HomeMy WebLinkAboutOrdinance 11918Ordinance No ~~9 /~
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN
THE GRANTS FUND IN THE AMOUNT OF $2,411,000 00 FOR THE PURPOSE OF
FUNDING THE FISCAL YEAR 1995 HOME 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 1
That in addition to those amounts allocated to the various City departments for
the Fiscal Year 1994-95 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 $2,411,000 00 for the purpose of funding the fiscal year 1995 Home 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 judgement 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 11645 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ordinances and appropriations are hereby expressly repealed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_TO FORM AND LEGALITY
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Date
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Adopted
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Effective
City of Fort Worth, Texas
Mayor and Council Communication
DATE REFERENCE NUMBER LOG NAME PAGE
04/1 1 /95 C-1476 05HOME 1 of 5
SUBJECT FISCAL YEAR 1995 HOME PROGRAM
RECOMMENDATION
It is recommended that the City Council
1 Authorize the City Manager to submit a grant application under the HOME Program, accept
the grant if offered, and negotiate a contract in the amount of x-4-8@ with the U S
Department of Housing and Urban Development (HUD), and .2,~,lJ1,p00 OD
2 Authorize the City Manager to 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 the attached appropriations ordnance increasing estimated receipts and
appropriations in the Grants Fund by 5241,000 00 from increased revenue, and
4 Authorize Fiscal Services Department to establish aFund/Account/Center in the City's
accounting system, and
5 Apply indirect cost rate in accordance with the City's Administrative Regulation 3-15 (apply
the current rate of 1$ 73%, or the approved updated rate as it becomes available)
DISCUSSION
The HOME Program was created with the passage of the Cranston-Gonzales 1990 National
Affordable Housing Act The two 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 greater than 525,000 per unit
3 Acquisition and Rehabilitation -assistance with the purchase and rehabilitation of
units for homebuyers and the purchase and rehabilitation of units for renters
t~ Prlmed on recveled oener
City of Fort Worth, Texas
Mayor and Council Communication
04/1 1 /95 C-14'.T58 05HOME 2 of 5
SUBJECT FISCAL YEAR 1995 HOME PROC;~'AM
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 of single family or multi-family homes, for homeownership or for
rent
B Allocation and Use of HOME Funds -Fort Worth's total HOME allocation for FY 1995 is
52,411,000 to be distributed as follows
Allocation of HOME Funds
Community Housing Development
Organizations (CHDOs) 5 482,200 20%
City of Fort Worth 1.928.800 80%
Total 52,41 1,000 100%
1 CHDO Allocation - 5482,200
The HOME Program requires 15% of the total allocation (or 5361,650) be sub-allocated
to local CHDOs In addition, a maximum of 5% of the total allocation (or 5120,550) may
be set-aside for the CHDOs' operating expenses It is estimated that 67 units will be
assisted with these funds There are currently six certified CHDOs in the City
Neighborhood Housing Services, Liberation Community, Ability Resources Renaissance of
Inner City Housing (RICH), and the Community Development Corporation
A CHDO is defined as anon-profit organization (as defined in Section 501(c) of the
Internal Revenue Code). which
a Has among its purposes the development of affordable housing for low-income
families,
b One-third of the board's membership must be low-income or residents of low-
income neighborhoods, or elected representatives of low-income neighborhood
organizations,
c. Has a formal process to receive input from low-income program beneficiaries about
decisions regarding the provision of housing,
r~+med a, -e~ydaa
City of Fort i~orth, Texas
Mayor and Council Communication
DATE REFERENCE NUMBER LOG NAME PAGE
04/11 /95 C-14768 05HOME 3 of 5
SIIBJECT FISCAL YEAR 1995 HOME PROGRAM
d. Has a demonstrated capacity through existing or hired staff and/or technical
assistance from an experienced consultant, and
e Has served the community for a period of at least one year
A request for proposal (RFP) will be issued to the CHDOs for the use of the set-aside
funds for projects that are consistent with the priorities in the Consolidated Plan
2 City of Fort Worth - 51,928,800
The City's allocation is proposed to be used as follows
Program Administration
Homeownership Program
Soft Second Mortgage 750,000(63)
Closing Cost Assistance 120,000(40)
Multi-Family Development
Rehabilitation of Owner-Occupied Units
in Model Block Areas
Amount No of
Units
5241,100
870,000 103
530,423 82
287,277 12
TOTAL 51,928,800 197
The homeownership program, in support of the City's In-fill Development Program, will
finance soft second mortgage and closing cost assistance to assist low to moderate
income home buyers of homes to be built on vacant City-owned properties The In-fill
Development's objectives are three-fold. to create jobs, revitalize neighborhoods, and
assist low-income households in owning their homes
The amount set-aside for multi-family development will provide low interest loans to help
housing sponsors finance the rehabilitation, reconstruction, or new construction of rental
properties which are affordable to very low and low-income families These income
groups exhibit 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 home improvement program provides loans to very low to moderate income
homeowners, to bring their homes up to housing quality standards Data from the 1990
L~ Printed on regGed paper
City of Fort Worth, Texas
Mayor and Council Communication
DATE REFERENCE NIIMBER LOG NAME PAGE
04/11 /95 C~~4768 05HOME 4 of 5
svsJECT FISCAL YEAR 1995 HOME PROGRAM
Census shows that 77% of the very low-income households who owned their homes,
42% of the low-income, and 34% of the moderate income homeowners experienced
housing problems Fifty-eight (58%) of the very low-income elderly had housing
problems. '
The home improvement loans will be provided to homeowners in the designated Model
Blocks located in Community Development Block Grant (CDBG)-eligible areas to maximize
its visual impact on neighborhoods and its potential for creating positive "ripple effects"
in neighborhoods
C. Local Matching Requirements -The required local match is 25% of the amount allocated
for both 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 1995
with the 50% waiver is $256,169
The City of Fort Worth will be using, as match, part of the value of a 98-unit multi-family
property appraised at $750,000, which was obtained from HUD in 1993 for $1 This
property was sold for 51 to the Mental Health Housing Development Corporation, a non-
profit organization providing supportive housing to the mentally-ill This match complies
with all federal requirements as noted in 24 CFR 92 220(a)(3) The amount of 5413,206
out of the 5750,000 was designated as local match for FY 1993 and FY 1994 HOME
Grants, leaving a balance of $336,794, more than enough to cover the FY 1995 matching
requirement of $256,169
D Consistency with the Consolidated Plan -The estimated total number of units that will be
rehabilitated yr built with the FY 1995 HOME funds is 264 units (67 units with the
CHDOs' mandatory set-aside and 197 with the City's allocation) The programs will
leverage private funding in the form of non-federal funds, homeowners' and private
developers' equity, and loans from financial institutions
The HOME program is consistent with the proposed Consolidated Plan and will operate
city-wide, with emphasis on the Block-eligible areas which include COUNCIL DISTRICTS
2,5,7,8 and 9.
Primed on recyGed paper
City of Fort Worth, Texas
Mayor and Council Communication
DATE
04/1 1 /95 REFERENCE NUMBER
C-14768 LOG NAME
05HOME PAGE
5 of 5
SUBJECT FISCAL YEAR 1995 HOME PROGRAM
FISCAL INFORMATION
The Director of Fiscal Services certifies that upon approval
recommendations, the funds for this agreement will be
reimbursement from HUD via wire transfer to Bank of America,
Fund Account.
LW a
and execution of the above
available through receipt of
Local Home investment Trust
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to)
Y
Libby Watson 6140 Y C~U"~
Originating Department Head. ~/+~
AS CCR~ECTLi~
~~ ~~~
Jerome Walker 7537 (from) Q¢~
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For Additional Information t~
~~ ~~ylry of the
Contact: City ~ Fbct Worth,'fattes
Jerome Waikec 7537
Printed on recycled paper