HomeMy WebLinkAbout7099RESOLUTION NO. 7099
A RESOLUTION APPROVING A GRANT FOR $534,000 TO THE
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
(HUD) FOR HOME INVESTMENT PARTNERSHIPS ACT (HOME)
FUNDING, AUTHORIZING THE CITY MANAGER TO SUBMIT SAME
AND TO ACCEPT FUNDING ON BEHALF OF THE CITY OF
PUEBLO AND PUEBLO COUNTY 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 U.S. 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 all the representations and assurances
contained therein, is approved for submission 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 funds subject to the Consortium
Agreement passed by City Council on September 9, 1991.
INTRODUCED: March 22 , 1993
ATT
JOHN CALIFANO
Council Person
APPROVED:
�J
Press ent of Council
j � ED
Y—�'Y� ED
City of Pueblo
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
March 15, 1993
Mrs. Barbara H. Richards
Office of Regional Community Planning and Development
U.S. Department of Hud
Denver Regional Office, Region VIII
Executive Tower - 1405 Curtis Street
Denver, CO 80202
Dear Ms. Richards:
Enclosed are the Standard Form 424, HOME Program Description and
necessary certifications for the 1993 HOME program
We would like to thank members of your staff for their assistance
this past year and look forward to another HOME program year.
Please call Mr. Tony Berumen at 584 -0830 if there are any
questions.
Sincerely,
C/w ((�
Lew Qu`igl y, City Manager
One City Hall Place P.O. Box 1427 Pueblo, Colorado 81002 -1427 (719) 584 -0830 Fax (719) 580 -0844
t' APPLICATION FOR
FEDER ASSISTANCE
t. TYPE a BUBM1sBIde
MNrunon Pr•appticabon
Construction ❑ ConslrUCtwn
❑ Non-Constructoon ❑ Non-Construcian
11. APPLICANT IIIFOIIMATION
Lapel Nun*.
City,of Pueblo Colorado
Address (pro city. county. stale. and rap code),
#1 City Hall Place
Pueblo, CO 81003
OMO Approval No. 03"-004J
2. DATE SUMMED ADDI Can, 4WWIlw
March 5, 1993
S. DATE RECEIVED BY STATE State Applutren Identifier
N/A
A. DATE UCVV90 IV FEDERAL AOENOV Federal ldrntdirar
t. EMPLOYER IDENTIFICATION NUMBER (EINk
8 1 4 — l v 0 0 1 0 1 6 1 5
L TYPE OF APPLICATIOIt
[; New 0 Continuation ❑ Revision
It Reva+on. enter sopropyq letter(s) in boxies): ❑ ❑
A Increase Award S Decrease Award C Incroass Duration
D Decease Duration Omer (specify).-
1e. CATALOG P• FEDERAL DOMESTIC
ASIISTANCE NUMBEIk 1 4 • 2 3
TITLE. Title II, Home Investment
Partnership Act (HOME)
12. AREAS AFFECTED BY PROJECT (ubes. COUI1sa. states. ett:.):
Pueblo, Colorado
OrOenixstlonsl Unit:
N*me and tNephone number of tM person to be contacted on matters wwoly"
this application Woe area coda)
Mr. Tony Ber.umen, Director
Department of Housing & Com. Development
(719) 584 -0830
t. TYPE OF APPLICANT: (enter appropnass I~ in bolt)
A. Sup H Independent School Dial.
6 County t.' State Controlled Itshtutlon of Hghv Low"
C. W+nrcow J Pest* Umw sdv
D. Township IC Indian Tribe
E. interstate • L. Individual
F interviuncepol M Profit Orgenuatlon
0 Special District N. Dow lSoscm
f. NAME OF FEDERAL AGENCY:
Department of Housing and Urban
Development HUD
9 11. DESCRIPTIVE TITLE OF APPLICANTS PROJECT:
HOME: Housing Rehabilitation Assistance
for owner- occupied and rental
households. Consortium of the
City of Pueblo and the County of
Pueblo.
13. PROPOSED PR OJECT: la. CONGRESSIONAL DISTRICTS OF:
sun ate Endwq ate a. Applcant : b Protect
6 -1 -93 6 -1 -95 3rd Congressional District 3rd Congressional District
IS. ESTIMATED FUNDING: if. IS APPLICATION SUBJECT TO REVIEW BY STATE EXECUTIVE ORDER 12712 PROCESS?
a Federal E 534,000-00 1I YES 710S PREAMICATTOhLAPPLICATION WAS MADE AVALABt.E TO THE
STATE EXECUTIVE ORDER 12772 PROCESS FOR REVIEW ON
b Av~t
E •00
DATE
b No ® PROGRAM 1S NOT COVERED BY E 0 12372
❑ OR PROGRAM HAS NOT BEEN SELECTED BY STATE FOR REVIEW
c State
= .f)G
d Local
E .00
0 Other
: .00
I ProOrarn Inane
S .00
17. ell THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT?
❑ Yes M 'Yes.' attach on explanation ® No
p TOTAL
S 534,000 .DO
1e, 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 Tvped Name of Authorized Representative b Tatty c T*1BOhOM number
Lewis A. Quigley City Manager (719)584 -0830
d Signs ure of Authorized Rspr*sentatrve • Dale Sgned
3/5/93 - - -
r , 7
ATTACHMENT C
CERTIFICATIONS
HONE 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
411 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.
SIGNATURE
City Manager
TITLE
March 15, 1993
DATE
5
HOME PROGRAM DESCRIPTION
Consortium of City of Pueblo and Pueblo County
_ ........... .. .a,
... n n . .
Prepared by:
City of Pueblo, Department of Housing
Submitted to HUD March 15, 1993
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 $534,000. Under a formal
Consortium Agreement between the two participating governments the City of Pueblo
will receive $347,100 and Pueblo County $106,800 to establish an owner occupied
rehabilitation program in areas outside the Pueblo city limits. Non - profit
participation in the amount of $80,100 will allow Neighborhood Housing Services
NHS), to continue acting as the local Community Housing Development Organization
(CHDO).
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 or HUD. Each jurisdiction's proposed use of HOME funds will
be define d separately under Section I of this program description. Housing
delivery services will be within each jurisdictions geographic boundary. The
Pueblo County local government and Neighborhood Housing Services HOME program for
1993 will in many ways continue with the housing programs defined in the 1992
HOME program description.
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 p trategy
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.
4. To increase housing for pepple with special needs.
-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 Reduced Loans
2. Deferred and low- interest loans
3. Non - interest Bearing and Interest Bearing Loans
4. Principal Reduction
5. Grants
III. HOME MATCHING REQUIREMENTS BY CONSORTIUM
For the Consortium there will be no matching requirement under the 1993 HOME
formula allocation. The Consortium meets the two statutory distress criteria as
a "severe fiscal distress" participating jurisdiction allowing a 100 percent
match waiver for the Consortium.
IV. PROPOSED USE OF HOME FUNDS BY CONSORTIUM PARTICIPANT
The following proposed uses of HOME funds are essential to the implementation of
the Consortiums 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 tenant assistance with HOME funds; but, the Consortium
would like to reserve the right to request such assistance later deemed
necessary.
City of Pueblo Interest Reduced Loans
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.
-2-
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. 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 safe .
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: New Construction
owned units
Estimated Number of Units: City of Pueblo
for non - profits and Rehab of investor
109
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.
3.
New construction will take place on units deemed infeasible to rehabilitate and
meet neighborhood target criteria in regards to number of abandoned homes,
blight, and lack of private investment in the area. 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. New Construction and single residential homes acquisition and
rehabilitation for lower income families
Citv of Pueblo HOME First Time Homeownership Assistance Loans
Method of Assistance: Acquisition and Rehabilitation of single residential units
for first -time honeymooners.
Estimated Number of Units: City of Pueblo 6 - 10
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, and closing cost assistance. Loans will be secured by
promissory notes and second and third mortgage. These will be 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 that allow a person to
acquire and /or rehabilitate a property that will be leased to a potential
homebuyer. First mortgage financing for the Homeownership program will come from
the Colorado Housing Finance Authority (CHFA) utilizing FHA mortgage insurance.
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 temporarily deferred low- interest loan behind the
Lenders loan for the remainder of the rehabilitation cost. This program allows
the borrower to purchase an older Pueblo home in addition to having funds to
rehabilitation the property at an affordable monthly mortgage payment. All homes
after rehab must meet the City of Pueblo Housing code. The lease /purchase
arrangement will allow homebuyers to defer monthly payments on second and third
gap financing loans for a two -year period before the option to purchase the home
is exercised. In addition , under the lease option system , homeownership
counseling will be given the family during the two year period.
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.
4.
Section 203 (K) Acquisition /Rehabilitation Loans and C
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
Projects assisted under the Homeownership program will be required to adhere to
the resale guidelines specified by 24 CFR 92.254. To allow the resale of
properties and a fair return to the initial owner the City of Pueblo will adopt
the following provisions:
1. The housing must remain affordable to low income homebuyers for a eriod of
15 years from the date of initial purchase. If a subsequent buyer of a First time
homebuyer unit is assisted with HOME funds in order to make the unit affordable
in accordance with the resale restrictions, the period of affordability will
begin anew.
2. Since new construction is at this time anticipated with the use of HOME funds
the City of Pueblo will assure affordability with a 15 year period. If the house
is sold prior to the end of the 15 year compliance period, the housing must be
offered to a low income family (80 % of median income) that will use the property
as its principal residence; and it must be offered at a price that provides the
initial owner with a fair return on investment, including any improvements, but
also remains within a price range which is affordable to a subsequent low income
purchaser whose monthly payments of principal, interest, taxes, and insurance do
not exceed 30 percent of the gross income of a family with an income that is
equal to 75 percent of median income for the Pueblo area, as determined by HUD
with adjustments for smaller and larger families.
3. To eliminate future uncertainty for the first time homebuyer as much as
possible the City of Pueblo will clarify up -front what equity the owner can
recapture if a sale occurs within the resale restriction period. The city will
use a shared appreciation resale provision whereby the owner's fair return will
be based on the following formula:
Downpayment plus monthly payments applied toward principal and cost
of major improvements which increased the value of the property. This
amount when added to the homeowners investment represents his share of
the appreciation of the value of the property. The City of Pueblo's
subsidy and any appreciation will be reduced if necessary to be
affordable for the subsequent buyer.
5.
If the seller is unable to adhere to the above, the entire amount of subsidy
attributable to the site in question is repayable upon sale. Enforcement
provisions for principal residence and HOME resale restrictions for subsequent
low income buyers will be enforced through deed restrictions. Legal documents
will require the homebuyer to retain the purchased home as their principal
residence and convey the property to low income subsequent purchasers with
affordable payments. The HOME subsidy for the initial purchaser will become due
on sale with the full or partial repayment subject to assurance that these resale
provisions are met.
V. HOME ALLOCATION OF MONIES
Table A below summarizes the proposed use of HOME funds by the Consortium:
VI. 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 $80,100 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 $40,100 HOME funds, the
purchase and rehabilitation of 5 vacant single family homes in the
Northside/Downtown neighborhood of Pueblo. Approadmately $40,000 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
New Construction
Substantial Rehabilitation
Other Rehab
Acquisition
Tenant Assistance
$ Rental $ Owner $
$ 0 $ 0
$40,000 $40,000
$40,100 $40,100
$ 0 $ 0
,:.1
Total Home $ Rental $ Owner $
New Construction
$100,000
$
100,000
$ 0
Substantial Rehabilitation
$193,500
$
60,000
$133,500
Other Rehab
$186,500
$
80,100
$106,400
Program Administration
$ 54,000
$
40,000
$ 14,000
VI. 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 $80,100 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 $40,100 HOME funds, the
purchase and rehabilitation of 5 vacant single family homes in the
Northside/Downtown neighborhood of Pueblo. Approadmately $40,000 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
New Construction
Substantial Rehabilitation
Other Rehab
Acquisition
Tenant Assistance
$ Rental $ Owner $
$ 0 $ 0
$40,000 $40,000
$40,100 $40,100
$ 0 $ 0
,:.1
VII. 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 Ne s . 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
Affirmative Marketing Procedures
The Consortium will take the following actions to provide information and
otherwise attract eligible persons from all racial, ethnic, and gender groups in
the housing market area to the housing which is assisted by the HOME Program
funding:
All correspondence, notices, and advertisements related to the HOME funds will
contain either the Equal Housing Opportunity logotype or slogan.
7.
Participants in the HOME Program will be required to use affirmative fair housing
marketing practices in soliciting renters or buyers, determining their
eligibility, and concluding all transactions. Any HOME assisted housing must
comply with the following procedures for the required compliance period depending
on which program is utilized.
1. Owner's advertising of vacant units must include the equal housing
opportunity logo or statement. Advertising media may include newspapers, radio,
television, brochures, leaflets, or may involve simply a sign in a window.
2. The owner will be required to solicit applications for vacant units from
persons in the housing market who are least likely to apply for the HOME assisted
housing without benefit of special outreach efforts. in general, persons who are
not of the race /ethnicity of the residents of the neighborhood in which the
rehabilitated building is located shall be considered those least likely to
apply.
The owner may wish to use community organizations, places of worship,
employment centers, fair housing groups, housing counseling agencies, social
service centers, or medical service centers as resources for this outreach.
3. The owner must maintain a file containing all marketing efforts (i.e. copies
of newspaper ads, memos of phone calls, copies of letters, etc.) and the records
to assess the results of these efforts are to be available for inspection by the
City of Pueblo.
4. The owner shall maintain a listing of all tenants residing in each unit at
the time of application submittal through the end of the compliance period.
The City of Pueblo will assess the affirmative marketing efforts of the owner by
comparing predetermined occupancy goals to actual occupancy data that the owner
is required to maintain. Outreach efforts on the part of the owner will also be
evaluated by reviewing marketing efforts.
The city of Pueblo will assess the efforts of the owners receiving HOME funds
during the rent -up and marketing of the units by use of a compliance
certification or personal monitoring visit to the project at least annually.
Corrective actions shall include extensive outreach efforts to appropriate
contacts to achieve the occupancy goals or other sanctions the City of Pueblo may
deem necessary.
Each unit of general local government that subgrants the administration of this
program must adopt affirmative marketing procedures and requirements that meet
the requirement in paragraphs (a) and (b) of 24 CFR 92.351.
VIII. 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
borrower has a first or second mortgages lien that carries an exorbitant interest
rate.
The City will analyze such bad loans and using its own funds refinance such high
interest rate mortgages. The borrower greatly benefits from reduced payments on
the refinanced mortgage, the elimination of an high interest rates from their
property and the consolidation of mortgage debt obligations.
IX. CONSORTIUM - RECORD KEEPING
HOME project set -up procedures will be administered by the City of Pueblo for
entering Ito 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/MI 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 proect. 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.
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