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HomeMy WebLinkAbout08311RESOLUTION NO. 8311 A RESOLUTION OF THE CITY COUNCIL OF PUEBLO, - COLORADO, ADOPTING THE CITY OF PUEBLO'S 1998 ONE YEAR ACTION PLAN LISTING OF PROPOSED PROJECTS FOR COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME FUNDS AS REQUIRED UNDER THE 1995 FIVE YEAR CONSOLIDATED PLAN " SUBMITTED TO HUD AND AUTHORIZING THE CITY MANAGER TO SUBMIT THE APPLICATION AND OTHER NECESSARY DOCUMENTATION TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. WHEREAS, the City of Pueblo, hereinafter called City, is designated as an entitlement city under the Housing and Community Development Act of 1974, and will receive Community Development Block Grant and HOME federal funds for 1998; and WHEREAS, the City held four public meetings in addition to a Public Hearing before City Council on October 14, 1997, to obtain new views of citizens, non - profits and neighborhood groups on the City's housing and community needs; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, that: Section 1. The City Council hereby declares the City of Pueblo's 1998 One Year Action Plan Listing of Proposed Projects for CDBG and HOME federal programs has been developed so as to give maximum feasible priority to activities which will benefit low- and moderate - income families and/or aid in the prevention or elimination of slum and blight. Section 2. The City Council hereby adopts the City's 1998 One Year Action Plan Listing of Proposed Projects for CDBG and HOME activities, which implements the fourth year of proposed programs and goal detailed under the Consolidated Plan passed by City Council on January 9, 1995 by Resolution number 7543. Section 3. The City Manager is hereby authorized and directed to submit the Application and Proposed Use of Objectives and Activities for 1998, together with the other necessary documentation, including the required assurances, to the U.S. Department of Housing and Urban Development for $2,027,000 in Federal CDBG funds and $917,000 in HOME funds and to affix his signature thereto. ATTEST: INTRODUCED: January 12 1998 By John Verna Councilperson APPROVED: City Cle President o e City Council I- a COUNCIL AGENDA A RESOLUTION OF THE CITY COUNCIL OF PUEBLO, COLORADO, ADOPTING THE CITY OF PUEBLO'S 1998 ONE YEAR ACTION PLAN LISTING OF PROPOSED TITLE: PROJECTS FOR COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME FUNDS AS REQUIRED UNDER THE 1995 FIVE YEAR CONSOLIDATED PLAN SUBMITTED TO HUD AND AUTHORIZING THE CITY MANAGER TO SUBMIT THE APPLICATION AND OTHER NECESSARY DOCUMENTATION TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. Department: Housing & Community Development SUMMARY A. Issue: /&'o V/ sl� / / I��d !-128 Agenda Item# Date: January 12, 1998 Adoption of the 1998 One Year Action Plan as required by HUD under the Five Year Consolidated Plan submitted to HUD by the City on January 9, 1995. The passage of this Final Resolution will satisfy all public review requirements and finalize the remittance of the 1998 CDBG and HOME funding requirements B. Recommendation: Adopt resolution for submission of the federal application listing the final CDBG projects and HOME housing programs. The proposed list of CDBG 1998 One Year Action Plan can be revised based on comments attached as exhibit "A" II. BACKGROUND The City of Pueblo has completed all of the requirements necessary in order to submit its 1998 One Year Action Plan as part of the required five year Consolidated Plan of CDBG expenditure. These requirements have included Citizen input, five (5) Public Hearings and publication of the 1998 Draft Statement of Objectives and Activities with the required waiting period for comments. Attached are comments received. COUNCIL AGENDA Page 2 III. FINANCIAL IMPACT The estimated amount of the Community Development Block Grant funds to be allocated to the City of Pueblo in 1998 is $2,027,000 and $917,000 for HOME. IV. ALTERNATIVES A. The City could further revise the total activities and amounts based on comments received. B. The City could elect to submit the Consolidated Plan and Final Statement of Activities as drafted. Pueblo, CO Consolidated Plan Executive Summary CITIZEN'S SUMMARY This executive summary includes the summary from the five year city of Pueblo plan submitted to Housing and Urban Development (HUD) in 1995 to enable the reader to understand the basis for the 1998 Annual One Year Action Plan. The original five year Consolidated Plan cover the years 1995 -2000 and contained the annual goals and action for March 1, 1995 through February 28, 2000. This document finishes with the final 1998 proposed One Year Action Plan for the fourth year of implementation of the goals and priority actions for the period March 1, 1998 through February 28, 1999. Goals A common goal for Pueblo is to provide adequate housing and affordable housing for its residents. Affordable housing is based on a local strategy to provide housing for a range of people who cannot afford to pay market rents or own their own home. This goal becomes increasingly difficult to attain as inflation, unemployment and rapidly increasing construction costs compound the problems associated with a lack of adequate housing. The present market mechanism cannot provide adequate housing for all at reasonable cost. However, unguided governmental intervention is not the solution. The private and public sectors must be encouraged to cooperate to a greater extent if the goal of adequate housing is to be realized. Affordability, availability and accessibility persist as central housing problems for Pueblo County as a whole. This being the case, the development of the strategy must establish priorities and propose an action plan for implementation and funding. Many of the current Pueblo County housing strategies have proven effective in dealing with specific housing problems and are recommended for continuation. Other goals and strategies need only incremental or technical changes to become consistent with the overall goals now being proposed. There are opportunities for increased participation by the private sector which can enhance its working partnership with both the non - profit and public sectors in implementing housing programs. Citizen Participation The City of Pueblo, Department of Housing and Community Development was the lead agency within the Pueblo County area to prepare the Consolidated Plan for fiscal year 1995. To begin that process, meetings were held in October, 1994consisting of two citizens advisory committees, the Housing Rehab Committee andthe Citizens Advisory Committee for the Community Development Block Grantprogram. It was decided by the City of Pueblo to use the citizen's inputrequirement presently used under the CDBG program to meet the citizens' input requirement under the 1995 Consolidated Plan. The City held four publicmeetings within different quadrants of the city for interested citizens, neighborhood groups, non - profits and others to attend. A fifth public meetingallowed the above groups to present their views at the City Council meeting. In addition to the public meetings, the City of Pueblo requested specific data and narratives from the various housing agencies to allow moredocumentation on quantifying needs and barriers, and strategies to address thehousing and related support issues in the following areas: Public Housing, Homelessness, Special Populations, Affordable Housing. COMMUNITY PROFILE /CENTER The Pueblo housing market area encompasses all of Pueblo County and is coterminous with the Pueblo Metropolitan Statistical Area. The housing market area is in South - Central Colorado. Pueblo is the primary regional trading and servicing center for Southern Colorado. Pueblo is also an important manufacturing center. The population of the housing market area is estimated at 123,051 persons. The population of Pueblo County experienced a slight decline between 1980 and 1990. There were 40,862 housing units in Pueblo, Colorado based on the 1990 census. Pueblo County is generally less affluent than other major metropolitan areas. This fact helps to understand the housing needs of low and moderate income households in Pueblo County. As would be expected of a community that has experienced economic hardship, Pueblo has a high percentage of its population that is receiving public assistance. The number of people receiving aid in Pueblo County between January 1994 and December 1994 was 28,078. This is one of the highest in the state according to Pueblo County Social Services Department. One in five Pueblo county residents receive some kind of welfare benefit. This figure does not include recipients of food stamps which for November, 1994, were estimated at 21,791 adults and youth. The fact that income levels in Pueblo County are low in comparison with many other communities is offset in some measure by the inexpensive cost of housing locally. In January, 1995, the National Association of Home Builders ranked Pueblo the most affordable town in the West for average families seeking to buy a new home. Rental rates in Pueblo have recently experienced a steady increase due to the tight housing market. Until quite recently, rental prices were quite low with median rent of $250 for a renter occupied dwelling within the City of Pueblo, according to the 1990 census. Median contract rent was $159 in 1980 in Pueblo and $250 in 1990, a slight decline of -0.8 percent when converted to 1990 constant dollars. The Hispanic population in Pueblo grew significantly during the 1980 -1990 period, while other racial groups correspondingly declined. Almost 40% of the City of Pueblo's population is Hispanic compared to 35.5 % ten years previously. Hispanic households comprise 33 % of Pueblo's households. Two trends will characterize Pueblo's future: the population will become increasingly elderly and increasingly Hispanic. COMMUNITY DEVELOPMENT AND HOUSING NEEDS Rental housing for extremely low income: These renter households were 4,262 of the total renter households of 13,446. Seventy-five percent of these households experienced some kind of housing problem. 73 % had a cost burden of greater than 30 % and 57 % had a cost burden greater than 50 %. The Pueblo Housing Authority has a waiting list of 3,286 and 80% of this number are families. There is a large demand for affordable housing for 2 and 3- bedroom subsidized rental units utilizing Section 8 certificates and vouchers. Rental housing for very low income: These renter households were 2,462 of total renter households. Sixty -six percent of these households experienced some kind of housing problem. 68% had a cost burden of greater than 30% while 19% had a monthly housing cost of greater than 50 %. Rental housing for moderate income: These renter households were 2,716 of the total. Thirty -five percent of these households experienced some kind of housing problem. 29% had a cost burden of grater than 30% and 2% had a severe housing cost burden of greater than 50%. Homeownership /Owner Occupied: Approximately 28% of Pueblo's housing stock was built prior to 1940, requiring a continuous rehab program for older homes. The biggest obstacle to home purchase has been tough credit and employment stability qualification requirements for most privately financed mortgages. The average home sale price is $54,712. Any strategy to fulfill homeownership needs for low and moderate income households would have to take into consideration Pueblo County's low income status and provide appropriate financial loan packages with some form of subsidy or deferred loans, in addition to down payment assistance. Homeless: It is estimated that on any given night in Pueblo County, there are approximately 476 homeless persons living in their cars, on the streets, in the train yards, sleeping in church basements and staying in emergency shelters. The majority of these persons are families with children with about 70% headed by women who have two to three children generally under tl-- age of six years old. The existing inventory of homeless facilities is only 128 beds plus 20 transitional housing beds. The Housing Authority will attempt to secure 2,000 units of low rent housing to develop, acquire and /or administer. Priority will be assigned for additional three bedroom units followed by a moderate need for one, two and four bedroom units. There are an estimated 180 migrant farm worker families, 460 single migrant farm workers and 100 local seasonal farm worker families. There is a projected need for 140 affordable low- income family units and for 200 affordable low- income single or solo units. Alternative housing such as dorms or smaller living -group units of 4 to 6 residents needs to be developed. Pueblo County Board for Developmental Disabilities has a waiting list of 10 for 0 -1 bedroom Section 8, 2 for 2- bedroom Section 8, 3 for homeownership, and 119 for residential services. STRATEGIC PLAN A common goal for the Pueblo (Consortium) is to provide adequate housing and affordable housing for their residents. Affordable housing is based on a local strategy to provide housing for a range of people who cannot afford to pay market rents or own their own home. This goal becomes increasingly difficult to attain as inflation, unemployment and rapidly increasing construction costs compound the problems associated with a lack of adequate housing. The present market mechanism cannot provide adequate housing for all at reasonable cost. However, unguided governmental intervention is not the solution. The private and public sectors must be encouraged to cooperate to a greater extent if the goal of adequate housing is to be realized. Affordability, availability and accessibility persist as central housing problems for Pueblo County as a whole. The development of the strategy must establish priorities and propose an action plan for implementation and funding. Many of the current Pueblo County housing strategies have proven effective in dealing with specific housing problems and are recommended for continuation. Other goals and strategies need only incremental or technical changes to become consistent with the overall goals now being proposed. There are opportunities for increased participation by the private sector which can enhance its working partnership with both the nonprofit and public sectors in implementing housing programs. Five neighborhoods, collectively known as the Pueblo "Y" have been identified through the planning process under the Empowerment Zone /Enterprise Community Application as geographical areas that CDBG and HOME funds can be targeted. It is part of the Empowerment Zone /Enterprise Community strategy to build strong neighborhood -based association to help in implementing several of the strategies in the Consolidated Plan. Priority Non - Housing Community Development Objectives Pueblo has indicated a high need for youth centers, neighborhood facilities, street improvements, sidewalk improvements, handicapped services, transportation services, employment training, fair housing counseling, and code enforcement. Priority Housing and Homeless Objectives Priority #1: To secure contracts with HUD to expand the supply of affordable rental units and new construction for very low and low income households within the City. Priority #2: To encourage and support the rehabilitation of existing housing stock for very low, low and moderate income households principally for owner - occupants. Priority #3: To increase and preserve homeownership in entitlement and non - metropolitan areas through owner - occupied rehabilitation, energy conservation and first -time buyer programs that assist renter households become homeowners. Priority #4: To increase and preserve housing opportunities for homeless people with special needs and, wherever possible, help people maintain or achieve independent living. Priority #5: To develop affordable migrant farm worker housing. ONE YEAR ACTION PLAN Overview: The process used to arrive at the strategies and actions for the five year Consolidated Plan were based on the findings and evaluation of the different census data, neighborhood needs, local housing agencies waiting list and general public comments. All these housing needs were then prioritized into the five main priorities of: ■ (1) Endeavor to secure contracts with HUD to expand the supply of affordable rental units and new construction for very low and low income households within Pueblo; ■ (2) Encourage and support the rehabilitation of existing housing stock for very low, low, and moderate income households principally for owner occupants; ■ (3) Increase and preserve homeownership in entitlement and non - metropolitan areas through owner - occupied rehabilitation, energy conservation and first -time buyer programs and to assist qualified renter households to become homeowners; ■ (4) Increase and preserve housing opportunities or homeless, people with special needs, and where ever possible, help people maintain or achieve independent living and permanent housing; ■ (5) Develop affordable migrant farm worker housing for Pueblo County's farm worker population not provided through private efforts. The actions needed were then summarized in a format with the expected five year intended result toward the ■ solving of housing needs identified in the Consolidated Plan. Listing of Proposed Projects for 1998 for the Fourth, Year of Implementation PUBLIC IMPROVEMENTS: STREETS/PARKS/DOWNTOWN 90 Public Im; rovements (Parks) in low and moderate income neighborhoods PARKS DEPT. 77,119 45 VICTORIA AVE. ACCESSIBILITY IMPROVEMENTS VICTORIA AVE. y 100,000 (Victoria Ave. & River Street Corridor from "B" Street across VALLITTA ASSOC. HARP to Court St.) Handicapped accessible ADA street intersections, Gary Anzuini curb, gutter, sidewalk, paving, storm inlet relocation 65 PUEBLO BEAUTIFUL "TREES FOR TODAY" (City Wide) PUEBLO BEAUTIFUL y 4,200 Free Trees to 100 L/M Homeowners ASSN., Inge Oeschsle 37 SEWER & WATER LINE EXTENSION (W. 24th St. to Pueblo Blvd.) CITY HOUSING COMM. y 140,000 46 DEANE LANE CUL -DE -SAC (Between 12th & 13th St. Beaumont & Philbert H. LeFebre y 21,500 amarillo) Purchase lots, curb, gutter & paving 91 Public Improvements (streets in low and moderate income neighborhoods) 77,118 57 CONSTRUCT HANDICAP RAMPS AT STREET CORNERS PUBLIC WORKS DEPT. 67,000 (L /M Areas City Wide) 92 Public Improvements (Sidewalks in low and moderate 77,119 income neighborhoods) 47 &RGW FREIGHT STATION STREET IMPROVEMENTS SOUTHEASTERN CO. y 100,000 (W. "B" St & Victoria) Extension of W. "B" St., curb, gutter, HERITAGE CENTER sidewalks, street lights and parking lot improvements Tom Cummins /Gary Moreschini 43 DOWNTOWN SECURITY LIGHTING (1st. 2nd. 3rd Streets PUEBLO DOWNTOWN y 100,000 from Santa Fe Ave. to Court St.) ASSOC., Hannah Rush PUBLIC SERVICES: 73 CONCERNED PARENTS OF PUEBLO YOUTH CONCERNED PARENTS 38,500 INCENTIVE PROGRAM (220 S. Main St.) OF PUEBLO administration, purchase incentive items, equipment and supplies for graffiti and yards 71 La Gente Youth program (Eastwood Heights Neighborhood) John Madrid, Director y 25,000 79 GRAFFITI REMOVAL & SUPPLIES (CitX Wide) CITY FLEET MAIN- y 20,000 TENANCE DEPT. 73 LEGAL FEES FOR DEVLOPEMENT OF NEIGHOBRHOOD Department of Housing 10,000 NON - PROFIT 501 C 3 FOR PUEBLO NEIGHBORHOODS administration,legal fees to help neighborhood groups 76 Hyde Park Family Center • u M 80 HOUSING COUNSELING AND MONEY MANAGEMENT PROGRAM (302 Jefferson) Housing counseling services for L/M income persons; phone system 86 NEIGHBORHOOD HOUSING SERVICES ADMINISTRATION (825 N. Greenwood) Administer revitalization project in target areas /city -wide affordable housing Pueblo County Board y for Developmental Disabilities Juanita Martinez FAMILY COUNSELING CENTER, Lucio Flores, Jr. 32,627 25,000 50,000 50,000 200,000 50,000 80,000 NEIGHBORHOOD HOUSING SERVICES Sharon Drake HOUSING /BUILDING RENOVATION: 83 HOUSING REHABILITATION - OWNER- OCCUPIED CITY HOUSING & y SINGLE FAMILY HOMES (City Wide) COMMUNITY Loans for electrical, plumbing and heating for L/M families DEVELOPMENT DEPT. 88 MARTIN LUTHER KING COMMISSION "OLD LINCOLN PUEBLO DO. MARTIN HOME" PROJECT (213 -2715 N. Grand Ave.) LUTHER KING JR. HOLIDAY Site work, parking lot, exterior building, interior building & major systemsCOMMISSION, Rev John Potter 84 EMERGENCY HOUSING REHAB - OWNER- OCCUPIED CITY HOUSING & y SINGLE FAMILY HOMES (City Wide) COMM. DEVELOPMENT Correct major violations of Plumbing, Electrical, Heating DEPARTMENT & Roofing for L/M homeowners 87 HOUSING & COMMUNITY DEVELOPMENT ADMIN. (City Hall) CITY HOUSING & y Administer and monitor all CDBG projects, housing rehabilitation COMM. DEVELOPMENT and homeownership programs DEPARTMENT • j - • • • • , - 1 . • 1 . . .. l 66 PUEBLO COMMUNITY HEALTH CENTER - EXPANSION AND MODERNIZATION PHASE III -A (230 Colorado) Add a patient education area to the north side of the building OTHER 78 YWCA OF PUEBLO PARKING LOT (801 N. Santa Fe.) Additional parking for senior citizens, clubs, organizations and residents (16 spaces) 1 ASSISTANCE LEAGUE OF PUEBLO (331 E. 4th St.) Purchase vacant land behind building for expansion 90 DOWNTOWN DEVELOPMENT COORDINATOR (City Hall) Coordination of projects by City staff person for HARP, other ongoing programs and projects 67 DEMOLITION OF SUBSTANDARD STRUCTURES (City Wide) TOTALS Pueblo Zoo Jonnene McFarland PUEBLO COMMUNITY y HEALTH CENTER Byron gear YWCA OF PUEBLO ASSISTANCE LEAGUE y PLANNING DEPT. PUEBLO REGIONAL 340,722 23,900 92,195 35,000 40,000 50,000 100,000 2,027,000 Listing of Proposed HOME Projects for 1998 HOME -CHDO / Direct Homeownership Direct Home 137,550 Assistance ownership Assistance HOME - COUNTY REGULAR 14A Rehab; Single 131,890 REHABILITATION LOAN PROGRAM unit Residential HOME -FIRST TIME HOMEBUYER 14A Rehab; single 200,000 "BUY IT /FIX IT" PROGRAM unit Residential HOME -HOME ACQUISITION FOR 13 Direct Home 243,560 FIRST TIME HOMEBUYERS Assistance HOME - PROGRAM ADMIN. 21H HOME Admin 80,000 (City and County) Planning Costs of PJ HOME-PUEBLO COUNTY FIRST TIME om ♦ 24,000 HOME REGULAR REHAB LOAN 14A Rehab; Single 50,000 PROGRAM unit Residential HOME RENTAL PROGRAM 14B New Construction; Multi 50,000 unit Residential HOME PROGRAM: The $917,000 allocated, will be for various existing single family owner occupied rehabilitation, HDAP, and other multi - family housing projects that will meet the requirements for affordable housing in accordance with the existing housing policy. Applications, including those in the "pipeline" will be reviewed and considered on a continuous basis. The Department may choose to administer HOME funds directly if it determines that a specific project would benefit from such administration. The city will reserve fifteen percent of its allocation for community housing development organizations (CHDOs). The amount available for CHDOs will be $137,550. It is anticipated that the types of activities to be undertaken by CHDOs will be acquisition, rehabilitation, homebuyer programs, and new construction. It is also anticipated that some CHDOs may be interested in applying for the project specific technical assistance loans. In making funding decisions as well as decisions on proposed modifications to funded projects, the Department Director may specify alternatives to changes as he/she deems necessary or appropriate, consistent with the project review factors. When submitted, applications will be evaluated by the staff for project impact on local need, project feasibility, local public and private commitments, applicant management capacity, HOME eligibility, required HOME matching funds, and other requirements. EXHIBIT A A SUMMARY OF CITIZENS' COMMENTS ON 1998 CDBG PROJECTS Following publication of the Draft Statement of CDBG Projects, interested persons had from Nov. 28, 1997 to Dec. 31 1997 to make comments about the projects. Our records show eight telephone calls were received on the list and an additional nine letters were received. Phone Calls - -Byron Geer, asking about Pueblo Community Health Center funding. - -Rich Zajek, Parks Department, asking about Parks funding. -- Bernadette Villalon, asking about Hyde Park requests. - -Bill Bolt, Pueblo Goodwill, asking how to apply in future years. - -Greg Sinn, calling to ask why park/playground at Washington School not recommended. - -Sam Corsentino, Councilman, objecting to downtown lighting project. -- Chieftain article on Boys and Girls Club wanting more money. (no direct phone call). - -Robin Hill of Friendly Harbor asking what he needed to do to obtain van. Letters - -Cathy Green, Office of Downtown Development, outlined the specifics of her project, including Downtown Management Plan, Special HARP Issues, Assistance with Construction Disruption, Articles, Real Estate Studies, Public Signage Study and Administration of a Planning Grant. -- Kathie Arwood, citizen, objecting to funding for Martin Luther King Commission/Lincoln Home Project due to "questionable monetary practices. - -Robin Hill, Friendly Harbor, concerning insurance and licenses needed for van. - -Ed Lujan, Risley Middle School principal, asking status of funds for Eastside recreation programs (under Parks money.) - -Hyde Park Residents, objecting to "most of the recommendations," and asking for 300,000 per year for 1998, 1999, 2000 and 2001 to be spent in Hyde Park. - -Karen Lillie of Pueblo Diversified Industries asking for reconsideration of her agency's request of 100,000 to renovate existing facilities at PDI. - -Larry Miller, Pueblo Renaissance Project and area merchants, seeking $66,000 administrative funding for PRP. - -Larry Fancher, citizen, objecting to Pueblo County use of its CDBG allocation. -- Pueblo County Commissioners, copy of response letter to Larry Fancher. -- Pueblo School for Arts and Sciences - reconsideration for 35,000 grant, playground equip.