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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