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HomeMy WebLinkAbout2004-060 HOPE 3 Project Funds ORDINANCE NO. 2004 - 60 AN ORDINANCE amendmg the 2004 budget for the City of Yakima, and making an appropnation of $252,000 m the 124 — Office of Neighborhood Development Services Fund for expenditure during 2004 to provide additional HOPE 3 project funds. WHEREAS, the amount of $252,000 must be appropriated within the 124 — Office of Neighborhood Development Services Fund for expenditure during 2004 to provide additional HOPE 3 project funding, and WHEREAS, at the time of the adoption of the 2004 budget it could not reasonably have been foreseen that the appropnation provided for by this ordinance would be required, and the City Council declares that an emergency exists of the type contemplated by RCW 35.33 091 and that it is in the best interests of the City to make the appropnation herem provided, now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. The amount of $252,000 is hereby appropnated from the Unappropriated Fund Balance in the 124-Office of Neighborhood Development Services Fund to account number 124 - 124 - 332- 0000 - 559.20 -48K titled HOPE 3 Single Family as a 2004 appropriation. Section 2. This ordinance is one making an appropriation and shall take effect immediately upon its passage, approval and publication as provided by law and by the City Charter PASSED BY THE CITY COUNCIL, si and approved this 5th day of October 2004 n n X V" PAUL P GEORGE, MA OR ATTEST: 71 -w .2 CITY CLERK First Readmg: 9-24 -2004 Pubhcation Date. 10-8 -2004 Effective Date. 10-8 -2004 Cepperson HOPE 3 Ordinance 9/16/2004 e BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. - - O�'o E . 5 For Meeting Of Ser21 2004 ITEM TITLE An Ordinance Amending the 2004 Budget and Making an Appropriation in the 124 - Office of Neighborhood Development Services (ONDS) Fund for additional HOPE 3 Project funds. SUBMITTED BY William Cobabe, ONDS Manager William Cook, Community & Economic Development, Director CONTACT PERSON /TELEPHONE Bill Cobabe - 575 -6101 SUMMARY EXPLANATION In recent years ONDS has moved to develop affordable homeownership opportunities in small subdivisions with local private and non -profit developers. We completed such a project about 4 years ago with United Builders, we just completed a project with OIC, and have another underway These new homes are constructed on infill lots and raw land throughout the older portions of the City ONDS is in the planrung stages of a larger project, in partnership with OIC and Habitat for Humanity This is to be located at the end of Hathaway, in the Fruitvale area. It will ultimately contain 20 new homes. In order to make our funding work as efficiently as possible, ONDS arranged a short -term note with the seller of the property, to be paid off when we were ready to proceed with the subdivision. Continued on page 2. Resolution X Ordinance _Contract Other (Specify) FUNDING SOURCE. ONDS eserved Fund Balance APPROVED FOR SUBMITTAL. Ci l a City er g STAFF RECOMMENDATION (B) Read Ordinance by title only at the September 21, 2004, meeting. Pass Ordinance after second reading at the October 5, 2004 meeting. BOARD /COMMISSION RECOMMENDATION COUNCIL ACTION First reading of ordinance; second reading scheduled for October 5, 2004. Ordinance passed. ORDINANCE NO. 2004 -60 Cje 9/16/2004 HOPE 3 Appropriation r Page 2 As you might imagine, planning for a project of this size is complex. It involves streets, utilities, and engineering the actual lot design before any homes are actually started. The very nature of such an effort makes it difficult to predict with total accuracy when some of the components will be ready to move forward. ONDS had anticipated paying the note off sometime in 2005, but we find we are ready to move forward a bit sooner In addition, our partnership project with JAL Construction has also moved to completion. It includes construction of 3 new homes, and rehab of a 4th, located on S. 4th Ave Accordingly, ONDS is requesting additional budget authority for 2004 to allow these transactions this year The funds will be taken from a fund known as HOPE 3 This is a part of our funds that are not replenished each year, as are the CDBG and HOME funds. Rather these funds originally came from a Federal program that originated with the Savings and Loan bailout programs of the late 1980s and early 1990s The HOPE 3 program provided funds the City was able to use to help finance affordable homeownership opportunities. As payments and payoffs of these funds accumulate, ONDS is charged with reinvesting these funds in new affordable housing efforts. Funding is requested as follows: South 4th Avenue, JAL Construction $114,409 Hathaway Project, Marvin Gardens $202,591 Other Misc. HOPE 3 Projects $ 10,000 `Total for 2004. $327,000 Less current 2004 budget 75,000 Additional appropriation request $252,000 The attached appropriation ordinance would authorize the use of $252,000 from the Office of Neighborhood Development Services Fund reserves, which were established by and designated for the HOPE 3 program. Cje 9/16/2004 HOPE 3 Appropriation