HomeMy WebLinkAbout7256RESOLUTION NO. 7256
A RESOLUTION TO APPROVE AN APPLICATION FOR
$131,000 TO THE STATE OF COLORADO DIVISION OF
HOUSING FOR HOME INVESTMENT PARTNERSHIPS ACT
(HOME) FUNDING, AUTHORIZING THE PRESIDENT OF
THE CITY COUNCIL TO SUBMIT SAME AND TO ACCEPT
FUNDING ON BEHALF OF THE CITY OF PUEBLO IF
APPROVED AND DESIGNATING THE CITY MANAGER AS
THE CITY'S REPRESENTATIVE TO ACT IN CONNECTION
WITH THE APPLICATION
SECTION 1.
The Application to the State of Colorado Division of Housing
(SDOH) 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 understandings and assurances
contained herein, was submitted to SDOH as required and the
President of the City Council is hereby authorized to execute and
submit said Application on behalf of the City of Pueblo. 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 SDOH and if the
Application is approved, to accept on behalf of the City of
Pueblo and said HOME Investment Partnership Act funding.
INTRODUCED: November 8 , 1993
BY SAMUEL CORSENTINO
Councilperson
APPROVED:
Pre dent of the City Council
APPLICATION FOR
Date Received
COLORADO DIVISION OF HOUSING
LOAN /GRANT ASSISTANCE 1993
Project I
AMOUNT OF FINANCING REQUESTED
s131,000
APPLICATION INFORMATION
Applicant (Name and Address)
City of Pueblo
Department of Housing & Community Development
#1 City Hall P1.
Pueblo, CO 81003
Chief Elected Official of
Phone No. 719 - 584 -0800
Federal ID No.
Executive Director
Fax No. 719 - 584 -0844
Lew Quigley
Title
Address
City Manager
#1 City Hall Pl.
Designated Contact Person for
Title
Phone No. 719 -584 -0830
Application
Tony Berumen
Director of Housing
Fax No. 719- 584 -0844
Address Third Floor of City Hall, #1 City Hall Place, Pueblo, CO 81003
TYPE OF ORGANIZATION
TYPE OF PROJECT
X
Municipality /County /Consortia
Rental /Group Home
Nonprofit (501(c))
Homeownership
CHDO (Community Housing Development
Rental Assistance (Attach Proforma)
Organization)
Public Housing Authority
Other (Specify)
Private Owner /Investor
APPLICANT EXPERIENCE /MANAGEMENT CAPACITY
I. The City of Pueblo's Department of Housing & Community
Development has administered the following rehabilitation
programs since 1976:
1. CDBG Housing Rehab Owner and Rental Properties
2. HUD 312 Owner Occupied
3. HUD Rental Rehab Program
4. HOME Program
II. Eight staff members have both financial and technical expertise
in the following areas:
COLO Division of Housing Application -1
APPLICANT EXPERIENCE /MANAGEMENT CAPACITY
1. Financial Standards of both HUD, OMB, CDBG
2. Two Rehab Specialists with combined experience in housing rehab
of 20 years
3. Loan Processing Coordinator with over 20 years experience in
loan processing.
III. Other Municipal Departments expertise available including staff
support for:
1. Procurement processing
2. Engineering
3. Housing Code corrections
FINANCIAL INFORMATION:
ENTITY NAME:
City Of
Pueblo
Addressed Valuation (Year_ _)
Mill Levy
Overlapping Mill Levy*
Sales Tax Rate ( %) Annual Revenue
Long -Term Debt, by Type /Amount
Annual Budget ** ( Fund)
Total (Year )
Carry Forward (as of 1 /l /_)
WATER:
Tap Fee
Average Monthly User Charges
Number of Taps Served by Applicant
Fund Carry Forward (as of 1 /1 /_)
SEWER:
Tap Fee
Average Monthly User Charge
Number of Taps Served by Applicant
Fund Carry Forward (as of 1 /1 /_)
COLO Division of Housing Application -2
PROJECT DESCRIPTION
TYPE OF PROJECT ACTIVITIES (Check all the activities involved in your project)
New Construction
X
Rehabilitation
Tenant Based Rental Assistance
Infrastructure Improvements
Program Administration
X
Acquisition
First Time Home Buyer Program
I
Other (Specify)
DESCRIPTION OF PROJECT
This application for the City of Pueblo Substantial Rehab
Program (PSRP) is submitted by the City of Pueblo through its
Department of Housing and Community Development (DHCD). The
Department currently has 64 household owners on a waiting list
and 10 on a homebuyer program. These are low income families
waiting for the possible rehab of their homes.
This request for funding will help establish a revolving loan
fund to help process second mortgage rehab loans at rates of 3%
for 15 -20 years. Eligible families gross income must meet HUD
Section 8 Income Guidelines based on family size and be credit
worthy. Housing debt ration of 30% and total debt ratios of
45% will allow for an affordable monthly payment of PITI.
Additional financial assistance will be leveraged by
participation of private lenders under an agreement with the
City of Pueblo for Homeownership through the Pueblo Urban
Homestead Program. This program allows for the acquisition and
rehab of older Pueblo homes by low income households.
The project is designed to assist eight (8) owner - occupied
housing units both existing and new homeowners.
COLO Division of Housing Application -3
(PROJECT MARKET INFORMATION I
Describe project need:
At present the Department of Housing has 64 persons on the
owner occupied rehabilitation list. At an average rehab cost
of $13,000 the total rehab funds needed would be $832,000. At
present the city has available only CDBG funds to rehab
approximately 23 homes leaving 43 on the list without any funds
available. In addition, some of these homes need substantial
rehab greater than $25,000 because of the age of the housing
stock. The City of Pueblo intends to establish a revolving loan
fund using the DOH funds as 3% second mortgage loans similar to
the now defunct HUD 312 Loan program.
How was need determined?
Funding for the City of Pueblo Substantial rehab program was
intended to come from 1993 HOME rehab funds as defined in the
HOME Program Description, however the HOME substantial rehab
program funds of $133,500 were transferred to help fund'a new
45 unit senior apartment building located in downtown Pueblo.
All this resulted in the City of Pueblo, Pueblo Housing
Authority, and the Senior Resource Development Agency, agencies
involved in the funding of the senior apartment building, to
request funding assistance from the Division of Housing for
$131,000 of state funds to help with the Joseph Edwards Senior
Apartment building. With the state contributing $131,000 to
the senior apartment building the City of Pueblo use of HOME
funds could be decrease $131,000 and allow the rehab of the 8 -
10 units for substantial rehab.
Because of the DOH not being able to participate with funding
for the senior apartment building the City of Pueblo is now
requesting the DOH for a rehab grant of $131,000 to carry -out
the Pueblo Substantial Rehab Program for owner occupied
households.
Describe how project /program will be marketed to the identified beneficiaries.
Priority for eligible families will be by reviewing the
existing 64 applicants on the DHCD's waiting list and working
with referrals from private lenders. Eligible families will be
contacted by the DHCD and notified of eligibility requirements
that include financial capacity, credit worthiness and income
guidelines. Family's gross income must not exceed 80% of the
median income of Pueblo. Families must own their own home or
plan to acquire a new home and intend to rehab to bring the
home to compliance with the City of Pueblo Housing Code
Standards.
COLO Division of Housing Application -4
PROJECT BUDGET & FUNDING SOURCES
PROJECT FUNDING
TOTAL
REQUESTED
PROJECT
STATE
OTHER FUNDS REQUESTED
COSTS
ASSISTANCE
OR COMMITTED
ADMINISTRATION:
AMOUNT
SOURCE
STATUS
Personnel: (List)
No funds are being
requested for
administrative costs
NONE
Contacted Services: (List)
Audit:
Operations: (List)
Other: (Specify)
TOTALS
PROJECT ACTIVITIES: (List)
Construction Costs for
200,000
131,000
34,500
Columbia
Committed
approximately 5- 8 homes
Savings
34,500
Bank One
Committed
TOTALS
200,000
131,000
69,000
COLO Division of Housing Application -5
CONSTRUCTION COST ESTIMATE WORKSHEET
(Required for projects involving structures and facilities other than single- family housing units)
SOURCE OF ESTIMATE: Department experience
DATE OF ESTIMATE:
Description
No. of Units or Size
Unit Price
Total Cost
Rehab 8 older homes
8
25,000
200,000
COLO Division of Housing Application -6
FORECASTED PROJECT CASH FLOW N/A FOR THE PERIOD FROM
TO
Potential Gross Income
$ AMOUNT
$ PER UNIT
TOTALS
Rents
UNITS
OBRM
1 BRM
2BRM
3BRM
4BRM
*_Units
RENTS
Parking
Laundry
Other
Vacancy Rate
% Factor
Effective Gross Income
Management & Administration
Management Fee
Site Manager Salary
Legal & Audit
Total Management & Administrative
Operating Expense
Utilities
Security
Trash
Supplies
Total Operating Expense
Repair & Maintenance
Repairs
Maintenance
Furnishings
Grounds
Total Repair & Maintenance
Fire & Liability Insurance
Real Estate Taxes
Total Insurance and Taxes
Net Income from Operations
First Mortgage
Second Mortgage
Other Debt Service (Specify)
Total Debt Service
Reserves
Replacement Reserves
Operating Reserves
Total Reserves
Net Projected Cash Flow
COLO Division of Housing Application -7
PROJECT INFORMATION
How were cost estimates determined?
Review of past experience with owner - occupied
rehabilitated
units by Department of Housing and Community
Development and
work repair estimate.
Have preliminary architectural /engineering studies been
YES
NO
g
completed? Only if required by staff
What additional design work must still be completed?
N/A
Have you included ADA /Section 504 /state access requirements
in
YES
x
NO
your cost estimates?
If no, why not?
All homes owned by owner- occupied handicapped
families will be
accessible after rehab.
Have you included David -Bacon wage rates in the preparation
of
YES
NO
g
your cost estimates?
If no, why not?
N /A. Single Occupied Dwellings.
Have any of the units received Rental Rehabilitation Program I YES I I NO IX
Funds?
If yes, how many units. (HOME Funds cannot be used in units having received
rental rehabilitation program funds.)
COLO Division of Housing Application -9
Describe any in -kind contributions by type and value in support of this project.
Department will contribute rehab staff to administer and
provide construction management to complete rehab of the PSRP
homes.
I Was the cash value of the in -kind contributions calculated into IYES I INO I $
the Project Budget?
What other funding alternatives have been explored?
This project was intended to be financed with City of Pueblo
HOME Funds. However, the $131,000 is now committed to the
construction of a senior apartment complex that will house 45
senior citizens. Because of construction commitments by the
City of Pueblo, the $131,000 is being requested from DOH will
replace the HOME funds.
Describe local commitment to the project.
In addition to the support of the City of Pueblo's Department
of Housing and Community Development, the Regional Building
Department (local housing code enforcement agency) has staff
members to inspect the homes. Private lenders have entered
into an agreement for participation in the rehab and
acquisition /rehab of eligible units.
All administrative costs will be funded by the City of Pueblo.
The $131,000 application will only be used for construction
costs.
COLO Division of Housing Application -10
PROJECT PERSONNEL
Project Manager
Tony Berumen, Director of Housing and
(Overall Project
Community Development, 12 years financial
Administration)
management for the City of Pueblo supervised
numerous HUD funded single and multi - family
housing projects during six years as director
of department.
Project Coordinator
Bev Rachel, Senior Rehab Specialist, Jose
(Day to day Operations)
Sanchez, Rehab Specialist, both
successfully involved in numerous HUD
housing programs. For example, CDBG,
HOME, Rental Rehab Program, HUD 312 Rehab
Program
Fiscal Manager
Tony Berumen, Director of Housing and
Community Development. Twelve years
Chief Accountant, City of Pueblo, six
years, Department of Housing
Project Engineer
Upon request for feasibility of rehab
dwelling structure, Public Works
Department of the City of Pueblo will
provide any engineer studies.
Project Architect
Rehab Specialist will develop floor plans
and drawings and construction documents
General Contractor
To be put out to public bid through the
City of Pueblos Purchasing Department
Consultant
N/A
PROGRAM INCOME
Will any program income be realized? (Program income means amounts generated from
YES
$
NO
the use of CDBG or HOME funds, including both previously received CDBG /HOME funds and
program income.)
If yes, who will retain the program income?
Local
I X
I Subrecipient
Government
If yes, how will the retained program income be used?
Revolving Loan Fund to rehab similar projects for owner -
occupied rehab and acquisition and rehab for Homeownership.
If no, the Program Income will be paid to the State.
COLO Division of Housing Application -11
ENVIRONMENTAL ISSUES
Indicate below whether any of the proposed project activities:
YES
NO
Will be undertaken in flood hazard areas. (Attach floodplain
X
maps /studies reviewed in reaching this conclusion).
Will be undertaken in geological hazard areas or affect historical,
X
archeological or cultural resources.
Will be located within 1,000 feet of a major highway, 3,000 feet of
X
a railroad, 15 miles of a commercial airport or near some other
major noise source.
Will be located within one -mile of above - ground storage tanks,
X
transmission pipelines or loading facilities for explosive or fire -
prone substances.
will be undertaken near commercial airports or military airfields.
X
If you answered yes to any of the above, what alternatives have been considered? How do
you plan to mitigate the adverse effects?
PROJECT LOCATION:
Target areas 1st option
Bessemer Neighborhood, Census Tract >51% L/M
Bradford Neighborhood, Census Tract >51% L/M
.Hyde Park Neighborhood, Census Tract >51% L/M
City -Wide second option
SITE CONTROL STATUS
OWNED
OPTIONED
LEASED
OTHER (Explain)
All Homes will be owner - occupied by borrowers.
ZONING STATUS
All homes in residential areas
ACQUISITION, RELOCATION AND REPLACEMENT ISSUES
Will the proposed project involve the acquisition of any land
YES
X
NO
or buildings?
Has the Fair Market Value of the property been established?
YES
X
NO
If yes, how?
By county assessor's office for property tax determination and
FHA or private appraisers
If by appraisal, date of appraisal:
If yes, has seller /owner been notified of the Fair
YES
I X
I NO
Market Value?
Date of Notification: Upon Closing
COLO Division of Housing Application -12
Will the proposed project activity directly result in
permanent, involuntary displacement?
YES
NO
$
If yes, are the displacees considered low income
families or individuals?
YES
No
g
If yes, what steps have been taken to minimize displacement?
If yes, what assistance /benefits will be provided to displacees?
Will the proposed project result in the demolition or change
in the use of any existing low income housing units?
YES
I NO
I g
If yes, what plans have been developed to replace the units and ensure that they stay at
or below "Fair Market Rent" for 10 years?
PROJECT BENEFICIARIES
Descriptive Title of Proposed
Project Activity
Number of Persons That Activity Will Serve Directly by
Percentage of Median Income
Total
110 % -81%
80 % -61%
60%-51%
50% or less
Owner Occupied Rehab
8
8
COLO Division of Housing Application -13
Describe method(s) by which the estimates of low and moderate income persons were
determined? Attach supporting documentation if necessary.
Current HUD Section 8 Income Guidelines
Description of local selection process for beneficiaries
Priority will be given to families now on Department waiting
list.
SPECIFIC ACTIVITIES requiring determinations which must cite the reasons why the
activity is "NECESSARY" and /or "APPROPRIATE ". (Attach the required determinations to
your application.)
Activities carried out by subrecipients when such activities are not otherwise listed as
eligible activities and are not described as ineligible activities. Such activities are
eligible when the grantee "determines that such activities are necessary or appropriate
to achieve its community development objectives."
Specific Activity: N/A
YES
I
TNO
Relocation payments and assistance not required by or above those required by the
Uniform Act (Unless such payments or assistance are made pursuant to State or local
law). Such activities are eligible "only upon the basis of a written determination that
such payments are appropriate."
Specific Activity N/A
T
I
NO
Preparation of applications for other federal programs. This activity if the
applicant /grantee "determines that such activities are necessary or appropriate to
achieve its community development objectives."
Specific Activity N/A
YES
NO
Loans for refinancing existing indebtedness secured by a property rehabilitated with
CDBG funds. Such loans are eligible "if such financing is necessary or appropriate to
achieve the (applicant /grantee's) community development objectives."
Specific Activity N/A
YES
NO
COLO Division of Housing Application -14
To the best of my knowledge and belief, statements and data in this application,
including the required Application Statement of Assurances and Certifications, the
attached tables and other documentation, are true and correct. The submission of this
application has been duly authorized by the governing body of the applicant /lead
jurisdiction and other participating jurisdictions.
Signatur Chief Elected fficiat/Officer Signature, Chief Elected Official /Officer
Fa Kastelic
ame ('Iyped or nn Name (Typed or Printed)
President, City Council
title Title
November 8, 1993
ae Vate
Signature, Chief Elected Official /Officer Sipatum, cwef Eleacd Official /Officer
Name or n ted) _7Ta_m_eTfYPM or nn
le Title
ae Vate
Signature, Chief Elected Official /Officer
Name (Typed or Printed)
Title
ae
Sii;Wum, Chief Elected Official /Officer
_ or nn
fe
! a
Additional signatures are required only in the case of "multi- jurisdictional"
applicants. If this is a multi - jurisdictional application, the Chief Elected Official
of each municipality and county participating in the application must sign.
COLO Division of Housing Application -15
Colorado Division of Housing Loan /Giant Programs
APPLICANT STATEMENT OF ASSURANCES AND CERTIF ICAT IONS
The applicant hereby assures and certifies that:
(a) It:
(1) possesses legal authority to apply for the loan /grant and to execute the proposed project, and its
governing body has duly adopted or passed as an official act a resolution, motion or similar action
authorizing the filing of the application, including all understandings and assurances required, and
directing and authorizing the applicant's chief executive officer and /or other designated official
representatives to act in connection with the application and to provide such additional information as
may be required; and
(2) will give the State, the U.S. Department of Housing and Urban Development (HUD), and any state
authorized representatives access to and the rights to examine all records, books, papers or documents
related to the application and grant.
(3) it is following a detailed citizen participation plan which:
(i) provides for and encourages citizen participation with particular emphasis on participation by
persons of low and moderate income who are residents of areas which Community
Development Block Grant (CDBG), Home Investment Partnership (HOME), Housing
Development Grant (HDG) and Revolving Loan Fund (RLF) funds are proposed to be used;
(ii) provides citizens with reasonable and timely access to local meetings, information, and records
relating to its proposed and actual use of CDBG, HOME, HDG and RLF funds;
(iii) provides for technical assistance to groups representative of persons of low and moderate
income that request such assistance in developing proposals with the level and type of
assistance to be determined by the applicant;
(iv) provides for public hearings to obtain citizen views and to respond to proposals and questions
at all stages of the community development program, including at least the development of
needs, the review of proposed activities, and review of program performance, which hearings
shall be held after adequate notice at times and locations convenient to potential or actual
beneficiaries, and with accommodation for the handicapped;
(v) provides for a timely answer to written complaints and grievances, within 15 working days
where practicable; and
(vi) identifies how the needs of non - English speaking residents will be met in the case of public
hearings where a significant number of non - English speaking residents can be reasonably
expected to participate.
(4) has provided for and encouraged citizen participation, with particular emphasis on participation by
persons of low and moderate income who are residents of areas in which CDBG, HOME, HDG and RLF
funds are proposed to be used; by:
(i) furnishing citizens information concerning the amount of funds available for proposed and
housing activities and the range of activities that may be undertaken, including the estimated
amount proposed to be used for activities that will benefit persons of low and moderate
income. Its plans for minimizing displacement of persons as a result of activities assisted with
CDBG, HOME, HDG and RLF funds and its plan for assisting persons actually displaced as a
result of such activities;
COLO Division of Housing Loan /Grant Assurances /Certification -1
(ii) publishing a proposed project plan /application in such a manner to afford citizens an opportunity to
examine its content and to submit comments on the proposed project plan /application and on the
community development performance of the jurisdiction (s);
(iii) holding one or more public hearings, as indicated below, to obtain citizens view and to respond to
proposals and questions related to community development and housing needs, proposed activities and
past CDBG, HOME, HDG, and RLF performances. All hearings were held no sooner than five days after
notice, at times and locations convenient to potential or actual beneficiaries, and with accommodation
for the handicapped and for the needs of non - English speaking residents where a significant number
of such residents could have been reasonably expected to applicant(s);
Applicant /Participant" Date Time Location
City of Pueblo 11/08/93 7:30 P
City Hall, 2nd Floor
. In the case of a "multi - jurisdictional" application, each participating municipality and county must hold at least on public hearing.
Signatur , Chief Elected Official/Officer' Signature, Chief Elected Official /Officer Signature, Chief Elected Official /Officer
Fay � Kastelic
Name (Typed or Printed) Name (Typed or Printed) Name (Typed or Printed)
President, City Council
Title Title Title
Nove 8, 1
Date Date Date
Signature, Chief Elected Official /Officer• Signature, Chief Elected Official /Officer Signature, Chief Elected Official /Officer
Name (Typed or Printed) Name (Typed or Printed) Name (Typed or Printed)
Title Title Title
Date Date Date
Additional signatures are required only in the case of "multi jurisdictional" applicants. If this is a multi jurisdictional
application, the Chief Elected Official of each municipality and county participating in the application must sign.
COLO Division of Housing Loan /Grant Assurances /Certifications -2
DIVISION OF HOUSING DISCLOSURE REPORT
PART 1: APPLICANT /GRANTEE INFORMATION
1. Application /grantee name, address and phone number:
City of Pueblo
#1 City Hall Place
Pueblo, CO 81003
Federal employer identification number:
2. Indicate whether this report is: Initial X
3. Project Assisted/To be Assisted.
a. Fiscal Year: 1993
b. Entitlement Grant(s)
Competitive Grant X
C. Amount requested /received:
d. Program income to be used with (c) above:
e. Total of (c) and (d):
Update
$131,000
PART II: THRESHOLD DETERMINATIONS
1. Is the amount listed at 3(e) above more than $200,000? Yes No X
2. Have you received or applied for other HUD assistance
(through programs listed in Instructions) which, when
added to 3(e) above amounts to more than $200,000? Yes No X
If the answer to either 1 or 2 of this Part is "Yes,"
then you must complete the remainder of this report.
If the answer to both 1 and 2 of this Part is "No,"
then you are only required to sign the following
certification and need not complete the remainder of
this report.
I hereby certify that this information is true.
Z� 4� - Novem 8, 1993
Fay stelic, President
(Chie Elected Official/Title) (Date)
Division of Housing Disolosuro Report -1