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HomeMy WebLinkAbout01-08 RESOLUTIONRESOLUTION NO. 01-08 A RESOLUTION TO APPROVE THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM AND TO AUTHORIZE MAYOR COODY TO EXECUTE THE GRANT AGREEMENT IN THE ESTIMATED AMOUNT OF$655,977.00 WHEREAS, the Community Resources Division has developed and will submit an "Action Plan" for proposed uses of Community Development Block Grant funds from the U.S. Department of Housing and Urban Development; and WHEREAS, the estimated funds which will be awarded by HUD is $655,977.00 to be divided into several programs specified in the Commumty Resources memo. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: The City Council of the City of Fayetteville, Arkansas hereby approves the Community Development Block Grant program as shown in the memo in the total amount of $655,977.00 to be divided into the indicated programs shown in the "Action Plan" and authorizes Mayor Coody to execute the 2008 Community Development Block Grant Agreement when received PASSED and APPROVED this 3rd day of January, 2008. APPROVED: ATTEST: By: I . ,a..✓ . By: er> .Lc sv D COODY, Mayor SONDRA E. SMITH, City Clerk/Treasurer _ �i Yolanda Fields Submitted By City of Fayetteville Staff Review Form City Council Agenda Items Contracts ,3 Sat o8 -6-Bee-9f- City Council Meeting Date CR Division Action Required: Operations Department Present the 2008 Community Development Block Grant Action Plan, and request authority to be given to the Mayor to execute the 2008 Community Development Block Grant Agreement upon receipt. $0.00 Cost of this request Account Number Project Number Budgeted Item x Category/Project Budget Funds Used to Date Remaining Balance Budget Adjustment Attached Program Category / Project Name Grant Revenue Program / Project Category Name Community Development Fund Name Department D ector City Attorney Finance and Internal Service Director Mayor IZD`1 O-1 Date Original Contract Date: Previous Ordinance or Resolution # 12-1�-a7 I1 to OI Date Date Original Contract Number: Received in City tk's e RED Approval of authority request. CITY COUNCIL AGENDA MEMO To: Mayor and Council Thru: Gary Dumas, Director of Operations From: Yolanda Fields, CR Direc Date: December 6, 2007 Subject: 2008 Community Development Block Grant (CDBG) RECOMMENDATION Staff recommends authority be given to the Mayor to execute the 2008 Community Development Block Grant Agreement upon receipt. BACKGROUND Fayetteville has been a Community Development Block Grant (CDBG) Entitlement city since 1975. Funding is based on a formula allocation that takes into account such factors as population, percent of low/moderate income persons, and the number of housing units. This process sets aside CDBG for the City of Fayetteville each year the Community Resources Division submits an annual "Action Plan" outlining the proposed used for the funds to the U.S Department of Housing & Urban Development (HUD) for CDBG funding. If the Action Plan meets HUD requirements an agreement is received. This agreement must be executed, returned to the HUD field office in Little Rock then sent to Washington D.C. for the release of funds. Grant amounts vary each year dependent upon funding levels authorized by Congress through the annual federal budget process. The estimated award for 2008 is $655,977.00 Grant funding detail: Administration $130,249 Housing Rehabilitation $323,087 EOA of Washington County $ 10,848 Fayetteville Public Library $ 2,800 Just Communities $ 8,683 LifeSource $ 10,669 Parks & Recreation $ 22,000 Peace at Home $ 15,000 Code Compliance $ 42,641 Richardson Center $ 10,041 Life Styles $ 45,020 Peace at Home $ 19,760 YouthCan! $ 15,179 Grant Total $655,977 DISCUSSION The timeliness in returning the CDBG agreement will reduce the waiting time in starting the both internal and external program to assist the low -to -moderate income residents of our community. Any change in the funding amount will be presented to Council. BUDGET IMPACT 2008 estimated grant revenue - $655,977. RESOLUTION NO. A RESOLUTION TO APPROVE THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM AND TO AUTHORIZE MAYOR COODY TO EXECUTE THE GRANT AGREEMENT IN THE ESTIMATED AMOUNT OF $655,977.00 WHEREAS, the Community Resources Division has developed and will submit an "Action Plan" for proposed uses of Community Development Block Grant funds from the U.S. Department of Housing and Urban Development; and WHEREAS, the estimated funds which will be awarded by HUD is $655,977.00 to be divided into several programs specified in the Community Resources memo. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS° Section 1: The City Council of the City of Fayetteville, Arkansas hereby approves the Community Development Block Grant program as shown in the memo in the total amount of $655,977.00 to be divided into the indicated programs shown in the "Action Plan" and authorizes Mayor Coody to execute the 2008 Community Development Block Grant Agreement when received. PASSED and APPROVED this 3rd day of January, 2008. APPROVED: ATTEST: By: By: DAN COODY, Mayor SONDRA E. SMITH, City Clerk/Treasurer LIFESOURCE, INC. just communities FAYETTEVILLE PUBLIC LIBRARY LIFESTYLES YDUTHCANeoa of Itoncounty parks & recreation Peace at hume LEGAL /\I D THE AC N I OF P:4p1i:2M LE Community Resources Division Helping to Build a Better Community Community Development Block Grant www.accessfayetteville.org Community Resources 479 575 8260 of CONTATS FORM 424 INTRODUCTION 1 CONSOLIDATED PLAN 2 community profile s housing 1 community development needs 6 available resources to public access 1 participation .......... to analysis of impediments to fair housing 11 ONE-YEAR ACTION PLAN 12 administration 13 housing services ....._._._._...._ ................_.._._._._._._ 13 redevelopment program 13 public services 13 public facilities 14 monitoring program 15 APPENDICES appendix a: appendix b: appendix c: appendix d: appendix e: appendix f: appendix g: certifications public hearing announcement citizen participation plan listing of projects maps comments tables OMB Numtwr. 4040-0004 Application for Federal Assistance SF -424 Version 02 '1. Type of Submission: '2 Type of Application New • It Revision, select appropriate leder(s) *Other (may) • Preapplication _ ® Application ❑ Changed/Correded Application ■ Continuation • Revision 3. Date Received: 4. Applicant Identifier 11/15/2007 B -08 -MC -0001 5a. Federal Entity Identifier: 65b. Federal Award Identifier. State Use Only: 8. Date Received by State: 17. State Application Identifier. 8. APPLICANT INFORMATION: 'a. Legal Name: City of Fayetteville 'b. Employer/Taxpayer Identification Number (EIN/rIN): 71-8014482 'c. Organizational DUNS: 141-310587 d. Address: 'Street 1: 113 W Mountain Street 2: 'City. Fayetteville County: Washington 'State: AR Province: 'Country: US 'Zip / Postal Code 72701 is Organizational Unk: Department Name: Operations Division Name: Community Resources L Name and contact Information of person to be contacted on matters Involving this application: Prefuc Ars. 'First Name: Yolanda Middle Name: 'Last Name: Fields Suffix Tide: Director Organizational Affiliation: 'Telephone Number: 479-575-8290 Fax Number 479-444-3445 'Email: yfieldsed.fayettevide.ar.us OMB Number: 4040-0004 Expiation Date: 01131(2009 Application for Federal Assistance SF -424 Version 02 '9. Type of Applicant 1: Select Applicant Type: A.State Government Type of Applicant 2: Select Applicant Type: Type of Applicant 3: Select Applicant Type: *Other (Sperry) 10 Name of Federal Agency: United States Department of Housing and Urban Development 11. Catalog of Federal Domestic Assistance Number: 14-219 CFDA Title: Community Develooment Block Grants/Entitlement Granas 12 Funding Opportunity Number. Tntle: 13. Competition Identification Number. Title: 14. Areas Affected by Project (Cities, Counties, States, etc.): Fayetteville 95. Descriptive Title of Applicant's Project Community Development Bbdc Grant&JEntitlemeM Grants OMB Rumba: 4040-0004 Expiration Date: 01/31/2009 Authorized for Local Reproduction D Standard Form 424 (Revised 102005) Prescribed by OMB Circular A-102 Application for Federal Assistance SF -424 Version 02 16. Congressional Districts Of: •a. Applicant: AR -3 •b. Program/Project: AR -3 17. Proposed Project •a. Start Date: 01/012008 •b. End Date: 12/312008 18. Estimated Funding ($): •a. Federal *b. Applicant •c. State d. Local •e. Other M. Program Income •g. TOTAL 653,244 653,244 •19. Is Appllatton a This application b. Program is c. Program is Subject to Review By State Under Executive Order 12372 Process? was made available to the State under the Executive Order 12372 Process subject to E.O.12372 but has not been selected by the State for review. not covered by E. O. 12372 for review on • ❑ *20. Is the Applicant Delinquent On Any Federal Debt? (If "Yes", provide explanation.) No ■ Yes 21. *By signing this herein are true, complete with any resulting me to aiminal, civil, application. I certify (1) to the statements contained in the list of certifications" and (2) that the statements and accurate to the best of my kncw$edge. I also provide the required assurances" and agree to comply terns if I accept an award. I am aware that any false, fictitious, or fraudulent statements or daims may subjed or administrative penalties. (U. S. Code, Title 218, Section 1001) end assurances, or an Internet site where you may obtain this Usti is contained in the announcement or ructions CI " I AGREE "The list of certifications agency apedric ku Authorized Representative: Prefix Middle Name: *Last Name: Suffix: Mr. 'First Name: pan Coodv *Title: Mayor *Telephone Number. 479-575-8330 Fax Number: • Emelt: dcoodyyd.fayettevIlle.ar.us *Signature of Authorized Represertatve: L �. 'Date Sign dgf h Authorized for Local Reproduction D Standard Form 424 (Revised 102005) Prescribed by OMB Circular A-102 OMB Number. 4040-0004 Expurim Dula 01/312009 Application for Federal Assistance SF -424 Version 02 *Applicant Federal Debt Delinquency Explanation The following should contain an explanation H the Applicant organization is delinquent of any Federal Debt. introduction This document serves as the City of Fayetteville's Consolidated Plan Submission of the 2008 One -Year Action Plan for the use of Community Development Block Grant (CDBG) Program funds. The Action Plan describes how the City will address the priority needs and specific objectives identified in the Five - Year strategy of the City of Fayetteville's 2005-2009 Consolidated Plan. The One -Year Action Plan is a component of the Consolidated Plan that is updated annually to reflect resource allocation changes. The planning process for the development of this One -Year Action Plan began on July 25, 2007, with published notice providing notification that the City was accepting applications for 2008 CDBG program funding. This notice of funding, in combination with the public hearing held on October 11, 2007, allowed agencies and interested citizens the opportunity to express concerns and community needs. The public hearing announcement is included in Appendix B of this document. Following the application submission period, 17 funding requests were received and reviewed by staff and the members of the selection committee. Applications were reviewed for compliance application require- ments. Council adopted local community development objectives and consistency with the priorities and objectives contained in the 2005-2009 Consolidated Plan. CDBG funded activities must qualify by meet- ing one of the three national objectives: benefit low -and -moderate income individuals, prevent or eliminate blight and slums or meet urgent community development that pose a serious and immediate threat to the health or welfare of the community. In addition, each application was assessed for project readiness, financial leverage and other relevant concerns. A summary of the proposed uses of CDBG funds recommended by staff was published in The Northwest Arkansas Times on September 19 and September 23, 2007. This public notice marked the start of the 30 -day public comment period. In addition, the public notice advised the general public of three locations that the proposed 2007 One -Year Action Plan was available for their review. The draft One -Year Action Plan was then discussed at a public hearing held on October 11, 2007. page 1 consolidpitagg In order to receive its annual CDBG grant, the City of Fayetteville must develop and submit to the De- partment of Housing and Urban Development (HUD) its Consolidated Plan. This plan is the City's com- prehensive planning document and application. In the Consolidated Plan, the City identified its goals for CDBG programs, which also serve as the criteria against which HUD will evaluate the City's performance in carrying out its goals. The Consolidated Plan promotes a comprehensive approach to local decisions by requiring cities to pull together all local resi- dents interested in community development to help identify the needs of the community and formulate strategies for addressing those needs. The concept behind the Consolidated Plan is to: • Enable a community to view HUD programs not as isolated tools to solve narrow functional problems, but rather as an invitation to embrace a comprehensive vision of housing and com- munity development • Create a comprehensive vision which includes affordable housing, fair housing, transportation, economic development, community rehabilitation • Enable communities to apply this comprehensive approach in helping the homeless in a con- tinuum of care a comprehensive system for moving individuals and families from homeless to permanent housing • Improve program accountability and support results -oriented management by establishing clear priority needs and goals; providing more timely and readable information on needs, goals, and proposed projects to citizens; providing measurable indicators of progress; and reporting on progress against these measures • Facilitate citizen involvement and commitment in the planning process by increased community outreach • Partner with the local Public Housing Authority in comprehensive planning efforts to revitalize distressed neighborhoods and help low-income residents • Integrate efforts to identify and take measures to overcome impediments to fair housing, which is an integral part of comprehensive planning efforts. The programs covered by the Consoli- dated Plan all have in common the characteristic that expenditures must primarily benefit ex- tremely -low (0 to 30 percent of median income), very low (31 percent to 50 percent of me dian income), and low-income (51 percent to 80 percent of median income) persons and page 2 households. In addition, they are intended to meet the following three federal statutory objectives: PROVIDE DECENT HOUSING I which includes: assisting homeless persons obtain affordable housing; assisting persons at risk of becoming home- less; retention of affordable housing stock; increase the availability of affordable permanent hous- ing in standard condition to low income and moderate income families, particularly to members of disadvantaged minorities without discrimination on the basis of race, color, religion, sex, national origin, familial status, or disability; increasing the supply of supportive housing which includes structural features and services to enable persons with special needs (including persons with HIV/ AIDS) to live in dignity and independence; and providing affordable housing that is accessible to job opportunities. PROVIDE A SUITABLE LIVING ENVIRONMENT I which includes: improving the safety and livability of neighborhoods; increasing access to quality public and private facilities and services; reducing the isolation of income groups within areas through spatial decon- centration of housing opportunities for lower income persons and the revitalization of deteriorating neighborhoods; restoring and preserving properties of special historic, architectural, or aesthetic value; and conservation of energy resources. EXPAND ECONOMIC OPPORTUNITIES I which includes: job creation and retention; establishment, stabilization and expansion of small businesses (including microbusinesses); the provision of public services concerned with employment; the provision of jobs to low-income persons living in areas affected by those programs and activities, or jobs resulting from carrying out activities under programs covered by the plan; availability of mortgage financing for low income persons at reasonable rates using non discriminatory lending practices; access to capital and credit for development activities that promote the long term economic and social viability of the community; and empowerment and self sufficiency for low income persons to reduce generational poverty in federally assisted housing and public housing. Page 3 «»ENTQF ISI O�eP yOGN 0 I II Z I ��GIIII/ Tsdq DEV E\'OQ INSTITUTIONAL STRUCTURE and COORDINATION Federal regulations require recipients to establish a common program year and identify a single lead agency to prepare and submit the Plan. The task of preparing this Plan is assigned to the City of Fay- etteville's Community Resources Division (CRD). Annually, CRD prepares the One -Year Action Plan as an update to the Five -Year Consolidated Plan. The division addresses the various housing needs and strategies of the City of Fayetteville and administers the City's CDBG Program. It also functions as a program and services delivery -unit to help address the community's needs for decent housing, a suitable living environment, and sustained economic health. The Community Resources Division has been in contact with an extensive network of govemmental and non-profit agencies in preparation for the writing of this plan. Notices of funding availability were pub- lished in the local newspaper. The delivery and financing of affordable/attainable housing involves organizations and participants from public agencies, businesses and private institutions, non -profits and community based organizations. The roles and responsibilities of the participants will vary depending on the project, required resources, leader- ship, and levels of commitment, capacity, productivity and understanding of the issue. The Community Resources Division plans to continue working with the various organizations as it implements the provi- sions of the 2008 One -Year Action Plan and the 2005-2009 Consolidated Plan. Staff also maintains relationships with state and federal partners and agencies to better link services to our targeted population. CRD staff has assumed leadership and support roles with the Northwest Arkan- sas Housing Coalition, Local Community Clinic, League of United Latin American Citizens, New Arkansas Resource Network Advisory Committee, City of Fayetteville Housing Task Force, Fayetteville Chamber of Commerce Small Business Committee, and board member of the National Community Development As- sociation. page 4 com e The City of Fayetteville, county seat of Washington County, is located in the northwestern part of Ar- kansas. Washington County is the second most populous county in Arkansas and one of the fastest growing. Fayetteville is situated at the foothills of the Ozark Mountains. Fayetteville is the southernmost city in metropolitan Northwest Arkansas and islocated approximately 185 miles northwest of Little Rock, Arkansas, 125 miles east of Tulsa, Oklahoma, 350 miles northeast of Dallas, Texas, and 210 miles south of Kansas City, Missouri. Fayetteville and the NOrthwest Arkansas region have gained a national reputa- tion as one of the best places in the country t0 live and raise a family. The 'City and the region are experiencing rapid populationgrowth and an increasing number of visitors. Fayetteville's population has Increased from approximately 20,000 in 1960 to 58,047 according to the 2000 census. A special census completed in June of 2006 showed the population to be 67,158. The city is the third most populous in Arkansas. The City currently encompasses 34,153.5 acres. As of the 2000 census, there were 58,047 people, 23,789 households, and 12,136 families residing within the city. The population density was 1,336.6/mi. There were 25,467 housing units at an average density of 586.4/mi. The racial makeup of the city was 86.50% White, 5.11% African American, 126% Native American, 2.56% Asian, 0.16% Pacific Islander, ..1.99% from other races, 2.42% from two or more races and 4.86% Hispanic or Latino of any race. In the city the population was spread out with 19.9% under the age of 18, 25.7% from 18 to 24, 29.9% from 25 to 44, 15.8% from 45 to 64, and 8.7% were 65 years of age or older. The median income for a household in the city was $31,345, and the median income for a family was $45,074. The per capita income for the city was $18,311. 19,9% of the population and 11.4% of families were below the poverty line. page 5 n°BMaiegdli'�'& HOUSING The City of Fayetteville is committed to the de- velopment of programs which address the need for housing for Low and Moderate Income (LMI) persons and families. In response to priority needs revealed during the development of the City's five year Consolidated Plan in 2005, the City has fo- cused on developing community partnerships with local entities with expertise in specialized housing activities. This cooperation will further the Attainable before Housing effort in the City of Fayetteville. Attain- able housing has become a topic of great concern for this division. Housing costs in Northwest Arkansas have increased at a considerable rate throughout the past 10 years according to the lat- est information from the 2000 Census. The cost of the median mortgage payment in the City of Fayetteville remains the highest in Northwest Arkansas at $916, an increase of 45 percent. It is the highest median mortgage payment of any city in Northwest Arkansas and 24 percent higher than the state median of $737. kitchen rehabilitation kitchen rehabilitation after REHABILITATION window rehabilitation before The City of Fayetteville has been helping homeowners with rehabilita- tion of their homes for approximately 30 years. The funding has allowed homeowners to stay in their homes, and the improvements to their homes have acted as a catalyst for other, high quality renovations and new construction of housing in the project area. The majority of recipients have been very low income and or elderly households. These owners have little or no funds available to repay the loan and typically have the greatest amount of deferred maintenance. The chart below reflects the income levels from January 2007 - September 2007. window rehabilitation after page 6 20°' INCOME LIMITS 10% „ a 70% ■ 30% Extremely Low ■ 50% Very Low 060% Low ❑ 80% Low -Moderate I♦ 100% Median According to the U.S. Census Bureau approximately 1,640 homes were built prior to 1978 in the City of Fayetteville. Any rehabilitation activities on homes constructed prior to 1978 will have lead hazards identified and actions taken to remove the hazard Lead-based paint hazards consist of any condition that causes exposure to lead. In 2007, the program has conducted 11 Lead -Based Paint tests and has removed hazards from the homes that tested positive. Along with the Lead -Based Paint need, the U S Census Bureau reports that there are approximately 4,608 residents over the age of 65 in the City of Fayetteville. These homeowners are generally on a fixed-income and cannot afford to make any repairs on their homes or address making their homes energy efficient. The program addresses both Lead -Based Paint and making the home energy efficient to allow the homeowners to remain in their homes for up to 10 years longer than expected. The charts below reflect the statistics on the participants that have been assisted in the past nine months of 2007. We have provided rehabilitation to 14 homes since January 1, 2007. 30% 7 6 5 4 3 2 1 0 HEAD OF HOUSEHOLD 0% ■ Single / Non -elderly ■ Elderly / 62 & above 0 Related / Single parent O Related / Two parent 70% *Other SEX OF HOUSEHOLD Male Page 7 Female PUBLIC SERVICES Utilization of CDBG funds for the provision of public services, which serve LMI groups, has been, and continues to be a focus of the Community Development Program. The Taxi Program provides subsidized cab fare for our elderly and disabled citizens, providing a transpor- tation choice for many who would not have transportation available otherwise. This simple, cost effective program receives unwavering support from those who use it to go shopping, to the doctor, post office, church, out to eat, or any number of other destinations. The program is hugely successful in providing our elderly and disabled the opportunity to participate in community lite and live independently. The Transit Program provides monthly passes to 100 qualified low -to -moderate income residents of Fayetteville. This form of supplemental transportation was gamered out of a partnership between Ozark Regional Transit and the City of Fayetteville. PUBLIC FACILITIES CDBG has historically supported community services facilities projects in Fayetteville. CDBG dollars have assisted construction, renovation and development of facilities for local non-profit organizations such as YouthCANls Community Imagination Studio, Seven Hills Homeless Center, Head Start, Yvonne Richardson Center, and Peace at Home Family Shelter, as well as renovations and improvements to streets, side- walks and other infrastructure located in the designated target area. REDEVELOPMENT In 1992, a neighborhood within a low -to -moderate -income area of Fayetteville was designated as the Target Area. Prior to the creation of the program, Code Compliance efforts were placing an additional economic strain on the low -to -moderate income homeowners in the Target Area who are physically or financially unable to correct code violations. Thus, in 2004, the Redevelopment Program was established for the Target Area to assist in cleaning and revitalizing the deteriorating neighborhood. redevelopment cleanup before redevelopment cleanup after redevelopment cleanup redevel opulent cleanup before after page 8 According to the Community Sourcebook of Zip Code Demographics, 37.2% of the population makes less than $25,000; 26.0% make $25,000 to $49,000; 24.3% make $50,000 to $99,000; 8.0% make $100,000 to $149,000; and 4.6% make $150,000 or more. The Target Area is located within the 72701 zip code area, which is comprised of mainly low -to -moderate -income residents. With a great percentage making less than $25,000 a year, it is evident that residents will not have the resources to correct code violations on their property. In 2005, the Program expanded to assist any low -to -moderate income resident and owner occupied resident within the City of Fayetteville. Without the assistance of the Redevelopment Program, residents would be placed under more economic strain. From January 2007 - September 2007, we have successfully assisted 5 households, spending over $8,198 on dean -ups. The charts below demonstrate the statistics on the participants that were assisted. INCOME LEVEL 0% ■ 30% Extremely Low 40% ■ 50% Very Low o 60% Low ▪ 800/o Low -Moderate • 100% Median HEAD OF HOUSEHOLD 0% 20% ■ Single / Non -elderly ■ Elderly / 62 & above ❑ Related / Single parent O Related / Two parent ■ Other As a way to reach out to more residents in the Target Area, the Redevelopment Program took a tum and changed its tactics to educate the residents of the Target Area. The Redevelopment Officer is now dedicating three days a week to meet with residents and local organizations. The goal is to not only educate the public on the city ordinances and the program, but also to develop more relationships to further the efforts of the program. page 9