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HomeMy WebLinkAboutOrdinance 13171a ~~ ~- ~d Ordinance No. J~ I AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE GRANTS FUND IN THE AMOUNT OF $4,000,000 00 FROM SUBJECT TO THE RECEIPT OF THE GRANT FROM THE U S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR THE PURPOSE OF FUNDING THE HOMEOWNERSHIP ZONE PROGRAM, PROVIDING FOR A SEVERABILITY CLAUSE, MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES, 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 1 That in addition to those amounts allocated to the various City departments for the Fiscal Year 1996-97 and in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in Grants Fund in the amount of $4,000,000.00 subject to the receipt of the grant from the U S. Department of Housing and Urban Development for the purpose of funding the Homeownership Zone Project. SECTION 2. That should any portion, section or part of a section of this ordinance be declazed 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 all other ordinances and appropriations amending the same except m 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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 TO FORM AND LEGALITY 'S Assis City Attorney ~~t~ ~ ~~ Date -~ Adopted I' ~3-9~ Effecrive ~~ Homeownership Zone Scale 1"=1200' n ~~ City of Fort Worth, Texas 1Vlayor c~n~ Council Communication RE P 09/23/97 G-12011 05HUD 1 of 4 SUBJECT COMPETITIVE GRANT APPLICATION TO THE U S DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR HOMEOWNERSHIP ZONE FUNDING RECOMMENDATION It is recommended that the City Council Authorize the City Manager to submit a competitive grant application to the U S Department of Housing and Urban Development for 54,000,000 00 under the Homeownership Zone Program and accept the grant, if offered, and 2 Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Grant Fund by 54,000,000 00 subject to receipt of the grant, and 3 Certify that the activities to be funded with Homeownership Zone funds are consistent with the City of Fort Worth's proposed'. Pfan DISCUSSION The U S Department of Housing and Urban Development (HUD) recently issued a Notice of Funding Availability (NOFA) of 510 million nationwide for the 1997 Homeownership Zone Program HUD estimates it will fund two to four Homeownership Zones Applications are due September 30, 1997 The Housing Department proposes to submit a competitive grant application to HUD for 54 million for a Homeownership Zone in the City of Fort Worth The area proposed for Homeownership Zone designation is in the Near Southeast, bound on the north by Vickery, on the .south by Rosedale, on the west by I-35, and on the east by Riverside (see map) The City also has. the option to apply for a Section 108 loan to augment resources for the Homeownership Zone program and must submit such within 60 days of submission of the Homeownership Zone application What is a Homeownership Zone? According to HUD, a Homeownership Zone is a contiguous, geographically defined area, primarily residential in character, in which new opportunities and expanded housing choices drive comprehensive revitalization Together with other physical, social and economic development activities must make a substantial, visible improvement within the community HUD is looking at a minimum of 300 units of new homeownership opportunities for each Homeownership Zone The goal is to revitalize distressed areas by converting vacant, abandoned, or blighted land and buildings into a dynamic neighborhood by developing single family homes for families with a mix of incomes The Homeownership Zone will serve as a catalyst for private investment in the neighborhood Printed on Recyded Paper City of Fort 'worth, Texas Macyor and Councir Communication DATE REFERENCE NUI~ffiER LOG NAME PAGE 09/23/97 G-12011 05HUD 2 of 4 SUB3ECT COMPETITIVE GRANT APPLICATION TO THE U S DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR HOMEOWNERSHIP ZONE FUNDING. In accepting applications HUD will be looking for Homeownership Zones which possess the following characteristics 1) Visible Improvement - A proposal must provide for a significant number of new homeownership opportunities that will make a visible improvement in a concentrated area and stimulate additional investments in that area 2) New Urbanism -Homeownership Zones designed according to New Urbanism principles typically have a finite size, defined by a comfortable walking distance from-their center and include - a mix of incomes, ages and lifestyles, - a mix of compatible uses, - a mix of housing types, - buildings with architectural variety, yet compatible with surrounding structures, historic buildings and cultural nature of the area, - a public gathering space at the center, - public buildings such as a library or community center, - a transit connection. providing easy access to centers of employment and to the surrounding communities, and - a network of pedestrian friendly streets 3) Additional Investments -HUD intends for Homeownership Zone grants to serve as a challenge and incentive to other public, private, and nonprofit partners to participate in the development of the zone It is expected that applicants will consider donating land, committing to construct site improvements, and public facilities, waiving fees and taxes, and expediting approval of permits and plans 4) Partnerships and Initiatives - HUD expects that Homeownership Zones will establish extensive partnerships with the private and nonprofit sectors, such as businesses, lending institutions, real estate professionals, builders, educational institutions and faith-based organizations It is also anticipated that developers and local governments will use innovations in construction techniques. and land use planning that can reduce housing construction costs 5) Comprehensive Neiahborhood Revitalization - Homeownership Zones should provide substantial homeownership opportunities as part of a comprehensive approach to an overall revitalization of the neighborhood Consequently, economic development, business development, and job creation are vital components of a successful strategy 6) Rapid Turnaround -HUD intends for Homeownership Zones to be larger scale construction projects developed in a relatively short time period Therefore, it is in the applicant's interest to design, plan and coordinate as many aspects of the project as possible prior to submission of an application Printed on Recyd©d Paper ' City of Fort worth, Texas Mayor and Council Communication DATE REFERENCE NUMBER LOG NAME PAGE 09/23/97 G-12011 05HUD 3 of 4 sv~sJECT .COMPETITIVE GRANT APPLICATION TO THE U S DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR HOMEOWNERSHIP ZONE FUNDING Eligible Activities Homeownership Zone (HZ) grant funds may be used to 1) Finance and acquire real property, 2) Finance housing construction and housing rehabilitation, 3) Finance site preparation, 4) Provide direct financial assistance t 5) Provide homeownership counseling 6) Finance program marketing, 7) Finance project related soft costs, 8) Relocation assistance to persons or 9) Administration of the program not tc o homebuyers, and education, businesses displaced by HZ activities, and ~ exceed 5 % of the grant Whv the Near Southeast? In evaluating applications, HUD will consider such factors as the level of distress in the area, leveraging of other resources, financial soundness, quality of the Homeownership Zone, and capacity of the partnership to successfully carry out the plan Considering this criteria and the characteristics of a Homeownership Zone, staff believes the Near Southeast is a good fit for the following reasons 1) The Historic Near Southeast Model Blocks is located within the boundaries .proposed for the Zone and constitutes more than half of the area The Model Block's Strategic Plan has already been approved by the City Council and the nonprofit involved is approved as a Community Housing Development Organization (CHDO) as welt as a Community Based Development Organization 2) The area is of a manageable size with clearly defined boundaries It presents opportunities for meeting HUD's minimum performance standard of 300 new homeownership opportunities There are roughly 1,000 single family sites in the HZ area A preliminary windshield survey showed there are 436 vacant lots, 1 12 dilapidated homes not suitable for rehabilitation that can be replaced with new homes, and about 100 existing vacant homes that can be acquired, rehabilitated and sold to homebuyers The potential homeowner sites thus total over 600, twice the minimum HUD target of 300 units 3) Choice Homes, a private developer, has recently acquired at auction a number of City- owned properties in that area and purchased privately-owned lots in the area The first house which is already pre-sold will be completed in a few weeks 4) As a Model Blocks neighborhood, this area is also a target area for the City's Homebuyer Assistance Program 5) Habitat for Humanity is already active in providing new housing in the area 6) Economic development initiatives proposed for Evans Avenue, the Guinn School project, and the widening of Rosedale complement the HZ project ?~ Printed on Recyded Paper City of Fort Worth, Texas Mayor and Council Communication DATE NUMBER PAGE 09/23/97 G-12011 05HUD 4 of 4 sUB~ECT COMPETITIVE GRANT APPLICATION TO THE U S DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR HOMEOWNERSHIP ZONE FUNDING 7) The level of distress in this area based on HUD guidelines is among the highest in the City 8) The areas proximity to employment centers, e g downtown, the medical district and 1-35 corridor 9) The neighborhood is also in the Weed and Seed area In order for the application to be more favorably considered by HUD, it is the staff`s belief that a one-to-one commitment on the part of the City is necessary The grant application includes a three year commitment of Home Opportunities Made Easier (HOME) and Community Development Block Grant (CDBG) funds in excess of $3 million to be dedicated toward the project Assuming that the City of Fort Worth continues as an entitlement city throughout the next three years to receive HOME and CDBG funds, staff believes that the proposed commitment to this project can be budgeted each year FISCAL INFORMATION/CERTIFICATION The Director of Fiscal Services certifies that upon adoption of the attached appropriation ordinance and receipt of the grant, funds will be available in the current operating budget, as appropriated, of the Grant Fund LW m Submitted for City Manager's FUNll Office by: (to) GR76 Libby Watson 6183 GR76 Originating Aepartment Bead: _ Jerome Walker 7537 For Additional Tnforntation Contact: Jerome Walker 7537 ACCOUNT I CENTER I AMOUNT 451727 I 005206121000 I $4,000,000.00 539120 005206121010 $4,000,000:00 CITY SECRETARY r( # P1 t ~~~~ ;i' ~ 71.~~ i F i ~, '~_~1 Printod on Regdod Paper