It is recommended that the City Council:

1. Authorize substantial amendments to the City's 2011-12, 2013-14, 2014-15, 2015-16, 2016-17, and 2017-18 Action Plans;

2. Authorize the City Manager or his designee to substitute current and prior funding years in order to meet commitment, disbursement and expenditure deadlines for use of grant funds from the United States Department of Housing and Urban Development ;

3. Adopt the funding recommendations from the City's Community Development Council listed below;

4. Authorize the change in use and expenditure of $1,000,000.00 in prior years Community Development Block Grant funds and $1,056,000.00 in prior and current years HOME Investment Partnerships Program grant funds to the entities for the projects listed below;

5. Authorize the City Manager or his designee to execute contracts with the entities for the  projects on the terms and conditions listed below;

6. Authorize the City Manager or his designee to extend the contracts for two one-year extensions if such extension is necessary to complete the projects; and

7. Authorize the City Manager or his designee to amend the contracts if necessary to achieve project goals provided that the amendment is within the scope of the project and in compliance with City policies and applicable laws and regulations governing the use of federal grant funds.

On February 9, 2018, the Neighborhood Services Department issued a Notice of Funding Availability (NOFA) and Request for Qualifications (RFQ) for available prior and current years Community Development Block Grant (CDBG) funds and HOME Investment Partnerships Program (HOME) grant  funds from the United States Department of Housing and Urban Development (HUD) for eligible projects throughout the City. The purpose of the NOFA and RFQ was to integrate the use of federal grant funds with existing City priorities in order to maximize positive and visible outcomes for neighborhoods, align planning for the use of federal grant funds with the City's corporate decision-making processes for capital funding and identify and rank potential projects for both current and future years. A total of 29 proposals in response to the NOFA and RFQ were received from City departments, nonprofit agencies and affordable housing developers.

Staff reviewed all of the proposals and developed recommendations for allocations of the CDBG and HOME funds and presented them to the Community Development Council (CDC) on May 16, 2018. The CDC considered the recommendations and voted to recommend the ones listed below in Tables1 and 2.  Staff presented the CDC's recommendations  to the Housing and Neighborhood Services Committee on June 5, 2018 and to the City Council at its Work Session on June 12, 2018. In addition, a notice of a 30-day public comment period was published in the Fort Worth Star-Telegram on May 25, 2018.  Summaries of the CDC's recommendations for use of CDBG and HOME  funds from the NOFA are provided in Tables 1 and 2.  

TABLE 1
CDBG Projects:	Amount
Fort Worth Area Habitat for Humanity, Inc. d/b/a Trinity Habitat for Humanity "Preserve a Home" Repair Program:  Repair assistance for approximately 30 low and moderate income homeowners for exterior home repairs such as siding, painting, roofs, doors, windows or other improvements, to promote neighborhood revitalization in the Como,  Ash Crescent, Hillside/Morningside and Carver Heights East neighborhoods.  (COUNCIL DISTRICTS 3, 5, 8 and 9) CDBG Contract Terms: 1.  One year contract term beginning on the date of execution; and   2.  Extend or renew the contract for up to one additional year if the agency requests an extension and such extension is necessary for the completion of the project.   Z Boaz South Park Improvements: Park and facility improvements including covered playground accessible to children, guard rail to protect the park, adult work-out area, senior and handicap- friendly walking and cycling trails, covered pavilion with benches, lighting and beautification with landscaping.  (COUNCIL DISTRICT 3)	$400,000.00 $600,000.00

TABLE 2
HOME Project:	Amount
Mistletoe Station, LLC :  Construction of the Mistletoe Station Apartments, a new 110-unit mixed income multifamily rental housing development, including eight Permanent Supportive Housing units, located at 1916 Mistletoe Boulevard, Fort Worth, TX 76104.  Financing will be provided by award of 2017 9% tax credits, first lien construction/permanent loans, a loan from the Fort Worth Housing Finance Corporation (FWHFC), and the City's HOME loan.  The Southside/Medical District TIF will provide $2.6M for infrastructure improvements to benefit both the project and the surrounding neighborhoods and commercial properties.  The City has also provided certain development fee waivers.  (COUNCIL DISTRICT 9) HOME Contract and Loan Terms:         1. Designate HOME-assisted units according to HOME regulations with a 20 Year Affordability Period; 2. Secure payment of the HOME funds and performance of the HOME requirements by a Deed Trust; 3. Contract and loan term to commence on execution and run concurrently with the Affordability Period; 4. HOME loan subordinate only to first lien construction/permanent financing and FWHFC loan; 5. Interest rate of one percent or the Applicable Federal Rate, whichever is less; 6. Payments of principal and interest out of net cash flow to begin no later than 12 months after conversion;   7. Construction completed within 3 years;  and   8. Payment and performance bonds in full construction amount or acceptable payment and completion guarantee. The expenditure of HOME funds is conditioned upon the following:                                             1.  Equity, construction and permanent financing acceptable to City;   2. Satisfactory completion of 24 CFR Part 58 environmental review;     3. Receipt of authorization to use grant funds from HUD; and 4. Closing on equity and all other financing for the development.	$1,056,000.00

Staff recommends that contracts be executed with the parties for the for the projects in the amounts and on the terms listed in Tables 1 and 2.  HUD regulations for the use of CDBG funds require that Interdepartmental Letters of Agreement be executed for the use of these federal grant funds by City departments.  

Staff recommends the change in use and expenditure of $1,000,000.00 in prior years CDBG funds and $1,056,000.00 in prior and current years HOME funds for the listed projects which will benefit moderate, low and very low income City Citizens.  All expenditures of CDBG and HOME funds are subject to satisfactory completion of an Environmental Record Review per 24 CFR Part 58 and receipt of authorization to use grant funds from HUD.   Action Plan funding years selected may vary and be substituted in order to expend the oldest grant funds first.  A public comment period on the change in use of these prior and current years CDBG and HOME funds was held from May 25, 2018.to June 25, 2018. Any comments are maintained by the Neighborhood Services Department in accordance with federal regulations.