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HomeMy WebLinkAbout2008-03-27 Housing PACKET Ashland Housing Commission Regular Meeting Agenda: March 27th, 2008 5:30 Î 7:30 Community Development Building 51 Winburn Way 1. (5:30) Approval of Minutes th February 28, 2008 meeting 2. (5:35) Public Forum items not on the agenda 3. (5:45) Community Development Block Grant Program 2008-2009 Application Review Conference call with Applicant (FHCO) for Q&A @ 6:00 Award Recommendations to Council Discuss unexpended CDBG funds 2008-2009 CDBG Action Plan Public Hearing on Action Plan Development Discuss 2008-2009 CDBG Action Plan Development th Action Plan to be presented to Housing Commission for approval April 24. 4. (6:30) Reports and Updates Subcommittee Reports Liaison reports (no meeting) Council (Hardesty) (5 min) Education Land Use (no meeting) Parks Commission (none) Finance (no meeting) School Board (none) Planning Commission (Ayars/Benjamin) (5 min) Ad-Hoc/Public Meeting Updates Facilities Plan (Voisin/Hardesty) (5 min) Croman Master Plan (5-10 min) 5. (7:00) Tour of Affordable Housing Projects Discuss Destinations, & Date 6. (7:15) Upcoming Events and Meetings Housing Commission Regular Meeting 5:30-7:30 PM; Thursday April 24th, 2008 Community Development Building Other Meetings Quorum Check Î Commissioners not available to attend the subsequent regular meeting should declare their expected absence. 7. (7:30) Adjournment Staff Evaluation DATE: March 27, 2008 TO: Ashland Housing Commission and City Council FROM: Brandon Goldman, Housing Program Specialist RE: Community Development Block Grants (CDBG) 2008 Request for Proposals The City of Ashland received only one proposal requesting $10,000 of $356,522 in Community Development Block Grant (CDBG) funds that are competitively available. This is the second consecutive year in which no affordable housing providers submitted application for the CDBG funds. The available funds comprise a carryover of $192,657 in prior year CDBG funds that were unexpended. The total City of Allocation for the 2008 CDBG program year is $204,831 of which 20% ($40,966) is reserved for administration of the CDBG program. In the 2008 Request for Proposals (RFP) it was noted that 15% (initially estimated at $30,000) of the total 2008 allocation was potentially available to projects that provided direct services to Homeless or Special needs populations. The sole proposal the City received is a request to utilize CDBG funds to provide education, outreach, and enforcement regarding Fair Housing law by the Fair Housing Council of Oregon (FHCO). The City of Ashland Housing Commission is to hold a public hearing and review the grant request on March 27, 2008. The Housing Commission shall make a recommendation on a grant award to the City Council. Subsequently, the City Council will hold a public hearing on April 1st, 2008 to make a final decision on the grant award. StaffÓs recommendations regarding the allocation of the 2008 CDBG funds and prior year carry-over is provided on the final page of this document. Department of Community Development Tel: 541-488-5305 20 E. Main St Fax: 541-552-2059 Ashland, Oregon 97520 TTY: 800-735-2900 www.ashland.or.us 2007 CDBG Proposals- Staff Evaluation Proposals Received One proposal was received and is listed below: Organization Proposed Project CDBG Funds Requested Fair Housing education, Fair Housing Council of $10,000 for public outreach and enforcement Oregon services Funding Requested/Available A total of $356,522 is available to distribute to eligible recipients for projects meeting the CDBG national objectives, and are consistent with the City of Ashland 2005- 2009 Consolidated Plan. The maximum allocation allowable to be used to support public services is limited to 15% of our annual allocation which equals 30,724 for the 2008-2009 program year. The annual 20% allocation to be used for administration is not included in the $356,522 total above. The 2007-2008 Administrative set aside is $42,397, and it is $40,966 for 2008-2009. These funds will be available upon approval of the 2008 Action Plan, and upon completion of any regulatory requirements including but not limited to environmental review clearance. The funds will likely be available on July 1, 2008, or upon final approval of the Federal Budget by the US Congress, which ever is later. Although funding will be available, CDBG funds are only distributed to reimburse expenditures following completion of the projects or at specified intervals through the scope of work. Upon final selection of the award recipients by the Ashland City Council, the City will develop an Action Plan outlining how the CDBG funds will be used by the selected Subrecipient(s). This 2008 Action Plan will go before the Ashland Housing Commission at as public hearing for review and approval to ensure consistency with the awards designated by the City Council. The US Department of Housing and Urban Development (HUD) must review the annual Action Plan submitted by the City to ensure the activities funded are constant with federal requirements, and with the local Consolidated Plan. Department of Community Development Tel: 541-488-5305 20 E. Main St Fax: 541-552-2059 Ashland, Oregon 97520 TTY: 800-735-2900 www.ashland.or.us 2007 CDBG Proposals- Staff Evaluation Assessment Staff has assessed the Fair Housing Council of Oregon proposal to determine whether it meets the Federal CDBG regulations, and if the proposal addresses the priorities within the City of Ashland 2005-2009 Consolidated Plan. Three areas are evaluated for each proposal regarding compliance with federal regulations. First the proposed projects must meet the national objective of the Community Development Block Grant program. Second, all CDBG funded projects must be an "eligible" use under the CDBG federal regulations. Finally, if the proposals meet all federal requirements and are selected for a CDBG award, then many federal regulations must be met throughout the course of the project. For instance, all projects funded, in whole or in part, with CDBG dollars require an environmental review in accordance with the National Environmental Policy Act (NEPA), construction projects must use federal Davis-Bacon wage rates, housing involving structures built prior to 1978 must undergo lead-based paint abatement, and any project involving displacement of residents or businesses as a result of the federal funded project are entitled to assistance under the Uniform Relocation Act, and most importantly the beneficiaries from the application of CDBG funds must qualify as eligible populations under the Federal requirements. Areas of concern are described for each proposal received. The Housing Commission, and City Council, can only award CDBG funds to projects that can meet all federal requirements and meets an objective as outlined in the CityÓs 2005-2009 Consolidated Plan. Should it be determined by the Housing Commission and City Council, that the proposed project does not constitute an efficient or eligible use of CDBG funds, the Council could determine that the City will act directly as the grantee to develop a project that is consistent with CDBG program requirements. This is particularly relevance in this 2008 round of funding in that the City only received one request for $10,000 of the approximately $356,522 available, thus there remains $346,522 left un-requested. In recent years the City has aimed to expend accumulated past carryover to avoid a determination of non-compliance with the HUD timeliness standard and had made significant progress in this regard. However, as no award was made in 2007-2008, it is imperative that the City expend a significant portion of our accumulated carryover during this coming program year. Staff believes the City will be classified as ÐuntimelyÑ on July 1, 2008 and will have one year to come into compliance face potential HUD sanctions unless carryover funds are expended prior to that date. Department of Community Development Tel: 541-488-5305 20 E. Main St Fax: 541-552-2059 Ashland, Oregon 97520 TTY: 800-735-2900 www.ashland.or.us 2007 CDBG Proposals- Staff Evaluation PROPOSAL EVALUATION Fair Housing Council of Oregon Proposal Proposal Summary The project proposed by the Fair Housing Council of Oregon (FHCO) is one intended to provide fair housing services to Ashland residents. FHCO intends to provide services to low- and moderate-income tenants, to housing providers, and advocates and service providers in an effort to limit, or eliminate, discrimination in housing. In addition to operating a toll free hotline to receive complaints of housing discrimination, assist individuals in reporting violations, and testing for violations of the Fair Housing Law. As part of the grant award requested FHCO proposes to conduct two general fair housing training sessions. These trainings will provide participants with a greater understanding of their rights and responsibilities under Fair Housing law. Lastly as part of providing services to residents of Ashland per the terms of a grant award, the FHCO will provide fair housing information to tenants and landlords that call their office. Meeting National Objectives A strong commitment to affirmatively further fair housing is not only one of the a guiding principle for the Department of Housing and Urban Development, it is a requirement for participating in the CDBG program The Fair Housing Act specifies that the Secretary of Housing and Urban Development shall administer programs and activities relating to housing and urban development in a manner that affirmatively furthers the policies outlined in Title VIII of the Civil Rights Act of 1968 (Fair Housing Act). This Act prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents of legal custodians, pregnant women, and people securing custody of children under the age of 18), and handicap (disability). Further in Ashland, and the State of Oregon, housing discrimination based on sexual orientation is also prohibited in furtherance of Fair Housing. The FHCO is considered a Qualified Fair Housing Organization (QFHO) per the definitions presented the HUD Memorandum dated January 11, 2008. This memorandum (attached) directs CDBG entitlement Communities to ensure that recipients of CDBG funds for Fair Housing activities meet the HUD definitions of a fair housing organization The FHCO proposal meets the national objective of the Community Development Block Grant program. Department of Community Development Tel: 541-488-5305 20 E. Main St Fax: 541-552-2059 Ashland, Oregon 97520 TTY: 800-735-2900 www.ashland.or.us 2007 CDBG Proposals- Staff Evaluation Defined as an Eligible Use per CDBG federal regulations Use of CDBG funds to support Fair Housing activities is an "eligible" use under the CDBG federal regulations. Specifically as the provision of public services Fair Housing Counseling is an eligible use under CFR 24.570.201(e). Further, provision of Fair Housing Services is listed as an eligible program administration cost under CFR 24.570.206(c). Meeting Local CDBG Consolidated Plan Goals Staff finds that the FHCO proposal is consistent with AshlandÓs local CDBG 2005- 2009 Consolidated Plan: Goal 9: To affirmatively further fair housing. 9.1 Establish a local means for citizens to get specific information about fair housing, and report fair housing violations. Review current fair housing violation process, improve as needed. (B) 9.2 Develop and provide brochures and advertisements on how to file fair housing complaints (B). 9.3 Continue to support the activities of the Fair Housing Council of Oregon (B). Performance Outcomes and Measures for Fair Housing goals: Improved public access to information about housing discrimination and fair housing rights and responsibilities Number of existing or potential multifamily property owners provided with landlord responsibility materials relating to the Fair Housing Act. Number of educational opportunities provided to the Citizenry including seminars, television broadcasts and informational items within City publications sent as direct mail to all households in Ashland. Number of individuals assisted in reporting fair housing violations. In evaluating the proposal and the Fair Housing goal above the classification of ÐBÑ as a priority next to each of the sub-goals indicates that although the City did not directly anticipate using CDBG funds for such an activity it is an acceptable application (see A, B, C key below). Further, Goal 9.3 explicitly states supporting the activities of FHCO is something the City may support with CDBG funding in affirmatively furthering Fair Housing. A: The City of Ashland plans to use CDBG funds for projects that meet these needs. B: The City of Ashland may use CDBG for projects that meet these needs \[emphasis added\]. C: The City of Ashland does not plan to use CDBG funds for projects meeting these needs but will consider certifications of consistency for other entities which are applying for federal assistance to meet these needs. Additionally such needs may also be addressed by the City through the allocation of Economic Development and or Social Service Grants from the City General Fund. Department of Community Development Tel: 541-488-5305 20 E. Main St Fax: 541-552-2059 Ashland, Oregon 97520 TTY: 800-735-2900 www.ashland.or.us 2007 CDBG Proposals- Staff Evaluation CDBG Project Proposal Rating Criteria The final step in the process of evaluating the proposals typically is for the Housing Commission to apply the following compliance criteria to determine which project(s) best meet the City's spending priorities. However as the City only received one proposal in the 2008 year establishing a rank is irrelevant as no comparison with alternative proposals is possible. However the categories proposed do provide a valuable way for individual Commissioners to gauge the effectiveness of the proposal in meeting City objectives. A. The Project provides benefit to a demographic group that has a need documented in the City of Ashland CDBG Consolidated Plan B. The project assists low and moderate-income households in substantially improving their living conditions. The proposed project must have or be part of a comprehensive approach that takes clients from the beginning to the end of the process that improves their living conditions. ÐSafety netÑ services, or services that meet basic needs shall only be funded if it can be demonstrated that clients receiving those benefits are part of a program that will eventually help them obtain self sufficiency. Exceptions to this requirement are projects targeted at helping people with special needs. C. The project is a proven effective strategy to improve conditions or solve an identified problem. D. If the project is related to affordable housing, the project retains the units as affordable. The longer the period of time the units remain affordable, the higher ranking the project shall be given E. If the project is related to economic development for jobs for low and moderate-income people, at least 51% of the jobs shall be held by low and moderate income people. The longer period of time the jobs are held by low and moderate- income persons, the higher the ranking the project shall be given. The larger percentage of jobs held by low and moderate-income persons the higher the ranking the project shall be given. F. The project maximizes partnerships in the community G. The project has at least 10% of the total project in matching funds. The larger the amount of matching funds the higher the ranking the project shall be given H. The project utilizes already existing resources in effective and innovative ways. The project shall not duplicate service provided by another organization I. The agency submitting the proposal has the capacity to carry out the project J. The budget and time line are well thought out and realistic K. The proposal demonstrates CDBG funds are the most appropriate funding source for the project L. The project is ready for implementation within a year of a CDBG award notification M. The organization proposing the project has the experience and capacity to undertake the proposed activity. Staff Recommendation Staff sees that FHCOÓs proposal is an eligible use of CDBG funds and is consistent with the City of Ashland Strategies as outlined in the 5 year Consolidated Plan for use of CDBG funds. The proposed activity provides vital assistance toward meeting our goal of affirmatively furthering fair housing, and in doing so will assist Ashland residents in understanding their rights and responsibilities under fair housing law. Staff recommends an award of $10,000 to the Fair Housing Council of Oregon for the proposed Fair Housing Project. Unrequested funds In the event FHCO is awarded $10,000 the City will still have an unallocated remainder of $346,522 in our HUD line of credit. The city has not received any funding requests in 2008 to meet the objective of providing of affordable ownership and/or rental housing. In support of these goals (Goals 1, 2, and 3 in the Consolidated Plan) staff believes the City must actively work with community groups and organizations to identify a project whereby this goal and objective can be achieved in the 2008 fiscal year. As the City of Ashland is the recipient of funds from HUD, we can act directly to apply funds to projects that meet our Consolidated Plan goals. Once a project is identified in which the $346,522 would be contributed, it will be incumbent upon the Department of Community Development Tel: 541-488-5305 20 E. Main St Fax: 541-552-2059 Ashland, Oregon 97520 TTY: 800-735-2900 www.ashland.or.us 2007 CDBG Proposals- Staff Evaluation City to modify the annual Action Plan to reference the specific project and hold public hearings regarding the proposed use of the CDBG funds. The accumulation of unexpended funds from prior program years means we will exceed the maximum balance of CDBG funds permitted by HUD (no more than 1.5 times an annual allocation) upon receiving AshlandÓs 2008 allocation in July of this year. Should the City have a balance of 1.5 times our annual allocation on June 30, 2009 (one year after being found untimely) HUD sanctions can include recapture of unspent funds exceeding the 1.5 cap. In addition to the unexpended competitive award amount of $356,522, the City also has $83,363 unexpended in administration funds (2007 and 2008) which can only be drawn down after the primary allocation is expended. These two amounts combine for a total of $439,885 in our HUD line of credit available as of July 1, 2008. Given the 1.5 threshold, and our annual allocation most recently being $204,831, we must expend a minimum of $132,638 by the timeliness test on June 30, 2009 to avoid potential sanctions and loss of allocated funds. Staff believes the City can expedite the expenditure of all un-requested CDBG funds through application on qualified projects in this program year and ensure we are not found untimely by the program yearÓs end. Potential projects that would be eligible uses of the unallocated CDBG funds include: 1) Public facility improvements within public right of ways. This use would include the installation of street improvements in low-income neighborhoods or in direct support of a specified affordable housing project. The existing affordable housing project at the terminus of Chitwood Lane along Clay Creek is one such development that could benefit through the extension of a street. Further, other land acquisitions in support of affordable housing could be assisted through a contribution of CDBG toward street improvements necessary to support the future affordable housing. 2) Land Acquisition for an affordable housing development. This application of funds is the most familiar to the City of Ashland, where following prerequisite environmental reviews a property is purchased in whole or in part with the available CDBG funds. Given past subsidy for affordable units has typically ranged between $40,000 and $50,000 per unit, it is anticipated an expenditure of $346,522 could assist in the development of up to 8 units. 3) Rehabilitation of housing to be secured as affordable. As an example of this use The Housing Authority of Jackson County (HAJC)has submitted a letter to the City indicating that they are working to acquire the Stratford Apartments, a 52 unit affordable housing complex on Clay Street, to maintain them as affordable housing. The application of CDBG to assist with rehabilitation of these units, and thereby extend their term of use as affordable housing, would be an eligible use of the funds. As the rehab costs are estimated to be between $750,000 and $1,000,000, this application of CDBG funds is one potential means of expending the funds within the program year in the event HAJC is successful at acquiring the property. Department of Community Development Tel: 541-488-5305 20 E. Main St Fax: 541-552-2059 Ashland, Oregon 97520 TTY: 800-735-2900 www.ashland.or.us 2007 CDBG Proposals- Staff Evaluation Housing in the NEWS Ashland Housing Commission Packet Bggpsebcmf!Ipvtjoh!OPX" IpvtjohboeIvohfsjoPsfhpo PsfhpoÉtijhiivohfssbuf!jt!ejsfdumzdpoofdufe!up!uif!mbdl!pg!bggpsebcmf!ipvtjohjo dpnnvojujftuispvhipvu!pvs!tubuf/! 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