HomeMy WebLinkAbout10775RESOLUTION NO. 10775
A RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING CONCERNING
CONTRIBUTION OF NON - FEDERAL MATCHING FUNDS UNDER THE HOME CONSORTIUM
BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION AND THE COUNTY OF
PUEBLO, AND PROVIDING FOR THE EXECUTION THEREOF
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1
The Memorandum of Understanding between the City of Pueblo, A Municipal Corporation
and the County of Pueblo dated July 10, 2006, a copy of which is attached herewith, relating to
eligible permanent contributions from non - federal sources to housing that qualifies as affordable
housing under the HOME Program, having been approved as to form by the City Attorney is
hereby approved.
SECTION 2
The President of the City Council is hereby authorized to execute the MOU on behalf of the
City of Pueblo, a Municipal Corporation, and the City Clerk is directed to affix the seal of the City
thereto and attest same.
INTRODUCED July 10, 2006
BY Randy Thurston
Councilperson
APPROVED:
President of City Council
ATTESTED BY:
CITY CLERK
Background Paper for Proposed
RESOLUTION
4 da �Y/0775
AGENDA ITEM # CD
DATE: JULY 10, 2006
DEPARTMENT: HOUSING AND CITIZEN SERVICES / ADA RIVERA CLARK
TITLE
A RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING
CONCERNING CONTRIBUTION OF NON - FEDERAL MATCHING FUNDS UNDER
THE HOME CONSORTIUM BETWEEN THE CITY OF PUEBLO, A MUNICIPAL
CORPORATION AND THE COUNTY OF PUEBLO AND PROVIDING FOR THE
EXECUTION THEREOF
ISSUE
Intergovernmental agreement between the City of Pueblo and the County of Pueblo
allowing for non - federal contribution credits to be allocated as match as required under
the HOME program, without regard to the original source of the match contribution.
RECOMMENDATION
Approve the Resolution
BACKGROUND
The HOME federal grant requires a twenty -five percent match from the local jurisdiction,
unless, these communities are declared exempt by HUD. From 1992 to 2003 the Pueblo
Consortium was exempt from the match requirement. Because the poverty rate in Pueblo
has decreased (as per HUD definitions) the Consortium is now required to match 25% of
the grant amount with non - federal dollars. The City and County have individually made
non - federal contributions to affordable housing since the inception of the Program in
1992. The City and County have in the aggregate contributed $1,059,306.34 in non-
federal dollars to affordable housing. HUD regulations allow for all prior year
contributions, since the inception of the Program, to be counted for match purposes. This
MOU would allow the Consortium to use these combined credits for 2006 and 2007
HOME funds regardless of the original source of the match contributions and would
relieve each entity of the need to provide a match contribution from their respective
general revenue funds.
FINANCIAL IMPACT
The HOME grant for 2006 was $883,481, it is expected that these funds will leverage a
minimum of $11 million dollars as a result of acquisition, construction or rehabilitation of
affordable housing within the city limits.
MEMORANDUM OF UNDERSTANDING
CONCERNING CONTRIBUTION OF NON - FEDERAL MATCHING FUNDS
UNDER THE HOME CONSORTIUM
THIS MEMORANDUM OF UNDERSTANDING is made and entered into this 10th day
of July, 2006, by and between the City of Pueblo, a Municipal Corporation, (hereinafter referred
to as the "City "), and Pueblo County, Colorado (hereinafter referred to as the "County "),
WITNESSETH:
WHEREAS, City and County (collectively, the "Parties ") have heretofore entered into
Agreements dated September 14, 1998, August 14, 2000 and May 12, 2003 (the "Agreements ")
under which they formed and continued a Consortium for the purpose of receiving certain federal
funds and undertaking housing assistance activities pursuant to the HOME Investment
Partnerships Program ( "HOME Program ") as a Participating Jurisdiction in accordance with the
provisions of said Agreements, and with the provisions of said Agreements; and
WHEREAS, the HOME Program regulations, including those set forth at 24 C.F.R.
§92.218 through §92.222, provide that certain matching contributions be made by the
Participating Jurisdiction to housing that qualifies as affordable housing; and
WHEREAS, the parties desire to set forth in this Memorandum their mutual
understanding concerning the calculation of required matching contributions on behalf of the
Consortium as a Participating Jurisdiction.
NOW, THEREFORE, in consideration of the mutual covenants and promises herein, the
parties agree as follows:
1. The Parties have determined that together, since 1992, they have made eligible,
permanent contributions from non - federal sources to housing that qualifies as affordable housing
under the HOME Program in the aggregate amount of $1,059,306.34. The parties agree that a
portion of these contributions has served as the required matching contributions for the
Consortium for 2005 and prior years, and leaves a balance credit of $770,864.38 in eligible non-
federal contributions available to match federal HOME funds made available to the Consortium
for 2006 and 2007.
2. The Parties agree that, without respect to source of the non - federal contribution
credits, the remaining credits shall be allocated as match for identified projects as follows:
2006 Proposed Expenditures of Eligible Match Contributions
Beginning Balance
Pueblo Village Apartments
Village at Pueblo
Via Don Carlos
Total Home Project
Amount
$400,000.00
$500,000.00
$240,000.00
Balance of Match Contributions Available for 2006 and 2007:
$770,864.38
Match Amount
$100,000
$125,000
$ 60,000
3. The Parties agree that with respect to the balance of match contributions available
for 2007, the balance shall be credited on HOME projects by Agreement of the Parties, without
regard to the original source of the match contributions.
4. This Memorandum shall become effective as a supplement to the Agreement
immediately upon approval by the respective governing bodies of each of the Parties, and shall
terminate on September 30, 2007.
5. Except as modified and supplemented by this Memorandum, all of the provisions
set forth in the Agreement shall continue in full force and effect and shall apply to the operation
of the Consortium as a Participating Jurisdiction.
IN WITNESS WHEREOF, the parties have entered into this Agreement the day and year
first above written.
ATTEST: PUEB O C UNTY, COLORADO
By L . By
Cler e Board C erson, Board of County Commissioners
ATTEST:
Cit Jerk -SDt .
CITY OF PUEBLO,
By ��CIPAL CO RPORATION
B "" G "�
President of the City Council