M&C Review


COUNCIL ACTION:  Continued on 6/26/2018 - Continued to 8/7/2018

DATE: 6/26/2018 REFERENCE NO.: G-19328 LOG NAME: 19NS HUD CONPLAN 2018-22 ACTIONPLAN 2018-19
CODE: G TYPE: NON-CONSENT PUBLIC HEARING: YES
SUBJECT:  

Conduct Public Hearing and Approve the City's 2018-2022 Consolidated Plan Priorities and Goals and 2018-2019 Action Plan for the Use of Federal Grant Funds in the Amount of $12,044,676.00 to be Awarded by the United States Department of Housing and Urban Development from the Community Development Block Grant, HOME Investment Partnerships Program, Emergency Solutions Grant and Housing Opportunities for Persons with AIDS Grant Programs, Authorize Collection and Use of Program Income, Authorize Waiver of Application of Indirect Cost Rates, Authorize Execution of Related Contracts, and Adopt Appropriation Ordinance (ALL COUNCIL DISTRICTS)


RECOMMENDATION:

It is recommended that the City Council:

1. Conduct a public hearing to allow citizen input and consideration of the City's 2018-2022 Consolidated Plan Priorities and Goals and 2018-2019 Action Plan for use of federal grant funds to be awarded by the United States Department of Housing and Urban Development in the amount of $12,044,676.00 from the Community Development Block Grant, HOME Investment Partnerships Program, Emergency Solutions Grant, and Housing Opportunities for Persons with AIDS grant programs, and for the use of program income from activities using prior years' federal grant funds;

2. Approve the City's 2018-2022 Consolidated Plan and 2018-2019 Action Plan for submission, including allocations of grant funds to particular programs and activities as detailed below;

3. Authorize the collection and use of an estimated $2,200,000.00 of program income which is expected to result from activities using prior years' Community Development Block Grant funds for the projects and programs detailed below, and authorize the collection and use of amounts over the $2,200,000.00 of program income, estimated to be $150,000.00, for City's Priority Repair Program;

4. Authorize the collection and use of an estimated $150,000.00 of program income which resulted from activities using prior years' HOME Investment Partnerships Program funds for the City's Homebuyer Assistance Program, and authorize the use of 10 percent of the program income for administrative costs;

5. Authorize the City Manager or his designee to execute contracts for one year terms with the agencies listed in Tables 1, 2 and 3 below for Program Year 2018-2019 for Community Development Block Grant, Emergency Solutions Grant, and Housing Opportunities for Persons with AIDS grant funds, contingent upon receipt of funding, satisfactory completion of an Environmental Review, and all regulatory requirements;

6. Authorize the City Manager or his designee to extend the contracts for up to one year if an agency or department requests an extension and such extension is necessary for completion of the program, or to amend the contracts if necessary to achieve program goals provided any amendment is within the scope of the program and in compliance with City policies and all applicable laws and regulations governing the use of federal grant funds;

7. Authorize a waiver of indirect cost rates as applicable for the Grants Fund in accordance with the City's Administrative Regulations; and

8. Adopt the attached Appropriation Ordinance increasing the estimated receipts and appropriations to the Grants Fund in the total amount of $12,044,676.00 consisting of $7,262,818.00 in Community Development Block Grant funds, $2,861,535.00 in HOME Investment Partnerships Program grant funds, $587,565.00 in Emergency Solutions Grant funds, and $1,332,758.00 in Housing Opportunities for Persons with AIDS grant funds, plus any program income, all subject to receipt of such funds.

 
DISCUSSION:

The City's 2018-2022 Consolidated Plan assesses community and affordable housing needs and sets strategic priorities and goals for use of federal grant funds from the United States Department of Housing and Urban Development (HUD) for a five-year period. These priorities and goals are to be addressed with Annual Action Plans that summarize the major housing and community development activities and proposed expenditures for each of the five years.

Recommendations for proposed priorities and goals for the Consolidated Plan were adopted by the City's Community Development Council on May 16, 2018. These priorities and goals were developed to be consistent with strategies and initiatives previously adopted by the City Council, as well as through an assessment of community needs which included the Assessment of Fair Housing planning process conducted in 2017. The recommended Consolidated Plan priorities and goals for use of HUD grant funds over the next five years are summarized below.

• Affordable Housing: Promote homeownership, affordable housing, and Fair Housing for both renters and owners
• Preservation and rehabilitation of existing housing stock
• Targeted neighborhood improvement and revitalization
• Poverty reduction, including programs that support self-sufficiency and household stability, such as employment training, adult basic education, and related programs
• Educational and support programs for children, youth and their families, to prepare them for success through literacy, training, mentorship and related programs
• Programming to support aging in place
• Accessibility improvements in public facilities and housing
• Services and housing for the homeless, including homelessness prevention and services that help homeless persons achieve the goal of permanent housing

The 2018-2019 Action Plan summarizes proposed HUD grant funded activities and expenditures that are consistent with the above priorities and goals for the program year beginning October 1, 2018 and ending September 30, 2019. The federal grant funds covered by this 2018-19 Action Plan represent a total of $12,044,676.00 from HUD for Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), Emergency Solutions Grant (ESG) and Housing Opportunities for Persons with AIDS (HOPWA) grant programs. The Action Plan also summarizes the use of program income resulting from activities using prior years' CDBG and HOME funds, the primary purpose of which is to benefit low and moderate income City residents. ESG funds primarily benefit homeless persons, and HOPWA funds primarily benefit low and moderate income persons with HIV/AIDS.

A Notice of Funding Availability (NOFA) for affordable housing developers and other entities seeking funding for major community development projects was published on February 9, 2018. A Request for Proposals from social service agencies seeking grant funding was published on February 16, 2018. All proposals were received on March 16, 2018. Staff reviewed all proposals and developed recommendations for the allocation of the estimated funding from HUD based on the capacity of applicant organizations, consistency with overall City priorities, and compliance with applicable federal regulations. Public hearings were held on April 11, 2018 and April 18, 2018 to provide citizens and stakeholders the opportunity to participate in the development of the Consolidated Plan and Action Plan. Recommendations for award amounts were considered and adopted by the Community Development Council (CDC) on May 16, 2018. These recommendations were presented to the Housing and Neighborhood Services Committee on June 5, 2018 and to the City Council on June 12, 2018.

Notice of a 30-day public comment period from July 2, 2018 to July 31, 2018 was published in the Fort Worth Star-Telegram on June 10, 2018, in La Estrella on June 16, 2018, and in La Vida News: The Black Voice on June 21, 2018. Any comments received are maintained by the Neighborhood Services Department in accordance with federal regulations. The City must hold two public hearings as part of the HUD-required citizen participation process. The first public hearing is scheduled to be held before City Council on June 26, 2018 prior to the commencement of the 30-day public comment period, and the second public hearing is scheduled for the August 7, 2018 City Council meeting where the Consolidated Plan and Action Plan will be considered for approval by the Council.

A summary of the CDC funding recommendations is provided below and in Tables 1, 2 and 3. Additionally, a spreadsheet of all specific funding recommendations is attached. The 2018-2022 Consolidated Plan and 2018-2019 Annual Action Plan must be submitted to HUD by August 15, 2018.

A waiver of indirect costs is being requested to maximize program benefits. The CDBG program provides for 43 partially-funded positions with estimated salaries of $1.3 million. Addition of indirect costs would result in reduction in Staff and services. The indirect costs that are requested to be waived are estimated to be $371,566.00.

Community Development Block Grant (CDBG)
For Program Year 2018-2019, it is recommended that the amount of $7,262,818.00 in CDBG funds, and an estimated amount of $2,350,000.00 in CDBG program income totaling $9,612,818 be allocated as follows:

Public Services - $1,089,422.00
This item includes social services for low to moderate income, disabled and disadvantaged populations.

Housing Program Services - $2,553,000.00
This item includes funding for the City' s Priority Repair Program, Cowtown Brush-Up, homebuyer and housing services, accessibility modifications to homes of senior and/or disabled individuals to support Aging In Place and Fair Housing compliance, and related project delivery costs for these programs. (ALL COUNCIL DISTRICTS)

Infrastructure Projects & Public Facilities - $1,426,856.00
This item includes funding for the Street, Sidewalk and related Public Facility, for Bunche and Cobb Park improvements, related public facility improvements and Open Space Recreational improvements to support neighborhood revitalization in the Ash Crescent Neighborhood Improvement Target Area. This item also includes funding for further improvements at Bunche Park in the Stop Six neighborhood. (COUNCIL DISTRICTS 8 and 5)

CDBG Economic Development - $740,977.00
This is the City' s annual payment of its Section 108 loan from HUD. The Section 108 Program is a loan guarantee program which enables CDBG grantees to borrow up to five times their annual entitlement grant.

CDBG Estimated Program Income - $2,350,000.00
This item includes funding for Accessibility Improvements at City Community Centers and other public facilities, water/sewer improvements to support infill housing development on Sheraton Drive, a community facility for early childhood education, and for the acquisition and rehabilitation of the Lancaster Stratton Apartments by Housing Channel. This item also includes up to $150,000 in funding for the City' s Priority Repair Program. CDBG program income that is received which is over the estimated amount but not used for the City' s Priority Repair Program will be allocated to priority activities in the Consolidated Plan subject to City Council approval.

CDBG General Administration - $1,452,563.00 (Limited to 20%)
This item includes costs for administering the CDBG grant including allocations for the Financial Management Services, Neighborhood Services and Planning and Development Departments.

HOME Investment Partnerships Program (HOME)
For Program Year 2018-2019, it is recommended that the amount of $2,861,535.00 in HOME funds, and an estimated amount of $150,000.00 in HOME program income, totaling $3,011,535.00 be allocated as follows:

Homebuyers Assistance Program (HAP) - $1,000,000.00
This item includes funding for down payment and/or closing cost assistance to low and moderate income homebuyers. (ALL COUNCIL DISTRICTS)

Community Development Housing Organizations (CHDO) - $519,382.00
HUD requires that a minimum of 15 percent of HOME funds be allocated to CHDOs for affordable housing projects. These funds will be used by Housing Channel, a CHDO, for the Single Family Infill Development at Stalcup and Berry (COUNCIL DISTRICT 5). The City is also authorized to fund CHDO administrative operating costs to support community based affordable housing development, and this funding will be used by Housing Channel to support completion of the Hardy and Riverside Single Family Infill projects which were funded in previous years (COUNCIL DISTRICTS 2 and 8). All houses constructed with these funds will be sold to homebuyers with incomes at or below 80 percent of the area median income set by HUD.

Rental Housing Rehabilitation – $1,056,151.00
This item represents gap financing for a portion of the costs of rehabilitating affordable multifamily housing for Atlantic Housing Foundation at Manitoba Apartments, and for Tarrant County Samaritan Housing, Inc. for a project to develop permanent supportive housing for the homeless. (COUNCIL DISTRICTS 3 and 9).

HOME General Administration – $286,153.00 (Limited to 10%)
This item includes costs for administering the HOME grant.

HOME Estimated Program Income - $150,000.00
This item includes funding for the Homebuyer Assistance Program and for HOME grant administrative costs. HUD allows the City to take 10 percent of any HOME program income to be used for the costs for administering the HOME grant. HOME program income that is received which is over the estimated amount but not used for the Homebuyer Assistance Program will be allocated to priority activities in the Consolidated Plan subject to City Council approval.

Housing Opportunities for Persons With AIDS Program (HOPWA)
For Program Year 2018-2019, it is recommended that the amount of $1,332,758.00 in HOPWA funds be allocated as follows:

Public Services - $1,292,776.00
HOPWA Program Administration – $39,982.00 (Limited to 3%)

Emergency Solutions Grant (ESG)
For Program Year 2018-2019, it is recommended that the amount of $587,565.00 in ESG funds be allocated as follows:

Public Services - $543,498.00
ESG Program Administration – $44,067.00 (Limited to 7.5%)

PUBLIC SERVICES CONTRACT RECOMMENDATIONS

The CDC and Staff recommend that contracts be executed with the listed agencies for the amounts shown in the following tables:

Community Development Block Grant Contracts:

Table 1 – CDBG Agencies

Organization

Program

Amount

AB Christian Learning Center

Child Care Services

$  80,000.00

Girls Inc. of Tarrant County

Youth Services

$  75,000.00

Goodwill Industries of Fort Worth, Inc.

Employment/Job Training

$100,000.00

Guardianship Services

Prevention of Financial Exploitation of Elderly

$ 75,000.00

Housing Channel

Housing Counseling Services

$118,088.00

The Ladder Alliance

Employment/Job Training

$  80,000.00

McDonald YMCA

Youth Wellness Services

$  75,000.00

Meals on Wheels, Inc. of Greater Tarrant County

Home-delivered meals for elderly/disabled

$  76,350.00

Presbyterian Night Shelter of Tarrant County

Case Management for Homeless

$144,987.00

The Salvation Army

Employment Training

$   75,000.00

Sixty and Better, Inc.

Transportation for Elderly

$111,800.00

United Community Centers

Educational Enrichment for Children

$   78,197.00

CDBG Public Service Subtotal

                  $ 1,089,422.00

Rehabilitation, Education and Advocacy for Persons with Handicaps, dba REACH, Inc.**

Accessibility Improvements for Low Income Residents

$100,000.00

Trinity Habitat for Humanity

Cowtown Brushup Paint Program

$455,000.00

Total CDBG Contracts

                  $1,644,422.00

**REACH and Trinity Habitat will be funded from the CDBG Housing Programs and Services budget.

Housing Opportunities For Persons With AIDS Contracts:

Table 2 – HOPWA Agencies

Organization

Program

Amount

Tarrant County Samaritan Housing, Inc.

Supportive Services, Facility Based Housing Subsidy Assistance, Tenant Based Rental Assistance, and Administration

$636,776.00

AIDS Outreach Center, Inc.

Supportive Services, Tenant Based Rental Assistance (TBRA), Short Term Rent Mortgage and Utility Assistance (STRMU) and Administration

$656,000.00

Total HOPWA Contracts

                  $1,292,776.00

Emergency Solutions Grant Contracts:

A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Neighborhood Services Department and approved by the M/WBE Office, in accordance with the M/WBE or BDE Ordinance, because the opportunities for subcontracting or suppliers through purchase of goods or services are negligible.

All figures have been rounded to the nearest dollar for presentation purposes.

Table 3 – ESG Agencies

Organization

Program

Amount

Presbyterian Night Shelter of Tarrant County

Shelter Operations/Services

$126,625.00

Lighthouse for the Homeless dba True Worth Place

Shelter Operations/Services

$  68,498.00

Safe Haven of Tarrant County

Safe Solutions for Fort Worth

$  75,000.00

The Salvation Army, a Georgia Corporation

Homeless Prevention, Rapid Rehousing, and Emergency Shelter

$183,375.00

Center for Transforming Lives

Rapid Rehousing

$  90,000.00

Total ESG Contracts

             $ 543,498.00


 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that upon approval of the above recommendations, adoption of the attached appropriation ordinance and receipt of grant funds, funds will be available in the current operating budget, as appropriated, of the Grants Operating Federal Fund. These are reimbursement grants. The Neighborhood Services Department has the responsibility to validate the availability of funds prior to an expenditure being made.


TO
    Fund Department
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

FROM
    Fund Department
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

Submitted for City Manager's Office by:
Fernando Costa (6122)
Originating Department Head:
Aubrey Thagard (8187)
Additional Information Contact:
Eric Vodicka (7583)
Barbara Asbury (7331)

 
 
ATTACHMENTS
  19NS HUDACTIONPLANPY2018-2019 - Ordinance Document.docx
  Form 1295 - All Agencies - Including Safe Haven.pdf
  HUD 2018-19 AP Selected Slides REVISED 6-19-2018.pdf