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R-2002-139 2003 Annual Action Plan
RESOLUTION NO. R-2002-139 A RESOLUTION authorizing and directing the City Manager of the City of Yakima to submit an Annual Action Plan to the United States Department of Housing and Urban Development in compliance with the Five Year Strategy of the Consolidated Plan developed in 1999. WHEREAS, the City of Yakima is an entitlement city pursuant to Community Block Grant funds as specified by the United States Department of Housing and Urban Development and is required to file an Annual Action Plan each year subsequent to the Consolidated Plan application developed in 1999; and WHEREAS, the Annual Action Plan is developed using the priorities of the community, the direction of City Council and the approved programs as established in the Consolidated Plan; and WHEREAS, the Annual Action Plan includes the 2003 Community Development Block Grant (CDBG) and HOME budgets, and activities and expenditures as projected by the Office of Neighborhood Development Services, and WHEREAS, the City Council of the City of Yakima deems it to be in the best interests of the City of Yakima to submit the Annual Action Plan to the United States Department of Housing and Urban Development as required by federal regulations; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: R. A. Zais, Jr., the City Manager, is hereby authorized and directed to execute the CDBG and HOME application documents, including all understandings and certifications contained therein, to the United States Department of Housing and Urban Development as required, and the City Manager is hereby designated as the official representative of the City to act in connection with the application and the Annual Action Plan Furthermore, the City Manager is hereby authorized to execute all contracts, deeds, notes, mortgages, and other documents required to carry out eligible programs funded through the 2003 Annual Action Plan. ADOPTED BY THE CITY COUNCIL this 26th day of November, 2002. ATTEST: City Clerk ry Place, Mayor MEMORANDUM November 20, 2002 TO: Mayor and City Council FROM: Cook, CED Director SUBJECT: Supplemental information and clarification on 2003 CDBG Annual Action Plan Agenda Item It would appear that in our effort to clarify the impact on personnel of reducing ONDS staffing in 2003, we may have in fact created more questions than we answered. We apologize for any problems created. We hope that the attached further clarification on City policy concerning reductions in force as related to the discussion in the action plan for ONDS personnel helps to reduce the confusion. If you need further information please do not hesitate to ask. City policy regarding reductions in force includes several possible alternatives for existing employees. Under civil service regulations it is policy for existing employees who have held permanent employee status in a previous city job to have the right to "bump" to that position. The attached memo from the Human Resources Manager dated November 15, 2002 discusses seven positions that could be affected in this manner. In addition staff affected by the reduction in force that do not have bumping rights could be considered for vacant positions within the city. Alternatively, management, with Council budget authority, could consider alternative funding sources for any position impacted by a reduction in force. For example, the position of Grants Writer could be considered for funding through utilities, general fund, or by other departments benefiting from this position. Also included in this packet are the following: 1. A written question -by -question response to inquiries directed to the CDBG program during the initial session of our public hearing on November 4, 2002. The questions, transcribed from the Y -PAC videotape of the meeting, are printed in blue; the responses are printed in black. Memorandum re 2003 Annual Action Plan, 11/21/2002, 9:32 AM,ja 1 2. A memo to Bill Cook from Marvin Miller, ONDS Operations Supervisor regarding the public notice process on our action plan development, including a calendar of events, and copies of published notices along with an 0.111110. V 11 VL puulit.-a LV11. 3. A proposal developed by CED and Water and Irrigation which contemplates an annual commitment of CDBG funds of approximately $250,000 per year, beginning in 2004 (or the first year of construction activities) and continuing until completion of either renovation of the 308 irrigation system, or replacement of the system by potable water sources, as stipulated in the Aquavella ruling. Aquavella It is important to note that the $250,000 could be budgeted from the CDBG program with little impact on existing programs because FY 2003 is the last year of an annual payment of $205,000 to retire housing bonds sold by the city and paid for with CDBG dollars. Also, this proposal is valid for either solution to the challenges presented in the Aquavella ruling. It envisions a program to be instituted as needed by linking use of CDBG funds to the approval and construction of public facilities and infrastructure. Finally, this proposal addresses a need for improvements on private property that would otherwise likely be borne by low and moderate -income homeowners within the CDBG Target Area. In conclusion, I would like to remind the Council that the potential reprogramming of $673,538 included in the Final Draft Action Plan is not a recommendation but an analysis. Our intent was to inform the Council of multi-year commitments of CDBG funds and the minimum staffing levels needed to administer the federal grant program. It is Council's prerogative to decide how much, if any, of these reprogramable dollars should be moved from existing programs. Memorandum re 2003 Annual Action Plan, 11/21/2002, 9:32 AM„ja 2 TO: HUMAN RESOURCES DIVISION 129 North Second Street Yakima, Washington 98901 Phone (509) 575-6090 • Fax (509) 576-6358 MEMORANDUM 11/15/2002 Bill Cook, Director of Communit_ onomic Dev Bill Cobabe, O.N.D.S. Manager Marvin Miller, O.N.D.S. OperatioSupervisor FROM: Archie M. Sutton Human Resource Manager Subject: Potential Reduction In Force for O.N.D.S staff members The purpose of this memo is to advise you of the affects a reduction in force will have on the following identified staff members; Archie Matthews, Donna Briggs, Daniel Lamb, Frances Eads, and Vaughn C McBride. 1. Archie Matthews: Mr. Matthews current permanent employment status is in the classification of a Home Remodeling Technician in O.N.D.S. He has not been employed in any other classification within the City of Yakima. 2. Donna Briggs: Ms Briggs current permanent employment status is in the classification of a Housing Loan Specialist in O.N.D.S. Prior to her current classification status, she was a Department Assistant I. 3. Vaughn C. McBride: Mr. McBride current permanent employment status is in the classification of a Community Development Specialist, in O.N.D.S. Prior to his current classification status, he was an Assistant Planner. 4. Frances Eads: Ms Eads current permanent employment status is in the classification of Housing Accounting Specialist, in O.N.D.S. Prior to her current classification status; she was a Department Assistant II, in the Police Department and Codes, and Department Assistant III in Housing. 5. Daniel Lamb: Mr. Lamb current permanent employment status is in the classification of a Housing Rehab. Specialist II in O.N.D.S. Prior to his current classification status, he was a Home Remodeling Technician in O.N.D.S. He held no other position within the City of Yakima. 6. Michael Morales: Mr. Morales current employment status is in the classification Grants Writer/Compliance Officer in O.N.D.S. He held no other position within the City of Yakima. 7. Mrs. Kris (Oster) Johnston: Mrs. Johnston is currently a probationary Permit Tech. With the Codes Division. She has held positions as, Utility Service Rep, and Department Assistant II. In accordance with the Civil Service Rule and Procedures, Chapter XI, Separation From Service, Section A, the above individuals would have bumping rights to job classification in which they achieved permanent employment status. A copy of the rules is attached for your information. City of Yakima Office of Neighborhood Development Services 2003 ANNUAL ACTION PLAN PUBLIC HEARING November 5, 2002 City of Yakima Council Chambers Questions, Comments, Concerns from Council Members and the Public: 1. Hoyt' MUM' total ( Tits• dollars are budgeted in 2003 . for sidett alks' ONDS $17,000 Arterial Streets $20,000 (see Division 141 Policy Issue) Streets $10,000 (in Division 141, see budget) $47,000 2. Lead-based Paint [tin' doesn't it come out of HOME') Lead-based paint expenses may come out of HOME dollars if the project (single family home) is HOME funded. If funded from HOME, the actual lead-based paint expenses would come out of the maximum allowable rehabilitation cap which in turn would limit the amount of work or make the project unfeasible because the entire dwelling has to be brought up to code. The Senior / Disabled Home Repair Program and Paint Program are CDBG funded. Rehabilitation relocation • [W M' i.s this not paid out of H011E'' Rehabilitation / relocation expenses may be paid out of HOME funds for HOME assisted projects only. 3. How much was .spc111 last year 011 lead-based paint') In 2001, the first year of the lead-based paint program, $45,570.69 was spent. 4. [['h}' ain't «L)RCG hinds be used for instead of passing cost 0/1 /o citizens' CDBG funds can be used for irrigation with some conditions: • funding for irrigation cannot be used for debt service • if federal CDBG funds are spent on irrigation, these funds must also be used to pay for special assessments of low income families • City must fund previously approved commitments and maintain a minimum staffing level to administer the federal grant programs The use of CDBG funds for irrigation is a City Council decision. 11/21/2002 1 5. Wants to use CDBG holt ; doesn't want to wan for another thin! VL'ar.s. If Cm. citt_ens dolt 1 have money noir, boil will that' have dollaiS 111 another three' l'eCITS' See response to Question #4 above. 6a. Regievt for dollars for neighborhood organI:anon.S Requests for funds to assist the continuing development and / or capacity building of neighborhood organizations could be funded with CDBG dollars through the proposed Community Service Program. The neighborhood organizations can apply for capacity building assistance now if they meet requirements as outlined in the Community Service Program. 6b Request fol" nett /Ille (1(.'7'7"1 in 331 01? A new line item can be added into the budget if there are funds available for use in the line item, and if the funds are used in accordance with HUD rules and regulations. I se O000 -111. to designate neighborhood structural development Object 41E in service unit 331.0000 is already designated as "Community Service Program". This designation for object 41E is citywide. In other words, any division within the City using object 41E on an account number would show the description of "Community Service Program". To change this designation could cause problems in other divisions. If funds were to be used for a new program, such as Neighborhood Structural Development, a new line item should be created, designating it for this purpose. 7. TTCIS ii/Clit'C17`e of other Conl/lnlllitl' illeeti1lgs. Pubic pal`t/e'tpe711017 I.e outlined nl 5- ‘,1 'ear plan See attached memo on Public Notices and Attachments 8. T'J'ith lle'it construction, holt 7n1CI77Y dollai`S are being put 171 Ire the ('111. holt' 117(1171' dollars are being pill in hl' othe7'S ) PUNIC' p171'ate pCii`tner.S{llp aiidpi irCite p(ti`tnei'S11l17 heed\ 10 put dollars iii ii) see pro/act happen. 11/21/2002 2 Would like breakdown, .financially, line hl' hne, what goes 11710 that particular project. How much was spent hi ON)S, ho»' 17711th was spent /Y' other e171111e.s') 1f'as unhappy u ith North 4th Street project, with the sldeit'alks, no planting strip, /e11Ce S 017 C1114h and 1101 Where they should he In a turn -key, newly constructed single family home, which includes landscaping with fence, a $20,000 per home development subsidy grant is provided. A second mortgage of a maximum $30,000 is provided to first-time homebuyers for gap financing. The balance of needed financing comes from a local lender. North 4th Street & "P' Street Project Cost Breakdown and Leveraged Dollars Property Acquisition / Demolition and City Right -of -Way Improvements: Total: Per Lot: Appraisal $ 400 $ 133 Purchase (3 lots with market) 29,133 9,711 Asbestos testing 259 86 Demolition 12,775 Land Surveying Fees 1,609 805 Intersection realignment plus curbs, gutters and sidewalks (match) * 62,000 One lot used for match for state street money * (9,711) * These funds were leveraged with $407,000 in state and federal money. Home Construction for Two Houses: Construction Cost Site improvements — two lots Sale of Two Homes: $150,000 75,000 51,000 25,500 Appraised Value $183,000 91,500 Sale price 183,000 New first mortgage thru Yakima Federal Savings and Loan 123,000 61,500 City Gap Financing, second mortgage 60,000 30,000 Net Investment: Total Investment $307,176 Loans & Leveraged Funds $590,000 Net Leveraged Dollars $282,824 11/21/2002 3 2 4 ‘t. etWIojeci 9. S98, 700 111 Exhibit B. Page 23 of document 61' 1 1 1. _ Who gets' this' nl0nel•' 1 s 111 )aid hack to 111e people It nv nco c been paling- the irrigation assessment since 199- OR does 11 go back into the protect'' 'Ibis $98,700 is an estimate of the future annual special assessment fees that would be paid by low and moderate income families in the 308 irrigation district. In the 308 irrigation system, $141,000 is collected annually to renovate the system. If CDBG money is used for the project, fees that would be paid by low and moderate income residents must also be paid with CDBG funds. $98,700 represents an estimate of the total special assessment collected in 308 annually that would be paid with CDBG funds in the future. These funds go to the Water / Irrigation Division to be used for future renovations to irrigation systems. 10. Pcg:;c' 25 fro Con iI'ho developed this and how was it developed' The Rehabilitation vs. Planned Residential Development Pro / Con chart was developed by ONDS Operations Supervisor, Marvin Miller. The chart was developed based upon observed impacts from five ONDS new development projects dating back to 1996. 11. Page 26 Continuum of (Fare Is this a (T/iv protect' 1s' 11 also a ('oIn111' protect' Deas with Homeless chid McKiiiiiel• Hinds 1 )oes ("mli/itl' kick t/1 ain dollars' 01? 1.s 11 wrath' out of 0iVDS office'' CDBG regulations require that the City participate in the Continuum of Care for the Homeless planning, along with the County and other agencies. No annual funds are spent, just limited staff time in coordinating the planning effort. 12. When did formula for CDBG hearings change' Il7iai is the new one'' The Citizen Participation Plan, which outlines the public hearing process, has not changed since its adoption in 1998 by City Council. See memo relating to Question #7. 11/21/2002 4 13 If 'hen use of funds to benefit the largest number of residents in the I urger area and health or safety' of those residents - when that lt'as no longer criteria, for use of f1111dS 2 The criterion for the use of CDBG funds is a City Council decision, as long as the use is eligible under federal regulations. In order to determine what the needs of the largest number of residents in the target area are, ONDS conducted a survey. The preliminary analysis of the survey results, included in the final draft of the 2003 Annual Action Plan, lists potential uses in the order of citizen priority. 14. ,SIn"1'el• nl document• "used by limited income revidenty" - distinction between residents and property owners The survey was taken of the target area, with no distinction as to income. The survey does not say or imply only low income questioned. This survey document was a tool to be used by the survey taker; it was not seen by the person being surveyed. 15. ,'-Dace appears in legal ads in classified section - Not 1na111 it target area get newspaper" so tilts is not an effective means for getting the nre.ssage out See Memo relating to Question #7 16. Page I "Specific process 10 follow Wants cops' of this specific process to follow which involves review of programs proposed as well as an effort to gather comments mid input from concerned cttl:ens' elected officials and outtilde agencre.s. The process is described beginning on page two of the 2003 Annual Action Plan. For further information, please refer to 24 CFR Part 91. (Lengthy document - available upon request) 17. Page ; Sidewalk protect 6 and Spruce .Street - cr lovelt" once historic home, turned into group I ;1 home, using ()NI.),S funds No srcleitalk was installed A sidewalk is in place along South 6th Street (west side), but not on Spruce Street side because there are no other connecting sidewalks on Spruce. Because of citizen objections to the use of City funds on this project, the City Council instructed ONDS not to spend any money to rehabilitate this house. All construction funds for this project came from the Veterans Administration. The project was managed, and is operated and owned, by Central Washington Comprehensive Mental Health. 11/21/2002 5 18. Blight f4 7ien Glenn f aie'n:llelu was here, in' saicl that word 11 a.s no1 ni our lc'r/71/nologl' C1S Il change.s .sodic things in i_'[ )RG. ff a/its re1:1 dear determination provided - what chaitge.s ocelli" 111 the application of CIDB5G tunas by 11Se Of tins -word' As recalls, had S011ie'thilig 10 do with the WHO, ffiHA7, WHEN of host• Miotic t' could he spent There has been no declaration of any area of the City of Yakima as being blighted. Our use of the team is not a HUD declaration. ONDS is working to prevent blight. The alley cleanup project is done under CDBG's national objective of area benefit of low -to -moderate income persons. 19. Page 4 Single family rehabilitcltioln projects. Assist with repairs of homes of City homeolt'ner.s. Does that tneaii aln'onC (11113t'llerc' OR 1s tins a Ivo'? The Single Family Rehabilitation Program is a Citywide, owner occupied program for income eligible families. 20. I'ami Pro rain of7iai rohl/lleer.s i.s the City recruiting .from Pennsylvania') 6f"ani tins an.s-werc'd 012, through C1.sSIstanec' of Habitat for Humanity Clarification of this. (Marlficatioli of hours. 0/1 Page 13' Definition of Habitat for Hitinc iiit Youth Program. If they have a youth program, Alann1 IrC1111S 10 kiiolt' clhollt It. In 1999, with the assistance of Habitat For Humanity volunteer youth programs, a group of volunteers from Viiianova College in Pennsylvania came to Yakima during their spring break. They assisted with painting the home of a senior citizen. All recruiting is done by Habitat For Humanity. Work is done on projects through the ONDS Paint Program. The number of hours volunteers work equates with the number of volunteers showing up for the project(s). The volunteers come from a variety of sources, including Habitat For Humanity, Young Neighbors in Action, OIC Americorps, city staff, council members and other private citizens. (See group photos) 21. Sr Georgette Ravle.ss and her youth volunteer group lt'ants 10 know, are we talking about Young Neighbors 111 Action, a Catholic Youth (hrgani:atton" If .so, 11'077l.s line item for diem Do1n'1 dein' their presence. Yes, we are talking about Young Neighbors in Action. As there are no funds specifically for this volunteer group, there is no line item. These volunteers assist with already -funded projects like graffiti abatement and the paint program. ONDS provides locations for these programs. 11/21/2002 6 Cityttof Yakima's emor/Dis bled rior Paint '''-eiNkii611111v4-- 'V- w NW Habitat youth group . ,lits*.e PI* rtificateslronvIVIa oreMuy • - Ark v.et • amtowincomesemor, ••• 5, 22. Page 4 Public Facilities - Ls this a 11eH program'' Doesn't Parks have tt.s 01411 budget'' Are these the .same Mikis mentioned about six years ago that, when a certain hitilchng went down, it was promised that CL)BG f ilild v would he used t() /)11rc/iase a half-block to add. 111 a play .space at one of our schools'' Wants to add school grounds as green .space, using CDBG tuilds The Public Facilities Program was created in 1999 to provide CDBG funds to assist City departments on eligible Target Area projects. Eligible projects are additional, or replacement of, capital items, particularly in service areas like Parks and Recreation when other funds are not available. 23. Pro Con Page 25 Vrose deep thinking'' See Question #10 24. If rehabilitation has such limited value, why have we done it• for 20 years'' If7n• have we invested 20 years of CDBG.funding 111 rehab' Housing rehabilitation with the use of federal funds has gone, and is going, through changes in recent years that is making rehabilitation not as cost effective as new construction. With the use of HOME dollars, the entire dwelling has to be brought up to code or the project cannot be rehabilitated. Environmental issues (lead-based paint, asbestos and air quality) have to be addressed, which are factors that drive up the cost. Increased cost of building materials, labor, safety, and insurance is driving up all construction costs. A $30,000 cap on the second mortgage gap financing has also limited the number of feasible rehabilitation projects. Housing rehabilitation is still a great value to our neighborhoods but, because of the above issues, an eligible home needs to be in good condition and / or have a small mortgage to be cost effective or even feasible. 25. Lhe, first CON. rehabilitation not an eligible e1/)en.se for CHDO partnership. II hat was the Housnig Foundation'' A (HI }C)'' Whose dollars tii'ere ,spending'' A CHDO may use HOME dollars for a first-time homeowner program but may not use CHDO dollars for an owner -occupied housing rehabilitation program. The Housing Foundation was a CHDO, doing a first-time homeowner program with HOME, HOPE 3 and Washington State money. 11/21/2002 7 T'T f11. can't we /1!171 reor'gClrltfe wk./ reconfigure into 1i h1(11 other cities have 0 mere pass-through? Creation of partnerships is a high priority for ONDS. Most cities that have a mere pass-through process for their CDBG and HOME federal funding have strong, well established non-profit or governmental agencies that carry out the federal administrative requirements. Over the last four years, ONDS has been busy building partnerships with agencies, businesses, and City divisions to assist, leverage and / or provide match money for eligible projects. An abbreviated list of our partnerships, to whom we have passed through money, includes: • Community Service Program YWCA Rural Community Development Resources Success by Six Yakima Schools Foundation RSVP United Way Best Self • Infrastructure / City Divisions Engineering Parks & Recreation Streets • Housing / CHDO's Yakima Valley OIC Triumph Treatment Center Habitat For Humanity Next -Step Housing United Builders J.A.L. Construction • Economic Development ClientLogic 11/21/2002 8 DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT Office of Neighborhood Development Services 112 South Eighth Street Yakima, Washington 98901 Phone (509) 575-6101 • Fax (509) 575-6176 Bill Cobabe, Manager Memorandum TO: William Cook, CED Director FROM: Marvin Miller, ONDS Operations Supervisor DATE: November 12, 2002 SUBJECT: Annual Action Plan Public Hearing Notice The Consolidated Plan (Annual Action Plan) regulations stipulate that grantees must hold at least two public hearings a year, one during the development of the plan and the second for the final draft stage. The first public hearing was held at the Senior Citizens Center on July 24, 2002 and the second on November 5, 2002 at the City Council Chambers. In past years, ONDS held two to four neighborhood meetings along with the two public hearings, which mostly resulted in low attendance and input. This year ONDS provided a Target Area Needs Assessment Survey along with the required two public hearings. During a 2001 HUD monitoring by Community Planning and Development Representative, Alfred Heston, it was recommended in a cost saving measure to do away with using display advertisement in our local newspaper. He recommended advertising in the classified section, as do most grantees. Bill Cobabe, and myself decided to use the classified section but keep the notice as a double column with border for more visibility. In addition to advertising in the Yakima Herald -Republic, ONDS provided Public Hearing Notices in the form of flyers in the following locations: Yakima Senior Citizen's Center, South East Yakima Community Center, Yakima Police Department and the Yakima City Clerk's Office. i City of Yakima Office of Neighborhood Development Services 2003 ANNUAL ACTION PLAN Citizen Participation Process Schedule 1. Council Neighborhood Development Subcommittee Meeting July 9, 2002 '1 A 11�___ _1.'S_, [__ Tl__1_�1_ _ TT(_�_!_____ __ T__�1__ 1 rf O_ 111 /1 {Af/1/1 L. L .uYelblSe r b4VIIe 18eai111g JLay 1 % Mc.Jkre L1, LVVL 3. Public Hearing on Community Needs July 24, 2002 7:OOpm-9:OOpm at the Senior Citizen's Center 4. Action Plan Draft Completed 5. 30 -day Comment Period Begins 6. Set Date for Public Hearing 7. Comment Period Ends 8. City Council Public Hearing and Approval 2:OOpm Council Chamber September 30, 2002 October 1, 2002 October 15, 2002 November 1, 2002 November 5, 2002 9. Submission to U.S. Department of Housing and November 15, 2002 and Urban Development 10.New Fiscal Year Begins January 1, 2003 CITY OF YAKIMA 2003 ANNUAL ACTION PLAN "PUBLIC HEARING" The City of Yakima, Office of Neighborhood Development Services (ONDS) is holding a public hearing for citizen participation to develop the upcoming 2003 Annual Action Plan and Community Development Block Grant and HOME Programs. ONDS is requesting input from city residents regarding affordable housing, community development needs and current or proposed activities. Eligible new activities must be within the scope of the City's 2000-2004 Consolidated Plan as approved by the U.S. Department of Housing and Urban Development. Estimated total available funds for 2003 is $2,200,000. The public hearing will be held July 24, 2002 from 7:00 P.M. to 9:00 P.M. at the Senior Center, 602 North 4th Street, Yakima. For additional information, contact the Office of Neighborhood Development Services at 112 South 8th Street, Yakima, WA, or call 575-6101. Signing, translation or other services required by persons with disabilities will be available upon advance request. EQUAL HOUSING OPPORTUNITY \ 2003 ANNAL ACTION PLAN The City of Yakima, Office of Neighborhood Development Services (ONDS) is holding a p(.blic hearing for citizen participation to develop the upcoming 2003 Annual Action Plan and Community Development Block Grant and HOME Programs. ONDS is requesting input from city residents. regarding affordable housing, community development needs and current or proposed activities. Eligible new activities must be within the scope of the City's 2000-2004 Consolidated Plan as approved by the U.S. Department of Housing and Urban Development. Estimated total available funds for 2003 is $2,200,000. The public hearing will be held July 24, 2002 from 7:00 P.M. to 9:00 P.M. at the Senior Center, 602 North 4th Street, Yakima. For additional information, contact the Office of Neighborhood Development Services at 112 South 8th Street, Yakima, WA, or cli 575-6101. Signing, translation or other services required by persons with dishhNnles !vii[ be available apon advance request. 29.1377185.040 BIN emtasmsemm EOMHOUSING OPPORTUNITY T'L CITY OF YAKIMA PUBLIC NOTICE REQUEST FOR PUBLIC COMMENT 2003 ANNUAL ACTION PLAN The City of Yakima, Office of Neighborhood Development Services is requesting written public comment on the 2003 Annual Action Plan and projected budget. The U.S. Department of Housing and Urban Development (HUD) requires the City of Yakima to provide a written comment period for residents and agencies to review and comment on the proposed Annual Action Plan, Community Development Block Grant and HOME Programs. Copies of the 2003 Annual Action Plan are available at the following locations: Neighborhood Development Services 112 S. 8t" St., Yakima, WA Clerks Office, City Hall 129 N 2nd Street, Yakima, WA Written public comment will be accepted October 1, 2002 through November 1, 2002. Please address comments to the attention of Mr. Bill Cobabe, Manger of Neighborhood Development Services, 112 S 8th Street, Yakima, WA 98901. A public hearing will be held November 5, 2002 at 2:00 P.M. in the City Council Chambers, 129 North Second Street to receive additional public comment. AFFIDAVIT OF PUBLICATION STATE OF WASHINGTON,) COUNTY OF YAKIMA ) DIANE SIMS, being first duly sworn on oath deposes and says that she is the Accounting Ac; ctant of v..kima Newspapers In a )b i.. Yakima Herald Republic, a daily newspaper.Said newspaper is a legal newspaper approved by the Superior Court of the State of Washington for Yakima County under an order made and entered on the 13th day of February, 1968, and it is now and has been for more than six months prior to the date of publication hereinafter referred to, published in the English language continually as a daily newspaper Yakima, Yakima County, Washington. Said newspaper is now and been during all of said time printed in an office maintained at aforesaid place of publication of said newspaper. CITY OF YAKIMA PUBLIC NOTICE REQUEST FOR PUBLIC COMMENT 2003 ANNUAL ACTION PLAN The City of Yakima, Office of Neighborhood Development Services is requesting written public comment n t e he 2003 Annual Action Pian projected _ Department of Housing and Urban Development ('r IUD) ° requires the City of Yakima to provide a written comment 00t period for residents and agencies to review and comment on the oosed opment Block Grant andIHOME ProgramsAction Plan, mmunity Devel- the annexed is a true copy of a: ANNUAL ACTION PLAN Copies of the 2003 Annual Action Plan are available at rias published in regular the following locations: i newspaper once each tiood Development Services a n„t ive D Av i e \ to -wit; ��.. �.- tat �,,,) LV�Wlt, 011 112 S. 8th St., ppH Yakima, WA issues (and not in supplement form) of DAY and for a period of ONE Clerks Office, City Hall 129 N. 2nd Street Yakima, WA Written blic be 02 through Novemberr1, 2002ent ! Pleasaccepted October s address comments to the attention of Mr Bill be, hbor- hood Development Services, 1Manager12 S. 8th l Street,Yakmoa, WA 98901 A public hearing will be held November 5, 2002 at 2:00 p.m. in the City Council Chambers, 129 North Second Street to receive additional public comment. (09525372-0030) September 29, 2002 411C the the the the the the 29TH day of day of day of day of day of day of day of day of day of day of day of day of day of day of day of day of and the said newspaper was regularly during all of said period. That the for the foregoing publication i the SUBSCRIBED day of SEPTEMBER , 2002, distributed full amount sum of to its subscribers of the fee charged $78.68. ACCOUNTING ASSISTANT AND SWORN to before me this iktotut , 20 ears. (a�./`zi, !tea - - - , r� vow NOTARY PULI :C in and for the State of Washington, residing at Yakima. 30 Legal Notices 30 Legal Notices of Yakima Will CoThe nduct a Public Hearing On The 2003 Annual Action Plan For the Community Development Block Grant and HOME Date: No emberPro5, 2002 2:00 p.m. Yakima City Council Chambers Proposed Programs and Estimated Budget Program Funding Communit Develo me Activities include Community S Grant $1,526,200 placement, Blight Preventionand e CleanSidewalk cuPaint o- nomic Development, Public Facilities, Infrastructure, Graf- fiti Abatement, Single Family Housing Rehabilitation, Eld- erly/Disabled housing Rehabilitation, Lead Based Paint Abatement, and Rehabilitation/ Relocation. HOME Activities include Single Family Rehabilitation, New Con- struction HUD ection 108/Epi Economic Deveio.ment Loan Fund $5,000,000 of the For more information or for a copy call 575-6101 plan (09525697-0030) October 24, and 27, 2002 MEMORANDUM November 20, 2002 TO: Mayor and City Council FROM: Bill Cook, Director of Community & Economic Development Bill Cobabe, Manager, Office of Neighborhood Development Services Dave Brown, Water/Irrigation Engineer SUBJECT: Use of CDBG funds for 308 Irrigation System We have been working on the possible use of CDBG dollars to assist in whatever decision Council makes in terms of the City's irrigation system. There are two proposals being considered for providing irrigation water to the 308 Irrigation District: ➢ Option 1 is to repair the existing irrigation system which serves some 11,000 customers. ➢ Option 2 is to convert the City's entire irrigation system to the potable water delivery system which serves approximately 19,000 customers. The second option is estimated to be 50% more expensive in large part because it would include the construction of a new water treatment plant. In the event that option 2 is approved, this plant will be needed to meet the additional treated water demand which would come from the addition of irrigation customers. Either option includes the expense of improvements and expansion to the public delivery system but may not include all of the cost of private yard lines and sprinkler systems (replacement or new). Yet, in fact, if the 308 irrigation system is repaired, most existing yard lines will be the weakest link in providing improved service because they are old, leaking, and/or galvanized and corroded. If a conversion to potable water is selected to replace the existing irrigation system, new yard lines will also be required. Recommendation: Subject to adoption by the Yakima City Council of a plan to either repair the existing 308 system, or upgrade the current system to replace the irrigation system, we propose that CDBG funds be budgeted for irrigation or domestic water service lines beginning in the 2004 budget, and for the following 9 years (subject to annual Council approval), or until completion of renovation or replacement of the system as stipulated in the Aquavella settlement. We recommend the budget for private yard line replacement or renovation be at an amount equal to approximately $250,000 per year over the 9 year period. These funds would become available with little impact on the existing programs, because beginning in 2004 CDBG funded housing bonds will be retired. We recommend waiting to initiate this new program until 2004 to give Council sufficient time to make the decision on which program of repair or replacing the 308 irrigation system the City will use. Also, according to the City Water and Irrigation staff, it is unrealistic that there will be any significant construction work on either solution until at least 2004. We recommend this proposal because it will offer an opportunity to validate the individual beneficiaries of the City's CDBG funded assistance and will be a program that benefits low and moderate income home owners regardless of which program Council chooses to implement. This program, as proposed, addresses a need which may not have been anticipated in the funding for either the irrigation or potable water models. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No.: t For Meeting of: November 5, 2002 ITEM TITLE: Public Hearing and Approval of 2003 Annual Action Plan SUBMITTED BY: William Cook, Director of Community and Economic Development CONTACT PERSON/TELEPHONE: William Cobabe, Neighborhood Development Services Manager (575-6101) SUMMARY EXPLANATION: The City of Yakima, Office of Neighborhood Development Services has scheduled a hearing before the City Council to receive public comments regarding possible activities for the 2003 Annual Action Plan and proposed budget, as required by the United States Department of Housing and Urban Development (HUD). The U.S. Department of Housing and Urban Development requires that the City of Yakima conduct at least two public hearings per year to offer the community an opportunity to comment on the proposed 2003 Annual Action Plan, Community Development Block Grant and HOME Programs. The first of the public hearings was held on July 25, 2002 at the Senior Center. A draft Action Plan has been available for public review and comment over the past 30 days, and notices of the public hearing have appeared in the Yakima Herald -Republic (see attached). Draft copies of the proposed 2003 Annual Action Plan been available for the last 30 days to the public and circulated to the Mayor and City Council At the public hearing on November 5, 2002, the Council will hear additional public comment and amend and approve the proposed 2003 Annual Action Plan. The Annual Action Plan will then be submitted to HUD within 45 days of the beginning of the next fiscal year. Please note, we have attached a corrected Exhibit B for the final draft annual Action Plan. This change has been made to reflect the Water and Irrigation Division's FY2001 cost estimate of $14,500,000 to rebuild the 308 irrigation system. Resolution Ordinance Contract Other Specify Funding Source: N/A APPROVAL FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Approve 2003 Annual Action Plan BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: RESOLUTION NO. R-2002 A RESOLUTION authorizing and directing the City Manager of the City of Yakima to submit an Annual Action Plan to the United States Department of Housing and Urban Development in compliance with the Five Year Strategy of the Consolidated Plan developed in 1999. WHEREAS, the City of Yakima is an entitlement city pursuant to Community Block Grant funds as specified by the United States Department of Housing and Urban Development and is required to file an Annual Action Plan each year subsequent to the Consolidated Plan application developed in 1999; and WHEREAS, the Annual Action Plan is developed using the priorities of the community, the direction of City Council and the approved programs as established in the Consolidated Plan; and WHEREAS, the Annual Action Plan includes the 2003 Community Development Block Grant (CDBG) and HOME budgets, and activities and expenditures as projected by the Office of Neighborhood Development Services, and WHEREAS, the City Council of the City of Yakima deems it to be in the best interests of the City of Yakima to submit the Annual Action Plan to the United States Department of Housing and Urban Development as required by federal regulations; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: R. A. Zais, Jr., the City Manager, is hereby authorized and directed to execute the CDBG and HOME application documents, including all understandings and certifications contained therein, to the United States Department of Housing and Urban Development as required, and the City Manager is hereby designated as the official representative of the City to act in connection with the application and the Annual Action Plan Furthermore, the City Manager is hereby authorized to execute all contracts, deeds, notes, mortgages, and other documents required to carry out eligible programs funded through the 2003 Annual Action Plan. ADOPTED BY THE CITY COUNCIL this 26th day of November, 2002. ATTEST: Mary Place, Mayor City Clerk YAKIMA HERALD -REPUBLIC Sunday, October 27, 2002 • 7 C 30 Legal Notices The City of Yakima Will Conduct a Public Hearing On The 2003 Annual Action Plan For the Community Development Block Grant and HOME Programs Date: November 5, 2002; 2:00 p.m. Yakima City Council Chambers Proposed Programs and Estimated Budget Program Funding Community Development Block Grant $1,526,200 Activities include Community Services, Sidewalk Re- placement, Blight Prevention and Cleanup, Paint, Eco- nomic Development, Public Facilities, Infrastructure, Graf- fiti Abatement, Single Family Housing Rehabilitation, Eld- erly/Disabled housing Rehabilitation, Lead Based Paint Abatement, and Rehabilitation/ Relocation HOME $ 815,000 Activities include Single Family Rehabilitation, New Con- struction HUD Section 108/EDI Economic Development Loan Fund $5,000,000 For more information or for a copy of the plan call 575-6101 (09525697-0030) October 24, and 27, 2002 SIEZEIL -A kr Zan FINAL DRAFT City of Yakima Office of Neighborhood Development Services Community Development Block Grant (CDBG) and HOME Programs Annual Action Plan For Year 2003 October, 2002 2003 City of Yakima Annual Action Plan Each year, the federal Office of Housing and Urban Development (HUD) is authorized by Congress to provide funds to the City of Yakima under the Community Development Block Grant (CDBG) and HOME programs. In order to receive these funds, we are required to produce an Annual Action Plan. There is a specific process to follow, which involves a review of programs proposed, as well as an effort to gather comments and input from concerned citizens, elected officials, and outside agencies. All past and current programs and expenditures of CDBG and HOME funds have been at the specific instruction of past and current City Councils, which are responsible for all local policies and funding decisions under appropriate Federal law. Purposes of the CDBG Program When Congress, by law, created the Community Development Block Grant program, it outlined very specific goals and purposes for doing so. The law, found in 42 U.S. Code Sec. 5301, states that the nation's cities face critical social, economic, and environmental problems. The law observes that, among other things, these problems result from inadequate public and private investment in housing and other physical facilities, and related public and social services. This Act goes on to explain that the primary objective of the CDBG program is "the development of viable urban communities, by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income." So, it is the most basic purpose of the CDBG program to respond to the housing, environmental, and social problems, with a strong focus on benefiting low and moderate income persons. The law also states that the assistance of the CDBG program should not be utilized to substantially reduce the amount of local support for community development activities, but to enhance local funding support. CDBG funds may not he 'iced to replace local fianding for an activity• fiunds can only aiserl for --.,_ _., ..1,. .. �»..»...b ..,. .... ........ ..J, the i............... be u.�vu for an eligible activity that was not previously funded with City general fiends. 1 The Planning Process Both long and short term plans must be made for the use of appropriated CDBG funds. The long term plan, which can be in effect for up to five (5) years, is called the Consolidated Plan. The short term plan is called the Annual Action Plan. The long-term plan outlines priorities for allocating funds, and the short- term plan describes the programs that will be used to implement these priorities. The priorities must be established in accordance with very specific requirements for input from citizens of the low -to -moderate income community it is intended to serve. In order to be eligible for funding, annual projects MUST address one of the priorities identified in the Consolidated plan. By code, the plan is required to contain the following components: Activities to be undertaken (Programs) Resources to be used (Budget) References to coordination with planning done by the local housing authority Standard form 424 (Application for Federal Assistance) These requirements will be met within this document. There is an additional requirement that citizen input be obtained from a variety of sources regarding potential and proposed activities. In response to this input we offer the following summary of proposed activities. These activities have been selected under the direction of the Yakima City Council. 2 Proposed Activities The following activities are proposed for the year 2003, in accordance with priorities selected by the City Council as contained in the most recent 5 -year Consolidated plan: (Please see the attached budgets for CDBG and HOME programs.) CDBG Program Descriptions Community Service projects are generally undertaken by outside agencies that request CDBG funds to provide youth programs or other social service type activities. By law we cannot spend more than 15% of the annual CDBG allocation and program income for Community Service projects. Sidewalk projects replace existing sidewalks that are too badly deteriorated to repair or install new sidewalks in the target area. Blight prevention / Cleanup is a new category created for 2003. The City has been conducting activities such as Alley Clean Up for several years, and a new project line for these activities is proposed to more clearly present the budget for these activities. Paint is a short name for a very special program. For several years the City has recruited volunteers from organizations as far away as Pennsylvania, through the assistance of Habitat for Humanity, who have painted the homes of elderly and disabled persons throughout Yakima. The City's only cost is to prepare the homes for painting, and the paint itself. Occasionally, if demand requires, local painting contractors are hired for certain homes. Economic Development projects provide for assistance in the creation of new jobs. The City has a five-year annual commitment to ClientLogic, if they reach specific hiring goals. This program also funds a variety of other assistance to businesses. Renewal Community activities also fall within this category. 3 Public Facilities funds provide for assistance to projects undertaken by other City divisions, within the target area. Funds may go to parks projects, for example. Infrastructure includes all of the various utility services ONDS provides. These include sewer and water connections, matching funds for large projects, and direct provision of extended mains. Graffiti Abatement includes the annual April Paint Out program. In addition, this year the City will be forming a partnership with the Americorp Volunteer program at Yakima Valley Opportunities Industrialization Center (OIC). This effort will provide paint -out efforts throughout the year. Single Family Rehabilitation projects assist with repairs to the homes of city homeowners. Loans are made to help cover the costs of major remodeling and renovation projects. ONDS staff members design the work to be done and oversee the construction with the homeowner. Elderly / Disabled Rehabilitation funds provide for minor and emergency home repairs to eligible senior citizens and disabled persons. A modest investment of these funds can enable persons to remain in their home with dignity for several years beyond what might otherwise be the case. Lead -Based Paint Abatement is a relatively new category. Federal law now requires that we take steps to control or remove this hazard on projects assisted with our funds. Lead-based paint has been proven to pose severe health threats, including permanent mental retardation, especially in young children. Rehabilitation Relocation program provides the means to meet another Federal requirement. In instances where one of our projects requires an individual or family to move, even temporarily, we are required to pay the expenses associated with the move. 4 City of Yakima Office of Neighborhood Development Services PROPOSED 2003 BUDGET CDBG PROGRAM CDBG REVENUES - PROPOSED: City's Service Unit and Object Numbers: 330.2CY CDBG - Current Year 699.INT Interest from Investments 699.P11 CDBG - Program Interest Income 699_PRG CDBC - Program Income 1,240,000 1,200 25,000 960,000 TOTAL 2003 PROPOSED REVENUES FOR CDBG PROGRAM: $1,526,200 CDBG EXPENDITURES - PROPOSED: City's Service Unit 331 - CDBG Programs: City's Project and Object Numbers: 0000.41E Community Service 100,000 0000 41S Sidewalk 17,000 0000.48B Blight Prevention / Cleanup 15,000 0000.48P Paint 15,000 0000.48T Economic Development 205,147 0000.48U Public Facilities 10,000 0000.48W Infrastructure (2 lines) 112,000 0000 48Z Graffiti Abatement 10,000 HS01.48F Single Family Rehabilitation 12,000 HS02.48E Elderly/Disabled Rehabilitation 85,000 HSO4.48C Lead -Based Paint Abatement 20,000 HS05 481 Rehabilitation Relocation 5,000 Delivery Costs in Support of CDBG Program & Part of HOME Program: 450,136 City's Service Unit 333 - Housing Counseling City's Project and Object Numbers: 0000 421 Housing Counseling Telephone Expenses City's Service Unit 699 - General Revenues City's Project and Object Numbers: 0000.550 Operating Transfer - Homeowner Debt Service 4,167 170,750 Administrative Costs for CDBG Program: 295,000 TOTAL 2003 PROPOSED EXPENDITURES FOR CDBG PROGRAM: $1,526,200 10/24/2002 mag 5 2003 Proposed CDBG Revenue 2% ❑ CDBG Entitlement 81 El Interest 2% 0 Program Income 17% 2003 Proposed CDBG Expenditures 7% 30% 7 ❑ Community Service 7% El Sidewalk 1% ❑ Blight Prevention / Cleanup 1% ❑ Paint 1% ▪ Economic Development 13% ❑ Public Facilities 1% ❑ Infrastructure (2 lines) 7% ❑ Graffiti Abatement 1% M Single Family Rehabilitation 1% II Elderly/Disabled Rehabilitation 6% ❑ Lead -Based Paint Abatement 1 ❑ Rehabilitation Relocation 0% M Delivery Costs in Support of CDBG Program & Part of HOME Program 30% El Housing Counseling Telephone Expenses 0% ❑ Operating Transfer - Homeowner Debt Service 11% ®Administrative Costs for CDBG Program 19% HOME Single Family Programs Although HOME program regulations allow a variety of services not directly linked to homeownership, the Yakima City Council has determined that our best investment strategy is to concentrate our efforts on supporting the American dream of homeownership. Accordingly, there are three programs that receive direct investment of City funds by ONDS: HOME Single Family Rehabilitation projects assist with repairs to a local home. Required repairs include any building code mandated upgrades, along with other items that help enhance the homes appearance and livability, as funding limits allow. Down Payment Assistance, has been a very popular addition to our HOME program portfolio. Up to $4,000 is provided to first time homebuyers, in the form of a second loan. After the homeowner has lived in the home for more than 5 years the entire loan is forgiven. If they move prior to that time, the loan must be repaid. New Construction has proven to be a tremendously revitalizing program for specific, selected neighborhoods. Where several lots can be purchased in the same area, we build new homes to form a new neighborhood within an existing area. Experience has proven that these new homes are invariably well maintained, and the positive impact on the surrounding area is clear. Neighboring homes become better maintained, and resulting values go up. A final requirement of the HOME program is that 15% of all funds in each year must be allocated to a Community Housing Development Organization (CHDO). These organizations can utilize the funds for any eligible activity. Funds are allocated through an evaluation process involving City Staff and the City Council. 8 City of Yakima Office of Neighborhood Development Services PROPOSED 2003 BUDGET HOME PROGRAM HOME REVENUES - PROPOSED: City's Service Unit and Object Numbers: 337.2HM HUD HOME Program 700,000 337.HMI HOME Program Interest Income 15,000 337.HMP HOME Program Income 100,000 TOTAL 2003 PROPOSED REVENUES FOR HOME PROGRAM: $815,000 HOME EXPENDITURES - PROPOSED: City's Service Unit 337 - HOME Programs: City's Project and Object Numbers: HS08.48M Single Family Programs 626,472 HS09.410 Professional Services (CHDO) 105,000 Delivery Costs for HOME Program. 83,528 TOTAL 2003 PROPOSED EXPENDITURES FOR HOME PROGRAM: 10/23/2002 mag 9 $815,000 2003 Proposed HOME Revenue 2% 12% ❑ HUD HOME Program 86% M HOME Program Interest Income 2% ❑ HOME Program Income 12% 2003 Proposed HOME Expenditures 10% ❑ Single Family HOME Programs 77% M Professional Services (CHDO) 13% ❑ Delivery Costs for HOME Program 10% 11 2003 Proposed Combined CDBG and Home Expenditures 53% ❑ CDBG Programs 53% HOME Single Family Programs 31% ❑Administration for CDBG & HOME Programs 16% 12 OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES 2001 Actual 2002 Estimated Budget 2003 Projected Budget PERFORMANCE STATISTICS 18 NEED / DEMAND 20 First -Time Homeownership Subsidy -- Families 7 Waiting list of families applying for assistance to rehabilitation their property or purchase their first home 117 205 215 OUTPUT / WORKLOAD 2 Single Family (Owner -Occupied) Rehabilitation -- Homes 1 CDBG: 2 Special Needs Housing, in Partnership with CHDO -- Units 6 Community Service Programs (Youth Programs) -- Contracts 9 5 5 Sidewalk Program -- Households 3 10 4 Blight Prevention / Cleanup -- Sites (New Line) * 0 0 25 Paint Program -- Homes 16 14 15 Economic Development: Jobs Created 76 130 200 Public Facilities -- Units 3 1 2 Downtown Revitalization -- Meetings (New Line) 0 0 48 Infrastructure (Side Sewers, Water lines,etc) -- Households 5 3 10 Graffiti Abatement -- Hours * 2473 2119 3232 Single Family (Owner -Occupied) Rehabilitation -- Homes 1 1 1 Elderly / Disabled Repair Program -- Homes 23 26 25 Lead -Based Paint Clearance -- Properties 2 22 F 25 Rehabilitation Relocation -- Families 1 2 2 Landlord / Tenant Referrals and Housing Information -- Inquiries 5,236 6,544 5,723 HOME: Down Payment Assistance -- Families 18 15 20 First -Time Homeownership Subsidy -- Families 7 4 4 Single Family Acquisition / Rehabilitation -- Homes 3 2 2 Single Family (Owner -Occupied) Rehabilitation -- Homes 1 1 2 Special Needs Housing, in Partnership with CHDO -- Units 6 1 6 New Construction, in Partnership with CHDO -- Homes 4 4 7 (Other: Section 108 Loan -- Business Loans N/A N/A * Partnerships with Non -Profit Organizations: Throughout the year, ONDS staff works in conjunction with the Habitat for Humanity Youth Program, OIC's Americorps, and Sister Georgette Bayless and her Youth Volunteer Group to paint out graffiti, assist with the senior Paint Program and help with alley cleanup. The man hours related to these activities are included in the statistics listed above. 13 mag Section 108 / EDI Economic Development Revolving Loan Program In addition to the grant -funded programs, HUD regulations require that cities applying for a Section 108 Loan include such proposals in their five-year Consolidated Plan budget as well as their Annual Action Plan narrative. Although Section 108 Loan funds originate from separate and distinct sources, this notification requirement is included in the CDBG regulations because HUD does reserve the right to expend local CDBG funds to make principle and interest payments on a troubled Section 108 Loan. The source of the monies is comprised of a $4 million loan from Section 108 and a $1 million grant from the Economic Development Initiative (EDI) for a total of $5 million. This loan is not included in the City's budget, as it is still in a preliminary stage. Section 108 Loan $4,000,000 EDI Grant $1,000,000 Total: $5,000,000 ******PLEASE NOTE****** The Section 108 / EDI Loan Program does not currently appear in the City's 2003 budget, but will be added prior to loan closing. 14 City of Yakima Office of Neighborhood Development Services PROPOSED 2003 BUDGET * In AA RAI c s !LINA !! UO 1 _.-LJMI r! JI r%J!v! SECTION 108 ! EDI REVENUES - PROPOSED: Economic Development Loans Revenue 5,000,000 SECTION 108 / EDI EXPENDITURES - PROPOSED: Economic Development Loans Expenditures 5,000,000 * Currently not included in City's 2003 Budget; to be added prior to loan closing. 10/24/2002 mag 15 2003 SECTION 108 / EDI REVOLVING LOAN PROGRAM - SOURCE OF MONIES ❑ Section 108 Loan 80% M Economic Development Initiative Grant 20% 16 2003 Proposed Combined CDBG, HOME and Section 1081 EDI Revenues 21 % 11 % 17 D Section 108 / EDI 68% ® CDBG Programs 21% D HOME Single Family Programs 11% Possible Alternate Uses of Funds In the process of gathering citizen input this year, questions arose regarding a possible re -prioritization of funding. In response to these questions the following analysis was prepared. (See attached budgetary analysis.) First, we analyzed items that are required under Federal Regulations, and estimated minimum staffing needed to meet them. Next, we determined funding required under previous forward commitment of funds, such as the remaining obligation under the ClientLogic contract. Subtracting these expenditures from our anticipated CDBG allocation we are left with a potential maximum that could be reprioritized. (It is important to note that a reprioritization to programs not listed in the current Consolidated Plan would require an amended plan, which would also need to be approved by HUD. This approval would have to follow new citizen input and hearings regarding the proposed changes.) One of the specific proposals made was to allocate all available CDBG funds for a residential irrigation project. So, one of the steps in our analysis is a look at the availability of CDBG funds for any infrastructure project, with particular attention to the effect of the special assessment to recover capital costs of the project. Potential Maximum Discretionary Funding: In response to comments relating to CDBG Entitlement being used for potential maximum discretionary funding, the following spreadsheet and exhibits depict the impact to the proposed 2003 budget for the Office of Neighborhood Development Services (ONDS) if the entire available CDBG allocation was used for a major infrastructure (i.e. irrigation) project. On the double spreadsheet, the left side demonstrates ONDS' proposed 2003 budget with 12 CDBG programs being funded and a full staff. On the right side, the "Committed" column is the dollars that have already been committed to be paid from 2003 entitlement money. 18 The "Unfunded Programs" column illustrates dollars that would not be used for the remaining CDBG programs. The bottom line of this spreadsheet is that, with the unfunded CDBG programs and staff as outlined, approximately $673,539 would be available to fund infrastructure. (Please see conclusion below). Exhibit A, Page 1, details the "committed" funding shown on the spreadsheet and its percentage of total funds on the proposed 2003 budget. Page 2 itemizes what would be "unfunded", listing long-time, dedicated employees who would no longer be funded and the CDBG programs that would have no funding and, therefore, would no longer exist. Exhibit B cites a CDBG regulation (42 USC 5304 (b) (5)) relating to Special Assessment fees. CDBG funds must pay these special assessment fees for the years that grant dollars are used to pay for the project. O Special assessment fees in the target area currently total approximately $141,000 annually • Approximately 70% of the households in the target area are at or below 80% of the area median income • CDBG must pay the annual special assessment fees for these households, approximately $98,700 annually ($141,000 x 70%) (Please refer to Exhibit B) In conclusion, regarding using 2003 CDBG funds for a major irrigation project, the 2003 CDBG net dollars available for the project would be approximately $574,839. Based on current estimated costs of such a project, this irrigation system would take approximately 26 years to complete. Another question arose regarding the current and proposed uses of HOME funds. Specific questions were raised concerning construction of new houses as opposed to rehabilitation. Following is an analysis of impacts under both possible uses. Please note that here, also, the proposed use of HOME funds is in accordance with policies approved by the Yakima City Council. 19 City of Yakima City of Yakima Office of Neighborhood Development Services Office of Neighborhood Development Services PROPOSED 2003 BUDGET CDBG PROGRAM CDBG EXPENDITURES - PROPOSED: City's Service Unit 331 - CDBG Programs: City's Project and Object Numbers: Proposed Budget 2003 0000 41E Community Service 100,000 0000.41S Sidewalk 17,000 0000.48B Blight Prevention / Cleanup 15,000 0000.48P Paint 15,000 0000.48T Economic Development 205,147 0000.48U Public Facilities 10,000 0000 48W Infrastructure (2 lines) 112,000 0000 48Z Graffiti Abatement 10,000 HS01.48F Single Family Rehabilitation 12,000 HS02.48E Elderly/Disabled Rehabilitation 85,000 HSO4.48C Lead -Based Paint Abatement 20,000 HS05.481 Rehabilitation Relocation 5,000 City's Service Unit 333 - Housing Counseling City's Project and Object Numbers: 0000.421 Telephone Expenses 4,167 City's Service Unit 699 - General Revenues City's Project and Obiect Numbers: 0000.550 Operating Transfer - Homeowner Debt Service 170,750 Sub -Total: 781,004 Delivery Costs for CDBG Program & Part of HOME Program: 450,136 Administrative Costs for CDBG Program: 295,000 TOTAL 2003 PROPOSED EXPENDITURES FOR CDBG PROGRAM: $1,526,200 a b COMMITTED 2003 CDBG DOLLARS AND UNFUNDED ITEMS IF MAXIMUM ALTERNATIVE FUNDING IS DESIRED Committed CDBG Dollars, 2003 Description (See Exhibit A) Unfunded Programs if ONDS Funds Alternatives, 2003 100,000 17,000 15,000 15,000 172,000 ClientLogic I NDC Contract j 33,147 j 10,000 95,000 Fruitvale W / WW j 17,000 10,000 j 12,000 85,000 20,000 5,000 Sub -Total: 339,147 4,167 Fair Housing Counseling 0 170,750 Bond Debt Service 0 441,917 43,901 Retirement / Ins Reserves 42,583 Costs for Operations 29,260 Staff Delivery Costs 334,392 295,000 Downsized Staff j 0 $852,661 $673,539 a = Please see Exhibit A, Page 2 b = Please see Exhibit A, Page 1 c = Please see Exhibit A, Page 1 & 2 and Exhibit B DOUBLE SPREADSHEET 10/24/2002 mag City of Yakima Office of Neighborhood Development Services FOR YEAR 2003 CALCULATION OF MAXIMUNI AVAILABLE DISCRETIONARY DOLLARS TOTAL CDBG PROPOSED BUDGET FOR 2003: Less Committed dollars: CDBG Programs: Infrastructure for Fruitvale Water / Wastewater Project 95,000 Economic Development for ClientLogic 140,000 Economic Development for NDC Contract 32,000 Homeowner Bond Debt :Service Payment 170,750 b Fair Housing Counseling (mandate) 24 CFR 91.255 (a) (1) 4,167 (Certain specific activities are a pre -requisite to participate in the CDBG Program, less 441,917 56.58% of 781,064 including affirmatively furthering fair housing, continuum of care for the homeless, coordination with other agencies involved in combating poverty, reporting with the Consolidated Plan (five-year), Annual Action Plan, and Consolidated Annual Performance Evaluation Report (CAPER), and maintaining the bookkeeping information on HUD's Integrated Disbursement and Information System (IDIS) ) Salaries & Benefits and Other Charges: Retirement Payoffs 22,657 Interfund Charges for Insurance Services Reserves 21,244 Tess 43,901 100 00% of 43,901 Less Salaries & Benefits for Minimum Staff Necessary to Administer Programs: Neighborhood Development Services Manager 84,143 Neighborhood Development Services Operations Supervisor 86,306 Accountant 72,733 Neighborhood Development Assistant 41,374 Department Assistant III 39,704 Tess 324,260 52.31% of 619,829 Less Costs for Operations (telephone, copy machine, fax, paper, pens, file folders, etc) 81,406x52.31% = 42,584 less 42,584 52.31% of 81,406 TOTAL CDBG BUDGET LESS ABOVE EXPENSES (Avai $1,526,200 852,661 1,526,200 852,661 able for Discretionary Use) $673,539 c EXHIBIT A Page 1 of 2 10/24/2002 mag City of Yakima Office of Neighborhood Development Services FOR YEAR 2003 IMPACT OF REPROGRAMMING MAXIMUM AVAILABLE DISCRETIONARY DOLLARS WHAT WILL BE UNFUNDED: a Unfunded CDBG Programs Community Service 100,000 Sidewalk 17,000 Blight Prevention / Cleanup 15,000 Single Family Paint 15,000 Economic Development 33,147 Public Facilities 10,000 Infrastructure 17,000 Graffiti Abatement 10,000 Single Family Rehabilitation 12,000 N Elderly / Disabled Rehabilitation 85,000 I`' Lead -Based Paint Abatement 20,000 Rehabilitation Relocation 5,000 TOTAL CDBG PROGRAMS UNFUNDED: 339,147 339,147 c Unfunded Salaries & Benefits of Long -Time, Dedicated Employees no longer Employed: Grants Writer (90%) 56,753 Senior Program Supervisor 61,281 Housing Accounting Specialist 45,905 Housing Loan Specialist (75%) 38,498 Neighborhood Development Specialist II 61,653 Community Development Specialist 58,786 Code Enforcement Hotline (Permit Tech) (64%) 26,917 Director of Community & Economic Development (12%) 13,835 Community & Economic Office Administration (12%) 7,297 Department Assistant I• Temporary Position (33%) 8,171 HOME CDBG TOTAL SALARIES & BENEFITS UNFUNDED: 379,097 Includes: 83,528 295,569 Unfunded Other Operating Costs: 81,406 - 42,584= 38,822 38,822 38,822 TOTAL UNFUNDED IF CDBG FUNDS MAXIMIZED FOR ALTERNATIVE PURPOSES: EXHIBIT A Page 2 of 2 10/24/2002 mag $673,538 c City of Yakima Office of Neighborhood Development Services FOR YEAR 2003 SPECIAL ASSESSMENT FEES AND CDBG REGULATIONS 42 USC 5304 (b) (5) (5) the grantee will not attempt to recover any capital costs of public improvements assisted in whole or part under section (5306.shtml) of this title or with amounts resulting from a guarantee under section (5308.shtml) of this title by assessing any amount against properties owned and occupied by persons of low and moderate income, including any fee charged or assessment made as a condition of obtaining access to such public improvements, unless (A) funds received under section (5306.shtml) of this title are used to pay the proportion of such fee assessment or that relates to the capital costs of such public improvements that are financed from revenue sources other than under this chapter; or (B) for purposes of assessing any amount against properties owned and occupied by persons of moderate income, the grantee certifies to the Secretary that it lacks sufficient funds received under section (5306.shtml) of this title to comply with the requirements of subparagraph (A); ... Also, refer to 24 CFR 570.200 © (2) (ii) Special Assessment Fees Collected for 308 annually * 70% of Accaccrnent paid by CDBCG for houisehnlyds at or below 80% of area median income $141,000 x 70% CDBG must pay annually while project in process $98,700 Gross CDBG Dollars Available for Irrigation Less Special Assessments Costs (from above) Net CDBG Dollars Available for Irrigation 673,539 -98,700 $574,839 c Conclusion: Using the Net CDBG Dollars Available, an irrigation system would take approximately 25 years to complete, based on the estimated project costs of $14,500,000 (estimated as of 2001). ($14,500,000 / 574,839 = 25.22) EXHIBIT B 23 mag Continuance of ONDS Building New Houses in Target Area HOME Investment Partnerships (HOME) Program The HOME Program was created by the National Affordable Housing Act of 1990, and has been amended several times by subsequent legislation. OBJECTIVES: The intent of the HOME Program is to: • Provide decent affordable housing to lower-income households, • Expand the capacity of nonprofit housing providers, • Strengthen the ability of state and local Governments to provide housing, and • Leverage private -sector participation. (from Building HOME, Chapter 1, Overview of the HOME Program) AFFORDABLE HOUSING: The HOME Program defines Affordable Housing as that related cost of housing at initial occupancy and over an established timeframe of the loan documents for eligible families whose annual incomes do not exceed 80 percent (80%) of the median income for the area. The loan documents are structured to assist with the affordability of the family. Simply put, the HOME Program encourages participating jurisdictions, such as the Office of Neighborhood Development Services, to work with these eligible families to assist them with homeownership. This may mean helping them to secure a mortgage from a financial institution as well as monetary assistance from one of the program ONDS has available, such as a second mortgage at a reduced interest rate, as fits their budgets. 24 City of Yakima Office of Neighborhood Development Services Rehabilitation vs Planned Residential Development (New Construction) Rehabilitation Pro Con o Restoring housing stock o improving neighborhoods o Homeownership o Scattered sites o Few people receive benefit o Costly o Lead-based paint o Low inquiry rate o Rehab not eligible expense for CHDO (partnership) Planned Residential Development (New Construction) Pro Con o Wide -reaching impact on neighborhood o Removes blight o Develops area that private sector will not develop o Neighborhood design enhances security o Brings infrastructure to area o improves existing streets and sidewalks o Creates new neighborhood within existing neighborhood o Desirable place to live o Increases value of existing neighborhood o Marketable new homes o Neighborhood / family pride o Habitat for Humanity survey indicates children of homeowners do better in school o Higher property taxes o CHDO and / or partnership eligible 10/24/2002 mag 25 o Higher property taxes Other Statutory Requirements A requirement of this report is that it considers other groups and needs that may not be served directly under the proposed plan. ONDS is required, at a minimum, to coordinate efforts with these groups, as well as assisting where possible. One such area is that of homelessness. The Office of Neighborhood Development Services provides necessary leadership in coordinating, planning and delivering services for area homeless persons. This effort is called the Continuum of Care for the Homeless. It involves an annual planning project, a quarterly meeting with concerned groups, and coordination of the annual application for federal McKinney funds for homeless programs. ONDS is also required to identify underserved populations, and engage in efforts to provide and coordinate services for such persons. ONDS assists in these efforts for developmentally disabled persons, provides significant efforts in assisting with area literacy programs, and assists in several local efforts to provide programs to help prepare preschool children for kindergarten. The Office of Neighborhood Development Services engages in a variety of economic development projects aimed at increasing the number and pay level of local jobs, thus reducing the number of families living in poverty. For example, ClientLogic has recently announced the hiring of 60 new persons in the immediate future, and expects to grow throughout 2003. They anticipate growing from their current level of over 200 jobs to 400 jobs by the end of the 2003. When they reach this goal, their efforts will be rewarded and assisted with a grant of CDBG funds for $140,000. While some of these programs do not receive direct funding from ONDS, our efforts provide a clear benefit to those who do work directly with these populations. In the area of affordable housing, this office provides significant community leadership. ONDS has formed, and meets regularly with, several groups including affordable housing developers, affordable housing providers, and a group with responsibilities in the area of lead based paint abatement, including the housing authority. During 2003 these groups will provide advanced planning of projects, education, and coordination. 26 In addition to these coordination efforts, ONDS has a plan for Affirmatively Furthering Fair Housing. In 2003 this plan calls for staff to continue providing landlord/tenant assistance through our counseling hotline. ONDS has set up a landlord -training workshop, which will be held in late 2002, and will continue to provide educational services to landlords through 2003. ONDS homeownership programs also provide significant services iii this area by making homeownership available to many families that could not otherwise qualify to own their own homes. In the past three years ONDS has assisted with the down payment for over 200 affordable target area homes; we will provide such assistance for approximately 20 more in 2003. It is possible that these homes would not have sold without this assistance, and, likely, that few of the buyers would now be homeowners. The new homes constructed, and existing homes rehabilitated, have had a major impact on their neighborhoods, resulting in better housing conditions for significant portions of the target area. HOME funds provided by ONDS are secured through promissory notes secured by trust deeds. These instruments provide that down payment assistance funds be repaid if the home is sold within the first five years. Persons assisted with homeownership loans, or rehabilitation loans, sign agreements that contain provisions for regular payments that amortize the loans. These loans also contain due -on -sale provisions. This plan has been coordinated with other local plans, including those of the local Housing Authority, the Continuum of Care for the Homeless, and other agencies that engage in planning efforts. Future Planning This Action Plan for the year 2003 is the fourth year of a long-term strategic plan known as the Consolidated Plan. Because there is new information available from the 2000 U.S. Census, it is the intent of ONDS to produce a new Consolidated Plan for the year 2004. In anticipation of this new long-term plan, ONDS conducted a survey of residents living within our primary service area, which is known as the Target Area. (See attached map). This survey, which was done by going from door to door within the Target Area, closely parallels a mail - out survey that was conducted three years ago. 27 !7 II Iri LL 1 .- 1 UIRGROU INCLUD TARG CDBG Target Area Lakes / Reservoirs ® City Limits + Railroad Line = Census Tracts Target Area Council Approved November 17, 1988 of Ye* 6"Ct M "t; bee it A 4tio a 3 Scale —1 in = 3300fft 0 1650 33(X) Created: June 13, 2002 Survey of Target Area Residents The survey is presently undergoing a professionally conducted statistical analysis, but some preliminary information is available. The attached raw -data summary indicates one method of producing a ranking of citizen priorities. This ranking indicates 6116 potential need 1V1 u re -prioritization of CiiLv i6iiiuiiig, as well as a need for some services that may not be eligible under program regulations. Local Citizens clearly indicated a need for several types of Community Services. When the analysis is completed, a thorough study of the requested programs will be done. Because 2003 is expected to be the last year of the current Consolidated Plan, it will be a good time to review current programs and policies and how they were arrived at, before making new recommendations as to how to invest these funds in the future. 29 Survey Results 2002 Needs Assessment Survey ONDS 1 j I 1 Number of # of high ; # of low % of ind. , Sum of Item ! ratings i ratings I ratings ;who rated itemRank ratings Crime prevention 608 488 27 65.20% 1 2634 Recreational programs 528 368 41 56.70% 2 2120 Continuing education 452 342 27 48.50% 3 1892 Community programs 466 292 39 50.00% 4 1803 Social Activities 429 263 39 46.00% 5 1651 Health insurance 399 272 36 42.81% 6 1617 Community buildings/centers 402 260 25 43.13% 7 1573 Medical or Dental attention 374 269 18 40.13% 8 1551 Sidewalk repairs or improvements 382 238 39 40.99% 9 1488 Translation and interpretation 353 265 35 37.88% 10 1463 Code enforcement 360 248 38 38.63% 11 1436 Improving reading or math skills 341 236 20 36.59% 12 1396 Help finding a job 318 257 14 34.12% 13 1386 Assistance with utility bills 338 226 25 36.27% 14 1340 Home repairs 301 182 30 32.30% 15 1179 Affordable and permanent home 280 196 20 30.04% 16 1136 Parenting information 296 182 42 31.76% 17 1131 Irrigation improvements 270 198 20 28.97% 18 1128 Home buyer assistance 230 174 9 24.68% 19 989 Food assistance 238 150 27 25.54% 20 919 Clothing assistance 216 145 20 23.18% 21 859 Child care 191 138 15 20.49% 22 789 Preschool 174 129 9 18.67% 23 710 Transportation 169 N/A N/A 18.13% 24 N/A Access for dissabled 110 80 8 11.80% 25 449 Child development 90 48 11 9.70% 26 333 Birth Control 74 48 10 7.94% 27 291 Housing discrimination 46 33 5 4.94% 28 184 Historic preservation 47 29 5 5.04% 29 182 Landlord/tenant problems 46 24 8 4.94% 30 170 Adult day care 42 2 7 4.51% 31 150 Sewer connection 31 14 4 3.33% 32 111 Water connection 30 16 7 3.22% 33 109 City of Yakima CDBG Target Area Irrigation 308 NM ME MTN gliall WI ism ■■i■ �--ir 111::!NHHHHHUHNI Mil Irrigation 308 Population 15,634 * =�% CDBG Target Area Population 44,007 * * Population Data 2000 Census Report IP 1111! 11•11611.11.11 11.11■■■■■n■■■■■• 11111 11111 Er um ■■■■■■•■■imm IIIIIIII111111■..S I I II■■MIli�! 1111- 1111■. ■ !E■ 11111111116111 1111 ■ ■M_ r_MEM "VP � �nni x:111=_��=�' _ iunnnnnuc =WM Scale —lin = 5000ft 0 2500 5000 irrig City of Yakima, Washington November 04, 2002 NJMATI/Trr BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No.: For Meeting of: November; 2002 2-69 ITEM TITLE: Public Hearing and Approval of 2003 Annual Action Plan SUBMITTED BY: William Cook, Director of Community and Economic Development CONTACT PERSON/TELEPHONE: William Cobabe, Neighborhood Development Services Manager (575-6101) SUMMARY EXPLANATION: The City of Yakima, Office of Neighborhood Development Services has scheduled a hearing before the City Council to receive public comments regarding possible activities for the 2003 Annual Action Plan and proposed budget, as required by the United States Department of Housing and Urban Development (HUD). The U.S. Department of Housing and Urban Development requires that the City of Yakima conduct at least two public hearings per year to offer the community an opportunity to comment on the proposed 2003 Annual Action Plan, Community Development Block Grant and HOME Programs. The first of the public hearings was held on July 25, 2002 at the Senior Center. A draft Action Plan has been available for public review and comment over the past 30 days, and notices of the public hearing have appeared in the Yakima Herald -Republic (see attached). Draft copies of the proposed 2003 Annual Action Plan been available for the last 30 days to the public and circulated to the Mayor and City Council At the public hearing on November 5, 2002, the Council will hear additional public comment and amend and approve the proposed 2003 Annual Action Plan. The Annual Action Plan will then be submitted to HUD within 45 days of the beginning of the next fiscal year. Please note, we have attached a corrected Exhibit B for the final draft annual Action Plan. This change has been made to reflect the Water and Irrigation Division's FY2001 cost estimate of $14,500,000 to rebuild the 308 irrigation system. Resolution Ordinance Contract Other Specify Funding Source: N/A APPROVAL FOR SUBMITTAL: \� City Manager STAFF RECOMMENDATION: Approve 2003 Annual Action Plan BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: This hearing was continued to November 26, 2002. 11-26: Public Hearing held & closed. The resolution was adopted by 6-1 vote; RESOLUTION NO. R-2002-139