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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