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HomeMy WebLinkAbout10/15/2013 07 2014 Annual Action Plan Summary; CDBG & HOME Funds; Office of Neighborhood Development . -'- ,,,,t_.,,,,.,,, • '':gin o rs +..r',.. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 1 For Meeting of: 10/15/2013 ITEM TITLE: Public Meeting to consider citizen comments on the proposed 2014 Annual Action Plan for Community Development Block Grant (CDBG) and HOME Fund Programs. SUBMITTED BY: Steve Osguthorpe, AICP Director of Community Development (509) 575 -6113 Archie M. Matthews, Neighborhood Development Services Manager (509) 575- 6101 SUMMARY EXPLANATION: Attached for the Council's consideration and for public hearing is the 2014 Annual Action Plan summary. The Plan describes the various programs for which Community Development Block Grant (CDBG) and HOME funds will be spent. A summary of the plan and its specific programs is attached. Also attached are the proposed 2014 budgets and the 2013 budgets for both CDBG and HOME funds which include estimated revenues and expenditures for both programs. This is the first opportunity for public comments on the proposed 2014 Community Development Block Grant funds and HOME funds for the City of Yakima program. The Department of Housing and Urban Development (HUD) and City of Yakima Citizen Participation Plan, require at least two Public Hearings allowing citizen comment on the proposed plan. The second hearing will be conducted by City Council on November 5, 2013. The draft annual action plan is available on the City's website or at the City Clerk's office. Resolution: Ordinance: Other (Specify): Contract: Contract Term: Start Date: End Date: Item Budgeted: Amount: The progams in the 2014 Annual Action Plan are Funding Source /Fiscal funded through the CDBG and HOME programs. Impact: No other city funds are expended on these programs. Strategic Priority: Insurance Required? No Mail to: Phone: APPROVED FOR City Manager SUBMITTAL: RECOMMENDATION: Conduct public hearing to consider citizen comment on the proposed 2014 Annual Action Plan. ATTACHMENTS: Description Upload Date Type Ei Summary - 2014 Annual Action Plan 10/8/2013 Cover Memo budget info 10/10/2013 Cover Memo 2014 ANNUAL ACTION PLAN SUMMARY As a recipient of Federal Community Development Block Grant (CDBG) and HOME Investment funds, the City of Yakima is responsible to submit an "Annual Action Plan" describing how we plan to spend the funds in the next year. We allocate these funds to the best of our ability in order to meet the need of the low to moderate income residents within the City limits. Each fall we estimate our entitlement amount and after a 30 day written comment period, and two public hearings, we submit this proposal to Housing and Urban Development (HUD), outlining how we plan to use those funds to assist low to moderate income residents within the city limits. In the past several years there have been major budget cuts; programs have been adjusted and modified as adopted by our Yakima City Council to utilize the funding that we receive to assist in "Eligible Activities" as defined by HUD that will best benefit our low and moderate income citizens. In 2013 there was a 2.8% increase in CDBG and 1.9% increase in the HOME Investment funds. For 2014 we have estimated the entitlement amount should be the same or close to the funds received in 2013. This is reflected within the estimated 2014 Budget and disclosed within the 2014 Annual Action Plan. Please be aware these are "Estimates" and often change due to many variables as calculated and budgeted by the Federal Government and then adopted and dispersed by HUD. The Office of Neighborhood Development Services (ONDS) continues to address the need of homeownership in our city through a number of programs such as the First -Time Homeownership, Homeownership Assistance, New Construction and meeting HUD requirements by setting aside Community Housing Development Organization (CHDO) funds. We also fund other programs like Fair Housing Counseling, Senior/Disabled Program, Graffiti Abatement, Public Service, Public Facilities, Economic Development, and Code Compliance. Finally, ONDS assists qualified low to moderate income homeowners with emergency repairs with CDBG and qualified low to moderated income first time homebuyers with HOME Investment funds as well as other federally recognized "Eligible Activities" as outlined in the Annual Action Plan. The following programs are scheduled to continue as described within the 2014 Annual Action Plan with expected numbers outlined in Table 3A of the Plan. I am also attaching both the 2013 and proposed 2014 budgeted and estimated expenditures for comparison purposes. The Senior/Disabled Home Repair Programs: • The Senior/Disabled Emergency Home Repair Program: Assists qualified low to moderate income Senior and /or Disabled homeowners with "Life Safety" repairs, such as no heat or A/C, no water, no hot water, electrical emergencies, leaking roofs, and sewer and water line connections. • The Senior/Disabled Exterior Paint Program: Assists qualified low to moderate income Senior and /or Disabled homeowners with needed exterior paint. This program provides certified lead based paint contractors to prepare the home for paint to be applied by volunteers as supervised by ONDS staff. • The Senior/Disabled Wheel Chair Ramp Program: Assists qualified low to moderate income Senior and /or Disabled homeowners with an aluminum wheelchair ramp. The city retains ownership of the ramp and "loans" it to a qualified applicant. The wheelchair ramp is "recaptured" when it's no longer needed by the applicant and moved to another qualified applicant. Estimated annual total to conduct all three Single Family Rehabilitation programs including administrative and delivery costs: $397,896 The Paint Out Graffiti Program: The city hired a full time person to paint out graffiti using ONDS equipment and resources, but was funded through general fund dollars to enable graffiti to be addressed without the limitations federal regulations imposed by being on the ONDS payroll. Graffiti is still a budgeted program within ONDS to provide equipment, paint and limited staff to direct volunteers as needed. Estimated annual total including administrative and delivery costs: $47,037 Code Compliance: ONDS continues to partner with the City of Yakima Code Department to provide federal funds directly to pay for code compliance officers in order to continue to clean up our low to moderate income residential neighborhoods. Estimated annual total including administrative and delivery costs: $178,000 Public Service Programs: ONDS pays for a public service program as contracted with OIC of Washington to provide eligible public service programs at South East Community Center. ONDS also has a low to moderate income Senior/Disabled Emergency Heating program. This program works in conjunction with OIC to assist low and moderate income qualified senior /disabled homeowners with "Past Due" heating notices to become current, in order to qualify for energy assistance through OIC's energy assistance program. This program also provides some minor heating assistance to qualified applicants outside OIC's program as needed. As mandated by HUD, the City must "Affirmatively Further Fair Housing" and to meet this requirement ONDS conducts Fair Housing Counseling through a wide variety of methods, such as telephone counseling, walk in counseling, pamphlets and land lord /tenant counseling. Estimated annual total including administrative and delivery costs: $137,466 Economic Development: ONDS funds assistance to qualified eligible economic development activities that result in "Job Retention, Job Creation or Microenterprise Technical Assistance." Estimated annual total not to include administrative and delivery costs: $50,000 Public Facilities / Infrastructure: Federal funds set aside for eligible activities to provide for "Substantial Rehabilitation" of qualified Public Facilities and /or qualified Infrastructure improvement projects. Estimated annual total not to include administrative and delivery costs: $5,000 Community Housing Development Organizations (CHDO): As mandated by the federal regulations implemented by HUD, ONDS sets aside CHDO reserves to "Affirmatively Further Fair Housing" through CHDO certified local housing organizations. In partnership with OIC of Washington and Habitat for Humanity, ONDS continues to build and sell new homes to qualified low to moderate income first time homebuyers. Estimated annual total to include administrative and delivery costs: $629,164 First -Time Homeownership Assistance: This program assists with soft second mortgages to qualified low to moderate income first time homebuyers to purchase new homes constructed in partnership with certified CHDO' s. Estimated annual total not to include administrative and delivery costs: $100,000 Non Program Related Expenses: Total estimated administrative and delivery costs not directly associated with any single program, including; salaries, office supplies, copy machine lease, travel, training, small tools, postage, advertising, and building overhead costs: $203,850 Total annual estimated ONDS budget without carry forward: $1,748,413 City of Yakima Office of Neighborhood Development Services 2013 & 2014 COMPARISON HOME ESTIMATED EXPENDITURES 2013 T | ' 77. 2014 Total All activity is eligible under 92.205 (a) (1) Estimated EoUmatoU HOME PROJECT CATEGORIES: Expenses Expenses First-Time Homeowner Assistance (up to $30 000 each) 00.715 100.000 Community Housing Development Organization 60.175 00.175 (CHDO: HUD requirement, minimum of15Y6of2O12 HOME Entitlement plus Program Income) New Construction 235.127 404.280 Administrative & SIB HOME Costs 103.147 104.700 Total 459,164 , 729,164 Entitlement is estimated as Congress has not yet approved the national HUD Budget. Program Income is estimated as the figure is unknown until the money is received. Appropriate adjustment will be made, if needed, when HUD awards are received. Cariy fotward will be encumbered when amount is known, in Spring, 2014 10/10/2013 /o Budget Prep uonoouvooumatv City of Yakima Office of Neighborhood Development Services 2013 & 2014 Comparison CDBG ESTIMATED EXPENDITURES WITH SIB (With OUT Carry Forward Dollars) 2013 Total 2014 Total Estimated Estimated HUD Programs (CDBG) Expenses Expenses CDBG Single Family Rehabilitation 570.202 (b) Senior I Disabled Rehabilitation 403,846 397,896 First Time Homebuyers Assistance Total 403,846 397,896 II Community / Public Services 570.201 (e) Graffiti Abatement (approved by HUD 2007) 51,228 47,037 Fair Housing Counseling 507.201 (k) 50,343 52,466 Senior -Disabled Energy Assistance 10,000 10,000 OIC of WA -CBDO (not part of Pub Svs Cap) 75,000 75 000 , , Total 186,571 184,503 III Public Facilities 570.201 (c) Southeast Community Cntr / Miller Park Activity Cntr (or other public facilities in the neighborhood) 5,000 5,000 Public Infrastructure 934 Total 5,934 5,000 IV Code Compliance 570.202 (C) (Program Delivery) 169,848 178,000 169,848 178,000 V Economic Development 570.203 (b) Proposed contract with Rural Community Development Resources 50,000 50,000 Total 50,000 50,000 VI Administrative CDBG Costs 570.206 (s/b) & Prog 204,049 203,850 Grand Estimated Totals 1 f 020 248 1 f 019 t 249 Entitlement is estimated as Congress has not yet approved the national HUD Budget. Program Income is estimated since the figure is unknown until the money is received. Appropriate adjustment wi//be made, if needed, when HUD awards are received. Carry forward will be encumbered when amount is known, in Spring, 2014 * Code Compliance consists of 2 FTE and 64% of Permit Tech- is currently under a program line but is still paid as a program delivery expense. 10/10/2013 ic Budget Prep.2012.DRAFT Guesstimate..