HomeMy WebLinkAbout6910RESOLUTION NO. 6 910
A RESOLUTION TO APPROVE AN APPLICATION FOR $812,000 TO THE
DEPARIMIWr OF HOUSING AND URBAN DEVELOPMENT (HUD) FOR THE
HOME INVESTMENT PARINERSHIPS ACT (HOME) FUNDING, AUTHORIZING
THE CITY MANAGER TO SUBMIT SAME AND TO ACCEPT FUNDING ON
BEHALF OF THE CITY OF PUEBLO AND PUEBLO COUNIY IF APPROVED
AND DESIGNATING THE CITY MANAGER AS THE CITY'S REPRESENTATIVE
TO ACT IN CONNECTION WITH THE APPLICATION
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, that:
SECTION 1.
The Application to the Department of Housing and Urban Development for
funding under the HOME Investment Partnership Act (HOME), a copy of which
is attached hereto and made a part hereof by reference, including ail the
understandings and assurances contained therein, was submitted to HUD as
required and the City Manager of the City of Pueblo is hereby authorized
to execute and submit said Application on behalf of the City of Pueblo
acting as the lead government agency under the HOME program. The City
Manager is hereby designated as the City's representative to act in
connection with the Application, to provide such additional information as
may be required by HUD, and if the Application is approved, to accept on
behalf of the City of Pueblo said HOME Investment Partnership Act subject
to the Consortium Agr passed by City Council on September 9, 1991.
PRODUCED April 13 , 1992
5"
JOHN CALIFANO
COUNCILPERSON
ATTEST:
CITY CLERK
IDENT OF THE COUNCIL
,�
D D
D
City of Pueblo
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
March 24, 1992
Ms. Barbara H. Richards, Director
Office of Cmnunity Planning & Developwnt
U. S. Department of HUD
Denver Regional Office /Regional VIII
Executive Tower - 1405 Oartis Street
Denver, CO. 80202 -2349
Dear Ms. Richards:
Attached is the Form 424: Application for Federal Assistance under the
HCM Program, including Program Description. We wish to thank members of
your staff, especially Ramona Elizande, for their assistance. If there
are any questions, Please contact Tony Berman, Director, Department of
Housing and Cram unity Development at (719) 584 -0830.
Sincerely,
Lewis A. Quigley
City Manager
IAQ/TB /7b
Pc
One City Hall Place P.O. Box 1427 Pueblo, Colorado 81002 -1427 (719) 584 -0830 Fax (719) 580 -0844
OMB Approval No. 0348 -0043
APPLICATION FOR
2. DATE SUBMITTED
Applicant Identifier
FEDERAL ASSISTANCE
March 24 1 992
1. TYPE OF SUBMISSION:
3. DATE RECEIVED BY STATE
State Application Identifier
Application Preapplication
N/A
® Construction ❑ Construction
4. DATE RECEIVED BY FEDERAL AGENCY
Federal Identifier
❑ Non - Construction ❑ Non- Construction
S. APPLICANT INFORMATION
Legal Name
Organizational Unit:
City of Pueblo Colorado
Address (give city, county. state. and zip code)
Name and telephone number of the person to be Contacted on matters involving
#1 City Hall Place
this application (give area code)
Pueblo,CO 81003
Mr. Tony Berumen, Director
Department of Housing and Com. Development
(719) 584 -0830
i. EMPLOYER IDENTIFICATION NUMBER (EIN):
1. TYPE OF APPLICANT: (enter appropriate letter in box)
A. State H Independent School Dist.
8 4 6 O O O 6 1
B County L State Controlled Institution of Higher Learning
C Municipal J Private University
1. TYPE OF APPLICATION:
D. Township K. Indian Tribe
® New ❑ Continuation ❑ Revision
E. Interstate L Individual
F Inlermunicipal M Profit Organization
If Revision, enter appropriate letter(s) in box(es): 1:1 0
G Special District N. Other (Specify) _
A Increase Award 8 Decrease Award C Increase Duration
D Decrease Duration Other (specify):
9. NAME OF FEDERAL AGENCY:
Department of Housing and Urban
- - - -- - -- - --
Development (HUD)
10. CATALOG OF FEDERAL DOMESTIC
ASSISTANCE NUMBER: 1 4 8 1 2 1 3 9
11. DESCRIPTIVE TITLE OF APPLICANT'S PROJECT:
HOME: Housing Rehabilitation Assistance
TITLE Title II, Home Investment
for owner- occupied and rental
Partnership Act (HOME)
households. Consortium of the
City of Pueblo and the County
12. AREAS AFFECTED BY PROJECT (titres, counties, states, etc.):
of Pueblo.
Pueblo, Colorado
17. PROPOSED PROJECT:
14. CONGRESSIONAL DISTRICTS OF:
Start Date
Ending Date
a Applicant : b. Project
611/92
6/1/94
3r Con gressional Distric 3rd Congressional District
0. ESTIMATED FUNDING:
11. IS APPLICATION SUBJECT TO REVIEW BY STATE EXECUTIVE ORDER 12372 PROCESS?
a. YES. THIS PREAPPLICATIONiAPPLICATION WAS MADE AVAILABLE To THE
a Federal
S 812 ,000-00
STATE EXECUTIVE ORDER 12372 PROCESS FOR REVIEW ON
DATE
b NO. ® PROGRAM IS NOT COVERED BY E O. 12372
OR PROGRAM HAS NOT BEEN SELECTED BY STATE FOR REVIEW
b Applicant
S .00
c State
S .00
d Local
S .00
e Other
f .00
t Program Income
$ .00
17. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DE9T7
Yes If "Yes." attach an explanation. ® No
y TOTAL
$ 1312, 00000
t1. TO THE BEST OF MY KNOWLEDGE AND BELIEF. ALL DATA IN THIS APPLICATION, PREAPPLICATION ARE TRUE AND CORRECT, THE DOCUMENT HAS BEEN DULY
AUTHORIZED BY THE GOVERNING BODY OF THE APPLICANT AND THE APPLICANT WILL COMPLY WITH THE ATTACHED ASSURANCES IF THE ASSISTANCE IS AWARDED
a Typed Name nl Authorized Representative
b Title
c Telephone number
Lewis A. Quigley
City Manager
(719)584 -0800
d Sign Lure of Authorized Represen
e Date Signed
�
�uws dlhons of Usable standard corm 310 • tV 4
prescribed by OMB l,,r ,,..3r A•102
Authorized for Local Reproduction
HOME PROGRAM DESCRIPTION
Grant Year 1992
Consortium of the City of Pueblo and Pueblo County
Prepared for: Department of Housing and Urban Development
Submitted: March 25, 1992
Prepared by: City of Pueblo, Department of Housing & Community Development 1
OUTLINE
I. EXECUTIVE SUMMARY
A. Consortium CHAS Housing Strategy
II. FORMS OF INVESTMENT
III. PROPOSED USE OF HOME FUNDS BY CONSORTIUM
A. Guidelines for Resale
IV. HOME ALLOCATION OF MONIES
V. COMMUNITY HOUSING DEV ORGANIZATION
VI. AFFIRMATIVE MARKETING & MINORITY
AND WOMEN OWNED BUSINESSES
VII. HOME RECORD - KEEPING REQUIREMENTS
XI. APPENDICES
Certifications
Attachments
1
1
2
2 -3
5
5
6
7
CITY OF PUEBLO AND PUEBLO COUNTY CONSORTIUM
HOME PROGRAM DESCRIPTION
I. EXECUTIVE SUMMARY
The HOME formula allocation for the Consortium consisting of the City of Pueblo
and Pueblo County local governments amounts to $812,000. Under a formal
Consortium Agreement between the two participating governments the City of Pueblo
will receive $649,600 and Pueblo County $162,400 to establish an owner occupied
rehabilitation program in areas outside city limits. Non - profit participation
will allow Neighborhood Housing Services (NHS), acting as the local Community
Housing Development Organization (CHDO), to receive $125,000.
In response to the CHAS identification of housing needs and a housing delivery
approach that would involve the two local governments without the administrative
difficulty involved in dealing with different entities, the City of Pueblo will
act as lead agency for HUD. Each jurisdiction's proposed use of HOME funds will
be defined separately under Section III of this program description. Housing
services will be within each jurisdiction's geographic boundary. Both the Pueblo
County local government and Neighborhood Housing Services individual program
description is included as Attachment 1 and 2 in the Appendix Section.
Under the Consortium approach, The City of Pueblo will act as the lead
participant working directly with the Pueblo County and Neighborhood Housing
Services. The City will establish a HOME Investment Trust Fund and do all
project set -up under the Cash Management Information (C\MI) System used by HUD to
process each project in compliance with the HOME requirements. The City of
Pueblo will then provide each agency will monthly project status reports.
The Consortium will offer several HOME program alternatives for persons of low
and moderate income households identified in the CHAS as needing housing
assistance. Each jurisdiction has the goal of helping as many of the Consortium
loan applicants as possible within its boundaries and among different categories
of housing need.
Consortium CHAS Housing Strategy
Section II of the current Comprehensive Housing Affordability Strategy (CHAS)
specifies the following as housing priorities:
1. To encourage and support the rehabilitation of existing
housing stock for very low, low- and moderate - income households
principally for owner occupants.
2. To increase and preserve homeownership through owner - occupied
rehabilitation, energy conservation and first -time homebuyer programs to
assist renter households become homeowner.
3. To secure contracts with HUD to expand the supply of affordable
rental units and new construction for very low and low income households.
-1-
II. FORMS OF INVESTMENT
The Consortium will use the following forms of assistance with as much
utilization of the primary leveraging techniques so as not to invest anymore HOME
funds in combination with other federal assistance that will be necessary to
provide affordable housing:
1. Interest Sudsidy Loans
2. Deferred and low- interest loans
3. Non - interest Bearing and Interest Bearing Loans
4. Principal Reduction
5. Grants
III PROPOSED USE OF HOME FUNDS BY CONSORTIUM PARTICIPANT
The following proposed uses of HOME funds are essential to the implementation of
the Consortium's approved CHAS for approving the supply, affordability, and
availability of decent, safe, sanitary housing. Neither the City of Pueblo nor
the County propose to do new construction or tenant assistance with HOME funds;
but, the Consortium would like to reserve the right to request such new
construction later deemed necessary.
City of Pueblo Interest SudsidyLoans
Method of Assistance: Moderate Rehabilitation of owner - occupied units
Estimated Number of Units: 12
Rehabilitation of owner occupied dwellings up to $17,500. Target income group
will be those households at 65 to 80% of median income. Applicants who are high
quality "bankable" loan potential will be screened for referral to a local
private lender, by which, HOME dollars will be used to leverage as many private
dollars as possible. By such methods the City of Pueblo program will subsidize
or buys down the lender's market interest rate to the desired housing debt
standard of 30% of household income. An interest subsidy, as a direct cash grant
to lower the effective higher market interest to the lower borrower can also be
described as a discounting of a lower yielding loan to effect a market rate of
interest. Interest rates will be targeted at three percent. Because the City
will provide the present value of the difference between market rate and the
three per -cent rate banks will find this arrangement attractive, allowing the
private lender funds to be used at an approximate ratio of 3 to 1 HOME dollars to
be used. With the monthly payments to be received, the City will seek to
recapture its HOME investment by having the lender deposit these funds into a
HOME Investment Trust Fund revolving account that will meet the requirements of
the HOME match for future legislative purposes.
County and City of Pueblo Housing Rehabilitation Loans
Method of Assistance: Moderate Rehabilitation of owner - occupied units
Estimated County Number of Units: 11 to 15
Estimated City of Pueblo Number of Units: 5 to 8
Loans for rehabilitation of owner occupied dwellings up to $ 17,000 at 15 years
both deferred and low interest rate loans. Each jurisdiction will concentrate in
their respective geographic areas. Pueblo County area will include rural areas
outside the corporate limits of the City of Pueblo.
-2-
Target income groups will be below 80% of medium income with special payback
provisions for households at 50% medium income. These eligible properties will
meet, after rehabilitation is complete,the City of Pueblo Housing Code.
Applicants will be allowed to borrow funds based on analysis of some payback
ability. HOME funds will first be used to correct City of Pueblo Housing Code
violations addressing health and safety. The basic mechanical systems consisting
of roofs, plumbing (water and sewer), electrical, and structural will be brought
up to housing code before other improvements are made to the property.
City of Pueblo HOME Substantial Rehabilitation Program
Method of Assistance: Rehabilitation of owner - occupied units
Estimated Number of Units: 5 to 8
This program will be similar to the HUD 312 Program which will allow more
intensive rehabilitation for households. Owner - occupants of one- to four -unit
properties who have incomes below 80 percent of Pueblo's median income will be
eligible for loan limits as high as $33,500 at 3% interest rates with 20 year
terms. Emphasis will be for larger families greater than four or more.
Non - housing code improvements cannot exceed 40% of the total loan amount. The
most recent assessed value of the property will be determined to meet the
loan -to -value ratio requirements. These loans will be targeted toward borrowers
likely to repay and where there is sufficient value in the property, in case the
borrower defaults. Emphasis will be for those loans to applicants in riskier
neighborhoods at more attractive rates than conventional rehabilitation loans.
The applicants total housing expense (PITI) including any HOME loan cannot
exceed 30% of gross monthly income. Total debt cannot exceed 45% of gross monthly
income.
City of Pueblo HOME Rental Rehabilitation Funds
Method of Assistance: Rehabilitation of investor owned units
Estimated Number of Units: City of Pueblo 26
Potential income from the property will be analyzed. HOME funds for multifamily
loans will be similar to guidelines under the previous HUD funded Rental
Rehabilitation Program. The City of Pueblo will follow financial techniques to
fit the best deal. All options will be considered such as assumable,
forgivable, Deferred Payment Loan or grant versus a below market interest rate
loan coupled with a conventional loan or other private investment. Project
financial feasibility and soundness of projects also an owner's investment and
return will be analyzed. For Home - assisted rental housing not less than 90 % of
HOME funds will be invested in units occupied by families whose annual income do
not exceed 60 % of median income for Pueblo County. The City of Pueblo will
select low income neighborhoods with priority for rehab of vacant units. Target
units for rehab will be larger families units with two or more bedrooms. Minimum
rehabilitation costs must total $1,000 per unit in each project. Rehabilitation
standards will be the City of Pueblo Housing Code with all units after
rehabilitation meeting the Section 8 HQS. Eligible projects will be carefully
screened for those receiving other federal assistance except tenant based Section
8 Existing Housing Program under 24 CFR Part 882 or the Housing Voucher Program
under 24 CFR 887, Subparts A and B. HOME funds will provide preferred financing
for:
1. Purchase or Refinance of Existing Vacant Multi- family units;
2. Substantial Rehabilitation of Existing Apartments; and
3. Single residential homes acquisition and rehabilitation for rental for
lower income families
-3-
City of Pueblo HOME First Time Homeownership Assistance Loans
Method of Assistance: Acquisition and Rehabilitation of single residential units
for first -time homeowners.
Estimated Number of Units: City of Pueblo 6 - 10
Primarily bridge loans for allowing homeownership financing to take place. The
proposed type of homeownership that potential homebuyers will acquire under this
program will include both fee simple and lease /purchase arrangements. Under the
lease /purchase homebuyers the City of Pueblo will escrow a percentage of each
month's rent for the homebuyer for the two year lease period to allow for an
accumulation of funds for a future lump -sum payment toward private financing of
the home when the option to purchase is exercised. In addition homeownership
counseling will be given the family during this period. The City of Pueblo will
use HOME fund to provide homeownership opportunities by techniques such as
downpayment assistance, sales price reduction, below market interest rate loans,
closing cost assistance and Colorado Housing Finance Authority (CHFA) first
mortgage FHA mortgage insurance. Loans will be secured by promissory notes and
second and third mortgage. Under a now existing City of Pueblo homeownership
program a private lender using CHFA low interest bond funds makes a first
mortgage FHA loan to a qualified borrower at 29% of gross income for principal,
interest, taxes, and insurance. The City of Pueblo places a deferred or
low- interest loan behind the Lender's loan for the remainder of the
rehabilitation cost. The borrower thus will be allowed to purchase an older
Pueblo home and borrow funds to rehabilitation the property at an affordable
monthly mortgage payment. All homes after rehab must meet the City of Pueblo
Housing code.
In addition to the above HOME funds will attempt to be used to provide for
acquisition downpayment assistance for conventional financing of homeownership by
low- and moderate income families. Under a typical downpayment assistance loan
program, borrowers provide a 10% downpayment, the City provides a 10%
interest- accrued, recertified, deferred loan and a conventional loan will
provides variable or fixed rate financing for the remaining 80 %. The City of
Pueblo recertifies borrowers every year, and if their income has increased by a
specific amount, the deferred loan converts to an amortizing loan.
Section 203 (K) Acquisition/Rehabilitation Loans and CHFA
The City of Pueblo currently uses under it's Pueblo Urban Homestead Program the
FHA Section 203 (K) Program. Loans are designed to facilitate the purchase and
rehabilitation of vacated or boarded -up older Pueblo homes that are feasible to
rehabilitation and provides renter households opportunities to obtain
homeownership. Section 203 (k) loans carry 30 year terms and are currently
being loan by (CHFA) at 7.8% interest rate. Section 203 (K) can frequently
provide less costly private funds which the City may more efficiently leverage.
Section 203 (K) provides an additional resource with which the City can leverage
HOME funds with acquisition needs. The Home mortgage for assistance will be equal
to the term of the HUD - insured mortgage.
Guidelines for Resale
In event of sale of properties by eligible families assisted with HOME funds for
first -time homebuyers, the City of Pueblo will follow deed restrictions
-4-
procedures that will comply with 24 CFR 92.254. This would allow the resale of
properties to a reasonable range of low- income homebuyers and a fair return to
the initial owner. The City of Pueblo will adopt provisions by which any public
subsidy will be forgiven over the required period of affordability based on each
year the family lives in the home. Terms of resale will assure that PITI will
not exceed 30% of gross annual income for families at 75% of area median income
for 15 years or longer.
IV. HOME ALLOCATION OF MONIES
Table A below summarizes the proposed use of HOME funds by the Consortium:
V. COMMUNITY HOUSING DEVELOPMENT ORGANIZATION AND HOME
The City of Pueblo has requested and will enter into a formal agreement with the
local non-profit housing agency Neighborhood Housing Services who will act as
the local Community Housing Development Organization (CHDO) to address two
primary needs of their targeted areas:
1. Increase investment in housing owned, developed or sponsored by NHS and
thereby increase the amount of affordable housing to the low- income neighborhood
served by NHS.
2. In response to the decline in the housing stock conditions in NHS area the
City of Pueblo will contribute $125,000 of HOME funds for their area of
neighborhood revitalization.
Activities to be carried out by NHS with HOME funds
It is the intent of NHS to provide, with the use of $75,000 HOME funds, the
purchase and rehabilitation of 10 vacant single family homes in the
Northside/Downtown neighborhood of Pueblo. Approximately $50,000 of the HOME
funds will provide downpayment assistance to purchase and rehabilitate a vacant
and boarded up eight unit multi- family dwelling to be used for low and moderate
income clients with the assistance of the Pueblo Housing Authority.
Total Home $ Rental $ Owner $
New Construction
Total Home $
Rental $
Owner $
New Construction
- 0
$
$ 0
Substantial Rehabilitation
$ 331,000
$131,000
$ 200,000
Other Rehab
$ 321,400
$ 19,000
$ 302,400
Acquisition
$ 34,600
$ 0
$ 34,600
Tenant Assistance
$ 0
$ 0
$ 0
V. COMMUNITY HOUSING DEVELOPMENT ORGANIZATION AND HOME
The City of Pueblo has requested and will enter into a formal agreement with the
local non-profit housing agency Neighborhood Housing Services who will act as
the local Community Housing Development Organization (CHDO) to address two
primary needs of their targeted areas:
1. Increase investment in housing owned, developed or sponsored by NHS and
thereby increase the amount of affordable housing to the low- income neighborhood
served by NHS.
2. In response to the decline in the housing stock conditions in NHS area the
City of Pueblo will contribute $125,000 of HOME funds for their area of
neighborhood revitalization.
Activities to be carried out by NHS with HOME funds
It is the intent of NHS to provide, with the use of $75,000 HOME funds, the
purchase and rehabilitation of 10 vacant single family homes in the
Northside/Downtown neighborhood of Pueblo. Approximately $50,000 of the HOME
funds will provide downpayment assistance to purchase and rehabilitate a vacant
and boarded up eight unit multi- family dwelling to be used for low and moderate
income clients with the assistance of the Pueblo Housing Authority.
Total Home $ Rental $ Owner $
New Construction
$ 0
$ 0
$ 0
Substantial Rehabilitation
$50
$50
$ 0
Other Rehab
$75,000
$
$75,000
Acquisition
$
$
$
Tenant Assistance
$ 0
$ 0
$ 0
-5-
VI. AFFIRMATIVE MARKETING AND MINORITY AND WOMEN OWNED BUSINESSES
Outreach to Minority and Women Business
The City of Pueblo through the procurement policies followed by the Department of
Purchasing strongly supports small minority and women business opportunities.
Some of the affirmative steps the City of Pueblo takes are:
To encourage minority business participation in the bidding process the
department actively subscribes to publications such as the directory of
" Minority and Women Advertisers and " Colorado Women's News ". These
procedures assure such businesses have an equal opportunity to compete and obtain
contracts.
Encourage General Contractors on larger construction jobs to divide total
contract requirements into small tasks or quantities or subcontract work to
minority businesses and women's with the City of Pueblo projects.
Requires no formal performance and payment requirements on smaller
housing rehabilitation projects less than $10,000 except for general business
insurance and compliance with local license requirements, thereby assisting
smaller businesses.
Fair Housing Choice
The City of Pueblo, Pueblo County and NHS, are all members of the Fair Housing
Task Force Committee. The Fair Housing Task Force conducted an analysis of fair
housing impediments and under its Fair Housing Strategies Plan took action
designed to address the conditions identified as limiting fair housing choice.
The Proposed Use of Home funds as defined in this Program Description will assist
with the implementation of the New Horizon's Program. In order to attract
eligible persons from all racial, ethnic, and gender groups to the available
housing the Consortium will make good faith efforts by:
Using the Fair Housing Task Force network brochures to inform the public,
in churches, employment centers and other housing counseling agencies.
Using the EHO logo type or slogan in press releases and written brochures
that advertise the programs.
Using housing advocates agencies such as HOPE ALIVE, SRDA, Family Counseling
Agency and other community housing advocates.
Periodic assess the affirmative marketing efforts following advertisements
VII. OTHER CONSORTIUM HOME PROCEDURES
Other Loan Underwriting Criteria
All HOME loans will be secured by promissory notes secured by deeds of trust.
Subordination to no less than third position will be considered when
appropriate. The City frequently receives loan packages in which a low - income
111
borrower has a second or third mortgages lien that carries an exorbitant interest
rate. The City will analyze such bad loans with careful consideration of the
program intent to meet HOME objective. The City's note and deed of trust will
allow the City to accomplish it's community development goals and those of the
CHAS. The borrower greatly benefits from reduced payments on the refinance, the
elimination of an additional lien from their property and the consolidation of
mortgage debt obligations.
VII. CONSORTIUM - RECORD KEEPING
HOME project set -up procedures will be administered by the City of Pueblo for
entering into HUD's Cash Management information System. The City of Pueblo will
also track compliance with the 15 -day initial disbursement requirement.
The City of Pueblo will provide full cycle reporting to participating other
agencies involved in the HOME program to assure effective program
administration. The City will monitor HUD's C/1VII System which maintains a
running account of funds for each project including the amount committed to
specific projects. Monthly financial reports generated by the System will be
passed on to Pueblo County and NHS. Staff of the City of Pueblo will process
reservation and obligation of funds in accordance with the C/MI System.
Pueblo County and NHS, in addition, will maintain files that summarize (i) each
payee, (ii) date of payment, (iii) amount, (iv) account running balance, and
other funding sources for each HOME project. Upon either Pueblo County or
Neighborhood Housing Services recordation of a notice of completion for the HOME
funded project general record - keeping requirements in accordance with any
Agreements drawn up between the agencies and HOME administrative requirements.
Each agency will be required to prepare loan portfolio servicing on a monthly
HOME deferred and amortized loans. The files will provide complete collection
information and primary information regarding HOME funds. A loan servicing
system will include late payment notices sent out at certain intervals.
Appropriate tax reporting on interest paid by the borrower will be forwarded to
the IRS on form 1098 for each borrower. In addition, each agency will provide
loan payoff quotations, amortization schedules and recertifications of income
eligibility for any loans by HOME borrowers.
-7-
Appendix
ATTACHMENT C
CERTIFICATIONS
HOME PROGRAM DESCRIPTION
In accordance with the Home Investment Partnerships Act and
with 24 CFR 92.150 of the Home Investment Partnership Program
Rule, the participating jurisdiction certifies that:
(a) Before committing any funds to a project, it will evaluate
the project in accordance with the guidelines that it adopts
for this purpose and will not invest any more HOME funds in
combination with other Federal assistance than is necessary
to provide affordable housing;
(b) If the participating jurisdiction is not on the list
published under 24 CFR 92.51 and intends to do new
construction to facilitate a neighborhood revitalization
program;
For each neighborhood revitalization program,
1. Rehabilitation is not the most cost - effective way to
meet the participating jurisdictions need to expand the
supply of affordable housing within the neighborhood and
the participating jurisdictions housing needs, within
the neighborhood, cannot be met through rehabilitation
of the available housing stock; and
2. The program of new construction is needed to facilitate
a neighborhood revitalization program that emphasizes
rehabilitation of substandard housing for rental or
homeownership opportunities by low- income and moderate -
income families in an area designated by the
jurisdiction;
3. The housing is to be located in a low- income
neighborhood;
4. The housing is to be developed, owned, or sponsored by a
community housing development organization or a public
agency; and
5. The number of housing units to be constructed with HOME
funds does not exceed 20 percent of the total number of
housing units in the neighborhood revitalization program
that are assisted with HOME funds; unless
affordability, and availability of decent, safe, sanitary,
and affordable housing.
(e) The submission of the program description is authorized
under State and local law (as applicable), and that it
possesses the legal authority to carry out the Home
Investment Partnerships (HOME) Program, in accordance with
the HOME regulations;
(f) It will comply with the acquisition and relocation
requirements of the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970, as amended,
implementing regulations at 49 CFR part 24 and the
requirements of 24 CFR 92.353;
(g) It and State recipients, if applicable, will use HOME funds
pursuant to its Comprehensive Housing Affordability Strategy
(CHAS) approved by HUD and all requirements of 24 CFR Part
92;
(h) It will or will continue to provide a drug -free workplace
by:
1. Publishing a statement notifying employees that the
unlawful manufacture, distribution, dispensing,
possession, or use of a controlled substance is
prohibited in the grantee's workplace and
specifying the actions that will be taken against
employees for violation of such prohibition;
2. Establishing an ongoing drug -free awareness program
to inform employees about -
(a) The dangers of drug abuse in the workplace;
(b) The participating jurisdiction's policy of
maintaining a drug -free workplace;
(c) Any available drug counseling,
rehabilitation, and employee assistance
programs; and
(d) The penalties that may be imposed upon
employees for drug abuse violations occurring
in the workplace;
3. Making it a requirement that each employee to be
engaged in the performance of the grant be given a
copy of the statement required by paragraph (1);
4. Notifying the employee in the statement required by
paragraph (1) that, as a condition of employment
3
Place of Performance (Street address, city,
county, state, zip code)
City of Pueblo, Department of Housing and Communi Development
#1 City Hall Place
Pueblo CO 81003
(i) To the best of its knowledge and belief:
1. No Federal appropriated funds have been paid or
will be paid, by or on behalf of it, to any person
for influencing or attempting to influence an
officer or employee of any agency, a Member of
Congress in connection with the awarding of any
Federal loan, the entering into of any cooperative
agreement, and the extension, continuation,
renewal, amendment, or modification of any Federal
contract, grant, loan, or cooperative agreement;
2. If any funds other than Federal appropriated funds
have been paid or will be paid to any person for
influencing or attempting to influence and officer
or employee of any agqncy, a Member of Congress, an
officer or employee of Congress, or an employee of
a Member of Congress in connection with this
Federal contract, grant, loan, or cooperative
agreement, it will complete and submit Standard
Form -LLL, "Disclosure Form to Report Lobbying," in
accordance with its instructions; and
3. It will require that the language of paragraph (h)
of this certification be included in the award
documents for all subawards at all tiers (including
subcontracts, subgrants, and contracts under
grants, loans, and cooperative agreements) and that
all subrecipients shall certify and disclose
accordingly.
March 24, 1992
SIGNATURE Lewis A. Q ig y DATE
City Manager
TITLE
5
ATTACHMENT 1.
HOME PROGRAM DESCRIPTION
Neighborhood Housing Services of Pueblo, Inc.
825 N. Greenwood Avenue
Pueblo, CO. 81003
(719) 544 -8078
CONTACT PERSON: Lionel A. Trujillo, Executive Director
AMOUNT REQUESTED: $125,000
Purpose: ($75,000) Provide purchase and rehabilitation funds for
10 home buyers in the Northside /Downtown neighborhood.
Purpose: ($50,000) Provide down payment assistance toward the purchase
and rehabilitation of eight rental units to be used to house low to
moderate income clients.
Neighborhood Housing Services of Pueblo, Inc., a private, non - profit
self -help neighborhood improvement partnership of residents, businesses,
and local government working to revitalize the Northside /Downtown
neighborhood. Incorporated in 1978 NHS has worked in three of Pueblo's
older neighborhoods. Its mission is to help rebuild deteriorating
neighborhoods through the stimulation of reinvestment activity and
community involvement by making low interest housing acquisition &
rehabilitation loans offering housing technical assistance and providing
grassroots organizing skills.
NHS has completed over 275 projects including but not limited to new
construction, rehabilitation, multi - family housing development and
commercial revitalization. NHS has made more than $1,029,647 in low
interest loans and documented over $5,071,135 in private reinvestment.
We are proposing to use $75,000 in HOME funds to facilitate the purchase
and rehabilitation of 10 vacant single family homes in the neighborhood.
We are also proposing to use $50,000 in HOME funds to leverage over
$220,000 in additional financing for the purchase and rehabilitation of
a vacant and deteriorating multi - family unit located @ 426 W. 9th
Street. We are exploring a strategy whereby NHS would be the
owner /developer and the Pueblo Housing Authority would be the manager
and provide project based certificates to the units.
With a full -time four - person staff and the NHS Revolving Loan Fund
Committee, NHS has the technical expertise to accomplish this goal.
Three members of the committee are representatives of local lending
institutions. The committee is responsible for reviewing all loans and
tracking projects.
The RLF committee reports to the NHS Board of Directors on a monthly
basis.
Uses of HOME funds and other resources is proposed as follows:
SOURCE TYPE AMOUNT TERM STATUS
Neighborhood Grant $10,000 n/a Committed
Reinvestment Corp. Dwn. Pmt.
2
Closing
costs
C.D.B.G.
1st, 2nd, $55,000
Flex rate
In process
3rd, rehab
& term
purchase
CHFA
1st, 2nd, $30,000
15 years
Committed
3rd rehab
6% to 8%
purchase
HOME
1st, 2nd $75,000
Flex rate
Submitted
3rd rehab
& term
purchase
NHS RLF
1st. 2nd $70,000
Flex rate
Committed
3rd rehab
& term
purchase
New Home
Cash down $10,000
n/a
Committed
Owner
payment/
with loan
sweat equity
approval
HOME
Multi -faro $50,000
n/a
Submitted
grant
down payment
OTHER
Interim/ $220,000
8.5%
In Process
Permanent
360 Mos.
Multi - family
2
ATTACHMENT 2.
Revised: March 20, 1992
Pueblo County's Program Description for the Federal HOME Program, commencing with
the Federal fiscal year beginning October 1, 1991.
General Overview
Through the formation of a consortium consisting of the City of Pueblo, Colorado and
Pueblo County, for participation in the Federal HOME Program to undertake housing
assistance activities, Pueblo County has identified as its priority for the first year under the
City /County Five -Year CHAS, housing rehabilitation for homeowners within the rural areas
of Pueblo County.
Pueblo County will receive $162,400 in HOME funds (20% of the Consortium's total
allocation) to execute The Pueblo County Housing Rehabilitation Program. Pueblo
County has allocated $30,000 in general funds to administer the Program and to serve
as a match to the HOME funds, if necessary.
The Board of County Commissioners has appointed its Department of Community
Services as the administering department for the Program.
Role of the Pueblo County Housing Committee
The Pueblo County Housing Committee, which performs various policy making and
supervisory functions for Pueblo County's housing programs, will review and make the
final ruling on all applications for assistance under the Rehab Program.
If an applicant is denied assistance by the Committee, the applicant may request a
hearing before the Committee, for reconsideration. A request for a hearing must be
made within 30 days from the date of denial of the original application by the Housing
Committee. Additional information from the applicant will be required before a request
for hearing is approved.
-1-
4 �
M AR 20 1992
>R
o . e:fkm �1 y ."u� "iL ac . =1ti
Project Description
Pueblo County will serve approximately 12 to 15 low- income homeowners who reside
outside the corporate boundaries of the City of Pueblo, with large home repairs and
essential services to include roofs, plumbing (water and sewer), mechanical systems,
electrical repairs, structural repairs, etc. Major emphasis will be given to housing
problems that affect health and safety. Not all homes can be repaired. If a home has too
many problems, it may not qualify for the Rehab Program.
Rehabilitation funds are in the form of a loan. All loans will require some repayment and
the payment may change based on verification of income during the term of the loan
and /or 1st mortgage payoff, which would decrease a family's total monthly debt ratio,
thereby increasing the payment to Pueblo County.
A rehabilitation loan will be secured by a Deed of Trust recorded against the property.
On a loan with a partial grant, when the home is sold or occupancy changes before the
expiration of the maturity date, the loan must be paid in full before the lien is released by
Pueblo County.
Pueblo County will utilize the HUD Low - Moderate Income Guidelines for very low- income
and low- income families in determining eligibility for the County's Rehab Program. Very
low- income persons may qualify for a partial deferred loan. Loans may be from $2,500
to $17,000 for a maximum term of 15 years, with an interest rate of 0% to 7 %. The
amount of assistance will vary depending on the needs of the home and the family's
financial situation; i.e., family's ability to repay a portion or all of the rehab costs based
on the family's income and current debt ratio.
The property /home being served must be located within the rural areas of Pueblo County,
outside the corporate boundaries of the City of Pueblo. This includes homes located
within the towns of Boone, Colorado City and Rye.
Outreach
The Pueblo County Department of Community Services will be responsible for conducting
outreach activities, processing applications, and initially verifying eligibility. A public notice
will be placed in the local Pueblo Chieftain for Program availability and to solicit potential
-2-
An applicant receiving assistance must own and occupy their home as their sole
residence. The property being assisted must be free of all judgments and liens except
for a first mortgage.
applicants for the Rehab Program. Also, referrals from the Department's Weatherization
Program will be accepted by the Rehab Program for review.
Provision of Direct Services
The Department of Community Services will be responsible for evaluating all projects for
assistance. To determine eligibility, the Department will require verification of income to
figure total monthly debt ratio, loan amount, and monthly payback amount. The
Department will also be responsible for ordering required title work. All applications for
assistance must then be reviewed by the Pueblo County Housing Committee for
approval /denial.
The Department will also conduct work write -ups, cost estimates of work to be
completed, and will solicit bids through Pueblo County's formal competitive bidding
procedure from all general contractors. Rehab work will be supervised by a licensed
General Contractor who will be awarded the project as low /best bidder.
Pueblo County's Department of Community Services will oversee all construction work
and will conduct all interim and final inspections in conjunction with the Pueblo Regional
Building Authority. After rehabilitation, the property shall meet all applicable local building
codes, HUD rehabilitation standards, ordinances and zoning ordinances.
Contractual Procedures
The Department will work closely with the Pueblo County Attorney's Office on all
contractual procedures and legal matters pertaining to the Rehab Program.
Once an applicant is approved for services, the Department of Community Services
will initiate all loan documents, construction contract, and obtain all bonding and other
insurances as required per job. The County Attorney's Office will review all loan
documents and construction contract documents prior to Loan Closing, and will forward
all contracts to the Board of County Commissioners for ratification by resolution.
The County Attorney's Office will also be responsible for filing required Deed of Trust with
the County Clerk and Recorder.
Financial Management
Pueblo County will work closely with the City of Pueblo, designated by HUD as the lead
agency in the Consortium, to comply with the statutory requirements for disbursement
of the HOME Funds.
Pueblo County will pay all costs associated with a Rehabilitation project from its Housing
Fund and will seek payment from the City's HOME Investment Trust Fund account.
-3-
Pueblo County will request a drawdown from the City of Pueblo upon 50% completion
of a project and at final completion, after final advertising, for the balance. The
Department of Community Services will prepare all drawdown requests, for approval by
the Pueblo county Finance Director, prior to submittal to the City of Pueblo.
Pueblo County will ensure that all funds drawn from the HOME Investment Trust Fund
account on behalf of Pueblo County, will be expended within the required 15 days by
HUD.
Recordkegping
The Pueblo County Department of Finance will maintain all financial and related records
as required for expenditure of funds. The Finance Department will also maintain all
original contract and loan documents as required by the Program.
The Department of Community Services will maintain all client files and other records as
required in the regulations under 92.508 Recordkeeping, of the HOME Program.
Loan Repayments
The Pueblo County Finance Department will be responsible for maintaining all loan
repayment schedules and monitoring loan paybacks, and will maintain financial records
pertaining to same.
-4-