HomeMy WebLinkAbout06922AS AMENDED 1219/02
ORDINANCE NO. 6922
AN ORDINANCE APPROVING AND ADOPTING THE CITY OF PUEBLO'S ANNUAL ACTION
PLAN FOR THE YEAR 2003 LISTING PROJECTS AND FUNDING FOR COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) AND HOME FUNDS, AUTHORIZING THE
PRESIDENT OF THE CITY COUNCIL TO SUBMIT THE APPLICATION TOGETHER WITH ALL
REQUIRED AND NECESSARY CERTIFICATIONS, ASSURANCES AND DOCUMENTATION TO
THE U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR CDBG AND HOME
FUNDS, AND APPROPRIATING AND BUDGETING CDBG AND HOME FUNDS THEREFORE
WHEREAS, the City of Pueblo 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 fiscal year 2003; and
WHEREAS, the City of Pueblo conducted a citizen participation process that included
holding four public meetings at different locations within the City of Pueblo in addition to a public
hearing before City Council to obtain the views of citizens, non - profit and neighborhood groups on
the City's housing and community needs. NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The City Council hereby finds and determines that the City of Pueblo's Annual Action Plan
FY 2003 listing those projects and programs for funding from CDBG and HOME federal funds a
copy of which is attached hereto as Exhibit B and incorporated herein ( "Annual Action Plan FY
2003 "), 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 slums and blight.
SECTION 2
City Council hereby approves and adopts the Annual Action Plan FY 2003, which
implements the fourth year of the Five Year Consolidated Plan as approved by the U. S.
Department of Housing and Urban Development.
SECTION 3
The President of the City Council is hereby authorized to submit in the name of the City of
Pueblo the Application and the Annual Action Plan FY 2003, together with all required and
necessary certifications, assurances and documentation to the U. S. Department of Housing and
Urban Development for $1,900,000 in Federal Community Development Block Grant funds and
$900,000 in HOME funds.
SECTION 4
Community Development Block Grant funds in the amount of $1,900,000 and HOME funds
in the amount of $900,000 are hereby budgeted and appropriated for the projects in the Annual
Action Plan FY 2003 with such project modifications and appropriations therefore as the City
Council may by Resolution approve upon the recommendation of the City Manager and
certification of the Director of Finance that there are available grant funds to meet such
appropriations.
INTRODUCED November 25, 2002
BY Al Gurule
Councilperson
APPROVED:
ATTEST: resident of City Council
City C
PASSED AND APPROVED: December 9, 2002
U
Background Paper for Proposed
Ordinance
AGENDA ITEM # 0 2(0
DATE: November 25, 2002
DEPARTMENT: HOUSING AND CITIZEN SERVICES -TONY BERUMEN
TITLE
AN ORDINANCE APPROVING AND ADOPTING THE CITY OF
PUEBLO'S ANNUAL ACTION PLAN FOR THE YEAR 2003
LISTING PROJECTS AND FUNDING FOR COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) AND HOME FUNDS,
AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO
SUBMIT THE APPLICATION TOGETHER WITH ALL
REQUIRED AND NECESSARY CERTIFICATIONS,
ASSURANCES AND DOCUMENTATION TO THE U. S.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
FOR CDBG AND HOME FUNDS, AND APPROPRIATING AND
BUDGETING CDBG AND HOME FUNDS THEREFORE
ISSUE
The purpose of this agenda item is to have City Council adopt and approve the Annual Action Plan
2003 with approved funding recommendations for the CDBG and HOME program. The FY 2003
CDBG funding recommendations are the result of the Citizens Advisory Committee (CAC).
Funding recommendations for the HOME program are consistent with the Consolidated Plan as
submitted to HUD in January 2000.
Submission of an Annual Action Plan 2003 for both the CDBG and HOME program is a HUD
requirement and must include a citizen participation process. This Annual Action Plan 2003 is the
fourth year update of the Consolidated Plan that was adopted by City Council and submitted to HUD
in January 2000. A draft of the plan was made available during the public meetings.
This Annual Action Plan 2003 lists the projects and activities to be funded from CDBG and HOME
funds in order to meet the City's overall housing and community development needs as specified in
the Consolidated Plan (FY March 1, 2000 - February 28, 2005).
RECOMMENDATION
Adopt and approve the attached ordinance endorsing the 2003 Annual Action Plan for the CDBG
and HOME Programs.
BACKGROUND
Each program year the City of Pueblo in order to continue to receive CDBG and HOME funds must
draft an annual action plan. The plan must include a citizen participation process. Pueblo has
followed a detailed citizen participation plan that provides for and encourages citizen participation
and provides citizens with reasonable and timely access to local meetings, information and records
relating to the City's use of CDBG and HOME funds. A Citizens Advisory Committee makes
recommendations on CDBG funding. The public meetings allow citizens to make comments on the
HOME program and how Pueblo should spend its CDBG and HOME funds toward the housing and
infrastructure needs of the community. Following this process final funding recommendations for
CDBG and HOME are presented to the City Council. Adoption of this Ordinance is the culmination
of the annual consolidated plan funding application process.
BACKGROUND- CONSOLIDATED AND ONE -YEAR ACTION PLAN
The Consolidated Plan is more than a "plan." It is the stapling together, into one process and one
document, all of the applications and performance reporting requirements (as well as the planning
requirements) of five programs run by CPD (the Office of Community Planning and Development)
at HUD. Those five programs are CDBG, HOME, ESG (the Emergency Shelter Grant program of
the McKinney Homelessness Act), HOPWA (Housing Opportunities for Persons with AIDS), and
CHAS (the Comprehensive Housing Affordability Strategy).
The Consolidated Plan is a required planning document that must be prepared for this community to
continue participating in the Community Development Block Grant and HOME Investment
Partnership programs. The City submitted its Five -Year Consolidated Plan in January 2000. It
describes the City's plan to create a viable urban community that offers decent affordable housing, a
suitable living environment, and expanding economic opportunities especially for low and moderate -
income persons. The time frame of that five -year plan is March 1, 2000 — February 28, 2005.
The purpose of this Annual Action Plan FY 2003 is to update the Five -Year Consolidated Plan. The
plan also provides the City with a basis for assessment through the Consolidated Annual
Performance and Evaluation Reports (CAPER). The Annual Action Plan describes the resources
expected to be available in the coming program year from Federal, non - Federal and private sources.
It includes a description of the activities that will be undertaken to meet the stated objectives in the
Five -Year Consolidated Plan, including those designed to meet homelessness and other special
needs. The Action Plan also describe actions to be undertaken to address obstacles in meeting the
needs of the under - served, removing barriers, and enhancing coordination in the community.
BACKGROUND- FUNDING PROGRAM
HOME: HOME is a federal program (U.S. Department of Housing and Urban Development)
administered through the Department of Housing as part of its overall funding program. The program
has been in place for ten years and is providing $900,000 to the City of Pueblo for housing activities.
The program emphasizes adding assisted housing units that are affordable to households earning up
to 80% of the Area Median Income ($37,500 for a four person household). The City of Pueblo and
Pueblo County share these funds based on an intergovernmental agreement. HOME funds are the
primary source of funds to implement the housing goals of the five -year Consolidated Plan. Staff
explains the use of these funds during the public meetings and solicits comments as to the use of
these funds by the city of Pueblo.
Community Development Block Grunt (CDBG): CDBG is also a federal source of funding, in
existence since 1975. Funding may be used for a variety of housing and community development
activities, which benefit low- income people. Since 1979, approximately 15% of each year's
allocation, usually $250,000 to $300,000 a year, is spent on public services and 20% on program
administration. As with the HOME program, the target annual household income range for CDBG
recipients is 80% of the Area Median Income. Recommendations for these funds are from the CAC.
BACKGROUND- FUNDING REVIEW PROCESS
The citizen participation process for allocating fiscal year 2003 CDBG and HOME dollars was
initiated in September 2002. Through public meetings held throughout the city, interested parties
and citizens were invited to submit comments and make application and made aware of the funding
requirements for each program. Members of the Citizen Advisory Committee were available at the
meetings to hear presentations. The staff of the Department of Housing wishes to acknowledge both
the time and the contributions in terms of time, insight, and commitment to the process by the
individual members.
For the applications submitted city staff provided technical assistance. City staff analyzed the
application proposals, evaluating financial feasibility, organizational experience, and the capacityto
develop and manage new units. Following the public meetings, Staff presented to the CAC a
summary report of the ranking of the CDBG applications by all CAC members. On October 30,
2002, the CAC held a final deliberation session in which each member of the committee reviewed,
discussed the rating of each CDBG project. Staff explained the eligibility of the CDBG and HOME
programs and answer questions on the application process. The CAC presented their CDBG
recommendations at the City Council work session on November 11, 2002. The HOME program
funding recommendations were also presented and are consistent with the five -year housing goals as
stated in the Consolidated Plan.
FINANCIAL IMPACT
FY 2003 CDBG funds are estimated at $1,900,000 and HOME funds at $900,000, however,
Congress has not finalized as of the date of this Ordinance the entitlement amounts to local
governments. hi addition, an estimated $85,000 will be earned through program income in 2003,
principally through payback of rehab loans.
ATTACHMENTS
Exhibit A: Funding Recommendations FY 2003
Exhibit B: Draft Annual Action Plan 2003
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_
HOME Program Recommendations
March 1, 2003 - February 28, 2004
Notes: Under Conso Ag ty g g t go to
Non -Profit CHIDOs'for Housing Development, In the year 2000 the City and County developed a housing development loan fund
with the city contributing $200,000 and county $200,000 for three years of which 2003 -2004 will be the forth year. Agreement will
need to be renewed in 2003.
�i
City RehablNew Housing $'278, 000 I Loans for Rehab, ACQUISITION, Rehab 10- 15 units low
Construction to Include LEAD BASE ABATEMENT 2ND Income Hshlm up to
Infrastructure for Housing TO 3RD MORTGAGE LOANS $25,000 per unit. Owner
Program 2 mortgage LOW occupied and multi -
Interest Loans, Vacant Lot family in target areas
Acquisition/Infill Housing
i
i
i
Pueblo County/City $200,000 Housing Development Loamfor Loan made aflerRFPwill
Housing Development Loan
LIM units mostly multifamily be issued. 2nd -3rd
Fund (4' year $200,000, from County To Be mortgages leveraging
COHLYZbntiOn) Matched CHFA Tax Credit
Program or other private
lender loans. "Bridge"
Loans to be provided
Downpayment Assistance $'70,000 Private Lender Is, Mortgage Loans 10 @$3500perloanfor
Program purchase ofhome, funds
are 2nd mortgage on
properly
CDBG Funds to provide $353,729
Administration for Dept of HOME Share afDept.
Housing /Citizens Sry $64,000 Budgeta $417,354 for
2003,
Set Asidefor Community $'1.3.5,000 City to issue RFPfor housing HUD Required Set-aside
Housing Development development loansfor LIM units to for Non - Profit Developer
Organizations (CHDOs)
be awarded to Non- Profjt RFP to be Issued
I
, i
I p.
P ueblo County Share @ $153,000 Per Intergovernmental Agreement Downpayment ASst
20% 20 %ofHOMEfunds Ownerroccup, doomb
TOTAL ESTIMATED
AMOUNT $900,000
rtium reement Pueblo Coun receives 20 % of HOME entitlement rant 15 % of HOME rant must
13
Funding Recommendations FY 2003 exhibit A
13
Funding Recommendations FY 2003 exhibit A