HomeMy WebLinkAbout08468ORDINANCE NO. 8468
AN ORDINANCE APPROVING AND AUTHORIZING THE
EXECUTION OF A VOLUNTARY COMPLIANCE AGREEMENT
BETWEEN THE UNITED STATES DEPARTMENT OF HOUSING
AND URBAN DEVELOPMENT OFFICE OF FAIR HOUSING
AND EQUAL OPPORTUNITY AND THE CITY OF PUEBLO, A
MUNICIPAL CORPORATION
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Voluntary Compliance Agreement between the City of Pueblo, a Municipal
Corporation, and United States Department of Housing and Urban Development Office of Fair
Housing and Equal Opportunity, relating to the Community Development Block Grant and the
HOME Investment Partnership Act grant, is hereby approved substantially in the form attached
hereto, with such minor changes therein as shall be approved by the President of City Council
and the City Attorney, is hereby approved.
SECTION 2.
The President of City Council is hereby authorized to execute and deliver said Voluntary
Compliance Agreement in the name of and on behalf of the City of Pueblo, a Municipal
Corporation, and the City Clerk shall affix the seal of the City thereto and attest the same.
INTRODUCED: March 26, 2012
BY: Leroy Garcia
COUNCIL PERSON
PASSED AND APPROVED: April 9, 2012
Background Paper for Proposed
ORDINANCE
DATE: AGENDA ITEM # R-8
MARCH 26, 2012
DEPARTMENT:
HOUSING AND CITIZEN SERVICES
DIRECTOR – ADA RIVERA CLARK
TITLE
AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A VOLUNTARY
COMPLIANCE AGREEMENT BETWEEN THE UNITED STATES DEPARTMENT OF
HOUSING AND URBAN DEVELOPMENT OFFICE OF FAIR HOUSING AND EQUAL
OPPORTUNITYAND THE CITY OF PUEBLO, A MUNICIPAL CORPORATION
ISSUE
Should the City Council approve the Voluntary Compliance Agreement (VCA) with HUD's Office
of Fair Housing and Equal Opportunity (FHEO), which sets out the activities to be undertaken by
the City to achieve compliance with several regulations promulgated under the Community
Development Block Grant and the HOME Investment Partnership Act?
RECOMMENDATION
Approval of the Ordinance.
BACKGROUND
FHEO conducted an on-site compliance review under the authorities of Section 3, Section 109,
and Title VI of the Community Development Block Grant (CDBG) and HOME Investment
Partnership Act programs administered by the City of Pueblo during the period of August 15-19,
2011. The areas reviewed included: compliance with Section 3 requirements; citizen
participation; benefits, services and methods of administration; record-keeping; the City’s
Affirmatively Furthering Fair Housing (AFFH) certification; and compliance with the Limited
English Proficiency guidance pursuant to Title VI.
Following the completion of the compliance review and analysis of the evidence, HUD made
preliminary findings of noncompliance under Section 3 (provide for economic opportunities to
low-mod residents and business owners, as defined) and concerns under Title VI, Title VIII and
Section 109. The latter 3 will require increased recordkeeping and outreach to citizens, realtors,
and landlords. The City enters into this Agreement in order to facilitate the informal and speedy
resolution of the subject matters of the Agreement in accordance with regulations found at Code
of Federal Regulation 24 CFR § 8.56(j)(2). However, by reaching this just resolution, the City
does not admit to wrongdoing nor a violation of law or applicable regulations.
The Agreement sets out the timeframes by which requirements must be met. The actions to be
undertaken will affect the procurement and bidding process, and therefore does not simply
affect the Department of Housing and Citizen Services (DHCS).
DHCS staff is currently refining the plans and policies that HUD FHEO is requiring. We will also
be developing a broader marketing and outreach plan.
FINANCIAL IMPACT
Actions called out in the VCA will require that funding from the Community Development Block
Grant be set-aside for outreach efforts in the community. This will affect the funding that is
available for public service, public facilities and infrastructure projects. These funds will not be
recommended by the Citizen’s Advisory Committee to the City Council, but will be subtracted
from the grant amount. At this time we cannot determine what the costs of outreach will be, but
we will set that cost at about $10,000.
VOLUNTARY COMPLIANCE AGREEMENT
BETWEEN
UNITED STATES
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
OFFICE OF FAIR HOUSING AND EQUAL OPPORTUNITY
AND
CITY OF PUEBLO, COLORADO
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
HOME INVESTMENT PARTNERSHIP PROGRAM
DEPARTMENT OF HOUSING AND CITIZEN SERVICES
2631 E. STREET
PUEBLO, COLORADO 81001
CASE NUMBERS: 08- 11- R005 -3 (Section 3)
08- 11- R004 -9 (Section 109)
08- 11- R007 -6 (Title VI)
I. INTRODUCTION
The U.S. Department of Housing and Urban Development (HUD or the Department) administers
Section 3 of the Housing and Urban Redevelopment Act of 1968 (Section 3), 12 U.S.C. § 1701u,
and regulations issued at 24 C.F.R. Part 135; Section 109 of the Housing and Community
Development Act of 1974, as amended (Section 109), 42 U.S.C. § 5301 et seq. and regulations at
24 C.F.R. Part 6 and § 570.602; Title VI of the Civil Rights Act of 1964, as amended (Title VI),
42 U.S.C. § 2000, and regulations at 24 C.F.R. Part 1; and Title VIII of the Civil Rights Act of
1968, as amended (Title VIII), 42 U.S.C. § 3601, el seq., and regulations at 24 C.F.R. Part 100.
The Department conducted an on -site compliance review under the authorities of Section 3,
Section 109, and Title VI of the Community Development Block Grant (CDBG) program
administered by the City of Pueblo, Colorado (the City) during the period of August 15 -19, 2011.
The areas reviewed included: compliance with Section 3 requirements; citizen participation;
benefits, services and methods of administration; record - keeping; the City's Affirmatively
Furthering Fair Housing (AFFH) certification; and compliance with the Limited English Proficiency
guidance pursuant to Title VI.
Following the completion of the compliance review and analysis of the evidence, HUD made
preliminary findings of noncompliance under Section 3 and concerns under Title VI, Title VIII and
Section 109. The City enters into this Agreement in order to facilitate the informal and speedy
resolution of the subject matters of the Agreement in accordance with regulations found at Code
of Federal Regulation 24 CFR § 8.56(j)(2). However, by reaching this just resolution, the City
does not admit to wrongdoing nor a violation of law or applicable regulations.
II. GENERAL PROVISIONS
1. This Agreement is effective on the date it is signed by the Director, Fair Housing and Equal
Opportunity, Region VIII (the Director). The Director, acting on behalf of the HUD
Secretary, retains authority to approve or disapprove this Agreement. This Agreement applies
to the City's programs funded in whole or in any part with CDBG funds, and shall be binding
upon the City, its agents, successors, and assigns or beneficiaries who own, control, operate or
sponsor said programs.
2. This Agreement shall remain in effect until the City has satisfactorily completed the
provisions set forth in this Agreement, or for a minimum of three years after the effective date
of this Agreement, whichever is later. The City's failure to meet the terms of the Agreement
will be considered a breach of the Agreement, which may be enforced pursuant to 24 C.F.R.
§§ 135.74 and 6.12.
3. Upon the City's submission of any plans, policies, or documents to HUD in accordance with
the dates specified in this Agreement, the Director shall review and approve or disapprove
within thirty days. The City shall have fifteen days to cure any deficiency(s) in the plans,
policies, or documents, and resubmit to HUD. Once approved by the Director, the City shall
take the required action(s) specified elsewhere in this Agreement.
1
4. This Agreement does not in any way limit or restrict HUD's authority to investigate any
complaints involving the City made pursuant to Section 3, Section 109, Title VI, or any other
authority within HUD's jurisdiction.
5. No amendment to, modification of, or waiver of any provision of this Agreement shall be
effective unless the following conditions are met: (1) all signatories to the Agreement are
notified in advance of the proposed amendment, modification, or waiver; (2) the amendment,
modification, or waiver is in writing; and (3) the amendment, modification, or waiver is
approved and signed by the Director. Any such amendment, modification, waiver, or consent
shall be effective only in the specific instance and for the specific purpose for which given.
6. This Agreement does not affect any requirements for the City to comply with all requirements
of Section 3, Section 109, and Title VI not addressed in this Agreement. Also, nothing in this
agreement alters or abrogates the City's obligation to Affirmatively Further Fair Housing in
complete compliance with 24 C.F.R. § 91.225(a)(1).
7. Upon the effective date of this Agreement, this Agreement is a public document. A copy of
this Agreement shall be made available to any person for his or her review in accordance with
the law. The City shall provide a copy of this Agreement to any person upon request.
III. SPECIFIC PROVISIONS
8. Section 3 Responsibilities (24 C.F.R. Part 135)
a) Within ninety days of the effective date of this Agreement, the City will review its
Section 3 Guidelines and finalize a Section 3 plan ( "Plan ") to ensure that the City directs
economic opportunities generated from HUD funded projects, to the greatest extent
feasible, to low- and very low- income persons, particularly those receiving assistance for
housing, and the businesses that provide economic opportunities to these persons. In
finalizing the Plan, the City shall:
i) Implement procedures to notify Section 3 residents about training and
employment opportunities, and Section 3 business concerns about contracting
opportunities. The procedures shall include, but not be limited to, providing
information on the City's website.
ii) Implement procedures to notify potential contractors of Section 3 requirements.
The procedures shall include, but not be limited to, providing comprehensive
information about Section 3 on the City's website, and during pre -bid meetings
for Section 3 covered projects.
iii) Establish a process by which the City will certify Section 3 residents and business
concerns.
iv) Create and maintain a roster of eligible Section 3 residents and business concerns
to provide to sub - recipients and potential contractors during pre -bid meetings, and
when contracts are awarded.
2
v) Use 24 C.F.R. Appendix to Part 135 as a reference to develop a plan to facilitate
the training and employment of Section 3 residents and the awarding of contracts
to Section 3 business concerns.
vi) Incorporate in all Section 3 covered contracts the requirement for contractors to
develop a Section 3 plan detailing how they will comply with Section 3. The Plan
shall include, but not be limited to, specific information about the contractor's
current workforce, plans for new hires, anticipated subcontracting needs, and
strategies for targeting Section 3 residents and business concerns for new
economic opportunities.
vii) Implement procedures to monitor sub - recipients and contractors to ensure their
compliance with Section 3 requirements. Monitoring activities shall include
documenting sub - recipients' and contractors' efforts to hire Section 3 residents
and award contracts to Section 3 businesses (if applicable), the results, and
impediments, if any.
viii) Develop appropriate penalties for noncompliance and incentives for sub -
recipients and contractors that exceed minimum goals.
ix) Ensure that it distributes its reporting forms designated for use in collecting and
reporting new Section 3 hires and contracts /subcontracts awarded to Section 3
business concerns to its sub - recipients and contractors and communicates to these
entities the immediate and continuing requirement to collect and accurately report
this data to the City.
x) Develop a procedure to ensure it directs its efforts to provide, to the greatest
extent feasible, training and employment opportunities for Section 3 residents and
contracting opportunities to Section 3 business concerns. The procedure shall
include the order of providing preferences to Section 3 residents and business
concerns as set forth in 24 C.F.R. §§ 135.34 and 135.36.
Within one hundred days of the effective date of this Agreement, the City shall provide to
HUD a copy of the Plan. Upon approval by HUD, the Plan will be incorporated into, and
will be an enforceable part of this Agreement.
b) The City shall ensure that all annual Section 3 Summary reports, HUD form 60002, are
accurate, and include all of the City's and its sub - recipients' and contractors' Section 3
new hires and contracts awarded to Section 3 business concerns.
c) The City agrees to ensure that all of its solicitations for bid notices, Notice of Funding
Availability (NOFA), Request for Proposal (RFP), etc., include the Section 3 clause or at
a minimum, reference the Section 3 clause.
The City agrees to include the Section 3 clause in all covered contracts for both the City
and its sub - recipients.
3
On an annual basis for three years from the effective date of this Agreement, in
accordance with paragraph 16, the City shall provide to HUD copies of its bid notices,
NOFAs, RFPs for Section 3 covered projects, and Section 3 covered contracts.
d) The City agrees to ensure that the Section 3 Coordinator or his or her designee attends all
pre -bid meetings for Section 3 covered projects and informs potential contractors of
Section 3 requirements and sanctions for non- compliance.
On an annual basis for three years from the effective date of this Agreement, in
accordance with paragraph 16, the City shall provide to HUD the date and location of
pre -bid meetings held during the reporting period along with an identification of staff in
attendance and a summary of the information provided to potential contractors regarding
Section 3.
e) On an annual basis for three years from the effective date of this Agreement, the City
shall review the progress the City, its sub - recipients, contractors, and subcontractors have
made in meeting the minimum numerical goals for employment and contracting. If the
City finds that the numerical or "safe harbor" goals' have not been met, the City will
review the City's, its sub - recipients', contractors', and subcontractors' efforts to
determine what modifications are necessary to meet these goals, will modify its Plan, and
implement the modifications accordingly. The City shall reduce its review to writing and
provide HUD a detailed report of its review within sixty days of submitting its annual
report. The report will include identification of any of the actions listed in this
Agreement and the City's Plan that proved ineffective or impractical, the alternatives
considered, and reason(s) for rejecting or accepting each alternative considered.
f) Within one hundred - eighty days of the effective date of this Agreement, the City will
conduct a baseline monitoring of sub - recipients and contractors in accordance with the
monitoring procedures and annually thereafter.
9. AFFH (24 C.F.R. §§ 1.4, 6.4, 91.225, 570.601)
a. As part of its continuing obligations to affirmatively further fair housing, the City shall:
i) Solicit input from community leaders, public interest groups, and others during
the CDBG planning cycle;
ii) Advertise to residents their rights to fair housing and how housing discrimination
complaints can be filed with HUD, the Colorado Civil Rights Division, or any
local fair housing agency;
1 See 24 C.F.R. § 135.30.
4
iii) Refer housing discrimination complaints and any inquiries about possible
violations of fair housing laws to HUD, a state government agency, or any local
fair housing agency;
iv) Create and fund campaigns to broaden support for fair housing and equitable
distribution of affordable housing in all communities, including public outreach
that specifically addresses the benefits of mixed - income housing and racially- and
ethnically - integrated communities, and emphasizing that affordable housing
programs funded by CDBG are open to all groups;
v) Educate realtors, condominium and cooperative boards, and landlords with
respect to fair housing requirements;
vi) Provide comprehensive information regarding rental and homeownership housing
programs and affordable housing projects funded by CDBG in addition to those
developed by housing authorities located within the State and those funded
privately through other incentive programs of the City that is readily available to
the public, including through the City's website. The information shall include,
but not be limited to, identification of affordable housing developments (both
existing and under construction) in the City, homebuyer counseling programs, and
down payment assistance programs;
vii) Utilize its AI to plan and implement specific annual activities designed to
ameliorate the effects of identified impediments to fair housing choice; and
viii) Document all AFFH actions within HUD submissions: Future ConPlan
submissions must document long -term plans to overcome the effects of identified
impediments to fair housing choice; AAPs must document the specific activities
planned during the relevant program year to overcome the effects of identified
impediments to fair housing choice; and CAPERs must provide an annual report
of the AFFH actions implemented during the relevant program year with
quantitative data that establish the measurable results.
On an annual basis for three years from the effective date of this Agreement, in accordance
with paragraph 16, the City shall provide to HUD, a written report of its activities to
affirmatively further fair housing in accordance with its AFFH Certification. The report shall
include: a description of the activities implemented along with an explanation of the
impediment addressed and the quantitative impact on persons in specific protected class
groups; timeframes for completion; short-term and long -term milestones; measurable results;
dates of activities; identification of participants; marketing materials used to notify the public
of the scheduled activities; and monetary allocations and disbursements.
10. Monitoring - Collection of Racial, Ethnic, Gender, and Disability Data (24 G.F.R. 1.6,
6.10, and 8.55)
Within thirty days from the effective date of this Agreement, the City shall ensure the
monitoring forms it designates for use in its collection and reporting of race and ethnicity
5
data reflect the categories for reporting race and ethnicity in accordance with OMB Standards
for Federal Data on Race and Ethnicity: HUD Policy Statement and Implementing
Guidelines (dated August 13, 2002).
Within forty days from the effective date of this Agreement, the City shall submit to HUD its
revised collection and reporting forms. Within ten days of HUD approval, the City will
distribute the forms to its HOME - funded projects, and communicate to these entities the
immediate and continuing requirement to collect and report data to the City on the race,
ethnicity, gender, and disability characteristics of applicants and participants, or
beneficiaries.
Within ten days of HUD approval of the forms, the City shall ensure that all future
applications, contracts, and funding instruments involving the expenditure of CDBG and
HOME monies contain an explicit requirement for sub - recipients to collect and report data
on the race, ethnicity, gender, and disability characteristics of applicants and participants, or
beneficiaries, utilizing the collection and reporting procedure designated by the City.
11. Benefits, Services, and Methods of Administration — Analysis of Participation in Funded
Programs and Activities (24 C.F.R. 1.4, 6.4, 8.4)
Within sixty days from the effective date of this Agreement, the City shall develop a written
policy requiring, on an annual basis, a city -wide, comprehensive analysis of the rates of
participation by minority racial and ethnic groups, persons with disabilities, and female -
headed householders in all City housing and community development activities and public
service programs funded in whole or in part by CDBG and HOME. The policy will include
requiring the development and implementation of affirmative marketing and outreach
strategies to ensure that underrepresentation does not exist or develop in any funded activity.
Under - representation is defined for purposes of compliance with this Agreement as a
participation rate in any funded activity wherein the participation rate by a particular
minority group is less than that minority's representation among the general population
within the City.
Within seventy days from the effective date of this Agreement, the City shall provide to
HUD a copy of its written policy. Within ten days of HUD approval, the City shall
disseminate the policy and communicate it to all relevant entities, and will implement it.
The first annual comprehensive City analysis of the afore - mentioned rates of participation
shall be completed not later than one year after HUD approval of the policy or within 90 days
after the close of the City's current program year, whichever is later. The City shall include
in its submission to HUD all documentation that provides the documentary foundation for the
analysis. The analysis will be submitted to HUD on an annual basis thereafter for the
duration of this agreement.
12. Fair Housing Act Training (42 U.S.C. 3601, et seq.; 24 C.F.R. Part 100):
Within one (1) year of the effective date of this Agreement, the City and its public service
sub - recipients will attend Fair Housing Act Training to be conducted by an appropriate
6
agency approved by the Department. The City will obtain prior written approval of a training
session from the FHEO Region VIII Director or his or her designee.
IV. TRAINING, MONITORING, AND REPORTING PROVISIONS
(24 C.F.R. §§ 1.6(b), 135.90)
13. Within thirty days of the effective date of this Agreement, the City agrees to train the Section
3 Coordinator in the provisions and obligations of this Agreement, and the City's Section 3
responsibilities.
The City agrees to train current and future staff of the City's Department of Housing and
Community Services in the City's responsibilities to affirmatively further fair housing and
assume responsibility for fair housing planning, and in the provisions and obligations of this
Agreement.
14. HUD will monitor compliance with this Agreement. HUD will require written reports
concerning compliance; may inspect premises, examine and copy documents; and may
interview personnel, with reasonable notice during normal business hours during the duration
of this Agreement. The City assures its full cooperation in any monitoring review
undertaken by HUD to ensure compliance with this Agreement.
15. HUD will determine whether the City has complied with the terms of this Agreement. The
City retains any due process or other rights to review or appeal any HUD determination.
16. The City shall submit to the Director, in addition to submissions set forth elsewhere in this
Agreement, written reports and /or documents that summarize the completion, or the progress
of remedial actions required under the Special Provisions sections of this Agreement. The
first report will be due six months after the effective date of this Agreement; the second
report will be due twelve months after the effective date; subsequent reports will be due
every twelve months thereafter for the term of the Agreement.
17. All required certifications and documentation of compliance will be submitted to:
Evelyn Meininger, Region VIII Director
Office of Fair Housing and Equal Opportunity, 8AEH
U.S. Department of Housing and Urban Development
1670 Broadway, 23 Floor
Denver, Colorado 80202 -4801
V. FAILURE TO CARRY OUT THE TERMS OF THIS AGREEMENT
It is understood that this Agreement may serve as the City's sole notice of the required contents
of and deadlines for progress reports. Failure to provide documentation of compliance with the
terms of this Agreement constitutes a breach of the Agreement, and may result, without further
notice to the City, in a referral of the matter to the Department of Justice for appropriate
enforcement proceedings, the termination of or refusal to grant or continue federal financial
assistance, or the initiation of debarment proceedings.
7
SIGNATURE PAGE
April 9, 2012
Chris K fma , P esi% -nt of the City Council Date
City of Pueblo
Attest:
Gina tcher, City Clerk
Approved on behalf of the Secretary:
f d,cr� c72/ ice
Evelyn Meininger, Region VIII Director Date
Office of Fair Housing and Equal Opportunity
CASE NUMBERS: 08- 109- R001 -3 (Section 3)
08- 10- R001 -9 (Section 109)
08- 10- R001 -6 (Title VI)
9