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HomeMy WebLinkAboutOrdinance 12475rr ORDINANCE NO ~/~ AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE GRANTS FUND IN THE AMOUNT OF $2,667,169.00 FOR THE PURPOSE OF FUNDING THE 1996 HOME PROGRAM THROUGH A GRANT FROM THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, 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 1. That in addition to those amounts allocated to the various City departments fox the Fiscal Year 1995/96 and in the ~-~---.Budget of the City Manager, there shall also be increased estimated receipts and appropxiations in the Grants Fund in the amount of $2,667,169.00 for the purpose of funding The 1996 Home Program through a grant from the U.S. Depart ment of Housing and Urban Development Department. 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 xemain in full force and effect. SECTION 3. That this ordinance shall be cumulative of Ordinance No. 12074 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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 from and after the date of its passage, and it is so ordained. APPROVED AS TO FORM AND LEGALITY ~a~ Assistanrrt Citpy Attorney ~~V'/~ Date ~./ _ q _ ~ Adopted Effective ,, _._ City of Fort Worth, Texas Mayor and Council Communication NUMBER PAGE 04/09/96 **G-11447 05HOME 1 of 5 SUBJECT APPROPRIATIONS ORDINANCE AND APPLICATION FOR THE FY 1996 HOME PROGRAM RECOMMENDATIONS It is recommended that the City Council authorize the City Manager to 1 Submit a grant application under the HOME Program, accept the grant, and execute a contract in the amount of 52,411,000 00 with the U S Department of Housing and Urban Development (HUD), and 2 Certify that the activities to be funded with HOME funds are consistent with the City of Fort Worth's proposed Consolidated Plan, and 3 Adopt an appropriations ordinance increasing estimated receipts and appropriations in the Grants Fund by 52,667,169 00 from increased revenues, and 4 Authorize the use of 5105,300 00 from the Radisson Parking Garage project as the City's cash match, and 5 Transfer 5105;300 00 from the Radisson- Parking Garage project to the 1996 HOME Program project, and 6 Authorize the use of 570,245 00 in City-owned properties, at appraised value, and 580,624 00 in appraised value of Spanish Gates as City's in-kind match An increase above this amount in in-kind properties will likewise reduce the City's cash match requirement, 7 Apply indirect cost rate in accordance with the City's Administrative Regulation 3-15 (9 82%, or the approved updated rate as it becomes available) DISCUSSION The HOME Program was created by the Cranston-Gonzales 1990 National Affordable Housing Act The basic purposes of the program are to 1) expand the supply of decent, safe, and sanitary housing for low-income households, and 2) promote the development of partnerships among local governments, private industry, and non-profit organizations A Eligible Activities -The following types of activities are eligible for funding under the HOME Program 1 Moderate Rehabilitation -the rehabilitation of owner-occupied or rental units at a cost of less than 525,000 per unit. 2 Substantial Rehabilitation -the rehabilitation of owner-occupied or rental units at a cost of 525,000 or more per unit 3 Acquisition and Rehabilitation -assistance with the purchase and rehabilitation of units for homebuyers and renters 4 Acquisition without Rehabilitation -assistance with the purchase of single family or multi-family units for homeownership or for rent 5 Rental Assistance -the payment of a portion of aloes-income family's rent 6 New construction for homeownership or for rent Printed on Recyded Paper City of Fort Wordy Texas Mayor and Council Communication DATE 04/09/96 NUMBER **G-11447 PAGg 05HOME I 2 of 5 SIIBJECT APPROPRIATIONS ORDINANCE AND APPLICATION FOR THE FY 1996 HOME PROGRAM B Allocation of HOME Funds -Based on last year's allocation, Fort Worth is expecting to receive a total HOME allocation for FY 1996 of 52,411,000 to be distributed as follows Amount Percent Estimated No. Of Units Community Housing Development Organizations (CHDOs) 5 482,200 20% 25 City of Fort Worth 1,928,800 80% 164 Total 52,411,000 100% 189 1 CHDO Allocation - A Community Housing Development Organization (CHDO) is a non- profit organization (as defined in Section 501(c) of the Internal Revenue code) which has a Among its purposes the development of affordable housing for low-income families, b One-third of its board's membership considered low-income or residents of low- income neighborhoods, or elected representatives oflow-income neighborhood organizations, c A formal process to receive input from low-income program beneficiaries about decisions regarding the provision of housing, d A demonstrated capacity through existing or hired staff and/or technical assistance from an experienced consultant, and e Served the community for a period of at least one year The HOME Program requires a Participating Jurisdiction (PJ) to set aside 15% of its total allocation for CHDOs This will constitute the City's CHDO Program Fund to finance the acquisition, rehabilitation, or construction of single or mufti-family housing units for low to moderate income families and to also fund home purchase assistance including second mortgages and closing costs In addition, a PJ may also set aside a maximum of 5% of its total allocation for CHDO operating expenses This fund, coupled with technical assistance from City staff, is designed to get more organizations to qualify as CHDOs and encourage existing CHDOs to expand This is in line with the City Council's objective of building the capacity of non-profit organizations that will enable them to better help the City in building strong neighborhoods, developing a sound economy, and providing a safe community There are currently four active certified CHDOs in the City Ability Resources, Inc ,Liberation Community, Inc ,Neighborhood Housing Services, and Tarrant County Housing Partnership Printed on Recyded Paper f City of Fort Worth, Texas Mayor and Council Communication DATE REFERENCE NUMBER LOG NAME PAGE 04/09/96 **G-1447 ~ 05HOME 3 of 5 SUBJECT APPROPRIATIONS ORDINANCE AND APPLICATION FOR THE FY 1996 HOME PROGRAM A request for proposal (RFP) will be issued to the CHDOs for the use of the Program and Support Funds for projects that are consistent with the priorities in the Consolidated Plan The CHDO allocation is proposed as follows Amount Percent Estimated No. Of Units Program Fund 5361,650 75% 25 Support Fund 120,550 25°l0 _ Total 5482,200 100% 25 2 Citv of Fort Worth's Allocation - The City's allocation is proposed to be used for the following activities a Administration -HOME allows a jurisdiction to set-aside 10°l0 of its allocation for administration This will cover the cost of planning, administering, operating, and monitoring HOME funded programs to insure compliance with HUD and City policies and regulations b Homeownership Programs -The objectives of these programs are to assist low- income households achieve homeownership and revitalize neighborhoods HOME funds will support the following programs 1) Model Blocks - In conjunction with Community Development Block Grant (CDBG) and HOPE 3 funds, the HOME program will finance acquisition, rehabilitation, second mortgages and/or closing costs in assisting low- income families buy homes in the Model Blocks 35% of City Funds will be allocated for Model Blocks 2) Housing Finance Corporation (HFC) Infill Program -HOME funds will finance soft second mortgages and closing costs for buyers of new homes built on City-owned lots in model blocks, federal target areas and designated building areas 6% of City funds will be allocated here 3) Closing cost assistance for low income homebuyers city-wide 16% of City funds will be allocated for closing cost assistance HOME funds for activities 2) and 3) above will supplement any carryover funds from the current year which have been designated for these activities Printed on Regded Paper 1~ City of Fort Worth, Texas Mayor and Council Communication DATE REFERENCE NUMBER LOG NAME PAGE 04/09/96 ~ **G-11447 05HOME 4 of 5 SUBJECT APPROPRIATIONS ORDINANCE AND APPLICATION FOR THE FY 1996 HOME PROGRAM c Multi-Family Housing Program - This program, in conjunction with Rental Rehabilitation and CDBG funds, will provide low interest loans to help housing sponsors - non-profit or for-profit - finance pre-development, acquisition, rehabilitation, reconstruction, or new construction of rental properties 30% of City funds will be allocated for this purpose This will expand the availability of decent rental units that are affordable to very low and low-income families, the income groups exhibiting the greatest need for housing assistance The 1990 census indicates that 78% of the families in these groups had- housing problems and 74% spent more than 30% of their income on housing The proposed allocation for these activities is as follows Estimated Amount No. Of Units Program Administration $241,100 NA Homeownership Programs Model Blocks 680,000 15 HFC Infill Housing 122,000 10 Closing Cost Assistance 300,000 100 Multi-Family Housing 585,700 39 TOTAL 51,928,800 164 It should be noted that a substantial portion of the funds allocated to the City are subcontracted to other organizations, non-profit and for-profit, including organizations addressing the need of the homeless and special populations for transitional and permanent housing In recent years, these organizations included the Tarrant County Housing Partnership, Inc , Liberation Community, Inc , Neighborhood Housing Services, Mental Health Housing Development Corp , Fort Worth Housing Authority, Art Space, and Cornerstone C Local Matching Requirements -The required local match is 25% of the amount allocated for new construction, rehabilitation and acquisition of standard housing However, 50% of the matching requirement is being waived based on the distressed economic situation in Fort Worth as determined by HUD The matching requirement for FY 1996 with the 50% waiver is 5256,169 which will consist of the following Printed on Recyded Paper City of Fort Wordy Texas Mayor and Council Communication DATE REFERENCE NUMBER LOG NAME PAGE 04!09/96 **G-11447 05HOME 5 of 5 SUBJECT APPROPRIATIONS ORDINANCE AND APPLICATION FOR THE FY 1996 HOME PROGRAM Appraised Value of Spanish Gates S 80,624 Program Income from Radisson Hotel 105,300 Value of Properties to be Donated by the City to the Housing Finance Corporation and other non-profit organizations for low income housing 70,245 Total $256,169 D Consistency with the Consolidated Plan -The estimated total number of units that will be acquired, rehabilitated or built with the FY 1996 HOME funds is 189 HOME will leverage private funding in the form of non-federal funds, homeowners' and private developers` equity, and loans from financial institutions The proposed 1996 HOME Program is consistent with the City's Consolidated Plan (CP) and will be incorporated -in the City's 1996 Annual Plan This application was approved by the Safety and Community Development Committee at its March 14, 1996 meeting FISCAL INFORMATION/CERTIFICATION , The Director of Fiscal Services certifies that upon approval and execution of the above recommendations, the funds for this agreement will be available in the current operating budget, as appropriated, of the Grants Funds The Closing Cost Assistance Program is available in all Council Districts Most of the programs will, however, be focused on the HUD- eligible areas which include Council Districts 2, 5, 7, 8, and 9 RG a Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) (5) GR7b 488376 005206107000 $105,300.00 APPROVED Libby Watson 6183 (3) GR76 451727 005206107000 $2,667,169.00 GIT Y GO UNCil. Originating Department Head: (3) GR76 Various 005206107010 $2,667,169.00 ~1~~ 9 Jerome Walker 7537 (from) (5) GR76 442216 005206948000 $105,300.00 Git S ~~ p ecresttrq For Additional Information City of Fort ErJozth, ~R7L~ Contact: Jerome Walker 7537 Printed on Recyded Paper