. In order to cover the cost of expansion of the program, the Housing Department proposes to raise additional funds through donations or cost reimbursements from private lenders and other organizations Frost Bank has committed to the first donation of $5,000 Several other banks have indicated interest in donating funds or contributing towards the cost of the program These include lenders who have entered into voluntary settlement agreements with HUD, resulting from the City's Human Relations Commission's findings on discriminatory practice Additionally, HUD certified counseling agencies are eligible to apply for funding under HUD's Housing Counseling Program The City Council authorized the City Manager to submit an application to HUD under its 1998 program for $100,000 and to receive the funds, if offered (M&C G-12214, May 26, 1998) No funding awards have been announced as of this date The Housing Counseling Program is available in all Council Districts. This recommendation was approved by the Safety and Community Development Committee at its September 8, 1998 meeting City of Fort Worth, Texas M'Ayar And C~uncit CommunicAt~on DATE REFERENCE NUMBER LOG NAME PAGE 9/29/98 **G-12337 05HCP 3 of 3 SUBJECT HOUSING COUNSELING PROGRAM DESIGN AND AUTHORITY TO RECEIVE PRIVATE DONATIONS FISCAL INFORMATION/CERTIFICATION The Finance Director certifies that upon adoption of the attached appropriation ordinance, and receipt of funding, funds will be available in the current operating budget, as appropriated, of the Special Trust Fund LW k Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) FE72 488100 005539000000 $5,000 00 APPROVED Libby Watson 6183 CITY COUNCIL Originating Department Head: SEP 29 ~ Jerome Walker 7537 (from) FE72 539120 005539000000 $5,000.00 ~ Additional Information Contact: ° ' ` °'"~"`J CitSr• Secretary of th® ..ity oP F©rt'Vildx•th, Texas Jerome Walker ~1,p~,te~ ~xdt~anc~. ~~. ~'-~